Annual Report

ITAB Shop Concept AB Annual Report 2021

2 ITAB ANNUAL REPORT 2021 | 2 About ITAB 4 2021 in brief 6 CEO Andréas Elgaard on 2021 8 Value proposition 10 Strategy 12 Strategic priorities 14 Financial targets 16 Market in 2021 18 Sustainability 20 Products and Services 30 The ITAB share FINANCIAL INFORMATION 35 Administration Report with Corporate Governance Report 42 Proposed Allocation of Profits 48 Financial Review – Five years in summary 49 Comments on Five years in summary THE GROUP 50 Income Statement 50 Statement of Other Comprehensive Income 51 Statement of Financial Position 52 Statement of Changes in Equity 52 Statement of Cash Flows THE PARENT COMPANY 53 Income Statement 53 Statement of Other Comprehensive Income 53 Balance Sheet 54 Statement of Changes in Equity 54 Statement of Cash Flows 56 Notes 82 Alternative Performance Measures 83 Definitions 85 Auditor’s Report 87 Auditors 88 Board of Directors 89 Group Management ANNUAL GENERAL MEETING 2022 91 Annual General Meeting 2022 91 Financial information in 2022 This Annual Report 2021 is in all respects a translation of the Swedish original Annual Report. In the event of any differences between this translation and the Swedish original, the latter shall prevail. CONTENTS THIS IS ITAB ITAB IS WHAT WE CREATE TOGETHER WITH OUR CUSTOMERS At ITAB, we help customers turn consumer brand experiences into physical reality with our know-how, solutions and ecosystem of partners. Together with our customers, we create effective solutions that contribute to versatile and inspirational experiences. Our offering includes solution design, customised shop fittings, checkouts, consumer flow solutions, professional lighting systems and digitally interactive solutions for the physical store. We are currently helping customers within a number of sectors, with the principal sectors being: Grocery, Home Improvements, Consumer Electronics, Fashion, Café & Service Stations, and Pharmacy, Health & Beauty.

3 ANNUAL REPORT 2021 ITAB | PRODUCTION FACILITIES EMPLOYEES ITAB’S OPERATIONS 15 locations in 12 countries 2,930 people 24 countries THE DESIRED CONSUMER BRAND EXPERIENCE​ Translating aspirations of the retailer’s brand into a physical store experience, driving consumer footfall and retention. INCREASED CONVERSIONS AND SALES Delivering a store format, department or range experience that influences consumer buying behaviour. IMPROVED OPERATIONAL EFFICIENCIES & SERVICE Creating a seamless customer journey that increases throughput and improves the stores’ efficiency and service levels. REDUCED OPERATIONAL COST Improving the customer journey efficiency to influence store operating models and reduce cost. VALUE PROPOSITION ITAB IN FIGURES 2021 NET SALES SEK 6,245 million PROFIT AFTER FINANCIAL ITEMS EXCL. NON-RECURRING ITEMS* SEK 322 million 6.2% OPERATING MARGIN EXCL. NON-RECURRING ITEMS* 2,930 people NO. OF EMPLOYEES (average) *In 2021, non-recurring items affected EBITDA by SEK -157 million (-202), operating profit by SEK -166 million (-205) and profit after financial items by SEK -166 million (-208). Non-recurring items primarily comprise restructuring costs within operating activities. See page 49. Mkr ’17 ’18 ’19 ’20 ’21 0 2000 4000 6000 8000 Mkr ’17 ’18 ’19 ’20 ’21 0 100 200 300 400 % ’17 ’18 ’19 ’20 ’21 0 2 4 6 8 ’17 ’18 ’19 ’20 ’21 0 1000 2000 3000 4000

4 ITAB ANNUAL REPORT 2021 | As societies opened up following the COVID-19 pandemic, there were increasing indications in 2021 that consumers were returning to physical stores. Our customers have also become increasingly optimistic and are once again planning to make investments for the future, which was reflected in a favourable order intake for ITAB – despite the uncertainties the pandemic continued to create. Higher sales and effects from the transformation in line with our One ITAB strategy are reflected in the positive earnings trend for the year, while relatively high raw material prices and global supply disruptions had an adverse impact on earnings. 2021 IN BRIEF 2021 2020 Net sales, SEK million 6,245 5,323 Growth, % 17 -12 EBITDA, SEK million 499 376 EBITDA excl. non-recurring items*, SEK million 656 578 Operating profit, SEK million 224 112 Operating margin, % 3.6 2.1 Operating profit excl. non-recurring items*, SEK million 390 317 Operating margin excl. non-recurring items*, % 6.2 6.0 Profit after net financial items, SEK million 156 0 Profit margin, % 2.5 0.0 Profit after net financial items excl.non-recurring items*,SEKmillion 322 208 Profit margin excl. non-recurring items*, % 5.2 3.9 Profit after tax, SEK million 103 -22 Earnings per share**, SEK 0.50 -0.21 Cash flow from operating activities, SEK million -165 811 Interest-bearing net debt, SEK million 1,239 1,748 Interest-bearing net debt excl. leases, SEK million 609 1,092 Dividend per share***, SEK – – Equity per share**, SEK 12.17 15.69 Return on equity per annum, % 4.0 neg. Equity/assets ratio, % 46.2 31.3 Share of risk-bearing capital, % 46.9 32.0 Average number of employees 2,930 3,030 THE ITAB GROUP IN FIGURES * In 2021, non-recurring items affected EBITDA by SEK -157 million (-202), operating profit by SEK -166 million (-205) and profit after financial items by SEK -166 million (-208). Non-recurring items primarily comprise restructuring costs within operating activities. See page 49. ** In connection with ITAB’s recapitalisation in early 2021, the number of shares increased by 115,716,762 to a total of 218,100,192 shares. *** For information about ITAB’s dividend policy, see page 37. 2021 IN BRIEF GUIDANCE – ‘ONE ITAB’ On 10 July 2020, ITAB issued guidance regarding an earnings improvement and its total restructuring costs upon the implementation of the Group’s One ITAB strategy and transformation. Based on the conditions prevailing at that time, the guidance indicated an underlying annualised EBITDA improvement of SEK 270–330 million (compared with EBITDA of SEK 516 million for 2019) once the One ITAB transformation is fully implemented, which is expected to take place in the middle of 2022.The total restructuring costs for One ITAB in the 2020–2022 financial years were estimated at SEK 275–325 million. This guidance continues to apply.The restructuring costs for One ITAB to date total SEK 320 million, of which approximately SEK 60 million pertains to impairment losses related to restructurings. EBITDA excl. non-recurring items (SEK million) Guidance EBITDA after implementation of One ITAB 1,000 800 600 400 200 0 2019 2020 2021 One ITAB fully implemented 1) Outcome Guidance min. Guidance max. 1) Relates to annual rate once One ITAB has been implemented in full, which is planned for the middle of 2022.

5 ANNUAL REPORT 2021 ITAB | SUMMARY PER QUARTER 2021 0 500 1000 1500 2000 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 Q3/21 Q4/21 0 2000 4000 6000 8000 NET SALES (SEK million) Sales per quarter (scale on the left) Sales, rolling 4 quarters (scale on the right) 0 50 100 150 200 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 Q3/21 Q4/21 0 150 300 450 600 OPERATING PROFIT EXCL. NON-RECURRING ITEMS (SEK million) Operating profit excl. nonrecurring items per quarter (scale on the left) Operating profit excl. nonrecurring items, rolling 4 quarters (scale on the right) 2021 IN BRIEF The Group’s currency-adjusted sales increased by 13 percent compared with 2020,with the acquisition of Cefla Retail Solutions contributing 9 percent and organic growth 4 percent. The recovery that began in the second half of 2020 in Northern Europe and Central Europe also gained momentum in Southern Europe during the first quarter of 2021. Sales to the Grocery customer group increased most. Operating profit increased as a result of the higher sales and solid gross margins during the quarter, despite rising raw material prices. The Group’s currency-adjusted sales increased by 16 percent compared with 2020, with the acquisition of Cefla Retail Solutions contributing 10 percent and organic growth 6 percent. The positive sales trend when societies opened up after lockdowns during the pandemic, continued in all of the Group’s geographic markets. The increase in sales continued to have a positive impact on operating profit during the quarter, but was offset by supply disruptions and component shortages as well as relatively high raw material prices. The Group’s currency-adjusted sales increased by 34 percent during the quarter, with organic growth contributing 21 percent and the acquisition of Cefla Retail Solutions 13 percent. Most of the sales increase compared with 2020 occurred in Southern Europe. Operating profit was positively impacted by the increased sales, while sharply increased raw material prices and growing shortages of both raw materials and components adversely impacted the gross margin during the quarter. The Group’s currency-adjusted sales increased by 16 percent compared with the preceding year, with organic growth accounting for 5 percent. The markets in Eastern and Southern Europe had the strongest performance, both through organic growth and through the acquisition of Cefla Retail Solutions. Operating profit excluding non-recurring items was positively impacted by the increased sales, despite continued challenges in the business environment.As raw material prices and availability of components and raw materials stabilised, in combination with price increases and coordinated sourcing gradually strengthen the gross margin. Q1 Q3 Q2 Q4 NET SALES SEK 1,523 million (1,416) OPERATING PROFIT EXCL. NON-RECURRING ITEMS SEK 116 million (53) CASH FLOW FROM OPERATING ACTIVITIES SEK 102 million (126) NET SALES 1,464 million (1,258) OPERATING PROFIT EXCL. NON-RECURRING ITEMS SEK 75 million (95) CASH FLOW FROM OPERATING ACTIVITIES SEK -17 million (128) NET SALES SEK 1,488 million (1,142) OPERATING PROFIT EXCL. NON-RECURRING ITEMS SEK 81 million (61) CASH FLOW FROM OPERATING ACTIVITIES SEK -158 million (257) NET SALES SEK 1,770 million (1,507) OPERATING PROFIT EXCL. NON-RECURRING ITEMS SEK 118 million (108) CASH FLOW FROM OPERATING ACTIVITIES SEK -92 million (300)

6 ITAB ANNUAL REPORT 2021 | COMMENTS FROM THE CEO AN EVENTFUL YEAR WITH A STRONG CONCLUSION Following an eventful year that was characterised by operational challenges, it is pleasing to present a close to record-breaking conclusion to 2021,with favourable sales and earnings trends. ITAB’s transformation work and investments for the future proceeded according to plan during the year, and several important steps were taken to establish ITAB as the retail sector’s leading solution provider with a focus on sustainable growth and increased profitability. I am particularly proud of how our employees succeeded in meeting increased demand while managing supply disruptions, component and material shortages, and increased shipping, energy and material costs as a result of the pandemic. HEALTHY DEMAND AND A STRENGTHENED POSITION The sales trend was strong for the full year 2021, with currencyadjusted growth of 19 percent, of which organic growth accounted for 8 percent and the acquisition of Cefla Retail Solutions at the beginning of the year for 11 percent. Our focus throughout the year has been on supporting customers by providing them with the most complete solutions possible despite global supply disruptions, which was reflected in the strong organic growth for the full year. In terms of our customer categories, Grocery and Home Improvements reported the highest growth,and geographically, Southern Europe made the most significant contribution to the Group’s sales increase during the year. Of ITAB’s three solution areas, sales in Retail Interior and Retail Technology performed the best, while Retail Lighting reported a somewhat weaker sales trend during the year, mainly due to the global shortage of electrical components.At the end of 2021, we could confirm that we had a favourable order book. STRONGER POSITION IN THE GROCERY MARKET The acquisition of Cefla Retail Solutions was completed in January 2021. Cefla has a strong position in the grocery sector in Italy and through the acquisition of their business unit for retail solutions ITAB strengthened its market position, primarily in interiors and checkout solutions for the European grocery market. The acquisition was strategically important and the integration of the operations has been successful. Consequently, we have created opportunities to offer ITAB’s solutions to a wider group of customers and it has entailed clear synergies for both ITAB and our customers. POSITIVE EARNINGS TREND DESPITE EXTERNAL CHALLENGES The positive earnings trend is mainly the result of the increased sales and our ongoing transformation of our operations, including completed production relocations and cost adaptations, more shared ways of working and more efficient and flexible market cultivation. At the same time, the rapid and sharp increase in the prices of raw materials,

7 ANNUAL REPORT 2021 ITAB | shipping and other input goods in the first two quarters of the year negatively impacted earnings. During the year, we also experienced negative earnings effects from global supply disruptions and their impact on ITAB and the efficiency of our production, logistics and installations, with component and material shortages in many areas. We took continuous measures to continue to offer our customers the market’s best service and we saw a stabilising effect toward the end of 2021. We continuously adjusted our prices during the year and took other cost-saving measures to offset the negative earnings effects in the operations. At the same time, our cash flow for the year was negatively impacted by the increased inventory values due to our strong sales trend, increased raw material prices, longer lead times and higher inventory levels than normal in the autumn with the aim of ensuring our own delivery capacity to customers. We expect inventory levels to gradually return to normal in the coming quarters, and our efforts to reduce the need for working capital in the Group are continuing. For the full year 2021, GOOD PROGRESS IN OUR TRANSITION In terms of earnings performance, ITAB’s shift since we began the implementation of “One ITAB” in spring 2020 has generally been satisfactory, especially in light of the global challenges we have faced that were not a part of our plan.Compared with 2019, EBIT excluding non-recurring items has increased by over 60 percent to SEK 390 million for 2021. STRENGTHENED FINANCIAL POSITION AND NEW PRINCIPAL OWNER In early 2021, ITAB concluded a recapitalisation of the Group through a rights issue of SEK 768 million and an offset issue of SEK 100 million in order to strengthen the balance sheet, contribute to greater financial flexibility and finance theOne ITAB transformation plan. In connection with the recapitalisation, we also gained a new, strategic principal owner – the investment company Aeternum Capital AS, which currently owns close to 25 percent of the shares in ITAB. Aeternum Capital endeavours to generate long-term value through Board representation and support for its portfolio companies. Through the recapitalisation in combination with our focus on reducing working capital, we have lowered the Group’s indebtedness excluding leases by more than SEK 1,300 million at the end of 2021 compared with its peak in September 2019, which has significantly strengthened our financial position. This provides us with favourable conditions to grow organically and through acquisitions and to continue to strengthen our profitability over time. ITAB’S FOCUS IN 2022 We are now halfway through our transition and One ITAB strategy, with the heaviest measures behind us, which focused on adapting our cost structure with the aim of stabilising ITAB’s financial position.We have already begun the phase of investing in and developing new capabilities in 2021, which will remain the focus of our transformation work in 2022 and is expected to be concluded in 2023. In 2022,we will see continued expansion organically and through acquisitions, with a clear focus on Europe, and by following our strategic customers’ global expansion. We expect ITAB to make decisive progress toward a position as “The retail sector’s leading solution provider”, with the aim of increasing our share of services and solutions in Retail Technology. In conjunction with the preparation of the annual accounts in February 2022, the Board of Directors of ITAB adopted new financial targets focused on sustainable growth, increased profitability and continued capital efficiency over time. Read more about our long-term financial targets on the following pages and our website. The uncertainty in our operating environment and markets regarding, for instance, the pandemic’s further development and the effects due to Russia’s invasion of Ukraine is exceptional, and we are closely following the development. Our proximity to our customers and our ability to rapidly adapt to external changes are the key to ITAB’s success, and our goal is to continue to strengthen our customers’ competitiveness in the best possible way. As such, our priorities for 2022 include safeguarding our own service level and ability to deliver to customers by remaining proactive in our sales and purchasing efforts, combined with additional efforts to increase efficiency in our production and delivery capacity. As the relatively high raw material prices and shipping costs stabilise and expanded capacity globally are deemed to reduce the component shortages in the coming years,we are convinced it will become even clearer that we are continuing to improve our underlying profitability. At the same time, everything we do at ITAB is guided by our focus on contributing to a sustainable future – for companies, people and the environment.Together with our customers and partners, we discuss sustainability issues and the development of more circular solutions with less impact on the world around us on a daily basis. In 2022, we will continue to follow our plan to achieve our established sustainability targets and ambitions over the coming years. Our sustainability efforts are presented in a separate Sustainability Report on our website. MY SINCERE THANKS With our complete solutions, broad product and service offering, strong partners and all of our passionate employees, we at ITAB have strengthened our customers’ competitiveness in an optimal manner, despite external challenges. I would therefore like to extend my sincere thanks to all our employees for their tremendous work in an eventful and challenging 2021, and to our customers and partners for their continued confidence in us. I look forward to an exciting new year in 2022 together with you. Jönköping, March 2022 COMMENTS FROM THE CEO Andréas Elgaard, President & CEO

8 ITAB ANNUAL REPORT 2021 | Changes in the retail market in recent years have been driven by new consumer behaviour. To keep up with developments and to better understand future demand, requires in-depth knowledge of the end consumer. ITAB has conducted consumer surveys to better assist its customers and thereby developing the right solutions for these new challenges. In listening to consumers clear messages could be heard. UNDERSTANDING THE CHANGES IN CONSUMER BEHAVIOUR The world’s consumers are increasingly better informed and online, and as a result more time conscious and demanding. They are accustomed to having access to what they want,when they want it, and in the way they want it.Today’s consumers have higher expectations of brands, particularly in terms of choice, convenience, service and added value. In order to understand these changes, ITAB has carried out several studies in consumer behaviours through interviews with consumers in Asia and Europe. From these, consumer patterns have been discerned, which have enabled the creation of a unique working tool.This enables ITAB to better understand the market challenges and opportunities, and to help customers clarify the evolving needs, wants and behaviours of their target consumer. Together with operational necessities, this drives ITAB’s concept and solution design process. The needs range from the more basic needs, such as price, safety and convenience, as witnessed during the COVID-19 pandemic, to the more aspirational, such as experience, inspiration, group affiliation and self-esteem. By providing deeper insight, ITAB’s specialists and their customers can co-create different operational solutions to support the investment in differentiating their brand experience in the store, and ensure a quick ROI. By understanding the consumer’s behaviour and market challenges, ITAB will be the best partner to help customers find the right solutions to convert their brand strategy into a physical store/meeting place. CONSUMER EXPECTATIONS REQUIRE RETAIL TO CHANGE The consumer of the future demands environments that provide convenience, choice and/or a place for socialising and fun. Many are seeking a healthier, more sustainable lifestyle, while others simply want a deal and find the best price. However, to complicate matters further, their wants and needs and resultant shopping missions can vary not only by the day of the week, but also by the time of day. They also expect to be seamlessly guided through an integrated and personalised experience across both offline and online channels. A successful concept must stand out by offering a frictionless consumer journey and experience that meets most or all of these raised expectations. CONSUMER EXPECTATIONS DRIVING RETAIL DYNAMICS STRATEGY

9 ANNUAL REPORT 2021 ITAB | STRATEGY To provide the additional support that ITAB’s customers now require, it is essential that client-facing teams have a good understanding of consumer needs and how to satisfy them. To do this, behavioural trends are identified in the “consumer hierarchy of needs” to help customers translate these needs into physical reality. According to ITAB’s new analytical tool terminology, convenience is taking care of consumers in a seamless way – that is, Time well saved. Inspiration is making sure you engage in a meaningful way – in other words, Time well spent. It is about understanding consumers’ expectations when they are in different moods and modes. Retailers are experimenting and exploring new ways to stay relevant and to differentiate their store experience from their competitors. RETAILERS ARE ADAPTING TO NEW CONSUMER BEHAVIOUR With consumers having more choice and greater expectations on convenience and service, it is getting harder for retailers to keep up with a consumer who expects their varying needs to be met every time, 24/7. In addition, disruption has come from new competitors, new channels (online and mobile), and new business models.This disruption has diverted retailers’ investment priorities to compete with online and price-led formats. Many retailers are switching their investment priorities, from store expansion and refurbishment to online integration, experiential initiatives and promotions. They are testing new shop fitting concepts, reformatting existing space to bring in new products and services, and investing in new digital tools. However, in most cases consumers’ raised expectations still are not currently being met by their in-store experience. Many offline retailers with physical store networks continue to lose sales to online operators, while facing increasing price pressures. They are looking to find ways to bridge this gap between consumers’ online and offline experiences, and ideally create a single, seamless and flexible shopping journey. However, any investment in productivity and store experience needs a clear and rapid ROI. As a result, many of ITAB’s customers are seeking greater support from suppliers with solution design expertise and experience to resolve their “service vs cost” dilemma, so ITAB’s role has already started to evolve. CONSUMERS AT THE HEART OF EVOLUTION As part of One ITAB, strategic business review in the latter part of 2019, ITAB considered how they could help retailers afford to invest in better service and experience when their current operating model costs are increasing. By learning from consumers and analysing how their expectations and spending patterns continue to evolve, and understanding the impact online and social media is having on society and consumer behaviour, the physical store can be helped to satisfy the expectations and relationship needs of shoppers. ITAB’s value proposition is customer-centric and focuses on four well-defined ROI objectives: • The desired consumer brand experience • Increased conversions and sales • Improved operational efficiencies and service • Reduced operational cost The markets for future investment were also prioritised.This work will provide the main platform for our profitable and sustainable growth in the coming years. Rethink Retail.Together. Store design and architecture Retail Interiors Experience amplifiers and personalisation Online/offline integration Solution Design and Integration Retail Technology Process, Project management, Logistics and Installation Retail Lighting Maintenance Seamless Checkout and payments Back-end productivity Retail Analytics SERVICES SOLUTIONS PRODUCTS ITAB’S VALUE PROPOSITION STRENGTHENS EUROPEAN RETAILERS

10 ITAB ANNUAL REPORT 2021 | A STRATEGY TAILORED TO MEET A CHANGING MARKET Consumer and market dynamics are driving the need for continious changes in the retail market. ITAB is evolving its business under the One ITAB strategy to further support its customers, as well as to take advantage of new opportunities. The Group’s market and customers have been permanently changed by the disruption caused by online and mobile usage growth, and its impact on consumer behaviour. As a result,we have been evolving the current ITAB business to better support customers in this new retail landscape, and to meet the expectations of all our key stakeholders. The future direction of the Group was co-created with input from our colleagues, customers and consumers from all over the world in late 2019.As a result, our One ITAB strategy is based on an in-depth understanding of current and future consumer expectations and market demand. It is built on current strengths and future opportunities, and provides everyone in the ITAB Group with a clear direction and understanding of our strategic goals and desired business model. We are now continuing to refocus our business to meet our customers’ changing needs, building on our existing strengths and creating new revenue streams for growth.We are updating our offer in order to develop a more sustainable revenue model, creating new demand and selling more of our equipment and services to more customers. On the one hand, we are continuing to improve our traditional product and service offers; on the other hand, we will build on existing and new strategic customer relationships to satisfy the growing demand for outcome-based solutions. This combined approach will help us to grow our service-based revenues, and to smooth out the current demand peaks and troughs. RETHINK RETAIL.TOGETHER. Our mission statement is as follows: “At ITAB we help customers turn consumer brand experience into physical reality with our know-how, solutions and ecosystem of partners.” Through the physical realisation of engaging, efficient and seamless environments, we are delivering measurable results for customers in terms of their key performance metrics – experience, sales, efficiency, service and costs. We provide them with expert support to achieve their store profitability goals, from new concept and solution design, through tactical performance improvement initiatives, to more efficient store project implementation and refurbishment programmes. Consumers are looking for better experiences everywhere. There are new opportunities for us to deliver value. Our approach will not only enable us to expand the share of our existing markets, but also allows us to cultivate various new markets where we can add value. It is about doing what we have been good at,but better,whilst also exploring new emerging opportunities. 1. Reposition to a Solution Provider Our strategic vision is to develop a solution-based business model, building on the Group’s intrinsic knowledge base and its success in delivering innovative solutions.Where we have developed more strategic relationships with customers and address their new market challenges, we drive greater value both for them and for our Group. One of our strategic priorities is to further build on this success and expand our solution design approach to a wider range of customers.The customers will benefit from working within our proven solution design process which is both customer and consumer centric. 2. More Agile Manufacturer We are further re-engineering our operational structure and processes to reflect changing demand and to improve our production agility and flexibility. In general, our market is no longer characterised by long-term roll-out programs with large volumes. Instead, customer demand is increasingly based on projects with smaller volumes and shorter lead-times. Over the years our manufacturing base has been following more traditional demand patterns.As a result we have now identified a number of opportunities to increase operational efficiency and consistency throughout the Group. 3. Become One ITAB In 2019, the establishment of One ITAB highlighted issues caused by the Group’s structure, which at the time consisted of a large number of individual business units based on product offer and country of origin.There were inefficiencies in communication, shared knowledge and shared ways of working as well as disparate cultures, which we are now addressing.The strategy work also revealed that a number of the desired strategic components were already in place with consultative selling activity, an existing solutions portfolio, senior customer relationships and training programmes. ADAPTING TO A CHANGING MARKET – THREE CORE BUILDING BLOCKS STRATEGY


12 ITAB ANNUAL REPORT 2021 | ITAB’S STRATEGIC PRIORITIES The core of the One ITAB strategy is to evolve ITAB’s business to a solution-based and more agile business model. This is built on the Group’s intrinsic knowledge base and its success in delivering innovative solutions, and at the same time the Group’s management, operational and cost structures are re-aligned in accordance with the strategy. To do this, we need to expand on and strengthen our existing capabilities in relationship management, solution and service sales, knowledge sharing, shared core processes and IT systems. We have phased our priorities to support the needs of our operations - firstly, to stabilise our financial position then to establish new fundamental and distinguishing capabilities, after which we will enter our expansion phase. THE VALUE OF STRATEGY LIES IN ITS DELIVERY We have identified seven Strategic Priorities to streamline and help drive growth and change in the Group. Specific goals and detailed action plans have been prepared for the Strategic Initiatives under the control and leadership of Group Management. The changes are implemented in close co-operation with the leaders in each of the market regions and strategic business units to realise our plans and achieve the goals quickly and efficiently. To support of our strategic priorities and build up the competence required to live up to our ambitions and goals, we have implemented a large number of initiatives over the past 18 months. We have successfully implemented several actions to support our initial phases of the strategy, and we are now continuing to work on further initiatives to build and expand our operations – as well as to create shared work methods and strengthen the participation of our employees. STRATEGY BEING A SOLUTION PROVIDER This is all about how we approach problem solving for our customers, and create measurable ROI for ITAB’s solutions. We start by understanding our customers’ strategic goals and challenges, and through a holistic dialogue we co-create solutions. Progress to date includes: • Launch of our outcome-based value proposition. • Introduction of our solution design capabilities to support all Group customers. • Launch of our new website to share know-how and experiences from results-based solutions. • Establishment of a commercial matrix to share best practices and develop shared working methods. Holland & Barrett is one of the world’s leading health and wellness retailers and the largest in Europe, providing their customers with a wide range of vitamins, minerals and health supplements. During 2021 and the successful execution of a pilot store, ITAB was awarded to deliver and install various shops within the Benelux region and Spain with modular store interiors and lighting solutions. The new concept store, situated on Tottenham Court Road, positions ‘the floor room’ by Carpetright in a high-profile location raising consumer expectations.Through Solution Design, ITAB co-created a brand-new retail concept by designing and developing fixtures, technology, and lighting that contribute to the overall success of the store. SAPORI & DINTORNI, Italy - To deliver a delicious food experience, areas filled with quality local goods were incorporated into the concept.Tasting, catering and exploring areas enhance the experience further.All displays, furniture and specialist equipment such as checkouts and exit systems were carefully designed and planned to respect and match the architecture.

13 ANNUAL REPORT 2021 ITAB | EMPOWERING PEOPLE AND SHARED WAYS OF WORKING Through clear KPIs, shared ways of working and access to the right information at the right time, our people will be able to make good business decisions. Our aim is to make all ways of working parallel, collaborative, cross-functional and transparent. Progress to date includes: • Development of IT roadmap and action plan to support fundamental capabilities. • Implementation of shared ways of working and support systems across our sales organisation. • Revised operating model and new organisational structure implemented. • Transparency of potential and key customers. DEVELOPING AN ECOSYSTEM OF PARTNERS Building a robust ecosystem of partners will enable us both to deliver the complete solutions required by our customers, and to reduce our supplier numbers to drive out complexity and improve predictability. Progress to date includes: • Sourcing organisation established at the Group and business unit levels. • Direct material expenditure categorised. • Ongoing consolidation towards preferred suppliers. • Developing additional partners to support our opportunities to offer solution design. Other related goals include: • Establish a network of partners to create and deliver new innovative solutions faster. • Eliminate complexity and improve predictability. RE-ENGINEERED COST STRUCTURE In accordance with the One ITAB strategy, we are re-aligning the Group’s management, operational and cost structures, ways of working and differentiating capabilities. Our focus is to continue ensuring profitable and sustainable growth going forward. Progress to date includes: • Reduced sales and administrative expenses and a considerably stronger financial position. • Consolidation of manufacturing and new structures to drive synergies and economies of scale. • New operating model and organisational structure to facilitate a leaner and more dynamic organisation. • Focus on core capabilities and market development in Europe. EXPANDING OUR MARKET POSITION Currently, our main differentiator is our know-how, our customer relations, and our comprehensive portfolio, which is unique in the market.We will build on these strengths and make them a reality in all our regions, thereby expanding our market position. Progress to date includes: • Focus on European retailers and providing them with global support when relevant (within Grocery, Home Improvements and other customer groups, such as pharmacies and fuel stations). • Increased conversion and cross sales to existing customers. • Increased penetration of existing markets (prior to the opening of new markets). • Utilising our strengths and cross-sectoral know-how, through increased sales and deliveries of solutions. Other related initiatives include: • Strengthen our capacity to sell more of our existing services in several geographic regions. • Expand the scope of our services to support additional sections of the retail industry’s value chain that have an impact on physical stores. • Invest in Retail Technology to optimise seamless store experiences and efficiency. EXCELLENCE IN OPERATIONS Excellence in operations means that we take pride in “first time right” and “in the agreed time,” and use Lean methodologies when we design our shared ways of working. We will continue to focus on reducing lead times, improving quality and eliminating waste in our operations. Progress to date includes: • Matrix structure established to share best practices and build shared ways of working. • ITAB’s Ways of Working (WoW), based on Lean principles, piloted in two companies • Launch of steering committee to supervise all operational development in accordance with One ITAB. Our goals include: • Full implementation of ITAB’s WoW. • “First time right” and “in the agreed time.” • Reduce lead times and improve quality. • Common operational KPIs. SUSTAINABLE FUTURE At ITAB, we collaborate and continuously innovate for a sustainable future. We have clear goals and ambitions for our own operations in terms of sustainable business development, efficiency in the value chain, good working conditions and business ethics. Progress to date includes: • Assessment of our sustainability programme by an independent partner, EcoVadis, contributing to our roadmap for the future. • Development and deployment of a new Sustainable Procurement Policy and Supplier Code of Conduct. • Training initiatives to strengthen operations in production and logistics, comprising nearly 6,000 hours of training. • Development of carbon assessment services for our customers. Our sustainability strategy is based on four main areas: • Sustainable Business Development • Efficiency in the Value Chain • Good Working Conditions • Business Ethics STRATEGY

14 ITAB ANNUAL REPORT 2021 | FINANCIAL TARGETS FINANCIAL TARGETS FOCUSED ON SUSTAINABLE GROWTH & PROFITABILITY 4-8% 7-9% >80% >30% GROWTH Average growth in net sales (CAGR) of 4-8 percent per annum over a business cycle. Growth is to be achieved by sustainable organic growth and strategic acquisitions. Sales growth CAPITAL EFFICIENCY Average cash conversion ratio (operational cash flow in relation to operating profit before depreciation and amortisation) of at least 80 percent over a business cycle. Cash conversion EARNINGS Average EBIT margin (operating profit in relation to net revenue) of 7-9 percent over a business cycle. EBIT margin DIVIDEND POLICY As before, dividends over a longer period should follow the result and correspond to at least 30 percent of the company’s profit after tax. However, dividends will be adjusted to the company’s investment requirements and any share repurchase program. Proportion of profit after tax Based on the Group’s strategy, ITAB is today well positioned for the next step in the implementation of One ITAB. We intend to establish ITAB as the retail market’s leading solution provider in the coming years. ITAB builds capabilities for more efficient and sustainable sales, purchasing and production with the ambition of increasing the proportion of services in its customer solutions. Over the past two years, ITAB has carried out a number of important activities in the transformation of the business,where the share of sales to the grocery sector has increased to approximately 60 percent and with an increased share of sales of Retail Technology and services, as well as improved profitability and strengthened financial position. In order to take the next step in the development, the Board of Directors of ITAB Shop Concept established new financial targets, in conjunction with the preparation of the annual accounts in February 2022, that focus on sustainable growth and increased profitability.


16 ITAB ANNUAL REPORT 2021 | ITAB’s market position and potential for growth are based on close, long-term collaborations with customers and business partners. In 2021, consumers returned to physical stores in most markets, as societies opened up following the lockdowns due to the COVID19 pandemic. ITAB’s customers have also become increasingly optimistic and are once again planning to make investments for the future, which was reflected in a favourable order intake for ITAB throughout the year. During 2021, the Group’s sales increased by 17 percent compared with the preceding year. Currency-adjusted sales increased by 19 percent, with organic growth accounting for 8 percent and the acquisition of Cefla Retail Solutions contributing 11 percent. ITAB’s customers include several of Europe’s largest retail chains and brand owners within both the grocery and the specialist trade sectors, including international and national chains and brands. These customers include Albert Heijn, Asda, Axfood, Bricoman, C&A, Carrefour, Celesio, Circle K, Clas Ohlson,Conad,Coop,Costa,Dixon,Dollarstore,Edeka,Elon,Etos, Eurospin, Finiper, H&M, Homebase, ICA, IKEA, John Lewis, Jumbo, Kesko, LeClerc, Leroy Merlin, Lidl, LuLu, Majid Al Futtaim, Metro Group, Morrisons, NorgesGruppen, Pandora, Prisma, Polestar, Real, Rema, Rewe, Rimi,Tesco,Tiger, Uniqlo and Waitrose. ITAB has competitors in most geographic markets and in several product areas. These competitors include Eden, Expedit, Fagerhult, Hermes-Metal Yudigar (HMY), Kesseböhmer Storebest, Lival,Mago,Modern Expo,NCR,Nitton93, ROL, Ruppel, Tegometall, Umdasch,Van Keulen Interieurbouw,Visplay,Wanzl, Diebold Nixdorf and Fujitsu. ITAB presents the breakdown of the Group’s sales in two dimensions: • Breakdown by customer group • Breakdown by geographic area More information about this can be found in Note 6. A CHANGING MARKET CREATES NEW OPPORTUNITIES GROCERY The Group’s largest customer group mainly comprises food stores. Sales to Grocery increased by 19 percent during 2021, with our operations in Southern and Eastern Europe accounting for most of the increase. HOME IMPROVEMENTS The customer group refers primarily to construction, furniture and home furnishings stores.The customer group increased by 18 percent compared with 2020. The increase occurred in Southern and Eastern Europe, while sales in the UK & Ireland and Central Europe declined. FASHION This customer group includes stores selling ready-to-wear clothing and shoaes, etc. Total sales to Fashion were unchanged in 2021, with increases in Eastern and Southern Europe. Sales declined in the UK & Ireland and Northern Europe. OTHER CUSTOMER GROUPS Other customer groups include consumer electronics, sport & leisure, pharmacies, fuel stations, offices, brands, industry, cafés and restaurants.Total sales to Other Customer Groups rose 19 percent in 2021, primarily in Southern Europe. MARKET BY CUSTOMER GROUP The customers are divided up according to the sectors within which they operate.The customer groups are Grocery, Home Improvements, Fashion and Other Customer Groups. MARKET IN 2021 Proportion of the Group’s sales by customer category 59% 14% 7% 20%

17 ANNUAL REPORT 2021 ITAB | MARKET BY GEOGRAPHIC AREA Below, the Group’s customers are divided up according to the geographical market in which they operate.These are Northern Europe, Southern Europe, Central Europe, United Kingdom & Ireland, Eastern Europe and Rest of the World. NORTHERN EUROPE Northern Europe, which includes the Nordic countries, is ITAB’s largest geographic area, with 28 percent of the Group’s sales. In 2021, sales essentially remained unchanged, with increases in the Grocery customer group, while the sales trend was adversely impacted in other customer groups. SOUTHERN EUROPE Following the acquisition of Cefla Retail Solutions in early 2021, Southern Europe is now ITAB’s second-largest geographic area, with 24 percent of the Group’s sales. Southern Europe mainly comprises Italy, France and Spain. Including Cefla Retail Solutions, sales increased by more than 100 percent in 2021. CENTRAL EUROPE Central Europe was responsible for 23 percent of the Group’s sales in 2021.This area is made up of Germany, the Netherlands, Belgium, the Czech Republic, Hungary, Switzerland and Austria. Sales increased by 16 percent during the year, with the Fashion and Grocery customer groups accounting for most of the increase. UNITED KINGDOM & IRELAND United Kingdom & Ireland accounted for 14 percent of the Group’s sales in 2021. Sales declined by 9 percent during the year, with Grocery showing increased sales, while other customer groups reported decreased sales. EASTERN EUROPE Eastern Europe was responsible for 6 percent of the Group’s sales in 2021, with the Baltic States, Poland and Russia reporting the highest sales. Other countries in this region include Romania, Slovakia, Croatia and Serbia. Sales increased by 27 percent during the year, with the Fashion and Home Improvements customer groups accounting for most of the increase. REST OF THE WORLD The Rest of the World geographic area comprises all countries outside of Europe.The countries where ITAB reports the highest sales are USA, China, Argentina and Saudi Arabia. Rest of the World was responsible for 5 percent of the Group’s sales in 2021. Total sales declined by 4 percent during the year, with sales in the Fashion and Home Improvements customer groups showing the greatest declines. MARKET IN 2021 Proportion of the Group’s sales by geographic area

18 ITAB ANNUAL REPORT 2021 | CONTINUOUS DEVELOPMENT FOR A SUSTAINABLE FUTURE SUSTAINABILITY Sustainability refers to development that meets today’s needs without jeopardising the ability for future generations to meet their own needs.Hence – as a proponent of sustainable development, ITAB takes responsibility for the way in which our business reaches its profitability goals.This responsibility spans the entire value chain – from manufacturer and supplier to consumer. For ITAB, it is important to conduct an ongoing dialogue with its stakeholders and thereby build a relationship that incorporates their views, expectations and needs in the area of sustainability. The aim is that this should contribute to sustainable value creation. ITAB’s most important stakeholders are: • Customers • Employees • Owners • Suppliers • The local community In 2021, ITAB’s sustainability programme was strengthened with the appointment of a Sustainability Manager for the Group. Working in close co-operation with the Group’s Sustainability Council, the programme was also reviewed and redefined with a set of new and revised Sustainable Goals, approved by Group Management. In addition, for the first time the business’ sustainability was rated by EcoVadis, an independent partner measuring the quality of a company’s sustainability management system through its policies, actions and results, earning ITAB a bronze medal on the scoring criteria. The Group’s sustainability goals and the rating by EcoVadis are presented in more detail in ITAB’s Sustainability Report 2021 on The focus for ITAB is now to further develop the roadmap going forward and take decisive actions that will allow ITAB to achieve its Sustainability Goals and lead to a higher score in the EcoVadis’ future ratings. In the development of our new goals an analysis of some of our largest customers own sustainability goals was done ensuring that ITAB’s sustainability efforts to be complimentary to their CSR programmes. Other external and internal stakeholders have been involved at every stage of the development and deployment of the goals.The continued roadmap will consider the impact that the operations have on the economy, society, people and the environment,as well as those aspects that affect the stakeholders’ decision-making and their expectations. The long-term focus areas that have been identified can be found on the next page. REPORTING AND FOLLOWING UP Reporting on how well ITAB’s sustainability work is proceeding takes place in line with Global Reporting Initiatives’ (GRI) guidelines for sustainability reporting. ITAB has developed a number of Key Performance Indicators (KPIs) for regular following up and reporting of the sustainability work. The KPIs are reported quarterly by each commercial company to the Parent Company, and are followed up in ITAB’s Sustainability Council, in which all the Group functions are represented. The KPIs and reporting according to GRI can be found in ITAB’s Sustainability Report 2021. SUSTAINABILITY RISKS ITAB is continuing to work on reducing the risks as regards environmental and social issues in the value chain. The assessment of sustainability risks is an important part of the work on the materiality analysis and forms the basis for the sustainability programme and the priorities as regards our sustainable goals. ITAB has operations in some markets that are associated with a raised sustainability risk. Issues relating to safety, working conditions and corruption are particularly important from a risk perspective. ITAB handles the risks through the activities in the sustainability programme and with the implementation of ITAB’s Code of Conduct and the new Supplier Code of Conduct and Sustainable Procurement Policy. The actions from the EcoVadis assessment are also increasing the robustness of ITAB’s policies and procedures in these areas. Several of ITAB’s facilities located in countries associated with a higher risk are also covered by audits performed by several of ITAB’s major international customers. INCREASED VALUE THROUGH CIRCULAR THINKING ITAB has a close dialogue with some of its major customers regarding the development of circular solutions, i.e. solutions where ITAB can deliver value to the customer by replacing parts of a product that have been consumed, for example replacing the CoB (Chip-on-Board) diodes on light fixtures for more efficient ones, rather than the whole fixture. Through our service offering we are also developing a CO2e assessment tool which will allow us to identify embodied carbon in customer stores at draft stage and design it out,making each generation of interiors, lighting and retail technology less impactful on the environment than the last.