PACK TECH A/S

The company's purposes are packaging, trade, industry, publishing, and research.

Pack Tech's business strategy focuses on development and sales of sustainable packaging solutions to our key target groups - hair care and personal care. The Ocean Waste Plastic concept remains a key driver in the strategy offering our customers an opportunity to participate in the removal of plastic from ocean and rivers in Indonesia.

Pack Tech continues to focus more on customized packaging rather than standard packaging enabling our customers to obtain their “own” design and the share of customized packaging increases on a yearly basis. Even though, acquisition opportunities are being considered on an ongoing basis, we believe that strong organic growth is a corner stone of our value creation. The profitable growth will keep creating strong value for the shareholders while removing the world's oceans of plastic. Our ambition is to become the leading company in this field. Relentlessly, we will keep challenging the industry and ourselves to develop solutions to problems that couldn’t be solved yesterday. This is a driving force for our continued success.

Development in activities and financial and economic position

The income statement of the Company for 2024/25 shows a profit of DKK 17,119,847 and at 30 June 2025 the balance sheet of the Company shows equity of DKK 66,064,638.

Over the course of the year, we successfully continued to align our stock levels with customer expectations - ensuring timely deliveries while minimizing capital tied up in inventory.

Future expectations

We expect the coming year to be positive, with onboarding of many new customers and bringing new sustainable packaging to the market. Our heightened focus on the US market, together with the Ocean Waste Plastic concept and customized solutions in the past two years, is expected to serve as a key growth driver, resulting in substantial increases in both revenue and net results. The net result is expected to be in the range of 18 - 24 million DKK.

Profit/loss for the year compared to the expected development

The companys financial performance exceeded expectations. In 2024/25, the company achieved a profit of DKK 17,119,847 compared to DKK 12,926,028 in 2023/24. The profit for the year surpassed the expected range outlined in the 2023/24 annual report, driven by accelerated results from the company’s new strategy. The companys financial result for 2024/25 is considered satisfactory.

Recognition and measurement uncertainty

The company has received customer prepayments. In relation to one of these prepayments, a dispute has arisen with a customer regarding the fulfillment of certain obligations. According to the agreement, the customer is obligated to fulfill these obligations. Management is currently seeking a commercial resolution to the matter; however, depending on the outcome, there is a risk that the dispute may escalate to legal proceedings. Should this occur, the classification of the prepayment may change from short-term to long-term liabilities. Furthermore, management has recognized DKK 5,000,000 as other income, reflecting their estimate of the value of the outstanding obligations from the customer for the financial year 2025/26.

There has been no other uncertainties in recognition and measurement in the annual report.

18 | Information on significant uncertainties at recognition and measurement

The company has received customer prepayments. In relation to one of these prepayments, a dispute has arisen with a customer regarding the fulfillment of certain obligations. According to the agreement, the customer is obligated to fulfill these obligations. Management is currently seeking a commercial resolution to the matter; however, depending on the outcome, there is a risk that the dispute may escalate to legal proceedings. Should this occur, the classification of the prepayment may change from short-term to long-term liabilities. Furthermore, management has recognized DKK 5,000,000 as other income, reflecting their estimate of the value of the outstanding obligations from the customer for the financial year 2025/26.

Significant events after the end of the financial year

No events have occurred after the end of the financial year of material importance for the Company's

financial position.

16 | Charges and securities

The following assets have been placed as security with mortgage credit institutes:

Corporate mortgage with a nominal DKK 15,000,000 Mortgage in simple receivables / goods receivables, inventory and operating equipment / equipment.