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Wrist posts increased business volume and operating profit for 2021

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Jens Holger Nielsen, Group CEO and Anders Skipper, Group CFO of Wrist Group

Noerresundby – Denmark, 16.05.2022

In 2021, Wrist further consolidated its position and increased operating profit as the world’s leading supplier of marine provisions, stores, and spare parts logistics to the ship and offshore industrynot least through a strategic transition and substantial investments in the development of customized digital solutions.

Wrist succeeded in increasing business volume and revenue, improving the underlying operating
profit. Several major, global customer frame agreements were expanded and landed despite the turbulent market development, characterized by food and steel price inflation, global supply chain challenges and historically high ocean freight rates – all leading to general cost increases and volatility.

“During 2021, we continued to explore new opportunities for growth and acquisitions, and in February 2022, we concluded the acquisition of Centralam Panama, a key ship chandler based at the Panama Canal”, says Jens Holger Nielsen, Group CEO of Wrist Group. In acquiring Centralam Panama,

Wrist has expanded its global reach and secured a foothold at one of the world’s most important
maritime crossroads.

In 2021, Wrist generated revenue of DKK 4.5bn, up 3.6% from 2020. Gross profit decreased slightly
in 2021 to DKK 1,166m from DKK 1,182m in 2020, resulting in a decline in the gross profit ratio to
26.1% compared to 27.1% in 2020. The primary driver for the lower ratio was the long run effects of
COVID-19, including inflation, high freight rates, and supply chain disruptions as well as a time lag in
compensation from customers for these external cost increases.

Operating profit (EBITA) was DKK 155.5m compared to DKK 142.2m in previous year. A like-for-like
comparison of EBITA for 2020 and 2021 revealed an increase of 9.4% or DKK 13m as the result of
strong improvements in the business, including optimized sourcing and sales pricing strategies.
However, EBITA was also impacted negatively by costs related to strategic investments in digital
innovation and development consultancies.

The Group’s equity stood at DKK 932m at the end of 2021, up DKK 104m compared to 2020.
With the founding and funding of a new digital marketplace, Source2Sea, Wrist has taken ship
supply to the next level through the elimination of the analogue friction and inefficiency that still
plagues marine procurement and supply. Source2Sea is a multi-supplier marketplace that facilitates
marine procurement and supply between maritime buyers and suppliers, increasing convenience
and transparency throughout the eco-system with a focus on reducing costs while freeing up time
for onshore staff to focus on value added activities and vessel crews to focus on cargo and vessel
operations. Source2Sea operates independently of the Wrist Group with Wrist Ship Supply as a
major supplier of provisions and stores as well as last mile logistics.

Investments to strengthen operational capabilities and infrastructure in the remaining business were
also prioritized during 2021. An online customer portal was launched within Wrist’s Marine Logistics
business area. Innovation within Garrets, the Provision and Stores Management business area of
Wrist, continued and the planning of a new online ordering platform took place. The platform is
designed for smart ordering and stock management, and expectations are that it will be fully
launched in August 2022.

Looking ahead, Anders Skipper, Group CFO of Wrist Group says “We anticipate organic growth
benefitting from our strong market position. For 2022, we expect total sales to grow to around DKK
4.7-4.9bn and an increase in the operating profit to DKK 240-265m – a 55-70% increase. These expectations may be impacted by the Russia-Ukraine war causing supply chain disturbance and price
volatility.”

In 2021, Wrist launched its first environmentally friendly product line, Aware, to meet customers’
increasing demand for responsible stores and provisions. The green agenda is a key focus for Wrist.
“Expectations to the green transition within the maritime and offshore industries are higher than
ever. With thousands of different products and solutions delivered to seafarers around the world,
we are aware of our contribution to the climate footprint. In Wrist, we take our responsibility to help
solve the environmental and climate challenges very seriously.”, says Jens Holger Nielsen.

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