Dafa A/S

Ledelsesberetning

Key activities DAFA contributes sustainable, long-lasting foam and rubber solutions which seal, absorb and protect. The goal is that customers experience added value by collaborating with DAFA and that they choose DAFA as their preferred supplier.DAFA focuses on two key segments; Industrial Solutions and Building Solutions.DAFA's business model is through a global footprint to follow our customers development and requirements by offering high service and quality in sustainable, long-lasting foam and rubber solutions which seal, absorb and protect. We want to grow together with our customers by focusing on close customer relations and development of innovative quality products and solutions. DAFA delivers World-class solutions driven by our passion for Innovation and Sustainability. The solutions are produced and distributed through divisions in Denmark, Poland, Italy and China. In addition, there are sales offices in the USA, Sweden, Norway, Germany and India Development in the year The income statement of the Company for 2024 shows a profit of TDKK 9,941, and at 31 December 2024 the balance sheet of the Company shows equity of TDKK 73,591. Outlook ln 2025 revenue is expected to increase at a range between 3% to 5%, and expectation is also a profit before tax in the range of DKK 15 million to DKK 20 million. The growth expectation is based on the continuing investment initiated in the last couple of years when DAFA Group has moved from having a local footprint to being present with a global footprint to support both existing global key customers as well as to gain new customers and new markets. The past year and follow-up on development expectations from last year Overall, financial performance for 2024 was not satisfactory as the result was not in line with expectations. Special risks - operating risks and financial risks Particular Risk In DAFA, risk is a natural part of the way the business is operating. Efficient risk management ensures that the risk is evaluated periodically and addressed daily to reduce the risk to an acceptable level. The Board of Directors has the overall responsibility for DAFA's risk management and for identifying and controlling the risk. Management has the daily responsibility to follow the overall guidelines and to report to the Board of Directors about the most important risk areas. Operating risks The Group's key operating risks relate to the ability to maintain and develop its position at existing customers while increasing the market share. The Company's global footprint supports thereby the ability to minimise operating risks. Market risks Due to a relatively high solvency ratio and with a global presence, the Company is only to a limited extent exposed to major periodic fluctuations in sales. Foreign exchange risks Due to foreign activities, profit, cash flows and equity are affected by the exchange and interest rate developments for several currencies. It is the Company's currency policy not to hedge the currency risks as most transactions are naturally hedged through purchases and sales in the same currencies. Interest rate risks Due to its high solvency ratio and financial resources, the Company is only to a limited extent exposed to interest rate changes. Credit risks According to the Company's credit policy, all major customers are rated on a current basis. Research and development DAFA continuously develops and improves its products in cooperation with its customers. Related costs are charged to the income statement as they are incurred. Resources spent on implementation of new technology is capitalized under the item completed development projects. External environment DAFA aims to live in harmony with our surroundings, neighbors as well as the environment.Therefore, DAFA has set out an ambitious strategy: “DAFA Go Green” based on the most significant risks and impacts for climate, environment and CSR. The goals and the status of achievement are reported on DAFAs website on an annual basis:https://dafa-group.com/en/sustainability Intellectual capital resources It is essential for DAFA's continued growth to retain and develop employees; therefore, significant resources are allocated to these efforts. To ensure competitiveness and efficiency, new technology investments are made continuously alongside continued competence development. Intellectual capital resources are of great importance to DAFA. In the construction segment, continuous product development is carried out based on knowledge of the market and our customers. In the industry segment, customized quality solutions are developed for which our employees' know-how of materials and possible solutions is a key factor. Subsequent events No events materially affecting the assessment of the Annual Report have occurred after the balance sheet date.