Nissens Cooling Solutions A/S

Ledelsesberetning

Management’s review Business and Financial review The Company's income statement for the year ended 31 December 2024 shows a loss before tax of DKK 184 million and the balance sheet at 31 December 2024 shows equity of DKK -76 million. The net revenue for the for the financial year amounts to DKK 1,020 million, in line with expectations. The net income for the year is DKK -146 million compared to net income of DKK -107 million last year. Market conditions in the wind industry continue to be challenging. Introduction of new product plat-forms from the global wind turbine manufacturers and the geopolitical instability impacts timing of orders. The financial year is impacted by one-time costs related to transformation of and optimization of the operations footprint as well as the optimization of the supply chain and supply sourcing. During 2024 the Company have spent funds to close the operation in Denmark and transfer machinery to other production sites. The Company and its parent KK Wind Solutions Holding A/S have made a refinancing plan which will make sure that the Company has sufficient financing to continue the Com-pany’s operations. Management considers the results of Nissens Cooling Solutions A/S as unsatisfactory. Financing and outlook In February 2025 the company has received a group contribution of 200MDKK from KK-Group A/S. Furthermore the Company’s established financing agreement with its parent company, KK-Group A/S is unchanged. Based on this, Management has assessed the Company a going concern. Knowledge resources At Nissens Cooling Solutions A/S, we wish for all employees to be able to live up to the constantly changing demands relating to the working processes. As a result, Nissens Cooling Solutions A/S at-taches great importance to the training and education of the employees in order for each of them to be able to deliver high performance as well as flawless products and services. The training takes place in both internal and external courses, and with this approach, a profound know-how of the processes related to the processing of aluminium and the development of applications for thermal solutions is gained. Outlook The global business environment for the Nissens Cooling Solutions Group’s products sold to the Wind Industry and Industrial segment is expected to continue to be under pressure due to the current eco-nomic environment. The change in production setup during 2024 has been executed and is expected to deliver more cost competitiveness in the future. In 2025 the Company expect to maintain a revenue at a range between 950 MDKK – 1050 MDKK. In FY25 the Company expects an improved EBIT through several improvement initiatives executed dur-ing 2024. The Company expects an EBIT in a range between 30 MDKK – 80 MDKK. Special risks apart from generally occurring risks in industry Market risks Customer and market-related risks are short-term present but are long-term assessed as limited as the perspectives of the industries the Company operates in are prosperous. The Company is overall reliant on effective international trade relations between nations. Nissens Cooling Solutions A/S has no specific risks besides what is common to the industry and the above mentioned operating risk. Currency risks The majority of the Company’s activities implies currency risks in connection with the purchase and sale of goods and services in foreign currencies. The reporting currency for NCS Group is DKK. The majority of sales are in DKK, EUR, USD and CNY. The primary currencies exposing NCS Group to foreign exchange risk related to purchases include USD and CNY. As NCS Group also operates in Czech, foreign exchange exposure related to CZK also exists. NCS Group employs hedging strategies defined in the Financial Policy to mitigate the foreign ex-change exposure which mainly include the use of forward contracts for a term up to one year. The currency exposure is continuously monitored and effectiveness of hedging strategies is evalu-ated to minimize potential risks. The foreign exchange risk related to other currencies is considered low. Credit risks The Company’s activities imply a credit risk in connection with sales to customers throughout the world. We take measures to cover these outstanding debts in the best possible way, for instance by taking out credit insurances. Inflation of material prices, freight rates and energy cost related risks Continued inflationary pressure on material prices, freight costs, energy costs and other cost elements may impact margins on the short to medium term until the effects can be mitigated. Interest rate risks The Nissens Cooling Solutions A/S is exposed to an interest rate risk, as the Group’s mortgage and bank financing has variable rates of interest. The risk is monitored and hedging is applied when relevant.

Beskrivelse af virksomhedens væsentligste aktiviteter

Business activities Nissens Cooling Solutions A/S is specialized in the development and production of customized cooling solutions for a number of application areas. The Cooling Solutions business unit fully manufactures products for its own end customers in two sub-segments; Wind and Industrial applications. The wind business delivers cooling systems and modules to the wind industry, whereas the industry business is focused on cooling solutions for special vehicles and industrial applications such as con-struction equipment, mining machinery, agricultural machines and special equipment.