Anders Nielsen & Co A/S

MANAGEMENT’S REVIEW

Developments in activities and economic conditions'Parent companyThe revenue for 2022 amounts to 769 mDKK against 589 mDKK last year, corresponding to a totalgrowth of 31%.The positive development in revenue was driven by a growth in number of transports due to both organicgrowth and the full impact of acquisitions made in 2021. Increasing transport rates also contributed to ahigher revenue.Profit before tax equals 68,4 mDKK against 40,8 mDKK last year. After tax, the result is 56,8 mDKKagainst 32,2 mDKK last year.Rien Boom & Zn. B.V. in The Netherlands have contributed positively to the all-time high revenue.The higher fuel surcharge and rate increases are also important factors affecting the revenue growth in 2022.All cost categories have increased significantly during 2022 to support the top-line growth and to handlethe challenges arising from port congestions, vessel delays, lack of capacity and especially less flexibilitydue to the European Road Package.Despite these challenges we have harvested significant economies of scale and cost savings within theexisting business and through successful integrations of the acquisitions done in 2021 and 2022.This has allowed us to improve the overall performance.Besides the above, there are no other relevant issues regarding the parent company not mentioned inmanagement’s review for the Group.'The GroupThe total Group revenue for 2022 amounts to 1.312 mDKK against 1.006 mDKK last year.A very strong growth of 30%, equal to 306 mDKK was achieved under difficult market conditions.There are several factors affecting the overall growth in revenue in all our markets.The underlying growth in volume continues to develop in a positive direction, especially our intermodalactivities in Germany, start-up of a new office in Rhein/Ruhr area and the acquisition of Transport RienBoom & Zn. B.V. in The Netherlands have contributed positively to the all-time high revenue.The higher fuel surcharge and rate increases are also important factors affecting the revenue growth in 2022.All cost categories have increased significantly during 2022 to support the top-line growth and to handlethe challenges arising from port congestions, vessel delays, lack of capacity and especially less flexibilitydue to the European Road Package.Despite these challenges we have harvested significant economies of scale and cost savings within theexisting business and through successful integrations of the acquisitions done in 2021 and 2022.This has allowed us to improve the overall performance.Profit before tax equals 73,8 mDKK against 41,4 mDKK last year.After tax, the result is 56,8 mDKK against 32,2 mDKK last year.All our markets have delivered profits above budget and a positive development compared to 2021.Our markets outside Denmark contribute to the Group profit to a much larger extent than seen inprevious years.Our expectation in the Management’s review for 2021 was a higher revenue in 2022, which we haveachieved with a revenue growth of 30%.We also expected the profit before tax in 2022 to be higher than in 2021 which in 2022 to be higher thanin 2021 which we also superseded as profit before tax in 2022 is 32,8 mDKK higher than in 2021.Overall, the Group’s result for 2022 is very satisfactory, taking the very diffi cult market conditions into account.Cash balance, investments and financingAt the end of 2022, the Group’s cash balance amounted to 87,7 mDKK.Operating activities generated 134,4 mDKK cash and 61,5 mDKK was used for investment activities.Of these investment activities, 18,1 mDKK was fi nanced by new lease agreements.IT securityTo ensure the best possible protection against cyber-attacks, we invest heavily in securing our digitalbusiness systems.We have ongoing mandatory courses for all employees to strengthen “The Human Firewall”.We have implemented a disaster recovery setup, that is being tested with all local disaster recoveryteams every 3 months.Operating with brand new, clean PCs we can launch our disaster recovery plans if we are ever hit by acyber-attack.Nevertheless, we have also taken on a comprehensive cyber-attack insurance.IT policiesWe have an IT policy that is being continuously updated as needed.New employees are introduced to the IT-setup as a part of the employee onboarding as well as there areongoing mandatory trainings for all employees to ensure “The Human Firewall”.These policies govern the use of IT resources such as the available hardware, systems, Internet etc.The purpose of these policies is to protect the company and its stakeholders against breakdown as wellas misuse of our data.The policies cover and governs the following headlines• Password protection and behaviours associated with this• Use of the Internet• Private use of corporate IT equipment