Fairwind A/S

Development in activities and financial matters
The profit for the year amounts to DKK -7.026 thousand (2021: 41.942 thousand) and total equity amounts to DKK 118.889 thousand (2021: 130.509 thousand). The result is impacted by DKK 23.184 thousand connected with a write-down of a Russian entity. FairWind Group’s Management considers the development in turnover and profit levels for the year satisfying given the circumstances in the market outside of the company’s control. The year 2022, has in many ways been a challenging year for FairWind A/S like for any others in our business. The year started with post effects from the COVID-19 and was followed by the invasion of Ukraine by Russia. Both countries with high activity levels with ongoing projects and therefore a challenge to navigate in. Taken the circumstances into consideration we manage to secure our employees in Ukraine and support on an ongoing basis by continuing to pay the required salaries. In Russia we decided to close the activities and retreat from the country until further notice which has impacted our net result negatively by 23MDKK. The strength of our business is our capabilities to adjust to the current situation. With the war in Ukraine, FairWind early realized that a withdrawal from the Russian market was inevitable, while revenue from Ukraine would be heavily negatively impacted. Therefore, an early commercial focus shift was conducted to ensure revenue streams and mitigated for the impacted countries, which was successfully achieved with solutions in our Service, Offshore, and Central & North Region, compensating the lost revenue and securing a satisfying revenue for 2022. FairWind was also impacted negatively by the continuing supply chain challenges because of the COVID-19, projects have been postponed and planning of resources has created some pressure to the organization, but effects has been less than seen in 2021.
FairWind is keen to follow our customers’ technical development, and this year, several of our customers introduced new platforms. As strategic and preferred supplier to the largest OEMs in the world, our customers rely on our expertise and knowledge in these situations, meaning that FairWind was some of the first companies to install based on new technology. We had a steep learning curve, but eventually optimized the installation solution of these technologies together with our customers and now stand in a great position to execute projects with these new platforms. The business has also been impacted by the current inflation trend worldwide. To mitigate this risk, renegotiations with customers have taken place throughout the year. Our proactive approach and dedicated focus on cost controlling and mitigating activities means that we were able to withstand the pressure in a satisfactory manner, keeping cost increases below inflation rates in the majority of our countries.

The challenges mentioned above also resulted in an increased net working capital combined with extra investment in tools and training to support the customers new platforms impacted the cash position negatively by the end of 2022. Overall, 2022 proved itself to be a challenging year for FairWind, where a mixture between the COVID-19 aftereffects combined with the war in Ukraine have challenged us. Though, it has been satisfactory to see that our flexible business model once again stood its test and proved that it not only provides benefits and solutions for growing the business, but also provides the ability to navigate and adapt to challenging markets and unforeseen issues.