Ppg Coatings Danmark A/S

Ledelsesberetning

The Company's principal activities
PPG Coatings Danmark A/S is a 100%-owned subsidiary in the Group of PPG Industries Inc. headquartered in Pittsburgh, USA. As a global supplier of paints, coatings and specialty materials, PPG Industries Inc. operates in more than 70 countries and employs around 46.000 people to bring life to our purpose and promise: WE PROTECT AND BEAUTIFY THE WORLD™.
As in previous years, the Company's activities relate to three business areas - Architectural, Protective & Marine Coatings and Industry. It comprises production and distribution of paints, wood stain products and speciality products and we employ 307 people. Our production takes place at the factory in Søborg, Denmark, but products are also purchased within PPG Industries Inc. and from external suppliers. Distribution primarily takes place through wholesalers, distributors, DIY chains, direct customer deliveries or through the Company's 22 captive ProCenters where professional paint contractors buy products and tools.
In line with our corporate purpose and promise, the objective of the Company is to deliver quality products and continuously develop technologies that provide additional benefits to our customers.
Development in activities and the financial situation
The Company's Income Statement of the financial year 1 January 2024 to 31 December 2024 shows a result of tDKK 59.723 (2023: tDKK 25.564) and the Balance Sheet at 31 December 2024 a total of tDKK 771.566 (2023: tDKK 837.745) and an equity of tDKK 540.326 (2023: tDKK 480.603).
The 2024 result was more profitable than 2023 due to a focused effort to increase earnings. Management has
throughout the year been following the effects of geopolitical changes as well as inflation and interest rate
developments and adjusted business management strategies as deemed necessary.
Expectations for the future
The Company expects the result to further improve for 2025 due to changes implemented in 2024. The result is expected to be between DKK millions 45 and DKK millions 60 and revenue is expected to be between DKK millions 950 and DKK billion 1,1 in 2025.
Net profit/loss for the year compared with expected developments in the most recently published annual report
The result for 2024 is within our expectations and efforts to improve internally will continue.
Statutory Report on Responsibility. cf. Section 99a of the Danish Financial Statements Act
PPG Coatings Danmark A/S is, as part of the PPG Group, subject to the CRS policies that are implemented across the Group. PPG Coatings Danmark A/S's Statutory Report on Social Responsibility, cf. Section 99a of the Danish Financial Statements Act, can be found in the PPG Group ESG Report 2024 -
www.ppg.com/sustainability/en-US/progress-summary
In general, and due to statutory legal requirements, we refer to PPG Group ESG Report 2024. In addition, we have added local information below.
Key Environmental Health & safety Practice and Corporate Goals (2017 as baseline):
Waste: The more efficient we use materials to make our products, the less waste we produce and the fewer resources we consume. We work toward absolute material utilization throughout our manufacturing processes followed by eliminating, minimizing, reusing, and recycling the waste materials we do produce. Our corporate 2025-goal is a 25% reduction in waste. In our new wastewater cleaning equipment, we generate less waste than in the old due to a much higher sludge content. In total the waste intensity is reduced by 48 % compared to 2023.
Water: We see it as our responsibility to optimize water use through conservation and reuse. And continue to reduce our consumption of water in our production. Our corporate 2025-goal is a 20% reduction in water consumption. Ongoing water saving projects are not fully implemented in 2024 so, there is no effect on the water consumption which is very close to the 2023 level.
Energy: Most of our manufacturing processes are not energy-intensive, but we are committed to reduce our energy consumption to minimize our greenhouse gas (GHG) emissions, reduce costs and create more energy efficient facilities. Our corporate 2025-goals are a 15% in energy reduction and a 15% reduction in GHG emissions. The full effect of the LED lightning project finalized in the 2nd half of 2023 is now seen on the energy intensity; another contributing factor to a significant lower energy intensity is the way the compressed air system has been managed throughout 2024; with focus on flexibility and high priority given to leakages. The energy intensity is reduced by 21 % compared to 2023.
Spill and releases: We have strong management practices in place to prevent spills and releases, and our corporate spill-elimination standard requires the establishment of a spill-elimination program at our facility. Our corporate 2025-goal is a 65% improvement in our spills and release rate. 0 spills (Cat I-III) were recorded in 2023 and 2024.
Injury & Illness: The corporate target of PPG Injury and Illness (PPG I&I) incidents is zero. PPG I&I includes fatalities, amputations, third-degree burns and 30 or more calendar days of away from work. Our last recorded PPG I&I was August 2021, so we are now above 1300 days without an I&I incident at our manufacturing site in Søborg, but we have registered 1 I&I in 2024 related to slip, trip and falls hazard in our commercial part of the business.
EHS key performance indicators (Manufacturing):
EHS Indicators Calculation method 2024 2023 2022 2021 2020
Waste intensity Metric tons/100 ton production 3,93 7,66 6,40 5,22 5,60
Water usage intensity Cubic meters /metric ton production 0,58 0,56 0,51 0,50 0,50
Energy intensity Million British thermal unit/metric ton production.
Energy intensity is a rate calculated by electricity, natural gas and district heating/production volume at the manufacturing site Søborg.
1,12 1,42 1,59 1,45 1,22
Spill and releases (category I,II and III) Manufacturing site Søborg 0,00 0,00 11,95 0,00 0,00
Architectural commercial activities and facilities 0,00 0,00 0,00
Method for both calculations:
The rate is calculated by multiplying the number of Incidents (Category I/II/III) by 200,000, and then dividing that number by the number of working hours
Injury & illness - PPG II incident rate Manufacturing site Søborg 0,00 0,00 0,52 0,57 0,00
Architectural commercial activities and facilities 0,87 0,91 1,00
Method for both calculations:
The rate is calculated by multiplying the number of Incidents by 200,000, and then dividing that number by the number of working hours
The EHS indicators for PPG Coatings Danmark A/S' production facility are prepared in accordance with PPG Industries Inc.'s EHS accounting principles.
Conclusion
In conclusion, 2024 showed a good year across our EHS performance at manufacturing site Soborg. Production was increased by 7 %; energy intensity has been reduced by 21 % and waste intensity by 48 % compared to 2023. Neither PPG I&I or Class I, II and III spill/releases has been reported.
We will continue to measure, focus on and develop the above-mentioned key areas.
Employee relations
Our 307 employees are the key asset and intellectual capital resource of PPG Coatings Danmark A/S. In 2024 there has been a special focus on engagement and diversity. It is pivotal that we can attract and retain our employees and that they have the right competences. Hence, a clear focus on learning and development is crucial to ensure that we keep our employees engaged, productive and successful at every stage of their careers. We are committed to promoting from within wherever possible while also bringing in new ideas, thoughts, and insights. It is Management's assessment that PPG Coatings Danmark A/S has the right competences to develop its business positively going forward.
Overall, our Global Code of Ethics sets the standard for the relationship between PPG Industries Inc. and its employees. At PPG Coatings Danmark A/S, the HR-department manages employee related matters in view of the Code of Conduct to nurture a good working environment and accelerate employee development. Employees have access to an anonymous Ethics hotline, there are Ethics training, Ethics sessions for managers and Ethics is part of our Employee survey as we want to foster an environment where all can speak up. Our work council, which engages representatives from management, HR and employees, met five times in 2024 to discuss pertinent issues and assess progress in our work. Furthermore, the employee's trade union representative gives advice to employees if they have work-related problems. Our Code and daily practice in 2024 focused on:
Diversity: We value differences among us in experience, perspective, background, race, age, national origin, religion, sex, sexual orientation, gender identity and/or expression, culture, interests, geography, and style, and we strive for a collaborative environment in which everyone can participate and contribute. We base employment decisions on job qualifications and merit, which include education, experience, skills, ability, and performance.
Human rights, including labour rights: We respect the dignity and human rights of all people, and we comply with all laws pertaining to freedom of association, privacy, collective bargaining, immigration, working time, wages, and hours, as well as laws prohibiting forced, compulsory and child labour, human trafficking, and employment discrimination.
Non-discrimination and harassment: We give equal employment opportunity to and will not discriminate against individuals based on any status protected by applicable laws. We are committed to providing a workplace that is free from harassment and bullying.
Data privacy: We respect individual privacy rights and are committed to collecting, handling, reviewing, and protecting personal information responsibly and in compliance with applicable privacy and information security requirements and laws. We strive to respect the privacy of our employees by honouring our legal requirements and upholding high ethical standards.
As we continue our progress and focus on diversity, equity & inclusion as a business priority, we are aiming to build greater diversity in our candidate pools. This begins with a more refined and differentiated recruitment process. We use labour market data to ensure that our candidate slate reflects the labour market for the geography and function of the vacancy. An artificial intelligence tool helps us mitigate unconscious bias from our recruiting communications. Labour market data is utilized to determine diversity slate targets. Interviewers from underrepresented demographics is included in the selection process.
Finding the most qualified candidate is always our priority. While the time that it takes to build a candidate slate will increase for certain roles, increasing diversity will improve business results for PPG Coatings Danmark A/S. Diverse teams drive innovation and efficiencies, while driving growth for PPG Coatings Danmark A/S.
We also continued to nurture a culture of health, where our employees become responsible for their individual well-being through informed, active participation in health and wellness activities. We focus on nutrition, exercise, health, and mindfulness/stress which research has identified as key to our employee's overall well-being. For example, the wellness program at PPG Coatings Danmark A/S, which has been in place for several years, includes different physical wellness activities, Employee Assistance Program and Financial Wellness Program. We are fulfilling our corporate 2025-goal that is 100% of PPG facilities have wellness programs.
During 2024 Management focused to set up processes for:
- Driving employee engagement accountability (targets was set for managers to focus on feedback and improvement actions). Target for 2024 accountability was index -0,08 with 2024 resulting in 4,16 compared with 2023 at 4,24. The target for 2025 is an index of +0,08. (Method: Gallup questionnaire)
- Female representation (monitoring ratios between female and male) Target in 2025 is globally a female representation of 35%. In Denmark 29,3% in 2024 (29,6% in 2023). (Method: Number of women / total number of employees). Focus will continue in 2025 with PPG Coatings Danmark A/S participating in the initiative 'Gender Diversity Pledge' organized by Dansk Industri/The Confederation of Danish Industries.
- Secure mutual respect in all sectors of the business with diversity workshops and focus on ethics. For 2024 all employees at PPG Coatings Danmark A/S engaged through our annual mandatory online training and our Corporate Audit Services regularly monitor and review employee compliance with the Global Anti-Corruption Policy.
Statement on gender distribution in management
To ensure that employees feel valued and respected, PPG Industries Inc. is committed to providing a workplace that embraces a culture of diversity and inclusion. Diversity among employees and within management is considered a strength for the business.
As we continue to measure, keep focus on and develop the above-mentioned key areas, increased focus on female representation and more specifically gender distribution, paragraph 99b, continues with concrete goals set for 2027:
Number of members % of women - 2024 % of women - 2023 Goals to be achieved latest 2027
Board of Directors 3 33% 33% Maintain the achieved level
Other Management level 5 0% 0% 33%
In 2024 we continued with the achieved goal of 33% distribution relating to the underrepresented gender in our Board of Directors.
In addition to the goals set in accordance with Danish Financial Statements Act paragraph 99b, PPG Coatings Danmark A/S has established goals that better reflects the Company outside the matrix organization of PPG Industries Inc.; the below table reflects PPG Coatings Danmark A/S's gender distribution over the two management levels:
Number of members % of women - 2024 % of women - 2023 Goal to be achieved latest 2027
Management 11 36% 36% 30%
Managers 52 30% 25% 30%
We are actively promoting gender diversity, and this can be seen with increases from 2023 to 2024 in % of women in Manager positions. It is PPG Coatings Danmark A/S's ambition to not only reach the targets set for 2027 but strive to go beyond the targets set above.
To improve gender distribution in 2024, it is part of our practice to shortlist both male and female candidates when we hire or promote employees to management positions. We also provide equal opportunity for all employees to increase their skills and competences through additional training and education and we continue to encourage and support female colleagues with management potential and ambitions to seek a career within PPG Coatings Danmark A/S.
The overall objective of the PPG Group is to have the highest standards within Corporate Social Responsibility.
Considerable resources have been used to implement the global standards for environment and work environment.
Anti-corruption and bribery
Our Global Code of Ethics and Global Anti-Corruption Policy make clear that PPG Industries Inc. prohibit bribery and corruption in all of its business dealings in every country. We must govern our conduct in order to conform to the rigorous anti-bribery and anti-corruption laws in place throughout the world. Hence, PPG Coatings Danmark A/S' employees and intermediaries are prohibited from making, offering or accepting bribes, payments or anything of value in order to improperly obtain or retain contracts, business, government approvals, favourable tax or customs rulings, or to secure any other improper business advantage, with any entity or individual.
At PPG Coatings Danmark A/S, we have established internal controls and accounting practices to prevent and reduce the risk of use of funds for bribes or unlawful payments. Furthermore, our Global Code of Ethics provide guidance to our employees in their daily business conduct. If there is suspicion or known violations of our policies employees must report the information to our global Chief Compliance Officer, Danish counsel representative or they can use our corporate confidential, anonymous 'Ethics Hotlines'.
In 2024 all employees at PPG Coatings Danmark A/S participated in and passed our annual mandatory online training and our Corporate Audit Services regularly monitor and review employee compliance with the Global Anti-Corruption Policy.
We continue to train our employees to prevent compliance breaches and make sure that their knowledge and understanding is updated. Target 2025 is 100% participation as in 2024.
Data ethics
PPG Group uses advanced technologies such as artificial intelligence or machine learning, where it is found useful. The company handles general data in the form of customer data, vendor data and employee data.
Data is processed in accordance with the GDPR and our privacy and information security policies to protect the information from any misuse in breach with legal requirements and our high ethical standard.
Uncertainty relating to recognition and measurement
Recognition and measurement in the Annual Report have not been subject to any uncertainty.
Subsequent events
No special events have incurred after closing of the financial statements of 2024. The Management is still following the effects of geopolitical changes as well as inflation and interest rate developments to see if any effects are expected to profit in 2025.

Beskrivelse af virksomhedens væsentligste aktiviteter

The Company's principal activities
PPG Coatings Danmark A/S is a 100%-owned subsidiary in the Group of PPG Industries Inc. headquartered in Pittsburgh, USA. As a global supplier of paints, coatings and specialty materials, PPG Industries Inc. operates in more than 70 countries and employs around 46.000 people to bring life to our purpose and promise: WE PROTECT AND BEAUTIFY THE WORLD™.
As in previous years, the Company's activities relate to three business areas - Architectural, Protective & Marine Coatings and Industry. It comprises production and distribution of paints, wood stain products and speciality products and we employ 307 people. Our production takes place at the factory in Søborg, Denmark, but products are also purchased within PPG Industries Inc. and from external suppliers. Distribution primarily takes place through wholesalers, distributors, DIY chains, direct customer deliveries or through the Company's 22 captive ProCenters where professional paint contractors buy products and tools.
In line with our corporate purpose and promise, the objective of the Company is to deliver quality products and continuously develop technologies that provide additional benefits to our customers.

Beskrivelse af udviklingen i virksomhedens aktiviteter og økonomiske forhold

Development in activities and the financial situation
The Company's Income Statement of the financial year 1 January 2024 to 31 December 2024 shows a result of tDKK 59.723 (2023: tDKK 25.564) and the Balance Sheet at 31 December 2024 a total of tDKK 771.566 (2023: tDKK 837.745) and an equity of tDKK 540.326 (2023: tDKK 480.603).
The 2024 result was more profitable than 2023 due to a focused effort to increase earnings. Management has
throughout the year been following the effects of geopolitical changes as well as inflation and interest rate
developments and adjusted business management strategies as deemed necessary.

Beskrivelse af virksomhedens forventede udvikling

Expectations for the future
The Company expects the result to further improve for 2025 due to changes implemented in 2024. The result is expected to be between DKK millions 45 and DKK millions 60 and revenue is expected to be between DKK millions 950 and DKK billion 1,1 in 2025.