Albatros Travel A/S

MANAGEMENT'S REVIEW

Development in the Company's activitiesIn 2023, the revenue of the Company is 733.382 t.DKK with a profit before tax of 50.416 t.DKK and an Equity as per 31. December 2023 of 61.532 t.DKK. This is to be compared to a revenue of 500.231 t.DKK, a profit before tax of 2.081 t.DKK and an Equity of 35.061 t.DKK last year.Financial reviewIn the Annual Report for 2022, a result before tax in the level of 35.000 – 40.000 t.DKK was expected for 2023. This result was greatly exceeded. Reaching an EBITDA of 34.842 t.DKK was achieved because the Company for the first time since the outbreak of Covid went through a full year without any major unanticipated macroeconomic incidents to affect the core business negatively. In 2022 the Company was affected by a significant non-materialized loss on securities, amounting to 17.231 t.DKK, which was mainly caused by the valuation of corporate bonds. The expection was that the corporate bonds would regain value as they came closer to expiration. This has been proven to be true, and the financial income in 2023 includes a 5.982 t.DKK non-materialized positive valuation gain on the Company's securities. The result in 2023 is considered satisfactory, and is in line with Management's expectations for the year.Special risks Market risks Albatros Travel A/S mainly operates in the Nordic travel market, which is, like other markets, sensitive to threats of war, terrorism, pandemics and similar instability in destination countries. Currency risks Fluctuations in currencies can have both a negative and positive effect on the operation activity of the Company, as both the majority of income and cost – and thus also receivables and debt – is recognized in other currencies than DKK. The company is especially exposed to fluctuations in NOK, SEK, USD and PLN with derived impact on the result, cashflow and equity. The main goal for handling of currency risk is to minimize the negative impact of currency fluctuations on the result and cash flow. The company has a policy for the control of currency risk. Hedging is mainly done via forward transactions on expected incoming and outgoing cashflow covering the coming 12-24 months.