Scott A. M< Leod Managing Principal James Ascanio Managing Principal To the Board of Directors Jotul North Amerlca, !nc. M�Leod IAscanio Certified Public Accountants Independent Auditors' Report Sally Swanson Principal Matthew R. Barbour Principal We have audited the accompanying financial statements of Jotul North America, Inc. which comprise the balance sheet as of December 31, 2017 and the related statements of income and retained earnings and cash flows for the year then ended and the related notes to the financial statements. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these finanda! statements in accordance with accounting principles general accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of 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 financial statements based on our audit. We conducted our audit in accordance w'1th auditing standards generaHy accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the statements are free of material misstatement. An audit involves performing procedures to obtain audit evldence about the amounts and disclosures In financial statements. The procedures selected depend on the auditor's judgment, including the assessment of risks of material misstatement of the financial statements, whether due to fraud or error. !n making those risk assessments, the auditor considers ·internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an op·1nion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit a!so includes evaluating the appropriateness of accounting pol·1c'ies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We beHeve that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements referred to above present fairly, in a!I material respects, the financial position of Jotul North America, Inc. as of December 31, 2017 and the results of their operations and the'ir cash flows for the year then ended in ccclt1r1rrr1e principles generally accepted ln the United States of America. Portland, Maine February 15, 2019 M<LEOD ASCANIO • 844 STEVENS AVENUE, PORTLAND, MAINE 04103 • (207) 878-2727" FAX (207) 553-9059

JOTUl NORTH AMERICA, INC. BALANCE SHEET as of December 31, 2017 ASSETS Current assets: Cash and equivalents Trade receivable • net of allowance for doubtful accounts of $42,000 Inventories Other current assets Advances to affiliate Total current assets Plant and equipment Less: accumulated depreciation Other assets, net TOTAL ASSETS LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Bank overdraft Accounts payable Income taxes payable Accrued payroll and taxes Accrued expenses Total current liabilities Deferred income taxes Total liabilities Stockholders' equity: Common stock, $1 par value, 1,000 shares authorized, 1,000 shares issued and outstanding Paid-in capital Retained earnings Total stockholders' equity TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY The accompanying notes are an integral part of the financial statements. page 2 $ 158,921 2,534,484 3,461,929 286,835 1,619,561 8,061,730 9,367,275 7,387,668 1,979,607 1,231 ( y 10,042,568 $ 1,311,573 2,358,010 28,184 363,442 623,851 4,685,060 148,181 4,833,241 1,000 1,287,000 3,921,327 5,209,327 $ 10,042,568