annual report 2012 - Dantherm

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annual report 2012 in brief

management interview

dantherm Dantherm was founded in 1958 by Ejlert Olsen. The company’s first product was a warm air heater for heating workshops and industrial buildings. In the 1970s, the product portfolio was extended to include dehumidifiers and ventilation products, and in the 1980s also to include mobile heating and cooling units for the armed forces and aid organisations. In the 1990s, climate control products for the Telecom industry were added.

Jørgen Møller-Rasmussen Chairman of the Board of Directors

Within the HVAC business area, Dantherm is an important European provider of products and solutions based on more than 50 years of experience within heating, ventilation, cooling and dehumidification of air.

Torben Duer President & CEO

competitiveness and increase market potential.

Within the Telecom business area, Dantherm is a leading global supplier of products for climate control in radio base stations. Why did the progress of 2011 not continue in 2012? Dantherm did not realise the expected growth in revenue or increased earnings in 2012 primarily because sales to Telecom network suppliers were lower than expected. This customer group consists of few important customers, who bought considerably less than in 2011.

Dantherm was listed on NASDAQ OMX Copenhagen in 2002 and currently has approx. 3,600 shareholders

Today, Dantherm is divided into two business areas: HVAC (Heating, Ventilation, Air Conditioning) and Telecom.

Dantherm AS Skallestad, Norway

Dantherm AB Söderköping, Sweden

Dantherm Air Handling Sp. z o.o. Dantherm Ltd.

Warszawa, Poland

Clevedon, England

Dantherm a/s Skive, Denmark

Dantherm Air Handling A/S Skive, Denmark

Dantherm Inc. Spartanburg, USA

Dantherm Air Handling Co., Ltd.

How did the other business areas develop? Revenue within HVAC increased by 18 % in 2012, which exceeded our expectations on a European market characterised by low growth. The increase is attributable to a focused effort within market and product development which has resulted in the capture of market shares. Within the business area of mobile heating and cooling, revenue nearly doubled relative to 2011. Within the business area of ventilation, Dantherm achieved growth of 18 % primarily driven by home ventilation products. Only within the business area of dehumidification did sales decrease slightly,

primarily due to the fact that flooding in Copenhagen in 2011 increased sales to an extraordinary extent. Revenue within Telecom network operators also increased by 18 % in 2012 in consequence of our strategic efforts. Has the Dantherm business strategy changed as a result of developments in 2012? No, the overall growth strategy has not changed, but key focus areas within market presence, product development, cost-efficiency and capital structure have been adjusted. Furthermore, Dantherm expects the demand from network suppliers to normalise. Are there actual plans to enter new markets? Yes, as mentioned, strengthening Dantherm’s market presence is an important part of our growth strategy and we have actual plans of establishing local presence i.e. in Germany, Russia and Mexico in 2013. We need to bring ourselves closer to our customers and offer more local services. This will strengthen our

In 2012, Dantherm opened an office in Beijing. What is the overall plan with this initiative? The Beijing-office serves as sales premises and features a showroom with selected Telecom and HVAC products. The purpose is to be closer to Telecom network operators and decision-makers in China, thus increasing our market coverage on this large market. In connection with the establishment of the Beijingoffice, the Chinese sales organisation was strengthened and we entered into a cooperation with a Chinese sales partner. In 2012, a new showroom was established in the factory in Suzhou and sales activities are meant to be expanded here as well in 2013. What does the improved branding with a new logo, website and control your climate mean for Dantherm? The business foundation of Dantherm is climate control and we have more than 50 years of experience at developing energy-efficient solutions within heating, ventilation, cooling and dehumidification of air. The idea behind an improved branding strategy is to communicate this story about Dantherm in a more purposeful manner. In 2012, we increased the visibility of the Dantherm name - the result of which shows in the form of increasing visitors

Suzhou and Beijing, China

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Dantherm   Annual Report 2012 in brief

Annual Report 2012 in brief   Dantherm

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to our new website. The new claim, CONTROL YOUR CLIMATE, describes what Dantherm stands for in short and precise terms. What does the increased focus on energy-efficiency mean for Dantherm? It means that Dantherm expects a growing market for our products. Within climate control, energy consumption is an important factor. All over the world, the focus on energyefficiency will intensify in the coming years, both as a result of official requirements as well as due to savings related to lower energyconsumption. Within Telecom, focus on reducing energy-consumption when cooling radio base stations is increasing. We also see potential for our HVAC ventilation products, which are developed to lower energyconsumption and are among the most energy-efficient solutions on the market. Product development is an important part of the Dantherm growth strategy. Which initiatives have been carried out in this respect in 2012? Over the years, Dantherm has delivered more than a million climate control solutions. The result of this is extensive experience within thermodynamic solutions – experience which we use in our product development. Within Telecom, developments of a global product range continued in 2012 including an intensification of the co-operation between the R&D 4

Dantherm   Annual Report 2012 in brief

departments in Denmark, China and the USA. New products for Free Cooling and Combo Cooling were launched in 2012 and we are currently working on a new Air Conditioner line. Within HVAC, developments focused on the dehumidification and home ventilation business areas, where several new products were launched in 2012. Dantherm has extensive production facilities in Denmark. Are they able to compete? We continuously aim to ensure that products manufactured at any production facility of Dantherm are competitive. In Denmark, automation has been a major focus of investments over the years and we optimise processes continuously. Furthermore, a project for optimisation of administrative processes has been initiated, to make us best in class in handling orders, purchasing, logistics, production planning and shipment. Furthermore, reductions in the number of hourly and salaried employees in 2012 will reduce overheads in 2013. Does Dantherm have the right capital structure to realise the expected growth? In 2012, we continued improving the capital structure aiming to secure sufficient liquidity for the initiatives necessary to create growth. At the end of 2012, we reduced working capital to amount to just 13 % of revenue, which is an improvement of 4 percentage points relative to the end of 2011. This resulted in positive

cash flow from operating activities of DKK 20m. Furthermore, against the background of the result for 2012, we re-negotiated the agreement with our primary credit institutions and were granted unchanged credit lines until 1 May 2014. In addition, we continuously discuss possible partners and their ability to contribute to our business development and strengthen our capital foundation. How is Dantherm engaged with CSR-related activities? The basis of Dantherm’s work with corporate social responsibility is the UN Global Compact – the ten principles in the areas of human rights, labour, the environment and anti-corruption. Environmental and social responsibilities are important issues at Dantherm integrated in our corporate culture. How did Dantherm Power develop in 2012? The activities in Dantherm Power comprise the development and sale of fuel-cell-based backup power mainly for the Telecom industry and CHP units for private households. The business development within Dantherm Power remains positive and revenue increased by 28 % relative to 2011. In December 2012, in co-operation with Ballard Power Systems Inc., Canada, Dantherm took over Danfoss’ ownership interest of 10 % in Dantherm Power. Therefore, the ownership interest of Dantherm has increased from 38 % to 43 %. Cash flows in Dantherm Power are still negative, for which

reason Dantherm and Ballard have granted convertible loans to the company. Dantherm’s share of the convertible loans granted to Dantherm Power in 2012 amounts to DKK 5m. How are the future prospects for Dantherm? Dantherm is an ambitious company with numerous possibilities of development. This means that the future looks promising for Dantherm. Dantherm aims to be among the market leaders within the business areas of Telecom and HVAC and given the increasing

demand for energy-efficient products, the growth potential is quite good. Considering developments in 2012, the strategic objective from 2010 of revenue of approx. DKK 900m in 2015 may be difficult to achieve. However, we still aim for considerable growth in the coming years. What is the outlook for 2013? We expect the many initiatives carried out in the latest years within market and product development to result in progress within revenue and earnings in 2013. Within the business

area of Telecom, we remain dependent on investments in new mobile networks and modernisation of existing networks in the form of investments in energy-efficient climate control units. Within the business area of HVAC, we are dependent on general economic developments in Europe, where growth is still low. On the other hand, there is substantial growth potential for many of our products which allow our customers to save energy and improve the indoor climate.

o u t lo o k f o r 2 0 1 3 The market development within HVAC is still expected to be moderate and affected by the European economy. Within several of the product groups of HVAC, certain growth is expected due to increased focus on indoor climate and energy-savings. Within Telecom, the market development is expected to depend on developments within wireless communication globally and the extent of investments in new Telecom networks or upgrading of existing networks. The underlying basis of growth within wireless communication is expected to continue in 2013 as a result of more mobile subscribers and increased data transmission. Increasing

investments in Telecom networks relative to 2012 are expected in 2013. Since such investments are typically significant, the timing of their implementation may still lead to volatility of Dantherm’s revenue. Dantherm’s strategic measures within increased market presence, product development and cost-efficiency continue to support the growth strategy. Dantherm expects revenue of DKK 525-550m and an operating profit (EBIT) of DKK 15-20m in 2013, on par with the levels seen in 2011. February 2013, Dantherm was awarded Company of the Year 2012 by the municipality of Skive Annual Report 2012 in brief   Dantherm

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i m p o r ta n t events

s t r at e g y In 2012, the management continued their focus on strategic measures and established the focus areas which are to contribute to realising the objective of considerable growth in revenue and earnings. The strategy is focused on balancing revenue between the business areas to make Dantherm less dependant on large projects.

Office opening in Beijing Dantherm’s Chinese subsidiary in Suzhou, China, was established more than 10 years ago and focuses on sales and production to customers within Telecom. The World’s largest Telecom network operators are domiciled in China. To support the strategic development of this business area, Dantherm established a Beijing office with a showroom in 2012.

New website/CONTROL YOUR CLIMATE In 2012, Dantherm launched a new and more customer and product oriented website. The website is launched in several languages and directed at Dantherm’s principal markets. Read more at www.dantherm.com

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Dantherm   Annual Report 2012 in brief

Product development

A significant competition parameter is to be at the cutting edge of development and deliver energy-efficient products. In 2012, Dantherm launched new products i.e. within mobile dehumidification, home ventilation and climate control for radio base stations.

Optimisation and lean projects Dantherm has production facilities in Europe, Asia and the USA and continuously focuses on ensuring competitiveness through automation and optimisation of manufacturing processes.

Growth Dantherm’s strategy focuses on considerable growth in revenue and earnings Ambitions Dantherm aims to increase the company’s market value by continuously increasing earnings and strengthening our market position resulting in growth in revenue, the intention being to make Dantherm a more attractive company to shareholders, customers and employees. Foundation The ambition is based on a strong foundation consisting in Dantherm’s sales and production setup in Europe, Asia and North America and a market of significant size and

growth potential, where Dantherm is positioned well today. Focus areas Dantherm’s strategy is comprised of four focus areas: market presence, product development, cost-efficiency and capital structure. Market presence: The strategy for the coming years includes establishing offices in new, important markets in Europe, Asia and the Americas combined with a focused expansion of our distributor network and an increased effort in existing markets. This way, we will be closer to our customers and more able to support our partners. Product development: The strategy includes continuous development of Dantherm’s energy-efficient product lines to ensure that we offer the best products in the market and that we live up to increasing official requirements and customer needs. Dantherm already devotes considerable resources to product development in Denmark, China and the USA, based on a global product range adapted to local needs and requirements.

Cost-efficiency: The strategy includes continuous improvement of administrative processes and manufacturing productivity. In addition, the strategy includes a reduction in the use of materials and other operating expenses. Like in 2012, lean activities will be carried out both in the administration as well as in the production in the coming years. Capital structure: The strategy is focused on optimising the working capital and the invested capital. This is to be achieved by reducing working capital and improving trading conditions for customers and suppliers. Dantherm aims to continuously discuss possible partnerships and their ability to contribute to our business development and strengthen our capital foundation. thank you from the management

On behalf of the Board of Directors and the Executive Board, we would like to thank our customers, shareholders and other partners for their loyalty to Dantherm in 2012. We would also like to thank all Dantherm employees, who have shown tremendous commitment to the company.

Annual Report 2012 in brief   Dantherm

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h va c FACTS 2012 companies

Production takes place at the factory in Denmark. The products are sold from the Danish company to subsidiaries in Norway, England and Sweden and via a wide distributor network in Europe. employees

278 products

The Dantherm business concentrates on three product areas: Mobile heating and cooling: Climate control in tents and containers. Dehumidification: Mobile dehumidifiers for drying of buildings and fixed dehumidifiers for wellness areas and private pool rooms. Ventilation: Ventilation with heat recovery for private homes, swimming pool halls, shopping centres, theatres etc.

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Dantherm   Annual Report 2012 in brief

2012 was a positive year for the HVAC business area with growth in revenue of 18 % relative to 2011. MARKET DEVELOPMENT Within HVAC, Dantherm’s principal market is Europe. The markets are largely niche markets where Dantherm has a strong market position and a customer base of more than 4,000 customers in 55 countries. Developments within mobile dehumidifiers were affected by decreasing demand from damage service professionals and lower activity levels within the construction sector in Europe, whereas market developments for fixed dehumidifiers are less cyclical. Within mobile heating and cooling, market developments were generally affected by a low investment level within the armed forces. Market developments within ventilation are affected by activity levels within the construction sector in Europe. In 2012, increasing focus on energy savings and improved indoor climate in private homes resulted in continuing market growth. Market developments are also driven by energy consumption laws. DEVELOPMENTS IN 2012 Financial development Revenue within HVAC amounted to DKK 336m in 2012 against revenue of DKK 285m in 2011,

which corresponds to satisfactory growth by 18 %. The growth in revenue can be attributed to positive developments within the business areas of mobile heating and cooling and ventilation. Within mobile heating and cooling, growth in revenue amounted to 94 % relative to 2011, which is primarily attributable to large-scale project orders to one single market. In 2012, revenue within ventilation grew by 18 % relative to the year before. The positive developments are primarily attributable to successful sales of home ventilation products to the German and Danish markets. Within the business area of dehumidification, revenue declined by 10 % relative to 2011, which is primarily attributable to extraordinary sales in 2011 in connection with flooding in Copenhagen.

for Denmark, Germany, Norway and France were launched in 2012.

18 % Revenue within HVAC increased by 18 % in 2012.

Furthermore, in order to maintain and expand Dantherm’s market position, a number of new ventilation and dehumidification products were launched in 2012. As an important element in ensuring continuous growth and improved profitability within HVAC, a lean project to make administrative processes as efficient as possible was initiated in 2012.

STRATEGY The strategic activities will continue within three focus areas: market presence, product development and cost-efficiency. In 2013, within the focus area of market presence, activities will focus on increasing market shares by intensifying sales efforts through Dantherm’s own sales organisation, partly by expanding the dealer network in selected European countries and partly by concluding agreements with new private label customers. Continuous product development remains an important competition parameter for Dantherm within all business areas. The coming years will see the launch of new products in accordance with the development plans for the individual businesses. The project of making administrative processes more efficient will continue, just as focus will continue to be directed at optimising manufacturing processes.

FACTS 2012 CUSTOMERS Mobile heating and cooling: Armed forces in NATO countries, international aid organisations, tent and container manufacturers and dealers. Dehumidification: Professional rental and damage services, dealers and private label customers. Ventilation: Contractors, fitters, public authorities, private label customers, dealers and fitness chains. revenue DKKm 400 300

Profit before depreciation, amortisation, impairment losses and write-downs (EBITDA) in 2012 amounted to DKK 36m (11 % of revenue) against DKK 26m in 2011 (9 % of revenue). Business development In 2012, focus was still directed at increasing sales efforts by expanding the customer base and dealer cover. Furthermore, new websites

management

200

Jesper Holm Thorstensen CEO, HVAC since 2010 Born 1969 MSc in Engineering Joined Dantherm in 1995

100 0

2010

2011

2012

Annual Report 2012 in brief   Dantherm

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telecom FACTS 2012 Companies Most Telecom products are manufactured in China with local production in Denmark and the USA. The products are sold globally through the companies in China, Denmark, the USA, Sweden, Norway and Poland and via dealerships. employees

237 products Dantherm’s products and solutions are applied for energy-efficient climate control of electronics and batteries in radio base stations and other Telecom infrastructure and industrial cooling. The product range comprises free cooling, heat exchange, thermosiphon passive cooling, air conditioning, peltier cooling and products combining these technologies to reduce energy consumption.

2012 was a disappointing year for the Telecom business. Following growth in revenue of 44 % from 2010 to 2011, revenue declined correspondingly from 2011 to 2012. MARKET DEVELOPMENT Within Telecom, market development depends on developments within wireless communication and the extent of investments in new Telecom networks or upgrading of existing networks. The extent of wireless communication increased in 2012 and is expected to increase further in the coming years. Growth is driven by more mobile subscribers and increasing data volumes. At the end of 2012, the number of mobile subscribers worldwide is expected to be around 6.6bn and increase to exceed 7bn at the end of 2013. In addition to the growing number of subscribers, data transmission is increasing. This includes a growing need for radio capacity to handle increasing data volumes created by smartphones and tablets. In the coming years, the growth is expected to be further strengthened by wireless communication for surveillance systems, tele medicin, smart grids, cars, road systems and white goods. In addition to an expansion of the infrastructure to allow handling of the growing number of mobile subscribers and the increasing data traffic, there is a growing market for replacement cooling solutions in existing radio base

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Dantherm   Annual Report 2012 in brief

stations where new cooling units can reduce energy consumption. In spite of the preconditions of growth, market developments in 2012 were weak as a result of postponed investments in Telecom networks. Since such investments are typically significant, the timing of their implementation leads to volatility of Dantherm’s revenue. DEVELOPMENTS IN 2012 Financial development Revenue within Telecom amounted to DKK 146m in 2012 against revenue of DKK 265m in 2011, which corresponds to a decline of 45 %. The lower revenue is primarily attributable to the fact that sales to network suppliers were lower than in 2011 by 64 %, whereas revenue within the customer group of network operators grew by 18 %. After positive developments in 2011, the Telecom industry and thus Dantherm’s sales to network suppliers were affected by the general market situation leading to postponement of a number of investments in network capacity expansions. Dantherm was affected by the slowdown at the end of 2011 and it continued throughout the entire year of 2012. Dantherm maintained its market position with the primary customers and thus the declined revenue is an expression of lower investments.

Sales within network operators spread over several customers and markets and the increased revenue within this customer group is attributable to Dantherm’s strategic measures which, among other things, lead to an expansion of the customer base. As a result of lower revenue, loss before depreciation, amortisation, impairment losses and write-downs (EBITDA) fell from a profit of DKK 21m in 2011 to a loss of DKK 19m in 2012. Business development In 2012, Dantherm aligned capacity with market demand, but adhered to the strategic measures regarding market presence and product development in spite of the financial development. With a view to increasing market cover in China and to be closer to the Chinese network operators, Dantherm established a sales office in Beijing and entered into co-operation with a Chinese sales partner. Furthermore, a new and more customer and product focused website

was launched. In 2012, Dantherm continued developments of a global product range, new energy-efficient products were launched i.e. within Free Cooling and Combo Cooling and more patents have been taken out. STRATEGY The strategic activities will continue within the three focus areas: market presence, product development and cost-efficiency. In 2013, Dantherm will increase market presence by opening offices i.e. in Germany, Russia and Mexico. Continuous product development remains an important competition parameter for Dantherm, and developments of energyefficient solutions meeting the demands of the market continue in 2013. The strategic measures focus on increasing sales to network operators and retaining the leading market position for sales to network suppliers. In addition to increasing sales and earnings, these measures contribute to lowering volatility within the Dantherm Telecom business.

management

Kristian Askegaard CEO, Telecom since 2010 Born 1958 MSc in Economics & Business Administration Joined Dantherm in 2007

FACTS 2012 CUSTOMERS Customers within Telecom include network suppliers and network operators. Network suppliers include few important customers who establish new Telecom networks globally. The products are typically customised to the individual customer, and the market is characterised by high entry barriers and rapid technological advances. Network operators run the Telecom networks and tend to operate locally. They buy new radio base systems from the network suppliers and replace existing equipment which they buy from the network suppliers, integrators or companies such as Dantherm. The products sold to this customer group tend to be standard products. revenue DKKm 300

200

100

0

2010

2011

2012

Annual Report 2012 in brief   Dantherm

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board of direc tors

jørgen møller-rasmussen Chairman

preben tolstrup Deputy Chairman

shareholder i n f o r m at i o n

niels kristian agner Board member

nils rosenkrands olsen Board member

the Dantherm share In spite of the unsatisfactory developments within Dantherm, the price of Dantherm shares increased by 6 % in 2012 against a decrease in the Small Cap Index of 5 % in the same period. In 2012, the highest and lowest price of the Dantherm share were DKK 19.9 and DKK 13.8, respectively.

market value was DKK 106m compared to DKK 100m at the end of 2011. Trading in the Dantherm shares amounted to DKK 11m in 2012 against DKK 16m in 2011. Share capital Dantherm’s share capital was DKK 71,905,740 at the end of 2012. 7,190,574 shares were listed with a nominal value of DKK 10, each carrying one vote.

10 April

Dividend policy Dantherm’s dividend policy is to allocate approx. 30 % of the consolidated net profit for the year to the shareholders – with due account being taken of the group’s financial and cash position and investment and expansion plans. The company also aims to maintain an equity interest of at least 30 %. The Board of Directors proposes that no dividend be paid for 2012.

The annual general meeting will be held on Wednesday 10 April 2013 at 3pm in the company’s offices at Marienlystvej 65, Skive, Denmark. conni-dorthe laursen Employee representative

per friis pedersen Employee representative

søren østergaard hansen Employee representative

At the end of the financial year, the share price was DKK 14.7 against DKK 13.9 in 2011. At the end of the financial year, the company’s

01.03.2013 Announcement of financial statements 10.04.2013 General meeting 01.05.2013 Interim report Q1 2013 21.08.2013 Interim report Q2 2013 30.10.2013 Interim report Q3 2013

Shareholder composition At the end of the financial year, Dantherm had approx. 3,600 registered shareholders. A total of 90 % of the share capital in Dantherm was held by registered shareholders at the end of 2012. Website In 2012, the company website was updated and now features a section dedicated to investors.

Dantherm’s share price vs small cap

direktion

financial calender for 2013

2 01 c2

ly Ju

Dantherm

Small Cap

De

12 20

bjarke brøns CFO

Ja n

torben duer President & CEO

20 12

Dantherm encourages investors and other interested parties to visit the company’s website at www.dantherm.com. It is possible to request electronic information about the company from the website. This service is also available to interested parties who are not shareholders.

For experience and qualifications we refer to the complete Annual Report 2012 on www.dantherm.com 12

Dantherm   Annual Report 2012 in brief

Annual Report 2012 in brief   Dantherm

13

income s tat e m e n t

selected key figures DKK ’000

2012

2011

2010

19,829 -20,434 -10,845 0

19,775 -19,857 -12,797 -1,005

3,176 100,499 -68,618 60,350

Cash flow Cash flow from operating activities Cash flow from investing activities Cash flow from financing activities Cash flow from discontinuing activities

Financial ratios

Growth rate Profit margin Return on invested capital Equity interest Working capital Net interest-bearing debt Average number of employees

-12.4% 18.4% 7.8% -1.3% 4.1% 1.5% -2.0% 7.1% 1.5% 27.0% 28.0% 28.4% 61,755 92,267 87,622 188,326 187,081 186,865 548 585 537

DKK ’000

Earnings per share (EPS). DKK Cash flow per share. DKK Equity value at year-end. DKK Share price at year-end. DKK Price/equity value Number of shares

-2.32 2.79 15.6 14.7 0.94 7,191

0.60 2.78 18.0 13.9 0.77 7,191

-6.17 0.45 18.1 18.0 1.00 7,191

DKK ’000 31.12.12 31.12.11

DKK ’000 31.12.12 31.12.11

Revenue 482,057 550,312

Non-current assets Intangible assets Goodwill 69,527 69,527 Completed development projects 7,018 6,216 Patents and licenses 1,491 358 Development projects in progress 13,745 4,353

Equity Share capital 71,906 71,906 Reserve for hedging transactions -16,671 -14,615 Reserve for foreign currency translation adjustment 4,572 3,643 Retained earnings 52,093 68,616

Other operating income 1,310 4,813 Costs of raw materials and consumables -245,985 -290,278 Other external expenses -65,085 -64,498 Staff costs -159,781 -156,962 Profit/loss before depreciation, amortisation, impairment losses and write-downs (EBITDA)

DKKm 600

EBIT% 5

500

0

400

-5

300

-10

200

-15

100 0

-20 2009 Revenue

14

2010

2011

2012

-25

Total intangible assets 12,516

43,387

Depreciation, amortisation, impairment losses and write-downs of property, plant and equipment and intangible assets -18,688 -20,859

Total property, plant and equipment

Financial income 4,257 5,154 Financial expenses -16,004 -17,925

Other non-current assets Other securities and equity investments Deferred tax Receivables from associates Other receivables

-6,172

Profit/loss from continuing operations before tax

-17,919

9,757

Tax on profit/loss from continuing operations for the year

1,396

-4,056

-16,523

5,701

Net profit/loss for the year from discontinuing and discontinued operations

0

-1,423

NET PROFIT/LOSS FOR THE YEAR

-16,523

4,278

Distributed as follows: Shareholders of Dantherm A/S -16,523 4,278 -16,523 4,278 Earnings per share Earnings per share (EPS) Diluted earnings per share (EPS-D) Earnings per share from continuing operations Diluted earnings per share from continuing operations

0.6 0.6 0.8 0.8

80,454

122,802

134,475

50 0 10,299 7,049 16,656 9,120 0 1,000

Total equity 111,900 129,550 Liabilities Non-current liabilities Provisions 616 638 Credit institutions 96,340 103,680 Total non-current liabilities 96,956 104,318 Current liabilities Provisions 2,501 7,096 Credit institutions 104,240 108,049 Trade payables and other payables 97,060 110,668 Income tax payable 1,079 1,024 Prepayments 1,402 1,983 Total current liabilities 206,282 228,820

Other non-current assets, total 27,005 17,169 Total liabilities 303,238 333,138 Total non-current assets 241,588 232,098 TOTAL EQUITY AND LIABILITIES 415,138 462,688 Current assets Inventories 87,343 111,842 Receivables 69,602 89,084 Receivables from associates 561 1,551 Income tax receivable 1,437 877 Prepayments 2,353 2,588 Cash 12,254 24,648 173,550 230,590 Total current assets

-2.3 -2.3 -2.3 -2.3

91,781

Property, plant and equipment Land and buildings 97,664 102,613 Leasehold improvements 310 630 Plant and machinery 22,131 29,219 Other plant, fixtures and fittings, tools and equipment 2,697 2,013

22,528

Net profit/loss for the year from continuing operations

revenue and ebit%

a ss e t s

2011

Operating profit/loss (EBIT)

Share-related ratios

2012

Equity and liabilities

173,550

230,590

TOTAL ASSETS 415,138 462,688

EBIT%

Dantherm   Annual Report 2012 in brief

Annual Report 2012 in brief   Dantherm

15

group chart Dantherm A/S

(DK)

100%

43%

Dantherm Air Handling Holding A/S

Dantherm Power A/S

(DK)

100%

Dantherm Air Handling A/S

(DK)

100%

Dantherm AS

(NO)

100%

Dantherm AB

(SE)

100%

Dantherm Ltd.

(UK)

100%

Dantherm Air Handling Sp. z o.o.

(PL)

100%

Dantherm Inc.

(US)

100%

Dantherm Air Handling (Suzhou) Co. Ltd.

(CN)

(DK)

Dantherm also owns the company ERO A/S, which has no activities and is being liquidated.

parent company

subsidiaries

associated company

Dantherm A/S

Dantherm Air Handling A/S

Dantherm AB

Dantherm AS

Dantherm power A/S

Marienlystvej 65 7800 Skive Denmark

Marienlystvej 65 7800 Skive Denmark

Virkesgatan 5 614 31 Söderköping Sweden

Løkkesåsveien 26 3138 Skallestad Norway

Majsmarken 1 9500 Hobro Denmark

Tel. +45 99 14 90 00 CVR. nr. 30 21 43 15 www.dantherm.com

Tel. +45 96 14 37 00

Tel. +46 121 130 40

Tel. +47 33 35 16 00

Tel. +45 88 43 55 00 www.dantherm-power.com

Dantherm Air Handling (Suzhou) Co., Ltd.

Dantherm Ltd.

Dantherm Inc.

12 Windmill Business Park Windmill Road, Clevedon North Somerset BS21 6SR England

110 Corporate Drive, Suite K Spartanburg SC 29303 4260 USA

Tel. +44 1275 87 68 51

Tel. +1 864 595 9800

Bldg#9, No.855 Zhu Jiang Rd., Suzhou New District, Jiangsu 215219 Suzhou China Tel. +86 512 6667 8500