ANNUAL REPORT OF SACKIT - CALCULATIONS OF THE KEY FIGURES

in DKK
INCOME STATEMENT 2019 2018 2017
Revenue=Net sales=Turnover 11,900,474 11,969,532 6,442,584
Personal Cost -7,520,260 -6,475,339 -3,417,069
Gross Profit/CM 4,380,214 5,494,193 3,025,515
Operating expenses and depreciation -644,625 -488,763 -338,090
Profit before financial items 3,735,589 5,005,430 2,687,425
Financial income 687 227,798 2,702
Financial expenses -1,189,289 -886,973 -604,855
Profit before finance 2,546,987 4,346,255 2,085,272
income tax -670,450 -1,055,060 -509,412
Net profit (profit for the year) 1,876,537 3,291,195 1,575,860

DEAS
Ambition and strategy
Strategy
Environment and Sustainability
Corona crisis
Capital resources
Financial risks
Business risks
Liquidity risks
in DKK
BALANCE SHEET 2019 2018 2017
Assets
Immaterial non-current assets
Licences 281,895 196,907 43,164
Finished Developments 1,220,188 601,978 163,428
Planned developments 406,544 181,468 152,744
Material non-current assets
Plant and Equipment
Office Equipement 210,603 355,524 495,562
Other operating equipement 103,852 164,206 103,760
Total non-current assets 2,223,082 1,500,083 958,658

Current assets
Goods and finished products 13,778,416 15,967,798 8,367,851
Advanced payments for goods 1,569,083 2,184,655 2,275,060
Total stock 15,347,499 18,152,453 10,642,911
Receivables from sales 11,633,252 9,497,502 2,967,759
Other receivables 155,816 117,382 87,742
Accruals 363,994 524,809 451,228
Total receivables from sales 12,153,062 10,139,693 3,506,729
Cash 124,642 72,387 895,667
Total current assets 27,625,203 28,364,533 15,045,307
Total assets 29,848,285 29,864,616 16,003,965

Liabilities 2019 2018 2017

Equity
Share capital 80,000 80,000 80,000
Reserve development costs 1,268,851 783,446 316,172
Transferred results 4,496,144 5,575,008 2,751,087
Total Equity 5,844,995 6,438,454 3,147,259
Provisions for taxes 474,000 325,500 178,600
Total Provisions 474,000 325,500 178,600
Borrowings, current
Long-term debts 5,505,519 1,873,647 2,502,672
Other debts 4,138,582 2,564,876 -
Total long-term payables 9,644,101 4,438,523 2,502,672
Short-term share of long-term debt 1,271,587 779,237 150,212
Debt to other lending companies 1,090,621 8,466,407 5,598,449
Liabilities to suppliers 1,318,576 2,101,478 1,300,148
Debt to associated companies - - 139,281
Corporation tax 433,950 850,160 349,666
Other debts 9,770,455 6,464,857 2,637,678
Total short-term payables 13,885,189 18,662,139 10,175,434
Total liabilities 23,529,290 23,100,662 12,678,106
Total equitiy and liabilities 29,848,285 29,864,616 16,003,965
KEY RATIOS 2019 2018
Profitability
ROI (Profit before interest/Total assets) 12.52% 16.76%
PMR (Profit before interest/Turnover) 31.39% 41.82%
ATOR (Turnover/Total assets) 0.399 0.401
ROE (Profit/Equity) 32.11% 51.12%
ROD (Net interest/Debt) -5.06% -4.83%
D/E (Debt/Equity) 402.55% 358.79%

Earning capacity 2019 2018

GPM (Gross profit/Turnover) 36.81% 45.90%
Breakeven sales (Fixed costs/GPM) - 1,751,363 - 1,064,809
Safety Margin (Actual turnover-Breakeven)/AT 114.72% 108.90%
Capacity Ratio (Gross profit/Fixed costs) -6.79 -11.24

Capital adjustment 2019 2018

Fixed asset turnover (Turnover/Total assets) 0.40 0.40
Stock turnover ratio (Production cost/Stock)
Stock turnover period (365/STR)
Trade debtor's ratio (Turnover/Trade debtors)
Trade debtor's period (365/TDR)
Trade creditor's turnover ratio (purchase on credit/Trade creditors end of year)
Trade creditor's turnover period (365/TCR)

Liquidity and Solvency

Solvency ratio
Liquidity
 2017

16.79%
41.71%
0.403
50.07%
-4.79%
402.83%

2017
46.96%
- 719,935
111.17%
-8.95

2017
0.40
 IMPLEMENTATION - FIGURES

They year of entry - expected 2021

Activity Start date End date
Activity plan - expected d
Contact and pre-marketing 1/1 28/2
Contact and pre-marketing

Negotiation -> Decision making

-> Closure of the deal -> 1-Mar 15-Mar
Contracting Negotiation -> Decision making -> Closure of the
deal -> Contracting
Preparing the products for Allianz
Preparing the products for
Allianz 16-Mar 15-Apr
Distribution to Allianz

Distribution to Allianz 16-Apr 18-Apr

 Activity plan - expected duration (days)

Contact and pre-marketing 58

ion making -> Closure of the 14

> Contracting
ring the products for Allianz 30

Distribution to Allianz 2
INVESTMENT OVERVIEW

ORANGE FELTER = from establishment budget

-Investment sum -39,418

calculation rate 10%
scrapvalue 286
lifespan, years 5
earnings

GULE FELTER = from operating budget GRØNNE FELTER = formulas

2021
Sales 2,333
Salesprices 65.0
Variable costs 40.3
DB pr. stk 25

Turnover 151,645
variable costs 94,120
DB 57,526
Capacity Costs 51,286
earnings contribution 6,240

year Inve. Og scrap

0 -39,418
1
2
3
4
5 -286

profitability
present value of payment flow 44,174
present value of investment 4,756

internal interest rate 13.87%

maxmium change in scarp value -7,660

critical scarp value -7,374

critical payback period 213 dage

critical earnings contribution 10,351.57 EUR

 Sensitivity Analysis:
We recommend SACKit to offer the product "CHARGEit" for the loyalty program with a internal
sales price of 65,00 €.
Why?
Allianz should rather has a cheaper price that they buy more products than SACKit has highe
goods. Otherwise the date of a positive coverage will be after the expected period of the loyalt
By using the sales price of 65.00 €, SACKit can achieve an internal interest rate of 13.87%. Thi
assumed calculation rate of 10%, which represents the unforeseeable events, inflation and othe
period.
Even though SACKit cannot expect a positive result (4756,00 €) until 2025, we recommend to m
anyway, as it will increase brand awareness and penetrate the market in Germ
risk, inflation, alternatives etc.

2022 2023 2024 2025

2,450 2,572 2,701 2,836
65.0 65.0 65.0 65.0
40.3 40.3 40.3 40.3
25 25 25 25

159,227 167,189 175,548 184,325

98,825 103,767 108,955 114,403
60,402 63,422 66,593 69,923
51,286 51,286 51,286 51,286
9,116 12,136 15,307 18,637

deposit payment net payment flow discountfactor

-39,418 1.0000
57,525.50 51,286 6,240 0.9091
60,401.78 51,286 9,116 0.8264
63,421.86 51,286 12,136 0.7513
66,592.96 51,286 15,307 0.6830
69,922.60 51,286 18,351 0.6209

see schedule 11,395 6,638 1.72

alysis:
loyalty program with a internal margin of 50% and a
,00 €.
products than SACKit has higher consumptions on
he expected period of the loyalty program of 5 years.
rnal interest rate of 13.87%. This is higher than the
eeable events, inflation and other risks over the given
until 2025, we recommend to make this investment
d penetrate the market in Germany.
present value acc. present value
-39,418 -39,418
5,673 -33,745
7,534 -26,212
9,118 -17,093
10,455 -6,638
11,395 4,756
4,756

213 Dage
Acquisition price in €

preliminary investigation 4,025

travel costs (2PAX) 1,920
hotel costs 1,560
new office equip 2,000
salary during develop. Period 20,833
pre advertisment preparation 1,000
free products for negotiation 3,080
set up webshop 5,000
total purchase price 39,418
4 weeks
2 flights per month jan-mar (TOTAL: 12 flights á 160,00 €) price per flight 160.00 EUR
2 nights in a hotel (65€ per night) price per night 65.00 EUR
PC, chair, desk lifespan 7
35h/week, 5 months
Pitch, Presentation, print brochures etc.
55 pieces á 56 € (CHARGEit Stand dock wireless charger)
number of flights 12
nights 24
years
 2021 2022
Turnover
number of orders 2,333 2,450
avg. Sales price 65.00 EUR 65.00 EUR
turnover total 151,645.00 € 159,227.25 €

variable cost
print allianz logo on charger 1,166.50 EUR 1,224.83 EUR
consumption of goods 92,153.50 EUR 96,761.18 EUR
extra transport approx. (per unit) 799.50 EUR 839.48 EUR
variable cost total 94,119.50 EUR 98,825.48 EUR

fix costs
advertisment costs 1,000.00 EUR 1,000.00 EUR
additional depreciation of office equip. 285.71 EUR 285.71 EUR
wage costs 50,000.00 EUR 50,000.00 EUR
total fix costs 51,285.71 EUR 51,285.71 EUR

Coverage
Turnover 151,645.00 € 159,227.25 €
variable costs 94,119.50 € 98,825.48 €
fix costs 51,285.71 € 51,285.71 €
total coverage 6,239.79 € 9,116.06 €

2021:
agencies in munich: 50
new contracts per year per agency: 70
ordervolume per year: 3500 pieces
ordervolume for 8 months from mid april: 2333 pieces

transportation costs:
one delivery every three months: 15.99 € per agency every three months (18 products; total
total for 50 agencies: 799.50 € every three months
price per unit: 0.34 €
https://www.dhl.de/de/privatkunden/pakete-versenden/weltweit-versenden/land/daenemark.html
 2023 2024 2025

2,572 2,701 2,836

65.00 EUR 65.00 EUR 65.00 EUR consumption of goods
167,188.61 € 175,548.04 € 184,325.45 € 39.5
43.45
44.24
1,286.07 EUR 1,350.37 EUR 1,417.89 EUR 45.03
101,599.23 EUR 106,679.20 EUR 112,013.16 EUR 45.82
881.45 EUR 925.52 EUR 971.80 EUR 46.61
103,766.75 EUR 108,955.09 EUR 114,402.84 EUR 47.4
51.35
55.3
1,000.00 EUR 1,000.00 EUR 1,000.00 EUR
285.71 EUR 285.71 EUR 285.71 EUR sales price
50,000.00 EUR 50,000.00 EUR 50,000.00 EUR 65.00 EUR
51,285.71 EUR 51,285.71 EUR 51,285.71 EUR 64.00 EUR
63.00 EUR
62.00 EUR
167,188.61 € 175,548.04 € 184,325.45 € 61.00 EUR
103,766.75 € 108,955.09 € 114,402.84 € 60.00 EUR
51,285.71 € 51,285.71 € 51,285.71 €
12,136.15 € 15,307.24 € 18,636.89 €

from 2022:
agencies in munich: 50
new contracts per year per agency: 70 (+5% per year)
ordervolume per year: 3500 pieces (+5% per year)
ordervolume per 3 months: 875 pieces (+5% per year)

cy every three months (18 products; total 2,7 kg)

(price increase of 5% per year)

daenemark.html
Margin result
50% positive coverage all years
45% first two year negative coverage, then positive
44% first three years negative, then positive
43% first three years negative, then positive
42% four years negative, then positive
41% all years negative
40% all years negative
35% all years negative
30% all years negative

result
positive coverage in the 5th year
positive coverage all years
all years negative
all years negative
all years negative
all years negative