annual report - mackmyraannual report mackmyra svensk whisky ab 2012. 201.2340506670854945 02....

AnnuAl reportMAckMyrA SvenSk WhiSky AB

2012

MackMyra annual report 2012

02.

Mackmyra in briefMackmyra Svensk Whisky AB was founded in 1999 and is Sweden's first producer of malt whisky. The company’s opera-tions are based in Mackmyra Whisky Village just outside the city of Gävle. The company has offices for management, marketing and sales in Stockholm. Mackmyra’s vision is to be the natural choice for new whisky experiences. The business concept is for people who enjoy the finer things in life in Swe-den, the Nordic region and the rest of the world to be offered an attractive range of whisky and whisky-related products via the strong Mackmyra brand.

Mackmyra Whisky Village is the focal point for whisky pro-duction and for the experience and cask offering that forms an important part of the company’s strategy. Maturation of the whisky takes place in Bodås Mine near Gävle, the Forest Store in Mackmyra Whisky Village, on the Fjäderholm Islands near Stockholm, at Häckeberga Manor in Skåne and in Smö-gen on Sweden’s west coast.

Mackmyra’s business model is largely based on creating a strong interest among customers so that they become ambassadors who participate actively in the marketing of the

company’s products and experiences. Mackmyra’s offering comprises bottled products, personal casks and experiences, including at the Whisky Village. Our ambassadors spread the message about Mackmyra and their experiences, thereby helping to increase brand awareness and product recognition within and outside Sweden.

The personal casks, which were launched in 2002, were the company’s first whisky product. The concept offers custom-ers the opportunity to buy a personal 30-litre cask of Swed-ish malt whisky and to then follow it throughout the entire process from filling to bottling.

Mackmyra’s bottled whisky has been sold at Systembolaget and restaurants since 2006. Today Mackmyra offers a broad product portfolio of whisky in high-end segments of the mar-ket. Products in the super-premium and premium segments are offered in the ordinary product range at Systembolaget. The products are available for sale outside Sweden through tax-free, travel retail and in selected countries in Europe and North America. Mackmyra’s bottled whisky currently ac-counts for approximately 50 percent of the company’s sales.

contentS the year in brief 03.

ceo’s report 04.

Business model 06.

Market overview 10.

customer offering 14.

production 20.

environment 23.

Five-year overview 25.

Board of Directors 26.

Management 27.

report of the Board of Directors 28.

Financial statements 34.

Supplemental disclosures 38.

notes to the financial statements 40.

Signatures of the Board of Directors 43.

Auditors’ report 44.

Shares and ownership 45.

Annual general meeting and calendar 46.

Glossary, definitions and addresses 47.

MAckMyrA in BrieF


03.

the year in briefFinAnciAl hiGhliGhtS

Sekm 2012 2011

Net sales1 82.3 81.7

Revenue growth 1% 2%

Net sales excluding alcohol tax 63.9 62.3

Revenue growth excluding alcohol tax 3% 2%

Total sales value including cask reservations2 68.5 64.8

Growth 6% 3%

Gross profit 47.3 41.0

Gross profit margin3 58% 50%

Operating profit/loss -1.7 -0.7

Profit/loss after tax -5.3 -3.8

1) Net sales include alcohol tax on sales in Sweden. Alcohol tax is also included in the cost of goods sold in an equivalent amount and therefore does not affect the result.

2) Total sales value including cask reservations refers to net sales excluding alcohol tax adjusted for the sales value of cask reservations not yet recognised as revenue, about 25 percent of the number of barrels sold. See also the Casks and Experiences section on page 15.

3) Gross margin is higher than the previous year, as until 2011 the cost of goods sold included certain costs for sales and administration. Beginning in 2012, reporting has been streamlined and corresponding expenses are included in selling expenses and administrative expenses.

JAnuAry – DeceMBer 2012

• Net sales totalled SEK 82.3m (81.7)

• Net sales excluding alcohol tax rose by 3% (2) to SEK 63.9m (62.3)

• Operating loss was SEK 1.7m (loss: 0.7) Costs for market-ing campaigns had a negative impact on earnings total-ling SEK 4.6m (4.5)

• Net loss after tax was SEK 5.3m (loss: 3.8)

• Earnings per share totalled SEK -1.31 (-0.94)

• The number of bottles sold increased by 15 percent (3)

• In November 2012 the International Wine & Spirit Competition (IWSC) named Mackmyra European Spirits Producer 2012

the yeAr in BrieF

2012GroWth in SAleS

Q1 Net sales increased by 4 percent on

2011. Cask sales performed strongly and sales of bottles also increased. The Gravity-fed Distillery was shown to visitors for the first time.

iMproveMent in operAtinG incoMe

Q2 Net sales continued to increase, as did operating income and

margin. The number of bottles sold increased by 15 percent. The Liquor Control Board (LCBO) in Canada launched Mackmyra as one of its annual Distillery Fea-tures. The first 100 casks were filled at the Gravity-fed Distillery.

neW MArketinG initiAtiveS

Q3 Earnings were negative-ly impacted by weaker cask sales and costs for

increased marketing initiatives. The number of bottles sold continued to increase, however. Mackmyra Brukswhisky (The Swedish Whisky) was launched in a new brand-build-ing design along with the new Bee product. Mackmyra’s whisky was awarded two gold and three silver medals by the IWSC.

GolD MeDAl- Winner

Q4Net sales exclud-ing alcohol tax increased by 11 per-

cent and operating income was positive once again. The IWSC named Mackmyra European Spirits Producer 2012. A distri-bution agreement was signed with Galatea Spirits AB.

eventS AFter the enD oF the perioD

• Market expansion focused on Europe − Mackmyra continues to develop sales in Germany through the wholly owned subsidiary Mackmyra Swed-ish Whisky GmbH, which was founded in February 2013. − In connection with being named European Spirits Producer 2012, Mackmyra has decided to further develop sales in the rest of Europe through collaborations with distributors, including efforts such as preliminary studies of the markets in Poland, Switzerland and Benelux. − Valora Trade is a new distribution partner in Denmark as of March 2013.

• The whisky and honey liqueur Bee is included in System-bolaget’s regular line of products from 28 February 2013.

• In January 2013 Norrlandsfonden subscribed for SEK 4.4m in convertible debentures in Mackmyra to replace existing convertibles.

• Supply Chain Manager Charlotte Ulfvin and Marketing Manager Hampf Fogtmann took up their new positions in January and February, 2013.


04.

From platform creation to sales focus

Producing whisky is a long-term operation, both in terms of the product and the business. Our whisky is usually ma-tured for five years or more before it is ready to be bottled. It's stored in the Forest Store in Mackmyra Whisky Village, in Bodås Mine or in one of our other stores and it takes the time it takes, regardless of economic fluctuations, political decisions or fashion trends. Fortunately the same can be said of global whisky consumption which, with a few exceptions, is growing apparently irrespective of economic cycles and trends.

When the stock first listed on First North in 2011, based on our knowledge of the development of the whisky market and our belief in the potential of Mackmyra we presented the expansion and financing plan that we are now undertak-ing. We said at the time that over the 2012–2014 period, our new Gravity-fed Distillery would enter operation and that we would grow. Growth would take place on both existing and new markets and through investments in new products. Mackmyra Whisky Village would be established as a nationally known destination for whisky experiences and Mackmyra would list on First North.

It’s now high time to review how we’ve fared so far.

In December 2011, Mackmyra shares were listed on First North and we opened the Gravity-fed Distillery, which has been in full operation since summer 2012. This has resulted in a multiple increase in our production capacity. We can now build up maturing stocks to cope with the increase in demand that we hope to achieve following the marketing initiatives of last year and coming years.

Our investments have resulted in us becoming established in the Nordic region, Europe and we are on our way to achieving a presence in the global market. During the year this work continued, with a presence established in France and the UK as well as an important breakthrough in Canada. The Cana-dian alcohol monopoly, the LCBO, in Ontario has included The First Edition in its regular product range.

In terms of investments in new products, we have presented our Brukswhisky (The Swedish Whisky) in a new striking design and successfully launched the Vit Hund (White Dog) product and the whisky liqueur Bee. We have also supplied new bottlings of the Special and Moment series. Visitor activities at Mackmyra Whisky Village are growing, reach-ing over 13,000 paying visitors in 2012. Last, but not least, our products have won numerous important accolades. The icing on the cake came in the autumn when we were named European Spirits Producer 2012 by the IWSC, a title of which we are extremely proud.

We have come a long way, but the answer to the question of whether we’ve been successful thus far is both yes and no.

Yes, as we have concentrated our efforts and achieved what we set out to achieve. We have built up the organisation and production facilities that we need to continue to grow. I be-

lieve 2012 will mark something of a milestone in the develop-ment of Mackmyra. Personally, I will remember the year as tough but necessary when we laid the foundations to enable our continued market expan-sion and revenue growth. The future will tell whether I’m right.

No, as we have not achieved the sales and earnings targets we set for the period, even if we adjust earnings for the initia-tives carried out and highlight those parts of cask sales that were not previously visible in reporting.

There are a number of reasons for this, but two are particular-ly key. First, our expansion into new markets has proceeded more slowly than expected. Second, we are now seeing short-term negative earnings effects from our new and broader range of products. The success of Mackmyra Brukswhisky (The Swedish Whisky) has meant that we are selling more bottles but at a lower unit price. In the long run, however, I believe that a stronger and better-known brand will generate ad-ditional sales. On this basis, it is clearly positive that our sales of bottles increased by 15 percent in 2012.

Looking further ahead and further afield, there are a number of signs that interest in whisky and particularly New World

Dear shareholders,

2012 will mark something of a milestone in the develop-ment of Mackmyra. Person-ally, I will remember the year as tough but necessary...

ceo'S report


05. CEO

'S REP

OR

T

Whisky – whisky from countries that historically have not been whisky producers – will continue to grow. Moreover, interest in Mackmyra as a phenomenon and producer appears to be increasing. It’s therefore vital that we now continue to build a presence through methodical sales efforts in our prior-ity markets.

The prizes and accolades that we have received, includ-ing from the IWSC and Wizards of Whisky, show that our products are of the highest quality and that they can compete internationally. Mackmyra’s strong position and interesting offering are also being confirmed by a growing number of key distributors choosing to stock our products in their regular product ranges.

Our ambassadors and cask owners, together with our enthu-siastic and skilled employees, provide us with the strength and stability we need to progress. We also know that together we have the long-term approach and patience needed by a whisky producer that wants to develop. That’s the kind of producer that Mackmyra Svensk Whisky is.

In 2013 we will be focussing on marketing and sales in par-ticular. We look forward to a successful 2013.

Magnus DandanellCEO

We have concentrated our ef-forts and achieved what we set out to achieve. We have built up the organisation and produc-tion facilities that we need to continue to grow.

1998 The founders, eight old classmates, hold a reunion at a cottage in Sälen. Each one brings a bottle of single malt whisky and the idea of creating the first Swedish whisky is born late one night.

1999 After a year of preparations, Mackmyra Svensk Whisky AB is founded in March 1999. A pilot distillery with the necessary licenses is started the same year. The first drops of raw whisky are distilled on 18 December 1999.

2000 Visitor and experience activities are launched at Mackmyra Bruk.

2001 A commercial-scale distillery is built and brought on stream at Mackmyra Bruk.

2002 Mackmyra Reserve is developed and launched.

2003 A main warehouse is built in Bodås, outside Hofors.

2004 Distillery production gradually increases up to the equivalent of 500,000–600,000 bottles a year.

2005 The first bottles of Mackmyra Reserve are sold in December via Systembolaget.

2006–2007 The first bottles of Bottled (Mackmyra Prelude) are sold at Systembolaget and in duty-free shops.

2008 Mackmyra – The First Edition, the company’s first regular bottled product, is launched.

2009 The company presents Vision 2019, its new long-term strategic plan for Mackmyra Whisky Village.

2010 Construction and grand opening of the Forest Store, the first building at Mackmyra Whisky Village. Mackmyra Brukswhisky (The Swedish Whisky) is launched.

2011 Visitor activities begin at Mackmyra Whisky Village, the first bottles are sold in New York and the Gravity-fed Distillery opens. The shares are listed on First North NASDAQ OMX in Stockholm.

2012 Casks are filled with the first drops from the Gravity-fed Distillery. Mackmyra is named European Spirits Producer of the Year by the IWSC and also makes an important break-through into the Canadian market.

MAckMyrA'S hiStory


06.

Gradual introduction into new markets

viSion

To be the natural choice for new whisky experiences.

BuSineSS concept

For people who enjoy the finer things in life in Sweden, the Nordic region and the rest of the world to be offered an at-tractive range of whisky and whisky-related products via the strong Mackmyra brand.

operAtionAl GoAlS 2013–2014

• Strengthen Mackmyra’s position in Sweden, the rest of the Nordic region and the rest of Europe to increase sales.

• Launch at least one new regular product a year at Sys-tembolaget and in neighbouring markets.

• Establish Mackmyra Whisky Village as a nationally known destination for whisky experiences. A permanent visitor centre with tasting opportunities and capacity for up to 50,000 visitors a year will be opened during this period.

• Increase the number of ambassadors, i.e. those who are shareholders and/or cask owners and who spread the word about the Mackmyra brand and products within and outside Sweden.

• Expand Mackmyra whisky on existing markets outside the Nordic region through sustainable sales via estab-lished distribution channels.

• Introduce Mackmyra whisky in selected markets.

BrAnD plAtForM

The Mackmyra brand platform forms the foundation of the company’s activities and also functions as a basis for choosing the company’s direction and product development.

MArket StrAteGy

Since it was founded, Mackmyra has worked on gradually introducing the brand and products to the market. When the business started in Sweden in 1999, Mackmyra adopted a market strategy around building up a customer base and demand by arranging visits to the distillery, organising tast-ings and selling personal whisky casks. This strategy was successful and led to enthusiastic customers who spread the Mackmyra brand throughout Sweden. This development also led to greater spontaneous demand at Systembolaget, which in 2006 decided to accept Mackmyra’s first bottlings for its new products range and in its regular product range from 2009.

The Swedish market still forms the core of the business and is essential for continued expansion abroad. It is therefore important for Mackmyra to continue to grow on the Swedish market and to retain and develop its position as a leading brand in the high-end segments at Systembolaget.

MiSSion

Here comes the new* school in terms of high-quality whisky!

viSion

The natural choice for whisky experi-ences.

vAlueS

Long-term approachAuthenticityCreativityExperienceHigh quality

proDuct

Craftsmanship and a high-class whisky

experience

poSitioninG

Innovation, openness, traceability and local

ingredients

Style

Committed Targeted

ChallengingSmall-scale

Produced by craftsmen

*Combination of new and old: age is not an end in itself. Good, local ingredients, traceability, craftsmanship using new technology, no

additives, maximum volume, hygienic and the opportunity to create personally designed malt whisky.

We De-MAnD More!

BuSineSS MoDel


07.

Growth on new markets is intended to be achieved through the gradual introduction of Mackmyra products in certain carefully selected segments. Growth on new markets is based on the following five steps:

Mackmyra’s growth strategy is based on the following five steps:

1. Preliminary study – the current market is analysed locally.

2. Launch – in the launch phase a distributor/partner is chosen to market and sell parts of the product range. During this stage the potential for introducing personal casks is also assessed.

3. Growth phase – the launch has been successful and co-operation with the distributor/partner is developing well. Marketing of products increases and sales take off.

4. Established – sales of several Mackmyra products take place in a large number of stores.

5. Large volumes – Mackmyra products are well represented on the market and have reached significant volumes for Mackmyra.

From 2013 Mackmyra will also offer personal 30-litre casks for sale within the EU. Cask sales and the experience relating to casks also help drive and spread awareness of Mackmyra’s products internationally.

From 2013 Mackmyra will concentrate its sales activities on existing markets and new markets in Europe.

BuSineSS MoDel

Mackmyra’s bottled products started to be launched outside Sweden as early as 2006 but only to a very small extent, with the initial export destinations being the UK and Denmark. Exports have gone to a growing number of countries as Mackmyra has bottled larger volumes of whisky. Mackmyra whisky is now available in the Nordic region, Western Europe and North America. The strategy has been to use the strong base in Sweden to establish Mackmyra in the neighbouring Nordic countries and in European countries with significant whisky consumption, including the UK, France and Germany. The US is the world’s largest whisky market and, following a preliminary study, Mackmyra therefore chose to establish a foothold in order to be able to develop in this market. The whisky is now available in shops and restaurants in New York and is distributed in three other states. Its experience of working with the Swedish alcohol monopoly Systembolaget in Sweden led to Mackmyra also choosing to launch its whisky in Canada, where two states operate an alcohol monopoly. A preliminary study of the Asian market was also carried out, but for the time being Mackmyra is concentrating its resources on the growing European market.

In connection with the selection of Mackmyra as European Spirits Producer 2012, a decision was taken to increase sales activities in the rest of Europe, including preliminary studies of the markets in Germany, Poland, the Benelux countries, the Netherlands and Luxembourg as an initial step. A launch in Switzerland is also planned in 2013.

GroWth StrAteGy

Mackmyra’s growth strategy is based on marketing the brand and products via several parallel channels that support one another. Greater distribution and awareness of Mackmyra will increase the number of people who can try Mackmyra’s products. In Sweden the marketing of personal casks and the experience relating to casks largely drove demand, including for bottled products. Mackmyra believes that there is corre-sponding potential in Europe.

On existing markets where Mackmyra is already established with significant sales, Mackmyra aims to continue to grow through increased sales of both existing and new products and experiences. Mackmyra is constantly evaluating distribu-tion on its various markets and it takes action as necessary, for example to provide greater market coverage.


08. BuSineSS MoDel

proDuct DiFFerentiAtion

Mackmyra currently offers mature malt whisky in different bottlings and editions, in casks and in bottles. We are also working with product differentiation by developing whisky-related products. So far two whisky-related products have been launched: Vit Hund (White Dog), which is Mackmyra’s unaged bottled whisky and Bee, a Swedish whisky and honey liqueur made from our whisky and organic honey.

StrAteGic reSourceS

Distillery

In December 2011, Mackmyra celebrated the grand opening of the new distillery in Mackmyra Whisky Village outside Gävle. The majority of Mackmyra’s distilling in the second half of 2012 took place at the new distillery. The distillate is of high and consistent quality, enabling Mackmyra to concentrate all of its distilling there from the first quarter of 2013. The distillery at Mackmyra Bruk will in future be used for special production, product development, marketing activities and experiences. It could also provide additional production capacity should the need arise. Total distilling capacity is 2.4 million bottles a year at full operation in both distilleries, 1.8 million bottles of which are at the new distillery.

Maturation storage

Mackmyra takes a long-term and methodical approach to es-tablishing the brand and sales of whisky and whisky-related products in Sweden, the Nordic region and other selected markets. Delivery capacity over time is a key demand from buyers around the world because they are reluctant to see investments in marketing and brand-building go to waste. All whisky producers must therefore be able to guarantee a long-term supply of mature whisky for bottling in order to achieve broad distribution. Over the past five years Mackmyra has therefore produced greater volumes of spirit than it has had sales of mature whisky. The new distillery in Mackmyra Whisky Village has also made it possible to further signifi-cantly increase production.

Mackmyra Whisky village

Experience facilities within the food and drink sector are a growing trend around the world and Mackmyra Whisky Village is therefore strategically important for the Mackmyra brand. The new Gravity-fed Distillery is climate-friendly, has an interesting architectural design and is custom-built to ensure customers can experience the process close up. Visi-tors can watch the distillery operator in action and experi-ence the various stages of the distilling process with all their senses. The Whisky Village also has a smoking facility and floor maltings and whisky storage that provide visitors with a comprehensive experience of whisky production. Those who are interested can also fill their own cask in the distillery basement and put it in storage. The restaurant offers both whisky-related food experiences and whisky tasting.

core SkillS

Mackmyra’s operations are based on its employees’ strong commitment and understanding of the business. Mackmyra depends on the knowledge capital that employees contribute and work with continuously by documenting procedures, processes, recipes and other activities that are key to running the business. Mackmyra’s strategic core skills are Taste and

GroWth By proDuct Group

1999 2002 2006 2009 2012

Whisky-related

Standard

Limited

Cask

Experiences

Experiences involving visits and whisky tastings were how Mackmyra began and they remain an important communica-tion channel for the company. Over the years the company has launched new products and reached both existing and new customers.

cuStoMer relAtionShip

Mackmyra’s business model is based on a close partnership with cask customers, retailers and distributors. Mackmyra’s cask ambassadors are an important part of Mackmyra’s mar-keting strategy. The ambassadors spread the message about Mackmyra and their personal experiences, thereby helping to increase brand and product awareness both in Sweden and abroad.

Mackmyra works through several different channels to provide customers with the opportunity to come into contact with the brand and the products and to further strengthen the sense of unique products. The most important channels for these customers are visits to the Whisky Village, various types of events and digital channels.

With regard to end-customers of bottled products, Mack-myra primarily works in Sweden and internationally through its distributors and local retailers, who own the customer relationship. Marketing that takes place via ambassadors and Mackmyra Whisky Village also helps strengthen customer relationships with this group in the long term, primarily from a Swedish and Nordic perspective.


09.BuSineSS MoDel

Design, Distilling, Aging and Bottling, as well as PR & Commu-nications. In 2012 the organisation added skills in interna-tional marketing, distribution and sales.

customer relations and hospitality

Since its market innovation of personal 30-litre casks, Mack-myra has established unique skills within customer relations and hospitality. The company has successfully developed both its products and its approach to customers in close partnership with Mackmyra’s customers. This has been and continues to be a key success factor for Mackmyra’s sales and brand. The company took another important step in this work in its establishment of Mackmyra Whisky Village as a destination for visitors, with our guides and our other staff meeting our customers on a daily basis when they visit the Gravity-fed Distillery or our restaurant. The customer surveys that Mackmyra continually conducts show that 95 percent of customers are satisfied/highly satisfied, both with the whisky and the experiences offered by Mackmyra.

taste and Design

Mackmyra chose from the start to develop its own whisky recipe. The recipe was based on a systematic development plan over a three-year period and comments on taste and aroma from visiting customers and external experts. The goal was to develop the first Swedish whisky recipe with domes-tic ingredients and Swedish flavours. Mackmyra’s Master Blender has a key role in creating Mackmyra’s different prod-ucts, but groups of several people are engaged in the process of developing the various editions of whisky and systematic documentation is created to ensure continuity.

Mackmyra’s casks are extremely important for the experience and product quality. The small size and high quality of the casks are factors that contribute to more intense taste and faster maturation. The hand-crafted casks made of Swedish oak are a key flavour ingredient in Mackmyra’s whisky.

Important skills have been developed in relation to improving the packaging design and in relation to large-scale deliveries of bottles to customers. All casks and whisky bottlings are carefully assessed. Assessments take place through the analy-sis of delivered products by experts, customers and Mack-myra itself. These analyses and evaluations serve as the basis for continuous improvement while providing feedback on the basic processes, thereby helping to further develop skills within the company. Continual customer surveys provide important feedback from customers, which is used for further development and to improve products.

The finished whisky is sold in various special editions, as well as in the regular products – The First Edition and Mackmyra Brukswhisky (The swedish Whisky). To emphasise the impres-sion of a premium product and to enhance the experience, great care is taken in designing the bottles and packaging.

Distilling, maturation and bottling

Mackmyra has developed its distilling, maturing and bottling skills from the start in the small pilot distillery and pilot stor-age building where the recipes were developed between 1999 and 2002. The business grew into a commercial-scale opera-tion between 2002 and 2011, in part through the distillery at Mackmyra Bruk and the five maturation warehouses that were started up in different parts of Sweden, and in part through the two bottling plants. As of 2013, distilling was concentrated at the Gravity-fed Distillery in Mackmyra Whisky Village.

pr & communication

Mackmyra’s business involves developing high-quality whisky and whisky-related products, as well as to build a global brand with a strong base in Sweden and headquarters in Mackmyra. Therefore the qualities of Swedish craftsmanship and the “genuine” experience are underscored in all prod-ucts and the customer offering. Experts, opinion leaders and customers will be able to visit Mackmyra’s facilities and then share their experiences through various channels in Sweden and abroad.

Communication via www.mackmyra.com, social media, PR and traditional bottle channels such as display at pubs and boarder trade are important for sales of bottles. Cask and experience products, such as visits and tastings in a variety of locations, contribute strongly to brand awareness and to new customers having the opportunity to try Mackmyra. It’s a unique taste that many will like. The IWSC trophy and the whisky village provide a springboard to the rest of Europe as they stimulate significant interest among international coop-eration partners, journalists and customers.

revenue MoDel

Approximately half of the company’s sales are attributable to bottles and half is attributable to casks and experiences. With bottle sales, production is related to the maturing stock, while with sales of casks and experiences production is based on orders. The latter case achieves a positive cash flow, which partially offsets the capital tied up in the mature stock required for the sale of bottles.

price Structure

Approx. 5% Approx. 10% Approx. 20% Approx. 15% Approx. 50%

Barley/maltdelivery

Distilling & filling of casks

together with customers

1 week

Cask maturation

Around 5 years

Bottling/finished

goods inventory

2–8 weeks

Gross margin

Cost of production up to the dotted line is recognised as matur-ing stock on the balance sheet. This chart is for illustration pur-poses only and percentages represent an example that changes depending on the product.


10. MArket overvieW

regulation and history

The Swedish market for the sale of alcoholic drinks is gov-erned by Swedish alcohol legislation, which regulates the market and those organisations operating in production and sales. The sale of bottled products to consumers takes place in Sweden via the retail monopoly Systembolaget and this has affected both the range of products and consumption habits.

Throughout almost all of the 20th century up until 1995 all imports and production of alcohol were also regulated via the state-owned Vin&Sprit, with Systembolaget as the sole cus-tomer. This arrangement governed the entire range of prod-ucts of these two organisations. Up until the statutory import monopoly was scrapped when Sweden joined the EU in 1995, the only way for foreign wine and spirits producers to enter the Swedish market was to use the limited opportunities to sell into it via agents, to hotels, restaurants and the catering sector (HoReCa) and through various duty-free organisations. Direct contact with Systembolaget was forbidden, as was marketing to consumers.

Today the market is made up of hundreds of importers and a number of Swedish producers, while sales take place principally via Systembolaget and to some extent by means of private import. Opportunities for marketing are still limited. Under Swedish alcohol legislation, there is a complete ban on the marketing of alcoholic drinks on Swedish radio and TV, and all marketing must observe particular moderation and may not be “overbearing or selective or encourage the consumption of alcohol” (Swedish Alcohol Act, Chapter 7 sec-tion 1). Neither may it be aimed at children and young people under 25 and commercial advertisements are only allowed in periodicals for products with less than 15 percent alcohol by volume.

Swedish taxes on alcohol are among the highest in the world and are higher than the EU average. There are strong drivers working to harmonise alcohol taxation within the EU, but it is not clear how this will affect Sweden in the longer term.

the Swedish whisky market

Sales of spirits at Systembolaget have fallen over the past 10 years, with the exception of 2009. In 2011, the total volume of spirits sold fell by 2.8 percent to 19.4 million litres. This cor-responds to 4.2 percent of Systembolaget’s total sales, or 22.5 percent in terms of sales value.

Clear spirits are the largest category of spirits at 7.2 million litres, equivalent to 37 percent of the total volume. The whis-ky/whiskey product category is Systembolaget’s second-larg-est product category in terms of volume with 6.3 million litres sold in 2011, or 33 percent of the total volume of sales. Growth in this category was relatively small and in 2011 fell by 3.9 percent in volume. Within this category, however, American and Irish whiskey volumes have performed slightly better, according to Systembolaget’s 2013 launch plan. Historically, the malt whisky sub-category has seen strong growth and although sales volumes fell by 1.5 percent in 2011 consumer interest in new products in the malt whisky category are higher than in other spirits segments. Systembolaget’s plan is consequently to add new products to its range. According to its launch plan, Systembolaget has noticed increased interest in malt whisky with an origin other than Scotland (this is sometimes referred to as New World whisky), especially malt whisky from Sweden and Japan.

the Swedish whisky industry

Interest in producing Swedish whisky is growing and there are currently around 10 Swedish distilleries. Besides Mack-myra, there are two other distilleries producing finished prod-ucts. It will take around another year or few years before the other producers have products ready for distribution. Some also have a business model that is similar to Mackmyra’s cask sales, with small casks that are sold to private individuals.

As an initial step towards forming an industry association, Svenskt Whiskyting (the Swedish Whisky Council) was established in October 2012 by Sweden’s whisky distilleries with the aim of coordinating shared interests in the growing Swedish whisky industry.

Sweden’s Systembolaget has a large selection of whisky pro-duced in countries with a long tradition of whisky production. These are Scotland, the United States, Canada and Ireland. In terms of pricing, Mackmyra’s whisky is positioned in the high-end price segments and competes with both Scottish malt whisky and premium-priced whisky from, for example, Japan.

Mackmyra Brukswhisky (The Swedish Whisky) has been in the top 10 for the premium segment over SEK 350 a bottle since it was first stocked in Systembolaget’s regular product range. The high-end segments entail higher margins for suppliers, as well as lower volumes since demand for products in this price catego-ry is lower. Mackmyra has positioned The First Edition, as well as Moment and Special, which are produced in small editions.

Swedish whisky at the fore-front of new World whisky


11.MArket overvieW

MAckMyrA internAtionAlly

the global whisky market

Some 99 percent of the global market for whisky is outside Sweden. According to the IWSR, approximately 3.2 billion bottles of whisky were consumed around the world in 2009. The largest markets are India, the US, France, the UK, Japan, Spain and Canada. With the exception of India, the largest volumes are mainly produced in the traditional manufactur-ing countries of Scotland, Ireland, the US and Canada. New World whisky still accounts for a relatively small share of global production.

According to research company Euromonitor International, the global whisky market is growing by up to 5% a year. This growth is mainly occurring in the emerging markets in Asia

and the Pacific, especially China and India, where a growing middle class is now starting to take an interest in whisky as an alternative to other alcoholic drinks. Euromonitor also pre-dicts that the interest in more expensive exclusive whiskies will persist, though this segment is expected to grow more slowly. This is happening as a result of the weak economic development, principally in the European market.

Mackmyra is active in the premium segment. To get a picture of the market for this segment, a comparative study can be made of malt whisky and other premium whisky. According to the IWSR, about 80 million bottles of Scotch malt whisky were consumed in 2009. The largest consumption occurred in the US, France, the UK, Taiwan, Germany, Italy and Canada.

In its outlook report from 2011, the IWSR predicts long-term volume growth for Scotch malt whisky of 15 percent

MAckMyrA AnD SySteMBolAGet top-SellerS in 2012

# WhiskySek/

bottle percentage of sales value

excluding• Moment

• Price over SEK 1,000

1 Spirit of Hven Single Malt Whisky First Release 1,895 9%

2 The Macallan 18 Years 1,229 7%

5 Mackmyra Moment Solsken 1,249 4%

7 Mackmyra Moment Skog 1,119 3%

limited edition• Special

• Price SEK 450–800

1 Mackmyra Special 08 handplockat 589 18%

2 Mackmyra Special 09 598 17%

3 Ardbeg Galileo 799 11%

4 Lagavulin Distillers Edition 729 4%

Super premium• The First Edition


1 Mackmyra the First edition 498 10%

2 Lagavulin 16 Years 579 9%

3 The Macallan 12 Years 499 7%

4 Ardbeg Ten Years 485 6%

premium• Mackmyra Brukswhisky (The Swedish Whisky)


1 Bowmore 12 Years 399 10%

2 Laphroaig 10 Years 399 9%

3 Caol Ila 12 Years 419 8%

8 Mackmyra Brukswhisky (the Swedish Whisky) 379 6%

Source: Systembolaget sales statistics 2012. Systembolaget’s product categorisation has changed slightly compared with previous years and is consequently not entirely comparable with sales statistics for 2011.


12. MArket overvieW

from 2009 to 2015. Among those countries where growth is expected to be highest during the period are the US (18 per-cent), Canada (17 percent), Taiwan (14 percent) and Germany (7 percent). Very strong growth, albeit from lower levels, is also expected in India (199 percent) and China (114 percent).

neW WorlD WhiSky

In terms of the global market up until 2016, the IWSR believes that New World whisky producers will continue to take mar-ket share at the expense of producer countries like Scotland, the US and Canada. Limited access to premium whisky is one of the restricting factors for growth in the high-end segment of whisky from the US, Ireland and India.

American whisky producers have traditionally focussed on their large domestic market and have only started to take an interest in exports relatively recently. Moreover, in part due to a lack of matured spirit, the American brands have not been able to market themselves in the premium and super-premium segments. A number of large American distilleries are now increasing their production capacity.

The producer countries of Ireland and India are also increas-ing their production volumes and continuing to take market share. The potential domestic market is huge for Indian pro-ducers. Irish whisky has shown strong growth in Europe, but its market share in Asia and Latin America is much weaker. A number of Irish distilleries are now launching a classic category with a modern twist, “single pot still”, which marks a return to production origins with the use of both malted and unmalted barley.

trenDS

“Premiumisation” and “connoisseurship” are two continu-ing strong trends driving the single malt market. Premium consumers demand a high level of credibility for the product and want to know the history of the brand. They are looking for origins, traceability and craftsmanship in manufacturing. This offers further opportunities for New World whisky and the number of micro-distilleries is increasing. Although the volumes being produced are still small overall, this is driving interest in both whisky and new approaches to production.

Mackmyra’s market position

The growing interest in New World whisky, and its craftsman-ship and small-scale production, is benefitting Mackmyra, which uses high-quality local ingredients in a climate-friendly production process and also has what people are looking for in the form of its own distinct “Swedish” style. In addition, through its increase in stocks and its new Gravity-fed Distill-ery, Mackmyra now has production and supply capacity that is significantly larger than many of the recently established small distilleries.

Since it was founded in 1999, Mackmyra has also developed considerable experience in terms of production, supply and customer relations.

Mackmyra’s whisky has been well received by a number of markets outside Sweden. A number of its products have re-ceived international recognition, and the Mackmyra distillery was named both European Spirit Producer 2012 and European Distiller 2012. Its international sales are still relatively small, but this means that the brand is gradually being developed, which is important in order to increase sales over time.

Mackmyra is currently represented in both the Nordic region and elsewhere in Europe, where it has broken into markets including France and the UK. Mackmyra is also available in Canada and New York. The company is continually conduct-ing market assessments, although over the coming year it intends to focus its resources on further developing its pres-ence in the European market.

An important aspect of its international expansion involves linking suitable distributors and importers to the company in order to increase contacts in local markets. In connection with the selection of Mackmyra as European Spirits Producer 2012, a decision was taken to increase sales activities in the rest of Europe, including preliminary studies of the markets in Germany, Poland, the Benelux countries, the Netherlands and Luxembourg as an initial step. A launch in Switzerland is also planned in 2013. Mackmyra’s establishment of a subsidiary in Germany makes the Mackmyra Reserve personal cask offer-ing available to a larger share of the European market.

Overall Mackmyra has good opportunities to continue to grow on the Swedish whisky market and for continued success in establishing itself internationally. Local ingredients, its crafts-

WizArDS oF WhiSky – europeAn WizArD DiStiller oF the yeAr Four entries, four medals, and judging from the samples I tasted recently, plenty more to come. Talk to

Swedes and they’re a bit sniffy about Mackmyra, partly one suspects through envy, partly because they’re perfectionists and have staunch ideas as to how they’d make whisky, and partially because the early re-leases from the distillery were not good. But they were released under the banner names Preludium and Privus, clearly indicators that they weren’t the done deal. And in the last three years the distillery has got better and better, to the point that a package arriving from the distillery is a cause for considerable excitement.”

Dominic roskrow, Wizards of whisky

Dominic Roskrow is the former editor of Whisky Magazine and now writes The World Whisky Review. His The Wizards of Whisky competition aims to be the best indicatorof what is happening in the world of whisky outside Scotland.


13.MArket overvieW

MAckMyrA eStABliSheD in cAnADA

Canada is one of the markets that Mackmyra identified as being of particular interest for an international launch of Swedish whisky.

The LCBO is the Canadian province of Ontario's equivalent of Swe-den’s Systembolaget and the largest purchaser of alcoholic bever-ages worldwide, with over 600 stores. In spring 2012 the LCBO named Mackmyra Distillery Feature of the year, which resulted in it buying in a number of different bottlings and marketing these together.

LCBO chose four whiskies that had all received gold medals in whisky competitions: Mackmyra Brukswhisky (The Swedish Whis-ky), The First Edition, Mackmyra Special:04 and Moment Medvind. Sales in Ontario went so well that in the autumn the LCBO took the further step of accept-ing The First Edition into its regular line of products, which represented further significant progress for Mackmyra.

“Mackmyra’s whisky has attract-ed a lot of attention among whisky enthusiasts, reviewers and the media. The LCBO has a special selection in certain stores, where we offer prize-winning, artisan and small-scale whiskies from all over the world and Mackmyra fits that description perfectly,” says Greg Tranah, Purchasing Manager at the LCBO.

“Mackmyra also offers us the opportunity to experience their “terroir ”, which is a term primarily associated with wine but which is clear in Mackmyra’s whisky and which results in an entirely unique taste experience. And the whole story behind the founding and development of Mackmyra is great, with personal involve-ment among customers and the public that has been an important aspect of the distillery’s success,” he adds.

“It’s clearly an important milestone for us and for Swedish whisky when the world’s largest purchaser of spirits decides to buy in Mackmyra. The LCBO can choose whisky from anywhere in the world, so we’re really holding our own,” says Mackmyra’s Market-ing Manager Annika Hampf Fogtmann.

manship, production and its unique recipe, together with com-petitive production capacity, all constitute key success factors.

The price of a bottle of whisky is made up of four main parts:

• Production costs

• Distribution costs

• Alcohol tax

• VAT

Alcohol tax and VAT depend on the specific market and are regulated by legislation in each country. Distribution costs include logistics costs and compensation to any importers or agents and retailers. Costs for marketing may be taken into account by the manufacturer, importer or distributor, and will vary from case to case.

In Sweden, retail is regulated by Systembolaget, which charg-es relatively low distribution and retail margins. Abroad, high taxes on alcohol are often replaced by higher distribution, import and retail costs. This situation also applies to duty-free markets; the tax portion does not exist, but compensation to the distributor is often higher.

revenue DiStriBution per Bottle SolD

Distributor (SEK of retail price)

SEK

500

400

300

200

100

0

Systembolaget (SEK)

VAT (SEK)

Alcohol tax (SEK)

SEK

500

400

300

200

100

0

The chart illustrates the revenue distribution of whisky in all price catego-ries for sales in Sweden, with lower consumer prices on the left and higher consumer prices on the right.

Sources in this section:

The IWSR Whisky Forecast Report 2009-2013,

IWSR Global market review of malt whisky forecasts to 2015, 2011 edition

IWSR Global market review of non-Scotch whiskies (US and Bourbon, Irish, Cana-dian, Indian and Japanese) 2011 edition

Euromonitor International: Whiskies Growth Opportunities in All Markets 2012


14. the proDuct rAnGe

Casks and Experiences form the basis of Mackmyra’s range of products. As a result of the sale of personal 30-litre casks and related services such as visits and whisky tastings Mackmyra creates ambassadors who contribute to strengthening and spreading the brand on the Swedish market and internation-ally.

The offering enables customers to create and store their own unique malt whisky at Mackmyra’s Forest Store, located in Mackmyra Whisky Village, or in one of the local storage facilities located on the Fjäderholm Islands in the Stockholm Archipelago, at Häckeberga Manor in Skåne, in the west-coast seaside town of Smögen or in Mackmyra’s Mine Store in Bodås in the province of Gästrikland.

the cask offering – Mackmyra reserve

Mackmyra’s cask offering celebrated its 10th anniversary in 2012. Since it began in 2002 over 11,000 casks have been sold to customers, mainly in Sweden. Several thousand of the casks that have been sold have already been bottled and the bottles delivered to customers. According to Mackmyra’s own customer surveys, 95 percent of customers say they are satis-fied or more than satisfied with their whisky experience, dem-onstrating that this is a well-developed and proven concept.

Customers who sign up for a 30-litre cask select what whisky recipe they would like (smokey or non-smokey whisky) and what type of oak cask to store it in. Mackmyra currently offers four different types of cask. The cask is paid for at the point of sign-up and the price includes a cask care fee which covers the costs of storage rental and insurance.

When the distillate is produced, customers are invited in to fill their own casks and to see their own cask placed in stor-age. The aging period is normally five years, during which the

taste, aroma and colour develop. Customers can taste their whisky and follow its development from distillate to finished malt whisky. While the whisky is maturing, customers are also offered the opportunity to participate in various events arranged by Mackmyra. When the customer decides that the whisky is ready, Mackmyra bottles the whisky and delivers them to the customer. Alcohol tax, VAT and transport costs are payable when the bottles are delivered. Up until 2013 de-liveries were available either in Sweden or via Juuls Vinhan-del in Denmark.

Cask sales are being further developed in 2013 to also drive cask sales in the rest of Europe. From the second quarter of 2013 the cask experience will therefore be offered across most of the EU via the wholly owned newly established subsidi-ary Mackmyra Svensk Whisky GmbH in Germany. This new company will also enable whisky to be delivered throughout the EU. In conjunction with this initiative, the offering will be simplified and developed.


The Whisky Village provides both cask customers and others who are interested with the opportunity to see and experi-ence Mackmyra from the inside. The new distillery at the Whisky Village not only substantially increases production capacity, it also strengthens the customer experience as it has been specially built to receive visitors. This means that cus-tomers and other visitors can take a guided tour and follow the production process from distillation to maturation, and can also taste various products at the restaurant.

In summer 2012 a fully licensed restaurant was established at Mackmyra Whisky Village. The restaurant, which offers whisky-inspired delicacies, complements the visitor and event business.

casks and experiences

the quAlity oF MAckMyrA’S cASk proDuctS hAS Been AppreciAteD AnD recoGniSeD over the yeArS, receivinG prizeS in Both SWeDen AnD internAtionAlly:

• Gold 2011 – Mackmyra Reserve Elegant Svensk Ek 30-litre cask – IWSC*

• Silver 2011 - Mackmyra Reserve Rök Bourbon 30-litre cask - IWSC*

• Gold 2009 - Mackmyra Reserve Elegant Bourbon 30-litre cask - Stockholm Beer and Whisky Festival

• Silver 2007 - Mackmyra Reserve Elegant Bourbon - IWSC*

*International Wine and Spirits Competition


15.the proDuct rAnGe

Mackmyra Whisky Village is therefore an important platform for marketing and brand development. The number of visitors increased substantially during the year, amounting to more than 13,000 visitors (10,000). The aim is to gradually continue to develop Mackmyra Whisky Village into an attraction cen-tre with a focus on whisky production.

Sales

Two major and successful sales campaigns were conducted in 2012. In the first and second quarters we conducted the “The First Drops” campaign, referring to the casks being filled with the first drops produced at the Gravity-fed distillery. At the end of the year we conducted the “10 Year Reserve” campaign. Customer surveys in recent years show that 95 percent of cask owners are satisfied or highly satisfied with both the experience of their cask and the quality of the whisky.

Sales for this business area amounted to SEK 30.4m (29.2) for 2012, an increase of 4 percent (2) on the previous year. If the sales value of cask reservations not yet recognised as revenue is included, cask sales increased by 11 percent (4) to SEK 35.1m (31.7). From 2013, 100 percent of cask sales will be reported as sales during the period that the customer actu-ally reserved a cask, compared with 75 percent previously. For those casks that up to the 2012 financial year had been reserved for delivery via Systembolaget in Sweden (approxi-mately 25 percent of volume), sales and earnings were first reported when the tapped bottles have been delivered to the customer, i.e. four to five years after the reservation was made. The sales value of these reservations for 2012 was SEK 4.6m (2.6).

Sekm 2012 2011

Net sales Casks and Experiences 30.4 29.0

Sales value of casks reserved for delivery via Systembolaget 4.6 2.6

total sales value 35.1 31.7

Growth 11% 4%

10th AnniverSAry

In summer 2012 Mackmyra celebrated 10 years of its cask sales of Mackmyra Reserve. It started out as a mad idea, but it emerged that whisky matured in a 30-litre cask for a relatively short period of time produced a good whisky, becoming something of a popular movement in whisky circles. Over 11,000 casks have been filled since it began. Many customers own casks jointly, some casks are owned by one individual, while a few customers have up to 10 casks waiting to be tapped.

The unique arrangement of the cask offering has developed into a core element of Mackmyra’s business. It’s the actual experience of owning your own 30-litre cask of whisky, of conducting tastings as it matures and finally experiencing the feeling of receiving your very own whisky, bottled and delivered to your home, that makes Mackmyra customers so loyal. Customers who become ambassa-dors for the brand. But casks sales are more than that: while the whisky is maturing these ambassadors are offered opportunities to participate in events organised by Mackmyra. These events can be anything from tastings of a customer’s own cask to trips, which have included a visit to the oak forest on Visingsö. As customers pay for the cask when it is filled, this generates positive cash flow that creates financial balance and strength for what is usually a highly capital-intensive business. Over the years the offering has, in close cooperation with customers and ambassadors, been devel-oped and enhanced with new unique recipes and casks.

A significant aspect of the cask experience is that customers can choose where the cask is stored. When the first cask was filled in 2002 it was stored in a small storage facility near the distillery. As early as 2003 we opened the storage facility on the Fjäderholm Islands, which was very attractive for customers in the Stock-holm area. Having the cask located nearby was clearly of interest to cask owners, which is why we opened the storage facility at Häckeberga Manor in Skåne in 2006 and in Smögen on the west coast of Sweden in 2007. Since 2010 a large percentage of customer casks have been stored in the Forest Store at Mackmyra Whisky Village, as well as in Mackmyra’s maturation storage facility in Bodås Mine.

We don’t know what the full potential of Mackmyra Reserve is, but the capacity, desire and customer interest exists, so we look forward to continuing this excit-ing journey. In 2013 we are also taking the step of offering Mackmyra Reserve to customers throughout the EU.


16.

the offering

Mackmyra’s bottled whisky has been stocked in Systembola-get’s product range and in pubs and restaurants in Sweden since 2006. Mackmyra now has a broad product portfolio with a focus on higher-end price segments. The core of the product range consists of Mackmyra Brukswhisky (The Swedish Whisky) and The First Edition which are stocked in Systembolaget’s regular product line. These two items are complemented by the Special Series, in which each bottling has an individual and unique character, and the Moment Se-ries, in which whisky from selected casks is bottled in small and exclusive series.

In autumn 2011 Mackmyra launched Vit Hund (White Dog), an unaged, rich, high-quality barley distillate. In November 2012 it launched Bee, an entirely new whisky and honey liqueur. Bee has been well received and has been part of Systembola-get’s regular product range since March 2013. Vit Hund (White Dog) and Bee Mackmyra’s first whisky-related products, that is products that are not classed as whisky but that are based on Mackmyra’s whisky know-how. The aim is to launch at

least one new product for Systembolaget’s regular product range each year.

Markets

In order to grow sales, Mackmyra’s strategy is to increase distribution and awareness so that more people can try Mack-myra’s products.

Mackmyra currently has a strong position in Sweden. In De-cember 2012 it signed a distribution agreement with Galatea Spirits AB, which will market products to hotels and restau-rants throughout Sweden. The company has also continued to work on further establishing its brand on select markets outside Sweden, both in the Nordic region and further afield. The company’s products are included in the “available to order” range in Finland’s alcohol retail monopoly, while Nor-way’s Vinmonopolet stocks The First Edition. Valora Trade is Mackmyra’s new distribution partner in Denmark as of March 2013. During the year Mackmyra increased its presence in the travel retail sector in border trade around the Baltic, which helped increase sales.

Bottles business area

the proDuct rAnGe

Pilot studie

Pilot studie

Sweden and neighbouring markets

Select markets outside the Nordic region

Products in speciality shops

Sales take off Products in a large number of stores

Several products in a large number of store

Launch Growth phase Established Larger volumes

Sweden

Market

Norway

Denmark

Finland

Border trade

Great Britain

Canada

France

New York

Asia

Germany, Poland,Benelux, Switzerland


17.the proDuct rAnGethe FirSt eDitionretAil price: Sek 498

Alcohol content: 46.1% VOL

voluMe: 70 CL

proDuct lAunch: 2008

SoMe oF the AWArDS receiveD:

– IWSC GOLD 2011,

– WIzARDS OF WHISKY SILVER 2012

Roasted Swedish oak, soft vanilla and dried fruit. Small hand-crafted casks, stored with care. The First Edition has a spicy aroma and a fruity elegant taste with notes of citrus and caramel.


18. the proDuct rAnGe

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

Q1 Q2 Q3 Q4

2010 2011 2012

SAleS per quArter NuMBER OF BOTTLES

The number of bottles sold in 2012 increased by 15 percent. All quarters showed a substantial increase compared with the previ-ous year.

Sales in the UK take place via The Whisky Shop chain, albeit still in small volumes. In the autumn French chain Nicolas bought in Mackmyra Brukswhisky (The Swedish Whisky) for its special 2012/2013 Christmas range. With over 450 shops, Nicolas is one of France’s largest and oldest chains. Mackmy-ra is constantly evaluating distribution on its various markets and takes action as necessary.

In connection with the selection of Mackmyra as European Spirits Producer 2012, a decision was taken to increase sales activities in the rest of Europe, including preliminary studies of the markets in Germany, Poland, the Benelux countries, the Netherlands and Luxembourg as an initial step. A launch in Switzerland is also planned in 2013.

Outside Europe, Mackmyra was named Distillery Feature of the year by the LCBO, the alcohol retail monopoly of Canada’s province of Ontario. The First Edition will be included in their regular product range from 2013. The LCBO has more than 600 stores in the province, which has a population of 12 mil-lion.

In the US, Opici Wine Company has distributed Mackmyra’s products in New York since spring 2012. These sales are increasing, but the volumes are still small.

In 2012 Mackmyra also carried out a preliminary study of the whisky market in Asia. However, the company decided to postpone any further expansion and to instead concentrate the company’s resources on the European market.

Sales

Overall sales for the year were boosted by the strong sales of Mackmyra Brukswhisky (The Swedish Whisky). The whisky, which was launched in 2010, has enjoyed significant success and accounts for a growing share of Mackmyra’s total sales. This has resulted in a change in product mix, with more bot-tles sold but lower average revenue per bottle. However, in the long term increased sales are expected to strengthen the brand and contribute to greater demand for other products in the range.

Sales of bottles, excluding alcohol tax, amounted for the full year to SEK 33.8m (34.7), 3 percent (1) lower than the previous year.

In 2012 the total number of bottles sold rose by 15 percent (3) to 205,400 bottles compared with 179,000 in the previous

year. Mackmyra Brukswhisky (The Swedish Whisky) performed well, increasing by 60 percent on 2011. The new whisky liqueur Bee, which was launched in autumn 2012, was well received and was included in Systembolaget’s top-selling new liqueurs. Most of Mackmyra’s other products continued to show increasing sales figures, while sales of The First Edition fell slightly on the previous year. The First Edition, however, retains a strong market position and, as in 2011, was System-bolaget’s leading malt whisky product in the SEK 450–700 price point.

Awards and recognition

Awards at international competitions underscore the high quality of Mackmyra’s whisky and are important in contacts with purchasers around the world. Awards and recognition increase awareness of Mackmyra’s products, which leads to more people trying our whisky. The most exciting award last year was Mackmyra being named European Spirits Pro-ducer 2012 by the International Wine & Spirits Competition (IWSC). This is the first time that a Nordic spirits producer has received this award. The IWSC is one of the oldest and most prestigious wine and spirits competitions in the world and being named European Spirits Producer is the result of the two gold and three silver medals that Mackmyra's whisky garnered in this year's competition.


19.

The award of Distiller of the Year from the smaller and more recent Wizards of Whisky competition confirms that Mack-myra has a made an impression internationally. Mackmyra’s whisky received two first prizes and two second prizes in this competition.

The new design for Mackmyra Brukswhisky (The Swedish Whisky) also achieved international recognition, winning second prize in the International Spirits Challenge (ISC).

MAckMyrA ShoWereD With internAtionAl AWArDS

London was not only the venue for the Olympic Games in summer 2012. The city also hosted the International Wine & Spirit Competi-tion (IWSC), the world’s largest and most prestigious competition for spirits. Each year the IWSC, established in 1969, receives en-tries from more than 90 countries. The purpose of the competition is to highlight outstanding, high-quality drinks. All entries undergo both technical analysis and blind tasting.

IWSC 2012 named Mackmyra Svensk Whisky European Spirits Producer of the Year, the first and hitherto only Nordic spirits producer to receive the award. The award was the culmination of a total of five prizes won by Mackmyra products. Competitors included renowned and large distilleries such as Old Bushmill and Cooleys from Ireland.

Mackmyra has won a number of IWSC prizes in recent years and these were added to in 2012. Mackmyra’s gold-medal winners were two bottlings, Mackmyra Special:08 and Mackmyra Moment Skog. Another three of our bottlings competed and were rewarded for their character and taste, with Special:07, Moment Solsken and Mackmyra Brukswhisky (The Swedish Whisky) all taking second prize.

“The fact that we win gold medals for new bottlings year after year shows that we’re maintaining the very highest quality in all areas. An IWSC gold medal is a real mark of quality and we’re very proud of the prizes we’ve received. They spur us on to be the best,” says Magnus Dandanell, CEO and co-founder of Mackmyra.

“The award also meant that we were included in the list of nomina-tions for Distiller of the Year Worldwide. That prize went deserv-edly to Glenmorangie, but just competing alongside a company like that is a big deal for a small distillery from Sweden,” says Mack-myra’s Master Blender Angela D’Orazio, who proudly received the award at the gala evening in London.

In the autumn the Wizards of Whisky competition also awarded Mackmyra two first prizes and two second prizes, as well as nam-ing Mackmyra Distiller of the Year 2012.

“It’s especially great as it’s a prize that rewards quality and crafts-manship. It demonstrates that we can compete with both large, well-known distilleries and small-scale operations. We have a foot in each camp,” says Magnus Dandanell.

the proDuct rAnGe

Mackmyra’s Master Blender Angela D'Orazio proudly displays the award for European Spirits Producer 2012 from IWSC.

prizeS in 2012

• iWSc Gold Medal: Mackmyra Moment Skog

• iWSc Silver Medal: Moment Solsken, Special:07, Mackmyra Brukswhisky (The Swedish Whisky)

• Wizards of Whisky Gold Medal: Mackmyra Brukswhisky (The Swedish Whisky), Moment Skog

• Wizards of Whisky Silver Medal: The First Edition, Special:08

• iSc packaging Award Silver Medal: Mackmyra Brukswhisky (The Swedish Whisky)

ISC12 D&P Slv Medal.indd 1 03/08/2012 12:24

Sweden’s First Scotch-Style Whisky is Delicious

We got our hands on a bottle of The First Edition, Mackmyra’s maiden voyage into single malt whisky. Aged in handcrafted, Swedish oak barrels, utilizing peat from a bog nearby the Mackmyra distillery, this whisky is small batch and distinctly Swedish. This whisky […] is much more in tune with what we want out of a single malt. It is highly drinkable, appeals to multiple palates and will bring a smile to any bourbon drinker’s face.”

huffington post, 29 october 2012


20. proDuction

Gravity-fed distillery enters operationThe end of 2011 saw the opening of the new distillery at Mackmyra Whisky Village. In summer 2012 the distillery came on stream and continually supplied the correct quality and good volumes. The Gravity-fed Distillery is Mackmyra’s third distillery, the pilot facility used between 1999 and 2002 being the first and the current distillery at Mackmyra Bruk the second.

The Gravity-fed Distillery has been custom-built for the ef-ficient production of distillate and also to be able to receive groups of visitors. This means that as well as being a produc-tion facility, it also provides Mackmyra with an effective marketing tool. Instead of a traditional distillery, Mackmyra chose to build a tall distillery. At 35 meters high, the distillery has become something of a landmark, and above all it enables Mackmyra to use gravity in the distillation process.

DiStillinG

The Gravity-fed Distillery provides Mackmyra total annual production capacity of 2.4 million bottles of spirit with an alcohol strength of 70 percent. In 2012 Mackmyra distilled a total of 1,001,000 bottles (525,000). The majority, around 60 percent, of this was distilled in the Gravity-fed Distillery. This means the new distillery accounted for the bulk of distilling in the second half of the year.

As a result of the new distillery, the rate of distilling increased significantly at the end of the third quarter and slightly more in the final quarter of the year. The new facility produces a consistently high-quality product. This also makes it easier to maintain an even rate of production, leading to greater efficiency.

The majority of the spirit produced was put into casks to form the basis of Mackmyra’s whisky products. Around 10 percent of the volume was used to fill 30-litre casks ordered by customers and a smaller additional share was used for the whisky-related products Vit Hund (White Dog) and Bee.

From the first quarter of 2013 Mackmyra will concentrate all its distilling at the Gravity-fed Distillery. The distillery at Mackmyra Bruk will in future be used for special production, marketing activities and experiences. It could also provide additional production capacity should the need arise.

MAturAtion StorAGe

In order for the spirit produced at a distillery to be called whisky, it must be aged in wooden casks for a minimum of three years. However, the spirit is normally stored for five years or more before the end-product is ready for sale. Mack-myra’s whisky is usually delivered after five years’ matura-tion, but it also has products that undergo a longer matura-tion process.

The long aging period places stringent demands on the relationship between future sales and production. Sufficient production capacity and adequate stocks are essential, not only to meet increased demand but also to attract retailers and distributors who require stability and reliable supply. Production and supply capacity is also extremely important for breaking into new markets. However, large stocks result in more capital being tied up, which has a negative effect on cash flow as stocks are being built up.

Valuation of the maturing stock is based on production costs. Production costs include the cost of storage for the period until the whisky is ready for sale. The larger capacity of the new Gravity-fed Distillery enables the maturing stocks to grow at a faster rate, enabling Mackmyra to meet assessed future demand.

MAturAtion AGeinG Structure THOuSANDS OF BOTTLES 31 DEC 2012

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The size of Mackmyra’s maturing stock is designed to meet fu-ture demand and provides the basis for the current international product launch.


21.proDuctionthe SWeDiSh WhiSkyretAil price: SEK 379

Alcohol content: 41.4% VOL

voluMe: 70 CL

proDuct lAunch: MARCH 2010

SoMe oF the AWArDS receiveD:

– IWSC GOLD MEDAL 2010

– EuROPEAN WHISKY OF THE YEAR JIM MuRRAY'S WHISKY BIBLE 2011

– WIzARDS OF WHISKY GOLD MEDAL 2012

Mackmyra Brukswhisky (The Swedish Whisky) is a well-balanced whisky with a young, fruity character and a spicy hint of toffee. It is distinguished for its aromas of butterscotch, liquorice, citrus, pear, sweet banana and mint.


22. proDuction

During 2012, the value of Mackmyra’s maturing stock in-creased by 35 percent (13) or SEK 36.2m (11.7), to a total of SEK 138.7m at 31 December 2012, compared with SEK 102.5m as at 31 December 2011. Mackmyra currently has production and stock capacity to fully meet increased demand for Swed-ish whisky over the coming years.

The whisky ageing process and quality largely depend on the cask in which the whisky is stored and its size and quality. The smaller the cask, the faster and more intense the ageing will be. The oak of which the cask is made has a significant effect on the whisky, and it is usually said that around half of a whisky’s flavour comes from the cask in which it is stored. Whisky that becomes bottled Mackmyra products is aged mainly in 200- and 100-litre casks, unlike many distilleries which use casks of up to 700 litres. What’s more, Mackmyra always endeavours to ensure optimum quality in its casks and always uses first fill, that is, casks that have been used once before for storage, or brand new casks. This results in the products having a shorter time to market compared with many other distilleries. The casks used for Mackmyra’s bot-tled products are primarily stored in the main store at Bodås Mine in the province of Gästrikland.

The personal customer cask, Mackmyra Reserve, is principally a 30-litre cask, which results in whisky of the highest quality after as little as three to five years of ageing. Customers are currently offered four different types of casks, all of which are hand-crafted in either Sweden or Spain. The casks are stored in the Forest Store at Mackmyra Whisky Village or in one of Mackmyra’s other stores on the Fjäderholm Islands in the Stockholm Archipelago, at Häckeberga Manor in Skåne or in Smögen.

product development

The product portfolio is continually being developed, both in terms of the actual product, packaging and the product range. The company plans to launch at least one product each year in the bottles business area. In 2012 the company launched the whisky and honey liqueur Bee and in 2011 it introducedVit Hund (White Dog). There are also regular new editions of the more exclusive whisky series Special and Moment.

As part of its continued efforts to establish its prize-winning Mackmyra Brukswhisky (The Swedish Whisky) internationally this product was given a new design that recounts the story of Mackmyra and Swedish whisky.

MAckMyrA AnD GAlAteA proviDe SWeDiSh WhiSky to SWeDiSh hotelS AnD reStAurAntS

Since the start of 2013 Mackmyra has established a partnership with drinks importer and distributor Galatea Spirits. Together, both companies will work to supply the important Swedish hotel and restaurant sector with a full range of Mackmyra’s products.

Galatea is Scandinavia’s leading beer importer and owns numer-ous Swedish brands including Three Towns, Arboga, Tegnér & Son, the micro-brewed S:t Eriks and Ripa mulled wine. Galatea also distributes more than 100 well-known brands from all over the world, including various varieties of whisky.

“The partnership with Galatea creates new opportunities for us to market our whisky to restaurants all over Sweden, which is something we couldn’t do by ourselves. Its experience in building brands, its talented sales organisation and its exciting product portfolio make Galatea the perfect partner for us,” says Magnus Dandanell, CEO and co-founder of Mackmyra Svensk Whisky AB.

The partnership provides Mackmyra, which previously had its own small in-house sales department for hotels and restaurants, with access to both a larger sales organisation and to Galatea’s ex-isting customer base. The partnership also enables Mackmyra to benefit from Galatea’s know-how in the practicalities of building brands for the restaurant sector.

“Galatea Spirits has a strong interest in Swedish artisan-produced drinks and we’re very pleased to be working with Mackmyra. Our companies share a passion for developing new groundbreaking products for our consumers. Having Sweden’s leading whisky in our range completes our offering to restaurants,” says Mats Folkesson, Deputy CEO of Galatea Spirits AB.


23.environMent

climate-friendly whisky – 45% reduction in energy consumptionMackmyra’s environmental impact is relatively limited, but it relates primarily to two areas; actual production at the distillery at Mackmyra Whisky Village and the transpor-tation of products between storage and to and from distributors.

Care for the environment is an important aspect of the Mackmyra brand and philoso-phy. When the company started planning and designing its new distillery, it took great pains to create a production facility that not only had a high production capacity but that was also as energy-efficient and eco-friendly as possible.

This work resulted in the Gravity-fed Distillery, a unique distillery which rises 35 me-tres into the air, above the fir-tree tops of Mackmyra Whisky Village. The distillery uses gravity to drive the process.

Malt and water are fed in at the top of the building. Assisted by gravity, this then passes through the system of pipes, the yeast vessel and boilers. The bottom of the distillery has space for filling both customers’ pre-ordered casks and the casks that form the basis for Mackmyra’s production of bottled whisky. The use of gravity reduces the need for moving parts, which cuts energy consumption and maintenance costs.

But more importantly for the environment, Mackmyra efficiently reuses heat in the new distillery’s process. The hot water that is used comes from a biomass pellet-fired boiler located just outside the distillery. A number of accumulator tanks and heat exchangers make efficient use of the heat that is not utilised. Excess heat is then used in the whisky production, as well as to heat the building and hot water.

A modern management system monitors and controls both production and the property’s systems, from yeast times and temperature to lighting and fans. This provides constant control and monitoring of energy consump-tion and environmental performance.

The dregs, the solid residue that leaches from the wort before it moves on to distillation, have a high energy content and are therefore used in a partnership with the Swedish University of Agricultural Sciences in Uppsala to produce biogas.

The total energy requirement for the distillery amounts to 2.2 gigawatt-hours a year, or 2.2 kilowatt-hours per bottle produced. This represents a reduction in energy consumption of 45 percent per bottle compared with the previous production facility at Mackmyra Bruk.

Other environmental impact consists primarily of transport, both of the casks ordered by customers to and from the storage facilities around the country and extensive transportation of filled bottles within Sweden and internationally. Mackmyra therefore seeks the most cost-effective and energy-efficient transport and logistical solutions, which are also essential as transport needs will increase as sales grow.


24.BeeretAil price: Sek 229

Alcohol content: 22% VOL

voluMe: 50 CL

proDuct lAunch: 2012

Bee is a Swedish whisky and honey liqueur made from Swedish whisky and organic honey. The honey is pro-duced locally around Gävle and Valbo and consists of dandelion, linden and forest honey with a hint of raspberry flower.


25.

Five-year summaryKey figures 2012 2011 2010 2009 2008

Net sales, SEKm 1) 82.3 81.7 80.3 78.6 66.4

Revenue growth 1% 2% 2% 18% 60%

Net sales excluding alcohol tax, SEKm 63.9 62.3 61.3 61.5 52.9

Revenue growth excluding alcohol tax, SEKm 3% 2% 0% 16% 48%

Gross profit/loss, SEKm 47.3 41.0 42.7 40.7 34.3

Gross profit margin 2) 58% 50% 53% 52% 52%

Operating profit/loss, SEKm -1.7 -0.7 6.5 13.7 10.4

Profit/loss after tax, SEKm -5.3 -3.8 3.5 7.8 5.3

Change in maturing stocks, SEKm 36.2 11.7 11.7 14.4 5.4

Change in maturing stocks 35% 13% 15% 22% 9%

Investments, SEKm (parent company) 32.8 57.7 37.0 8.8 11.3

Cash flow, SEKm (parent company) -24.4 16.3 3.2 -0.1 -9.3

Liquid ratio 95% 151% 98% 92% 119%

Interest coverage ratio (times) -0.2 -0.2 5.0 8.9 4.7

Equity, SEKm 172.7 175.0 98.3 62.0 54.2

Equity per share, SEK 42.37 43.59 33.16 26.44 23.13

Equity ratio 54% 61% 48% 43% 41%

Return on equity neg neg 4% 13% 10%

Return on capital employed neg neg 5% 14% 12%

No. of shares before dilution 4,075,396 4,015,396 2,965,040 2,343,594 2,343,594

No. of shares after full dilution 4,177,993 4,145,996 2,975,640 2,670,618 2,670,618

Earnings per share before full dilution, SEK SEK -1.31 SEK -0.94 SEK 1.17 SEK 3.33 SEK 2.30

Fully diluted earnings per share, SEK SEK -1.28 SEK -0.91 SEK 1.16 SEK 2.92 SEK 1.98

Average number of employees 54 49 44 38 33

All key figures for 2012 relate to the consolidated Group unless stated otherwise. All key figures up to and including 2011 related to the parent company.


2) Gross profit is higher than previous years. This is because through 2011, costs of goods sold included certain costs for sales and administration. Beginning in 2012, reporting has been streamlined and corresponding expenses are included in selling expenses and administrative expenses.

Five-yeAr SuMMAry


26.

ulF MAttSSonBoard member since 2011.Born in 1964.Degree in Business Administration, Stock-holm University PMD, Harvard Business School.Other current assignments: Chairman of the Board of Academedia and Crem Inter-national AB, Board member of Bactiguard, Sanitec, Gambro and Addtech AB as well as industrial advisor to EQT.Previous assignments: CEO of Capio AB (publ), CEO of Mölnlycke Health Care AB, President & CEO of Domco Tarkett Inc. (publ.), Chairman of Securitas Direct AB (publ.), Chairman Flextrus AB, Board member of Q-Med (publ.), Nybron AB and Pelly Industrier AB. Holdings: 15,000 Class B shares.1 Reserve cask.

AuDitorS: Principal auditor Annika Wedin, born in 1961.

Hans Boberg, born in 1958.

Certified Public Accountants Öhrlings PricewaterhouseCoopers AB. Auditors of Mackmyra Whisky AB since 1999.

BoArD oF DirectorS

Board of Directors

clAS erikSSonBoard member since 2009Born in 1949.Bachelor of Laws, Stockholm UniversityOther current assignments: Consultant, Board member of Swecon Baumaschinen and AS Factor AB.Previous assignments: Acting President and Deputy CEO at Lantmännen agricul-tural cooperative.Holdings: 420 Class B shares.1 Reserve cask.

DAviD heDMAnBoard member since 2011Born in 1974.Degree in Business and Economics, Stockholm School of Economics.Other current assignments: Invest-ments and consultant in his own company, DH Consulting AB.Previous assignments: CEO We International AB and Executive Vice President WeSC (publ.) AB.No shareholding.

cArl-JohAn kAStenGren Board member since 1999.Born in 1967.Degree in Engineering, KTH Royal Institute of Technology.Other current assignments: CEO of Gillesvik AB, CEO and Board member of EFIB AB, Board member of Fastighetsägarna Stockholm and member of Hyresnämnden.Previous assignments: Administra-tive director and Board member of Gillesvik AB. Holdings: 18,000 Class A shares, 43,500 Class B shares.5 Reserve casks.

cArl klinGBerGBoard member since 2004Born in 1961.Degree in Business and Economics, Stockholm School of Economics.Other current assignments: Manage-ment consultant in own company Pay&Pray AB, Board member of Scandi-navian WeldTech Holding AB.Previous assignments: CEO of Ongame /bwin Games AB.Holdings: 32,000 Class B shares.7 Reserve casks.

MAlin löveMArkBoard member since 2010Born in 1969.Degree in Engineering, KTH Royal Institute of Technology.Other assignments: Business developer at Atrium Ljungberg AB.Previous assignments: Business manager for real estate investments and project development at property company AP Fastigheter AB.Holdings: 19,000 Class A shares, 37,722 Class B shares. 3 Reserve casks.


27.

MAGnuS DAnDAnellCEO Employed in 1999. Born in 1967.Degree in Engineering, KTH Royal Institute of Technology.Holdings: 29,650 Class A shares, 10,389 Class B shares, 6,000 convert-ible debentures (K14).3 Reserve casks and 2 Gravity casks.

MAnAGeMent

Senior executives

JohAn ÅSMAnBusiness Area Manager BottlesEmployed in 2012. Born in 1967.Business Degree, Stockholm University.Previous assignments: Many years’ experience in managing sales and exports at Absolut Vodka, Spendrups and most recently as Sales & Marketing Director at The Real Stevia Company.No shareholding.1 Reserve cask.

rikArD lunDBorGDeputy CEO and Business Area Manager Casks and ExperiencesEmployed in 1999. Born in 1968. Degree in Engineering, KTH Royal Institute of Technology.Holdings: 33,000 Class A shares, 66,991 Class B shares, 6,000 convertible debentures (K14).4 Reserve casks.

lottA ÅkeSSonCustomer Relations ManagerEmployed in 2009. Born in 1969.Advanced Diploma in Hotel Management, UK.Previous assignments: Food & Beverage and Meeting Manager, Nordic Sea Hotel. No holdings.1 Reserve cask.

AnnikA hAMpF FoGtMAnnMarketing Manager Employed in 2013. Born in 1972.Degree in Economics and Business from the American University of Paris.Previous assignments: Background in FMCG from McKinsey&Company, Procter & Gamble, Maxxium and Movement Consulting.No shareholding.

ulF SöDerlunDChief Financial Officer Employed in 2011. Born in 1964.Business degree, Stockholm University.Previous assignments: Many years of experience as CFO, most recently from Sundström Safety AB.Holdings: 1,000 convertible debentures (K14).1 Reserve cask.

JonAS BerGProject Manager Employed in 2008. Born in 1966.Degree in Engineering, KTH Royal Institute of Technology.Previous assignments: Supervisor PEABHoldings: 33,000 Class A shares, 47,102 Class B shares, 6,000 convertible debentures (K14). 7 Reserve casks.

chArlotte ulFvin Supply Chain ManagerEmployed in 2013. Born in 1970.Degree in Engineering, Uppsala Uni-versity School of Engineering.Previous assignments: Various positions within Sandvik Materials Technology, most recently as Head of Engineering and Head of Production.No shareholding.

AnGelA D’orAzio Employed in 2004. Born in 1962.

W.S.E.T, UK (Wine and Spirit Education Trust) and Degree in Marketing Management from IHM Business School.Previous assignments: Own business through Scotch Malt Whisky Society in Sweden and several years’ experience judging international whisky and spirits competitions.No shareholding.5 Reserve casks.


28.

MAckMyrA SvenSk WhiSky ABMackmyra Svensk Whisky AB (Publ) was founded in 1999 and is Sweden’s first producer of malt whisky. The business includes product development, manufacturing, sales and marketing of whisky, whisky-related products and experiences. Mackmyra has established the brand in the Nordic region by successfully launching the first Swedish malt whisky in a personal 30-litre cask and traditional malt whisky in the bottle. In 2010-2012, the company built a solid platform with increased capacity for manufacturing, visitor operations and sales and also carried out and prepared new products/new market launches.

Operations are conducted at Mackmyra Whisky Village outside Gävle, with management and marketing in Stockholm. Business operations are conducted principally through the parent company and its subsidi-ary in Denmark. Since mid-2012 the subsidiary Mat och Upplevelser i Kungsbäck AB has operated a restaurant next to the distillery at Mackmyra Whisky Village.

The Company has about 6,000 shareholders and Mackmyra shares were listed on NASDAQ OMX First North in December 2011. The listing and expansion of ownership are strategically important for marketing the brand and shareholders are encouraged to become customers.

net SAleS AnD proFit/loSSNet sales for 2012 were SEK 82.3m (81.7) including alcohol tax and SEK 63.9m (62.3) excluding alcohol tax. This was an increase of 3 percent (2) on the previous year. Net sales excluding alcohol tax and adjusted for cask reservations1 increased by 6 percent and amounted to SEK 68.5m (64.8).

Of 2012 net sales, excluding alcohol tax and adjusted for cask reserva-tions,1 Casks and Experiences accounted for 51 percent (49) and Bot-tles for 49 percent (51).

Gross earnings for 2012 amounted to SEK 47.3m (41.0), which is a gross profit margin of 58 percent (50). The increase in gross profit is primarily due to the cost of goods sold being included certain costs for sales and administration up to and including 2011. Beginning in 2012, reporting has been streamlined and corresponding expenses are now included in selling expenses and administrative expenses.

Operating loss for 2012 was SEK 1.7m (profit: 0.7) and was impacted by expenses of SEK 4.6m (4.5) relating to marketing initiatives. These costs related to the establishment of Bottles in Ontario, Quebec, France, New York, a preliminary study in Asia, a preliminary study for international expansion of Cask Sales and start-up of the restaurant operation in Gävle.

The loss for the year was SEK 5.3 MSEK (loss: 3.8) and includes de-ferred tax of SEK 1.5m (-) regarding carry forwards, which it is consid-ered can be used in part because of the planned changes to cask sales.

SuMMAry oF eArninGS

Sekm 2012 2011

Net sales1 82.3 81.7

Revenue growth 1% 2%

Net sales excluding alcohol tax 63.9 62.3

Revenue growth excluding alcohol tax 3% 2%

Total sales value, including cask reser-vations2 68.5 64.8

Growth 6% 3%

Gross profit 47.3 41.0

Gross profit margin3 58% 50%

Operating profit/loss -1.7 -0.7

Profit/loss after tax -5.3 -3.8


2) Total sales value including cask reservations refers to net sales excluding alcohol tax adjusted for the sales value of cask reservations not yet recognised as revenue, about 25 percent of the number of barrels sold. See also the Casks and Experiences section below.

MArketinG AnD SAleSThe chart below shows quarterly sales for the period 2010–2012.

The Board of Directors and Chief Executive Officer for Mackmyra Svensk Whisky AB (Publ), org.nr 556567-4610, hereby submit the Annual Report for the financial year 2012.

report of the Board of Directors

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SAleS per quArter EXCLuDING ALCOHOL TAX, SEKM


29.

Sales are affected by seasonal variations in the industry. Opportuni-ties to smooth seasonal variations are created, for example, through targeted marketing activities and further development of products and markets.


Casks and Experiences forms the basis of Mackmyra’s sales and helps raise brand awareness, which drives demand for Mackmyra’s bottled whisky. Cask owners are important ambassadors for both products and our brand.

Sales in Casks and Experiences amounted to SEK 30.4m (29.2) for 2012, an increase of 4 percent (2) on the previous year. If the sales value of cask reservations not yet recognised as revenue is included, cask sales increased by 11 percent (4) to SEK 35.1m (31.7).

Two large and successful cask sales campaigns were conducted in 2012 – “The First Drops” in the first and second quarter and “10-year Reserve” in the fourth quarter.

Visitor operations were further developed at Mackmyra Whisky Vil-lage next to the new distillery, including the establishment of a fully licensed visitor restaurant. The restaurant is operated by the wholly owned subsidiary Mat och Upplevelser i Kungsbäck AB. Mackmyra Whisky Village has now become a platform for the Mackmyra whisky experience. The restaurant, which offers whisky-inspired delicacies and whisky tastings, has successfully complemented visits to the Grav-ity-fed Distillery and cask fillings. The number of visitors to Mackmyra Whisky Village increased over the year. Visitor operations help spread the Mackmyra brand, which benefits the entire Mackmyra business.

As in previous years, Mackmyra also carried out visitor activities with tours and tastings at the Archipelago Warehouse on the Fjäderholm Islands outside Stockholm and at Häckeberga Manor in Skåne.

the 2013 cask offering – adapted for europe

In 2013 the cask business will be further developed for sales in Europe. From the second quarter of 2013 the cask experience will be offered via wholly owned subsidiary Mackmyra Swedish Whisky GmbH for delivery throughout the EU. In conjunction with this, the cask offering will be simplified and improved to make it more competitive. The new cask offering means that 100 percent of cask sales will be reported as sales during the period that the customer actually reserved a cask, compared with 75 percent previously. Mackmyra’s external report-ing will therefore become clearer and sales administration will be optimised.

For those casks that up to and including 2012 were reserved for de-livery in Sweden (approximately 25 percent), sales and earnings were first reported in the period during which the bottles were delivered to the customer, i.e. four to five years after the reservation was made. The 2012 sales value of these reservations was SEK 4.6m (2.6) and this is not included in the net sales reported below. From 2013 all cask reservations will be included in net sales.

In order to compare annual cask sales, the figures below include the effect on sales of Casks and Experiences in 2011 and 2012 if the above-mentioned change had been made from 1 January 2011.

Sekm 2012 2011

Net sales Casks and Experiences 30.4 29.0

Sales value of casks reserved for delivery via Systembolaget 4.6 2.6

total sales value 35.1 31.7

Growth 11% 4%

Bottles

Sales of Bottles were boosted by the strong sales performance of Mackmyra Brukswhisky (The Swedish Whisky), which was launched in 2010/2011 and which now accounts for the largest share of Mack-myra’s Bottles sales. Together with Mackmyra’s market expansion, this has changed the product mix, leading to an increase in the number of bottles sold but a decrease in sales in SEK. However, in the long term increased sales are expected to strengthen the brand and lead to greater demand for other products in the range.

Excluding alcohol tax, Bottles sales in 2012 were SEK 33.8m (34.7), which was 3 percent (+1) lower than the previous year.

The total number of bottles sold in 2012 rose by 15 percent (3) to 205,400 bottles compared with 179,000 in the previous year. Mackmy-ra Brukswhisky (The Swedish Whisky) continues to show strong growth and increased by just over 60 percent compared with the previous year. The new whisky and honey liqueur Bee, launched in November 2012, has been well received and went straight into Systembolaget’s list of top-selling new liqueurs. A number of other products also performed well, although sales of The First Edition fell slightly on the previous year. The First Edition retains a strong market position and, like last year, is the market-leader in its segment at Systembolaget.

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SAleS 2008–2012 THOuSAND BOTTLES


30. report oF the BoArD oF DirectorS

product development and quality

Mackmyra continues to develop its product portfolio, in terms of both products and packaging. The company plans to launch at least one new regular product each year in the Bottles business area.

In 2012 Mackmyra Brukswhisky (The Swedish Whisky) launched a new brand-building design. The new bottle has been well received and was launched at Systembolaget in November 2012, at the same time as the whisky and honey liqueur Bee. Bee, which was well received, comple-ments the range of products and strengthens Mackmyra with regard to new target groups.

Products are subjected to continuous quality assurance procedures, including a strong focus on delivered products. Such procedures cover everything from sensory analysis for all whisky produced and delivered to the dialogue with customers and other expertise, as well as improvement of administrative system support. As the number of bottled products grows, great care is taken to achieve high standards for the whisky, packaging and materials.

Awards at international competitions underscore the high quality of the whisky and are important in contacts with purchasers around the world. Many people appreciate the taste and style of the products, and gold medals in the right competitions strengthen both the brand and the attractiveness of the products. In November 2012 the International Wine & Spirit Competition (IWSC) named Mackmyra European Spirits Producer of the Year 2012.

proDuction

Distilling

During the year, a total of 1,001,000 bottles (525,000) were distilled, of which more than 60 percent (0) were distilled at the new Gravity-fed Distillery in Mackmyra Whisky Village. Overall, the first year of opera-tions at the new distillery has been successful, producing distilled spirit of consistently high quality. The rate of distilling increased significantly towards the end of the year. The new facility also makes it easier to maintain a smoother production rate, leading to greater efficiency. From the first quarter of 2013 Mackmyra’s distilling will be concentrated at the Gravity-fed Distillery. The distillery at Mackmyra Bruk will then be used for special production, training, marketing activities and experiences. It will also provide additional production capacity where necessary.

Most of the distilled spirit was filled into casks for Mackmyra's whisky products (bottles); about ten percent of produced volume was used to fill customer-ordered 30-litre casks A small percentage was used for the Vit Hund (White Dog) product.

The combined annual production capacity of Mackmyra’s two distiller-ies is 2.4 million bottles of spirit.

Maturation storage

Whisky manufacturing requires an aging period of at least three and typically five years or more before products are ready for sale. Mackmyra’s whisky is usually delivered after five years of aging. Some editions often require longer aging or unique casks, which command a higher sales price.

The long aging period places extra demands on the relationship between sales and production; stocks and production capacity are es-sential both for sales growth and to attract retailers and distributors.

Building up inventory ties up capital and will have a negative impact on the company’s cash flow during periods when the company’s stocks of maturing whisky are being built up to achieve higher future sales.

The new Gravity-fed Distillery, which entered operation in 2012, ena-bles the maturing stocks to grow at a faster rate, enabling Mackmyra to meet assessed future demand. During 2012, the value of the matur-ing stock increased by 35 percent (13) or SEK 36.2m (11.7), to a total of SEK 138.7m, compared with SEK 102.5m as at 31 December 2011. Ma-turing stock is valued at the balance sheet date at production cost or the net realisable value, whichever is lower. Production costs include the cost of storage for the period until the whisky is ready for sale.

In 2012, the company extended the Forest Warehouse in Mackmyra Whisky Village, which provided expanded storage capacity for per-sonal whisky casks.

Below is an analysis of the age structure of the maturing stock at year-end. The stock situation shows that Mackmyra has good capacity to meet increased demand for Swedish whisky over the next few years.

inveStMentSInvestments in 2012 totalled SEK 32.7m (57.7), including SEK 11.1m (47.4) in investments relating to completion of the new distillery, SEK 6.8m (3.6) in cask investments, SEK 7.6m (5.5) in development of the Whisky Village and restaurant and SEK 4.2m (-) in new storage facili-ties. The remaining investments, SEK 3.0m (1.2), relate primarily to product development, production equipment and IT systems.

cASh FloWCash flow from operating activities during the year was SEK 4.0m (0.2). The change in operating capital was negative at SEK 43.9m (neg: 18.8), of which the build-up of stock comprised SEK 36.0m (15.9). Cash flow for investments was SEK 32.7m (55.2) and cash flow from financ-ing was SEK 48.4 (90.1).

The company’s cash flow in 2012, as in previous years, was signifi-cantly impacted by the gradual development of the company’s stocks of maturing whisky.

MAturAtion AGeinG Structure THOuSAND BOTTLES, 31 DEC, 2012

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The size of Mackmyra’s maturing stock is designed to meet fu-ture demand and provides the basis for the current international product launch.


31.report oF the BoArD oF DirectorS

liquiDity AnD FinAncinG At the balance sheet date, cash and cash equivalents amounted to SEK 0.9m compared with SEK 25.0m as at 31 December 2011. Unutilised overdraft facilities totalled SEK 7.7m (5.0).

According to the financing plan from 2011, Mackmyra took out new loans in 2012 totalling SEK 50.3m (48.1) and amortised SEK 1.9m (38.9). Non-current liabilities as at 31 December 2012 were SEK 125.5m (80.2), of which SEK 98.8m (52.9) relates to bank loans, SEK 16.0m (17.6) to other loans and SEK 6.5m (7.5) to convertible debentures. In addi-tion, at the balance sheet date the company had non-interest bearing liabilities of SEK 18.8m (17.9), attributable to loans from the company’s cask owners.

The Board of Directors has decided to propose that the annual general meeting (to be held 4 May 2013) issue SEK 4.4m in convertible deben-tures to Norrlandsfonden to replace existing convertible debentures. The new convertibles run up to and including January 2018, but otherwise on the same terms. The average conversion rate is SEK 56.62 per share. Norrlandsfonden has subscribed to these convertible debentures.

In addition to non-current liabilities per the balance sheet date, Mackmyra has loan commitments from banks, Norrlandsfonden and ALMI Gävleborg equivalent to SEK 85m (130), of which SEK 20m (25.0) was utilised after the balance sheet date. These loan commitments are subject to customary market-based terms. Consequently, the company has a long-term financing solution for its operations and continued expansion.

equityThe parent company’s equity at the end of 2012 was SEK 173.1m (175.0), which represents an equity ratio of 54% (61). Group equity at the end of 2012 amounted to SEK 172.7m (-). As at 31 January 2012, Almi had converted convertible debentures to shares for a total of SEK 3.0m. The conversion corresponds with 60,000 Class B shares, increas-ing the total number of shares to to 4,075,396.

the MAckMyrA ShAreSThe shares are listed on First North. The closing share price at 31 December 2012 was SEK 50.00 (60.25). A total of 385,051 shares were sold in 2012.

perSonnel AnD orGAniSAtionIn 2012 the company had an average of 54 full-time highly skilled and dedicated employees (49). Since its inception the company has built up a high level of knowledge within the organisation with regard to whisky production and product development. The same applies to communication and marketing of the company’s products.

In 2012, senior management comprised the CEO, Deputy CEO/Business Area Manager Casks and Experiences, Business Area Manager Bottles, CFO and Project Manager. During the fourth quarter, Supply Chain Manager Charlotte Ulfvin and Marketing Manager Annika Hampf Fogt-mann were recruited, and both are on the senior management team as of February, 2013. Reinforcements to the team in the form of Johan Åsman, who joined as Business Area Manager Bottles in autumn 2012, mean that in just a short period of time the company has acquired significant new talent to manage expansion.

During the year, Mackmyra’s organisation has been streamlined to focus on the two business areas: Bottles, and Casks and Experiences.

The Master Blender supports both the sales and marketing organisa-tion and production. The Project Manager is responsible for prioritised internal projects, such as the development of Mackmyra Whisky Vil-lage.

The CEO and senior executives have a notice period of up to six months, or in accordance with legislation and agreements.

perMitSSince 1999 the company has held all necessary permits for the manu-facturing, storage, wholesale trading and export of alcoholic drinks. Mackmyra views the authorities’ controls as an important aspect of its operations. The results of inspections carried out to date show that the company more than meets requirements, which is a strength for future growth.

incentive ScheMeSSenior executives have an incentive scheme in which the achievement of budget figures and a number of key figures provides an opportunity for flexible remuneration corresponding to a maximum of three months’ extra salary.

environMentThe company runs a business that requires a permit under the Environ-mental Code in respect of the production of distilled alcoholic drinks. Emissions from the production operation consist primarily of grain residue from the mashing stage, waste water from cleaning of equip-ment and ethanol emissions. The company has a permit for its business under the Environmental Code. The company operates according to an environmental plan with in-house controls drawn up in consultation with the supervisory authority.

riSk MAnAGeMentExposure to risks is part of ongoing operations, as is reflected in Mackmyra’s risk management with the overall goal of identifying and preventing risks, as well as implementing measures and improvements to minimise potential risks, regardless of the area.

ceo Magnus Dandanell

project ManagerJonas Berg

Master Blender Angela d'Orazio

cFoulf Söderlund

Business Area Manager Bottles

Johan Åsman

Business Area Manager


Rikard Lundborg

customer relations Manager

Lotta Åkesson

Marketing Manager

Annika Hampf Fogtmann

Supply chain Manager

Charlotte ulfvin


32. report oF the BoArD oF DirectorS

RISK CATEGORIES POTENTIAL RISKS RISK MANAGEMENT

Market risks Malt whisky is defined by the perceived quality. Reviews and ratings form an overall picture. Long-term profitability can be damaged by rumours, negative reviews, or an early or major launch that does not meet quality standards and/or supply capability requirements.

Inadequate supply capability leads to negative goodwill among distributors, dealers and end customers.

In the long run, the risk of increased competition from other Swedish whisky brands.

Changes in legislation or new health findings could lead to reductions and/or restrictions in consumption that would impact sales.

The company’s strategy is to grow incrementally with small initial investments.

In addition to Sweden, the company currently has sales in selected markets such as Denmark, Finland, Norway, Germany, the UK, Canada, France, and within the framework of charter, border, airport and ferry trade in the Scandinavian markets and the countries around the Baltic Sea.

Mackmyra launches its product portfolio for bottles to selected groups of customers and markets and emphasises presenting the product in its proper context. For Mackmyra casks, the risk of false expectations is lower because the customer is offered a major experi-ence component.

With its current stocks of maturing whisky, Mackmyra has a good supply capacity that can be substantially increased in the coming years.

Mackmyra continuously develops the unique cask business as well as other products. More players on the Swedish market will inspire a growing interest in Swedish whisky worldwide, which benefits Mackmyra’s long-term development.

Production risks It is difficult to calculate the optimal balance between production, size of maturing stocks and marketing efforts because sales are at least five years in the future.

Consequently, both overproduction and under-production pose risks. Overproduction leads to large stocks that substantially tie up capital. Low production in relation to demand could lead to depleted inventory and supply problems.

Mackmyra has planned production and marketing campaigns for strong but reasonable growth in demand over the period 2012 to 2014. If the marketing campaigns do not lead to increased demand, produc-tion can be adapted to slower market growth. The whisky could be aged somewhat longer, which would increase the sales value of the final product. The new production platform provides the company with a significantly higher production capacity to meet increased demand.

Product liability risks

Any defects in Mackmyra products could lead to demands for accountability and damages, as well as loss of credibility, which would affect the brand.

The company has extensive experience in supplying products in both bottles and casks and has built up the necessary quality control processes.

The company’s insurance coverage is well suited for the business.

Quality assurance, complaint management and continuous improve-ment are integrated in all procedures.

Dependence on permits

Risk of withdrawal and or changes in permits, or changes in legislation that would limit opera-tions.

Since 1999 the company has engaged in licensed operations in the facilities in compliance with several laws and established rules. The company has all permits currently required for operations.


33.report oF the BoArD oF DirectorS

Financial risks The risk that the company’s sales and profit develop at a rate that is slower than anticipated, which may have a negative impact on cash flow.

In the future the company will export a large part of production based in foreign currencies, which will increase the element of currency effects.

Through the 2011 issues and bank financing, the company has largely ensured its liquidity and financing needs for the 2012–2014 period. If needed, both the rate of production and investments can be further adapted to secure cash flow.

Risk exposure to exchange rate effects is limited in current opera-tions because most transactions are denominated in Swedish kronor. To the extent that sales are invoiced, or equipment and materials are purchased in a foreign currency, significant currency risk is primarily managed using currency futures.

The strategy is to limit trade to a few currencies for controlled flows and, where possible, to take out currency forwards to minimise risk and adapt operations to exchange rates.

Dependence on key personnel

Dependence on key personnel is a critical factor in a company the size of Mackmyra.

The company is in a phase in which dependence on personnel is limited in the short term. However, new projects and launches will require utilisation of accumulated skills and experience.

In 2011 and 2012, Mackmyra has added skills and is increasing its focus on the supply of talent within the organisation.

Other risks Production stoppage due to fire, theft or other damage suffered by facilities and/or storage areas could cause problems in production and delivery capabilities.

The company has procedures in place and takes preventive measures to minimise such risks.

The maturation warehouses are fire resistant and divided into fire cells; they are also situated in different geographic locations.

The facilities have been equipped with adapted perimeter protection and alarms.

The company’s insurance coverage is well suited for the business.

eventS AFter the enD oF the perioD• Market expansion focused on Europe

− Mackmyra continues to develop its sales team in Germany through the wholly owned subsidiary Mackmyra Swedish Whisky GmbH, which was founded in February 2013. − In connection with it being named European Spirits Producer 2012, Mackmyra has decided to further develop sales in the rest of Europe through collaborations with distributors, including efforts such as pilot studies of the markets in Poland, Switzerland and Benelux. − Valora Trade is a new distribution partner in Denmark as of March 2013.

• Beginning on 28 February the whisky and honey liqueur Bee is included in Systembolaget’s regular line of products.

• In January 2013 Norrlandsfonden subscribed for SEK 4.4m in con-vertible debentures in Mackmyra to replace existing convertibles.

• Supply Chain Manager Charlotte Ulfvin and Marketing Manager Annika Hampf Fogtmann took up their new positions in January and February, 2013.

unreStricteD equity in the GroupThe Group’s unrestricted equity amounts to SEK 133.9m (-).

propoSeD AppropriAtion oF proFitThe Board proposes that the retained earnings (SEK thousand):

Premium fund 132,130

Retained earnings 7,118

Loss for the year -4,933

134,315

be dealt with such that

the amount to be carried forward to the new accounts is 134,315

134,315

The Group’s and parent company’s financial performance and position are shown in the following income statement and balance sheet, cash flow statement and supplemental disclosures.


34.

Group pArent coMpAny

Sek thouSAnD note 2012 2011 2012 2011

Net sales 82,300 - 81,870 81,685

Cost of goods sold 2,3,4,5 -34,961 - -34,731 -40,657

Gross profit 47,339 - 47,139 41,028

other operating expenses

Selling costs 2,3,4,5 -35,293 - -34,682 -29,514

Administrative costs 1,2,3,4,5 -14,109 - -14,109 -12,418

Other operating income 396 - 396 249

operating profit/loss -1,667 - -1,256 -655

profit from financial investments

Other interest expenses and similar profit/loss items 400 - 400 74

Other interest income and similar profit/loss items -5,666 - -5,660 -3,194

profit/loss after financial items -6,933 - -6,516 -3,775

Tax 6 1,583 - 1,583 -

profit/loss for the year -5,350 - -4,933 -3,775

income statement

AccountS34.


35.


Sek thouSAnD note 31 Dec 2012 31 Dec 2011 31 Dec 2012 31 Dec 2011

ASSetS

non-current ASSetS

tangible non-current assets

Buildings and land 7 79,021 - 79,021 17,256

Process equipment 8 21,513 - 21,513 17,252

Refurbishment expenses for other party’s property 9 4,713 - 4,713 5,189

Inventories and conversion of premises 10 35,456 - 34,994 29,373

New construction in progress and advance payments in respect of tangible non-current assets 11 1,195 - 1,195 50,510

141,898 - 141,436 119,580

Financial non-current assets

Shares in subsidiaries 12 - - 475 -

Deferred tax 1,525 - 1,525 -

1,525 - 2,000 0

totAl non-current ASSetS 143,423 - 143,436 119,580

current ASSetS

Stock, etc.

Work in progress 138,671 - 138,671 102,482

Finished goods and goods for resale 17,310 - 17,245 17,472

155,981 - 155,916 119,954

current receivables

Trade and other receivables 14,465 - 14,070 14,903

Receivables with subsidiaries - - 783 -

Tax asset 1,594 - 1,594 2,363

Other receivables 2,978 - 2,978 2,452

Prepaid expenses and accrued income 13 2,546 - 2,546 1,585

21,583 - 21,971 21,303

cash and bank balances 927 - 617 24,976

totAl current ASSetS 178,492 - 178,504 166,233

totAl ASSetS 321,914 - 321,940 285,813

Balance sheet

AccountS 35.


36.


Sek thouSAnD note 31 Dec 2012 31 Dec 2011 31 Dec 2012 31 De 2011

equity AnD liABilitieS

equity 14

restricted equity

Share capital 4,075 - 4,075 4,015

Statutory reserve 34,712 - 34,712 34,712

38,787 - 38,787 38,727

unrestricted equity

Premium fund 132,130 - 132,130 129,189

Retained earnings 7,118 - 7,118 10,894

Profit/loss for the year -5,350 - -4,933 -3,775

133,898 - 134,315 136,308

totAl equity 172,685 - 173,102 175,035

non-current liABilitieS 15

Liabilities to credit institutions 96,473 - 96,473 52,869

Overdraft facility 16 2,284 - 2,284 -

Convertible debentures 17 6,504 - 6,504 7,750

Other liabilities 20,284 - 20,284 19,561

125,545 - 125,545 80,180

current liABilitieS

Trade and other payables 10,473 - 10,191 16,621

Other liabilities 3,257 - 3,257 1,731

Accrued expenses and deferred income 18 9,955 - 9,845 12,246

23,684 - 23,293 30,598

totAl equity AnD liABilitieS 321,914 - 321,940 285,813

Pledged assets 19 155,000 - 155,000 96,000

Contingent liabilities None - None None

Balance sheet

AccountS


37.

cash flow statement

AccountS

pArent coMpAny

Sek thouSAnD 2012 2011

cASh FloW FroM operAtinG ActivitieS

Operating profit/loss -1,256 -655

Adjustments for items not included in cash flow

Depreciation 10,420 6,531

Profit/loss, sale of non-current assets - -212

Interest received 400 285

Interest paid -5,660 -3,404

Income tax paid 58 -2,363

cash flow from operating activities 3,962 182

chAnGe in WorkinG cApitAl

Increase in stock -35,962 -15,878

Reduction/increase in trade and other receivables 833 -2,780

Reduction/increase in current receivables -1,500 3,135

Reduction/increase in current liabilities -7,306 -3,291

-43,935 -18,814

cASh FloW AFter chAnGe in WorkinG cApitAl -39,973 -18,632

cASh FloW For inveStMentS

Investment in financial non-current assets -475 -

Investments in tangible non-current assets -32,275 -57,669

Sale of non-current assets - 2,513

cash flow for investments -32,750 -55,156

cash flow after investments -72,724 -73,788

cASh FloW FroM FinAncinG

New loans 50,314 48,148

Redemptions -1,949 -38,917

New share issue - 81,252

Dividend - -356

cash flow from financing 48,365 90,127

cash flow for the year -24,359 16,339

Cash and cash equivalents at beginning of year 24,976 8,637

Cash and cash equivalents at end of year 617 24,976


38.

Supplemental disclosures

SuppleMentAl DiScloSureS

AccountinG policieS

General accounting policies

The annual report has been produced in accordance with the Swedish Annual Accounts Act and the Swedish Accounting Standards Board’s General Guidelines, with the exception of BFNAR 2008:1 Annual reporting for smaller limited compa-nies (K2 rules) and with regard to the consolidated financial statements, where the Swedish Financial Accounting Stand-ards Board’s recommendation RR 1:00 has been applied.

consolidated financial statements

The consolidated financial statements include subsidiaries, where the parent company directly or indirectly owns more than 50% of the votes, or in some other way has a controlling influence.

The Group’s financial accounts have been prepared in ac-cordance with the purchase method, which means that the subsidiaries’ equity on acquisition, determined as the differ-ence between the fair values of the assets and liabilities, is eliminated in its entirety. Owing to this, the Group’s equity only includes the portion of the subsidiaries’ equity that has arisen following the acquisition.

Intra-Group profits are eliminated in their entirety.

The parent company’s financial accounts include shares in subsidiaries at cost, with deductions for any impairment. For dividends from subsidiaries, only dividends received from profits earned after the acquisition are recognised.

income statement

Beginning in 2011, the income statement is classified ac-cording to function, since this better reflects operations and financial performance. The change has no impact on the reported results.

Measurement principles

Assets, provisions and liabilities have been valued at cost un-less otherwise stated below.

Stock

Stock is valued, applying the first in first out principle, at the lower of the cost of acquisition and the net realisable value on the balance sheet date. Deductions for obsolescence have been made at a flat rate of 3%. Most stock involves goods in progress (the maturing stock). The remainder includes stock of finished goods and merchandise. Valuation of the matur-ing stock is based on normal operating capacity and actual costs for raw materials, distillation and maturation. Finished products are measured according to an equivalent principle, but with the addition of costs for bottling and packaging.

receivables

Receivables have, after individual valuation, been posted at the amounts at which they are expected to be received.

Foreign currencies

Receivables and liabilities in foreign currency are valued at the exchange rate on the balance sheet date. Where hedging measures are implemented, such as forward contracts, the forward rate is used. Transactions in foreign currency are translated in accordance with the spot rate on the transac-tion date. The assets and liabilities of the Danish branch are translated at the closing rate. All income statement items are translated at average rates.

Exchange differences are recognised directly in equity. Profits and losses on receivables and liabilities of an operating na-ture are recorded net under other operating income or other operating expenses.

income

Sales of goods are posted when products are delivered to the customer, in accordance with the terms of sale. Sales are posted net after VAT, discounts and exchange rate differences for sales in foreign currency. Net sales include alcohol tax on sales in Sweden. Alcohol tax is also included in the item Cost of Goods Sold in an equivalent amount and therefore does not affect the result.


39.SuppleMentAl DiScloSureS

Depreciation principles for non-current assets

Non-current assets are recorded at cost minus depreciation. Expenses incurred in improving an asset’s performance over and above its original level increase the asset’s carrying amount.

Expenses for repairs and maintenance are recorded as expenses. Non-current assets are written off systematically over the asset’s estimated useful life. When the depreciable amounts of assets are confirmed, each asset’s residual value is taken into account as required. The following depreciation periods are applied for the company’s tangible and intangible non-current assets:

Process equipment 5 years

Stock 5 years

Goodwill 5 years

Conversion of premises 20 years

Distillery process 10 years

Conversion of distillery premises 20 years

Depreciation is included in the function where the asset is utilised. Most depreciation/amortisation is included in the income statement item Cost of Goods Sold. The remainder of depreciation/amortisation is included in the income state-ment items Selling Expenses and Administrative Costs.

Borrowing costs

Interest on capital borrowed to finance production of an asset that necessarily takes a substantial period of time to com-plete, is included in the cost to the extent that it relates to the production period. Other borrowing costs are expensed in the period to which they relate.

income taxes

Income taxes posted include tax that is to be paid or received in respect of the current year, adjustments in respect of previ-ous years’ current tax and changes in deferred tax. Valuation of all tax assets/liabilities takes place at nominal amounts and is performed in accordance with the tax rules and tax rates that have been set or that have been announced and will in all probability be enforced. Deferred tax is calculated according to the balance sheet method on all temporary differences that arise between posted and tax values. Deferred tax assets in respect of tax loss carryforwards are posted to the extent that it is likely that the carryforwards can be offset against any surplus in future taxation.

lease agreements

All of the company’s lease agreements are reported as opera-tional leasing. Payments under these agreements are posted as expenses on a straight-line basis over the period of the lease.


40.

note 1 reMunerAtion to AuDitorS

GroupParent com-

pany

2012 2011 2012 2011

Audit assignment, PwC 269 - 259 245

Audit activities in addition to the audit assignment, PwC - - - 273

Other services, PwC 187 - 187 242

456 - 446 760

note 2 leASe AGreeMentS (Group and parent company)

2012 2011

Leasing costs for the year, SEK ‘000 583 608

583 608

notesnote 3 eMployeeS AnD StAFF coStS

GroupParent com-

pany

Average number of employees 2012 2011 2012 2011

Women 25 - 24 23

Men 29 - 28 26

54 - 52 49

Salaries, remuneration and social costs

GroupParent com-

pany

2012 2011 2012 2011

Salaries and other remunera-tion to the Board, the CEO and executive management 4,358 - 4,358 3,721

Salaries and other remunera-tion to other employees 19,659 - 19,256 16,352

Pension costs for the Board and CEO 407 - 407 407

Pension costs for other em-ployees 2,101 - 2,096 1,809

Other social costs 7,518 - 7,394 6,124

34,044 - 35,511 28,413

note 3 cont.

remuneration of the Board of Directors and senior executives (parent company)

Directors’ fees/basic salary

Flexible remu-neration Other benefits Pension costs Total

name Function 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011

ulf Mattsson Chairman 132 - - - - - - - - -

Jörgen Sallenhag Former chairman - 139 - - - - - - - 139

Clas Eriksson Board member 44 - - - - - - - - -

Carl-Johan Kastengren Board member 44 - - - - - - - 44 -

Carl Klingberg Board member 44 - - - - - - - 44 -

David Hedman Board member 44 - - - - - - - 44 -

Malin Lövemark Board member 44 - - - - - - - 44 -

Magnus Dandanell CEO 1,010 961 - 124 67 51 407 407 1,484 1,543

Other executive manage-ment Four people 2,996 2,084 - 221 234 141 949 615 4,179 3,061

total 4,358 3,184 - 345 301 192 1,356 1,022 5,839 4,743

noteS


41.

note 4 GenDer DiStriBution in coMpAny MAnAGeMent

GroupParent com-

pany

2012 2011 2012 2011

BOARD MEMBERS

Women 1 - 1 1

Men 6 - 5 5

7 - 6 6

CEO AND OTHER SENIOR EXECuTIVES

Women 4 - 4 5

Men 5 - 5 5

9 - 9 10

note 5 DepreciAtion oF tAnGiBle AnD intAnGiBle ASSetS

GroupParent com-

pany

2012 2011 2012 2011

Buildings -2,303 - -2,303 -414

Process equipment -2,744 - -2,744 -1,409

Inventories and conversion of premises -4,946 - -4,896 -4,196

Refurbishment expenses for other party’s property -477 - -477 -477

Goodwill - - - -35

-10,470 - -10,420 -6,531

note 6 tAx on proFit For the yeAr

GroupParent com-

pany

2012 2011 2012 2011

Current tax on profit for the year 58 - 58 -

Deferred tax 1,525 - 1,525 -

1,583 - 1,583 -

note 7 BuilDinGS AnD lAnD

Group Parent company31 DeceM-

Ber 201231 DeceM-

Ber 201131 DeceM-

Ber 201231 DeceM-

Ber 2011

Opening cost 17,901 - 17,901 18,006

Transferred from new construction in progress and advance payments 56,528 - 56,528 -

Purchases 7,539 - 7,539 2,236

Sales/disposals - - - -2,341

closing cost 81,968 - 81,968 17,901

Opening depreciation -644 - -644 -308

Depreciation for the year -2,303 - -2,303 -414

Sales/disposals - - - 77

closing depreciation -2,948 - -2,947 -644

carrying amount 79,021 - 79,021 17,256

note 8 proceSS equipMent


Ber 201231 DeceM-

Ber 201131 DeceM-

Ber 201231 DeceM-

Ber 2011

Opening cost 28,902 - 28,902 12,555

Purchases 7,600 - 7,600 16,347

Sales/disposals -596 - -596 -

closing cost 35,906 - 35,906 28,902

Opening depreciation -11,650 - -11,650 -10,241

Depreciation for the year -2,760 - -2,760 -1,409

Disposals 16 - 16 -

closing depreciation -14,394 - -14,394 -11,650

carrying amount 21,513 - 21,513 17,252

noteS


42. noteS

note 9 reFurBiShMent expenSeS For other pArty’S property


Ber 201231 DeceM-

Ber 201131 DeceM-

Ber 201231 DeceM-

Ber 2011

Opening cost 9,101 - 9,101 9,101

closing cost 9,101 - 9,101 9,101


Depreciation for the year -477 - -477 -477


carrying amount 4,713 - 4,713 5,189

note 10 inventorieS AnD converSion oF preMiSeS


Ber 201231 DeceM-

Ber 201131 DeceM-

Ber 201231 DeceM-

Ber 2011

Opening cost 48,044 - 48,044 43,310

Purchases 11,520 - 11,008 4,895

Sales/disposals -491 - -491 -161

closing cost 59,073 - 58,561 48,044


Depreciation for the year -4,964 - -4,915 -4,196

Sales/disposals 18 - 18 8


carrying amount 35,456 - 34,994 29,373

note 11 neW conStruction in proGreSS AnD ADvAnce pAyMentS in reSpect oF tAnGiBle non-current ASSetS


Ber 201231 DeceM-

Ber 201131 DeceM-

Ber 201231 DeceM-

Ber 2011

Opening cost 50,510 - 50,510 16,242

Purchases 7,213 - 7,213 34,268

Transferred to buildings -56,528 - -56,528 -

closing cost 1,195 - 1,195 50,510

note 12 ShAreS in SuBSiDiArieS (parent company)

Share of equity

Share of votes

No. of shares

Carrying amount31 DeceM-

Ber 201231 DeceM-

Ber 2011

Mat och upplevelser i Kungsbäck AB 100% 100% 500 475 -

note 13 prepAiD expenSeS AnD AccrueD incoMe


Ber 201231 DeceM-

Ber 201131 DeceM-

Ber 201231 DeceM-

Ber 2011

Prepaid rent 796 - 796 812

Prepaid insurance 282 - 282 119

Other 1,468 - 1,468 654

2,546 - 2,546 1,585

note 14 chAnGe in equity (parent company)

Share capitalStatutory

reserve Premium fundRetained earn-

ingsProfit/loss for

the year

Opening amount 4,015 34,712 129,190 10,893 -3,775

Appropriation according to resolution of this year’s annual general meeting:

Profit/loss for the year - - - -3,775 3,775

Conversion of convertible debentures 60 - 2,940 - -

Profit/loss for the year - - - - -4,933

closing amount 4,075 34,712 132,130 7,118 -4,933

note 15 non-current liABilitieS


Ber 201231 DeceM-

Ber 201131 DeceM-

Ber 201231 DeceM-

Ber 2011

Due within one year 82,000 - 82,000 43,742

Due within 2–5 years 43,545 - 43,545 36,438

Due in more than five years - - - -

125,545 - 125,545 80,180

note 16 BAnk overDrAFt FAcility


Ber 201231 DeceM-

Ber 201131 DeceM-

Ber 201231 DeceM-

Ber 2011

Credit authorised 10,000 - 10,000 5,000

Credit utilised 2,284 - 2,284 -


43.noteS AnD SiGnAtureS oF the BoArD MeMBerS

note 18 AccrueD expenSeS AnD DeFerreD incoMe


Ber 201231 DeceM-

Ber 201131 DeceM-

Ber 201231 DeceM-

Ber 2011

Accrued alcohol tax 3,418 - 3,418 4,660

Holiday pay liability 2,053 - 2,003 2,007

Accrued social security charges 1,199 - 1,199 1,301

Accrued interest expenses 541 - 541 90

Other 2,744 - 2,684 4,188

9,955 - 9,845 12,246

note 19 pleDGeD ASSetS


Ber 201231 DeceM-

Ber 201131 DeceM-

Ber 201231 DeceM-

Ber 2011

For long-term debts to credit institutions:

Company mortgages 125,000 - 125,000 66,000

Property mortgages 30,000 - 30,000 30,000

155,000 - 155,000 96,000

note 17 convertiBle DeBentureS

As at 31 December 2012, the company had four convertible loans total-ling SEK 6,504k (7,750k) as follows:

convertible debenturesnoMinAl vAlue, Sek

‘000SuBScription price

per ShAre

Convertible loan 11 3,000 SEK 50

Convertible loan 12 371 SEK 70



6,504

Convertible loans 11–13 are interest-free and were subscribed in Janu-ary 2012, whereupon they were replaced with new convertible loans in January 2013. The new convertible loans, which are subject to approval by the AGM, run up to and including January 2018 with otherwise unchanged terms.

Convertible loan 14 was subscribed in June 2013. The loan carries an interest rate of 5.5 % and can be converted to shares during the period 15 June 2016 up to and including 15 July 2017.

Mackmyra, April 8, 2013

Ulf Mattsson Clas Eriksson David Hedman

Chairman

Carl-Johan Kastengren Carl Klingberg Malin Lövemark

Magnus Dandanell

CEO

Our audit was submitted on April 8 2013

Öhrlings PricewaterhouseCoopers AB

Annika Wedin Hans Boberg Authorised public accountant Authorised public accountant


44. AuDitor’S report

report on the AnnuAl AccountS AnD conSoliDAteD FinAnciAl StAteMentSWe have conducted an audit of the annual report and consolidated financial statements for Mackmyra Svensk Whisky AB (Publ) for 2012. The company’s annual accounts and consolidated financial statements are included in the printed version of this document on pages 28–43.

responsibilities of the Board of Directors and the chief executive officer for the annual accounts and consolidated financial statements

The Board of Directors and the Chief Executive Officer are responsible for the preparation and fair presentation of these annual accounts and consolidated financial statements in accordance with the Annual Ac-counts Act, and for such internal control as the Board of Directors and the Chief Executive Officer determine is necessary to enable the prepa-ration of annual accounts and consolidated financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ responsibility

Our responsibility is to express an opinion on these annual ac-counts and consolidated financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing and generally accepted auditing standards in Sweden. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the annual accounts and consolidated financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the annual accounts and consolidated financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the annual accounts and consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the company’s preparation and fair presentation of the annual ac-counts and consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting esti-mates made by the Board of Directors and the Chief Executive Officer, as well as evaluating the overall presentation of the annual accounts and consolidated financial statements.

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

opinions

In our opinion, the annual accounts and consolidated financial state-ments have been prepared in accordance with the Annual Accounts Act and present fairly, in all material respects, the financial position of Mackmyra Svensk Whisky AB and its subsidiaries as of 31 December 2012 and of their financial performance and cash flows for the year in accordance with Annual Accounts Act. The Report of the Board of Directors is consistent with the other sections of the annual report and consolidated financial statements.

To the Annual General Meeting of Mackmyra Svensk Whisky AB, corporate identity no. 556567-4610

Auditor’s reportWe therefore recommend that the annual general meeting of share-holders adopt the income statement and balance sheet for the parent company and the Group.

report on other leGAl AnD reGulAtory requireMentSIn addition to our audit of the annual accounts and consolidated financial statements, we have examined the proposed appropriations of the company’s profit or loss and the administration of the Board of Directors and the Chief Executive Officer of Mackmyra Svensk Whisky AB for the year 2012.

responsibilities of the Board of Directors and the chief executive officer

The Board of Directors is responsible for the proposal for appropria-tions of the company’s profit or loss, and the Board of Directors and the Chief Executive Officer are responsible for administration under the Companies Act.

Auditors’ responsibility

Our responsibility is to express an opinion with reasonable assurance on the proposed appropriations of the company’s profit or loss and on the administration based on our audit. We conducted the audit in ac-cordance with generally accepted auditing standards in Sweden.

As a basis for our opinion on the Board of Directors’ proposed ap-propriations of the company’s profit or loss, we examined whether the proposal is in accordance with the Companies Act.

As a basis for our opinion concerning discharge from liability, in ad-dition to our audit of the annual accounts and consolidated financial statements, we examined significant decisions, actions taken and circumstances of the company in order to determine whether any member of the Board of Directors or the Chief Executive Officer is liable to the company. We also examined whether any member of the Board of Directors or the Chief Executive Officer has, in any other way, acted in contravention of the Companies Act, the Annual Accounts Act or the Articles of Association.

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

opinions

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

Gävle, 8 April, 2013 Öhrlings PricewaterhouseCoopers AB

Annika Wedin Hans Boberg Authorised Public Accountant Authorised Public Accountant


45.the ShAre AnD ShAreholDer relAtionShipS

the share and shareholder relationshipsShAre price AnD turnoverThe shares were listed on First North with the first trading day on 16 December 2011, under the ticker symbol MACK-B. The closing share price on 28 December 2012 was SEK 50.00 (60.25), corresponding to a decline of 17% during the year. A total of 385,051 shares (95,014) were sold in 2012.

treASury ShAreSMackmyra Whisky AB does not own any of the total number of shares.

ShAre cApitAlShare capital in Mackmyra Whisky AB amounts to SEK 4,015,396, and the number of shares as at 31 December 2012 was 4,075,396, made up of 276,000 Class A shares and 3,799,396 Class B shares. Each Class A share carries one vote and each Class B share carries one tenth of a vote. All shares carry equal dividend rights.

DiviDenD policyWhen the company has completed the expansion phase that is now under way, it is the intention of the Board to propose that the dividend be raised to an amount corresponding to 30-50% of the profit after taxes, on condition that the company’s need for consolidation, liquidity and capital for continued development is satisfied. If the latter factors are not met, in the future dividends may be reduced in relation to the plan or not paid at all.

propoSAl to the AnnuAl GenerAl MeetinG The Board proposes that no dividend should be paid. See also propos-als for the agenda on page 46.

ShAreholDerSThe largest per 31 December 2012

Shareholder class A shares class B shares capital, % votes, %

The Founders’ Group* 207,860 394,378 14.8 37.7

Lantmännen ek. för. 34,940 783,468 20.1 17.3

Rolf Klingberg & family 11,000 223,545 5.8 5.1

Tage Klingberg & family 22,200 29,125 1.3 3.8

Other shareholders 0 2,368,880 58.0 36.1

total 276,000 3,799,396 100 100

total number of shares class A + class B: 4,075,396

The above list of major shareholders reflects ownership structure as of 31 December 2012

* The Founders’ Group consists of the eight founders (Annika Berg, Jonas Berg, Astrid Dandanell, Magnus Dandanell, Jennie Kastengren, Carl-Johan Kastengren, Rikard Lundborg and Malin Lövemark), Spiritum Spritaktiebolag AB and the Gillesvik AB Group.

ShAre price MAck-B. 2012

30

40

50

60

70

80

Q2 Q3Q1 Q4

SEK

ShAre DAtANumber of registered shares at end of period: 4,075,396Number of outstanding shares at end of period: 4,075,396Earnings per share, SEK: -1.31Equity per share, SEK 42.37Number of shareholders at end of period: 6,247


46.

Welcome to the annual general meeting of shareholdersMackmyra Svensk Whisky AB (Publ) will hold its annual gen-eral meeting of shareholders on Saturday 4 May 2013 at 10.00 a.m. at Stadshuset, Drottninggatan 22, Gävle. Registration and entry scheduled from 9.30 a.m.

riGht to pArticipAte AnD reGiStrAtion

Those wishing to attend the annual general meeting

• must be registered in the Euroclear Sweden AB share register on Friday, 26 April 2013 (record date Saturday 27 April 2013),

• and must notify the company of their participation at the meeting no later than Monday, 29 April 2013.

Notification must be provided in writing to Mackmyra Svensk Whisky AB, Wallingatan 2, 111 60 Stockholm, by email: [email protected], by telephone: +46 (0)8 55602580 or by fax: +46 (0)8 55602581. Notification must include name, personal identification number/corporate ID number, address and telephone number. Notification must also specify the number of advisors (no more than two) that the shareholder intends to bring to the meeting.

If participation will be by proxy, such proxy should be dated and submitted in connection with the notification. The valid-ity period of the proxy must be specified with a maximum of up to five years from issuance. Proxy forms are available on the company website www.mackmyra.se no later than begin-ning three weeks prior to the date of the meeting and sent to those shareholders who so request and state their mailing ad-dress. Representatives of legal entities must present registra-tion certificates or equivalent documents showing authorisa-tion as signatory.

Shareholders whose shares are registered with a trustee must, in order to be entitled to attend the annual general meeting, temporarily register the shares in their own names with Euroclear Sweden AB. Shareholders wishing to request such re-registration must notify the trustee well in advance of Friday 26 April 2013, when such registration must be com-pleted.

proposed Agenda

1. Opening of the meeting

2. Election of chairman to preside over the Meeting

3. Preparation and approval of voting list

4. Approval of the agenda

5. Election of one or two persons to approve the minutes

6. Determination of whether the meeting has been duly convened

7. Presentation of the annual accounts and auditor’s report

8. Resolution on adoption of the income statement and bal-ance sheet

9. Resolution on allocation of the company’s earnings pursu-ant to the adopted balance sheet

10. Resolution on discharge from liability for the members of the Board of Directors and the Chief Executive Officer

11. Resolution on the number of Board members and deputies

12. Resolution on fees to Board members and the auditor

13. Election of Board members, Chairman of the Board and any deputies

14. Resolution on the Board's proposal for a decision to issue stock options and approval of transfer of stock options (incentive scheme)

15. Resolution on approval of the Board’s decision to issue convertible loans – K15



18. Resolution on issue authorisation

19. Adjournment of the meeting

FinAnciAl cAlenDAr

Publication dates for financial information

8 April 2013 Annual Report 2012

4 May 2013 Annual general meeting

28 May 2013 Interim report, first quarter 2013

27 August 2013 Interim report, second quarter 2013

26 November 2013 Interim report, third quarter 2013

AnnuAl GenerAl MeetinG


47.GloSSAry, DeFinitionS AnD ADDreSSeS

Glossary, definitions and addressesGloSSAry AnD DeFinitionS

Bottle: 70 cl spirit or whisky calculated at 40% alcohol content, distributed and sold via traditional channels.

casks:Personal whisky cask made to order. Delivered after an average of five years of maturing in about 48 whisky bottles.

Angels’ share:About 3% of the whisky evaporates from the oak casks annually during storage. This is referred to as the angels’ share.

Gross profit margin (%):Gross profit divided by net sales.

operating margin (%): Operating profit/loss divided by net sales.

liquid ratio:Total of current receivables, cash and cash equivalents, divided by current liabilities.

equity ratio (%): Equity divided by balance sheet total.

return on equity (%):Profit/loss after tax, divided by average equity.

return on capital employed (%): Profit/loss before interest expense, divided by average capital em-ployed.

capital employed: Equity and liabilities less interest-bearing liabilities.

interest coverage ratio (times):Profit/loss before interest expense, divided by interest expense.

earnings per share (Sek):Profit/loss after tax, divided by the number of shares at end of year.

ADDreSSeS

Mackmyra Svensk Whisky AB (publ)

Corporate identity number 556567-4610e-mail: Website: www.mackmyra.se

headquarters/marketing office:

Mackmyra Svensk Whisky AB

Wallingatan 2111 60 Stockholm, SWEDENTelephone +46 (0)8 55602580 Fax +46 (0)8 55602581


Kolonnvägen 2802 67 Gävle, SWEDEN

certified advisor:

erik penser Bankaktiebolag

Box 7405103 91 Stockholm, SWEDENVisiting address: Biblioteksgatan 9Telephone: +46 (0)8 4638000E-mail: Website:


48. GloSSAry, DeFinitionS AnD ADDreSSeS

annual report - mackmyraannual report mackmyra svensk whisky ab 2012. 201.2340506670854945 02....

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