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's activity report 2022

Introduction

Joint Stock Company Svarmil was established in 1991. Economic activity began in 1992 and since 1999.

until 2021, the main activity has been the manufacture of sewing products (workwear) for the Swedish company Elis Design and

Supply Chain Centre AB. Since the second half of 2017, the parent company of AS Svarmil has been the ELIS S.A. group, whose headquarters are located in Paris.

ELIS S.A. is a leading multifunctional service provider in Europe and Latin America, dealing with the rental of workwear and related services. ELIS S.A.'s product portfolio also includes services for hotels, hospitals and restaurants (laundry service and textile materials), services for the development of ecological solutions, rental of dirt mats, pest control, development of drinking solutions for offices and disinfection services.

In 2022, AS Svarmil's economic activity was characterized by an increase in the share of small production batches and custom-made products, i.e. the growth trend of previous years continued strongly. In order to improve customer service, product development processes have also become much more important and training of a sustainable team in this area was started and the planned training process will continue in 2023. Synchronization of production planning and processes has helped to make quick decisions regarding the production and delivery of products necessary for European customers. The trend of orders is shaped by short deadlines and orders with a small number of items. The principles of a quick response strategy continued to be of great importance

for European customers.

Great attention is still paid to securing subcontracting business and contacts in Estonia,

Latvia and Lithuania. We conducted a comparative analysis of the production of goods produced in Europe.

In total, 25.8 million sewing minutes were produced in 2022 together with subcontractors, which is 9% more than in 2021 (23.6 million in 2021). Svarmil's share was 8.2 million sewing minutes (32%) (7.5 million in 2021 – 32%). The new goal for 2023 is to produce 24.5 million sewing minutes.