Thornico Holding A/S

Ledelsesberetning

Main activities The Group’s activities comprise food ingredients, food technology and packaging, sport and fash-ion, real estate and shipping (until June 2023), in global markets primarily via wholly owned sub-sidiaries. The Parent company’s activity comprises investments in subsidiaries. Development in activities and financials including development for next year 2023 was an eventful year for the Thornico Group. The subsidiary Brødrene Hartmann A/S was delisted in 2023 and in Q1 2024 became 100% owned by Thornico Food & Food Technology Group A/S. This transaction impacted the consolidated Group equity negatively by DKK 692m in 2023. The Group sold its shipping activities in June 2023. The financials of the shipping activities are shown as discontinuing operations in the 2023 profit & loss accounts. The net result of discontinu-ing operations amounted to DKK 374m. Due to the discontinuing of the shipping operations, the aggregated revenues in the consolidated income statement for the Group decreased compared to last year by DKK 2,659m to DKK 9,473m. Comparative figures are not restated. Profit before tax for continuing operations was realized at DKK 508m. Profit before tax for discon-tinuing operations was realized at DKK 457m so total profit before tax was realized at DKK 965k. Management considers the result satisfactory. For 2024 we project Profites before tax within the range of DKK 750 – 850m. The past year and follow-up on development expectations from last year At the date of the Annual Report for 2022 Management expected Profit before tax for 2023 in the range of DKK 700m – 800m. Aggregated profit before tax, for both continuing operations and discontinuing operations, was re-alized at DKK 965m, exceeding the expectation. This was mainly due to higher sales than expected in the food technology and packaging Group and to proceeds from the sale of the shipping activi-ties. Particular risks Currency risks Due to the global nature of all activities in the Group, the Group is exposed to currency transaction risks and currency translation risks. Transaction risk is generally hedged as concerns the packaging and sport & fashion activities. This is done in accordance with the foreign exchange policy for these activities. For the Group's other activities, hedging is handled within the Thornico Group through balancing of income and expenses in the currencies relevant for these activities. Translation risks are mainly associated with the translation into DKK of earnings and net assets in foreign subsidiaries. Translation risks are not hedged. Interest bearing debt is mainly in DKK and with variable interest rate. Capital resources Via its positive earnings and development, the Group has sound and adequate capital resources available for new investments and growth. Business risks The spreading of the Group’s investments is well balanced between the different main areas, see our comments in the above paragraph Main activities. The Group’s intention is to improve its mar-ket position in the individual areas. The Group is market leading in several areas within foods, and the Group intends to achieve a more dominant role in other areas within the respective industries. Investment properties are measured to fair value. Changes in the determined rate of return will af-fect the fair value in the balance sheet and the fair value evaluation in the income statement (ref. consolidated note 13). Research and development The Group incurs material expenses for both research and development to create a basis for the future positive financial development. The Group places great importance in recruiting and retain-ing competent and highly specialised employees in order to maintain a leading position within all its business activities. Subsequent events No events materially affecting the assessment of the Annual Report have occurred after the balance sheet date.