19757803 2022-06-30 cmn:ConsolidatedMember 19757803 2021-06-30 cmn:ConsolidatedMember 19757803 2020-06-30 cmn:ConsolidatedMember 19757803 2024-06-30 cmn:ConsolidatedMember 19757803 2023-06-30 cmn:ConsolidatedMember 19757803 2024-06-30 19757803 2023-06-30 19757803 2023-07-01 cmn:ConsolidatedMember fsa:ContributedCapitalMember 19757803 2023-07-01 cmn:ConsolidatedMember fsa:HedgeFundMember 19757803 2023-07-01 cmn:ConsolidatedMember fsa:RetainedEarningsMember 19757803 2023-07-01 cmn:ConsolidatedMember fsa:ProposedDividendRecognisedInEquityMember 19757803 2023-07-01 cmn:ConsolidatedMember fsa:MinorityInterestsMember 19757803 2024-06-30 cmn:ConsolidatedMember fsa:ContributedCapitalMember 19757803 2024-06-30 cmn:ConsolidatedMember fsa:HedgeFundMember 19757803 2024-06-30 cmn:ConsolidatedMember fsa:RetainedEarningsMember 19757803 2024-06-30 cmn:ConsolidatedMember fsa:ProposedDividendRecognisedInEquityMember 19757803 2024-06-30 cmn:ConsolidatedMember fsa:MinorityInterestsMember 19757803 2023-07-01 fsa:ContributedCapitalMember 19757803 2023-07-01 fsa:ReserveForNetRevaluationAccordingToEquityMethodMember 19757803 2023-07-01 fsa:ReserveForDevelopmentExpenditureMember 19757803 2023-07-01 fsa:RetainedEarningsMember 19757803 2023-07-01 fsa:ProposedDividendRecognisedInEquityMember 19757803 2024-06-30 fsa:ContributedCapitalMember 19757803 2024-06-30 fsa:ReserveForNetRevaluationAccordingToEquityMethodMember 19757803 2024-06-30 fsa:ReserveForDevelopmentExpenditureMember 19757803 2024-06-30 fsa:RetainedEarningsMember 19757803 2024-06-30 fsa:ProposedDividendRecognisedInEquityMember 19757803 2023-07-01 cmn:ConsolidatedMember 19757803 2022-07-01 cmn:ConsolidatedMember 19757803 2023-07-01 cmn:ConsolidatedMember fsa:CompletedDevelopmentProjectsMember 19757803 2023-07-01 cmn:ConsolidatedMember fsa:GoodwillMember 19757803 2023-07-01 fsa:CompletedDevelopmentProjectsMember 19757803 2024-06-30 cmn:ConsolidatedMember fsa:CompletedDevelopmentProjectsMember 19757803 2024-06-30 cmn:ConsolidatedMember fsa:GoodwillMember 19757803 2024-06-30 fsa:CompletedDevelopmentProjectsMember 19757803 2023-07-01 fsa:LandAndBuildingsMember cmn:ConsolidatedMember 19757803 2023-07-01 fsa:FixturesFittingsToolsAndEquipmentMember cmn:ConsolidatedMember 19757803 2023-07-01 fsa:PropertyPlantAndEquipmentInProgressMember cmn:ConsolidatedMember 19757803 2023-07-01 fsa:FixturesFittingsToolsAndEquipmentMember 19757803 2023-07-01 fsa:PropertyPlantAndEquipmentInProgressMember 19757803 2024-06-30 fsa:LandAndBuildingsMember cmn:ConsolidatedMember 19757803 2024-06-30 fsa:FixturesFittingsToolsAndEquipmentMember cmn:ConsolidatedMember 19757803 2024-06-30 fsa:PropertyPlantAndEquipmentInProgressMember cmn:ConsolidatedMember 19757803 2024-06-30 fsa:FixturesFittingsToolsAndEquipmentMember 19757803 2024-06-30 fsa:PropertyPlantAndEquipmentInProgressMember 19757803 2023-07-01 fsa:InvestmentsInGroupEnterprisesMember 19757803 2022-07-01 fsa:InvestmentsInGroupEnterprisesMember 19757803 2024-06-30 fsa:InvestmentsInGroupEnterprisesMember 19757803 2023-06-30 fsa:InvestmentsInGroupEnterprisesMember 19757803 2024-06-30 1 fsa:SubsidiaryMember 19757803 2024-06-30 2 fsa:SubsidiaryMember 19757803 2024-06-30 3 fsa:SubsidiaryMember 19757803 2024-06-30 4 fsa:SubsidiaryMember 19757803 2024-06-30 5 fsa:SubsidiaryMember 19757803 2024-06-30 6 fsa:SubsidiaryMember 19757803 2024-06-30 7 fsa:SubsidiaryMember 19757803 2023-07-01 cmn:ConsolidatedMember fsa:OtherInvestmentsMember 19757803 2023-07-01 cmn:ConsolidatedMember fsa:DepositsLongtermInvestmentsAndReceivablesMember 19757803 2023-07-01 fsa:OtherInvestmentsMember 19757803 2023-07-01 fsa:DepositsLongtermInvestmentsAndReceivablesMember 19757803 2024-06-30 cmn:ConsolidatedMember fsa:OtherInvestmentsMember 19757803 2024-06-30 cmn:ConsolidatedMember fsa:DepositsLongtermInvestmentsAndReceivablesMember 19757803 2024-06-30 fsa:OtherInvestmentsMember 19757803 2024-06-30 fsa:DepositsLongtermInvestmentsAndReceivablesMember 19757803 2024-06-30 cmn:ConsolidatedMember fsa:LongtermLeaseCommitmentsMember 19757803 2023-06-30 cmn:ConsolidatedMember fsa:LongtermLeaseCommitmentsMember 19757803 2024-06-30 fsa:LongtermLeaseCommitmentsMember 19757803 2023-06-30 fsa:LongtermLeaseCommitmentsMember 19757803 2023-07-01 2024-06-30 cmn:ConsolidatedMember 19757803 2023-07-01 2024-06-30 1 cmn:ConsolidatedMember 19757803 2023-07-01 2024-06-30 cmn:ConsolidatedMember memberOfBoardIdentifier_executive_board_1 19757803 2023-07-01 2024-06-30 cmn:ConsolidatedMember memberOfBoardIdentifier_executive_board_2 19757803 2023-07-01 2024-06-30 cmn:ConsolidatedMember memberOfBoardIdentifier_board_of_director_1 19757803 2023-07-01 2024-06-30 cmn:ConsolidatedMember memberOfBoardIdentifier_board_of_director_2 19757803 2023-07-01 2024-06-30 cmn:ConsolidatedMember memberOfBoardIdentifier_board_of_director_3 19757803 2023-07-01 2024-06-30 cmn:ConsolidatedMember memberOfBoardIdentifier_board_of_director_4 19757803 2021-07-01 2022-06-30 cmn:ConsolidatedMember 19757803 2020-07-01 2021-06-30 cmn:ConsolidatedMember 19757803 2019-07-01 2020-06-30 cmn:ConsolidatedMember 19757803 2022-07-01 2023-06-30 cmn:ConsolidatedMember 19757803 2023-07-01 2024-06-30 19757803 2022-07-01 2023-06-30 19757803 2023-07-01 2024-06-30 cmn:ConsolidatedMember fsa:ContributedCapitalMember 19757803 2023-07-01 2024-06-30 cmn:ConsolidatedMember fsa:HedgeFundMember 19757803 2023-07-01 2024-06-30 cmn:ConsolidatedMember fsa:RetainedEarningsMember 19757803 2023-07-01 2024-06-30 cmn:ConsolidatedMember fsa:ProposedDividendRecognisedInEquityMember 19757803 2023-07-01 2024-06-30 cmn:ConsolidatedMember fsa:MinorityInterestsMember 19757803 2023-07-01 2024-06-30 fsa:ContributedCapitalMember 19757803 2023-07-01 2024-06-30 fsa:ReserveForNetRevaluationAccordingToEquityMethodMember 19757803 2023-07-01 2024-06-30 fsa:ReserveForDevelopmentExpenditureMember 19757803 2023-07-01 2024-06-30 fsa:RetainedEarningsMember 19757803 2023-07-01 2024-06-30 fsa:ProposedDividendRecognisedInEquityMember 19757803 2023-07-01 2024-06-30 cmn:ConsolidatedMember fsa:ManagementMember 19757803 2022-07-01 2023-06-30 cmn:ConsolidatedMember fsa:ManagementMember 19757803 2023-07-01 2024-06-30 fsa:ManagementMember 19757803 2022-07-01 2023-06-30 fsa:ManagementMember 19757803 2023-07-01 2024-06-30 cmn:ConsolidatedMember fsa:BoardOfDirectorsMember 19757803 2022-07-01 2023-06-30 cmn:ConsolidatedMember fsa:BoardOfDirectorsMember 19757803 2023-07-01 2024-06-30 fsa:BoardOfDirectorsMember 19757803 2022-07-01 2023-06-30 fsa:BoardOfDirectorsMember 19757803 2023-07-01 2024-06-30 cmn:ConsolidatedMember fsa:CompletedDevelopmentProjectsMember 19757803 2023-07-01 2024-06-30 cmn:ConsolidatedMember fsa:GoodwillMember 19757803 2023-07-01 2024-06-30 fsa:CompletedDevelopmentProjectsMember 19757803 2023-07-01 2024-06-30 fsa:LandAndBuildingsMember cmn:ConsolidatedMember 19757803 2023-07-01 2024-06-30 fsa:FixturesFittingsToolsAndEquipmentMember cmn:ConsolidatedMember 19757803 2023-07-01 2024-06-30 fsa:PropertyPlantAndEquipmentInProgressMember cmn:ConsolidatedMember 19757803 2023-07-01 2024-06-30 fsa:FixturesFittingsToolsAndEquipmentMember 19757803 2023-07-01 2024-06-30 fsa:PropertyPlantAndEquipmentInProgressMember 19757803 2023-07-01 2024-06-30 fsa:InvestmentsInGroupEnterprisesMember 19757803 2022-07-01 2023-06-30 fsa:InvestmentsInGroupEnterprisesMember 19757803 2023-07-01 2024-06-30 1 fsa:SubsidiaryMember 19757803 2023-07-01 2024-06-30 2 fsa:SubsidiaryMember 19757803 2023-07-01 2024-06-30 3 fsa:SubsidiaryMember 19757803 2023-07-01 2024-06-30 4 fsa:SubsidiaryMember 19757803 2023-07-01 2024-06-30 5 fsa:SubsidiaryMember 19757803 2023-07-01 2024-06-30 6 fsa:SubsidiaryMember 19757803 2023-07-01 2024-06-30 7 fsa:SubsidiaryMember 19757803 2023-07-01 2024-06-30 cmn:ConsolidatedMember fsa:OtherInvestmentsMember 19757803 2023-07-01 2024-06-30 cmn:ConsolidatedMember fsa:DepositsLongtermInvestmentsAndReceivablesMember 19757803 2023-07-01 2024-06-30 fsa:OtherInvestmentsMember 19757803 2023-07-01 2024-06-30 fsa:DepositsLongtermInvestmentsAndReceivablesMember 19757803 2023-07-01 2024-06-30 PricewaterhouseCoopers cmn:ConsolidatedMember 19757803 2022-07-01 2023-06-30 PricewaterhouseCoopers cmn:ConsolidatedMember 19757803 2023-07-01 2024-06-30 Other accounting firms cmn:ConsolidatedMember 19757803 2022-07-01 2023-06-30 Other accounting firms cmn:ConsolidatedMember iso4217:DKK pure Årsrapport 33771231 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab Strandvejen 44 2900 Hellerup 2023-07-01 2022-07-01 2024-06-30 2023-06-30 19757803 Dymak A/S Holkebjergvej 120 5250 Odense PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab 33771231 Munkebjergvænget 1, 3. og 4. sal 5230 Odense M Denmark 63 14 42 00 odense@pwc.dk 2024-08-29 Claus Juul Bøgelund Regnskabsklasse C, mellemstor virksomhed Revisionspåtegning The Executive Board and Board of Directors have today considered and adopted the Annual Report of Dymak A/S for the financial year 1 July 2023 - 30 June 2024. The Annual Report is prepared in accordance with the Danish Financial Statements Act. In our opinion the Financial Statements and the Consolidated Financial Statements give a true and fair view of the financial position at 30 June 2024 of the Company and the Group and of the results of the Company and Group operations and of consolidated cash flows for 2023/24. In our opinion, Management's Review includes a true and fair account of the matters addressed in the Review. We recommend that the Annual Report be adopted at the Annual General Meeting. 2024-08-29 Odense Claus Juul Bøgelund Manager Kristian Kristiansen Manager Per Høholt Chairman Claus Juul Bøgelund Marianne Tochtermann Lisbeth Dau To the shareholders of Dymak A/S Opinion In our opinion, the Consolidated Financial Statements and the Parent Company Financial Statements give a true and fair view of the financial position of the Group and the Parent Company at 30 June 2024 and of the results of the Group’s and the Parent Company’s operations and of consolidated cash flows for the financial year 1 July 2023 - 30 June 2024 in accordance with the Danish Financial Statements Act. We have audited the Consolidated Financial Statements and the Parent Company Financial Statements of Dymak A/S for the financial year 1 July 2023 - 30 June 2024, which comprise income statement, balance sheet, statement of changes in equity and notes, including a summary of significant accounting policies, for both the Group and the Parent Company, as well as consolidated statement of cash flows (”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 Group 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 consolidated financial statements and parent company 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 Group´s and the Parent 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 Group or the Parent 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 Group´s and the Parent 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 Group´s and the Parent 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 Group and the Parent 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. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the Consolidated Financial Statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. 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 Consolidated Financial Statements and the Parent Company 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. Odense M 2024-08-29 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab Mette Plambech State Authorised Public Accountant mne34162 712103000 407840000 286174000 152000000 81471000 61233000 86535000 39157000 23012000 6775000 -3920000 -333000 72794000 30465000 17945000 226241000 170693000 75698000 73760000 1783000 511000 1912000 680000 109998000 39227000 36853000 148 115 98 -0.032 0.301 0.382 0.229 0.304 0.202 0.718 0.486 0.23 0.487 -0.124 0.369 0.976 0.801 0.486 Corporate social responsibility report, cf section 99 a of the Danish Financial Statements ActThe Company’s business model is described on page 7. Statement of corporate social responsibility (CSR)Dymak impacts, to varying degrees, the communities in which the Company operates. As a Danish owner-managed business, the Company finds it only natural to carry out responsible operations and act with care in the local communities. Dymak intends to ensure a profitable and sustainable approach to social, environmental and climate matters. Both in terms of operations and at strategic level. Our CSR work has been approved by Management and Dymak’s Board of Directors and is embedded in the ESG & Compliance department. Dymak is continuously making progress in the CSR area, and it is very important to the Company to make a considerable effort in the future. The responsible team is working towards implementation of the measures deemed necessary to enter into a dialogue with, and meeting future requirements of, customers, stakeholders, business partners and legislation. Dymak considers the UN's Sustainable Development Goals an important focal point for the Company's work with corporate social responsibility. The goals were reviewed carefully in the past year and assessed according to Dymak's business. We remain focused on UN-8, UN-12, UN-13 and UN-17, as these four goals all support areas in which Dymak's business is considered to have the greatest opportunity to contribute. To support its work with corporate social responsibility, Dymak became a member of the UN Global Compact Network in 2022. The purpose of the network is to support enterprises intending to carry on a responsible business by implementing the Global Compact's ten principles within human rights, labour rights, anti-corruption and the environment. The second report has been submitted during summer 2024.Risks relating to CSR Based on the conditions that are significant to the Company to run a healthy business, during the year Dymak has reevaluated previous risk assessment in relation to social responsibility. The risk assessment includes an assessment of the Company’s impact on the environment and climate, social and employee matters, human rights and anti-corruption. The biggest environmental and climate risks are related to the actual production carried out by third parties.Dymak is aware of the potential risks associated with its presence in Asia, Türkiye and Mexico, particularly challenges related to human rights and corruption. Dymak actively seeks to mitigate such potential risks by, for example, being present locally with own employees close to the factories. Dymak also acknowledges the risks related to the challenges of attracting and retaining talented employees, as well as the climate impact of the transport of goods and the Company's operation of offices. The transport impact is attempted limited through direct deliveries from the factory to the various points of sale, so that carriage to and from a warehouse facility is avoided.Materiality assessment of risks/opportunitiesThe risk assessment includes relevant risks and potential opportunities to influence and/or prevent or avoid potential and adverse impacts from the above six matters. Below table was prepared during the work initiated to meet the requirements in the CSRD Directive.Dymak strives to do its utmost to identify, prevent and mitigate the above risks. The risk picture is assessed on an ongoing basis by top management and Dymak's ESG and Compliance department. Prior to entering 2023-24, as part of the preparation of a formalised policy in the area, Dymak identified 11 ESG KPIs, all of which supports the four UN Sustainable Development Goals. The KPIs include:Decision on the proportion of suppliers who must commit to social certifications (BSCI, Sedex), CoC and Dymak Supplier Agreement – which will all support decent working conditions (UN-8). Decision on the number of suppliers, the volume of business carried out, focus on more direct deliveries and number of factory audits – which will all support sustainable production patterns (UN-12).Decision on the reduction of CO2 emissions using renewable energy – for the purpose of combatting climate change (UN-13).Decision on the proportion of sourcing from different developing countries – which will support global partnerships focusing on sustainable development (UN-17). Dymak has worked intensely with meeting the KPIs set at the beginning of the year, and we’re pleased to see positive progress on all parameters. Number of certified suppliers, number of factory audits performed and diversification in use of sourcing countries are all met. The renewable energy KPI is also met via solar panels at the Danish location and an investment in a solar park. To foster growth in this area, the KPIs will continue to be active in 2024/25, with even more ambitious targets set for the upcoming year.Environment and climateDymak is continuously working on minimising its negative impact on the environment and climate. The biggest environmental and climate risks are related to the actual production. Often, the manufacturing process (such as firing of ceramics) is energy intensive. On selected shipping lanes, Dymak has entered into agreements with carriers about bio-fuelled transport. Dymak is aware of the environmental and climate impact of its offices. To meet this challenge, Dymak has installed solar cells at its head office and invested in European solar parks to cover all CO2 emissions from its own offices. In the view of the Group, travelling should be limited to the extent possible from a business perspective. Being a merchandising business, the Company has limited influence on the end-of-use environmental and climate impact of discarded Dymak products, and therefore, it does not carry out separate work in this area. In relation to ensuring proper conditions (biodiversity, aquatic environment, the rights of indigenous peoples and forest workers) and preventing deforestation, Dymak is FSC-certified (Chain of Custody). The audit was carried out by Bureau Veritas at the beginning of 2024, and no remarks were made. Focusing on the supplier selection process has brought significant improvements. Overall number of suppliers has been significantly reduced.The process includes criteria for selection, mitigation of risks, potential for improvement, signing of a supplier agreement and Code of Conduct and, finally, a physical audit at the production site, where relevant working conditions are reviewed before a supplier can be approved. The process is well-implemented in our current process flows and will be incorporated directly into the new ERP system in the year to come. When performing factory audits a Compliance IT tool is used by our own quality control officers and it ensures continuous focus on both environmental and climate aspects of production as well as social conditions and governance (anti-corruption). Following an audit, a report is generated which forms the basis for an overall assessment of whether the supplier meets the requirements set out in the supplier agreement, etc. In the coming years, Dymak will continue making a targeted effort at reducing the number of suppliers. This will contribute to a more efficient production process, which will optimise energy consumption and reduce waste. In addition, the Company will attempt to increase the number of direct deliveries, which will reduce transport and associated CO2 emissions where possible.Social mattersDymak continuously contributes to the improvement of social conditions by requiring new suppliers to be BSCI-certified at C level or become BSCI-certified as a minimum at C level within six months after being onboarded. In addition, Dymak is a member of Amfori. Amfori empowers companies to operate successful and responsible businesses, by helping them improve the environmental, social and governance performance of their value chains. Dymak's quality control officers make at least three visits: before, during and after production, while applying the proprietary compliance tool to review the production facility's management of the environment, climate, human rights and anti-corruption.In addition, the Company is continuously working to increase the share of BSCI or Sedex-certified suppliers in the future. Staff mattersDymak accepts broad social responsibility for all participants in our value chain, but we are first and foremost responsible for our own employees. We have chosen to live up to this responsibility by creating a working environment that ensures “A Good Day at Work” for everybody. “A Good Day at Work” is prioritised above everything else as it is seen as the very prerequisite for developing the Company’s competitiveness. To measure Dymak’s ability of creating “A Good Day at Work” we continue the use of yearly satisfaction surveys. The result of this year's Survey remains at an elevated score of 4.3 on a scale of 1 to 5. This is considered a very satisfactory score which reflects a group of employees who continuously are generally very satisfied with Dymak in a workplace perspective. Retention rate is also utilized to evaluate “A Good Day at Work”. During 2023-24 Dymak secured a 91% retention rate. Although this is slightly lower than past period (96%) it is within the acceptable area. We strive to ensure a higher retention in the year to come. Exit interviews are always conducted to understand the employee’s decision to leave Dymak and to identify any internal areas for development and learning. Additionally, "A Good Day at Work" will remain our focal point in the year to come and employee satisfaction surveys will continue to be conducted to track our development and to follow up on areas in need of special attention. When initiating a major IT project, we recognize the impact it has on our employees. Our purpose of “A Good Day at Work” is set as a primary objective in the IT project to ensure the project will be well integrated. Incorporating a good day at work is obtained by focusing on building an IT setup that accommodates for a structured “one procedure” approach throughout the Dymak Group. Structure, and the resulting “one procedure”, is a key parameter when employees state what is the most important outcome to them in such a project. This year, we have furthermore taken an important and exciting step in introducing the first part of our internal Leadership Development Programme. The purpose is to support our managers being good people leaders. This programme, based on emotional intelligence, starts with the manager’s own attitudes and emotions to foster outstanding performance in themselves and their teams. We will continue to build on this foundation in the year to come.Our new HQ in Odense, Denmark is under construction and will be ready in the fall of 2025. The building will be DGNB Gold certified (the environment), Heart certified (staff matters), CO2 neutral in operation and will generally embrace a good working life. We believe purpose of that employees will choose to come to the office because they want to, not because they must.Dymak is an inclusive workplace without discrimination. We embrace all employees no matter gender, age, ethnicity or other characteristics that are irrelevant to the competences of the employee.Our staff data are always handled in software designed specifically to ensure GDPR compliance. Human rightsDymak is continuously working on increasing the proportion of BSCI-certified suppliers. A focus that was strengthened during the financial year 2023-24 by requiring all new suppliers to be BSCI or Sedex certified. With the focus on BSCI and Sedex certifications, Dymak does not currently hold a separate policy on social responsibility and human rights. In the coming years, Dymak will enhance the effort in this particular area and implement measures to meet future requirements set by the Corporate Sustainability Report Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD). The primary risks associated with human rights are the working conditions at the factories, including observance of working hours, ventilation, etc. – all areas targeted by the BSCI certification. Dymak believes that human rights are complied with to a greater extent when quality control officers are present locally and address the above conditions during their inspections. During the financial year, any issues has been pointed out to the factory management. Depending on the nature of the issue, a deadline of one to six months is set for the supplier to rectify the situation. We did not, during our visits to the factories, identify any significant inconsistencies with Dymak's guidelines or the BSCI rules, and all suppliers with unacceptable scores have cooperated to meet the Company's social compliance requirements.As end-user product safety is essential, Dymak has made a strategic choice not to sell select product groups that could potentially entail a risk to the end user. In addition, efforts are made to minimise the use of glazing containing harmful chemicals, and the Company is actively promoting the sale of products which, from a manufacturing perspective, are less harmful to the environment and climate. These include pottery made of wood where the energy-intensive firing process known from the production of ceramics is avoided. All onboarded suppliers have signed Dymak's Code of Conduct and Supplier Agreement. Anti-corruption and anti-briberyDymak applies an internal as well as an external Code of Conduct in the fight against corruption and bribery. The Codes of Conduct has been enacted since 2022. The Code of Conduct clearly states that corruption and bribery are strictly prohibited, both by Dymak's employees and at the production facilities. As a global player, Dymak knows that the concept is interpreted differently across cultures and, for this precise reason, the Company continues to communicate and control this matter. The policy is translated into action by asking all employees in the production areas to sign a declaration clearly stating that corruption and bribery are reported to the police and will lead to termination of employment and cancellation of any bonuses earned. It is the Company's view that the partnerships established by Dymak through its local presence at the factories reduce the risk of corruption and bribery, both now and in future.An Honesty Agreement was drawn up as an addendum to the Supplier Agreement. The document contains clear guidelines as to which actions are considered to resemble corruption. Suppliers must inform Dymak immediately if they become aware of behaviour resembling corruption. As part of a risk assessment, selected suppliers in selected markets were tested on a sample basis. Where indications of deviant behaviour existed, measures were taken to prevent corruption and bribery. Going forward, Dymak will continue to encourage suppliers and employees to report behaviour resembling corruption. A whistleblower scheme is implemented. To ensure GDPR compliance the setup is handled by a third party. No incidents have been reported during the financial year 2023-24. Corporate social responsibility report, cf section 99 a of the Danish Financial Statements ActThe Company’s business model is described on page 7. Statement of corporate social responsibility (CSR)Dymak impacts, to varying degrees, the communities in which the Company operates. As a Danish owner-managed business, the Company finds it only natural to carry out responsible operations and act with care in the local communities. Dymak intends to ensure a profitable and sustainable approach to social, environmental and climate matters. Both in terms of operations and at strategic level. Our CSR work has been approved by Management and Dymak’s Board of Directors and is embedded in the ESG & Compliance department. Dymak is continuously making progress in the CSR area, and it is very important to the Company to make a considerable effort in the future. The responsible team is working towards implementation of the measures deemed necessary to enter into a dialogue with, and meeting future requirements of, customers, stakeholders, business partners and legislation. Dymak considers the UN's Sustainable Development Goals an important focal point for the Company's work with corporate social responsibility. The goals were reviewed carefully in the past year and assessed according to Dymak's business. We remain focused on UN-8, UN-12, UN-13 and UN-17, as these four goals all support areas in which Dymak's business is considered to have the greatest opportunity to contribute. To support its work with corporate social responsibility, Dymak became a member of the UN Global Compact Network in 2022. The purpose of the network is to support enterprises intending to carry on a responsible business by implementing the Global Compact's ten principles within human rights, labour rights, anti-corruption and the environment. The second report has been submitted during summer 2024.Risks relating to CSR Based on the conditions that are significant to the Company to run a healthy business, during the year Dymak has reevaluated previous risk assessment in relation to social responsibility. The risk assessment includes an assessment of the Company’s impact on the environment and climate, social and employee matters, human rights and anti-corruption. The biggest environmental and climate risks are related to the actual production carried out by third parties.Dymak is aware of the potential risks associated with its presence in Asia, Türkiye and Mexico, particularly challenges related to human rights and corruption. Dymak actively seeks to mitigate such potential risks by, for example, being present locally with own employees close to the factories. Dymak also acknowledges the risks related to the challenges of attracting and retaining talented employees, as well as the climate impact of the transport of goods and the Company's operation of offices. The transport impact is attempted limited through direct deliveries from the factory to the various points of sale, so that carriage to and from a warehouse facility is avoided.Materiality assessment of risks/opportunitiesThe risk assessment includes relevant risks and potential opportunities to influence and/or prevent or avoid potential and adverse impacts from the above six matters. Below table was prepared during the work initiated to meet the requirements in the CSRD Directive.Dymak strives to do its utmost to identify, prevent and mitigate the above risks. The risk picture is assessed on an ongoing basis by top management and Dymak's ESG and Compliance department. Prior to entering 2023-24, as part of the preparation of a formalised policy in the area, Dymak identified 11 ESG KPIs, all of which supports the four UN Sustainable Development Goals. The KPIs include:Decision on the proportion of suppliers who must commit to social certifications (BSCI, Sedex), CoC and Dymak Supplier Agreement – which will all support decent working conditions (UN-8). Decision on the number of suppliers, the volume of business carried out, focus on more direct deliveries and number of factory audits – which will all support sustainable production patterns (UN-12).Decision on the reduction of CO2 emissions using renewable energy – for the purpose of combatting climate change (UN-13).Decision on the proportion of sourcing from different developing countries – which will support global partnerships focusing on sustainable development (UN-17). Dymak has worked intensely with meeting the KPIs set at the beginning of the year, and we’re pleased to see positive progress on all parameters. Number of certified suppliers, number of factory audits performed and diversification in use of sourcing countries are all met. The renewable energy KPI is also met via solar panels at the Danish location and an investment in a solar park. To foster growth in this area, the KPIs will continue to be active in 2024/25, with even more ambitious targets set for the upcoming year.Environment and climateDymak is continuously working on minimising its negative impact on the environment and climate. The biggest environmental and climate risks are related to the actual production. Often, the manufacturing process (such as firing of ceramics) is energy intensive. On selected shipping lanes, Dymak has entered into agreements with carriers about bio-fuelled transport. Dymak is aware of the environmental and climate impact of its offices. To meet this challenge, Dymak has installed solar cells at its head office and invested in European solar parks to cover all CO2 emissions from its own offices. In the view of the Group, travelling should be limited to the extent possible from a business perspective. Being a merchandising business, the Company has limited influence on the end-of-use environmental and climate impact of discarded Dymak products, and therefore, it does not carry out separate work in this area. In relation to ensuring proper conditions (biodiversity, aquatic environment, the rights of indigenous peoples and forest workers) and preventing deforestation, Dymak is FSC-certified (Chain of Custody). The audit was carried out by Bureau Veritas at the beginning of 2024, and no remarks were made. Focusing on the supplier selection process has brought significant improvements. Overall number of suppliers has been significantly reduced.The process includes criteria for selection, mitigation of risks, potential for improvement, signing of a supplier agreement and Code of Conduct and, finally, a physical audit at the production site, where relevant working conditions are reviewed before a supplier can be approved. The process is well-implemented in our current process flows and will be incorporated directly into the new ERP system in the year to come. When performing factory audits a Compliance IT tool is used by our own quality control officers and it ensures continuous focus on both environmental and climate aspects of production as well as social conditions and governance (anti-corruption). Following an audit, a report is generated which forms the basis for an overall assessment of whether the supplier meets the requirements set out in the supplier agreement, etc. In the coming years, Dymak will continue making a targeted effort at reducing the number of suppliers. This will contribute to a more efficient production process, which will optimise energy consumption and reduce waste. In addition, the Company will attempt to increase the number of direct deliveries, which will reduce transport and associated CO2 emissions where possible.Social mattersDymak continuously contributes to the improvement of social conditions by requiring new suppliers to be BSCI-certified at C level or become BSCI-certified as a minimum at C level within six months after being onboarded. In addition, Dymak is a member of Amfori. Amfori empowers companies to operate successful and responsible businesses, by helping them improve the environmental, social and governance performance of their value chains. Dymak's quality control officers make at least three visits: before, during and after production, while applying the proprietary compliance tool to review the production facility's management of the environment, climate, human rights and anti-corruption.In addition, the Company is continuously working to increase the share of BSCI or Sedex-certified suppliers in the future. Staff mattersDymak accepts broad social responsibility for all participants in our value chain, but we are first and foremost responsible for our own employees. We have chosen to live up to this responsibility by creating a working environment that ensures “A Good Day at Work” for everybody. “A Good Day at Work” is prioritised above everything else as it is seen as the very prerequisite for developing the Company’s competitiveness. To measure Dymak’s ability of creating “A Good Day at Work” we continue the use of yearly satisfaction surveys. The result of this year's Survey remains at an elevated score of 4.3 on a scale of 1 to 5. This is considered a very satisfactory score which reflects a group of employees who continuously are generally very satisfied with Dymak in a workplace perspective. Retention rate is also utilized to evaluate “A Good Day at Work”. During 2023-24 Dymak secured a 91% retention rate. Although this is slightly lower than past period (96%) it is within the acceptable area. We strive to ensure a higher retention in the year to come. Exit interviews are always conducted to understand the employee’s decision to leave Dymak and to identify any internal areas for development and learning. Additionally, "A Good Day at Work" will remain our focal point in the year to come and employee satisfaction surveys will continue to be conducted to track our development and to follow up on areas in need of special attention. When initiating a major IT project, we recognize the impact it has on our employees. Our purpose of “A Good Day at Work” is set as a primary objective in the IT project to ensure the project will be well integrated. Incorporating a good day at work is obtained by focusing on building an IT setup that accommodates for a structured “one procedure” approach throughout the Dymak Group. Structure, and the resulting “one procedure”, is a key parameter when employees state what is the most important outcome to them in such a project. This year, we have furthermore taken an important and exciting step in introducing the first part of our internal Leadership Development Programme. The purpose is to support our managers being good people leaders. This programme, based on emotional intelligence, starts with the manager’s own attitudes and emotions to foster outstanding performance in themselves and their teams. We will continue to build on this foundation in the year to come.Our new HQ in Odense, Denmark is under construction and will be ready in the fall of 2025. The building will be DGNB Gold certified (the environment), Heart certified (staff matters), CO2 neutral in operation and will generally embrace a good working life. We believe purpose of that employees will choose to come to the office because they want to, not because they must.Dymak is an inclusive workplace without discrimination. We embrace all employees no matter gender, age, ethnicity or other characteristics that are irrelevant to the competences of the employee.Our staff data are always handled in software designed specifically to ensure GDPR compliance. Human rightsDymak is continuously working on increasing the proportion of BSCI-certified suppliers. A focus that was strengthened during the financial year 2023-24 by requiring all new suppliers to be BSCI or Sedex certified. With the focus on BSCI and Sedex certifications, Dymak does not currently hold a separate policy on social responsibility and human rights. In the coming years, Dymak will enhance the effort in this particular area and implement measures to meet future requirements set by the Corporate Sustainability Report Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD). The primary risks associated with human rights are the working conditions at the factories, including observance of working hours, ventilation, etc. – all areas targeted by the BSCI certification. Dymak believes that human rights are complied with to a greater extent when quality control officers are present locally and address the above conditions during their inspections. During the financial year, any issues has been pointed out to the factory management. Depending on the nature of the issue, a deadline of one to six months is set for the supplier to rectify the situation. We did not, during our visits to the factories, identify any significant inconsistencies with Dymak's guidelines or the BSCI rules, and all suppliers with unacceptable scores have cooperated to meet the Company's social compliance requirements.As end-user product safety is essential, Dymak has made a strategic choice not to sell select product groups that could potentially entail a risk to the end user. In addition, efforts are made to minimise the use of glazing containing harmful chemicals, and the Company is actively promoting the sale of products which, from a manufacturing perspective, are less harmful to the environment and climate. These include pottery made of wood where the energy-intensive firing process known from the production of ceramics is avoided. All onboarded suppliers have signed Dymak's Code of Conduct and Supplier Agreement. Anti-corruption and anti-briberyDymak applies an internal as well as an external Code of Conduct in the fight against corruption and bribery. The Codes of Conduct has been enacted since 2022. The Code of Conduct clearly states that corruption and bribery are strictly prohibited, both by Dymak's employees and at the production facilities. As a global player, Dymak knows that the concept is interpreted differently across cultures and, for this precise reason, the Company continues to communicate and control this matter. The policy is translated into action by asking all employees in the production areas to sign a declaration clearly stating that corruption and bribery are reported to the police and will lead to termination of employment and cancellation of any bonuses earned. It is the Company's view that the partnerships established by Dymak through its local presence at the factories reduce the risk of corruption and bribery, both now and in future.An Honesty Agreement was drawn up as an addendum to the Supplier Agreement. The document contains clear guidelines as to which actions are considered to resemble corruption. Suppliers must inform Dymak immediately if they become aware of behaviour resembling corruption. As part of a risk assessment, selected suppliers in selected markets were tested on a sample basis. Where indications of deviant behaviour existed, measures were taken to prevent corruption and bribery. Going forward, Dymak will continue to encourage suppliers and employees to report behaviour resembling corruption. A whistleblower scheme is implemented. To ensure GDPR compliance the setup is handled by a third party. No incidents have been reported during the financial year 2023-24. Report on gender representation, cf section 99 b of the Danish Financial Statements ActBoard of DirectorsAn equal gender distribution on Dymak’s Board of Directors is met in 2023-24.The board is composed of an equal number of men and women, with two of each. As Dymak meets the gender representation requirements in terms of female members on the Board of Directors, no target figures and policy have been laid down in this respect. Other management levelsAn equal gender distribution on Dymak’s other management levels (1 and 2) is met in 2023-24. Level 1 includes the CEO, COO, CFO, CIO, Commercial Director, Business Development Director, Head of People and Culture and the Sourcing Director.Level 2 management positions imply a direct report to level 1. As Dymak considers 47% female representation in management meets the gender representation requirements in terms of female managers, no target figures and policy have been laid down in this respect.RecruitmentWhen recruiting new employees, Dymak does not take account of gender, age, ethnicity or other characteristics that are irrelevant to the competences of the candidate. Recruitment is based solely on qualifications, drive and a set of values that matches the Dymak set of values.PromotionsWe believe in developing our people. This also means promoting employees who have the corresponding talent, skills and drive. Therefore, we have people being promoted internally every year. When the internal promotions require supplementary training and/or courses these are always prioritized.During 2023-24 8 employees were promoted as part of the Global rearranging of the organization. Report on gender representation, cf section 99 b of the Danish Financial Statements ActBoard of DirectorsAn equal gender distribution on Dymak’s Board of Directors is met in 2023-24.The board is composed of an equal number of men and women, with two of each. As Dymak meets the gender representation requirements in terms of female members on the Board of Directors, no target figures and policy have been laid down in this respect. Other management levelsAn equal gender distribution on Dymak’s other management levels (1 and 2) is met in 2023-24. Level 1 includes the CEO, COO, CFO, CIO, Commercial Director, Business Development Director, Head of People and Culture and the Sourcing Director.Level 2 management positions imply a direct report to level 1. As Dymak considers 47% female representation in management meets the gender representation requirements in terms of female managers, no target figures and policy have been laid down in this respect.RecruitmentWhen recruiting new employees, Dymak does not take account of gender, age, ethnicity or other characteristics that are irrelevant to the competences of the candidate. Recruitment is based solely on qualifications, drive and a set of values that matches the Dymak set of values.PromotionsWe believe in developing our people. This also means promoting employees who have the corresponding talent, skills and drive. Therefore, we have people being promoted internally every year. When the internal promotions require supplementary training and/or courses these are always prioritized.During 2023-24 8 employees were promoted as part of the Global rearranging of the organization. Report on data ethics policy, cf section 99 d of the Danish Financial Statements ActData ethics Dymak is aware of its responsibility to treat all external and internal stakeholders' data safely and securely. IT and data protection policies have been refined in the past year. Policies are accessible to all employees via Dymak’s intranet. The policies cover the use of hardware and software, as well as guidelines for IT security and implementation of the GDPR. Ongoing training is provided throughout the organization as needed to ensure employees adhere to data ethics in their daily work.Data processing agreements are drawn up with external partners, and sensitive personal data are only registered in systems that comply with the GDPR rules.Dymak operates within the business-to-business market, maintaining exclusively business-related information, such as contact details for customers and suppliers.Personal data on employees are collected solely for the purposes of employment. Personal data may not be used for purposes other than that for which the data were originally provided.In addition, the ongoing data ethics efforts and policies are evaluated continuously to ensure compliance with the policies across the organisation. Report on data ethics policy, cf section 99 d of the Danish Financial Statements ActData ethics Dymak is aware of its responsibility to treat all external and internal stakeholders' data safely and securely. IT and data protection policies have been refined in the past year. Policies are accessible to all employees via Dymak’s intranet. The policies cover the use of hardware and software, as well as guidelines for IT security and implementation of the GDPR. Ongoing training is provided throughout the organization as needed to ensure employees adhere to data ethics in their daily work.Data processing agreements are drawn up with external partners, and sensitive personal data are only registered in systems that comply with the GDPR rules.Dymak operates within the business-to-business market, maintaining exclusively business-related information, such as contact details for customers and suppliers.Personal data on employees are collected solely for the purposes of employment. Personal data may not be used for purposes other than that for which the data were originally provided.In addition, the ongoing data ethics efforts and policies are evaluated continuously to ensure compliance with the policies across the organisation. Dymak’s business modelDymak is a global B2B company focused on “The Green World”. Garden Centres and growers comprise our primary target group. Major markets are the US, the Netherlands and Canada. Main product categories include plant accessories such as pots and vases, as well as garden centre products such as garden furniture and outdoor pottery. The products are designed in Denmark and primarily produced in Vietnam, Indonesia and China. It is the Company´s objective to increase its vendor diversification further to minimize the risk from geopolitics. Strategy 2024/25Dymak´s Mission is “To Advise and to Source Private Label Concepts” and our Vision is “To become the Leading Private Label Advisor of our Industry”. Most important however, is the Company´s Purpose, which is “To Have a Good Day at Work”. Our employees remain our biggest asset, and we consider a good working environment as crucial if we are to realise our ambitions of the CompanyTo be able to deliver at the highest level on Quality & Compliance, Dymak always has its own staff present at the production sites. The Company operate with a “Boots on the Ground” approach, and we use our company values to ensure an aligned understanding on e.g. ESG matters. Dymak's values are founded in Denmark, and a constant effort is required to ensure that these values are preserved in the very different cultures of our global offices. We believe that a common global understanding is necessary and will become a competitive advantage when we, as a company, are to meet the increased complexity of international trade Dymak's values/characteristics•Dynamic – we match the Insights within our supply chain•Innovative – we create Private Label concepts•Reliable – we ensure Quality & Compliance•Transparency – we share informationDevelopment in activities and financesThe Group´s gross profit for the financial year 1 July 2023 – 30 June 2024 is 52,272,619 DKK compared to 101,860,329 DKK last year, and the profit after tax is – 8,667,393 DKK compared to 39,099,67, DKK last year.The negative development is primarily a result of a very challenging freight market, where Dymak had to absorb steep freight increases from global forwarders. Several of Dymak’s main customers were still holding significant level of inventory from after Covid period and that also had a negative impact on the Groups result.The Group´s balance sheet 30 June 2024 shows an equity of 37,405,791 DKK compared to 101,317,652 last year.The Management considers the result for the year non satisfactory.To comply with increased regulations of international trade, Dymak is implementing a new IT platform. Dymak has invested in Strategic Partnerships to secure our key supply chain, if a geopolitical conflict or other issues should impact it. The increased complexity of global trade is expected to strengthen the Company's competitiveness in the long term. Special risksAs the geopolitical development entails an increasing risk to international trade in general, we are making a targeted effort to diversify our supply chain through a greater diversification of sourcing countries. To support the continued diversification of our supply chain, we have established local procurement offices in Mexico, Vietnam, Indonesia, India and Turkey. The target for 2023-24 was 20%, which was achieved and for 2024/25 it is 25%. The somewhat slow diversification rate is mainly due to a lack of competent production capacity, but also to a highly competent procurement office in China. Dymak's most immediate risk is product quality. To ensure and maintain high-quality products at all times, the Group is represented locally by its own employees, who on average make three inspections per production: Typically, these comprise a pre-production inspection where Code of Conduct and specific certification requirements are checked, and packaging is ordered from the factory's subcontractors. Then a production inspection is carried out, during which a number of samples are selected for inspection in accordance with the order specifications. Lastly, a final inspection is performed, where packaging, labels, moisture level, etc., are checked. All inspections are documented using customised software and will be made available to customers on request. The Group has a target claim ratio of under 1.0%. IT security poses a risk which is mitigated through a global cyber risk agreement with a leading security provider. An intrusion detection system has thus been deployed globally in all entities of the Group, and no software can be procured without central verification. In the current financial year, the focus has been on configuration of corporate assets and software, access control, account management, data recovery and malware protection. All parameters have been upgraded compared to previous year.In 2024/25 we will focus on continuous vulnerability management, audit log management, network monitoring and defence, network infrastructure management, as well as security awareness and skills training. Awareness has been a key focus during 2023-24. Though online education, the awareness level increased by 88%, reaching a top-tier level. Dymak's goal for 2024/25 is a CIS Basic Cyber Hygiene of 80%.About 80% of the currency exposure to USD is hedged. Exposure to other currencies is considered insignificant. Credit insurance covers approx. 90% of total receivables and like the years before, no losses have occurred in 2023-24. Know-how and researchThe Group's most important resource is its competent and motivated employees. 10% of the Group's expenses are allocated to concept innovation, IT/AI investments, ESG skills, supply chain diversification and, not least, investment in employee learning and development. Significant initiatives in 2024 include:•Implementing a new global cloud-based ERP system•QC Centre learning•ESG regulation and compliance in generalDevelopment expectationsIn the financial year 2024-25, the activity level is expected to increase significantly. The Group anticipates a positive result in the range of DKK 15-20 million.Key TrendsDymak has identified below mentioned four trends, which we expect will impact our overall objectives heading into 2024/25 and beyond.Employability More flexible requirements in terms of physical presence at the workplace continue to be a significant parameter when maintaining the ability of businesses to attract talented employees from a larger geographical area. However, this trend also makes the competition for the same talent more intense, which in turn imposes requirements on organisations to be an attractive workplace. ResponseIn Dymak, we believe in the importance of creating an attractive workplace for talented people – we consider this a crucial competitive parameter. Therefore, our purpose is centred around our people. We call it “Having a Good Day at Work”. We believe that it takes a joint effort from our company, our management, our teams and the individual employee to live up to this purpose - and together we strive to do so. Based on our annual internal satisfaction survey and focused work by our teams diving into and focusing on our purpose, we have identified that, for the employees at Dymak, “Having a Good Day at Work” may be summed up to four key statements:●Empowerment: empowered leaders, teams and individuals●Collaboration: strong teams who collaborate, support each other and have fun●Success: success for the company and for the individual●Flexibility: a life in balanceComplianceRegulatory requirements and customers’ increased focus on ESG has become more intense in recent years, and with greater awareness the risk is also greater if a supplier or product fails. Therefore, the customers are increasingly demanding value chains that can handle the increased complexity. ResponseDymak remains dedicated to continuously enhancing competencies in ESG overall, with a particular focus on compliance.A key focus for 2024/25 will be integrating ESG and compliance into our new system landscape to support the growing demands from both customers and authorities. Further resources will be added to the area in the year to come. Our Compliance department is consistently testing new products to address potential IP right infringements, and in connection with more complicated products, external advisers are involved. To ensure products complying with regulatory and customer demands Dymak works with: ●BSCI certification – Sedex certification: We are working on having our suppliers join a third-party social audit, e.g. the BSCI or Sedex, to ensure proper conditions at the factories●Our suppliers sign Dymak's Code of Conduct, Supplier Agreement and receive an Honesty Agreement•We continuously work with adopting upcoming legislation to meet future requirements such as EUDR, Packaging Directive etc. Supply Chain disruptionPrior to COVID 19, the war in Ukraine, and the Red Sea conflict the consensus was that the lowest possible total costs of a purchase was achieved by concentrating purchases with a few factories. This trend is now moving towards the application of a diversified approach, where delivery reliability from multiple factories, located in several geographical areas, is factored in with the total costs. Geopolitics and delivery reliability continues to be a criterion to the purchase decision. ResponseDymak has for many years created value by selecting slightly smaller but highly specialised factories, and we are therefore well positioned in relation to this development. Dymak guides customers on sourcing strategies to mitigate supply chain disruptions by leveraging our diversified local presence in various sourcing countries.UniquenessAs our society changes, so does the need for fulfilment of more specific demands. Consumers are increasingly demanding products that meet more complex purchase criteria such as sustainable production, storytelling, specific events or the like – in other words, the demand for specialties and special concepts is increasing. ResponseA challenge to achieving “uniqueness” is that developing and delivering new products directly from the factory is more complex than delivering standard products through a storage facility.Dymak's value proposition meets this particular trend, and it is our mission to ".... Advise and to Source Private Label Concepts". This competitive edge is gained through a carefully selected network of specialized suppliers in multiple regions. Choosing products to fit Private Label Concepts are also done by utilizing our database with 80,000 images including thorough product descriptions.Uncertainty relating to recognition and measurementRecognition and measurement in the Annual Report have not been subject to any uncertainty.Unusual circumstancesNo unusual events have occurred. Subsequent eventsNo events materially affecting the assessment of the Annual Report have occurred after the balance sheet date. Dymak’s business modelDymak is a global B2B company focused on “The Green World”. Garden Centres and growers comprise our primary target group. Major markets are the US, the Netherlands and Canada. Main product categories include plant accessories such as pots and vases, as well as garden centre products such as garden furniture and outdoor pottery. The products are designed in Denmark and primarily produced in Vietnam, Indonesia and China. It is the Company´s objective to increase its vendor diversification further to minimize the risk from geopolitics. Strategy 2024/25Dymak´s Mission is “To Advise and to Source Private Label Concepts” and our Vision is “To become the Leading Private Label Advisor of our Industry”. Most important however, is the Company´s Purpose, which is “To Have a Good Day at Work”. Our employees remain our biggest asset, and we consider a good working environment as crucial if we are to realise our ambitions of the CompanyTo be able to deliver at the highest level on Quality & Compliance, Dymak always has its own staff present at the production sites. The Company operate with a “Boots on the Ground” approach, and we use our company values to ensure an aligned understanding on e.g. ESG matters. Dymak's values are founded in Denmark, and a constant effort is required to ensure that these values are preserved in the very different cultures of our global offices. We believe that a common global understanding is necessary and will become a competitive advantage when we, as a company, are to meet the increased complexity of international trade Dymak's values/characteristics•Dynamic – we match the Insights within our supply chain•Innovative – we create Private Label concepts•Reliable – we ensure Quality & Compliance•Transparency – we share informationDevelopment in activities and financesThe Group´s gross profit for the financial year 1 July 2023 – 30 June 2024 is 52,272,619 DKK compared to 101,860,329 DKK last year, and the profit after tax is – 8,667,393 DKK compared to 39,099,67, DKK last year.The negative development is primarily a result of a very challenging freight market, where Dymak had to absorb steep freight increases from global forwarders. Several of Dymak’s main customers were still holding significant level of inventory from after Covid period and that also had a negative impact on the Groups result.The Group´s balance sheet 30 June 2024 shows an equity of 37,405,791 DKK compared to 101,317,652 last year.The Management considers the result for the year non satisfactory.To comply with increased regulations of international trade, Dymak is implementing a new IT platform. Dymak has invested in Strategic Partnerships to secure our key supply chain, if a geopolitical conflict or other issues should impact it. The increased complexity of global trade is expected to strengthen the Company's competitiveness in the long term. Special risksAs the geopolitical development entails an increasing risk to international trade in general, we are making a targeted effort to diversify our supply chain through a greater diversification of sourcing countries. To support the continued diversification of our supply chain, we have established local procurement offices in Mexico, Vietnam, Indonesia, India and Turkey. The target for 2023-24 was 20%, which was achieved and for 2024/25 it is 25%. The somewhat slow diversification rate is mainly due to a lack of competent production capacity, but also to a highly competent procurement office in China. Dymak's most immediate risk is product quality. To ensure and maintain high-quality products at all times, the Group is represented locally by its own employees, who on average make three inspections per production: Typically, these comprise a pre-production inspection where Code of Conduct and specific certification requirements are checked, and packaging is ordered from the factory's subcontractors. Then a production inspection is carried out, during which a number of samples are selected for inspection in accordance with the order specifications. Lastly, a final inspection is performed, where packaging, labels, moisture level, etc., are checked. All inspections are documented using customised software and will be made available to customers on request. The Group has a target claim ratio of under 1.0%. IT security poses a risk which is mitigated through a global cyber risk agreement with a leading security provider. An intrusion detection system has thus been deployed globally in all entities of the Group, and no software can be procured without central verification. In the current financial year, the focus has been on configuration of corporate assets and software, access control, account management, data recovery and malware protection. All parameters have been upgraded compared to previous year.In 2024/25 we will focus on continuous vulnerability management, audit log management, network monitoring and defence, network infrastructure management, as well as security awareness and skills training. Awareness has been a key focus during 2023-24. Though online education, the awareness level increased by 88%, reaching a top-tier level. Dymak's goal for 2024/25 is a CIS Basic Cyber Hygiene of 80%.About 80% of the currency exposure to USD is hedged. Exposure to other currencies is considered insignificant. Credit insurance covers approx. 90% of total receivables and like the years before, no losses have occurred in 2023-24. Know-how and researchThe Group's most important resource is its competent and motivated employees. 10% of the Group's expenses are allocated to concept innovation, IT/AI investments, ESG skills, supply chain diversification and, not least, investment in employee learning and development. Significant initiatives in 2024 include:•Implementing a new global cloud-based ERP system•QC Centre learning•ESG regulation and compliance in generalDevelopment expectationsIn the financial year 2024-25, the activity level is expected to increase significantly. The Group anticipates a positive result in the range of DKK 15-20 million.Key TrendsDymak has identified below mentioned four trends, which we expect will impact our overall objectives heading into 2024/25 and beyond.Employability More flexible requirements in terms of physical presence at the workplace continue to be a significant parameter when maintaining the ability of businesses to attract talented employees from a larger geographical area. However, this trend also makes the competition for the same talent more intense, which in turn imposes requirements on organisations to be an attractive workplace. ResponseIn Dymak, we believe in the importance of creating an attractive workplace for talented people – we consider this a crucial competitive parameter. Therefore, our purpose is centred around our people. We call it “Having a Good Day at Work”. We believe that it takes a joint effort from our company, our management, our teams and the individual employee to live up to this purpose - and together we strive to do so. Based on our annual internal satisfaction survey and focused work by our teams diving into and focusing on our purpose, we have identified that, for the employees at Dymak, “Having a Good Day at Work” may be summed up to four key statements:●Empowerment: empowered leaders, teams and individuals●Collaboration: strong teams who collaborate, support each other and have fun●Success: success for the company and for the individual●Flexibility: a life in balanceComplianceRegulatory requirements and customers’ increased focus on ESG has become more intense in recent years, and with greater awareness the risk is also greater if a supplier or product fails. Therefore, the customers are increasingly demanding value chains that can handle the increased complexity. ResponseDymak remains dedicated to continuously enhancing competencies in ESG overall, with a particular focus on compliance.A key focus for 2024/25 will be integrating ESG and compliance into our new system landscape to support the growing demands from both customers and authorities. Further resources will be added to the area in the year to come. Our Compliance department is consistently testing new products to address potential IP right infringements, and in connection with more complicated products, external advisers are involved. To ensure products complying with regulatory and customer demands Dymak works with: ●BSCI certification – Sedex certification: We are working on having our suppliers join a third-party social audit, e.g. the BSCI or Sedex, to ensure proper conditions at the factories●Our suppliers sign Dymak's Code of Conduct, Supplier Agreement and receive an Honesty Agreement•We continuously work with adopting upcoming legislation to meet future requirements such as EUDR, Packaging Directive etc. Supply Chain disruptionPrior to COVID 19, the war in Ukraine, and the Red Sea conflict the consensus was that the lowest possible total costs of a purchase was achieved by concentrating purchases with a few factories. This trend is now moving towards the application of a diversified approach, where delivery reliability from multiple factories, located in several geographical areas, is factored in with the total costs. Geopolitics and delivery reliability continues to be a criterion to the purchase decision. ResponseDymak has for many years created value by selecting slightly smaller but highly specialised factories, and we are therefore well positioned in relation to this development. Dymak guides customers on sourcing strategies to mitigate supply chain disruptions by leveraging our diversified local presence in various sourcing countries.UniquenessAs our society changes, so does the need for fulfilment of more specific demands. Consumers are increasingly demanding products that meet more complex purchase criteria such as sustainable production, storytelling, specific events or the like – in other words, the demand for specialties and special concepts is increasing. ResponseA challenge to achieving “uniqueness” is that developing and delivering new products directly from the factory is more complex than delivering standard products through a storage facility.Dymak's value proposition meets this particular trend, and it is our mission to ".... Advise and to Source Private Label Concepts". This competitive edge is gained through a carefully selected network of specialized suppliers in multiple regions. Choosing products to fit Private Label Concepts are also done by utilizing our database with 80,000 images including thorough product descriptions.Uncertainty relating to recognition and measurementRecognition and measurement in the Annual Report have not been subject to any uncertainty.Unusual circumstancesNo unusual events have occurred. Subsequent eventsNo events materially affecting the assessment of the Annual Report have occurred after the balance sheet date. 4 0.5 19 0.47 304103184 455731602 272465712 293481600 0 0 14678898 15219910 228854216 330665924 253108829 276294353 22976349 23205349 10856858 11602489 52272619 101860329 23178923 20804668 52756114 54182899 22828368 20712614 5382133 4909345 4992497 4565466 -5865628 42768085 -4641942 -4473412 0 0 -5323367 35375394 1855207 9568338 4189723 12960018 5169184 5300733 3429842 4839112 -9179605 47035690 -9205428 39022888 -512212 7936017 -978576 -309501 -8667393 39099673 -8226852 39332389 0 55000000 0 55000000 0 0 942712 1449810 -440540 -251501 0 0 -8226853 -15648826 -9169564 -17117421 17069518 13870058 16626355 13426895 0 47143 0 0 17069518 13917201 16626355 13426895 1759815 651180 0 0 1621758 1662736 704728 561620 72101916 0 72101916 0 75483489 2313916 72806644 561620 0 0 10477595 15503735 931040 1032898 931040 1032898 7354548 8006917 7354548 8006917 8285588 9039815 18763183 24543550 100838595 25270932 108196182 38532065 27301796 17228482 3060198 2414445 7241247 7909222 7241247 7909222 34543043 25137704 10301445 10323667 25090644 23669629 4580664 3053464 0 0 35830333 19813086 20020664 21842253 12203798 12629070 2487014 2835267 1949121 1898839 47598322 48347149 54563916 37394459 2379818 43116717 0 41682257 84521183 116601570 64865361 89400383 185359778 141872502 173061543 127932448 1000000 1000000 1000000 1000000 0 0 12966997 8912977 4308698 0 0 0 32097093 45317652 23438794 36404675 0 55000000 0 55000000 37405791 101317652 37405791 101317652 37005 497333 0 0 37442796 101814985 37405791 101317652 647122 1061761 647122 1061761 647122 1061761 647122 1061761 64872199 0 64872199 0 64872199 0 64872199 0 1866327 0 1866327 0 6927348 0 6927348 0 0 34903 0 0 43967781 22363276 18874986 7393293 2711600 0 21250938 10270542 340701 1006136 0 0 26583904 15591441 21216832 7889200 82397661 38995756 70136431 25553035 147269860 38995756 135008630 25553035 185359778 141872502 173061543 127932448 1000000 0 45317652 55000000 497333 0 4308698 -4308698 0 0 0 0 0 -55000000 0 0 0 -8226853 0 -440541 0 0 257703 0 0 1000000 4308698 32097093 0 37005 1000000 0 8912977 36404675 55000000 0 0 0 0 -55000000 0 -942712 0 0 0 0 942712 0 -9169564 0 0 0 0 257703 0 0 0 4054020 -4054020 0 1000000 0 12966997 23438794 0 -8667393 39099673 7221400 7014362 24163255 83672093 22717262 129786128 1855207 9568338 -5169184 -5300733 19403285 134053733 -567862 -14414731 18835423 119639002 -7902522 -5445513 -73801501 -1783011 189644 -1430917 0 156899 564583 0 -80949796 -8502542 1866327 -28510872 71799547 0 2711600 0 -55000000 -42000000 21377474 -70510872 -40736899 40625588 43116717 2491129 2379818 43116717 2379818 43116717 2379818 43116717 No events materially affecting the assessment of the Annual Report have occurred after the balance sheet date. Geographical segments Revenue, Denmark 31637472 41099316 31637472 41099316 Revenue, exports 272465712 414632286 240828240 252382284 Total 304103184 455731602 272465712 293481600 44617766 45248649 18396522 15911110 2903718 2773382 2281176 2190726 1335873 1444641 0 0 3898757 4716227 2150670 2610778 52756114 54182899 22828368 20712614 1569754 1993600 1569754 1993600 420000 520000 420000 520000 1989754 2513600 1989754 2513600 132 129 35 34 Including remuneration to the Executive Board and Board of Directors: 4750205 4124972 4703062 4077829 631928 784373 289435 487637 5382133 4909345 4992497 4565466 0 0 2492819 4193658 411336 817458 285414 18317 1443871 8750880 1411490 8748043 1855207 9568338 4189723 12960018 3119071 1086091 2586717 622708 2050113 4214642 843125 4216404 5169184 5300733 3429842 4839112 358912 8132152 0 0 -978576 -309501 -978576 -309501 107452 113366 0 0 -512212 7936017 -978576 -309501 30476905 2207870 30033742 7902522 0 7902522 38379427 2207870 37936264 16606847 2160727 16606847 4703062 47143 4703062 21309909 2207870 21309909 17069518 0 16626355 651180 17361181 0 9704535 0 1203181 757740 71799547 456243 71799547 0 564583 0 79000 0 0 0 302369 0 302369 1854361 17554338 72101916 10081778 72101916 94546 15698445 0 9142915 0 0 289435 0 289435 0 0 -55300 0 -55300 0 94546 15932580 0 9377050 0 1759815 1621758 72101916 704728 72101916 21844166 21769077 0 75090 21844166 21844167 -6340432 -9005509 -942712 -1449810 -4726584 33135897 0 31948460 -593661 687952 0 47143 -596783 2286641 -13200172 -6340432 1833601 0 10477595 15503735 Dymak Holland BV Netherlands 100 Dymak Xiamen China 100 Danflora China 70 Dymak India Limited India 80 Dymak USA Inc USA 100 Dymak Limited UK 100 Dymak Canada Canada 100 1032898 8006917 1032898 8006917 0 350000 0 350000 0 -302369 0 -302369 1032898 7354548 1032898 7354548 0 0 0 0 101858 0 101858 0 101858 0 101858 0 931040 7354548 931040 7354548 Investments in subsidiaries are specified as follows: Other receivables 20020664 21842253 12203798 12629070 Total 20020664 21842253 12203798 12629070 Other receivables include the positive fair value of currency forward contracts of TDKK 300 for hedging the price of the future financial year's future purchases in USD. Prepayments consist of prepaid expenses Deferred tax liabilities at 1 July 1061761 1377925 1061761 1377925 Amounts recognised in the income statement for the year -348617 -309501 -348617 -309501 Amounts recognised in equity for the year -66022 -6663 -66022 -6663 Deferred tax liabilities at 30 June 647122 1061761 647122 1061761 26232076 0 26232076 0 38640123 0 38640123 0 64872199 0 64872199 0 6927348 0 6927348 0 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: Lease obligations -1855207 -9568338 5169184 5300733 5382133 4909345 -512212 7936017 7221400 7014362 -962498 -1563395 -9405339 54510262 748827 74076920 32562064 -41195644 257703 -3719445 24163255 83672093 Charges and security The following assets have been placed as security with bankers: Company charges registered to the totalling kDKK 35,000, providing security on accounts receivables, inventory, tangible and intangible assets at a total carrying amount of: 32213192 27365646 32213192 27365646 The following assets have been placed as security for lease obligations: Rental and lease obligations Lease obligations under operating leases. Total future lease payments: Within 1 year 839309 712457 479018 471682 Between 1 and 5 years 585284 922750 215701 216702 Total 1424593 1635207 694719 688384 Lease obligations, period of non-terminability 5-6 years 6927348 9479089 6927348 6648897 Lease obligations regarding properties 55382724 127185272 55382724 127185272 Other contingent liabilities The 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 is disclosed in the Annual Report of Bøgelund ApS, which is the management company of the joint taxation purposes. Moreover, the 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. Basis Controlling interest Bøgelund ApS 70 % ownership Transactions There have been no transactions with the Supervisory Board, The Executive Board, senior officers, significant shareholders, group enterprises or other related parties, except for intercompany transactions and normal management remuneration. Consolidated Financial Statements The Company is included in the Group Annual Report of the Parent Company of the largest and smallest group: Name Place of registered office Bøgelund ApS Sankt Peders Stræde 21, 2. 21453 København KDenmark 250000 240000 21255 15000 341745 273102 46237 53345 PricewaterhouseCoopers Other accounting firms The Annual Report of Dymak A/S for 2023/24 has been prepared in accordance with the provisions of the Danish Financial Statements Act applying to medium-sized enterprises of reporting class C. The accounting policies applied remain unchanged from last year. The Consolidated Financial Statements and the Parent Company Financial Statements for 2023/24 are presented in DKK. true 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. Basis of consolidation The Consolidated Financial Statements comprise the Parent Company, Dymak A/S, and subsidiaries in which the Parent Company directly or indirectly holds more than 50% of the votes or in which the Parent Company, through share ownership or otherwise, exercises control. Enterprises in which the Group holds between 20% and 50% of the votes and exercises significant influence but not control are classified as associates. On consolidation, items of a uniform nature are combined. Elimination is made of intercompany income and expenses, shareholdings, dividends and accounts as well as of realised and unrealised profits and losses on transactions between the consolidated enterprises. The Parent Company's investments in the consolidated subsidiaries are set off against the Parent Company's share of the net asset value of subsidiaries stated at the time of consolidation. Minority interests Minority interests form part of the Group's total equity. Upon distribution of net profit, net profit is broken down on the share attributable to minority interests and the share attributable to the shareholders of the Parent Company. Minority interests are recognised on the basis of a remeasurement of acquired assets and liabilities to fair value at the time of acquistition of subsidiaries. Business acquisitions carried through before 1 July 2018 Minority interests are recognised at the carrying amounts of the acquired assets and liabilities at the time of acquisition of subsidiaries. Business acquisitions carried through on or after 1 July 2018 Minority interests are initially measured at their proportionate share of the fair value of the acquired entity’s identifiable net assets. In this way, only goodwill related to the Parent Company’s share of the entity acquired is recognised. On subsequent changes to minority interests where the Group retains control of the subsidiary, the consideration is recognised directly in equity. Leases in terms of which the Group 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 Group. 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. Danish kroner is used as the presentation currency. All other currencies are regarded as foreign currencies. 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 transaction date rates are recognised in financial income and expenses in the income statement; however, see the section on hedge accounting. Income statements of foreign subsidiaries and associates that are separate legal entities are translated at transaction date rates or approximated average exchange rates. Balance sheet items are translated at the exchange rates at the balance sheet date. Exchange adjustments arising on the translation of the opening equity and exchange adjustments arising from the translation of the income statements at the exchange rates at the balance sheet date are recognised directly in equity. Income statements of enterprises that are integrated entities are translated at transaction date rates or approximated average exchange rates; however, items derived from non-monetary balance sheet items are translated at the transaction date rates of the underlying assets or liabilities. Monetary balance sheet items are translated at the exchange rates at the balance sheet date, whereas non-monetary items are translated at transaction date rates. Exchange adjustments arising on the translation are recognised in financial income and expenses in the income statement. 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. 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 geographical segments is based on the Group´s risks and returns and its internal financial reporting system. 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 Group. 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 the consolidated revenue for the year. Other external expenses comprise indirect production costs and expenses for premises, sales 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. 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 Group, including gains and losses on the sale of intangible assets and property, plant and equipment. The item “Income from investments in subsidiaries” in the income statement includes the proportionate share of the profit for the year. Financial income and expenses comprise interest, financial expenses in respect of finance leases, realised and unrealised exchange adjustments, price adjustment of securities, amortisation of mortgage loans as well as extra payments and repayment under the on-account taxation scheme. Tax for the year consists of current tax for the year and deferred tax for the year. The tax attributable to the profit for year is recognised in the income statement, whereas the tax attributable to equity transactions is recognised directly in equity. Any changes in deferred tax due to changes to tax rates are recognised in the income statement. The Company is jointly taxed with the parent company. The tax effect of the joint taxation with the subsidiaries is allocated to Danish enterprises showing profits or losses in proportion to their taxable incomes (full allocation with credit for tax losses). Goodwill is amortised on a straight-line basis over the estimated useful life of 5 years, determined on the basis of Management’s experience with the individual business areas. Costs of development projects comprise salaries, amortisation and other expenses directly or indirectly attributable to the Company’s development activities. 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 comprises only development costs recognised in financial years beginning on or after 1 January 2016. 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. 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. Interest expenses on loans contracted directly for financing the construction of property, plant and equipment are recognised in cost over the construction period. 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: Other fixtures and fittings, tools and equipment 3-10 years The fixed assets’ residual values are determined at nil. 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. The recoverable amount of the asset is calculated as the higher of net selling price and value in use. Where a recoverable amount cannot be determined for the individual asset, the assets are assessed in the smallest group of assets for which a reliable recoverable amount can be determined based on a total assessment. Goodwill, head office buildings and other assets for which a separate value in use cannot be determined as the asset does not on an individual basis generate future cash flows are reviewed for impairment together with the group of assets to which they are attributable. Investments in subsidiaries are recognised and measured under the equity method. The item “Investments in subsidiaries” in the balance sheet include the proportionate ownership share of the net asset value of the enterprises calculated on the basis of the fair values of identifiable net assets at the time of acquisition with deduction or addition of unrealised intercompany profits or losses and with addition of the remaining value of any increases in value and goodwill calculated at the time of acquisition of the enterprises. The total net revaluation of investments in subsidiaries is transferred upon distribution of profit to “Reserve for net revaluation under the equity method“ under equity. The reserve is reduced by dividend distributed to the Parent Company and adjusted for other equity movements in the subsidiaries. Subsidiaries with a negative net asset value are recognised at DKK 0. Any legal or constructive obligation of the Parent Company to cover the negative balance of the enterprise is recognised in provisions. Fixed asset investments, which consist of listed bonds and shares, are measured at their fair values at the balance sheet date. Fair value is determined on the basis of the latest quoted market price. Investments which are not traded in an active market are measured at the lower of cost and recoverable amount. Other fixed asset investments consist of deposit 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, subscriptions and interest. Dividend distribution proposed by Management for the year is disclosed as a separate Dividend item. Deferred tax is recognised in respect of all temporary differences between the carrying amount and the tax base of assets and liabilities. However, deferred tax is not recognised in respect of temporary differences concerning goodwill not deductible for tax purposes and other items - apart from business acquisitions - where temporary differences have arisen at the time of acquisition without affecting the profit for the year or the taxable income. 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. In cases where the computation of the tax base may be made according to alternative tax rules, deferred tax is measured 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. Deferred tax assets and liabilities are offset within the same legal tax entity. Current tax receivables and liabilities are recognised in the balance sheet at the amount calculated on the basis of the expected taxable income for the year adjusted for tax on taxable incomes for prior years. Tax receivables and liabilities are offset if there is a legally enforceable right of set-off and an intention to settle on a net basis or simultaneously. 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. The cash flow statement shows the Group’s cash flows for the year broken down by operating, investing and financing activities, changes for the year in cash and cash equivalents as well as the Group’s cash and cash equivalents at the beginning and end of the year. Cash flows from operating activities are calculated as the net profit/loss for the year adjusted for changes in working capital and non-cash operating items such as depreciation, amortisation and impairment losses, and provisions. Working capital comprises current assets less short-term debt excluding items included in cash and cash equivalents. Cash flows from investing activities comprise cash flows from acquisitions and disposals of intangible assets, property, plant and equipment as well as fixed asset investments. Cash flows from financing activities comprise cash flows from the raising and repayment of long-term debt as well as payments to and from shareholders. Cash and cash equivalents comprise . The cash flow statement cannot be immediately derived from the published financial records. Return on assets Profit/loss of ordinary primary operations 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