Investor Presentaiton

nuuday Management review Financial statements Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Parent company Statements 4.3 | Financial risks Comments Nuuday is exposed to financial market and credit risks when buy- ing and selling goods and services denominated in foreign currencies as well as due to the cash flow from investing in the business and financing activities. Nuuday han- dles financial risks specific to the provision of digital customer expe- riences and entertainment, and is supported by the Group Treasury function in relation to identifying, monitoring and managing these risks (see also the Group Treas- ury's financial policies for risk management in TDC Holding group's Annual Report). Interest-rate risks Nuuday is exposed to interest-rate risks in the euro area. This risk emerges as the Revolving Credit Facility (RCF) is tied to the development in the daily European reference rate, Euribor. The new term loan facility, which ensures Nuuday's long term funding, has been hedged before drawing the loan pro- ceeds. Therefore, Nuuday has mitigated the main interest rate risk in the funding structure. Exchange-rate risks Nuuday is primarily exposed to ex- change-rate risks from USD, but these are hedged by TDCH's Group Treasury function. These risks relate to payables from equipment and handset suppliers as well as content providers. Nuuday has no exchange-rate risk from its shareholder loan or the new term loan facility as they are issued in DKK and EUR respectively. Credit risks Nuuday is exposed to credit risks as a provider of digital customer experiences and entertainment in Denmark and as counterparty to financial contracts. Nuuday handles the credit risk emanat- ing from providing services for custom- ers, while the credit risks in relation to fi- nancial contracts are handled centrally by TDCH's Group Treasury function. Liquidity risks Nuuday has no short-term refinancing risk as the new term loan facility is run- ning for five years. Undrawn credit lines At year-end 2022, Nuuday had undrawn committed credit lines totalling DKK 1,004m. Credit rating In relation to the 2022 financing, Nuuday has been rated by the three global rat- ing agencies Moody's, Fitch and S&P. All ratings are listed in the below table. Nuuday ratings at 31 December 2022 Nuuday Moody's Fitch S&P Company Instrument Company Instrument Company Instrument B2 B2 B (neg outlook) BB- B- B Nuuday Annual Report 2022 70

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