Thermax Denmark ApS

Ledelsesberetning

Key activitiesThermax Denmark ApS is a wholly owned subsidiary of Thermax Netherlands B.V., which in turn is wholly owned by Thermax Ltd., an Indian publicly listed company. The ultimate holding company of Thermax Ltd. is RDA Holdings Private Limited, Pune, India.The main activity of the company is owning shares in the fully-owned subsidiaries Danstoker A/S, Boilerworks A/S, Ejendomsanpartssselskabet Industrivej Nord 13 (estate company) and Thermax Chemical Europe A/S. All operational activities take place within these respective subsidiaries.Danstoker A/S is the parent company of Danstoker Poland Sp. Z o.o.The primary activities within Thermax as under the label of Danstoker. The Danstoker Group designs, produces and sells boilers and relevant equipment to the energy market, including rebuilding and servicing of boilers. The product range of the Danstoker Group is continuously adapted to the 5 categories:1.Solid fuel market, mainly based biofuels2.Combined heat and power market3.Exhaust gas market4.Oil/gas market5.Thermax Ion Exchange Resins has been started up successfully and activity has been transferred from Danstoker A/S to Thermax Chemical Europe A/S as of 01.04.2025.The activity of “Ejendomsanpartsselskabet Industrivej Nord 13” is to own and lease estate. The service activities in Boilerworks were sold at 1st November 2020. Only few projects need to be finally closed.Development in the yearThe market in general for biomass fired boilers has settled compared to the two previous years where activity was very high due to Europe moving away from dependency of Russian gas and at the same time also the high focus on moving away from fossil fuels towards a more environmentally friendly energy production.Danstoker has been able to maintain its position as the market leader within medium sized biofuel boilers in our primary marketsAs the gas prices have come down again it has been possible to gain back a bit of the lost on oil and gas fired boilers. Danstoker has maintained its position in the primary markets, and with the setup in Poland we are processing on building a stronger position in the eastern part of Europe. Our production in both Herning and Ostrowiec has been running at full capacity the first 3 quarters of the year. In the last quarter we have reduced our capacity with around 10%, to better match our backlog and expectations going forward.Order intake has been on a lower level compared to the last two years. Especially on biomass plants we are down to 60% of last year order booking in this segment. The present backlog is back on a more normal level compared to the last two extraordinary high year’s.The waste heat recovery boiler market consists primarily of stainless-steel economizers. The market segments for electrical boilers are expected to increase significantly over the coming years. The market for Service of boilers has maintained its level. Compared to last year the revenue is almost on the same level. The results achieved of the primary operation are above expectations.The year has been positively impacted by sales of Thermax Ion Exchange Resins via Danstoker. For the coming year sale of Ion Exchange Resins to the European market (+100 MDKK business) will be done through a newly established entity Thermax Chemical Europe A/S.Profit for the year before tax amount DKK 47,646 thousand and after-tax amounts to DKK 37,403 thousand. The total number of employees by end of financial year is 113 in Denmark and 117 in Poland.Targets and expectations for the year aheadThe overall volume of orders of the Danstoker Group at the end of the financial year is on an acceptable level.It is the aim of the Danstoker Group to create 2 profitable, strong sales and production companies in Danstoker A/S and Danstoker Poland Sp. z o.o., all as an attractive workplace with competent employees, based on competitive products sold to professional co-operation partners and customers in selected markets where such products are supplied in the quality and at the time and price agreed.It is also the Group’s aim to achieve optimal utilization of the production facilities.It is not yet known to what extent the potential end of the war in Ukraine will impact the company. For now, we see very good possibilities in the biomass segment when rebuilding of Ukraine will start. However, Danstoker Group will continue to monitor the situation to ensure the Company remains flexible in its ability to respond to changing circumstances.Besides the above mentioned the Management of the Group is of the opinion that it is not faced with special long-term risks, neither in terms of its markets, nor otherwise.The growing, necessary, political focus on CO2 on a global scale will in the long term contribute to making our CO2-neutral products within biofuels and electrical boilers even more relevant and will contribute to securing the Danstoker Group’s continued positive development.With all the initiatives taken the profit before tax for the financial year 2025/26 is expected to be around 25 mDKK.External environmentDanstoker A/S is devoted to environmental issues and is constantly striving to reduce the environmental impact resulting from the operations of the Company. The Company has no outstanding issues with the environmental authorities in complying with environmental permits and other environmental regulations. Danstoker A/S holds a ISO 14001 certificate. Danstoker A/S has decided for the coming years to focus on 4 of United Nations Sustainable Development Goals: "7 Affordable and clean energy", "9 Industry, Innovation and infrastructure", "12 Responsible consumption and production" and "13 Climate action". In the coming period the Company will have special attention to reduce the consumption of energy during manufacturing, optimizing the design to reduce material use and better waste management to recycle more material. Furthermore, a project is running with the local university with focus on mental health in Danstoker.In relation to Code of Conduct Danstoker has decided to lean towards UN Global Compact’s ten principles for responsible business conduct.Subsequent eventsThermax Ion Exchange Resins has been started up successfully in 2024/25 and the activity has been transferred from Danstoker to another subsidiary Thermax Chemical Europe A/S as of 01.04.2025.Except from above, the Management is of the opinion that from the balance sheet date until today, no events have occurred which could alter the assessment of the annual report substantially.