Elanders

Annual Report (ESEF) • Mar 25, 2024

5493009S961JPI21WN662023-01-012023-12-315493009S961JPI21WN662022-01-012022-12-315493009S961JPI21WN662022-12-315493009S961JPI21WN662021-12-315493009S961JPI21WN662023-12-315493009S961JPI21WN662021-12-31ifrs-full:IssuedCapitalMember5493009S961JPI21WN662021-12-31ifrs-full:AdditionalPaidinCapitalMember5493009S961JPI21WN662021-12-31ifrs-full:OtherReservesMember5493009S961JPI21WN662021-12-31ifrs-full:RetainedEarningsMemberiso4217:SEKiso4217:SEKxbrli:shares5493009S961JPI21WN662021-12-31ifrs-full:EquityAttributableToOwnersOfParentMember5493009S961JPI21WN662021-12-31ifrs-full:NoncontrollingInterestsMember5493009S961JPI21WN662022-01-012022-12-31ifrs-full:RetainedEarningsMember5493009S961JPI21WN662022-01-012022-12-31ifrs-full:EquityAttributableToOwnersOfParentMember5493009S961JPI21WN662022-01-012022-12-31ifrs-full:NoncontrollingInterestsMember5493009S961JPI21WN662022-01-012022-12-31ifrs-full:OtherReservesMember5493009S961JPI21WN662022-12-31ifrs-full:IssuedCapitalMember5493009S961JPI21WN662022-12-31ifrs-full:AdditionalPaidinCapitalMember5493009S961JPI21WN662022-12-31ifrs-full:OtherReservesMember5493009S961JPI21WN662022-12-31ifrs-full:RetainedEarningsMember5493009S961JPI21WN662022-12-31ifrs-full:EquityAttributableToOwnersOfParentMember5493009S961JPI21WN662022-12-31ifrs-full:NoncontrollingInterestsMember5493009S961JPI21WN662023-01-012023-12-31ifrs-full:RetainedEarningsMember5493009S961JPI21WN662023-01-012023-12-31ifrs-full:EquityAttributableToOwnersOfParentMember5493009S961JPI21WN662023-01-012023-12-31ifrs-full:NoncontrollingInterestsMember5493009S961JPI21WN662023-01-012023-12-31ifrs-full:OtherReservesMember5493009S961JPI21WN662023-12-31ifrs-full:IssuedCapitalMember5493009S961JPI21WN662023-12-31ifrs-full:AdditionalPaidinCapitalMember5493009S961JPI21WN662023-12-31ifrs-full:OtherReservesMember5493009S961JPI21WN662023-12-31ifrs-full:RetainedEarningsMember5493009S961JPI21WN662023-12-31ifrs-full:EquityAttributableToOwnersOfParentMember5493009S961JPI21WN662023-12-31ifrs-full:NoncontrollingInterestsMember Elanders Annual and Sustainability Report 2023 Elanders Annual and Sustainability Report 2023  Elanders’ Annual and Sustainability Report 2023 This is Elanders Elanders at a glance 4 Our business model 6 The year in brief 8 Our business areas 10 CEO comments 12 Business concept, goals and strategies 16 Sustainability 18 Our customer segments 20 Our largest operations 34 Board of Directors’ report Board of Directors’ report 40 Sustainability reporting in accordance with the Annual Accounts Act 45 Risks and uncertainty factors 46 Corporate governance report 50 Financial reports and notes Group 56 Parent company 94 Proposed appropriation of profits 108 Auditor’s report Auditor’s report 109 Sustainability report Introduction 114 Strategy and materiality analysis 116 Environment 119 Social 124 Governance 125 Notes to the sustainability report 128 Auditor’s report on the statutory sustainability report 133 EU taxonomy 134 Other information Five years in summary 136 Share information and ownership structure 139 Reconciliation of alternative performance measures 142 Financial definitions 144 Specific terms 145 Board of Directors 146 Group management, auditors and nomination committee 148 Contact Elanders 150 Annual general meeting and financial calendar 154  Operations   Sustainability report Contents Contents  Customer segmentsCEO comments Elanders’ Annual and Sustainability Report 2023  Elanders is a global logistics company offering a broad service range of integrated solutions within supply chain management. The busi- ness is mainly operated through two business areas, Supply Chain Solutions and Print & Packaging Solutions. The Group has almost 8,000 employees and operates in around 20 countries on four continents. The most important markets are China, Singapore, the United Kingdom, Sweden, Germany and the USA. Integrated solutions worldwide Net sales, MSEK , Group The customers are divided into six segments according to their respective business; Automotive, Electronics, Fashion, Health Care, Industrial and Other. Elanders considers sustainability a responsibility, a business opportunity that can improve future profitability, and a prerequisite to create value. Therefore, sustainability is a part of Elanders’ business and strategy. Elanders at a glance Employees , Our locations in Americas: Brazil: 1 location, 47 employees; Canada: 1 location, 21 employees; Mexico: 2 locations, 48 employees; USA: 11 locations, 1,276 employees Locations > Employees , Share of net sales % North and South America Numer of countries ~  Elanders’ Annual and Sustainability Report 2023 Our locations in Europe: Austria: 2 locations, 51 employees; Czech Republic: 5 locations, 287 employees; Germany: 45 locations, 3,146 employees; Hungary: 4 locations, 268 employees; Italy: 1 location, 25 employees; Netherlands: 8 locations,195 employees; Poland: 3 locations, 272 employees; Romania: 1 location, 5 employees; Sweden: 5 locations, 166 employees; United Kingdom: 21 locations, 707 employees Asia Employees  Our locations in Asia: China: 12 locations, 399 employees; India: 2 locations, 104 employees; Singapore: 3 locations, 452 employees; Taiwan: 1 location, 5 employees; Thailand: 1 location; Vietnam: 1 location Elanders at a glance Share of net sales Europe Employees ,  % % Share of net sales North and South America Health Care Automotive Industrial Electronics Fashion Other → Elanders’ Annual and Sustainability Report 2023  Elanders is a global logistics company offering a broad service range of integrated solutions within supply chain management. The Group can support customers with services along every step of a product’s lifecycle, from the production start of its components until it has definitely served its purpose and is ready for recycling. Elanders’ customers come from a broad spectrum of industries and are divided into six customer segments: Automotive, Electronics, Fashion, Health Care, Industrial and Other. On behalf of its customers, Elanders’ business is mainly operated through the two business areas Supply Chain Solutions and Print & Packaging Solutions. Whether customers turn to Elanders for separate services or customized comprehensive solutions, the Group contributes to their increased productivity, profitability and sustainability. On behalf of customers, Elanders manages and optimizes the flow of raw materials, components, finished products, payments and information through all steps of a product’s lifecycle. The service offering includes everything from order management, procurement, purchasing of components, customs management and warehousing to production logistics, manufacturing, configuration, quality control and delivery. The Group also handles payment flows and synchroniz- ing purchasing and warehousing with demand, as well as managing the recycling or resale of returned or discarded products. Value-added services are tailored to the individual needs and wishes of customers. They include, for example, installation, testing, reparation, unloading and transshipment, as well as repackaging of products. When it comes to e-commerce, combined with providing logistics services, Elanders can create and take responsibility for the operation of the customer’s web shop, including content production and management, as well as customer and financial services. The Group also provides global, comprehensive solutions within print that are run extremely efficiently and flexibly. Everything from print and packaging production to various add-on services, like for example kitting and packing for just-in-time or sequence delivery, are offered. In addition to packaging, most of the growth in printing services is found within online print, where Elanders has both its own, efficient order platforms and delivers printed matter for a number of other well-established companies. Elanders considers sustainability both a responsibility and a business opportunity that can improve future profitability and value for Elanders, as well as the Group’s customers and society at large. That is why sustainability is an integrated part of the Group’s business and strategy. Elanders customer segments Read more about how our customer segments provide long-term growth on pages 20–33. Integrated solutions within supply chain management Our business model Production & Assembly • Cross Docking • Quality Control • Assembly & Testing • Production Life Cycle Management • Service & Installation • Reverse Logistics • Redistribution • Warranty Handling • Spare Parts • Repair & Refurbishment • Renewed Tech → Procurement & Inbound Services • Sourcing & Procurement • Customs Services • Freight Solutions • Warehouse & Inventory Management Distribution & Outbound Services • Pick & Pack • Consolidation & Transit • Global & Local Deliveries • JIS (Just-in-Sequence) • E-commerce E-commerce RetailConsumers Hospitals Factories Recipients Read more about about how sustainability creates business opportunities on pages 18–19. Our business model  Elanders’ Annual and Sustainability Report 2023 Elanders’ Annual and Sustainability Report 2023  The year was challenging, marked by high infla- tion, decreasing consumption and normalized freight rates for Air & Sea. All in all, this had a negative impact on Elanders’ organic growth. Nevertheless, Elanders remained stable thanks to its diversification that moderated the worst effects of the decline in demand. The year ended on a positive note with the acquisition of the British logistics company Kammac. During 2023 there was a decline in demand within a majority of Elanders’ customer segments and on all continents. The trend from 2022 continued with a weaker market for durable goods such as computers, TVs and household appliances. Demand also declined within fashion, and the automotive industry had continued problems with component supply. On a more positive note, the online print business had continued success, while at the same time prices for electricity, energy and materials stabilized. The Group’s negative organic growth is in large part due to normal- ized freight rates for Air & Sea. Parallel to this, certain business opera- 2023 in brief tions with low profitability have been discontinued which, together with successful renegotiation of client contracts and cost initiatives, contributed to a stable result. The width of Elanders’ customer base and its geographical distribution have helped mitigating the worst effects of the decline in demand. At the same time, the Group has succeeded in substantially improving its cash conversion, i.e. the ability to generate cash flows from the results that are reported. Elanders’ financial position remains stable although high interest rates are putting pressure on the bottom-line result. The Group has had success in its steady work to reduce working capital and improve cashflow. There is still room for Elanders to develop and widen its range through strategic acquisitions, like Kammac in November 2023. The acquired company’s extremely flexible business model and strong presence in the United Kingdom now opens up for more substantial business for customers there, while its business model can also be developed in other countries. The Group’s sustainability work and preparations for the imple- mentation of the EU directive for sustainability reporting, CSRD, have been progressing well during the year. Elanders has conducted the cal- culations of its scope 3 emissions, i.e the carbon emissions in the value chain. On the basis of these, Elanders has committed to setting climate targets in accordance with the Science-Based Targets initiative (SBTi) with the ambition to get the targets validated in the coming year. The year in brief Three year overview 2023 2022 2021 Net sales, MSEK 13,867 14,974 11,733 EBITDA, MSEK 1,967 1,940 1,468 EBITA exl. IFRS 16, MSEK 929 1068 770 EBITA, MSEK 820 940 641 EBITA adjusted, MSEK 927 966 658 Result after financial items, MSEK 398 666 482 Result after tax, MSEK 258 487 331 Earnings per share, SEK 1) 7.02 13.29 9.12 Cash flow from operating activities per share, SEK 50.39 31.27 30.07 Equity per share, SEK 108.50 108.46 92.67 Dividend per share, SEK 4.15 2) 4.15 3.60 EBITA-margin, % 5.9 6.3 5.5 EBITA-margin adjusted, % 6.7 6.5 5.6 Return on total assets, % 6.5 11.6 6.3 Return on equity, % 6.5 13.0 10.4 Return on capital employed, % 6.4 8.3 8.5 Net debt/EBITDA ratio, times 4.2 3.7 3.6 Net debt/EBITDA ratio excl. IFRS16, times 3.9 2.8 3.3 Debt/equity ratio, times 2.1 1.9 1.6 Equity ratio, % 24.7 26.6 28.0 Average number of outstanding shares, thousands 35,358 35,358 35,358 1) There is no dilution. 2) Proposed by the board. For Reconciliation of alternative performance measures and Financial definitions, see pages 142–144. →  Elanders’ Annual and Sustainability Report 2023 Våra affärsområden The year ended on a positive note with the acquisition of the British logistics company Kammac. Read more about Kammac on page 38. The year in brief Elanders’ Annual and Sustainability Report 2023  Supply Chain Solutions Supply Chain Solutions is Elanders’ largest business area and makes up three-fourths of the Group. It is within this area the Group sees big growth potential going forward. The market as a whole is ex- panding, outsourcing and online commerce is increasing, and demand is driven by a globally growing middle class. New regulations and changing behavior patterns will probably have a major impact on future logistic flows, which puts high demands on players who want to operate in the market. Elanders is one of the leading compa- nies in the world in global solutions for supply chain management. The range of services includes, among other things, taking responsibility for and optimizing customers’ material and product flows, everything from sourcing and procurement combined with warehousing to aftersales services. Share of net sales 81% Our business areas 11,385 Share of EBITA 88% Net sales MSEK  Elanders’ Annual and Sustainability Report 2023 Print & Packaging Solutions In general, the market for this business area is characterized by change in demand and successive consolidation. However, thanks to Elanders’ financial strength, this also creates opportunities for the Group to gain market shares. There is an ongoing shift from tradi- tional offset print with large editions towards digital print and more recipient-adapted products. Online print, a strategic priority for the group, continues to show organic growth. Through its innovative force and global presence, the business area Print & Packaging Solutions offers cost-effective solutions that can handle customers’ local and global needs for printed material and packaging. This most often in combination with advanced order platforms on the Internet, value-added services and just-in-time deliveries. Share of net sales 19% Our business areas 2,630 Share of EBITA 12% Net sales MSEK Elanders’ Annual and Sustainability Report 2023  A trend with a lower demand for durable goods such as computers, TVs and household goods continued in 2023. In addition, the demand for fashion products declined and our customers in Automotive continued to suffer from problems with the component flow. Another factor behind our lower net sales was a normalization of the forwarding freight costs within the Group’s Air & Sea operations. On the positive note, prices for electricity, energy and material stabilized. Considering the very challenging year, marked by declining demand and a negative organic growth, Elanders still succeeded in generat- ing a relatively good result with an adjusted EBITA margin of 6.7 percent, to compare with last year’s 6.5 percent. The reason for this is that we discontinued low profit business while renegotiating contracts with customers and taking cost-cutting measures. We also reduced our buy and sell business during the year. This has both strengthened our margins and reduced working capital by over MSEK 370. Elanders continues to have very stable financing although rising interest rates put pressure on the bottom line. To counter the high interest costs, we have worked diligently to reduce our working capital and improve cash flow. The outcome has been very positive, and we achieved a cash conversion of 110 percent, which can be compared to last year’s 65 percent. Fundamentally we feel secure with our robust business model built on diversification, both geographi- cally and in various customer segments. We support our customers with both offshore and nearshore solutions according to their wishes and we can act quickly when crises arise. The Group’s sustainability work has progressed well during the year. Business-wise we see the importance of being a strategic business partner that can help the customer to get control of and reduce its emissions in the value chain. We have also developed our concept in Renewed Tech in Sweden through collaboration with the chain store Kjell & Company. This entails collection of used equipment which we can recondition for a second life. Furthermore, we have continued the preparations to become in line with the new EU directive for sustainability reporting, CSRD. At the end of 2023, we completed our calculations of the carbon emissions generated in the Group’s value chain, i.e. in scope 3. In December 2023 we also made a com- mitment within the Science Based Targets initiative (SBTi) with the ambition to get our climate targets validated in the coming year. Focus cash flow Supply Chain Solutions Our largest business area, Supply Chain Solutions, has delivered a stable result overall, despite negative growth and surplus capacity. Our broad customer base has helped us mitigate the worst effects of a weaker market with declining demand in most of our customer segments. Despite the lower demand, we achieved a profit margin only slightly under last year’s, and at the same time managed to improve our cash conversion significantly. After very good performance in North America in 2022, driven by fantastic growth in Bergen Logistics, even this region was negatively impacted in 2023. Demand declined and growth stalled, which combined with surplus capacity resulted in lower margins than the previous year. Demand in Europe continued to fall during the year, and this affected nearly all our customer segments. Despite negative growth in this region, we managed to maintain margins by renegoti- ating customer contracts and close down business that was unprofit- able. In Asia, despite a decline in demand, we succeeded in raising profit margins though cost-cutting measures and a lower share of buy and sell business. CEO comments High inflation, declining consumption and discontinuance of unprofitable business turned 2023 into a challenging year. All of this had a negative effect on the organic growth. Yet, Elanders managed to end the year on a positive note through a strong cash flow that enabled the acquisition of Kammac. During the first quarter of 2024 this was followed by yet another acquisition, Bishopsgate.  Elanders’ Annual and Sustainability Report 2023 Elanders managed to end the year on a positive note through a strong cash flow. Magnus Nilsson President and Chief Executive Officer CEO comments Elanders’ Annual and Sustainability Report 2023  2023 was another challenging year where Elanders had to demonstrate decisiveness in order to deal with a weak demand and cost pressures from high inflation and high interest rates. Elanders continues to invest in long-term organic growth in Supply Chain Solutions and during the year we opened new facilities in Mexico, Germany, the United Kingdom and the USA. By expanding in Mexico we are responding to the growing trend of nearshoring, where customers in Asia move operations to Mexico in order to cost efficiently come closer to the North American market. The new facility in Germany is part of our ongoing expansion in Health Care and handles import, warehousing and delivery of components for manufacturers of medical equipment. Also, the new facility in the USA is part of our expansion in Health Care and offers sterile packaging solutions. An important development during the year has been continued global rollout of Bergen Logistics’ business model in the customer segment Fashion. In 2023, we implemented the model at additional sites in the Netherlands, China and the United Kingdom. This primarily takes place in existing units, which minimizes risks and speeds up integration. Our goal is to offer customers a global solution with a single integration for all markets worldwide, which would be something unique. We plan to continue this work throughout 2024. The most positive news in the business area during the year was our acquisition of the British growth company Kammac in November. It adds both a unique business concept to the Group and at the same time makes us a stronger actor in the UK. Previously, our limited capacity in the country has prevented us from participating in large procurements. With Kammac’s 15 warehouses and extremely flexible business model, we will now be able to handle major business on the British market as well. We also plan on developing the company’s business model in other countries. Acquisitions are an important part of our strategy to constantly develop our offer, broaden our geographic horizon and improve our margins. The acquisition of Kammac was followed by another acqui- sition in the UK in the first quarter of 2024, the Life Cycle Manage- ment company Bishopsgate. They are one of the UK’s leading actors within special transportation, installation and configuration of medi- cal devices, office printers, data centers, parcel lockers and charging stations for electric vehicles. The acquisition is part of Elanders’ strategy to be able to manage a larger share of our customers’ value chain as well as increase our share of value-added services. Print & Packaging Solutions The margin improved in the business area Print & Packaging Solutions during 2023, despite a weak market. We successfully renegotiated important customer contracts while material and electricity prices stabilized. We also continued to reap success within online print. When the industry was hit by material shortages last year, we were forced to build up buffer stock that we successively re- duced during 2023. This, together with other measures, resulted in a significant improvement of the business area’s cash conversion cycle. The improved margin is primarily due to positive developments in Europe even though demand for traditional printed matter in large CEO comments  Elanders’ Annual and Sustainability Report 2023 editions continues to decline. Elanders’ successes mainly stem from continued growth in digital printing and the fact that we can produce small editions industrially, all the way down to unique copies. This concept allows us to offer competitive solutions to actors with business in online print. During the year, we further increased our capacity with the latest technology in digital print and expanded our finishing capacity. The market for traditional printed matter is on decline and severely competitive. A consequence of this is the constant need to optimize operations and make them more efficient to keep them profitable. The advantage for Elanders is that we often compete with smaller, local companies with limited ability to continuously streamline their business. Because of our size, we have other avenues to maximize the capacity utilization of our production equipment by, for example, specializing our various units in different products and placing work for customers where we can best produce it. The demand for constant optimization and efficiency is high on a contracting and highly competitive market like printing. Thanks to our size, Elanders can handle this better than most of our competi- tors that generally are small and local. A couple of ways we meet the demand for efficiency is by optimizing our various units for different products and maximizing capacity utilization of production equip- ment. In addition, we constantly develop our offer with new kinds of products and concepts within online print, and even by combining digital print with traditional print for efficient solutions with less environmental impact. The organic growth in Print & Packaging Solutions is primarily driven by our successes in online print. Another vital factor is how well we have developed our offer to both existing and new customers through taking responsibility for a greater portion of their value chain by handling other products and various logistics services. Summary In summary, 2023 was another challenging year where Elanders had to demonstrate decisiveness in order to deal with a weak demand and cost pressures from high inflation and high interest rates. Because the Group has several legs to stand on, we were able to resist pressure and didn’t lose sight of new opportunities or our focus on sustain- ability and the ongoing transition to a circular economy. I want to end with a heartfelt thanks to all the employees in the Group that work every day to deliver on the highest level and help us achieve long lasting success. Of course, I also want to thank our investors and customers for their confidence in us. We are now continuing to jointly develop Elanders as one of the world’s leading companies in supply chain management and online print. CEO comments Magnus Nilsson President and Chief Executive Officer Elanders’ Annual and Sustainability Report 2023  Elanders has a particular focus on advanced logistics solutions with a large portion of value-added services. Together with the customers, Elanders develops their business, strengthens their competitiveness and makes their supply chain more sustainable. Managing the supply chain optimally reduces resource consumption in production, ware- housing and transportation, which makes the customers’ business operations more cost-efficient and sustainable. Elanders strives to have a balanced mix of customers in terms of both geographies and industries, with the aim to reduce the effect of fluctuations in individual markets as well as of general business cycles. The Group is looking for customers where Elanders is a strate- gic business partner supporting them to develop further. Business concept Elanders wants to be a global and strategic partner to the customers in their business-critical processes. The goal for Elanders is to be a leader in global end-to-end solutions in supply chain management and to be the best at meeting customers’ demands on efficiency and delivery, while focusing on sustainability. Elanders helps customers with their business-critical processes, locally and globally, through integrated and customized solutions for managing all or parts of their supply chains. At the same time, the customers’ climate footprint is reduced through optimization of both material and product flows. Financial and sustainability targets To achieve its long-term financial targets and consistently deliver an increase in value and higher return to its shareholders year after year, Elanders continually develops its offer to the customers. A sustainable business model and new and continually improved services, combined with innovative technology, creates a good platform for continued growth and development as well as greater value for shareholders. At the beginning of 2023, the Group communicated its greenhouse gas reduction targets. The targets signify that the business shall be in line with the 1.5-degree target of the Paris agreement by year 2030. The Group is to reach net zero emissions in the entire value chain by year 2050. Growing organically and through acquisitions Elanders is developing together with its customers. Global business often emerge through the solid relationships created when local needs are met and are optimized through good solutions that are then implemented globally for customers. As the Group expands, its capacity to meet customers’ needs in new geographic markets increases, which deepens the customer relationship. In addition to developing its existing business, Elanders will continue to acquire new businesses that have the potential to increase sales, broaden its customer base and complement its existing offer. An important criterion for acquisitions is that they provide access to new, or further develop, geographic markets or customer segments. The objective is that acquisitions always broaden or complement Elanders’ offer and, if possible, provide further niche expertise. Optimized solutions for strengthened competitiveness and endurance Elanders’ overarching goal is to be a leader in global solutions within supply chain manage- ment in a connected and sustainable world. Business concept, goals and strategies 0 1 2 3 4 5 Mål 3-5% Omsättningstillväxt 20232022202120202019 0 1 2 3 4 5 6 7 8 Mål 3-5% Omsättningstillväxt 20232022202120202019 –10 –5 0 5 10 15 20 25 30 Mål 3-5% Omsättningstillväxt 20232022202120202019  Elanders’ Annual and Sustainability Report 2023 Long-term financial targets Long-term sustainability targets Elanders’ long-term financial targets are as follows 2030 Reduce greenhouse gas emissions within scope 1 and scope 2 by 50 percent and reduce emissions within scope 3 related to own operations by 30 percent. 2040 Reduce emissions within scope 1 and scope 2 by 75 percent. 2050 The Group should have achieved net zero emissions over the entire value chain.  Goal achieved  Goal not achieved  Goal EBITA-margin, % >7 percent Net debt/EBITDA The ratio should be under <2.5 Net sales growth, % At least 3–5 percent annually over a business cycle Business concept, goals and strategies → → Elanders’ Annual and Sustainability Report 2023  Transition that creates business opportunities Sustainability The goal is that the Group’s negative impact on the environment is minimized and new business models found that can have a positive effect in form of, for example, more circular material and resource flows. At the same time, Elanders shall contribute to a sustainable social development and be a responsible and attractive employer. Related disclosures to the areas environment, social responsibility and governance are included in the sustainability report on pages 114–135. A flexible partner in the transition towards net zero In 2023, the rapid pace of companies setting ambitious targets for reducing greenhouse gas emissions in line with what is considered necessary to keep global warming below 1.5 degrees continued. Elanders was one among these and will join the transition to net zero emissions throughout its own operations and value chain. This means reducing emissions of greenhouse gases to minimum level, and that residual emissions are balanced through recognized methods for carbon dioxide removals. At the same time, when Elanders now implements measures to reach its climate targets, it facilitates the customers’ transition work as their value chain emissions are reduced. Elanders can use its business model and global presence for the benefit of both a reduced climate footprint and increased profitability. The Group offers services along all stages of a product’s life cycle, from the beginning of the manufacturing chain until the product has completely served its purpose and is ready for recycling. On behalf of customers, Elanders manages and optimizes flows of both raw With unique and customized services, Elanders helps their customers grow and expand to new markets. As a global business, Elanders feels a responsibility to run its operations in a sustainable way. Elanders wants to be a strategic business partner in the climate transition where the pressure for change in the value chains can create further value and improve profitability. materials and components as well as finished products. Through a broad service portfolio and geographical spread, Elanders can offer customized logistics solutions close to the customer’s business and the end customer. In this way, the customer can reduce emissions, not least in their transport systems, and at the same time optimize costs. As a partner to the customer, Elanders can further make visible the emissions in the customer’s value chain and at the same offer alterna- tive solutions aimed at where the customer has its greatest impact and needs. Sustainable logistics solutions need to be both energy efficient, reliable and safe. Here, Elanders wants to be a strategic business partner and to grow together with the customer. The more integrated into the customer’s business model, the more Elanders, with its solu- tions and employees, can help the customers to reduce their negative impact and along the way find cost savings in their logistics chain. Enabler for circular solutions In recent years, Elanders has expanded within the business area Life Cycle Management, covering the circular concept Renewed Tech. Through a service-based and circular business model, the concept takes advantage of the potential found on the second-hand market for IT products. Elanders has scalable circular business models that can be extended to different customer segments. In dialogue with the customer, Elanders can become an enabler of circularity within the customer’s business model.  Elanders’ Annual and Sustainability Report 2023 Sustainability In 2023, Elanders further developed the circular business model and took a step towards the consumer. The Swedish subsidiary ReuseIT launched a collaboration with the tech retail chain, Kjell & Company, that allows members of Kjell & Company’s customer club to return their comput- ers, tablets and cell phones in the chain’s shops. ReuseIT has developed a system that enables real- time valuation and efficient logistics management which has been integrated into Kjell & Company’s stores. After ReuseIT’s quality control, secure data wiping and reconditioning, the returned products are then made available for purchase through Kjell & Company’s web shop. Within Renewed Tech, Elanders takes care of used IT equipment, for example computers and servers, to be reconditioned and sold to new users on the second-hand market. The biggest environmental impact of a product comes from the production phase. This means that there are considerable environ mental advantages of prolonging its life before it is finally recycled. IT return at Kjell & Company Renewed life for used IT equipment Elanders has scalable circular business models that can be extended to different customer segments. 1) The emission savings in CO 2 equivalents have been calculated in accordance with the principles set out in the report “Analys av återbrukade IT-produkter” (Eng: “Analysis of recycled IT products”), produced by the research institute RISE in collaboration with Elanders. → During 2023, Elanders handled approximately 100 thousand discarded units that were given a new life with a new user. That equals more than 27 thousand tons CO 2 equivalents. 1) Automotive 20% 12% Industrial Elanders’ Annual and Sustainability Report 2023  Elanders’ customer segments Elanders divides its customers into six seg- ments according to the industry they work in: Automotive, Electronics, Fashion, Health Care, Industrial and Other. The Group strives to have a good spread and customer mix in the segments. Diversification makes Elanders more robust in business cycle fluctuations, swings in demand and global crises. The automotive industry is going through a period of challenging transitions as develop- ments shift to electric vehicles, self-driving vehicles and demands for climate neutrality. Today, brand name owners want to focus on their core business and therefore put high demands on their supply chain regarding both quality and reliability. Industrial manufacturers currently need low manu- facturing costs, high product quality, short lead times and high delivery precision. From production to aftermarket, logistics are a key factor. Outsourcing these services, a reliable supply chain all the way to the end customer can be guaranteed. At the same time, manufacturing processes can be streamlined. Growth prospects: Medium Business cycle sensitivity: High Growth prospects: Medium Business cycle sensitivity: High Our customer segments 28% Fashion Health Care 4% 25% Electronics 11% Other  Elanders’ Annual and Sustainability Report 2023 Growth prospects: High Business cycle sensitivity: Medium Growth prospects: High Business cycle sensitivity: Medium In the Fashion industry, sales are shifting from traditional retail sales to more online shopping. Many customers are looking for a partner that can take extensive and comprehensive responsibility and be deeply integrated into their e-commerce and other business. At the same time, managing returns and recycling is becoming an increasingly important part of the supply chain. Customers in Health Care operate in a heavily regulated industry that is growing due to factors such as an aging population, lifestyle diseases and rapid technological developments. Demands on quality in processes and management are often extremely high. A quality-assured and broad offer that covers customers’ needs has consid- erable potential in this area. Growth prospects: Medium Business cycle sensitivity: Low The customer segment Other includes customers within online print and the food and beverage industry, among others. As opposed to traditional, commercial offset print, volumes continue to grow in mass production of individually customized printed matter ordered online. In connection with the acquisition of Kammac, there was an increase in the number of third-party logistics customers within the food and beverage industry. Business cycle sensitivity: Medium Growth prospects: Medium In a world characterized by, among other things, a growing middle class, the consumption of electronics is on the rise, both for companies and consumers. This goes for everything from computers, surveillance systems and TVs to heat pumps and data centers. At the same time, requirements on resource effectiveness and sustainability are getting more stringent. Our customer segments Elanders’ Annual and Sustainability Report 2023  There is an ongoing development away from traditional retail sales to a growing share of online shopping. Thanks to, among other things, cutting-edge IT solutions and a wide range of value-added services, Elanders is responding to the need that many clients have of a logistics partner that can take extensive and comprehensive responsibility and be integrated in their business operations. At the same time, handling of returns, recycling and reuse is becoming an ever more important part of the supply chain as e-commerce grows further. Fashion – a growing customer segment Trends within Fashion Our customer segments – Fashion 20 number of sites globally 28% of Elanders’ total sales 490,000 m in total floor area at facilities within the Group Sourcing & Procurement Freight coordination & Customs management Warehousing Quality control & Assembly and testing Manufacturing Freight coordination & Customs management Warehousing Configuration & Testing Pick & PackLocal and global distribution & Customs management White glove delivery Returns management Reuse & Recycle After sales Just-In-Time deliveries  Elanders’ Annual and Sustainability Report 2023 Suitable solutions for all customers The Fashion customer segment includes not only clothes, but also acces- sories, perfumes and other lifestyle items. A common characteristic for the fashion industry is a fast pace, with several new collections in a year. A logistics partner must keep up with the speed of the industry, be able to handle extremely fluctuating volumes and make sure that the right goods are available in stores and ready for online orders at the right time. The end customer’s experience must always be excellent when it comes to service and speed of delivery. Today, Elanders offers different concepts for different types of clients within the world of fashion, catering to their various needs. Small to medium-sized businesses are offered highly standardized third-party logistics concepts that can easily be integrated in their own systems, which enables them to quickly access different markets, wherever they are located in the world. At the same time, the Group also offers more complex concepts for mature brands that crave more customization and flexibility from their logistics partner, in order to achieve desired scalability and flexibility. No matter the type of concept, the great advantage clients get from Elanders is that they can focus on their core business: designing clothes (or other fashion items) and handling the manufacturing and sales. Mean- while they keep one point of contact and one integration for their global fulfillment needs. Elanders is a reliable partner providing high quality and smoothly functioning processes, as well as a keen ear for customer needs and the option of different kinds of value-added services. Fashion is one of Elanders’ largest customer segments. Within this area the Group offers global supply chain management services adapted to the needs of all types of customers. From new, smaller brands all the way up to well-established giants present in most consumers’ wardrobes. Elanders in the customers’ value chain Our customer segments – Fashion Elanders’ Annual and Sustainability Report 2023  Trends within Electronics The consumption of electronics has for long been on the rise, both for companies and consumers, just as the middle class is growing on a global scale. Across the world, Elanders is a reliable partner for electronics suppliers. At the same time, for sustainability reasons, end consumers are increas- ingly buying electronics products second-hand. Through the Group’s investments in Renewed Tech, Elanders is also present in this growing market. Electronics – decades of experience Our customer segments – Electronics >100 countries receive deliveries from Elanders 25% of Elanders’ total sales 12 MILLION laptops are handled every year  Elanders’ Annual and Sustainability Report 2023 From component pro- curement to collecting discarded end products Within the Electronics customer segment, Elanders is a well-established service provider with decades of experience. Clients demand end-to-end services to achieve efficient handling of large volumes of products and equipment that often need to be adapted to various geographical markets and types of users. The management of spare parts, repairs and handling of discarded equipment are also increasingly handed over to a partner on today’s outsourcing market. Elanders offers to be the clients’ sole point of contact for a wide range of services during the entire lifecycle of electronics. The Group provides services starting off from the procurement of components, carrying out quality controls and just-in-time/sequence deliveries for manufacturing. When the products are finished, Elanders offers warehousing and distribu- tion to end customers. A range of value-added services such as assembly of components, flashing software, country adaptation and consolidating orders are offered. Furthermore, clients can get assistance with customs clearance, certain financial services and cross-border tax management. Besides efficient delivering to end customers, Elanders’ clients can benefit from aftermarket services such as the supply of spare parts, repair/maintenance and updating of software or batteries. Once the end customer eventually dis- cards the product, the services within Renewed Tech can be added to circulate the product. There, the discarded equipment is collected and sub sequently gets its data wiped and is either reconditioned and sold on the second-hand market or recycled after any reusable spare parts have been salvaged. The Electronics customer segment is one of Elanders’ largest, with several giants within elec- tronics and IT found among its clients. In this area, the Group delivers a wide variety of services starting from when the products are manufactured and on their way to market, until the time comes for discarded products to possibly be given a renewed life on the second-hand market. Elanders in the customers’ value chain Our customer segments – Electronics Sourcing & Procurement Freight coordination & Customs management Warehousing Quality control & Assembly and testing Manufacturing Freight coordination & Customs management Warehousing Configuration & Testing Pick & PackLocal and global distribution & Customs management White glove delivery Returns management Reuse & Recycle After sales Just-In-Time deliveries Elanders’ Annual and Sustainability Report 2023  Trends within Automotive Considering the challenging transitions characterizing their industry, vehicle manufacturers today want to focus on their core business more than ever. In order to meet the climate crisis and manage technical innovations like self-driving vehicles, they are placing high demands on their supply chains and are looking for solutions that guarantee quality and reliability. Elanders has the ability to respond with agile flexibility and a focus on optimal quality in every situation. Automotive – flexibility for change Our customer segments – Automotive 260,000 m 2 in total floor area at facilities within the Group 20% of Elanders’ total sales 150 MILLION outgoing deliveries every year from Elanders’ warehouses  Elanders’ Annual and Sustainability Report 2023 Bespoke solutions to optimize production For the automotive industry Elanders offers almost every service in the supply chain, except for the delivery of finished vehicles and the recycling of old ones. Within Automotive today, logistics providers must be flexible and able to quickly react to changes, since the market is in the midst of a shift from internal combustion engines to climate neutrality, electrical power and more self-driving vehicles. The ability to handle changes and support differ- ent kinds of products in the supply chain is pivotal. The Group’s key strength is the ability to develop and customize solutions together with clients. As a reliable logistics partner, Elanders organizes an efficient flow of the components needed when the clients are manufacturing their cars. Elanders performs services and handles the supply of components in all stages, from the first idea for a new car model to pre-assembly, serial production and the return of empty packaging after use. Elanders furthermore offers to act as the control tower for clients. This entails managing orders to freight forwarders all over Europe, as well as operating the cross-dock center where all components are handled before being delivered to the production line. When possible, the component suppliers’ empty packaging is returned to the respective supplier for reuse. The status for incoming components is checked to foresee and act on any delays, orders are split into smaller consignments and components delivered to the factories in sequence and just-in-time. At the other end of the produc- tion line, empty packaging and boxes used upon delivery are cleaned up and reused for the next delivery of components. Elanders is a logistics partner to several Swedish, German and British car manufacturers that are all included in the Automotive customer segment. The Group assists these clients with services before, during and after their line production, so that they can focus on what they do best: building and selling cars. Elanders in the customers’ value chain Our customer segments – Automotive Sourcing & Procurement Freight coordination & Customs management Warehousing Quality control & Assembly and testing Manufacturing Freight coordination & Customs management Warehousing Configuration & Testing Pick & PackLocal and global distribution & Customs management White glove delivery Returns management Reuse & Recycle After sales Just-In-Time deliveries Elanders’ Annual and Sustainability Report 2023  Trends within Industrial The value of a reliable supply chain has been underlined by the crises of the last few years. All the way from produc- tion to aftermarket, logistics are a key factor for industrial manufacturers to achieve low manufacturing costs, high product quality, short lead times and high delivery preci- sion. As a reliable logistics partner, Elanders is well-posi- tioned to help clients succeed in all this. Industrial – efficient logistics a key factor Our customer segments – Industrial 12% of Elanders’ total sales 230,000 m 2 in total floor area at facilities within the Group 2 MILLION outgoing deliveries every year from Elanders’ warehouses  Elanders’ Annual and Sustainability Report 2023 Customized solutions at the right cost In order to stay competitive and generate profits, industrial manufacturers today need control and efficiency at all stages. Manufacturing costs must be kept down, lead times short and product quality and delivery precision high. Logistics is a key factor for success along the supply chain all the way to aftermarket. Elanders offers logistics solutions adapted for all types of industrial clients. Elanders makes sure that finished products, as well as components and production-related materials, are delivered in the right place at the right time. The Group not only manages distribution and transport logistics throughout the supply chain. Clients can also receive the flexibility they desire with customized solutions adapted to their specific operations. The Group also offers industrial logistics solutions combined with value- added services that streamline clients’ production and assembly processes. For example, these include kitting, simple manufacturing, voltage testing of batteries and other functional testing, as well as preparing plastic boxes or other charge carriers for reuse. Additionally, Elanders can take on individual assembly steps, such as the pre-assembly of modules that can then be deliv- ered just-in-time into the client’s production. The finished equipment can, if the client wishes, be delivered and installed directly at the end customer’s location. Elanders has a strong position in the Industrial customer segment and handles everything from smaller products to large-scale, logistically complex constructions and solutions. With a keen ear to clients’ needs, the Group retains the high delivery precision and service quality demanded. Elanders in the customers’ value chain Our customer segments – Industrial Sourcing & Procurement Freight coordination & Customs management Warehousing Quality control & Assembly and testing Manufacturing Freight coordination & Customs management Warehousing Configuration & Testing Pick & PackLocal and global distribution & Customs management White glove delivery Returns management Reuse & Recycle After sales Just-In-Time deliveries Elanders’ Annual and Sustainability Report 2023  Trends within Health Care The medical technology industry is growing due to factors such as an aging population, lifestyle diseases and a rapid technological development. At the same time, there is a potential for increased outsourcing within the supply chain, including various value-added services throughout the chain. With a reliable partner like Elanders, possessing the neces- sary expertise and experience within the area as well as the capacity to meet needs at a global level, clients can stream- line their processes and focus on their core business. Health Care – great potential for growth Our customer segments – Health Care ISO 13485, ISO 9001, ISO 14001, ISO 27001, GDPMDS and AEO-F Certifications within Elanders 4% of Elanders’ total sales 10,000 customer orders handled per day  Elanders’ Annual and Sustainability Report 2023 Competent help throughout the lifecycle The Health Care customer segment has a great growth potential seen to the fast-paced scientific and technological development, combined with the effects of a globally aging population and prolonged life expectancy. The health services and medical care industry has special regulations and strict demands when it comes to things like sterile handling of equipment, components, consumables and input materials for medicines. For a logistics partner, this entails considerable investments, high standards, quality- assured processes and recurring audits of required certifications. There is no margin of error when it comes to this type of equipment, products or materials. Both expertise and trust between provider and client must be built over time. Elanders has solid experience as a partner to medical technology compa- nies. With a global footprint, the Group today offers experts within medical logistics, committed to delivering services at the highest level of quality without compromise and with continuous improvements. The clients turn to Elanders throughout the product lifecycle, starting from the procurement of materials, through manufacturing and assembly, as well as distribution, and on to aftermarket services and the handling of equipment that is worn out. Elanders can manage entire logistics chains and ensure that end customers are provided with the equipment, spare parts and consumables, at the right time. The Group handles all aspects of logistics and transport, as well as providing and coordinating value-added services for sensitive health care equipment and in vitro diagnostics. This includes demo pool services, instal- lation services, taking back worn-out equipment, as well as temperature- controlled storage in different climate zones down to -80 degrees Celsius. In the customer segment Health Care, Elanders’ principal focus is within medical technology. The Group offers customized solutions throughout the product lifecycle, starting from the procurement of input materials all the way until the equipment is worn out. Elanders in the customers’ value chain Our customer segments – Health Care Sourcing & Procurement Freight coordination & Customs management Warehousing Quality control & Assembly and testing Manufacturing Freight coordination & Customs management Warehousing Configuration & TestingPick & PackLocal and global distribution & Customs management White glove delivery Returns management Reuse & Recycle After sales Just-In-Time deliveries Elanders’ Annual and Sustainability Report 2023  Trends within Other Volumes continue to grow in production of individually customized printed matter ordered online. Printed products that were traditionally produced in identical editions and high quantities are now being customized in runs down to one single copy, for example photobooks, calendars or art for the home, or packaging for small businesses. Based on automation and the latest technology, Elanders’ offers a process and fulfillment of high quality that is appreciated by both large and small clients. Other – smaller, but growing sectors Our customer segments – Other 11% of Elanders’ total sales 650,000 photo calendars per year 5 MILLION Online Print books per year  Elanders’ Annual and Sustainability Report 2023 The growing side of print, among other things Elanders is a global provider within print and packaging, with its own print production sites in a number of countries and collaborations within several networks and partnerships. Although traditional commercial offset printing today is experiencing continuously decreasing volumes, the story is quite the opposite when it comes to various forms of digital print ordered online. This is a growing business driven by digitalization and the use of social media. Elanders is one of the biggest digital print providers in the European market that does not belong to an e-commerce brand. The Group is working both as a print provider to major brands and selling directly to companies and consumers through its own channels and branded web shops. The three main product areas for Elanders’ Online Print business are customized output, short run on demand and value-added print products. Thanks to economies of scale, advanced automation, and optimized workflows resulting in high quality, reliability and scalability, Elanders is very competitive and aiming for further growth. Another important part of the customer segment Other is now the beverage industry. Here, the Group is providing third-party logistics services with great range, including warehousing of both finished products and brewing materials, e-commerce fulfillment and transport. Using the latest technology, and with many years of experience, Elanders is a valuable logistics partner to its clients. Various smaller sectors of Elanders’ business are serving customers in the segment Other. The largest share of sales here is found within the area of Online Print, where a range of digital printing services are growing at a good pace. With the acquisition of Kammac, clients within the food and beverage industry are making up a new part of the segment. Elanders in the customers’ value chain Our customer segments – Other Sourcing & Procurement Freight coordination & Customs management Warehousing Quality control & Assembly and testing Manufacturing Freight coordination & Customs management Warehousing Configuration & Testing Pick & PackWhite glove delivery Returns management Reuse & Recycle After sales Just-In-Time deliveries Local and global distribution & Customs management Elanders Print & Packaging Mentor Media LGI Bergen Logistics Kammac Supply Chain Solutions 81% Print & Packaging Solutions 19% Elanders Group Elanders largest operations Elanders is a global logistics company offering a broad service range of integrated solutions within supply chain management. The business is mainly operated through two business areas, Supply Chain Solutions and Print & Packaging Solutions. The Group has almost 8,000 employees and operates in around 20 countries on four continents. The most important markets are China, Singapore, the United Kingdom, Sweden, Germany and the USA. Customers are divided into six segments according to their respective business; Automotive, Electronics, Fashion, Health Care, Industrial and Other. Our largest operations Elanders’ Annual and Sustainability Report 2023  Share of net sales Share of net sales Geographical presence Austria, Czech Republic, Germany, Hungary, Netherlands, Poland, Romania, Sweden, United Kingdom and USA Customer segments Automotive, Electronics, Fashion, Health Care, Industrial and Other Net sales, MSEK ~6,450 Number of employees ~3,400 SUPPLY CHAIN SOLUTIONS Our largest operations Today, LGI is one of the leading logistics service providers based in Germany. The company offers a range of integrated solutions within supply chain management, from contract logistics to trans- port/forwarding services, regional or international, multichannel or omnichannel. LGI has more than 50 sites across Europe and the USA and can service customers via its entire global network. LGI is a logistics-focused service provider that offers customized solutions for contract logistics, transportation/forwarding, value added services as well as a wide portfolio of additional services along the supply chain to its customer base. Contract logistics account for approximately half of LGI’s revenue. LGI’s strategy in this market segment is to develop and maintain good and comprehensive relation- ships with global giants, large companies and also start-ups. In the area of transport logistics, LGI provides all services, all the way from delivery of the goods to on-site installation and return. In More than 50 sites across Europe LGI was founded about 30 years ago in Germany and has, over the years, acquired several supply chain companies and further expanded its operations. The company was acquired by Elanders in 2016. the digital transformation of business models through e-commerce fulfillment, LGI have years of experience and excellent references in both the B2C and B2B sectors. Our goal is to provide sustainable, leading-edge and flexible end-to- end solutions and be a strategic partner to our customers. Bernd Schwenger CEO & President Elanders’ Annual and Sustainability Report 2023  Number of employees ~1, 20 0 Geographical presence Brazil, China, Czech Republic, India, Mexico, Singapore, Taiwan, Thailand, USA and Vietnam Customer segments Electronics, Health Care and Other Net sales, MSEK ~2,420 SUPPLY CHAIN SOLUTIONS Our largest operations Mentor Media is an innovative global supply chain service provider delivering solutions in a manner that is sustainable both for custom- ers, other stakeholders and the societies where the company operate. Mentor Media has extensive experience in manufacturing and has developed an offer of comprehensive, high value-added services to help its customers conceive ideas, develop products, build up brand names and enable further growth. Customized supply chain services Mentor Media was founded about 40 years ago in Singapore and was acquired by Elanders in 2014. Since then, Mentor Media has expanded into several geographical markets and customer segments. Mentor Media is today a leading supply chain man- agement solutions provider with presence in Asia-Pacific, the Americas and Europe. Mentor Media designs and implements comprehensive supply chain services that are customized to meet each of its client’s requirements. Our mission is to provide innovative supply chain solutions that are tailored to customers’ needs by investing in people and technology. Mentor Media has also developed strategic alliances with other strong global logistics partners, forging a complete supply chain that delivers directly to channels and end-users. Mentor Media is a partner to some of the world’s leading companies in consumer electronics, communications, computing, medical devices, software and retail. Kok Khoon Lim CEO & President Number of employees ~ 1,000 Geographical presence Canada, Moldova, Netherlands, United Kingdom and USA Customer segments Fashion and Other Net sales, MSEK ~1,940 SUPPLY CHAIN SOLUTIONS Our largest operations Bergen Logistics aspire to be the world’s premier logistics company driving its partners’ success with innovative technical solutions. Bergen has implemented its business model and unique platform in Elanders’ subsidiaries in Europe, Asia and South America. Bergen Logistics is specialized in smaller and mid-sized brands within fashion and other industries and has developed a unique platform enabling the management of a large number of customers in an innovative, agile and efficient way. Bergen Logistics offers global solutions for both multinational fashion customers and customers A leading contract logistics company Bergen Logistics was founded about 20 years ago in the USA and was acquired by Elanders in 2021. In the last few years, the company has evolved rapidly in the USA, Canada and the Netherlands. Today, Bergen Logistics is a leading contract logistics company serving the fashion industry, for example in footwear, handbags, accessories and cosmetics, as well as home goods and supplements. We aspire to be the world’s premier logistics company providing innovative technical solutions that drive our partners’ success. intending to expand into new markets. The company wants to be a natural partner to growth companies looking for a simple way to become established and grow in new markets. Bergen Logistics puts value in continuously updating their systems and processes along with industry changes, consumer demands and tech advancements. Charles Ickes CEO & President Elanders’ Annual and Sustainability Report 2023  Number of employees ~500 Geographical presence United Kingdom Customer segments Health Care, Industrial and Other Net sales, MSEK ~1, 240 * SUPPLY CHAIN SOLUTIONS Our largest operations Kammac has developed a unique concept where the company offers its customers maximum storage flexibility through a network of sites. Several warehouse facilities offer services such as bonded warehouses and temperature-controlled environments. Kammac also has a license Maximum storage flexibility Kammac was founded about 40 years ago in the UK and was acquired by Elanders in 2023. Since the company’s inception, it has expanded nationally and currently has 15 facilities. Kammac is a flexible and reliable contract logistics provider that provides supply chain management services to a wide range of com- panies within, for example, food and beverages and health care. The business model is lean and based on agility. Kammac responds to its partners’ demand by identifying and provid- ing cost-efficient solutions ensuring flexibility, control and, above all, quality and safety. We’re passionate about providing an approach that’s not only fast and flexible, but also sustainable. Ged Carabini CEO & President to handle medical products such as pharmaceuticals and their com- ponents. Kammac’s integrated service offerings suit businesses of all sizes and can be scaled to accommodate short term requirements to complete logistics outsourcing and third-party logistics partnerships. Refers to annual net sales. Kammac was consolidated into the Elanders Group as of November 2023. Number of employees ~1, 30 0 Geographical presence Germany, Hungary, Italy, Poland, United Kingdom and USA Customer segments Automotive, Electronics, Fashion, Health Care, Industrial and Other Net sales, MSEK ~2,630 PRINT & PACKAGING SOLUTIONS Our largest operations Elanders has over 100 years of experience in the graphic industry and currently offers concentrated, cost-efficient and innovative solutions that fulfil customers’ needs, locally as well as globally. Advanced, user-friendly and internet-based ordering platforms have been devel- oped that streamline the process from order to delivery and enable customized just-in-time or sequence deliveries. More than 100 years of graphic experience Elanders Print & Packaging was founded more than 100 years ago in Sweden and today has operations in both Europe and the USA. Through its innovative force and global presence, Elanders Print & Packaging offers cost-effective solutions that can handle customers’ local and global needs for printed material and packaging, often in combination with advanced order platforms online, value- added services and just-in-time deliveries. We are customer-oriented, global and courageous! Sven Burkhard CEO & President Over the last few years, investments have been made in competi- tive digital technology in order to meet customer demand for flexible print production in shorter and smaller series with high quality and at competitive prices. Today Elanders is one of the few global companies offering solutions that include everything from printed matter and packaging to other related services such as kitting and packaging for just-in-time or sequence deliveries worldwide. Elanders’ Annual and Sustainability Report 2023  Board of Directors’ report The Board of Directors and the President and Chief Executive Officer of Elanders AB (publ), corporate identity no 556008-1621, herewith present their annual report and the consoli- dated financial statements for 2023. Board of Directors’ report Elanders AB (publ) is the parent company of the Elanders Group and the company’s B shares are listed on NASDAQ OMX Stockholm, Mid Cap. Elanders AB (publ) is a subsidiary to Carl Bennet AB, corporate identity no 556379-0715, registered in Gothenburg. Carl Bennet AB prepares consolidated financial statements that include Elanders Group. Our business Elanders is a global logistics company offering a broad service range of integrated solutions within supply chain management. The busi- ness is mainly operated through two business areas, Supply Chain Solutions and Print & Packaging Solutions. The Group has almost 8,000 employees and operates in around 20 countries on four conti- nents. The most important markets are China, Singapore, the United Kingdom, Sweden, Germany and the USA. The customers are divided into six segments according to their respective business; Automotive, Electronics, Fashion, Health Care, Industrial and Other. Our offer Elanders helps its customers to more efficiently manage their entire supply chain, everything from raw materials to the product itself. By optimizing customers’ material and component flows, Elanders actively helps its customers to reduce their environmental impact and thus contributes to a more sustainable society. Elanders can take a global total responsibility for the entire supply chain, including pro- curement, warehousing, configuration, production and distribution. Our offer also includes order management, payment solutions and, after sales services for our customers. Our services are provided by business-oriented employees. They use their expertise and our advanced IT solutions to develop our customers’ offers which are often completely dependent on efficient product, component and service flows as well as traceability and information. Net sales and result Net sales decreased by MSEK 1,107 to MSEK 13,867 (14,974) com- pared to last year. Cleared of exchange rate fluctuations, discontinued operations and acquisitions, net sales decreased organically by nine percent. The organic net sales reduction was mainly linked to the business area Supply Chain Solutions and due to normalized freight rates in the Group’s Air & Sea operations. Discontinued opera- tions refer to the closure of some road transportation operations in Germany, which were announced in the fourth quarter 2022, and the Group’s previously buy and sell business in components. Both these businesses have had very low or negative margins. Many Group customers are finding it difficult to maintain volumes or grow at the same pace as before. The market continues to be uncertain in general. Adjusted EBITA, i.e. the operating result adjusted for amortization of assets identified in conjunction with acquisitions and one-off items, amounted to MSEK 927 (966). The adjusted EBITA margin increased from 6.5 to 6.7 percent. Including one-off items, EBITA decreased from MSEK 940 to MSEK 820. There is a certain amount of overca- pacity in both the USA and Europe after the investments made before inflation began to soar. These investments were primarily new and longer leases for more warehouse capacity in the business area Supply Chain Solutions and were decided on when the Group had double- digit growth figures. Overcapacity combined with a weaker demand from some customers in Fashion and Electronics have put some pressure on both profitability and the result. The business area Print & Packaging Solutions presented a better result than last year. This is partly a result of price increases implemented with most customers to compensate for higher energy and material costs, and partly because the supply of materials has stabilized, which increases efficiency in production. One-off items amounted to net MSEK –107 (–26). They were mainly a result of correcting historical errors in the reporting from a subsidiary in the business area Print & Packaging Solutions. These errors were corrected in the first quarter. The remaining part refers to a provision during the second quarter for additional consideration for an acquisition that has developed better than expected and acquisi- tion costs in the fourth quarter. Last year’s one-off items mainly referred to the cost of structural measures in Germany and a positive result from a revaluation of shares in associated companies in connec- tion with a merger during the second quarter. Higher interest expenses, as an effect of current net debt in combi- nation with higher interest rates, continued to have a negative impact on the bottom line compared to last year. At the end of the year, Kammac Ltd. (“Kammac”) was acquired, thereby strengthening Elanders’ market position in contract logistics in the United Kingdom. As a result of the acquisition, the United Kingdom became one of Elanders’ larger markets, which is strategi- cally important since the United Kingdom is one of Europe’s largest logistics markets. The acquisition of Kammac is also a vital step in the Group’s strategy to continually develop the offer, broaden the geographic horizon and improve the EBITA margin. During the past twelve-month period, Kammac had net sales of more than MGBP 90 with very good profitability. The company was consolidated into the Elanders Group as of November 2023. Supply Chain Solutions Net sales decreased by MSEK 882 to 11,385 (12,267) in the business area compared to last year. The reduction in net sales in the business area was a result of discontinued operations and normalized freight  Elanders’ Annual and Sustainability Report 2023 Board of Directors’ report rates in Air & Sea, as well as a weaker market in general. Net sales decreased organically in the business area Supply Chain Solutions by ten percent compared to last year, excluding exchange rate fluctua- tions, discontinued operations and acquisitions. The subscription box operations, which were previously part of business area Print & Packaging Solutions, are as of January 1, 2023, part of Supply Chain Solutions. This has been taken into consideration in the calculation of organic growth. The market outlook continues to be uncertain. In the fourth quarter, weaker demand was seen in all major customer segments and markets. Several customers in Automotive are still struggling with disturbances regarding material and component flows. The closure of the unprofitable parts of road transportation opera- tions in Germany, which was announced in the fourth quarter 2022, was concluded at the end of the second quarter 2023. This business worked primarily with customers in Automotive and Industrial. Adjusted EBITA, i.e. the operating result adjusted for amortization of assets identified in conjunction with acquisitions and one-off items, decreased by MSEK 69 to MSEK 774 (843) compared to last year. At the same time, the adjusted EBITA margin decreased from 6.9 to 6.8 percent. There is a certain amount of overcapacity in both the USA and Europe after the investments made before inflation began to soar. These investments were primarily new and longer leases for more warehouse capacity in the business area Supply Chain Solutions and were decided on when the Group had double-digit growth figures. Overcapacity combined with a weaker demand from some customers in Fashion and Electronics have put some pressure on both profitabil- ity and the result. Included in the result for the year were also one-off items of MSEK –20 (–7) that referred to acquisition costs. Last year’s one-off items were costs for structural measures in Germany and a positive effect resulting from a revaluation of shares in an associated compa- nies in connection with a merger. In November 2023, Kammac was acquired, thereby strengthening Elanders’ market position in contract logistics in the United Kingdom. The acquisition of Kammac is an important step in Elanders’ strategy to constantly grow and develop its offer and broaden its customer base in contract logistics. Kammac has developed a unique concept where they offer maximum storage flexibility to their customers through a network of 15 warehouses in the North West of England. Several of their warehouses offer services such as bonded warehouses and temperature-controlled environments. Kammac is also licensed to handle medical products, such as pharmaceuticals and their compo- nents. During 2023, Elanders has also continued with the roll-out of the Bergen Logistics concept through new facilities in Atlanta, USA, Newcastle, UK and Shenzhen, China. Elanders has also continued its expansion in Health Care and opened new facilities in Indiana, USA and Erfurt, Germany. Print & Packaging Solutions Net sales decreased by MSEK 209 to 2,630 (2,839) in the business area compared to last year. The subscription box operations, which were previously part of the business area Print & Packaging Solutions, are as of January 1, 2023, part of Supply Chain Solutions. Net sales decreased organically in the business area Print & Packaging by three percent compared to last year, considering the above change and exchange rate fluctuations. The prioritized area online print continued to develop positively during the year. Effects could also be seen from price increases that has been made, at the same time as material supplies has been more stable. Excluding one-off items, the business area reported a result for the year that was slightly stronger compared to last year. Adjusted EBITA, i.e. the operating result adjusted for amortization of assets identified in conjunction with acquisitions and one-off items, amount- ed to MSEK 186 (171). At the same time, profitability improved and the adjusted EBITA margin increased from 6.0 to 7.1 percent. The operating result included one-off items of MSEK –87 (–19). They were mainly a result of correcting historical errors in the reporting from a subsidiary in the business area that were corrected during the first quarter and provision for additional consideration for an acquisition that developed better than expected. During the year, work continued on optimizing the business area’s production apparatus. Traditional offset capacity suited for long series is successively being replaced by digital print equipment that provides greater flexibility and is better suited to shorter series. In- vesting in online print is a crucial component in this transition. There is a considerable demand in this area which partially or completely compensates for the dwindling demand for more traditional printed matter. The work to convert some of the existing printing operations to also offer supply chain management services is also continuing, and during the year Elanders’ printing operations in the UK added a supply chain unit. Significant events during the year Historical errors in the USA Elanders has had historical errors in the reporting from one of its subsidiaries. This was attributable to the operations in Atlanta, USA, which belongs to the business area Print & Packaging Solutions. The errors amounted to MSEK –67 and the operating result for the first quarter of 2023 was charged with the corresponding amount. Half of the effect related to year 2022 and the remainder to the years 2019–2021. This will not have a negative impact on future cash flows. Elanders’ Annual and Sustainability Report 2023  Board of Directors’ report Structural measures in Germany As communicated in 2022, parts of the Group’s road transport operations in Germany have been discontinued. The business was part of the business area Supply Chain Solutions and had profitabil- ity problems for a long time. At the end of the second quarter 2023, the closure was fully concluded. As a result of this closure, sales will decrease by MSEK 400 on an annual basis. The war in Ukraine and its consequences Russia invaded Ukraine in February 2022. Some of the Group’s customers have subcontractors in Ukraine and Russia. These custom- ers have therefore experienced problems with their supply chain. In the wake of the war, inflation has increased sharply and an energy crisis has emerged. There is still uncertainty about how long this will last and the extent of it. It is thus difficult to predict the exact impact going forward. Increased sanctions and an increased scope of the war could have a significant impact on the Group’s operations. Semiconductor and material shortages The semiconductor and raw material shortage that has existed in some industries has had a negative impact on the Group’s business in recent years. The shortage has at times created uneven capacity utilization in production when shift patterns have changed on short notice. Acquisitions Kammac Ltd In November 2023, Elanders acquired all the shares in Kammac Ltd (“Kammac”). Kammac is a fast-growing company that in the last twelve-month period had net sales of more than MGBP 90 with very good profitability. Kammac is part of the business area Supply Chain Solutions and was consolidated into the Group per November 2023. The initial valuation, including the additional consideration, amounts to just over MGBP 100 on a cash- and debt-free basis, of which around two thirds affect cash flow negatively in the fourth quarter 2023. The additional consideration will be paid during the second quarter 2025 and is based on the outcome of 2024. The acquisition-related costs were around MSEK 20. Investments and depreciation Net investments for the year amounted to MSEK 1,012 (274), of which purchase prices for acquisitions were MSEK 832 (44). Deprecia- tion and write downs amounted to MSEK 1,243 (1,091). Financial position, cash flow and financing Excluding purchase prices for acquisitions, the operating cash flow increased to MSEK 2,170 (1,254), mainly due to a decrease in tied up working capital this year compared with an increase in tied up work- ing capital in the previous year. Including acquisitions, the operating cash flow for the period increased to MSEK 1,338 (1,210). Net debt also includes liabilities connected to put and call options measured at fair value, as well as additional considerations. Net debt increased by MSEK 915 to MSEK 8,191 compared to MSEK 7,276 at the beginning of the year. Of the increase in net debt, MSEK 1,004 consisted of acquired net debt and additional considerations. The change also included a decrease of MSEK 151 attributable to ex- change rate fluctuations. On a rolling twelve-month period, the net debt/EBITDA ratio increased to 4.2 compared to 3.7 at the beginning of the year. This change was mainly due to an increase in net debt attributable to the purchase price of Kammac, which was acquired late in 2023. Excluding effects from IFRS 16, net debt increased to MSEK 3,655 compared to MSEK 3,022 at the beginning of the year. The increase was mainly due to the acquisition of Kammac, which took place late in 2023 and increased net debt by MSEK 1,192. Changes in exchange rates reduced net debt by MSEK 93. Reduced working capital decreased net debt by MSEK 362 during the year. Excluding IFRS 16 effects, the net debt/EBITDA ratio was 2.8 (2.7) on a rolling twelve- month basis, excluding one-off items and adjusted for proforma results for acquisitions. The credit facility agreement with the Group’s main banks has been renewed and a cooperation has been initiated with SEK, the Swedish Export Credit Corporation. The new agreement includes the possibility of an acquisition loan of GBP 115 million to finance the acquisition of Bishopsgate and Kammac. At the same time, the revolving credit facility has also been increased by EUR 20 million. The renewed agreement runs until July 2026. The Group’s credit agreements contain financial covenants that must be met to secure the financing. The most important covenant is the net debt/EBITDA ratio that is calculated excluding IFRS 16 effects but adjusted for proforma results in acquisitions and excluding one-off items. This financial covenant was met by a good margin per the balance sheet date. Several central banks have kept their interest rates at a high level, which will result in continued high interest costs going forward, as the Group’s financing is largely based on variable interest rates. Research and development The Group continuously develops different offers that are usually produced in connection with specific customer projects. Continuous development of order platforms takes place in our e-commerce busi- ness where costs for most of the work are recognized as they occur. Personnel The average number of employees during the year was 7,203 (7,248), whereof 164 (167) in Sweden. At the end of the year the Group had 7,474 (7,245) employees, whereof 166 (176) in Sweden. Further information concerning the number of employees, as well as salaries, remuneration, and terms of employment is presented in note 5 of the consolidated financial statements. Parent company The parent company has provided intragroup services. The average number of employees during the year was 14 (13) and at the end of the year 14 (13). Other information concerning the number of employees, salaries, remuneration, and conditions of employment is presented in note 5 of the consolidated financial statements. Information concerning company shares On 31 December 2023, there were 1,814,813 registered Class A shares and 33,542,938 registered Class B shares; in total 35,357,751 shares. The Class B shares are listed under the symbol ELAN B on NASDAQ OMX Stockholm, Mid Cap. Each Class A share represents ten votes, and each Class B share represents one vote. Shareholders may vote for all the shares they own or represent. All shares receive the same dividend. The Annual General Meeting has not given the Board any authority to purchase shares or issue shares. There are no bonus programs with dilution effects.  Elanders’ Annual and Sustainability Report 2023 Board of Directors’ report Transferability There are no restrictions in Class B shares transferability according to the articles of association or current legislation. The articles of association do contain a pre-emption clause concerning the com- pany’s Class A shares. The company knows of no other agreements between shareholders that limit the transferability of the shares. Shareholdings The only direct or indirect shareholding exceeding a tenth of the votes in the company per 31 December 2023 was Carl Bennet AB with 66 (66) percent. No shares are owned by personnel through pension foundations or similar. Contracts with clauses regarding ownership changes The company has certain customer contracts and bank agreements that can be terminated if there is a change in ownership. There are no contracts between the company and Board members or employees that prescribe remuneration if they terminate their contract, are made redundant without reasonable grounds or if their employment or assignment ceases to exist because of a public purchase offer. Guidelines for remuneration to senior officers The company’s current guidelines for remuneration to senior officers was adopted at the Annual General Meeting on April 21, 2022. The guidelines are as follows: Senior officers are persons who, together with the Chief Executive Officer, constitute Group Management. The guidelines are valid for employment contracts signed after the Annual General Meeting has adopted the guidelines as well as those cases in which changes are made in existing agreements after the decision by the Annual General Meeting. The guidelines’ promotion of the company’s business strat- egy, long-term interests and sustainability Elanders shall be a global and strategic partner to the customers in their business-critical processes. By offering integrated and customized solutions for handling all or part of the customers’ supply chain, the business-critical processes may be optimized. The overriding goal is to be a leader in global and sustainable overall solutions within supply chain management and to best serve the customers’ requirements on efficiency and delivery, prioritizing sustainability. The strategy is to act within niche areas in each marketing area where the Group may achieve a market-leading position. In order to fulfill the long-term financial goals, and to achieve value growth and increase shareholder return over time, Elanders continually develops its offer to the cus- tomers. With new and improved services, total integrated solutions, and implementation of innovative technology, a good platform for continuous growth and development, as well as greater value for shareholders is created. A prerequisite for the successful implementation of the company’s business strategy and safeguarding of its long-term interests, includ- ing its sustainability, is that the company is able to recruit and retain qualified personnel. To this end, it is necessary that the company offers competitive total remuneration, enabled by these guidelines. Variable cash remuneration covered by these guidelines shall aim at promoting the company’s business strategy and long-term interests, including its sustainability. Types of remuneration The remuneration shall be on market terms and may consist of the following components: fixed cash salary (basic wage), variable cash remuneration, pension benefits, and other benefits. Additionally, the general meeting, may irrespective of these guidelines, resolve on, among other things, share-related or share price-related remunera- tion. For the CEO and the CFO, variable cash remuneration may amount to, at most, 70 respectively 50 percent of the basic wage. For other executives, variable cash remuneration may amount to, at most, 40 percent of the basic wage. Additional variable cash remuneration, however not more than 100 percent of the basic wage, may excep- tionally be awarded after resolution by the Board of Directors, for the purpose of recruiting or retaining executives in light of local market conditions. For the CEO, pension benefits, including health insurance (Sw. sjukförsäkring), shall be premium defined. Variable cash remu- neration shall not qualify for pension benefits. The pension premiums for premium defined pension shall amount to, at most, 35 percent of the fixed annual cash salary. For other executives, pension benefits, including health insurance, shall be premium defined unless the individual concerned is subject to defined benefit pension under mandatory collective agreement provi- sions. Variable cash remuneration shall qualify for pension benefits to the extent required by mandatory collective agreement provisions. The pension premiums for premium defined pension shall amount to, at most, 35 percent of the fixed annual cash salary. Other benefits may include, for example, company cars and industrial health services (Sw. företagshälsovård). Such benefits may, in total, amount to a minor proportion of the total remuneration. Termination of employment The notice period may not exceed 18 months if notice of termination of employment is made by the company. Fixed cash salary during the period of notice and severance pay may together not exceed an amount equivalent to the cash salary for 18 months as regards the CEO and 12 months for other executives. The period of notice may not exceed six months, without any right to severance pay, when termination is made by the executive. Criteria for awarding variable cash remuneration The variable cash remuneration shall be linked to predetermined and measurable criteria, which can be financial or non-financial. They may also be individualized, quantitative or qualitative objectives. The criteria shall be designed to contribute to the company’s business strategy and long-term interests, including its sustainability by, for example, being clearly linked to the business strategy or promote the executive’s long-term development. To which extent the criteria for awarding variable cash remuneration has been satisfied shall be evaluated when the measurement period has ended (normally calendar year). The remuneration committee is responsible for the evaluation so far it concerns variable cash remuneration to the CEO. For variable cash remuneration to other executives, the CEO is responsible for the evaluation. For financial objectives, the evaluation shall be based on the latest financial information made public by the company. Elanders’ Annual and Sustainability Report 2023  Board of Directors’ report Salary and employment conditions for employees In the preparation of the Board of Directors’ proposal to these remuneration guidelines, salary and employment conditions for all employees of the company have been taken into account by includ- ing information on the employees’ total income, the components of the remuneration as well as increase and growth rate over time. This information has then formed a basis for the remuneration committee’s and the Board of Directors’ evaluation of whether these guidelines and the limitations set out herein are reasonable. The decision-making process to determine, review and implement the guidelines The Board of Directors has established a remuneration committee. The committee’s tasks include preparing the Board of Directors’ deci- sion to propose guidelines for executive remuneration. The Board of Directors shall prepare a proposal for new guidelines at least every fourth year and submit it to the annual general meeting. The guide- lines shall be in force until new guidelines are adopted by the general meeting. The remuneration committee shall also monitor and evalu- ate programs for variable remuneration to the executive management, the application of the guidelines for executive remuneration, as well as the current remuneration structures and compensation levels in the company. The members of the remuneration committee are indepen- dent of the company and its executive management. The CEO and other members of the executive management do not participate in the Board of Directors’ processing of and resolutions regarding remuner- ation-related matters in so far as they are affected by such matters. Derogation from the guidelines The Board of Directors may temporarily resolve to derogate from the guidelines, in whole or in part, if in a specific case there is a special cause for the derogation and a derogation is necessary to serve the company’s long-term interests, including its sustainability, or to ensure the company’s financial viability. As set out above, the remu- neration committee’s tasks include preparing the Board of Directors’ resolutions in remuneration-related matters. This includes any resolu- tions to derogate from the guidelines. In 2023, the Board of Directors approved that variable remuneration to an executive resident abroad could exceed the stipulated 40 percent of the basic wage. The reason is that the Board of Directors has deemed such derogation to be nec- essary in order to offer the executive competitive total remuneration in light of local market conditions. Outlook Despite the fact that the market outlook going forward remains uncer- tain and weaker demand is seen in all major customer segments and markets, Elanders continues to have a strong position among its global customers where there is substantial potential for expansion both short and long term. Elanders’ market position and global outreach is therefore in sync with the times. The customer diversification Elanders has carried out in recent years ought to make the Group less sensitive to ups and downs in the busi- ness cycle going forward. Events after the balance sheet date In February 2024, Elanders acquired almost 90% of the shares in the English company Bishopsgate Newco Ltd (“Bishopsgate”). The company is a leading actor in the UK in special transportation, instal- lation, and configuration of advanced technical equipment. Bishops- gate has around 250 employees and had sales of MGBP 27 during the last twelve months with very good profitability. The purchase price for the shares amounts to MGBP 42 on a cash- and debt-free basis, and will be charged to cash flow during the first quarter of 2024. The company will be consolidated in the Elanders Group as of February 2024. The acquisition of Bishopsgate is in line with Elanders’ strategy to grow in Life Cycle Management. Bishopsgate is a leading player in the UK in specialist transport, installation and configuration of medi- cal devices, office printers, data centres, parcel lockers and charging stations for electric vehicles. The financing consists in part by an acquisition loan of MGBP 115 from the Group’s three main banks in cooperation with SEK, the Swedish Export Credit Corporation. This loan will also finance parts of Elanders’ acquisition of Kammac. The acquisition-related costs for advisors etcetera are estimated to approximately MSEK 20. With the acquisitions of Kammac and Bishopsgate, Elanders has gained a completely different platform in the United Kingdom, which after these acquisitions will become Elanders’ third largest market. Apart from what has been presented above and in this report in general, no other significant events have occurred after the balance sheet date up to the date of signature of this report. Appropriation of profits The Board of Directors and Chief Executive Officer propose that the profit and other unreserved funds of SEK 1,311,550,200 in the parent company at the disposition of the Annual General Meeting should be dealt with accordingly: • SEK 4.15 per share is distributed to the shareholders SEK 146,734,667 • the remaining balance is to be carried forward SEK 1,164,815,533 The Board of Directors believes that the proposed dividends are justifiable in relation to the demands that the business’ nature, scope, and risks make on group equity and the Group’s consolidation needs, liquidity, and its position in general.  Elanders’ Annual and Sustainability Report 2023 Board of Directors’ report – Sustainability reporting in accordance with the Annual Accounts Act For Elanders, sustainability is an integrated part of the Group’s busi- ness and decision-making. Elanders’ Sustainability Report for the calendar year 2023 is part of the Group’s combined Annual Report. It chronicles the details in Elanders’ strategic sustainability work and the progress that has been made during the year. Elanders sees oppor- tunities in working actively with sustainability to create value for the company, as well as its stakeholders, and at the same time improve profitability. The governance of the sustainability agenda is established in Elanders’ Board of Directors and Group Management and is described in more detail on page 117. To ensure that sustainability work permeates governance of all subsidiaries, in addition to Group Management, Elanders has three group-wide councils in IT, social sustainability and environment and climate. The councils are responsible for dissemi- nating information and ensuring the implementation of Elanders’ sustainability strategy. The management of significant risks in the sustainability area is part of the Group’s overall work with identifying and handling risks. The process, identified risks and the management of these risks are described in the Board of Directors’ report. For the financial year 2023, companies are required to report the portion of the sales, operating costs and investments covered by the EU Sustainable Finance Taxonomy. The outcome of Elanders’ review is presented on pages 134-135. In accordance with the Swedish Annual Accounts Act Chapter 6, Section 11, Elanders has produced a combined Annual Report and Sustainability Report 2023. This report relates to Elanders AB (publ) and its subsidiaries. The Sustainability Report was submitted to the auditor at the same time as the Annual Report and is presented on page 114-135 and divided by area according to the table below. Sustainability reporting in accordance with the Annual Accounts Act Area General Environment Social Governance Policies 114 119 124 125 Descriptions 115–118 120–123 124 126 Notes to the Sustainability Report 128 128–130 131–132 – Elanders’ Annual and Sustainability Report 2023  Board of Directors’ report – Risks and uncertainty factors Elanders operates in many different customer segments and geographical areas. A general economic downturn on a global scale or in one of the world’s leading economies can reduce the demand for the Group’s offers and services. Essential risks and uncertainty factors Business risk Elanders encounters risks in operations daily, and normally these are within the Group’s control. Group Management’s close collaboration with the different group operations is a key factor in controlling these risks. Circumstantial risk The external factors that have and may have the greatest impact on Elanders operations are the global economy, war and conflicts, pan- demics and the increasing demands in a changing world. Since these factors are outside of Elanders’ control the Group continuously work to adjust operations to meet the new conditions. Elanders divides risks into business risks (customer concentration, operational risk, risks in operating expenses, contracts and disputes and employees), financial risks (currency, interest, financing/liquidity and credit risk) as well as circumstantial risks (business cycle sensitiv- ity, wars and conflicts, pandemics and increased demands in a chang- ing world). For more information regarding the financial risks, please see note 24 in the consolidated financial statements.  Elanders’ Annual and Sustainability Report 2023 The Group strives to offer a modern, stimulating and safe working environment. This is done through good leadership characterized by transparency and respect for each other. Board of Directors’ report – Risks and uncertainty factors Read more on page 48: Business risk/What Elanders does/Employees. → Customer concentration Elanders’ strategy is not only to be a supplier to our larger custom- ers but to be a strategic partner who builds the basis for long-term business relations. Elanders has worked together with several of the Group’s largest customers for many years. Operational risk Elanders works to identify and prevent risks that can lead to distur- bances in production. The work involves regular controls of the pro- duction sites where identified areas of improvement are addressed with action plans. The Group has business interruption insurance that covers the loss of margins for up to twelve months. Elanders also works continuously to ensure processes for monitoring and control regarding IT security in order to respond to increased threats to cyber security. Additionally, in 2023 Elanders has increased the number of training sessions within IT security to increase employees’ awareness. Risks in operating expenses Elanders sees no direct risk that these costs will increase in the near future to such a degree that it would have a significant effect on group results. Elanders also has the possibility to within some agree- ments pass on increased costs to the customer. Contracts and disputes Elanders is not aware of any dispute that could have a significant effect on the Group’s financial position. The Group’s insurance program contains global liability insurance that covers general liability, product liability, crime fidelity, business interruption and limited protection against environmental damage. The Group also has liability insurance for members of the Board and senior officers. Employees Elanders works to be an attractive employer. The Group strives to offer a modern, stimulating and safe working environment. This is done through good leadership characterized by transparency and respect for each other. Elanders also strives to be at the forefront regarding issues relating to environmental and social sustainability, as an important factor to attract the new generation of employees. What Elanders does Essential risks and uncertainty factors Customer concentration The Group’s major customers are primarily active in the manufactur- ing industry and agreements with these customers normally run over two or three years. Elanders’ ten largest customers represented 45 (46) percent of the total net sales in 2023. Elanders has one customer whose sales exceed 10 percent of the Group’s net sales. In 2023, sales to the Group’s largest customer amounted to 17 (14) percent while sales to the next largest customer amounted to 9 (12) percent of the total net sales. Sales to these customers are made to several of their divisions, on several continents and is based on multiple stand- alone agreements. Operational risk Elanders is dependent on IT-systems for production, logistics and sales. Disruptions or cyberattacks on the systems can mean disturbances and have a negative impact on the Group’s reputation, profitability and financial position. Otherwise, the risk that the Group will suffer a major stop in production is relatively small. There are no considerable interdependencies neither between the units within the respective business area nor between the business areas. There are only a few cases where there are no alternative suppliers of critical input goods. Risks in operating expenses Elanders’ main operating costs are cost for goods for resale and other production material MSEK 2,688 (3,342), personnel costs MSEK 3,993 (3,583) and freight costs MSEK 2,443 (3,522). These accounted for 69 (73) percent of total operating costs in 2023. Contracts and disputes In business daily operations can give rise to disputes. Employees Elanders needs access to competent and committed employees. Competition in the labor market is fierce, and there are high demands on the companies’ ability to attract, develop and retain compe- tence as well as to ensure the availability of good leaders in order to achieve the Group’s operational and strategic goals. To live up to today’s expectations from employees requires a strong focus on areas such as leadership, opportunities for influence, work environment, sustainability, human rights and company culture. Business risk Board of Directors’ report – Risks and uncertainty factors Elanders’ Annual and Sustainability Report 2023  Essential risks and uncertainty factors What Elanders does Business cycle sensitivity The most tangible business cycle sensitivity is in group operations that supply our customers in the manufacturing industry, particularly in automotive and consumer electronics. Sales to customers in foods, cosmetics, medical devices, pharmaceuticals and the public sector as well as to consumers are less affected by the general economic situation. Wars and conflicts Wars, conflicts and other political unrest can have a devastating effect on the world around us. When it occurs in areas the Group or our customers and suppliers operate in, it also has a direct impact on Elanders’ operations. The Group has been affected in many ways since Russia invaded Ukraine in February 2022. Some of the Group’s customers have subcontractors in Ukraine and Russia. These custom- ers have therefore started to have some problems with their supply chain. At the same time, inflation has gone up and energy prices increased. There are several ongoing conflicts and a great deal of uncertainty in the world right now. It is difficult to predict the exact impact going forward. Increased scope of new or existing conflicts could have a significant impact on the Group’s operations. Pandemics Global outbreaks of pandemics, such as the COVID-19 pandemic, can bring widespread disruptions locally as well as globally. Should COVID-19 continue or if a new pandemic would occur, there is a risk that the Group’s operations will be negatively affected as demand for the Group’s services and products may decrease. Possible crisis measures and infection control restrictions implemented in different countries could also affect the Group’s operations. Increased demands in a changing world Climate change carries a range of risks. The public expects to see an accelerations of climate transition as well as adaptations to minimize negative effects. The need for drastically reduced emissions and transparency of companies’ negative impact on the environment is driving new regulations in regions where Elanders operates. Custom- ers may demand new types of logistics solutions. Increased demands to quickly adapt to new technologies create increased needs for investments and financial resources to carry out shifts and phase out old technology. Business cycle sensitivity The Group work consciously to reduce the negative influence of busi- ness cycles by increasing sales to customers in less sensitive trades and customer groups as well as by increasing the geographic spread of sales. The expansions in supply chain management rarely involve significant investments in fixed assets and lease agreements are signed to match the customer contracts. A large part of the running costs in new projects are variable and can be adjusted in case of volume changes. Wars and conflicts The political unrest in general also affect the Group in the long term in how and where Elanders choose to do business. The Group currently has no operations in Russia or Ukraine. Elanders follows the situation in the world and works with measures for possible scenarios that may arise. Various parts of the Group help with humanitarian support on the ground in Europe, both for the employees affected and the refugee wave that is expected to continue. Pandemics In the event of a pandemic, Elanders’ main priority is to protect our employees and their surroundings to the highest extent possible against the spread of infection. Measures will be taken to ensure that guidelines and recommendations of national authorities are followed. To soften any effects of lower demand, a close dialogue with our customers and other partners is of utmost importance. To a certain extent Elanders can adapt operations to changes in demand through furloughs, fewer temps and by implementing cost savings. Increased demands in a changing world Elanders is part of the development and maintains a continuous dialogue with customers and other stakeholders. Possibilities to fully switch to fossil-free energy and incorporate new technology solutions are continuously evaluated. Generated positive cash flows going forward create the conditions needed for investment in new technology. Should additional funding be required, discussion will be held with shareholders or other exter- nal financiers. Circumstantial risk Board of Directors’ report – Risks and uncertainty factors  Elanders’ Annual and Sustainability Report 2023 Elanders’ Annual and Sustainability Report 2023  This Corporate governance report, a part of the Board of Directors’ report in the Annual Report, describes Elanders’ corporate governance, which comprise the management and the administration of the company operations as well as internal control over financial reporting. vote. Class A shares and Class B shares have the same right to a share of company assets and profit. At the Annual General Meeting each person with voting rights is entitled to vote for their entire holding or represented holding without restrictions. Elanders’ Class A shares are included in pre-emption as stated in the articles of association. The Annual General Meeting decides on changes in the articles of association, chooses a Chairman, the Board and external audi- tors, adopts the annual accounts, decides on dividends, if any, and any other disposition of the result as well as discharges the Board from liability. Furthermore, the Annual General Meeting decides on The role of corporate governance in Elanders is to create a good foundation for active and responsible ownership, a suitable distribu- tion of responsibility between the different company bodies as well as good communication with all of the company’s interested parties. Swedish Code of Corporate Governance Elanders follows the Swedish Code of Corporate Governance (“the Code”) and this Corporate Governance Report has been prepared in accordance with the Code and the Swedish Annual Accounts Act. Elanders have also provided information on the company’s website in line with the Code requirements. The Code is available at the website of the Swedish Corporate Governance Board, www.corporategovernanceboard.se. Corporate governance in Elanders – a brief overview Corporate governance in Elanders is based on legal requirements (primarily the Companies Act), accounting regulations, the articles of association, NASDAQ OMX Stockholm’s issuer rules, internal regulations, policies, and the Code. The Elanders Group’s corporate governance, management and control are shared by the shareholders at the Annual General Meeting, the Board of Directors, and the Chief Executive Officer in accordance with the Companies Act, the articles of association as well as the Group Management. Shareholders appoint the company’s nomination committee, Board and external auditors at the Annual General Meeting. Shareholders On 31 December 2023, there were 4,628 (4,622) known share- holders. The foreign ownership in Elanders was 8 (12) percent of shares and 5 (6) percent of votes. The only direct or indirect shareholding exceeding a tenth of the votes in the company per 31 December 2023 was Carl Bennet AB with 66 (66) percent. No shares are owned by personnel through pension foundations or the like. Annual General Meeting Shareholders execute their influence at the Annual General Meeting, the company’s highest decision-making body. All shareholders in the share register that have declared their intention to participate in the Annual General Meeting within the stated time limit have the right to participate in the Meeting. Shareholders that cannot participate in person can elect a representative. At the Annual General Meeting a Class A share represents ten votes and a Class B share represents one Corporate governance report Annual General Meeting  The Annual General Meeting on 21 April 2023 decided: • to adopt the Annual Report for 2022, • to distribute a dividend of SEK 4.15 per share for 2022, • to discharge the members of the Board of Directors and the Chief Executive Officer from liability for 2022, • to grant according to a proposal in the summons the Board and committee remuneration for a total of SEK 4,318,020 to be divided within the Board, • to appoint the following Board Members: – Carl Bennet (re-elected) – Ulrika Dellby (new-elected) – Eva Elmstedt (re-elected) – Dan Frohm (re-elected) – Erik Gabrielson (re-elected) – Anna Hallberg (new-elected) – Anne Lenerius (re-elected) – Magnus Nilsson (CEO) (re-elected) – Johan Trouvé (new-elected) • to appoint Dan Frohm Chairman of the Board, • to elect PricewaterhouseCoopers as company auditors until the Annual General Meeting 2024, • that the Nomination Committee prior to the next Annual General Meeting shall be formed and fulfill tasks in accordance with the proposal in the notice, and • to approve the remuneration report submitted by the Board regarding remuneration to leading senior officers. Board of Directors’ report – Corporate governance report  Elanders’ Annual and Sustainability Report 2023 Elanders’ corporate governance Remuneration Committee Audit Committee Elanders’ Shareholders Annual General Meeting Nomination Committee External Auditors Board of Directors Chief Executive Officer Group Management guidelines for salaries and other remuneration for leading senior of- ficers, any new share issue, and the manner in which the nomination committee is to be elected. Any shareholder with a matter they would like the Annual General Meeting to deal with should present their proposal to the Chairman of the Board or present any nomination proposal to the nomination committee. Minutes from Elanders’ An- nual General Meetings can be downloaded from www.elanders.com under Corporate Governance. Annual General Meeting 2024 The next Annual General Meeting for shareholders in Elanders will be held on Friday 19 April, 2024. More information will be published in connection with the notice convening of the Annual General Meeting and will also be published on www.elanders.com. Nomination committee The nomination committee prepares proposals for the Annual General Meeting concerning the election of, and remuneration to, Board of Directors’ report – Corporate governance report Elanders’ Annual and Sustainability Report 2023  the Chairman of the Board, Board members, committee members, and external auditors, the latter having been proposed by the audit committee. The nomination committee meets as needed and at least once a year. The nomination committee met twice last year and dis- cussed the work of the Board, the independence of Board members, Board members’ evaluation of the work of the Board, the work of the committees, the audit and the composition of the nomination committee. This year the committee has consisted of Carl Bennet, Chairman (Carl Bennet AB), Dan Frohm (Chairman of the Board), Johan Ståhl (Svolder AB), Jannis Kitsakis (Fjärde AP-fonden) and Dag Marius Nereng (Protector Forsikring ASA). The shareholder with the largest number of votes has been elected as the chairman of the nomination committee since he ought to have a decisive influence on the composition of the nomination committee, because he has a ma- jority of the votes at the Annual General Meeting. No remuneration has been paid to the nomination committee. The members’ contact information is found on page 149 in the Annual Report and on www.elanders.com under Corporate Governance. The Board of Directors and its work in 2023 The Board is elected by the Annual General Meeting and proposed by the nomination committee. The Board is ultimately responsible for the management of the company, monitoring the work of the Chief Executive Officer, and continuously following developments in opera- tions as well as the reliability of the company’s internal control. The Board also decides on significant changes in the organization, invest- ments and divestitures, adopts strategies and goals, and approves the budget and annual accounts. The Board is ultimately responsible for ensuring that the Group has adequate systems for internal control, that the accounts are prepared, and that they are reliable when published. The Group and its management have several methods to control the risks connected to operations. The Board supports Group Management by continually monitoring and identifying business risks in a structured manner as well as steering the work in the Group in how it handles the most significant risks. In conclusion this consti- tutes the Board’s responsibility for corporate governance. Elanders Board members are evaluated and appointed based on the company’s business, development phase and other relevant circumstances. The diversity of education, knowledge, and experi- ence as well as age and gender represented in the Board is also taken into account. When considering the election and re-election of Board members these factors have been used to make the Board as diverse and efficient as possible. In accordance with Elanders’ articles of association the Board of Directors should consist of at least three and no more than ten mem- bers with a maximum of two deputies. During the year the Board consisted of nine members without deputies: Dan Frohm (Chairman), Carl Bennet (Vice Chairman), Ulrika Dellby, Eva Elmstedt, Erik Ga- brielson, Anna Hallberg, Anne Lenerius, Magnus Nilsson and Johan Trouvé. In addition, employees were represented by Martin Schubach and Irene Planting with Johan Lidbrink as deputy. All the members of the Board elected by the Annual General Meeting have an inde- Board of Directors’ report – Corporate governance report Members of the Board, remuneration, attendance, etc. Member Board, attendance (number of meetings) Remuneration Committee, attendance (number of meetings) Audit Committee, attendance (number of meetings) Total atten- dance, % Remuneration Board + Committee work, SEK ’000s Share- holding 1) Independent Members chosen by the AGM Dan Frohm, Chairman 11 (11) 1 (1) Not member 100 811 + 85 30,283 B No, owner Carl Bennet, Vice Chairman 11 (11) 1 (1) Not member 100 406 + 42 1,814,813 A 15,903,596 B No, owner Ulrika Dellby 7 (7) Not member 2 (2) 100 406 + 83 1,950 B Yes Eva Elmstedt 11 (11) Not member 3 (3) 100 406 + 166 8,000 B Yes Erik Gabrielson 11 (11) 1 (1) Not member 100 406 + 42 – No, owner Anna Hallberg 7 (7) Not member 2 (2) 100 406 + 83 6,000 B Yes Cecilia Lager 4 (4) Not member 1 (1) 100 – – Yes Anne Lenerius 11 (11) Not member 3 (3) 100 406 + 83 6,892 B Yes Magnus Nilsson, CEO 11 (11) Not member Not member 100 Employee 88,577 B No, company Johan Stern 3 (4) 1 (1) Not member 75 – – No, owner Caroline Sundewall 4 (4) Not member 1 (1) 100 – – Yes Johan Trouvé 6 (7) Not member 2 (2) 86 406 + 83 100 B Yes Employee representatives Martin Afzelius 2 (2) Not member Not member 100 Employee – No, company Irene Planting 7 (9) Not member Not member 78 Employee 12 B No, company Martin Schubach 11 (11) Not member Not member 100 Employee 267 B No, company Johan Lidbrink 9 (9) Not member Not member 100 Employee – No, company Total 98 4,318 1) Shareholding as of December 31, 2023. The number of shares is only stated for the people who were in the Board of Directors at this time.  Elanders’ Annual and Sustainability Report 2023 pendent relationship to the company except Magnus Nilsson. Ulrika Dellby, Eva Elmstedt, Anna Hallberg, Anne Lenerius and Johan Trouvé are independent in relationship to the company’s largest owner. Carl Bennet is dependent with regards to the shareholder Carl Bennet AB where he is Chairman of the Board and owner. Dan Frohm and Erik Gabrielson are also dependent in relation to Carl Bennet AB where Dan Frohm and Erik Gabrielson are members of the Board. The Board has produced and adopted a work plan that regulates the division of responsibility between the Board, its Chairman and the Chief Executive Officer. It also includes a general meeting plan and instructions on financial reports as well as the other matters that must be put before the Board. The work plan is revised once a year or as needed. The Board has seven ordinary meetings per year; four of them in conjunction with the year-end report and quarterly reports, one meeting dedicated to strategic matters, one meeting to adopt the coming year’s budget and one constitutional meeting following the Annual General Meeting. In addition, the Board is called to further meetings as needed. The Group’s external auditors participate in the meeting that deals with the report for the first nine months of the year as well as the meeting regarding the year-end report to inform the Board in its entirety about the result of their audit. The Board followed the meeting plan for the year. The Board also met on four occasions relating to other topics. At the constitutional meeting of the Board, the work plan and instructions for the Chief Executive Officer are reviewed and the customary decisions concerning authorized signatories are taken. In addition, the work plans for the remuneration and audit committees are adopted and their members appointed. At the constitutional meet- ing of the Board after the Annual General Meeting 2023, Carl Bennet was made Vice Chairman. The Board in its entirety was authorized to sign for the company or one of the Chairman of the Board and the Chief Executive Officer, respectively. At the meeting concerning the year-end report, the Board met the auditors without the presence of the Chief Executive Officer or any other member from Group Management. The Board travels as often as possible to visit and hold its meetings in one of the Group’s subsidiaries. The Board members’ remuneration and presence are presented in detail in the table on the previous page. Further information about the Board and the members can be found on pages 146–147. The Chairman of the Board The Chairman leads and organizes the Board and is responsible for making sure the Board meets its responsibilities and that the members receive the information necessary to ensure the work done by the Board is of high quality and performed according to legal stipulations and the contract with the stock exchange. The Chairman of the Board must also make sure that during the year an evaluation of the Board’s work is carried out and that the nomination committee is informed of the results. The evaluation is carried out annually in the form of a questionnaire and encompasses the Board’s composition, remunera- tion, materials, administration, work methods, meeting content, reports from the committees, and education. In addition, the Chair- man of the Board represents the company in ownership matters and communicates viewpoints from the owners to the Board. The Chairman of the Board is elected by the Annual General Meeting. Dan Frohm has been a board member of Elanders AB since 2017 and was elected Chairman of the Board at the Annual General Meeting in 2022. Remuneration committee The remuneration committee is composed of Board members with the highest competence in this field. It deals with matters concern- ing remuneration to the Chief Executive Officer and officers that report directly to him. Decisions concerning remuneration to other employees in management positions in the Group are made by each individual’s closest superior in consultation with their closest superior, also known as the “grandfather principle”. During the year, the remu- neration committee held one meeting during which they adopted their work plan and prepared a proposal for remuneration. During the year the remuneration committee consisted of Dan Frohm, Chairman, Carl Bennet, Erik Gabrielson and Johan Stern. The guidelines for remuner- ation to senior officers adopted at the Annual General Meeting 2022 can be found in note 5 in the consolidated financial statements and on the company’s website, www.elanders.com under Corporate Gover- nance. The guidelines for remuneration to senior officers can also be found on pages 43–44 in this Annual Report. The company has not issued, and will not issue, any share-based payment obligation, or any similar incitement programs. Audit committee The audit committee is appointed from within the Board based on members’ experience of, and expertise in financial reporting, accounting, and internal control. The committee follows a work plan adopted by the Board. Its primary task is monitoring internal control, procedures for financial reporting, compliance of related laws and regulations as well as the external audit in the Group. The committee also evaluates the external auditors’ qualifications and independence. The audit committee reports their observations on a regular basis to the Board and provides, as needed, external auditor candidates to the nomination committee. The committee meets at least three times a year and as needed. The external auditors normally participate in committee meetings. The committee met three times in 2023. The auditors reported on the audit of the nine-month report, and the year-end report, the company’s situation with the Code of Corporate Governance and internal control were discussed. The members of the audit committee were Eva Elmstedt, Chairman, Ulrika Dellby, Anna Hallberg, Anne Lenerius and Johan Trouvé. Chief Executive Officer The Chief Executive Officer is the President of the Group, a member of the Board, and leads the Group’s operations. The Chief Executive Officer’s work is steered by the Companies Act, other laws and regulations, current laws for listed companies including the Code, the articles of association, and the framework established by the Board in, among other things, the CEO instruction. The Chief Executive Officer is authorized to sign for Elanders AB, as well as sign for all significant subsidiaries. The Chief Executive Officer is responsible for providing the Board with continual reports on group results and financial position as well as the information the Board needs to make qualified decisions. The Chief Executive Officer also keeps the Chair- man of the Board apprised of developments in operations. All the managing directors in the Group’s subsidiaries receive written instruc- tions. These instructions contain guidelines the managing director must observe in the running of operations. Group Management The President and Chief Executive Officer lead the work performed by Group Management and make decisions in consultation with members of Group Management. Group Management is responsible Board of Directors’ report – Corporate governance report Elanders’ Annual and Sustainability Report 2023  for day-to-day financial and commercial management and follow-up in the Group. It also strives to continually achieve synergies, identify acquisitions and structural opportunities as well as to adapt group operations to market demands and short and long-term develop- ments. Group Management makes sure that the competence and capacity of the Group is coordinated and adjusted to be as useful and profitable as possible in the short and long term. Group Management meets on a quarterly basis, often in conjunction with a visit to a unit within the Group. Since February 2024, Elanders’ Group Manage- ment consists of: • Magnus Nilsson, President and CEO • Andréas Wikner, CFO • Sven Burkhard, responsible for Print & Packaging Solutions • Ged Carabini, responsible for Supply Chain Solutions (Kammac) • Charles Ickes, responsible for Supply Chain Solutions (Bergen Logistics) • Kok Khoon Lim, responsible for Supply Chain Solutions (Mentor Media) • Bernd Schwenger, responsible for Supply Chain Solutions (LGI) Further information about Group Management and the members can be found on pages 148–149. The Board’s report on internal control over financial reporting The purpose of internal control over financial reporting is to ensure that it is reliable and that the financial reports follow generally accepted accounting principles and otherwise follow applicable laws and regulations concerning listed companies. According to the Swedish Companies Act and the Code of Corporate Governance the Board is ultimately responsible for an effective, functioning internal control in the Group. Internal control is based on the framework for internal control published by COSO (Committee of Sponsoring Organizations of the Treadway Commission) and which comprises the control environment, risk assessment, control activities, informa- tion, communication as well as follow-up. The Chief Executive Officer is responsible for an organization and processes that ensure the quality of financial reports to the Board and the market. Control environment The control environment at Elanders is characterized by the proxim- ity between Group Management and the operating units. All of the members in Group Management, except the Chief Executive Officer and the Chief Financial Officer, are also MDs in one or more of the larger operative units in the Group. The framework for internal control over financial reporting in Elanders consists of routines and distribution of responsibility that are clearly communicated in inter- nal policies and different kinds of manuals. The Board has adopted a work plan that regulates the Board’s responsibility and the manner in which work is done in committees. The Board also has an audit committee that is responsible for ensuring that established principles in financial reporting and internal control are complied with and developed. It also maintains regular contact with the external audi- tors. In order to maintain an effective control environment and good internal control the Board has delegated the practical responsibility to the Chief Executive Officer and established a CEO instruction which defines the division of responsibility between the Board and the Chief Executive Officer. Elanders has an internal control function which reports to the CEO and the CFO. The internal control function performs audits of the entities within the Group. The procedures and processes in the entities are evaluated and testing performed regarding the entities’ internal controls. Risk assessment It is the responsibility of the Board to identify and handle any major financial risks and the risk of mistakes in financial reporting. This includes identifying areas in financial reporting where the risk of making a crucial mistake is higher as well as developing control systems to prevent and discover these faults. This is primarily done by identifying situations in operations and events in the outside world that could have an impact on financial reporting. Control procedures The aim of the control procedures is to ensure that financial reporting is correct and complete and that it is based on the Group’s require- ments for internal control over financial reporting. Control proce- dures consist of general and detailed controls and can be both pre- ventive and detective. For instance, the Board continuously follows developments in the operations through monthly reports containing detailed financial information as well as the Chief Executive Officer’s comments on operations and result and financial position. Represen- tatives from Group Finance or Group Internal Control regularly visit the entities within the Group and evaluate internal control and finan- cial reporting. The MD in each subsidiary is responsible for making sure group governance regulations are implemented and followed and that any deviations are reported. Companies in the Elanders Group also make an annual self-assessment of how internal control functions in relation to the Group’s goals. Information and communication In order to make Elanders employees aware of the Group’s policies and manuals, the information is communicated yearly, and when changes are made, to all affected employees within the Group. To ensure that information communicated externally is correct and complete, the Board has adopted an Information Policy that dictates what should be communicated, by whom and how the information should be released. Follow-up The Board follow-up of the internal control over financial reporting is first and foremost handled by the audit committee. The observations and potential areas of improvement in internal control that have been identified in the external audit are processed by the audit committee together with the external auditors and the Chief Financial Officer. The results from the audits performed by Group Internal Control and the annual self-assessment of internal control in the entities within the Group is reported to the audit committee and the external auditors. External audit The Annual General Meeting 2023 chose the accounting firm PricewaterhouseCoopers AB as the company’s auditor until the next Annual General Meeting. The Auditor in charge is the authorized public accountant Eric Salander and co-auditor is the authorized public accountant Alexander Ståhl. Once a year, the auditors meet the Board in its entirety without the Chief Executive Officer or any other member of Group Management present, normally at the meeting that deals with the year-end report. The auditors also participate in the Board meeting dealing with the report for the first nine months of the year. Board of Directors’ report – Corporate governance report  Elanders’ Annual and Sustainability Report 2023 The Annual General Meeting for share- holders in Elanders will be held on Friday 19 April, 2024. Board of Directors’ report – Corporate governance report Elanders’ Annual and Sustainability Report 2023  Financial reports and notes – Group Income statements MSEK Note 2023 2022 Net sales 2, 3 13,866.7 14,974.5 Cost of products and services sold –11,518.5 –12,743.7 Gross profit 2,348.1 2,230.7 Selling expenses –482.4 –424.2 Administrative expenses –1,168.5 –1,059.4 Other operating income 4 129.7 196.9 Other operating expenses 4 –102.6 –94.6 Operating result 5, 6, 7, 29 724.3 849.3 Financial income 8 234.7 60.3 Financial expenses 8 –561.2 –243.5 Result after financial items 397.9 666.2 Taxes 9 –140.3 –179.6 Result for the year 257.6 486.5 Result for the year attributable to – parent company shareholders 248.0 470.0 – non-controlling interests 9.6 16.5 Earning per share, SEK 10 7.02 13.29 1) 1) There have been no dilution effects. Statements of comprehensive income MSEK 2023 2022 Result for the year 257.6 486.5 Items that will not be reclassified to the income statement Actuarial gains/losses on defined benefit pensions plans 5.2 26.0 Tax effect on actuarial gains/losses on defined benefit pensions plans –1.5 –7.7 Items that will be reclassified to the income statement Translation differences –88.6 370.7 Change in fair value of the hedge of the net investment abroad 30.4 –81.6 Tax effect on the change in fair value of the hedge of net investments abroad –6.3 16.8 Other comprehensive income –60.9 324.2 Total comprehensive income for the year 196.7 810.7 Total comprehensive income attributable to – parent company shareholders 186.5 793.4 – non-controlling interests 10.2 17.3  Elanders’ Annual and Sustainability Report 2023 Financial reports and notes – Group Statements of cash flow MSEK Note 2023 2022 Operating activities Result after financial items 397.9 666.2 Adjustments for items not included in cash flow 12 1,255.2 1,111.7 Paid taxes 9, 11 –241.9 –196.0 Cash flow from operating activities before changes in working capital 1,411.2 1,581.9 Cash flow from changes in working capital Increase (–)/decrease (+) in inventory 261.4 –166.3 Increase (–)/decrease (+) in operating receivables 380.4 –194.5 Increase (+)/decrease (–) in operating payables –271.2 –115.5 Cash flow from operating activities 1,781.8 1,105.6 Investing activities Investments in intangible and tangible assets 13, 14 –203.6 –237.5 Divestment of tangible assets 14 26.1 8.9 Acquired and divested operations 30 –832.4 –43.5 Change in long-term receivables –2.2 –2.2 Cash flow from investing activities –1,012.2 –274.3 Financing activities Amortization of borrowing debts 22, 23 –128.9 –120.8 Amortization of lease liabilities 22, 23 –929.5 –773.8 New loans 22, 23 884.8 0.2 Other changes in interest-bearing liabilities 12, 22, 23 –194.3 132.9 Dividend to shareholders –164.6 –136.5 Cash flow from financing activities –532.5 –897.9 Cash flow for the year 11 237.1 –66.6 Cash and cash equivalents at the beginning of the year 904.0 898.1 Translation difference in cash and cash equivalents –34.5 72.5 Cash and cash equivalents at year-end 20 1,106.6 904.0 Elanders’ Annual and Sustainability Report 2023  Financial reports and notes – Group Statements of financial position MSEK Note 2023 2022 Assets Fixed assets Intangible assets 13 5,813.2 4,922.6 Tangible assets 14, 28 893.3 817.5 Right-of-use assets 15 4,385.4 4,152.1 Deferred tax assets 9 391.1 386.6 Other financial assets 16 67.6 66.1 Total fixed assets 11,550.6 10,344.9 Current assets Inventory 17 349.1 618.9 Accounts receivable 16, 18 2,037.9 2,139.2 Current tax receivables 9 66.5 38.3 Other receivables 16 172.0 132.0 Prepaid expenses and accrued income 19 347.7 396.9 Cash and cash equivalents 16, 20, 23 1,106.6 904.0 Total current assets 4,079.8 4,229.3 Total assets 15,630.4 14,574.1  Elanders’ Annual and Sustainability Report 2023 Financial reports and notes – Group Statements of financial position (cont.) MSEK Note 2023 2022 Equity and liabilities Equity Share capital 353.6 353.6 Other contributed capital 1,275.6 1,275.6 Other reserves 466.3 532.2 Retained earnings 1,740.9 1,673.4 Equity attributable to parent company shareholders 21 3,836.4 3,834.8 Equity attributable to non-controlling interests 27.8 35.5 Total equity 3,864.2 3,870.3 Liabilities Long-term liabilities Lease liabilities 22 3,608.2 3,484.6 Other interest-bearing liabilities 22, 23, 28 3,996.7 3,667.2 Provisions for post-employment benefits 23, 25 71.3 77.5 Other provisions 26 111.0 34.4 Deferred tax liabilities 9 296.7 236.6 Total long-term liabilities 8,083.8 7,500.3 Short-term liabilities Lease liabilities 22 938.2 801.2 Other interest-bearing liabilities 22, 23, 28 683.3 149.8 Accounts payable 22 673.3 892.5 Current tax liabilities 9 127.7 151.0 Other liabilities 251.4 146.7 Accrued expenses and deferred income 27 869.4 893.0 Other provisions 26 139.2 169.3 Total short-term liabilities 3,682.4 3,203.5 Total equity and liabilities 15,630.4 14,574.1 Elanders’ Annual and Sustainability Report 2023  Financial reports and notes – Group Statements of changes in equity Equity attributable to parent company shareholders Equity Other of non- contributed Other Retained controlling Total MSEK Share capital capital reserves earnings Total interest equity Opening balance as of 1 Jan. 2022 353.6 1,275.6 227.1 1,420.2 3,276.5 27.4 3,303.9 Dividend to parent company shareholders – – – –127.3 –127.3 –9.2 –136.5 Change in fair value of put and call option to acquire non-controlling interest – – – –107.8 –107.8 – –107.8 Result for the year – – – 470.0 470.0 16.5 486.5 Other comprehensive income – – 305.1 18.3 323.4 0.8 324.2 Closing balance as of 31 Dec. 2022 353.6 1,275.6 532.2 1,673.4 3,834.8 35.5 3,870.3 Dividend to shareholders – – – –146.7 –146.7 –17.9 –164.6 Change in fair value of put and call option to acquire non-controlling interest – – – –38.2 –38.2 – –38.2 Result for the year – – – 248.0 248.0 9.6 257.6 Other comprehensive income – – –65.9 4.4 –61.5 0.6 –60.9 Closing balance as of 31 Dec. 2023 353.6 1,275.6 466.3 1,740.9 3,836.4 27.8 3,864.2 1) 1) Other reserves pertain hedges of net investments and translation differences.  Elanders’ Annual and Sustainability Report 2023 Financial reports and notes – Group NOTE 1 – Accounting principles General information Elanders AB (publ.), corporate identity number 556008-1621 , is a limited company registered in Sweden. The parent company is registered in Mölndal. Elanders is listed on NASDAQ OMX Stockholm, Mid Cap. The company’s primary business and its subsidiaries are described in the Board of Directors’ Report in this Annual Report. The annual accounts for the financial year ending on 31 December 2023 were approved by the Board and will be presented to the Annual General Meeting on 19 April 2024 for adoption. Accounting principles Financial reporting The Group has prepared the annual accounts according to the Annual Accounts Act, the EU approved International Financial Reporting Standards (IFRS) and the interpretations of the International Financial Reporting Interpretations Committee (IFRIC) endorsed by the European Union as of 31 December 2023. In addition, the Group follows the Swedish Financial Reporting Board Recommendation RFR 1 Supplemen- tal Accounting Regulations for Groups, which specifies the additions to IFRSs information that are required according to the provisions in the Annual Accounts Act. In group accounting all items are valued at acquisi- tion value, unless otherwise specified. The Group reports in Swedish krona. All amounts are given in millions of Swedish krona, unless other- wise specified. Accounting principles are also described further in the associated note. Consolidation Group accounting comprises the parent company, Elanders AB, and companies in which Elanders AB directly or indirectly holds a control- ling interest. Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases. Equity in the Group is comprised of equity in the parent company and the part of the equity in subsidiaries generated after acquisition. All transactions and balances between group companies are eliminated in the consolidated accounts. Foreign currency Items that are included in the financial reports from the various units in the Group are originally recognized in the currency used in the primary economic environment where the respective unit chiefly operates (functional currency). In the consolidated financial statements all amounts are translated to Swedish krona, which is the parent company’s functional and reporting currency. Transactions and balance sheet items Transactions in foreign currency are reported in each unit based on the unit’s functional currency according to the transaction day exchange rate. Monetary assets and liabilities in foreign currency are translated to balance sheet date rates and translation differences are reported under the result for the period. Translation differences in operating receivables and payables are recorded under operating results while differences in financial assets and liabilities are reported under financial items. Translation of foreign subsidiaries When preparing the consolidated financial statements the balance sheets of foreign operations are translated to Swedish krona with balance sheet date rates while income statements are translated to the average exchange rates for the period. Translation differences are recognized as translation reserves under equity. The accumulated trans- lation differences are redistributed and reported as part of capital gains/ losses in the event of a divestiture of a foreign operation. Goodwill and adjustments to fair value attributable to acquisitions with another functional currency than Swedish krona are reported as assets and liabilities in the acquired unit’s currency and translated to balance sheet date rates. Alternative performance measures The Annual Report includes alternative performance measures for monitoring the Group’s operations. Alternative performance measures are performance measures that have not been defined by IFRS. For reconciliation of the primary alternative performance measures and financial definitions, see pages 142–144 . New standards, amendments and interpretations of existing standards Standards, amendments and interpretations of existing standards that came into effect during 2023 During the year no interpretations or amendments of existing standards have come into effect and had a significant effect on Elanders’ financial reports. Standards, amendments and interpretations of existing standards that have not yet come into effect No new or amended standards that have not yet come into effect are expected to have a material impact on Elanders’ financial reports. Elanders’ Annual and Sustainability Report 2023  Financial reports and notes – Group NOTE 1 – Accounting principles (cont.) I mportant estimations and assessments When preparing the financial reports estimations and assessments are made about the future that effect balance sheet and income statement items in the annual accounts. These assessments are based on historic experience and the various assumptions that Group Management and the Board of Directors consider plausible under existing circumstances. In cases where it is not possible to ascertain the book value of assets and liabilities through information from other sources these estima- tions and assessments form the basis of the valuation. If other assess- ments are made, or other circumstances influence the matter, the actual outcome can differ from these assessments. The table below shows the most significant estimations and assessments carried out when preparing the financial reports. Valuation of tax loss carry forwards Note 9 – Taxes Impairment of goodwill and other intangible assets Note 13 – Intangible assets Impairment of tangible assets and residual value risks Note 14 – Tangible assets Measurement of lease liabilities and right-of-use assets Note 15 – Rights-of-use assets Assessments made when calculating fair value Note 16 – Financial assets Impairment and obsolescence in inventory Note 17 – Inventory Provision of bad debt and expected credit losses Note 18 – Account receivables Assessments made when calculating fair value Note 22 – Financial liabilities Assumptions when calculating post-employment benefits Note 25 – Provisions for post-employment benefits Assumptions made in determining the existence and amount of provisions Note 26 – Other provisions Assessments made when acquiring subsidiaries Note 30 – Acquired and divested operations  Elanders’ Annual and Sustainability Report 2023 Financial reports and notes – Group NOTE 2 – Segment reporting Accounting principles Segment reporting is prepared in accordance with IFRS 8 Operating Segments. The reporting is consistent with the internal reporting provided to the highest executive decision-maker in the Group, the Chief Executive Officer of the Elanders Group. The Group has defined two operating segments which are the same as the two busi- ness areas Supply Chain Solutions and Print & Packing Solutions. The operations within each operating segment have similar economic characteristics and resemble each other regarding the nature of their products and services, production processes and customer types. Sales between segments takes place on market terms and have been eliminated in the Group’s total sales. Group functions mainly comprises the costs attributable to the Board of Directions, President and other senior executives, audit costs as well as corporate costs for the provision of information for shareholders, maintaining the stock listing and costs relating to preparation of the annual accounts. When presenting geographical sales, the customers’ location has been decisive for which geographic area the sales have been al- located to. Financial income and expenses are not allocated to the respective business areas since the financing of the Group is managed by Group Finance. Assets and liabilities are not divided by segment since no such amounts are regularly reported to the Chief Executive Officer of the Group. Reporting by segment Supply Chain Solutions Print & Packaging Solutions MSEK 2023 2022 2023 2022 Net sales 11,384.9 12,267.0 2,629.9 2,838.8 Operating expenses –10,718.1 –11,512.2 –2,539.5 –2,696.8 Operating result 666.8 754.8 90.4 142.0 Net financial items – – – – Result before tax 666.8 754.8 90.4 142.0 Investments 417.7 1,223.9 127.2 188.7 Depreciation and amortization –1,065.5 –926.8 –175.6 –161.8 Goodwill 3,296.1 2,495.9 1,155.9 1,159.3 Trademarks with indefinite useful life 768.5 783.3 – – Group functions Eliminations The Group MSEK 2023 2022 2023 2022 2023 2022 Net sales 47.5 45.3 –195.6 –176.6 13,866.7 14,974.5 Operating expenses –80.3 –92.7 195.6 176.6 –13,142.3 –14,125.1 Operating result –32.8 –47.4 – – 724.3 849.3 Net financial items –326.4 –183.2 – – –326.4 –183.2 Result before tax –359.3 –230.6 – – 397.9 666.2 Investments 4.2 1.4 – – 549.1 1,414.0 Depreciation and amortization –1.9 –2.5 – – –1,243.0 –1,091.1 Goodwill – – – – 4,452.0 3,655.2 Trademarks with indefinite useful life – – – – 768.5 783.3 Elanders’ Annual and Sustainability Report 2023  Financial reports and notes – Group NOTE 2 – Segment reporting (cont.) Information concerning the Group’s largest customers Elanders has two customers whose sales exceed 10 percent of the Group’s net sales. In 2023, sales to the Group’s largest customer repre- sent 17 (14) percent while sales to the next largest customer represent 9 (12) percent of the total net sales. Sales to these customers is made to several of their divisions, on several continents and is based on multiple stand-alone agree ments. The three largest customers are mainly attri- butable to the segment Supply Chain Solutions. The Group’s ten largest customers together represents 45 (46) percent of total net sales. Sales by geographic area MSEK 2023 2022 Germany 5,604.3 5,856.4 USA 2,698.5 3,052.0 Singapore 1,494.2 2,092.0 United Kingdom 688.4 499.5 Sweden 508.1 494.6 Netherlands 458.3 369.5 China 443.5 547.7 Switzerland 378.6 340.1 Poland 251.3 257.4 Hungary 216.4 233.7 Other countries 1,125.0 1,231.5 Total 13,866.7 14,974.5 Fixed assets by geographic area MSEK 2023 2022 Germany 2,821.9 3,340.1 USA 1,190.4 1,405.5 United Kingdom 805.7 114.5 Netherlands 176.0 165.2 Singapore 146.6 44.9 Czech Republic 96.8 120.6 Sweden 78.2 53.5 Poland 44.9 52.9 India 31.0 35.8 China 25.6 36.5 Other countries 244.6 84.1 Total 5,661.7 5,453.7 Fixed assets above include other intangible assets, tangible fixed assets as well as right-of-use assets. The assets are allocated according to where the subsidiaries are located geographically. Goodwill and trade- marks with indefinite useful life and a book value of MSEK 5,221 (4,439) have not been allocated by geography. They are only allocated by segment.  Elanders’ Annual and Sustainability Report 2023 Financial reports and notes – Group NOTE 3 – Disaggregation of revenue Accounting principles Elanders applies IFRS 15 Revenue recognition. The standard is built according to a control-based model in five steps and requires that revenue is recognized to an amount that reflects the renumeration to which the company expects to be entitled in exchange for transfer- ring goods or service to the customer, and that sales of goods and services are accounted for separately. Since all products are es- sentially integrated parts of service deliveries to customers, a split of revenues into products and services is not meaningful for Elanders. Revenue is recognized when the control has been transferred to the customer in connection with final delivery. Revenue from contracts with customers are either recognized at one point in time or over time as the service is performed in accordance with the contract. Revenue has been divided into geographic markets, main revenue streams and customer segments since these are the categories the Group uses to present and analyze revenue in other contexts. Income for each category is presented per operating segment. The Group’s customer contracts are easy to identify and products and services in a contract are largely connected and dependent on each other, and therefore part of an integrated offer. Main revenue streams are presented based on the internal names used in the Group. Sourcing & Procurement services refer to the purchase and procurement of products for customers as well as han- dling the flows connected to these products. Freight and transporta- tion services refer to revenue from freight and transportation with our own trucks as well as pure freight forwarding. Other supply chain services such as fulfillment, kitting, warehousing, assembly and after sales services are presented under Other contract logistics services. Other work/services refer to pure print services and other services that do not fit into any of the first three categories. Intra-group invoicing regarding group functions is reported net in net sales to group companies. Supply Chain Solutions Print & Packaging Solutions Total MSEK 2023 2022 2023 2022 2023 2022 Total net sales 11,384.9 12,267.0 2,629.9 2,838.8 14,014.8 15,105.8 Less: net sales to group companies –78.2 –74.8 –69.9 –56.5 –148.1 –131.3 Net sales 11,306.6 12,192.2 2,560.0 2,782.3 13,866.7 14,974.5 Supply Chain Solutions Print & Packaging Solutions Group MSEK 2023 2022 2023 2022 2023 2022 Customer segments Automotive 2,312.5 2,267.8 526.7 453.1 2,839.2 2,720.9 Electronics 3,431.3 4,021.6 62.4 84.4 3,493.6 4,106.0 Fashion 3,626.2 3,629.8 275.0 584.9 3,901.1 4,214.7 Health Care 516.8 516.7 40.4 93.9 557.2 610.6 Industrial 1,023.5 1,277.3 565.7 536.6 1,589.2 1,813.9 Other 396.4 478.9 1,089.8 1,029.4 1,486.2 1,508.3 Net sales 11,306.6 12,192.2 2,560.0 2,782.3 13,866.7 14,974.5 Main revenue streams Sourcing and procurement services 1,939.0 2,561.5 – – 1,939.0 2,561.5 Freight and transportation services 3,396.1 4,090.9 – 234.8 3,396.1 4,325.7 Other contract logistics services 5,470.8 5,068.5 312.4 414.2 5,783.3 5,482.7 Other work/services 500.7 471.2 2,247.6 2,133.3 2,748.3 2,604.5 Net sales 11,306.6 12,192.2 2,560.0 2,782.3 13,866.7 14,974.5 Elanders’ Annual and Sustainability Report 2023  Financial reports and notes – Group NOTE 3 – Disaggregation of revenue (cont.) Supply Chain Solutions Print & Packaging Solutions Group MSEK 2023 2022 2023 2022 2023 2022 Geographic markets Europe Germany 4,357.9 4,839.1 1,246.5 1,017.3 5,604.3 5,856.4 United Kingdom 362.2 178.0 326.1 321.5 688.4 499.5 Sweden 500.7 485.8 7.4 8.9 508.1 494.6 Netherlands 412.1 332.2 46.2 37.3 458.3 369.5 Switzerland 313.0 283.2 65.6 56.9 378.6 340.1 Poland 125.8 109.3 125.5 148.1 251.3 257.4 Hungary 161.7 186.1 54.6 47.7 216.4 233.7 Other countries 385.8 387.7 314.3 365.4 700.2 753.1 Europe total 6,619.2 6,801.4 2,186.3 2,002.9 8,805.6 8,804.3 Asia Singapore 1,493.9 2,091.7 0.3 0.3 1,494.2 2,092.0 China 441.0 545.0 2.6 2.8 443.5 547.7 India 100.1 138.1 1.2 1.5 101.3 139.6 Other countries 87.4 111.4 31.9 37.4 119.3 148.9 Asia total 2,122.4 2,886.2 36.0 42.0 2,158.4 2,928.2 North and South America USA 2,387.8 2,336.4 310.7 715.6 2,698.5 3,052.0 Other countries 160.4 149.1 19.0 15.6 179.4 164.7 North and South America total 2,548.2 2,485.5 329.6 731.2 2,877.8 3,216.7 Other 16.8 19.0 8.1 6.2 24.9 25.3 Net sales 11,306.6 12,192.2 2,560.0 2,782.3 13,866.7 14,974.5 NOTE 4 – Other operating income and other operating expenses Other operating income MSEK 2023 2022 Result from investments in associated companies – 55.3 Exchange rate gains 16.6 61.3 Gains from the sales of fixed assets 15.7 5.7 Insurance compensations 22.9 3.9 Other 74.6 70.7 Total 129.7 196.9 Other operating expenses MSEK 2023 2022 Exchange rate losses –19.8 –52.2 Losses from the sales of fixed assets –10.4 –4.3 Revaluation of additional consideration –14.2 –18.5 Other –58.2 –19.6 Total –102.6 –94.6  Elanders’ Annual and Sustainability Report 2023 Financial reports and notes – Group NOTE 5 – Personnel Average number of employees Women Men Total Number (FTE) 2023 2022 2023 2022 2023 2022 Parent company Sweden 8 7 6 6 14 13 Subsidiaries Germany 943 948 2,274 2,352 3,217 3,300 USA 782 723 447 410 1,228 1,133 Singapore 200 214 271 274 470 488 China 316 361 91 100 407 461 Czech Republic 130 151 181 198 311 349 Hungary 120 125 177 191 297 316 Poland 95 111 199 225 294 336 United Kingdom 61 46 232 136 292 182 Netherlands 49 35 132 131 181 166 Sweden 37 40 113 114 150 154 India 20 21 126 144 146 165 Austria 13 14 37 36 51 50 Brazil 25 23 23 25 48 48 Mexico 28 19 15 11 44 30 Italy 17 16 6 8 23 24 Canada 13 12 7 7 21 19 Taiwan 5 5 1 1 6 6 Romania 2 2 3 3 5 5 Russia – – – 2 - 2 France – – – 1 - 1 Total 2,863 2,873 4,340 4,375 7,203 7,248 Salaries and other remuneration Board and CEO Basic wage incl. other benefits Variable remuneration Other employees MSEK 2023 2022 2023 2022 2023 2022 Parent company 15.6 14.8 0.0 7.2 16.7 18.7 Subsidiaries 49.6 45.7 14.3 14.9 3,058.5 2,794.0 Total 65.2 60.5 14.3 22.1 3,075.2 2,812.7 Salaries and remuneration Social security contribution Pension contributions MSEK 2023 2022 2023 2022 2023 2022 Parent company 32.3 40.7 12.3 15.9 8.3 8.2 Subsidiaries 3,122.5 2,854.6 521.9 464.3 47.3 44.5 Total 3,154.7 2,895.3 534.2 480.2 55.7 52.7 Elanders’ Annual and Sustainability Report 2023  Financial reports and notes – Group NOTE 5 – Personnel (cont.) Gender distribution in management Women Men Total 2023 2022 2023 2022 2023 2022 Board members 4 4 5 5 9 9 Group Management – – 6 6 6 6 Management positions 255 250 656 600 911 850 The Board also includes two employee representatives. Management position refers to shift- and team leader, site manager or more senior position that is not member of Group Management or the Board of Directors. Remuneration to the board, chief executive officer and other senior officers 2023 Basic wage/Board Variable Other Pension SEK ’000s remuneration remuneration benefits contributions Total Chairman of the Board 896 – – – 896 Board members (7 persons) 3,422 – – – 3,422 Chief Executive Officer 11,140 – 143 3,890 15,173 Other senior officers (5 persons) 33,810 12,986 788 2,019 49,603 Total remuneration to the Board, CEO and senior 49,267 12,986 931 5,909 69,093 officers For allocation of the remuneration to each Board member, see page 52. Remuneration to the board, chief executive officer and other senior officers 2022 Basic wage/Board Variable Other Pension SEK ’000s remuneration remuneration benefits contributions Total Chairman of the Board 866 – – – 866 Board members (7 persons) 3,267 – – – 3,267 Chief Executive Officer 10,510 7,215 129 3,880 21,734 Other senior officers (5 persons) 30,047 17,097 709 1,811 49,664 Total remuneration to the Board, CEO and senior 44,690 24,312 838 5,691 75,531 officers Guidelines for remuneration to senior officers These guidelines were resolved at the 2022 Annual General Meeting and shall thereafter be applied on remuneration to Board members, Chief Executive Officer and other members of Group Management. For more information about renumeration to senior officers, see the Board of Directors report. Basic wage/Board remuneration The Chairman of the Board and Board members receive compensation for their participation on the Board and committee work from the total remuneration sum for the Board determined by the Annual General Meeting. Board members and deputies employed in the Group did not receive any fees or benefits in addition to those pertaining to their employment. The Chairman of the Board has not received any compen- sation other than Board and committee remuneration. Remuneration to the Chief Executive Officer and other senior officers consists of a basic salary, variable remuneration, other benefits and pension. Senior officers are the people who, together with the Chief Executive Officer, com- prised Group Management in 2023. Variable remuneration The proportion between basic salary and variable remuneration corresponds to the officer’s responsibility and authority. For the Chief Executive Officer and the Chief Financial Officer variable remuneration should not exceed 70 and 50 percent respectively of their annual salary. For the other senior officers, variable remuneration may not exceed 40 percent of their annual salary. Variable remuneration is based on results in relation to individually targeted goals. Pension benefits as well as other benefits to the Chief Executive Officer and senior officers are part of the total remuneration. The vari- able remuneration represents the expense for the financial year 2023, which is normally paid out in 2024. The variable remuneration for the Chief Executive Officer is based on goals established by the Board. For other senior officers, variable remu- neration is based on goals established by the Chief Executive Officer together with the remuneration committee. No variable remuneration or any other kind of remuneration had a dilution effect.  Elanders’ Annual and Sustainability Report 2023 Financial reports and notes – Group NOTE 5 – Personnel (cont.) Other benefits “Other benefits” refers to housing, company cars etc. Pensions The Group has both defined benefit and defined contribution pension plans. Pension cost is the cost that affects the result for the year. One former employee and member of Group Management had defined benefit and defined contribution pension plans. The present value of the defined benefit obligation under those plans at 31 December 2023 was MSEK 0.2 (0.9). All pensions are fully vested, i.e. there is no dependency on future employment. The current Chief Executive Officer only has a defined contribution pension corresponding to 35 percent of the salary pension. The salary pension is based on the basic salary. The retirement age is 65 years for all senior officers. Pension provisions are no more than 35 percent of the basic wage or, if applicable, no more than the ITP cost and the legal general pension, or the equivalent. Financial instruments There is no compensation or benefits in the form of financial instruments. Other remuneration No other remunerations have been distributed. Notice periods and severance payments The period of notice for termination of the Chief Executive Officer by the company is 18 months. The period of notice from the Chief Executive Officer is 6 months. The period of notice for termination of other senior officers is normally 12 months. Usually no severance pay is paid no matter which party gives notice. Normal wages are paid during the period of notice. Deviations from the guidelines The Board is entitled to deviate from the above guidelines if the Board determines that there are special reasons that in specific cases can justify this. The Board has during the year deviated from the guidelines for one of the senior officers regarding the variable remuneration and the limitation at 40 percent of the basic wage. Preparation and decision process The remuneration committee has during the year presented the Board with recommendations concerning principles for the remuneration of senior officers. The recommendations have included proportions between fixed and variable remuneration as well as the size of possible raises. In addition, the remuneration committee has proposed criteria for deciding on variable remuneration as well as pension terms and severance pay. The Board has discussed the remuneration committee’s proposals and made its decisions guided by their recommendations. The Board has determined the remuneration for the Chief Executive Officer for the financial year of 2023 based on the remuneration com- mittee’s proposals. The Chief Executive Officer has determined the remuneration for other senior officers after consultation with the chair- man of the remuneration committee. Members of the remuneration committee during the year were Dan Frohm, Chairman, Carl Bennet, Erik Gabrielson and Johan Stern. The remuneration committee meets when necessary, but at least once a year to prepare proposals for the remuneration of the Chief Executive Officer and agree or disagree to his proposal for remuneration and conditions for senior officers who report directly to him. In addition, the remunera- tion committee draws up principles for salary levels and employment terms for Group Management. The remuneration committee proposes remuneration, terms and principles to the Board that then decides on these matters. The remuneration committee has met once in 2023. When necessary, the committee has been supported by external expertise in matters concerning compensation levels and structures. NOTE 6 – Fees to the auditors MSEK 2023 2022 PWC Audit assignment 6.9 6.6 Audit-related services – – Tax advisory services 0.1 0.2 Other services 0.7 0.0 Other Audit assignment 1.6 1.8 Audit-related services 0.1 0.0 Tax advisory services 0.5 1.0 Other services 0.1 0.1 Total 10.0 9.7 The audit assignment refers to fees for the statutory audit, i.e. work that was necessary to deliver the auditor’s report, as well as so-called audit advice provided in connection with the audit engagement. The total fee to PwC and its network amounted to MSEK 7.7 (6.8) during the year, of which MSEK 6.9 (6.6) was the fee for the audit assignment. The parent company has paid MSEK 3.5 (2.3) in remuneration to the au- dit firm PricewaterhouseCoopers AB for the audit engagement, of which MSEK 0.7 (0.0) related to other services . Elanders’ Annual and Sustainability Report 2023  Financial reports and notes – Group NOTE 8 – Financial income and expenses Financial income MSEK 2023 2022 Interest income 14.3 3.3 Exchange rate gains 217.9 56.3 Other 2.5 0.7 Total 234.7 60.3 Financial expenses MSEK 2023 2022 Interest expenses leasing liabilities –140.7 –107.2 Interest expenses other liabilities –196.6 –80.4 Exchange rate losses –210.5 –44.6 Other –13.3 –11.2 Total –561.2 –243.5 NOTE 9 – Taxes Accounting principles The Group’s tax expense consists of current tax and deferred tax. Current tax is based on the fiscal result for the year. The annual fiscal result differs from the result reported for the year due to adjust- ments for non-taxable and non-deductible items. Current tax is calculated based on the tax rules and regulations that apply in the countries where the group companies are taxed. Deferred tax is tax relating to taxable or tax-deductible temporary differences that affect future taxes. Deferred tax is calculated according to the balance sheet method based on temporary differ- ences between recorded and fiscal values of assets and liabilities. Calculation of the amounts is based on how the temporary differ- ences are expected to reverse using enacted tax rates or tax rates announced on the balance sheet date. Deferred tax assets that refer to tax deficits and deductible temporary differences are only reported in cases where it is probable that tax deficits can be recognized against tax surpluses in the future. Deferred tax is reported as an income or an expense in the income statement except in cases where it refers to a transaction that is recorded in other comprehensive income. In that case the tax effect is recorded directly in other comprehensive income. Deferred tax assets and liabilities are offset against each other in cases where Elanders has legal rights to set-off. The Group is subject to the rules on Global Minimum Tax. Legisla- tion on Global Minimum Tax has been adopted in Sweden, where Elanders AB (publ) is registered, and entered into force on January 1, 2024. Since the Global Minimum Tax legislation had not entered into force at the balance sheet date, the Group has no related current tax exposure. The Group has applied the exemption to recognize and disclose deferred tax assets and liabilities related to income taxes on Global Minimum Tax, as set out in the amendments to IAS 12. According to the legislation, the Group is liable to pay an addi- tional tax on the difference between the effective tax rate calculated according to the GloBE rules for each jurisdiction and the minimum tax rate of 15%. For Elanders, the effective tax rate will be calculated together for the Group, Carl Bennet AB and certain of Carl Bennet AB’s other subsidiaries. Elanders is therefore working together with Carl Bennet AB to evaluate its exposure in terms of Global Minimum Tax. The ongoing evaluation indicates that there is no material tax exposure. NOTE 7 – Costs classified by nature MSEK 2023 2022 Costs for goods for resale and other production material 2,687.8 3,341.9 Personnel costs 3,993.2 3,582.8 Freight costs 2,442.6 3,522.3 Other production costs 2,343.6 2,262.6 Costs for depreciation and write-downs 1,243.0 1,091.1 Cost for advertising and other selling expenses 64.7 73.0 Other costs 394.5 353.6 Total 13,169.4 14,227.3 The table shows the total cost for sold products and services, sales costs and administrative costs allocated per type of cost.  Elanders’ Annual and Sustainability Report 2023 Financial reports and notes – Group NOTE 9 – Taxes (cont.) Estimations and assessments Valuation of tax loss carry forwards Deferred tax assets concerning tax loss carry forwards reported by the Group have been tested at year-end and it is deemed probable that these can be set off against taxable gains. The tax assets pri- marily refer to Swedish tax loss carry forwards that can be utilized for an unlimited amount of time. The Group’s Swedish operations are expected to generate a substantial surplus in the future. Elanders therefore believes it is safe to say that it will be possible to set off the deficit deduction which the tax assets stem from, against future taxable surpluses. Recorded tax MSEK 2023 2022 Current tax on the result for the year –168.1 –213.4 Withholding tax on dividends and other taxes –6.9 –7.8 Correction of previous years’ current tax expense –0.6 4.3 Deferred tax 35.2 37.3 Recorded tax –140.3 –179.6 Reconciliation of recorded tax MSEK 2023 2022 Result before taxes 397.9 666.2 Tax according to Swedish tax rate of 20.6 (20.6)% –82.0 –137.2 Tax effect of: – differences in tax rates for foreign subsidiaries –29.6 –25.8 – non-deductible costs –29.7 –15.9 – revaluation of deferred taxes 3.0 3.8 – correction of previous years’ tax expense –0.6 1.1 – withholding tax on dividends –8.7 –9.7 – other 7.2 4.3 Recorded tax –140.3 –179.6 Deferred tax assets and liabilities by nature MSEK 2023 2022 Tax loss carryforwards 197.2 175.1 Fixed assets –242.6 –212.5 Other items 165.2 212.2 119.7 174.8 Less: Tax losses carried forward not valued –25.4 –24.8 Closing balance, net 94.3 150.0 Allocation of deferred tax assets and liabilities in the statement of financial position MSEK 2023 2022 Deferred tax assets 391.1 386.6 Deferred tax liabilities –296.7 –236.6 Closing balance, net 94.3 150.0 Change in deferred tax MSEK 2023 2022 Opening balance, net 150.0 107.5 Acquisition of operations –84.0 –1.7 Recorded deferred tax on the result for the year 35.2 37.3 Tax items charged directly against other comprehensive income –7.8 9.1 Translation differences 0.8 –2.2 Closing balance, net 94.3 150.0 Tax items charged directly against other comprehensive income refer to the Group’s hedge reserve and hedging of net investments abroad. Due date structure – deferred tax assets relating to tax loss carryforwards MSEK 2023 2022 Due within one year – – Due within 2–5 years 0.1 0.3 Due after 5 years 1.6 1.9 No due date 170.1 148.1 Closing balance 171.8 150.3 Elanders’ Annual and Sustainability Report 2023  Financial reports and notes – Group NOTE 10 – Earnings per share 2023 2022 Result for the year attributable to parent company share holders, MSEK 248.0 470.0 Average number of outstanding shares, in thousands 35,358 35,358 Earnings per share, SEK 7.02 13.29 Earnings per share is calculated by dividing the result attributable to the parent company’s shareholders with the average number of outstanding shares during the year. There is no dilution. NOTE 11 – Operating cash flow MSEK 2023 2022 Cash flow from operating activities 1,781.8 1,105.6 Financial items 326.4 183.2 Paid taxes 241.9 196.0 Acquired and divested operations –832.4 –43.5 Other items included in cash flow from investing activities –179.7 –230.8 Operating cash flow 1,337.9 1,210.5 Operating cash flow is defined as cash flow from operating activities, excluding financial items and paid taxes, and cash flow from investing activities. NOTE 12 – Supplementary information to cash flow statements Accounting principles The cash flow statements are prepared in accordance with the indirect method. The cash flows of foreign group companies are translated at an average exchange rate. Changes in the group structure, acquisitions and divestments are reported gross, ex- cluding cash and cash equivalents, and are included in the cash flow from investing activities. Adjustment for items not included in cash flow MSEK 2023 2022 Depreciation, amortization and write-downs of intangible and tangible assets 1,243.0 1,091.1 Changes in provisions that affect cash flow –37.7 24.7 Result from disposal of tangible assets –5.3 –1.5 Unrealized exchange rate gains and losses –26.8 17.8 Other changes 81.9 –20.4 Total 1,255.2 1,111.7 Paid and received interest MSEK 2023 2022 Paid interest –342.5 –187.9 Received interest 14.3 3.3 Total –328.2 –184.6 Cash and cash equivalents Cash and cash equivalents consist primarily of cash and bank balances. Short-term placements are classified as cash and cash equivalents when: – the risk of changes in their fair value is insignificant. – they are easily converted. – they mature in less than three months from the date they were acquired. Other changes in long and short-term interest-bearing liabilities The item Other changes in long and short-term interest-bearing liabilities mainly refers to changes stemming from utilization of revolving credits .  Elanders’ Annual and Sustainability Report 2023 Financial reports and notes – Group NOTE 13 – Intangible assets Accounting principles Goodwill Goodwill is the difference between the acquisition value and the Group’s share of the fair value of the acquired subsidiary’s, associ- ated company’s or jointly controlled entity’s identifiable assets, liabilities or obligations on the date of acquisition. If at acquisition the fair value of the acquired assets, liabilities or obligations exceed the acquisition price, the difference is recorded directly as income in the income statement. Goodwill has an indefinite useful life and is recorded at acquisition value less accumulated write-downs. All goodwill is allocated to the cash-generating units that benefit from the synergies from the business combination. The cash-generating units in Elanders is the operating segments, Supply Chain Solutions and Print & Packing Solutions. When a company is sold, the portion of goodwill attributable to that company which has not been written down is calculated in capital gains/losses . Other intangible assets Other intangible assets are customer relations, brands, favorable contracts identified at the time of an acquisition as well as the cost of purchasing and developing software. Internally created intangible assets are reported as an asset only in cases where an identifiable asset has been created, it is fairly certain that the asset will lead to financial gains and invested expenses for developments can be calculated reliably. If it is not possible to report an internally cre- ated intangible asset, the costs for development are recorded as expenses in the period in which they occur. Other intangible assets from acquisitions are reported at fair value on the acquisition date. In subsequent periods, other intangible assets are reported with a determined useful life at acquisition value less accumulated amor- tization and write-downs. Trademarks with indefinite useful life are recorded at acquisition value less accumulated write-downs. Useful life for other intangible assets, besides trademarks with indefinite useful life, is 3–10 years. Impairment Goodwill and trademarks with indefinite useful life are subjected to impairment tests annually and whenever there are indications that a write-down may be necessary. A previous write-down is reversed if the basis for determining the recoverable amount of the asset when it was written down has been changed and the impairment is no longer necessary. Reversals of previous write-downs are assessed individually and recorded to the income statement. Write-downs of goodwill and other intangible assets with an indefinite useful life are not reversed in a subsequent period. Estimations and assessments Group Management conducts an annual impairment test of goodwill and other intangible assets. Testing is performed on the lowest identified cash generating level, which for Elanders is the operating segment level. To estimate the value in use, a discounted cash flow model is used. The calculation of future cash flows is based on bud- get and the strategic plans, adopted by Group Management, for the next four years. The impairment test contains a number of assump- tions that, in different assessments, can have a significant impact on the calculation of recoverable value, such as: • operating margins/results • discount interest • growth/inflation In the years following the initial four-year period, an inflation of 2.0 (2.0) percent and growth rate of 2.0 (2.0) percent is assumed for business area Supply Chain Solutions. For the business area Print & Packaging Solutions an inflation rate of 2.0 (2.0) percent and a growth of 0.0 (0.0) percent has been assumed. For the impairment test, a discount rate after tax has been calculated based on the weighted average cost of capital (WACC). For the current year it was 8.3 (7.5) percent. Based on the assumptions given above, the useful value exceeds the recorded value for all cash generating units. Sensitivity analysis A number of sensitivity analyses have been made to evaluate whether or not feasible unfavorable changes could lead to need for write-downs. The analyses have focused on if the average growth rate or operating margin was reduced with one percentage unit or the discount rate was increased with one percentage unit. The analyses have not shown any need for impairment and the recoverable value exceeds the book value for both business area Supply Chain Solutions and Print & Packaging Solutions. A need for impairment is identified first at a discount rate of 9.9 percent for Supply Chain Solutions and 9.6 percent for Print & Packaging Solutions respectively. Elanders’ Annual and Sustainability Report 2023  Financial reports and notes – Group NOTE 13 – Intangible assets (cont.) Goodwill Trademarks MSEK 2023 2022 2023 2022 Opening acquisition value 3,656.0 3,305.6 783.3 701.1 Investments – – – – Acquired and divested operations 865.2 46.3 – – Disposals – – – – Reclassification – – – – Translation difference –68.4 304.2 –14.8 82.2 Closing acquisition value 4,452.8 3,656.0 768.5 783.3 Opening accumulated amortization and write-downs –0.8 –0.8 – – Acquired and divested operations – – – – Amortization for the year – – – – Disposals – – – – Reclassification – – – – Translation difference – – – – Closing accumulated amortization and write-downs –0.8 –0.8 – – Net residual value 4,452.0 3,655.2 768.5 783.3 Other intangible assets Total MSEK 2023 2022 2023 2022 Opening acquisition value 1,220.2 1,093.0 5,659.6 5,099.7 Investments 12.9 16.4 12.9 16.4 Acquired and divested operations 221.2 6.8 1,086.4 53.1 Disposals –31.5 –12.4 –31.5 –12.4 Reclassification 6.7 3.8 6.7 3.8 Translation difference –23.2 112.8 –106.4 499.2 Closing acquisition value 1,406.4 1,220.2 6,627.7 5,659.6 Opening accumulated amortization and write-downs –736.2 –582.5 –737.0 –583.1 Acquired and divested operations – – – – Amortization for the year –113.0 –106.5 –113.0 –106.5 Disposals 26.7 11.4 26.7 11.4 Reclassification –1.4 –0.7 –1.4 –0.7 Translation difference 10.3 –57.9 10.3 –58.1 Closing accumulated amortization and write-downs –813.7 –736.2 –814.5 –737.0 Net residual value 592.7 484.1 5,813.2 4,922.6 1) 2) 1) Trademarks with indefinite useful life. 2) Customer relations, trademarks with defined useful life, software and leasehold.  Elanders’ Annual and Sustainability Report 2023 Financial reports and notes – Group NOTE 14 – Tangible assets Accounting principles Land, buildings, plant and machinery, equipment, tools, and fixed assets under construction are recorded at acquisition value less accumulated depreciation and write-downs. Acquisition value includes charges that are directly attributable to acquisition of the asset. Additional charges are added to the asset’s carrying amount or are reported as a separate asset only when it is probable that the future economic benefit associated with the asset will accrue to the Group and the asset’s acquisition value can be measured in a reliable manner. All other forms of repairs and maintenance are recorded as costs in the income statement in the period in which they were incurred. Tangible assets are straight-line depreciated over the estimated useful life of the asset. No depreciation on land is made. The useful lives are used to calculate depreciation according to the table to the right. The carrying amount of a tangible asset is derecognized from the statement of financial position upon disposal or sale or when no future economic benefits are expected from use. Capital gains/ losses from the sale of tangible assets are recorded as Other operat- ing income or Other operating expenses. Estimated useful life Buildings 25–30 years Service facilities in buildings 5–15 years Land improvements 20 years Printing presses, offset 7–10 years Printing presses, digital 3–5 years Other mechanical equipment 7–10 years Computer equipment and systems 3–5 years Vehicles 5 years Other equipment 5–10 years Estimations and assessments The useful lives are based upon estimates of the periods during which the assets will generate revenue and are to a large extent based on historical experience of usage and technological develop- ment. The residual value and useful life of tangible assets are tested regularly by management and whenever events or changes in circum- stances indicates that the carrying value may not be recoverable. Land is judged to have indefinite useful life and is not depreciated, but is instead tested at least annually for impairment. NOTE 13 – Intangible assets (cont.) Amortization specified by function in the income statement MSEK 2023 2022 Cost of products and services sold –60.9 –57.1 Selling expenses –45.1 –43.0 Administrative expenses –7.1 –6.4 Total –113.0 –106.5 Intangible assets with indefinite useful life divided by cash generating unit MSEK 2023 2022 Supply Chain Solutions 4,064.6 3,279.2 Print & Packaging Solutions 1,155.9 1,159.3 Total 5,220.5 4,438.5 For further details regarding intangible assets with indefinite useful life see note 2. Elanders’ Annual and Sustainability Report 2023  Financial reports and notes – Group NOTE 14 – Tangible assets (cont.) 1) Equipment, tools, Buildings and land Plant and machinery fixtures and fittings MSEK 2023 2022 2023 2022 2023 2022 Opening acquisition value 543.6 448.0 1,029.5 936.4 1,132.7 932.5 Investments 10.2 15.8 61.0 23.3 65.2 72.8 Acquired and divested operations – – 83.0 – 88.2 21.8 Disposals –3.5 –0.8 –58.1 –18.7 –97.4 –40.6 Reclassification 51.8 32.4 11.5 –0.1 22.9 43.6 Translation difference –10.9 48.2 –5.4 88.5 –21.3 102.6 Closing acquisition value 591.2 543.6 1,121.5 1,029.5 1,190.3 1,132.7 Opening accumulated depreciation and write-downs –317.2 –256.9 –836.4 –738.0 –806.6 –658.7 Acquired and divested operations – – –27.8 – –37.7 –12.4 Depreciation for the year –29.6 –21.9 –56.1 –52.0 –92.7 –98.5 Disposals 3.4 0.5 53.5 16.7 89.2 34.6 Reclassification 0.0 –10.0 –0.1 10.0 1.4 0.7 Translation difference 5.7 –28.8 4.0 –73.0 14.4 –72.2 Closing accumulated depreciation –337.6 –317.2 –862.9 –836.4 –831.9 –806.6 and write-downs Net residual value 253.6 226.5 258.5 193.0 358.4 326.2 Fixed assets under construction Total MSEK 2023 2022 2023 2022 Opening acquisition value 71.9 35.0 2,777.8 2,351.9 Investments 54.3 109.3 190.6 221.1 Acquired and divested operations – – 171.3 21.8 Disposals –3.3 – –162.3 –58.4 Reclassification –101.0 –78.0 –14.9 –3.7 Translation difference 0.9 5.7 –36.7 245.1 Closing acquisition value 22.7 71.9 2,925.9 2,777.8 Opening accumulated depreciation and write-downs – – –1,960.4 –1,653.6 Acquired and divested operations – – –65.4 –12.4 Depreciation for the year – – –178.4 –172.5 Disposals – – 146.1 51.8 Reclassification – – 1.3 0.7 Translation difference – – 24.2 –174.4 Closing accumulated depreciation and write-downs – – –2,032.7 –1,960.4 Net residual value 22.7 71.9 893.3 817.5 2) 1) Buildings and land include land with a book value of MSEK 34.0 (34.8). 2) Fixed assets under construction include advances related to tangible assets of MSEK 22.4 (28.1). There were no significant investment obligations per 31 December 2023 or 2022 .  Elanders’ Annual and Sustainability Report 2023 Financial reports and notes – Group NOTE 15 – Right-of-use assets Accounting principles Leases are recognized in accordance with IFRS 16 Leases, which means that a lessee must, upon the commencement date, recognize a right-of-use asset and a lease liability in the balance sheet. Leases are reported as an asset and a liability as of the date when the leased asset is available for use by the Group. Lease liabilities are recognized at the present value of future lease payments. Each lease payment is divided into amortization of lease liability and financial cost. The financial cost is allocated over the lease term so that each reporting period is charged with an amount corresponding to a fixed interest rate for the liability recognized during each period. Lease payments are discounted with the interest rate implicit in the lease if this rate can easily be determined. Other- wise, the Group’s incremental borrowing rate is applied based on currency and maturity of the contract. The rights-of-use assets are recognized at cost and include initial present value of the lease liability. Restoration costs are included in the asset if a corresponding provision for restoration costs exist. The right-of-use asset is depreciated on a straight-line basis over the shortest of the asset’s useful life and the lease term. Elanders leases mainly comprise of right-of-use assets for prem- ises, machinery and equipment and vehicles. Short-term leases and leases for which the underlying assets is of low value are exempted and is expensed on a straight-line basis in the income statement. Leases of low value mainly include IT-equipment and office equip- ment. A modified future lease contract is not registered as a separate contract but is recognized as a revaluation of the lease liability and a change in the right-of-use asset. Estimations and assessments Essential estimations and assessments made by Group Management are required to determine the value of the right-of-use assets and the present value of the lease liability. Such estimations and ass- umptions include identifying a lease, determining the lease term, and defining the discount rate. The lease term is determined as the non-cancellable period adju- sted for periods that, according to agreement options, can extend or shorten the lease if it is reasonably certain that the option will be exercised. Evaluation of the certainty that the option will be exerci- sed is made by management who consider all available information such as costs for termination and the importance of the asset for the business. Important parameters for determining the discount rate for a lease are the nature and quality linked to the underlying asset in the lease, the duration of the lease and the economic environment in which the asset will be used. The Group’s policy for setting discount rates for leases is based on the incremental borrowing rate for the leases. The incremental borrowing rate is the interest rate that Elan- ders would have paid to borrow the amount required to obtain an asset of comparable value to the right-of-use asset, considered the term of the agreement, country, currency, collateral and credit risk. NOTE 14 – Tangible assets (cont.) Depreciation specified by function in the income statement MSEK 2023 2022 Cost of products and services sold –148.6 –142.6 Selling expenses –4.0 –3.3 Administrative expenses –25.8 –26.5 Total –178.4 – 172.5 Elanders’ Annual and Sustainability Report 2023  Financial reports and notes – Group NOTE 15 – Right-of-use assets (cont.) Buildings and land Plant and machinery MSEK 2023 2022 2023 2022 Opening acquisition value 5,791.0 3,742.0 350.2 272.4 Investments 261.2 1,038.2 18.9 100.8 Acquired and divested operations 700.1 3.3 – – Disposals –292.4 –240.3 –74.3 –36.1 Remeasurement 183.1 791.5 0.4 –11.4 Translation difference –96.6 456.3 1.3 24.5 Closing acquisition value 6,546.5 5,791.0 296.5 350.2 Opening accumulated depreciation and write-downs –1,940.5 –1,349.1 –154.3 –120.3 Depreciation for the year –824.8 –686.4 –60.4 –58.9 Disposals 292.3 240.3 74.5 36.1 Translation difference 40.9 –145.4 –0.4 –11.1 Closing accumulated depreciations and write-downs –2,432.1 –1,940.5 –140.7 –154.3 Net residual value 4,114.4 3,850.5 155.9 196.0 Equipment, tools, fixtures and fittings Total MSEK 2023 2022 2023 2022 Opening acquisition value 309.0 362.8 6,450.5 4,377.3 Investments 65.6 37.5 345.7 1,176.5 Acquired and divested operations 16.9 – 717.0 3.3 Disposals –180.1 –119.1 –546.7 –395.5 Remeasurement –6.0 – 177.4 780.2 Translation difference 2.6 27.9 –92.7 508.6 Closing acquisition value 208.0 309.0 7,051.1 6,450.5 Opening accumulated depreciation and write-downs –203.4 –234.2 –2,298.2 –1,703.6 Depreciation for the year –66.4 –66.8 –951.6 –812.0 Disposals 180.1 115.8 546.9 392.2 Translation difference –3.1 –18.3 37.3 –174.8 Closing accumulated depreciations and write-downs –92.9 –203.4 –2,665.7 –2,298.2 Net residual value 115.1 105.6 4,385.4 4,152.1 Depreciation specified by function in the income statement MSEK 2023 2022 Cost of products and services sold –913.0 –781.3 Selling expenses –14.1 –12.1 Administrative expenses –24.5 –18.7 Total –951.6 –812.0 Expenses recognized in the income statement MSEK 2023 2022 Depreciation right-of-use assets –951.6 –812.0 Interest expenses lease liability –140.7 –107.2 Expenses related to short-term leases and leases with low value –206.0 –152.0 Expenses related to variable leasing fees that is not included in the lease liability –66.6 –61.1 Total –1,364.8 –1,132.4 The total cash flow for leasing contracts amounted to MSEK 1,332 (1,094).  Elanders’ Annual and Sustainability Report 2023 Financial reports and notes – Group NOTE 16 – Financial assets Accounting principles Financial assets have been accounted for in accordance with IFRS 9, Financial Instruments, and can be classified into three different categories; amortized cost, fair value through profit and loss or fair value through other comprehensive income. Financial assets are first recognized at fair value plus transaction costs, except for financial assets that are carried at fair value through the profit and loss. Instead, these assets are first recognized at fair value, while attributable transaction costs are recognized in the income state- ment. Financial assets are recognized in the balance sheet when the Group becomes a party to the commercial terms of the instrument. Financial assets are recorded in the balance sheet until the rights in the contract has been realized or the company no longer has rights to the asset . Acquisitions and disposals of financial assets are reported on the settlement date. The Group recognizes its financial assets primarily at amortized cost, except for derivatives that are carried at fair value through profit and loss. Financial assets measured at amortized cost The Group reports accounts receivable, cash and cash equivalents, other securities and other receivables at amortized cost. These financial assets have the purpose of collecting contractual cash flows and are initially recognized at fair value including transaction costs. The carrying amount of assets is adjusted by any impairment or expected credit losses. Amortized cost is calculated with the help of the compound interest method, which means that premiums or dis- counts together with directly related expenses or income is recorded over the period the contract is valid with the help of the calculated compound interest. The amortized cost is the value generated from a present value calculation with the compound interest rate as the discount factor. Accounts receivable Accounts receivable are initially recognized at the transaction price. Accounts receivable are amounts due from customers for services performed in the ordinary course of business or goods sold. They are generally due for settlement within 30–120 days and classified as current. Cash and cash equivalents Cash and cash equivalents are cash in financial institutions and short-term liquid placements with a term of less than three months. Other securities In May 2022, Elanders’ associated company LOGworks was merged with an external company, ProServ. Elanders previously owned 49 percent of the shares in Logworks. After the merger Elanders owns 14 percent of the shares in the merged company. The remaining shares are controlled by Adecco together with the Michelin Group. The holding is now classified as Other securities and is valued at amortized cost . Long-term receivables, current receivables and other receivables Long-term receivables, current receivables and other receivables, which are financial assets, are categorized as Other receivables. It means that they are recorded at amortized cost. In case the term of a receivable is short, it is recorded at its nominal value without a discount according to the method for amortized cost . Financial assets measured at fair value The Group recognize derivatives identified as hedging instruments to fair value though profit or loss. The derivatives consist of forward exchange contracts and are used for hedging purposes. Valuation at fair value of forward exchange contracts is based on published forward rates on an active market. All derivatives are included in level 2 in the fair value hierarchy. Since all the financial instruments recognized at fair value are included in level 2 there have been no transfers between valuation levels. Derivative instruments Derivative instruments are recorded at their fair value in the balance sheet. Changes in the value of cash flow hedges are reported in particular categories under other comprehensive income until the hedged item is recorded in the income statement. Any result on hedge instruments attributable to the effective part of the hedge are recorded as equity under hedge provisions. Any result on hedge instruments attributable to the ineffective part of the hedge are recorded in the income statement. Estimations and assessments For financial assets measured at amortized cost, the fair value is considered to be equal to the book value. Management continuously assess any need for impairment. The assessment is based on all available information, such as prevailing market conditions, payment patterns, collection measures etc. An allowance for bad debt in respect to expected losses on accounts receivables is maintained. See more information about the provision in note 18, Accounts receivables . Elanders’ Annual and Sustainability Report 2023  Financial reports and notes – Group NOTE 16 – Financial assets (cont.) Financial assets per category 2023 Asstes valued to fair value Assets valued to through Whereof MSEK amortized cost profit & loss Total short-term Accounts receivable 2,037.9 – 2,037.9 2,037.9 Cash and cash equivalents 1,106.6 – 1,106.6 1,106.6 Other securities 56.3 – 56.3 – Hedging derivatives – 0.0 0.0 0.0 Other receivables 92.9 – 92.9 81.6 Closing balance 3,293.7 0.0 3,293.7 3,226.1 Financial assets per category 2022 Asstes valued to fair value Assets valued to through Whereof MSEK amortized cost profit & loss Total short-term Accounts receivable 2,139.2 – 2,139.2 2,139.2 Cash and cash equivalents 904.0 – 904.0 904.0 Other securities 56.5 – 56.5 – Hedging derivatives – 0.1 0.1 0.1 Other receivables 74.2 – 74.2 64.6 Closing balance 3,173.9 0.1 3,174.0 3,107.9 Interest income from financial assets amounted to MSEK 14.3 (3.3) . NOTE 17 – Inventory Accounting principles Inventory is recognized at the lower of acquisition value and net realizable value. Acquisition value is calculated in accordance with the first-in, first-out method (FIFO) or weighted average prices. Acquisition value includes the cost of materials, direct labor costs and overhead charges involved in production of the goods. Net reali- zable value is the calculated sales value less sales expenses. Estimations and assessments Adjustments to net realizable value also include estimates of technical and commercial obsolescence on an individual subsi- diary basis. Commercial obsolescence is assessed by the rate of turn over and ageing as risk indicators. MSEK 2023 2022 Raw materials and consumables 197.7 431.9 Work in process 27.8 33.1 Finished goods 123.6 153.9 Closing balance 349.1 618.9 Costs relating to obsolescence expensed during the year amounted to MSEK 10.7 (6.4) and at year-end the obsolescence reserve was MSEK 18.6 (14.0).  Elanders’ Annual and Sustainability Report 2023 Financial reports and notes – Group NOTE 18 – Accounts receivables Accounting principles Accounts receivable are initially recognized as amortized cost which is the amount expected to be collected, after deduction of provision for expected credit losses. Accounts receivable are normally due to payment within 30–120 days and are classified as currect assets. The Group holds the trade receivables with the objective to collect the contractual cash flows and therefore measures them subsequently at amortized cost. In compliance with IFRS 9 Financial Instruments, Elanders applies a simplified impairment model for trade receivables, whereby the expected credit loss is recognized for the estimated remaining life- time of the receivable. The Group uses factoring, which means that certain accounts receivable are transferred to a factoring company in exchange for cash. With the transfer to the factoring company, the credit risk also transitions, and the Group is therefore not reporting the transferred assets in the balance sheet. Estimations and assessments Provisions are made for bad debts when losses are feared. It arises in the case when it is assessed that customers cannot settle their debts. The assessment is based on aging analysis of the receivables and impairment history of customers with similar characteristics. Current market conditions and each customer’s creditworthiness are also taken into account . Accounts receivable – aging report MSEK 2023 2022 Not overdue 1,618.8 1,784.3 1–30 days overdue 343.8 279.1 31–60 days overdue 45.8 46.7 61–90 days overdue 19.4 20.2 91–120 days overdue 18.9 13.9 More than 120 days overdue 17.8 17.1 Provisions doubtful accounts –26.5 –22.0 Total 2,037.9 2,139.2 Accounts receivables amounting to MSEK 10.3 (9.0) are overdue with more than 90 days without any identified need for write-down. The receivables refer to customers without any history of payment difficulties. The Group’s total credit line for factoring amounted to MSEK 502.1 (556.4) of which MSEK 196.3 (275.5) was unutilized as of December 31, 2023. Change in provision for doubtful receivables MSEK 2023 2022 Opening balance –22.0 –27.8 Provision in acquired operations –0.6 0.0 Reversal of provision from previous year 10.1 6.2 Utilized provisions for confirmed losses 15.6 20.1 Provisions during the year –30.1 –17.9 Translation difference 0.6 –2.6 Closing balance –26.5 –22.0 Elanders’ Annual and Sustainability Report 2023  Financial reports and notes – Group NOTE 20 – Cash and cash equivalents MSEK 2023 2022 Cash and bank 1,106.6 904.0 Cash and cash equivalents 1,106.6 904.0 Cash and cash equivalents are cash in financial institutions and short- term liquid placements with a term of less than three months. The closing balance as of December 31, 2023 include translation differences in cash and cash equivalents of MSEK –34.5 (72.5) as well as MSEK 12.2 (12.8) that is not available for use by the Group. NOTE 21 – Share capital Number of registered shares in the parent company 2023 2022 Issued as of 1 Jan. 35,357,751 35,357,751 Issued as of per 31 Dec. 35,357,751 35,357,751 Number Number Share 2023 of shares of votes capital, SEK A shares 1,814,813 18,148,130 18,148,130 B shares 33,542,938 33,542,938 335,429,380 Total 35,357,751 51,691,068 353,577,510 All shares are completely paid for. No shares are reserved for transfer according to option agreements or other contracts. The shares’ quota value is SEK 10. NOTE 19 – Prepaid expenses and accrued income MSEK 2023 2022 Services performed, not invoiced 127.7 195.2 Prepaid insurance expenses 13.1 9.0 Prepaid IT expenses 25.7 16.2 Prepaid leasing expenses 49.4 33.6 Other prepaid expenses 84.4 75.1 Other accrued income 47.4 67.8 Total 347.7 396.9  Elanders’ Annual and Sustainability Report 2023 Financial reports and notes – Group NOTE 22 – Financial liabilities Accounting principles Financial liabilities are recognized at amortized cost or fair value in accordance with IFRS 9. A financial liability is recorded in the balance sheet when Elanders becomes a party in the instrument’s contractual conditions. A financial liability is derecognized from the balance sheet when the rights in the contract are realized . Financial liabilities are valued the first time at fair value plus transaction costs, which applies to all financial liabilities not recognized at fair value through profit or loss. Financial liabilities recognized at fair value through profit or loss are valued the first time at fair value, while attributable transaction costs are valued through profit or loss. Financial liabilities measured at amortized cost Lease liabilities Lease liabilities are recognized as the present value of future lease payments. Each payment is divided between amortization of the lease liability and a financial cost. The financial cost is allocated over the lease term so that each reporting period is charged with an amount corresponding to a fixed interest rate for the liability recog- nized during each period. Lease payments are discounted with the interest rate implicit in the lease if this rate can easily be determined. Otherwise, the Group’s incremental borrowing rate is applied based on currency and maturity of lease contracts. Other financial liabilities Accounts payable and liabilities to credit institutions are categorized as Other financial liabilities and recognized at amortized cost. Due to their expected short duration, accounts payable are recorded at their nominal value without a discount. Liabilities to credit institu- tions and directly related expenses such as arrangement fees are distributed throughout the period of the loan with the help of the compound interest method. Financial liabilities are classified as short-term, unless the Group has an unconditional right to postpone the payment of the debt for at least 12 months after the end of the reporting period. Financial liabilities measured at fair value Contingent considerations and mandatory put/call options are measured at fair value within level 3, which means that valuation has been made based on inputs that are not observable in the market. Contingent considerations Contingent considerations are recognized as financial liabilities and at fair value on the acquisition date. Contingent considerations are remeasured at each reporting period with any change recognized in profit or loss for the year. Mandatory put/call options Mandatory put/call options related to acquisitions of non-controlling interests are initially recognized as a financial liability at the present value of the strike price applicable at the period where the option can first be exercised. Changes in fair value for these liabilities are recognized in equity . Hedge accounting Financial instruments used to hedge currency risks in contracted cash flows as well as net investments abroad have been recorded at market value in the balance sheet. Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic assessments to ensure that an economic relationship exists between the hedged item and hedging instrument. For hedges of foreign currency, the Group enters into hedge relationships where the critical terms of the hedging instrument match with the terms of the hedged item. Therefore, the Group performs a qualitative assessment of effectiveness. Hedges of net investments in foreign subsidiaries are recorded in the same way as cash flow hedges, with the exception that any effects from the hedge is recorded in the translation reserve . Estimations and assessments Regarding financial liabilities measured at amortized cost, the fair value is considered to be equal to the book value. Contingent considerations and mandatory put/call options related to non-controlling interests are measured starting from the terms of the purchase agreement and shareholder agreement, discounted to the balance sheet date. The key parameter in the valuation is the de- velopment of results until the estimated maturity date. Measurement of contingent considerations takes into account the present value of expected payments, discounted with a risk-adjusted interest rate. Different possible scenarios for forecast results are also considered to assess the size of the expected payments and the probability of these . Elanders’ Annual and Sustainability Report 2023  Financial reports and notes – Group NOTE 22 – Financial liabilities (cont.) Long-term financial liabilities 2023 2022 Carrying Fair Carrying Fair MSEK amount Value amount Value Other interest bearing liabilities Bank loan (EUR) 1,109.6 1,027.8 1,112.8 1,059.1 Bank loan (USD) 933.9 840.9 1,095.9 1,017.8 Bank loan (GBP) 847.8 766.2 – – Revolver credit facility (EUR) 699.0 699.0 923.7 923.7 Contingent consideration 382.4 382.4 52.8 52.8 Mandatory put/call options 20.8 20.8 479.8 479.8 Other interest bearing liabilities 3.2 3.2 2.1 2.1 Lease liabilities 3,608.2 3,608.2 3,484.6 3,484.6 Closing balance 7,604.7 7,348.3 7,151.8 7,019.9 Part of the long-term loan has been designated as hedge instrument in net investment hedges of foreign operations. More information regarding financial risk management and hedge accounting can be found in Note 24. Short-term financial liabilities 2023 2022 Carrying Fair Carrying Fair MSEK amount Value amount Value Other interest bearing liabilities Bank loan (USD) 120.5 117.4 125.2 123.4 Bank loan (GBP) 12.8 12.1 – – Contingent consideration 49.9 49.9 – – Mandatory put/call options 478.4 478.4 1.5 1.5 Other interest bearing liabilities 21.7 21.7 23.1 23.1 Lease liabilities 938.2 938.2 801.2 801.2 Accounts payable 673.3 673.3 892.5 892.5 Other financial liablities 132.5 132.5 54.2 54.2 Closing balance 2,427.2 2,423.5 1,897.7 1,895.9 As of December 31, 2023, the Group’s total credit lines amounted to MSEK 5,656.2 (4,128.9), of which MSEK 1920.5 (904.6) was unutilized. In addi- tion to these, the Group also has a factoring facility of MEUR 50, of which MEUR 19.5 (24.7) was unutilized as of December 31, 2023. The financing cost is priced according to a fixed interest term and an agreed margin. The Group’s average effective interest rate during the year was 4.6 (2.9) percent. Interest expenses from financial liabilities amounted to MSEK 339.9 (185.8). The reason why interest expenses differ from total interest expense in the income statement is that financial items related to pensions have been excluded .  Elanders’ Annual and Sustainability Report 2023 Financial reports and notes – Group NOTE 22 – Financial liabilities (cont.) Due date structure regarding financial liabilities Due date structure regarding financial liabilities including interest expenses is presented in the table below. The amounts are future undiscounted cash flows and the amounts were calculated based on the interest rate and exchange rate at the balance sheet date. For all loans in the table, the year in which the Group is obliged to repay the loans at the earliest is given. Jan.–Mar. Apr.–Dec. 2029 and MSEK 2024 2024 2025–2028 later Bank loans 86.4 268.9 3,904.6 – Contingent consideration – 49.9 382.4 – Mandatory put/call options – 478.4 20.8 – Other interest bearing liabilities 21.7 – 3.2 – Lease liabilities 296.7 763.2 2,786.1 1,197.5 Accounts payable 673.3 – – – Other financial liablities 132.5 – – – Total 1,210.6 1,560.5 7,097.1 1,197.5 Contingent considerations and mandatory put/call options Contingent Mandatory considerations put/call options MSEK 2023 2022 2023 2022 Opening balance 52.8 30.7 481.3 331.6 Acquisitions for the year 382.4 – – – Changes in value recognized in the income statement 14.4 18.5 – – Changes in value recognized in equity – – 38.2 107.9 Payments –17.2 – –1.2 –0.8 Reclassifications – – – –4.3 Translation differences –0.1 3.6 –19.1 46.9 Closing balance 432.3 52.8 499.2 481.3 In the comparison year promissory notes against the sellers have been reported net with the mandatory put/call option. Elanders’ Annual and Sustainability Report 2023  Financial reports and notes – Group NOTE 24 – Financial risk management NOTE 23 – Net debt Provisions Other for post- interest- Cash and cash Lease employment bearing MSEK equivalents liabilities benefits liabilities Total Net debt as of Jan 1, 2023 –904.0 4,285.8 77.5 3,817.0 7,276.4 Acquired and divested operations – 628.5 – 397.7 1,026.2 Changes with effect on cash-flow –236.7 –919.2 –3.6 542.4 –617.0 Changes with no effect on cash-flow – 608.4 –3.0 51.3 656.7 Translation difference 34.1 –57.2 0.4 –128.5 –151.3 Net debt as of Dec 31, 2023 –1,106.6 4,546.4 71.3 4,680.0 8,191.1 Provisions Other for post- interest- Cash and cash Lease employment bearing MSEK equivalents liabilities benefits liabilities Total Net debt as of Jan 1, 2022 –898.1 2,754.8 98.6 3,293.4 5,248.8 Acquired and divested operations – 10.8 – – 10.8 Changes with effect on cash-flow 66.6 –773.9 –3.0 12.3 –697.9 Changes with no effect on cash-flow – 1,951.4 –24.4 122.8 2,049.8 Translation difference –72.5 342.6 6.3 388.5 664.9 Net debt as of Dec 31, 2022 –904.0 4,285.8 77.5 3,817.0 7,276.4 Financial goals regarding capital structure The major financial goal of Elanders is to create value for the owners of the company. The purpose of the goals regarding group capital structure are to ensure the company’s ability to continue operations and gener- ate returns to its share holders as well as be useful to other interested parties. Achieving a good balance between equity and loan financing ensures the flexibility the Group needs in order to be able to invest in operations while maintaining control over the cost of capital. Dividends to share holders, redemption of shares, issuing new shares or divesting assets are examples of measures the Group can use to adjust its capital structure. Elanders has the goal of net debt in relation to EBITDA as a maximum of 2.5 times. As of 31 December 2023, this quota was 4.2 (3.7) times. Financial risk management The major purpose of group financial risk management is to identify, control and minimize the Group’s financial risks. Risk management is centralized to Group Finance. Financial risks in the Group’s subsidiaries are managed by Group Finance that also acts as an internal bank. The exception is commercial credit risks, which are handled by each sub- sidiary. The financial policy adopted by the Board steers which currency risks are hedged as well as how interest, financing and liquidity risks are handled. The greatest financial risks the Group is exposed to are currency risk, interest risk, financing risk and credit risk. Currency risk Elanders runs into a currency risk primarily through trans actions in another currency than that of the company’s local currency (transaction exposure) and when converting net profit and net assets from foreign subsidiaries (translation exposure). Transaction exposure Actual receivables and payables along with contracted purchase and sales orders with payment flows within a twelve-month period are hedged to some extent. Anticipated or budgeted flows are not hedged. The Group uses forward exchange contracts to handle exchange risk exposure and hedge accounting for con tracted future payment flows as well as translation of financial assets and liabilities. The hedge reserve for forward exchange contracts per 31 December 2023 amounted to MSEK 0.1 (0.1) and will be returned to the income statements in 2024. Translation differences on operating receivables and payables as well as forward exchange contracts that are held for hedging purposes are reported as other operating income or expenses. Translation differences on financial liabilities and assets and the associated hedging instruments are reported under financial items. Translation exposure Financial assets and liabilities in other than the company’s local currency are hedged, while exposures attributable to the translation of net income in foreign subsidiaries are not hedged for foreign exchange rates. Elanders’ results from foreign subsidiaries in foreign currency consist primarily of EUR and USD and the Group result is sensitive to fluctuation in these currencies. Below is an analysis of how a positive or negative change of 10 percent of the average exchanges rates on these currencies should have affected the Group net sales and operating result in 2023 .  Elanders’ Annual and Sustainability Report 2023 Financial reports and notes – Group NOTE 24 – Financial risk management (cont.) Estimated effect from changes in exchange rates by 10% Operating Result MSEK Net sales result before tax EUR +/– 810 +/– 43 +/– 26 USD +/– 470 +/– 30 +/– 17 EUR & USD +/– 1,280 +/– 73 +/– 43 In regards to net assets in foreign subsidiaries the exposure is primarily in EUR, USD and GBP. Hedging of the net investments made in foreign subsidiaries has partly been made regarding the operations in Germany, the USA, Singapore and the UK through loans in EUR, USD and GBP. If the exchange rates in EUR and USD changed by 10 percent it would af- fect equity by MSEK 312 (349), including the above described hedging. Hedge Accounting Financial instruments used to hedge currency risks in contracted cash flows as well as net investments abroad have been recorded at market value in the balance sheet. Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic assessments to ensure that an economic relationship exists between the hedged item and hedging instrument. For hedges of foreign currency, the Group enters into hedge relationships where the critical terms of the hedging instrument match with the terms of the hedged item. The Group there- fore performs a qualitative assessment of effectiveness. Currency hedges The table below shows a compilation over the Group’s outstanding forward exchange contracts per 31 December 2023. All the contracts are due within a year. The nominal amount refers to hedged currency translated to SEK. Nominal amount Average Currencies MSEK hedging rate SEK/EUR 389.1 11.06 GBP/SEK 46.3 12.73 EUR/PLN 27.5 4.49 USD/SEK 20.6 9.99 USD/PLN 0.8 4.03 USD/GBP 4.4 0.78 GBP/PLN 0.1 5.01 Interest risk Interest risk is defined as the risk of lower profits caused by a change in interest rates. The Group strives to achieve a balance between cost efficient borrowing and the risk exposure if a sudden, substantial inter- est rate change should occur and negatively influence profits and cash flow. Elanders strives to have an even spread of maturities and all of its borrowings has variable interest rates. Elanders reference interest is Euribor, SOFR and SONIA. If there is a change in market interest rates by one percentage unit (on the utilized credit facilities at year end, which are covered by the agree- ment with the Group’s main banks), the Group’s profit after tax would have been affected by approximately MSEK 38 (31). The following table presents the allocation of interest-bearing and non-interest-bearing financial assets and liabilities. Reserves for pensions have been included in interest-bearing liabilities. Floating Non-interest- MSEK interest bearing Other securities – 56.3 Long-term receivables – 11.3 Current receivables – 2,119.6 Cash and bank 1,106.6 – Long-term liabilities –7,676.1 – Current liabilities –1,621.5 –303.1 Total –8,191.0 1,884.1 Financing/liquidity risk Financing/liquidity risk is defined as the risk of not being able to meet payment obligations as a result of insufficient liquid funds or difficulties in finding financing. The credit facility agreement with the Group’s main banks has been renewed and a cooperation has been initiated with SEK, the Swedish Export Credit Corporation. The new agreement includes the possibility of an acquisition loan of GBP 115 million to finance the acquisition of Bishopsgate and Kammac. At the same time, the revolving credit facility has also been increased by EUR 20 million. The renewed agreement runs until July 2026. Linked to the Group’s interest-bearing liabilities is a financial covenant regarding the net debt in relation to EBITDA. As of December 31, 2023, this covenant was fulfilled with a good margin. See Note 22 on page 85 concerning due date structure regarding financial liabilities. Credit risk Credit risk is defined as the risk of a counterparty not meeting their obligations. Credit risk can be divided into financial credit risk and com- mercial credit risk. Financial credit risk The most crucial financial credit risk for the Group arises when trading exchange derivative instruments and investing surplus liquidity. Hence, in order to reduce the risk, the financial policy stipulates that only coun- terparts that have been approved by Group Finance should be used. On 31 December 2023 total exposure regarding financial credit risks was MSEK 1,188 (969). The exposure is based on the recorded value of all financial assets except shareholdings and accounts receivable. Commercial credit risk The commercial credit risk consists of the payment ability of customers and is handled by the subsidiaries through careful monitoring of payment ability, follow up of customers’ financial reports and good communica- tion. The Group’s total credit risk is spread out over many different com- panies. However, in actuality a few customers represent a large part of the Group’s accounts receivable. These customers are for the most part large, listed companies that have been thoroughly investigated. The total commercial credit exposure is equivalent to the book value of accounts receivable and amounted to MSEK 2,038 (2,139) per 31 December 2023. In 2023 credit losses amounted to MSEK 16 (8). Operational risks In addition to the financial risks above Elanders is exposed to risks tied to daily operations. Handling operational risks is part of the day-to-day work in our subsidiaries and in Group Management. In terms of responsi- bility all group operations are represented in Group Management which meets and communicates on a regular basis. For a further description of Elanders’ operational risks, see page 48. Elanders’ Annual and Sustainability Report 2023  Financial reports and notes – Group NOTE 25 – Provisions for post-employment benefits Accounting principles Defined benefit pension plans Defined benefit pension plans mainly cover retirement pensions and widow pensions where the employer has an obligation to pay a lifelong pension corresponding to a certain guaranteed percentage of wages or a certain annual sum. Retirement pensions are based on the number of years a person is employed. The employee must be registered in the plan for a certain number of years in order to receive full retirement pension. For each year at work the employee earns an increasing right to pension, which is recorded as pension earned during the period as well as an increase in pension obliga- tions. These plans are financed through payments made regularly by the employer. The liability reported in the balance sheet referring to defined benefit plans is equivalent to the defined benefit plan obligation on the balance sheet date less the fair value of plan assets. Actuarial changes are recorded within other comprehensive income. Defined contribution plans In the case of defined contribution plans the company pays a fixed fee to a separate, independent legal entity and is not obligated to pay further fees. Group payments for defined contribution plans are recorded as an expense as they are earned, which is normally the same period the premium is paid. These plans mainly cover retire- ment, sick and family pensions. The premiums are paid regularly during the year by individual group companies to different insurance companies. The premium payments are based on the individuals’ wages and salaries. In the Elanders Group there are a number of employees that have defined benefit ITP plans in Alecta, which are classified as defined benefit multi-employer pension plan. This means that a company must report their proportional share of the defined benefit pension obligation and the plan assets and expenses that are connected to this pension plan. Since Alecta cannot provide the necessary information, these pension obligations are recognized as defined contribution pension plans according to point 34 in IAS 19. Estimations and assessments Actuarial assumptions are used to measure pension obligations and they significantly affect the recognized net liability and the annual pension cost. The actuarial valuations includes assumptions for discount rates, future salary increases, life expectancy and expected inflation. The discount rate is essential for the measurement of both the pension expense of the year and the present value of the defined-benefit obligations in the current year. The discount rate is used both for calculating the present value of the obligation and as an estimate for the return on the plan assets. The discount rate is based on the anticipated returns from a typi- cal high-quality company euro bond. NOTE 24 – Financial risk management (cont.) Sensitivity analysis The table below presents how group results after tax would have been affected by a change of one percentage in the variables connected to Elanders various operational risks. Each variable has been treated individually under the condition that the others remain constant. It is assumed that a change in net sales will affect the value added on the margin which there after will presumably fall straight through the income statement. A change in personnel costs is multiplied with total person- nel costs. A change in material costs is multiplied with the total costs of material and is not assumed to be able to be charged from the customer. The analysis does not pretend to be exact. It is merely indicative and aims to show the most relevant, measurable factors in this connection. The figures are presented in MSEK. • Net sales +/– 58 • Personnel cost +/– 28 • Cost of material +/– 19  Elanders’ Annual and Sustainability Report 2023 Financial reports and notes – Group NOTE 25 – Provisions for post-employment benefits (cont.) Defined benefit pension plans The fair value of the plan assets in the Elanders’ defined benefit pen- sion plans amounted to MSEK 23.1 (23.2) as of 31 December 2023 and the present value of the pension obligations amounted to MSEK 94.3 (100.7). The defined contribution plans are mainly attributable to the operations in Germany. The actuarial measurement of pension obligations and costs for defined benefit plans are based on the following actuarial significant assumptions: Percent 2023 2022 Discount rate, % 3.60 3.15 Expected return on plan assets, % 3.60 3.15 Provisions for post-employment obligations Funded Unfunded MSEK plans plans Total Present value of post- employment obligations 78.0 16.4 94.3 The fair value of plan assets –23.1 – –23.1 Provision for post- employment obligations 54.9 16.4 71.3 according to the balance sheet Change in current value of the post-employment obligations MSEK 2023 2022 Opening balance 100.7 121.7 Interest expense 3.4 1.8 Actuarial gains(–)/losses(+), net –5.2 –22.8 Current year service cost 0.1 0.3 Pensions paid out –5.0 –4.2 Translation difference 0.3 3.9 Closing balance 94.3 100.7 Change in plan assets fair value MSEK 2023 2022 Opening balance 23.2 23.1 Return on plan assets 0.7 0.2 Disbursement –0.7 –0.7 Actuarial gains(–)/losses(+), net –0.1 –1.2 Translation difference –0.1 1.8 Closing balance 23.1 23.2 Net expense recognized in the income statement regarding defined benefit plans MSEK 2023 2022 Current year service cost 0.1 0.3 Interest expense 3.4 1.8 Return on plan assets –0.7 –0.2 Total 2.8 1.9 Defined contribution pension plans The pension costs for the current period are included in the income statement and amount to MSEK 55.7 (52.7). The obligations for retire- ment and sick pensions for white-collar workers for several of the Swed- ish companies have been safe guarded through an insurance in Alecta. The payments for pension insurances to Alecta totaled MSEK 1.0 (1.8) in 2023. For 2024, no significant changes are expected regarding the total costs for pension insurance from Alecta. Elanders’ Annual and Sustainability Report 2023  Financial reports and notes – Group NOTE 26 – Other provisions Accounting principles Provisions are recorded in the balance sheet when the company has a formal or informal obligation as a result of a past event and it is likely that an outflow of resources will be necessary to resolve the obligation and a reliable estimation of the amount can be made. Provisions are recognized as the present value of future expected expenses to settle the commitment. Estimations and assessments In determining the existence and amount of provisions, significant assessments by management are required. Amounts recognized as a provision are the best estimate of the remuneration required to settle the current obligation at the end of the reporting period, tak- ing into account the risks and uncertainties surrounding the obliga- tion. The Group’s most significant provisions relate to restructuring, damages to goods and restoration costs. – Restructuring costs relates to cost for discontinuing parts of the road transportation operations in Germany. These costs relate to termination wages, provision for onerous contracts as well as remaining rental costs for existing premises. – Damages to goods include both damage occured during handling of goods as well as other possible damage in deliveries such as on fork lifts and buildings. Provisions for damages are made after an invoice has been received or an agreeement has been concluded with the customer or supplier. – Provision for restoration costs refers to estimates for restoring leased premises to their original condition. Provision for Restructuring damages to Restoration MSEK costs goods etc. costs Other Total Opening balance as of 1 Jan. 2023 50.2 50.9 72.4 30.4 203.8 Acquired operations – – 80.5 0.1 80.6 Provided for during the year 6.5 15.3 40.7 27.4 89.9 Utilized during the year –19.8 –12.9 –10.8 –17.5 –61.0 Reversal of unutilized amounts –31.3 –15.1 –10.1 –3.6 –60.1 Translation difference 1.3 0.3 –3.8 –0.9 –3.1 Closing balance as of 31 Dec. 2023 7.0 38.4 168.9 35.8 250.2 Of which: Current 7.0 38.4 64.7 29.0 139.2 Non-current – – 104.2 6.7 111.0 Provision for Restructuring damages to Restoration MSEK costs goods etc. costs Other Total Opening balance as of 1 Jan. 2022 7.7 67.7 53.6 29.0 158.1 Acquired operations – – 2.5 – 2.5 Provided for during the year 47.8 28.3 51.2 21.0 148.2 Utilized during the year –7.9 –23.0 –31.8 –18.1 –80.7 Reversal of unutilized amounts – –26.9 –8.7 –4.5 –40.1 Translation difference 2.5 4.8 5.6 3.0 15.9 Closing balance as of 31 Dec. 2022 50.2 50.9 72.4 30.4 203.8 Of which: Current 50.2 50.9 44.9 23.4 169.3 Non-current – – 27.5 6.9 34.4  Elanders’ Annual and Sustainability Report 2023 Financial reports and notes – Group NOTE 27 – Accrued expenses and deferred income MSEK 2023 2022 Holiday pay liability 66.1 62.2 Social security contributions 53.5 44.0 Accrued salaries and remuneration 187.7 205.5 Accrued expenses for services and goods received 389.0 432.1 Other accrued expenses and deferred income 173.2 149.2 Closing balance 869.4 893.0 NOTE 28 – Pledged assets and contingent liabilitie s Accounting principles A contingent liability is recognized when there is a potential or actual obligation arising from events that have occurred that is not recognized as a liability or provision, either because it is improbable that an outflow of resources will be required to settle the obligation or because the amount cannot be calcula- ted in a reliable manner. Pledged assets MSEK 2023 2022 Floating charges 119.3 119.3 Other pledged assets – 18.5 Total 119.3 137.8 Whereof pledged to: – credit institutions 119.3 137.8 Other pledged assets refer primarily to collateral in the form of shares in subsidiaries. The item also includes leased assets held under a retention of title clause. Contingent liabilities MSEK 2023 2022 Contingent liabilities 0.2 0.2 Total 0.2 0.2 NOTE 29 – Transactions with related parties The transactions between subsidiaries have taken place with normal business terms and at market prices. During the year intra-group sales of products and services amounted to MSEK 5,869 (5,738). Intra-group transactions and balances have been eliminated and are therefore not included in the figures concerning the Group. Sales of products and services During 2023 and 2022 there have not been any sales of products and services to related parties. Purchase of products and services Erik Gabrielson, who is member of the Board, is partner in Vinge Law Firm that during the year has provided legal counsel and invoiced fees amounting to MSEK 0.4 (0.4). The Group leases properties in two subsidiaries, where the proper- ties are wholly or partly owned by minority shareholders within the Elanders Group. No board member or senior officer has or has had direct or indirect participation in any business transactions between themselves and the Group that were of unusual nature. Remuneration to Board members and management is reported in note 5. All transactions have been on normal business terms and at market prices. Elanders’ Annual and Sustainability Report 2023  Financial reports and notes – Group NOTE 30 – Acquired and divested operations Accounting principles Elanders applies IFRS 3 Business Combinations in connection with acquisitions. All business combinations are accounted for in accor- dance with the acquisition method. This means that acquired identi- fiable assets, liabilities and contingent liabilities are recorded at fair value based on the date of acquisition. The surplus arising when the acquisition cost exceeds the fair value of the acquired identifiable assets, net, is recorded as goodwill. If the acquisition price is lower than the fair value of the acquired subsidiary’s net assets, the differ- ence is recorded directly in the income statement. Companies acquired in the current year are included in group ac- counting from the acquisition date. Divested companies are included in group accounting up until the divestiture date. Additional considerations are recorded as financial liabilities until they are settled. The revaluation of additional considerations is rec- ognized in profit or loss. All acquisition costs are expensed. Estimations and assessments If an acquisition does not relate to 100% of a subsidiary, a non- controlling interest will arise. In cases where the holder of the remaining interest has an option to sell it to Elanders, or Elanders has an obligation to buy, Elanders considers 100% of the subsidiary to have been acquired at the time of acquisition. This also means that a liability equivalent to the present value of the estimated future purchase price is recognized. Consequently, no non-controlling inter- est is recognized with this type of acquisition transaction. Acquisitions during the year In November 2023, Elanders acquired all the shares in Kammac Ltd (“Kammac”). Kammac is a fast-growing company that in the last twelve- month period had net sales of more than GBP 90 million with very good profitability. Kammac is part of the business area Supply Chain Solutions and was consolidated into the Group per November 2023. Since the acquisition, the company has contributed to Group net sales by 184 MSEK. The initial valuation, including the additional consideration, amounts to just over GBP 100 million on a cash- and debt-free basis, of which around two thirds affected cash flow negatively in the fourth quarter 2023. The additional consideration will be paid during the second quarter 2025 and is based on the outcome of 2024. The acquisition-related costs were around SEK 20 million. The purchase price allocation is preliminary. Net assets acquired consists of: Recorded Acquired Adjustments value in MSEK book value to fair value the Group Customer relations – 220.4 220.4 Property, plant and equipment 105.8 – 105.8 Property, plant and equipment 620.3 – 620.3 Current receivables 341.8 – 341.8 Property, plant and equipment 1.3 – 1.3 Cash and equivalents 56.8 – 56.8 Property, plant and equipment –620.3 – –620.3 Liabilities –269.2 –55.4 –324.7 Net assets acquired 236.5 165.0 401,5 Goodwill 864.3 Total 1,265.8 Less: – unpaid purchase price –395.9 – cash and cash equivalents in acquired operations –56.8 Negative effect on cash and cash equivalents for the Group 813.1  Elanders’ Annual and Sustainability Report 2023 Financial reports and notes – Group NOTE 31 – Events after the balance sheet date In February 2024, Elanders signed an agreement to acquire almost 90% of the shares in the English company Bishopsgate Newco Ltd (“Bishops- gate”). The company is a leading actor in the UK in special transporta- tion, installation, and configuration of advanced technical equipment. Bishopsgate has around 250 employees and had sales of MGBP 27 during the last twelve months with very good profitability. The purchase price for the shares amounts to MGBP 42 on a cash- and debt-free basis, and will be charged to cash flow during the first quarter of 2024. The company will be consolidated in the Elanders Group as of February 2024. The acquisition is conditional on the fulfillment of customary contrac- tual terms and is expected to be closed within a couple of weeks. The financing consists in part by an acquisition loan of MGBP 115 from the Group’s three main banks in cooperation with SEK, the Swedish Export Credit Corporation. This loan will also finance parts of Elanders’ acquisi- tion of Kammac Ltd. The acquisition-related costs for advisors etcetera are estimated to approximately MSEK 20. Apart from what has been presented above and in this report in general, no other significant events have occurred after the balance sheet date up to the date of signature of this report. NOTE 30 – Acquired and divested operations (cont.) Acquisitions during 2022 In July 2022, Elanders acquired all the shares in the British Bonds World- wide Holdings Limited with its subsidiaries Bonds Worldwide Express Limited and Bonds Technical Couriers Limited (together “Bonds”). The purchase price allocation is now final, and no changes have been made to the initial one. Elanders’ Annual and Sustainability Report 2023  Financial reports and notes – Parent company Statements of comprehensive income MSEK 2023 2022 Result for the year 278.6 –23.6 Other comprehensive income – – Total comprehensive income for the year 278.6 –23.6 Income statements MSEK Note 2023 2022 Net sales 47.5 45.3 Selling expenses –12.4 –14.2 Administrative expenses 2 –75.1 –86.6 Other operating income 3 7.0 5.1 Operating result 4, 7 –33.0 –50.5 Result from shares in subsidiaries 275.5 30.4 Interest income 211.2 154.6 Other financial income 133.5 302.1 Interest expenses –191.5 –75.1 Other financial expenses –115.9 –398.7 Result after financial items 5 279.8 –37.3 Taxes 6 –1.2 13.7 Result for the year 278.6 –23.6  Elanders’ Annual and Sustainability Report 2023 Financial reports and notes – Parent company Cash flow statements MSEK Note 2023 2022 Operating activities Result after financial items 279.8 –37.3 Adjustments for items not included in cash flow from operating activities 15 –398.2 163.0 Paid taxes –0.1 – Cash flow from operating activities before changes in working capital –118.5 125.7 Cash flow from changes in working capital Increase (–)/decrease (+) in operating receivables 33.1 –43.0 Increase (+)/decrease (–) in operating liabilities 4.8 11.2 Cash flow from operating activities –80.7 93.9 Investing activities Acquisition of tangible assets and intangible assets 10, 11 –1.3 –1.4 Acquisition of subsidiaries 9 –222.2 – Received dividends from subsidiaries 15 299.4 30.4 Lending to and from subsidiaries –362.7 –28.9 Cash flow from investing activities –286.8 0.1 Financing activities Amortization of loans 13 –126.3 –123.1 New loans 13 884.7 – Other changes in interest-bearing liabilities 13 –197.0 138.4 Dividend to parent company shareholders –146.7 –127.3 Cash flow from financing activities 414.7 –112.0 Cash flow for the year 47.2 –18.0 Cash and cash equivalents at the beginning of the year 281.0 299.0 Cash and cash equivalents at year-end 328.2 281.0 Elanders’ Annual and Sustainability Report 2023  Financial reports and notes – Parent company Balance sheets MSEK Note 2023 2022 Assets Fixed assets Intangible assets 10 2.1 1.5 Tangible fixed assets 11 0.3 0.4 Shares in subsidiaries 9 2,277.9 2,079.6 Receivables from group companies 3,371.3 3,140.0 Deferred tax assets 6 112.9 114.0 Other financial assets 0.0 0.0 Total fixed assets 5,764.5 5,335.6 Current assets Receivables from group companies 181.6 167.6 Other receivables 1.8 1.5 Prepaid expenses and accrued income 29.8 17.1 Cash and bank balances 328.2 280.9 Total current assets 541.4 467.1 Total assets 6,305.9 5,802.6 Equity, provisions and liabilities Equity Share capital 353.6 353.6 Statutory reserve 332.4 332.4 Restricted equity 686.0 686.0 Unrestricted equity 8 1,311.6 1,179.7 Total equity 1,997.5 1,865.7 Provisions Other provisions 1.5 1.5 Total provisions 1.5 1.5 Liabilities Long-term liabilities Liabilities to credit institutions 13, 14 3,590.3 3,132.4 Liabilities to group companies – 6.9 Other liabilities 20.9 31.2 Total long-term liabilities 3,611.2 3,170.4 Current liabilities Liabilities to credit institutions 13, 14 133.3 125.2 Accounts payable 4.8 2.4 Liabilities to group companies 503.5 585.7 Other liabilities 13.6 3.2 Accrued expenses and deferred income 12 40.5 48.5 Total current liabilities 695.6 765.0 Equity, provisions and liabilities 6,305.9 5,802.6  Elanders’ Annual and Sustainability Report 2023 Financial reports and notes – Parent company Statements of changes in equity MSEK Share capital Statutory reserve Unrestricted equity Total Opening balance as of 1 Jan. 2021 353.6 332.4 1,330.7 2,016.6 Dividend – – –127.3 –127.3 Result for the year – – –23.7 –23.7 Other comprehensive income – – – – Closing balance as of 31 Dec. 2021 353.6 332.4 1,179.7 1,865.7 Dividend – – –146.7 –146.7 Result for the year – – 278.6 278.6 Other comprehensive income – – – – Closing balance as of 31 Dec. 2022 353.6 332.4 1,311.6 1,997.5 Elanders’ Annual and Sustainability Report 2023  Financial reports and notes – Parent company NOTE 1 – Accounting principles A presentation of Elanders’ accounting principles can be found in note 1 to Elanders’ consolidated financial statements. The parent company has prepared its annual accounts according to the Annual Accounts Act and the Swedish Financial Reporting Board Recommendation RFR 2 Ac- counting for legal entities and where applicable statements made by the Swedish Financial Reporting Board. RFR 2 requires the parent company to, in the annual accounts for the legal entity, use all the EU approved IFRSs and interpretations as far as possible within the framework of the Annual Accounts Act and the Security Law, taking into consideration the connection between accounting and taxation. The parent company generally follows the same previously described principles as the Group. Differences between group and parent company accounting principles are presented below. Pensions The Parent Company’s provisions for pensions are secured by the Pension Obligations Vesting Act (Tryggandelagen). The main differen- ce between the rules of the Pension Obligations Vesting Act and IAS 19 Employee Benefits in respect of pensions is that Swedish practice disregards future increases in salaries and pensions when calculating the present value of the pension obligation. Both defined contribution and defined benefit plans exist in the Parent Company Financial guarantee contracts The parent company’s financial guarantee contracts consist primarily of guarantees on behalf of subsidiaries. A financial guarantee contract is a contract in which the company has a commitment to reimburse the hol- der of a debt instrument for loss it incurs because a specified debtor fails to make payment when due according to the contract terms. The parent company applies RFR 2 p. 71 to account for financial guarantees, which is a relief compared to the rules in IAS 39 connected to reporting and tax- ation. The parent company recognizes financial guarantee contracts as a provision on the balance sheet when the company has a commitment. Group and shareholder contributions Group and shareholder contributions are recognized according to the alternative rule in the Swedish Financial Reporting Board Recommenda- tion RFR 2. This means that received and paid group contributions are reported as appropriations. Shareholder contributions are activated in shares and participations, as long as write-downs are not required. Financial instruments and hedge accounting In view of the connection between accounting and taxation, the rules on financial instruments and hedge accounting are not applied by the parent company as a legal entity. In the parent company, financial assets are recorded at acquisition value less any impairment and financial current assets at the lower value of acquisition value or net realizable value. Lease agreements IFRS 16 Leases are not applied in the parent company as exemption is allowed for application in legal entities. This means that the leasing fees are expensed on a straight-line basis in the income statement. Standards, amendments and interpretations of existing standards that have taken effect in 2023 No new standards, amendments or interpretations that have had signi- ficant effect on the company’s financial reports have come into effect during 2023. NOTE 2 – Fees to the auditors MSEK 2023 2022 PwC Audit assignment 2.8 2.3 Audit-related services – – Tax advisory services – – Other services 0.7 – Total 3.5 2.3 No fees were paid to other auditing firms. Audit assignment is defined as the statutory audit, i.e. the work neces- sary to produce the auditor’s report as well as so called audit consulta- tion given in connection with the audit. NOTE 3 – Other operating income MSEK 2023 2022 Exchange rate gains 0.0 0.0 Other 7.0 5.1 Total 7.0 5.1 NOTE 4 – Personnel Please see note 5 to the consolidated financial statements for personnel related information.  Elanders’ Annual and Sustainability Report 2023 Financial reports and notes – Parent company NOTE 5 – Result from financial items Result from shares in subsidiaries MSEK 2023 2022 Write-downs of shares in subsidiaries –23.9 – Dividends from subsidiaries 299.4 30.4 Total 275.5 30.4 Interest income MSEK 2023 2022 Interest income, external 8.8 1.9 Interest income, subsidiaries 202.5 152.7 Total 211.2 154.6 Other financial income MSEK 2023 2022 Exchange rate gains 133.5 302.1 Total 133.5 302.1 Interest expenses MSEK 2023 2022 Interest expenses, external –176.4 –72.4 Interest expenses, subsidiaries –15.1 –2.7 Total –191.5 –75.1 Other financial expenses MSEK 2023 2022 Exchange rate losses –103.4 –388.0 Other financial expenses –12.6 –10.7 Total –115.9 –398.7 NOTE 6 – Taxes Accounting principles Tax pooling in the Group is carried out through group contribu- tions paid and received. When accounting for group contribu- tions, the parent company applies the alternative rule accor- ding to RFR 2 and recognize the net of group contributions paid and received as appropriations. The parent company recogni- zes most of the Group’s Swedish taxes. In the table below, the expected tax expense is calculated based on profit before tax multiplied with the current tax rate. For estimations and assessments regarding valuation of tax loss carry forwards, please refer to Note 9 for the Group on page 70. Tax on the result for the year MSEK 2023 2022 Withholding tax on income from foreign subsidiaries –0.1 – Correction of previous years’ current tax expense – – Deferred tax –1.1 13,7 Total –1.2 13,7 Reconciliation of recorded tax MSEK 2023 2022 Result before taxes 279.8 –37,4 Tax according to Swedish tax rate of 20.6 (20.6)% –57.6 7,7 Tax effect of: – non-taxable dividends from subsidiaries 61.7 6,3 – write-downs of shares in subsidiaries –4.9 – – withholding tax on income from foreign subsidiaries –0.1 – – non tax-deductible contribution, representation and association costs –0.3 –0,2 – other 0.0 0,0 Total –1.2 13,7 Deferred tax receivables MSEK 2023 2022 Tax loss carry forwards 99.8 102,4 Other 13.1 11,6 Total 112.9 114,0 Elanders’ Annual and Sustainability Report 2023  Financial reports and notes – Parent company NOTE 7 – Transactions with related parties Sales of products and services The parent company reimburse its subsidiaries for services mainly relating to marketing, IT, auditing, insurance, etc. Besides this there have been no sales of products or services to related parties. Purchase of products and services During the year, the Parent Company purchased services from subsidia- ries for MSEK 2.8 (2.6). Erik Gabrielson, who is member of the Board, is partner in Vinge Law Firm. Vinge has during the year provided legal counsel and invoiced fees amounting to MSEK 0.4 (0.4). No Board member or senior officer has or has had direct or in direct participation in any business transactions, between them selves or the company that are or were of an unusual nature concerning the terms. Remuneration to Board members and Group Management is reported in note 5 to the consolidated financial statements. NOTE 8 – Proposed appropriation of profits Profit and other non-restricted equity at the disposition of the Annual General Meeting: MSEK 2023 2022 Retained earnings 1,033.0 1,203.4 Net result for the year 278.6 –23.7 Total 1,311.6 1,179.7 The Board of Directors and the Chief Executive Officer propose that the profit and other non-restricted equity will be dealt with accordingly: MSEK 2023 2022 SEK 4.15 (4.15) per share is distributed to the shareholders 146.7 146.7 Remaining balance to be carried 1,164.8 forward 1,033.0 Total 1,311.6 1,179.7 NOTE 9 – Shares in subsidiaries Accounting principles Shares in associated companies, jointly controlled entities and subsidiaries are reported in the parent company according to the acquisition method. Acquisition-related costs for subsidiar- ies, which are expensed in group accounting, are included as part of the acquisition value for shares in subsidiaries. An annual assessment is made of whether there is any indication of impair- ment regarding shares in subsidiaries. The need for impairment is examined individually and impairment occurs if the decrease in value is considered to be permanent. Impairment The impairment test means that the carrying amount of shares in subsidiaries is compared with consolidated equity. During the year, impairment losses of shares in subsidiaires were recog- nized of MSEK 23.9 (0.0). MSEK 2023 2022 Opening balance 2,079.6 2,092.6 Investments 222.2 – Revaluation of additional – consideration –13.0 Write-downs –23.9 – Closing balance 2,277.9 2,079.6  Elanders’ Annual and Sustainability Report 2023 Financial reports and notes – Parent company NOTE 9 – Shares in subsidiaries (cont.) Specification of shares in subsidiaries Book Per- value of Number centage holding, Identity no. Registered office of shares holding MSEK d|o|m Deutsche Online Medien GmbH HRB265124 Waiblingen, Germany 3 100 0.0 myphotobook GmbH HRB94377 Berlin, Germany – 100 – Elanders do Brasil Representações Ltda 08.789.936/0001-55 São Paulo, Brazil 3,105,550 100 12.2 Mentor Gerenciamento de Supply Chain (Brasil) Ltda 08.849.405/0001-00 São Paulo, Brazil 7,241,126 100 9.4 Elanders Waiblingen GmbH HRB722349 Waiblingen, Germany 1 100 108.6 Elanders International AB 556058-0622 Mölndal, Sweden – 100 – Mentor Media Ltd 199302450H Singapore – 100 – Asiapack Limited 626139 Hong Kong, China – 100 – Asiapack (Shenzhen) Co., Ltd 91440300734155669E Shenzhen, China – 100 – Chengdu Mentor Media Co., Ltd 91510100597273959A Chengdu, China – 100 – Mentor Internet Solution Pte Ltd 199508226M Singapore – 100 – Mentor Media (Chongqing) Co., Ltd 915000006939331951 Chongqing, China – 100 – Mentor Media (Chongqing) Co., Ltd – Wuhan Branch 91420100MA4KYTDK3K Wuhan, China – – – Mentor Media (Kunshan) Co., Ltd 913205837584821700 Kunshan, China – 100 – Mentor Media Ltd, Taiwan Branch 70777068 Taoyuan, Taiwan – 100 – Mentor Media (Shenzhen) Co., Ltd 91440300726187433D Shenzhen, China – 100 – Mentor Media (USA) Supply Chain Management Inc C3095841 San Bernardino, USA – 100 – Mentor Media (Xiamen) Co., Ltd 91350200612051108M Xiamen, China – 100 – Mentor Media CBZ (Chongqing) Co., Ltd 915000005814642169 Chongqing, China – 100 – Mentor Media Juárez S.A. de C.V. MMJ0810145N1 Juárez, Mexico – 100 – Mentor Media (Shenzhen) Logistics Ltd 91440300793899377C Shenzhen, China – 100 – Mentor Printing and Logistics Pvt. Ltd U72900TN2006PTC061596 Chennai, India – 100 – Mentor Shanghai Trading Co., Ltd 91310000329537946A Shanghai, China – 100 – Mentor Supply Chain (Chongqing-CBZ) Co., Ltd 91500106MA5YR1XH62 Chongqing, China – 100 – Mentor Supply Chain Mexico S.A. de C.V. MSC191028QH1 Juárez, Mexico – 100 – Mentor Supply Chain (Netherlands) BV 858777265 Rotterdam, Netherlands – 100 – Mentor Media Czech s.r.o. CZ27742270 Brno, Czech Republic – 100 – Mentor Supply Chain (USA) Inc. 202212131646372 Warsaw, USA – 100 – Mentor Supply Chain Thailand Ltd 105566154947 Bangkok, Thailand – 100 – Mentor Supply Chain Vietnam Ltd 0110081611 Hanoi, Vietnam – 100 – Shanghai Mentor Media Co., Ltd 91310115703003515D Shanghai, China – 100 – Tristellar Graphic Sdn. Bhd. 64775T Johor, Malaysia – 100 – Elanders’ Annual and Sustainability Report 2023  Financial reports and notes – Parent company NOTE 9 – Shares in subsidiaries (cont.) Specification of shares in subsidiaries (cont.) Identity no. Registered office Number of shares Per- centage holding Book value of holding, MSEK Elanders Holding GmbH HRB105591 Herrenberg, Germany 25,000 100 380.5 LGI Logistics Group International GmbH HRB243806 Herrenberg, Germany – 100 – Helix Software + Support GmbH HRB226056 Herrenberg, Germany – 100 – ITG GmbH Internationale Spedition und Logistik HRB66157 München, Germany – 100 – ITG Air & Sea GmbH HRB250422 Oberding (Schwaig), Germany – 75 – ITG International Transports Inc. 43240627 Boston, USA – 100 – ITG Austria GmbH FN 560496i Reichersberg, Austria – 100 – ITG Fulfillment GmbH HRB33746 Oberhausen, Germany – 100 – LGI Netherlands BV 34083373 Amsterdam, Netherlands – 100 – Eijgenhuijsen Exploitatie BV 08040501 Ruurlo, Netherlands – 100 – Eijgenhuijsen Precisievervoer BV 08064979 Ruurlo, Netherlands – 100 – LGI Austria GmbH FN 349601 w Laxenburg, Austria – 100 – LGI Espana s.l. B19274901 Cabanillas del Campo, Spain – 100 – LGI Hungária Logisztikai Kft. 13-09-140503 Páty, Hungary – 100 – LGI Logistics Group International AB 556727-7990 Borås, Sweden – 100 – LGI Logistics Group International Ltd GB 07251732 Milton Keynes, UK – 100 – Bonds Worldwide Holdings Ltd GB 4608847 Birmingham, UK – 100 – Bonds Worldwide Express Ltd GB 1938935 Birmingham, UK – 100 – Bonds Technical Couriers Ltd GB 3036141 Birmingham, UK – 100 – LGI Polska Sp. z o.o. KRS 0000246814 Wroclaw, Poland – 100 – Logistics Worksolution Sp. z o.o. KRS 0000735255 Starachowice, Poland – 100 – LGI Romania s.r.l. J02/1032/2019 Arad, Romania – 100 – LGI Czechia s.r.o. CZ25204581 Zákupy, Czech Republic – 100 – LGI Deutschland GmbH HRB354685 Herrenberg, Germany – 100 – LGI FreightLog GmbH HRB761526 Freiberg am Neckar, Germany – 100 – LGI Logistics Solution GmbH HRB32410 Hünxe, Germany – 100 – LGI TechLog GmbH HRB513968 Erfurt, Germany – 100 – Logistik Lernzentrum GmbH HRB246072 Böblingen, Germany – 100 – LGI reuseIT GmbH HRB781610 Herrenberg, Germany – 100 – MotoristicSolutions GmbH HRB781648 Herrenberg, Germany – 100 – Elanders Holding UK Limited 15224840 Cheshire, UK 99 100 222.2 Kammac Ltd 2255591 Skelmersdale, UK – 100 – Elanders Holding USA Inc. 87-2849643 Delaware, USA 10,000 100 582.0 Bergen Shippers Corp 0400327871 New Jersey, USA – 80 – Bergen Logistics Canada, Inc. 002489278 Brampton, Canada – 100 – Bergen Ventures BV 860650704 Veghel, Netherlands – 100 – Bergen Logistics BV 860652397 Veghel, Netherlands – 100 – Rey 11 LLC 0400422543 New Jersey, USA – 80 – Rex 11 SRL 1016600023931 Chi șinău, Moldova – 100 –  Elanders’ Annual and Sustainability Report 2023 Financial reports and notes – Parent company NOTE 9 – Shares in subsidiaries (cont.) Specification of shares in subsidiaries (cont.) Book Per- value of Number centage holding, Identity no. Registered office of shares holding MSEK Elanders Hungary Kft 20-09-065122 Zalalövő, Hungary 1 100 146.1 Elanders Infologistics AB 556121-8891 Mölndal, Sweden 314,330 100 286.8 Elanders Sverige AB 556262-1689 Borås, Sweden – 100 – Elanders Italy S.r.l. 05686620963 Ponzano Veneto, Italy 1 100 2.7 Elanders Ltd GB 3788582 Newcastle, UK 2,300,000 100 31.4 Elanders McNaughtan’s Ltd SC 135425 Glasgow, UK – 100 – Spreckley Ltd 4179929 Newcastle, UK – 100 – Elanders Polska Sp. z o.o. KRS 0000101815 Płońsk, Poland 144,280 100 89.9 fotokasten GmbH HRB24050 Waiblingen, Germany 3 100 57.6 Midland Information Resources Company 42-1468885 Davenport, USA 10,000 100 223.0 ElandersUSA, LLC 58-1448183 Atlanta, USA – 100 – ReuseIT AB 559342-0507 Mölndal, Sweden 50,000 70 120.0 ReuseIT Sweden AB 559210-6404 Växjö, Sweden – 100 – ReuseIT Finance AB 559210-6602 Växjö, Sweden – 100 – Elanders Kaisheim GmbH HRB18350 Kaisheim, Germany 1 100 5.5 Elanders Donauwörth GmbH HRB28117 Donauwörth, Germany – 100 – Total 2,277.9 No book value is stated for the companies not directly owned by the parent company. Elanders’ Annual and Sustainability Report 2023  Financial reports and notes – Parent company NOTE 10 – Intangible assets Accounting principles The parent company amortizes goodwill according to plan, which is not permitted for the Group. Goodwill is amortized on a straight-line basis over a twenty-year period since it relates to acquisitions of a strategic nature. Other intangible assets refer to software and is amortized over 3–5 years. Goodwill Other intangible assets Total MSEK 2023 2022 2023 2022 2023 2022 Opening acquisition value 2.0 2.0 5.2 6.2 7.2 8.2 Acquisitions – – 1.3 1.3 1.3 1.3 Disposals – – – –2.3 – –2.3 Closing acquisition value 2.0 2.0 6.6 5.2 8.5 7.2 Opening accumulated amortization and write-downs –1.9 –1.8 –3.9 –5.1 –5.7 –6.8 Amortization of the year –0.1 –0.1 –0.6 –1.1 –0.7 –1.2 Disposals – – – 2.3 – 2.3 Closing accumulated amortization and write-downs –2.0 –1.9 –4.5 –3.9 –6.4 –5.7 Net residual value – 0.1 2.1 1.4 2.1 1.5 Amortization specified per function in the income statement MSEK 2023 2022 Selling expenses –0.5 –1.0 Administrative expenses –0.2 –0.2 Total –0.7 –1.2  Elanders’ Annual and Sustainability Report 2023 Financial reports and notes – Parent company NOTE 11 – Tangible fixed assets Accounting principles The parent company’s tangible fixed assets refer to office equipments and is depreciated over a straight-line basis over 3–5 years. Equipment, tools, fixtures and fittings MSEK 2023 2022 Opening acquisition value 1.3 1.2 Acquisitions – 0.0 Closing acquisition value 1.3 1.3 Opening accumulated depreciation –0.9 –0.7 Depreciation for the year –0.1 –0.2 Closing accumulated depreciation –1.0 –0.9 Net residual value 0.3 0.4 Depreciation has been charged entirely to administrative expenses. There has been no financial leasing. NOTE 12 – Accrued expenses and deferred income MSEK 2023 2022 Salaries and holiday pay 5.9 15.5 Social security contributions 14.4 16.3 Interest 5.6 0.4 Other accrued expenses and deferred income 14.6 16.3 Closing balance 40.5 48.5 NOTE 13 – Liabilities to credit institutions All liabilities to credit institutions are borrowing debts. Loans from Elanders’ main banks follows the terms in the credit agreement and maturity is in July 2026. Elanders AB has loans in GBP, USD and EUR. The interest rate on the loans per 31 December 2023 was in the interval 5.07–7.14 (3.55–6.01 percent. Please see note 24 to the consolidated financial statements for infor- mation regarding financial risk management. Changes in interest-bearing liabilities MSEK 2023 2022 Opening balance 3,257.6 2,905.2 New loans 884.7 – Amortization of loans –126.3 –123.1 Other changes in interest-bearing liabilities –197.0 141.2 Translation difference –95.4 334.4 Closing balance 3,723.6 3,257.6 Bank overdraft facilities Utilized amounts and available credit in group bank overdraft facilities are given below. MSEK 2023 2022 Bank overdraft facilities, utilized amount – – Bank overdraft facilities, granted amount 236.4 236.9 Not utilized overdraft 236.4 236.9 Elanders’ Annual and Sustainability Report 2023  Financial reports and notes – Parent company NOTE 14 – Pledged assets and contingent liabilities Accounting principles The parent company’s financial guarantee contracts consist primarily of guarantees on behalf of subsidiaries. A financial guarantee contract is a contract in which the company has a commitment to reimburse the holder of a debt instrument for loss it incurs because a specified debtor fails to make payment when due according to the contract terms. The parent company applies RFR 2 p. 71 to account for financial guarantees, which is a relief compared to the rules in IAS 39 connected to reporting and taxation. The parent company recognizes financial guarantee contracts as a provision on the balance sheet when the company has a commitment. Exemption rules for subsidiaries The parent company has issued a guarantee under Section 479(C) of the UK Companies Act 2006 for the year ended 31 December 2022 in respect of the subsidiaries Elanders Ltd, Elanders McNaugthan’s Ltd and Spreckley Ltd registered in the United Kingdom, listed in note 9. The parent company guarantees all outstanding liabilities to which the subsidiary companies are subject to on 31 December 2023, until they are satisfied in full and the guarantee is enforceable against the company by any person to whom the subsidiary compa- nies are liable in respect of those liabilities. The subsidiaries have taken advantage of the exemption from audit by virtue of Section 479(A) of the Companies Act 2006. The parent company has issued a guarantee to the subsidiaries Elanders Kaishem GmbH, Elanders Donauwörth GmbH, Elanders Waiblingen GmbH and Elanders Holding GmbH, all registered in Germany. The parent company guarantees for all obligations of Elanders Kaishem GmbH, Elanders Donauwörth GmbH, Elanders Waiblinen GmbH and Elanders Holding GmbH existing as of 31 December 2023 until the end of the following financial year. As a consequence of this, Elanders Kaishem GmbH, Elanders Donauwörth GmbH, Elanders Waiblingen GmbH and Elanders Holding GmbH including its German subsidiaries LGI Logistics Group International GmbH, LGI Deutschland GmbH, LGI FreightLOG GmbH, LGI TechLog GmbH, Helix Software + Support GmbH, Logistik Lernzentrum GmbH, LGI Logistics Solution GmbH, ITG GmbH Internationale Spedition und Logistik, ITG Fulfillment GmbH and ITG Air & Sea GmbH, LGI reuseIT GmbH, MotoristicSolutions GmbH, listed in note 9, apply the exemption rules set out in sec. 264 (3) German Commer- cial Code (HGB). Those rules exempt from legal audit and publishing and allows preparation reliefs of the financial statements. Further- more, according to sec. 291 (1) and (2) German Commercial Code (HGB) Elanders Holding GmbH, LGI Logistics Group International GmbH, ITG GmbH Internationale Spedition und Logistik, ITG Air & Sea GmbH and Elanders Waiblingen GmbH are exempted from the preparation of consolidated financial statements and the manage- ment commentary as they are included in the consolidated financial statements of Elanders AB.  Pledged assets MSEK 2023 2022 Floating charges 3.3 3.3 Other pledged assets – – Total 3.3 3.3 Given to: Credit institutions 3.3 3.3 Total 3.3 3.3 Other pledged assets primarily refer to collateral in the form of shares in subsidiaries. Contingent liabilities MSEK 2023 2022 Surety and contingent liabilities given for subsidiaries 150.8 170.7 Total 150.8 170.7  Elanders’ Annual and Sustainability Report 2023 Financial reports and notes – Parent company NOTE 15 – Supplementary information to the statements of cash flow Cash and cash equivalents Cash and cash equivalents consist primarily of cash and bank balances. Short-term investments are classified as cash and cash equivalents when: – the risk for changes in their fair value is insignificant. – they are easily converted. – they mature in less than three months from the date they were acquired. Adjustment for items not included in cash flow from operating activities MSEK 2023 2022 Depreciation, amortization and write-downs of intangible and tangible assets 0.8 1.3 Dividends from subsidiaries –299.4 –30.4 Unrealized exchange rate –113.3 gains/losses 195.5 Other items 13.7 –3.4 Total –398.2 163.0 Paid and received interest MSEK 2023 2022 Paid interest –185.9 –74.3 Received interest 253.0 111.7 Total 67.1 37.4 Dividends received from subsidiaries MSEK 2023 2022 Elanders Hungary Kft 17.4 6.3 Elanders Ltd 51.5 – Elanders Polska Sp. z o.o. 3.7 – Elanders UK Ltd 7.5 – Elanders Waiblingen GmbH 215.3 19.7 ReuseIT AB 4.1 4.4 Elanders Polska Sp. z o.o. 299.4 30.4 Total 30.4 30.4 Elanders’ Annual and Sustainability Report 2023  The Board of Directors and Chief Executive Officer hereby certify that the Annual Report has been prepared in accordance with good accounting practice in Sweden and that the consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs), referred to in the European Parliament’s and Council’s directive 1606/2002 of 19 July 2002 regarding the application of International Financial Reporting Standards, and that they give a true and fair view of the parent company’s and Group’s financial position and result, and that the Board of Directors’ Report provides a true and fair view of the development of the parent company’s and Group’s operations, financial position and result and describes significant risks and uncertainties that the parent company and the companies within the Group face. The Board of Directors and Chief Executive Officer propose that the profit and other unreserved funds of SEK 1,311,550,200 in the parent company at the disposition of the Annual General Meeting should be dealt with accordingly: • SEK 4.15 per share, a total of SEK 146,734,667, is distributed to the shareholders • the remaining balance of SEK 1,164,815,533 is to be carried forward. The Board of Directors believes that the proposed dividends are justi- fiable in relation to the demands that the business’ nature, scope and risks make on Group equity and on the Group’s consolidation needs, liquidity and its position in general. This Annual Report will be presented at the Annual General Meeting 19 April 2024 for adoption. Mölndal 22 March 2024 Our auditor’s report was issued on 22 March 2024 PricewaterhouseCoopers AB Dan Frohm Chairman of the Board Carl Bennet Vice Chairman of the Board Ulrika Dellby Eva Elmstedt Erik Gabrielson Anna Hallberg Anne Lenerius Johan Trouvé Eric Salander Authorized Public Accountant Auditor in Charge Irene Planting Magnus Nilsson Chief Executive Officer Martin Schubach Alexander Ståhl Authorized Public Accountant Financial reports and notes – Proposed appropriation of profits Proposed appropriation of profits  Elanders’ Annual and Sustainability Report 2023 Our audit approach Audit scope We designed our audit by determining materiality and assessing the risks of material misstatement in the consolidated financial statements. In particular, we considered where management made subjective judgements; for example, in respect of significant account- ing estimates that involved making assumptions and considering future events that are inherently uncertain. As in all of our audits, we also addressed the risk of management override of internal controls, including among other matters consideration of whether there was evidence of bias that represented a risk of material misstatement due to fraud. We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion on the consolidated financial statements as a whole, taking into account the structure of the Group, the accounting processes and controls, and the industry in which the group operates. Materiality The scope of our audit was influenced by our application of materiality. An audit is designed to obtain reasonable assurance whether the financial statements are free from material misstatement. Misstate- ments may arise due to fraud or error. They are considered material if individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the consolidated financial statements. Based on our professional judgement, we determined certain quan- titative thresholds for materiality, including the overall group mate- riality for the consolidated financial statements as a whole. These, together with qualitative considerations, helped us to determine the scope of our audit and the nature, timing and extent of our audit pro- cedures and to evaluate the effect of misstatements, both individually and in aggregate on the financial statements as a whole. Opinions We have audited the annual accounts and consolidated accounts of Elanders AB (publ ) for the year 2023 except for the corporate governance statement on pages 50–55. The annual accounts and consolidated accounts of the company are included on pages 40–108 in this document. In our opinion, the annual accounts have been prepared in accor- dance with the Annual Accounts Act and present fairly, in all material respects, the financial position of parent company and the group as of 31 December 2023 and its financial performance and cash flow for the year then ended in accordance with the Annual Accounts Act. The consolidated accounts have been prepared in accordance with the Annual Accounts Act and present fairly, in all material respects, the financial position of the group as of 31 December 2023 and their financial performance and cash flow for the year then ended in accordance with International Financial Reporting Standards (IFRS), as adopted by the EU, and the Annual Accounts Act. Our opinions do not cover the corporate governance statement on pages 50–55. The statutory administration report is consistent with the other parts of the annual accounts and consolidated accounts. We therefore recommend that the general meeting of shareholders adopts the income statement and balance sheet for the parent com- pany and the group. Our opinions in this report on the annual accounts and consolidat- ed accounts are consistent with the content of the additional report that has been submitted to the parent company’s audit committee in accordance with the Audit Regulation (537/2014) Article 11. Basis for opinions We conducted our audit in accordance with International Standards on Auditing (ISA) and generally accepted auditing standards in Sweden. Our responsibilities under those standards are further described in the Auditor’s Responsibilities section. We are indepen- dent of the parent company and the group in accordance with profes- sional ethics for accountants in Sweden and have otherwise fulfilled our ethical responsibilities in accordance with these requirements. This includes that, based on the best of our knowledge and belief, no prohibited services referred to in the Audit Regulation (537/2014) Article 5.1 have been provided to the audited company or, where applicable, its parent company or its controlled companies within the EU. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinions. Report on the annual accounts and consolidated accounts Auditor’s report Auditor’s report Unofficial translation To the general meeting of the shareholders of Elanders AB (publ), corporate identity number 556008-1621 Elanders’ Annual and Sustainability Report 2023  Other Information than the annual accounts and consolidated accounts This document also contains other information than the annual ac- counts and consolidated accounts and is found on pages 1–39 and 113–154. The other information also consists of the remuneration report of 2023 that we obtained prior to the date of this auditor’s report. The Board of Directors and the Managing Director are responsible for this other information. Our opinion on the annual accounts and consolidated accounts does not cover this other information and we do not express any form of assurance conclusion regarding this other information. In connection with our audit of the annual accounts and consoli- dated accounts, our responsibility is to read the information identified above and consider whether the information is materially inconsistent with the annual accounts and consolidated accounts. In this proce- dure we also take into account our knowledge otherwise obtained in the audit and assess whether the information otherwise appears to be materially misstated. If we, based on the work performed concerning this information, conclude that there is a material misstatement of this other informa- tion, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Board of Director’s and the Managing Director The Board of Directors and the Managing Director are responsible for the preparation of the annual accounts and consolidated accounts and that they give a fair presentation in accordance with the Annual Accounts Act and, concerning the consolidated accounts, in accor- dance with IFRS as adopted by the EU. The Board of Directors and the Managing Director are also responsible for such internal control as they determine is necessary to enable the preparation of annual accounts and consolidated accounts that are free from material mis- statement, whether due to fraud or error. In preparing the annual accounts and consolidated accounts, The Board of Directors and the Managing Director are responsible for the assessment of the company’s and the group’s ability to continue as a going concern. They disclose, as applicable, matters related to going concern and using the going concern basis of accounting. The going concern basis of accounting is however not applied if the Board of Directors and the Managing Director intend to liquidate the com- pany, to cease operations, or has no realistic alternative but to do so. The Audit Committee shall, without prejudice to the Board of Director’s responsibilities and tasks in general, among other things oversee the company’s financial reporting process. Auditor’s responsibility Our objectives are to obtain reasonable assurance about whether the annual accounts and consolidated accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and generally accepted auditing standards in Sweden 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 annual accounts and consolidated accounts. A further description of our responsibility for the audit of the annual accounts and consolidated accounts is available on Revisors- inspektionen’s website: www.revisorsinspektionen.se/revisornsansvar. This description is part of the auditor’s report. Key audit matters Key audit matters of the audit are those matters that, in our profes- sional judgment, were of most significance in our audit of the annual accounts and consolidated accounts of the current period. These mat- ters were addressed in the context of our audit of, and in forming our opinion thereon, the annual accounts and consolidated accounts as a whole, but we do not provide a separate opinion on these matters. Valuation of intangible assets With reference to Note 13. Goodwill and other intangible assets with an indefinite useful life represents a significant part of the Balance Sheet of Elanders. The Company performs an impairment assessment of the assets based on a calculation of the discounted cash flow for the cash generating units in which goodwill and other intangible assets are reported. This impairment test is based on a high level of judgments and assumptions regarding future cash flows. Information is provided in Note 13 as to how the Company’s management has undertaken its assessments, and also provides information on important assump- tions and sensitivity analyses. Key variables in the test are growth rate, profit margins and discount factor (cost of capital). It is presented that no impairment requirement has been identified based on the assumptions undertaken. In our audit, we have evaluated the calculation model applied by management. We have reconciled and critically tested essential variables against budget and strategic plan per business area. We have analyzed the accuracy on how previous years assumptions have been met and assessed any adjustments to assumptions compared to previous year, as a result from changes in the business and external factors. We have tested the sensitivity analysis for key variables in order to assess the risk of need for impairment. We have also assessed the correctness of the disclosures included in the financial statements. Auditor’s report Key audit matters How our audit addressed the Key audit matter  Elanders’ Annual and Sustainability Report 2023 Report on other legal and regulatory requirements The auditor’s audit of the administration of the company and the proposed appropriations of the company’s profit or loss Opinions In addition to our audit of the annual accounts and consolidated accounts, we have also audited the administration of the Board of Director’s and the Managing Director of Elanders AB (publ) for the year 2023 and the proposed appropriations of the company’s profit or loss. We recommend to the general meeting of shareholders that the profit be appropriated in accordance with the proposal in the statu- tory administration report and that the members of the Board of Director’s and the Managing Director be discharged from liability for the financial year. Basis for opinions We conducted the audit in accordance with generally accepted audit- ing standards in Sweden. Our responsibilities under those standards are further described in the Auditor’s Responsibilities section. We are independent of the parent company and the group in accordance with professional ethics for accountants in Sweden and have otherwise fulfilled our ethical responsibilities in accordance with these require- ments. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinions. Responsibilities of the Board of Director’s and the Managing Director The Board of Directors is responsible for the proposal for appropria- tions of the company’s profit or loss. At the proposal of a dividend, this includes an assessment of whether the dividend is justifiable con- sidering the requirements which the company’s and the group’s type of operations, size and risks place on the size of the parent company’s and the group’ equity, consolidation requirements, liquidity and posi- tion in general. The Board of Directors is responsible for the company’s organiza- tion and the administration of the company’s affairs. This includes among other things continuous assessment of the company’s and the group’s financial situation and ensuring that the company’s organiza- tion is designed so that the accounting, management of assets and the company’s financial affairs otherwise are controlled in a reassuring manner. The Managing Director shall manage the ongoing adminis- tration according to the Board of Directors’ guidelines and instruc- tions and among other matters take measures that are necessary to fulfill the company’s accounting in accordance with law and handle the management of assets in a reassuring manner. Auditor’s responsibility Our objective concerning the audit of the administration, and thereby our opinion about discharge from liability, is to obtain audit evidence to assess with a reasonable degree of assurance whether any member of the Board of Directors or the Managing Director in any material respect: • has undertaken any action or been guilty of any omission which can give rise to liability to the company, or • in any other way has acted in contravention of the Companies Act, the Annual Accounts Act or the Articles of Association. Our objective concerning the audit of the proposed appropriations of the company’s profit or loss, and thereby our opinion about this, is to assess with reasonable degree of assurance whether the proposal is in accordance with the Companies Act. Reasonable assurance is a high level of assurance, but is not a guar- antee that an audit conducted in accordance with generally accepted auditing standards in Sweden will always detect actions or omissions that can give rise to liability to the company, or that the proposed appropriations of the company’s profit or loss are not in accordance with the Companies Act. A further description of our responsibility for the audit of the administration is available on Revisorsinspektionen’s website: www.revisorsinspektionen.se/revisornsansvar. This description is part of the auditor’s report. The auditor’s examination of the ESEF report Opinion In addition to our audit of the annual accounts and consolidated accounts, we have also examined that the Board of Directors and the Managing Director have prepared the annual accounts and consoli- dated accounts in a format that enables uniform electronic reporting (the Esef report) pursuant to Chapter 16, Section 4(a) of the Swedish Securities Market Act (2007:528) for Elanders AB (publ) for the financial year 2023. Our examination and our opinion relate only to the statutory requirements. In our opinion, the Esef report has been prepared in a format that, in all material respects, enables uniform electronic reporting. Basis for Opinion We have performed the examination in accordance with FAR’s recommendation RevR 18 Examination of the Esef report. Our responsibility under this recommendation is described in more detail in the Auditors’ responsibility section. We are independent of Elanders AB (publ) in accordance with professional ethics for accoun- tants in Sweden and have otherwise fulfilled our ethical responsibili- ties in accordance with these requirements. We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Responsibilities of the Board of Director’s and the Managing Director The Board of Directors and the Managing Director are responsible for the preparation of the Esef report in accordance with the Chapter 16, Section 4(a) of the Swedish Securities Market Act (2007:528), and for such internal control that the Board of Directors (and the Managing Director) determine is necessary to prepare the Esef report without material misstatements, whether due to fraud or error. Auditor’s responsibility Our responsibility is to obtain reasonable assurance whether the Esef report is in all material respects prepared in a format that meets the requirements of Chapter 16, Section 4(a) of the Swedish Securities Market Act (2007:528), based on the procedures performed. RevR 18 requires us to plan and execute procedures to achieve reasonable assurance that the Esef report is prepared in a format that meets these requirements. Reasonable assurance is a high level of assurance, but it is not a guarantee that an engagement carried out according to RevR 18 and generally accepted auditing standards in Sweden will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the Esef report. Auditor’s report Elanders’ Annual and Sustainability Report 2023  The firm applies International Standard on Quality Management 1, which requires the firm to design, implement and operate a system of quality management including policies or procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements. The examination involves obtaining evidence, through vari- ous procedures, that the Esef report has been prepared in a format that enables uniform electronic reporting of the annual accounts and consolidated accounts. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement in the report, whether due to fraud or error. In carrying out this risk assessment, and in order to design procedures that are appropriate in the circumstances, the auditor considers those elements of internal control that are relevant to the preparation of the Esef report by the Board of Directors (and the Managing Director), but not for the purpose of expressing an opinion on the effectiveness of those internal controls. The examination also includes an evaluation of the appropriateness and reasonableness of assumptions made by the Board of Directors and the Managing Director. The procedures mainly include a validation that the Esef report has been prepared in a valid XHTML format and a reconciliation of the Esef report with the audited annual accounts and consolidated accounts. Furthermore, the procedures also include an assessment of whether the consolidated statement of financial performance, financial posi- tion, changes in equity, cash flow and disclosures in the Esef report has been marked with iXBRL in accordance with what follows from the Esef regulation. The auditor’s examination of the corporate governance statement The Board of Directors is responsible for that the corporate gover- nance statement on pages 50–55 has been prepared in accordance with the Annual Accounts Act. Our examination of the corporate governance statement is conducted in accordance with FAR’s auditing standard RevU 16 The auditor’s examination of the corporate gover- nance statement. This means that our examination of the corporate governance statement is different and substantially less in scope than an audit conducted in accordance with International Standards on Auditing and generally accepted auditing standards in Sweden. We believe that the examination has provided us with sufficient basis for our opinions. A corporate governance statement has been prepared. Disclosures in accordance with chapter 6 section 6 the second para- graph points 2–6 of the Annual Accounts Act and chapter 7 section 31 the second paragraph the same law are consistent with the other parts of the annual accounts and consolidated accounts and are in ac- cordance with the Annual Accounts Act/ the Annual Accounts Act for Credit Institutions and Securities Companies/ the Annual Accounts Act for Insurance Companies. PricewaterhouseCoopers AB was appointed auditor of Elanders AB (publ) by the general meeting of the shareholders on the 21 April 2023 and has been the company’s auditor since the 21 April 2008. Mölndal 22 March 2024 PricewaterhouseCoopers AB Eric Salander Alexander Ståhl Authorized Public Accountant Authorized Public Accountant Auditor in charge Auditor’s report  Elanders’ Annual and Sustainability Report 2023 Currently the Group has almost 8,000 employees, spread out among some 20 countries on four continents. Read more on page 124: Sustainabiliy report/Social/Employee relations. → Elanders’ Annual and Sustainability Report 2023  Changes in information and reporting In the information concerning greenhouse gases on page 130, emissions have been recalculated for scope 1 and scope 2 in line with the principles in the Greenhouse Gas (“GHG”) Protocol due to acquisitions and improved calculation method. Reporting has also been expanded to include scope 3 emissions. Feedback As part of the continuous development and improvement of Elanders’ Sustainability Report, readers are invited to comment on it. Comments and suggestions are gladly received at: sustainability@elanders.com. Scope of the Sustainability Report Elanders’ Sustainability Report is published annually and is an inte- grated part of the Annual Report. The report comprises the compa- nies that belonged to the Group during the year. Established principles for sustainability reporting have been applied in the preparation of this report. Its contents have been defined with guidance from, among others, the Global Reporting Initiative (GRI). The report has been prepared in accordance with EU’s directive on non-financial reporting (NFRD) which has been enacted in Sweden through the statutory requirements on sustainability reports as inte- grated parts of annual reports. The new directive on sustainability reporting (Corporate Sus- tainability Reporting Directive, “CSRD”) and the accompanying mandatory European Standards (European Sustainability Reporting Standards, “ESRS”) entail more detailed reporting requirements for sustainability disclosures. The new rules entail a number of compre- hensive changes in the preparation, formulation and presentation of sustainability-related information. Elanders is in the process of taking the necessary measures to be able to report according to CSRD and ESRS. For Elanders, sustainability is an integrated part of the Group’s business and decision-making. Elanders’ Sustainability Report for the calendar year 2023 is part of the Annual Report. It chronicles the details in Elanders’ strategic sustainability work and the progress that has been made during the year. Sustainability Report 2023 Sustainability report – Introduction For more information about Elanders, please visit: www.elanders.com →  Elanders’ Annual and Sustainability Report 2023 Sustainability report – Introduction 37 thousand tons CO 2 e (2022: 38) Scope 1 & 2 emissions 28 percent Percentage female supervisors 61 percent (2022: 59 %) Percentage renewable electricity 7 203 persons (2022: 7 248) Average number of employees Key ratios  Elanders signs on to the United Nations Global Compact. Mapping of the Group’s value chain emissions (scope 3) completed. Climate targets set for the Group. Elanders committed to setting climate targets in line with Science Based Targets initiative. Preparations for the new EU directive on sustainability reporting, CSRD. Scope 1 and scope 2 emissions will be reduced by 75 percent.  Operations aligned with the 1.5 degree target according to the Paris Agreement. Scope 1 and scope 2 emissions will be reduced by 50 percent. Scope 3 emissions related to our own operations will be reduced by 30 percent.  The Group will have achieved net zero emissions over the entire value chain.  Implementation of the new EU directive for sustainability reporting. Preparation of action plans for emission reductions.  Elanders will send, at the latest, emission targets to Science Based Targets initiative for validation.  Important steps → 27 thousand tons CO 2 e (2022: 24,5) Emissions savings within Life Cycle Management 195 thousand tons CO 2 e (2022: 219) Scope 3 emissions Elanders’ Annual and Sustainability Report 2023  Sustainability report – Strategy and materiality analysis Aspects connected to compliance are integrated in Elanders’ central governance framework. The compliance expected from all employees is described in Elanders’ Code of Conduct, which is available on Elanders’ website. Elanders has a whistleblower function where all stakeholders can report any violations of laws or regulations in Elanders or its value chain, for example in IT security, data confidentiality, environmental crime, corruption, human rights, discrimination or financial fraud. The person reporting is guaranteed anonymity and complete confi- dentiality. To ensure that a sustainability perspective permeates governance of all subsidiaries and that they take the necessary steps within the prioritized areas, Elanders has three joint Group councils in addi- tion to group management. These are People & Culture Council, Environment & Climate Council and IT Council. The members of these councils are relevant representatives of the subsidiaries as well as Group staff. The councils normally meet quarterly. As a global logistics company, the Group must work actively with, and take responsibility for, social, ethical and environmentally-related issues. Within the Group, this work is based on clearly formulated principles and targets, and the compliance and fulfillment of them is ensured and monitored. In the long run, a sustainable strategy also creates greater shareholder value and added-value for all the com- pany’s stakeholders - customers, investors and society alike. Elanders structures its sustainability disclosures based on “Environ- ment”, “Social” and “Governance” and in doing so has identified a number of sub-categories. These specify and frame Elanders’ material sustainability aspects. CSRD requires reporting according to the principle double materiality which is the basis for sustainability reporting within the framework of ESRS. This entails assessing materiality from an impact perspective and a risk and opportunity perspective. The assessment also takes the entire value chain into consideration. For Elanders this means updating perspectives and thresholds that previously defined which information should be included in disclosures. Elanders will present its double materiality assessment in its Annual Report for 2024. Governance regarding sustainability matters Governance regarding sustainability matters is embedded in Elanders’ Board of Directors and group management. Ownership and agency to drive measures within the material areas are embedded in Elanders’ organization in order to ensure adjustments to the various operations’ priorities. During the last two decenniums, Elanders has gone through an enormous transition from a pure print company with most of its business in Sweden, to a global logistic group with operations on four continents. Sustainability has become increasingly important for Elanders and its stakeholders. This continued to be notable in 2023. Elanders closely follows growing external demands and strives to meet these as efficiently as possible. Strategy and materiality analysis Elanders Code of Conduct can be found here: www.elanders.com/sustainability/governance/ → Sustainability report – Strategy and materiality analysis Sustainability – Corporate governance People & Culture IT Environment & Climate Group Finance Corporate Sustainability Support functions within the Group – support the implementation and monitoring of the strategy Groupwide Councils – cascades and validates the implementation of the strategy Responsible persons for each sustainability area – is responsible for implementation of the strategy Committees in the Board of Directors (sustainability relevant) Audit Committee Environment Decarbonisation Investment Committe Board of Directors – approves the overall strategy Group Management – designs and monitors the implementation of the strategy Governance Risk & Compliance Social Human Resources Risk & Compliance  Elanders’ Annual and Sustainability Report 2023 Elanders’ Annual and Sustainability Report 2023  Sustainability report – Strategy and materiality analysis groups: shareholders and investors, customers, employees, suppliers and the society. The groups have been identified based on their depen- dence on Elanders and the impact they have on Elanders’ operations and strategic direction. The Board of Directors and group manage- ment have also influenced the contents of the report. External factors have been taken into account as well, such as political developments, upcoming regulations for sustainability reporting and sector-specific trends. Materiality analysis The contents of this report reflects the areas where the Group has the greatest impact and where the most critical risks are found. What is important to Elanders’ stakeholder groups is key in the assessment and their interests guide the Group’s overall priorities over time. The prioritized areas are regularly reviewed to ensure that sustainabil- ity reporting aligns with developments in the Group and the world around it. Elanders maintains continuous dialogues with five stakeholder Elanders’ five stakeholder groups and the main channels of communication for each group Stakeholder group Communication with the stakeholder group Shareholders and investors Financial reports Annual General Meeting Investor meetings Website Press releases Suppliers Ongoing dialogue Procurements and purchase negotiations Employees Employee surveys / performance appraisals Intranet / other internal communication channels Dialogue with trade union organizations Customers Ongoing dialogue Customer surveys Interviews Society Local partnerships Participation in networks Internships and student papers  Elanders’ Annual and Sustainability Report 2023 0 10,000 20,000 30,000 40,000 50,000 60,000 D C B A 51,639 –9710,368 41,368 Lorem ipsum Sustainability report – Environment The section “Environment” in this Sustainability Report has been divided into two parts; “Greenhouse gas emissions” and “Material and waste”. Associated quantitative data is found in the Sustainability Report notes. Greenhouse gas emissions For Elanders, reducing fossil fuel dependence in its own fleet of trucks, and making adjustments in energy and material choices in print operations, is crucial since these are the two largest sources of greenhouse gas emissions in the Group. At the beginning of the year, the Group adopted targets for reduction of greenhouse gas emissions. To ensure that the targets conform to the latest climate science and goals in the Paris agree- ment, Elanders’ joined the Science Based Targets initiative (SBTi) in December. Through this, Elanders has committed to zero emissions of greenhouse gases in its own operations and by its activities in the value chain no later than year 2050. As a supplier of end-to-end solutions, Elanders is dependent on energy to run its logistics facilities and transport customers’. In Print & Packaging Solutions, the largest impact is in the value chain in terms of paper manufacturing. In order to handle the company’s impact and related risks Elanders has clearly formulated principles and targets, and compliance and achievement of them is ensured and monitored. Environment The first step is to reduce Group greenhouse gas emissions from Elanders own operations (scope 1 and 2) by 50 percent, and value chain emissions (scope 3) related to its own operations by 30 percent by 2030. The baseline for the targets in scope 1 and 2 is the year 2021. Base year data was recalculated in 2023. For the target in scope 3 the base year is 2022. Elanders is now working to ensure that each individual subsidiary has an action plan for emission reductions in line with the adopted targets. In reporting Group emissions Elanders has adopted the definitions from the international calculation standard Greenhouse Gas Protocol. Significant events during the year As a result of expanded operations in the form of the acquisition of Kammac, and as the calculation method was refined, base year emissions for scope 1 and 2 have been adjusted in 2023 as reflected in the below graph. This is in line with Elanders’ accounting principles and the guidelines of the GHG Protocol. Elanders’ total greenhouse gas emissions per scope – 2023  Scope 1  Scope 2 (market-based)  Scope 3 Base year emissions scope 1 and 2 (CO 2 e) Previous base year value Effect acquisition Effect improved calculation method New base year value Elanders’ Annual and Sustainability Report 2023  Sustainability report – Environment Direct and indirect greenhouse gas emissions – scope 1 and 2 In 2023, Elanders’ climate footprint in scope 1 and scope 2 (market- based calculation) was 26 (27) thousand and 11 (11) thousand tons CO 2 e respectively. This is a reduction in total by more than four percent from last year. This is mainly due to fewer fossil-fuel driven road transports, less consumption of natural gas for heating purposes and continued investment in energy efficient lighting and e-savers. Transportation Elanders’ direct greenhouse gas emissions largely consist of carbon dioxide and are primarily generated from transportation by its own vehicles in business area Supply Chain Solutions. The Group has a truck fleet that by the end of 2023 consisted of 325 vehicles. In addi- tion, there are more than 300 other company vehicles, most of them cars and vans. Elanders works continuously to cut costs and save energy through route planning, training programs to promote more efficient driving as well as optimizing customer transportation. The transportation sector is going through a major transition to fossil free fuels. Elanders continues to consider possibilities to shift to electric road transports as a significant step in achieving its climate targets. At the same time, the company is well aware that the transition comes with its own challenges, such as higher electricity consumption and potential emissions as well as risks in the production chain. In 2023, all Group trucks met the Euro-6 norm with nitrogen oxide emissions (NOx) no higher than 80 mg/km and minimized emissions of particles. Elanders also monitors the average carbon emissions from its truck fleet, which is believed to give a fair view over time. In 2023, emissions were on the same level as the year before, which is presented in the Sustainability Report in note 3 on energy consumption. Elanders reports emissions for vehicles divided into the truck fleet and other company vehicles. Facilities Besides transports, a smaller portion of the direct emissions are gener- ated in facilities where Elanders operates. These refer primarily to burning natural gas for heating. The indirect energy-related emissions Summary of Elanders’ emission reduction targets Scope 1 and 2 Scope 3 Base year 2021 2022 Base year emissions ~52,000 tons CO 2 e ~229,000 tons CO 2 e Type of target Absolute target Absolute target Target by 2030 50% reduction 30% reduction Target by 2040 75% reduction N/A Target by 2050 Net zero emissions Net zero emissions Activities and greenhouse gases included in targets The targets comprise all activities and include both owned and leased vehicles and facilities. Scope 2 refers to market-based calculation. All relevant greenhouse gases are included. The short-term target excludes freight forwarding which is when Elanders is commissioned by a customer to purchase shipping for their products on their behalf from a third party. All activities are included in the long-term target. All relevant greenhouse gases are included. Validation of targets Elanders has committed to setting science based emission reduction targets. The targets will be submitted to SBTi for validation. come from purchased electricity consumed in running machines and equipment, lighting, and heating and cooling facilities. Elanders’ target is to increase the portion of renewable electricity every year. By renewable electricity Elanders means energy sources such as hydropower, wind power, solar energy and bioenergy. In 2023, the portion of purchased renewable electricity increased from 59 percent to 61 percent compared to the previous year. Greenhouse gas emissions in the value chain – scope 3 Value chain emissions, scope 3, represent an overwhelming part of the Group’s total greenhouse gas emissions. In 2023, Elanders’ climate footprint in scope 3 was 195 thousand tons CO 2 e. This is a reduction in total by 11 percent from last year. The change was most pronounced in the freight forwarding services due to fewer transports in Air & Sea. Freight forwarding services The greatest impact is from air and road transports that Elanders purchases on behalf of customers for transportation of their prod- ucts. Customers decide on the amount of freight and how it will be forwarded. Now that Elanders has begun to collect data from freight suppliers, customers can better monitor the climate impact in their value chain. Purchased products and material as well as capital goods Elanders primarily consumes paper-based products such as printing paper, boxes and packaging material used for packing and distribu- tion. Emissions arise in the production and in the transportation of raw materials and can vary greatly depending on where the paper pulp comes from and what transport mode and energy sources are used. Elanders has begun to compile data from some of the major suppliers. Other products are wooden pallets, printing plates and various kinds of plastic products used in packing. In addition, Elanders compiles value chain emissions for capital goods. This comprises everything from warehouse racks, conveyor belts and forklifts to office furniture and building constructions. Emissions can vary greatly between years depending on which capital investments are made.  Elanders’ Annual and Sustainability Report 2023 Sustainability report – Environment Employee travel Every week the almost 8,000 employees at Elanders commute to workplaces all over the world. The most common means of transpor- tation is by car since many of the Group’s logistics and production fa- cilities are located on the outskirts of cities. When employees travel to visit other operations or meet customers they sometimes fly. Elanders also includes indirect emissions from hotel stays. Other emissions There are a number of additional emission sources found in the value chain where the impact is farther away from Elanders’ core operations. It is mainly upstream emissions from purchased fuel and energy. In addition, waste-related emissions and transportation of bought and sold products are included. To get a comprehensive picture of the value chain emissions, all sources have been included in the reporting. There are many difficulties in accessing data and calculating value chain emissions. This is a work in progress containing new dialogues with suppliers and customers. The data quality and description of the actual impact are expected to improve over time. This is the first year that Elanders reports this data which means the numbers should be considered indicative rather than providing an exact picture. Elanders intends to increase the scope of supplier specific data every year, prioritizing the largest categories. 2022 2023  Scope 1  Scope 2 (market based) Total emissions scope 1 and 2 (CO 2 e) Total emissions scope 1 and 2 (CO 2 e) – against base year 0 50,000 100,000 150,000 200,000 250,000 B A 36,69338,257 Lorem ipsum Lorem ipsum  Freight forwarding services  Purchased products and capital goods  Employee travel  Other categories Total emissions scope 3 (CO 2 e) Total emissions scope 3 (CO 2 e) – against base year 0 50,000 100,000 150,000 200,000 250,000 D C B A 195,289 219,209 Lorem ipsum 0 50,000 100,000 150,000 200,000 250,000 A 44,87751,639 Lorem ipsum Lorem ipsum 0 50,000 100,000 150,000 200,000 250,000 A 199,427 229,448 Lorem ipsum Base year 2023 (adjusted ) 2022 2023 Base year 2023 (adjusted *) The graphs on the left include Kammac since the acquisition date, November 2023. As the base year data includes Kammac’s emissions for the full year, an adjusted total for 2023 is shown in the graphs on the right for comparability. * Reported emissions for the full year 2023 including twelve months for Kammac. * Reported emissions for the full year 2023 including twelve months for Kammac. Elanders’ Annual and Sustainability Report 2023  Sustainability report – Environment 1) The emission savings in CO2 equivalents have been calculated in accordance with the principles set out in the report “Analys av återbrukade IT-produkter” (Eng: “Analysis of recycled IT products”), produced by the research institute RISE in collaboration with Elanders. Summary of Elanders’ main emission sources % of total emissions Description of main emission sources Scope 1 11 Burning fossil fuels, mainly diesel used in own truck fleet and natural gas to heat buildings. Greater portion of renewable fuel and shift to fossil free transportation s key to reducing emissions. Scope 2 5 Production of purchased electricity used in Group units mainly for running machines and equipment as well as lighting. Elanders can affect this by improving energy efficiency, buying certified electricity or increasing self-generated renewable electricity by, for example, installing more solar panel systems. Scope 3 Freight forwarding services 54 Road and air shipping by a third party to transport Elanders’ customers’ products. The freight is purchased on behalf of the customer and Elanders can influence by making the emissions visible and providing alternative shipping or suppliers. Purchased products and capital goods 20 Largely production of purchased paper used in printing operations. Other material procurement categories are printing plates used in offset print and packaging made of paper and plastic. Production of racking systems, machines, vehicles and other equipment that Elanders invests in is another significant emission source. Employee travel 4 Air travel and commuting by car make up a relatively small part of total emissions but since Elanders has a more direct influence this category is adressed and reported separately. Other categories 6 Production of diesel consumed by the fleet of trucks and production of purchased electricity are the largest among other emission sources. These are out of Elanders’ direct control and can primarily be influenced through choices of fuel and energy sources. Smaller emission sources are transports between Elanders’ suppliers, own facilities and customers along with waste management downstream in Elanders’ value chains. Total all scopes (2023) 100 For a complete report on Elanders’ emission sources, data sources, calculation methods and commitments see note 2 on greenhouse gases in this Sustainability Report. ≈232,000 tCO 2 e Circular solutions As a separate leg of the Group, Life Cycle Management contributes to more circular material flows and reductions of greenhouse gas emis- sions. Within its growing operations it restores obsolete IT equipment extending the life of, for example, laptops, cell phones, monitors and servers. This helps customers to lower their environmental impact and contribute to a more circular economy. During 2023, over 100,000 units were handled in the Swedish and German operations. All in all, this is estimated to have resulted in reducing emissions by around 27 thousand tons CO 2 e. 1) This is an increase compared to last year by about 2.5 thousand tons CO 2 e.  Elanders’ Annual and Sustainability Report 2023 Sustainability report – Environment Material and waste Energy consumption and greenhouse gas emissions are closely linked to resource consumption. Elanders has an environmental impact here as well. In line with Elanders’ Code of Conduct, material efficiency and responsible waste management are sought. With this comes more circular and sustainable resource flows, while new cost savings are found. Material Supply Chain Solutions In the business area Supply Chain Solutions, Elanders provides logis- tics services and mostly purchases packaging and pallet material used for storing, packing and distributing customers’ products. Paper is the overwhelmingly largest material category. Print & Packaging Solutions Most of the material consumption takes place in Print & Packaging Solutions where a large amount of paper is used for printing. Examples of items are packaging, manuals and other printed items produced according to customers’ specifications. The Group offers a selection of sustainable material certifications like FSC ® (Forest Stewardship Council), the Nordic Swan ecolabel and CGP (Certified Graphic Production). In addition to paper, plastic for packaging, ink, varnish and glue are used. Elanders has continued the transition from offset to digital printing during the year. There are many advantages with digital printing, among them greater material efficiency, reduced energy consumption and lower ozone emissions. In digital printing presses, solvents con- taining volatile organic compounds (VOCs) are used sparingly and moisturizing water with isopropyl alcohol (IPA) is not needed. Each subsidiary is responsible for managing potentially hazardous substances and chemicals as safely as possible to minimize the risk of negative effects on the environment and humans. It also entails to make sure there are safety procedures and the right documentation in place. At this point in time, Elanders does not have any definitive targets concerning material consumption and resource efficiency. The com- pany is currently improving the quality of its data in this area in order to present key ratios and targets for resource utilization in the Group in next year’s Sustainability Report. Waste All operations in the Group generate waste. Paper and cardboard are the largest category in both business areas and make up 74 (71) percent of the Group’s total waste. There is also some wood and plastic waste in packaging and distribution. In the business area Print & Packaging Solutions a smaller portion of hazardous waste arise consisting of residues of ink, varnish and solvents. The latter is mainly used in cleaning offset printing presses and plates. In many cases these have to be collected separately and managed by the waste removal company. Each subsidiary is respon- sible for collecting hazardous waste according to national laws and regulations. Waste management varies considerably between Elanders’ opera- tions because different countries have different waste systems. In the Group there are local recycling procedures on site to minimize the amount of waste that goes to landfill. In parallel, the Group runs small-scale projects where material is circulated and reused within the own operations. As an example, used pallets are renovated and rebuilt to provide new functions such as furniture. Elanders intends to increase transparency in waste management and collects waste data from all subsidiaries. This will be followed up in 2024 to ensure the quality of the data, reinforce monitoring and identify measures for the entire Group. Each individual company in the Group is responsible for its own environmental and quality work aimed at compliance with local regulations and the quality and environmental audits initiated by Elanders’ customers. Elanders’ Annual and Sustainability Report 2023  Sustainability report – Social The section in this report has been divided into four parts; “Health and safety”, “Employee relations”, “Diversity, equity and inclusion” and “Human rights”. Accompanying quantitative disclosures concerning social responsibility can be found in the notes of this Sustainability Report on pages 131–132. Health and safety Elanders’ work environment policy is found in the Group’s Code of Conduct where guidelines concerning identifying, managing and preventing potential health and safety risks are provided. The goal is to promote a good work environment and reduce the risk for work- related injuries and illness. Management for each company is respon- sible for ensuring compliance with the Code of Conduct through further guidelines and policies that suit their specific operations. Elanders’ subsidiaries establish strategies for health and safety adapted to the laws in their respective countries. Out in the opera- tions, work is continuously on-going to minimize both absence due to illness and accidents. Most work-related injuries occur in production, and the most common are minor cuts or wounds from falling. Elanders has a zero vision concerning injuries at the workplace and works continuously on reducing risks that can lead to serious injuries. Employee relations Wellbeing and motivation among employees contribute to the Group’s development and success on all levels. This also creates the right con- ditions to keep the right talent and attract the younger generation. Employees Because the Group is growing globally, Elanders continues to create new jobs. Currently the Group has almost 8,000 employees, spread out among some 20 countries on four continents. For the most part subsidiaries are governed by the laws and regulations in their respec- tive countries. Nonetheless, Elanders has a responsibility to ensure a culture marked by respect for both fellow human beings and the natural environment throughout the whole Group. These principles are stipulated in Elanders’ Code of Conduct. Elanders wants to create attractive and safe work environments for its employees. To manage the company’s impact, Elanders has an established Code of Conduct and policies to prevent and manage risks in the work environment as well as in the value chain considering human rights. Social Safe conditions Elanders has a continuous and constructive dialogue with employee representatives. A key example is the European Works Council (EWC), a council that consists of employee representatives from every country in Europe that Elanders operates in. Representatives gather once every year where Elanders’ Chief Executive Officer participates. These meetings are intended to promote employees’ rights to informa- tion and consultation in joint European matters. Elanders also has three employee representatives in the Board of Directors. One of the representatives is a deputy member. Diversity, equality and inclusion Elanders has developed considerably in recent years. Major acquisi- tions have given the Group a new structure and significantly broad- ened it geographically. However, Elanders continues to believe that long-lasting competitiveness can only be achieved if the workplace is characterized by diversity, equal opportunities and inclusion. Elanders has zero tolerance for any type of harassment or discrimination. Human rights Elanders has committed to respecting human rights, in line with the UN Guiding Principles on Business and Human Rights (UNGPs), The UN Declaration on Human Rights and The ILO’s declaration on fundamental principles and rights in working life. This is established in the Code of Conduct, which strictly prohibits any kind of forced labor, human trafficking and child labor. It is self-evident for Elanders to work for children’s right to education and protection of children from economic exploitation. Human rights in the value chain Elanders has developed a version of its Code of Conduct which is communicated to its suppliers and business partners. Currently, each subsidiary is responsible for identifying risks and making sure the Code of Conduct is also complied with in the value chain. In the same way that Elanders monitors its suppliers, Elanders is audited by customers on the basis of compliance with social conditions. The Group is preparing for EU’s proposed directive on due diligence in the value chain (Corporate Sustainability Due Diligence Directive, “CSDDD”). Large sections of the Group have related policies and procedures in place as required by Germany’s due diligence legislation, “LkSG”, that went into force on January 1, 2023.  Elanders’ Annual and Sustainability Report 2023 Sustainability report – Governance This section in this report has been divided into four parts; “Business ethics”, “Data ethics”, “Sustainable procurement”, “Responsible taxpayer”. Business ethics Elanders’ reputation and ethical behavior are fundamental to all the company’s stakeholders. The governing documents valid for the entire Group, the Code of Conduct and Anti-Corruption Policy, “Anti-Fraud and Anti-Money Laundering Policy”, are available on Elanders’ website. Code of Conduct Elanders’ Code of Conduct comprises all employees, the Board of Directors and other people who act on behalf of Elanders. It stipu- lates the principles for actions and behavior in Elanders’ business and value chain. The principles support the OECD guidelines for multina- tional companies and the UN Global Compact. Elanders is a profit-driven organization and part of the society’s economic activity. By growing Elanders contributes to creating jobs and generating tax revenue. Compliance with local laws and ordinances, as well as ethical business methods, are prerequisites for conducting business. In order to manage the company’s impact and related risks Elanders has binding company regulations, a Code of Conduct and a Code of Conduct for business partners along with an anti-corruption policy. Governance Management for each subsidiary is responsible for ensuring com- munication and compliance with the Code of Conduct. They are also responsible for formulating further guidelines and policies adapted to their specific operations, if necessary. In cases where national laws or regulations are stricter than Elanders’ in matters pertaining to the Code of Conduct they always go first and must be complied with. Anti-corruption The Group’s Anti-Corruption Policy clearly states that Elanders has absolutely zero tolerance for any kind of fraud, bribes or other actions that create unfair advantages. Employees may not accept, be promised, demand or swindle any kind of advantages in connection with their position. Education Central monitoring takes place every other year to ensure that the Code of Conduct has been communicated to all employees. All em- ployees must also take a course in anti-corruption. In 2023, a total of 99 (81) percent of all white-collar workers at Elanders had completed the courses on the Anti-Corruption Policy and Code of Conduct. Whistleblower function Elanders’ Anti-Corruption Policy and Code of Conduct also contain instructions for reporting deviations or irregularities, i.e. a whistle- blower function. In 2023 adjustments were made in the Group’s whistleblower system in line with EU’s new whistleblower directive. No material incidents of fraud, corruption, bribes or money launder- ing have been reported in 2023. Data ethics Elanders’ approach to data ethics takes into consideration the individual’s right to integrity regarding data, ethical use of artificial intelligence and careful handling of confidential information. Clear guidelines are required regarding handling data in connection with more comprehensive use of technology and corresponding amounts of data. For Elanders it is extremely important to handle the data of all stakeholders in such a way that their trust remains intact. EU’s General Data Protection Regulation (GDPR) is intended to protect individuals’ basic rights and their particular right to protect their personal data. Elanders has educational procedures in place to ensure that employees are knowledgeable about, and act in accor- dance with, the stipulations of GDPR and other relevant data protec- In 2023, a total of 99 (81) percent of all white-collar workers at Elanders had completed the courses on the Anti- Corruption Policy and Code of Conduct. 99% Elanders Code of Conduct and Anti- Corruption Policy can be found here: www.elanders.com/sustainability/ governance/ → Elanders’ Annual and Sustainability Report 2023  Sustainability report – Governance tion regulations. In 2023, a total of 99 (81) percent of all white-collar workers at Elanders had completed the course. The course is held every other year. Elanders has binding corporate rules (Binding Corporate Rules, “BCR”) approved by the Swedish Authority for Privacy Protection (IMY). These rules regulate how Elanders handles personal data to ensure that data protection regulations are followed when transfer- ring personal data to Group companies outside the EU/EES. Sustainable procurement Elanders primarily provides services to its customers. In some cases, the Group uses subcontractors chosen by the customers themselves. Elanders is affected by a growing number of regulations on responsi- ble management of risks in supply chains. Elanders’ Code of Conduct for suppliers defines its fundamental demands on these suppliers and the responsibility they should take for their stakeholders and environ- mental impact. Elanders evaluates compliance with its Code of Conduct through annual audits, self-assessments and documentation reviews of certain suppliers. Where applicable, suppliers are requested to remedy any deficiencies in their implementation of the requirements laid out in the Code of Conduct, through a time-bound improvement plan defined in consultation with Elanders. Responsible taxpayer As a global logistics actor, Elanders generates profits from serving many international customers worldwide. Elanders operates in some twenty countries through more than 80 legal entities and the business in the Group is structured according to commercial and financial needs. Taxes are paid where value is created, within the given legal parameters, and according to relevant guidelines from authorities. The Group tries to be tax efficient which includes avoiding double taxation, interest expenses and tax fees. Tax is paid first when it is due. All operations in the Group are subject to normal company tax regulations and income tax is paid in the country the operations are run, according to the tax rates in the country. Elanders acts responsi- bly and with integrity in all tax matters and ensures it fully complies in all jurisdictions worldwide. The Group works closely with tax agencies to ensure that all relevant information is made public and that the right amount of tax is paid while maintaining a balance with its obligations to Group shareholders. EU’s list of non-cooperative jurisdictions for tax purposes for 2023 is comprised of sixteen countries. Elanders does not operate in any of these countries. Elanders’ total tax expense in 2023 was MSEK 140 compared to MSEK 180 in the previous year. This corresponded to an effective tax rate of 35.3 (27.0) percent. Complete reporting Every year Elanders provides complete country-for-country reporting to the Swedish Tax Agency according to statutory requirements. The reporting entity is Carl Bennet AB, parent company to Elanders, and the report comprises the business in the Elanders Group. Society Elanders takes a wider responsibility outside of the company and supports the communities it operates in in different ways. There is a long tradition of partnership and local initiatives in this area. Partnership Elanders collaborates with credible and transparent organizations that in various ways contribute to more sustainable communities where they operate. Some of Elanders’ prioritized areas: • Education for youths and children • Innovation and research • Health • Life Cycle Management In addition to partnerships on a Group level, all Elanders’ subsidiaries are in different ways engaged in local initiatives for greater social sustain ability. Every year Elanders’ subsidiaries also support a number of humanitarian programs and donate to charitable organizations. The 17 Global Goals (SDGs) are a set of goals launched by the United Nations in September 2015. They aim to achieve the changes necessary to ensure that develop- ment and human well-being continue to increase within the limits of the planet. For this, the companies’ commitment and measures are vital. Elanders supports all of the UN’s 17 global goals for environmental, social and economic sustainable development. By making use of its core business and identifying own goals and sub-goals, guided by the SDGs, Elanders can have a positive impact on several of the goals. All Elanders’ subsidiaries are in different ways engaged in local initiatives for greater social sustainability.  Elanders’ Annual and Sustainability Report 2023 Elanders is one of thirteen organizations that contribute to the prize sum of one million Swedish kronor for the WIN WIN Gothenburg Sustainability Award. In 2018, the WIN WIN Youth Award was instituted. The awards spotlight groundbreaking work on annual and alternating themes for a more sustainable world. The theme for 2023 was “Fighting Disinformation”. The winner of the main award was the investigative network Bellingcat and its founder Elliot Higgins. The youth award was given to Abbie Richards, disinformation researcher and influencer. Together with around ten other large Swedish companies, Elanders is in partnership with the Indian educational orga- nization Pratham Education Foundation. Pratham works to improve the quality of education in India through targeted programs that take into consideration the gaps in the Indian educational system. Its methods have been developed together with award-winning scientists. During 2023, the partnership project reached an estimated 30,000 (28,000) children in 330 villages in the northeast states of Assam and West Bengal. Elanders is in partnership with Universeum, Sweden’s national science center and a powerful arena for academics and popular education in science, technology and sustaina- ble development. During 2023, the collaboration more specifically resulted in a project to increase children and youths’ understanding about the negative environmental impact of cell phones and a project aimed at getting more young girls interested in coding and IT. WIN WIN Gothenburg Sustainability Award Pratham Sweden Universeum Sustainability report – Governance A new initiative launched in 2023 consists of a partnership between one of Elanders’ subsidiaries in Germany and Tennental Village Community in the area Böblingen in southern Germany. Tennental is a place for people with and without disabilities that together create unique places to live and job opportunities for greater social inclusion. Elanders’ subsidiary has held workshops in IT know-how and donated tablets and sports equipment. Local community engagement Elanders’ Annual and Sustainability Report 2023  NOTE 1 – Accounting principles General information The main activities of the Elanders Group are described in the Board of Directors’ report in this Annual Report. The Sustainability Report and related data refer to the financial year ended 31 December 2023. The Sustainability Report is issued annually as part of Elanders AB’s Annual Report but has not undergone any external review. Accounting principles Accounting In preparing the Sustainability Report, Elanders has based its work on established international frameworks. The report is prepared in accor- dance with the EU taxonomy for sustainable investments. The account- ing of greenhouse gas emissions has been guided by the principles and definitions of the Greenhouse Gas Protocol. The guidelines provided by the Global Reporting Initiative (GRI) have also to some extent influenced the report. Elanders intends to report sustainability data in line with established sustainability frameworks and is in a preparatory process to report in accordance with the EU’s upcoming standards for sustainability reporting, ESRS. Detailed accounting principles as well as estimations and assessments are specified in the associated note. Continuous work is underway to develop the data collection to be able to present robust and transparent sustainability data to Elanders’ stakeholders. The content presented in the report is based on principles of materiality, reliability and clarity. Elanders is still in the early stages of reporting sustainability data. In 2023, the focus has been on developing processes and routines for reporting and preparing a renewed material- ity assessment based on the principle of double materiality. Consolidation The sustainability report covers the companies over which Elanders AB has direct or indirect control. Acquired companies are normally included in the sustainability report from the date on which Elanders acquires control of the company. NOTE 2 – Environment – Greenhouse gas emissions Accounting principles Calculations and reporting of greenhouse gas emissions are based on the definitions in the global standard Greenhouse Gas Protocol (GHG Protocol) and supported by its guidelines. Elanders reports emissions from activities of which the Group has financial control. The GHG Protocol divides greenhouse gas emissions into scopes 1, 2 and 3. For Elanders, they refer to the following: Scope 1 Scope 1 emissions cover direct emissions from assets owned or controlled by Elanders. This category includes emissions from the combustion of fuels in boilers and emissions from vehicle fleets. Scope 2 Scope 2 includes indirect greenhouse gas emissions from purchased electricity, heating, cooling and steam. It mainly refers to electricity purchased from electricity companies. Since the electricity is pro- duced off-site, it is considered to give rise to indirect emissions. Scope 3 Scope 3 includes other indirect emissions that occur in Elanders’ value chain. Elanders reports emissions for nine of the fifteen upstream and downstream categories. Remaining categories have been excluded as they are not applicable to Elanders’ operations. Upstream emissions are linked to procured goods and services. Downstream emissions are linked to the disposal of sold goods and services. The emission calculations cover the gases carbon dioxide (CO 2 ), methane (CH4), nitrous dioxide (N2O), HFC gases, PFC gases and sulphur hexafluoride (SF6), which are reported as carbon dioxide equivalents (CO 2 e). Reported numbers are based on activity and consumption data from the last available annual account. No deduc- tions are made for avoided emissions, carbon offsets or carbon credits. Applied emission factors are specified under each scope and are based on latest available published information. Elanders has tracked greenhouse gas emissions since the base year 2021 (scope 1 and 2) and base year 2022 (scope 3). The Group policy states that in the event of major acquisitions or divestments, or signficant changes in calculation method or applied accounting principles, the base year shall be reviewed for restatement. Signfi- cantly is defined as five percent change (+/-) in base year data for scope 1 and 2 combined, and for scope 3. In 2023, a full mapping of the value chain emissions (scope 3) was carried out as well as a recalculation of base year data for scope 1 and 2. Sustainability report – Notes to the sustainability report  Elanders’ Annual and Sustainability Report 2023 Sustainability report – Notes to the sustainability report NOTE 2 – Environment – Greenhouse gas emissions (cont.) Estimations and assessments Scope 1 Facilities Direct emissions within facilities are based on reported consump- tion data for natural gas and fuel oil. The smaller share of emissions derived from refrigerant leakage in cooling and heating systems are included in the total emissions for facilities. These are calculated based on volumes of refilled refrigerants. All emissions are calcu- lated with factors from British Defra (Department for Environment, Food & Rural Affairs). Company vehicles Direct emissions from company vehicles mainly include trucks, vans and passenger cars used for transports and travels for commercial purposes. The own truck fleet is reported separately as the calcula- tion method is based on actual fuel consumption data and primarily supplier-specific emission factors. Emission from other company vehicles are calculated using distance data and factors from Defra. Estimations have been made when distance data is missing. Elanders intends to improve the quality of emissions data for company ve- hicles through a more consistent calculation method. Scope 2 Electricity Electricity includes indirect emissions from purchased electricity. For European countries, emission factors for residual mix from the AIB (Association of Issuing Bodies) are used and corresponding from the IEA (International Energy Agency) for other countries. The report- ing of renewable electricity from the power grid is based on own assessments of approved contract instruments. These are electricity contracts and certificates considered to certify the origin and share of renewable energy for consumed electricity. Electric vehicles charged outside of own facilities have been excluded. District heating/cooling District heating/cooling includes indirect emissions from purchased energy. For district heating, calculations are based on emission fac- tors from Swedenergy for Sweden, IEA factors for other European countries and AIB factors for other countries. For other heating that Elanders does not control, natural gas is assumed with correspond- ing emission factor from Defra. Scope 3 Purchased products and materials (category 1) The largest purchasing category is paper within the printing opera- tions. In the absence of supplier-specific data, secondary data mainly from Defra is applied, based on average emissions for the entire life cycle (cradle-to-gate) per material category. The category other mainly includes printing inks. Capital goods (category 2) Capital goods purchased or acquired under finance leases are in- cluded. In the absence of supplier-specific data at the product level, secondary data are used based on material composition. Data refer to average emissions of the entire life cycle (cradle-to-gate) and fac- tor is retrieved from Defra. Conversions and estimations of existing data are made locally in the companies. Freight forwarding services (reported as part of category 4) Included are transports (mainly air, sea and road transport) carried out by third party carriers to ship Elanders customers’ products. A significant part of emissions, 32 percent, are calculated with EcoTransIT World. For the remaining part, data availability varies and therefore several calculation methods are used. As a principle, the tonne-kilometre method is applied in line with the GLEC Framework (Global Logistics Emissions Council). All emissions refer to WTW (well-to-wheel). Employee travels (category 6 and 7) Business travel includes air travel only as well as hotel nights. Com- muting includes travel by car and public transport. Emissions are calculated using average emissions data from Defra based on WTW. Other categories (category 3, 4, 5, 9 and 12) Other categories mainly include fuel and energy-related emissions not included in scope 1 and 2. Emission data is retrieved from Defra. Emissions from upstream and downstream transports of purchased and sold products are calculated using a distance-based method based on estimades average distance. Factor is retrieved from EcoTransIT World based on WTW. Remaining activities relate to the waste management of purchased and sold products. Calculations are based on assumptions about waste method and average factors from Defra. Elanders’ Annual and Sustainability Report 2023  NOTE 3 – Environment – Energy consumption Accounting principles Elanders reports total energy consumption for owned and leased facilities and the own truck fleet. The table below presents figures per energy source. Estimations and assessment Due to reasons of materiality and the lack of complete data, fuel and electricity consumption (charging that takes place outside the company’s facilities) for vehicles other than the truck fleet have not been included below. Greenhouse gas emissions rela- ted to these activities are still included in scope 2 as reported in Note 2 in this sustainability report. Energy consumption in own operations, MWh 2023 2022 Vehicles Diesel 64,560 64,982 Liquified natural gas (LNG) – 1,212 Total 64,560 66,194 Facilities Electricity 51,963 53,127 Natural gas 32,811 35,801 District heating/cooling 5,727 5,953 Fuel oil 2,068 2,278 Diesel 76 61 Total 92,644 97,220 Type of electricity 2023 2022 Electricity from renewable sources – from the power grid, MWh 31,540 31,197 Electricity from renewable sources – self-generated, MWh 279 203 Electricity from non-renewable sources – from the power grid, MWh 20,144 21,727 Share of renewable electricity, % 61 59 Energy intensity – truck fleet 2023 2022 Average carbon dioxide emissions per 100 kilometers, tons 0.071 0.069 Comparison data have been adjusted due to improvements in the calcu- lation method and data collection. Sustainability report – Notes to the sustainability report NOTE 2 – Environment – Greenhouse gas emissions (cont.) Greenhouse gas emissions from own operations and value chain (scope 1, 2 and 3) Tons CO 2 equivalent 2023 2022 Scope 1 – direct greenhouse gas emissions Facilities 7,577 8,087 Truck fleet 16,696 16,991 Other company vehicles 1,626 1,821 Total – scope 1 25,900 26,899 Scope 2 – indirect energy-related greenhouse gas emissions Electricity 8,575 9,250 District heating/cooling 2,218 2,108 Total – scope 2 10,793 11,358 Total – scope 1 & 2 36,693 38,257 Comparison data have been adjusted due to improvements in the calcu- lation method and data collection. Tons CO 2 equivalent 2023 2022 Scope 3 – other indirect greenhouse gas emissions Freight forwarding services 124,365 138,798 – whereof by road 48,816 54,596 – whereof by air 41,002 48,348 – whereof by sea 34,543 35,853 Purchased products 42,755 47,981 – whereof paper 35,156 39,962 – whereof metal 2,714 2,095 – whereof plastic 2,057 2,695 Employee travels 9,680 10,726 Capital goods 3,395 6,055 Other categories 1) 15,094 15,649 Total – scope 3 195,288 219,209 Total – scope 1, 2 & 3 231,981 257,466 1) Whereof 11,633 (12,000) tonnes of CO 2 e refer to fuel and energy-related emissions not included in scope 1 and 2. The market-based method has been used for reporting of scope 2 emis- sions. With this method, the total emissions are 10,793 (11,358) tonnes of CO 2 e. If the location-based method is used instead, the correspon- ding emissions are 20,721 (21,339) tonnes of CO 2 e.  Elanders’ Annual and Sustainability Report 2023 Sustainability report – Notes to the sustainability report NOTE 4 – Social – Employees in the Group Accounting principles Elanders reports data for employees who have been employed in the Group at year-end. Employees refer to those who are directly employed by Elanders. Employees not directly employed in the Group are not included below. These refer mainly to sea- sonal workers from employment agencies. Full-time equivalents (FTE) are defined as the number of employees converted to full-time positions. For further information regarding employees, please see Note 5 in the Group’s financial statements. Estimations and assessments For the reporting of gender division among employees, assess- ments have been made by those responsible at each company, taking into account privacy reasons. Number of employees at year-end 2023 Full-time employees 7,426 – of which women 2,804 – of which men 4,620 – of which other gender/gender not reported 2 Part-time employees 583 – of which women 383 – of which men 199 – of which other gender/gender not reported 1 Total 8,009 Age distribution employees, FTE Female Male Other/not reported gender Total <30 years 533 675 2 1,211 30–49 years 1,617 2,405 – 4,022 >50 years 768 1,473 – 2,241 Total 2,919 4,553 2 7,474 Share of women, % 2023 Share of women, all employees 39 Share of women, Board of Directors 44 Share of women, Group Management – Share of women, management positions 28 Management position refers to shift manger, group manager, site mana- ger or more senior position. Elanders’ Annual and Sustainability Report 2023  NOTE 5 – Social – Work-related injuries Accounting principles Elanders reports work-related injuries that occur as a result of exposure to hazards and risks at work. All employees in the Group have been included. Estimations and assessments The accident rate has been calculated based on number of accident per 1,000,000 hours worked. The total number of hours worked is based on the average number of employees in the Group, which has been multiplied by normal working hours in the country where Elanders has most employees. Number of accidents 2023 2023 Fatalities – – Injuries 137 159 Number of days lost 1,620 1,658 Total number of hours worked, in thousands 13,752 13,331 Frequences Fatal injury frequency rate – – Accident rate 9.93 11.93 No workplace accidents have resulted in fatalities. The most common type of reported injuries are laceration, bruises, fractures and muscle injuries. The identified work-related hazards with the potential to cause injury are mainly due to ergonomics and manual handling. NOTE 6 – Social – Training hours Accounting principles The reporting covers training offered to employees in the Group and includes both external and internal training. The reporting excludes on-site supervision. Average training hours are calcula- ted per employee corresponding to FTE. For a breakdown of the number of employees (FTE), please see note 4 in this sustaina- bility report. Estimations and assessments Estamations and assesments have been made by those respon- sible at each company. In cases where exact number of training hours has not been available, reasonable estimations have been made. Training hours Average hours/FTE 2023 2022 All employees 8.5 7.1 Women 8.7 6.6 Men 8.4 7.3 Sustainability report – Notes to the sustainability report  Elanders’ Annual and Sustainability Report 2023 Sustainability report – Auditor’s report Engagement and responsibility It is the board of directors who is responsible for the statutory sustainability report for the year 2023 on pages 114–132 and 134–135 and that it has been prepared in accordance with the Annual Accounts Act. The scope of the audit Our examination has been conducted in accordance with FAR’s auditing standard RevR 12 The auditor’s opinion regarding the statutory sustainability report. This means that our examination of the statutory sustainability report is substantially different and less in scope than an audit conducted in accordance with International Standards on Auditing and generally accepted auditing standards in Sweden. We believe that the examination has provided us with sufficient basis for our opinion. Opinion A statutory sustainability report has been prepared. Mölndal, 22 March 2024 PricewaterhouseCoopers AB Eric Salander Alexander Ståhl Authorised Public Accountant Authorised Public Accountant Auditor in charge This is a literal translation of the Swedish original report To the general meeting of the shareholders in Elanders AB (publ), corporate identity number 556008-1621 Auditor’s report on the statutory sustainability report Elanders’ Annual and Sustainability Report 2023  Sustainability report– EU taxonomy Elanders works actively to reduce energy consumption and improve energy efficiency in its own operations. At the same time, the aim is to use as much renewable electricity as possible in markets where it is available. There are plans to invest in solar panels on buildings and in own solar panel parks. According to section 1.1.2.2 in the delegated act (2021)/4987 (c), the capital expenditure for solar installations may become taxonomy-eligible under activity 4.1 Electricity generation using solar photovoltaic technology and 7.6 Installation, maintenance and repair of renewable energy technologies. Elanders continuously monitors the updates that take place in the drafting of the Taxonomy Regulation and will likely be covered to a greater extent in the future, when more of the EU’s environmental targets and more kinds of activities and products are included. For 2023, three key financial ratios will be reported, showing the proportion of operations covered by the taxonomy’s technical audit criteria for climate change (taxonomy-eligible). The reporting shall also show to what extent the economic activities meet the technical audit criteria, and thus are considered to be environmentally sustain- able (taxonomy-aligned). For 2023, it shall also be reported whether the Group conducts or is exposed to gas or nuclear power activities. Nothing of the kind is applicable to Elanders, see table below. The EU Taxonomy is a classification system to help define environ- mentally sustainable economic activities to support the transition to an economy consistent with the EU’s environmental objectives. In accordance with the Taxonomy regulation ((EU) 2020/852) and its delegated acts, companies should identify the economic activities that are environmentally sustainable based on technical audit criteria. For a certain economic activity to be classified as environmentally sustain- able, there are three criteria that must be met: it must substantially contribute to at least one of the EU’s climate or environmental objec- tives, it must not cause significant harm to any of the other objectives, and it must comply with fundamental labor law conventions and human rights. Elanders has concluded that the Group financial operation that this reporting encompasses is services regarding road transportation (An- nex 1, EU Taxonomy 6.6 Freight transport services by road) which is carried out in-house. These services are supplied by the business area Supply Chain Solutions. Road transportation is carried out either with owned or leased trucks. The truck fleet consists of approxi- mately 300 trucks, all of which meet the Euro 6 emission standard for heavy vehicles. At the same time, Elanders follows the techno- logical develop ment in the transport sector and reviews opportunities to switch from fossil-powered vehicles. The type of vehicle used is decided through dialogues with customers. Based on the customers’ requirements, Elanders works continually to ensure that transporta- tion is as environmentally friendly as possible, using as the most cost- and energy-efficient solutions as possible while optimizing customers’ transportation. EU taxonomy Nuclear energy related activities The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle. NO The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as well as their safety upgrades, using best available technologies. NO The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear energy, as well as their safety upgrades. NO Fossil gas related activities The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels. NO The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels. NO The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels. NO  Elanders’ Annual and Sustainability Report 2023 Sustainability report– EU taxonomy Accounting principles In accordance with the taxonomy regulation, companies are required to disclose the extent to which the company’s economic activities are sustainable through three key financial ratios: turno- ver, capital expenditure and operating expenses. In the context of accounting in line with the EU Taxonomy, turnover, capital expenditure and operating expenses are defined as per below. The definition of capital expenditure and operating expenses differs here compared to our regular financial reporting. Turnover The presentation of total sales includes the Group’s total external net sales for 2023 as reported in the income statement on page 56. See note 3 for accounting principles for the Group’s revenue. Sales related to the economic activity included in the taxonomy regula- tion refers to revenues from road transportation in the business area Supply Chain Solutions. Capital expenditure Total capital expenditure refers to additions to tangible and intan- gible assets during the year and additions to right-of-use assets. This also includes corresponding assets from business combina- tions, but not goodwill, customer relationships and trademarks with indefinite useful life. See details in note 13 Intangible Assets, note 14 Tangible Assets and note 15 Right-of-use assets. Capital expen- diture related to the economic activity road transportation refers to acquired trucks and new right-of-use assets relating to trucks. Operating expenses The accounting of operating expenses within the framework of the EU taxonomy includes the Group’s direct costs related to research and development, building renovations, short-term leases and ma- intenance and repairs as well as other direct costs for maintaining the fixed assets covered by the taxonomy regulations. Operating expenses related to the economic activity road transportation refers to operating expenses related to trucks, such as maintenance and repair costs The outcome of the review of Elanders’ economic activities for 2023 in accordance with the EU taxonomy regulation is shown in the table. Since only one economic activity has been identified as taxonomy-eligible, information on all key figures is available in the same table. The economic activity road transportation only take place within one business area, therefore no double counting should be possible. Taxonomy reporting table 2023 Total (MSEK) Share of taxonomy- eligible activities ( %) Taxonomy-aligned proportion (%) Share of non-taxonomy- eligible activities (%) Turnover 13,867 3 0 97 Capital expenditure 1,437 1 0 99 Operating expenses 419 3 0 97 Taxonomy reporting table 2022 Total (MSEK) Share of taxonomy- eligible activities ( %) Taxonomy-aligned proportion (%) Share of non-taxonomy- eligible activities (%) Turnover 14,974 3 0 97 Capital expenditure 1,439 1 0 99 Operating expenses 347 3 0 97 Elanders’ Annual and Sustainability Report 2023  Other information – Five years in summary Income statements – Summary MSEK 2023 2022 2021 2020 2019 Net sales 13,867 14,974 11,733 11,050 11,254 Operating expenses –13,143 –14,125 –11,153 –10,504 –10,895 EBIT 724 849 580 546 359 Financial items –326 –183 –98 –132 –143 Result after financial items 398 666 482 414 216 Result for the year 258 487 331 292 153 EBITDA 1,967 1,940 1,468 1,431 1,285 EBITDA excl. IFRS 16 929 1,068 770 737 573 EBITA 820 940 641 598 413 EBITA adjusted 927 966 658 598 563 Cash flow – Summary MSEK 2023 2022 2021 2020 2019 Cash flow from operating activities 1,782 1,106 1,063 1,725 1,337 Paid taxes –242 –196 –128 –42 –114 Investments –1,012 –274 –1,394 –116 –140 Operating cash flow 1,338 1,210 –105 1,783 1,454 Change in net debt 915 2,027 2,395 –1,106 1,422 Balance sheets – Summary MSEK 2023 2022 2021 2020 2019 Goodwill 4,452 3,655 3,305 2,413 2,480 Other fixed assets 7,099 6,690 4,936 3,224 3,546 Inventory 349 619 400 233 335 Accounts receivable 2,038 2,139 1,822 1,344 1,740 Other current assets 586 567 438 324 448 Cash and cash equivalents 1,107 904 898 1,101 655 Equity 3,864 3,870 3,304 2,908 2,777 Interest-bearing liabilities 9,297 8,180 6,147 3,955 4,616 Non-interest-bearing liabilities 2,468 2,524 2,349 1,776 1,811 Total assets 15,630 14,574 11,800 8,369 9,205 IFRS 16 is effective from 1 January 2019 and has affected the accounting of the Group’s lease agreements. The transition to IFRS 16 has been based on the Modified retrospective approach, which means that the comparison periods have not been adjusted. Excluding IFRS 16 means that the same accounting principles as 2018 have been used. One-off items have been excluded in the adjusted measures. Five years in summary  Elanders’ Annual and Sustainability Report 2023 Other information – Five years in summary Key ratios 2023 2022 2021 2020 2019 EBITA-margin, % 5.9 6.3 5.5 5.4 3.7 EBITA-margin adjusted, % 6.7 6.5 5.6 5.4 5.0 Operating margin, % 5.2 5.7 4.9 4.9 3.2 Profit margin, % 2.9 4.4 4.1 3.7 1.9 Equity ratio, % 24.7 26.6 28.0 33.6 30.2 Risk capital ratio, % 26.6 28.2 30.0 35.6 32.2 Interest coverage ratio, times 2.2 4.5 6.3 5.0 2.7 Debt/equity ratio, times 2.1 1.9 1.6 1.0 1.4 Return on equity, % 6.5 13.0 10.4 9.9 5.3 Return on capital employed, % 6.4 8.3 8.5 8.6 5.0 Return on total assets, % 6.5 11.6 6.3 6.4 4.2 Average number of employees 7,203 7,248 6,288 6,260 6,696 Number of employees at the end of the year 7,474 7,245 7,019 6,058 6,664 Net debt/EBITDA, times 4.2 3.7 3.6 2.0 3.1 Net debt/EBITDA excl. IFRS 16 ratio, times 3.9 2.8 3.3 1.5 3.7 Enterprise Value, MSEK 11,613 12,580 11,401 7,083 7,044 Risk capital, MSEK 4,161 4,107 3,537 3,076 2,962 Capital employed, MSEK 12,055 11,147 8,553 5,762 6,738 Net debt, MSEK 8,191 7,276 5,249 2,854 3,961 Net debt excl. IFRS 16, MSEK 3,655 3,022 2,539 1,123 2,142 IFRS 16 is effective from 1 January 2019 and has affected the accounting of the Group’s lease agreements. The transition to IFRS 16 has been based on the Modified retrospective approach, which means that the comparison periods have not been adjusted. Excluding IFRS 16 means that the same accounting principles as 2018 have been used. One-off items have been excluded in the adjusted measures. For Reconciliation of alternative performance measures and Financial definitions, see pages 142–144. Elanders’ Annual and Sustainability Report 2023  Other information – Five years in summary Despite a challenging year characterized by high inflation, declining consumption and normalized freight rates, the EBITA margin and cash flow have improved and Elanders is well prepared for the future.  Cash flow from operating activities, MSEK  Net sales, MSEK  EBITA margin adjusted, %  Net debt, MSEK  Net debt/EBITDA, times EBITA Net debt Cash flow 0 4,000 8,000 12,000 16,000 Nettooms„ttning, Mkr 20232022202120202019 4% 5% 6% 7% 8% EBITA-marginal 0 1,500 3,000 4,500 6,000 7,500 9,000 Nettooms„ttning, Mkr 20232022202120202019 1 2 3 4 5 RörelseresultatMkr 0 300 600 900 1,200 1,500 1,800 Nettooms„ttning, Mkr 20232022202120202019  Equity, MSEK  ROE, %  Capital employed, MSEK  ROCE, % Return on equity Return on capital employed Equity ratio  Equity, MSEK  Equity ratio, % 0 1,000 2,000 3,000 4,000 Eget kapital, Mkr 20232022202120202019 3% 6% 9% 12% 15% Avkastning 0 1,000 2,000 3,000 4,000 Nettooms„ttning, Mkr 20232022202120202019 15% 25% 35% 45% RörelseresultatMkr 0 3,000 6,000 9,000 12,000 20232022202120202019 4% 6% 8% 10%  Elanders’ Annual and Sustainability Report 2023 Other information – Share information and ownership structure History Elanders’ B shares were first listed on the Stockholm Stock Exchange on 9 January 1989. On 31 December 2023 the company had 33,542,938 (33,542,938) B shares listed on NASDAQ OMX Stock- holm, Mid Cap, under the ELAN B symbol. Development during the year The market value of B shares fell by 56 (14) percent during 2023, while the Stockholm Stock Exchange index OMX Stockholm PI increased by 13 percent during the same period, compared to a decrease by 25 percent during the last year. During 2023, a total of 4,819,125 (5,528,565) shares were traded, which is equivalent to an average turnover rate of approximately 0.14 (0.16) times. The lowest share price during 2023 was SEK 79.40 on October 31, and the highest was SEK 177.60 on January 27. The final share price in 2023 was SEK 96.00 (150.00), which means that Elanders’ market capitalization at year-end amounted to MSEK 3,394 (5,304). Share capital, class of shares and liquidity guarantee At the end of 2023, there were a total of 35,357,751 (35,357,751) issued shares in the company, of which 1,814,813 (1,814,813) were Class A shares and 33,542,938 (33,542,938) were Class B shares. Each Class A share is worth ten votes and each Class B share one. The shares’ quota value is SEK 10 and all shares are entitled to the same dividend. See the tables on the following pages for share capital and voting disposition. The Class B share is covered by a liquidity guarantee and ABG Sundal Collier is the guarantor. Share allocation According to Monitor/Euroclear Sweden AB, Elanders had 4,628 (4,622) shareholders at year-end. The share of foreign share- holders amounted to 8 (12) percent of the capital. Swedish private individuals and institutions owned 9 (9) percent and 31 (26) percent respectively of the capital. At the end of the year Carl Bennet AB controlled 66 (66) percent of the votes and 50 (50) percent of the capital and was the only owner who controlled more than 10 percent of the votes. Dividend policy Regarding the proposed dividend in years to come, the Board of Directors has taken into account the Group’s development potential, its financial position and the adopted financial goals relating to debt/ equity ratio, equity ratio and profitability. The objective is to have dividends follow the long-term profit trend and, on the average, repre- sent approximately 30–50 percent of profit after tax. Other information Elanders’ financial information can be found at the Group website www.elanders.com, under the section Investors. Questions can also be asked to Elanders directly via e-mail at info@ elanders.com. Annual Reports, Quarterly Reports and other informa- tion can be requested from Group headquarters at telephone number +46 31 750 07 50, our website or through the above e-mail address. We are also happy to provide information about Elanders at events that are arranged by shareholder organizations, Swedish and foreign stockbrokers and banks. ABG Sundal Collier, Aktiespararna, Erik Penser Bank and Nordea continuously monitor our development and publishes analyses of Elanders. In 2023, the market for Elanders’ customers continued to weaken, which resulted in negative organic growth, but Elanders was still able to improve its EBITA margin. Increasing financial costs had a negative effect on earnings per share, which contributed to the company’s Class B share performing worse than Stockholm OMX PI during the year. Share information and ownership structure  Swedish institutions and Investment companies  Swedish companies  Swedish private individuals  Foreign owners Source: Monitor / Euroclear Sweden AB. Shareholder categories 31 december 2023 Percent of share capital 9.1 30.7 52.0 8.1 Percent of votes 21.0 67.2 6.2 5.6 Elanders’ Annual and Sustainability Report 2023  Other information – Share information and ownership structure Data per share 2023 2022 2021 2020 2019 Net result, SEK 7.02 13.29 9.12 8.12 4.19 Net result adjusted, SEK 9.60 13.63 9.12 8.12 7.16 Share price at year-end, SEK 96.00 150.00 174.00 119.60 87.20 P/E ratio 13.7 11.3 19.1 14.7 20.8 Adjusted P/E ratio 10.0 11.0 19.1 14.7 12.2 P/S ratio, times 0.2 0.4 0.5 0.4 0.3 Dividend, SEK 1) 4.15 4.15 3.60 3.10 – Dividend yield, % 3.4 2.9 2.2 4.6 0.0 Share price/equity, times 1.1 1.3 1.7 1.5 1.1 Equity, SEK 108.50 108.46 92.67 81.65 78.54 Risk capital, SEK 117.68 116.15 100.05 86.41 83.78 EBITDA, SEK 55.64 54.88 41.52 40.46 36.35 EBITDA excl. IFRS 16 26.28 30.20 21.78 20.84 16.21 Operating cash flow, SEK 37.84 34.23 –3.00 50.44 41.14 Cash flow from operating activities, SEK 50.39 31.27 30.10 48.80 37.81 Average number of outstanding shares, in thousands 35,358 35,358 35,358 35,358 35,358 Turnover rate 0.16 0.16 0.20 0.17 0.16 1) Proposed by the Board for 2023. IFRS 16 is effective from 1 January 2019 and has affected the accounting of the Group’s lease agreements. The transition to IFRS 16 has been based on the Modified retrospective approach, which means that the comparison periods have not been adjusted. Excluding IFRS 16 means that the same accounting principles as 2018 have been used. One-off items have been excluded in the adjusted measures. For Reconciliation of alternative performance measures and Financial definitions, see pages 142–144.  OMX Stockholm PI  ELAN B  Number of traded shares Källa: Monitor. 0 300 600 900 1,200 1,500 0 50 100 150 200 20232022202120202019 SEK 1,000s/month Development of the Elanders share  Elanders’ Annual and Sustainability Report 2023 Other information – Share information and ownership structure Share capital development Number of A shares Number of B shares Accumulated number of shares Accumulated share capital, SEK At Stock Exchange introduction in 1989 200,000 1,380,000 1,580,000 15,800,000 1991 Directed share issue to acquire Fabritius A/S in Norway – 252,000 1,832,000 18,320,000 1993 Bonus issue 1:1 200,000 1,632,000 3,664,000 36,640,000 1997 Directed share issue to acquire the Graphic Systems Group – 650,000 4,314,000 43,140,000 1997 Directed share issue to acquire Skandinaviska Lithorex – 250,000 4,564,000 45,640,000 1997 Directed share issue to acquire Gummessons – 350,000 4,914,000 49,140,000 1997 New share issue 1:4 in connection with the acquisition of the Minab Group 100,000 1,128,500 6,142,500 61,425,000 1998 Directed share issue to acquire the Skogs Group – 1,287,500 7,430,000 74,300,000 2000 Directed share issue to acquire the shares in KåPe Group – 450,000 7,880,000 78,800,000 2000 Directed share issue to acquire the shares in Novum Group – 490,000 8,370,000 83,700,000 2007 New share issue 1:6 in connection with the acquisition of Sommer Corporate Media 83,333 1,311,666 9,764,999 97,649,990 2010 New share issue 1:1 583,333 9,181,666 19,529,998 195,299,980 2012 Directed share issue to acquire d|o|m and fotokasten – 3,200,000 22,729,998 227,299,980 2014 New share issue 1:6 in connection with the acquisition of Mentor Media 194,444 3,593,872 26,518,314 265,183,140 2016 New share issue 1:3 in connection with the acquisition of LGI 453,703 8,385,734 35,357,751 353,577,510 Outstanding shares and share capital on 31 December 2023 1,814,813 33,542,938 35,357,751 353,577,510 Major shareholders 31 December 2023 Number of A shares Number of B shares Percent of votes Percent of share capital Carl Bennet AB 1,814,813 15,903,596 65.9 50.1 Svolder AB – 3,602,567 7.0 10.2 Fourth Swedish National Pension Fund – 2,989,931 5.8 8.5 Protector Forsikring ASA – 1,869,079 3.6 5.3 Carnegie Fonder – 1,756,023 3.4 5.0 Third Swedish National Pension Fund – 751,856 1.5 2.1 Söderberg & Partners – 546,612 1.1 1.5 Keel Capital – 360,944 0.7 1.0 Dimensional Fund Advisors – 343,893 0.7 1.0 Avanza Pension – 261,588 0.5 0.7 Other shareholders – 5,156,849 10.0 14.6 Total 1,814,813 33,542,938 100.0 100.0 Source: Monitor / Euroclear Sweden AB. Shareholder statistics 31 December 2023 Number of shares Number of shareholders Number of A shares Number of B shares Percent of share capital Percent of votes 1–500 3,772 – 414,631 1.2 0.8 501–5,000 735 – 1,046,453 3.0 2.0 5,001–50,000 95 – 1,469,885 4.2 2.8 50,001–500,000 19 – 2,944,154 8.3 5.7 500,001– 7 1,814,813 27,442,346 82.7 88.2 Anonymous ownership N/A – 225,469 0.6 0.4 Total 4,628 1,814,813 33,542,938 100.0 100.0 Source: Monitor / Euroclear Sweden AB. Elanders’ Annual and Sustainability Report 2023  Other information – Reconciliation of alternative performance measures MSEK 2023 2022 2021 2020 2019 Average total assets 14,853 13,661 9,741 9,198 9,677 Average cash and cash equivalents –997 –847 –815 –944 –749 Average non-interest-bearing liabilities –2,491 –2,599 –2,127 –1,912 –1,808 Average capital employed 11,365 10,215 6,799 6,342 7,120 Operating result 724 849 580 546 359 Return on capital employed % 6.4 8.3 8.5 8.6 5.0 Interest-bearing long-term liabilities 7,676 7,229 5,326 3,268 3,579 Interest-bearing short-term liabilities 1,621 951 821 687 1,037 Cash and cash equivalents –1,107 –904 –898 –1,101 –655 Net debt 8,191 7,276 5,249 2,854 3,961 Interest-bearing long-term liabilities excl. IFRS 16 4,070 3,747 3,279 2,124 2,374 Interest-bearing short-term liabilities excl. IFRS 16 691 179 158 100 423 Cash and cash equivalents –1,107 –904 –898 –1,101 –655 Net debt excl. IFRS 16 3,655 3,022 2,539 1,123 2,142 Operating result 724 849 580 546 359 Depreciation and write-downs 1,243 1,091 888 885 927 EBITDA 1,967 1,940 1,468 1,431 1,286 Operating result excl. IFRS 16 628 775 536 506 323 Depreciation and write-downs excl. IFRS 16 301 293 234 231 250 EBITDA excl. IFRS 16 929 1,068 770 737 573 Net debt/EBITDA ratio, times 4.2 3.7 3.6 2.0 3.1 Net debt/EBITDA ratio excl. IFRS 16, times 3.9 2.8 3.3 1.5 3.7 Operating result 724 849 580 546 359 Amortization of assets identified in conjunction with acquisitions 96 90 61 52 54 EBITA 820 940 641 598 413 Adjustments for one-off items 107 26 17 – 150 EBITA adjusted 927 966 658 598 563 Net sales 13,867 14,974 11,733 11,050 11,254 EBITA-margin, % 5.9 6.3 5.5 5.4 3.7 EBITA-margin adjusted, % 6.7 6.5 5.6 5.4 5.0 Reconciliation of alternative performance measures  Elanders’ Annual and Sustainability Report 2023 Other information – Reconciliation of alternative performance measures MSEK 2023 2022 2021 2020 2019 Share price at year-end, SEK 96.00 150.00 174.00 119.60 87.20 Number of shares as per balance sheet date, in thousands 35,358 35,358 35,358 35,358 35,358 Net debt 8,191 7,276 5,249 2,854 3,961 Equity attributable to non-controlling interests 28 36 27 21 – Enterprise value, MSEK 11,613 12,616 11,428 7,104 7,044 Total assets 15,630 14,574 11,800 8,639 9,205 Cash and cash equivalents 1,107 904 –898 –1,101 –655 Non-interest-bearing liabilities 2,469 2,524 2,349 1,776 –1,812 Capital employed, MSEK 19,206 18,002 13,251 9,314 6,738 Average share price 121.87 143.27 161.86 66.68 84.45 Dividends per share, SEK 1) 4.15 4.15 3.60 3.10 – Dividend yield % 3.4 2.9 2.2 4.6 – Share capital 3,836 3,835 3,276 2,887 2,777 Share capital per share, SEK 108.50 108.46 92.67 81.65 78.54 Cash flow from operating activities 1,782 1,106 1,063 1,725 1,337 Net financial items 326 183 98 132 143 Paid tax 242 196 128 42 114 Net investments –1,012 –274 –1,394 –116 –140 Operating cash flow 1,338 1,210 –105 1,783 1,454 Average number of shares, in thousands 35,358 35,358 35,358 35,358 35,358 Operating cash flow per share, SEK 37.84 34.23 –3.00 50.43 41.12 Volume on the stock market, in thousands 4,819 5,529 6,584 5,848 5,824 Turnover rate 0.14 0.16 0.20 0.17 0.16 1) Proposed by the board for the year 2023. Elanders’ Annual and Sustainability Report 2023  Other information – Financial definitions Financial definitions Added value Net turnover minus material costs and for- ward invoiced disbursements for outwork. Added value ratio Added value in relation to net turnover. Average number of employees The number of employees at the end of each month divided number of months. Average number of shares Weighted average number of shares out- standing during the period. Capital employed Total assets less liquid funds and non- interest-bearing liabilities. Capital turnover rate Net sales in relation to average total assets. Cash conversion Operating cash flow, excluding consider- ations paid for acquisitions, in relation to EBITDA. Cash-flow per share Cash-flow from operating activities divided by the average number of shares. Debt/equity ratio Net debt in relation to reported equity, including non-controlling interests. Dividend yield Dividends in relation to average share price. Earnings per share Result for the year divided by the average number of shares. EBIT Earnings before interest and taxes; operating result. EBITA Earnings before interest, taxes and amortiza- tion; operating result plus amortization of assets identified in conjunction with acquisi- tions. EBITA adjusted Earnings before interest, taxes and amortiza- tion; operating result plus amortization of assets identified in conjunction with acquisi- tions adjusted for one-off items. EBITDA Earnings before interest, taxes, deprecia- tion and amortization; operating result plus depreciation, amortization and write-downs of intangible assets and tangible fixed assets. Enterprise value Market value plus net debt and non-control- ling interests. Equity per share Equity divided by the number of outstanding shares at balance sheet date. Equity ratio Equity, including non-controlling interests, in relation to total assets. FTE Full time equivalents refers to number of employees converted to full-time positions. Interest coverage ratio Operating result plus interest income divided by interest costs. Net debt Interest-bearing liabilities less liquid funds. Operating cash flow Cash flow from operating activities and investing activities, adjusted for paid taxes and financial items. Operating cash flow per share Operating cash flow divided by the average number of shares. Operating margin Operating result in relation to net sales. Operating result Earnings before financial items; EBIT. P/E ratio Share price at year-end in relation to earnings per share. Profit margin Result after financial items in relation to net turnover. Proportion of risk capital Risk capital in relation to total assets. P/S ratio Share price at year-end in relation to net turnover per share. Return on capital employed (ROCE) Operating result in relation to average capital employed. Return on equity Result for the year in relation to average equity. Return on total assets Operating result plus financial income in relation to average total assets. Risk capital Equity plus deferred tax liabilities. Turnover rate Volume on the stock market divided by the average number of shares.  Elanders’ Annual and Sustainability Report 2023 Other information – Specific terms Specific terms After sales Provision of services, support and spare parts after making an initial sale. This occurs for example in the provision of products which requires regular upgrades. Business-to-business (B2B) Sale of goods and services between busi- nesses, such as between a manufacturer and a wholesaler, or between a wholesaler and a retailer. Business-to-consumer (B2C) Sale of goods and services between a company and consumers. Cleanroom A cleanroom is an environment, typically used in manufacturing or scientific research, that has a low level of environmental pollutants such as dust, airborne microbes, aerosol particles and chemical vapors. More accu- rately, a cleanroom has a controlled level of contamination that is specified by the number of particles per cubic meter at a specified particle size. Contract Logistics Contract logistics is a business model within the framework of supply chain management, which is based on a long-term cooperation between a manufacturer or a dealer of goods and a logistics service provider. The model is normally regulated by a service contract, comprises a considerable business volume and is individually formed. Digital print The transfer of information to paper via a digital file that is then printed out with the help of a high-speed printer. This technique is a prerequisite for print-on-demand and makes quick deliveries in small editions pos- sible. Offset technique is still more efficient for larger editions. E-commerce Online sales, also known as electronic com- merce or internet commerce, refers to the buying and selling of goods or services using the internet, and the transfer of money and data to execute these transactions. End-to-end solution An end-to-end solution refers to a compre- hensive solution, where all the middle layers or steps are eliminated to optimize perfor- mance and efficiency in a process. Fulfillment This term used to describe a number of steps in the process between production and distribution. They can include assembly, con figu ration, bar-coding, packaging for end customers. Just-in-time (JIT) Delivery precision – delivery exactly when the need arises. The concept also entails that customers do not need to store their products. Life Cycle Management Services that are carried out during the whole or parts of a product’s life cycle, from when the product is manu factured to it is recycled. Examples of services are delivery, installation, training, maintenance, wiping of data, upgrade of software, refurbishment and reselling or recycling. The service aims to maximize the product’s life and optimize logistics flow in order to reduce the environ- mental impact. Offset print A printing method in which ink and water are spread out on a printing plate that is then pressed against a rubber blanket. This absorbs the ink and transfers it to the paper. The expression offset comes from the fact that the printing plate never touches the paper. Omni-channel An integrated way of thinking about people’s relationships with organizations. Rather than working in parallel, communication channels are designed to cooperate and build a coher- ent, evolving, cross-channel experience. The approach includes channels such as physical locations, FAQ web pages, social media, mo- bile applications and telephone communica- tion. Companies that use omni-channels give their customers the ability to be in contact with them through multiple avenues at the same time. When talking about omni-channel in connection with sales, it is usually com- merce via both stores and e-commerce that is referred to. Online print A service where printed matter can easily be ordered via a web-based interface and the user can create their own unique design. Typical products are business cards, cata- logues, books, photo products, newsletters, calendars and brochures. Outsourcing Companies or organizations choose to let an external party handle an activity or a process. This activity or process is then said to be outsourced. Packaging A product manufactured to protect, handle, deliver and present an item. Supply chain The movement and storage of goods and or information from point of origin to end-users. Supply chain manage ment can be defined as the design, planning, execution, control and monitoring of activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand and mea- suring performance globally. Elanders’ Annual and Sustainability Report 2023  Other information – Board of Directors Board of Directors Magnus Nilsson Member of the Board. President and Chief Executive Officer of Elanders AB. Born: 1966. Education in Graphic Technology, Design, Business Administration and Marketing. Elected in: 2010. Employed in Elanders since 1999. Shareholding: 88,577 Class B shares. Carl Bennet Deputy Chairman of the Board. Born: 1951. B.Sc in Business Administration, ec.Dr.h.c., med.Dr.h.c., tech.Dr.h.c. Elected in:1997. Appointments on the Elanders Board: Chairman of the nomination committee and member of the remuneration committee. Other appointments: Chairman and CEO of Carl Bennet AB. Chairman of the board of Lifco AB. Deputy Chairman of the board of Arjo AB and Getinge AB. Member of the board of L E Lundberg- företagen AB. Previous appointments: President and CEO of Getinge AB. Member of the board of Holmen AB. Shareholding through companies: 1,814,813 Class A shares and 15,903,596 Class B shares. Johan Trouvé Member of the Board. Born: 1960. Master’s degree in engineering. Elected in: 2023. Appointments on the Elanders Board: Member of the audit committee. Other appointments: CEO of the West Swedish Chamber of Commerce. Member of the board of Maquire AB, the Swedish Exhibition & Congress Centre, Thomas Concrete AB and UNICEF Sweden. Previous appointments: Regional manager for Schenker AB. Shareholding (own and related parties): 100 Class B shares. Anne Lenerius Member of the Board. Born: 1956. Business Administration. Elected in: 2014. Appointments on the Elanders Board: Member of the audit committee. Other appointments: Member of the branch board Handelsbanken Älvsborg. Previous appointments: Chief Financial Officer of Carl Bennet AB. Group Controller at Ernström Holding AB. Finance Manager at JMS/Q Systemhydraulik AB. Chairman of the board of Entercircle Konfektion AB. Shareholding: 6,892 Class B shares. Dan Frohm Chairman of the Board. Born: 1981. M.Sc. in Industrial Engineering and Management. Elected in: 2017. Appointments on the Elanders Board: Chairman of the remuneration committee. Other appointments: Deputy Chairman of the board of Lifco AB. Member of the board of Arjo AB, Carl Bennet AB, Getinge AB and Swedish-American Chamber of Commerce, Inc. Previous appointments: Management consultant at Applied Value LLC (New York office). Shareholding (own and related parties): 30,283 Class B shares.  Elanders’ Annual and Sustainability Report 2023 Other information – Board of Directors Ulrika Dellby Member of the Board. Born: 1966. Master’s degree in business administration. Elected in: 2023. Appointments on the Elanders Board: Member of the audit committee. Other appointments: Chairman of the board of Fasadgruppen Group AB. Member of the board of Bico Group AB, Kungliga Dramatiska Teatern AB, Lifco AB, Linc AB and Werksta Nordic AB. Previous appointments: Partner Boston Consulting Group and Fagerberg & Dellby (private equity). Shareholding: 4,000 Class B shares. Anna Hallberg Member of the Board. Born: 1963. Academic education in law and business administration. Elected in: 2023. Appointments on the Elanders Board: Member of the audit committee. Other appointments: Member of the board of Stena Metall AB and the Korsvägen Foundation (Universeum). Previous appointments: Minister for Foreign Trade and Nordic Affairs. Deputy CEO of Almi Företagspartner. A number of senior positions within SEB. Shareholding (own and related parties): 6,000 Class B shares. Irene Planting Employee representative. Born: 1963. Elementary school and Medborgarskolan – decoration, advertising and interior design. Elected in: 2023. Work: Transport operator at Elanders Sverige AB. Shareholding: 12 Class B shares. Martin Schubach Employee representative. Born: 1974. Upper secondary education. Elected in: 2015. Work: Data and automation at Elanders Sverige AB. Shareholding: 267 Class B shares. Johan Lidbrink Deputy employee representative. Born: 1979. Upper secondary education. Elected in: 2020. Work: Warehouse worker at Elanders Sverige AB. Shareholding: None. Eva Elmstedt Member of the Board. Born: 1960. Bachelor’s degree in Economics and Computer Science, Stockholm School of Economics and Indiana University of Pennsylvania, USA. Elected in: 2021. Appointments on the Elanders Board: Chairman of the audit committee. Other appointments: Chairman of the board of Omegapoint AB, Serline and Arelion (former Telia Carrier AB). Member of the board of AddLife AB, Arjo AB, Fagerhult Group AB and Smart Eye AB. Previous appointments: Business Area Manager for Global Services and member of the management team for Nokia Networks and Nokia Siemens Networks. Leading roles within Ericsson, the operator 3 and Semcon. Chairman of the board of Proact and Semcon. Member of the board of Addtech, Knowit and Thule. Shareholding (own and related parties): 8,000 Class B shares. Erik Gabrielson Member of the Board. Born: 1962. Master of Laws. Elected in: 2012. Appointments on the Elanders Board: Member of the remuneration committee. Other appointments: Lawyer and partner of the law firm Vinge. Chairman of the board of Eldan Recycling A/S. Member of the board of BuildData Group AB, Carl Bennet AB and Lifco AB. Shareholding: None. Elanders’ Annual and Sustainability Report 2023  Other information – Group management, auditors and nomination committee Group management Ged Carabini Supply Chain Solutions (Kammac), President. Born: 1969. Employed since 2023. Chief Operations Officer of Kammac before its acquisition by the Elanders Group, and prior to that has served in multiple senior roles across operations, commercial, and business development for several different companies. More than 34 years of experience within the logistics industry. Shareholding: None. Andréas Wikner CFO. Born: 1971. Employed since 2007. Master of Science in Business Administration. Auditor during 1997–2007. Approved Public Accountant 2004. Authorized Public Accountant 2005. Shareholding: 4,664 Class B shares. Charles Ickes Supply Chain Solutions (Bergen Logistics), President. Born: 1969. Employed since 2021. Has been with the company for the last five years, mainly working as the Chief Operations Officer in North America. Previously Chief Logis- tics Officer for Rent the Runway in the USA. Shareholding: None. Sven Burkhard Print & Packaging Solutions, President. Born: 1985. Employed since 2017 and prior to that was employed at, among other places, the German company Flyeralarm. Education in Graphic Technology, Design and Business Administration. More than 15 years’ experience in printing technologies, E-commerce, Product Management and Business Development. Shareholding: None. Magnus Nilsson President & CEO. Born: 1966. Employed since 1999. Education in Graphic Technology, Design, Business Administration and Marketing. Active within the graphic industry since 1987. Head of production Elanders in Hungary 2002. MD Elanders Berlings Skogs 2003–2005 and Elanders in China 2005–2009. Shareholding: 88,577 Class B shares.  Elanders’ Annual and Sustainability Report 2023 Other information – Group management, auditors and nomination committee Auditors PricewaterhouseCoopers AB with the authorized public accountants: Eric Salander Born: 1967. Company Auditor in Charge since 2022. Company Auditor since 2022. Other appointments: Thule, Radisson and Hilding Anders. Alexander Ståhl Born: 1990. Company Auditor since 2023. Other appointments: Arjo Sweden AB, Beckhoff Automation AB and Baldwin Jimek AB. Nomination committee Carl Bennet Chairman of the nomination committee and contact, represents Carl Bennet AB. Dan Frohm Chairman of the Board. Johan Ståhl Svolder AB. Jannis Kitsakis Fourth Swedish National Pension Fund. Dag Marius Nereng Protector Forsikring ASA. Nomination committee questions can be submitted by e-mail or post mail to: valberedning@elanders.com Elanders AB Att: Nomination committee Flöjelbergsgatan 1 C 431 37 Mölndal, Sweden Auditors and nomination committee Kok Khoon Lim Supply Chain Solutions (Mentor Media), President. Born: 1955. Employed since 2014. Bachelor’s degree in Electrical & Electronics Engineering and Master of Science (Industrial Engineering). More than 30 years of experience in world- class multinational corporations and positions such as General Manager for Hewlett Packard’s Handheld Mobile Products Division, Vice President and Chief Technology Officer for Philips Consumer Electronics Home Entertainment Business Group and Managing Directors for Technology Solutions Business and Innovation Centre’s at Wearnes Group. Joined Elanders in connection with the acquisition of Mentor Media in 2014, where he was CEO. Shareholding: None. Bernd Schwenger Supply Chain Solutions (LGI), President. Born: 1972. Employed since 2018. Diploma in Transport Economics and Logistics. Almost 20 years of experience within supply chain management and transportation logistics, including 11 years as Manager at HP and 7 years as Director Transportation and Managing Director at Amazon Logistics in Germany. Shareholding: None. Head office Elanders AB Flöjelbergsgatan 1 C, 431 37 Mölndal, Sweden Web: www.elanders.com E-mail: info@elanders.com Tel: +46 31 750 00 00 President & CEO: Magnus Nilsson Supply Chain Solutions Bergen Logistics Web: bergenlogistics.com E-mail: info@bergenlogistics.com CEO: Charles Ickes Bergen Logistics Corporate HQ 5903 West Side Ave, North Bergen, NJ 07047, USA Tel: +1 201 854 1512 USA Bergen Logistics 5903 West Side Ave, North Bergen, NJ 07047, USA Tel: +1 201 854 1512 299 Thomas E. Dunn Memorial Hwy, Rutherford, NJ 07070, USA Tel: +1 201 854 1512 1055 Hanover St, Wilkes-Barre, PA 18706, USA Tel: +1 201 854 1512 16012 Arthur St, Cerritos, CA 90703, USA Tel: +1 201 854 1512 7575 Cobb International Blvd, Kennesaw, GA 30152, USA Tel: +1 201 854 1512 1925 Shiloh road, Kennesaw, GA 30144, USA Tel: +1 201 854 1512 CANADA Canada INC 38 St Dennis Rd, Brampton, ON L6R 0B3, Canada Tel: +1 905 792 8585 NETHERLANDS Bergen Logistics B.V. De Amert 445, 5462 GH Veghel, Netherlands Tel: +31 857 602 726 203 MOLDOVA REX 11 S.R.L. mun. Chiinău, sec. Centru, str. Negreteni, 9, ap.(of.) 11, Moldova Tel: +1 201 854 1512 UNITED KINGDOM Bergen Logistics Unit L6, High Flatworth, North Shields, NE29 7UT, England LGI Web: lgigroup.com E-mail: info@lgi.de President: Bernd Schwenger LGI Logistics Group International GmbH Corporate HQ Hewlett-Packard-Straße 1/1, 71083 Herrenberg, Germany Tel: +49 7032 2291 0, Fax: +49 7032 2291 625 GERMANY AREA STUTTGART-KARLSRUHE Böblingen c/o LGI Deutschland GmbH Hewlett-Packard-Straße 2, 71034 Böblingen, Germany Tel: +49 7031 3060 402, Fax: +49 7031 3060 420 Schickardstraße 27, 71034 Böblingen, Germany Tel: +49 7031 3060 208 Hans-Klemm-Straße 27, 71034 Böblingen, Germany Tel: +49 7031 3060 400, Fax: +49 7031 3060 465 Ehningen c/o LGI Deutschland GmbH Mercedesstraße 10, 71139 Ehningen, Germany Tel: +49 7031 3060 400, Fax: +49 7031 3060 465 Esslingen c/o LGI Deutschland GmbH Fritz-Müller-Straße 116, 73730 Esslingen, Germany Tel: +49 7032 2291 470, Fax: +49 7114 5984 140 Gomaringen c/o LGI Deutschland GmbH Siemensstraße 4, 72810 Gomaringen, Germany Tel: +49 7121 9456 413 Großbottwar c/o LGI Deutschland GmbH Schleifwiesenstraße 25-27, 71723 Großbottwar, Germany Tel: +49 7114 5984 130 Herrenberg c/o LGI Deutschland GmbH Heisenbergstraße 2, 71083 Herrenberg, Germany Tel: +49 7032 8939 183, Fax: +49 7032 2291 111 Heilbronn c/o LGI Deutschland GmbH c/o AUDI AG Alexander-Baumann-Straße 45, Building K40 74078 Heilbronn, Germany Tel: +49 1727 3493 81 Horb am Neckar c/o LGI Deutschland GmbH Manfred-Volz-Straße 10, P3 Park Horb a.N., 72160 Horb, Germany Tel: +49 1514 3109 829 Neckarsulm c/o LGI Deutschland GmbH c/o Audi AG NSU-Straße 1, Werk Neckarsulm, Gebäude V10, 74172 Neckarsulm, Germany Tel: +49 1624 0149 94 Nufringen c/o LGI Deutschland GmbH Im Hübschtanz 1, 71154 Nufringen, Germany Tel: +49 7032 2291 0 Ostfildern (Kemnat) c/o LGI Deutschland GmbH Zeppelinstraße 32, 73760 Ostfildern, Germany Tel: +49 703 2229 14 70 Reutlingen c/o LGI Deutschland GmbH Heubergstraße 6, 72766 Reutlingen, Germany Tel: +49 7121 9456 485 Sindelfingen c/o LGI Deutschland GmbH c/o Daimler AG Building 46/48, 71063 Sindelfingen, Germany Tel: +49 1728 3072 45 Stuttgart c/o LGI Deutschland GmbH c/o Daimler AG Am Mittelkai 40, 70329 Stuttgart, Germany Tel: +49 1522 1867 079 Stuttgart Airport c/o ITG Air & Sea GmbH Gottlieb-Manz-Straße 12, 70794 Filderstadt-Bernhausen, Germany Tel: +49 7117 9730 90, Fax: +49 7117 9730 915 Waghäusel c/o LGI Deutschland GmbH Kontraktlogistik Karlsruher Straße 61, 68753 Waghäusel, Germany Tel: +49 7254 9580 880, Fax: +49 7254 9580 199 Spedition/Transporte Karlsruher Straße 61, 68753 Waghäusel, Germany Tel: +49 7254 9580 880, Fax: +49 7254 9588 301 Winnenden c/o LGI Deutschland GmbH Max-Eyth-Straße 14, 71364 Winnenden, Germany Tel: +49 7114 5984 130 AREA HAMBURG-BREMEN Bremen c/o ITG Air & Sea GmbH Pieperstraße 1-3, 28195 Bremen, Germany Tel: +49 4211 7569 0, Fax: +49 4211 7569 19 Hamburg c/o ITG Air & Sea GmbH Weg beim Jäger 218-222, 22335 Hamburg, Germany Tel: +49 4050 062 0, Fax: +49 4059 803 3 Hamburg-Altenwerder c/o LGI Deutschland GmbH Altenwerder Hauptstraße 17-23, 21129 Hamburg, Germany Tel: +49 4033 3966 160, Fax: +49 4033 3966 190 Hamburg-Billbrook c/o LGI Deutschland GmbH Werner-Siemens-Straße 39, 22113 Hamburg, Germany Tel: +49 4081 9735 23, Fax: +49 4081 9735 20 Troplowitzstr. 10, 22529 Hamburg, Germany Tel: 49 4033 3966 127, Fax: +49 4033 3966 290 Elanders’ Annual and Sustainability Report 2023  Other information – Contact Elanders AREA FRANKFURT-HEIDELBERG Ketsch c/o LGI Deutschland GmbH Vorpommernstraße 2, 68775 Ketsch, Germany Tel: +49 6202 2899 011 3, Fax: +49 7254 9588 301 Mörfelden-Walldorf (Frankfurt Airport) c/o ITG Air & Sea GmbH Hessenring 13, 64546 Mörfelden-Walldorf, Germany Tel: +49 6105 9685 20, Fax: +49 6105 9685 280 Wiesloch c/o LGI Deutschland GmbH c/o Heidelberger Druckmaschinen AG Gutenbergring Halle 5, 69168 Wiesloch, Germany Tel: +49 6222 82 2136, Fax: +49 6222 8265 812 AREA MUNICH Manching c/o LGI Deutschland GmbH Königsaue 2, 85077 Manching, Germany Tel: +49 8459 3334 150, Fax: +49 8459 3334 190 Nürnberg c/o ITG Air & Sea GmbH Andernacher Straße 53, 90411 Nürnberg, Germany Tel: +49 9113 5018 70, Fax: +49 9113 5018 719 Schwaig (Munich Airport) c/o ITG GmbH Internationale Spedition + Logistik Eichenstraße 2, 85445 Schwaig (Oberding), Germany Tel: +49 8122 5670, Fax: +49 8122 5671 001 c/o ITG Air & Sea GmbH Eichenstraße 2, 85445 Schwaig (Oberding), Germany Tel: +49 8122 5671 300, Fax: +49 8122 5671 301 AREA BERLIN-DRESDEN Neustadt in Sachsen c/o LGI Deutschland GmbH Kirschallee 6, 01844 Langburkersdorf, Germany Tel: +49 3596 5866 10, Fax: +49 3596 5866 99 Werder c/o LGI Deutschland GmbH Am Magna Park 4, OT Plötzin, 14542 Werder (Havel), Germany Tel: +49 3327 5749 120, Fax: +49 3327 5749 190 AREA DÜSSELDORF Düsseldorf Airport c/o ITG Air & Sea GmbH Ungelsheimer Weg 6, 40472 Düsseldorf, Germany Tel: +49 211 566 236 0, Fax: +49 211 566 236 30 Herten c/o LGI Deutschland GmbH Friedrich-Bergius-Straße 1-3, 45699 Herten, Germany Tel: +49 2366 5011 110, Fax: +49 2366 5011 190 Hünxe c/o LGI Logistics Solution GmbH Werner-Heisenberg-Straße 1, 46569 Hünxe, Germany Tel: +49 2811 6400 103, Fax: +49 2811 6400 109 Oberhausen c/o ITG Fulfillment GmbH Im Lekkerland 4, 46147 Oberhausen, Germany Tel: +49 2089 4146 0 AREA ERFURT Erfurt c/o LGI TechLog GmbH Joseph-Meyer-Straße 3, 99095 Erfurt, Germany Tel: +49 36204 722 201, Fax: +49 3620 4722 100 Erfurter Landstraße 59a, 99095 Erfurt, Germany Tel: +49 3620 4722 201 AUSTRIA LGI Austria GmbH Vienna Frank-Stahl-Straße 1, 2361 Laxenburg, Austria Tel: +43 2236 860 936 110, Fax: +43 2236 860 936 111 ITG Austria GmbH Reichersberg Kammer 35, 4981 Reichersberg, Austria Tel: +43 7751 501510 CZECH REPUBLIC LGI Czechia s. r. o. Prague Poděbradská 601, 25090 Jirny, Czech Republic Tel: +420 281 049 080, Fax: +420 281 049 099 F.V.Veselého 2635/15, 19300 Horní Počernice, Czech Republic Tel: +420 702 204 318 Zákupy Nadrazni 295, 47123 Zákupy, Czech Republic Tel: +420 487 828 018, Fax: +420 487 828 016 Mladá Boleslav Plazy 129, 29301 Mladá Boleslav, Czech Republic HUNGARY LGI Hungária Logisztikai Kft. Budapest M1 Üzleti Park B/6 épület, H 2071 Páty, Hungary Tel: +36 23 312 978 Tormásrét utca 10., H 2051 Biatorbágy, Hungary Tel: +36 23 311 504 NETHERLANDS LGI Netherlands B.V. Amsterdam Kaapstadweg 34A, 1047 HG Amsterdam, Netherlands Tel: +31 20 8515 740, Fax: +31 20 8515 701 Dordrecht Burgemeester Noorlandstraat 150, 3316 LV Dordrecht, Netherlands Tel: +31 78 7900 800 Nieuw-Vennep Lireweg 5 F, 2153 PH Nieuw-Vennep, Netherlands Tel: +31 20 8515 700, Fax: +31 20 8515 701 Rotterdam Van Weerden Poelmanweg 10, 3088 EB Rotterdam, Netherlands Tel: +31 10 8511 600, Fax: +31 10 8511 601 LGI Technical Logistics Den Bosch c/o Eijgenhuijsen BV Precisievervoer Aziëlaan 22A, 5232 BA Den Bosch, Netherlands Tel: +31 735 033 498 Drachten c/o Eijgenhuijsen BV Precisievervoer Galvanilaan 7, 9207 HG Drachten, Netherlands Ruurlo c/o Eijgenhuijsen BV Precisievervoer Spoorstraat 15, 7261 AE Ruurlo, Netherlands Tel: +31 573 45 31 80 POLAND LGI Polska Sp. z. o. o. Wrocław ul. Magazynowa 2, Bielany Wroclawskie, 55-040 Kobierzyce, Poland Tel: +48 71 38 22 525, Fax +48 71 72 24 142 ROMANIA LGI Romania SRL Arad I nr. 5A, Zona Industriala Vest, RO – 310502 Arad, Romania Tel: +43 2236 860 465 SWEDEN LGI Logistics Group International AB Borås Viaredsvägen 14, 504 64 Borås, Sweden Tel: +46 706 790 614 UNITED KINGDOM LGI Logistics Group International UK Milton Keynes 6 Deans Road, Old Wolverton, MK12 5NA Milton Keynes, England Tel: +44 19 08318 748 LGI Technical Logistics Birmingham c/o Bonds Worldwide Express Ltd Unit 6, The Gateway Estate, B26 3QD Birmingham, England Tel: +44 12 17822 233 USA ITG International Transports, Inc. Atlanta 100 World Drive, Suite 210, GA 30269 Peachtree City, USA Tel: +1 470 531 4500, Fax: +1 470 285 1411 Boston 6 Kimball Lane, Suite 230, MA 01940 Lynnfield, USA Tel: +1 617 455 60 20, Fax: +1 617 455 60 15  Elanders’ Annual and Sustainability Report 2023 Other information – Contact Elanders Mentor Media Web: www.mentormedia.com E-mail: sales@mentormedia.com President: Kok Khoon Lim Mentor Media Ltd Corporate HQ 47 Jalan Buroh, #08-02, Singapore 619491 Tel: +65-6631 3333, Fax: +65-6896 3826 BRAZIL Mentor Gerenciamento de Supply Chain (Brasil) Ltda Rod SP 073, 1.800 – KM 37 1 Galpao Modulos 01, 02 E 03 – Bloco 300 – Distrito Industrial Do Lageado – Salto – SP Brazil Tel: +55 11 3195 3400 CHINA Chengdu Mentor Media Co., Ltd Floor3, BLDG 1, No.11 Zongbao Dadao Yiduan, Gongx- ing Street, Shuangliu Area, Chengdu City, 610213, China Tel: +86-28 6708 2288, Fax: +86-28 6708 2285 Mentor Media (Chongqing) Co., Ltd Unit 4, 5, 6, Level 3, HP PC Factory, No.22, Xi Yuan Yi Lu, Shapingba District, Chongqing City, 401332, China Tel: +86-23 8625 9808, Fax: +86-23 8625 9828 Mentor Media CBZ (Chongqing) Co., Ltd No. 6-2 Zongbao Road, Shapingba District, Chongqing City, 401331, China Tel: +86-23 6562 0388, Fax: +86-23 6566 0985 Mentor Supply Chain (Chong Qing-CBZ) Co., Ltd The ground floor, No. 6-2, Zongbao Road, Shapingba District, Chongqing City, 401331, China Tel: +86-23 6562 0388, Fax: +86-23 6566 0985 Mentor Media (Kunshan) Co., Ltd No.48, Factory Building, Central Avenue, Kunshan Export Processing Zone, Kunshan City, Jiangsu Province 215301, China Tel: +86-512 5772 0005 Mentor Media (Shenzhen) Co., Ltd Unit 301, 3rd Floor, Xingda Logistics Building, No. 3, Lanhua Road, Fubao Community, Fubao Street, Futian District, Shenzhen, 518038 China Tel: +86-755 8348 0418 Mentor Media (Shenzhen) Logistics Ltd Unit 3C, 3rd Floor warehouse, Xingda Logistics Building, No. 3, Lanhua Road, Fubao Community, Fubao Street, Futian District, Shenzhen, 518038 China Tel: +86-755 8348 0418 Mentor Media (Xiamen) Co., Ltd No. 56 HuLi Dadao, 3rd Floor, Unit S1 & S2, HuLi District, Xiamen, Fujian, 361006, China Tel: +86-592 570 3399, Fax: +86-592 570 3377 Shanghai Mentor Media Co., Ltd Floor 2, Unit 4 East Side, Land 71#, No. 211 Qinqiao Road, Pudong, Shanghai, 201206, China Tel: +86-21 5834 1893/5834 2368/5834 1699 Mentor Shanghai Trading Co., Ltd Unit A-808C, No.188 Yesheng Road, China (Shanghai) Pilot Free Trade Zone (Yangshan), Shanghai, 201308, China Tel: +86-21 6106 0899 Asiapack Ltd 2/F, Dorset House, Taikoo Place, 979 King’s Road, Quarry Bay, Hong Kong Web: asiapack.com E-mail: info@asiapack.com Tel: +852 2735 1163 Asiapack (Shenzhen) Co., Ltd. 3rd floor, Nb.2 Jinsheng 4th Rd, Lanzhu Rd North side. Shenzhen Export Processing Zone, Pingshan, Shenzhen, 518118, China Web: asiapack.com E-mail: info@asiapack.com Tel: +86 755 8966 6950 CZECH REPUBLIC Mentor Media Czech s.r.o. Vlastimila Pecha 1302/2, Brno, 627 00, Czech Republic Tel: +420 515 577 401 INDIA Mentor Printing and Logistics Pvt. Ltd Registered Office and Print & Packaging Operations – DTA Unit (Domestic Tariff Area ) B-50, SIPCOT Industrial Park, Irukkattukottai – 602 117, Sriperumbudur Taluk, Tamilnadu, India Tel: +91 44 7110 3600, Fax: +91 44 7110 3902 SCM Operations – DTA Unit. (Domestic Tariff Area) B-51, SIPCOT Industrial Park, Irukkattukottai – 602 117, Sriperumbudur Taluk, Tamilnadu, India Tel: +91 44 7110 3600, Fax: +91 44 7110 3902 SCM Operations – SEZ Unit – (Special Economic Zone) Plot No. DV-2, SIPCOT HI-TECH SEZ, Sriperumbudur, Kancheepuram (Dist.) – 602 106, Tamilnadu, India Tel: +91 44 6714 4218, Fax: +91 44 6714 4246 MEXICO Mentor Media Juárez S.A. de C.V. Libre Comercio No. 2164, Parque Industrial Américas, Cd. Juárez, Chih. C.P. 32575, Mexico Tel: +52 656 257 1603 SCM Operations - Monterrey Avenida Miguel Alemán 2455, Parque Industrial via 54, 66627 Cd Apodaca, N.L., Mexico Mentor Supply Chain Mexico S.A. de C.V Libre Comercio No. 2164, Parque Industrial Américas Cd. Juárez, Chih. C.P. 32575, Mexico SINGAPORE Mentor Media Ltd Fulfillment Plant 24 Penjuru Road, #09-02 Singapore 609128 KWE Jurong Hub 3A, 3B, 4A, 4B, 7 Bulim Street, Singapore 64817 TAIWAN Mentor Media Taiwan Branch Rm. 2, 7F., No.146,Wenxing Rd., Guishan Dist, Taoyuan City, 333611, Taiwan Tel: +886-3-3279389#401, Fax: +886-3279382 THAILAND Mentor Supply Chain (Thailand) Co. Ltd 999, Gaysorn Building, 5th Floor, Unit 5B-1, Ploenchit Rd., Lumpini, Patumwan, Bangkok 10330, Thailand USA Mentor Media (USA) Supply Chain Management, Inc. 865 South Washington Ave, San Bernardino, CA, 92408, USA Tel: +1 909 930 0800, Fax: +1 909 930 0807 Mentor Supply Chain USA Inc. 1395 Polk Drive, Warsaw, Indiana, 46582, USA Tel: +1 574 376 2953, Fax: +1 574 376 2963 VIETNAM Mentor Supply Chain Vietnam Ltd Pacific Place Building, 10 Floor 83B Ly Thuong Kiet Street, Tran Hung Dao ward, Hoan Kiem District 100000, Hanoi, Vietnam Kammac Ltd. Web: www.kammac.com E-mail: info@kammac.com Tel: +44 1695 727272 MD: Ged Caribini Kammac Skelmersdale Head Office M58 Distribution Centre, Gillibrands Rd, Skelmersdale, WN8 9TA, England Kammac Skelmersdale M58 365 M58 Distribution Centre, Gillibrands Rd, Skelmersdale, WN8 9TA, England Kammac Skelmersdale Outstore 200 M58 Distribution Centre, Gillibrands Rd, Skelmersdale, WN8 9TA, England Kammac Knowsley 200 Ainsworth Lane, Knowsley, Merseyside, L34 9EU, England Kammac Knowsley Jupiter 143 143 Deacon Park, Hornhouse Lane, Knowsley, Merseyside, L33 7YQ, England Kammac Knowsley Titan 525 9, Coopers Point, Knowsley Industrial Park, Coopers Lane, Liverpool, L33 7TU, England Kammac Wavertree 170 1, Pighue Lane, Wavertree, Liverpool, Merseyside, L7 9QA, England Kammac Runcorn 152 Aston Lane North, Preston Brook, Runcorn, WA7 3GE, England Elanders’ Annual and Sustainability Report 2023  Other information – Contact Elanders Kammac Manchester 208 21 Commerce Way, Trafford Park, Manchester, M17 1HW, England Kammac Worksop 68 Unit 1, Highgrounds Industrial Estate, Worksop, Nottinghamshire, S80 3AT, England Kammac Burton 16 Molson Coors Brewery E Gate Entrance, Hawkins Lane, Burton-on-Trent, DE14 1PT, England Kammac Preston 90 366 Four Oaks Road, Walton Summit, Preston, Lancashire, PR5 8AP, England Kammac Warrington 379 379 Dallam Lane, Warrington, WA2 7NT, England Kammac Widnes 258 258, Unit 2, Gorsey Lane, Widnes, WA8 0RN, England Kammac Burton 101 Quintus Park, Unit 5, Port way, Branston, Burton on Trent, DE14 3PD, England Elanders Sverige AB Web: www.elanders.se E-mail: info.sweden@elanders.com Tel: +46 31 750 00 00 MD: Mattias Olofsson Viared Box 22035, 501 14 Borås, Sweden Vällingby Box 518, 162 15 Vällingby, Sweden ReuseIT Sweden AB Växjö Web: www.reuseit.se E-mail: info@reuseit.se Tel: +46 470 70 35 00 MD: Daniel Steneby Illervägen 13, 352 45 Växjö, Sweden Gothenburg Web: www.reuseit.se E-mail: info@reuseit.se Tel: +46 31 313 32 59 MD: Daniel Steneby Första Långgatan 30, 413 27 Gothenburg, Sweden Azalea Global IT AB Web: www.azaleait.se E-mail: info@azaleait.se Tel: +46 31 313 32 59 MD: Daniel Steneby Första Långgatan 30, 413 27 Gothenburg, Sweden Print & Packaging Solutions President: Sven Burkhard GERMANY Elanders Waiblingen GmbH Anton-Schmidt-Straße 15, 71332 Waiblingen, Germany Web: www.elanders.de E-mail: info.germany@elanders.com Tel: +49 71 51 95 63 0 Elanders Donauwörth GmbH Am Stillflecken 4, 86609 Donauwörth, Germany Web: www.elanders.de E-mail: info@schaetzl.com Tel: +49 90 67 06 34 0 Elanders Kaisheim GmbH Gewerbepark 5, 86687 Kaisheim, Germany Web: www.elanders.de E-mail: info@druckerei-schmid.de Tel: +49 90 99 96 95 0 d|o|m Deutsche Online Medien GmbH Anton-Schmidt-Straße 5, 71332 Waiblingen, Germany Web: www.deutsche-online-medien.de E-mail: info@d-o-m.org Tel: +49 71 51 165 17 0, Fax: +49 71 51 165 17 99 fotokasten GmbH Anton-Schmidt-Straße 5, 71332 Waiblingen, Germany Web: www.fotokasten.de Tel: +49 71 51 165 17 0, Fax: +49 71 51 165 17 99 myphotobook GmbH Oranienstraße 183, 10999 Berlin, Germany Web: www.myphotobook.de Tel: +49 180 5 846 846, Fax: +49 3052 0 047 441 HUNGARY Elanders Hungary Kft Zalalövő Újmajor u. 2, 8999 Zalalövő, Hungary Web: www.elanders.com/hun E-mail: info.hungary@elanders.com Tel: +36 92 57 25 00, Fax: +36 92 57 10 78 Jászberény 5100 Jászberény, Fémnyomó u. 1., Hungary Web: www.elanders.com/hun E-mail: info.hungary@elanders.com Tel: +36 92 57 25 00, Fax: +36 92 57 10 78 ITALY Elanders Italy S.r.l. Via Delle Industrie 8, 31050 Ponzano Veneto (TV), Italy Web: www.elanders.com/ita Tel: +39 (0) 422 44 22 53, Fax: +39 (0) 422 44 22 53 POLAND Elanders Polska Sp. z o.o. Płońsk Ul. Mazowiecka 2, 09-100 Płońsk, Poland Web: www.elanders.com/pol, www.elanders.pl E-mail: recepcja.plonsk@elanders.com Tel: +48 23 662 23 16, Fax: +48 23 662 31 46 Wrocław Wrocławska str. 33D, 55-095 Długołęka, Poland Web: www.elanders.com/pol, www.elanders.pl E-mail: recepcja.plonsk@elanders.com Tel: +48 71 346 06 78 UNITED KINGDOM Elanders Ltd Merlin Way, New York Business Park, North Tyneside, NE27 0QG, England Web: www.elanders.co.uk E-mail: addingvalue@elanders.com Tel: +44 1912 80 04 00, Fax: +44 1912 80 04 01 Elanders McNaughtan’s Ltd (Elanders Packaging) Unit 4, 21 James Street, Righead Industrial Estate, Bellshill, ML4 3LU, Scotland Web: www.elanders.co.uk E-mail: info.scotland@elanders.com Tel: +44 1236 733 833 Spreckley Limited 79 Arnold Road Nottingham, NG6 0ED, England Web: www.elanders.co.uk E-mail: David.Clark@elanders.com Tel: +44 115 978 3786, Fax: +44 115 978 3784 USA ElandersUSA, LLC Acworth 4525 Acworth Industrial Drive, Acworth, Georgia 30101, USA Web: www.elandersamericas.com Tel: +1 770 917 70 00, Fax: +1 770 917 70 20 Midland Information Resources Company 5440 Corporate Park Drive, Davenport, IA 52807, USA Web: www.elandersamericas.com Tel: +1 563 359 3696, Fax: +1 563 823 7651  Elanders’ Annual and Sustainability Report 2023 Other information – Contact Elanders Elanders’ Annual and Sustainability Report 2023  Elanders AB’s Annual General Meeting will be held on April 19, 2024. Address: Södra Porten Konferenscenter Flöjelbergsgatan 1C Mölndal, Sweden More information about the meeting and how the shareholders who wish to participate can register will be published in connection with the notice convening the meeting and will also be published on www.elanders.com. Other information – Annual general meeting and financial calendar Annual general meeting and financial calendar Shareholders in Elanders AB (publ) are welcomed to the company’s Annual General Meeting Friday 19 April 2024.  Apr.  Annual General Meeting  Apr.  Quarterly Report Q1, 2024  Jul.  Quarterly Report Q2, 2024  Oct.  Quarterly Report Q3, 2024  Jan.  Year-end Report 2024 → → → → → FSC® labeled Annual and Sustainability Report For the Annual and Sustainability Report 2023, we have used the 100 percent recycled paper Circleoffset Premium White with a basis weight of 120 g/m 2 for the inlay, and 300 g/m 2 for the cover. The paper’s very high whiteness makes it suitable even for the most demanding printed matter. It has high environmental performance and is certified according to FSC® Recycled, EU Ecolabel and Der Blau Engel. Production facts Art Direction and design: Narva Communications. Production: Elanders AB in collaboration with Narva Communications. Paper: Cover: Circleoffset Premium White 300 g. Inlay: Circleoffset Premium White 120 g. Tryck: Elanders Kaisheim GmbH, Germany, a member of Elanders Group. Photo Bergen Logistics: page 37. Elanders: page 3, 114. Kammac: pages 38, 148. LGI: pages 3, 10–11, 23–29, 32–33, 35, 39, 46, 127. Mentor Media: pages 30–31. Mikael Göthage: pages 3, 12–13, 36–37, 39, 146–149. Pratham: page 127. Shutterstock: page 36. Universeum: page 127. WIN WIN Gothenburg Sustainability Award: page 127. Distribution policy Elanders’ Annual and Sustainability Report is distributed to those share holders who have actively ordered a printed version, certain customers and other interested parties. It is possible to download the Annual and Sustainability Report both in Swedish and English from Elanders’ website. Those interested can via the website read Elanders’ Annual Reports from the last ten years. Translation Björn Raunio, Camille Forslund and Elanders. This document is essentially a translation of the Swedish language version. In the event of any discrepancies between this translation and the original Swedish document, the latter shall be deemed correct. Elanders Annual and Sustainability Report 2023