&Tradition A/S

The company's principal activities The principal activities of &Tradition A/S are design and sale of furniture, lighting and interior products. &Tradition A/S stive for timeless designs born out of tradition and revolution, honor old masters, who were avantgarde in their time and welcome new designers creating icons of tomorrow. Our designs include classic designs by Verner Panton, Viggo Boesen, Arne Jacobsen and others. The principal activities have not changed from last year. Market overview &Tradition A/S sells design furniture, lighting and home accessories primarily to the European market. The largest markets are the Nordics, Benelux and Germany. The company's strategy is to grow organically by continuing to market design classics as well as new designs. The market has been under pressure by increasing inflation, rising energy prices and consequently a decline in real wage levels in most of the markets. Development in activities and financial matters The company's income statement for the financial year 1 August 2022 to 31 July 2023 shows a turnover of t.DKK 755.414 compared to last year of t.DKK 725.048, and a result after tax of t.DKK 110.091 compared to last year of t.DKK 136.677. The balance sheet as at 31 July 2023 shows total assets of t.DKK 385.462 and an equity of t.DKK 314.312. The previous year and follow up on last years expected developments This year the turnover has been under pressure on several markets, among others due to a general slowdown in the interior design market. Thus, a somewhat smaller increase in revenue has been realized than expected. Based on this, the year's profit at DKK 141 million before tax is considered to be satisfactory, as the expected result was between DKK 140 and 160 million. Special risks - operational risks and financial risks Operation The company has entered into the necessary agreements regarding delivery of products to ensure the ability to supply. The operational risks are therefore unchanged. Currency risks The activities abroad have an effect on the result, the cash flows and the equity due to the development in the exchange rate and the interest rate for a number of currencies. It is the company's policy to partially hedge commercial currency risks. The hedging is primarily done by forward exchange contracts to partially hedge expected revenue and purchases within the next 12 months. The company does not enter into speculative currency positions. Currency adjustment on investments in subsidiaries that are independent entities, is recognized directly in the equity. Currency risks related to this matter is not covered by hedging, as it is the company's view that hedging of long-term investments in subsidiaries is not an optimal solution, when looking at it from an overall risk and cost perspective. Interest rate risks As the interest-bearing net debt does not represent a significant amount, moderate changes in the interest rate level will not have any significant direct effect on the result. Therefore no interest rate positions are entered into, to hedge interest rate risks. Liquidity risks It is the company's policy to be self-financing, and thus be independent from credits. This is also expected to be the case for the financial year 2023/24. Particular risks Beyond ordinary occurring risks, no particular risks are considered to affect the company except ordinarily occurring risks. Strategy and objectives The rising inflation following by a lower consumer confidence has caused a decreasing rate of growth, which along with the rising sourcing prices of the company's products means that a further decrease in profit ratio is expected in 2023/24. Management expects a growth in turnover between 5% and 20% and a result before tax in the range of 120-140 mill. DKK, and a positive cashflow in the same range. Research and development activities Besides the ordinary development of furniture and accessories and development of the company's IT-platform, there are no research and development activities in the company. Branches abroad All the company's activities abroad operate as independent legal entities, which is why there are none branches abroad. Statement on Corporate Social Responsibility Business model and strategy The company's activities consist primarily of the design and sale of furniture, lighting and interiors, including the sale of classic designs by Verner Panton, Viggo Boesen, Arne Jacobsen and others. The company employs approx. 105 people who are primarily administrative staff. The company wants to develop its core business and meet its strategic challenges in an economically and socially sound manner. This means that the company complies with the laws of the countries and communities where the company conducts business and the company will carry out activities and efforts of a societal nature in order to achieve its strategic goals. The company's ethical rules are integrated into the company's activities and include: * To respect and support internationally recognized human rights * To support the abolition of child labor * To support the abolition of discrimination in relation to working and employment conditions * To ensure a good working environment * To ensure environmental friendliness and take the initiative to promote environmental responsibility * To act in accordance with applicable competition law, including neither offering nor receiving any kind of bribe * To influence our partners to also comply with the above requirements To ensure that many of our initiatives are rooted in the company and to ensure an overall vision, &Tradition A/S, together with the parent company Nine United, has developed and implemented a sustainability strategy. Based on this initiative, a large number of initiatives have been defined that &Tradition and Nine United want to implement. This will ensure that responsibility and sustainability become part of the company's core business and thus play a role in all matters. This strategy also comes with a number of indicators that we want to report on in the future. - Risk and opportunities &Tradition A/S is committed to taking responsibility for the entire supply chain impact, environmentally and socially, which requires close cooperation with suppliers. Through the Supplier Code of Conduct, implemented across Nine United A/S including &Tradition A/S, describes the ethics and behavior that Nine United A/S wish to live up to, and to promote throughout the supply chain. The Code of Conduct is directed at suppliers and their subcontractors who manufacture products and provide services. Beyond social and environmental considerations, the Supplier Code of Conduct addresses integrity and anti-corruption, protection of whistleblowers, animal welfare, and other aspects of good governance and transparency. Environmental risks and opportunities The furniture industry is under pressure for their large environmental impact, leading to demands for transparency by customers, regulators, and industry alliances, and an increasing need to document efforts around product quality and safety, including material choice and product environmental impact. &Tradition A/S is familiar with this risk and finds it important to contribute by working actively with the environmental impact. &Tradition A/S strives to reduce impact by strengthening our expertise within material choices, waste reduction, reduced use of volatile organic compounds, increased transparency and traceability which may help limit overproduction, and by developing durable and long-lasting products of a high quality. KPIs related to Environmental topics Amount of renewable electricity purchased in the buildings we operate 100 % Amount of purchased goods produced with renewable energy 40 % Amount of products, that includes wood and paper that are FSC/PEFC certified 92 % Amount of packaging used that are FSC/PEFC certified 81 % Amount of products, that uses recycled plastic components (over 100g) 95 % Amount of recycled plastic used, that are third party certified (GRS or similar) 90 % Social- and employee conditions &Tradition A/S support and respect human rights. It is the policy to ensure that human rights always are respected in relation to both employees and business associates. Part of this effort is to ensure a safe and secure working environment for all employees in all countries where the Group is represented. This applies to both the physical and mental work environment. This is demonstrated not only by the natural compliance to legislation on the area but is also reflected in the Group's handbook for employees. &Tradition A/S continuously govern employees well-being through workplace assessments, and aims to continue this work in 2023/24. Statutory report on climate As mentioned previously &Tradition A/S aims continuously for contributing towards a greener future environment. * Nine United A/S including &Tradition A/S is trying to minimize the impact on the World's climate on several levels. Both by increasing the use of materials coming from sustainable sources, by working with suppliers that live up to the Code of Conduct and by developing durable and long-lasting products of a high quality. Statement on data ethics The company has no policy on data ethics, as the company does not process data or use algorithms for data analysis. Statutory report on human rights In relation to suppliers and business partners Nine United A/S including &Tradition A/S expects that they all consider human rights to be important and do business with a general high moral standard. A natural consequence of this policy is to stop all collaboration with entities about which the Group has become aware, that human rights are not being treated respectfully. Through the Supplier Code of Conduct, &Tradition A/S also governs its value chain according to the companies own standards, The Universal Declaration of Human Rights, key UN conventions, ILO conventions and recommendations, as well as the UN Global Compact's ten principles of responsible business. In 2023/24 &Tradition A/S will continue to focus on protection against violations of human rights through signing, auditing and govern suppliers globally according to the Group Supplier Code of Conduct. KPIs related to Social topics Amount of suppliers, with yearly purchases of at least 10k USD, that have signed our Code of Conduct 91 % Statutory report on the underrepresented gender &Tradition A/S is governed by the rules on targets and policies for the gender composition of management. &Tradition A/S aims to be a tolerant workplace without discrimination of any kind. Employees are hired based only on their skills and experience. Gender, religious belief, age, nationality or other such factors are not considered to be relevant for recruitment. In order to comply with the legislation, despite the above, the target has been formulated with a gender mix of equal representation between women and men in the board of directors of &Tradition A/S. Today &Tradition A/S has an equal gender distribution on the management level. The target for the underrepresented gender in the board of directors is to maintain 33,3%. Anti-corruption and bribery The company distances itself from all forms of corruption and bribery. It is a fundamental part of the value set in the company that the company's employees are instructed not to receive or offer valuables or the like with the aim of obtaining unfair advantages. The company has an open-door policy, and the individual employee always has the option of going to HR or immediate manager if there is doubt about a breach of the company's anti-corruption policy. No breach of the rules has been detected either during the financial year or after the end of the financial year. KPIs related to Governance Restricted Substance List implemented in Product requirements Yes Packaging guidelines implemented Yes

Development in activities and financial matters The company's income statement for the financial year 1 August 2022 to 31 July 2023 shows a turnover of t.DKK 755.414 compared to last year of t.DKK 725.048, and a result after tax of t.DKK 110.091 compared to last year of t.DKK 136.677. The balance sheet as at 31 July 2023 shows total assets of t.DKK 385.462 and an equity of t.DKK 314.312. The previous year and follow up on last years expected developments This year the turnover has been under pressure on several markets, among others due to a general slowdown in the interior design market. Thus, a somewhat smaller increase in revenue has been realized than expected. Based on this, the year's profit at DKK 141 million before tax is considered to be satisfactory, as the expected result was between DKK 140 and 160 million. , Development in activities and financial matters The company's income statement for the financial year 1 August 2022 to 31 July 2023 shows a turnover of t.DKK 755.414 compared to last year of t.DKK 725.048, and a result after tax of t.DKK 110.091 compared to last year of t.DKK 136.677. The balance sheet as at 31 July 2023 shows total assets of t.DKK 385.462 and an equity of t.DKK 314.312. The previous year and follow up on last years expected developments This year the turnover has been under pressure on several markets, among others due to a general slowdown in the interior design market. Thus, a somewhat smaller increase in revenue has been realized than expected. Based on this, the year's profit at DKK 141 million before tax is considered to be satisfactory, as the expected result was between DKK 140 and 160 million.