Wibax Annual and Sustainability report 2020

ANNUAL AND SUSTAINABILITY REPORT

2020

OUR BUSINESS IS GOOD CHEMISTRY BUSINESS IDEA Our business idea is to sell, purchase, process and distribute chemical products to primary industry throughout Europe.

STRATEGY Our knowledge and resources are primarily focused on liquid chemical products. We import directly from producers, for our own production of products tailored to customer needs, or to tanker terminals in central locations, using logistics solutions of our own to reach the end customer. Our strategy also includes implementing and optimising products alongside the end customer.

CONTENTS CEO Statement .......................................................................................... 5 Sustainability report .......................................................................... 7-26 - Key events throughout the year ............................................................. 9 - Wibax’ sustainability strategy and process.................................10-13 - Analysis of external factors and risk management.................... 14-15 - Financial sustainability ............................................................................16 - Environmental sustainability............................................................ 17-20 - Social sustainability............................................................................ 21-26 Management report....................................................................... 28-29 Group operations ............................................................................. 31-33 Financial overview............................................................................ 34-36 Income statement ................................................................................... 37 Balance sheet.................................................................................... 38-39 Cash flow statement ............................................................................ 40 Auditing principles and notes to the accounts ................. 41-42 Notes....................................................................................................... 43-52 Audit report ........................................................................................ 54-55 Board of directors .................................................................................... 57 Management group ............................................................................... 58

WIBAX • 3

OR T

EST.

X IN

SH

Wibax is a familyowned business

BA

Oulu

Skellefteå

1 301 MSEK

Kokkola Pietarsaari

Örnsköldsvik Vaasa

FINLAND

Härnösand

TANKERS

Kaskinen Hamina Kotka

SWEDEN

NORWAY

Rauma

Gävle

Turku

Skutskär

Kunda

Stockholm

Herre

1 week

Piteå

TURNOVER 2020

WI

Kemi

1986

ESTONIA

Norrköping Uddevalla

A COMPLETE CHAIN

Göteborg

Wibax is Sweden’s only chemicals distributor with its own vehicle fleet.

Helsingborg

DENMARK

Malmö

> 800 000 m3 TERMINALS TERMINALER

Wibax’ total storage capacity in cistern parks

25 % women 75 % men

OFFICES KONTOR

259

SALTDEPÅER

Average number of permanent employees in 2020.

212 193 tons Fossil CO2 reductions achieved by Wibax customers in 2020, through transition from fossil fuel heating to bio oil.

>2,900,000 tons

The total annual volume of chemicals and bio oils handled.

CONTINUOUS IMPROVEMENT ISO 9001 ISO 14001 4 • WIBAX

+

=

27% Reduction percentage of the fuel mix for Wibax trucks.

HÄR FINNS VI

CEO STATEMENT 2020, a year shaped by the pandemic, where we like many others have had to adapt our operations. We have been forced to take drastic measures such as implementing travel and visiting bans, managing meetings through digital platforms and closing shared spaces, and many employees have worked from home for long periods of time. Our preventive measures have worked well, as we have had no spread of the virus in the workplace, and I hope things will continue that way.

Wibax has remained strong throughout the year, especially with regard to our profit, while many others are struggling financially. We can see a negative budget impact on turnover, but not due to the pandemic, rather because of last year’s mild weather, which reduced demand in the bio oil segment.

In 2020, we completed our single largest acquisition thus far, by acquiring Baltic Tank Oy. Following this deal, we welcomed about 30 new employees into the group, and became owners

of a total of nine terminals, primarily in Finland but also one in Estonia. This acquisition further strengthens our position in Finland and continues the strategy that has served us so well throughout Wibax’ history. In the autumn, colleagues both new and old worked together, in a goal-oriented and strategic fashion, to integrate our new colleagues and make them feel welcome, despite unusual working conditions. Even though we have yet to meet in person, implementation and integration efforts have exceeded expectations.

While working to integrate the Finnish part of our company, we also prepared a new group structure, unveiled on January 1, 2021, with the goal of enabling continued, efficient growth. Wibax AB changed its name to Wibax Group AB, which will be the group’s parent company. As part of this, sales and operations are moved to separate companies. Operations in Finland are gathered in a Finnish group, Wibax Holding Oy, a subsidiary of Wibax Group AB.

Jonas Wiklund

WIBAX • 5

6 • WIBAX

SUSTAINABILITY REPORT

WIBAX • 7

PRODUCTS

PRODUCTION

SERVICING/MAINTENANCE

L

CUSTOMER STORAGE/LOGISTICS DEVELOPMENT/KNOWLEDGE

SUSTAINABILITY

Controlling the supply chain from producer to endcustomer – with the customer in focus!

WIBAX’ successful business strategy rests on controlling the supply chain from producer to end customer; from transport and storage to production, sales and customer care. Alongside our customers, we continuously develop new solutions, geared at more efficient processes for our customers, better overall economy and lower environmental impact.

8 • WIBAX

KEY EVENTS THROUGHOUT THE YEAR EXPANDED STORAGE AND NEW GROUP STRUCTURE Wibax Group AB acquired all of Baltic Tank, gaining about 30 new employees in the process, as well as a comprehensive system of terminals along the coast of Finland, and a depot in Estonia. As part of this process, a new group structure was implemented to enable continued, efficient growth. In the year, the following investments in Swedish terminals were also made: – Two new terminals in Skelleftehamn – New terminal in Gävle – Double-skin cistern constructed in Norrköping CONVERSION FOR HEATING Conversion of the Skutskär terminal for bio oil heating was initiated. Once completed, all Swedish cistern parks in need of heating will be heated primarily using bio oil. Malmö has also tranisitioned from oil heating to an air-water heat exchanger.

WIBAX REMODELLING Remodelling of Wibax headquarters completed, with 36 new offices, a new laboratory, operations room, gym and coffee room.

GREENHOUSE GAS INVENTORY Greenhouse gas inventory according to the GHG protocol initiated.

TAP WATER CERTIFICATION OF WIBAX HQ Wibax Piteå HQ is now tap water certified. It is a national sustainability label for organizations choosing tap water ahead of packaged water products.

DIVERSITY AWARD Wibax received a diversity award when Piteå Council declared itself a Human Rights Municipality.

ISCC CERTIFICATION Wibax Biofuels AB and Wibax Sales OY received ISCC EU certification as Traders with Storage.

WiNET - NEW INTRANET A mobile friendly intranet was implemented, increasing the use of and opportunities for visual, internal communication of information.

WIBAX ACADEMY – GOOD CHEMISTRY FOR MORE OF US Trainee programme for immigrants, in collaboration with Piteå Council and the Public Employment

Agency, where twelve candidates were given the opportunity to try working under mentorship at various Wibax departments.

DECLARATION OF INTENT – FRESH DRINKING WATER Wibax signed a declaration of intent to ensure supply of fresh drinking water. Chemicals are a cruical part of the production process for high quality drinking water and wastewater treatment.

INCREASED LOAD WEIGHT Our vehicle fleet was expanded with two new 74 ton trucks, and 8 more were adapted to increase load weight, leading to a total increase in loading capacity of about 40 tons.

WIBAX ACADEMY - DRIVER’S TRAINING Wibax Logistics has developed a tailored training programme for drivers, together with the Public Employment Agency. Participants may receive employment at Wibax upon completing the programme, as Wibax has considerable recruitment needs. Many parts of the training programme have been and will continue to be held at Wibax.

NOMINATED FOR ANNUAL SUSTAINABILITY AWARD Wibax Biofuels was nominated for a sustainability award as part of the Piteå Business Awards. The award went to Böle Garveri & Sandlund/Hossain.

FOSSIL FREE SWEDEN Wibax supports the Fossil Free Sweden declaration, and we demonstrate targets and concrete actions taken to reduce emissions and reach the goal of a fossil free Sweden.

RESPONSIBLE CARE Wibax Group joined Responsible Care, a chemicals industry pledge to work systematically with matters of safety, health and the environment.

SUPPLIER AUDITS INITIATED Five audits have been carried out via Teams due to the current circumstances. A documentation audit has also been carried out for one supplier.

TURNKEY CONVERSION Wibax offers turnkey conversion of asphalt heating plants, including everything from project design to conversion, and supply of oil for heating.

WIBAX • 9

OUR SUSTAINABILITY STRATEGY Wibax’ sustainability strategy is to focus on sustainability throughout all areas of operation. Achieving good economic development in harmony with environmental and social progress, that is what sustainability and sustainable business means for Wibax.

chain. We will work to achieve optimal resource use and make conscious choices in product development, purchasing and operations execution. Wibax’ goal is to give customers the best possible solution with regard to environmental choices, high levels of safety, service and good total economy.

The leading principles of our sustainability efforts are our general guiding principles too; forward-thinking, participation, quality and customer focus, as summarised in the motto Good Chemistry.

Wibax’ sustainability strategy is divided into three aspects of sustainability: economic, social and environmental sustainability.

In order to sustainably reach our operative targets and be a competitive option in the market, we will work cost efficiently, and maintain an up-to-date product portfolio and active customer focus. We will be an attractive employer with a strong focus on safety, and our customers must be able to trust that Wibax’ products and services come from a sustainable supply

Wibax aims for Good Chemistry to guide everything we do, for our sake, and for our surrounding community. This sustainability report aims to describe the sustainability initiatives of the Wibax Group and our work with Good Chemistry in everything from management to practice.

OUR SUSTAINABILITY PROCESS Wibax works with management by objectives, to ensure constant development and continuous improvement work throughout all levels of the organization.

Our management objectives are based on internal and external analyses to ensure that time and resources are spent on activities which generate value for our stakeholders or the organization. For us, sustainability is not a separate activity, but rather something guiding all parts of our operations.

operations, as well as our strategic work with management by objectives. The symbolic cistern is held up by six pillars of focus, each one deemed equally important. Each area of focus has one or more strategic goals, defining what we are to achieve, and these lead up to a number of key activities, showing the direction we are working in and how we may achieve our goals.

To foster a sense of participation and forward-thinking, it is important that the entire group is involved in our work with management by objectives. Employees will then see how they too can make a difference.

Wibax’ model for management objectives is based on our core values, which are meant to guide our daily

VISION Stakeholders in primary industry must see Wibax as a natural choice amongst current suppliers. Skill, quality and attentiveness must define Wibax’ operations

KEY ACTIVITIES

GOOD CHEMISTRY IS OUR BUSINESS

FORWARD THINKING

10 • WIBAX

QUALITY IN EVERY STEP

CUSTOMER FOCUS PARTICIPATION

SAFETY

EMPLOYEES

SUSTAINABILITY

GROWTH

LOGISTICS

BRAND

STRATEGIC GOALS

SUCCESS RESULTS

TAINABILITY SUS L A NT

SUSTAINAB IAL ILIT C Y SO

EN V I R ON ME

Efficient logistics mean fewer empty return shipments, reduced fuel consumption, climate and environmental impact.

Earth’s resources are finite and all life depends on chemical processes. For those of us who work with chemicals, the goal must be to impact climate and the enivronment as little as possible, while optimising resource use.

Smart, high-tech knowhow often lets us meet both these requirements, while also resulting in good overall economy and sustainable development.

Y ILIT AB IN

Through technological know-how and problem solving in close collaboration with our customers, we can achieve greater exchange and more efficient industrial processes, together. This may in turn create growth opportunities and improve overall economy for our customers, while optimising resource use.

Dependability, experience, high levels of competence and service, will give customers the best possible solutions with regard to the environment, safety and overall economy.

ECONOMIC S US TA

Good chemistry is our unifying term for Wibax’ values, skills and market role, placing the highest possible requirements on safety, quality and environmental care. Good chemistry means that we promise our customers and the surrounding community to always work for sustainable development, with optimal use of resources, minimal environmental impact, always choosing the most environmentally friendly options.

That is what Good Chemistry means to us.

AGENDA 2030 The UN has drawn up an agenda for a sustainable society - the 2030 Agenda for Sustainable Development. The Agenda means that all 193 UN member states have undertaken to work towards a socially, environmentally and economically sustainable world by 2030. The Agenda contains 17 goals that aim to eradicate poverty and hunger, implement human rights for all, achieve equality and empowerment for all women

and girls, as well as to ensure lasting protection for the planet and its natural resources.

Our sustainability initiatives can be connected to 10 of the Agenda 2030 goals, according to our evaluation using SDG Compass. The goals identified are those where we find that our organisation has the greatest possible opportunity to contribute to their fulfilment.

WIBAX • 11

MATERIALITY ANALYSIS Our materiality analysis is based on several different parameters: a stakeholder survey, an analysis of external factors and a self assessment. Our continuous stakeholder dialogue, maintained through customer interviews, daily meetings when chemicals are delivered, supplier evaluations, and our stakeholder survey, gives us insight into what our stakeholders expect and demand of us as a supplier.

LOWER GREATER

IMPORTANCE FOR STAKEHOLDERS

Stakeholder surveys are updated and conducted every third year, and in the autumn of 2020, a new survey was sent out. It focuses on Wibax’ sustainability initiatives and lets our customers grade sustainability parameters based on how important they feel that it is for us to focus on these. The survey covered aspects of the Agenda 2030 goals identified as relevant to Wi-

bax’ operations, and a brief presentation of how sustainability aspects connect with with our operations.

Additional external factors (p. 14-15) are considered, such as laws and regulations, global and national sustainability goals and international guidelines on environmental care, human rights, working conditions and business ethics.

Based on the expectations and demands of our stakeholders, and our analyses of external factors, we have performed a self assessment to identify the sustainability aspects we believe that we can influence to the greatest possible extent. These are described in the graphic below. The results guide Wibax going forward.

Sustainable supply chain

Safe chemicals management

Energy efficiency improvements

Safe logistics Good staff well-being Reduced logistics emissions

Efficient resource use Sustainable waste management

Sustainable economic growth

Stricter marine requirements

Inclusive, gender equal business

Minimized emissions to water

Developing the fossil free market

LOWER GREATER

WIBAX’ ABILITY TO INFLUENCE THE ISSUE

CERTIFICATIONS AND REVIEWS Wibax AB and Wibax Logistics AB are certified in accordance with the ISO 9001 quality management system and the ISO 14001 environmental management system. In addition to the fact that these management systems help Wibax organise, streamline and assure the quality of its operations, while maintaining a clear focus on the environment, they are also a way to respond to demands from customers and suppliers.

The Swedish Energy Agency has previously awarded a statement of sustainability to Wibax Biofuels AB and Wibax Logistics AB. Reviews of sustainability statements are conducted continuously at the request of the Energy Agency, or when deemed necessary due to a reported major deviation or material changes.

In the summer of 2020, Wibax Biofuels AB and Wibax 12 • WIBAX

Sales Oy were certified as a Trader with Storage with waste/residual material, according to the International Sustainability and Carbon Certification (ISCC), to enable trading with ISCC-certified bio oils. The certification proves that the companies meet requirements set forth by RED and ISCC EU. ISCC certification is an international, transparent certification, showing clear compliance with requirements on traceability and environmental and social aspects, placed on bio oils.

Wibax Piteå HQ was tap water certified in 2020. Kranmärkt is a Swedish sustainability label. Wibax chose Kranmärkt for its operations, as tap water has a lower environmental impact than packaged water. Tap water is always locally produced, and distribution is highly energy efficient. The fact that Piteå offers highquality, great-tasting tap water, is yet another reason for this labelling.

SUSTAINABILITY GOALS Wibax signed the declaration to make Sweden one of the world’s first fossil free welfare nations, through Fossil Free Sweden. As part of this, we also presented our long term, strategic environmental goal: ”During normal operation, heating of facilities including cisterns, will be renewable by 2025.

WIBAX will strive to become leading in the transition to fossil free, heavy transports, with the goal of 80% of the shipments that we ourselves carry out being fossil free by 2030.”

Wibax 2020 sustainability goal was to reduce fossil CO2 emissions per ton transported, and to make sustainable purchases.

REDUCED FOSSIL CO2 /TON TRANSPORTED

SUSTAINABLE PURCHASING

A TRUSTED SUPPLIER

PAPER & PULP

ENERGY - BIO OIL

ROAD

TRANSPORT

STORAGE

MINING

CHEMICAL INDUSTRY

PUBLIC SECTOR

PHARMACEUTICAL INDUSTRY

FOOD

More efficient processes Better overall economy OTHER INDUSTRIES

REFINERY & PETRO– CHEMICAL INDUSTRY

STEEL & METAL

Minimal environmental impact

WIBAX • 13

ANALYSIS OF EXTERNAL FACTORS AND RISK MANAGEMENT Our analysis of external factors aims to collect data on and analyse events in the world around us and decide how to manage these. Wibax carries out annual SWOT analyses to identify strengths, weaknesses, opportunities and threats which may impact the company. Based on these analyses, we have identified a number of risks that are of considerable importance to our operations. All these risks are covered in our strategic management work, thus ensuring that we continously work to manage the risks identified.

Below you will find the primary risks to our operations that we have identified for 2020.

STRATEGIC RISKS

S

W

O

T

RISK MANAGEMENT

RISKS RELATED TO ENVIRONMENTAL PERMITS At all its locations, Wibax has operations which require permits under the Swedish Environmental Code. Limited permits and slow application processes impact the flexibility of storage and handling.

Violations of applicable environmental law may lead to criminal charges and coercive action.

Compliance with environmental regulations is immensely important in Wibax’ operations. Without environmental permits, current operations cannot continue.

Wibax tries to work proactively and implement long term plans so that permits match the needs of our operations, both in terms of scope and flexibility.

CUSTOMER DEPENDENCY Strong macroeconomic fluctuations and changes in customer requirements may increase the risk for a decline in sales.

Warmer winters can lead to decreased sales of certain bio oils.

By maintaining close and long-term customer relations, technical collaborations, a flexible product portfolio and an extensive logistics system, Wibax is well prepared for any macroeconomic fluctuations.

Additionally Wibax aims to offer customers a high level of product quality and delivery reliability, with the goal of being strongly competitive.

POLITICAL RISKS The implementation of a kilometre tax would have a considerable impact on our operations.

Changes to tax legislation regarding sustainable choices may affect both the financial viability of renewable vehicle fuels, and the demand for bio oils.

Business risks may arise from political decisions or changes to the legislation and regulations that apply in the various countries in which Wibax does business.

Our terminals are found in strategic locations, close to our customers, to minimise the need for road transport.

Wibax actively monitors external factors to manage political risks and collaborates with both national and international industry organisations to deal with these risks.

RISKS RELATED TO THE PURCHASING VALUE CHAIN There is a risk of trading with suppliers who violate the requirements we place upon them through our Code of Conduct, as it is hard to ensure compliance, even with current processes for supplier assessment.

14 • WIBAX

In 2020, our supplier assessment protocols have been developed further, and additional assessments of all trading suppliers have been initiated or carried out. Supplier audits have been carried out through Teams and an auditing programme is in place.

OPERATIVE RISKS

RISK MANAGEMENT

ACCIDENT AND HEALTH RISKS Wibax employees and contractors are sometimes subjected to hazardous situations that may place them at risk of an accident, or place their health at risk.

Wibax is working actively with health and safety issues, and there are clear procedures in place for when and how risk assessments must be conducted.

All employees receive training on the products, materials and equipment relevant to their work, which reduces the risk of accidents.

In 2020, Wibax has focused on providing training on our deviation management system, and improving the ability to follow up, as well as the user friendliness of the system. An information flyer is sent out quarterly, listing deviation trends and serious accidents, among other things.

RISK OF ENVIRONMENTAL IMPACT FROM CHEMICAL EMISSIONS Accidental emission into air and water may negatively impact the local environment, thereby impacting public trust in Wibax and consequently our ability to continue operations.

Well-trained drivers and relevant equipment reduce risk of traffic accidents and potential emission of chemicals. To prevent emission at depots, most of the cistern parks currently have bunding, and plans are in place to install bunding at more terminals. Terminals undergo continuous risk assessment and any identified potential emission points are addressed.

RISK OF SKILLS SUPPLY SHORTAGE Being able to retain existing employees and attract new talent with the right skill sets is an essential part of Wibax’ continued development.

Wibax aims to be the most attractive employer in the industry. Wibax has developed a tailored driver’s training programme where participants may receieve employment upon completion. This is part of our investment in Wibax Academy, to attract employees to the company.

RISK OF SUPPLY CHAIN FAILURE Supply chain failures could affect our ability to supply our customers with products as contracted, which may both impact us financially and damage our brand.

We work with several suppliers of the same product in order to ensure that there are no supply shortages.

RISK OF INSUFFICIENT TECHNOLOGICAL DEVELOPMENT One of Wibax’ strategic goals is to be leading in the transition to fossil free heavy logistics, with a target of 80% of shipments carried out by us being fossil free by 2030. A risk here is that technological development in the field may not be sufficient to provide the solutions and/or fossil free fuels needed to meet this target.

Wibax monitors external factors, with regard to both fuel supply options and technological developments, to find other ways of minimising our fossil impact.

WIBAX • 15

FINANCIAL SUSTAINABILITY To us, financial sustainability means always being flexible with regard to customer demands, and quickly adapting to an ever changing world. When we focus on value-generating customer solutions based on customer needs and requirements, we can actively work to focus our operations on the development of an up-to-date and sustainable product portfolio and logistics systems. This is mirrored in our financial sustainability strategy.

FINANCIAL SUSTAINABILITY STRATEGY Wibax will reach the growth targets that we have established, and be a competitive option on the market.

Our growth targets are reached through continued development of our product portfolio, while the group remains customer focused, with a particular focus on cost effectiveness and value generating solutions for clients.

16 • WIBAX

CUSTOMER SATISFACTION For Wibax, the customer is in focus, and customer satisfaction is a cornerstone of our organisation.

We find it important to be attentive to and flexible with regard to customer needs, and we are in constant dialogue with our customers to identify specific needs and wants, and to be able to provide our customers with what they expect.

Based on this, our strategic target is that 98% of customers surveyed must find that what we have supplied them with either meets or exceeds their expectations.

We evaluate this performance through frequent customer surveys in the form of phone interviews where customers are asked to grade Wibax on various matters, from customer service, safety and product quality, to sustainability perspectives. In 2020, 100 interviews were carried out with customers in both Sweden and Finland, where they were asked to grade Wibax on the above matters. Wibax is still working to achieve a situation where 98% of customers find that we meet or exceed expectations.

ENVIRONMENTAL SUSTAINABILITY - GOOD CHEMISTRY Chemistry is found everywhere, and the life we live today is dependent on chemical processes. As a chemicals supplier, we feel that we have a strong responsibility to reduce our environmental impact and work to achieve efficient resource use, in order to ensure that life as we know it may continue for generations to come.

Through actions such as process optimization, smart logistics solutions and environmentally efficient transport and storage, environmentally friendly products, conversion of combustion facilities from fossil fuel to bio oil, and supplying such oils, we actively contribute to a reduction of our and our customers’ fossil impact.

Terminal storage emissions per throughput ton (kg CO2)

ENVIRONMENTAL SUSTAINABILITY STRATEGY Wibax will conduct active environmental work, where everything we do is guided by the principle of Good Chemistry. We will contribute to reduced carbon emissions through efficiency improvements and conscious technological choices of our own, and also through the sales of carbon neutral products. Environmental sustainability is achieved by striving for optimal resource use and making conscious decisions.

Reduction percentage of Wibax trucks’ fuel mix.

27%

0,600 0,400 0,200 0,000

2018

2019

2020

In relation to the reduction obligation which was 20% for the year 2020.

ECODRIVINGSCORE Emissions /ton transported (kg CO2) 10 8

79

6 4 2 0

2016 2017 2018 2019 2020

Statistics for Wibax’ operations in Sweden, in 2020.

WIBAX • 17

LOGISTICS FOCUSED ON THE ENVIRONMENT Since the summer of 2020, Wibax has 19 marine shipping terminals and depots in strategic locations along the coasts of Sweden and Finland, as well as one terminal in Estonia. With a combination of close proximity to customers, good planning, combination of different types of transport and storage and return flows, we create efficient logistics flows with minimal environmental impact.

The goal of Wibax’ logistics is that the shipments will be economically sustainable and carried out with the least possible environmental impact. Efficient resource use is our way to achieve the goal of reducing our fossil imprint and energy use. When it comes to logistics and transport, we continuously analyse and evaluate our resources; staff, fuel, vehicles and technical equipment, to maximise positive environmental impact. In 2020, we expanded our vehicle fleet, adding two new 74 ton vehicles. We have also remodelled eight vehicles to carry 64-74 tons. An increased load weight means fewer journeys and increased socio-economic benefit.

Wibax’ transports will be carried out with maximum quality and minimal environmental impact TRAINING HOURS PER DRIVER

+

=

26

DRIVERS ON PERMANENT CONTRACTS

}85 TANKERS

50 18 • WIBAX

Throughout the year, we have continued to monitor external factors with regard to new technology for electric vehicles and alternative fuels. The goal of this work is to have at least two heavy, electric vehicles in operation by 2022.

We are actively working to implement rail transport in our logistics offer, and we already offer a large number of container shipments by rail. In 2020, we have also continued to offer our customers transports using renewable fuel.

FUEL EFFICIENT LOGISTICS We actively work to reduce our fuel consumption by: • TRAINING our drivers to drive in a resource efficient manner, through a support system evaluating their driving style and providing concrete tips for improvement. Throughout the year, we have also held internal Ecodriving competitions, to further motivate our drivers. As a way to improve coaching, we have a coach who works with introducing new drivers and training current ones on subjects such as ecodriving, vehicle maintenance and tyre policy.

• OPTIMIZING the occupancy of our vehicle fleet by continuous analysis of flows, and planning of return shipments, as well as by maximising the load weight.

• SUPPORT SYSTEMS and procedures aimed at achieiving even more precise measurements and using them to evaluate and plan our logistics in even better ways.

• MAKING OPTIMAL USE OF our tyres, partly to make them last longer, but also to let them roll more smoothly. Our tyre policy specifies guidlines for tyre changes, re-rubbering, regrooving and air pressure control.

Regrooved tyres provide, on average, 25% more miles and a 25% reduction in rolling resistance, which translates to lower fuel consumption and consequently lower emissions.

FOSSIL FREE HEATING OF CISTERN STORAGE Wibax stores a range of products, some of which for various reasons require heated storage. In 2019, heating and circulation of cisterns accounted for more than two thirds of the total energy use of Wibax Group (excluding fuel consumption).

The cisterns that are used for products in need of heating are insulated to minimise loss of heat. In order to further reduce our climate impact, we have made adjustments to our choice of energy. In the past, heating was done using fossil fuel or electricity, in the facilities where it was required. In 2020, we began the final project to convert a facility to bio oil heating, after which all oil heaters for our Swedish cisterns will be using bio oil. Wibax has an ongoing contract for 100% renewable energy, to run electric heaters in Sweden.

In addition to storing our own chemicals, Wibax Group also offers rental storage capacity, meaning that customers can benefit from fossil free heating of their cistern storage in several locations throughout the country.

BIO OIL FOR REDUCED CLIMATE IMPACT

CONVERSION AND HEATING

Fossil free heating of facilities and cisterns

→

=

↓

Wibax Biofuels is a subsidiary responsible for the sales of bio oil for technical applications and heating, offering customers CO2 neutral emissions.

Wibax bio oils are renewable fuels, causing emissions of biogenic carbon. Biogenic carbon emitted by sustainably produced biofuels, such as Wibax bio oils, can be seen as carbon neutral in the long term, as all the carbon that is emitted at combustion is constantly bound to new biomass, in a closed loop. When sustainably produced biomass is used for energy, the combustion replaces part of the natural decay of the biomass. This differentiates it from fossil fuels, which contain carbon from fossil stores. Biogenic carbon is part of a biological cycle. Therefore, carbon dioxide emitted by the combustion of sustainably produced biomass does not contribute to climate change in the long term. More information on biogenic carbon emissions and climate impact can be found at the Swedish Environmental Protection Agency.

Part of our sales efforts include motivating customers who are currently heating their facilities with fossil fuel, to convert them to use bio oil. Wibax Industrial can then assist them in planning for and carrying out the conversion. In this manner, customers can have a single partner for conversion, bio oil purchasing, storage and transport. The fact that we own the entire supply chain also makes us unique in the business.

These conversions, using newer, more modern equipment and fuel efficient heaters give customers lower operating costs, production capacity increases and the process is more environmentally friendly as a result.

In 2020, conversions carried out by Wibax have primarily concerned asphalt heating plants, a sector needing to convert its combustion processes to use bio oil in order to contribute to Sweden achieving its climate targets. We have converted both fixed and portable asphalt heating plants.

WIBAX • 19

FOSSIL FREE ENERGY SUPPLY With Good Chemistry in mind, we work to use as much renewable energy as possible throughout our operations.

This is an area where we need to continously develop and improve, as we expand our operations. Wibax has an ongoing contract for 100% renewable electricity, for our Swedish group. This leads to a high share of renewable energy for Wibax Group Sweden. In 2020, 89% of the energy used in Sweden was green/renewable.

Following the acquisition of terminals in Finland, the energy source distribution will change, as the terminals do not have access too 100% renewable electricity and some still use fossil fuel for heating.

CARBON FOOTPRINT In 2020, a comprehensive greenhouse gas inventory of Wibax Group Sweden was carried out in accordance with the Greenhouse Gas Protocol. The purpose of the inventory is to use an established procedure to evaluate the carbon footprint of operations.

The emissions inventory is delimited based on the organization’s ability to influence activities and covers emissions for the Swedish companies, between January 1 and December 31. The emissions sources included are grouped as: Wibax customer logistics, divided into internal and external logistics providers (based on fuel consumption and other information provided by external providers), the Piteå headquarters (facility emissions, electricity, heating), terminals (electricity, district heating and fossil fuel heating), company travel (vehicles carrying out services, as well as personal travel).

The inventory shows that, in line with previous estimates, most of the operation’s emissions come from Wibax’ shipping of products between terminals and customers. As in many other organizations, company travel declined sharply in 2020. Thanks to our renewable electricity contract and conversion to bio oil heating of Swedish terminals, emissions from these operations are relatively low. The recently acquired Finnish terminals are not included in the 2020 inventory, but are expected to negatively impact our carbon footprint at a group level.

Energy distribution kWh Wibax Group Sweden 100% 80% 60% 40% 20% 0% 2016 2017 2018 2019 2020 Renewable electricity District heating Bio oil Swedish electricity mix (non-renewable) Fossil fuel

Emissions distribution Wibax Sweden 2020

Internal logistics providers External logistics providers Terminals Company cars and travel Offices/Production

EMISSIONS TO GROUND, AIR AND WATER In 2020, about 30 deviations and incidents regarding chemical spills, overflushing or leakage with the risk of environmental damage through chemical impact, were reported. Two traffic incidents causing risk of environmental impact also occured in the year.

The extent of the emissions varied, but most were minor, local emissions inside mechanical barriers such as loading sites or bunding. In the events where emissions have occurred outside such barriers, cleanup has been performed immediately upon detection. The emissions from these deviations, incidents and accidents have been deemed to have had no continued impact after cleanup.

20 • WIBAX

No emissions to air or water have been reported in the year.

Root cause investigations are carried out, action plans are developed and action results are followed up whenever there is a deviation, to avoid and minimise the risk of reoccurrence, to the greatest possible extent.

Throughout the year, Wibax has focused on increasing awareness and the number of risk observations. Several issues have been handled in the year, where preventive measures have been implemented to reduce the risk of environmental impact before emissions or spillage occurs.

SOCIAL SUSTAINABILITY Wibax’ work with social sustainability focuses on always working towards a fair, equal society based on the fundamental principle of equal worth of all people, in matters both small and large.

We also look the communities closest to us, to see how we can contribute. Our employees play a central part in our sustainability work, as healthy and satisfied, well-motivated staff with a strong sense of participation are key to the company’s success.

Our aim is for Wibax to be an attractive employer where employees feel involved, important, motivated and safe, and also a partner characterised by a high level of quality in all aspects.

Wibax’ policy is that no one may receive or offer customers, potential customers, authorities or other business partners any form of compensation or reward that is in violation of laws and good business practice.

WIBAX SOCIAL SUSTAINABILITY STRATEGY Wibax will be an attractive employer in our field. Through actively working with sustainability, we contribute to a better community, and we become more attractive as suppliers and employers. By controlling our supply chain, we ensure quality and security in distribution, without compromising human rights.

SUSTAINABLE PURCHASING Wibax works actively to ensure that all our purchases are ethically sound, and that the suppliers we use follow laws, conventions and food business practice.

In order to become a potential Wibax supplier, the supplier must comply with our Code of Conduct. Wibax’ CoC is based on the fundamental principles of the United Nations Global Compact, on issues such as human rights, labour law, the environment, business ethics and anti-corruption efforts. We expect all suppliers contracted by Wibax to follow this Code of Conduct and support these 10 principles. Furthermore, these requirements shall also apply to subcontractors who fall under the scope of our suppliers’ influence.

Our Code of Conduct is available to all our employees

and also part of the introduction for new administrative employees.

As distributors, efficient purchasing, with good, longterm supplier relationships are crucially important.

We have a large, global purchasing network of about a hundred suppliers, in more than 10 different countries, with a majority of suppliers within the EU.

SUPPLIER ASSESSMENTS AND AUDITS Before a contract is signed with a new supplier, they are evaluated, based on a self-assessment among other things. The assessment is carried out at least every two years. Major suppliers are subject to regular site visits, an activity severely impacted by covid-19 in 2020.

Throughout the year, the supplier asssessment method has been further improved, and assessments of all trading suppliers have been initiated or completed.

Five supplier audits have been carried out via Teams, due to the current situation, and an audit programme has been put in place for the remaining suppliers.

The purpose of the audits is to ensure that suppliers comply with the requirements laid out in Wibax’ Code of Conduct. Areas focused on in the audit are summarised in the following points: 1. Wibax’ operations must be characterised by knowledge, quality, safety and environmental care. Wibax’ CoC is part of our sustainability efforts. We ourselves are the target group, as well as our suppliers and customers.

2. Wibax and our business partners value the safe and healthy work environment of our employees and others who visit us and our suppliers.

3. We expect all our partners and suppliers to follow our Code of Conduct and to support the 10 basic principles of the UN Global Compact. These requirements must also, in as much as we can influence our suppliers, apply to subcontractors as well.

FAIR TRANSPORT Unfortunately, the transport industry is heavily affected by unfair competition, with dumped prices on an over-established market. That is why we are making a stand for a safe, clean and responsible transport industry, by participating in Fair Transport. It means that we drive safe, use climate smart solutions and offer good working conditions. Our vehicles use new tyres and breathalysers, we follow the mandated periods of driving and rest, and we continuously train our drivers on issues of safety and environmental care.

Read the Wibax Logistics sustainability report on the Fair Transport web portal.

WIBAX • 21

WIBAX AND THE COMMUNITY WIBAX’ TRAINEE PROGRAMME GEARED TOWARDS IMMIGRANTS We work to create an inclusive workplace, and diversity is necessary for development. One step to achieve this is Wibax Academy – good chemistry for more of us, a trainee programme initially geared towards immigrants. The project was carried out in collaboration with Piteå Council and the Public Employment Agency and gave twelve candidates the opportunity to work at Wibax under mentorship, in various departments such as production, building maintenance, workshops, the lab, purchasing, marketing and finance.

Wibax would like to contribute to the community. This project is an initiative to encourage workers to stay in our city, while also taking social responsibility. As Wibax continues to grow, there is a need for skilled staff across several fields, and the company sees great benefits in reaching out to this particular group.

The trainee initiative gave twelve people with an immigrant background an opportunity to enter the labour market and further improve their language skills. All six who completed the programme found a job, 66% of them at Wibax and the others with other employers. Additionally, one of the participants received a permanent contract as a lab assistant for Wibax. All trainee programme participants have remained in Piteå and they all found better access to the labour market.

In the autumn of 2020, Wibax received a diversity diploma from Piteå Council for our active work with diversity.

WIBAX DRIVER’S TRAINING Together with the Public Employment Agency, Wibax Logistics has developed a tailored training programme for tanker drivers - Wibax Academy Driver’s Training.

An initial recruitment day for the programme was held in September. A total of 70 job seekers attended the event. They were divided into two groups. During the meeting, they received information about the job, briefly talked to a coach, were given a look at the tankers and an opportunity to ask questions. Yrkesakademin in Luleå will be responsible for training, and Wibax offers 10 people the opportunity to participate. Workplace training will be carried out at Wibax, where training will also be provided on subjects specifically related to tanker trucks. We are now looking forward to the results of the project, which will conclude in the spring of 2021.

Those who successfully complete the programme will be offered a six month trial contract in Piteå or Skellefteå.

22 • WIBAX

SPONSORSHIP Wibax wishes to be a positive force in the community, and we hope to contribute to that by providing sponsorship, among other things. We see sponsorship as a partnership to benefit both parties. The common thread of our sponsorships is that they must be characterised by Good Chemistry, we strive for gender equality and collaboration to benefit children and youth, irrespective of their financial or cultural background.

Wibax continues to sponsor the floorball team that carries our name. In 2020, we have also sponsored Piteå Elit, PIF Dam, Young Achievement Norrbotten, the Childhood Cancer Fund and Lions, among others. Additionally, a number of other teams for children and youth have been sponsored

by Wibax.

STUDENTS In 2020, Wibax offered trainee positions for drivers in various locations, as well as in production and in our Piteå HR Department.

Wibax participated in the LARV job expo at Luleå University of Technology, a platform for contact between students and businesses. Wibax also participated in the digital recruitment expo ”PS See You Soon”, with the goal of showing who we are and attracting potential employees.

In 2020, we arranged study visits for the Logistics Programme in upper secondary education in Piteå, and for second grade primary school students. We also held study visits for teachers and principals in upper secondary education. Additionally, we held a digital study visit for vocational college students on the Process Operator Programme.

WIBAX • 23

EMPLOYEES ATTRACTIVE EMPLOYER WIBAX’ values are based on doing what we need to develop a shared, robust and sustainable culture that supports our operations and motivates our employees.

by committed employees who act responsibly to live up to the expectations and needs of our surrounding community, which is key in maintaining sustainable and value-generating business.

Wibax wants to be a workplace where everyone feels a sense of togetherness, appreciation and pride, and where every employee is part of a team that works towards a common goal. Every employee must have an equal set of conditions, rights and opportunities for development, and Wibax must make the best possible use of all our employees’ skills, thereby increasing effi ciency and productivity. A sustainable business is built

Wibax must be an attractive employer and work actively with key activities focused on our employees to attract, retain, and develop our committed employees. Wibax’ compliance with collective agreements applicable to the industry, and the fact that our business is conducted in accordance with applicable legislation, provides security for our employees.

EMPLOYEE SURVEY

11%

27%

UNFOCUSED Employees who love doing things but are unsure of what to do.

ENGAGED Employees who love their job and do it well.

R CH

PLANN

IN G

FE

HE

BR

AL TH

HEALTH PROGRAMME

O

M

IL APR

GR OU P EX ERCISE

IB W C ER G MM AU

E X WIBA LLENG CHA SUMMER

JUNE

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AY

SU

SC HO OL

M u co shro ur om se

E E NG A LL

SU MM WIBAX ER C

HA L L E NGE

N NI

STEPS CH

R MBE SEPTE

N RU

CH MAR

ERCISE P EX OU GR

WIBAX GYM

CLARITY

ure Lect ntary e Sed rk wo

JULY

24 • WIBAX

PASSENGERS Employees who know what to do, but do not care enough to do it.

NG

OCTO BER

GO AS BIN ISTM

YM G

A HA X LL EN GE

8%

DISINTERESTED Employees who don’t know what to do, and also don’t care.

JANU ARY

Lun reco chvery

US T

10%

BI

W IB AX

M

R BE

HAPPY Employees who know what to do and are doing it.

RY UA

NO VE

R EMBE DEC

44%

ENERGY

In order to continue developing and improving as an organization and as employers, input from our employees is highly important to us. Every two years, we conduct an employee survey to receive input on employees’ perceptions of team efficiency, leadership, engagement, as well as on the organizational, psychosocial and work environment.

Here, you can see a visualization of employee engagement, showing that Wibax has a large number of happy and engaged employees.

In order to promote health and workplace enjoyment, Wibax has an active health programme, through which we offer both subsidies for activities promoting healthy living, and organise activities for our employees, focused on healthy living and lifestyle choices.

The 2020 health year consisted of themed activities where employees could try various forms of exercise and activities such as: health bingo, group workouts, lectures, a running school, a summer exercise challenge, a steps challenge, a mushroom course and Christmas bingo. We also opened our newly built gym in the autumn of 2020.

25%

EMPLOYEES • Average number of employees: 221 (vs. 190 in 2019) • 25% women • Average age: 44 years

of our employees are women

MANAGERS The graph below shows how the share of women in Wibax management positions has developed.

PERCENTAGE OF WOMEN IN MANAGEMENT 30 25 20 15 10 5 0 %

2016

2017

2018

2019

2020

DRIVERS The graph below shows the distrubution of men and women among drivers employed by Wibax, in locations where we have terminals.

2020 100 80 Women

60

Men

40 20 0 %

PITEÅ

SKELLEFTEÅ

Ö-VIK

HÄRNÖSAND SKUTSKÄR NORRKÖPING UDDEVALLA

Women Men

Parental leave The total parental leave taken has declined for both men and women over the past two years, and is at 2.5% for 2020.

The total distribution of hours of parental leave in 2020 shows that women have taken 57% and men 43%.

43 %

57 %

WIBAX • 25

EQUAL TREATMENT

RISK OBSERVATIONS

Wibax shall have no incidents of discrimination, harassment or reprisals that are in any way associated with discrimination based on gender, gender nonconforming identity or expression, ethnicity, religion, disability, sexual orientation or age.

Systematic work environment initatives must contain operational risk observations, in order to prevent accidents in the long term.

The work must be conducted at all levels and we shall foster attitudes characterised by equal treatment and diversity, as well as respect and dignity for the individual and their integrity. A review of discrimination risks has been carried out and is updated on a regular basis. An action plan is included as part of our workplace safety plan.

WORK ENVIRONMENT AND SAFETY CULTURE In 2020 we have continued to develop our deviation management, partly by training staff on investigation procedures, partly by developing the management system and partly by allocating more resources to manage and follow up on deviations. Additionally, we have begun providing regular information on deviation trends and risks and deviations observed, in order to make the information more accessible to employees.

In 2020, our goal was to have 100 risk observations reported, and the result was a total of 104 risk observations reported in Sweden.

RISK OBSERVATIONS:

100

104

PSYCHOSOCIAL WORK ENVIRONMENT INDEX (PWI) Our employee surveys also assess whether our organisational and social work environment works well. Results from the 2019 survey show a good psychosocial work environment, with improvements since the previous survey.

OUR GOAL

RESULT

LTI TREND PAST 6 YEARS 14 12 10 8 6 4 2 0 2015 2016 2017 2018 2019 2020 %

26 • WIBAX

LTIF (LOST TIME INJURY FREQUENCY) In 2020, Wibax saw a total of 22 accidents reported, two of which resulted in absence.

ANNUAL REPORT

WIBAX • 27

WIBAX AB 556262-9674

The Board of Directors and Chief Executive Officer hereby present the annual report and the consolidated annual report for the financial year 2020-01-01--2020-12-31.

MANAGEMENT REPORT FOR WIBAX GROUP

WIBAX

HOLDING OY

WIBAX

CHEMICALS

WIBAX

BIOFUELS

WIBAX

LOGISTICS

WIBAX

INDUSTRIAL

WIBAX

WIBAX

PERFORMANCE PRODUCTION CHEMICALS

WIBAX

WIBAX AS

WIBAX

LOGISTICS OY

WIBAX

SALES OY

WIBAX TANK OY

WIBAX TANK AS

NATURE AND PURPOSE OF THE BUSINESS The Wibax Group’s core business is the sale, import, production and distribution of bio oils and chemicals with a particular focus on liquid products in bulk. The Group will continue to strengthen its market position within the scope of existing operations.

OWNERSHIP STRUCTURE The shares in Wibax Groups parent company Wibax Group AB are owned by Bo Wiklund, Jonas Wiklund, Andreas Wiklund and David Wiklund.

WIBAX GROUP AB The parent company Wibax AB was registered in 1986, and had its name changed to Wibax Group AB in 2021.

The head office is located in company-owned property in Piteå. The premises contain offices, production facilities, warehouses, workshops and cleaning facilities. The parent company is responsible for purchasing, production, storage, sales, administration, quality and environmental issues, as well as safety and security.

WIBAX LOGISTICS AB Wibax Logistics is a wholly owned subsidiary of Wibax AB, whose primary task is to fulfil the Group’s needs for road transport but also to carry out certain external logistics assignments. The company vehicles are of a very high standard and quality, and its staff are experienced and competent. The company offers some of 28 • WIBAX

the most comprehensive tanker transport solutions in Sweden with the capacity to transport the most frequently used chemicals to the processing industry. Wibax Logistics AB is also responsible for the operation and maintenance of the Group’s terminals in Sweden.

WIBAX BIOFUELS AB Wibax Biofuels AB is a wholly owned subsidiary of Wibax AB, offering bio oils, primarily for combustion purposes, as well as technical competencies for implementation and optimisation. For customers interested in transitioning away from fossil fuel dependency, we offer total solutions to provide a complete bio oil facility.

WIBAX INDUSTRIAL AB Wibax Industrial is a wholly owned subsidiary of Wibax Group AB and supports Wibax’s other operations. Its main function is to add value to the goup’s sales through total solutions for service and maintenance, as well as repairs and cleaning. The company carries out service and maintenance contracts in a number of areas, in industrial environments. The company also provides a total solution for converting boilers from fossil fuels to biofuels and assists in construction, installation, commissioning, optimisation and evaluation. Additionally, the company acts as a mechanical and technical partner for Wibax production and terminals.

WIBAX PERFORMANCE CHEMICALS AB Wibax Performance Chemicals AB is a wholly owned subsidiary of Wibax Group AB. The company offers a wide range of specialist and functional chemicals and is responsible for providing training and market support to the entire group. They form the group’s leading edge and support infrastructure with regard to new commercial products and technology. The development of new applications is a prioritised area, offering strong expansion opportunities for the group. The company also supports customers in implementation of products and equipment, for optimisation in their processes.

WIBAX HOLDING OY Wibax Holding Oy is a wholly owned, Finnish holding company within the Wibax group. The Finnish subgroup Wibax Holding Oy includes companies Wibax Sales Oy, Wibax Tank Oy and Wibax Tank AS.

WIBAX TANK OY Wibax Tank Oy is a Finnish wholly owned subsidiary of Wibax Holding Oy. The company is responsible for operations and maintenance of the group’s terminals in Finland and Estonia. The unique total solutions, offered by Wibax in Sweden since 1986, encompassing storage, monitoring, transportation and product sales, is sought after by Finnish customers too. Through the acquisition of Baltic Tank Oy, Wibax can offer a

sustainable total solution concept to the Finnish market, thereby creating more rapid growth and fostering deeper, long-term collaboration.

WIBAX TANK AS Wibax Tank AS is a wholly owned Estonian subsidiary of Wibax Holding Oy, offering storage and handling of chemicals and other liquid products in Estonia. Its primary customers are the forestry industry and other processing industries.

WIBAX SALES OY Wibax Sales Oy is a Finnish wholly owned subsidiary of Wibax Holding Oy, and is a sales company primarily offering products to major stakeholders in the forestry, steel, mining, paper and pulp industries. The company also provides products for heating, water treatment and dust binding.

WIBAX AS Wibax AS is a wholly owned Norwegian subsidiary in the Wibax group, focusing on products for industrial water and processing treatments, primarily in the fields of corrosion, deposits and microbiology control.

WIBAX APS WIBAX ApS is a wholly owned subsidiary of Wibax AB, closed down in 2020.

WIBAX • 29

30 • WIBAX

GROUP OPERATIONS Naturally, the pandemic has impacted group operations throughout the year, with measures required to safeguard operations and the health of all our employees. Financially, the impact has been minor, and we have successfully prevented the virus from spreading in the workplace.

Turnover has failed to meet budget targets, primarily due to a weak bio oil market, following a mild winter in 2019-20. Results wise, we are looking back at a strong year, in the chemicals segment first and foremost.

Major investments have occurred throughout the year, one being Wibax’ single largest thus far, acquiring Baltic Tank Oy. This gives us entirely new growth opportunities in Finland and strongly increases our storage capacity. It has already generated growth, and we are hoping for an even greater presence in Finland in the future.

The group continued to develop in 2020. We changed the name of the group parent company from Wibax AB to Wibax Group AB and transitioned chemicals sales and production to separate companies as part of this. Our Finnish companies Wibax Sales Oy and Wibax Tank Oy were made part of a Finnish group structure, Wibax Holding Oy, wholly owned and controlled

by Wibax Group AB.

INVESTMENTS Wibax acquired Baltic Tanky Oy on September 1, 2020.

Baltic Tank is a Finnish company with eight terminals in Finland and one in Estonia. In addition to this acquisition, Wibax has invested in two new terminals in 2020, in Gävle and Skelleftehamn. A total of 19 terminals are owned by the group, in Sweden, Finland and Estonia.

In the first half of 2020, remodelling of our Piteå HQ was finished. We now have a larger lab, 36 new offices, a new control room and generous staff spaces, among other things.

PRODUCTION As for most people, 2020 has been a different year, requiring us to take extra care of ourselves and our colleagues. Production and maintenance staff sometimes work close together, and it is clear that they have been careful to follow established procedures for covid-19, as we have successfully prevented the spread of it in the workplace. Thanks to the Wibax Academy trainee programme, we began the year with additional staff, and the two candidates remained with us over summer.

Production has proceeded smoothly and we have continued to develop by producing more products.

We have also carried out a number of major improvement projects to ensure continued high levels of quality and delivery security. Throughout the year, our

loading and unloading sites were improved with new surfaces and drains to meet upcoming requirements.

Having lived with construction work and the impact that follows, we have now once again been able to focus on routine tasks for better organisation. We have followed the 5S method to keep developing an even cleaner, more orderly facility, where efficiency, quality and delivery security are guiding principles.

MARKETING AND SALES In 2020, the pandemic has impacted our organisation, just like many others. When the first reports on covid-19 surfaced, we acted quickly to ensure access to our products, among other things. As a consequence, we could quickly provide customers with a plan for managing the situation.

Even though we have been unable to meet, sales targets have been exceeded. This is largely due to continued strong demand from our customers in the paper and pulp industry. Our investment in geographical growth has also developed well throughout the year, and we see additional growth potential too.

It is clear that customers appreciate our close proximity to them, through strategically located terminals, and the supply security that these provide. A large part of our dialogue with customers in 2020 has concerned sustainability, and we are happy to be seen as a sustainable company, well in line with our motto Good Chemistry. Wibax performed well in 2020, and we seem to be keeping up the pace in 2021 as well.

EXPECTED FUTURE DEVELOPMENT In order to prepare the group for the future, an organizational restructuring was prepared, to come into force on January 1, 2021. The parent company Wibax AB changes its name to Wibax Group AB and will hold the group’s support functions. Wibax Chemicals AB is a new company responsible for all chemicals sales.

Production, previously part of the parent company, is transitioned to a new subsidiary. For continued growth in Finland, a Finnish group has been formed, Wibax Holding OY, subsidiary to the parent Wibax Group AB. The Finnish group includes both Wibax Sales OY and Wibax Tank OY. Wibax Logistics OY, responsible for the Jakobstad terminal, will be fusioned with Wibax Tank OY, placing all Finnish terminals in one company.

We have paid special attention to the effects that the covid-19 pandemic has had and may have on the future development of the group. In this assessment, we have concluded that current impact on the group is limited. Any future impact on the group is difficult to determine, historically Wibax has handled crises and economic downturn well, however, every situation is unique and group management continues to monitor developments within and outside the group carefully, WIBAX • 31

with a readiness to act if any negative effects are observed.

QUALITY, SAFETY AND ENVIRONMENT Permit matters and communication with authorities has been a considerable and important part of daily operations for Wibax facilities in 2020, just as in previous years. A permit coordinator has joined the department, to work with environmental permit applications, as well as a sustainability coordinator. In 2020, the QSE department has worked actively to implement the new management system and to develop our deviation management. We have carried out the annual external and internal audits for ISO 9001 and ISO 14001 and our Security Manager has held ADR and YKB refresher courses. In 2020, we have worked with the purchasing department to develop procedures for supplier assessment, and initiated supplier audits. The audits have been carried out remotely, with the goal of ensuring that Wibax’ suppliers meet the demands established in our Code of Conduct.

OPERATING PERMITS Wibax’ production and storage of chemicals requires permits. The Piteå production unit is a Grade A facility, permitted to produce and store chemicals. Our depots in Skellefteå, Örnsköldsvik, Härnösand, Skutskär, Norrköping, Uddevalla and Malmö are Grade B facilities, where we are permitted to store and handle chemicals. At our depot in Haraholmen, Piteå, we run two different operations requring Grade C Permits. In Finland, Wibax has storage operations in Kemi, Oulu, Karleby, Jakobstad, Kaskö, Rauma, Turku, Kotka and Fredrikshamn with permits from the RSAA and TUKES excluding Turku, where only unclassified chemicals are handled). In Kaskö, Rauma and Turku, we also have permits from the Food Safety Authority for feed materials. In Kunda, Estonia, we have operating permits under Estonian law.

Seven of the facilities are Seveso operations, currently operating under the lower level of requirements in Piteå, Uddevalla and Oulu. In Skelleftehamn, Kaskö, Rauma and Fredrikshamn we have permits for the higher level of Seveso requirements. Our permits are crucial to our ability to conduct operations.

WIBAX LOGISTICS AB 2020 has been characterised by continued, strong growth and development of our logistics business.

Continued investment in developing our terminals and vehicle fleet in order to create a foundation for the continued growth of the group, and to reach future goals, is a significant part of this.

Vehicle investments have continued according to plan and in line with our ambition to have a modern and efficient vehicle fleet offering a high level of safety and low environmental impact. A prominent part of this ambition has been the investment in new tankers to adapt our vehicle fleet to new rules for higher total 32 • WIBAX

weight, a transition that continues throughout 2021. In the autumn, we also began basic training of 14 new driver candidates who will be passing their final exams before the 2021 summer holidays. The training programme is part of our project Wibax Academy and is primarily aimed at covering our need for drivers in Piteå and Skellefteå.

Our position as one of Sweden’s most comprehensive bulk suppliers has been strengthened through continued investment in our terminals for storage of liquid products. The terminals are an important strategic investment, and fundamental in reaching the group’s growth targets. The most notable development this year is an increase in storage capacity, following the acquisition of new terminals, one in Gävle and two in Skelleftehamn. Other terminal projects carried out in the year include bunding of the Jakobstad terminal.

Our strength lies in offering a combination of transport and storage of liquid products, with entirely our own resources. We have developed this business model over many years and it contributes to our strong market position. This makes Wibax Logistics a unique company in the business, with remarkable safety, breadth, competency, flexibility and strong supply security. These strengths, combined with the group’s flows and return flows from external customers, result in sustainable logistics.

WIBAX BIOFUELS AB In 2020, Wibax Biofuels has had a challenging year, with a warm winter, removing the need for much of the biofuel normally used to cover peak load hours in cogeneration plants. The pandemic, combined with falling oil prices, has created an unstable market, negatively impacting the pricing of our products, while conversions of combustion facilities from fossil fuels to biofuels have declined. Reduced Klimatklivet subsidies have also impacted the willingness to transition to green products. Late in the year, prices recovered and demand for our product increased, hinting at a brighter and more hopeful future.

WIBAX INDUSTRIAL AB Wibax Industrial offers total solutions where we convert boilers from fossil fuel to biofuel. We can see that there is strong demand, and a desire in the industry to reduce climate impact.

We focus on conversion assignments, and we see a continued need for industries and district heating providers to replace fossil fuel with biofuel. In 2020, we have converted a number of asphalt heating plants, taking responsibility also for project design, construction, installation, startup and calibration, a turnkey solution where safety, emissions and functionality are in focus. We have also constructed a number of depot facilities to manage hazardous materials. Additionally, we have offered consulting to help major industries reach their targets for fossil free energy.

WIBAX PERFORMANCE CHEMICALS Wibax Performance Chemicals is responsible for sales of specialty chemicals as well as product development and market support for the entire group. The company distributes specialty chemicals in Sweden, Norway and Denmark, offering a wide range of specialty and performance chemicals. In 2020, sales have increased primarily in the field of coolant and process water treatment, where it is important to prevent the build-up of deposits or bacteria. The company’s main focus has been products for industrial water and process treatments, other important areas are dust binding and cleaning products.

WIBAX HOLDING OY Several of Wibax’ customers and partners have long been operating in both Finland and Sweden. The industrial structure of the two countries is largely similar, with large companies in the forestry, steel, mining, paper and pulp industries.

The unique total solutions, offered by Wibax in Sweden since 1986, encompassing storage, monitoring, transportation and product sales, is sought after by Finnish customers too.

Through the acquisition of Baltic Tank OY, Wibax can offer a sustainable total solution concept to the Finnish market, thereby creating more rapid growth and fostering deeper, long-term collaboration.

The implementation of Baltic Tank in the Wibax group has been carried out successfully, creating a positive atmosphere, with a number of synergy effects and collaboration projects already identified.

Work is currently ongoing to develop a strategic growth plan for 2025, for the Finnish group, and we can already see the market responding well, welcoming Wibax’ investment in Finland with a number of new, major contracts for bulk products. These contracts would not have been accessible to Wibax without Baltic Tank’s storage options and experienced staff. With storage along the entire coastal region, from Uddevalla in Sweden to Kunda in Estonia, Wibax has further strengthened its presence and competitiveness, and

is now a chemicals supplier offering sustainable, longterm solutions for the entire Nordic market.

We and our new colleagues at Baltic Tank have every opportunity to create Good Chemistry and growth for a sustainable future, together.

WIBAX TANK OY The company became part of the Wibax group through an acquisition in September of 2020. Wibax Tank Oy offers services similar to those of our Swedish terminals, mainly storage and handling of chemicals and biological oils in Finland. Major customers are found primarily in the forestry industry and other processing industries. Despite the pandemic, operations have remained stable and continued at relatively normal levels throughout the year. Considerable investments have been made in Karleby, to expand storage capacity. When carrying out repairs and new investments, we prioritise energy efficient solutions to reduce the use of fossil fuels, thereby reducing total CO2 emissions.

WIBAX TANK AS The company became part of the Wibax group through an acquisition in September of 2020. Wibax Tank AS offers storage and handling of chemicals and other liquid products in Estonia. Primary customer groups are the forestry industry and other processing industries. Despite the pandemic, operations have remained stable at relatively normal levels throughout the year. The company is working to identify new, potential customers, to make better use of its capacity.

WIBAX SALES OY Wibax Sales Oy works primarily with the pulp and paper industry, also focusing on mining and metals, as well as energy production and road maintenance.

Sales have increased in the year, due to an increased focus on bulk products and sustainable bio oils. These are areas where the group’s capabilities in storage, logistics and customer service are highly important. The acquisition of Baltic Tank Oy allows us to offer more total solutions services to the market, thereby further improving growth.

WIBAX • 33

FINANCIAL OVERVIEW

WIBAX GROUP Operating income – Operating profit/loss 1 600 000

140 000

2000-2020 1 400 000

120 000

1 200 000

100 000

1 000 000 80 000 800 000 60 000 600 000 40 000

400 000

20 000

200 000 0 2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2006 2006

2005

2004

2003

2002

2001

0 2000

kSEK

Operating income Operating profit/loss (EBIT)

WIBAX GROUP Key ratios 45,0 40,0

2000-2020

35,0 30,0 25,0 20,0 15,0 10,0 5,0

Results after financial items Equity Return on capital employed

34 • WIBAX

2020

2005

2004

2003

2002

2001

2000

0,0

kSEK

WIBAX AB Operating income – Operating profit/loss 700 000

80 000

2000-2020

70 000

600 000

60 000

500 000

50 000

400 000

40 000 300 000

30 000

200 000

20 000

100 000

10 000

0 2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

kSEK

0 kSEK

Operating income Operating profit/loss (EBIT)

WIBAX LOGISTICS AB Operating income – Operating profit/loss 350 000

25 000

2000-2020

300 000

20 000

250 000 15 000

200 000 150 000

10 000

100 000 5 000

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

kSEK

2001

0

2000

50 000 0 kSEK

Operating income Operating profit/loss (EBIT)

WIBAX BIOFUELS AB Operating income – Operating profit/loss 600 000

30 000

2010-2020

kSEK

2020

0

2019

5 000

2018

100 000

2017

10 000

2016

200 000

2015

15 000

2014

300 000

2013

20 000

2012

400 000

2011

25 000

2010

500 000

Operating income Operating profit/loss (EBIT)

0 kSEK

WIBAX • 35

FINANCIAL OVERVIEW MULTI-YEAR COMPARISON FOR THE GROUP, kSEK

Operating income EBIT EBITDA Profit/loss after financial items Profit margin, % Balance sheet total Equity ratio, % Return on capital employed, % Average no. of employees

2020 1 301 586 118 995 164 161 107 850 8,8 1 205 005 29,9 9,9 249

2019 1 334 779 72 825 112 286 66 444 5,2 834 282 35,7 8,8 214

2018 1 174 643 78 855 113 683 72 657 6,5 748 638 35,4 10,7 184

2017 847 234 45 575 74 142 39 121 4,9 677 711 32,3 6,8 179

2016 769 963 50 510 77 531 44 681 6,1 534 064 39 9,5 175

2018 593 922 43 636 62 889 38 027 6,8 488 761 37,6 9 52

2017 448 540 27 655 41 307 37 160 8,8 491 434 34,2 8,8 50

2016 426 412 22 178 35 057 37 021 9,2 434 354 34,8 9,7 48

MULTI-YEAR COMPARISON FOR THE PARENT COMPANY, kSEK

Operating income EBIT EBITDA Profit/loss after financial items Profit margin, % Balance sheet total Equity ratio, % Return on capital employed, % Average no. of employees

2020 655 118 74 577 96 738 69 716 11,4 617 562 41 12,3 64

2019 593 194 28 747 50 083 23 596 4,2 545 162 37,2 5,3 62

PROPOSAL FOR THE APPROPRIATION OF EARNINGS The following earnings are available for the Annual General Meeting to appropriate:

Amount

Result brought forward 35 143 Result for the year 32 268

67 411 The Board and the CEO propose that the available earnings be appropriated as follows: Carried forward 67 411

As regards the Company’s results and financial position in general, please refer to the following financial statements with supplementary information and notes to the financial statements.

36 • WIBAX

INCOME STATEMENT GROUP Note OPERATING INCOME Net sales Capitalised work for own account Other operating income

OPERATING EXPENSES Raw materials and consumables Other external costs Personal expenses Depreciation of tangible and intangible fixed assets Other operating expenses Operating profit/loss RESULTS FROM FINANCIAL ITEMS Results from shares in group companies Dividends from associates Interest income Interest expenses and similar items Results after financial items

PARENT COMPANY

2020

2019

1 221 366 1 521 78 699 1 301 586

1 275 732 3 574 55 473 1 334 779

611 209

556 908

43 909 655 118

36 286 593 194

4,5 6

-899 355 -61 373 -161 637

-990 556 -62 534 -153 545

-484 202 -18 470 -49 098

-451 755 -37 754 -46 865

7 8 9

-45 166 -15 060 118 995

-39 461 -15 858 72 825

-22 161 -6 610 74 577

-21 336 -6 737 28 747

226 261 -11 632 107 850

5 897 -7 283 66 444

168

-

1 126 -6 155 69 716

377 -5 528 23 596

107 850

66 444

-28 564 41 152

-634 22 962

-24 725 83 125

-14 404 52 040

-8 884 32 268

-5 077 17 885

2 3

10 11

Appropriations Profit before tax

12

Tax on the result for the year Result for the year

13

2020

2019

WIBAX • 37

BALANCE SHEET GROUP Note

2020

PARENT COMPANY 2019

2020

2019

ASSETS FIXED ASSETS INTANGIBLE ASSETS Software expenses Goodwill Advances, intangible fixed assets

14 16 17

TANGIBLE FIXED ASSETS Land and buildings Plant and machinery Equipment, tools, fixtures and fittings Fixed assets under construction

18 19 20 21

FINANCIAL ASSETS Shares in group companies Investments in equity securities

23 22

Total fixed assets

5 178 2 842 8 020

1 975 126 2 101

1 855

1 480

1 855

1 480

385 748 369 770 48 580 34 763 838 861

77 153 298 608 42 967 63 387 482 115

109 840 297 130 5 869 24 744 437 583

77 153 245 542 3 562 56 471 382 728

105 105

100 100

26 131 26 131

14 945 14 945

846 986

484 316

465 569

399 153

48 827 92 311 21 4 261 145 420

52 988 92 253 38 225 145 504

48 827 -

52 112 -

4 261 53 088

52 112

164 638

183 423

85 613

86 014

2 533 2 126 20 896 190 193

111 20 928 204 462

-

889

13 292 98 905

6 994 93 897

22 406

-

358 019

349 966

151 993

146 009

1 205 005

834 282

617 562

545 162

CURRENT ASSETS STOCK ETC. Raw materials and consumables Finished goods and goods for resale Work in progress on behalf of others Advance payments to suppliers

CURRENT RECEIVABLES Accounts receivable Receivables from group companies Tax receivables Other receivables Prepaid expenses and accrued income

24

Cash and bank balances

25

Total current assets TOTAL ASSETS

38 • WIBAX

GROUP Note

2020

PARENT COMPANY 2019

2020

2019

EQUITY AND LIABILITIES EQUITY Share capital (12 000 shares) Other equity including the profit for the year

26 1 200 359 036 360 236

1 200 296 995 298 195

Restricted equity Share capital (12000 shares) Statutory reserve Unrestricted equity Profit or loss brought forward Profit or loss for the year

360 236

298 195

UNTAXED RESERVES Accumulated depreciation in excess of plan Tax allocation reserves

1 200 240 1 440

1 200 240 1 440

35 143 32 268 67 411

37 258 17 885 55 143

68 851

56 583

191 582 42 982 234 564

154 416 31 553 185 969

PROVISIONS Provisions for deferred tax

28

89 004 89 004

54 033 54 033

4 620 4 620

1 954 1 954

NON-CURRENT LIABILITIES Bank overdraft facilities Other liabilities to credit institutions Other non-current liabilities

29 30 29

451 332 41 250 492 582

7 737 193 373 25 000 226 110

36 627 150 090

45 794 142 378

186 717

188 172

59 503 120 008

44 107 285 142 554

20 553

30 373 59 127 9 448 5 382 8 154 112 484 545 162

CURRENT LIABILITIES Liabilities to credit institutions Advances from customers Accounts payable Liabilities to group companies Current tax liabilities Other current liabilities Accrued expenses and deferred income

TOTAL EQUITY AND LIABILITIES

30

31

25 693 57 979 263 183

5 783 22 838 40 377 255 944

55 172 26 818 1 987 4 431 13 849 122 810

1 205 005

834 282

617 562

WIBAX • 39

CASH FLOW STATEMENT GROUP

OPERATING ACTIVITIES EBIT Adjustments for items not included in the cash flow etc.

- Depreciation - Retirement Interest received Interest paid Tax paid Cash flow from operating activities before changes in working capital Cash flow from changes to working capital Increase(-)/Decrease (+) in stock Increase(-)/Decrease (+) in operating receivables Increase(-)/Decrease (+) in operating liabilities Cash flow from operating activities INVESTMENT ACTIVITIES Shareholders’ contribution paid Acquisition of subsidiary Sale of subsidiary Acquisition of intangible fixed assets Acquisition of tangible fixed assets Sale of tangible fixed assets Cash flow from investment activities FINANCING ACTIVITIES Other liabilities to credit institutions Borrowings and amortisations (net) Bank overdraft facilities Dividends paid Group contributions received/paid Cash flow from financing activities

Cash flow for the year Cash and cash equivalents at beginning of year Cash and cash equivalents at year-end

40 • WIBAX

PARENT COMPANY

2020

2019

118 995 46 147

72 825 40 200

2020

2019

74 577

28 747 21 336 898 377 -5 528 -4 973 40 857

-9 626 14 170 18 521 63 922

261 -11 632 -13 586 140 185

902 -7 283 -7 995 98 649

22 161 86 1 126 -6 155 -8 857 82 938

83 28 749 -21 933 147 084

-55 537 32 673 -4 620 71 165

-976 -5 008 10 326 87 280

-7 958 -189 800 309 -70 -96 570 1 887 -292 202

-7 958 -3 348 309 -260 -116 208 1 469 -114 999

195 261 -7 737 -20 000

44 526 7 737 -20 000

167 524

22 406 0 22 406

-75 089 231 -85 855

-83 179

7 712

16 759

32 263

-9 167 -20 000 20 030 -1 425

-2 652 -20 000 25 150 19 257

-11 571 11 571 0

0 0 0

0 0 0

-83 179

NOTES NOTE 1 ACCOUNTING PRINCIPLES

GENERAL ACCOUNTING PRINCIPLES The annual report has been prepared in accordance with the Annual Accounts Act and the general guidelines from the Swedish Accounting Standards Board 2012:1 (K3).

INTANGIBLE AND TANGIBLE FIXED ASSETS Tangible fixed assets are recognised at their acquisition cost net accumulated depreciation and any impairment.

Component depreciation is applied to buildings. Land is not depreciated Straight-line depreciation is applied to the depreciable amount (acquisition cost less deductions for estimated residual value) over the asset’s useful life as follows:

CLASSIFICATION Fixed assets, non-current liabilities and provisions essentially consist of amounts expected to be recovered or paid more than twelve months after the balance sheet date. Current assets and current liabilities essentially consist of amounts expected to be recovered or paid within twelve months from the balance sheet date.

Intangible Land and buildings Plant and machinery Equipment, tools, fixtures and fittings

VALUATION PRINCIPLES Assets, provisions and liabilities have been entered at historical cost, unless otherwise stated below.

The difference between depreciation according to plan and recorded depreciation is reported as balance sheet appropriations.

DEFINITION OF KEY RATIOS Return on capital employed Profit/loss after financial items plus interest expenses as a percentage of the balance sheet total.

Equity ratio Equity and untaxed reserves less deductions for deferred tax (21.4%) in relation to the balance sheet total.

LEASING The Swedish Accounting Standards Board general guidelines on accounting for leases apply.

FINANCIAL INSTRUMENTS Financial instruments are valued on the basis of their acquisition value. The instruments are recognised in the balance sheet when the company becomes a party to the contractual conditions for the instrument. Financial assets are removed from the balance sheet when the right to receive cash flows from the instrument has expired or has been transferred, and the company has substantially transferred all risks and rewards associated with ownership. Financial liabilities are removed from the balance sheet when the obligations have been settled or have otherwise ceased.

The Group recognises assets leased under a financial lease as tangible assets, while future lease payments are recognised as liabilities. At initial recognition, the asset and the liability are recognised at the sum of future minimum lease payments.

INVENTORY The inventory is stated at the lowest acquisition value according to the first in- first out- principle (FIFO) or fair value respectively. Thus, obsolenscence risk has been taken into consideration.

4-5 years 20-70 years 5-20 years 3-7 years

The parent company recognises all leases, both financial and operating, as operating leases.

WIBAX • 41

RECEIVABLES Receivables are stated at the lower of the nominal value and the amount at which they are expected to be received.

RECEIVEABLES AND LIABILITIES IN FOREIGN CURRENCY Receivables and liabilities in foreign currency were translated at the rate on the balance sheet date.

CASH AND CASH EQUIVALENTS Cash and cash equivalents comprise cash and bank balance.

CONSOLIDATED ACCOUNTS Subsidiary companies are companies in which the parent company directly or indirectly holds more than 50% of the votes, or otherwise has a controlling influence over its operative and financial management. Accounting for subsidiaries is normally based on the acquisition accounting method. This method means that the acquisition of a subsidiary company is viewed as a transaction whereby the parent company indirectly acquires the subsidiary’s assets and assumes its debts. From the moment of acquisition, the acquired company’s revenues and costs, identifiable assets and debts, as well as any goodwill or negative goodwill, is included in the consolidated accounts.

RENTAL INCOME Rental income from the investment properties is recorded linearly in accordance with the terms and conditions of current lease agreements.

REVENUE Revenue has been recognised at the fair value of amounts received or receivable and is reported if the Company is likely to benefit from the financial advantages and the income can be reliably estimated.

Remuneration in the form of interest, royalty or dividend is recognised as revenue when it is probable that the company will enjoy the financial benefits that are associated with the transaction and when the income can be reliably estimated.

Interest is recognised as revenue according to the so-called effective interest method.Royalty is allocated in accordance with the financial significance of the agreement in question.

Dividend is recognised as revenue when the company’s right to payment is ensured.

INCOME TAXES Total tax consists of current tax and deferred tax. Taxes are recognised in the income statement except when an underlying transaction is reported directly in equity, whereby associated tax effects are reported in equity.

Current tax Current tax refers to income tax for the current financial year and the part of the income tax for previous financial years that has not yet been recognised. Current tax is calculated at the tax rates applying at the balance sheet date.

Deferred tax Deferred tax is the income tax that relates to future financial years as a result of previous events. It is recognised using the balance sheet method. According to this method, deferred tax liabilities and deferred tax assets are recognised on temporary differences arising between the book value of assets and liabilities and their value for tax purposes and for other tax deductions or deficits.

Deferred tax receivables are recognised net against deferred tax liabilities only if they can be settled by a net amount.

42 • WIBAX

Deferred tax is calculated on the basis of the current tax rate at the balance sheet date. Effects of changes to current tax rates are recognised in the period when the change was entered into law. Deferred tax receivables are recognised as a financial fixed asset and deferred tax liabilities are recognised as a provision.

Deferred tax receivables regarding loss carry forwards or other future tax deductions are recognised to the extent it is likely that the deduction can be offset against future tax surpluses.

Due to the relationship between accounting and taxation, the deferred tax liability on untaxed reserves is not recognised separately.

PROVISIONS Provisions are recognised as obligations to third parties that are attributable to the financial year or previous financial years, and which on the balance sheet date are either ensured or probable but whose amounts or payment dates are uncertain.

CASH FLOW ANALYSIS The cash flow analysis is made according to the indirect method. The reported cash flow only includes transactions that have involved incoming or outgoing payments. Cash and cash equivalents also include disopsable deposits with banks and other financial insitutions as well as short term investments listed on a public market, with a maturity date less than three months from the date of acquisition.

REMUNERATION TO EMPLOYEES Remuneration to employees refers to all types of payments made by the company to its employees. The company’s remuneration includes salaries, paid holidays, paid leave of absence, bonuses and remuneration after termination of employment (pensions). This remuneration is recognised as it is earned. Remuneration to employees after termination of employment refers to defined-contribution or defined-benefit pension plans. Plans where fixed fees are paid and there is no obligation, neither legal nor constructive, to pay any amount over and above these fees are classified as defined-contribution plans. Other plans are classified as defined-benefit pension plans. The company makes no other long-term payments to employees.

ESTIMATES AND ASSESSMENTS The preparation of financial statements and application of accounting principles is often based on estimates, assessments and assumptions by management, which are deemed as being reasonable at the time when they were made. Estimates and assessments are based on experience and various other factors, which under current circumstances seem reasonable. The result of these is then used to assess the recognised values of assets and liabilities that are not readily apparent from other sources. The actual outcome may differ from these estimates and assessments. Estimates and assumptions are regularly revised.

No significant sources of uncertainty in estimates and assumptions at the balance sheet date are deemed to entail a significant risk of substantial adjustment in the recognised amounts for assets and liabilities in the next financial year.

GROUP CONTRIBUTIONS Group contributions received and paid are recognised as appropriations.

NOTE 2 NET SALES 2020

2019

GROUP Net sales - Of which transport allowance

1 221 366 16 982

1 275 732 23 109

PARENT COMPANY Net sales - Of which transport allowance

611 209 16 982

556 908 23 109

NOTE 3 OTHER OPERATING INCOME 2020

2019

GROUP Exchange gains Rental income Other Total

18 714 50 741 9 244 78 699

16 297 36 889 2 287 55 473

PARENT COMPANY Exchange gains Rental income Other Total

7 787 34 793 1 329 43 909

6 148 29 668 469 36 285

2020

2019

587 3 42 632

653 9 8 670

305 3 308

294 8 8 310

2020

2019

1 059

813

834 1 202

936 1 665

NOTE 4 FEES AND REIMBURSEMENT OF EXPENSES TO AUDITORS

GROUP Ernst & Young Audit assignments Tax advice Other services Total PARENT COMPANY Ernst &Young Audit assignments Tax advice Other services Total

NOTE 5 LEASING AGREEMENTS

PARENT COMPANY Assets held through operational leasing agreements In the year, the company’s leasing expenses have amounted to Fees due - within a year - later than within one year, but within five years

43 • WIBAX WIBAX • 43

NOTE 6 EMPLOYEES AND PERSONNEL EXPENSES 2020

2019

PARENT COMPANY Men Women Parent company total

30 34 64

33 29 62

SUBSIDIARIES Sweden Men Women

123 24

123 21

Finland Men Women

12 22

4 1

Norway Men Women

1 -

1 -

Estonia Men Women

2 1

Denmark Men Women

-

2 -

185 249

152 214

Percentage women as %

Percentage women as %

12,5 21

12,5 21

PARENT COMPANY Board of Directors & CEO Other employees Total, 1) Social costs (of which pension costs) 2)

3 201 30 146 33 347 14 893 4 977

2 434 26 223 28 657 13 482 4 477

SUBSIDIARIES Board of Directors & CEO Other employees Total Social costs (of which pension costs)

4 557 76 053 80 610 30 633 7 594

3 835 70 534 74 369 30 431 6 958

GROUP Board of Directors & CEO Other employees Total Social costs of which pension costs) 3)

7 758 106 199 113 957 45 526 12 571

6 269 96 757 103 026 43 913 11 435

AVERAGE NUMBER OF EMPLOYEES

Subsidiary total GROUP total GENDER BREAKDOWN IN MANAGEMENT PARENT COMPANY Board of directors Other senior executives SALARIES, OTHER REMUNERATIONS AND SOCIAL INSURANCE CONTRIBUTIONS

1) Personnel costs have been reduced with the amount received in state aid 590 (0).

2) The parent company’s pension costs include 573 (prev year 538) for the Board of Directors and the CEO concerning (2) people.

3) The group’s pension costs include 770 (prev. year 754) for the Board of Directors and the CEO, concerning 3 (3) people..

There are no material terms concerning severance payments or similar arrangements for board members or other members of the respective senior management teams.

44 • WIBAX

NOTE 7 DEPRECIATION OF TANGIBLE AND INTANGIBLE FIXED ASSETS

GROUP Intangible Building Machinery Plant and equipment

PARENT COMPANY Intangible Building Machinery Plant and equipment

2020

2019

1 623 5 341 25 198 13 004 45 166

1 444 1 579 24 210 12 229 39 462

1 008 1 941 17 985 1 227 22 161

1 046 1 579 17 992 719 21 336

NOTE 8 OTHER OPERATING EXPENSES 2020

2019

GROUP Exchange rate losses Other Total

14 508 552 15 060

14 846 1 012 15 858

PARENT COMPANY Exchange rate losses Other Total

6 402 208 6 610

5 840 898 6 738

2020

2019

82 717 87 540

71 727 89 405

2020

2019

261 261

897 897

1 126 1 126

377 377

NOTE 9 PURCHASES AND SALES BETWEEN GROUP COMPANIES

GROUP Parent company sales concerning group companies Parent company purchases concerning group companies

NOTE 10 OTHER INTEREST INCOME AND SIMILAR PROFIT/LOSS ITEMS

GROUP Interest income Total PARENT COMPANY Interest income Total

NOTE 11 INTEREST EXPENSES AND SIMILAR PROFIT/LOSS ITEMS 2020

2019

GROUP Interest expenses Other Total

-10 106 -1 526 -11 632

-6 602 -682 -7 284

PARENT COMPANY Interest expenses Other Total

-6 088 -67 -6 155

-4 898 -630 -5 528

WIBAX • 45

NOTE 12 APPROPRIATIONS

Group contribution received Group contribution paid Accumulated depreciation in excess of plan Tax allocation reserve, provision for the year Tax allocation reserve, reversal for the year Total

2020

2019

20 030 -37 166 -13 796 2 368 -28 564

28 150 -3 000 -20 720 -7 700 2 636 -634

2020

2019

-24 725 -11 509

-14 404 -6 409

107 850 -22 649

66 444 -14 219

-2 076 -24 725

-185 -14 404

22,9%

21,7%

-8 884 -27

-5 077 -104

41 152 -8 807

22 963 -4 914

-77 -8 884

-163 -5 077

21,6%

22,1%

2020

2019

6 740 70 3 245 -626 1 497 10 926

6 495 245

NOTE 13 TAX ON THE PROFIT/LOSS FOR THE YEAR

GROUP, current tax expenses Of which deferred tax Reconciliation of effective tax Recognised profit/loss before tax Tax on profit/loss for the year in accordance with current tax rate Tax effect of: - Other non-deductible costs/non-taxable revenue Recognised effective tax Effektiv skattesats PARENT COMPANY, current tax expenses Of which deferred tax Reconciliation of effective tax Recognised profit/loss before tax Tax on profit/loss for the year in accordance with current tax rate 21,4 % (22%) Tax effect of: - Other non-deductible costs/non-taxable revenue Recognised effective tax Effective tax rate

NOTE 14 CAPITALISED EXPENSES FOR DEVELOPMENT AND SIMILAR WORK

GROUP Accumulated acquisition cost: -At the beginning of year -New acquisitions -Acquisition of subsidiary -Divestments and retirements -Reclassifications Scheduled accumulated depreciation: -At the beginning of year -Divestments and retirements -Scheduled depreciation Recognised value at year-end PARENT COMPANY Accumulated acquisition cost: -At the beginning of year -Reclassifications -Divestments and retirements

Scheduled accumulated depreciation: -At the beginning of year -Divestments and retirements -Scheduled depreciation Recognised value at year-end

46 • WIBAX

6 740

-4 764 425 -1 408 -5 747 5 179

-3 560

5 843 1 497 -298 7 042

5 843

-4 363 184 -1 008 -5 187 1 855

-3 317

-1 204 -4 764 1 976

5 843

-1 046 -4 363 1 480

NOTE 15 CONCESSIONS, PATENTS, LICENCES, TRADEMARKS

GROUP Accumulated acquisition cost: -At the beginning of year Scheduled accumulated depreciation: -At the beginning of year -Scheduled depreciation Recognised value at year-end

2020

2019

825 825

825 825

-825 -825 -

-635 -190 -825 -

2020

2019

809 3 045 3 854

809

-809 -203 -1 012 2 842

-759 -50 -809 -

GROUP

PARENT

126 -126 -

-

2020

2019

97 886 106 954 193 230 -267 37 062 434 865

97 886

-20 732 -23 457 267 -5 195 -49 117 385 748

-19 153

NOTE 16 GOODWILL

GROUP Accumulated acquisition cost: -At the beginning of year -Goodwill on acquisition of subsidiary Scheduled accumulated depreciation: -At the beginning of year -Scheduled depreciation Recognised value at year-end

809

NOTE 17 ADVANCES RELATED TO INTANGIBLE FIXED ASSETS

At the beginning of year Reclassification Recognised value at year-end

NOTE 18 LAND AND BUILDINGS

GROUP Accumulated acquisition cost: -At the beginning of year -New acquisitions -Acquisition of subsidiary -Divestments and retirements -Reclassifications Scheduled accumulated depreciation: -At the beginning of year -Acquisition of subsidiary -Divestments and retirements -Scheduled depreciation Recognised value at year-end PARENT COMPANY Accumulated acquisition cost: -At the beginning of year -New acquisitions -Reclassifications Scheduled accumulated depreciation: -At the beginning of year -Scheduled depreciation Recognised value at year-end

97 886

-1 579 -20 732 77 154

97 886 940 33 687 132 513

97 886

-20 732 -1 941 -22 673 109 840

-19 153 -1 579 -20 732 77 154

97 886

WIBAX • 47

NOTE 19 PLANT AND MACHINERY

GROUP Accumulated acquisition cost: -At the beginning of year -New acquisitions -Acquisition of subsidiary -Divestments and retirements -Reclassifications Scheduled accumulated depreciation: -At the beginning of year -Acquisition of subsidiary -Divestments and retirements -Write-offs -Scheduled depreciation Recognised value at year-end PARENT COMPANY Accumulated acquisition cost: -At the beginning of year -New acquisitions -Divestments and retirements -Reclassifications Scheduled accumulated depreciation: -At the beginning of year -Divestments and retirements -Write-offs -Scheduled depreciation Recognised value at year-end

2020

2019

460 446 42 347 9 702 -6 678 47 587 553 404

426 993 12 320

-161 838 -1 639 5 028

-7 480 28 613 460 446 -142 228

-25 185 -183 634 369 770

4 600 -1 115 -23 095 -161 838 298 608

364 237 26 619 -133 43 030 433 753

336 660 222 -1 258 28 613 364 237

-118 695 56 -17 985 -136 624 297 129

-100 919 216 -1 115 -16 877 -118 695 245 542

2020

2019

82 230 17 782 119 -11 744 2 803 91 190

71 784 18 642

NOTE 20 FIXTURES AND FITTINGS, TOOLS AND INSTALLATIONS

GROUP Accumulated acquisition cost: -At the beginning of year -New acquisitions -Acquisition of subsidiary -Divestments and retirements -Reclassifications Scheduled accumulated depreciation: -At the beginning of year -Acquisition of subsidiary -Divestments and retirements -Scheduled depreciation Recognised value at year-end PARENT COMPANY Accumulated acquisition cost: -At the beginning of year -New acquisitions -Divestments and retirements -Reclassifications Scheduled accumulated depreciation: -At the beginning of year -Divestments and retirements -Scheduled depreciation Recognised value at year-end

48 • WIBAX

-9 968 1 772 82 230

-39 263 -46 9 703 -13 005 -42 611 48 579

-34 117 7 084 -12 230 -39 263 42 967

10 441 747 -450 2 803 13 541

8 158 1 239 -728 1 772 10 441

-6 880 434 -1 227 -7 673 5 868

-6 751 590 -719 -6 880 3 561

NOTE 21 NEW CONSTRUCTIONS IN PROGRESS 2020

2019

GROUP At the beginning of year Acquisition of subsidiary Reclassifications New acquisitions Recorded value at year-end

63 387 7 173 -88 950 53 153 34 763

5 414 -30 385 88 358 63 387

PARENT COMPANY At the beginning of year Reclassifications New acquisitions Recorded value at year-end

56 471 -81 018 49 291 24 744

4 856 -30 385 82 000 56 471

2020

2019

100 5 105

100 100

2020

2019

14 945 11 306 -120 26 131

14 945

NOTE 22 INVESTMENTS IN EQUITY SECURITIES

Accumulated acquisition cost: -At the beginning of year -Acquisition of subsidiary Recorded value at year-end

NOTE 23 SHARES IN GROUP COMPANIES

Accumulated acquisition cost: -At the beginning of the year -Purchases -Shares Recorded vaslue at year-end

14 945

Specification of the parent company’s holdings in group companies Referring to the holding share of the capital, which also correlates with the share of votes for the total number of shares.

Subsidiary / Corporate ID no. / HQ / No. of shares Wibax Logistics AB, 556375-5080, Piteå, 2 000 shares Wibax Recycling AB, 556499-9257, Piteå, 1 000 shares Wibax Perf. Chem. AB, 556547-9705, Piteå, 1 000 shares Wibax Industrial AB, 556346-1747, Piteå, 1 000 shares Wibax Biofuels AB, 556729-0894, Piteå, 1 000 shares Wibax Sales OY, 2546247-1, Kotka (FIN), 1 000 shares WIBAX LOG. OY, 2957318-7, JAKOBSTAD (FIN), 1 000 shares Wibax AS, 913456300, Skien (NOR), 100 shares Wibax Production AB, 559261-3821, Piteå, 1 000 shares Wibax Chemicals AB, 559261-3813, Piteå, 1 000 shares Wibax Holding OY, 3150976-6, Jakobstad (FIN), 100 shares

Equity 21 449 120 2 207 1 902 39 979 3 525 3 256 312 100 100 5 376

Year profit/loss 3 396 672 8 10 740 3 124 34 -2 403

in % 100 100 100 100 100 100 100 100 100 100 100

Recognised value 220 143 228 104 11 274 2 644 103 109 100 100 11 106 26 131

2020

2019

355 20 540 20 895

179 88 20 660 20 927

13 292 13 292

6 994 6 994

2020

2019

22 406 22 406

0 0

NOTE 24 PREPAID EXPENSES AND ACCRUED INCOME

GROUP Insurance premiums Customer/supplier prepayments Other items Total PARENT COMPANY Other items Total

NOTE 25 CASH AND BANK BALANCES

Balances available at banks and other credit institutions Total

WIBAX • 49

NOTE 26 EQUITY

SHARE CAPITAL Share capital consists of 12 000 shares with a 100 SEK quota value Share capital GROUP Balance carried forward according to past year’s balance sheet Translation difference Dividend Result for the year At year-end

1 200

1 200

Translation reserve

Other equity including the profit for the year

Total

30 -1 084

296 965

298 195 -1 084 -20 000 83 125 360 236

-20 000 83 125 360 090

-1054

Share capital

Statutory reserve

1 200

240

55 143

240

-20 000 32 268 67 411

2020

2019

191 582

154 416

PARENT COMPANY Balance carried forward according to past year’s balance sheet Dividend Result for the year At year-end

1 200

Unrestricted equity

NOTE 27 UNTAXED RESERVES

Accumulated depreciation in excess of schedule: Tax allocation reserves: -Reserved in tax year 2014 -Reserved in tax year 2015 -Reserved in tax year 2016 -Reserved in tax year 2017 -Reserved in tax year 2018 -Reserved in tax year 2019 -Reserved in tax year 2020 Total

2 368 9 158 8 579 1 438 2 311 7 700

9 158 8 579 1 438 2 311 7 700 13 796 234 564

185 970

2020

2019

GROUP Buildings and land Machinery and other technical facilities Untaxed reserves Total

22 856 2 613 63 534 89 003

1 954

PARENT COMPANY Buildings and land Machinery and other technical facilities Total

2 007 2 613 4 620

NOTE 28 DEFERRED TAX LIABILITIES

Deferred tax liabilities

NOTE 29 CREDIT GRANTED Bank overdraft facilities Granted amount on bank overdraft facilities for the group is MSEK 130 (MSEK 130) and in the parent company MSEK 130 (MSEK 130).

50 • WIBAX

52 079 54 033

1 954 1 954

NOTE 30 OTHER LIABILITIES TO CREDIT INSTITUTIONS 2020

2019

59 503 418 173 73 650 551 326

44 107 198 916 19 458 262 481

20 553 76 440 73 650 170 643

30 373 122 920 19 458 172 751

2020

2019

GROUP Liabilities related to personnel Other items Total

30 019 27 960 57 979

23 649 16 728 40 377

PARENT COMPANY Liabilities related to personnel Other items Total

7 790 6 059 13 849

6 314 1 840 8 154

GROUP Maturity within one year from the balance sheet date Maturity one to five years from the balance sheet date Maturity more than five years after the balance sheet date PARENT COMPANY Maturity within one year from the balance sheet date Maturity one to five years from the balance sheet date Maturity more than five years after the balance sheet date

NOTE 31 ACCRUED EXPENSES AND PREPAID INCOME

NOTE 32 PROPOSED APPROPRIATION OF THE COMPANY’S PROFIT OR LOSS

The Board and the CEO propose that the available earnings, 67,411 (KSEK), be appropriated as follows: Carried forward Total

67 411 67 411

NOTE 33 PLEDGED ASSETS

GROUP Property motgages Floating charges Assets with retention of title Total PARENT COMPANY Property motgages Floating charges Assets with retention of title Total

2020

2019

1 137 156 246 281 79 476 1 462 913

111 940 224 057 77 144 413 141

127 740 155 000 282 740

111 940 165 512 37 277 489

NOTE 34 CONTINGENT LIABILITIES 2020

2019

GROUP Contingent liabilities Contingent liabilities Norway

1 362

1 362

PARENT COMPANY Contingent liabilities

None

None

WIBAX • 51

NOTE 35 NUMBER OF SHARES

PARENT COMPANY Number of shares Quota value (SEK)

2020

2019

12 000 100

12 000 100

NOTE 36, CASH FLOW ANALYSIS – ADJUSTMENTS FOR ITEMS NOT INCLUDED IN THE CASH FLOW 2020

2019

GROUP Depreciation Capital results Translation differences etc.

Total

45 166 888 93 46 147

39 461 739 40 200

PARENT COMPANY Depreciation Capital results Total

22 161 85 22 246

21 336 898 22 234

Piteå 2021-05-07

Anders Snell Chairman of the Board

Rolf Back, Member of the Board

Andreas Wiklund, Member of the Board

My audit report was submitted 2021-05-07

Magnus Holmgren Chartered accountant

52 • WIBAX

Bo Wikund, Member of the Board

Stina Blombäck, Member of the Board

Lars-Erik Aaro, Member of the Board

David Wiklund, Member of the Board

Jonas Wiklund Chief Executive Officer

WIBAX • 53

AUDIT REPORT To the Annual General Meeting of

WIBAX AB

Corporate ID no. 556262-9674 REPORT ON THE ANNUAL ACCOUNTS AND THE CONSOLIDATED ACCOUNTS Opinions We have audited the annual accounts and consolidated accounts of Wibax AB for the financial year 2020.

In our opinion, the annual accounts and consolidated accounts have been prepared in accordance with the Annual Accounts Act and present fairly, in all material respects, the financial position of the parent company and the Group as of 31 December 2020 and their financial performance and cash flow for the year then ended in accordance with the Annual Accounts Act. The statutory administration report is consistent with the other parts of the annual accounts and consolidated accounts.

We therefore recommend that the general meeting of shareholders adopts the income statement and balance sheet for the parent company and the Group.

Basis for opinions We have conducted our audit in accordance with International Standards on Auditing (ISA) and generally accepted auditing standards in Sweden. Our responsibilities under these standards are further described in the Auditor’s responsibilities section. We are independent of the parent company and the Group in accordance with professional ethics for accountants in Sweden and have otherwise fulfilled ource ethical responsibilities in accordance with these requirements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinions.

Information not pertaining to the annual accounts This document also contains information not pertaining to the annual accounts, on pages 3-26. The Board of Directors and the Chief Executive Officer are responsible for this information.

Our statement regarding the annual accounts does not consider this information and we make no statements regarding the validity of this additional information.

During our audit of the annual accounts, we are required to read the information identified above and consider whether this information is, in any material respect, incompatible with the annual accounts. When reviewing this information, we also take into account other information that we have obtained during our audit process and assess whether this additional information appears to contain any material error.

If we, based on the review that we have performed pertaining to this information, come to the conclusion that this additional information contains any material error, we are obligated to report it. We have nothing to report on this matter.

Responsibilities of the Board of Directors and the CEO It is the responsibility of The Board of Directors and the Chief Executive Officer to prepare the annual accounts and consolidated accounts and to ensure that they give a fair presentation in accordance with the Annual Accounts Act. The Board of Directors and the Chief Executive Officer are also

54 • WIBAX

responsible for such internal control as they determine is necessary to enable the preparation of annual accounts and consolidated accounts that are free from material misstatement, whether due to fraud or error.

In preparing the annual accounts and consolidated accounts, the Board of Directors and the Chief Executive Officer are responsible for the assessment of the company’s and the Group’s ability to continue as a going concern. They disclose, as applicable, matters related to going concern and using the going concern basis of accounting. However, the going concern basis of accounting not applied if the Board of Directors and the Chief Executive Officer intend to liquidate the company, to cease operations, or have no realistic alternative but to do so. The going concern basis of accounting is not applied if a decision has been made to shut down operations.

Auditor’s responsibilities Our objectives are to obtain reasonable assurance about whether the annual accounts and consolidated accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and generally accepted auditing standards in Sweden will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these annual accounts and consolidated accounts.

As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the annual accounts and consolidated accounts, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinions. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of the company’s internal control relevant to our audit in order to design audit procedures that are appropriate under the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors and the Chief Executive Officer.

• Draw a conclusion regarding the appropriateness of the Board of Directors’ and the Chief Executive Officer’s use of the going concern basis of accounting in preparing the annual accounts and consolidated accounts. We also draw a conclusion, based on the audit evidence obtained, as to whether any material uncertainty exists related to events or conditions that may cast significant doubt on the company’s and the Group’s ability to continue as a going concern. If we

conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the annual accounts and consolidated accounts or, if such disclosures are inadequate, to modify our opinion about the annual accounts and consolidated accounts. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause a company and a group to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the annual accounts and consolidated accounts, including the disclosures, and whether the annual accounts and consolidated accounts represent the underlying transactions and events in a manner that achieves fair presentation.

• Obtain sufficient and appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated accounts. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our opinions.

We must inform the Board of Directors of, among other matters, the planned scope and timing of the audit. We must also inform of significant audit findings during our audit, including any significant deficiencies in internal control that we identified.

REPORT ON OTHER STATUTORY AND REGULATORY REQUIREMENTS Opinions In addition to our audit of the annual accounts and consolidated accounts, we have also audited the administration of the Board of Directors and the Chief Executive Officer of Wibax AB for the financial year 2020 and the proposed appropriations of the company’s profit or loss.

We recommend to the general meeting of shareholders that the profit be appropriated in accordance with the proposal in the statutory administration report and that the members of the Board of Directors and the Chief Executive Officer be discharged from liability for the financial year.

A separate list of loans and securities has been drawn up pursuant to the provisions of the Swedish Companies Act. Basis for opinions We have carried out the audit in accordance with generally accepted auditing standards in Sweden. Our responsibilities under those standards are further described in the section “Auditor’s responsibilities”. We are independent of the parent company and the Group in accordance with professional ethics for accountants in Sweden and have otherwise fulfilled our ethical responsibilities in accordance with these requirements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinions Responsibilities of the Board of Directors and the CEO The Board of Directors is responsible for the proposal for appropriations of the company’s profit or loss. At the proposal of a dividend, this includes an assessment of whether the dividend is justifiable considering the requirements which the company’s and the Group’s type of operations, size and risks place on the size of the parent company’s and the Group’s equity, consolidation requirements, liquidity and position in general.

The Board of Directors is responsible for the company’s organisation and the administration of the company’s affairs.

This includes among other things continuous assessment of the company’s and the Group’s financial situation and ensuring that the company’s organisation is designed so that the accounting, management of assets and the company’s financial affairs otherwise are controlled in a reassuring man-

ner. The Chief Executive Officer shall manage the ongoing administration according to the Board of Directors’ guidelines and instructions and among other matters take measures that are necessary to fulfil the company’s accounting in accordance with law and handle the management of assets in a reassuring manner.

Auditor’s responsibilities Our objective concerning the audit of the administration, and thereby our opinion about discharge from liability, is to obtain audit evidence to assess with a reasonable degree of assurance whether any member of the Board of Directors or the Chief Executive Officer in any material respect: • has undertaken any action or been guilty of any omission which can give rise to liability to the company, or • in any other way has acted in contravention of the Companies Act, the Annual Accounts Act or the Articles of Association.

Our objective concerning the audit of the proposed appropriations of the company’s profit or loss, and thereby our opinion about this, is to assess with a reasonable degree of assurance whether the proposal is in accordance with the Companies Act. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with generally accepted auditing standards in Sweden will always detect actions or omissions that can give rise to liability to the company, or that the proposed appropriations of the company’s profit or loss are not in accordance with the Companies Act. As part of an audit in accordance with generally accepted auditing standards in Sweden, we exercise professional judgement and maintain professional scepticism throughout the audit. The examination of the administration and the proposed appropriations of the company’s profit or loss is based primarily on the audit of the accounts. Additional audit procedures performed are based on our professional judgement with a starting point in risk and materiality. This means that we focus the examination on such actions, areas and relationships that are material for the operations and where deviations and violations would have particular importance for the company’s situation. We examine and test decisions undertaken, support for decisions, actions taken and other circumstances that are relevant to our opinion concerning discharge from liability. As a basis for our opinion concerning the Board of Directors’ proposed appropriations of the company’s profit or loss, we examined whether the proposal is in accordance with the Companies Act. Auditor’s opinion on the Statutory Sustainability Report The Board of Directors and the CEO are responsible for the sustainability report on pages 7-26 and for ensuring its preparation in accordance with the Annual Accounts Act. We have conducted our review in accordance with the FAR recommendation RevR 12 Auditor’s Opinion on the Statutory Sustainability Report. This means that our review of the sustainability report is different from and substantially smaller in scope than an audit conducted in accordance with International Standards on Auditing and generally accepted auditing standards in Sweden. We believe that this review provides sufficient basis for our opinion.

A sustainability report has been perpared.

Piteå, May 7, 2021 Ernst & Young AB

Magnus Holmgren Chartered accountant

WIBAX • 55

56 • WIBAX

BOARD OF DIRECTORS FOR WIBAX BO WIKLUND Board member Engineer Founder and owner.

Holds 55 % of WIBAX Group shares.

ANDERS SNELL Chairman of the Board since 2011.

M.Sc. in Chemical Engineering from the Royal Institute of Technology.

Senior Consultant Anders Snell Business Consultant Other board commitments: Member of the Board of ÅF, Executive member of the ÅForsk Foundation Previous employments: Senior Vice President BillerudKorsnäs, Senior Vice President Assi Domän, CEO Grycksbo Finpappersbruk, CEO Norrsundet Bruks AB

JONAS WIKLUND Member of the board Holds 15 % of WIBAX Group shares.

STINA BLOMBÄCK Member of the board since 2015.

M.Sc. in Chemical Engineering from the Royal Institute of Technology CEO, Senior Consultant for Brännbacken Projekt AB. Other board commitments include Luleå Energi AB and Part Construction AB. Previous employments: Sustainability and Energy Director BillerudKorsnäs AB, CEO Billerud Karlsborg AB.

DAVID WIKLUND Member of the board Holds 15 % of WIBAX Group shares.

ROLF BACK Member of the board since 1995.

Doctor of Economics from the Stockholm School of Economics. He has held a number of CEO positions in companies of different sizes and in different industries, as well as a number of board commitments.

He was the Head of Research at GI-IHR, Stockholm University and Professor at Luleå University of Technology. Member of the Royal Swedish Academy of Engineering Sciences and Norrbottensakademien.

ANDREAS WIKLUND Member of the board Holds 15 % of WIBAX Group shares.

LARS-ERIC AARO Member of the board since 2016 .

Mining Engineer (M.Sc.) from Luleå University of Technology. Previous employments: Sales Director for the ÅF group and member of the group management team, CEO and Group CEO of LKAB, senior positions at Secoroc, Boliden and AssiDomän. Member of the Royal Swedish Academy of Engineering Sciences as well as Honorary Doctor at Luleå University of Technology.

WIBAX • 57

MANAGEMENT TEAM

58 • WIBAX

JONAS WIKLUND CEO Wibax Group

DAVID WIKLUND MD Biofuels

ANDREAS WIKLUND Chief of House Property

MAGNUS SUNDSTRÖM MD Logistics

ANNICA PETTERSSON Chief of HR

ANNA BERGVALL Chief of QSE

FREDRIK NORDSTRÖM MD Industrial

HANS HENRIKSSON CPO

URBAN HAUGEN COO WPC

MICHAEL BODIN COO Production

MIKAEL KVIST MD Wibax OY

KRISTOFFER ÖVERHEM CFO

FREDRIK NYBERG CCO

ULF BRORSSON Chief of Sourcing and Supply

production/graphics: mawix art · print: ågrenshuset · photo: birgitta holmström et.al. · translation: language consulting

OUR BUSINESS IS GOOD CHEMISTRY HEAD OFFICE: Batterigatan 12, 941 47 Piteå · Phone switchboard +46(0)911-250 200 www.wibax.com