Carsoe Seafood Aps

Ledelsesberetning

Key activities Carsoe Seafood is a leading global provider of niche processing equipment and services for the onboard seafood and food processing industries. Carsoe Seafood’s activities comprise product development, manufacturing, engineering, installation, and service. Development in the year Carsoe Seafood continued to supply customers globally with our market leading solutions in 2024. Carsoe Seafood managed to win several new large and medium-sized green-field contracts. The contracts are geographically diverse and in line with the core offering of Carsoe. Besides the new, large contracts, Carsoe Seafood has successfully continued to grow its aftersales segment and strengthened sales of its standard product portfolio. Carsoe has further consolidated its operational footprint and focused on strengthening core business operations. This includes strengthening supply chain resilience, engineering efficiency, product standardization and innovation. In addition, the data foundation has been strengthened for improved financial transparency and operational planning. The past year and follow-up on development expectations from last year Past years expectation to 2024 result was in the range of MDKK 10-14. The income statement of the Company for 2024 shows a loss of TDKK -45,863. On 31 December 2024 the balance sheet of the Company shows a positive equity of TDKK 16,457. 2024 was negatively impacted by one-off costs related to the closure of the production facility in Kristiansund, Norway, and the opening of our new service site in Tromsø, one of the largest Seafood landing ports globally. Going forward palletizing and elevator equipment will be engineered and produced in Aalborg. Special risks - operating risks and financial risks Operating risks Carsoe Seafood’s most significant operating risks relate to its ability to gain and retain client relations, key employees and always to be at the forefront of technological development within Carsoe Seafood’s business areas. Refer to the sections Knowledge resources and Research and development activities below for information on how Carsoe Seafood work with knowledge and development. Financial risks The Group does not hedge the currency rate between Danish Krone (DKK) and the Euro (EUR) as this rate is fixed. Exposure to other currencies is limited, as euro is used as the main contract currency. Currency adjustments of investments in subsidiaries which are independent entities are recognized directly in equity. As a main rule, currency risks related to the investment in subsidiaries are not hedged, as Carsoe Seafood regards these as long-term strategic investments that are not affected by short term fluctuations in currency rates. Carsoe Seafood’s worldwide activities imply a credit risk in connection with sales to customers. We take measures to hedge our exposure, for instance by introducing letters of credit. Targets and expectations for the year ahead In 2025, Carsoe Seafood will continue investing in and executing on its profitable growth plan, while improving its operations to increase long-term margins. The Company expects EBITDA for 2025 to be in the range of mDKK 20-30. Carsoe Seafood has a proven ability to grow into new markets and offer new sought-after solutions to its customers. Carsoe expects to continue strengthening its position in the consolidating market for onboard turnkey seafood processing solutions, including through a stronger aftermarket offering, while expanding its presence within new niche segments and actively selling its products standalone. In 2025 Carsoe Seafood will benefit from improvements throughout 2024. The bid phase has seen significant improvements due to the incorporation of increasingly detailed calculations and 3D drawings prior to project sales. This approach has established a robust foundation for project execution. Additionally, the ongoing standardization of the product portfolio, along with electrical and automated solutions, combined with rigorous testing principles, has minimized errors and rework during the installation phase. Research and development Our research and development activities are primarily carried out at the head offices in Denmark. Development activities include the development of equipment and solutions within Carsoe Seafood's business areas. Multiple employees were working on improving and standardizing products and a total of 7 FTEs were fully dedicated to product development activities during the financial year, with a particular focus on standardisation, automation, and leveraging the inhouse competences across all product capabilities. Intellectual capital resources Carsoe Seafood is dedicated to supplying cutting-edge equipment and installations for manufacturing and processing in the food and seafood sectors. This demands a wealth of knowledge resources, including the expertise of our employees and fine-tuned business practices, with focus on engineering, project management, and aftermarket services. Circularity and maximizing performance to reduce CO2 Footprint In 2024, we have increased our focus on extending the lifespan of our machines and production lines through strategic initiatives in servicing, repairs, and retrofit solutions. This work is central to our ESG strategy, where we aim to reduce resource consumption and CO2 emissions. By analysing the total service potential in the market and mapping Carsoe’s installed base, we have gained a solid overview of the opportunities to target our resources and offer the best solutions to our customers. This includes everything from repairs and upgrades to tailored service agreements and the supply of spare parts. Retrofit solutions and servicing directly contribute to a sustainable future by: • Extending the lifespan of equipment, thus reducing the need for extracting and producing new materials• Increasing the efficiency of existing machines, which reduces energy and resource consumption as well as emissions For our customers, this approach means enhanced operational reliability, reduced costs, and improved productivity. With our software Carsoe Insights, we have created a platform designed to ensure maximum performance and uptime for our customers’ production facilities and minimize the CO2 footprint. With Carsoe Insights, we enable our customers to maximize their production while supporting their goals of reducing environmental impact. Corruption and bribery Carsoe Seafood maintains a strict zero-tolerance policy against corruption and bribery, and we take all necessary measures to prevent such risks in our business relationships. Any suspected violations of this policy are thoroughly investigated. To ensure compliance with our core values and Code of Ethics, the group has developed written compliance guidelines and policies that contains our anti-corruption policies, as well as policies related to Supplier Code of Conduct, money laundering, export control, and international trade sanctions. Our executives are required to confirm their compliance with these policies every three months. Our Code of Ethics requires employees to act with integrity and uphold acceptable ethical standards for human rights. To mitigate risks associated with our business partners, Carsoe Seafood has a Supplier Code of Conduct that sets out the same requirements for our suppliers of goods and services. Throughout the financial year 2024, management remained vigilant, diligently monitoring for any signs of non-compliance. No breaches of the stringent compliance rules were detected, affirming the effectiveness of the established procedures and controls. Carsoe Seafood is poised to uphold its reputation for integrity whilenavigating evolving regulatory landscapes with confidence and integrity, securing anti-corruption and bribery is top of mind in all business affairs. Carsoe Seafood does not foresee any material risks related to corruption and bribery and processes as policies have been calibrated to mitigate these concerns effectively, aligning with our commitment to compliance with rules and regulations. Human rights Our Code of Ethics requires employees to act with integrity and uphold acceptable ethical standards for human rights. To mitigate risks associated with our business partners, Carsoe Seafood has a Supplier Code of Conduct that sets out the same requirements for our suppliers of goods and services. If a supplier violates our rules, we will work closely with them to help improve business standards and employee well-being. However, Carsoe Seafood reserve the right to terminate contracts with suppliers who intentionally violate our rules and refuse to cooperate in implementing planned improvements. In the 2024 period, we did not identify any breaches of our Code of Ethics or Supplier Code of Conduct, and we are committed to maintaining our current procedures in the future. Employees The achievement of Carsoe’s strategic and financial objectives is intrinsically linked to the capabilities and dedication of our employees. Considering the increasing complexity of the global business environment, intensifying competition, and the accelerating impact of digital transformation, the demand for skilled professionals and effective leadership has never been greater. As such, securing and retaining top talent remains a key priority for Carsoe. Several strategic initiatives were implemented in 2024 to support this objective. The company's policy for working with Social and Personnel Affairs is maintained and communicated through both the company's personnel handbook and its compliance policy. Carsoe's strategy includes developing young talents through apprenticeship programs and actively engaging in dialogues with youth and vocational schools to serve as an active partner and an integral part of the surrounding community. Fostering an Inclusive and Engaging Workplace Establishing an inclusive, supportive, and engaging workplace is essential for long-term growth and the well-being of our employees. In 2024, we reaffirmed our commitment to our workforce by launching initiatives aimed at reducing turnover, enhancing onboarding, supporting professional development, and promoting employee health and well-being. Reducing Turnover Through Enhanced Onboarding and Cultural Focus In 2024, Carsoe placed significant emphasis on employee retention through a series of targeted initiatives. A key focus was the improvement of our onboarding process, ensuring a strong foundation for new employees. Additionally, we implemented structured exit interviews to gain insights into employee experiences and departmental dynamics. These exit interviews highlighted areas of strength—including a strong sense of community, professional growth opportunities, and high engagement levels—as well as areas for improvement, such as better resource allocation, enhanced competency development, and improved internal communication. Based on these findings, several initiatives have already been launched to improve the employee experience. We plan to continue conducting exit interviews in 2025 to further support a stable and engaged workforce. To strengthen our onboarding practices, we conducted an in-depth analysis in 2024, resulting in valuable input used to develop an enhanced onboarding program—particularly for managers. This includes a new digital learning platform that helps leaders understand the onboarding process and its importance for both new hires and existing teams. These initiatives have led to a more structured and inclusive onboarding process, contributing to a decrease in employee turnover compared to the previous year. This progress aligns with our ESG objectives of fostering a sustainable and attractive workplace environment. Prioritizing Employee Health and Well-Being Employee health and well-being remain central to Carsoe’s corporate culture. In 2024, we conducted a comprehensive health survey, complemented by individual consultations with a healthcare advisor at our Aalborg facility. Furthermore, our annual well-being survey was extended across the Carsoe Group in 2024, providing critical insights into employee engagement and overall workplace satisfaction. We recognize that ongoing improvement is essential. Looking ahead, we remain committed to strengthening our people strategy, with a strong focus on well-being, career development, and a workplace culture that attracts and retains top talent. ESG Performance Our ESG effort focus on three key areas: People, Planet and Product. Under People, our goals focus on expanding workforce competencies, nurturing the next generation of specialists, and enhancing the safety of our products for end users. For Planet, our objectives include transitioning to renewable electricity, mapping Scope 3 emissions by 2026 and commit to the Science-Based Targets initiative (SBTi). Finally, our Products pillar emphasizes reducing resource consumption, such as energy, water, and materials by improving the efficiency of our equipment and focusing on circularity to extend the lifespan of our solutions. By embedding our People, Planet, and Products strategy into every aspect of our operations and our overall strategy, we ensure that sustainable practices shape our everyday decisions and future direction. With a solid foundation in place, our ESG strategy is well-positioned for further growth and adaptation as we navigate the rapidly evolving ESG landscape. Uncertainty relating to recognition and measurement There has been no uncertainty regarding recognition and measurement in the Annual Report. Unusual events The financial position at 31 December 2024 of the Company and the results of the activities and cash flows of the Company for the financial year for 2024 have not been affected by any unusual events. Subsequent events No events materially affecting the assessment of the Annual Report have occurred after the balance sheet date.