truefalseCarsten Knudsen Årsrapport25578198KPMGFrederiks Plads 42DK-8000 Aarhus C2022-01-012022-12-312021-01-012021-12-312023-03-272023-03-2745505316M&J Denmark A/SVejlevej 58700HorsensDKDenmarkKPMG25578198Katrine Gybelmne45848statsaut. revisorFrederiks Plads138210AarhusDKDenmark4570707760KPMG25578198Dennis V. Hansenmne49092statsaut. revisorFrederiks Plads138210AarhusDKDenmark45707077602023-03-27Regnskabsklasse C, stor virksomhedfalsefalseRevisionspåtegningThe Board of Directors and the Executive Board have today discussed and approved the annual report of M&J Denmark A/S for the financial year 1 January – 31 December 2022.The annual report has been prepared in accordance with the Danish Financial Statements Act.We recommend that the annual report be approved at the annual general meeting.Horsens,Uffe HansenJohn Møller TerkelsenCarsten Nygaard KnudsenChairmanTero Juhana TelarantaPasi Ilkka Juhani KootaJohn NaldalKim FrandsenTo the shareholder of M&J Denmark A/SWe conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the "Auditor's responsibilities for the audit of the financial statements" section of our report. We are independent of the Company in accordance with the International Ethics Standards Board for Accountants' International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.Aarhus,1506670001019420001041220009640000096875000Operating profit4933400038512000519630004340800051967000-6265000-2504000-279000-18000-200004186600028634000405800003379500041148000359157000242482000188977000168950000140483000151899000110033000813990005201900055524000015400060900021800021000014.1216.2925.228.0641.3830.929.9260.8362.8582.6342.2945.3843.0730.7939.521271089891864885170003859630003378500002840210001506670001019420004362700033280000577060003015000049334000385120000850004933400038597000750000004500006310000250400050569000360930008703000745900041866000286340008481000762500000590006600085400007691000529000924000708000890000146520008513000158890001032700034113000341130005854200052131000138920000596120003496600021484000963600087860001835220008988200065357000561910003700000011659000741700012221000020870001097740008215800073190001831100030061500019035100035915700024248200060010006001000661500059480001192830009808400020000000015189900011003300016450003700005812000486800074570005238000110900004674000459800045820001568800092560003564000380100035085000280760009488300059079000118300001678000711600003163500025321000184113000117955000199801000127211000359157000242482000600100059480009808400000667000211990002000000000006001000661500011928300020000000Change in comparative figuresCompleted development projects Patents and other intangible assets Development costs comprise costs, including wages and salaries, and amortisation, which directly or indirectly can be related to the company’s development activities and which fulfil the criteria for recognition. Capitalised development costs are measured at the lower of cost less accumulated amortisation or recoverable amount. Capitalised development costs are amortised on a straight-line basis over the estimated useful life after completion of the development work. The amortisation period is normally 5 years. Intangible fixed assets are generally written down to the lower of recoverable value and carrying amount. Profit or loss from sale of intangible fixed assets is calculated at the difference between the sales price and the carrying amount at the time of the sale. Profit and loss are recognised in the Income Statement under other operating income or other operating expenses. Patents and other intangible assets are measured at cost less accumulated amortisation and impairment losses. Patents are amortised on a straight-line basis over the remaining life of the patent.66700019270002000000002119900026707000127108Control Related party transactions Ahlstrom Capital B.V. Heliconweg 52 Leeuwarden 8914AT The Netherlands M&J Denmark Properties ApS is part of the consolidated financial statements of M&J Recycling Group ApS, Vejlevej 5, 8700 Horsens, Denmark and Ahlstrom Capital B.V., the Netherlands, which are the smallest and largest groups, respectively, in which the Company is included as a subsidiary. The consolidated financial statements of M&J Recycling Group ApS and Ahlstrom Capital B.V. can be obtained by contacting the companies at the above addresses. Remuneration to the Parent Company's Executive Board and Board of Directors is disclosed in note 13. Receivables and payables to Group entities are disclosed in the balance sheet, and financial income and expense is disclosed in notes 3 and 4 respectively. The Parent Company has chosen not to disclose transactions with fully-owned subsidiaries in accordance with section 98c(3) of the Danish Financial Statements Act.In our opinion, the financial statements give a true and fair view of the Company's assets, liabilities and financial position at 31 December 2022 and of the results of the Company's operations for the financial year 1 January – 31 December 2022. Further, in our opinion, the Management's review gives a fair review of the development in the Company's activities and financial matters, of the results for the year and of the Company's financial position.We have audited the financial statements of M&J Denmark A/S for the financial year 1 January – 31 December 2022 comprising income statement, balance sheet, statement of changes in equity and notes, including accounting policies. The financial statements are prepared in accordance with the Danish Financial Statements Act. In our opinion, the financial statements give a true and fair view of the Company's assets, liabilities and financial position at 31 December 2022 and of the results of the Company's operations for the financial year 1 January – 31 December 2022 in accordance with the Danish Financial Statements Act.Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the Danish Financial Statements Act and for such internal control that Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, Management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting in preparing the financial statements unless Management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.Our objectives are to obtain reasonable assurance as to 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 in Denmark will always detect a material misstatement when it exists. Misstatements may 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 made 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 company financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control. obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management. conclude on the appropriateness of Management's use of the going concern basis of accounting in preparing the financial statements and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern. evaluate the overall presentation, structure and contents of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that gives a true and fair view. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.Management is responsible for the Management's review. Our opinion on the financial statements does not cover the 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 the Management's review and, in doing so, consider whether the 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 the Management's review provides the information required under the Danish Financial Statements Act. Based on the work we have performed, we conclude that the Management's review is in accordance with the financial statements and has been prepared in accordance with the requirements of the Danish Financial Statements Act. We did not identify any material misstatement of the Management's review. The financial ratios have been calculated as follows: Rate of return Profit on ordinary activities x 100 Average assets Return on equity Profit/loss from ordinary activities after tax x 100 Average equity Solvency ratio Equity ex. non-controlling interests at year-end x 100 Total equity and liabilities at year-endThe Company's principal activity is to develop, produce and market mobile and stationary waste shredders for industrial use.The Company's income statement for 2022 shows a profit of DKK 41,866 thousand as against a profit of DKK 28,634 thousand in 2021. Equity in the Company's balance sheet at 31 December 2022 stood at DKK 151,899 thosand as against DKK 110,033 thousand at 31 December 2021. Business performance for 2022 was stronger than expected, due to faster Covid 19 rebound, and a strong demand from customers. Hence order intake was at a high level. Like many other industries, the Company experienced challenging supply chain conditions due to the war in Ukraine, and COVID-19. The Company continued to invest in new products and new technologies, and among others launched the next generation Pre-shredder, P-250, as well as eDrive technology, which will reduce energy consumption by up to 50%. A new visual brand identity was successfully launch with a distinct legacy and a clear purpose. Activities will continue to build the brand and create awareness globally focusing on the purpose to help solve the world’s waste challenge.The recycling sector is expected to continue to grow, as there will be an increasing need to manage and recycle waste on a global level. The Company expects to deliver growth above market levels in all key markets. For 2023 the management expects growth in net sales to the interval of DKK 530-560 million and profit before tax to the interval of DKK 50-55 million.During several years the company has achieved competences within handling and shredding of waste as well as manufacturing equipment for this purpose. The company will continue the development within this area. The Company has the following branches: - Filial Sweden - Thailand - UK Branch - Korea Liaison office - Przedstawicielskwo w PolsceThe ambition of the Company is to demonstrate social responsibility in line with its basic values within the areas of environment and climate considerations, social and employee conditions, respect for human rights and anti-corruption and bribery. Furthermore, the Company is determined to ensure a safe and healthy working environment and has consideration for environmental and climate conditions throughout its processes. Our Management is key part of all significant decisions on all above-mentioned areas, which is demonstrated in internal as well as external initiatives. The Company has signed a commitment to the UN to implement the 10 Global Compact Principles in the strategy, culture and day-to-day operations of the Company and to report progress to the UN and the general public annually. These principles will be implemented in internal policies during the coming years. The Company has issued a code of conduct, which is extended to partners and suppliers to the widest possible extent. This also includes the implementation of a whistleblowing service accessible for employees and third parties. During 2023, an ESG policy will be established, which defines the framework and scope for sustainability. Carbon footprint is an important focal point, and carbon emission per machine was reduced by 16 % compared to 2021. Further reductions are expected going forward. A thorough risk assessment of our business model has been conducted and it did not find any material risks within the areas of environment and climate, social and employee conditions and respect for human rights. There is also third-party policy (https://www.ahlstrom.com/globalassets/sustainability/sustainability policies-and-commitments/anti-bribery-policy-2022.pdf) in place to ensure due diligence with regards to i.e. sanctions, fraud and bribery and a compliance sign-off by the third party. The policy outlines the requirements for engaging with new partners and stipulates a zero tolerance to fraud, bribery and facilitation payments. During 2022, several new partners were onboarded, and a compliance risk management tool was implemented. In 2023 implementation will be finalised and the monitoring activities will be strengthened for existing partners. The Company has focus on social responsibility and it is an integrated part of the business model, as the Company operates within Greentech, where it contributes heavily to waste recycling. We have conducted a thorough risk assessment of our business model and did not find any material risks within the areas of environment and climate, social and employee conditions and respect for human rights.The Company acknowledge that diversity within Management and employees is a strength and as a part of this, equality in gender contributes to business development. Achieving a target of 20% for the under-represented gender in the Board of Directors has been set out as the ambition before 2027. Currently there are 5 members of the Board of Directors and no members of the under-represented gender. We are also considering diversity in other management levels than the Board of Directors. The long-term aim is that Company Management is to reflect the employee base of the Company. The share of underrepresented gender in Company Management was unchanged 19% during the year. To foster a balanced share of female executives, the company will continue to rely on the considerations that employees, including executives, are always hired, and promoted based on professional and personal competencies. Data ethics is an ethical dimension of the relationship between technology and the citizen as to fundamental rights, legal certainty and fundamental social values that technological development gives rise to. The Company has not implemented a policy for data ethics due to the limited to no usage of data towards citizens. There have been no significant events after the end of the financial year.The annual report of M&J Denmark A/S for 2022 has been prepared in accordance with the provisions applying to reporting class C large entities under the Danish Financial Statements Act.The accounting policies used in the preparation of the financial statements are consistent with those of last year.Pursuant to section 112(1) of the Danish Financial Statements Act, no consolidated financial statements have been prepared. The financial statements of M&J Denmark A/S and group entities are included in the consolidated financial statements of M&J Recycling Group ApS.Pursuant to section 86(4) of the Danish Financial Statements Act, no cash flow statement has been prepared. The Company's cash flows are included in the cash flow statement in the consolidated financial statements of M&J Recycling Group ApS.A few restatements have been made of the comparative figures as a result of reclassications.On initial recognition, transactions denominated in foreign currencies are translated at the exchange rates at the transaction date. Foreign exchange differences arising between the exchange rates at the transaction date and the date of payment are recognised in the income statement as financial income or financial expenses. Receivables, payables and other monetary items denominated in foreign currencies are translated at the exchange rates at the balance sheet date. The difference between the exchange rates at the balance sheet date and the date at which the receivable or payable arose or was recognised in the latest financial statements is recognised in the income statement as financial income or financial expenses. Upon recognition of foreign subsidiaries that are independent entities, the income statements are translated into Danish kroner at average exchange rates for the month, and balance sheet items are translated at the exchange rates at the balance sheet date. Foreign exchange differences arising upon translation of foreign subsidiaries' opening equity and results at the exchange rates at the balance sheet date are recognised directly in equity. Foreign exchange adjustments of balances with independent foreign subsidiaries considered part of the total investment in the subsidiary are recognised directly in equity. Similarly, foreign exchange gains and losses on loans and derivative financial instruments taken out for the purpose of hedging investments in foreign subsidiaries are recognised directly in equity. Upon recognition of foreign subsidiaries that are integrated entities, monetary items are translated at the exchange rates at the balance sheet date. Non-monetary items are translated at the exchange rates at the date of acquisition or the date of subsequent revaluations of the asset. Income statement items are translated at the exchange rates at the transaction date, whereas items derived from non-monetary items are translated at historical exchange rates for the non-monetary item.The Company has chosen IFRS 15 as the basis of interpretation for revenue recognition. Revenue from sale of services, spare parts and finished goods is recognised in the income statement if supply and control transfer to purchaser has taken place before the end of the year and if the income can be measured reliably and is expected to be received. Net revenue is recognised exclusive of VAT, duties and less discounts related to the sale. Service sales, which include service and maintenance agreements and extended warranties regarding sold products, are recognised in the income statement over the term of the agreement as the agreed services are provided.Production costs comprise costs, including wages and salaries and write-off, incurred to achieve the net revenue for the year. This includes direct and indirect costs of raw materials and consumables, wages and salaries, rent and leasing and depreciation of production plant.Distribution costs comprise costs incurred to distribute goods sold during the year and to conduct sales campaigns, etc., including costs relating to sales staff, advertising and exhibitions as well as depreciation.Administrative expenses comprise expenses incurred during the year for management and administration of the Group, including expenses for administrative staff, Management, office premises, office expenses and depreciation.Other operating income comprises items secondary to the activities of the entity, including gains on the disposal of intangible assets and property, plant and equipment.Dividends from subsidiary are recognised in the financial year when the dividends are declared.Financial expenses comprise interest expense, financial costs regarding finance leases, gains and losses on securities, payables and transactions denominated in foreign currencies as well as surcharges and refunds under the on-account tax scheme, etc.On payment of joint taxation contributions, current Danish corporation tax is allocated between the jointly taxed entities in proportion to their taxable income. Entities with tax losses receive joint taxation contributions from entities that have used the losses to reduce their own taxable profit. Tax for the year comprises current corporation tax for the year and changes in deferred tax, including changes in tax rates. The tax expense relating to the profit/loss for the year is recognised in the income statement, and the tax expense relating to amounts directly recognised in equity is recognised directly in equity.Plant and machinery and other plant, fixtures and equipment are measured at cost less accumulated depreciation and impairment losses. Cost comprises the purchase price and any costs directly attributable to the acquisition until the date on which the asset is available for use. Indirect production overheads and borrowing costs are not recognised in cost. Where individual components of an of item plant and equipment have different useful lives, they are accounted for as separate items, which are depreciated separately. The basis of depreciation is cost less any projected residual value after the end of the useful life. Depreciation is provided on a straight-line basis over the estimated useful life. The estimated useful lives are as follows: The useful life and residual value are reassessed annually. Changes are treated as accounting estimates, and the effect on depreciation is recognised prospectively. Depreciation is recognised in the income statement as production costs, distribution costs and administrative expenses, respectively. Gains and losses on the disposal of plant and equipment are stated as the difference between the selling price less selling costs and the carrying amount at the date of disposal. Gains and losses are recognised in the income statement as other operating income or other operating costs, respectively.Plant and machinery 5-10 years Other plant and machinery, tool and equipment 4-5 yearsLeased assets and lease commitments are recognised in the balance sheet when the leased asset under a lease entered into regarding a specific identifiable asset is made available to the Company in the lease term, and when the Company in this connection obtains the right to almost all economic benefits from the use of the identified asset and the right to control the use of the identified asset. On initial recognition, lease commitments are measured at the present value of the future lease payments discounted by an incremental borrowing rate. The following lease payments are recognised as part of the lease commitment: Operating equipment 3-5 years Building 5 years The Company has chosen to present leased assets and lease commitments as separate line items in the balance sheet. The Company has generally chosen to apply the practical exemptions in IFRS 16 so that low-value and short-term leases are not recognised in the balance sheet. Instead, related lease payments are recognised on a straight-line basis as other external costs in profit or loss. The Company has also chosen not to recognise service elements in the capitalised value of lease commitments and leased assets. Service elements are therefore recognised as other external costs in profit or loss on an ongoing basis.Equity investments in group entities and participating interests are measured at cost. In case of indication of impairment, an impairment test is conducted. When the cost exceeds the recoverable amount, write-down is made to this lower value. The cost is reduced by dividends received exceeding accumulated earnings after the acquisition date. In case of indication of impairment, an impairment test is conducted. Indication of impairment exists if distributed dividends exceeds profit for the year or if the carrying amount of equity investments exceeds the consolidated carrying amounts of the net assets in the subsidiary. The carrying amount of intangible assets and plant and equipment as well as equity investments in group entities and is subject to an annual test for indications of impairment other than the decrease in value reflected by depreciation or amortisation. Impairment tests are conducted of individual assets or groups of assets when there is an indication that they may be impaired. Write-down is made to the recoverable amount if this is lower than the carrying amount. The recoverable amount is the higher of an asset's net selling price and its value in use. The value in use is determined as the present value of the forecast net cash flows from the use of the asset or the group of assets, including forecast net cash flows from the disposal of the asset or the group of assets after the end of the useful life.Inventories are measured at cost in accordance with thethe weighted average cost method. Where the net realisable value is lower than cost, inventories are written down to this lower value. Goods for resale and raw materials and consumables are measured at cost, comprising purchase price plus delivery costs. Finished goods and work in progress are measured at cost, comprising the cost of raw materials, consumables, direct wages and salaries and indirect production overheads. Indirect production overheads comprise indirect materials and wages and salaries as well as the maintenance of depreciation of production machinery, buildings and equipment as well as factory administration and management. Borrowing costs are not included in cost. The net realisable value of inventories is calculated as the sales amount less costs of completion and costs necessary to make the sale and is determined taking into account marketability, obsolescence and development in expected selling price.Receivables are measured at amortised cost. Write-down is made for bad debt losses where there is an objective indication that a receivable or a portfolio of receivables has been impaired. If there is an objective indication that an individual receivable has been impaired, write-down is made on an individual basis. The Company has chosen IFRS 9 as the basis of interpretation for impairment of financial receivables.Cash and cash equivalents comprise cash.The reserve for development costs comprises capitalised development costs. The reserve cannot be used for dividends, distribution or to cover losses. If the recognised development costs are sold or in other ways excluded from the Company's operations, the reserve will be dissolved and transferred directly to the distributable reserves under equity. If the recognised development costs are written down, the part of the reserve corresponding to the write-down of the developments costs will be reversed. If a write-down of development costs is subsequently reversed, the reserve will be re-established. The reserve is reduced by amortisation of capitalised development costs on an ongoing basis.Current tax payable and receivable is recognised in the balance sheet as tax computed on the taxable income for the year, adjusted for tax on the taxable income of prior years and for tax paid on account. Deferred tax is measured using the balance sheet liability method on all temporary differences between the carrying amount and the tax value of assets and liabilities based on the planned use of the asset or settlement of the liability. However, deferred tax is not recognised on temporary differences relating to goodwill non-deductible for tax purposes and on office premises and other items where the temporary differences arise at the date of acquisition without affecting either profit/loss or taxable income. Deferred tax assets, including the tax value of tax loss carryforwards, are recognised at the expected value of their utilisation within the foreseeable future; either as a set-off against tax on future income or as a set-off against deferred tax liabilities in the same legal tax entity. Any deferred net assets are measured at net realisable value. Deferred tax is measured in accordance with the tax rules and at the tax rates applicable at the balance sheet date when the deferred tax is expected to crystallise as current tax. Changes in deferred tax as a result of changes in tax rates are recognised in the income statement or equity, respectively.Other provisions for liabilities include the expected cost of warranty commitments, loss on work in progress, restructuring etc. and deferred tax. Warranty commitments include liabilities for improvement of work within the warranty period of 1 year. The provision for liabilities is measured and recognised on the basis of experience with warranty work. When it is likely that the total costs will exceed the total income on the contract work in progress, a provision is made for the total loss that is anticipated for the contract. The provision is recognised as a cost under production costs.Financial liabilities are recognised at cost at the date of borrowing, corresponding to the proceeds received less transaction costs paid. In subsequent periods, the financial liabilities are measured at amortised cost using the effective interest method. Accordingly, the difference between cost and the nominal value is recognised in the income statement over the term of the loan together with interest expenses. Other liabilities are measured at net realisable value.Segment information is provided on business segments and geographical markets. The segment information is in line with the Group's accounting policies, risks and internal financial management.Business segments Sale of machinery 318,586 254,730 Sale of OEM parts 169,931 131,233 488,517 385,963 Geographical markets Europe, Middle East, and Africa (EMEA) 271,107 244,973 Other countries (RoW) 217,410 140,990 488,517 385,963Interest income from group entities 45 0 Interest expense to group entities 0 1 Other financial costs and exchange rate adjustments 6,310 2,503 6,310 2,504 Current tax for the year 8,078 7,977 Deferred tax for the year 1,276 -660 Adjustment of tax concerning previous years -651 142 8,703 7,459 DKK'000 Completed development projects Patents Other intangible assets Total Cost at 1 January 2022 8,802 16,170 75 25,047 Additions for the year 3,112 0 0 3,112 Cost at 31 December 2022 11,914 16,170 75 28,159 Amortisation and impairment losses at 1 January 2022 -1,177 -16,170 -9 -17,356 Amortisation for the year -2,256 0 -7 -2,263 Amortisation and impairment losses at 31 December 2022 -3,433 -16,170 -16 -19,619 Carrying amount at 31 December 2022 8,481 0 59 8,540Completed development projects Since 2020, the Company has capitalised costs including IPO for a new prototype. The costs are amortised over the useful life of the assets, which is estimated at five years. DKK'000 Production plant and machinery Other plant machinery tools and equipment Leases and right-of-use assets Total Cost at 1 January 2022 18,220 2,595 13,703 34,518 Additions for the year 0 0 10,288 10,288 Disposals for the year -88 -32 -1,539 -1,659 Cost at 31 December 2022 18,132 2,563 22,452 43,147 Depreciation and impairment losses at 1 January 2022 -17,296 -1,705 -5,190 -24,191 Depreciation for the year -395 -182 -3,439 -4,016 Depreciation and impairment losses for the year on assets sold 88 32 829 949 Depreciation and impairment losses at 31 December 2022 -17,603 -1,855 -7,800 -27,258 Carrying amount at 31 December 2022 529 708 14,652 15,889 Right-of-use assets include an addtion for the year relating to the property rented from the subsidiar,y M&J Denmark Properties ApS, where the expected termination period has been extended by four years due to change in Management´s expected lease period. There have been no changes to the plan of relocation within the foreseeable future.DKK'000 Equity investments in group entities Cost at 1 January 2022 34,113 Additions for the year 0 Cost at 31 December 2022 34,113 Carrying amount at 31 December 2022 34,113 Name/legal form Registered office Voting rights and ownership interest Equity Profit/loss for the year Subsidiaries: DKK'000 DKK'000 M&J Germany GmbH Germany 100% 333 130 M&J USA Inc. USA 100% -37 -953 M&J Technology Environmental Equipment (Shanghai) Co., Ltd China 100% 1,476 277 M&J Denmark Properties ApS Denmark 100% 24,396 1,539 26,168 993Contributed capital consists of: 6,001 shares of nom. DKK 1,000 each. All shares rank equally.The Company provides one-year warranties on certain products and is obliged to repair or replace products which are not satisfactory. Other provisions for liabilities consist of DKK 5,812 thousand (2021: DKK 4,868 thousand) as accrued for expected warranty claims based on experience from a historic level for repairs and returned goods.Liabilities other than provisions can be specified as follows:DKK'000 31/12 2022 31/12 2021 Lease obligations: 0-1 years 11,090 3,801 1-5 years 3,564 4,674 14,654 8,475 Other payables, including taxes payable: 1-5 years 4,598 4,582 4,598 4,582Wages and salaries 74,672 72,919 Pensions 6,303 6,384 Other social security costs 616 308 81,591 79,611 Staff costs of the Company include remuneration of the Company's Executive Board and Board of Directors of DKK 0 thousand (2021: DKK 8,774 thousand). In 2022, the Executive Board was employed by the Parent Company. Fee paid by M&J Denmark A/S for management services in 2022 amounts to DKK 5,528 thousand, in which remuneration of the Executive board is included.DKK'000 2022 2021 KPMG P/S Statutory audit 178 165 Tax assistance 6 7 Non-audit services 25 20 209 192As of the balance sheet date, the Company does not have any operating lease contracts not recognised in the balance sheet. Bank guarantees provided to customers and suppliers amount to DKK 41,093 thousand (2021: DKK 40,365 thousand). The Group's Danish entities are jointly and severally liable for tax on the Group's jointly taxed income and for certain withholding taxes such as dividend tax and royalty tax. Any subsequent corrections of the taxable income subject to joint taxation or withholding taxes on dividends, etc., may entail an increase in the entities' liability. The Group as a whole is not liable to any other parties.455053162022-01-012022-12-31455053162022-01-012022-12-311455053162022-01-012022-12-312455053162021-01-012021-12-31455053162021-12-31455053162022-01-012022-12-31g:PreviousYearMember455053162022-01-012022-12-31g:TwoYearsAgoMember455053162022-01-012022-12-31g:ThreeYearsAgoMember455053162022-01-012022-12-31g:FourYearsAgoMember455053162022-12-31455053162022-12-31g:PreviousYearMember455053162022-12-31g:TwoYearsAgoMember455053162022-12-31g:ThreeYearsAgoMember455053162022-12-31g:FourYearsAgoMember455053162022-01-012022-12-312455053162022-01-012022-12-312g:PreviousYearMember455053162022-01-012022-12-312g:TwoYearsAgoMember455053162022-01-012022-12-312g:ThreeYearsAgoMember455053162022-01-012022-12-312g:FourYearsAgoMember455053162022-01-012022-12-311455053162022-01-012022-12-312455053162022-01-012022-12-311455053162022-01-012022-12-312455053162022-01-012022-12-313455053162022-01-012022-12-3110455053162022-01-012022-12-3111455053162022-01-012022-12-31c:ProposedDividendRecognisedInEquityMember455053162021-01-012021-12-31c:ProposedDividendRecognisedInEquityMember455053162022-01-012022-12-31c:ContributedCapitalMember455053162022-01-01c:ContributedCapitalMember455053162022-12-31c:ContributedCapitalMember455053162022-01-012022-12-31c:ReserveForDevelopmentExpenditureMember455053162022-01-01c:ReserveForDevelopmentExpenditureMember455053162022-12-31c:ReserveForDevelopmentExpenditureMember455053162022-01-012022-12-31c:RetainedEarningsMember455053162022-01-01c:RetainedEarningsMember455053162022-12-31c:RetainedEarningsMember455053162022-01-012022-12-31c:ProposedDividendRecognisedInEquityMember455053162022-01-01c:ProposedDividendRecognisedInEquityMember455053162022-12-31c:ProposedDividendRecognisedInEquityMember455053162022-01-012022-12-31c:RetainedEarningsMember455053162021-01-012021-12-31c:RetainedEarningsMember455053162022-01-012022-12-31c:TransferredFromToReserveFundMember455053162021-01-012021-12-31c:TransferredFromToReserveFundMemberxbrli:pureiso4217:DKKiso4217:DKK