36535326 2021-01-01 2021-12-31 36535326 2021-01-01 2021-12-31 0 36535326 2021-01-01 2021-12-31 1 36535326 2021-01-01 2021-12-31 0 36535326 2021-01-01 2021-12-31 1 36535326 2021-01-01 2021-12-31 2 36535326 2020-01-01 2020-12-31 36535326 2021-12-31 36535326 2020-12-31 36535326 2021-01-01 36535326 2020-01-01 36535326 2021-01-01 2021-12-31 ifrs-full:SeparateMember 36535326 2020-01-01 2020-12-31 ifrs-full:SeparateMember 36535326 2021-12-31 ifrs-full:SeparateMember 36535326 2020-12-31 ifrs-full:SeparateMember 36535326 2021-01-01 ifrs-full:SeparateMember 36535326 2020-01-01 ifrs-full:SeparateMember 36535326 2021-01-01 2021-12-31 0 iso4217:DKK xbrli:pure 2021-01-01 2021-12-31 <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Statement by the Board of Directors and the Executive Board</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Today, the Board of Directors and the Executive Board have discussed and approved the annual report of EET A/S for the financial year 1 January – 31 December 2021.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">The annual report has been prepared in accordance with the International Financial Reporting Standards as adopted by the EU and additional requirements of the Danish Financial Statements Act.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">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 December 2021 and of the results of the Group's and the Parent Company's operations and cash flows for the financial year 1 January – 31 December 2021.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Further, in our opinion, the Management's review gives a fair review of the development in the Group's and the Parent Company's operations and financial matters and the results of the Group's and the Parent Company's operations and financial position.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">We recommend that the annual report be approved at the annual general meeting.</td></tr></table> Birkerød 2022-06-09 <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Independent auditor's report</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">To the shareholders of EET A/S</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Opinion</td></tr><tr><td colspan="1">We have audited the consolidated financial statements and the parent company financial statements of EET A/S for the financial year 1 January – 31 December 2021, which comprise income statement, statement of comprehensive income, statement of financial position, statement of changes in equity, cash flow statement and notes, including accounting policies, for the Group and the Parent Company. The consolidated financial statements and the parent company financial statements are prepared in accordance with International Financial Reporting Standards as adopted by the EU and additional requirements of the Danish Financial Statements Act.</td></tr><tr><td colspan="1">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 December 2021 and of the results of the Group's and the Parent Company's operations and cash flows for the financial year 1 January – 31 December 2021 in accordance with International Financial Reporting Standards as adopted by the EU and additional requirements of the Danish Financial Statements Act.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Basis for opinion</td></tr><tr><td colspan="1">We conducted our audit in accordance with International Standards on Auditing (ISAs) and 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" (hereinafter collectively referred to as "the financial statements") section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Independence</td></tr><tr><td colspan="1">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.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Statement on the Management's review</td></tr><tr><td colspan="1">Management is responsible for the Management's review.</td></tr><tr><td colspan="1">Our opinion on the financial statements does not cover the Management's review, and we do not express any assurance conclusion thereon.</td></tr><tr><td colspan="1">In connection with our audit of the financial statements, our responsibility is to read the Management's review and, in doing so, consider whether the Management's review is materially inconsistent with the financial statements or our knowledge obtained during the audit, or otherwise appears to be materially misstated.</td></tr><tr><td colspan="1">Moreover, it is our responsibility to consider whether the Management's review provides the information required under the Danish Financial Statements Act.</td></tr><tr><td colspan="1">Based on the work we have performed, we conclude that the Management's review is in accordance with the financial statements and has been prepared in accordance with the requirements of the Danish Financial Statements Act. We did not identify any material misstatement of the Management's review.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Management's responsibilities for the financial statements</td></tr><tr><td colspan="1">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 International Financial Reporting Standards as adopted by the EU and additional requirements of the Danish Financial Statements Act and for such internal control as Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.</td></tr><tr><td colspan="1">In preparing the 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 financial statements unless Management either intends to liquidate the Group or the Parent Company or to cease operations, or has no realistic alternative but to do so.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Auditor's responsibilities for the audit of the financial statements</td></tr><tr><td colspan="1">Our objectives are to obtain reasonable assurance as to whether the 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 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 the financial statements.</td></tr><tr><td colspan="1">As part of an audit conducted in accordance with ISAs and additional requirements applicable in Denmark, we exercise professional judgement and maintain professional scepticism throughout the audit. We also</td></tr><tr><td colspan="1">Identify and assess the risks of material misstatement of the 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.</td></tr><tr><td colspan="1">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 Parent Company's internal control.</td></tr><tr><td colspan="1">Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management.</td></tr><tr><td colspan="1">Conclude on the appropriateness of Management's use of the going concern basis of accounting in preparing the 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 Parent 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 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 Parent Company to cease to continue as a going concern.</td></tr><tr><td colspan="1">Evaluate the overall presentation, structure and contents of the financial statements, including the note disclosures, and whether the financial statements represent the underlying transactions and events in a manner that gives a true and fair view.</td></tr><tr><td colspan="1">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.</td></tr><tr><td colspan="1">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.</td></tr></table> Copenhagen 2022-06-09 EET A/S Bregnerødvej 133 D, DK-3460 Birkerød 36535326 2015-02-06 Birkerød, Denmark www.eetgroup.com 4545821919 2022-06-09 Jan Holmetoft Iversen <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Management's review</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="2">ESG report</td></tr><tr><td colspan="2">ESG impacts through the value chain</td></tr><tr><td colspan="2">A substantial part of EET’s business is to provide spare parts for electronic devices, thereby extending the lifespan of the devices themselves. By doing so, EET contributes to a more sustainable and environmentally friendly approach to the rapid growth in use of technology hardware. EET needs to closely monitor in particular</td></tr><tr><td>i.</td><td>the conditions under which the products are produced,</td></tr><tr><td>ii.</td><td>the potential impacts on end-user safety, and</td></tr><tr><td>iii.</td><td>the potential impact of the dual use of products for unethical purposes.</td></tr><tr><td colspan="2">Electronic waste presents an environmental impact through the value chain that must be managed through efficient stock management, clear supplier requirements and strict guidelines and processes for handling and disposing of electronic waste.</td></tr><tr><td colspan="2">The environmental impacts of production and the sourcing of raw materials are also important parts of EET’s footprint.</td></tr><tr><td colspan="2">The ESG report is reviewed against level and procedural requirements by our financial auditors as part of the Annual Financial Statement. The report is written in accordance with the requirements stated in the Danish Financial Statements Act §99a and §99b.</td></tr><tr><td colspan="2">Our ESG efforts are also reviewed on an annual basis against legal and practise developments by an external specialist auditor.</td></tr><tr><td colspan="2">ESG risks and opportunities</td></tr><tr><td colspan="2">Innovation in the field of electronic devices moves quickly and it has become common to replace electronic devices frequently. These practices lead to a high amount of electronic waste that is neither being reused nor recycled.</td></tr><tr><td colspan="2">EET serves a growing need among customers and end-users to maintain and update electronic devices. Positioning the business to meet this growing need is an opportunity at the core of the business model. The supply of spare parts extends the life cycle of the repaired equipment, and it reduces waste from an otherwise scrapped piece of equipment. However, the production of electronic parts and devices may involve negative environmental impacts or poor labour conditions, both of which must be avoided. Some products might also be used for unethical purposes or by people in countries that are under sanctions. Corruption and unethical conduct may be present in parts of the value chain, as EET deals with many suppliers and customers across the globe. EET has an opportunity to contribute to SDG 17, sustainable consumption, and production patterns. This particularly the case with the management of natural resources, waste, increasing recycling and increasing transparency in supply chains.</td></tr><tr><td colspan="2">The ESG Materiality Assessment and the ESG Risk Analysis provides and assessment of each of the areas within Environment (E), Social (S) and Governance (G) and indicates the impact and therefore priority and focus each element has in relation to the operations of EET. This does not mean that we do not work with the less critical topics, but it should be put into the perspective of criticality.</td></tr><tr><td colspan="2">UN Sustainable Development Goals</td></tr><tr><td colspan="2">Based on our business strategy and priorities in the years to come, we have carefully analysed the priorities of our stakeholders, the risks and opportunities presented by e.g. market/demand changes, regulations, climate, and we have assessed where amongst these we can make the biggest impact.</td></tr><tr><td colspan="2">We are impacted by the world around us, but the world is also impacted by us and by what we do.</td></tr><tr><td colspan="2">Ultimately, we have a business to run, but there are many ways to run it.</td></tr><tr><td colspan="2">We have chosen to illustrate our efforts in the context of the UN Sustainable Development Goals (SDGs) of which we have chosen to focus on six</td></tr><tr><td colspan="2">• No. 5: Gender equality</td></tr><tr><td colspan="2">• No. 8: Decent Work and Economic Growth</td></tr><tr><td colspan="2">• No. 12: Responsible Consumption and production</td></tr><tr><td colspan="2">• No. 13: Climate Action</td></tr><tr><td colspan="2">• No. 15: Life on Land</td></tr><tr><td colspan="2">• No. 16: Peace, Justice and Strong Institutions</td></tr><tr><td colspan="2">KEY ESG GOALS</td></tr><tr><td colspan="2">1. Responsible and Active Supply Chain Management</td></tr><tr><td colspan="2">Ambitions 2021</td></tr><tr><td colspan="2">We will ensure that ALL new vendors are asked sign our terms &amp; conditions (as opposed to us signing theirs) or the SAQ (Vendor Self-Assessment Questionnaire) as well as an ESG agreement. We expect this to apply to about 40 new vendors (hereof 25-30 in Private Label).</td></tr><tr><td colspan="2">We will thus ensure to maintain that vendors covering 98% or more of EET spend are either publicly listed (=approved ESG policy), have an approved ESG policy, or have completed the EET SAQ. This also applies to ALL Private Label vendors.</td></tr><tr><td colspan="2">For vendors that refuse the above we will consider discontinuing cooperation.</td></tr><tr><td colspan="2">We will also work with the remaining about 770 vendors (covering only 5% spend) but on a more selective basis.</td></tr><tr><td colspan="2">We will perform 20 audits (or reaudits) and gradually increase audit capacity over the next 3 years. Audits are repeated every 3 years.</td></tr><tr><td colspan="2">EFFORTS AND PERFORMANCE 2021</td></tr><tr><td colspan="2">Private Label products</td></tr><tr><td colspan="2">During 2021 we have had our SAQ (self-assessment questionnaire) and audit checklist reviewed and updated by an external Quality Management Systems specialist. During 2021 SAQs were sent to top 100 Private Label vendors including 10-15 new vendors (all in all covering 98% of our Private Label spend). 40 vendors received the updated version of the SAQ. 95% had replied by late December. We will keep following up on missing replies. None of the SAQ replies caused us to reconsider our cooperation with the vendors. Only a few SAQ caused questions to minor issues. In those cases, we had a dialogue with the vendor to clarify EET requirements and correct any misunderstandings.</td></tr><tr><td colspan="2">Legal background company checks were performed on top 30 Chinese suppliers of our Private Label products. There were no critical findings in these checks.</td></tr><tr><td colspan="2">For our Private Label vendors 5 audits were scheduled for late 2021, but due to Covid-19 lockdowns in factory areas (Ningbo and Dongguan), we were not able to perform the audits. The scheduled audits will be performed as soon as the situation allows.</td></tr><tr><td colspan="2">Other vendors</td></tr><tr><td colspan="2">8% of vendors covering 91% of spend have completed our SAQ (i.e. either they are publicly listed OR they have signed to adhere to our requirements). We do not audit OEM suppliers. Quality control is measured via RMA registrations.</td></tr><tr><td colspan="2">We ensure through vendors signing our agreement or completing the SAQ that we do not buy products with conflict minerals nor with dual use options.</td></tr><tr><td colspan="2">We ensure that we do not buy from sanctioned countries through tight governed processes where several checks are done including check on sanctions.</td></tr><tr><td colspan="2">kpi’s</td></tr><tr><td colspan="2">The KPI’s in this section are measured via our registers of SAQs and audit reports</td></tr><tr><td colspan="2">AMBITIONS 2022</td></tr><tr><td colspan="2">For our Private Label area, we will develop a risk/importance vendor ESG evaluation matrix based on SAQ, legal background check and audits (where available). Top 50 Private Label vendors should be evaluated.</td></tr><tr><td colspan="2">We will also Send SAQ to all new vendors plus top 100-200 Private Label vendors (those not audited in 2021). SAQ frequency will be set to 2 years going forward.</td></tr><tr><td colspan="2">Further, we will solicit legal background checks will be performed to cover top 50 Chinese Private Label suppliers.</td></tr><tr><td colspan="2">We expect to do 5-10 audits at selected Private Label suppliers based on their risk assessment (as mentioned above).</td></tr><tr><td colspan="2">In vendor management in general, during 2022 we will implement a contract management system enabling us to handle our supplier base in a more uniform and structured way. This implies that like for our Private Label vendors we will have a SAQ frequency of 2 years.</td></tr><tr><td colspan="2">KEY ESG GOALS</td></tr><tr><td colspan="2">2. A trusted and ethical business partner</td></tr><tr><td colspan="2">AMBITIONS 2021</td></tr><tr><td colspan="2">We will ensure that our policies and other documents describing our preferred culture are continuously updated to keep up with changes in focus and trends the societies where we operate.</td></tr><tr><td colspan="2">We will ensure that these documents “live” with our employees and thus define our culture. We will look into the possibility of offering e-learning on these topics, and we will focus our follow-up discussions on e.g. employee engagement survey to reflect new or enhanced areas of priority.</td></tr><tr><td colspan="2">We will introduce a more elaborate stand on behaviour and wellbeing as well as ways to work with this in a both preventive and curative manner.</td></tr><tr><td colspan="2">Particularly for the Whistle-blower policy we will introduce a possibility to report anonymously in line with changing regulation in the area.</td></tr><tr><td colspan="2">In order to further sharpen our people analytics basis, we will implement a human resource management system.</td></tr><tr><td colspan="2">EFFORTS AND PERFORMANCE 2021</td></tr><tr><td colspan="2">We regularly review and update (where needed) our policies, handbooks, and similar.</td></tr><tr><td colspan="2">We have introduced digital signing with a link to where policies are via the HR system (BambooHR) – this is sent as tasks to new hires all via onboarding</td></tr><tr><td colspan="2">We have prepared issue of a digital signing via the HR system (BambooHR) to all employees – this will be implemented with the next bulk issue of new policies</td></tr><tr><td colspan="2">We have reviewed the options and costs of having an external provider of e-learning as well as using our current sales training tool for Governance e-learning. Currently this approach is not prioritized. Test questions and answers have however been prepared for when this will be launched.</td></tr><tr><td colspan="2">We have issued a separate policy (Code of Conduct) with special focus on behaviour and wellbeing</td></tr><tr><td colspan="2">Specific wellbeing material has been added to the dialogue templates communicated to managers in relation to the annual engagement survey.</td></tr><tr><td colspan="2">An external whistle-blower agreement has been entered into with our employment law firm and information updated in the whistle-blower policy.</td></tr><tr><td colspan="2">We have analysed the market for HR systems, selected a software and implemented it. Our choice is BambooHR after vetting 20 systems. It was rolled out in June 2021. Functionality enhancement will continue an ongoing basis.</td></tr><tr><td colspan="2">We have solicited a thorough due diligence assessment of our Governance efforts and the recommendations of PwC have been considered when setting the future ambitions.</td></tr><tr><td colspan="2">KEY ESG GOALS</td></tr><tr><td colspan="2">2. A trusted and ethical business partner</td></tr><tr><td colspan="2">KPI’S</td></tr><tr><td colspan="2">The KPI’s in this section are measured through our HR system as well as a manual register</td></tr><tr><td colspan="2">AMBITIONS 2022</td></tr><tr><td colspan="2">Continue regular update of policies and handbooks</td></tr><tr><td colspan="2">Monitor digital signing of policies via BambooHR – our aim is as close to 100% as possible</td></tr><tr><td colspan="2">Continue external audit of our Governance efforts. Change of ownership means that we will have to recontract an audit partner.</td></tr><tr><td colspan="2">Continue use of external software to calculate our CO2 footprint. Change of ownership means that we will have to recontract a software partner.</td></tr><tr><td colspan="2">Find a solution to train policies and how to introduce internal audits and controls testing.</td></tr><tr><td colspan="2">KEY ESG GOALS</td></tr><tr><td colspan="2">3. A great place to work</td></tr><tr><td colspan="2">Ambitions 2021</td></tr><tr><td colspan="2">We wish to further promote a culture of respect and wellbeing and we will work with specific initiatives to create awareness of how to prevent disrespectful behaviour.</td></tr><tr><td colspan="2">We will work with employee Growth through our continued focus on manager/employee dialogues (performance review, development conversations and 1to1 touch ins). Also, we will continue to expand offering of training of our sales staff via the app Sales on the GO.</td></tr><tr><td colspan="2">We will work with Reward - in our biggest entities in Denmark we will implement a structured process for review, and train managers in both review mechanisms and communication. The aligned incentive models for senior directors are being finetuned and further rolled out where appropriate to create transparency, clear governance and to motivate performance.</td></tr><tr><td colspan="2">We will aim to introduce a KPI for employee attrition.</td></tr><tr><td colspan="2">Targets for the KPI’s in this section will be to remain at the current high level. For actual KPI measures see graphics below.</td></tr><tr><td colspan="2">EFFORTS AND PERFORMANCE 2021</td></tr><tr><td colspan="2">Our increased ability to produce statistics on gender and age for roles, functions, performance – makes us better understand where there might be imbalances. Age and nationality will be available when employees update this info in BambooHR. Other Diversity, Equity and Inclusion (DEI) measures like e.g. ethnicity is considered of less relevance in our size of organization. Results in our annual engagement survey does not indicate that we have an issue with equal opportunity. We have consciously worked with job postings regarding gender- and age-neutral wording.</td></tr><tr><td colspan="2">We have Issued a specific policy on behaviour and wellbeing. We have reviewed various ways of training our behaviour and wellbeing Code of Conduct (see previous notes on this)</td></tr><tr><td colspan="2">We have made sure our annual performance review and development conversation material specifically addresses growth (development). Our annual performance review and development conversation material includes assessment of development needs and have resulted in individual decisions on development activities</td></tr><tr><td colspan="2">We have developed the use of Sales on the GO for the sales roles. Sales on the GO is now also being used for sales meeting follow-up</td></tr><tr><td colspan="2">We have developed, introduced, trained managers, and implemented a structured reward review process for employees hired in Denmark (our biggest people entity).</td></tr><tr><td colspan="2">Further align senior directors’ STIP (short term incentive programme). Senior managers’ STIP have been further fine-tuned and rolled out. We are on an ongoing basis looking into adjusting KPIs, weights, thresholds, caps, etc.</td></tr><tr><td colspan="2">We are now able to report on age, gender, and attrition across all our entities, and can now share this transparently. And we have continued to thoroughly measure absenteeism.</td></tr><tr><td colspan="2">During 2021 we have further structured and overall increased focus on our work with health and safety (H&amp;S) in our main warehouse in Denmark.</td></tr><tr><td colspan="2">H&amp;S meeting every Monday morning</td></tr><tr><td colspan="2">Safety observation tours are conducted monthly by members of warehouse management</td></tr><tr><td colspan="2">All employees have been further trained in use of equipment and work processes</td></tr><tr><td colspan="2">All visual signage has been upgraded</td></tr><tr><td colspan="2">Various campaigns have been run to increase awareness and preventive behaviour to avoid accidents and near misses</td></tr><tr><td colspan="2">When the authorities made their regular unannounced audit, we therefore had no major operational deviations.</td></tr><tr><td colspan="2">KPI’S</td></tr><tr><td colspan="2">The KPI’s in this section are measured as follows</td></tr><tr><td colspan="2">eNPS, Trust/diversity/inclusion: part of the annual engagement survey</td></tr><tr><td colspan="2">Attrition, share of women, age distribution: measured by our HR system</td></tr><tr><td colspan="2">Absenteeism: measure via weekly input from all entities</td></tr><tr><td colspan="2">Injuries, number of headcounts, workdays and hours are registered on an ongoing basis</td></tr><tr><td colspan="2">AMBITIONS 2022</td></tr><tr><td colspan="2">We will improve the gender balance and will long-term work towards a 50/50 balance in both our total employee base as well as our management roles.</td></tr><tr><td colspan="2">We will maintain a broad age distribution in our employee base as we believe that diversity creates better work environment.</td></tr><tr><td colspan="2">We will introduce a functionality in our HR system enabling us to measure the amount of development conversations held</td></tr><tr><td colspan="2">We will introduce questions in our annual engagement survey to measure the quality of follow-up dialogue meetings related to the engagement survey, the quality of actions and implementation of these as well as the quality of development conversations.</td></tr><tr><td colspan="2">The approach and standards for H&amp;S that we now have in our main warehouse in Denmark are to be implemented across all our other warehouses during 2022/23. This will be done in alignment with local legislation. We will also set up systems to measure H&amp;S KPIs for these other locations.</td></tr><tr><td colspan="2">We aim to reduce our injury rates (LTIFR/TRIR) by at least 20%.</td></tr><tr><td colspan="2">KEY ESG GOALS</td></tr><tr><td colspan="2">4. Minimise environmental impacts through the value chain</td></tr><tr><td colspan="2">Ambitions 2021</td></tr><tr><td colspan="2">EET aims to provide CO2 neutral outbound deliveries for the majority of shipments across all markets by 2H2021, this will be done by investing in carbon offsetting projects that will compensate our emissions. We will work with 1-2 providers and the details and benefits of the projects will be communicated to our business partners on relevant delivery notes, as well as on digital and social media. Target is around 220.000 trees per year</td></tr><tr><td colspan="2">EET invests to win more projects under the EU “right to repair” obligation for manufacturers of white goods appliances and displays. The EU law comes into effect by Nov 2021. One of the core skills of EET, logistics, can thus help reduce e-waste and increase product lifetime. Winning more agreements will remain a strategic priority throughout 2021.</td></tr><tr><td colspan="2">We aim to be able to measure our efforts more precisely in areas like RMA, Waste segregation and waste reduction.</td></tr><tr><td colspan="2">AMBITIONS 2022</td></tr><tr><td colspan="2">We will</td></tr><tr><td colspan="2">continue our partnership with Ecologi to offer offset as well as additional climate positive outbound shipments. We plan to add 200.000 trees to our online forest (see https://ecologi.com/eetgroup) as well as offsetting app 5.400 T of carbon reduction.</td></tr><tr><td colspan="2">verify the governance of Ecologi</td></tr><tr><td colspan="2">include our 2021 acquisition (UK based Oprema) into our climate initiatives.</td></tr><tr><td colspan="2">continue to offer visual proof of contribution to our customers for the joint efforts related to climate positive outbound shipments.</td></tr><tr><td colspan="2">continue “Green Friday” initiative in 2022 and engage more suppliers than last year.</td></tr><tr><td colspan="2">develop our communication on the shipment packaging to communicate our collaboration and initiative with Ecologi.</td></tr><tr><td colspan="2">On the subject of Right-to-repair we do believe that the recent message from producers like Apple on repairability will accelerate the increase of demand for right to repair solutions, and we are working to get ready to supply a service once more items will be covered by the regulations (cell phones and notebooks). We will continue to work on a subscription-based model to offer our services to suppliers.</td></tr><tr><td colspan="2">We will contact our energy provider (electricity is our own agreement) to transition to green electricity. Timing will depend on electricity prices. District heating is sourced via building rental and therefore we have no control over this.</td></tr><tr><td colspan="2">KEY ESG GOALS</td></tr><tr><td colspan="2">5. Ensure safe and satisfied Customers and Consumers</td></tr><tr><td colspan="2">Ambitions 2021</td></tr><tr><td colspan="2">The Satisfaction program will be analysed and changed in order to increase the participation rate. In 2020 the reply share declined, and we wish to turn this around. This will be achieved through working with customer segmentation and differentiated processes and/or offerings.</td></tr><tr><td colspan="2">Target for cNPS score is 34 as per dec. 2021</td></tr><tr><td colspan="2">In addition to segmentation of our direct customers (B2B resellers, installers, retail and e-tail) we will also work on our customers’ customers in industry “verticals” i.e. pharmaceuticals, hospitality (hotels, airports, etc.), transportation, education etc.</td></tr><tr><td colspan="2">We will continue our targeted efforts of enhancing customer interfaces both with</td></tr><tr><td colspan="2">EET sales representatives</td></tr><tr><td colspan="2">EET customer service representatives</td></tr><tr><td colspan="2">EET technical service representatives</td></tr><tr><td colspan="2">Website buying solution</td></tr><tr><td colspan="2">Individual EDI/xml customer solutions</td></tr><tr><td colspan="2">We work with all of these “channels” to improve skills, processes, systems, service and communication to ensure a world class customer experience.</td></tr><tr><td colspan="2">We will look into possibilities to get a deeper understanding of which ESG related priorities our customers have and thus introduce ways to measure and work with these.</td></tr><tr><td colspan="2">We will solicit an external audit of our IT security landscape the findings of which will be translated into a roadmap of actions to work with in 2021 and this will include work on policies related to IT security, IT disaster and recovery.</td></tr><tr><td colspan="2">EFFORTS AND PERFORMANCE 2021</td></tr><tr><td colspan="2">As per December 2020 we had 1452 replies LTM. End of 2021 we received 1466 replies, but as we do not follow number of issued surveys this is something to improve in 2022.</td></tr><tr><td colspan="2">cNPS reached the target of 34 in Q4 2021 for several consecutive months. This is the average of scores in all our markets ranging from 15 to 74.</td></tr><tr><td colspan="2">Results are now communicated on an ongoing basis in our Sales on the GO app and all country entities and sales managers have been trained in where to find and how to use the survey results.</td></tr><tr><td colspan="2">We have added a new role to our organization being specifically responsible for customer excellence hereunder customer satisfaction.</td></tr><tr><td colspan="2">From the satisfaction survey results we can see that the biggest challenge we face is our ETA (promised delivery date at time of order).</td></tr><tr><td colspan="2">We completed segmentations in systems (Navision and Salesforce) and worked with segments of customers further and target activities per segment to increase their satisfaction. Update of segmentation information is done both centrally (Group) and by the local account manager</td></tr><tr><td colspan="2">Industry verticals have been defined and will be implemented in 2022</td></tr><tr><td colspan="2">We increased focus on registration of customer engagement as we believe that personal relation and formal meetings (planned, structure) increase the satisfaction</td></tr><tr><td colspan="2">We set targets for customer engagement (# of meetings per sales rep, per country, per BL, etc.). Targets set, communicated and weekly follow-up measurement of meetings held, results communicated and actions for improvement defined. The measurements and results are internal.</td></tr><tr><td colspan="2">We introduced an ESG survey towards VIP and A customers to get their input on ESG requirements. The overall results of the survey were that extremely few customers have a clear strategy and defined needs in the ESG areas, and that they at this point were pleased with any input they can get.</td></tr><tr><td colspan="2">An IT security and compliance audit was performed, and an action plan developed and approved by the Board of Directors. We have formed a dedicated IT security team and an extensive list of areas has been defined to strengthen our IT security and compliance.</td></tr><tr><td colspan="2">EY has done an assessment of our ESG activities in total including an analysis of the efforts/activities/requirements of our major customers, vendors, and competitors as well as regulatory and other global trends. The conclusions were overall very positive and supports our efforts in the area.</td></tr><tr><td colspan="2">We have had various trials working with structures (e.g. ESG Council) to improve the operational work of target setting, action definition, action follow-up, KPI definition, KPI follow-up, reporting, manager training, etc. We have currently settled with a rather centralized and top managed approach that we still hope can be rolled further out into the organization over time.</td></tr><tr><td colspan="2">In 2021 we have worked intensely with our ECCN coding and other product details in order to ensure ongoing compliance related to dual use and restricted customer countries. An external legal advisor has worked with us to improve governance and we have changed the way we gather ECCN data to improve the quality. We have trained all product managers in how to gather information from our vendors. ECCN data is now mentioned on all business documents (quotes, invoices, shipment notes, etc.) and governance procedures are in place in cooperation with our transporters who handles the day-to-day reporting to authorities.</td></tr><tr><td colspan="2">We have introduced a Data Ethics Policy that governs our handling of data (including personal data related to employees and to customers).</td></tr><tr><td colspan="2">KPI’s</td></tr><tr><td colspan="2">The KPI’s in this section are measured via monthly summary of customer surveys issued after time of purchase</td></tr><tr><td colspan="2">AMBITIONS 2022</td></tr><tr><td colspan="2">We will introduce a KPI “number of replies per issued surveys”. Currently we only measure number of replies. A target for the response rate awaits measurement of a starting point.</td></tr><tr><td colspan="2">The customer excellence manager will follow-up on low satisfaction scores at customer and country level and work with the account managers on how to increase overall satisfaction and replies as well as response rate. We aim for 1600 responses.</td></tr><tr><td colspan="2">cNPS target for 2022 is 36 (up 2 compared to 2021 actual)</td></tr><tr><td colspan="2">ETA measurements to be defined</td></tr><tr><td colspan="2">Complete implementation of the industry vertical segmentation.</td></tr><tr><td colspan="2">Further work with customer interface frequency (measurements are internal)</td></tr><tr><td colspan="2">We aim to be able to measure the response time to customer request service level. Today we can measure group functions only vs. country organizations and sales reps. Our ambition depends on type (size) of customer but currently it ranges from 1 to 48 hours.</td></tr><tr><td colspan="2">We will publish the actual service levels on our website for our customers to see (their own)</td></tr><tr><td colspan="2">We will consider redoing the customer ESG survey by end 2022.</td></tr><tr><td colspan="2">In the area of IT security and compliance we will work to further implement the roadmap approved in 2021 and match international IT security standards.</td></tr><tr><td colspan="2">For Data Ethics we will introduce procedures and training to ensure that the principles form an integrated part of our operations.</td></tr></table> 4270703000 3449442000 56297000 388490000 376474000 42579000 51994000 -17815000 264086000 4983000 51006000 218063000 58164000 159899000 19687000 140212000 0 0 2436000 -536000 3585000 165384000 19687000 145697000 42579000 51994000 4360000 -103148000 127228000 -65695000 293000 51005000 72520000 75106000 16488000 106043000 17560000 1859000 -47000 -141997000 75000000 57504000 26082000 -29590000 0 1198000 16261000 5941000 -60950000 Årsrapport 30700228 EY Godkendt Revisionspartnerselskab Cortex Park Vest 3 5230 Odense M 2020-01-01 2020-12-31 Revisionspåtegning Grundlag for konklusion Konklusion 0 Søren Drewsen CEO Jan Holmetoft Iversen CFO Claus Ring Chairman Dennis Funch Jensen Søren Drewsen 3291318000 2623706000 49778000 325934000 291900000 39636000 60490000 -1128000 190646000 10582000 75872000 125356000 41585000 83771000 25438000 58333000 894000 196000 302000 -67000 -5528000 79176000 25733000 53433000 39636000 60490000 4662000 -26429000 99416000 -162277000 267000 52183000 45965000 233985000 18030000 3735000 0 0 -421000 -22186000 0 10936000 25293000 94950000 12649000 1000000 6837000 -149665000 62134000 685894000 341665000 11153000 56450000 58793000 4886000 9511000 1168352000 519225000 713440000 1506000 22719000 10862000 29172000 1296924000 2465276000 558901000 30206000 589107000 815082000 34229000 6145000 88713000 27410000 971579000 29590000 26904000 563832000 34664000 32502000 215030000 2069000 904591000 1876170000 2465276000 29172000 642210000 302726000 14558000 51197000 62185000 6500000 9450000 1088826000 341076000 534907000 2294000 17342000 6710000 90122000 992451000 2081277000 412006000 26880000 438886000 740089000 40052000 7136000 81909000 11254000 880440000 57665000 24448000 447154000 3250000 34672000 193431000 1331000 761951000 1642391000 2081277000 90122000 90122000 27988000 1339000 1339000 5427000 1070000 -791000 -5949000 61000 272000 -6160000 230000 -6390000 -6390000 -6390000 -6390000 -3663000 -8686000 -26000 61000 272000 35000 -1198000 0 0 1198000 1198000 0 1241000 1241000 4187000 880000 0 -3826000 0 153000 -3979000 4980000 -8959000 -8959000 -8959000 -8959000 3166000 3826000 0 0 154000 0 -4640000 0 0 1000000 1000000 0 512840000 0 512840000 7052000 0 434000 7486000 520326000 499319000 499319000 899000 20108000 21007000 21007000 520326000 0 512840000 195000 513035000 3576000 0 247000 3823000 516858000 504537000 504537000 491000 11830000 12321000 12321000 516858000 0 0 0 EY Godkendt Revisionspartnerselskab 30700228 Ole Becker State Authorised Public Accountant mne33732