Brødrene A & O Johansen A/S : AO - Annual report 2021

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Annual Report 2021 Brødrene A & O Johansen A/S

Rørvang 3 - DK-2620 Albertslund

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Denmark

CVR No.: 58 21 06 17

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2021 was a very satisfactory year in which everyone was expected to be prepared and willing to change. The AO Group's staff did a fantastic job of navigating the constantly changing and extremely difficult conditions resulting from COVID-19.

AO is built on proud traditions, having existed for more than a century. Fundamental acceptance and understanding of the customer situations and needs are and will remain a cornerstone of AO culture: we will never be too big to thank customers for their orders or learn something new from them.

The AO strategy - which centres on the market for repair, renovation and maintenance - has demonstrated its strength with its local presence, its trade ranges and its distinctive nature which is deeply embedded in all elements of the organisation. Our new acquisitions and digital initiatives place us in a great position to face the new year, and - not least - our staff and their targeted team efforts are and will remain the cornerstone and very core of our success.

We defined a series of initiatives relating to corporate social responsibility (CSR) in 2021. In 2022, we will be focusing more closely on climate, the environment, green initiatives and their sustainable implementation in so- ciety.

We look forward to making an active contribution and sharing responsibility for the future we are passing on to generations to come.

Best regards,

Niels A. Johansen, CEO

Brødrene A & O Johansen A/S is a Danish-owned business, founded in 1914. We are currently a leading wholesale supplier to the construction industry. Given our customer base, an award-winninge-commerce platform, 51 stores nationwide, a high-tech logistics set-up and our constant focus on services that make life easier for tradespersons working in Denmark today, we consider ourselves well-equipped for the future and ready to fulfil our role as an IT, knowledge and logistics company. We run a leading e-commerce platform on the private market that provides inspiration, guidance and sales of products to consumers in Denmark, Sweden and Norway for modernisation projectsaround the home.Dividing our attention successfully between B2B and B2C, we are well equipped to deal with the future, and to fulfil the role of an IT-based, knowledge and logistics business.

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365 DAYS AT AO

This year's theme for the Annual Report for 2021 looks at the many new events that have happened during the 2021 calendar year. The photo montage provides us with a good overview of the entire Group and gives us an impression of a company never satisfied with just sitting on the sidelines, and that's constantly taking new initiatives and setting new goals. We are at the forefront of digital developments, services to our cus- tomers, acquiring new businesses, starting our own online stores and AO stores or our various green initiatives.

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CONTENTS

CONSOLIDATED FIVE-YEAR SUMMARY ................................................................	8
MANAGEMENT'S REVIEW ...................................................................................	9
Highlights of the year .............................................................................	9
Strategy, expectations and objectives.....................................................	9
Business foundation.............................................................................	14
Development in 2021 and the fourth quarter.........................................	15
Financial review....................................................................................	18
Risk management.................................................................................	20
Corporate governance...........................................................................	20
Sustainability.......................................................................................	21
Shareholder information.......................................................................	24
MANAGEMENT'S STATEMENT............................................................................	30
INDEPENDENT AUDITOR'S REPORT....................................................................	31
INCOME STATEMENT AND STATEMENT OF COMPREHENSIVE INCOME..................	34
BALANCE SHEET AS AT 31 DECEMBER...............................................................	36
CASH FLOW STATEMENT ...................................................................................	38
STATEMENT OF CHANGES IN EQUITY .................................................................	40
NOTES TO THE CONSOLIDATED AND ANNUAL FINANCIAL STATEMENTS................	44
FINANCIAL RATIO DEFINITIONS AS RECOMMENDED BY CFA SOCIETY DENMARK...	87
COMPANY INFORMATION..................................................................................	88
AO'S STORES AND OFFICES...............................................................................	89
INFORMATION ABOUT THE BOARD OF DIRECTORS' MANAGERIAL POSTS.............	92

This financial statement is available in Danish and English. In case of doubt, the Danish version shall apply.

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