Årsrapport 30700228 EY Godkendt Revisionspartnerselskab Værkmestergade 25 Postboks 330, 8100 Aarhus C 2024-01-01 2024-12-31 2023-01-01 2023-12-31 30537939 Dantherm Group A/S Marienlystvej 65 7800 Skive Skive kommune 96143700 96143820 www.danthermgroup.com EY Godkendt Revisionspartnerselskab 30700228 Værkmestergade 25 8100 Aarhus C 2025-07-14 Thomas Gjøl-Trønning Regnskabsklasse B Revisionspåtegning Grundlag for konklusion Konklusion true true 2025-07-14 2025-07-14 CaseWare Working Papers Skive Oliver Patrick Zimmermann Torben Duer Chairman Oliver Patrick Zimmermann Aarhus Steen Skorstengaard Lone Nørgaard Eskildsen State Authorised Public Accountant mne19709 State Authorised Public Accountant mne32085 17101000 4179000 6158000 1542000 7226000 1177000 4564000 3902000 -847000 -2442000 193702000 89717000 16724000 16383000 34168000 37696000 175411000 65962000 -905000 -2472000 176316000 68434000 100000000 204481000 2860000 89566000 10202000 14233000 63254000 -239846000 29816000 8651000 1229000 1229000 11111000 19197000 42156000 29077000 664091000 737458000 140985000 213289000 805076000 950747000 847232000 979824000 32797000 10934000 9801000 8896000 0 9018000 2531000 2635000 45129000 31483000 401000 1558000 45530000 33041000 892762000 1012865000 1000000 1000000 150729000 162955000 31923000 21721000 81468000 15345000 100000000 204481000 365120000 405502000 0 3813000 1000 0 4257000 8133000 519157000 594142000 4227000 1275000 527642000 607363000 527642000 607363000 892762000 1012865000 1000000 207796000 7488000 107959000 26468000 89566000 14233000 -239846000 204481000 0 -5179000 0 0 0 7646000 0 0 -147232000 147232000 0 26468000 1000000 162955000 21721000 15345000 204481000 2860000 10202000 63254000 100000000 0 3631000 -2869000 0 0 -11455000 0 0 0 204481000 1000000 150729000 31923000 81468000 100000000 5559000 1326000 377000 152000 211000 33000 11000 31000 6158000 1542000 5 2 15738000 14700000 986000 1683000 34074000 35659000 0 19000 94000 2018000 0 -6316000 -1637000 3844000 732000 0 10760000 1229000 19197000 0 0 20305000 28391000 0 -28391000 39151000 1229000 11111000 2109000 0 0 7226000 0 0 9335000 0 0 29816000 1229000 11111000 574503000 213289000 1925000 0 63066000 0 0 72304000 513362000 140985000 162955000 0 -3631000 0 49426000 52286000 -11455000 150729000 0 664091000 140985000 Dantherm Denmark A/S A/S Skive, Danmark 100 Dantherm Group AS AS Norway 100 Dantherm Group Limited Ltd UK 100 Dantherm Group AB AB Sweden 100 Dantherm Group S.p.A S.p.A Italy 100 Dantherm Group SAS SAS France 100 Dantherm Group AG AG Switzerland 100 Dantherm Group Desiccant AB AB Sweden 100 Dantherm Group Sp.z.o.o Sp.z.o.o. Poland 100 Dantherm Group Sp SAU Sp SAU Spain 100 Dantherm LLC Llc Russia 100 Dantherm Group Co. Ltd Ltd China 100 Dantherm Group Holding Inc. Inc USA 100 Dantherm Group LLC Llc USA 100 1000 A 1000000 1000000 Today, the Board of Directors and the Executive Board have discussed and approved the annual report of Dantherm Group A/S for the financial year 1 January - 31 December 2024. The annual report is prepared in accordance with the Danish Financial Statements Act. In our opinion, the financial statements give a true and fair view of the financial position of the Company at 31 December 2024 and of the results of the Company's operations for the financial year 1 January - 31 December 2024. Further, in our opinion, the Management's review gives a fair review of the matters discussed in the Management's review. We recommend that the annual report be approved at the annual general meeting. To the shareholder of Dantherm Group A/S We have audited the financial statements of Dantherm Group A/S for the financial year 1 January - 31 December 2024, which comprise 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 financial position of the Company at 31 December 2024 and of the results of the Company's operations for the financial year 1 January - 31 December 2024 in accordance with the Danish Financial Statements Act. We conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the "Auditor's responsibilities for the audit of the financial statements" section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Independence 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. Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the Danish Financial Statements Act and for such internal control as Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, Management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting in preparing the financial statements unless Management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Our objectives are to obtain reasonable assurance 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 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 the financial statements. As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management. Conclude on the appropriateness of Management's use of the going concern basis of accounting in preparing the financial statements and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern. Evaluate the overall presentation, structure and contents of the financial statements, including the note disclosures, and whether the financial statements represent the underlying transactions and events in a manner that gives a true and fair view. Plan and perform the audit of the financial statements to obtain sufficient appropriate audit evidence regarding the consolidated financial information of the entities or business units as a basis for forming an opinion on the financial statements. We are responsible for the direction, supervision and review of the audit work performed. We remain solely responsible for our audit opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Management is responsible for 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 Statement Act. We did not identify any material misstatement of the Management's review. Dantherm is a leading provider of climate control products and solutions. The group companies have more than 60 years of experience in designing and manufacturing high-quality and energy-efficient solutions for heating, cooling, dehumidification and ventilation, and offers a wide product range of both mobile and installed products with many different applications covering a large number of market sectors. The Dantherm Group is headquartered in Skive, Denmark and has subsidiaries in Norway, Sweden, the United Kingdom, Germany, France, Switzerland, Italy, Spain, Poland, Russia and China. Dantherm Group A/S is owned 100% by Dantherm Group Holding II A/S, which was established in 2021, when Dantherm was sold from the Swedish private equity fund Procuritas to the German private equity fund Deutsche Beteiligungs AG (DBAG). Dantherm Group Holding II A/S is owned 100% by Dantherm Group Holding I ApS. A combined group result is presented at the level of Dantherm Group Holding I ApS. There has been no new acquisitions done in 2023 and 2024 within Dantherm Group A/S level. The net profit for the year was DKK 176,3 m in 2024 against a net profit of DKK 68,4m in 2023. The profit has been negatively impacted by non recurring costs and integration costs of DKK 18,8 m and positively impacted by sale of subsidiary of DKK 141,4m. In 2023, the profit was negatively impacted by non-recurring costs and integration costs of DKK 31,9 m. Management considers the result to be satisfactory, as the result for the year has been improved compared to 2023. Financial structure The debt structure is subject to general conditions as well as financial covenants that is tested quarterly. The Group failed to meet the financial covenant by end of 2024 and also failed the covenant test for Q1 2025. Due to the breach the lender can withdraw the loan facilities. Management is in the pro-cess of renegotiating the overall financing structure and the related covenants for the group. Currently the group has received a proposal, and it is management expectations that a final agreement with be signed soon, but after the date for the approval of the financial statements for 2024. Based on the current budgets and cash flow forecasts, Management expects to have sufficient liquidity to fund the operations under the proposed financing structure and also expects to comply with the proposed covenants for 2025. As a consequence of this, the regular non-current liability has been presented as “short-term part of long-term liabilities other than provisions” as there was no updated agreement with the lenders as per end of December 31, 2024. There has not been any subsequent events, which has significant impact on the financial status as of December 31, 2024. The annual report of Dantherm Group A/S for 2024 has been prepared in accordance with the provisions in the Danish Financial Statements Act applying to reporting class B entities and elective choice of certain provisions applying to reporting class C entities. In accordance with section 112(1) of the Danish Financial Statements Act, the Company has not prepared consolidated financial statements. The financial statements of Dentherm Group A/S are included in the consolidated financial statements of Dantherm Group Holding I ApS, Skive, Denmark, (reg. no. 42608335). The accounting policies used in the preparation of the financial statements are consistent with those of last year. Reporting currency The financial statements are presented in Danish kroner (DKK'000). Recently acquired entities are recognised in the consolidated financial statements from the date of acquisition. Entities sold or otherwise disposed of are recognised up to the date of disposal. Comparative figures are not restated to reflect newly acquired entities. Discontinued operations are presented separately, see below. The date of acquisition is the date when the group actually obtains control of the acquiree. The acquisition method is applied to the acquisition of new entities of which the group obtains control. The acquirees’ identifiable assets, liabilities and contingent liabilities are measured at fair value at the date of acquisition. Identifiable intangible assets are recognised if they are separable or arise from a contractual right. Deferred tax related to the revaluations is recognised. Positive differences (goodwill) between, on the one hand, the consideration for the acquiree, the value of non-controlling interests in the acquired entity and the fair value of any previously acquired equity investments and, on the other hand, the fair value of the assets, liabilities and contingent liabilities acquired are recognised as goodwill under “Intangible assets”. Goodwill is amortised on a straight-line basis in the income statement based on an individual assessment of the economic life of the asset. Negative differences (negative goodwill) are recognised in the income statement at the date of acquisition. Upon acquisition, goodwill is allocated to the cash-generating units, which subsequently form the basis for impairment testing. Goodwill and fair value adjustments in connection with the acquisition of a foreign entity with a functional currency different from the presentation currency used in the consolidated financial statements are accounted for as assets and liabilities belonging to the foreign entity and are, on initial recognition, translated into the foreign entity's functional currency using the exchange rate at the transaction date. The consideration paid for an entity consists of the fair value of the agreed consideration in the form of assets transferred, liabilities assumed and equity instruments issued. If part of the consideration is contingent on future events or compliance with agreed terms, such part of the consideration is recognised at fair value at the date of acquisition. Subsequent adjustments of contingent considerations are recognised in the income statement. Expenses incurred to acquire entities are recognised in the income statement in the year in which they are incurred. Where, at the date of acquisition, the identification or measurement of acquired assets, liabilities or contingent liabilities or the determination of the consideration is associated with uncertainty, initial recognition will take place on the basis of provisional amounts. If it turns out subsequently that the identification or measurement of the consideration transferred, acquired assets, liabilities or contingent liabilities was incorrect on initial recognition, the statement will be adjusted retrospectively, including goodwill, until 12 months after the acquisition, and comparative figures will be restated. Hereafter, any adjustments are recognised as misstatements. Gains or losses from disposal of group entities which result in loss of control are calculated as the difference between, on the one hand, the fair value of the selling price less selling expenses and, on the other hand, the carrying amount of net assets. Intra-group business combinations The book value method is applied to business combinations such as acquisition and disposal of investments, mergers, demergers, contributions of assets and share conversions, etc. in which entities controlled by the parent company are involved, provided that the combination is considered completed at the time of acquisition without any restatement of comparative figures. Differences between the agreed consideration and the carrying amount of the acquiree are recognised directly in equity. On initial recognition, transactions denominated in foreign currencies are translated at the exchange rate 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 and payables and other monetary items denominated in foreign currencies are translated at the exchange rate 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 most recent financial statements is recognised in the income statement as financial income or financial expenses. Foreign group entities Foreign group entities and associates are considered separate entities. Items in such entities' income statements are translated at an average exchange rate for the month, and balance sheet items are translated at closing rates. Foreign exchange differences arising on translation of the opening equity of foreign group entities to closing rates and on translation of the income statements from average exchange rates to closing rates are taken directly to equity. The items revenue, other operating income and external expenses have been aggregated into one item in the income statement called gross profit in accordance with section 32 of the Danish Financial Statements Act. Other operating income comprise items secondary to the principal activities of the Company, including rental income from the temporary lease out of production facilities, compensation, government grants, refund of wages and salaries, gains on the disposal of intangible assets and property, plant and equipment, etc. Compensation and grants are recognised when there is reasonable assurance that the entity will comply with the conditions attaching to them and the grants will be received. Other external expenses include the year's expenses relating to the Company's core activities, including expenses relating to distribution, sale, advertising, administration, premises, bad debts, payments under operating leases, etc. Staff costs comprise wages and salaries, including holiday allowance and pensions, and other social security costs, etc., for the Company's employees. The item comprises amortisation of intangible assets. The basis of amortisation/depreciation, which is calculated as cost less any residual value, is amortised/depreciated on a straight line basis over the expected useful life. The expected useful lives of the assets are as follows: Completed development projects 3-5 years Goodwill 20 years Other operating expenses comprise items of a secondary nature relative to the Company's core activities, including losses on the sale of fixed assets. The income statement includes the proportional share of the underlying companies' profit or loss after elimination of internal profit/loss and after tax. In group entities, the full elimination of internal profit and loss is carried out without regard to ownership shares. Financial income and expenses are recognised in the income statements at the amounts that concern the financial year. Net financials include interest income and expenses as well as allowances and surcharges under the advance-payment-of-tax scheme, etc. Tax for the year includes current tax on the year's expected taxable income and the year's deferred tax adjustments. The portion of the tax for the year that relates to the profit/loss for the year is recognised in the income statement, whereas the portion that relates to transactions taken to equity is recognised in equity. The Company and its Danish group entities are jointly taxed. The total Danish income tax charge is allocated between profit/loss-making Danish entities in proportion to their taxable income (full absorption). Jointly taxed entities entitled to a tax refund are reimbursed by the management company based on the rates applicable to interest allowances, and jointly taxed entities which have paid too little tax pay a surcharge according to the rates applicable to interest surcharges to the management company. Development costs comprise expenses, salaries and amortisation directly or indirectly attributable to development activities. Development projects that are clearly defined and identifiable, where the technical feasibility, sufficient resources and a potential future market or development opportunities areidentifiable and where the Company intends to produce, market or use the project, are recognised as intangible assets provided that the cost can be measured reliably and that there is sufficient assurance that future earnings can cover production costs, selling costs and administrative expenses and development costs. Other development costs are recognised in the income statement as incurred. Development costs that are recognised in the balance sheet are measured at cost less accumulated amortisation and impairment losses. On completion of a development project, development costs are amortised on a straight-line basis over the estimated useful life. Patents and licences are measured at cost less accumulated amortisation and impairment losses. Patents are amortised on a straight line basis over the remaining term of the patent, and licences are amortised over the term of the licence. The Company has chosen IAS 17 as interpretation for classification and recognition of leases. Leases that do not transfer substantially all the risks and rewards incident to the ownership to the Company are classified as operating leases. Payments relating to operating leases and any other rent agreements are recognised in the income statement over the term of the lease. The Company's aggregate liabilities relating to operating leases and other rent agreements are disclosed under "Contingent liabilities". Equity investments in group entities are measured according to the equity method. On initial recognition, equity investments in group entities are measured at cost, i.e. plus transaction costs. The cost is allocated in accordance with the acquisition method; see the accounting policies regarding business combinations. The cost is adjusted by shares of profit/loss after tax calculated in accordance with the Group's accounting policies less or plus unrealised intra-group gains/losses. Identified increases in value and goodwill, if any, compared to the underlying entity's net asset value are amortised in accordance with the accounting policies for the assets and liabilities to which they can be attributed. Negative goodwill is recognised in the income statement. Dividend received is deduced from the carrying amount. Equity investments in group entities measured at net asset value are subject to impairment test requirements if there is any indication of impairment. Gains and losses on disposal of group entities and associates are made up as the difference between the sales price and the carrying amount of net assets at the date of disposal including non-amortised goodwill and anticipated costs of disposal. Gains or losses are recognised in the income statement as financial income or financial expenses. The carrying amount of intangible assets and investments in group entities is assessed for impairment on an annual basis. Impairment tests are conducted on assets or groups of assets when there is evidence of impairment. The carrying amount of impaired assets is reduced to the higher of the net selling price and the value in use (recoverable amount). The recoverable amount is the higher of the net selling price of an asset and its value in use. The value in use is calculated as the present value of the expected net cash flows from the use of the asset or the group of assets and the expected net cash flows from the disposal of the asset or the group of assets after the end of the useful life. Previously recognised impairment losses are reversed when the reason for recognition no longer exists. Impairment losses on goodwill are not reversed. The Company has chosen IAS 39 as interpretation for impairment write-down of financial receivables. Receivables are measured at amortised cost. An impairment loss is recognised if there is objective evidence that a receivable or a group of receivables is impaired. If there is objective evidence that an individual receivable has been impaired, an impairment loss is recognised on an individual basis. Receivables in respect of which there is no objective evidence of individual impairment are tested for objective evidence of impairment on a portfolio basis. The portfolios are primarily based on the debtors' domicile and credit ratings in line with the Company's risk management policy. The objective evidence applied to portfolios is determined based on historical loss experience. Impairment losses are calculated as the difference between the carrying amount of the receivables and the present value of the expected cash flows, including the realisable value of any collateral received. The effective interest rate for the individual receivable or portfolio is used as discount rate. Prepayments recognised under "Assets" comprise prepaid expenses regarding subsequent financial reporting years. Cash includes deposits in bank accounts as well as operating cash. Reserve for net revaluation according to the equity method The net revaluation reserve according to the equity method includes net revaluations of investments in group entities and associates relative to cost. The reserve can be eliminated in case of losses, realisation of investments or a change in accounting estimates. The reserve cannot be recognised at a negative amount. Reserve for development costs The reserve for development costs comprises recognised development costs. The reserve cannot be used to distribute dividend or cover losses. The reserve will be reduced or dissolved if the recognised development costs are amortised or are no longer part of the Company's operations by a transfer directly to the distributable reserves under equity. Translation reserve The translation reserve comprises the share of foreign exchange differences arising on translation of financial statements of entities that have a functional currency other than DKK, foreign exchange adjustments of assets and liabilities considered part of the Company's net investments in such entities and foreign exchange adjustments regarding hedging transactions that hedge the Company's net investments in such entities. The reserve is dissolved on the sale of foreign entities or if the conditions for effective hedging no longer exist. When equity investments in group entities and associates in the parent company financial statements are subject to the limitation requirement in the net revaluation reserve according to the equity method, foreign exchange adjustments will be included in this equity reserve instead. Proposed dividends Dividend proposed for the year is recognised as a liability once adopted at the annual general meeting (declaration date). Dividends expected to be distributed for the financial year are presented as a separate item under "Equity". Dividend proposed for the year is recognised as a liability once adopted at the annual general meeting (declaration date). Dividends expected to be distributed for the financial year are presented as a separate item under "Equity". Current tax payables and receivables are recognised in the balance sheet as the estimated income tax charge for the year, adjusted for prior-year taxes and tax paid on account. Deferred tax is measured according to the liability method on all temporary differences between the carrying amount and the tax base of assets and liabilities. However, deferred tax is not recognised on temporary differences relating to goodwill which is not deductible for tax purposes and on office premises and other items where temporary differences, apart from business combinations, arise at the date of acquisition without affecting either profit/loss for the year or taxable income. Where alternative tax rules can be applied to determine the tax base, deferred tax is measured based on Management's intended use of the asset or settlement of the liability, respectively. Deferred tax is measured according to 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. Deferred tax assets are recognised at the expected value of their utilisation; 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. Changes in deferred tax due to changes in the tax rate are recognised in the income statement. The Company has chosen IAS 39 as interpretation for liabilities. Financial liabilities are recognised at the date of borrowing at the net proceeds received less transaction costs paid. On subsequent recognition, financial liabilities are measured at amortised cost, corresponding to the capitalised value, using the effective interest rate. Accordingly, the difference between the proceeds and the nominal value is recognised in the income statement over the term of the loan. Financial liabilities also include the capitalised residual lease liability in respect of finance leases. Other liabilities are measured at net realisable value. Special items Special items include significant income and expenses that are of a special nature in relation to the company's and the group's revenue-generating operating activities. Special items may include costs for large-scale process restructuring and fundamental structural adjustments, as well as any associated divestment gains and losses, which are significant over time. Special items also include other significant amounts of a one-off nature which, in the management's assessment, are not part of the company's and the group's primary operations and which are not assumed to be recurring. The debt structure is subject to general conditions as well as financial covenants that is tested quarterly. The Group failed to meet the financial covenant by end of 2024 and also failed the covenant test for Q1 2025. Due to the breach the lender can withdraw the loan facilities. Management is in the pro-cess of renegotiating the overall financing structure and the related covenants for the group. Currently the group has received a proposal, and it is management expectations that a final agreement with be signed soon, but after the date for the approval of the financial statements for 2024. Based on the current budgets and cash flow forecasts, Management expects to have sufficient liquidity to fund the operations under the proposed financing structure and also expects to comply with the proposed covenants for 2025. As a consequence of this, the regular non-current liability has been presented as “short-term part of long-term liabilities other than provisions” as there was no updated agreement with the lenders as per end of December 31, 2024. There has not been any subsequent events, which has significant impact on the financial status as of December 31, 2024. Completed development projects Completed development projects include software and webshop projects that contribute to the earnings and profit in the group enterprises. The completed development projects are depreciated over 5 years. Management has not identified any indication of impairment in relation to the carrying amount of the system. Development projects in progress Development projects in progress include and software and webshop projects. The costs consist internal costs in the form of internal hours and other external services, which are registered through the company's internal project module. As at 31 December 2024, the accounting value totals DKK 9,882. The majority of ongoing development projects are expected to be completed in 2025. The new projects are expected to result in significant competitive advantages and thus contribute to the future earnings and profit for the company also in 2025. In 2024, management has not identified indication of impairment on the carrying value of the ongoing development projects. As of 31 December 2024, the Company has recognised deferred tax assets totalling DKK 11 million. The deferred tax asset is composed of recoverable losses and unused tax deductions in the form of temporal differences. Based on the budgets 2025-2029, management has assessed it likely that future taxable income will be available in which unused tax losses and unused tax deductions can be utilized. The Company is jointly taxed with its parent, Dantherm Group Holding I ApS, which acts as management company, and other Danish group entities. The Company is jointly and severally with other jointly taxed group entities for payment of income taxes and withholding taxes falling due for paymentin the group of jointly taxed entities. Other rent and lease liabilities: DKK'000 2024 2023 Rent and lease liabilities 211 300 The company participate in as obligor in the Group's financing facility. The Group has a total credit facility amounting to EUR 310 millions (DKK 2,312 million) as per December 31, 2024, whereas EUR 40 millions (DKK 298 million) are the credit facilities to finance the operations. The credit facilities are subject to the following collaterals and pledges: Irrevocalby and unconditional jointly and severally guarantee for any payments, however limited with the limitation under the Danish Company Act, section 206 to 212 regarding unlawful financial assistance. Granted security by all shares held in Dantherm Denmark A/S, Dantherm Group AG, Dantherm GmbH, Dantherm Group SAS, Dantherm Group S.P.A., Dantherm sp.z o.o., intercompany loans and bank accounts. Floating charge issued by Dantherm Denmark A/ S amounting to 75 mio DKK. The total carrying amount of these assets is DKK 275 mio and can be specified as debtors with a carrying value at 31 December 2024 of DKK 29 million, inventories with a carrying value at 31 December 2024 of DKK 143 million, intangible assets with a carrying value at 31 December 2024 of DKK 36 million and tangible assets with a carrying value at 31 December 2024 of DKK 67 million. The debt structure is subject to general conditions as well as financial covenants that is tested quarterly. The Group failed to meet the financial covenant by end of 2024 and also failed the covenant test for Q1 2025. Due to the breach the lender can withdraw the loan facilities. Management is in the process of renegotiating the overall financing structure and the related covenants for the group. Currently the group has received a proposal, and it is management expectations that a final agreement with be signed soon, but after the date for the approval of the financial statements for 2024. Based on the current budgets and cash flow forecasts, Management expects to have sufficient liquidity to fund the operations under the proposed financing structure and also expects to comply with the proposed covenants for 2025. As a consequence of this, the regular non-current liability has been presented as “short-term part of long-term liabilities other than provisions” as there was no updated agreement with the lenders as per end of December 31, 2024. The company has issued an unconditional jointly and severally guarantee for Dantherm Group Ltd. Guarantee commitments consist of a guarantee provided in respect of third party commitments. The guarantee commitment is maximally tDKK 15.397. Information about consolidated financial statements Parent Domicile Requisitioning of the parent company's consolidated financial statements Dantherm Group Holding I ApS Skive, Denmark CVR no 42 60 83 35 Ownership The following shareholders are registered in the Company's register of shareholders as holding minimum 5% of the votes or minimum 5% of the share capital: Name Domicile Dantherm Group Holding II A/S Denmark 30537939 2024-01-01 2024-12-31 30537939 2023-01-01 2023-12-31 30537939 2023-12-31 30537939 2024-12-31 30537939 2024-01-01 2024-12-31 1 30537939 2024-01-01 2024-12-31 2 30537939 2024-12-31 1 30537939 2024-01-01 2024-12-31 1 30537939 2024-01-01 2024-12-31 2 30537939 2024-01-01 2024-12-31 1 30537939 2024-01-01 e:CompletedDevelopmentProjectsMember 30537939 2024-01-01 e:GoodwillMember 30537939 2024-01-01 e:DevelopmentProjectsInProgressAndPrepaymentsForIntangibleAssetsMember 30537939 2024-01-01 2024-12-31 e:DevelopmentProjectsInProgressAndPrepaymentsForIntangibleAssetsMember 30537939 2024-12-31 e:DevelopmentProjectsInProgressAndPrepaymentsForIntangibleAssetsMember 30537939 2024-01-01 2024-12-31 e:GoodwillMember 30537939 2024-12-31 e:GoodwillMember 30537939 2024-01-01 2024-12-31 e:CompletedDevelopmentProjectsMember 30537939 2024-12-31 e:CompletedDevelopmentProjectsMember 30537939 2024-01-01 e:ReceivablesFromGroupEnterprisesMember 30537939 2024-01-01 2024-12-31 e:ReceivablesFromGroupEnterprisesMember 30537939 2024-12-31 e:ReceivablesFromGroupEnterprisesMember 30537939 2024-01-01 e:InvestmentsInGroupEnterprisesMember 30537939 2024-01-01 2024-12-31 e:InvestmentsInGroupEnterprisesMember 30537939 2024-12-31 e:InvestmentsInGroupEnterprisesMember 30537939 2023-01-01 e:ContributedCapitalMember 30537939 2023-01-01 2023-12-31 e:ContributedCapitalMember 30537939 2024-01-01 e:ContributedCapitalMember 30537939 2024-01-01 2024-12-31 e:ContributedCapitalMember 30537939 2024-12-31 e:ContributedCapitalMember 30537939 2024-01-01 e:ReserveForNetRevaluationAccordingToEquityMethodMember 30537939 2024-01-01 2024-12-31 e:ReserveForNetRevaluationAccordingToEquityMethodMember 30537939 2024-12-31 e:ReserveForNetRevaluationAccordingToEquityMethodMember 30537939 2023-01-01 e:ReserveForNetRevaluationAccordingToEquityMethodMember 30537939 2023-01-01 2023-12-31 e:ReserveForNetRevaluationAccordingToEquityMethodMember 30537939 2024-01-01 e:RetainedEarningsMember 30537939 2024-01-01 2024-12-31 e:RetainedEarningsMember 30537939 2024-12-31 e:RetainedEarningsMember 30537939 2023-01-01 e:RetainedEarningsMember 30537939 2023-01-01 2023-12-31 e:RetainedEarningsMember 30537939 2024-01-01 e:ProposedDividendRecognisedInEquityMember 30537939 2024-01-01 2024-12-31 e:ProposedDividendRecognisedInEquityMember 30537939 2024-12-31 e:ProposedDividendRecognisedInEquityMember 30537939 2023-01-01 e:ProposedDividendRecognisedInEquityMember 30537939 2023-01-01 2023-12-31 e:ProposedDividendRecognisedInEquityMember 30537939 2024-01-01 2024-12-31 e:SubsidiaryMember 1 30537939 2024-01-01 2024-12-31 e:SubsidiaryMember 2 30537939 2024-01-01 2024-12-31 e:SubsidiaryMember 3 30537939 2024-01-01 2024-12-31 e:SubsidiaryMember 5 30537939 2024-01-01 2024-12-31 e:SubsidiaryMember 6 30537939 2024-01-01 2024-12-31 e:SubsidiaryMember 7 30537939 2024-01-01 2024-12-31 e:SubsidiaryMember 10 30537939 2024-01-01 2024-12-31 e:SubsidiaryMember 11 30537939 2024-01-01 2024-12-31 e:SubsidiaryMember 12 30537939 2024-01-01 2024-12-31 e:SubsidiaryMember 13 30537939 2024-01-01 2024-12-31 e:SubsidiaryMember 14 30537939 2024-01-01 2024-12-31 e:SubsidiaryMember 15 30537939 2024-01-01 2024-12-31 e:SubsidiaryMember 16 30537939 2024-01-01 2024-12-31 e:SubsidiaryMember 17 30537939 2024-12-31 e:SubsidiaryMember 1 30537939 2024-12-31 e:SubsidiaryMember 2 30537939 2024-12-31 e:SubsidiaryMember 3 30537939 2024-12-31 e:SubsidiaryMember 5 30537939 2024-12-31 e:SubsidiaryMember 6 30537939 2024-12-31 e:SubsidiaryMember 7 30537939 2024-12-31 e:SubsidiaryMember 10 30537939 2024-12-31 e:SubsidiaryMember 11 30537939 2024-12-31 e:SubsidiaryMember 12 30537939 2024-12-31 e:SubsidiaryMember 13 30537939 2024-12-31 e:SubsidiaryMember 14 30537939 2024-12-31 e:SubsidiaryMember 15 30537939 2024-12-31 e:SubsidiaryMember 16 30537939 2024-12-31 e:SubsidiaryMember 17 30537939 2023-12-31 1 30537939 2024-01-01 e:ReserveForDevelopmentExpenditureMember 30537939 2024-01-01 2024-12-31 e:ReserveForDevelopmentExpenditureMember 30537939 2024-12-31 e:ReserveForDevelopmentExpenditureMember 30537939 2023-01-01 e:ReserveForDevelopmentExpenditureMember 30537939 2023-01-01 2023-12-31 e:ReserveForDevelopmentExpenditureMember iso4217:DKK xbrli:shares xbrli:pure