Wavemaker A/S

Statement on gender composition Business risks The Company’s main business risks relate to the business sector’s investments in media and marketing activities. Consequently, the development of the Company is dependent on the general financial climate for enterprises in Denmark.

The Company's income statement for 2022 shows a profit for the year of TDKK 13,937 as against TDKK 13,273 in 2021. Equity in the Company's balance sheet at 31 December 2022 stood at TDKK 77,863 as against TDKK 63,926 at 31 December 2021. The forecast for 2022 showed a cautious low double-digit organic growth rate. The Company’s revenue for the financial year 2022 was TDKK 746,210, which is within the expected revenue range from TDKK 700,000 to TDKK 770,000. This represents an increase of 9% from 2021 where the revenue amounted to TDKK 683,385. The Company’s result before tax for the financial year 2022 was TDKK 17,920. We note a slight increase in the profit of the year and, while it might not seem significant in value, it is deemed satisfactory in light of the following elements. The Ukraine war that started in 2022 led to many uncertainties for our outlook. Throughout 2022 and to this day, we have been impacted by the inflation it created, supply chains have been under pressure and while the consumer confidence has stabilized by now, it resulted in some of our clients decreasing their marketing activity. We have felt pressure on staff cost due to both the higher inflation and the shortage of available talents. In addition, the recharges from GroupM Denmark A/S, providing the Company with services within administration, accounting, IT and business development, have increased and this led to higher external costs. This has been counterbalanced by significant Nordic and local client wins and a growth in diversity of products and services sold to our clients. As a consequence, our gross margin went from 8,6% in 2021 to 9,7% in 2022. The increase in staff costs has led to slight decrease of our operating margin from 2,5% in 2021 to 2,4% in 2022. We saw increased activity from clients across the board. We continued to expand the reach of high margin business areas such as Digital Commerce and Marketing Consulting Services as we deepen our engagement with our client base. The growth in the activity led to the best result in Wavemaker history. This diversification of services follows our longer-term strategy to transform our agency from a classical media agency to a marketing service consultancy, servicing clients from an outcome driven platform of seamlessly integrated marketing services, emphasizing the expert consultancy around the marketing products and services. Wavemaker again won acclaim in the media agency image survey (MyImage) improving awareness standings. 2022 was a year where Wavemaker Denmark broke our own records in terms of employee satisfaction, client satisfaction, client growth and profitability. The financial performance is more than satisfactory and exceeded our expectations.