Glunz & Jensen A/S : Annual report / Årsrapport 2022

Glunz & Jensen Holding A/S; Selandia Park 1, 4100 Ringsted, Denmark

CVR 10239680

Glunz & Jensen is a supplier of innovative, high-quality plate making equipment and solutions for the global prepress industry. In addition to developing and producing processors for the Offset and Flexo printing industries, we also offer R&D services as well as a full-range of spare parts and wear parts and consumable parts. Further our product portfolio includes exposure units, dryers, light finishers, inline systems, mounting tables, plate stackers and software for monitoring and controlling the complete prepress process.

Our R&D, assembly and test facilities are in Presov, Slovakia, and our products are based on application know-how and own developed technology. In addition, we have an R&D and test facility in Odense, Denmark, working on behalf of our largest customer.

Glunz & Jensen has been operating in prepress for almost 50 years. We have long-standing relations with major industry leading companies such as Agfa, Asahi, DuPont, Fuji Film, Heidelberg, Kodak, MacDermid, Miraclon, Technova and XSYS. We market our products directly to key customers as well as through a comprehensive and worldwide network of distributors and dealers. We have approx. 108 employees in our facilities in Denmark, Slovakia, and the USA.

We strive to be the most innovative high-end equipment and services provider, delivering outstanding value for money in our product areas, and thereby growing our market share with our global partners. Further we aim to strengthen our earnings through improved profitability and optimization of manufacturing and supply chain.

Segment Prepress consists of two product areas described below:

OFFSET FLEXO

Products CtP and iCtP processors which prepare Offset plates for Offset printing as well as after-sales service Flexographic (Thermal and Solvent) equipment which process and handle plates for Flexo printing as well as after-sales service Primary applications Media industry - production of newspapers, magazines, books, etc. Packaging industry Share of revenue Approx. 51% of Prepress Approx. 49% of Prepress Main sales channels Through large customers such as Fuji Film, Kodak, Heidelberg, Technova and multiple large dealers Through large customers such as DuPont, MacDermid, Miraclon, Asahi, and multiple large dealers Markets Global Global Main market drivers Develop and supply new, innovative products and solutions in close cooperation with customers as well as ongoing consolidation to maintain critical mass. There has been and will be migration to digital platform-based solutions Improve technological solutions and automation of prepress production processes in close cooperation with customers. There will be focus on developing environmentally friendly solutions which reduce resource consumption and wastewater

Besides from the main segment Prepress Glunz & Jensen reports and operates within the segment investment property, Selandia Park.

TABLE OF CONTENTS

HEADLINES FOR 2022 .................................................................................................................................................. 3

GLUNZ & JENSEN HOLDING A/S LOCATIONS ............................................................................................................... 4

FINANCIAL HIGHLIGHTS .............................................................................................................................................. 5

BUSINESS AND FINANCIAL REVIEW ............................................................................................................................. 6

OPTIMIZATION OF THE VALUE CHAIN ......................................................................................................................... 7

OUTLOOK ................................................................................................................................................................... 8

FINANCIAL STATEMENTS ............................................................................................................................................ 9

RISK FACTORS ............................................................................................................................................................ 13

REPORTING ON MANAGEMENT ................................................................................................................................. 15

STATEMENT ON CORPORATE SOCIAL RESPONSIBILTY AND GENDER DIVERSITY ........................................................ 19

SHAREHOLDER INFORMATION .................................................................................................................................. 21

BOARD OF DIRECTORS AND EXECUTIVE MANAGEMENT ............................................................................................ 23

GROUP COMPANIES .................................................................................................................................................. 25

STATEMENT BY THE BOARD OF DIRECTORS AND THE EXECUTIVE MANAGEMENT ..................................................... 26

INDEPENDENT AUDITOR'S REPORT ............................................................................................................................ 27

INCOME STATEMENT ................................................................................................................................................. 31

STATEMENT OF COMPREHENSIVE INCOME ............................................................................................................... 31

BALANCE SHEET ......................................................................................................................................................... 32

STATEMENT OF CHANGES IN EQUITY ......................................................................................................................... 34

STATEMENT OF CASH FLOWS .................................................................................................................................... 36

NOTES ....................................................................................................................................................................... 37

DEFINITIONS OF RATIOS ............................................................................................................................................ 63

The consolidated financial statements are presented in compliance with International Financial Reporting Standards (IFRS) as adopted by the EU and additional requirements in the Danish Financial Statements Act. The registered office of Glunz & Jensen Holding A/S is in Denmark. References to the future in the annual report reflect Management's current expectations as to future events and financial results. References to the future are associated with uncertainty, and the results achieved may therefore deviate from the expectations stated in the annual report. Circumstances which may imply that results achieved differ from expectations are, e.g., developments in the business cycle and financial markets, including economic developments in the world, wars, pandemics, changes in laws and regulations affecting Glunz and Jensen Holding A/S' business areas and markets, trends in demand for products, competitive and supplier relationships, and energy and commodity prices. See also the sections on risk factors in the annual report.

HEADLINES FOR 2022

• • The accounting period in 2022 is from April 1st, 2022, to December 31st, 2022, hence covering a 9-month period only. The comparative figures in the accounting period 2021/22 are from April 1st, 2021, to March 31st, 2022, hence covering a period of 12 months. Unless otherwise stated, all references to 2022 cover a 9-month period, whereas all references to 2021/22 and earlier years are based on periods consisting of 12-month period. The reader should be cautious in comparing 2022 to 2021/22 and to previous years - without this important knowledge.

• • Revenue in Glunz & Jensen Holding A/S came to DKK 103,4 million in 2022 vs. DKK 147,0 million in 2021/22, equal to a 29,7% decrease in revenue. Offset revenue decreased by 31,5% to DKK 47,4 million (2021/22: increased 8,1%), while Flexo revenue decreased by 29,4% to DKK 46,3 million (2021/22: increased 9,4%). Revenue in Selandia Park decreased by 20,7% to DKK 9,7 million (2021/22: decreased 6,1%). Revenue was in line with our expectations announced to the market on November 22nd, 2022, as revenue then was communicated at a level of DKK 100-105 million.

• • Gross profit totaled DKK 27,5 million (2021/22: DKK 39,1 million), equal to an unchanged gross profit margin of 26,6% (2021/22: 26,6%).

• • Profit before financial income and expenses, tax, depreciation, amortization, and impairment of assets, - the EBITDA, was DKK 18,2 million (2021/22: DKK 23,9 million). The EBITDA was in line with our expectations announced to the market on November 22nd, 2022, as it was then communicated a level of DKK 17-20 million.

• • Profit for the year before tax totaled DKK 15,3 million (2021/22: DKK 14,6 million). This was in line with our expectations announced to the market on November 22nd, 2022, as profit for the year before tax was then expected a level of DKK 15-17 million. The improvement in profit for the year before tax is considered satisfactory.

• • Profit for the year totaled DKK 12,0 million (2021/22: DKK 12,1 million), equal to a profit in earnings per share (EPS) of DKK 6,6 in 2022 (2021/22: DKK 6,7 per share).

• • Net cash flows from operating activities came at DKK -9,3 million (2021/22: DKK 23,2 million), net investments were

  DKK -1,4 million (2021/22: DKK -4,1 million), and cash flow from financing activities were DKK 10,6 million (2021/22: DKK -18,9 million). Free cash flows at year-end were DKK -10,7 million (2021/22: DKK 19,1 million).

• • Revenue developed as follows in the 9 months of 2022 compared to the first 9 months of 2021/22: the Offset revenue decreased by 5,5% from DKK 50,2 million in 2021/22 to DKK 47,4 million in 2022. The 9 months revenue in Flexo decreased by 13,5% from DKK 53,5 million in 2021/22 to DKK 46,3 million in 2022. Revenue in Selandia Park increased by 5,5% during the 9 months to DKK 9,7 million in 2022 from DKK 9,2 million in 2021/22. In total the revenue for the first 9 months in 2022 was DKK 103,4 million comparable to the revenue for the first 9 months of 2021/22 of DKK 112,9 million.

• • The Board of Directors recommends not to distribute dividend for 2022.

GLUNZ & JENSEN HOLDING A/S LOCATIONS

Glunz & Jensen Prepress currently has 4 locations:

Ringsted, Denmark including headquarter, administration, finance, sales and service. In addition, there is a branch office in Odense, Denmark hosting Thermal R&D.

Presov, Slovakia including administration, finance, R&D, internal sales, Offset and Flexo manufacturing and global spare parts center.

Inman, SC, USA including service and regional spare parts center.

Investment properties in Selandia Park A/S are located in Ringsted, Denmark.