Ecolab Aps

Ledelsesberetning

Management’s ReviewDevelopment in the yearThe income statement of the Company for 2022/23shows a profit of TDKK 17,056, and at 30. November 2023 the balance sheet of the Company shows equity ofTDKK 168,544.The past year and follow-up on developmentexpectations from last yearThe sales development in 2022/23 was better than expected and the steps taken in 2023 to protectour profit from inflationary pressures all contributedto delivering a strong net result for the company.Targets and expectations for the year aheadThe company focus in 2023 was driving newbusiness wins and further pricing improvements,as always unpinned by our determination to provide value for our customers.We continue to deliver new innovative products andsustainability solutions that helps our customersmaintain a safe and clean business.These activities will continue into 2024 so the momentumof continued focus and the carryover impact from 2023 willsupport our ongoing expectations of strong sales growth and improved net results.Research and developmentResearch and development are handled by groupenterprises. Ecolab’s European headquarters areresponsible for making new products, equipmentand concepts available to the sales companies inorder for the product range to be continuouslyupdated and adjusted.External environmentEcolab ApS is an integrated part of Ecolab’sEuropean environmental management system,which is certified under ISO 14001, and which at alllevels strives to improve our environmentalperformance.Uncertainty relating to recognition and measurementRecognition and measurement in the AnnualReport have not been subject to any uncertainty.Unusual eventsThe financial position at 30 November 2023 of theCompany and the results of the activities of theCompany for the financial year for 2022/23 havenot been affected by any unusual events, despite matters described in the section "The year thatpassed and follow-up on last year's expected development"Subsequent eventsNo events materially affecting the assessment ofthe Annual Report have occurred after the balancesheet date.Financial risk management policyThe company’s principal financial instruments comprise cash and cash equivalents. Other financial assets and liabilities, such as trade debtors and trade creditors, arise directly from the company’s operating activities. The main purpose of these financial assets is to provide finance for the company’s ongoing operations. The company may utilise derivative financial instruments to manage foreign currency exchange risk from financing activities.The main risks associated with the company’s financial assets and liabilities are interest rate risk, cash flow and liquidity risk, credit risk and currency risk as summarised below.Interest rate riskThe company does not have any external debt. The company has lending’s and borrowings with other group undertakings at a floating rate of interest. During the year, the interest rate exposure was reviewed but it was not deemed necessary to cover the interest rate exposure by any financial instruments.Credit riskThe company’s policy is to require assessments of customers such that deferred terms are only granted where an appropriate payment history is demonstrated, and credit worthiness procedures are satisfied. Cash flow and liquidity riskThe company’s activities are financed from long term loans from other group companies and cash. The company mitigates liquidity risk by managing cash generation from its operations. A central treasury team operates at a European level, controlling all borrowing facilities, investment of surplus funds and the management of financial risks for the company and its fellow subsidiaries. Currency riskThe company operates under a global policy to manage only intercompany lending’s and borrowings in foreign currencies by using financial derivatives to offset currency exposure.Forward contracts may be utilised to protect cash flows from adverse movements in exchange rates and are accounted for by translating balance sheet monetary items at contract rate.The company views derivative financial instruments as a risk management tool and does not use them for speculative or trading purposes.Volatility in foreign currency markets is closely monitored with a specific focus on the potential for heightened volatility arising from conflict in Ukraine and wider European economic conditions.

Beskrivelse af virksomhedens væsentligste aktiviteter

Key activitiesThe Ecolab entities develop, produce and sell abroad range of solutions comprising cleaning,warewashing, laundry and disinfection products toprofessional customers within a large number ofmarket areas. The solutions range from singleproducts to programmes and complex hygieneconcepts with patented information and dosagetechnologies, which combined ensure optimumcleaning and hygiene standards — with a minimumconsumption of water and energy resources.