2021-04-02

Correction in comments by the Executive Chairman, page 4 in the Annual report. One word was lost in
version published April 1. A “No” as highlighted below was lost.

Comments by the Executive Chairman

When I wrote the letter from the Chairman last year I wrote “Normally I use this forum to recap the year
that just passed and for talking about the future. I find that the situation this year warrants a different
approach.” I have decided that I will take a similar approach this year. I believe my comments in our Q4
release covers almost everything that is to be said about last year. I will therefore focus more on the
current situation and its impact, as it seems that there is almost no end to the impact. The beginning of
this year has meant some postponement/delay in the anticipated recovery for us. Some key markets
have been facing and is at the current time still facing shop closures in the brick-and-mortar part of the
business. This means that we will be facing consequences in that part of the business further into the
year than anticipated. The markets that are largest effected are countries like Germany and Netherlands.
We are, at the writing of this letter, looking at a situation in Germany with shops having been closed
since 10th of December, which is longer than the closures last year. In Germany it is still unclear when
we can reopen our retail. This means that German retailers, with a substantial digital presence, are able
to take delivery of the preorders for the spring, whereas the mostly brick and mortar-based retailers are
pushing deliveries of spring merchandise into late March or maybe April. Even though we have a good
orderbook we do not expect deliveries to achieve last year numbers in Germany. We are currently
working on how we can help our key retailers to overcome this situation by utilizing our strong balance
sheet. It is however unclear but hopeful that the major part of our customers will be able to make up for
the loss of sales in January to March during the rest of the summer. Given the situation we do however
expect a lot of deliveries to be done in April. Retail sales in Q1 is historically low volume months.