Nissens Cooling Solutions A/S

Management’s review

Business and Financial reviewThe Company's income statement for the year ended 31 December 2022 shows a loss before tax of DKK 175 million and the balance sheet at 31 December 2022 shows equity of DKK 26 million.The net revenue for the for the financial year amounts to DKK 1,123 million. The net income for the year is DKK -136 million compared to net income of DKK -42 million last year (8 months), due to a number of reasons: Externally the company is impacted by the geopolitical instability affecting order timing and supply chains, energy crisis and high inflation. Internally the company is impacted by transformation of the operations footprint and one time quality costs on newly introduced product platforms to the Wind Industry.Market conditions in the wind industry continue to be challenging. Introduction of new product platforms from the global wind turbine manufacturers and the geopolitical instability impacts timing of orders. The industrial business segments see continuously increasing market activity following Covid-19.Operationally the company is impacted by inflationary pressure on materials, energy and freight rates.Material costs and energy have seen unprecedented fluctuations in 2022. There are present indications of stabilisation, but it is not fully clear what the impact will be. To the extent possible, fluctuations in material prices will continue to be reflected in future commercial agreements.The financial year is impacted by one-time costs related to transformation of and optimization of the operations footprint as well as quality costs related to newly introduced wind product platforms.Management considers the results of Nissens Cooling Solutions A/S as unsatisfactory.