Tavex A/S

The Company's principal activities The Company's principal activities consist in trading with precious metals and provision of currency exchange and services related thereto, including money remittance. Development in the activities and the financial position The Company's Income Statement of the financial year 1 January 2022 - 31 December 2022 shows a result of 3.359.015 DKK and the Balance Sheet at 31 December 2022 a total of 24.670.773 DKK and an equity of 3.917.440 DKK. The Company continues its increased focus on regulatory matters, herein on compliance, as the company is subject to Danish Act on Measures to Prevent Money Laundering and Financing of Terrorism (AML/CFT regulation). The Company continues to apply risk-based approach taking into consideration risks deriving from customers, products, and service channels. The Company also adheres to the risk appetite set forth in the Group Risk Appetite Policy (share of high-risk and medium-risk customers from the total of customers). The three layers of defense are first, second and third line of defense.  Despite changes in key staff, the Company has been successful to implement controls in all three lines. A significant change to previous years has been in accordance with the guidelines from the Danish Financial Supervisory Authority to integrate more efficiently the risk assessment of agent services into the general risk assessment of the Company. That integration has resulted in a new and more thorough overall risk assessment of the Company covering risk analysis of agent services. The updated risk analysis has resulted in applying KYC procedures also by the Company (as an agent) in addition to the payment service provider. Special attention and resources are allocated to customers who have a connection to EU Commission high-risk third countries, for example customers who reside in Denmark, but are citizens of these high-risk countries.  A great deal of improvements related to AML/CFT are related to new technologies and development of the Company's IT systems. Such an example is the MitID integration to the Companies IT-systems as an additional layer of verifying distance customers' identity (98% of the Companies customers are physically present in its location). The development of IT-systems shall continue in 2023 to comply with the requirements set forth by the authorities and industry standards set forth in soft law. It is expected that the expenditure for IT development in 2023 shall remain approximately on the same level as it was in 2022. The Company continues to focus even more on online sales channel in 2023, i.e., the Company's website. The development of the website is motivated by the progress of e-commerce globally and especially in Scandinavia. Sale of precious metals has not been an exception to this trend. The Company's website is primarily focused on sale of precious metals, and a to a smaller degree promoting other financial services. The competitive advantage of the Company compared to competitors can be described as an opportunity to offer favorable margins on investment gold products due to the Groups ability to make significant bulk purchases from the biggest producers globally: Valcambi, Pamp, Perth Mint, Royal Mint, Austrian Mint etc. The Company has without a doubt the biggest physical inventory of physical products in Denmark, which allows day-to-day deliveries to its customers, whereas many competitors are only collecting backorders with very long delivery time.  Gold prices have reached all-time highs in 2022 and physical precious metals have gained great interest as investors find investments into precious metals as a safe haven compared to expected higher volatility in stock markets and economic unstability. Post financial year events After the end of the financial year, no events have occurred which may change the financial position of the entity substantially.

Development in the activities and the financial position The Company's Income Statement of the financial year 1 January 2022 - 31 December 2022 shows a result of 3.359.015 DKK and the Balance Sheet at 31 December 2022 a total of 24.670.773 DKK and an equity of 3.917.440 DKK. The Company continues its increased focus on regulatory matters, herein on compliance, as the company is subject to Danish Act on Measures to Prevent Money Laundering and Financing of Terrorism (AML/CFT regulation). The Company continues to apply risk-based approach taking into consideration risks deriving from customers, products, and service channels. The Company also adheres to the risk appetite set forth in the Group Risk Appetite Policy (share of high-risk and medium-risk customers from the total of customers). The three layers of defense are first, second and third line of defense.  Despite changes in key staff, the Company has been successful to implement controls in all three lines. A significant change to previous years has been in accordance with the guidelines from the Danish Financial Supervisory Authority to integrate more efficiently the risk assessment of agent services into the general risk assessment of the Company. That integration has resulted in a new and more thorough overall risk assessment of the Company covering risk analysis of agent services. The updated risk analysis has resulted in applying KYC procedures also by the Company (as an agent) in addition to the payment service provider. Special attention and resources are allocated to customers who have a connection to EU Commission high-risk third countries, for example customers who reside in Denmark, but are citizens of these high-risk countries.  A great deal of improvements related to AML/CFT are related to new technologies and development of the Company's IT systems. Such an example is the MitID integration to the Companies IT-systems as an additional layer of verifying distance customers' identity (98% of the Companies customers are physically present in its location). The development of IT-systems shall continue in 2023 to comply with the requirements set forth by the authorities and industry standards set forth in soft law. It is expected that the expenditure for IT development in 2023 shall remain approximately on the same level as it was in 2022. The Company continues to focus even more on online sales channel in 2023, i.e., the Company's website. The development of the website is motivated by the progress of e-commerce globally and especially in Scandinavia. Sale of precious metals has not been an exception to this trend. The Company's website is primarily focused on sale of precious metals, and a to a smaller degree promoting other financial services. The competitive advantage of the Company compared to competitors can be described as an opportunity to offer favorable margins on investment gold products due to the Groups ability to make significant bulk purchases from the biggest producers globally: Valcambi, Pamp, Perth Mint, Royal Mint, Austrian Mint etc. The Company has without a doubt the biggest physical inventory of physical products in Denmark, which allows day-to-day deliveries to its customers, whereas many competitors are only collecting backorders with very long delivery time.  Gold prices have reached all-time highs in 2022 and physical precious metals have gained great interest as investors find investments into precious metals as a safe haven compared to expected higher volatility in stock markets and economic unstability. , The Company's Income Statement of the financial year 1 January 2022 - 31 December 2022 shows a result of 3.359.015 DKK and the Balance Sheet at 31 December 2022 a total of 24.670.773 DKK and an equity of 3.917.440 DKK. The Company continues its increased focus on regulatory matters, herein on compliance, as the company is subject to Danish Act on Measures to Prevent Money Laundering and Financing of Terrorism (AML/CFT regulation). The Company continues to apply risk-based approach taking into consideration risks deriving from customers, products, and service channels. The Company also adheres to the risk appetite set forth in the Group Risk Appetite Policy (share of high-risk and medium-risk customers from the total of customers). The three layers of defense are first, second and third line of defense.  Despite changes in key staff, the Company has been successful to implement controls in all three lines. A significant change to previous years has been in accordance with the guidelines from the Danish Financial Supervisory Authority to integrate more efficiently the risk assessment of agent services into the general risk assessment of the Company. That integration has resulted in a new and more thorough overall risk assessment of the Company covering risk analysis of agent services. The updated risk analysis has resulted in applying KYC procedures also by the Company (as an agent) in addition to the payment service provider. Special attention and resources are allocated to customers who have a connection to EU Commission high-risk third countries, for example customers who reside in Denmark, but are citizens of these high-risk countries.  A great deal of improvements related to AML/CFT are related to new technologies and development of the Company's IT systems. Such an example is the MitID integration to the Companies IT-systems as an additional layer of verifying distance customers' identity (98% of the Companies customers are physically present in its location). The development of IT-systems shall continue in 2023 to comply with the requirements set forth by the authorities and industry standards set forth in soft law. It is expected that the expenditure for IT development in 2023 shall remain approximately on the same level as it was in 2022. The Company continues to focus even more on online sales channel in 2023, i.e., the Company's website. The development of the website is motivated by the progress of e-commerce globally and especially in Scandinavia. Sale of precious metals has not been an exception to this trend. The Company's website is primarily focused on sale of precious metals, and a to a smaller degree promoting other financial services. The competitive advantage of the Company compared to competitors can be described as an opportunity to offer favorable margins on investment gold products due to the Groups ability to make significant bulk purchases from the biggest producers globally: Valcambi, Pamp, Perth Mint, Royal Mint, Austrian Mint etc. The Company has without a doubt the biggest physical inventory of physical products in Denmark, which allows day-to-day deliveries to its customers, whereas many competitors are only collecting backorders with very long delivery time.  Gold prices have reached all-time highs in 2022 and physical precious metals have gained great interest as investors find investments into precious metals as a safe haven compared to expected higher volatility in stock markets and economic unstability.