Connox GmbH

Hannover

Befreiender Konzernabschluss zum Geschäftsjahr vom 01.08.2021 bis zum 31.07.2022

NINE UNITED A/S

Horsens/Dänemark

Company reg. no. 25934458

The annual report was submitted and approved by the general meeting on 22 November 2022

Mogens Madsen, Chairman

Note to users of the English version of this document:

This document is a translation of a Danish version of the document. In the event of any dispute regarding the interpretation of any part of the document, the Danish version of the document shall prevail.

Contents

Management's statement

Independent auditor's report

Company information

Group organisation chart

Management's review

Key figures and financial ratios

Accounting policies

Income statement

Balance sheet

Consolidated statement of changes in equity

Cash flow statement

Notes

Management's statement

Today, the Board of Directors and Managing Director considered and adopted the Annual Report for NINE UNITED A/S for the financial year from 1 August 2021 - 31 July 2022.

The Annual Report is presented in accordance with the Danish Financial Statements Act.

We consider the accounting policies applied to be appropriate and it is our opinion that the consolidated financial statements and the annual accounts give a true and fair view of the assets, liabilities and financial position of both the Group and the Company as of 31 July 2022, as well as the results of both Company and Group operations and cash flow for the financial year from 1 August 2021 - 31 July 2022.

In our opinion, the content of the management report presents a true and fair account of the matters addressed in the report.

The annual report is submitted to the annual general meeting for approval.

Horsens, 22 November 2022

Managing Director

Mogens Viktor Madsen

Board of Directors

Troels Holch Povlsen

Merete Bech Povlsen

Anders Holch Povlsen

Neils Holch Povlsen

Independent auditor's report

To the shareholders of NINE UNITED A/S

Opinion

We have audited the consolidated financial statements and the parent company financial statements of NINE UNITED A/S for the financial year 1 August 2021 to 31 July 2022, which comprise a summary of significant accounting policies, income statement, balance sheet and notes for both the Group the Parent Company, as well as consolidated statement of cash flows. The consolidated financial statements and the parent company financial statements are prepared under the Danish Financial Statements Act.

In our opinion, the consolidated financial statements and the parent company financial statements give a true and fair view of the financial position of the Group and the Parent Company at 31 July 2022, and of the results of the Group and the Company's operations as well as the consolidated cash flows for the financial year 1 August 2021 - 31 July 2022 in accordance with the Danish Financial Statements Act.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the "Auditor's Responsibilities for the Audit of the Consolidated Financial Statements and the Parent Company Financial Statements" section of our report. We are independent of the Group in accordance with the International Ethics Standards Board for Accountants' International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion Management's

Responsibilities for the Consolidated Financial Statements and the Parent

Company Financial Statements

Management is responsible for the preparation of consolidated financial statements and parent company financial statements that give a true and fair view in accordance with the Danish Financial Statements Act, and for such internal control as Management determines is necessary to enable the preparation of consolidated financial statements and parent company financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements and the parent company financial statements, Management is responsible for assessing the Group's and the Parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting in preparing the consolidated financial statements and the parent company financial statements unless Management either intends to liquidate the Group or the Company or to cease operations, or has no realistic alternative but to do so.

Auditor's Responsibilities for the Audit of the Consolidated Financial Statements and the Parent Company Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements and the parent company financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements and parent company financial statements.

As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional judgment and maintain professional skepticism throughout the audit.

We also:

Identify and assess the risks of material misstatement of the consolidated financial statements and the parent company financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

•	Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's and the Company's internal control.
•	Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management.
•	Conclude on the appropriateness of Management's use of the going concern basis of accounting in preparing the consolidated financial statements and the parent company financial statements and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's and the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements and the parent company financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group and the Company to cease to continue as a going concern.
•	Evaluate the overall presentation, structure and contents of the consolidated financial statements and the parent company financial statements, including the disclosures, and whether the consolidated financial statements and the parent company financial statements represent the underlying transactions and events in a manner that gives a true and fair view.
•	Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Statement on Management report

Management is responsible for Management's Review.

Our opinion on the consolidated financial statements and the parent company financial statements does not cover Management's Review, and we do not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements and the parent company financial statements, our responsibility is to read Management's Review and, in doing so, consider whether Management's Review is materially inconsistent with the consolidated financial statements and the parent company financial statements or our knowledge obtained during the audit, or otherwise appears to be materially misstated.

Moreover, it is our responsibility to consider whether Management's Review provides the information required under the Danish Financial Statements Act.

Based on the work we have performed, we conclude that Management's Review is in accordance with the financial statements and has been prepared in accordance with the requirements of the Danish Financial Statement Act. We did not identify any material misstatement of Management's Review.

Brande, 22 November 2022

Partner Revision
Statsautoriseret revisionsaktieselskab

Company reg. no. 15 80 77 76

Claus Lykke Jensen, State Authorised Public Accountant, mne10776

Company information

Company	NINE UNITED A/S
	Havnen 1
	8700 Horsens
	Company reg. no.: 25934458
	Established: 23 February 2001
	Domicile: Horsens
	Financial year: 1 August 2021 - 31 July 2022
Board of Directors	Troels Holch Povlsen
	Merete Bech Povlsen
	Anders Holch Povlsen
	Niels Holch Povlsen
Managing Director	Mogens Viktor Madsen
Auditors	Partner Revision, statsautoriseret revisionsaktieselskab
	Torvegade 22
	7330 Brande
	Company reg. no.: 15807776
Subsidiaries	Aktieselskabet af 26.10.2018, Horsens
	- Alma by G ApS, Skanderborg
	De 5 Gaarde A/S, Horsens
	Aktieselskabet af 1, Horsens
	- Nine United Properties Denmark A/S, Horsens
	- United Properties A/S, Horsens
	- Louises Hus A/S, Horsens
	- Vimmelskaftet A/S
	- Frederiksgade A/S, Horsens
	- Elefanthuset KBH A/S, Horsens
	- Nine United Properties Spain S.L., Spain
	- Nine United Turkey Ltd., Turkey
	- Number Nine bvba, Belgien Nine United Classic A/S, Horsens Aktieselskabet af 30. april 2008, Horsens Union Nine A/S, Horsens
	- Nine United France SaS, France
	- Nine United Brand & Design AG, Switzerland
	Nine United UK Ltd., England
	- Nine United Germany GmbH, Germany
	- Nine United Trading Spain s.Lu., Spain
	- Nine United N.L. B.V., Netherlands
	- Nine United Belgium bvba, Belgium
	- Connox GmbH, Germany
	- Ambiente Direct GmbH, Germany
	- Flinders B.V., Holland
	- Nine United Scandinavia A/S, Horsens
	- Frandsen Group US Inc., USA
	- &Tradition A/S, Copenhagen
	- &Tradition Norway AS, Norway
Participating interests	Nine United Logistics A/S, Horsens

Group organisation chart

Management's review

Main activity

As in previous years, the main activity of the parent company consisted of trading, investing and related activities.

During the year, the main activities of the Group consisted of manufacturing and trading in furniture and lighting, the operation of the Group properties, as well as investment and related activities.

Developments in activities and economic conditions

Parent company

The income statement for the parent company for 2021/22 shows a negative profit after tax of DKK 45 million and equity of DKK 2,282 million.

The result differs negatively from the expectations in the annual report for 2020/21, in which management expected an ordinary profit after tax of DKK 70-90 million.

The departure is partially due to a negative return on the company securities as a result of the significant increase in interest rates in the second half of the financial year and partially a result of declining activity, especially at companies operating in the online market.

Group

The income statement for the parent company for 2021/22 shows a negative profit after tax of DKK 36 million and equity of DKK 2,712 million.

The result should be compared with the fact that in the annual report for 2020/21, the company expected an ordinary profit after tax of DKK 110-130 million. The departure is primarily due to declines in returns on the Group securities portfolio.

Management considers the results for both the parent company and the group to be unsatisfactory.

Special risks - operational risks and financial risks

Operational risks

The Group has concluded the necessary agreements regarding the supply of materials and finished products in order to ensure a stable supply. Risk conditions associated with the operation remain unchanged.

Currency risks

Activities abroad mean that profit, cash flows and equity are affected by exchange rate and interest rate developments for a number of currencies. It is Company policy to hedge commercial currency risks where these are deemed material for the Company. Hedging takes place primarily through foreign exchange transactions in order to hedge expected currency movements within the next 12 months. There are no speculative currency transactions made.

Exchange rate risks related to investments in subsidiaries abroad are generally not hedged, as it is the opinion of the Company that ongoing hedging of such long-term investments would not be optimal from an overall risk and cost point of view.

Interest rate risks

The interest-bearing debt does not constitute a significant amount, which is why moderate changes in the interest rate level do not significantly effect the interest expenses of the group or the Company.

The securities holdings of the parent company and the Group consist mainly of short-term bonds and similar securities. Minor changes in the interest rate level will therefore not have a significant impact on the return, whereas larger changes will result in price adjustments and effects on the result for the year.

Liquidity risks

It is Group policy that operations must be self-financing. Real estate investments can be partially financed through longterm credits in a balanced ratio.

Special risks

It is assessed that there are no special risks beyond the commonly occurring risks that may have an impact on the Company.

Management report

Objectives and expectations for the coming year

The general slowdown in the economy in Western Europe that is due to a number of factors including rising inflation is expected to continue in the financial year 2022/23.

The slowdown is expected to impact the Group online sales, where only a slight increase is expected compared to 2021/22. At the same time, rising commodity prices, etc. are expected to result in a slightly decreasing coverage ratio in several segments.

For 2022/23 financial year, the Group is therefore expected to return a profit a of between DKK 75 and 100 million, depending on the development of subsidiaries and interest rates.

For the parent company, an activity level at the current level and a profit of DKK 50 to 70 million is expected in 2022/23.

Knowledge resources

The most important resource for the Group is its employees. The Group wishes to promote and strengthen a physically, mentally and socially well-functioning working environment for all employees. This is done inter alia, by actively involving employees at all levels of the organisation.

Research and development activities

The Group product portfolio is developed on an ongoing basis through internal design and collaboration with external designers, just as the Group IT platforms are also developed on an ongoing basis. In addition, the Group does not conduct any development activities.

Anti-corruption and bribery

The Company distances itself from all forms of corruption and bribery. It is a fundamental part of the Company values that the employees of the Company are instructed to not receive or offer valuables or similar with the intention of obtaining unfair advantage.

The Company has an open-door policy and the individual employee always has the opportunity to approach human resources or their line manager if there is any doubt surrounding violations of the Company anti-corruption policy.

There was no violation of the rules detected, either during the financial year or after the end of the financial year.

Climate

The Group attempts to minimise the impact on the global climate on several levels, cf. policy work in this area. This occurs through both increasing the use of sustainable materials by collaborating with suppliers who live up to the Code of Conduct and through the development of high-quality products with long life cycles.

Data ethics

The Company does not have a policy for data ethics, as the Company does not systematically collect and process large amounts of data. On the other hand, the Company has a personal data policy in order to ensure compliance with applicable GDPR legislation.

Statement of social responsibility in accordance with Section 99a of the Danish Financial Statements Act

Business model

The main activities of the Group can be divided into the following main categories:

•	Investment in and the leasing of property
•	Design and business-to-business sales of furniture and lighting items
•	E-commerce (business-to-consumer) sales of furniture, lighting items and accessories
•	Investment in securities

Nine United A/S and subsidiaries work actively to conduct business within these areas with regard to social responsibility and a focus on common sense.

Policies

Taking into account the broad composition of companies that operate companies in different markets and industries, there is no comprehensive set of policies, including procedures and systems that are worked on.

Within the main categories referred to above, there are policies available for a number of areas including health and safety at work. Our working environment policy is targeted at continuous improvement of employee job satisfaction, safety and health.

Nine United A/S and its subsidiaries have a strong focus on climate policy and are working on a sustainability strategy based on the supply chain with a focus on:

•	Design and product development
•	Supply chain management and compliance
•	Logistics and packaging
•	Reporting and follow-up on established KPIs

In addition, we continuously work with the Code of Conduct across the companies and in collaboration with suppliers and customers. This is done with the following main objectives:

•	To respect internationally recognised human rights
•	To support the elimination of child labour
•	To support the elimination of discrimination in relation to terms and conditions of employment
•	To ensure a good working environment
•	To ensure environmental friendliness and take initiatives to promote environmental responsibility
•	To act in accordance with applicable competition law, including not offering or accepting any bribe
•	To influence our partners to also comply with the above requirements

To ensure that many of our initiatives are anchored in the Company and to ensure an overall vision, last year Nine United A/S developed and implemented a sustainability strategy. With this initiative as a basis, a large number of measures have been defined that will be implemented. This will ensure that responsibility and sustainability become part of the Group DNA and it will thus play a role in all matters. This strategy also incorporates a number of indicators that we want to report on in the future.

Objectives and activities

The companies in Nine United A/S are continuously evaluated on activities and progress within work around social responsibility. The evaluation is based on a wide range of parameters, which include management, employees, society, environment and customers. Our aim is to improve this evaluation every year and we have been able to achieve this so far. The evaluation ensures that we identify the areas in which we potentially have a high impact, but also where we have the opportunity to make a positive difference. Some of the areas identified by Nine United A/S and the Group as important in relation to environmental, social and governance considerations are listed below, along with the measures we have implemented to try to turn potential negative impacts into positive ones:

•	In all Nine United companies and as a central part of the sustainability strategy, we have implemented a set of minimum sustainability requirements that will serve as a baseline across the companies. These requirements span environmental, social and governance considerations to ensure that we can make a joint promise to our customers and each other.
•	In order not to contribute to the depletion of resources, we work on several levels to reduce the amount of materials used. Over the past year, we have implemented packaging requirements so that the amount of packaging is reduced and the materials used are either renewable or recyclable. In addition, we try to use recycled materials in all products where possible, such as plastic and metal. For the coming years, we have a goal that all plastic components over 100 grams must be made of post-consumer recycled material.
•	To reduce our impact on the climate, we are actively working to reduce our CO2 emissions and over the past year we have initiated an overall estimation of our emissions using the Greenhouse Gas Protocol and mapping of scopes 1, 2 and 3. In addition, we are working to calculate the climate impact at product level to be able to both prevent emissions when developing new products and also reduce emissions on our existing range.
•	To protect our supply chain employees, our customers and the environment, we have introduced a wide range of chemical requirements that are in line with the eco-labels. This means inter alia, that in the past year we have phased out the use of PUR lacquer in large parts of our collection.
•	In order to be able to verify a number of the actions we have taken, we have significantly increased the amount of products that are eco-labelled over the past year.

Human rights

Nine United A/S and the companies below support and respect human rights. It is Group policy to endeavour to ensure that human rights are always respected in relation to both employees and business partners.

Part of this effort is to ensure a safe and secure working environment for all employees in all countries where the Group is represented. This applies to both the physical and psychological working environment. This effort is demonstrated inter alia, by compliance with legislation in the area, as well as guidelines for employees that appear in staff handbooks, etc.

In relation to suppliers and partners, they are also expected to consider human rights as important and to have a generally high moral standard in connection with the conclusion of business. A natural consequence of the Group policy is to stop cooperating with companies where the Group has become aware that human rights are not fully respected.

Report on the gender composition of management in accordance with section 99b of the Danish Financial Statements Act

Target figures for the Board of Directors

Nine United A/S wants to be an inclusive workplace without discrimination. Employees are hired solely on the basis of an assessment of skills and experience. Gender, belief, age, nationality, etc. are not considered relevant in connection with employment.

In order to comply with current legislation, target figures have been formulated for equal representation of men and women on the Board of Directors of Nine United A/S.

In 2022, the target figure for the underrepresented gender on the Board of Directors for Nine United A/S is 25%, which has been met in the 2021/22 financial year.

At the other management levels, Nine United A/S currently has an equal gender distribution.

Key figures and financial ratios

	2021/22	2020/21	2019/20	2018/19	2017/18
	kDKK	kDK	kDKK	kDKK	kDKK
Group
Income statement
Net turnover	2,201,343	1,662,330	621,281	135,325	112,109
Gross profit	460,537	335,683	112,554	74,327	66,262
Operating profit/loss	59,414	68,708	-23,085	24,377	6,536
Net financial items	-69,162	156,288	477,365	63,608	39,259
Profit/loss for the year	-35,714	167,425	448,340	72,751	422,042
Balance Sheet:
Balance sheet total	3,887,396	3,773,504	3,379,741	2,769,813	2,694,741
Investment in tangible fixed assets	-71,378	-93,677	-19,068	-11,817	-239,557
Equity	2,711,739	2,619,734	2,471,914	1,995,238	1,924,599
Cash flow statement:
Operating activity	91,254	245,697	68,179	64,535	68,179
Investment activity	-173,045	-371,591	4,819	-200,106	-252,131
Financing activity	81,580	22,914	-115,591	-8,738	322,668
Employees:
Average number of employees
	740	496	337	58	59
Financial ratios in %: ^*)
Gross margin	20.9	20.2	18.1	54.9	59.1
Profit margin	2.7	4.1	0.0	18.0	5.8
Solvency ratio (%)	69.8	69.4	73.1	71.3	70.6
Return on equity (ROE) (%)	-1.3	6.6	20.1	3.8	24.7

^*) The financial ratios have been prepared in accordance with the "Recommendations & Financial Ratios 2015" of the Danish Financial Analysts' Association. Financial ratios with negative value are not specified. The definitions of the ratios are provided in the section on accounting policies applied

	2021/22	2020/21	2019/20	2018/19	2017/18
	kDKK	kDKK	kDKK	kDKK	kDKK
Parent company
Income statement
Net turnover	41,884	33,860	29,059	29,211	31,431
Gross profit	24,779	19,954	18,247	20,212	21,778
Operating profit/loss	-4,771	-5,180	-2,699	-206	-6,967
Net financial items	-48,190	167.901	458,545	78,970	408,211
Profit/loss for the year	-45,112	136,999	454,145	70,811	398,972
Balance Sheet:
Balance sheet total	2,394,711	2,641,026	2,454,305	1,986,733	1,911,620
Investment in tangible fixed assets	0	-878	-301	-356	-389
Equity	2,281,642	2,512,690	2,423,151	1,973,902	1,903,083
Cash flow statement:
Operating activity	-113,241	98,856	20,426	21,010	-104,479
Investment activity	120,651	-142,336	-87,201	-186,668	298,235
Financing activity	-5,161	4,816	1,972	0	0
Employees:
Average number of employees	52	46	41	41	48
Financial ratio in %: ^*)
Gross margin	59.2	58.9	63.8	69.2	69.3
Profit margin	0.0	0.0	0.0	0.0	0.0
Solvency ratio (%)	95.3	95.1	98.7	99.4	99.6
Return on equity (ROE) (%)	-1.9	5.6	20.7	3.7	23.4

^*) The financial ratios have been prepared in accordance with the "Recommendations & Financial Ratios 2015" of the Danish Financial Analysts' Association. Financial ratios with negative value are not specified. The definitions of the ratios are provided in the section on accounting policies applied

Accounting policies

Reporting class

The Annual Report for NINE UNITED A/S for 2021/22 has been presented in accordance with the provisions of the Danish Financial Statements Act that apply to large companies in reporting class C.

The accounting policies applied remain unchanged from last year, and the annual report is presented in DKK.

General information regarding recognition and measurement

The income statement recognises income as it is earned. This includes value adjustments of financial assets and liabilities. The profit and loss statement also recognises all costs, including depreciation, amortisation and provisions, as well as reversals as a result of revised accounting estimates of amounts previously recognised in the profit and loss statement.

Assets are recognised on the balance sheet when future financial benefits are likely to accrue to the Group and the value of the asset can be reliably measured.

Liabilities are recognised on the balance sheet when it is likely that future financial benefits will depart from the Group and the value of the liability can be reliably measured.

At initial recognition, assets and liabilities are measured at cost. Subsequently, assets and liabilities are measured as described below for each accounting item.

Certain financial assets and liabilities are measured at amortised cost, through which a constant effective interest rate is recognised over the maturity. Amortised cost is calculated as original cost less any instalments and additions/deductions of the accumulated amortisation of the difference between cost price and nominal amount. In this way, capital losses and gains are distributed over the life of the asset or liability.

Recognition and measurement take into account foreseeable losses and risks that arise before the financial statements and concerning matters existing on the balance sheet date.

Foreign currency conversion

Foreign currency transactions are converted at the transaction date rate. Exchange rate differences that arise between the rate on the transaction date and the rate on the date of payment are recognised in the profit and loss statement as a financial item.

Receivables, payables and other monetary items denominated in foreign currency, which have not been settled on the balance sheet date are translated at the exchange rate on the balance sheet date. The difference between the balance sheet date and the rate at the time when receivables or liabilities arise is recognised in the profit and loss statement under financial income and expenses.

If the foreign subsidiaries and participating interests meet the criteria for independent entities, the profit and loss statements are converted at an average exchange rate for the period and the balance sheet items are converted at the exchange rates on the balance sheet date. Exchange differences arising from the conversion the equity of foreign subsidiaries at the beginning of the year to the exchange rates on the balance sheet date are recognised directly in equity. This also applies to exchange differences arising from the conversion of profit and loss statements from average exchange rates to the exchange rates on the balance sheet date.

Consolidated financial statements

The consolidated financial statements comprise the parent company, NINE UNITED A/S and subsidiaries in which NINE UNITED A/S directly or indirectly holds more than 50% of the voting rights or otherwise has a controlling influence. Undertakings in which the group holds between 20 % and 50 % of the voting rights and exercises significant but not decisive influence are considered participations within the meaning of the Group overview.

Consolidation will eliminate intra-group income and expenses, shareholdings, internal balances and dividends, as well as realised and unrealised profits and losses arising from transactions between the consolidated undertakings.

Investments in subsidiaries are offset against the proportion of the fair market value of net assets and liabilities of the subsidiaries at the time of acquisition.

Newly acquired or newly formed companies are recognised in the consolidated financial statements from the date of acquisition. Sold or liquidated companies are recognised in the consolidated financial statements up to the date of transfer. Comparative figures are not adjusted for newly acquired, sold or liquidated enterprises. Discontinued activities are presented separately, cf. above.

For acquisitions of new companies, the acquisition method is used under which the identified assets and liabilities of the newly acquired companies are measured at fair value at the time of acquisition. A provision is included to cover the costs of decided and announced restructuring of the acquired company in connection with the acquisition. The tax effect of the revaluations conducted will be taken into account.

Positive differences (goodwill) between cost and fair value of acquired identified assets and liabilities, including provisions for restructuring are recognised under intangible fixed assets and are systematically depreciated over the profit and loss statement after an individual assessment of the economic lifespan, up to a maximum of 20 years. Negative difference amounts (negative goodwill) are recognised in the profit and loss statement at the time of acquisition.

Goodwill and negative goodwill from acquired companies may be adjusted until the end of the year following acquisition.

Profit or loss that arises from the disposal or liquidation of subsidiaries and participating holdings are calculated as the difference between the sale price or settlement price and the carrying value of net assets at the time of sale, including undepreciated goodwill and expected costs of sale or liquidation.

Minority interests

In the consolidated financial statements, the accounting items of the subsidiaries are recognised 100 %. The proportionate share of minority interests in the profit and equity of subsidiaries is adjusted annually and shown as separate items in the profit and loss statement and on the balance sheet.

Profit and loss statement

Net turnover

Net turnover is recognised in the profit and loss statement if delivery and transfer of risk to the buyer have taken place before the end of the year and if the income can be reliably calculated and expected to be received. Net turnover is recognised net of VAT and taxes and less discounts on sales.

Cost of raw materials and consumables

Costs for raw materials and consumables include the purchase of raw materials and consumables less discounts, as well as the shift in inventories for the year.

Other operating income and expenses

Other operating income and expenses contain accounting items of a secondary nature to the main activities of the companies.

Other external costs

Other external costs include costs for distribution, sales, advertising, administration, premises and losses on debtors.

Staff costs

Staff costs include salaries and wages including holiday pay and pensions, as well as other social insurance costs, etc. for employees of the company. Allowances received from public authorities are deducted in staff costs.

Depreciation of intangible and tangible fixed assets

Depreciation of intangible and tangible fixed assets includes depreciation and amortisation of intangible and tangible fixed assets for the year.

Results from investments in subsidiaries and participating interest

The profit and loss statement of the parent company includes the proportion of the profit after tax for the individual subsidiaries after full elimination of internal profit or loss and deduction of depreciation on group goodwill. This includes profit or loss in connection with the sale of shareholdings.

In both the consolidated profit and loss statement and the parent company profit and loss statement, the proportionate share of the participations' profit or loss after tax is recognised after elimination of proportionate share of internal profit or loss and deduction of depreciation on group goodwill. This includes profit or loss in connection with the sale of shareholdings.

Financial items

Financial income and expenses include interest income and interest charges, realised and unrealised exchange gains and losses on securities, debts and transactions denominated in foreign currency, amortisation of financial assets and liabilities, and interest surcharges and interest subsidies for tax payments. Financial income and expenses are recognised at the amounts relating to the financial year.

Tax on profit for the year

The tax for the year, which consists of the current corporate income tax for the year and the change in deferred tax, is recognised in the profit and loss statement with the part that can be attributed to the profit for the year and directly in equity with the part that can be attributed to items entered directly on equity.

The parent company and the Danish subsidiaries are subject to the Danish rules on compulsory joint taxation of the Danish companies in the Group. The parent company is the management company for the joint taxation and as a result, settles all payments of corporate tax with the tax authorities.

The current Danish corporate tax is apportioned with settlement of joint taxation contributions between the jointly taxed companies in proportion to their taxable income. In association with this, companies with a tax loss receive joint taxation contributions from companies that have been able to use this loss (full apportioning).

Balance Sheet

Intangible fixed assets

Acquired patents and trademarks, etc.

Acquired patents and trademarks are measured at cost less accumulated depreciation, where acquired patents are depreciated on a straight-line basis over the remaining patent period and acquired trademarks are depreciated over the agreement period, up to a maximum of 10 years.

Lease rights are valued at purchase price less accumulated depreciation, where the depreciation basis is calculated as purchase price reduced by any scrap value.

The depreciation base is apportioned on a straight-line basis over the expected useful life of the assets, which is estimated at 5 years.

Profits and losses on the disposal of development projects, patents and licenses are calculated as the difference between the sales price less sales costs and the carrying amount at the time of sale.

Profits or losses are recognised in the profit and loss statement under other operating income or expenses.

Goodwill

Goodwill is depreciated over the estimated financial lifetime, which is determined on the basis of management's experience in the individual business areas. Goodwill is depreciated on a straight-line basis over the depreciation period, which is between 7 and 10 years. The depreciation period is determined on the basis of the expected payback period and is longest for strategically acquired companies with strong market position and long-term earnings profile.

Tangible fixed assets

Land and buildings, production equipment and machinery, as well as other plant, fixtures and fittings is measured at cost less accumulated depreciation and amortisation. There is no depreciation on land.

Accounting policies applied

The depreciation basis is cost less expected residual value after completion of useful life.

The cost price includes the purchase price, as well as costs directly associated with the acquisition until such time as the asset is ready for use.

Depreciation on a straight-line basis is done based on the following assessment of the expected useful lives of assets:

Buildings	33 - 50 years
Installations	5 years
Production plant and machinery	5 - 10 years
Other plant, fixtures and fittings	3 - 5 years

Assets with a cost of less than DKK 25,000 per unit are recognised in the year of acquisition as costs in the profit and loss statement.

Profit or loss on disposal of tangible fixed assets is calculated as the difference between the sales price less sale costs and the carrying amount at the time of sale. Profits or losses are recognised in the profit and loss statement under other operating income or expenses.

Tangible fixed assets that are leased and meet the conditions for financial leasing are recognised on the balance sheet as assets. The assets are measured at the first recognition on the balance sheet at the lowest fair value of the leased asset and the present value of future lease payments. In calculating the present value, the internal rate of interest of the lease or its approximate value is used as the discount factor. Financially leased assets are then treated as the company's other fixed assets.

The capitalised residual lease liability is recognised on the balance sheet as a debt obligation and the interest part of the lease payment is recognised in the profit and loss statement over the effective term of the contract.

All other leases are operating leases. Services related to operating leases and other leases are recognised on a straight-line basis in the profit and loss statement over the effective term of the contract. The company's total obligations relating to operating leases and leases are disclosed under contingent liabilities.

Amortisation of fixed assets

The carrying amount of both intangible and tangible fixed assets is assessed annually for indications of write-down beyond that expressed by depreciation.

If there are indications of impairment, amortisation tests will be carried out on each asset or group of assets. Amortisation to the recoverable value is done if it is lower than the carrying amount.

The recoverable value is the highest value of the net sales price and capital value. The capital value is calculated as the present value of the expected net income from the use of the asset or asset group.

Financial fixed assets

Shareholdings in affiliated companies and participations

Shareholdings in affiliated undertakings and participations are recognised on the balance sheet at the proportion of the carrying net asset value of the company. The equity method is used as a consolidation method.

This is calculated in accordance with the accounting policies of the parent company with deductions or additions of unrealised intra-group profits and losses and additions or deductions of residual value of positive or negative goodwill calculated according to the acquisition method.

Net revaluation of shareholdings in affiliated companies and participations is transferred under equity to the net revaluation reserve using the equity method, to the extent that the carrying amount exceeds the cost. Dividends from affiliated companies, which are expected to be adopted before the approval of this annual report are not tied to the revaluation reserve. The reserve is governed by other equity movements in affiliated companies and participations.

Newly acquired or newly formed companies are recognised in the financial statements from the date of acquisition. Companies sold or liquidated are recognised up to the time of transfer.

Profit or loss on the disposal of affiliated companies and participations is calculated as the difference between the disposal price and the carrying amount of net assets at the time of sale, including residual Group goodwill and expected costs of sale or liquidation. Profits and losses are recognised in the profit and loss statement under financial items.

For the acquisition of new affiliates and participations, the takeover method is used under which the assets and liabilities of the newly acquired companies are measured at fair value at the time of acquisition. A provision is made to cover the costs of decided restructuring of the acquired companies in connection with the acquisition. The tax effect of the revaluations conducted will be taken into account.

Positive differences (goodwill) between the purchase value and fair value of acquired assets and liabilities, including provisions for restructuring are recognised under shareholdings in affiliated companies and participations. The difference amount is written off over the estimated economic useful life, which is determined on the basis of management's experience within the individual business areas. The depreciation period is a maximum of 20 years and is longest for strategically acquired companies with a strong market position and a long earnings profile. The carrying amount of goodwill is assessed on an ongoing basis and amortised over the profit and loss statement in cases where the carrying amount exceeds the expected future net income from the business or activity with which goodwill is associated.

Lease deposit

The lease deposit includes the rent deposit, which is recognised and measured at cost. There is no depreciation on the rent deposit.

Other securities and shareholdings, long-term investment

Shareholdings in unlisted companies are recognised on the balance sheet at cost. The cost price includes the purchase consideration calculated at fair value plus direct purchase costs. In cases where the cost price exceeds the recoverable value, depreciation is reduced to this lower value. Realised and unrealised exchange gains and losses are recognised in the profit and loss statement.

Inventories

Inventories are measured at cost based on the FIFO principle or at net realisable value, whichever is lower.

The cost price of commercial goods, raw materials and consumables includes purchase price plus repatriation costs.

The net realisable value of inventories is calculated as the sales price less both completion costs and costs incurred to effect the sale. The net realisable value is determined taking into account marketability, currency and development of the expected sales price.

Receivables

Receivables are measured at amortised cost, which generally corresponds to nominal value. The value is reduced by amortisations to offset expected losses.

Accruals, assets

Accruals recognised under assets include costs incurred relating to subsequent financial years.

Other securities and shareholdings

Securities and shareholdings recognised under current assets are measured at fair value (stock exchange price) on the balance sheet date.

Cash holdings

Cash and cash equivalents include bank balances and cash holdings.

Equity

Dividends

Dividends proposed for the financial year are presented as a separate item under equity.

Reserve for net revaluation using the intrinsic value method

Net revaluation of shareholdings in affiliated companies is transferred under equity to the net revaluation reserve using the intrinsic value method, to the extent that the carrying amount exceeds the cost. Dividends from affiliated companies, which are expected to be adopted before the approval of this annual report are not tied to the revaluation reserve. The reserve is adjusted by other changes in equity of affiliated companies.

Reserve for fair value of hedging instruments

The fair value reserve in the consolidated financial statements and annual accounts includes the change in the value adjustment of hedging instruments for the year.

Corporate tax and deferred tax

Current tax liabilities and current tax receivables are recognised on the balance sheet as imputed tax on taxable income for the year, adjusted for tax on previous years' taxable income, as well as for taxes paid on account.

Under the joint taxation rules, as a management company NINE UNITED A/S is jointly and severally liable to the tax authorities for corporate taxes and withholding taxes on interest, royalties and dividends arising within the joint taxation circle. Joint taxation contributions due and receivable are recognised on the balance sheet as "Corporate tax receivable" or "Corporate tax payable".

Deferred tax is the tax on all temporary differences between the carrying and tax value of assets and liabilities, calculated on the basis of the planned use of the asset and settlement of the liability.

Deferred tax assets, including the tax value of tax losses carried forward are recognised at the value at which they are expected to be used, either by offsetting taxes on future earnings or by offsetting deferred tax liabilities within the same legal tax unit.

Deferred tax adjustments are done with regard to eliminations of unrealised intra-group profit and loss.

Deferred tax is measured on the basis of the tax rules and tax rates in the respective countries that under the legislation on the balance sheet date, will apply when the deferred tax is expected to be triggered as current tax.

Debt obligations

Debt obligations are recognised with borrowing for the proceeds received, less transaction costs incurred. In subsequent periods, financial liabilities are recognised at amortised cost corresponding to the capitalised value using the effective interest rate, so that the difference between the proceeds and the nominal value is recognised in the profit and loss statement over the loan period.

Debt to mortgage institutions and credit institutions is thus measured at amortised cost, which for cash loans corresponds to the outstanding debt of the loan. For bond loans, amortised cost corresponds to an outstanding debt calculated as the underlying cash value of the loan at the time of borrowing, adjusted by a write-off of the rate adjustment at the time of borrowing over the repayment period.

Lease liabilities are measured at the present value of the remaining lease payments, including any guaranteed residual value based on the internal rate of return of the individual leases.

Other debt obligations are measured at amortised cost, which usually corresponds to nominal value.

Accruals, liabilities

Accruals recognised under liabilities include payments received relating to revenue in subsequent years.

Cash flow statement

The cash flow statement shows the cash flows for the Group and the parent company for the year, broken down by operating activity, investment activity and financing activity for the year, the change in cash and cash equivalents for the year at the beginning and end of the year.

The liquidity effect of buying and selling companies is shown separately under cash flows from investment activity. The cash flow statement includes cash flows related to companies acquired from the time of acquisition and cash flows related to companies sold are recognised up to the time of sale.

Cash flow from operating activities

Cash flow from operating activities is calculated as profit for the year adjusted for non-cash operating items, changes in working capital and corporate tax paid.

Cash flow from investment activity

Cash flow from investment activities include payments related to the purchase and sale of companies and activities, as well as the purchase and sale of fixed assets.

Cash flow from financing activity

Cash flow from financing activities includes changes in the size or composition of share capital and associated costs. In addition, cash flow includes borrowing, servicing of interest-bearing debt and payment of dividends to shareholders.

Cash and cash equivalents

Cash and cash equivalents include cash and cash holdings.

Financial ratios

The financial ratios have been prepared in accordance with the "Recommendations & Financial Ratios 2015" of the Danish Financial Analysts' Association

The key figures and financial ratios in the table are calculated as follows:

Gross margin	= Gross profit x 100 / Net turnover
Profit margin (EBIT margin)	= Operating profit (EBIT) x 100 / Net turnover
Solvency ratio	= Closing equity x 100 / Total liabilities at end of year
Return on equity	= Profit/loss for the year x 100 / Average equity

Income statement 1 August - 31 July

DKK thousand		Group		Parent company
	Note	2021/22	2020/21	2021/22	2020/21
Net turnover	1	2,201,343	1,662,330	41,884	33,860
Cost of raw materials and consumables		-1,417,190	-1,071,867	0	0
Other operating income	2	8,067	18,985	1,078	850
Other external costs		-331,683	-273,765	-18,183	-14,756
Gross profit		460,537	335,683	24,779	19,954
Staff costs	3	-275,269	-178,323	-29,219	-24,889
Depreciation of intangible and tangible fixed assets		-125,111	-88,615	-331	-245
Other operating expenses		-743	-37	0	0
Operating profit		59,414	68,708	-4,771	-5,180
Income from equity investments in subsidiaries	4	0	0	-16,115	48,921
Income from equity investments in participating interest		5	0	5	0
Financial income	5	51,943	168,797	33,994	119,883
Financial costs	6	-121,110	-12,509	-66,074	-903
Profit before tax		-9,748	224,996	-52,961	162,721
Tax on profit for the year	7	-25,966	-57,571	7,849	-25,722
Profit/loss for the year		-35,714	167,425	-45,112	136,999
Group profit distributed as follows:
Shareholders of NINE UNITED A/S		-45,112	136,999
Minority holdings		9,398	30,426
Non-controlling interests		-35,714	167,425

Balance sheet 31 July

DKK thousand		Group		Parent company
	Note	2022	2021	2022	2021
Assets
Rights acquired	8	51,991	16,864	0	0
Goodwill	9	647,321	673,806	0	0
Intangible assets		699,312	690,670	0	0
Land and buildings	10	1,146,866	1,137,104	0	0
Production plant and machinery	11	2,337	873	0	0
Other plant, fixtures and fittings	12	47,535	26,977	1,077	1,408
Prepayments for tangible assets		13,079	13,306	0	0
Tangible assets		1,209,817	1,178,260	1,077	1,408
Investments in group enterprises	13, 15	0	0	1,555,889	1,668,755
Investments in participating interests	14, 15	355	0	355	0
Other financial investments	16	10,000	10,000	10,000	10,000
Deposits		1,655	1,537	0	0
Financial assets		12,010	11,537	1,566,244	1,678,755
Non-current assets		1,921,139	1,880,467	1,567,321	1,680,163
Raw materials and consumables		18,572	18,792	0	0
Manufactured goods and goods for resale		358,294	247,174	10	10
Prepayments for goods		18,382	7,304	0	0
Inventories		395,248	273,270	10	10
Trade receivables		124,770	122,995	4,407	1,868
Receivables from group enterprises		0	0	152,917	87,016
Receivables from participating interests		157	0	301	0
Income tax receivable		0	5,614	8,729	0
Deferred tax assets	17,18	5,709	5,373	0	0
Other receivables	19	209,585	48,313	13,115	14,959
Payments and accrued income	20	8,901	10,156	1,518	1,615
Receivables		349,122	192,451	180,987	105,458
Other financial instruments and equity investments	21	1,059,030	1,285,049	640,883	852,133
Investments		1,059,030	1,285,049	640,883	852,133
Cash on hand and demand deposits		162,857	142,267	5,510	3,262
Current assets		1,966,257	1,893,037	827,390	960,863
Assets		3,887,396	3,773,504	2,394,711	2,641,026

DKK thousand		Group		Parent company
	Note	2022	2021	2022	2021
Liabilities
Capital	22	500	500	500	500
Reserve for net revaluation according to the equity method		0	0	0	23,613
Exchange adjustment reserve		-17,489	-7,698	0	0
Reserve for hedging instruments		1,455	0	0	0
Retained earnings		2,297,176	2,519,888	2,281,142	2,488,577
Share of equity of shareholders in NINE UNITED A/S		2,281,642	2,512,690	2,281,642	2,512,690
Non-controlling interests		430,097	107,044	0	0
Equity		2,711,739	2,619,734	2,281,642	2,512,690
Deferred tax provisions	23	0	0	77	31
Other provisions		2,483	0	0	0
Provisions		2,483	0	77	31
Mortgage debt		702,534	715,299	0	0
Other debt		5,733	0	0	0
Lease		0	377	0	0
Long-term liabilities	24	708,267	715,676	0	0
Short-term part of long-term liabilities	24	12,092	10,663	0	0
Debts to banks		114,875	29,688	1,627	6,788
Prepayments received from customers		46,563	48,669	0	0
Trade payables
		139,537	149,322	2,213	1,265
Payables to group enterprises		0	0	79,568	89,676
Corporate tax		20,945	61,391	0	23,904
Other debt		102,724	136,375	4,070	6,613
Payables to shareholders and management		25,514	0	25,514	0
Accruals	25	2,657	1,986	0	59
Current liabilities		464,907	438,094	112,992	128,305
Debt obligations		1,173,174	1,153,770	112,992	128,305
Liabilities		3,887,396	3,773,504	2,394,711	2,641,026
Contingencies	26
Charges and security	27
Related parties	28
Fee for auditor	29

Statement of changes in equity

DKK thousand	Group
	Share capital	Reserve for net revaluation according to intrinsic value method	Exchange adjustment reserve	Reserve for fair value of hedge instruments
Equity as of 1 August 2021	500	0	-7,698	0
Capital increase
Opening exchange rate adjustment, without foreign subsidiaries			-9,791
Incoming in connection with company acquisition
Amortisation of group goodwill in connection with further purchases of shareholdings
Regulation of hedging instruments				1,865
Tax on hedging instruments				-410
Distributed dividends
Other changes in capital
Profit/loss for the year
Equity as of 31 July 2022	500	0	-17,489	1,455

DKK thousand	Group
	Profit/loss carried forward	Minority holdings	Equity
Equity as of 1 August 2021	2,519,888	107,044	2,619,734
Capital increase		450	450
Opening exchange rate adjustment, without foreign subsidiaries		-4,313	-14,104
Incoming in connection with company acquisition		357,491	357,491
Amortisation of group goodwill in connection with further purchases of shareholdings	-177,307	-31,416	-208,723
Regulation of hedging instruments	-1,865		0
Tax on hedging instruments	410		0
Distributed dividends		-9,100	-9,100
Other changes in capital	1,162	543	1,705
Profit/loss for the year	-45,112	9,398	-35,714
Equity as of 31 July 2022	2,297,176	430,097	2,711,739

	Parent company
kDKK	Share capital	Reserve for net revaluation using the intrinsic value method	Reserve for exchange rate	Reserve for fair value of hedging instruments
Equity as of 1 August 2021	500	23,613	0	0
Opening exchange rate adjustment, without foreign subsidiaries		-9,791
Amortisation of group goodwill in connection with further purchases of shareholdings
Distributed dividends		-16,900
Other changes in capital		1,162
Profit/loss for the year		-16,115
Transfer		18,031
Equity as of 31 July 2022	500	0	0	0

	Parent company
kDKK	Retained earnings	Minority holdings	Equity
Equity as of 1 August 2021	2,488,577	0	2,512,690
Opening exchange rate adjustment, without foreign subsidiaries			-9,791
Amortisation of group goodwill in connection with further purchases of shareholdings	-177,307		-177,307
Distributed dividends	16,900		0
Other changes in capital			1,162
Profit/loss for the year	-28,997		-45,112
Transfer	-18,031		0
Equity as of 31 July 2022	2,281,142	0	2,281,642

Cash flow statement

		Group		Parent company
		2021/22	2020/21
	Note	kDKK	kDK	2021/22 kDKK	2020/21 kDKK
Profit/loss for the year		-35,714	167,425	-45,112	136,999
Depreciation and amortisation of tangible and intangible fixed assets		125,111	88,615	331	245
Profit on the sale of tangible fixed assets		376	-12,240	-245	0
Income from shareholdings in affiliated companies and participations		0	0	16,110	-48,921
Profit/loss for the year relating to activity		-5	0	0	0
Other financial income		-51,943	-168,797	-33,994	-119,883
Other financial expenses		121,110	12,509	66,074	903
Tax on profit for the year		25,966	57,571	-7,849	25,722
Other regulations		-6,472	-3,625	0	0
Change in inventories		-113,733	-96,999	0	91
Change in receivables		178,892	-34,933	-65,491	-81,924
Change in supplier debt and other debts		-23,573	95,947	13,752	69,265
Operating cash flow before financial items		220,015	105,473	-56,424	-17,503
Interest received and similar payments		51,838	168,797	33,994	119,883
Interest paid and similar payments made		-121,100	-12,509	-66,074	-903
Cash flow from ordinary operations		150,753	261,761	-88,504	101,477
Corporate tax paid		-59,499	16,064	-24,737	-2,621
Cash flow from operating activities		91,254	245,697	-113,241	98,856
Purchase of intangible fixed assets		-42,396	-2,919	0	0
Purchase of tangible fixed assets		-71,565	-106,983	0	-878
Purchase of financial fixed assets		-286,035	-613,705	-1,382,738	-528,987
Sales of tangible fixed assets		889	23,641	245	0
Sale of financial fixed assets, etc.		0	0	1,274,993	0
Dividends received		0	0	16,900	2,025
Other cash flow related to investment activity		226,062	328,375	211,250	385,504
Cash flow from investment activity		-173,045	-371,591	120,650	-142,336
Raising/servicing of long-term debt		37,469	24,667	0	-1,972
Repayment of short-term liabilities		-247	0	0	0
Raising/servicing of debt to banks		41,292	9,722	-5,161	6,788
Capital increase		12,166	0	0	0
Dividends paid		-9,100	-11,475	0	0
Cash flow from financing activity		81,580	22,914	-5,161	4,816
Changes in cash and cash equivalents		-211	-102,980	2,248	-38,664
Cash equivalents, opening		142,267	136,022	3,262	41,926
Incoming in connection with company		20,801	109,225	0	0
Cash equivalents, closing		162,857	142,267	5,510	3,262
Cash and cash equivalents specified as follows:
Cash holdings		162,857	142,267	5,510	3,262
Total cash and cash equivalents		162,857	142,267	5,510	3,262

Notes

DKK thousand	Group		Parent company
	2021/22	2020/21	2021/22	2020/21
	kDKK	kDKK	kDKK	kDKK
1. Net turnover
Administration revenue	19,957	24,945	41,884	33,860
Sale of furniture and shop inventory	2,109,076	1,551,911	0	0
Sale of food products	9,712	10,407	0	0
Rental of property	58,215	59,702	0	0
Other turnover	4,383	15,365	0	0
	2,201,343	1,662,330	41,884	33,860
2. Other operating income
Profit from the sale of tangible fixed assets	256	12,288	245	0
Refunds relating to salaries and wages	2,765	2,940	833	850
Other	5,046	3,757	0	0
	8,067	18,985	1,078	850
3. Staff costs
Salaries and wages	238,339	154,953	26,915	23,062
Pensions	10,764	6,468	1,845	1,475
Other social insurance costs	26,166	16,902	459	352
	275,269	178,323	29,219	24,889
Average number of employees employed	740	496	52	46

Remuneration for executive management is not disclosed in accordance with section 98b (3) of the Danish Financial Statements Act.

No remuneration is paid to members of the Board of Directors.

4. Income from shareholdings in affiliated companies

Share of profit in subsidiaries	799	90,555
Depreciation of Group goodwill	-41,338	-41,782
Internal profit on inventories	0	148
Internal profit from the sale of shareholdings	24,424	0
	-16,115	48,921

	Group		Parent company
	2021/22 kDKK	2020/21 kDKK	2021/22 kDKK	2020/21 kDKK
5. Financial income
Other financial income	51,943	168,797	29,834	118,268
Interest from affiliated companies	0	0	4,160	1,615
	51,943	168,797	33,994	119,883
6. Financial costs
Other financial costs	121,110	12,509	65,066	522
Interest payable to affiliated companies	0	0	1,008	381
	121,110	12,509	66,074	903
7. Tax on profit for the year
Tax on taxable income for the year	25,102	57,701	-8,070	25,689
Tax on previous year's taxable income	-76	10	0	10
Deferred tax adjustment for the year	103	-140	46	23
Foreign tax paid	837	0	175	0
	25,966	57,571	-7,849	25,722

	Group		Parent company
	2021/22	2020/21	2021/22	2020/21
	kDKK	kDKK	kDKK	kDKK
8. Rights acquired
Cost as of 1 August	55,191	38.708
Change due to exchange rate adjustment	17	-12
Incoming in connection with company acquisition	1,036	13,576
Incoming during the year	42,396	2,919
Outgoings during the year	-563	0
Cost as of 31 July	98,077	55,191
Depreciation and amortisation as of 1 August	-38,327	-19,333
Incoming in connection with company acquisition	-376	-10,633
Change due to exchange rate adjustment	-12	7
Depreciation and amortisation for the year	-7,934	-8,368
Depreciation and amortisation of divested assets	563	0
Depreciation and amortisation as of 31 July	-46,086	-38,327
Carrying amount as of 31 July	51,991	16,864
Carrying value of leasing assets	556	1,889
9. Goodwill
Cost as of 1 August	747,102	299,632
Change due to exchange rate adjustment	69	0
Incoming during the year	48,962	447,470
Cost as of 31 July	796,133	747,102
Depreciation and amortisation as of 1 August	-73,296	-29,915
Change due to exchange rate adjustment	55	0
Depreciation and amortisation for the year	-75,571	-43,381
Depreciation and amortisation as of 31 July	-148,812	-73,296
Carrying amount as of 31 July	647,321	673,806
10. Land and buildings
Cost as of 1 August	1,413,112	1,359,198
Conversion to exchange rate as of 31 July	-1,083	-630
Incoming during the year	36,802	79,747
Outgoings during the year	0	-25,203
Cost as of 31 July	1,448,831	1,413,112
Amortisations as of 1 August	-6,375	-6,011
Correction	0	-369
Conversion to exchange rate as of 31 July	-5	5
Amortisations as of 31 July	-6,380	-6,375
Depreciation as of 1 August	-269,633	-247,442
Conversion to exchange rate as of 31 July	290	156
Depreciation for the year	-26,242	-25,397
Depreciation and amortisation of divested assets	0	3,015
Correction	0	35
Depreciation as of 31 July	-295,585	-269,633
Carrying amount as of 31 July	1,146,866	1,137,104
Carrying value of leasing assets	0	0
11. Production plant and machinery
Cost as of 1 August	5,260	5,161
Incoming in connection with company acquisition	1,446	0
Incoming during the year	3,489	99
Outgoings during the year	-334	0
Cost as of 31 July	9,861	5,260
Depreciation and amortisation as of 1 August	-4,387	-4,109
Incoming in connection with company acquisition	-885	0
Depreciation for the year	-633	-278
Reversal of depreciation and amortisation of divested assets	334	0
Previous year's reversal of depreciation and amortisation charges	-1,953	0
Depreciation and amortisation as of 31 July	-7,524	-4,387
Carrying amount as of 31 July	2,337	873
Carrying value of leasing assets	0	0
12. Other plant, fixtures and fittings
Cost as of 1 August	68,372	33,674	3,077	2,199
Conversion to exchange rate as of 31 July	22	-35	0	0
Incoming in connection with company acquisition	5,670	28,578	0	0
Incoming for the year	34,109	13,831	0	878
Outgoings for the year	-8,472	-1,793	-697	0
Outgoings related to ceased activities	0	-5,883	0	0
Cost as of 31 July	99,701	68,372	2,380	3,077
Depreciation and amortisation as of 1 August	-41,395	-23,475	-1,669	-1,424
Incoming in connection with company acquisition	-2,512	-14,223	0	0
Conversion to exchange rate as of 31 July	7	30	0	0
Depreciation and amortisation for the year	-14,734	-11,185	-331	-245
Depreciation/amortisation of divested assets	4,515	1,414	697	0
Depreciation relating to ceased activities	1,953	6,044	0	0
Depreciation and amortisation charges 31 July	-52,166	-41,395	-1,303	-1,669
Carrying amount as of 31 July	47,535	26,977	1,077	1,408
Carrying value of leasing assets	0	0	0	0
13. Shareholdings in affiliated companies
Cost as of 1 August			1,645,142	1,171,186
Incoming for the year			1,377,888	473,956
Outgoings during the year			-847,583	0
Cost as of 31 July		-	2,175,447	1,645,142
Revaluations as of 1 August			94,383	6,240
Internal profit from transfers of shareholdings			-519,247	0
Conversion to exchange rate as of 31 July			-9,791	-2,789
Net profit for the year before depreciation of goodwill			799	90,555
Distribution of dividends			-16,900	-2,025
Reversal of previous year's revaluations, etc.			37,555	2,402
Revaluations as of 31 July			-413,201	94,383
Depreciation of goodwill as of 1 August			-70,770	-28,988
Depreciation of goodwill for the year			-41,338	-41,782
Amortisations of purchases via equity			-94,249	0
Depreciation of goodwill as of 31 July			-206,357	-70,770
Carrying amount as of 31 July			1,555,889	1,668,755
Of incoming for the year, goodwill consists of			0	360,255
14. Shareholdings
Incoming during the year	350	0	350	0
Cost as of 31 July	350	0	350	0
Net profit for the year before depreciation and amortisation of goodwill	5	0	5	0
Revaluations as of 31 July	5	0	5	0
Carrying amount as of 31 July	355	0	355	0

	Group		Parent company
	2021/22	2020/21	2021/22	2020/21
	kDKK	kDKK	kDKK	kDKK
15. Information concerning shareholdings in affiliated companies and participations
Affiliated companies		Share of
Name	Domicile	ownership	Equity	Profit/loss
Aktieselskabet af 26.10.2018	Horsens, Denmark	100.00	-34	-3,543
- Alma by G ApS	Skanderborg, Denmark	55.00	322	-490
De 5 Gaarde A/S	Horsens, Denmark	76.67	3,641	-1,071
Aktieselskabet af 1. april 2003	Horsens, Denmark	100.00	857,713	-5,300
- Nine United Properties Denmark A/S	Horsens, Denmark	100.00	736,329	-15,592
- United Properties A/S	Horsens, Denmark	100.00	3,713	-358
- Louises Hus A/S	Horsens, Denmark	100.00	104,121	-6,472
- Vimmelskaftet A/S	Horsens, Denmark	100.00	27,483	-864
- Frederiksgade A/S	Horsens, Denmark	100.00	40,328	-331
- Elefanthuset KBH A/S	Horsens, Denmark	100.00	192,829	-12,416
- Nine United Properties Spain S.L.	Malaga, Spain	77.23	88,103	2,661
- Nine United Turkey Ltd.	Istanbul, Turkey	90.00	24,013	11,647
- Number Nine bvba	Antwerp, Belgium	100.00	49,777	1,140
Nine United ClassicA/S	Horsens, Denmark	100.00	1,847	-17
Aktieselskabet af 30. april 2008	Horsens, Denmark	99.00	12,877	301
Union Nine A/S	Horsens, Denmark	75.00	1,768,859	-34,695
- Nine United France SaS	Paris, France	100.00	11,545	503
- Nine United Brand & Design AG	Glattbrugg, Switzerland	100.00	12,948	-1,321
- Nine United UK Ltd.	London, England	100.00	-4,526	-1,228
- Nine United Germany GmbH	Berlin, Germany	100.00	24,072	-968
- Nine United Trading Spain s.l.u.	Malaga, Spain	100.00	1,782	-311
- Nine United N.L. B.V.	Rijsenhout, Netherlands	100.00	2,856	-2,125
- Nine United Belgium bvba	Antwerp, Belgium	100.00	2,218	-413
- Connox GmbH	Hannover, Germany	74.90	3,504	-35,993
- Ambiente Direct GmbH	Munich, Germany	100.00	33,013	-13,632
- Flinders B.V.	Zaandam, Netherlands	100.00	23,143	1,124
- Nine United Scandinavia A/S	Horsens, Denmark	100.00	74,348	-10,908
- Frandsen Group US Inc.	New York, USA	100.00	-173	-83
- &Tradition A/S	Copenhagen, Denmark	90.00	256,501	136,677
- &Tradition Norway AS	Oslo, Norway	100.00	3,907	350
			4,357,059	6,272

Shareholdings

Name	Domicile	Share of ownership	Equity	Profit/loss
Nine United Logistics A/S	Horsens, Denmark	33.33	1,066	16
			1,066	16

	Group		Parent company
	2021/22	2020/21	2021/22	2020/21
	kDKK	kDKK	kDKK	kDKK
16. Other securities and shareholdings
Cost as of 1 August	10,000	0	10,000	0
Incoming during the year	0	10,000	0	10,000
Cost as of 31 July	10,000	10,000	10,000	10,000
Carrying amount as of 31 July	10,000	10,000	10,000	10,000

17. Deferred tax assets

Deferred tax assets relate to the following:

Intangible fixed assets	-456	-1,130
Tangible fixed assets	7,264	1,212
Borrowing costs	1,765	1,792
Tax loss to be carried forward	3,370	4,002
Finance lease obligation	83	302
Termination of tenancy	-6,600	0
Other differences	283	-805
	5,709	5,373

Deferred tax assets include temporary differences that are expected to be offset within a relatively limited number of years.

18. Deferred tax assets - continued

Deferred tax assets as of 1 August	5,373	3,444
Incoming with purchase of subsidiary	233	227
Other adjustments	0	1,842
Adjustments for the year	103	-140
Deferred tax assets as of 31 July	5,709	5,373

Group		Parent company
2021/22	2020/21	2021/22	2020/21
kDKK	kDKK	kDKK	kDKK

19. Disclosure of fair value of derivative financial instruments recognised under other receivables

	Group	Parent company
Fair value as of 31 July 2022	2,009	0
Changes in fair value for the year, which are under equity	2,009	0

The Group has concluded forward exchange contracts of CNY 28.0 million and SEK 30.0 million to hedge foreign exchange risks in connection with the purchase of goods. The forward exchange contracts run for between 0 and 6 months and on the balance sheet date, the forward exchange contracts show a positive value of DKK 2.0 million, which is recognised under other receivables and equity.

20. Accruals

Prepaid costs	8,757	9,862	1,518	1,615
Other	144	294	0	0
	8,901	10,156	1,518	1,615

21. Other securities and shareholdings

Other securities and shareholdings relates to the holdings of listed shares and bonds and the Group and parent company have the following assets, which are measured at fair value:

	Group	Parent company
Fair value as of 31 July 2022	1,059,030	640,883
Value adjustments in the profit and loss statement	-108,690	-64,713

Group		Parent company
2021/22	2020/21	2021/22	2020/21
kDKK	kDKK	kDKK	kDKK

22. Equity

The share capital consists of:

50 A shares of DKK 1,000

450 B shares of DKK 1,000

Each A share represents an entitlement to 10 votes, while each B share represents an entitlement to 1 vote. The share capital has not been changed in the past 5 years.

The company holds none of its own shares on the balance sheet date, nor have any of its shares been purchased or sold during the financial year.

23. Deferred tax provisions

Deferred tax as of 1 August	31	8
Deferred tax adjustment for the year	46	23
Deferred tax as of 31 July	77	31
Deferred tax relates to:
Tangible fixed assets	77	31
	77	31

Group		Parent company
2021/22	2020/21	2021/22	2020/21
kDKK	kDKK	kDKK	kDKK

24. Debt obligations

Repayments on debt obligations due within 1 year are entered under short-term liabilities and other debt obligations are recognised under long-term liabilities.

The debt obligations fall due as follows:

After 5 years	658,144	676,005
Between 1 year and 5 years	50,123	39,671
Long-term part of debt obligation	708,267	715,676
Within 1 year	12,092	10,663
Total liabilities	720,359	726,339
The debt obligation relates to the following:
Debt to mortgage institutions	714,249	724,965
Other debt	5,733	0
Lease obligations	377	1,374
	720,359	726,339
The individual debt obligations fall due as follows:
Debts to mortgage institutions.
After 5 years	652,411	676,005
Between 1 year and 5 years	50,123	39,294
Within 1 year	11,715	9,666
	714,249	724,965
Other debts:
After 5 years	5,733	0
Between 1 year and 5 years	0	0
Within 1 year	0	0
	5,733	0
Lease obligations:
After 5 years	0	0
Between 1 year and 5 years	0	377
Within 1 year	377	997
	377	1,374

	Group		Parent company
	2021/22	2020/21	2021/22	2020/21
	kDKK	kDKK	kDK	kDKK
25. Accruals
Prepaid rent income	2,636	1,487	0	0
Other	21	499	0	59
-	2,657	1,986	0	59

26. Contingent liabilities

Parent company:

In connection with the sale of a shareholding in a subsidiary, the usual guarantees have been given to the buyer.

In addition, there are no known contingent liabilities other than joint taxation liabilities.

Group:

The Group has the usual warranty and right to complaint on goods sold. Furthermore, the Group is obliged to take back old lamps and destroy them in an environmentally correct manner. The obligation is covered through the industry association.

The Group has concluded a lease agreement - for the property Egeskovvej 29 - with a tenure that runs until 2034. The annual lease fee is kDKK 3,219. The lease fee is increased by 3 % per annum of the total annual lease fee of the previous year.

The Group has concluded operating lease agreements with an average annual rent or lease payment of kDKK 14,984. The leases have an average remaining maturity of between 12 and 44 months with a total residual lease payment of kDKK 29,687.

The Group has concluded lease agreements with an annual rent of kDKK 13,913 and the lease agreements have a notice period of between 3 and 6 months.

The Group has concluded forward exchange contracts totalling CNY 28.0 million and SEK 30.0 million to hedge foreign exchange risks in connection with the purchase of goods.

Joint taxation:

The company is a management company for the purposes of national joint taxation and is jointly and severally liable with the other jointly taxed companies for the total corporate tax from and including the 2012/13 financial year

Liability in connection with the payment of corporate taxes is a maximum of DKK 20.9 million (estimated). Any subsequent corrections to corporate taxes or withholding taxes, etc. may result in the company liability totalling a different amount.

27. Collateral and pledges

Parent company:

None.

Group:

As collateral for debt to the credit institution, a mortgage lien of DKK 148.9 million has been deposited with a mortgage on land and buildings, the carrying value of which as of 31 July 2022 totals DKK 118.1 million.

As collateral for debts to the credit institution, a mortgage lien of DKK 51.0 million has been registered with a mortgage on land and buildings, the carrying value of which as of 31 July 2022 totals DKK 87.0 million.

As collateral for debt to the credit institution, a mortgage deed of DKK 165.0 million has been deposited with a mortgage on land and buildings, the carrying value of which as of 31 July 2022 totals DKK 230.1 million.

As collateral for debt to the credit institution, a mortgage on land and buildings amounting to DKK 508.4 million has been registered, the carrying value of which as of 31 July 2022 totals DKK 552.8 million.

As collateral for debts to the bank, a pledge has been given in simple receivables from sales and services totalling DKK 0.5 million.

As collateral for interim balances with the Vimmelskaftet Owner-Occupier Association and the Fredericiagade Owner-Occupier, owner mortgage deeds of kDKK 25 and kDKK 84 respectively, have been deposited.

As collateral for the Danish Agency for Cultural Heritage, a guarantee has been provided for a total of DKK 1.0 million.

To secure engagement with leasing companies, collateral has been provided in ERP systems with a book value of kDKK 556 and the debt obligation is calculated at kDKK 377.

A maximum of kUSD 50 has been provided as collateral for the payment of customs duties in the United States.

28. Related parties

Controlling influence:

Troels Holch Povlsen, majority shareholder

Cole Park

Grange Lane

Malmesbury

SN16 OER United Kingdom

The exemption clause in the Danish Financial Statements Act concerning information on transactions with related parties has been applied, as all transactions have taken place on market terms.

	Group		Parent company
	2021/22	2020/21	2021/22	2020/21
	kDKK	kDKK	kDKK	kDKK
29. Remuneration to auditors elected by AGM
Statutory audit	687	632	108	116
Tax advice	0	24	0	24
Other services	47	97	25	35
Total fee for Partner Revision	734	753	133	175
Statutory audit	1,224	899	0	0
Tax advice	0	19	6	0
Other services	385	616	174	68
	0	0	0	0
Total fees for other auditors	1,609	1,534	180	68
30. Proposed distribution of profit
Proposed distribution of profit
Reserve for net revaluation using the intrinsic value method			-16,115	48,921
Profit/loss carried forward			-28,997	88,078
			-45,112	136,999