Presentation 2014 /15

Transcription

1 Presentation 2014 /15

2 Table of contents 1 Industri Udvikling overview 2 New companies 3 Presentation of Industri Udvikling 5 Kvist Industries A/S production of Danish design furniture 6 PcP A value creating journey over 16 years 8 Doing it differently than others Financial highlights 9 Industri Udvikling A/S 10 Industri Udvikling II K/S 11 Industri Udvikling III K/S 12 Report Overview of portfolio companies 15 Geografic location of companies 17 Portfolio companies 35 Exits 36 Contact us 37 Employees

3 Company information Industri Udvikling A/S CVR (Central Business Register) no.: Founded: 27 October 1994 Board of Directors: Jens Josefsen, Chairman Dines Schmidt Nielsen Peter Lerbrandt Owners: AP Pension Livsforsikringsaktieselskab (life insurance company) Lønmodtagernes Dyrtidsfond (LD) (Danish pension fund) Pensionskassen for Børneog ungdomspædagoger (pension fund for children and youth workers) Sampension Private Equity K/S (private co-pension) Industri Udvikling II K/S CVR (Central Business Register) no.: Founded: 18 December 2003 Board of Directors: Jens Josefsen, Chairman Dines Schmidt Nielsen Peter Lerbrandt Owners: AP Pension Livsforsikringsaktieselskab (life insurance company) Industriens Pensionsforsikring A/S (industrial pension insurance) Lønmodtagernes Dyrtidsfond (LD) (Danish pension fund) PensionDanmark Pensionsforsikringsaktieselskab (public pension insurance company) Sampension Private Equity K/S (private co-pension) Industri Udvikling III K/S CVR (Central Business Register) no.: Founded: 26 May 2010 Investment committee: Henrik Thulesen, Chairman Birger Brix Peter Lerbrandt Christian Cordsen Nielsen Owners: Fagbevægelsens Erhvervsinvestering A/S (trade union business investment) Industriens Pensionsforsikring A/S (industrial pension insurance) Lønmodtagernes Dyrtidsfond (LD) (Danish pension fund) Palsgaard Gods A/S (Schou-fondet) (the Schou Foundation) PensionDanmark Pensionsforsikringsaktieselskab (public pension insurance company) Pensionskassen for Børneog Ungdomspædagoger (pension fund for children and youth workers) Employees Address and additional Information: Gothersgade 175, 2. sal 1123 Copenhagen K Denmark Telephone: Fax: [email protected] Employees: Lars Blavnsfeldt, CEO Lars Buhl Dan Højgaard Jensen Ronnie Møller-Thorsøe Lene Krogh Ellgaard Joan Jensen Accountants: KPMG State-authorised public accountants State-authorised accountant Per Gunslev

4 Companies ABL Food A/S Supplier of commodities to the food industry Boform A/S Kitchen, wardrobe and office supplies Borch Textile Holding A/S Work clothes and textiles for industrial laundries Bramidan Holding A/S Compression of recyclable packaging waste C&H System A/S Handling and packaging facilities Christian Berg (CB Invest Holding ApS) (LLP) Refrigeration and ventilation systems Confac A/S Concrete facade elements Danelec Marine A/S Black boxes for ships, electronic charts Dan-Iso Holding A/S Insulation materials Dansk Mink Papir & DMP Partners A/S Equipment for the mink sector and industry Despec Nordic (Neos Invest A/S) IT and office supplies EM-fiberglas a/s Glass fibre production Euro Therm Invest A/S District heating plants FSG Foods ApS Total supplier of fish and sushi-related products Global Wind Power Europe A/S Project development for the wind turbine market HT BENDIX A/S Fittings and accessories for the furniture, kitchen and forestry industry Holmris A/S Office furniture and more JHL Holding A/S Vacuum tankers Jyden Bur A/S Cattle and pig housing supplies Kitchn A/S Kitchens, bathrooms and wardrobes KD Maskinfabrik A/S Solutions for water treatment plants and sewage treatment Kvist Industries (Kvist Industries Invest ApS) High-quality furniture KVM Industrimaskiner (KVM Invest ApS) Concrete and asphalt plants Lindø Steel A/S Cutting and machining of large steel plates Nordisk Company A/S Outdoor equipment and clothing Omada A/S Software and IT consulting business Omni Technical Solutions A/S Vehicle repair shops and leasing of rolling stock Resolux ApS Light fittings for the wind turbine industry Ribe Jernindustri A/S (Ribe Jern Holding A/S) HUDEVAD and RIOpanel radiators Scanflavour Holding A/S Functional proteins for the food industry SGM Holding ApS Lighting products based on LED technology Theca A/S Upholstered furniture Total Wind Group A/S Installation and servicing of wind turbines Uno Danmark Holding A/S Clothing made of natural materials for women Virklund Sport A/S Facilities and equipment for sports WoodCare Denmark A/S Products for wood coating

5 Industri Udvikling overview A different investment company We primarily invest in Danish production companies as a minority shareholder. Industri Udvikling primarily invests in Danish production companies with a turnover of up to DKK million is a minority shareholder is primarily owned by Danish employees through pension funds has a long reference list; has invested in a total of 117 companies since 1994 has a small number of very experienced employees works in a non-bureaucratic way has a quick decision-making process carries out necessary analyses and investigations itself does not require an exit strategy upon entry prioritises value creation more than cash flow is interested in investment-intensive companies is interested in small companies is also interested in companies facing temporary financiel difficulties contributes to the operations of the company through the board does not participate in day-to-day operations and puts strong emphasis in competent management finds it important that the management is a significant co-owner 1 Industri Udvikling A/S Founded in 1994 DKK million Result Equity Internal rate of return (IRR) % 10.8% 10.7% 10.7% 10.9% Industri Udvikling II K/S Founded in 2004 DKK million Resultat Egenkapital Intern rente (IRR) % 14.1% 14.0% 13.7% 12.5% Industri Udvikling III K/S Founded in 2010 DKK million Result Equity Internal rate of return (IRR) % 8.8%

6 New companies 2 Industri Udvikling continues to receive many enquiries with regard to investment opportunities. The number of companies wishing to change owners or wishing to strengthen solvency is high, whereas the supply of risk capital remains limited certainly within the segment of companies with a turnover of up to DKK million. For many of the companies that Industri Udvikling visits, operations have turned positive once again, perhaps even characterised by growth opportunities after several difficult years during the financial crisis. The bank sector has started lending once again, but remains reluctant to finance the growth of companies with low solvency. Capital injection is therefore attractive for the individual company. Industry Udvikling is expecting to invest in 4 8 new companies in 2014 and the following years. In 2013, Industri Udvikling invested in: Borch Textile Holding A/S: Work wear and textiles for industrial laundries Christian Berg A/S (CB Invest Holding ApS): Refrigeration and ventilation systems Global Wind Power Europe A/S: Project development for the wind turbine market Kvist Industries A/S (Kvist Industries Invest ApS): High-quality furniture SGM Holding ApS: Lighting products based on LED technology The latest investments up until early June 2014 are: KD Maskinfabrik A/S: Solutions for water treatment plants and sewage treatment FSG Foods ApS: Total supplier of fish and sushirelated products Christian Berg Global Wind Power Europe Kvist Industries SGM Christian Berg A/S designs, installs and services refrigeration and ventilation systems. Global Wind Power Europe A/S is a global project developer on the wind turbine market specialising in developing, implementing and administering wind turbine projects for financial investors. Kvist Industries A/S produces highquality furniture, primarily armchairs, dining chairs and tables. SGM A/S develops and sells lighting products based on LED technology for the entertainment industry, architecture and retail.

7 Presentation of Industri Udvikling Business foundation / investment area Industri Udvikling was founded in Industri Udvikling primarily invests in Danish manufacturing companies with a turnover of up to DKK million for the purpose of developing these companies over a number of years. Industri Udvikling exercises active ownership by participating in the board of directors and keeping in close touch with the management in each portfolio company. Industri Udvikling is always a minority shareholder. Industri Udvikling regards it as crucial for the company s development that the management is a major co-owner. Industri Udvikling s initial investment is typically around DKK 5 20 million, for which Industri Udvikling attains ownership of 30 40%. Industri Udvikling may enter into collaboration with other investors if the investment need is greater. Industri Udvikling invests in connection with generational change, other changes in ownership, growth beyond what the company s profit can finance and, occasionally, in companies that have lost a substantial amount of their equity. Industri Udvikling is not tied to specific industries, but invests broadly within manufacturing companies. Investments are made in companies with their own product as well as in companies that are subcontractors. Industri Udvikling prefers each company to have or be able to achieve a strong position in its industry. The decision to invest in companies of a certain size is based on the fact that the somewhat larger companies are normally less vulnerable and they are more receptive towards the approaches that Industri Udvikling represents. Furthermore, these companies have several years experience within their business area. This provides a more solid basis for assessment of the company. Industri Udvikling only invests in companies with Danish foundation. Investment form Industri Udvikling makes investments through the provision of equity and/ or by offering subordinated loans with the right to subscribe for shares. Industri Udvikling shares the rights of the owners, regardless of whether the investment is made as a subordinated loan or as share capital. In many cases, subordinated loans are used to supplement the share capital, either by reducing the amount to be supplied as share capital or to achieve a better-suited ownership structure. Subordinated loans associated with the right to subscribe for shares are often a constructive and fruitful form of investment. This can pave the way for valuation discussions, as the subscription price may be dependent on the development that is achieved in the future. Industri Udvikling always wishes to be represented on the companies boards of directors. This applies even if it is not a case of formal ownership but merely the granting of a subordinated loan. The composition of the board of directors is adjusted according to each company. Industri Udvikling prefers the chairman to be an experienced person with both practical CEO experience and time to act as a sparring partner for the management and with sufficient independence from the shareholders. Industri Udvikling always participates directly in the board of directors work. Industri Udvikling s work process Industri Udvikling receives many enquiries every year that represent an investment opportunity. Some of them are very well-prepared investment prospectuses; others are presented as ideas during a telephone conversation. Industri Udvikling visits businesses each year. The company presents itself and its situation and options are discussed, which forms the basis for a discussion as to whether the parties can collaborate on further developing the business. 3

8 Presentation of Industri Udvikling 4 Industri Udvikling - has a small number of very experienced employees - works in a non-bureaucratic way - has a quick decision-making process - carries out all necessary analyses and investigations itself Industri Udvikling - has no requirement for any exit strategy at the time of entry - prioritises value creation more than cash flow After the first visit, Industri Udvikling often sends a letter within the first week if the discussions that were had are deemed positive. The letter usually suggests models as to how capital can be injected as well as key prerequisites for the implementation of these models. If it is agreed that the investment should be completed, two documents are prepared: an ownership agreement and an agreement associated with the investment. The agreements establish the respective rights and obligations of the parties. Industri Udvikling rarely carries out a formel due diligence prior to investment. Instead, it performs a general review, assessment and discussion of the company, its history and its potential. More important and/or risky areas are naturally subject to more exhaustive evaluation. Industri Udvikling hires lawyers to prepare contractual material. The evaluation of the company and its potential is carried out by Industri Udvikling s employees, as this closer dialogue helps Industri Udvikling get to know the company. All potential investments are presented to Industri Udvikling s Board of Directors/Investment Committee for approval. Industri Udvikling s investments Since Industri Udvikling was founded in 1994, it has invested in a total of 117 companies. During that time, Industri Udvikling has been the primary investor within its own segment. Similarly, a well-functioning team has been established with solid experience in both investment and the subsequent business development. Today, Industri Udvikling has a portfolio of 36 active companies. As per 31 December 2013, the portfolio has an estimated value of DKK 850 million. Industri Udvikling is legally divided into the entities: Industri Udvikling A/S (public limited liability company), Industri Udvikling II K/S (limited partnership) and Industri Udvikling III K/S (limited partnership), the latter being the entity that completes new investments. Exits There is no set time frame as to how long a company can remain under the ownership of Industri Udvikling. In general, once a company is no longer developing, or when Industri Udvikling no longer feels that it can add anything to the company, the time has come to exit. This may involve sale of the company as a whole or only sale of Industri Udvikling s shareholding.

9 Kvist Industries A/S Production of Danish design furniture 5 Production of Danish design furniture In the autumn of 2013, Industri Udvikling bought 25% of the share capital in Kvist Industries in Årre near Esbjerg, Denmark. tions; Årre (Denmark), Slovakia and Latvia. The largest production unit is now in Latvia with more than 250 employees. The company employs more than 100 people in Denmark. Kvist Industries is the customers production and logistics partner. The furniture dealers have limited production know-how and therefore need an experienced manufacturer already during the design stage of new furniture partly to ensure that the design is production-friendly, and partly to assist in understanding the boundaries in terms of what can be done with wood. Kvist is a valued partner in this respect. Kvist ensures the entire process from when the customer places an order for a product until the product is delivered to the end customer, i.e. Kvist manages the entire production and logistics The purchase occurred when the two main shareholders and directors, Michael and Søren Kvist, decided to strengthen the overall management by hiring a new CEO. They chose Jens Bach Mortensen, who served as the director of Jeld-Wen for many years. When Jens was appointed, the main shareholders wanted to sell part of their shares. Kvist Industries is Northern Europe s leading manufacturer of design furniture in moulded and solid wood. It produces a significant part of Fritz Hansen s, Fredericia Furniture s, Hay and Muuto s furniture selections as well as manufacturing for many other suppliers of design furniture. Kvist has the rights to FDB s furniture line and manufactures the furniture for this line. Kvist helps develop its customers products. Production is carried out in three locaprocess for the customers. Kvist is generally perceived as being competitive with anyone in the world. The Scandinavian design houses have experienced strong growth in recent years. This growth has affected Kvist as well, and the company is growing by 25 30% annually. It is a major management task to ensure smooth processing of a large quantity of orders that is increasing so rapidly. Hence, there was a need for additional management resources within the company. This was resolved with the appointment of Jens Bach. The collaboration between the three directors and the customers is running smoothly. Industri Udvikling strongly believes that Kvist Industries will develop into a large, profitable Danish industrial company in the coming years.

10 PcP A value creating journey over 16 years 6 PcP A value creating journey over 16 years After 16 years of productive development and co-ownership of PcP, Industri Udvikling sold its shares in the company in 2013 and achieved an annual return of approx. 20%. a large standard selection of gratings as well as customer-specific products such as highly specialised heat shield decks for oil rigs. The products are used by customers in very diverse industries such as construction, the chemical industry, the food industry, transportation, energy and the offshore industry. The company is known for its high quality and for developing new, ground-breaking products/construction techniques. For example, PcP was the first company to introduce the famous hole grating construction and scaffolding planks approved according to EU standards. A/S Maskinfabrikken PcP was founded in 1927 and develops and manufactures gratings, metal steps and scaffolding planks for the European market. PcP currently has approx. 275 employees, sales companies in 11 countries and an export share of more than 75%. The products include Industri Udvikling became a co-owner of PcP in 1997 when the company faced severe liquidity challenges and an imminent generational change by then-owner and general manager Peter Fahrsen. However, the generational change was not implemented until ten years later, as Peter Fahrsen s entrepreneurial spirit and sense of product development made him the right head of the company despite his advanced age during this stage of the company s development. The basis of the growth process which PcP has experienced over the past 16 years began with the capital injection from Industri Udvikling, which initially helped bring calmness to operations. Peter Fahrsen, an entrepreneur, was once again able to focus on what he did best, i.e. product development and sales, rather than putting out fires and attending bank meetings about liquidity. The ability to focus on the future development and the company s great expertise in product development meant that the foundation for growth

11 PcP A value creating journey over 16 years 7 was once again present. At the same time, resources were freed up to focus on further optimising production through automation, which enabled PcP to manufacture at a consistently high level of quality and at competitive prices with short lead times. Overall, this combination prompted successful upselling both on the domestic market and in the rest of Europe, and thus the company was able to switch to a new level for the first time. In 2001, the second phase of the growth cycle was initiated through the acquisition of the company s biggest competitor and the former market leader in Denmark ElefantRiste. The acquisition made PcP Denmark s leading player in gratings and safety gratings, and at the same time a number of new customer segments were added, while generally improved market earnings were achieved. In 2007, the generational management shift was completed when the new CEO, John Nielsen, took over and launched the next stage of development. Like many other industrial companies, PcP was challenged at this stage by the financial crisis as well as increasing competition from Asia. The necessary steps included a general professionalisation of the company through further optimisation of the production flow, strengthening of the organisation, and closer integration of the foreign sales companies. Despite a major drop in revenue, this helped the company maintain a competitive platform, and it caught up relatively quickly during the crisis. This has been successfully achieved and today PcP is back at the same revenue level as before the crisis and, at the same time, with a much stronger platform for future growth. In May 2013, PcP was sold to the current CEO, John Nielsen, and the private equity fund Maj Invest Equity. When Industri Udvikling decided to invest in PcP in 1997, the decision was based on revenue of DKK 132 million and result before tax of DKK 4 million. The multi-phase development has made PcP one of today s leading companies in Europe in the field of quality gratings and safety gratings and has led to a threefold increase in turnover and a tenfold increase in earnings. For Industri Udvikling, the journey over the past 16 years was equally successful, with an annual return of approx. 20% on the investment.

12 Doing it differently than others Article from the Jyllands-Posten newspaper. By Jens Erik Rasmussen and Jesper Olsen 8 Doing it differently than others The investment company Industri Udvikling has the most companies in its portfolio The business model is the opposite of private equity funds The investment director of Industri Udvikling states that it differs significantly from traditional private equity funds, which often get all the attention in the media. Nevertheless or maybe because of this Industri Udvikling has actively invested in far more companies than the better- known private equity funds and venture capital companies. This is evident in an analysis conducted by Dansk Aktie Analyse (Danish Stock Analysis) for the newspaper Jyllands- Posten. Over the past year we have invested in ten companies. That is a relatively large number. We get lots of enquiries, and more than in the past. There are many companies that need capital because the banks are more reluctant to lend money, says Lars Buhl. Since 1994, Industri Udvikling has injected money into more than 100 companies. Currently, the company has large interests in more than 35 companies, which, together, have sales of approx. DKK 6 billion and employ approx. 5,000 people. Typically, small and medium-sized companies with a turnover of up to DKK million are the target for investment. Industri Udvikling is often able to provide funding in connection with a generational change. A different model In a number of areas, Industri Udvikling s business model is the complete opposite of the approach of conventional capital funds. We are always minority shareholders and have no desire to hold a majority in the companies. On the contrary, we prefer multiple partners in the ownership structure, as it is fruitful when several parties need to come to an agreement, says Lars Buhl. Making demands In turn, Industri Udvikling always sits on the board and demands a good, active and strong board of directors. Industri Udvikling mostly invests in companies where the director or the executive board has an owner s share, so that management and investors have a common interest in creating growth and development. As opposed to private equity funds, the investment firm has no strategy for when or how to get out of the investment. Ownership typically lasts longer than the three to five years which is often the norm for private equity funds. Our horizon is somewhat longer. As long as the company is growing and showing good results, we are in, says Lars Buhl. Quick agreement Once contact has been made and there is mutual interest, it usually takes only a very short time before Industri Udvikling and the company in question Lars Buhl, Investment Director have agreed on a contractual basis. Industri Udvikling does not show up with an army of consultants who scrutinise all the documents. The mantra is a non-bureaucratic and quick decisionmaking process. There is no reason to tie management to the copier for several months as that takes up too many resources in a medium-sized company. We believe our own eyes, and we look at the business foundation more than checking the numbers. At the same time, it is crucial that the company has the right management. This is especially true in small and medium-sized companies that don t have a large number of employees to draw on, says Lars Buhl. The reason behind the many investments in recent years is not least the fact that it has become cheaper to buy after the financial crisis and the economic downturn. At the same time things have calmed down, so you can look into the future.

13 Financial highlights Industri Udvikling A/S Industri Udvikling A/S Key figures DKK 1,000 9 Profit and loss statement Total income... 81, ,533 35,546 39,247 54,339 Costs... 5,112 5,645 6,374 6,591 3,041 Profit before financial items... 75, ,888 29,172 32,656 51,298 Financiel expenses... -1, Profit before tax... 74, ,753 29,052 32,420 51,209 Tax Profit before tax... 74, ,241 29,342 33,079 51,695 Balance sheet Investments in portfolio companies , , , , ,489 Receivables... 18,649 4,531 4,811 12,278 3,477 Cash ,454 6,455 - Total assets , , , , ,966 Total equity , , , , ,576 Current liabilities... 51,350 25,471 32,264 16,004 9,390 Total liabilities , , , , ,966 Dividends, interim dividends ,000 60, ,000 90,000 The year s portfolio investments... 8,255 26,115 19,714 6,291 9,221 Exits/divestments ,525 49, ,207 78,318 Repayments of loans... 7,050 3,425 5,602 14,413 4,532 Key figures Internal rate of return (IRR), accumulated % 10.8% 10.7% 10.7% 10.9% Yield on portfolio investments % 24.7% 7.8% 12.0% 27.6% Solvency % 94.7% 92.9% 93.1% 95.0% Cost percentage % 1.2% 1.3% 1.4% 1.2% Official annual reports (in Danish) for Industri Udvikling A/S from 2013 and recent years are available at

14 Financial highlights Industri Udvikling II K/S 10 Industri Udvikling II K/S Key figures DKK 1,000 Profit and loss statement Total income ,176 7,130 46,534 40,661 14,379 Costs... 6,805 5,310 4,494 4,675 4,917 Profit before financial items ,981 1,820 42,040 35,986 9,462 Financiel income/expences Net profit ,863 1,852 41,457 35,785 9,456 Balance sheet Investments in portfolio companies , , , , ,141 Receivables... 7,733 8,999 11,089 29,711 39,601 Cash... 50, ,348 Total assets , , , , ,090 Total equity , , , , ,152 Current lialibities... 12,977 20,448 30,398 15,966 8,938 Total liabilities , , , , ,090 Distribution ,000 55, The year s portfolio investments... 46,328 39,194 43,143 1,031 6,831 Exits/divestments... 54,873 18,237 11, Repayments of loans... 22,593 11,345 27,878 9,143 14,500 Key figures Internal rate of return (IRR), accumulated % 14.1% 14.0% 13.7% 12.5% Return on portfolio investments % 2.1% 13.7% 12.0% 4.3% Solvency % 94.2% 91.3% 95.7% 97.6% Cost percentage % 1.2% 1.0% 1.2% 1.3% Official annual reports (in Danish) for Industri Udvikling II K/S from 2013 and recent years are available at

15 Financial highlights Industri Udvikling III K/S Industri Udvikling III K/S Key figures DKK 1, /5-31/ Profit and loss statement Total income... 1,098-26,367 31,810 53,642 Costs... 1,426 1,561 2,078 2,892 Profit before financial items ,928 29,732 50,750 Financiel income/expences Net profit ,675 29,661 50,228 Balance sheet Investments in portfolio companies... 60,330 79, , ,682 Receivables... 1,288 1,143 3,852 1,374 Cash... 5,955 28,019 4,698 11,071 Total assets... 67, , , ,127 Total equity... 67, , , ,302 Current liabilities ,411 26,483 31,825 Total liabilities... 67, , , ,127 Distribution The year s portfolio investments... 60,330 47, ,721 96,629 Exits/divestments ,716 Repayments of loans ,913 10,476 Key figures... Internal rate of return (IRR), accumulated... Neg. Neg. 0.5% 8.8% Return on portfolio investments... - Neg. 21.1% 19.0% Solvency % 98.7% 88.5% 91.0% Cost percentage % 1.3% 1.1% Official annual reports (in Danish) for Industri Udvikling III K/S from 2013 and recent years are available at

16 Report Investing in 117 companies has provided solid experience from many industries was another good year for many of Industri Udvikling s companies and hence also for Industri Udvikling. The results for Industri Udvikling A/S and Industri Udvikling III K/S were both in the area of DKK 50 million, while Industri Udvikling II K/S alone achieved a result of approx. DKK 10 million following the bankruptcy of a portfolio company. The three Industri Udvikling companies were founded in 1994, 2004 and 2010 respectively, and are therefore at different points in their life cycle. At this point, Industri Udvikling A/S has sold off most of its portfolio companies, and sales continued in The portfolio consisted of six companies at the end of Industri Udvikling II K/S has also completed several exits, and several of the companies of the remaining portfolio have reached a high level of maturity and are ready to be sold. The portfolio consisted of 15 companies at the end of Industri Udvikling A/S In 2013, Industri Udvikling A/S achieved a result of DKK 51.7 million (DKK 33.1 million) and has earned total annual interest of 10.9% on invested capital (IRR). Some of the positive value adjustments in 2013 included EM-fiberglas A/S, JHL Holding A/S, Omada A/S, PF Management Holding ApS, K.P. Holding A/S and WoodCare Denmark A/S. EM-fiberglas has really improved its financial performance and JHL Holding (Hvidtved Larsen) continues to develop in a positive direction. Omada has skilfully managed to emerge stronger from a setback in 2012 and appears even stronger than before. PF Management Holding (PcP) was sold during the year and K.P. Holding (K.P. Komponenter) was sold in early January WoodCare Denmark has undergone trimming of its production platform and is showing improved results. Total result for Industri Udvikling: 2013: DKK million 2012: DKK million 2011: DKK million 2010: DKK million 2009: DKK million 2008: DKK million 2007: DKK million At the end of 2013, Industri Udvikling III K/S had already built a strong portfolio of 18 companies. It invested in two companies in 2014 and is expected to invest in a few more before having used the base capital. Industri Udvikling IV K/S is expected to be established during In connection with the sale of PF Management Holding, DKK 90 million was paid to the shareholders as an interim dividend. Since its formation in 1994, Industri Udvikling A/S has invested DKK 831 million in 63 companies. After exits, the company had an active portfolio of six companies at the end of 2013 and the portfolio is valued at DKK million.

17 Report 2013 Industri Udvikling II K/S In 2013 Industri Udvikling II achieved a result of DKK 9.5 million (DKK 35.8 million) and earned total annual interest of 12.5% on invested capital (IRR). The main positive valuation adjustments for 2013 relate to ABL Food A/S, Dansk Mink Papir (DMP Partners A/S), Despec Nordic (Neos Invest A/S), Holmris A/S and Jydsk Planteservice A/S. ABL Food has recovered from its earning crisis and has increased its results. Dansk Mink Papir had another good year in which the company benefited from the mink farmers good earnings. Despec Nordic continued to deliver solid results. Holmris has impressed and used the crisis to consolidate its position on the Danish market. Jydsk Planteservice was sold at the end of February The result was affected negatively by the bankruptcy of Engsø Gruppen a/s a sad exit and considerable lost value for the group s three healthy subsidiaries, which all showed good results and solid order books. Industri Udvikling III K/S In 2013 Industri Udvikling III achieved a result of DKK 50.2 million (DKK 29.7 million) and earned total annual interest on invested capital of 8.8% (IRR). The main positive adjustments for 2013 relate to Borch Textile Holding A/S, HT BENDIX A/S and Scanflavour Holding A/S. Borch Textile Holding was purchased at the beginning of 2013 and has developed better than anticipated this year. HT BENDIX has completed an impressive development process over the last many years. Since the takeover in 2012, Scanflavour Holding has been characterised by strong growth in earnings. Since its formation in 2010, Industri Udvikling III K/S has invested DKK 315 million in 21 companies. After exits, the company had an active portfolio of 18 companies at the end of 2013 and the portfolio is valued at DKK million. So far, the company has invested in two companies in The future Industri Udvikling is offered numerous potential investment opportunities on an ongoing basis. In the coming years 4 8 new investments a year are expected. Industri Udvikling IV K/S is expected to be established during 2014 with a base capital of around DKK 400 million. It is assessed that Industri Udvikling s portfolio of companies gives reason to expect positive results for the coming years. Furthermore, Industri Udvikling expects exits in all three companies, which will enable good results in The expected positive development of the portfolio companies in Industri Udvikling III is also expected to provide this company with a good result in Since its formation late 2003, Industri Udvikling II K/S has invested DKK 532 million in 31 companies. After exits, the company had an active portfolio of 15 companies at the end of 2013 and the portfolio is valued at DKK million.

18 Overview of portfolio companies 14 Investment company Shareholding Business area Industri Udvikling A/S JHL Holding A/S (J. Hvidtved Larsen A/S) 29.7% Vacuum tankers Omada A/S 19.6% Software and IT consulting business Virklund Sport A/S 58.3% Facilities and equipment for sports WoodCare Denmark A/S 46.4% Products for wood coating EM-fiberglas A/S (est. 1998) 50.0% Glassfibre production Industri Udvikling II K/S Boform A/S 33.7% Kitchen, wardrobe and office supplies 7 Bramidan Holding A/S 40.0% Compression of recyclable packaging waste 8 Kitchn A/S 66.0% Kitchens, bathrooms and wardrobes Danelec Marine A/S 26.6% Black boxes for ships, electronic charts 10 Dan-Iso Holding A/S 50.0% Insulation material Despec Nordic (Neos Invest A/S) 34.0% IT and office supplies Dansk Mink Papir & DMP Partners A/S 37.8% Equipment for the mink sector and industry 13 Holmris A/S 30.3% Office furniture and more 14 Omni Technical Solutions A/S 48.8% Vehicle repair shops and leasing of rolling stock ABL Food A/S 40.0% Commodity supplier for the food industry 16 Jyden Bur A/S 30.0% Cattle and pig housing supplies Industri Udvikling III K/S Confac A/S 33.0% Concrete facade elements 18 Euro Therm Invest A/S 33.3% District heating plants 19 Resolux ApS 30.0% Light fittings for the wind turbine industry 20 Total Wind Group A/S 33.0% Installation and servicing of wind turbines KVM Industrimaskiner (KVM Invest ApS) 50.0% Concrete and asphalt plants 22 Ribe Jernindustri (Ribe Jern Holding A/S) 50.0% HUDEVAD and RIOpanel radiators 23 Uno Danmark Holding A/S 40.0% Clothes made of natural materials for women C&H System A/S 33.0% Handling and packing plant 25 HT BENDIX A/S 49.0% Fittings/accessories for the furniture industry, etc. 26 Lindø Steel A/S 40.0% Cutting and machining of large steel plates 27 Nordisk Company A/S 49.5% Outdoor equipment and clothing 28 Scanflavour Holding ApS 25.0% Functional proteins for the food industry 29 Theca A/S 33.3% Upholstered furniture Borch Textile Holding A/S 37.5% Work clothes and textiles for industrial laundries 31 Christian Berg (CB Invest Holding ApS) 32.5% Refrigeration and ventilation systems 32 Global Wind Power Europe A/S 6.7% Project development for the wind turbine market 33 Kvist Industries (Kvist Industries Invest ApS) 24.5% High-quality furniture 34 SGM Holding ApS 30.0% Light fittings based on LED technology KD Maskinfabrik A/S 31.0% Solutions for water treatment plants and sewage treatment 36 FSG Foods ApS 33.3% Total supplier of fish and sushi-related products The numbers refer to the map of Denmark on the opposite page.

19 Geografic location of companies Portfolio companies: - sales of DKK 6.3 billion - employing 5,100 people 15 Profits in excess of DKK 10 million before tax DKK million Scanflavour A/S 40.8 Omni Technical Solutions A/S 28.7 Total Wind Group A/S 21.3 J.Hvidved Larsen A/S 20.7 Holmris A/S 17.0 Theca A/S 16.5 Despec Nordic Holding A/S 14.6 Dansk Minkpapir A/S 13.4 Omada A/S Twenty-seven of Industri Udvikling s companies are located in Jutland, six on Zealand and three on Funen. In one company, the operating company is based in Dubai.

20 Portfolio companies 16 Portfolio companies Pages 17-34

21 Portfolio companies ABL Food A/S Boform A/S 17 The biggest-selling product sold by ABL Food is peeled sunflower seeds from Bulgaria. The product comes from Bulgaria s largest producer of sunflower seeds. Boform Line, white finish, corian and carrara marble. Excerpt from annual report (DKK thousand) 1/1 31/12 Result before tax -6, ,190 Result after tax -5, ,528 Equity ,317 Balance sheet 37,991 34,470 38,604 First investment year: 2008 Industri Udvikling II K/S owner s share: 40.0% Location: Aabenraa, Denmark Number of employees: 10 Executive Board: Hans Ludvig Lassen Board of Directors: Lars Blavnsfeldt, Chairman, Kurt Hansen, Hans Ludvig Lassen Accountant: Sønderjyllands Revision, Aabenraa, State-authorised account Michael Johansen Excerpt from annual report (DKK thousand) 1/1-31/12 Result before tax -2,877-1, Result after tax -2,277-1, Equity ,229 1,814 Balance sheet 11,079 9,372 7,250 First investment year: 2004 Industri Udvikling II K/S owner s share: 33.7% Location: Aalborg, Denmark Number of employees: 16 Executive Board: Lars Mehlum Sørensen Board of Directors: Henning Storm, Chairman, Lars Mehlum Sørensen, Lars Blavnsfeldt Accountant: Partner Revision, Ikast, State-authorised public accountants Lars Ole Mortensen and Morten Broberg Lind Commodity supplier for the food industry ABL Food A/S imports, approves and sells traditional and organic commodities. The products include a large variety of commodities. ABL Food does business with some of the world s leading manufacturers of sunflower seeds, flax seeds, pumpkin seeds, sesame seeds, sugar, raisins, tomatoes, walnuts, hazelnuts, almonds and marzipan. The products are typically imported from Asia, Turkey, South America, the U.S. and Europe. The products are sold to the industrial, bakery, wholesale and catering markets, primarily in Denmark and on the Scandinavian market. After a successful turnaround in 2012/13 and despite a major loss on a customer during the year, ABL Food A/S achieved an improved result in ABL Food A/S expects to increase both revenue and earnings in the coming years through increased market shares in the Nordic countries and through sales in northern Germany. Kitchen, wardrobe and office supplies Boform A/S has manufactured high-end luxury kitchens since The focus is on permanent kitchen solutions when it comes to expression and function. Boform has three distinct design lines: Line, Square and Frame. Line is characterised by timeless lines. Square is based on a 60 x 60 square, hence the name. Frame combines generations of Danish craftsmanship with all the functions and features that can be expected of a modern kitchen. The manufacturing facility is located in the Skudehavnen in Aalborg, Denmark, where all production is performed by skilled cabinetmakers. In 2013, Boform stabilised the business in general and delivered a positive result. This is partly due to increased sales on export markets, improved operation of the flagship store in Christian IX s Gade in Copenhagen, and deliverables for Project Jægergaarden the former Jægersborg Barracks. Boform is seeing an increased demand from other countries, and accordingly it is working to expand the distribution network abroad.

22 Portfolio companies 18 Borch Textile Holding A/S Bramidan Holding A/S Borch Textile Group is one of Scandinavia s leading suppliers of textiles for industrial laundries. The company s products are sold widely within the health care industry, industry as a whole and the hospitality and restaurant industries. The national Swedish culinary team are end-users, among many others. Bramidan develops and manufactures equipment for compressing recyclable waste. Excerpt from annual report 2011*) 2012*) 2013*) (DKK thousand) 1/1 31/12 Result before tax 5,306 4,856 8,235 Result after tax 4,399 4,125 6,753 Owner s share 19,436 19,828 17,461 Balance sheet 42,341 44,256 49,546 *) The figures were derived from the operating company Borch Textile Group A/S First investment year: 2013 Industri Udvikling III K/S owner s share: 37.5% Location: Slagelse, Denmark Number of employees: 123 Executive Board: Ulrich Mosegaard Board of Directors: Henrik Thulesen, Chairman, Ulrich Mosegaard, Preben Ritter, Dan Højgaard Jensen Accountant: Deloitte, Slagelse, State-authorised public accountant Søren Stampe Work clothes and textiles for industrial laundries Borch Textile Holding A/S is the parent company of Borch Textile Group A/S, which produces and sells work clothes and textiles for industrial laundries. End customers are primarily in the healthcare sector, industry and the hospitality and restaurant industries. The company has subsidiaries in Sweden, Norway and Poland and is among the leaders in the industry. In January 2013, Industri Udvikling invested in Borch Textile Group A/S when CEO Ulrich Mosegaard took over the controlling interest in the company. The company developed better than expected in 2013, and managed to win significant tenders for procurements in both Denmark and Sweden, and thus the net result was the best in the company s history. The positive trend looks set to continue; at the beginning of 2014, the company had the largest order book ever. At the same time, the company has invested heavily in upgrading its organisation in order to be prepared for the coming year s expected growth. Excerpt from annual report 2010/11*) 2011/12*) 2012/13*) (DKK thousand) 1/10 30/9 Result before tax 6,785 5,648 6,657 Result after tax 5,129 4,258 4,761 Equity 23,913 24,400 24,288 Balance sheet 66,505 63,953 64,761 *) The figures were derived from the operating company Bramidan A/S. First investment year: 2004 Industri Udvikling II K/S owner s share: 40.0% Location: Bramming, Denmark Number of employees: 76 Executive Board: Henrik Dueholm Madsen Board of Directors: Frank Lorenz, Chairman, Anders Haahr Jensen, Lars Buhl Accountant: Deloitte, Kolding, State-authorised public accountants Per Jansen and Michael Siegumfeldt Compression of recyclable packaging waste Bramidan Holding A/S is the parent company of Bramidan A/S, which develops and manufactures equipment for compressing recyclable packaging waste. The equipment is sold to a variety of businesses in retail, industry, warehouse and logistics, the nautical sector and the public sector. Bramidan is an internationally oriented niche company and its products are marketed worldwide through an extensive dealer network. Bramidan has sales and service offices in the Netherlands and Poland, as well as a subsidiary in Chicago, USA. In addition, the company owns shares in a distributing company in France. Bramidan is a very stable company but does not quite convert its strong business foundation into fully satisfactory results. It is hoped that a continued top line focus in the coming years will improve the bottom line.

23 Portfolio companies C&H System A/S Christian Berg (CB Invest Holding ApS) 19 In 2013 C&H Processbio supplied straw-handling equipment to Sleaford Renewable Energy Plant in the UK, which is currently the world s largest material handling system for straw bales and handles more than 100 straw bales an hour. Christian Berg s location in Aarhus, Denmark, which was renovated and modernised in Excerpt from annual report 2010/ / /13 (DKK thousand) 1/7 30/6 Result before tax 6,270 23,967-4,982 Result after tax 4,694 17,960-3,710 Equity 14,694 27,960 16,184 Balance sheet 62,920 70,087 67,705 Excerpt from annual report 2013 (DKK thousand) 1/1-31/12 Result before tax -5,152 Result after tax -4,595 Equity 3,895 Balance sheet 25,531 First investment year: 2012 Industri Udvikling III K/S owner s share: 33.0% Location: Næstved, Denmark Number of employees: 55 Executive Board: John Thrane Nielsen, Christian Weinreich Board of Directors: Niels Peter Møller, Chairman, Mogens Birk-Elkjær, Peter Nylev, Mogens Rud, Lars Buhl Accountant: PricewaterhouseCoopers, Næstved, State-authorised accounts Morten K. Nielsen and Jacob Simonsen Handling and packing systems C&H System produces customised handling and packing systems for heavy materials in industry with a special focus on the paper, foil and insulation industries. The company has also created a new business area with handling systems for the biomass industry (straw-fired power plants and straw-based bioethanol plants). Globally, C&H System have supplied more than 500 complete installations over the last approx. 40 years. C&H System has historically had a variety of large international customers. In December 2012, Industri Udvikling bought 33% of C&H System A/S. In the first financial year after the purchase, the company was affected by a number of projects being postponed and paid learning money for the first project in biomass plants. The company is now very well positioned for the biomass market both Generations I and II a market that the company expects a lot from. The actual result for 2012/13 was not satisfactory, but, as mentioned, the company enjoys a good position in the market and expects a positive result again in 2014/15. First investment year: 2013 Industri Udvikling III K/S owner s share: 32.5% Location: Glostrup / Aarhus / Kolding, Denmark Number of employees: 62 Executive Board: Kenneth Berg Board of Directors: Finn Pilgaard Kristensen, Chairman, Kenneth Berg, Christian Cordsen Nielsen, Dan Højgaard Jensen Accountants: PricewaterhouseCoopers, Hellerup, State-authorised public accountants Sven Halberg and Mads Krab Refrigeration and ventilation systems CB Invest Holding ApS owns Christian Berg A/S and Christian Berg Vest A/S, which designs, installs and services refrigeration and ventilation systems. The companies operate from three locations in Denmark; Glostrup, Aarhus and Kolding. Customers are many and include some of the country s largest companies and a large number of customers from the public sector. The company has been around since 1965 and is a well-known brand in the market. Industri Udvikling invested in Christian Berg A/S and Christian Berg Vest A/S in July 2013 together with the current CEO. The company had been through some turbulent and loss-making years up until the acquisition was a turbulent year in which the new CEO s task was to establish an overview and bring a sense of calm to the company. This will continue in With the significant actions that have been taken, it is expected that the company will be profitable from The company has been among the leading refrigeration companies in Denmark for many years; this position must be further strengthened in the coming years.

24 Portfolio companies 20 Confac A/S Danelec Marine A/S CPT Faaborg s new premises were ready for occupation in the spring of Confac A/S has supplied facades, walls, balcony slabs, hollow core slabs and stairs. The building has been built as an energy plus house and has white facade elements. Over 20,000 existing ships must be retrofitted with an ECDIS (electronic chart) in Excerpt from annual report 2010/ / /13 (DKK thousand) 1/10 30/9 Turnover 87, , ,696 Result before tax 2,753 6,429 1,414 Result after tax 2,060 4,809 1,099 Equity -5,489 5,321 6,391 Balance sheet 49,399 49,119 48,305 First investment year: 2010 Industri Udvikling III K/S owner s share: 33.0% Location: Randers, Denmark Number of employees: 50 Executive Board: Erling Holm Board of Directors: Torben Svendsen, Chairman, Erling Holm, Lars Buhl Accountant: Beierholm, Viborg, State-authorised public accountant Jørgen Jakobsen Concrete facade elements Confac A/S produces facade elements in concrete for the Danish market at a tailor-made manufacturing facility located in Randers. Focusing primarily on the facade elements, as well as an efficient proprietary production set-up makes the company very competitive within the elements for commercial and residential developments. Confac did not manage to live up to the great result from the previous year in 2012/13. Continued weak market conditions in construction and low prices affected the bottom line. The company invested in increased production capacity during the year, which is now reflected in the results. Confac has had a good start to 2013/14 and expects a good result for the year. Excerpt from annual report 2010/ / /13 (DKK thousand) 1/7 30/6 Result before tax -2, ,143 Result after tax -1, ,536 Equity 8,571 13,479 16,016 Balance sheet 23,893 29,121 32,706 First investment year: 2005 Industri Udvikling II K/S owner s share: 26.6% Location: Birkerød, Denmark Number of employees: 15 Executive Board: Hans Ottosen Board of Directors: Peter Lund, Chairman, Hans Rasmussen, Bo Cerup-Simonsen, Lars Buhl Accountant: PricewaterhouseCoopers, Copenhagen, State-authorised public account Gert Fisker Tomczyk Black boxes for ships, electronic charts Danelec Marine A/S develops and manufactures industrial application computers with a primary focus on the nautical market. The main products are the so-called black boxes known from aviation but mandatory for use on large passenger and cargo ships all over the world. The company also develops and manufactures application computers for electronic charts the so-called ECDIS (Electronic Chart Display and Information Systems). ECDIS will eventually replace paper charts. The company has customers worldwide. Danelec is currently enjoying a very positive development with a focus on developing a new product programme in connection with new regulatory requirements, internal optimisation of systems, processes and organisation as well as market development. The company is consolidating its position in its product categories as a major player with a strong product and service system, which is of great importance in the nautical market. The level of activity over the past few years has increased rapidly, and the company delivered results significantly above 2011/12 in 2012/13. The impressive development is also expected to result in an improved bottom line this year.

25 Portfolio companies Dan-Iso Holding A/S Dansk Mink Papir (DMP Partners A/S) 21 Production at Dan-Iso of tailor-made product. At Copenhagen Fur s fur exhibition in 2014 in Herning, Denmark, Dansk Mink Papir introduced a piece of world news the world s first driverless feed wagon for mink. Excerpt from annual report 2011*) 2012*) 2013*) (DKK thousand.) 1/1 31/12 Result before tax 4,549 6,038 2,165 Result after tax 3,352 4,529 1,775 Equity 6,569 4,590 6,366 Balance sheet 11,179 10,642 12,845 *) The figures were derived from the operating company Dan-Iso A/S. First investment year: 2005 Industri Udvikling II K/S owner s share: 50.0% Location: Haubro, Denmark Number of employees: 14 Executive Board: Fin Højgaard Board of Directors: Torben Svendsen, Chairman, Karsten Bo Due, Lars Buhl Accountant: Deloitte, Viborg, State-authorised public accountant Gert Stampe Excerpt from annual report 2011*) 2012*) 2013*) (DKK thousand) 1/1-31/12 Result before tax 4,329 8,701 13,376 Result after tax 2,311 5,633 10,061 Equity 13,919 19,540 29,587 Balance sheet 146, , ,043 *) The figures were derived from the operating company Dansk Mink Papir A/S. First investment year: 2007 Industri Udvikling II K/S owner s share: 37.8% Location: Holstebro, Denmark Number of employees: 44 Executive Board: Rudi Pedersen Board of Directors: Henrik Thulesen, Chairman, Lars Christiansen, Lars Buhl Accountant: Krøyer Pedersen, Holstebro, State-authorised public accountant Henrik Holm Insulation materials Dan-Iso Holding A/S is the parent company of Dan-Iso A/S, which as a subcontractor produces and sells insulation materials. The production consists mainly of half-shells, expanding foam, etc. primarily for pre-insulated district heating pipes. Customers are located in Denmark and the surrounding countries was affected by the loss of sales to a customer, which can be seen in the bottom-line results. In 2013, investments were made in the CNC machine, which will increase sales of processed foam blocks. Thus, we expect improved results in Equipment and supplies for the mink sector and industry DMP Partners A/S is the parent company of Danish Mink Papir A/S, which develops and manufactures paper products and production equipment for the mink sector and industry. Initiated with the invention of new pinning sleeves, paper and plastic products for the mink industry, the company has managed to position itself as the leading supplier of automated solutions and concepts for the mink sector. For industry, the company has developed the fully automated PAL-Cut sheet dispenser that cuts and places intermediate sheets when loading pallets of goods (food and non-food products), and Antim65 non-skid slip-sheeting. Industrial customers include Kellogg s, Kraft Foods and Arla Foods. Dansk Mink Papir will realise a very nice bottom-line result again in 2013 and an impressive cash flow. The demand for both consumer products and machines for the mink segment has been good, and the company s industrial segment has shown impressive growth with increasing revenues, particularly driven by increased exports. In 2013, the company s CEO, Rudi Pedersen, bought into the company. At the year s first mink fur auction, tariffs fell dramatically. They have since stabilised, so the profit forecast for 2014 is lower than for 2013 but still at a very good level.

26 Portfolio companies 22 Despec Nordic-koncernen EM-fiberglas a/s Despec has more than 20 years distribution experience on the Nordic market. Raised roof for VW T5 transporter, supplied by EM-fiberglas just-in-time in the desired colour. Excerpt from annual report 2011*) 2012*) 2013*) (EUR thousand) 1/1-31/12 (EUR thousand) (EUR thousand) (EUR thousand) Result before tax 3,051 2,528 1,965 Result after tax 2,239 1,877 1,556 Equity 9,125 9,250 9,406 Balance sheet 35,047 31,644 34,350 *) The figures were derived from the operating company Despec Nordic Holding A/S. First investment year: 2006 Industri Udvikling II K/S owner s share: 34.0% Location: Lynge, Denmark Number of employees: 135 Executive Board: Michael Voll Board of Directors: Jens Josefsen, Chairman, Otto Vinter Christensen, Torkil N. Jensen, Michael Voll, Thomas Sterlet, Lars Buhl Accountant: KPMG, Copenhagen, State-authorised public accountants Ole Hedemann and Anders Flymer-Dindler IT and office supplies Neos Invest A/S is the parent company of Despec Nordic Holding A/S, which is in charge of trade and distribution of consumables, ergonomic and computer accessories, printers and small office machines to distributors in the Nordic market. In addition, the company sells office supplies in Denmark and Norway, a business area that Despec expanded with in early 2013 and which it plans to introduce in Sweden and Finland. Despec is the largest distributor in its field in the Nordic region, and operates through four subsidiaries in Denmark, Norway, Sweden and Finland as well as a branch in Iceland. The Group is headquartered in Denmark, where several key functions are managed. Despec has authorised distributor status with all major manufacturers and serves more than 4,000 dealers divided into the BtB and BtC channels. The company has a very strong position in its business segment and expanded its market share with several brands in The company has worked diligently to strengthen its organisation and is very well prepared for the coming years, but tough competition in a consolidating market and organisational investments led to lower earnings in The company expects an improved result for 2014 compared to Excerpt from annual report (DKK thousand) 1/1-31/12 Result before tax -3,279 3,646 6,793 Result after tax -3,895 4,182 5,049 Equity -2,299 1,883 6,932 Equity incl. subordinated capital 8,460 12,861 16,128 Balance sheet 69,167 66,240 74,642 First investment year: 2010 (founded in 1998) Industri Udvikling A/S owner s share: 50.0% Location: Hornsyld, Denmark Number of employees: 94 Executive Board: Jørgen Ove Jensen Board of Directors: Kaj Taidal, Chairman, Bo Lybæk, Lars Blavnsfeldt Accountant: KPMG, Vejle, State-authorised public accountant Lars Koudal Jensen Glassfibre production EM-fiberglas a/s develops and manufactures glass-fibre elements for the wind turbine industry, the automotive industry and other industries/customers with a focus on performance, quality and finish. The company supplies products to customers throughout Europe, primarily in Denmark, Germany and Sweden. In 2013, EM-fiberglas had satisfactory earnings after several difficult years. Management puts in a great effort and receives great acclaim from customers that are growing ever closer to the company, and new customers are being added as well. In 2013, the company built new administrative buildings and leased new production facilities to ensure continued expansion.

27 Portfolio companies Euro Therm Invest A/S FSG Foods ApS 23 In 2014, Force Technology opened a new test centre with Halsnæs Varme A/S, where Euro Therm s 10 MW large pellet boiler system is central to numerous testing processes for technologies. One-stop-solution for fish and Asian products. Excerpt from annual report 2010/11*) 2011/12*) 2012/13*) (DKK thousand) 1/5 30/4 Result before tax 6,424 8,578 8,257 Result after tax 4,816 6,429 6,115 Equity 3,325 6,963 9,494 Balance sheet 13,835 19,627 22,822 *) The figures were derived from the operating company Euro Therm A/S. Excerpt from annual report 2010/ / /13 (DKK thousand) 1/7 30/6 Result before tax -2,923-5,247-2,574 Result after tax -2,913-5,233-2,519 Equity -2,833-8, Balance sheet ,739 First investment year: 2010 Industri Udvikling III K/S owner s share: 33.3% Location: Højbjerg, Denmark Number of employees: 14 Executive Board: Jan Depenau Board of Directors: Lars Blavnsfeldt, Chairman, Jan Depenau, Gert Kristensen Accountant: RSM plus, Odense State-authorised public accountant Henrik Welinder First investment year: 2014 Industri Udvikling III K/S owner s share: 33.3% Location: Svendborg, Denmark Number of employees: 27 Executive Board: Jonas Schnoor, Kristian Ejdum Board of Directors: Henrik Thulesen, Jens Peter Klausen, John P. Lemkow, Dan Højgaard Jensen Accountant: RevisionsFirmaet Edelbo, Svendborg, State-authorised public accountant Ole Nielsen District heating plants Euro Therm Invest A/S is the parent company of Euro Therm A/S, which supplies biomass-fired district heating plants and systems for industrial heating. The company is among the leading players in the industry. Typical plant sizes range from 500 kw to 15 MW, and tasks include everything from renovation of existing facilities to managing turnkey contracts for new facilities. Euro Therm is a project and development company with a service and assembly department. All skills are combined under one roof, thereby creating very close cooperation between the customer and the Euro Therm technicians from the idea and design phase to the final handover. Production is outsourced to a number of Danish suppliers. Sales are mainly in the Danish market. Innovation is an important parameter for Euro Therm, which therefore collaborates with various educational institutions and international research entities in an effort to create the right solutions for customers. Euro Therm saw continued growth in Customers state that they are very content with the supplied district heating systems, and orders are coming in at a satisfactory pace. Exports to the neighbouring markets are off to a good start and are expected to result in continued expansion. Total supplier of fish and sushi-related products FSG Foods ApS is a total supplier of fresh and frozen fish and nonfood products to the Scandinavian sushi industry. The company currently has a significant part of the Danish sushi market. It is established in Norway and, in the autumn of 2013, the company successfully commenced entry into the Swedish market. The group currently consists of a Danish company, a Norwegian sales office, and nationwide warehousing and logistics functions in Fredericia and Copenhagen. In April 2014, Industri Udvikling invested in FSG Foods ApS in connection with the company s expansion.

28 Portfolio companies 24 Global Wind Power Europe A/S Holmris A/S The Stüdenitz wind farm is located north-west of Berlin in the Province of Brandenburg. The park consists of 24 Vestas V MW wind turbines, which were installed in 2005/06 and two Vestas V MW wind turbines which were installed in Gerrit Isbrand Design has developed a new series of small, mobile adjustable-height desks targeted at flexible workplaces, touch-down areas and the educational sector. Excerpt from annual report 2012/13 (DKK thousand) 1/1-31/12 Result before tax -5,652 Result after tax -5,652 Equity -5,597 Balance sheet 21,195 Excerpt from annual report (DKK thousand) 1/1 31/12 Result before tax 352 4,189 17,047 Result after tax 122 3,226 15,950 Equity 11,314 14,585 30,535 Balance sheet 41,862 43,813 65,633 First investment year: 2013 Industri Udvikling III K/S owner s share: 6.7% Location: Thisted, Denmark Number of employees: 68 Executive Board: Henrik Amby Jensen, Michael Nymann Nilsson Board of Directors: Johannes Poulsen, Chairman, Henrik Amby Jensen, Nicolai Mallet, Lars Blavnsfeldt Accountant: KPMG, Aalborg, State-authorised public accountant Hans Vistesen Project development for the wind turbine market Global Wind Power Europe A/S is a global project developer in the wind turbine market, specialising in developing, implementing and managing wind turbine projects for financial investors. The reference list includes over 260 installed wind turbines (about 600 MW) in Denmark, France, Germany, Bulgaria and Romania. Headquarters are located in Thisted and the company has subsidiaries in the aforementioned countries. Industri Udvikling invested in Global Wind Power Europe A/S in November Together with the expected continued growth in the market for wind turbine projects, notably in northern Europe, it is assessed that the company will continue to achieve good annual earnings. First investment year: 2007 Industri Udvikling II K/S owner s share: 30.3% Location: Bjerringbro, Denmark Number of employees: 160 Executive Board: Niels Henrik Lauritzen, Henrik Holmris Hansen Board of Directors: Henning Hvitved Pedersen, Chairman, Erik Holmris Hansen, Henrik Holmris Hansen, Niels Henrik Lauritzen, Peter Trasbjerg, Lars Blavnsfeldt Accountant: BDO, Viborg, State-authorised public accountant Thomas Witzky Office furniture and more Holmris A/S manufactures, develops and markets interior design solutions for both public and private offices, etc. In addition to traditional office furniture, the company also produces customdesigned furniture. In 2011 Holmris bought Danfurn with its subsidiary Choiseline in Vejle, Denmark; an office furniture company which is slightly smaller than Holmris. In 2012, the sales companies Reidarsborg A/S, JPH Concept and parts of Wigandt-Schulz were acquired. In November 2013, Flexform, with a turnover of DKK 170 million, was acquired all under the name of Holmris DK, which has Holmris A/S as the majority shareholder and supplier. With these acquisitions, Holmris has created an industry-leading sales, service and supplier organisation in Denmark. In Denmark, Holmris sells through its own subsidiaries and distributors. An increasing share of production is exported, primarily to the neighbouring markets, but some products are exported more broadly and it is expected that this could be a stepping stone for a broader part of its products over the next few years. Holmris has successfully managed to consolidate its position in the Danish market, for example through acquisition of some of its competitors. In 2014, Holmris will be one of the largest suppliers of office furniture in Denmark, and the expansion continues. Holmris has established a subsidiary in the U.S. and is expecting to build substantial sales in the U.S. market.

29 Portfolio companies HT BENDIX A/S JHL Holding A/S (J. Hvidtved Larsen A/S) 25 HT BENDIX A/S has focused a lot on efficiency and inventory management. With a product range of 6,000 different items, a warehouse of 10,000 sqm and more than 8,000 pallet spaces, they offer next-day delivery to their customers. In recent years, J. Hvidtved Larsen has focused on increasing control of its sales and distribution channels and currently has subsidiaries in Sweden, the UK, Australia and the U.S. as well as its own salespeople in Russia and Norway. Excerpt from annual report ( 2012/13 (DKK thousand) 1/8 31/7 Result before tax 7,261 Result after tax 5,479 Equity 17,529 Balance sheet 133,721 First investment year: 2012 Industri Udvikling III K/S owner s share: 49.0% Location: Herning, Denmark Number of employees: 68 Executive Board: Kaj Østergaard Board of Directors: Jens Bach Mortensen, Chairman, Claus Østergaard Jensen, Kaj Østergaard, Lars Buhl Accountant: KPMG Aarhus, State-authorised public accountants Jes Lauritzen and Lis Andersen Fittings and accessories for the furniture, kitchen and wood industries HT BENDIX A/S is a trading and logistics company that supplies Danish and foreign furniture manufacturers, etc. with fittings. The fittings are produced and assembled by external suppliers around the world and sold via HT BENDIX A/S s large and very efficient warehouse in Herning, Denmark. The company has a long history, but since 1992 it has worked exclusively in the sale of fittings for the furniture, kitchen and wood industries. In 2012 the management bought the company out of DT Group, whereby Industri Udvikling joined the group of owners. The company continues to enjoy the extremely stable and positive development of the new ownership. Export sales continue to rise, and HT Bendix also expects to deliver good results for 2013/14. Excerpt from annual report 2011*) 2012*) 2013*) (DKK thousand) 1/1-31/12 Result before tax 14,697 15,952 20,671 Result after tax 11,065 12,048 16,038 Equity 39,588 47,181 56,090 Balance sheet 138, , ,627 *) The figures were derived from the operating company J. Hvidtved Larsen A/S. First investment year: 1997 Industri Udvikling A/S owner s share: 29.7% Location: Silkeborg, Denmark Number of employees: 168 Executive Board: Brian Stage Board of Directors: Hans Lohman, Chairman, Søren Hvidtved Larsen, Lars Tveen, Lars Blavnsfeldt Accountant: Deloitte, Silkeborg, State-authorised public accountants Bo Odgaard and Heidi J. Jensen Vacuum tankers JHL Holding A/S is the parent company of J. Hvidtved Larsen A/S, which develops and manufactures mobile, environmentally friendly sludge and dry vacuum tankers, and sells services and spare parts. J. Hvidtved Larsen ranks among the world s leading manufacturers of vacuum tankers, with exports to all continents. New developments and further development of existing types, and a global service approach are the company s main future-proofing. It delivers both standard and customised solutions, all with a focus on functionality, safety, design and quality. The company has a subsidiary in the UK. Hvidtved Larsen continues its impressive development. In Denmark, it is retaining its market share, while it continues to gain market shares particularly in the UK, but also in Norway and Sweden.

30 Portfolio companies 26 Jyden Bur A/S KD Maskinfabrik A/S Jyden has a complete production concept with a focus on animal welfare and energy optimisation. KD installed 672 diffusors for Aalborg Forsyning Kloak A/S from Austrian manufacturer Aerostrip. The energy consumption for process ventilation has almost been cut in half (reduced by 49%), which means annual savings of a minimum of 750 Mwh. Excerpt from annual report (DKK thousand) 1/1 31/12 Result before tax 2,827 2,467 2,549 Result after tax 2,112 1,793 2,187 Equity 33,557 34,000 35,632 Balance sheet 68,323 81,852 99,184 Excerpt from annual report (DKK thousand) 1/1-31/12 Result before tax 545-2, Result after tax 407-1, Equity 6,363 4,499 4,959 Balance sheet 45,591 42,093 41,032 First investment year: 2008 Industri Udvikling II K/S owner s share: 30.0% Location: Holstebro, Denmark Number of employees: 141 Executive Board: Jens Agergaard Board of Directors: Peter Kirk Larsen, Chairman, Jens Agergaard, Villy Fiedler,Svend Vang Kristensen, Tommy Sørensen, Lars Blavnsfeldt Accountant: Partner Revision, Ikast, State-authorised public accountant Lars Ole Mortensen Cattle and pig housing supplies Jyden Bur A/S is one of Europe s largest suppliers of total housing solutions for cattle and pig housing. In recent years, Jyden has expanded its geographic market area and developed a strong and comprehensive product range with competitive brands to meet different customer needs. Denmark, Germany and Scandinavia are the primary markets, but Jyden also continues to have a global focus especially in the markets of Eastern Europe and Russia. Jyden has sales and representative offices in Denmark, Sweden, Germany, Russia and Ukraine. Jyden is known not only for developing and producing solutions that meet the requirements but also for going the extra mile in terms of animal welfare, energy optimisation and production economy. Jyden Bur has skilfully used the crisis of Danish agriculture to strengthen its position in Denmark and to increase its focus on export. The company focuses on the trends of animal welfare and energy conservation and throughout its product portfolio, Jyden offers solutions that can optimise this. There has been significant improvement in the company s revenue in Earnings were affected by costs associated with mergers of acquired companies with the parent company. Satisfactory revenue and earnings from both the Danish market and export markets is expected for First investment year: 2014 Industri Udvikling III K/S owner s share: 31.0% Location: Vejle, Denmark Number of employees: 32 Executive Board: Jens Krogh Board of Directors: David Meyer, Chairman, Per Krøyer Kristensen, Peter Dalgaard, Lars Buhl Accountant: Martinsen, Vejle, State-authorised public accountant Preben Pedersen Solutions for water treatment plants and sewage treatment KD Maskinfabrik A/S produces high-quality equipment and solutions for sewage treatment. For decades, the company has supplied equipment to both Danish and international customers, including water treatment plants, the concrete industry and other segments of the industry. A large proportion of sales are exported. In March 2014, Industri Udvikling invested in KD Maskinfabrik A/S together with CEO Jens Krogh, who has managed the company since KD Maskinfabrik A/S has developed a growth strategy that focuses on energy-efficient solutions for public and industrial sewage projects in selected segments. In addition, they have several new development projects that will help reduce customers water and energy consumption with an attractive return on investment.

31 Portfolio companies Kitchn A/S Kvist Industries (Kvist Industries Invest ApS) 27 Venezia Stone Ash in combination with matte white. This is a brand-new surface synchronous melamine where the grain and structure of melamine is followed. This provides a natural experience, together with melamine s robust and easy-to-maintain surface. Kvist Industries manufactures a wide range of classic Danish furniture that is marketed by leading Danish and international brands. Both local and foreign markets are showing great interest in this classic furniture. Excerpt from annual report (DKK thousand) 1/1-31/12 Result before tax 668 7,338 6,206 Result after tax 305 5,499 4,638 Equity 15,660 21,159 20,797 Balance sheet 45,590 48,169 43,311 First investment year: 2004 Industri Udvikling II K/S owner s share: 66.0% Location: Aulum, Denmark Number of employees: 41 Executive Board: Jan Thomsen Board of Directors: Henning Storm Rasmussen, Chairman, Jens Bach Mortensen, Lars Blavnsfeldt Accountant: KPMG, Aarhus, State-authorised public accountant Mads Meldgaard Kitchens, bathrooms and wardrobes Kitchn A/S manufactures and sells kitchen, bathroom and wardrobe solutions in Denmark, Norway and Sweden. The products are characterised by a high quality-to-price ratio. Kitchn A/S supplies both flat-packed and assembled products, which enables servicing of both the consumer and contract markets. Through its extensive experience with e-commerce, Kitchn A/S has developed a unique business concept where traditional retailing and e-commerce are combined, taking into account changes in consumer behaviour. In the autumn of 2013, the new e-commerce platform was implemented successfully and now forms the basis for the new business concept, omni-channel distribution, both in existing and new markets. It is expected that the new measures will bring growth to the dealers in Denmark, Norway and Sweden as well as new export opportunities. Kitchn A/S particularly focuses on new construction in Finland and the Baltic countries and therefore decided to participate in the Trade Council s elite Vitus programme. Kitchn has stabilised its sales in a market that continues to be challenging is expected to continue to bring satisfactory results. Excerpt from annual report 2011*) 2012*) 2013*) (DKK thousand) 1/1-31/12 Result before tax 1,803 1, Result after tax 1,396 1, Equity 25,554 26,908 27,373 Balance sheet 85, , ,793 *) The figures were derived from the operating company Kvist Industries A/S. First investment year: 2013 Industri Udvikling III K/S owner s share: 24.5% Location: Varde, Denmark Number of employees: 474 Executive Board: Jens Bach Mortensen Board of Directors: Peter Kirk Larsen, Chairman, Michael Kvist, Søren Kvist, Jens Bach Mortensen, Lars Gantzel Pedersen, Lars Blavnsfeldt Accountant: PricewaterhouseCoopers, Esbjerg, State-authorised public accountant Alex Nyholm High-quality furniture Kvist Industries A/S manufactures high-quality furniture, primarily armchairs, dining chairs and tables. Customers include leading Scandinavian furniture companies, and several well-known Danish furniture classics are manufactured by the company. Production is carried out in Latvia, Slovakia and Årre near Esbjerg, Denmark. In September 2013, Industri Udvikling bought 24.5% of the shares in Kvist Industries A/S from the current owners and management. Meanwhile, Jens Bach Mortensen joined as CEO and co-owner. Kvist has expanded rapidly in recent years due to its customers success in export markets. Kvist is cooperating increasingly closely with the leading Scandinavian design furniture companies. Kvist is expected to show satisfactory growth in earnings in the coming years.

32 Portfolio companies 28 KVM Industrimaskiner (KVM Invest ApS) Lindø Steel A/S Several years of participation in fairs and exhibitions in emerging markets is now resulting in the first orders from countries such as Russia, Qatar and Saudi Arabia. Combined with increased activity in some of the traditional Western European markets, this provides KVM with a broader foundation for the future. The largest of the cutting halls at Lindø Steel A/S is 10,000 sqm with a 40-metre range and coverage of overhead cranes with 22 tonne magnet yokes. 1,500 2,000 tons of steel slabs are processed per week, mainly for the wind turbine industry. Excerpt from annual report 2010/11*) 2011/12*) 2012/13*) (DKK thousand) 1/11 31/10 Result before tax 1,086 3,360-6,582 Result after tax 907 2,460-4,935 Equity 50,109 43,818 38,679 Balance sheet 90,710 93,062 90,351 *) The figures were derived from the operating company KVM Industrimaskiner A/S. Excerpt from annual report 2012/13 (DKK thousand) 1/7 30/6 Result before tax 7,570 Result after tax 5,660 Equity 7,314 Balance sheet 13,643 First investment year: 2011 Industri Udvikling III K/S owner s share: 50.0% Location: Kjellerup, Denmark Number of employees: 124 Executive Board: Lars Jørgensen Board of Directors: Jesper B. Rasmussen, Chairman, René Rosenlund Fjellerup, Hans Kristian Nielsen, Allan Laursen, Lars Blavnsfeldt Accountant: Deloitte, Aarhus, State-authorised public accountants Henrik Vedel and Flemming Ravnsbæk First investment year: 2012 Industri Udvikling III K/S owner s share: 40.0% Location: Munkebo, Denmark Number of employees: 29 Executive Board: Søren Kirkebæk Madsen, Per Hauge Board of Directors: Bjarne Poulsen, Chairman, Per Hauge, Søren Kirkebæk Madsen, Peter Rindebæk, Lars Buhl Accountant: EKL revision, State-authorised public accountant Karsten Lykkegård Concrete and asphalt plants KVM Industrimaskiner A/S manufactures and sells concrete products and asphalt plants worldwide and has subsidiaries in Sweden, Germany, the UK and the USA. Production of machinery and plants is carried out both in Denmark and abroad, while all product development and construction is performed in Kjellerup, Denmark. All plants can be controlled remotely from Kjellerup with 24/7 service. KVM Industrimaskiner sells most of its products in Scandinavia, with a significant market share in this area. The company has supplied systems in most parts of the world and is an established brand in the market with more than 50 years of history behind it. The systems are sold through the company s own sales force as well as agents. The Danish market for KVM Industrimaskiner s products remains modest, so the focus is on new markets outside the EU as well as traditional export markets. For 2013, the result was not satisfactory, but at the turn of the year the order book was larger than at any time since A satisfactory result is expected for Cutting and machining of large steel plates Lindø Steel A/S handles, processes and distributes large steel plates especially for the wind turbine industry, where each steel plate typically weighs between 3-20 tonnes. The company has Denmark s largest cutting centre for oxygen and plasma cutting as well as a unique system for edge milling. In addition, the company owns the largest outdoor steel storage capacity with its own quay. This is a niche market, with customers primarily located in northern Europe. The company was previously a division of Odense Stålskibsværft A/S, which was owned by A.P. Møller Maersk. In connection with the closure of the yard, Industri Udvikling, together with the existing management, acquired this activity of the yard. The company achieved a great result the first year, which was significantly above budget. From a strategic point of view, the company has managed to position itself in the wind turbine industry as a major subcontractor that can also handle complex logistics and inventory-related issues for customers.

33 Portfolio companies Nordisk Company A/S Omada A/S 29 With a considerable focus on product development, design and functionality, Nordisk has created a platform as one of the most innovative players in outdoor products many of which have won awards. Nordisk has a strong position in tents, sleeping bags and mats, including the world s lightest two-person tent. Omada is an international company with its own representations in Germany, the UK and the USA, and with employees of more than 15 different nationalities at its headquarters in Copenhagen, Denmark. Excerpt from annual report (DKK thousand) 1/1 31/12 Result before tax -14, Result after tax -12, Equity.11, Balance sheet 52,451 63,001 Excerpt from annual report (DKK thousand) 1/1-31/12 Result before tax 12,235 7,096 13,440 Result after tax 9,138 4,790 10,620 Equity 21,902 16,118 13,541 Balance sheet 53,216 45,913 54,106 First investment year: 2012 Industri Udvikling III K/S owner s share: 49.5% Location: Silkeborg, Denmark Number of employees: 46 Executive Board: Erik Johannes Møller, Peter Have Board of Directors: Mikkel Vendelin Olesen, Chairman, Hanne Vendelin Olesen, Lars Bonderup Bjørn, Ivan Andsager Petz, Lars Blavnsfeldt Accountant: Ernst & Young, Aarhus, State-authorised public accountant Lone Nørgaard Eskildsen First investment year: 2000 Industri Udvikling A/S owner s share: 19.6% Location: Copenhagen, Denmark Number of employees: 58 Executive Board: Morten Boel Sigurdsson, Christian Stendevad, Jacob Olsen Board of Directors: Peter Leschly, Chairman, Niels Molzen, Henrik Rasmussen, Lars Blavnsfeldt Accountant: Beierholm, Copenhagen, State-authorised public accountant Joan Christensen Outdoor equipment and clothing Nordisk Company A/S designs, develops and sells innovative, trendsetting products with the main brands Yeti, Nordisk and Grand Canyon as well as a number of private labels, primarily within leisure clothing, sleeping bags, sleeping mats, tents and backpacks. Sales are focused on the fashion and leisure industry primarily in Europe, with Germany and Denmark as the main markets. In addition, the company sells to most other European countries as well as China, Korea and Japan. Nordisk Company has sales offices in Denmark, Germany and Shanghai, including storage and production in Germany as well as a sourcing and quality office in Shanghai. Early 2014, Industri Udvikling subscribed for new shares in Nordisk, which subsequently has an equity ratio of over 20% produced a result of zero. A satisfactory result is expected for Nordisk Company is strengthening its position in the attractive outdoor market through continuous innovative efforts, which help Nordisk have the best products. Nordisk is also winning market shares in the market for outdoor clothing through the Yeti brand, and producing trendsetting clothing with down. Software and IT consulting business Omada A/S is an international company that delivers innovative software solutions and consulting services. Omada specialises in project management, SAP, IT management, identity governance and process optimisation. Omada has become one of the leading suppliers of identity and access management based on Microsoft s platform in Europe as well as the U.S. Omada has its own representations in Germany and the U.S. In 2013, Omada had a satisfactory year and positive development. Omada has made agreements with several major international customers, and expanded business with existing customers. The company s positioning in the market has been further strengthened, and this is evident in the form of Omada s positioning in market research institute Gartner s Magic Quadrant for the area. Omada is now positioned as a Challenger for the first time ever. The positive trend is expected to continue in 2014 and the coming years, as the company has a strong product and customer portfolio.

34 Portfolio companies 30 Omni Tecnical Solutions A/S Resolux ApS For more than a decade, Automotive Management Services (AMS) has delivered solutions to commercial and government customers in challenging areas where traditional fleet and equipment solutions can be problematic ranging from distant mining sites to reconstruction in post-conflict areas. Resolux established itself in Brazil in January with an office in Recife. With the establishment of a company and an office, Resolux expects to increase its activities and turnover in Brazil. Excerpt from annual report (USD thousand) 1/1-31/12 (USD thousand) (USD thousand) (USD thousand) Turnover 124, , ,057 Result before tax 7,380 9,008 5,307 Result after tax 6,966 9,200 4,024 Equity 36,266 37,181 36,434 Balance sheet 120, ,124 96,259 First investment year: 2007 Industri Udvikling II K/S owner s share: 48.8% Location: Copenhagen, Denmark/Dubai, UAE Number of employees: 1,740 Executive Board: Martin Rasmussen Board of Directors: Jens Josefsen, Chairman, Mikael Konnerup, Martin Rasmussen, Lars Blavnsfeldt Accountant: KPMG, Odense, State-authorised public accountants Per Gunslev and Søren Smedegaard Hvid Vehicle repair shops and leasing of rolling stock Omni Technical Solutions A/S is the parent company of Automotive Management Services (AMS), Centralized Spare Parts Trading (CSPT) and NationWide Hire (NWH). AMS is based in Dubai, UAE, and is the leading provider of fleet management and workshop services for international companies and organisations operating mainly in developing countries and in the world s hot spots. The company is currently represented in Liberia, Somalia, Uganda and Afghanistan and serves more than 35,000 vehicles. Afghanistan is currently the principal place of business, where AMS has an agreement with the Afghan police to service their fleet. CSPT operates out of the United States and Dubai. CSPT specialises in the supply of original spare parts and equipment for fleet customers operating in countries with limited infrastructure. NWH is Australia s leading lessor of rolling stock for mining companies and construction companies in the development of infrastructure. Omni Technical Solutions continues to expand its business geographically, with African nations as highly prioritised markets, but the Stan countries are also very interesting; the latter particularly because of the massive presence in Afghanistan, where NATO s military exit opens up the way for many new business opportunities. The result for 2013 was characterised by comprehensive depreciation of assets in the Australian subsidiary NWH. AMS main activity continues to earn very satisfactorily. Excerpt from annual report (DKK thousand) 1/1 31/12 Result before tax 522 6,067 3,606 Result after tax 326 4,425 2,509 Equity 7,006 11,423 13,844 Balance sheet 46,011 40,359 42,975 First investment year: 2010 Industri Udvikling III K/S owner s share: 30.0% Location: Ørbæk, Denmark Number of employees: 48 Executive Board: Ole Teglgaard Board of Directors: Kaj Taidal, Chairman, Stig Christensen, Michael Jørgensen, Ole Teglgaard, Lars Buhl Accountant: Census, Odense, State-authorised public accountant John Eric Rath Petersen Light fittings for the wind turbine industry Resolux ApS manufactures light fittings for the wind turbine industry a niche market where Resolux has obtained a very important market position on the global market. The company has customers worldwide. Customers include virtually all major wind turbine manufacturers including Vestas, Siemens, Gamesa and GE as well as some of the largest Chinese manufacturers. In addition to the wind turbine Industry, Resolux s products are sold to turnkey customers. Resolux has production facilities in Denmark and China, a sales company in the U.S., and has established a company in Brazil. Activities in the Brazilian company were initiated in January 2014, and good sales and earnings are expected. Despite a decline in the bottom-line result, which was affected by inventory depreciation on a de-selected business area in 2013, Resolux has developed favourably during the year. The company is consistently strong on the market and is now established, apart from in Denmark, in China, the U.S. and Brazil. Resolux expects 2014 to be very active and is expecting an improvement to the bottom line.

35 Portfolio companies Ribe Jernindustri (Ribe Jern Holding A/S) Scanflavour Holding ApS 31 Over the last year, Ribe Jernindustri has worked intensively on the development of thermal solutions for the health & care segment. Radiators from Ribe Jernindustri will equip corridors and rooms in several upcoming hospital buildings. Scanflavour is planning a major plant expansion in It also plans to further expand its production facilities/processes for a range of innovative new products for the food industry. The expansion will double the company s existing production area. Excerpt from annual report 2011*) 2012*) 2013*) (DKK thousand) 1/1 31/12 Result before tax 8,552 55,260-3,362 Result after tax 12,052 55,260-3,362 Equity 30,013 79,452 28,912 Balance sheet 101, ,259 86,928 *) The figures were derived from the operating company Ribe Jernindustri A/S. First investment year: 2011 Industri Udvikling III K/S owner s share: 50.0% Location: Ribe, Denmark Number of employees: 99 Executive Board: Michael Boel Olesen Board of Directors: Johannes Huus Bogh, Chairman, Christian Cordsen, Lars Buhl Accountant: Deloitte, Esbjerg, State-authorised public accountants Jørn Jepsen and Palle H. Jensen HUDEVAD and RIOpanel radiators Ribe Jern Holding A/S is the parent company of Ribe Jernindustri A/S, which is Denmark s leading manufacturer of radiators. Ribe Jernindustri has two main product series: RIOpanel, which are standard radiators, typically for large projects, housing associations and similar, as well as HUDEVAD, which are high-end design radiators for special structures. In addition, Ribe Jernindustri sells the discount product TEMPRA. Ribe Jernindustri sells the majority of its products in Denmark, secondarily in the UK, while Germany, Norway, the Netherlands, Belgium and France are developing. Products are primarily sold through wholesalers, but also to large plumbing companies. Since 2013, the company has not performed satisfactorily, which is primarily due to lower-than-expected sales in the UK. Throughout the year, several initiatives were launched to ensure positive results for 2014, and the effect is noticeable during the first few months of the year. Excerpt from annual report 2011/12*) 2012*) 2013*) (DKK thousand) (1/1 31/12 from 2013) 6 months Result before tax -2,743 16,140 40,809 Result after tax -3,334 12,061 30,900 Equity 37,608 46,309 76,090 Balance sheet 209, , ,991 *) The figures were derived from the operating company Scanflavour A/S. First investment year: 2012 Industri Udvikling III K/S owner s share: 25.0% Location: Møldrup, Denmark Number of employees: 80 Executive Board: Henrik Halskov Board of Directors: Birger Brix, Chairman, Henrik Halskov, Lars Blavnsfeldt Accountant: KPMG, Aarhus, State-authorised public accountants Mads Meldgaard and Christian Jøker Functional proteins for the food industry Scanflavour Holding ApS is the parent company of Scanflavour A/S, which produces functional proteins for the food industry. The company is among the world s largest in this area. The company has beautiful, modern production facilities in Møldrup, Denmark, and has invested significantly in optimisation and further development of its business and production processes. The company sells its products all over the world. Since Industri Udvikling s investment in 2012, the development of Scanflavour has seen growth in both sales and earnings. Strengthened efforts in product innovation combined with a focused sales strategy have ensured the continued strengthening of Scanflavours market positioning as one of the world s leading manufacturers of protein, while the foundation has been laid for increased organic growth in the future. Based on the company s ongoing efforts to increase value creation, it is expected to continue to grow, and in 2013 the company delivered one of the best results ever. The company plans to build new production facilities for a number of products in 2014, which are expected to result in a substantial improvement of results.

36 Portfolio companies 32 SGM Holding ApS Theca A/S SGM lights up the Copenhagen Opera House. SGM s waterproof, maintenance-free LED spots, G-Spot, and the powerful P-5 wash light lit up the Opera House in a brilliant colour spectrum during the Technology Fair organised by the Royal Theatre. The cold, wet winter is no challenge for SGM s light fittings, which are designed specifically to handle these tasks. Theca invests in the development and design of couches and chairs on an ongoing basis in order to maintain a competitive product range with a high level of comfort and quality. Excerpt from annual report (DKK thousand) 1/1 31/12 (11 months) Result before tax -3, Result after tax -3,152 1,166 Equity 48,994 70,156 Balance sheet 50,725 83,014 Excerpt from annual report (DKK thousand) 1/1 31/12 Result before tax 15,018 11,656 16,459 Result after tax 12,643 9,709 13,865 Equity 26,380 28,176 36,051 Balance sheet 56,891 63,129 69,903 First investment year: 2013 Industri Udvikling III K/S owner s share: 30.0% Location: Aarhus, Denmark Number of employees: 66 Executive Board: Peter Johansen Board of Directors: David Meyer, Chairman, Peter Johansen, Lars Buhl Accountant: KPMG, Aarhus, State-authorised public accountants Mads Mehlgaard and Christian Jøker First investment year: 2012 Industri Udvikling III K/S owner s share: 33.3% Location: Aarhus, Denmark Number of employees: 507 Executive Board: Claus Svenningsen Board of Directors: Morten Østergaard, Chairman, Claus Svenningsen, Lars Buhl Accountant: Deloitte, Aarhus, State-authorised public accountant Michael Bach Lighting products based on LED technology SGM Holding ApS is the parent company of SGM A/S, which develops and sells lighting products based on LED technology for the entertainment industry, architecture and retail. The company s products were originally adopted from an Italian lighting company, but since the takeover, SGM has developed a brand new, LED-based product range. The company has its headquarters with development and sales located in Aarhus, Denmark, a warehouse in the Netherlands as well as service and production in Denmark and Thailand. In recent years SGM has provided solutions for large projects such as Eurovision and Disney, TV shows such as the X-Factor and music tours of famous artists such as Beyoncé, Pink, Britney Spears and Black Sabbath. Industri Udvikling invested in SGM Holding in September The company was founded in February 2012 and SGM has achieved impressive growth based solely on the introduction of new products on the market. Growth will continue in 2014 and create the foundation for positive bottom-line results. Until 2013, the company s products were produced in the Far East and Europe, but it has now established production in Denmark, which ensures faster and more flexible logistics. Upholstered furniture Theca A/S develops and manufactures quality upholstered furniture for a number of Danish and foreign furniture chains and has a large product range, which is manufactured at modern facilities in Lithuania. The business model is based on partnership and integration of large customers. Sales and development take place at the headquarters in Risskov near Aarhus, Denmark. In 2012, Industri Udvikling bought 33.3% of the shares in Theca A/S from the current owners and management. The company continues its positive development and achieved the best result in its history in Development is predicted to continue, with a large number of new international customers with substantial potential.

37 Portfolio companies Total Wind Group A/S Uno Danmark Holding A/S 33 The blade department performs inspections on the blades of offshore wind turbines. Uno Danmark s broad colour palette in the different styles of natural-material fabrics creates a special and unique identity around the products, so that each woman can create her very own style in a timeless design. Excerpt from annual report 2010/ (DKK thousand) 1/1 31/12 from 2012 (15 months) Result before tax 3,000 24,497 21,264 Result after tax 1,294 14,790 14,091 Result after tax and minorities ,277 10,536 Equity 24,543 35,805 47,690 Balance sheet 221, , ,460 First investment year: 2010 Industri Udvikling III K/S owner s share: 33.0% Location: Brande, Denmark Number of employees: 480 Executive Board: Jens Nygaard Laursen Board of Directors: Knud Jensen, Chairman, Birger Brix, Jens Nygaard Laursen, Lars Blavnsfeldt Accountant: BDO, Ejstrupholm, State-authorised public accountant Bent Jensen Installation, service, maintenance and repair of wind turbines Total Wind Group A/S sells total solutions to wind turbine manufacturers and wind turbine owners within transportation, installation, service, maintenance and repair of wind turbines. Total Wind operates within the onshore and offshore segments. Total Wind Group A/S has subsidiaries in 11 countries on three continents and hence delivers service on a broad geographical basis. Total Wind Group has developed favourably in recent years, and is now considered one of the leading companies in the world in its field. The company has consolidated its strong position in the market through the establishment of the subsidiary Total Wind ApS, which focuses only on service to owners of wind turbines and parts sales. Recent additions to the service department include a subsidiary in Sweden, which handles services to the Swedish wind turbine owners. The company works closely with major manufacturers such as Vestas, GE Wind, Nordex, Siemens, Alstom, etc. Total Wind Group has continuously upgraded its organisation in recent years, and is now even better equipped to meet customer demand in all key segments related to wind turbines was again one of the best in the company s history, and the positive trend is expected to continue in the coming years. Excerpt of annual report 2011*) 2012*) 2013*) (DKK thousand) 1/1 31/12 Result before tax Result after tax Equity 4,824 5,534 5,346 Balance sheet 28,272 30,510 33,187 *) The figures were derived from the operating company Uno Danmark A/S. First investment year: 2011 Industri Udvikling III K/S owner s share: 40.0% Location: Vejle, Denmark Number of employees: 15 Executive Board: Michael Kjærgaard Board of Directors: Claus Fisker, Chairman, Michael Kjærgaard, Dan Højgaard Jensen Accountant: Ernst & Young, Aarhus, State-authorised public accountant Holger Simonsen Clothing made of natural materials for women Uno Danmark Holding A/S is the parent company of Uno Danmark A/S, which develops and sells women s clothes in natural materials based on the philosophy Design with no expiry date. Uno s core customers span a broad age range, and the collections allow customers to combine styles in an individual manner with relaxed style and timeless design. Uno Denmark has 35 concept stores of its own in Denmark, Norway, Sweden and Germany, which only sell the company s products. In addition, the company distributes through independent wholesale customers/dealers who also sell brands other than Uno, and the company also sells products to web customers. The goods are distributed from the headquarters in Vejle, Denmark. When Industri Udvikling invested in Uno Danmark, the company launched an ambitious growth case with the opening of several of its own stores in Scandinavia. Despite the pressure in retail, which necessitated the closure of a few of its own stores, the company succeeded in establishing several new stores in Norway, Denmark and Sweden. The growth strategy is being maintained with continued focus on establishing more of its own stores, particularly In Sweden, where it expects to open stores in the coming years. As part of its growth strategy, the company also invested in a new ERP system and an IT shopping system in 2013.

38 Portfolio companies 34 Virklund Sport A/S WoodCare Denmark A/S Virklund Sport supplies and installs fitness facilities adjusted to the customers needs. The company supplies everything from sports flooring to moveable folding walls and dressing rooms. For Rungsted School (shown here), the company delivered parquet sports flooring, hoisting walls, basketball equipment and ribs in a harmonious solution to the daily delight of the students. The approximately 3,900 sqm hardwood floor in the headquarters of the Bill & Melinda Gates Foundation was made of end grain of alder wood and coated with Trip Trap Master Oil and Trip Trap High Solid Master Oil. For daily cleaning and maintenance, Trip Trap s finishing products are used. Excerpt from annual report (DKK thousand) 1/1-31/12 Result before tax 307-3,171-20,163 Result after tax ,071-19,094 Equity 29,640 26,568 7,475 Balance sheet 75,191 57,577 40,064 First investment year: 2001 Industri Udvikling A/S owner s share: 58.3% Location: Silkeborg, Denmark Number of employees: 47 Executive Board: Trine Brinch Sørensen Board of Directors: Jens Bach Mortensen, Chairman, Christian Cordsen, Peter Stampe Hansen, Lars Blavnsfeldt Accountant: KPMG, Aarhus, State-authorised accounts Mads Meldgaard and Christian Jøker Sports facilities and equipment Virklund Sport A/S is Denmark s leading provider of sports projects and covers a wide range from grassroots to elite, from school sports to club sport, from gyms and halls to outdoor sports facilities. In addition to total solutions for sports projects, the company also offers a great variety of service agreements to ensure sports facilities. The company has a wide range of sports flooring, platforms, moveable folding walls, change room solutions, running tracks, outdoor surfaces, and sports equipment for schools and gymnasiums. The subsidiary Sportsbyg A/S provides outdoor artificial surfaces. Virklund Sport s primary clients are municipalities, sports associations and major companies/organisations wishing to establish or improve sports activities. Virklund Sport sells directly to individual customers and operates on the Danish market including Greenland and the Faroe Islands. In 2012 Virklund Sport acquired a 49% share in its competitor A-Sport. The development of Virklund Sport has been unsatisfactory for a number of years. In 2013 the results were characterised by extraordinary depreciation on activated goodwill. However, without this, the results were negative by DKK 3 million. After the end of the financial year, Industri Udvikling bought out one of the other shareholders and currently holds the majority. A new CEO has been appointed as per 1 May It is believed that the company will improve operations and achieve improved earnings from now on. Excerpt from annual report (DKK thousand) 1/1-31/12 Result before tax 4,723 4,741 8,443 Result after tax 3,506 3,531 6,471 Equity 20,934 24,465 30,936 Balance sheet 67,598 60,510 54,106 First investment year: 2004 Industri Udvikling A/S owner s share: 46.4% Location: Lunderskov, Denmark Number of employees: 41 Executive Board: Claus S. Nørgaard, Jesper Frøkjær-Jensen Board of Directors: Peter Leschly, Chairman, Olav W. Hansen, Erik Jørgensen, Erik Schierning, Lars Buhl Accountant: Deloitte, Viborg, State-authorised public accountants Allan Søborg Olsen and Kenneth Biirsdahl Products for wood coating WoodCare Denmark A/S develops, manufactures and markets a complete range of products for the priming and caring of wood surfaces for the consumer market as well as the industrial market. The company is a market leader in the Danish consumer market as well as on a number of export markets for oil-based products. The industrial products are sold to leading flooring and furniture factories globally. WoodCare Denmark achieved a bottom-line result in 2013 which was substantially better than the result for the last few years, primarily because of depreciation and a certain amount of cost reduction. The focus is on increasing the top line and, with a number of growth initiatives and with market and product development positive overall, the bottom line and revenue are both expected to increase in 2014.

39 Exits The following exits were performed between 1994 and June 2014: INDUSTRI UDVIKLING A/S Company Business area Location, Denmark Abio A/S Stairs and railing systems, etc. Hadsund Agramkow Fluid Systems A/S Processing facilities for the handling of fluids Sønderborg Bilcon A/S Aluminium tankers Ålborg Bilwinco A/S Fully automatic weighing and dosing solutions Skanderborg BioDan A/S Products for the treatment of diarrhoea and supplements for animals Gesten Bladt Industries Holding A/S Onshore and offshore steel structures Ålborg Bukkehave Corporation A/S Transport solutions for charities Svendborg Danplate A/S Laminated wood Skærbæk DanTruck A/S Forklifts Uldum Dansk Møbelglas A/S Glass for furniture and façades Christiansfeld fibo maskiner a/s Production facilities for the lightweight concrete industry Videbæk First Impression A/S Information stands Vedbæk Gama Dan Equip A/S Solutions for the photographic industry Sorø GJ Industrilakering A/S Industrial finishing Ejby Fyn GK Glas A/S Double-glazed windows Jels Globe Meat Technology A/S Start-up and operation of meat processing plants Ålborg Green Farm Energy A/S Biogas-based energy plants Hadsten Gråkjær Staldbyg A/S Cattle and pig housing supplies Holstebro HMK Holding A/S Vehicle body frames Hjørring Hokodan A/S Metal cutting involving large pieces of steel Horsens ICEA Denmark A/S Packaging products for movies and photographs Pandrup i-data international A/S Printer connectivity products Bagsværd Incon A/S Internal transport systems Hadsund A/S Jydsk Aluminium Industri Cast aluminium parts Herning KE Fibertec A/S Ventilation and exhaust filters made of fabric Vejen Kjærgaard el & industri automatik a/s Industrial automation and electrical installations Løsning K.P. Komponenter A/S / K.P. Holding A/S Metal cutting Spjald A/S Kurt Hansen Holding Thin sheet metal work, etc. Svendborg Marketing Group A/S Licenced brand toys Kastrup MatchWork World Wide A/S Internet-based job placement systems Frederiksberg Mermaid Technology A/S Computers and flat screens Herlev Multifurn A/S Sale of furniture Herning Nordjysk EDB-Center A/S IT consulting firm Ålborg NTD International A/S Ships and nautical equipment Ringkøbing PF Management Holding ApS (PcP) Safety steps, grates, etc. Vildbjerg PhaseOneTrials A/S Clinical phase I and II A drug tests Hvidovre P. N. Erichsen Holding A/S Machine parts for the wind turbine industry Odense, Horsens PNE Steel A/S Metal cutting involving large pieces of steel Horsens Saint Tropez Holding A/S Fashion wear Hellebæk ScanView A/S Scanners and image setters Ballerup Sunprojuice Denmark A/S Ingredients for juice producers Ringsted Syntax Gruppen A/S Back office solutions for retail Hvidovre Timberman Denmark A/S Flooring Hadsund Tinglev Elementfabrik A/S Concrete elements for construction Tinglev Trip Trap Denmark A/S Furniture and gift items Hadsund Tømrer & Snedkergården ApS Production of wooden doors and windows Store Heddinge Ulmadan A/S Edge machining tools Odense Ulmadan Productions A/S Edge machining tools Silkeborg UM A/S Teaching equipment for physics and chemistry København Union Engineering A/S Carbon dioxide plant Fredericia Vildbjerg Papir A/S Print and production of paper bags Vildbjerg Zacho Mørup A/S Knitwear Ikast J. Zartow A/S Knitwear Herning Zealand Care A/S Devices for the elderly and disabled Holbæk Åkerbergs Maskiner A/S Mobile cranes Horsens 35 INDUSTRI UDVIKLING II K/S Company Business area Location, Denmark Belika A/S Men s knitwear Ikast Bila (B-Invest 2007 A/S) Automation solutions with robots Nykøbing Mors Carl Vollstedts Eftf. ApS Meet products Haderslev Comwir A/S IT hardware Brøndby Delika Food Group ApS Processed meats Hammel E.J. Badekabiner Holding A/S Prefabricated bathrooms Hedensted Engsø Gruppen A/S Construction projects Herlev Glenco A/S Technical service Hvidovre Hjem Holding A/S Low-energy prefabricated houses Herning Intego (Proniq Holding A/S) Electrical solutions Ålborg Interieur Holding A/S Shop design Herning Jydsk Planteservice A/S Plant sale and maintenance Kolding Labofa Munch A/S Office furniture Skælskør Meincke Holding A/S Bakery machines and ovens Skovlunde Metropak A/S Impress metal packaging and production of metal packaging Hedehusene REWSS A/S Software for error detection in telecommunications networks Frederiksberg Royal Danish Seafood Group A/S Aqua culture, smoked fish products Hanstholm Stema Engineering A/S Automatic stirrup bending machines for reinforcing steel Kvistgård Vitral Holding A/S Glass roofs and skylights Ølstykke INDUSTRI UDVIKLING III K/S Company Business area Location, Denmark Brødrene A.& B. Andersen A/S Contracting company Gadstrup DDD-Diagnostic A/S Nuclear-medical gamma cameras Hørsholm Printca A/S High-specification print Ålborg

40 Contact us 36 You are welcome to contact us for an informal conversation preferably over the telephone initially. Address: Gothersgade 175, 2. sal 1123 Copenhagen K Denmark Telephone: Telefax: If you arrive by car, you can park in the large car park under Israels Plads square on Vendersgade street a five-minute walk from our premises. Pay parking is also available in several streets close to our offices. If you arrive by train/metro, it is a seven-minute walk from Nørreport Station. Website: Please visit our website to view this presentation in PDF format as well as annual reports (in Danish) for Industri Udvikling A/S, Industri Udvikling II K/S and Industri Udvikling III K/S from 2013 and previous years. Our website also contains links to our portfolio companies websites. Industri Udvikling is centrally located in Copenhagen on the Søtorvet square between lake Peblingesøen and lake Sortedamssøen. We have the following addresses: Main address: [email protected] Investments: Lars Blavnsfeldt [email protected] Lars Buhl [email protected] Dan Højgaard Jensen [email protected] Ronnie Møller-Thorsøe [email protected] Finance/secretariat: Lene Krogh Ellgaard [email protected] Joan Jensen [email protected]

41 Employees Investment team: Lars Blavnsfeldt MSc Economics Previous employment: Lønmodtagernes Dyrtidsfond Department of the Ministry of Labour Lars Buhl MSc Political Science Previous employment: Dansk Industri M. Krüger Danwaste Dan Højgaard Jensen MSc in Business Economics (IBS) Previous employment: Dansk Industri Dansk Industri (Russia) Ronnie Møller-Thorsøe MSc in Business Economics (FIR) Previous employment: Danske Bank Atrium Partners Deloitte Finance / Secretariat: Lene Krogh Ellgaard State-authorised public accountant Previous employment: KPMG Joan Jensen Previous employment: Lønmodtagernes Dyrtidsfond Gyldendal

42 Industri Udvikling A/S Industri Udvikling II K/S Industri Udvikling III K/S Gothersgade 175, 2. tv., 1123 Copenhagen K Denmark Phone Fax [email protected]