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Skous Vej 1 8000 Aarhus C Denmark 89 32 00 00 aarhus@pwc.dk 2023-04-17 Per Stougaard Lovring Regnskabsklasse C, stor virksomhed Revisionspåtegning The Executive Board and Board of Directors have today considered and adopted the Financial Statements of Bucher Municipal A/S for the financial year 1 January - 31 December 2022. The Annual Report is prepared in accordance with the Danish Financial Statements Act. In our opinion the Financial Statements give a true and fair view of the financial position at 31 December 2022 of the Company and of the results of the Company operations for 2022. In our opinion, Management's Review includes a true and fair account of the matters addressed in the Review. We recommend that the Financial Statements be adopted at the Annual General Meeting. 2023-04-17 Silkeborg Per Stougaard Lovring Executive Officer Per Rahbech Pedersen Executive Officer Aurelio Lemos Villanueva Chairman Jörg Hüchting Thomas Walter Brustio To the shareholder of Bucher Municipal A/S Opinion In our opinion, the Financial Statements give a true and fair view of the financial position of the Company at 31 December 2022 and of the results of the Company´s operations for the financial year 1 January - 31 December 2022 in accordance with the Danish Financial Statements Act. We have audited the Financial Statements of Bucher Municipal A/S for the financial year 1 January - 31 December 2022, which comprise income statement, balance sheet, statement of changes in equity and notes, including a summary of significant accounting policies (”the Financial Statements”). Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the ”Auditor’s responsibilities for the audit of the Financial Statements” section of our report. We are independent of the Company in accordance with the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the Danish Financial Statements Act, and for such internal control as Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the Financial Statements, Management is responsible for assessing the Company´s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting in preparing the Financial Statements unless Management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Our objectives are to obtain reasonable assurance about whether the Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Financial Statements. As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company´s internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management. Conclude on the appropriateness of Management’s use of the going concern basis of accounting in preparing the Financial Statements and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company´s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern. Evaluate the overall presentation, structure and contents of the Financial Statements, including the disclosures, and whether the Financial Statements represent the underlying transactions and events in a manner that gives a true and fair view. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Management is responsible for Management’s Review. Our opinion on the Financial Statements does not cover Management’s Review, and we do not express any form of assurance conclusion thereon. In connection with our audit of the Financial Statements, our responsibility is to read Management’s Review and, in doing so, consider whether Management’s Review is materially inconsistent with the Financial Statements or our knowledge obtained during the audit, or otherwise appears to be materially misstated. Moreover, it is our responsibility to consider whether Management’s Review provides the information required under the Danish Financial Statements Act. Based on the work we have performed, in our view, Management’s Review is in accordance with the Financial Statements and has been prepared in accordance with the requirements of the Danish Financial Statements Act. We did not identify any material misstatement in Management’s Review. Aarhus C 2023-04-17 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab Michael Nielsson State Authorised Public Accountant mne15151 Rasmus Mellergaard Stenskrog State Authorised Public Accountant mne34161 597693000 537932000 490295000 207533000 150437000 130752000 30714000 11723000 13350000 23265000 -3441000 54000 50158000 6539000 7319000 136067000 60010000 53727000 327198000 267572000 229961000 2016000 7489000 12200000 305 248 224 28.3 31.9 34.7 28.0 26.7 0.7 6.1 5.6 2.2 1.8 0.9 11.5 10.3 4.4 3.9 28.6 46.6 41.6 22.4 23.4 1.2 19.5 51.2 11.5 14.6 Key activities Bucher Municipal A/S manufactures truck-mounted sewer cleaning units, and special truck mounted sweeping and pressure water cleaning machines. The systems are built to stand up to the heavy daily use year after year with maximum working time and minimum fuel consumption to benefit both the environment and the end-user’s operating economy.To develop the business and create the best customer experience, the company also provides a substantial global service and spare parts business supporting the customers in getting the best possible benefit from their sewer cleaning or sweeper unit.The sewer cleaning units and the special truck mounted sweepers are sold primarily on the market in Europe but suited globally all over the world.The business is positive influenced by several global trends, as the Bucher Municipal products are supporting the world-wide urbanization and pressure on infrastructure. Climate changes and environmental responsibility also calls for cleaning and clearing, which is supported by our products. Development in the year 2022 was a challenging year for Bucher Municipal. Despite positive market trends and conditions, there was heavy global supply chain issues, with long lead times and material delay in the supply chain. On top of that, the rising inflation became a challenge for the company and together with the rising energy prices, the company was heavily impacted by those circumstances during 2022.Throughout 2022, Bucher Municipal have managed the supply chain situation by building up inventories, and increased stock of semi-finished goods. By this way, the company prepared itself in the best possible way to deliver products to our customers on time. However, despite the building up of safety stock, the company was still impacted by shortage and delay in the supply chain, and it negatively impacted the ability to deliver specific orders for the year.Bucher Municipal are not directly influenced by the war in Ukraine. The company do not currently have customers in Ukraine or Russia. Bucher Municipal do also not have any suppliers from the affected areas. However important raw material suppliers, like for example steel mills, reacted on the market uncertainties that occurred when the conflict escalated, and down adjusted their capacity during 2022. This intensified the supply chain delivery issues and the price spiral further, both for important materials and for energy.One of the main trends for sweeper and sewer cleaner market is the change from the current diesel driven units to electrical driven units, to achieve sustainable solutions for the future. In 2022, Bucher Municipal developed one of the world’s first electrical sewer cleaner, produced on an OEM chassis, in close corporation with a strategic supplier. The new product – a Cityflex C40e – was presented at international fairs and exhibitions with great success, and the first deliveries to our customers have taken place. The electrification of the Cityflex is the first electrical unit in Bucher Municipals sewer cleaner portfolio. This will be followed up by further electrification of our portfolio. Another important product development is the GullyFlex C80. This product is developed for the UK market, but is also expected to be sold on other markets. The GullyFlex is a simple, easy to manage sewer cleaner. The product is a combination unit, with both suction and jetting, prepared for all types of chassis.With the development of this product, Bucher Municipal has broadened the product program to the gain of our customers.The management expects solid demand for this new product, which was also introduced at fairs and exhibitions in 2022.In 2022, the company started up a project of upgrading existing ERP platform. The project is scheduled to be completed during summer 2023 and will become an important element in the digitalization journey for Bucher Municipal.In 2022 revenue decreased with 6,4 % to DKK 580 million, and below of the expected turnover range between DKK 620-630 million for the year. The decrease in sales should be seen in the light of delays of components from suppliers, and difficult market conditions at the main markets.EBIT amounts to DKK 4 million in 2022, which is a decrease of 34 million compared to 2021.The decrease in EBIT was driven by higher material and energy prices, and reduced sales due to delay in components from suppliers. Net profit of DKK 2 million in 2022 is significantly lower than net profit of DKK 28 million in 2021. The net profit was below expectations, as the company expected a result for the year in the range of DKK 30-34 million. The result was unsatisfying. Interest rate risks The company is exposed to interest rate risk on credit facility from both external lenders and from the parent company. The risk is considered low. Credit risks Credit risk is assessed customer by customer. The company use credit evaluation on regular basis, to understand any potential trading risk. Prepayment is used frequently for sales of our products, and according to the standard contract the company has ownership of the unit, until the full amount has been paid. Further, a major part of sales is traded within group companies, hence reducing the credit risk for Bucher Municipal A/S significantly. Bucher Municipal A/S takes responsibility for its products and production, also when it comes to social aspects, which is in line with the company’s CSR policy and core values. ***Business model***Please refer to description of key activities on page 6. ***Risk assessment***Risk assessment is an essential part of the daily operations at Bucher Municipal A/S. An identified risk is considered an opportunity to improve, thus the company actively uses risk analysis to be able to proactively contribute to preventing impact on the environment and climate. This gives an opportunity to optimize products and processes to reduce negative impact on the environment and climate, social and employee matters, human rights, and anti-corruption. Risks on health, safety, environment, and climate apply to the entire value chain from product development to suppliers, production, and service. The production is carried out in Denmark where the company sets the local laws and regulations as a minimum requirement in relation to health, safety, environment, and climate but also towards our suppliers. On social and employee matters the company follows both local legislation as well as basic conventions on employee rights as defined by the International Labor Organization. The company takes responsibility for the well-being of the employees and is considered a safe workplace. This is done by creating specific safety target to be achieved, and at the same time analyzing all lost time injuries thoroughly, to improve all critical work processes where injuries appear to happen. The company is also monitoring the workplace to mitigate if any risks should be identified.The company acknowledge the importance of knowledge and competences in the company. To continue the positive journey of the company, we are fully dependent on our skilled employees. Therefore, the company are working with leadership for all our leaders, and competence development for all employees.Bucher Municipal A/S has zero tolerance for all forms of bribery, corruption, extortion, or embezzlement, both in relation to its own employees, but also in relation to all external stakeholders. The company’s strategic plan has an ambition on growth and expansion into new markets, therefore the corruption risk is continuously assessed. The company mainly operates in countries where the level of prosperity and welfare is high and social norms and cultures focus on respecting human rights. Further, the company is a part of an international business group, who has defined high ethical standards no matter where in the world business are made.The company’s strategic plan has an ambition on growth and expansion into new markets, therefore risks of corruption and human rights violations is continuously assessed.It is a management priority to follow-up on risks in respect of the business model. This is done by E-learning, training, and CSR focus on management meetings. The appointment in 2021 of Head of Human Resource into management group keep focus on CSR progresses as well. ***Environment and climate***Sewer cleaning units and sweeper machines play a key role in safeguarding the environment around the world. An investment in our products from Bucher Municipal A/S is also an investment in the environment. Currently the company develops electric solutions for Citiflex products, supporting market demands for sustainable and environmentally friendly products.Product development has a constant focus on developing and improving our products to become the most environment friendly and energy efficient in the market. It is the ambition to continue the development of products of low emission products, supporting sustainability in our offerings.Our RECycler® unit continuously cleans the jetting water, which makes it immediately available for reuse. This reduces refilling and transportation time making it more environmentally friendly than its competitors. In addition, it is an advantage for the customer as it increases flexibility and operating hours and decreases fuel consumption.Bucher Municipal A/S has an ongoing focus on environment and the company has implemented an environment policy that focus on efficient use of water, raw materials, and other natural resources.Market trends is about increasing focus on electrification and by Internet of Things (IoT) to increase monitoring of unit performance that can lead to reduced energy consumption and better utilization of our products.The company sees itself as being among the main drivers in leading the change, to fulfil the ambitious UN Sustainable Development Goals by 2030. The company works on developing sustainability actions plans to help the world moving in a better and more sustainable direction.Bucher Municipal A/S considers CSR and sustainability the core of the business. The company’s CSR and sustainability agenda, objectives and targets are aligned with the UN Sustainable Development Goals (SDGs). The most relevant SDGs have been mapped to the business and objectives:SDG11 Sustainable cities and communitiesSDG12 Responsible consumption and productionSDG13 Climate actionIn 2022 the company has continuously achieved strong results within the environmental targets. Focus on waste materials reused from production have been a strong priority for management and is showing positive trends.The company also achieved ISO9001, ISO14001 and ISO45001 certifications. These certifications supported the company in the aim of achieving increased focus on energy management and work environment. By continued and strong focus on environment and climate, the company have not identified any major risks.The company will in the coming years increase focus within environment and climate, reduce emissions and produce products that support our climate goals within the company. ***Human rights and working conditions***The company continues to focus on employee satisfaction, as the ability to attract qualified labor is crucial for the company’s competitiveness. A performance and development interview are carried out once a year for all employees. The company’s occupational health and safety committee works to continuously improve the collaboration across functions, departments, and seniority.Bucher Municipal A/S has implemented an occupational health and safety policy named “Our Responsibility”. “Our responsibility” is implemented to ensure that employees are well cared for and enjoy a safe work environment. Respect for human right is firmly rooted in core values, and Bucher Municipal A/S has implemented an employee policy, where human rights according to OECD guidelines have been implemented.The targets of the working environment policy are beside achieving the certification after ISO45001, the following:• Zero accidents at work• Compliance with working environment legislation• Careful work planning• Continuously improving occupational health and safety• Following up on working environment as a management task• Focus on well-being and employee attendance to work In general, management focus on and prioritize health and safety, by monitoring and measuring incidents at the company. Further, in 2022 actions are taken to reduce incidents to secure a safe working place for all employees. In addition, the company have introduced human rights policies in the management system. These policies are available for all employees and introduced to new employees through the employee handbook.The company intends to complete employee survey on yearly basis.On yearly basis, E-learning exercises are distributed and mandatory for employees to fulfill. The company also have a zero tolerance regarding violations of human rights, and any upcoming issues are discussed and solved at management meetings. Management will sustain focus on this activity forthgoing, managing any potential risk. ***Business Ethics and Compliance***Within Bucher Group a Code of Conduct has been established.The Code of Conduct is a general guideline on how to do business on a daily basis as a member of Bucher Group. Amongst others this includes;• Compliance with laws and regulations• Health, Safety and environment• Anti-bribery• Employment relations• IT and data protection• Whistleblower policy and reporting toolBucher Municipal A/S complies with the Code of Conduct and is doing business within this framework. Employees are requested to undergo yearly training to ensure compliance in this respect, and all new employees must read and sign an agreement that they will act according to the principles. Bucher Municipal A/S also takes responsibility within the supply chain and therefore strategic suppliers are reviewed and requested to sign and comply with the code of conduct.The company have procedures in place in respect of trade compliance, and most customers, suppliers and components have been screened. In 2022, The company did not find any critical incidents, as a part of the screening. The trade compliance check has been implemented as an operational procedure hence customers, suppliers and components will be screened on a temporary basis. ***Data ethics***Data protection is the most important data ethical matter for Bucher Municipal. The company do not actively collect, analyze, and process market data as a part of its business processes. The company are currently developing IoT solutions and have delivered the first units with such features this year. In the IoT solution, all data are kept confidential, to keep high standards on data ethics. The company will implement legal and ethical solutions as part of go to market strategy. Customer and supplier data are threated confidential, and the company operates with a high level of data security, to the benefit of both Bucher Municipal and its stakeholders. The company do not offer access to IT systems, hence reducing data ethical issues in that respect. The company’s code of conduct includes policies regarding data ethics and data protection, where correct IT behavior within Bucher Group have been described. Further digital communication politics have been described and implemented as well, and the group have also described rules and politics in respect of correct GDPR behavior. ***Anti-corruption***Bucher Municipal A/S complies with the Bucher anti-corruption directive. The directive includes general descriptions of corruption and bribery, how to ensure not to engage into corrupt business and procedures to be followed in case of bribery or corruption.Employees are requested to undergo yearly training to ensure compliance with the directive and all new employees must read and sign an agreement that they act and comply accordingly. By training, it is the company’s opinion that it has the necessary protection against anti-corruption issues and such. The company will maintain the yearly training and follow-up to keep the high implemented standards. **Human rights**The policy of Human rights within Bucher Municipal A/S is formalized in the code of conduct, which all employees are requested to sign and comply with as mentioned above. There has not been registered any single cases in 2022, in respect of not living up to human rights. Management trust that by setting high ethical standards discussed at management meetings, together with mandatory E-learning programs for all employees, that it has taken all necessary steps to reduce any risks in respect of the principles regarding human rights.The following principles apply:• We promote a working culture that fosters mutual respect, openness and individual integrity.• We respect local standards of occupational safety and health regulations.• We base access to employment and promotion on personal skills, abilities and performance, not on gender, race or other discriminatory factors.• We encourage employee/management communication.• We do not use forced, compulsory or child labor.• We do not tolerate workplace violence including threats, threatening behavior, harassment, intimidation and similar conduct.• We protect employees’ personal data and privacy. **Statutory statement regarding the underrepresented gender in accordance with section 99b of the Danish Financial Statements Act**The company is working on complying with provisions of the law for the underrepresented gender in the upper management body and on other management levels. ***Targets for Board of Directors***The Board of Directors consists of three members. All Board of Directors are gender males, appointed on annual meeting.Bucher Municipal A/S has targets and a policy for the gender composition in management. The target for female representation on the board of directors elected by the general meeting was 33 percent by 2022. The shareholders have not succeeded in finding a female candidate for the board of directors within 2022 and therefore the target has been extended for another year until the end of 2023. ***Diversity in other management levels***The company is also considering diversity in other management levels than the Board of Directors.The long-term aim is that the company reflects the surrounding society and especially the company’s customers, not only in terms of gender, but also in terms of nationality and ethnicity. This reflection of the surrounding society is to contribute to the company being an attractive choice for customers as well as present and future employees, and in this way enabling the company to achieve its long-term business goals.The policy of the company states that women are encouraged equal as men to apply for vacant positions in the company. The company strives to present a field of mixed gender candidates when filling an open position.Women are also guaranteed the same rights and conditions during their employment as men. In connection to this, personnel are ensured good conditions regarding maternity leave, flexible working hours and the possibility to work from home.Management acknowledges that women are still underrepresented and will continue to attract women in all levels of the organization.In 2022 the management group consisted of 7 members, including 1 female manager. The company is also considering diversity in other management levels than the Board of Directors.The long-term aim is that the company reflects the surrounding society and especially the company’s customers, not only in terms of gender, but also in terms of nationality and ethnicity. This reflection of the surrounding society is to contribute to the company being an attractive choice for customers as well as present and future employees, and in this way enabling the company to achieve its long-term business goals.The policy of the company states that women are encouraged equal as men to apply for vacant positions in the company. The company strives to present a field of mixed gender candidates when filling an open position.Women are also guaranteed the same rights and conditions during their employment as men. In connection to this, personnel are ensured good conditions regarding maternity leave, flexible working hours and the possibility to work from home.Management acknowledges that women are still underrepresented and will continue to attract women in all levels of the organization.In 2022 the management group consisted of 7 members, including 1 female manager. Data protection is the most important data ethical matter for Bucher Municipal. The company do not actively collect, analyze, and process market data as a part of its business processes. The company are currently developing IoT solutions and have delivered the first units with such features this year. In the IoT solution, all data are kept confidential, to keep high standards on data ethics. The company will implement legal and ethical solutions as part of go to market strategy. Customer and supplier data are threated confidential, and the company operates with a high level of data security, to the benefit of both Bucher Municipal and its stakeholders. The company do not offer access to IT systems, hence reducing data ethical issues in that respect. The company’s code of conduct includes policies regarding data ethics and data protection, where correct IT behavior within Bucher Group have been described. Further digital communication politics have been described and implemented as well, and the group have also described rules and politics in respect of correct GDPR behavior. 579544000 619323000 129000 14000 365522000 376509000 50396000 45367000 163755000 197461000 153104000 152590000 6786000 7250000 0 86000 3865000 37535000 928000 1970000 3006000 3752000 1787000 35753000 184000 7611000 1603000 28142000 0 28000000 1603000 142000 1340000 0 92000 482000 0 0 1432000 482000 34350000 36875000 3955000 4581000 1317000 1202000 5578000 6290000 454000 276000 45654000 49224000 93888000 53028000 83186000 47327000 59225000 21181000 25387000 31430000 1579000 10020000 385764000 276810000 432943000 326609000 54000 54000 39000 39000 93000 93000 47179000 49799000 236299000 121536000 85306000 52103000 0 0 2157000 1324000 114429000 94877000 35036000 60397000 6500000 6500000 1045000 0 -864000 859000 0 28000000 3275000 3610000 3439000 3397000 6714000 7007000 175000000 45000000 9561000 9364000 184561000 54364000 5159000 5603000 10154000 6359000 0 7432000 6500000 6500000 117267000 116709000 123948000 152068000 80444000 69811000 21963000 23965000 117720000 113170000 302281000 167534000 432943000 326609000 6500000 0 859000 116709000 28000000 0 0 486000 0 0 0 0 0 0 -28000000 0 0 -2209000 0 0 0 1045000 0 -1045000 0 0 0 0 1603000 0 6500000 1045000 -864000 117267000 0 No events materially affecting the assessment of the Annual Report have occurred after the balance sheet date. Geographical segments Revenue, Denmark 204947000 0 Export sales, EU 74075000 93568000 Export sales, non-EU 300522000 343737000 0 0 0 182018000 579544000 619323000 Business segments Sale of sewer cleaning units 406188000 411490000 Sale of sweeper units 82584000 106166000 Sale of spare parts and service 69068000 79587000 0 0 Other sales 21704000 22080000 579544000 619323000 132010000 131872000 17359000 17285000 3735000 3433000 153104000 152590000 268 281 The warrant program for the managing director includes the option to be remunerated with shares in the ultimate parent company Bucher Industries Ltd. The remuneration will only take place if the entire group achieves a certain result for the financial year, and there is a requirement that the shares may not be sold within the first 3 years. The remuneration time is at the ordinary general meeting in Bucher Industries Ltd. after the financial year end date. In 2022, a total of 80 shares in Bucher Industries Ltd. were remunerated to the managing director (2021: 0) with a market value of a total of DKK 215k. 725000 761000 6061000 6489000 1533000 1224000 1473000 2528000 3006000 3752000 0 7481000 -335000 372000 33000 0 184000 7611000 -486000 242000 7933000 9285000 0 0 0 1675000 0 -1075000 0 1675000 504000 -1675000 9608000 8714000 0 7933000 8803000 0 335000 390000 0 0 -1075000 0 0 504000 0 8268000 8622000 0 1340000 92000 0 Completed development projects consists of development of two new products into Bucher Municipals product program (Ecityflex and GullyFlex). Both products are strategic important products for the company, with significant opportunities to strengthening the market position. Over the next couple of years, there will be zero tolerance on emissions in large cities around the globe, supporting the development of electric and zero-emission solutions. Also smaller sewer cleaner units (like GullyFlex) will support the request of reduced emissions and increased urbanization, which is why also the GullyFlex will support the market position for the company.It is assumed that the products will be supplied Into existing markets, but also demanded at new markets. The new products contributed limited with profit in 2022. However, the company expect a higher profit contribution from the new products in 2023, and accordingly when entering new markets the products will contribute further over the next couple of years. Amortised over 5 years 3-7 years 5-10 years 76133000 22604000 4704000 11878000 276000 9000 1118000 775000 411000 273000 0 -2052000 -305000 -595000 -95000 0 1387000 -2181000 0 0 76142000 23057000 2993000 11694000 454000 39258000 18023000 3502000 5588000 0 2534000 2020000 384000 1123000 0 0 -2052000 -305000 -595000 0 0 1111000 -1905000 0 0 41792000 19102000 1676000 6116000 0 34350000 3955000 1317000 5578000 454000 10-50 years 3-7 years 3-7 years 3-15 years 54000 54000 54000 54000 J. Hvidtved Larsen US Inc. USA 100 3097 -15 39000 39000 Prepayments consist of prepaid expenses concerning rent, insurance premiums and subscriptions. Deferred tax liabilities at 1 January 3,610,000 3,238,000 Amounts recognised in the income statement for the year 151,000 130,000 Amounts recognised in equity for the year -486,000 242,000 Deferred tax liabilities at 31 December 3,275,000 3,610,000 Intangible assets 0 0 Intangible/fixed tangible assets 1930 2092 Inventories 1847 1383 Amortization -5 -11 Provisions and prepayment etc. -356 146 Tax loss carry-forward -141,000 0 0 0 Deferred tax has been provided at 22% corresponding to the current tax rate. Deferred tax asset Warranty provisions 3439 3397 3439 3397 The provisions are expected to mature as follows: Within 1 year 3162 3061 Between 1 and 5 years 277 336 3439 3397 The Company provides warranties of basically 1 year on sewer cleaning units and sweeper units. 0 0 175000000 45000000 0 0 175000000 45000000 9053000 7566000 508000 1798000 0 0 9561000 9364000 Payments due within 1 year are recognised in short-term debt. Other debt is recognised in long-term debt. The debt falls due for payment as specified below: . Derivative financial instruments contracts in the form of have been concluded. At the balance sheet date, the fair value of derivative financial instruments amounts to: {"en"=>"Assets/liabilities\n"} -2,396 1,454 Forward exchange contracts have been concluded to hedge, purchase of goods in GBP and future expected purchase in GBP.At the balance sheet date the fair value of derivative financial instruments regarding purchase of goods in GBP amounts to DKK -1,288k and future expected purchase in GBP amounts to DKK -1,108k.Hedge for purchase of goods in GBP amounts to GBP 4,600k and hedge for future expected purchase in GBP amounts to GBP 5,100k. The forward exchange contracts have a term of 0-12 months. Charges and security Rental and lease obligations Lease obligations under operating leases. Total future lease payments: Within 1 year 4,106,000 3,733,000 Between 1 and 5 years 3,679,000 2,158,000 7,785,000 5,891,000 At 31 December 2022, the Company has assumed rental obligations, which are non-terminable for 18 months, and which total: DKK 2,615k Guarantee obligations The Company's bank has provided bank guarantees to the Company's customers of a total amount of 1,821,000 1,485,000 The Company's bank has provided a bank guarantees to the Company'slandlord of a total amount of 609,000 609,000 Other contingent liabilities Buy-back guarantees totalling DKK 5,135k have been provided for sewer cleaning units at 31 December 2022. At 31 December 2021 the buy-back guarantees amounted to DKK 10,736k. The Danish group companies are jointly and severally liable for tax on the jointly taxed incomes etc of the Group. The total amount of corporation tax payable/receivable is disclosed in the Annual Report of Bucher Industries Danmark A/S, which is the management company of the joint taxation purposes. Moreover, the Danish group companies are jointly and severally liable for Danish withholding taxes by way of dividend tax, tax on royalty payments and tax on unearned income. Any subsequent adjustments of corporation taxes and withholding taxes may increase the Company's liability. Controlling interest Bucher Industries AG Ultimate Parent Bucher Industries Danmark ApS Immediate Parent Other related parties Transactions The Company has chosen only to disclose transactions which have not been made on an arm's length basis in accordance with section 98(c)(7) of the Danish Financial Statements Act. No such transactions have occurred. Bucher Municipal A/S and its subsidiaries is included in the consolidated financial statements of Bucher Industries AG, Niederweningen, Switzerland, ISIN CH0002432174. The consolidated financial statements of Bucher Industries AG can be downloaded at the Company's website www.bucherindustries.com. Name Place of registered office Bucher Industries AG NiederweningenSwitzerland 411000 497000 51000 97000 32000 205000 The Annual Report of Bucher Municipal A/S for 2022 has been prepared in accordance with the provisions of the Danish Financial Statements Act applying to large enterprises of reporting class C. The accounting policies applied remain unchanged from last year. The Financial Statements for 2022 are presented in TDKK. With reference to section 112 of the Danish Financial Statements Act and to the consolidated financial statements for 2022 of Bucher Industries AG, ISIN: CH0002432174, the Company has not prepared consolidated financial statements. 1 With reference to section 86(4) of the Danish Financial Statements Act and to the cash flow statement included in the consolidated financial statements of Bucher Industries AG, ISIN: CH0002432174, the Company has not prepared a cash flow statement. Revenues are recognised in the income statement as earned. Furthermore, value adjustments of financial assets and liabilities measured at fair value or amortised cost are recognised. Moreover, all expenses incurred to achieve the earnings for the year are recognised in the income statement, including depreciation, amortisation, impairment losses and provisions as well as reversals due to changed accounting estimates of amounts that have previously been recognised in the income statement. Assets are recognised in the balance sheet when it is probable that future economic benefits attributable to the asset will flow to the Company, and the value of the asset can be measured reliably. Liabilities are recognised in the balance sheet when it is probable that future economic benefits will flow out of the Company, and the value of the liability can be measured reliably. Assets and liabilities are initially measured at cost. Subsequently, assets and liabilities are measured as described for each item below. Certain financial assets and liabilities are measured at amortised cost, which involves the recognition of a constant effective interest rate over the maturity period. Amortised cost is calculated as original cost less any repayments and with addition/deduction of the cumulative amortisation of any difference between cost and the nominal amount. In this way, capital losses and gains are allocated over the maturity period. Recognition and measurement take into account predictable losses and risks occurring before the presentation of the Annual Report which confirm or invalidate affairs and conditions existing at the balance sheet date. Leases in terms of which the Company assumes substantially all the risks and rewards of ownership (finance leases) are recognised in the balance sheet at the lower of the fair value of the leased asset and the net present value of the lease payments computed by applying the interest rate implicit in the lease or an alternative borrowing rate as the discount rate. Assets acquired under finance leases are depreciated and written down for impairment under the same policy as determined for the other fixed assets of the Company. The remaining lease obligation is capitalised and recognised in the balance sheet under debt, and the interest element on the lease payments is charged over the lease term to the income statement. All other leases are considered operating leases. Payments made under operating leases are recognised in the income statement on a straight-line basis over the lease term. Transactions in foreign currencies are translated at the exchange rates at the dates of transaction. Exchange differences arising due to differences between the transaction date rates and the rates at the dates of payment are recognised in financial income and expenses in the income statement. Where foreign exchange transactions are considered hedging of future cash flows, the value adjustments are recognised directly in equity. Receivables, payables and other monetary items in foreign currencies that have not been settled at the balance sheet date are translated at the exchange rates at the balance sheet date. Any differences between the exchange rates at the balance sheet date and the rates at the time when the receivable or the debt arose are recognised in financial income and expenses in the income statement. Fixed assets acquired in foreign currencies are measured at the transaction date rates. Derivative financial instruments are initially recognised in the balance sheet at cost and are subsequently remeasured at their fair values. Positive and negative fair values of derivative financial instruments are classified as ”Other receivables” and ”Other payables”, respectively. Changes in the fair values of derivative financial instruments are recognised in the income statement unless the derivative financial instrument is designated and qualify as hedge accounting, see below. Changes in the fair values of financial instruments that are designated and qualify as fair value hedges of a recognised asset or a recognised liability are recognised in the income statement as are any changes in the fair value of the hedged asset or the hedged liability related to the hedged risk. Changes in the fair values of derivative financial instruments that are designated and qualify as hedges of expected future transactions are recognised in the fair value reserve under equity as regards the effective portion of the hedge. The ineffective portion is recognised in the income statement. If the hedged transaction results in an asset or a liability, the amount deferred in equity is transferred from equity and recognised in the cost of the asset or the liability, respectively. If the hedged transaction results in an income or an expense, the amount deferred in equity is transferred from equity to the income statement in the period in which the hedged transaction is recognised. The amount is recognised in the same item as the hedged transaction. Changes in the fair values of financial instruments that are designated and qualify as hedges of net investments in independent foreign subsidiaries or associates are recognised directly in equity as regards the effective portion of the hedge, whereas the ineffective portion is recognised in the income statement. Information on business segments and geographical segments is based on the Company´s risks and returns and its internal financial reporting system. Business segments are regarded as the primary segments. Revenue from the sale of goods is recognised when the risks and rewards relating to the goods sold have been transferred to the purchaser, the revenue can be measured reliably and it is probable that the economic benefits relating to the sale will flow to the Company. Revenue is measured at the consideration received and is recognised exclusive of VAT and net of discounts relating to sales. Expenses for raw materials and consumables comprise the raw materials and consumables consumed to achieve revenue for the year. Other external expenses comprise expenses for premises, sales and distribution as well as office expenses, etc. Staff costs include wages and salaries including compensated absence and pensions as well as other social security contributions etc. made to the entity's employees. The item is net of refunds made by public authorities. Amortisation, depreciation and impairment losses comprise amortisation, depreciation and impairment of intangible assets and property, plant and equipment. Other operating income and other operating expenses comprise items of a secondary nature to the main activities of the Company, including gains and losses on the sale of intangible assets and property, plant and equipment. Dividends from subsidiaries are recognised as income in the income statement when adopted at the General Meeting of the subsidiary. However, dividends relating to earnings in the subsidiary before it was acquired by the Parent Company are set off against the cost of the subsidiary. Financial income and expenses are recognised in the income statement at the amounts relating to the financial year. Tax for the year consists of current tax for the year and changes in deferred tax for the year. The tax attributable to the profit for the year is recognised in the income statement, whereas the tax attributable to equity transactions is recognised directly in equity. The Company is jointly taxed with Danish group companies. The tax effect of the joint taxation is allocated to Danish enterprises in proportion to their taxable incomes. Costs of development projects comprise salaries, amortisation and other expenses directly or indirectly attributable to the Company’s development activities. Development projects that are clearly defined and identifiable and in respect of which technical feasibility, sufficient resources and a potential future market or development opportunity in the enterprise can be demonstrated, and where it is the intention to manufacture, market or use the project, are recognised as intangible assets. This applies if sufficient certainty exists that the value in use of future earnings can cover cost of sales, distribution and administrative expenses involved as well as the development costs. Development projects that do not meet the criteria for recognition in the balance sheet are recognised as expenses in the income statement as incurred. Capitalised development costs are measured at cost less accumulated amortisation and impairment losses or at a lower recoverable amount. An amount corresponding to the recognised development costs is allocated to the equity item 'Reserve for development costs'. The reserve is reduced by amortisation of and impairment losses on the development projects on a continuing basis. As of the date of completion, capitalised development costs are amortised on a straight-line basis over the period of the expected economic benefit from the development work. The amortisation period is 5 year. Patents, licences and rights are measured at cost less accumulated amortisation and less any accumulated impairment losses or at a lower value in use. Patents are amortised over the remaining patent period or a shorter useful life. The amortisation period is 3-7 years. Software licences and rights are amortised over the period of the agreements, which is 3-7 years and 3-7 years, respectively. Property, plant and equipment are measured at cost less accumulated depreciation and less any accumulated impairment losses. Cost comprises the cost of acquisition and expenses directly related to the acquisition up until the time when the asset is ready for use. Depreciation based on cost reduced by any residual value is calculated on a straight-line basis over the expected useful lives of the assets, which are: Land & buildings 10-50 years Plant and machinery 3-7 years Other fixtures and fittings, tools and equipment 3-7 years Leasehold improvements The fixed assets’ residual values are determined at nil. 3-15 years Depreciation period and residual value are reassessed annually. The carrying amounts of intangible assets and property, plant and equipment and investments are reviewed on an annual basis to determine whether there is any indication of impairment other than that expressed by amortisation and depreciation. If so, the asset is written down to its lower recoverable amount. Investments in subsidiaries are measured at cost. Where cost exceeds the recoverable amount, write-down is made to this lower value. Other fixed asset investments consist of deposits, which are measured at cost. Where cost exceeds the recoverable amount, write-down is made to this lower value. Inventories are measured at the lower of cost under the FIFO method and net realisable value. The net realisable value of inventories is calculated at the amount expected to be generated by sale of the inventories in the process of normal operations with deduction of selling expenses and costs of completion. The net realisable value is determined allowing for marketability, obsolescence and development in expected selling price. The cost of goods for resale, raw materials and consumables equals landed cost. The cost of finished goods and work in progress comprises the cost of raw materials, consumables and direct labour with addition of indirect production costs. Indirect production costs comprise the cost of indirect materials and labour as well as maintenance and depreciation of the machinery, factory buildings and equipment used in the manufacturing process as well as costs of factory administration and management. Receivables are measured in the balance sheet at the lower of amortised cost and net realisable value, which corresponds to nominal value less provisions for bad debts. Prepayments comprise prepaid expenses concerning rent, insurance premiums and subscriptions. Dividend distribution proposed by Management for the year is disclosed as a separate equity item. Provisions are recognised when - in consequence of an event occurred before or on the balance sheet date - the Company has a legal or constructive obligation and it is probable that economic benefits must be given up to settle the obligation. Other provisions include warranty obligations in respect of repair work within the warranty period of basically 1 year. Provisions are measured and recognised based on experience with guarantee work. Deferred income tax is measured using the balance sheet liability method in respect of temporary differences arising between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes on the basis of the intended use of the asset and settlement of the liability, respectively. Deferred tax assets, including the tax base of tax loss carry-forwards, are measured at the value at which the asset is expected to be realised, either by elimination in tax on future earnings or by set-off against deferred tax liabilities within the same legal tax entity. Deferred tax is measured on the basis of the tax rules and tax rates that will be effective under the legislation at the balance sheet date when the deferred tax is expected to crystallise as current tax. Any changes in deferred tax due to changes to tax rates are recognised in the income statement or in equity if the deferred tax relates to items recognised in equity. Current tax liabilities and receivables are recognised in the balance sheet as the expected taxable income for the year adjusted for tax on taxable incomes for prior years and tax paid on account. Extra payments and repayment under the on-account taxation scheme are recognised in the income statement in financial income and expenses. Loans, such as loans from credit institutions, are recognised initially at the proceeds received net of transaction expenses incurred. Subsequently, the loans are measured at amortised cost; the difference between the proceeds and the nominal value is recognised as an interest expense in the income statement over the loan period. Mortgage loans are measured at amortised cost, which for cash loans corresponds to the remaining loan. Amortised cost of debenture loans corresponds to the remaining loan calculated as the underlying cash value of the loan at the date of raising the loan adjusted for depreciation of the price adjustment of the loan made over the term of the loan at the date of raising the loan. Other debts are measured at amortised cost, substantially corresponding to nominal value. Gross margin Gross profit x 100 / Revenue Profit margin Profit before financials x 100 / Revenue Return on assets Profit before financials x 100 / Total assets at year end Solvency ratio Equity at year end x 100 / Total assets at year end Return on equity Net profit for the year x 100 / Average equity