Obton Group Holding A/S

The Group's principal activities The group's main activities comprise - developing, purchasing and financing solar PV parks and battery storage and making them available to private and corporate investors via solar funds. In addition, Obton also sells solar energy projects to international institutional investors. - to facilitate investment in properties through real estate funds. Development in activities and the financial situation The group's Income Statement of the financial year 1 January 2022 - 31 December 2022 shows a result of DKK 158,933,678 and the Balance Sheet of the Group at 31 December 2022 a balance sheet total of DKK 2,443,980,292 and an equity of DKK 900,594,914. Post financial year events No events of material importance to the company's financial position have occurred since the end of the financial year. Expectations for the future The group's growth strategy is scaled back due to the current market challenges but still with ambitious expectations for the profit before tax ending in the range of 300-350 mDKK for 2023. Knowledge resources The Obton group continuously devotes significant resources to the further development of the group's employees. Attracting and retaining competent employees is essential to the group's continued growth. Risks The group's business risks are associated with the ability to continue developing and expanding its strong position in the alternative investment market. The group does not have any specific risks other than those generally encountered in the industry. Net profit/loss for the year compared with expected developments in the most recently published annual report The group experienced a significant slowdown in growth during 2022 particularly related to the real estate activities delivering a total profit before tax of 248 mDKK, approx. 300 mDKK below expectations in last years annual report. New offices in Denmark and abroad Towards the end of the year, the group was handed the keys to the new domicile on Aarhus Ø. As the process has been under way for almost two years, the move into the new facilities in December was accompanied by a palpable sense of release. After almost ten years of non-stop expansion of the workforce, it was difficult to find a setting with the capacity to accommodate our continued growth in the long term. With the new domicile in Nicolinehus, the perfect framework for continued development has been found. A giant leap in employee care has been taken, with an organic in-house restaurant that serves healthy, varied meals and even provides a take-away option for those days when staff could use a quick and convenient evening meal. With water on both sides of Nicolinehus, staff have every opportunity to enjoy a lively and inspiring harbour environment, where they can benefit from walk-and-talk meetings while admiring the giant container ships that come to moor in the industrial harbour. In addition to a market hall, facilities at Nicolinehus include a fitness centre that the staff can utilise with a subsidy from the company. It is not only in Denmark that Obton has grown. In 2022, Obton opened completely new offices in Warsaw (Poland) and Gelsenkirchen (Germany), while Obton staff in Milan (Italy) and Klagenfurt (Austria) have moved into new premises, where the office facilities form the setting for the continued development of Obton internationally. Core values Competetive spirit We do our job with passion and we find the right process to reach our goals. Joy Humour is an integral part of our working day. We recognise victories and celebrate our successes Dedication We are persistent, disciplined and efficient. We work hard and ambitiously to achieve our goals. Proper work ethics We highly value proper work ethics in what we do and say. We keep our promises and treat our customers, colleagues and business partners with respects for the trust we have gained. Empowerment We are adaptable, innovative and take responsibility we make things happen. Sustainability New strategy charts the course for the ESG work A key priority for Obton is to care for people, nature and biodiversity at the same time as running a responsible business. For this reason, one of the ambitions is to devote particular attention to Environment, Social and Governance (ESG). Obton aims to ensure that ESG becomes an integrated part of all processes in the organisation, which can also generate commercial value. Vision Impacting future generations through solar energy. Together. To monitor our ESG work, we have implemented an Obton overarching ESG strategy that prioritises these five focus areas: ENVIRONMENT 1. Climate change mitigation Become carbon neutral and continue to contribute to reducing CO2 emissions through solar energy production. 2. Environment and natural resource preservation Improve resource conservation through circularity and increase initiatives that support biodiversity. SOCIAL 3. Attractive and dynamic workplace Work towards an inclusive work environment, with room for everyone, and reporton HSE (Health, Safety and Environment) areas to drive HSE practices. GOVERNANCE 4. Ethical and transparent business conduct Ensure an ethical supply chain and address ESG issues through active ownership. 5. Responsible investment Continue to integrate ESG factors into all aspects of the business Environment In 2022 the European Commission launched its “REPowerEU” plan with a view to ending European dependency on Russian gas. One of the strategies in this plan is to accelerate the roll-out of renewable energy. Obton contribute to the green transition by facilitating the production of renewable energy with the potential to reduce the use of fossil fuels such as gas. In addition to independence, an increase in renewable energy such as solar power can help cut emissions of CO2-equivalents (CO2e), as it would reduce consumption of fossil fuels. This supports the global goals of limiting global warming to 1.5°C compared to preindustrial levels, and mitigating climate change. And that is precisely the first point of focus in Obton's ESG strategy. Mitigating climate change Obton is keen to reduce its own emissions of CO2e. Obton commenced work in 2022 to report core activities via an online platform for calculating the Obton CO2e emissions. Work in 2022 included definition of the key factors to report. Then attention turned to identifying the data sources and to setting up reporting processes. The project demands input from almost all areas of Obton, so a great many employees have been involved in starting up this reporting work. The objective of reporting core activities and calculating CO2e is to set science-based targets for the reduction of Obton Group's emissions of CO2e. Obtons CO2e emissions for 2023 are to serve as the baseline, which will constitute the starting point for setting reduction targets. At the end of 2023, when Obton start to see a picture of where behaviour, can be changed, Obton will be able to choose other solutions or measures with the potential to help reduce the Group's emissions. The Obton Group would also like to contribute to reducing general emissions of CO2e. Obton are managing more and more solar PV plants; in fact, Obton administrated more than 1,200 in 2022. In total, these plants generated 1,240 GWh of solar energy in 2022. This is 28 % more than in 2021 and was equivalent to the energy consumption of 275,111 Danish households. The goal remains to be able to offer solid investments in more and more solar PV plants, and for the total portfolio in 2023 to generate 10% more solar energy than in 2022. One key parameter for Obton's capacity to offer investments in solar energy and energy storage is an examination of the risks related to climate change. For example, the future may hold more extreme weather events such as hurricanes and floods. Obton will continue to include examinations of potential climate risks in future projects risks that may have a negative impact on solar PV plants and battery plants and to implement processes targeted at lessening such impacts. Preservation of the environment Circular economy has become a key focus area that features a range of benefits, such as saving finite resources and reducing emissions of CO2e through not having to extract raw materials, or to produce new products from scratch. Obton is keen to explore opportunities for the recycling and reuse of solar PV modules, and for this very reason Obton strives to ensure that the majority of our old solar PV modules are resold to other projects. Those modules that are not resold are to be dealt with as described in the Waste of Electric and Electronic Equipment (WEEE) Directive. In 2022 almost all Obton's old solar PV modules were resold to projects elsewhere. In addition, Obton increased utilisation of inverters that can be repaired rather than having to replace the entire unit. In order to establish a better overview of which large units and how many kg of these are repaired or replaced in the solar PV plants, Obton will prepare a baseline for 2023 that will serve as a basis for comparison over the coming years. Reuse is also important from the perspective of materials and batteries, but as this is still a new area, Obton does not yet have any batteries that needs to be replaced. Biodiversity is another area where the decline is so advanced that it has been classified as a crisis. As Obton also installs solar PV plants, Obton are committed to thinking in terms of biodiversity in the work that we do. For example, this involves examining how a solar PV plant is likely to affect the area, establishing the measures Obton can implement to support biodiversity, and looking into how best to maintain the plant. Obton does not use herbicides to control the undergrowth, and the solar PV panels contain no components that risk polluting the ground water or leaching hazardous waste. Obton is committed to remaining up-to-date with the prevailing legislation and requirements from the various local authorities, and in the context of Danish projects, Obton has decided that an Environmental Impact Assesment must always be carried outirrespective of whether or not the projects are required to complete such an assessment. Old solar PV modules light up a school in Malawi In 2022, Obton supported the mission of the Sopowerful Foundation to expand solar energy where it matters most. The organisation received used solar PV modules from Obton, which were then installed on the roof of a school in the South-East African town of Likwenu in Malawi. The school, which has room for 285 pupils, was previously without power, but the new solar PV panel installation on the roof has made it possible to provide evening lessons and study groups. We at Obton are keen to continue working with the Sopowerful Foundation so that we can extend solar energy to even more people. Social Obton Group view employees as key knowledge resources, so it is natural to take good care of everyone. Obton strives constantly to improve working environment by promoting trust, good working conditions and strong relations which, at the end of the day, create solid cohesion. Obton is committed to ensure a safe, healthy, diverse, and inclusive workplace, and is convinced that this will cultivate innovative solutions, strengthen business and enable staff to develop on an ongoing basis. Attractive and dynamic workplace Employee well-being is crucial to the capacity to retain skilled staff, so this issue is a key focus area. This applies in both work-related and social contexts. Obton has zero tolerance for offensive behaviour such as discrimination, threats and physical or psychological harassment. In order to measure employees’ satisfaction with Obton as a workplace, Obton has implemented employee satisfaction measurement by calculating an Employee Net Promoter Score (eNPS). This is a measurement of how likely it is that employees will recommend Obton to other people as a good place to work. It is, of course, important to Obton that this score is as high as possible, because employees are the best ambassadors for promoting Obton as a workplace. The average result for 2022 was at “very good” level, which indicates that the staff is highly satisfied with the workplace. Obton strives to promote a diverse employee composition and encourages everyone, irrespective of age, gender, sexual orientation, etc. to apply for positions at Obton. The gender distribution in Obton Group was roughly the same in 2022 as it was in 2021, with a ratio of 37% women to 63% men. However, a shift occurred at Obtons management level in 2022, with two women joining the team. This altered the gender distribution in management from 100% men to 20% women and 80% men. In December, one of the women left the management team, after which the gender distribution changed to 10% women and 90% men. Furthermore, Obton signed “The Gender Diversity Pledge” created by the Confederation of Danish Industry (DI). This pledge sets out 16 principles for promoting gender diversity and contains an obligation to work for a general gender distribution of 40/60% among management teams and Board of Directors in the labour market in 2030, with Obton setting goals for its management team and Board of Directors. Obton will additionally work to achieve a gender distribution of 40/60 % over the coming years. Employee health and safety is important to Obton. Obton is committed to maintaining a high level of activity in the field of Health, Safety and Environment (HSE) to identify potential hazards at workplaces, prevent accidents and minimise impact on the environment. An important start in this regard is to have ambassadors for the HSE work, to run the work and serve as a point of contact. For this reason, Obton appointed HSE managers at the largest locations and for the employees who work on site at solar PV plants. Other staff can contact the HSE managers if, for example, they spot a potential hazard, or if they have suggestions for improving how we work or for how we can boost employee security. Governance Obton Group is committed to running an ethical, transparent, and responsible business. Everything Obton does must comply with the relevant legislation and regulations, and adapt processes to ensure that this is the case. Obton is working to create a more transparent value chain by providing information about goals, results, and processes, and by asking for information from operators involved in our value chain. The way in which Obton is committed to running its business is set out in both policies and code of conduct, which all Obton employees are obliged to follow. Ethical and transparent business conduct In 2022, Obton adopted a policy for ESG due diligence and prepared a code of conduct for partners and suppliers, with a view to improving transparency in the value chain. A minimum of 70% of all direct suppliers of solar PV modules, inverters and battery modules are to sign this code of conduct or corresponding standards in 2023. If conditions exist that conflict with our standards and expectations, we will not work with the supplier in question. “Greenwashing” has become a concept that more and more people have heard or are familiar with. It refers to misleading marketing, where a product, a service or a company is represented as being “greener” than it is. To avoid greenwashing in Obton’s marketing, we have prepared guidelines for our marketing and telemarketing department which describe the use of various terms and concepts in accordance with recommendations from the Danish Consumer Ombudsman. To sharpe focus on and training in ESG even further, Obton will have two activities centred on the environment planned for 2023. These are to help focus on what Obton as a company can do – or is already doing – for the environment, nature and biodiversity, as well as on areas where Obton needs to do better. With a view to becoming even better, and remaining up-to-date with the latest work and trends in the field of solar energy, Obton A/S has joined the sector organisations SolarPower Europe, Green Power Denmark and the Swedish Solar Energy Association. This gives Obton the opportunity to take part in relevant conferences, to share knowledge and to gain insight into what is happening on the solar market. Obton has already made good use of our memberships, and Obton will continue to participate actively in the sector organisations. It is important to Obton to keep up with developments and constantly to acquire knowledge with the potential to help the organisation and its staff to continue developing their skills and competences. In order to be even more transparent, Obton has also chosen to commission an annual external compliance review. The review takes the form of an examination of processes within a previously agreed area, with the purpose of confirming that Obton can document compliance with them in practice. In addition, the review examines whether risk assessment mechanism is sufficient and up to date. The scope for 2023 encompasses money laundering and terror financing. Responsible investing Obton’s policies for ESG due diligence and the integration of ESG risks are to chart the course for how Obton is to work with ESG in the investment process, and to make ESG a stronger integrated part of the considerations behind investment decisions. The work to implement these work methods in the investment processes is therefore prioritised highly in 2023. As a part of the purchasing process, it is essential for Obton to identify the right projects and partners by assessing potential impact from climate change, taking nature and the environment into account, and supporting decent working conditions. Obton continues to focus on the area, and of course the whistleblower scheme can also be used to report other types of matters elsewhere in the organisation. Environmental conditions The principal activities of Obton comprise the development, acquisition and financing of energy projects, in order to sell them to solar and battery funds, in which Danish investors can purchase shares. The investor owned solar and battery funds then purchase various services from Obton, such as asset management, technical support, fi- nancial controlling and portfolio management. In addition, Obton develops and sells energy projects to international institutional investors. By constructing and purchasing renewable energy production plants, Obton is contributing to increasing the share of renewable energy in the grid. Storage of surplus energy from the electricity grid in batteries makes it possible to utilise that energy later. Work is under way on calculating emissions of CO2e to allow Obton to set reduction targets. The business of Obton may potentially have a negative impact on its surroundings by 1) establishing a solar PV plant or battery farm on land that may either be good farming land or land with significant amenity value, or 2) disrupting the local wildlife and surroundings. These risks are assessed for each project, and measures to mitigate potential risks are considered and implemented in the project plans. Obton has implemented a number of policies and procedures that must be complied with to make sure that the potential negative impacts on the environment, nature and biodiversity are properly examined. As such, Obton has undertaken to show consideration for the surroundings, while also ensuring that the projects generate solid yield for the investors in the alternative investment funds managed by Obton Forvaltning A/S. Obton has launched a number of initiatives designed to ensure ESG Due Diligence processes in 2022. The focus here is on identifying which significant risks are to be examined for each individual project, and on assessing which ESG factors the individual projects may potentially affect, as well as which risks may have an influence on the project. Obton expects that both the solar and battery industries will continue to grow. Obton will increase focus on implementing sustainability risk assessments in all areas of the investment process. Obton is keen to implement measures that have a positive impact on people and nature in the immediate vicinity of our energy plants. Here are a number of specific examples: - Utilisation of areas that are not attractive for other purposes (such as disused gravel pits, refuse tips, areas alongside highways and industrial areas, and roofs on factories and warehouse buildings) - Greenery and insect hotels, etc. enhance local biodiversity - No fertiliser, pesticides, etc. sprayed onto the soil, which benefits the groundwater - Greenery managed naturally by grazing sheep - Use of local labour for establishment and ongoing operation - Involvement of residents in the local area (guided tours, information boards, rambling and jogging paths through the farm, etc.) - Opportunity for residents to become “co-owners” of a plant - Greenery around the farm to counteract reflected glare/inadvertent sight lines Social and HR conditions Obton maintain focus on improving HR conditions with a view to attracting and retaining skilled staff. Obton operates based on a strong set of values which, for example, is reflected in a comprehensive employee manual and a code of conduct that all employees are required to observe. In 2022, all Danish employees were offered improved parental leave conditions because of modifications to the Danish Maternity Leave Act (Barselsloven). All employees have regular conversations with their managers, as well as quarterly appraisals and the opportunity to participate in employee satisfaction surveys. In addition, employees are offered a range of courses intended to encourage professional and personal development. Shortly before Christmas 2022, Obton launched a new talent programme for employees aged under 32. This programme will be rolled out for the selected employees over the course of 2023. Human rights The Obton value chain features a number of known risks in relation to human rights. Obton is a member of several international stakeholder organisations working actively to make value chains more transparent. We are also working to promote transparency, and we support this work through our code of conduct for suppliers and partners, which we implemented in our Operations & Maintenance (O&M) contracts in 2022. Obton requires suppliers and partners to comply with this code or corresponding standards. In this way, Obton is supporting the international human rights conventions which apply to Denmark as a part of the UN. Obton expects that in 2023 it will be possible to implement the code of conduct for suppliers and partners in contracts with suppliers of solar PV modules, inverters, and batteries, as well as with EPC (Equipment, Procurement and Construction) partners. Anti-corruption and bribery Risks of corruption are present in the Obton value chain. For this reason, Obton has implemented internal guidelines and policies intended to prevent bribery and corruption. Obton complies with national and international regulations, standards and principles targeted at preventing bribery and corruption, and has implemented a whistle blower scheme that employees can use to report unlawful and unacceptable conditions anonymously. No reports were submitted in 2022. Obton continues to focus on this area. Target figures and policies concerning the under-represented gender At 31 December 2022, the gender distribution among Obton staff was 63% men and 37% women. Obton continues to focus on establishing a diverse composition of staff. Senior management body of Obton A/S - Total numbers of members 3 - Under-represented gender 0% - Target figure 33.33 % - Year for achievement of target figure 2027 Other levels of management - Total numbers of members 29 - Under-represented gender 24% - Target figure 34% - Year for achievement of target figure 2027 In 2022, Obton implemented a number of policy measures to promote diversity and increase the share of the under- represented gender at the company's other management levels. Obton signed The Gender Diversity Pledge in 2022 and follows the framework tools set out there. In connection with recruitment - also for management positions - the company is aware that the field of candidates must be diverse, just as there is an offer of management training for managers, a focus on diversity in succession planning for executive management, as well as flexible working hours and the option of working from home and career coaching for managers. The many measures will be consolidated in 2023 into one unified policy. The year for meeting the diversity target for the senior management body has been changed from 2023 to 2027, as this is now considered more realistic given the company's specific circumstances. This is based on the Danish Business Authority's recommendation to consider whether the time horizon is realistically set, which it has been assessed that it is not, as there have been no changes to the senior management body to an extent for the diversity target to be achieved in 2023. It is the company's evaluation that it is realistic to achieve the goal before 2027, which is why the period has been extended. In order to support achievement of the target figures, Obton is organising leadership programmes and courses to boost employees' competences. Employees are likewise offered appraisal interviews where one topic for discussion is whether they have the skills and desire to become a manager. Data ethics In the Data Ethics policy, Obton has specified the ethical guidelines that are to be followed in connection with responsible use of data and new technologies. The policy also clarifies Obton's focus areas in relation to data-ethical behaviour. The policy supports Obton's business model, values, strategic priorities, and visions. Obton informs all investors about which data the company collects and processes, and for which purpose. Data are processed when necessary and/or required by law. Obton works closely with the public authorities in the context of possible data breaches and the prevention of money laundering and terror financing. Data are processed responsibly, confidentially, and securely, and effective control and supervision are applied to the processing of data. The Data Ethics Policy is published on our website: www.obton.com.

Development in activities and the financial situation The group's Income Statement of the financial year 1 January 2022 - 31 December 2022 shows a result of DKK 158,933,678 and the Balance Sheet of the Group at 31 December 2022 a balance sheet total of DKK 2,443,980,292 and an equity of DKK 900,594,914. , Development in activities and the financial situation The group's Income Statement of the financial year 1 January 2022 - 31 December 2022 shows a result of DKK 158,933,678 and the Balance Sheet of the Group at 31 December 2022 a balance sheet total of DKK 2,443,980,292 and an equity of DKK 900,594,914.