iso4217:DKKxbrli:pure198797122023-01-012023-12-31198797122023-01-012023-12-311198797122023-01-012023-12-311198797122023-01-012023-12-311198797122023-01-012023-12-312198797122023-01-012023-12-313198797122023-01-012023-12-314198797122023-01-012023-12-315198797122023-12-31198797122022-12-31198797122021-12-31198797122020-12-31198797122019-12-31198797122023-01-012023-12-31198797122022-01-012022-12-31198797122023-01-012023-12-31fsa:RetainedEarningsMember198797122023-01-012023-12-31fsa:ProposedDividendRecognisedInEquityMember198797122023-01-01198797122022-01-01198797122023-01-01fsa:ContributedCapitalMember198797122023-01-01fsa:RevaluationReserveMember198797122023-01-01fsa:RetainedEarningsMember198797122023-01-01fsa:ProposedDividendRecognisedInEquityMember198797122023-12-31fsa:ContributedCapitalMember198797122023-12-31fsa:RevaluationReserveMember198797122023-12-31fsa:RetainedEarningsMember198797122023-12-31fsa:ProposedDividendRecognisedInEquityMember198797122023-01-012023-12-31fsa:RevaluationReserveMember198797122023-01-012023-12-311198797122022-01-012022-12-311198797122023-01-012023-12-31fsa:OtherShorttermPayablesMemberGrundlag for konklusionKonklusion2024-03-132024-03-13Regnskabsklasse C, stor virksomhed339635562022-01-012022-12-31Kolding60004Egtved AlléDeloitte Statsautoriseret RevisionspartnerselskabKoldingLunderskov6640Revisionspåtegning2023-12-312023-01-01<br /><br />31Nagbølvejmoveero A/S19879712339635562300 København SWeidekampsgade 6Deloitte Statsautoriseret RevisionspartnerselskabÅrsrapportThe Board of Directors and the Executive Board have today considered and approved the annual report of moveero A/S for the financial year 01.01.2023 - 31.12.2023.The annual report is presented in accordance with the Danish Financial Statements Act.In our opinion, the financial statements give a true and fair view of the Entity’s financial position at 31.12.2023 and of the results of its operations and cash flows for the financial year 01.01.2023 - 31.12.2023.We believe that the management commentary contains a fair review of the affairs and conditions referred to therein.We recommend the annual report for adoption at the Annual General Meeting.NagbølTorben BrændgaardJulian Rudolph PötzlGorm Olin OlsenLone Alsløw-JensenThomas Blom KristensenTorben BrændgaardChairmanTo the shareholders of moveero A/SWe have audited the financial statements of moveero A/S for the financial year 01.01.2023 - 31.12.2023, which comprise the income statement, balance sheet, statement of changes in equity, cash flow statement and notes, including a
summary of significant 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 Entity’s financial position at 31.12.2023 and of the results of its operations and cash flows for the financial year 01.01.2023 - 31.12.2023 in accordance
with the Danish Financial Statements Act.We conducted our audit in accordance with International Standards on Auditing (ISAs) and 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 this auditor’s
report. We are independent of the Entity 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.We draw attention to note 2, which states that there is uncertainty relating to recognition and measurement of a receivable from a foreign group company. Our opinion has not been modified with respect to this matter.Management is responsible for the preparation of financial statements that give a true and fair view in accordance
with the Danish Financial Statements Act, and for such internal control as Management determines
is necessary to enable the preparation of financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the financial statements, Management is responsible for assessing the Entity’s ability to continue
as a going concern, for disclosing, as applicable, matters related to going concern, and for using the going
concern basis of accounting in preparing the financial statements unless Management either intends to liquidate
the Entity 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:<br />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.
<br />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 Entity’s internal control.
<br />Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by Management.
<br />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 Entity’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
Entity to cease to continue as a going concern.
<br />Evaluate the overall presentation, structure and content of the financial statements, including the disclosures
in the notes, and whether the financial statements represent the underlying transactions and
events in a manner that gives a true and fair view.<br />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 commentary.
Our opinion on the financial statements does not cover the management commentary, 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
commentary and, in doing so, consider whether the management commentary is materially inconsistent with
the financial statements or our knowledge obtained in the audit or otherwise appears to be materially
misstated.
Moreover, it is our responsibility to consider whether the management commentary provides the information
required by relevant law and regulations.<br />Based on the work we have performed, we conclude that the management commentary is in accordance with
the financial statements and has been prepared in accordance with the requirements in the relevant law and regulations. We did not identify any material misstatement of the management commentary.KoldingPer Schøttmne28663State Authorised Public AccountantFinancial highlights2023
DKK'0002022
DKK'0002021
DKK'0002020
DKK'0002019
DKK'000Key figuresRevenue811,883828,691729,297534,733578,946Gross profit/loss159,10399,526122,27085,05489,915Operating profit/loss89,38439,04359,45530,89845,976Net financials1,083(110,579)11,451(6,775)4,703Profit/loss for the year70,097(78,744)55,26318,80439,513Total assets262,050283,820419,353366,512272,607Investments in property,
plant and equipment3,1806,4269,9269,7486,335Equity120,33087,634196,378170,874152,071Cash flows from (used in) operating activities80,059(8,056)76,70938,75937,250Cash flows from (used in) investing activities(3,180)(6,376)(9,044)(9,748)(6,335)Cash flows from (used in) financing activities(57,109)(28,801)(77,716)34,598(62,716)Average number of employees358341352333345RatiosGross margin (%)19.6012.0116.7715.9115.53EBIT margin (%)11.014.718.155.787.94Net margin (%)8.63(9.50)7.583.526.82Return on equity (%)67.41(55.45)30.1011.6529.86Equity ratio (%)45.9230.8846.8346.6255.78Financial highlights are defined and calculated in accordance with the current version of "Recommendations & Ratios" issued by the CFA Society Denmark.Gross margin (%)
:Gross profit/loss * 100
RevenueEBIT margin (%):Operating profit/loss
* 100
RevenueNet margin (%)
:Profit/loss for the year * 100
RevenueReturn on equity (%)
:Profit/loss for the year * 100
Average equityEquity ratio (%)
:Equity * 100
Total assetsPrimary activitiesAs in previous years, the company's main activity is the manufacture and sale of wheel rims, mainly for agricultural and construction machinery.
Development in activities and financesThe company has in 2023 delivered a net revenue of DKK 811.9 million (against DKK 828.7 million in 2022), and profit for the year after tax amounted to DKK 70.1 million (against a loss of DKK 78.7 million in 2022).Profit/loss for the year in relation to expected developmentsThe expectations for the annual profit after tax were at DKK 43-48 million. Profits for the 2023 financial year exceeded the expectations, and the realized profits are considered very satisfactory. The company has achieved a great result through a determined effort and the company has performed very satisfactorily under tough conditions.Uncertainty relating to recognition and measurementThe company has in previous years granted loans of DKK 150 million to foreign group companies. The loans are now collected at one group company and the amount is recognized under the accounting item "Receivables from group enterprises". In 2022, an impairment test of the receivable caused a write-down of DKK 113.3 million. The recognized amount was in 2022 DKK 36.3 million and in 2023, the amount after repayments is DKK 28.9 millions.
It is uncertain if the recognized amount of DKK 28.9 millions will be settled in full or if the group company will be able to settle a larger amount over a longer span of time. However, repayments of more than the DKK 28.9 millions are not expected to be possible in the short term. At the same time, no guarantee has been received regarding the balance in question. As a result, there is an uncertainty associated with the valuation of the receivable and any future adjustments of the write-down may be significant.
The matter does not affect the assessment of the company's ability to continue as a going concern.
OutlookThe company does not have significant risks regarding individual customers or partners, beyond what is usual for the industry, as well as common customer/supplier relationships. The global geopolitical situation is not deemed to increase the company's risk.
For 2024, the key markets for the company are expected to stabilize back to a lower and more normal level. The strategic focus for 2024 is to seek new market opportunities and ensure profitable growth. The key focus will be on continuous improvement to ensure the company’s position in meeting the future challenges. It is management's expectation that profit for the year will be DKK 40-45 million in 2024.
Knowledge resourcesThe company continuously addresses the need to be able to attract, develop and retain employees with a relevant level of competence. During 2023 we saw an improvement of the people development and retention ratio.Statutory report on corporate social responsibilityCorporate social responsibility is an integral part of the business strategy in the moveero group. The company wants to act responsibly and in a manner that creates value in relation to customers, employees, business partners and the outside world.
Business model and risk assessment
The company’s business model consists of manufacturing and selling rims mainly for agricultural and construction machinery. In general, moveero A/S is run according to good and sound principles, which also includes a requirement for the company to contribute to the surrounding community, develop employees and not least ensure good job satisfaction and thus retain employees at the company.
moveero A/S is aware that running a business involves certain risks related to negatively impacting human rights, social and employee conditions, the environment and climate, as well as corruption/bribery. This is addressed by adherence to the moveero code of conduct, which contains guidelines that ensure that the moveero group's vision and values are complied with. The purpose of the code of conduct it to ensure that the company is run ethically, with social responsibility and sustainably in all aspects.
The environment
In its environmental policy, moveero A/S has set a goal striving to protect the environment and contribute positively to the local communities where business is conducted by acting with integrity and in accordance with legislation and good corporate governance at all times.
moveero A/S is ISO 14001-certified, has documented environmental procedures and an energy policy that aims for long-term sustainability through optimization of the company's energy consumption. The company continuously makes the necessary investments to reduce energy consumption.
During the financial year, no cases of environmental damage occured due to the company's business. In order to reduce electricity consumption all electrical lightning in the production was changed to LED lamps.
Furthermore moveero A/S initiated the process of changing a large share of the gas consumption with central heating, which is expected to be finalized in 2024.
Anti-corruption and bribery effort
In line with the company's ethical standards policy, all employees are expected to maintain a high standard of integrity, honesty, and a fair approach to day-to-day business. Corruption is not tolerated in any form, and bribes or similar payments may not be made to or received from others. In practice, this is ensured by the company operating with two-factor approval on all payments.
The implemented whistleblower scheme can be used if corruption and bribery suspected. In 2023 there have been no reports of corruption-like situations, and this is also the expectation and the goal for 2024.
Social conditions, staff conditions and respect for human rights
moveero A/S is ISO 45001-certified. moveero A/S has internal guidelines and objectives in place, ensuring that work is done in a safe and healthy working environment. These are described in the company's health and safety policy, as well as employment policy.
The most important components of an effective health and safety system are a visible and committed management and the active involvement of employees. These further include components such as training of new employees, risk assessments of all tasks, as well as registration and remediation of health and safety risks. The company's safety committee convenes monthly to review well-being, sickness, absenteeism, occupational safety, etc.
The company's employment policy is to ensure that employees are treated fairly and with respect, and that their abilities, differences and results are recognized. The principles of equality and justice must be visibly observed, and there must be no discrimination (gender, age, belief) of employees, potential employees or internally among employees.
The company has implemented a whistleblower scheme that is used to report violations or potential violations of,
for example, human rights, sexual harassment, etc.
No violations have been noted in 2023, and this also the expectation and the goal for 2024.
moveero A/S considers the ongoing work with employee conditions as a contributing factor to the company being perceived as an attractive workplace with a focus on inclusion and diversity. A workplace where, in 2023, employees represent 13 different nationalities, and where the proportion of the underrepresented gender was 12 % in production. We strive to increase the proportion of the underrepresented gender, especially in production. The use of systematic workplace assessment is included to, among other things, increase automation in production and, e.g., reduce the need for physical strength and contribute to a better working environment. It is a goal for 2024, that the proportion of the underrepresented gender in production increases.
The average seniority in moveero A/S is 10,8 years.
Statutory report on the underrepresented gender20232022202120202019Supreme management bodyTotal number of members34556Underrepresented gender (%)33.0025.0020.0020.0017.00Target figures (%)40.0040.0040.0040.0040.00Year of expected achievement of target figures20242023202320212021The company works within a technical industry, within which more men than women are typically educated, which is reflected in the composition of the employees. To increase diversity, moveero A/S has a target that, by 2024 40 % of the board members elected by the general meeting must be of the underrepresented gender, corresponding to 2 people. At the end of 2023, 1 woman has been elected to the board by the general meeting. The target has thus not been realized, as there have been no suitable candidates for the board.
When recruiting for management position, which could be subject for becoming a Director of the Board, the aim is to identify at least qualified candidate of each gender.
20232022202120202019Other management levelsTotal number of members87955Underrepresented gender (%)50.0043.0044.0020.0020.00Target figures (%)40.0040.0025.0040.0040.00Year of expected achievement of target figures20222022202120212020The company's senior management group consists of 8 people. The company's policy for the senior management group was for 2023 that the underrepresented gender must be represented by at 40%. At the end of this financial year, the company's senior management group consists of 4 men and 4 women, which means that this target has been met and an equal gender distribution has been achieved.When recruiting, the aim is to identify at least qualified candidate of each gender. During the financial year of 2023, three of the eight members of the management group have been hired, and in that process, the company had a great focus on finding qualified candidates of each gender. The share of underrepresented gender in other management levels has been increasing the last five years and has in the years 2021-2023 has an equal gender distribution (40-60 %).345560.330.250.20.20.170.40.40.40.40.420242023202320212021The company works within a technical industry, within which more men than women are typically educated, which is reflected in the composition of the employees. To increase diversity, moveero A/S has a target that, by 2024 40 % of the board members elected by the general meeting must be of the underrepresented gender, corresponding to 2 people. At the end of 2023, 1 woman has been elected to the board by the general meeting. The target has thus not been realized, as there have been no suitable candidates for the board.
When recruiting for management position, which could be subject for becoming a Director of the Board, the aim is to identify at least qualified candidate of each gender.
879550.50.430.440.20.20.40.40.250.40.420222022202120212020The company's senior management group consists of 8 people. The company's policy for the senior management group was for 2023 that the underrepresented gender must be represented by at 40%. At the end of this financial year, the company's senior management group consists of 4 men and 4 women, which means that this target has been met and an equal gender distribution has been achieved.Statutory report on data ethics policymoveero A/S is committed to ensuring that personal data about employees, customers, suppliers, and business associates is processed with respect for individual privacy and stored securely. Personal data is only stored for as long as it is relevant or the company's business or the individual's own interests. Appropriate document management procedures for storing or destroying documents have been developed and implemented.Events after the balance sheet dateNo significant circumstances have occurred after the balance sheet date that impact assessment of the annual report. 8118826298286908506527792927291647151591033379952613543726288906159653465605157741989384149390425574529964458407001133483063446887181512690467226-7153680520370683720682270096543-78743627340965433600000030000000119716733962546391074016396254640304568639625464030456822050142285841964176643144746427220326652299371585849238963243384605331090269441319667384211142311379817117413258939986514412218922838725306845730684574630228419808782824351498426205037428381955251700000517000002259978001003071635934173360000000120330496876341735170000003593417308763417351700000225997801003071636000000724074112586917240741125869116122308157176421612230815717642447173928310284577748011066307801957392577972236166489900363355288635020149118356829179209046134479137194926688262050374283819552-60000000-600000002897407728974077-637429700-6374297849613777358351858633-48214787-10-3200499738909-146839945299644584070-3446887-1815126-20762919-935680880059067-8056263-3180039-6426336050000-3180039-637633676879028-14432599-10466917-2829146101446853750177-60000000-30000000Increase in lease commitments 3213472277741-57108760-2880122819770268-432338272283872530684571 Events after the balance sheet dateThere are no post-balance sheet events which have a significant impact on net income and the company's expected economic development. 2 Uncertainty relating to recognition and measurement
The company has in previous years granted loans of DKK 149.5 million to two foreign group companies. The loans are now collected at one group company. The impairment test of the receivable caused a write-down of DKK 113.3 million in 2022. As a consequence the receivable is recognized at DKK 36.3 million as part of the accounting item Receivables from group enterprises.
This is the best estimate of the net realizable value of the receivables based on the underlying contract basis and financial performance and outlook for the group company.
It is uncertain if the recognized amount of DKK 36.2 million will be settled in full or if the group company will be able to settle a larger amount over a longer span of time. However, repayments of more than the DKK 36.2 million is not expected to be possible in short term. At the same time, no guarantee has been received regarding the balance in question. As a result, there is an uncertainty associated with the valuation of the receivable and any future adjustments
of the write-down may be significant.
The matter does not affect the assessment of the company's ability to continue as a going concern.
3 Revenue2023
DKK2022
DKKDenmark43,933,96032,942,130Europe in general 694,657,268702,810,986World in general 73,291,40192,937,734Total revenue by geographical market811,882,629828,690,8504 Fees to the auditor appointed by the Annual General Meeting2023
DKK2022
DKKStatutory audit services270,000260,000Tax services18,00018,500Other services279,21413,500567,214292,0005 Staff costs2023
DKK2022
DKKWages and salaries158,368,976149,304,464Pension costs15,120,79912,751,970Other social security costs24,227,54123,329,956197,717,316185,386,390Average number of full-time employees3583413583416 Other financial income2023
DKK2022
DKKFinancial income from group enterprises4,361,6394,577,469Other interest income137,7706,201Exchange rate adjustments30,5554004,529,9644,584,0707 Other financial expenses2023
DKK2022
DKKOther interest expenses3,446,8871,665,565Exchange rate adjustments0149,5613,446,8871,815,126<br />2023
DKK2022
DKKOther interest expenses3,446,8871,665,565Exchange rate adjustments0149,5613,446,8871,815,1268 Tax on profit/loss for the year2023
DKK2022
DKKCurrent tax20,762,9198,990,038Change in deferred tax(392,236)(1,783,216)20,370,6837,206,8229 Proposed distribution of profit and loss2023
DKK2022
DKKOrdinary dividend for the financial year36,000,0000Retained earnings34,096,543(78,743,627) 70,096,543(78,743,627)34096543-7874362710 Property, plant and equipmentLand and buildings
DKKPlant and machinery
DKKCost beginning of year43,938,846336,449,625Additions03,180,039Disposals0(922,768)Cost end of year43,938,846338,706,896Revaluations for the year28,974,0770Revaluations end of year28,974,0770Depreciation and impairment losses beginning of year(42,741,679)(297,342,224)Depreciation for the year(171,244)(8,050,992)Reversal regarding disposals0648,866Depreciation and impairment losses end of year(42,912,923)(304,744,350)Carrying amount end of year30,000,00033,962,546Carrying amount if asset had not been revalued1,025,92333,962,54611 Share capitalNumberPar value
DKKNominal
value
DKKShare capital517,00010051,700,000517,00051,700,000There has been no changes in the share capital over the last 5 years. 12 Deferred tax2023
DKK2022
DKKProperty, plant and equipment7,551,3651,188,395Inventories2,446,3472,813,065Provisions(606,985)(592,783)Other taxable temporary differences(2,149,986)(2,149,986)Deferred tax7,240,7411,258,691
Changes during the year2023
DKK2022
DKKBeginning of year1,258,6913,041,907Recognised in the income statement(392,247)(1,783,216)Recognised directly in equity6,374,2970End of year7,240,7411,258,691<br />12 Deferred tax13 Other payables2023
DKK2022
DKKWages and salaries, personal income taxes, social security costs, etc payable16,122,30815,717,64216,122,30815,717,64214 Other payables2023
DKK2022
DKKVAT and duties3,219,0604,133,777Wages and salaries, personal income taxes, social security costs, etc payable14,494,85417,834,720Holiday pay obligation10,335,2709,607,261Other costs payable5,503,7023,444,39133,552,88635,020,14915 Changes in working capital2023
DKK2022
DKKIncrease/decrease in inventories10,475,100(11,274,409)Increase/decrease in receivables40,842,363(14,762,817)Increase/decrease in trade payables etc(49,458,830)(22,177,561)1,858,633(48,214,787)16 Unrecognised rental and lease commitments2023
DKK2022
DKKLiabilities under rental or lease agreements until maturity in total3,907,572960,51417 Contingent liabilities2022
DKKRecourse and non-recourse guarantee commitments25,153,500Other contingent liabilities63,000,000Contingent liabilities 88,153,500The company is jointly taxed with other Danish group enterprises. The tax effect of the joint taxation is allocated to enterprises in proportion to their taxable incomes. 18 Related parties with controlling interestThe company's largest and smallest parent company, which prepares consolidated financial statements into which the company is incorporated as a subsidiary, is AURELIUS Equity Opportunities SE & Co. KGaA, Grünwald, Germany.
Other holding companies between the company and the ultimate parent:
AURELIUS Development Twenty-Three GmbH, Ludwig-Ganghofer-Str. 6, 82031 Grünwald Germany. 19 Non-arm’s length related party transactionsThe company have made intercompany transactions effected on market terms and conditions. This annual report has been presented in accordance with the provisions of the Danish Financial Statements Act
governing reporting class C enterprises (large).Changes in accounting policiesAccounting policies with regard to recognition and measurement of land and buildings have been changed. Previously land and buildings were measured at cost less accumulated depreciation and impairment losses. Now, land and buildings are measured at cost plus revaluation, less accumulated depreciation and impairment losses. The measure is in accordance with the provisions of the Danish Financial Statements Act § 41.
The change in accounting policies has led to an increase in land and buildings of DKK 28,974,077 and equity DKK 22,599,780 respectively. The balance sheet total increases by DKK 28,974,077 at 31.12.2023.
Apart from the areas mentioned above, the annual report has been presented applying the accounting policies
consistent with last year.Recognition and measurementAssets are recognised in the balance sheet when it is probable as a result of a prior event that future economic
benefits will flow to the Entity, and the value of the asset can be measured reliably.
Liabilities are recognised in the balance sheet when the Entity has a legal or constructive obligation as a
result of a prior event, and it is probable that future economic benefits will flow out of the Entity, and the
value of the liability can be measured reliably.
On initial recognition, assets and liabilities are measured at cost. Measurement subsequent to initial
recognition is effected as described below for each financial statement item.
Anticipated risks and losses that arise before the time of presentation of the annual report and that confirm
or invalidate affairs and conditions existing at the balance sheet date are considered at recognition and
measurement.
Income is recognised in the income statement when earned, whereas costs are recognised by the amounts
attributable to this financial year.
Segment information is presented in respect of the company's revenue distributed on geographical segments based on the company's assessment of risks. Foreign currency translationOn initial recognition, foreign currency transactions are translated applying the exchange rate at the
transaction date. Receivables, payables and other monetary items denominated in foreign currencies that
have not been settled at the balance sheet date are translated using the exchange rate at the balance
sheet date. Exchange differences that arise between the rate at the transaction date and the rate in effect
at the payment date, or the rate at the balance sheet date, are recognised in the income statement as
financial income or financial expenses. Derivative financial instrumentsOn initial recognition in the balance sheet, derivative financial instruments are measured at cost and
subsequently at fair value, which has been calculated as the discounted value of expected future net cash flows by using an approximate risk-free interest rate adjusted for any factors that a potential market participant would attribute value to when acquiring the instrument. Derivative financial instruments are recognised in other receivables or other payables.
Changes in the fair value of derivative financial instruments classified as and complying with the
requirements for hedging future transactions are recognised directly in the reserve for fair value adjustments of hedging instruments in equity. When the hedged transactions
are realised, the accumulated changes are recognised as part of cost of the relevant financial statement
items.
RevenueRevenue from the sale of manufactured goods is recognised in the income statement when delivery is made and risk has passed to the buyer. Revenue is recognised net of VAT, duties and
sales discounts and is measured at fair value of the consideration fixed.Production costsProduction costs comprise expenses incurred to earn revenue for the financial
year. Production costs comprise direct and indirect costs for raw materials and consumables, wages and
salaries, and amortisation, depreciation and impairment losses relating to intangible
assets and property, plant and equipment included in the production process. In addition, the item includes
ordinary write-down of inventories.Distribution costsDistribution costs comprise costs incurred for sale and distribution of the Entity’s products, including wages
and salaries for sales staff, advertising costs, travelling and entertainment expenses, etc, and amortisation, depreciation and impairment losses relating to intangible assets and property, plant and
equipment involved in the distribution process.Administrative expensesAdministrative expenses comprise expenses incurred for the Entity’s administrative functions, including wages
and salaries for administrative staff and Management, stationery and office supplies, and amortisation,
depreciation and impairment losses relating to intangible assets and property, plant and equipment used for
administration of the Entity.Other financial incomeOther financial income comprises dividends etc received on other investments, interest income, including
interest income on receivables from group enterprises, net capital or exchange gains on securities, payables
and transactions in foreign currencies, amortisation of financial assets, and tax relief under the Danish
Tax Prepayment Scheme etc.Impairment losses on financial assetsImpairment losses on financial assets comprise impairment losses on financial assets which are not measured
at fair value on a current basis.Other financial expensesOther financial expenses comprise interest expenses, including interest expenses on payables to group
enterprises, net capital or exchange losses on securities, payables and transactions in foreign currencies,
amortisation of financial liabilities, and tax surcharge under the Danish Tax Prepayment Scheme etc.Tax on profit/loss for the yearTax for the year, which consists of current tax for the year and changes in deferred tax, is recognised in the
income statement by the portion attributable to the profit for the year and recognised directly in equity by
the portion attributable to entries directly in equity.Property, plant and equipmentLand and buildings are measured at cost plus revaluation, and for buildings, less accumulated depreciation
and impairment losses. Revaluation is calculated on the basis of regular, independent fair value measurements.
Plant and machinery, and other fixtures and fittings, tools and equipment are
measured at cost less
accumulated depreciation and impairment losses.
Cost comprises the acquisition price, costs directly attributable to the acquisition and preparation costs of
the
asset until the time when it is ready to be put into operation. For self-constructed assets, cost comprises
direct
and #indirect costs of materials, components, subsuppliers and labour costs.
Indirect production costs in the form of indirectly attributable staff costs and amortisation of intangible
assets
and depreciation on property, plant and equipment used in the manufacturing process are recognised
in cost
based on time spent on each asset.
Interest expenses on loans for the financing of the manufacture of property, plant and equipment are
included
in cost if they relate to the manufacturing period. All other finance costs are recognised in the income
statement.
The basis of depreciation is cost #plus revaluation and minus estimated residual value after the end of useful life. Straight-line
depreciation is made on the basis of the following estimated useful lives of the assets:Useful life
Buildings30Plant and machinery6 to 20IT equipment 3Passenger cars4Other motor vehicles5 to 8Tools 5
Estimated useful lives and residual values are reassessed annually.
Items of property, plant and equipment are written down to the lower of recoverable amount and carrying
amount.InventoriesInventories are measured at the lower of cost using the FIFO method and net realisable value.
Cost consists of purchase price plus delivery costs. Cost of manufactured goods and work in progress consists
of costs of raw materials, consumables, direct labour costs and indirect production costs.
Indirect production costs comprise indirect materials and labour costs, costs of maintenance of, depreciation
of machinery, factory buildings and equipment used in the manufacturing process, and costs of factory administration and management. Finance costs are not included in cost.
The net realisable value of inventories is calculated as the estimated selling price less completion costs and
costs incurred to execute sale.ReceivablesReceivables are measured at amortised cost, usually equalling nominal value less writedowns for bad and
doubtful debts.CashCash comprises cash in hand and bank deposits.DividendDividend is recognised as a liability at the time of adoption at the general meeting. Proposed dividend for
the financial year is disclosed as a separate item in equity. Deferred taxDeferred tax is recognised on all temporary differences between the carrying amount and the tax-based
value of assets and liabilities, for which the tax-based value is calculated based on the planned use of each asset.
Operating leasesLease payments on operating leases are recognised on a straight-line basis in the income statement over
the term of the lease.Other financial liabilitiesOther financial liabilities are measured at amortised cost, which usually corresponds to nominal value.Tax receivable or payableCurrent tax receivable or payable is recognised in the balance sheet, stated as tax computed on this year's
taxable income, adjusted for prepaid tax.Cash flow statementThe cash flow statement shows cash flows from operating, investing and financing activities, and cash
and cash equivalents at the beginning and the end of the financial year.
Cash flows from operating activities are presented using the indirect method and calculated as the operating
profit/loss adjusted for non-cash operating items, working capital changes, and financial income, financial expenses and income tax paid.
Cash flows from investing activities comprise payments in connection with activities and fixed asset investments, and purchase, development, improvement and sale,
etc of intangible assets and property, plant and equipment.
Cash flows from financing activities comprise the raising of loans, repayments of interest-bearing debt, including lease liabilities, purchase of treasury shares and payment of dividend.
Cash and cash equivalents comprise cash and short-term securities with an insignificant price risk.The cash flow statement shows cash flows from operating, investing and financing activities, and cash
and cash equivalents at the beginning and the end of the financial year.
Cash flows from operating activities are presented using the indirect method and calculated as the operating
profit/loss adjusted for non-cash operating items, working capital changes, and financial income, financial expenses and income tax paid.
Cash flows from investing activities comprise payments in connection with activities and fixed asset investments, and purchase, development, improvement and sale,
etc of intangible assets and property, plant and equipment.
Cash flows from financing activities comprise the raising of loans, repayments of interest-bearing debt, including lease liabilities, purchase of treasury shares and payment of dividend.
Cash and cash equivalents comprise cash and short-term securities with an insignificant price risk.2024-03-13Julian Rudolph Pötzl