an ambition with a 90-year history

When compared to the turbulence of the pandemic context in 2020, the end of 2021 and the year 2022 were marked by the recovery of global economic growth, due to the growing immunity of the population, and the easing of measures to restrict movement. On the other hand, 2022 was also impacted by the beginning of the war in Ukraine in February, whose consequences continue to be evidenced in the global macroeconomic dynamics, with no prospect of an end.

Nevertheless, 2022 was a historic year for the Nors Group, which recorded a trajectory of economic growth in all geographies, translating into the best year ever.

For 2023, the Group is expected to maintain its growth trajectory, investing in new acquisitions, with a view to consolidating its core business. In Portugal, a market typically with less volatility, it is estimated that in 2023 the truck and car sector will remain practically unchanged compared to 2022. It is thus expected that 2023 will be a year of consolidation of the results recorded in 2022.

In turn, Brazil - a geography that has been strengthening its position in the world commodities market - is seen by the Group as a market with high potential for growth and expansion of the core business.

Thus, it is expected that 2023 will represent a year of growth through organic growth and acquisitions in the Brazilian market - as evidenced by the acquisition on 1 March 2023 of Agrofito, a Case IH agricultural equipment distributor in the State of Mato Grosso.

In Canada, the forecast for 2023 is for market levels in line with 2022, the year that presented the largest GPE (General Purpose Equipment) market of the last 6 years. Considering the stabilization of the market, associated with the success of the Group's investment, we can affirm that this will be a geography in which Nors will be attentive to opportunities that may lead to an expansion of its business.

Finally, regarding the Angolan market there is the conviction that 2023 will show strong growth in the markets of high-end trucks and construction equipment, both supported by the price of oil, in line with the Angolan government's forecasts and with the continued expansion of mining activity.

It should also be noted that the global threats associated with the war in Ukraine remain and have exacerbated existing problems in the supply chains of some raw materials and industrial products, intensifying an inflationary trend that is affecting the pace of growth of the major global economies.

However, international logistics chains are expected to normalize by the end of 2023 - albeit with impacts on specific productsand that the inflationary environment of slowing down in the course of the year.

It is worth mentioning that the effects of this conflict on the Nors Group's activities were reduced in 2022, whilst keeping on the monitoring and and follow-up by the General Department of Risk and Compliance, which, along with the Group's companies, seeks to anticipate impacts and prepare contingency plans to mitigate risks and undesirable effects.

In summary, the outlook for 2023 appears to be positive, supported by the market forecasts, the existing business in the portfolio and the normalization of delivery times by manufacturers.

In addition to these factors, there is the fact that by the end of 2022, the Group registered a substantial reduction in its level of indebtedness and is in a solid financial position - which becomes especially critical in this context of constantly increasing interest rates - and which will allow the Group to face the challenges that may eventually affect the different businesses.

Therefore, always with the common sense that characterizes us, we look with optimism to the year 2023 - with all the work undertaken in recent years in the strengthening of the Group's financial position, we reinforce our goal of expanding our business.

In conclusion, the Board of Directors of Nors has the firm conviction that the assumption of continuity of operations, used in the preparation of the consolidated financial statements remains appropriate.