Side 20
At A Glance Our business Perfomance Highlights ESG Corporate governance Financial statements ESG Statements TCM Group Annual report 2023 20 non-recurring items Non-recurring items, DKK m Transaction costs related to business combinations Impairment of ERP Project, AUBO Production A/S Restructuring Costs related to Covid-19 and supply chain disruptions Net gain from the Celebert/ kitchn.dk transaction Total 2023 2022 2.8 0.0 1.9 0.0 5.1 4.7 0.0 5.4 0.0 -3.5 9.8 6.5 EBIT EBIT for the financial year 2023 was DKK 45.8 million (DKK 96.9 million). The decrease in EBIT compared to 2022 was driven by a lower gross margin, higher operating excenses and non- recurring costs. Net profit Net profit for the financial year 2023 was DKK 21.5 million (DKK 70.5 million). Free cash flow excl. acquisitions of operations Free cash flow excl. acquisitions of operations for 2023 was DKK 40.0 million against DKK 39.5 million in 2022. Free cash flow was negatively impacted by a lower operating profit, off set by a change in NWC of DKK 24.2 million compared to DKK -35.9 million in 2022. Cash conversion in 2023 was 37.6% (53.3%). Net working capital - NWC ratio -1.4% Net working capital at the end of 2023 was DKK -16.0 million (DKK -47.6 million). NWC ratio at the end of 2023 was -1.4% (-4.2%). The higher net working capital compared to 2022 was mainly explained by the acquisition of AUBO Production A/S, which due to a different operating model in Norway, carries a higher amount of working capital. The acquisition of AUBO Production A/S added inventories of DKK 29.7 million, hence the increase in inventories of DKK 11.8 million was fully driven by the acquisition. During the year inventories at all sites reduced as a result of the decision to decrease the stock of parts and raw materials after the supply situation in the market stabilized. Trade receivables and other receivables increased by DKK 39.3 million, where the acquisition of AUBO Production A/S added receivables of DKK 47.0 million. Other receivables as of 31 December 2023 is excluding DKK 8.5 million to subleases accounted for according to IFRS 16. These sub- lease receiveables are not considered to be part of net working capital. The operating liabilities increased by DKK 19.5 million, where the acquisition of AUBO Production A/S added operating liabilities of DKK 32.3 million. The extended credit for payroll taxes provided in the government’s inflation support package increased operating liabilities by c. DKK 5 million as of 31 December 2023. Net interest-bearing debt – leverage ratio 4.08 Net interest-bearing debt amounted to DKK 349.3 million at the end of 2023 (DKK 288.1 million). The increase in net interest-bearing debt was due to the acquisition of AUBO Production A/S. Equity - solvency ratio 44.1% Equity at the end of 2023 amounted to DKK 529.7 million (DKK 420.6 million). The equity increased by DKK 109.0 million since 1 January 2023 of which DKK 77.0 million was net proceeds from the issue of 1,221,419 new shares completed on 26 June 2023 and DKK 10.0 million from the issue of 149,925 new shares completed on 3 July 2023. The solvency ratio was 44.1% at the end of 2023 (43.4%). Events after the balance sheet date No subsequent events have occurred that materially affect TCM Group’s financial position. Svane Køkkenet Notes Platinum 2022 -16.0 2023 2021 2020 2019 -47.6 -108.9 -117.0 -81.6 Net working capital (dkkm) 0 -20 -40 -60 -80 -100 -120 -140 Equity at the end of 2023 amounted to DKK 529.7 million. The solvency ratio was 44.1% at the end of 2023. NWC ratio (%) -1.4 Leverage ratio 4.08
Side 21
At A Glance Our business Perfomance Highlights ESG Corporate governance Financial statements ESG Statements TCM Group Annual report 2023 21 Responsibility and sustainability have always been a part of the way we do business. Responsibility towards the environment, responsibility towards the customers and responsibility towards our employees and stakeholders. Readers' guide Non-financial disclosure requirements as per the Danish Financial Statement Act.* Topic Section 99A Business model Content of policies for sustainability, systems and due diligence processes results and KPIs: Social performance/data A sustainabile worklife Environmental performance/data We take responsibility Supplier management & anticorruption Page reference 8 22, 83-84 23-24 22, 81-82 25 27 Section 99b and 107d Target figures for the management body Policy for promoting underrepresented gender and diversity at management level 22, 31, 83, 85 24, 83 Section 99d Data ethics 31 * Covers TCM Group and all subsidiaries ESG review Infinity Sands
