Erria A/S : Årsrapport/Annualreport 2023

Annual Report

2023

(unaudited)

Erria A/S - Annual Report 2023

1

Table of Contents

Section	Page	Section	Page
Erria in brief	3	Outlook for 2024	16
5-year overview	5	Management & board	17
Letter from the CEO	6	Risks	18
Mission, Vision & Values	7	Sustainability	19
Business overview	8	Investor information	20
Strategy & aspirations	9	Financial statement 2023	21
Business areas	11	Balance sheet 31December 2023	22
Financial developments in 2023	15	Cash flow statement 2023	24

Erria A/S - Annual Report 2023

2

ERRIA ANNUAL REPORT - 2023

Erria in brief

A one-stop shop for maritime services

Erria is a Danish conglomerate involved in shipping, offshore operations, logistics, and trading, serving major international clients who outsource their maritime operations. The company has a significant presence in Asia, where it leverages its extensive 20+ years of experience in Vietnam and Singapore,

Erria offers a diverse range of services through close collaboration with its clients. Its key business sectors include Ship Management, Marine Warranty Surveying, and Offshore Personnel Services.

Additionally, Erria is involved in logistics through Erria Container Services in Vietnam, in service of life-saving and fire fighting equipment through Mermaid Maritime Vietnam, and in manufacturing and distribution of security seals through Cathay Seal in Indonesia.

Erria A/S - Annual Report 2023

REVENUE

2023

DKK 201m

ROE 2023

73%

NUMBER OF EMPLOYEES

221

EBITDA

2023

DKK 7.8m

HQ

LOCATION

Køge, Denmark

YEAR

FOUNDED

1992

3

ERRIA ANNUAL REPORT - 2023

Erria in Brief

History

Established as a shipping company in 1992, Erria has evolved into a Danish conglomerate engaged in shipping, offshore operations, logistics, and trading.

Erria was listed on Nasdaq in 2007, reflecting its growth and successful positioning in the maritime and related industries.

The company caters to major international clients who outsource their maritime operations. With a significant presence in Asia, Erria strategically leverages its 20+ years' experience in Vietnam and Singapore.

Erria acquired Mermaid Maritime Vietnam and Cathay Seal in Singapore in 2021 and 2022, respectively,.

100

million

Maritime Services	Maritime
Erria A/S	Services

International Subsidiaries

Erria Container Services Ltd.

Mermaid Maritime Vietnam Company Ltd.

Cathay Seal Pte Ltd.

DKK

101

million

DKK

International

Subsidiaries

Erria A/S - Annual Report 2023

4

ERRIA ANNUAL REPORT - 2023

5-year Overview

Key figures DKK '000	2023	2022	2021	2020	2019
PROFIT / LOSS
Revenue	201,199	157,931	59,076	55,457	57,692
Gross profit	65,511	57,845	29,440	25,799	25,150
EBITDA	7,812	13,214	1,785	94	156
EBIT	6,793	12,058	1,180	-492	-983
Net financials	-1,223	-739	-160	-238	-306
Net profit/loss for the year	4,250	9,344	1,003	-691	-1,355
BALANCE SHEET
Balance sheet total	67,597	69,138	26,631	16,952	19,092
Equity	7,823	3,855	-11,748	-13,424	-12,395
CASH FLOW
Cash flow from operating activities	3,406	11,533
Cash flow from investing activities	-203	-1,961
- hereof investments in PPE	772	461
Cash flow from financing activities	-5,094	-530
Net cash flow	-1,891	9,042
Number of employees	221	244	175	176	181
RATIOS
Gross margin	32.6%	36.6%	49.8%	46.5%	43.6%
Profit margin	3.4%	7.6%	2.0%	-0.9%	-1.7%
Return on assets	10.1%	17.4%	4.4%	-2,9%	-5.1%
Solvency ratio	11.6%	5.6%	-44.1%	-79.2%	-64.9%
Return on equity	72.8%	N/A	N/A	N/A	N/A
		Erria A/S - Annual Report 2023			5

ERRIA ANNUAL REPORT - 2023

Letter from the CEO

2023 was a strong year for ERRIA Group, evidenced by 27% revenue growth and positive net profit for the third year in a row. The success is attributable to our long-standing customer relations, strategic acquisitions, key contracts, and efficient management across our subsidiaries.

Financial performance in 2023	Contractor for a major rig mobilization project. This	frequency identification solution (RFID), and we are
With revenue surpassing DKK 200m in 2023, we	complex operation, involving multiple stages from	currently in discussions with a major global player
reached a new milestone in Erria's history. All	Rotterdam to Argentina, showcases our	regarding a potential future partnership.
business areas contributed positively to growth	comprehensive capabilities in marine logistics.	Additionally, the publication of our first
and profitability, except for Erria Container	Erria Container Services	Environmental, Social, and Governance (ESG)
Services (ECS) owing to a globally challenged	report for Cathay Seal highlights our commitment
shipping container market. Consequently, we	Despite a challenging year for container transport	to sustainable and responsible business practices.
reduced our staff in ECS by 35% in 2023 to	globally, ECS has adapted well. A new 2-year	Acquisitions and Strategic Growth
ensure that the business is fit for purpose.	agreement with Maersk in Vietnam, extending our
Maritime Services	collaboration since 2013, demonstrates our	The integration of Mermaid Maritime Vietnam and
resilience and strategic adaptability in face of	Cathay Seal has been pivotal in our expansion.
Our partnership with Orsted, which commenced in	global economic shifts.	These acquisitions have bolstered our presence in
July 2022, remains a cornerstone of our	Mermaid Maritime Vietnam	Asia and diversified our service offerings,
operations. In 2023, we focused on enhancing the	particularly in the safety and security sectors of the
Orsted fleet, including installing ballast water	Mermaid Maritime was a standout performer in	maritime industry.
treatment systems and planning for future safety	2023, securing multiple significant contracts,	Looking Ahead
and environmental improvements. This	including lifeboat services and an agreement with
relationship, set for five years with an option to	a Vietnamese oil company. These achievements	Our focus remains on providing comprehensive
extend, forms a stable base for expanding	not only underline our commitment to safety but	maritime services, with an emphasis on client
services in sea transport and the energy supply	also position Mermaid as a key player in Vietnam's	collaboration, geographical expansion, particularly
chain.	offshore industry, where we see a strong pipeline	in Asia, and diversification into trading activities.
Offshore Personnel Services involvement in a	well into the future.	We are committed to maintaining our position as a
Cathay Seal	trusted partner in the maritime industry and
Greenland route engineering project has laid the	exploring new opportunities, especially in offshore
groundwork for future engagements in cable	Building on previous successes, Cathay Seal's	wind and expanding Cathay Seal's market
installation, reflecting our growing expertise and	recent 3-year agreement with Maersk represents a	presence.
reputation in this sector.	significant milestone, emphasizing our role in
A highlight for Marine Warranty Services in 2023	securing container contents during transport. We
was being chosen as the Marine Warranty	also see great potential in our proprietary radio

Erria A/S - Annual Report 2023

Thank you

Thank you for your continued support as we navigate through these exciting times and lay the groundwork for sustained growth and success.

Sincerely,

Henrik Andersen

CEO, ERRIA A/S

6

ERRIA ANNUAL REPORT - 2023

Mission, Vision, Values & Strategy

We develop and simplify optimal maritime solutions.

Vision We provide high quality and cost-effective services to our customers

We are our customers'

Mission preferred supplier of integrated maritime solutions

• A passion for excellence

Values • Open and honest

• Respectful to our customers, employees, and external stakeholders

Customer base

Erria A/S is involved in shipping and shipping

related activities worldwide.

Our customer base include global companies like:

Erria A/S - Annual Report 2023

7

ERRIA ANNUAL REPORT - 2023

Business Overview

Maritime Services

Denmark

Maritime

Services

• Management and operation of ships on behalf of clients.
• Marine Warranty Survey
• Offshore Personnel Services

Workforce 2023:

31 employees

Revenue 2023

DKK 100 million

Vietnam

Erria Container

Services Ltd

• Container depot handling
• Container maintenance

Workforce 2023:

148 employees

Revenue 2023

DKK 38 million

International subsidiaries

Vietnam Singapore

Mermaid Maritime	Cathay Seal Pte
Vietnam Company Ltd.	Ltd.
• Service of lifesaving and	• Manufacturing and
firefighting equipment,	distribution of high-quality
ensuring safety compliance.	security seals

Workforce 2023:	Workforce 2023:
38 employees	4 employees

Revenue 2023	Revenue 2023
DKK 26 million	DKK 37 million

Erria A/S - Annual Report 2023

8

ERRIA ANNUAL REPORT - 2023

Strategy & Aspirations

Our Strategy

Our overall strategy is to offer a customer-oriented product portfolio of shipping-related services in close partnership with customers.

We position ourselves as a trusted partner for international clients that are outsourcing their maritime operations.

We supply a comprehensive suite of maritime services that are bundled and supplied in combination with other services or partners. The aim is to supply the customer with an individualised solution, yet at a competitive price due to synergies and economies of scale.

The most important resource of Erria is our competent and motivated employees as well as our agile and flexible organisation. Our experience, expertise and willingness to adapt is what distinguishes us from our competitors.

We pursue growth through close collaboration with customers, geographical expansion in Asia, and strategic diversification into trading activities through our subsidiaries in Vietnam and Singapore.

Erria A/S - Annual Report 2023

9

ERRIA ANNUAL REPORT - 2023

Strategy & Aspirations

Our Aspirations

Positive Workplace Culture

Internally, Erria Group boasts a positive and inclusive workplace culture. Employee engagement is high, and the organisation is recognised as an employer of choice.

The company invests in employee development, encourages innovation, and fosters a collaborative environment that attracts and retains top talent.

A Leader in Sustainability	Global Expansion	Strong Financial Performance
Erria Group is a leader in sustainability. The	Erria Group has successfully expanded its	Financially, Erria Group is thriving. The
company has implemented eco-friendly	operations globally, tapping into new	company has experienced consistent revenue
practices, reduced its environmental	markets and establishing a strong	growth, high profit margins, and created a
footprint, and it actively contributes to social	international presence.	healthy financial position.
initiatives.	This expansion has been guided by a	This financial strength has enabled the
This commitment to sustainability has not
thorough understanding of local markets,	company to reinvest in research and
only enhanced the company's reputation	cultural nuances, and regulatory	development, expand its market presence,
but also attracted environmentally	environments, allowing Erria Group to	and undertake strategic acquisitions.
conscious customers.	adapt its strategies effectively.

Innovation & Technology Excellence

Erria Group is at the forefront of innovation and technology adoption.

The company has successfully implemented cutting-edge technologies to enhance operational efficiency, improve product/service quality, and stay ahead of industry trends.

The organization is recognized for its commitment to staying innovative and agile.

Market Leadership

Mermaid Maritime Vietnam and Cathay Seal has successfully established themselves as market leader in their industries.

Through strategic initiatives, innovative products/services, and effective marketing, Erria Group has gained a significant market share, out-pacing competitors and becoming the preferred choice for customers.

A Diversified & Profitable Portfolio

The company's product or service portfolio is not only diversified but also highly profitable.

Erria Group has identified and capitalized on new business opportunities, expanded into emerging markets, and optimized existing offerings to cater to evolving customer need

Stakeholder Satisfaction

Erria Group has built strong and positive relationships with its stakeholders, including customers, employees, investors, and the communities in which it operates

Stakeholders trust the company's leadership, appreciate its transparency, and feel confident in the long-term sustainability of Erria Group's business.

Erria A/S - Annual Report 2023

10