Indorama Ventures Hygiene Denmark A/S

Ledelsesberetning

Management´s Review Financial Highlights Seen over a 5-year period, the development of the group can be described by means of the following finan-cial highlights: DKK 1.000 2023 2022 2021 2020 2019 Financial Highlights Result Revenue 700.347 967.576 1.149.212 1.018.063 997.512 Gross result 4.390 26.090 87.211 121.772 59.997 Result from primary activities -34.912 -25.576 30.821 65.852 15.046 Result before financial items -24.741 -14.575 42.579 77.600 24.003 Net financial gain (loss) -15.303 3.067 9.096 -11.515 1.969 Result of the year -29.076 -2.723 47.043 60.082 27.404 Balance Sheet Balance sheet total 629.181 663.427 693.361 688.445 672.158 Investment in property, 15.764 18.434 33.253 12.937 13.036 plant and equipment Equity 232.912 266.500 269.104 273.368 283.698 Number of employees 280 303 327 317 308 Financial ratios in % Gross margin 0,6 2,7 7,6 12,0 6,0 Operating margin -3,5 -1,5 3,7 7,6 2,4 Return on net assets -3,8 -2,1 6,2 11,4 3,5 Solvency ratio 37,0 40,2 38,8 39,7 42,2 Return on equity -11,6 -1,0 17,3 21,6 10,2 The financial ratios are calculated as followed: Gross profit x 100 Gross margin = Revenue Result before financials items x 100 Operating margin = Revenue Result before financials items x 100 Return on net assets = Average assets Equity at year end x 100 Solvency ratio = Total assets Result for the year x 100 Return on equity = Average equity Market Conditions The core business of Indorama Ventures Hygiene Denmark A/S is fibers for sanitary products (wet wipes and other kinds of disposable wipes, hygiene products for women and children). The sale of bicomponent fibers for the absorbent core in hygiene products and for the distribution layers in diapers and female care products is still a strategic area to Indorama Ventures Hygiene Denmark A/S. Baby wipes and other kinds of disposable wipes such as cosmetic pads and cleaning wipes for household use still have high priority. The area uses viscose fibers as well as polyester fibers and polypropylene fibers and Indorama Ventures Hygiene Denmark A/S has managed to retain a leading position when it comes to polypropylene fibers. The sale of polypropylene fibers for diapers is still a significant area to Indorama Ventures Hygiene Den-mark A/S. Apart from manufacturing fibers for disposable products (diapers, sanitary towels, panty liners, tampons and wet wipes), Indorama Ventures Hygiene Denmark A/S also manufactures fibers for reinforcement of concrete, bonding of insulation materials and other building materials, and fibers for air and liquid filtra-tion. Performance in the year The result of the year after tax was a loss of tDKK -29.076 against a loss of tDKK -2.723 in 2022 which is considered unsatisfactory. The drop is primarily caused by the volume in 2023 which is significantly lower than we expected in connection to preparing the annual report 2022 primarely due to inflation which sig-nificantly reduced demand. Special Risks Currency Risks The export share of Indorama Ventures Hygiene Denmark A/S of nearly 100% means that the result, finan-cial flow and equity are influenced by the exchange rate movements and the interest rate development for a number of currencies. It is the currency policy of the Group to hedge commercial currency risks aside from Euro. The hedging is made by means of foreign exchange transactions for the hedging of expected turnover, cash and net currency receivables in the next month. No speculative currency transactions are concluded. Currency risks related to equity investments in subsidiaries and associated companies abroad are generally not being hedged, as it is the opinion of the company that a continuous hedging against currency exposure of such long-term investments will not be optimal based on a total risk and cost consideration. Credit Risks The group policy for undertaking credit risks means that all bigger customers are regularly being credit rated. Moreover, some customers are credit insured or factoring are used on a part of the customers. For customers that are factored the entire credit risk has been transferred. Goals and Expectations of the Coming Year The result and revenue in 2024 are expected to be 15-20% higher than 2023 due to more volumes and more favorable supplier agreements. External Environment Indorama Ventures Hygiene Denmark A/S has been holding an environmental certification since 1998, and once a year we publish an environmental statement describing our efforts in a number of key areas regarding the company's impact on the external environment. Moreover, Indorama Ventures Hygiene Denmark A/S has been certified in energy demand management since 2007 which means that the company has a constant focus on effective energy utilization. Development In 2024 a continued high focus on the development of new products will remain. The development activities primarily include development of new fiber products as well as new processes and applications of the fiber products. The development activities of the company are currently coordinated with the strategy and the development plans of the group and the market demand so that new and innovative fibers can be introduced in accordance with the demand of the market and preferably before the competitors. The development activities of the company form part of the overall Indorama Ventures Hygiene Denmark A/S development efforts, and in our opinion, they are not of a size, extent or character that call for their being capitalised as assets in the financial statements. Subsequent events No significant events which are assessed to have a material influence on the statutory financial statements have occurred after the balance sheet date.

Beskrivelse af virksomhedens væsentligste aktiviteter

Business Area Indorama Ventures Hygiene Denmark A/S develops, manufactures and markets synthetic fibers from polypropylene, polyethylene and polyester. These plastic types are characterized as being very pure and environmentally sound (consist of hydrogen and carbon) and have a high processability. Synthetic fibers are today used for packaging material, dispos-able equipment and articles in many different industries. Indorama Ventures Hygiene Denmark A/S is a high-technology production company, which develops in-dividual fiber solutions for our customers, ensuring the customers the required functional properties such as softness, bulk, strength, surface character and a three-dimensional structure - and at the same time meet-ing their demand for maximum processability on their production equipment. The fibers are further processed primarily by the nonwoven industry, where the fibers are used in the fol-lowing processes: • carded mechanically bonded textiles (spunlace and needlepunch processes) • wet and drylaid paper processes • carded thermal bonded textiles • air-laid process. Nonwoven products based on Indorama Ventures Hygiene Denmark A/S fibers are sold to the hygiene industry and the industry for technical textiles.