xbrli:pureiso4217:DKK198797122022-01-012022-12-31198797122022-01-012022-12-311198797122022-01-012022-12-311198797122022-01-012022-12-311198797122022-01-012022-12-312198797122022-01-012022-12-313198797122022-01-012022-12-314198797122022-01-012022-12-315198797122022-01-012022-12-31198797122021-01-012021-12-31198797122022-01-012022-12-31fsa:RetainedEarningsMember198797122022-01-012022-12-31fsa:ProposedDividendRecognisedInEquityMember198797122022-12-31198797122021-12-31198797122022-01-01198797122021-01-01198797122022-01-01fsa:ContributedCapitalMember198797122022-01-01fsa:RetainedEarningsMember198797122022-01-01fsa:ProposedDividendRecognisedInEquityMember198797122022-12-31fsa:ContributedCapitalMember198797122022-12-31fsa:RetainedEarningsMember198797122022-12-31fsa:ProposedDividendRecognisedInEquityMember198797122022-01-012022-12-311198797122021-01-012021-12-311198797122022-01-012022-12-31fsa:OtherShorttermPayablesMemberGrundlag for konklusionKonklusion2024-01-172024-01-17Regnskabsklasse C, stor virksomhed339635562021-01-012021-12-31Kolding60004Egtved AlléDeloitte Statsautoriseret RevisionspartnerselskabKoldingLunderskov6640Revisionspåtegning2022-12-312022-01-01 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 01.01.2022 - 31.12.2022. This annual report is a new version for the financial year 01.01.2022 - 31.12.2022 and it replaces the previously published annual report dated 23.03.2023, which is no longer valid. The reason for the new version is a dialogue with Erhvervsstyrelsen, that led to a new impairment test of receivables from group companies causing a recognition of a write-down on the receivables. See note 1, 3, 8 and Management commentary.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 31.12.2022 and of the results of its operations and cash flows for the financial year 01.01.2022 - 31.12.2022.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 new version of financial statements of moveero A/S for the financial year 01.01.2022 - 31.12.2022, 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 31.12.2022 and of the results of its operations and cash flows for the financial year 01.01.2022 - 31.12.2022 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.This annual report is a new version for the financial year 01.01.2022 - 31.12.2022 and it replaces the previously published annual report dated 23.03.2023, which is no longer valid. We draw attention to note 3, which states that there is uncertainty relating to recognition and measurement of receivables from two foreign group companies. The impairment test of these receivables caused a write-down of DKK 113.3 million in 2022. See also note 1 and 8. 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: 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 Entity’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 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. 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. 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 under the Danish Financial Statements Act. 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 of the Danish Financial Statements Act. We did not identify any material misstatement of the management commentary.KoldingPer Schøttmne28663State Authorised Public AccountantFinancial highlights2022 DKK'0002021 DKK'0002020 DKK'0002019 DKK'0002018 DKK'000Key figuresRevenue828,691729,297534,733578,946588,021Gross profit/loss99,526122,40685,05489,91594,806Operating profit/loss39,04359,45530,89845,97641,136Net financials(110,579)11,451(6,775)4,703199Profit/loss for the year(78,744)55,26318,80439,51332,372Total assets283,820419,353372,045283,950245,015Investments in property, plant and equipment6,4269,9269,7486,3354,373Equity87,634196,378170,874152,071112,558Cash flows from (used in) operating activities(8,056)76,70938,75937,25033,739Cash flows from (used in) investing activities(6,376)(9,044)(9,748)(6,335)(5,797)Cash flows from (used in) financing activities(28,801)(77,716)34,598(62,716)(1,000)Average number of employees341352333345346RatiosGross margin (%)12.0116.7815.9115.5316.12EBIT margin (%)4.718.155.787.947.00Net margin (%)(9.50)7.583.526.825.51Return on equity (%)(55.45)30.1011.6529.8631.93Equity ratio (%)30.8846.8345.9353.5645.94Financial 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 finances2022 was a year of great uncertainty and many challenges in all markets. Despite this, the company delivered net revenue of DKK 828.7 million (against DKK 729.3 million in 2021), and operating proﬁt for the year amounted to DKK 39.0 million (against DKK 59.5 million in 2021). Loss after tax amounted to DKK 78.7 million (against a profit of DKK 55.2 million in 2021). The result for 2022 is affected by impairment loss on financial assets of DKK 113.3 million, which is elaborated below. The outbreak and spread of COVID-19 has not impacted the company's ﬁnancial position and development.Profit/loss for the year in relation to expected developmentsThe expectations for the annual proﬁt after tax were at DKK 65-70 million. Proﬁts for the 2022 ﬁnancial year did not meet expectations, and the realized proﬁts are not considered satisfactory. The primary reason is the impairment loss elaborated below, but the financial result has also been impacted by the circumstances derived from the war between Russia and Ukraine. This led to significant fluctuations in steel prices mainly in the first half of 2022, and at the same time increased energy prices, mainly coming from uncertainty in gas delivery from Russia, which led to growing inflation. Uncertainty relating to recognition and measurementThe company has in previous years granted loans of DKK 149.5 million to two foreign group companies. The impairment test of these receivables caused a write-down of DKK 113.3 million in 2022. As a consequence the receivables are 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 companies. It is uncertain if the recognized amount of DKK 36.2 million will be settled in full or if the group companies 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 balances in question. As a result, there is an uncertainty associated with the valuation of the receivables 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. Unusual circumstances affecting recognition and measurementThe result for the year is affected by the above mentioned impairment loss on financial assets of DKK 113.3 million which is recognized under financiel expenses in the income statement. See note 1, 3 and 8.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. The strategic focus for 2023 is to ensure proﬁtable growth and improve the company's productivity. It is management's expectation that proﬁt for the year will be DKK 43-48 million in 2023. Knowledge resourcesThe company continuously addresses the need to be able to attract, develop and retain employees with a relevant level of competence. During 2022 we saw an improvement of the people development and retention ratio.Environmental performanceIn 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, the company contracted with an external energy consultant, who analyzed the energy consumption and presented proposals for improvements. Due to the previous mentioned uncertainty in the world, these initiatives have been accelerated during the year. 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. 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 2022 there have been no reports of corruption-like situations. 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. 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 2022, employees represent 17 diﬀerent nationalities, and where the proportion of the underrepresented gender was 12 % in production. The average seniority in moveero A/S is 10,2 years.Statutory report on the underrepresented genderThe company's senior management group consists of 7 people. The company's policy for the senior management group is that the underrepresented gender must be represented by at least 2 persons. When recruiting, the aim is to identify at least qualiﬁed candidate of each gender. At the end of this ﬁnancial year, the company's senior management group consists of 3 men and 4 women, which means that this target has been met. The 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 2023 40 % of the board members elected by the general meeting must be of the underrepresented gender, corresponding to 2 people. At the end of 2022, 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. moveero A/S strives to have a working environment with generally high level of diversity at all levels in the organization, and therefore has a target that the proportion of the underrepresented gender totals at least 10% of the workforce. At the end of this ﬁnancial year, the distribution is 84% men and 16% women. Viewed in isolation, the distribution in production is 88% men and 12% women. Thus, the target ﬁgures have been met, but we strive to continue 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.Statutory report on data ethics policymoveero 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. The restrictions resulting from the outbreak and spread of COVID-19 have not had, and are not expected to have, a signiﬁcant impact on the company's ﬁnancial position and development.828690854729297410729164715606891319995261391224060918906159589434651577423570566953904255759455050458407012559682113348306018151261108188-7153680570906544720682215643130-7874362755263414-787436270000011971671812923391074013973011140304568415430344030456841543034285841961454583144746427493895622299371521114536963243388504992990269441749791654211142315920990611741325122687841441221892464578553068457463022844630228456352893243514984377810068283819552419353102517000005170000035934173114677800030000000876341731963778005170000011467780030000000196377800517000003593417301258691304190712586913041907157176422304572215717642230457222831028424998400106630780115626834257797218103089900361513106635020149389503431792090461968876731949266882199333952838195524193531020-30000000-3000000077358358072949-48214787-4708294-32004-13657-146839962806048458407012559683-1815126-1108188-93568082451621-805626376709164-6426336-9043678500000-6376336-9043678-1443259967665486-2829146-5044517137501772489076-30000000-29760000Increase in lease commitments 2777410-28801228-77716095-43233827-100506093068457463022841 Unusual circumstancesThe result for the year is affected by the impairment loss on financial assets of DKK 113.3 million elaborated in note 3. It is recognized under financiel expenses in the income statement. 2 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. 3 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 impairment test of these receivables caused a write-down of DKK 113.3 million in 2022. As a consequence the receivables are 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 companies. It is uncertain if the recognized amount of DKK 36.2 million will be settled in full or if the group companies 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 balances in question. As a result, there is an uncertainty associated with the valuation of the receivables 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. 4 Revenue2022 DKK2021 DKKDenmark32,942,13034,936,000Europe in general 702,810,986596,147,410World in general 92,937,73898,214,000Total revenue by geographical market828,690,854729,297,4105 Fees to the auditor appointed by the Annual General Meeting2022 DKK2021 DKKStatutory audit services260,000245,000Tax services18,5000Other services13,5000292,000245,0006 Staff costs2022 DKK2021 DKKWages and salaries149,304,464151,980,191Pension costs12,751,97012,913,968Other social security costs23,329,95621,654,643185,386,390186,548,802Average number of full-time employees3413523413527 Other financial income2022 DKK2021 DKKFinancial income from group enterprises4,577,4694,828,371Other interest income6,2010Exchange rate adjustments4007,731,3114,584,07012,559,6828 Impairment losses on financial assetsSee note 1 and 3.9 Other financial expenses2022 DKK2021 DKKOther interest expenses1,665,5651,108,188Exchange rate adjustments149,56101,815,1261,108,188 2022 DKK2021 DKKOther interest expenses1,665,5651,108,188Exchange rate adjustments149,56101,815,1261,108,18810 Tax on profit/loss for the year2022 DKK2021 DKKCurrent tax8,990,03815,131,066Change in deferred tax(1,783,216)498,409Adjustment concerning previous years013,6557,206,82215,643,13011 Proposed distribution of profit and loss2022 DKK2021 DKKRetained earnings(78,743,627)55,263,414 (78,743,627)55,263,414-787436275526341412 Intangible assetsAcquired intangible assets DKKCost beginning of year2,559,031Cost end of year2,559,031Amortisation and impairment losses beginning of year(2,559,031)Amortisation and impairment losses end of year(2,559,031)Carrying amount end of year013 Property, plant and equipmentLand and buildings DKKPlant and machinery DKKCost beginning of year43,938,846330,933,021Additions06,426,336Disposals0(909,732)Cost end of year43,938,846336,449,625Depreciation and impairment losses beginning of year(42,125,923)(291,202,910)Depreciation for the year(615,756)(7,011,214)Reversal regarding disposals0871,900Depreciation and impairment losses end of year(42,741,679)(297,342,224)Carrying amount end of year1,197,16739,107,40114 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. 15 Deferred tax2022 DKK2021 DKKProperty, plant and equipment1,188,3951,268,756Inventories2,813,0652,223,026Provisions(592,783)(449,875)Other taxable temporary differences(2,149,986)0Deferred tax1,258,6913,041,907 Changes during the year2022 DKK2021 DKKBeginning of year3,041,9072,543,498Recognised in the income statement(1,783,216)498,409End of year1,258,6913,041,907 15 Deferred tax16 Other payables2022 DKK2021 DKKWages and salaries, personal income taxes, social security costs, etc payable15,717,64223,045,72215,717,64223,045,72217 Other payables2022 DKK2021 DKKVAT and duties4,133,7770Wages and salaries, personal income taxes, social security costs, etc payable17,834,72023,564,503Holiday pay obligation9,607,26110,095,727Other costs payable3,444,3915,290,11335,020,14938,950,34318 Changes in working capital2022 DKK2021 DKKIncrease/decrease in inventories(11,274,409)(35,162,817)Increase/decrease in receivables(14,762,817)(31,698,394)Increase/decrease in trade payables etc(22,177,561)62,152,917(48,214,787)(4,708,294)19 Unrecognised rental and lease commitments2022 DKK2021 DKKLiabilities under rental or lease agreements until maturity in total960,51414,550,76420 Contingent liabilities2021 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. 21 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. 22 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).The accounting policies applied to these financial statements are consistent with those applied last year.falseRecognition 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.Intellectual property rights etcIntellectual property rights etc comprise acquired intellectual property rights and prepayments for intangible assets.Intellectual property rights acquired are measured at cost less accumulated amortisation. Patents are amortised on a straight-line basis over their remaining duration, and licences are amortised over the term of the agreement. Intellectual property rights etc are written down to the lower of recoverable amount and carrying amount.Property, plant and equipmentLand and buildings, plant and machinery, and other fixtures and fittings, tools and equipment are measured at cost less accumulated depreciation and impairment losses. Land is not depreciated. 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 of property, plant and equipment used in the development 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 less 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.2024-01-17Julian Rudolph Pötzl