12552688 2024-07-01 2025-06-30 2 12552688 2024-07-01 2025-06-30 3 12552688 2024-07-01 2025-06-30 12552688 2024-07-01 2025-06-30 1 12552688 2023-07-01 2024-06-30 12552688 2025-06-30 12552688 2024-06-30 12552688 2024-07-01 d:CompletedDevelopmentProjectsMember 12552688 2024-07-01 2025-06-30 d:CompletedDevelopmentProjectsMember 12552688 2025-06-30 d:CompletedDevelopmentProjectsMember 12552688 2024-07-01 d:FixturesFittingsToolsAndEquipmentMember 12552688 2024-07-01 2025-06-30 d:FixturesFittingsToolsAndEquipmentMember 12552688 2025-06-30 d:FixturesFittingsToolsAndEquipmentMember 12552688 2024-07-01 d:DepositsLongtermInvestmentsAndReceivablesMember 12552688 2025-06-30 d:DepositsLongtermInvestmentsAndReceivablesMember 12552688 2024-07-01 d:ContributedCapitalMember 12552688 2023-07-01 d:ContributedCapitalMember 12552688 2025-06-30 d:ContributedCapitalMember 12552688 2024-06-30 d:ContributedCapitalMember 12552688 2024-07-01 d:ReserveForDevelopmentExpenditureMember 12552688 2023-07-01 d:ReserveForDevelopmentExpenditureMember 12552688 2024-07-01 2025-06-30 d:ReserveForDevelopmentExpenditureMember 12552688 2023-07-01 2024-06-30 d:ReserveForDevelopmentExpenditureMember 12552688 2025-06-30 d:ReserveForDevelopmentExpenditureMember 12552688 2024-06-30 d:ReserveForDevelopmentExpenditureMember 12552688 2024-07-01 d:RetainedEarningsMember 12552688 2023-07-01 d:RetainedEarningsMember 12552688 2024-07-01 2025-06-30 d:RetainedEarningsMember 12552688 2023-07-01 2024-06-30 d:RetainedEarningsMember 12552688 2025-06-30 d:RetainedEarningsMember 12552688 2024-06-30 d:RetainedEarningsMember 12552688 2024-07-01 d:ProposedDividendRecognisedInEquityMember 12552688 2023-07-01 d:ProposedDividendRecognisedInEquityMember 12552688 2024-07-01 2025-06-30 d:ProposedDividendRecognisedInEquityMember 12552688 2023-07-01 2024-06-30 d:ProposedDividendRecognisedInEquityMember 12552688 2024-07-01 2025-06-30 1 12552688 2024-07-01 2025-06-30 1 12552688 2024-07-01 2025-06-30 2 12552688 2024-07-01 2025-06-30 3 12552688 2022-01-01 2022-12-31 12552688 2021-01-01 2021-12-31 12552688 2020-01-01 2020-12-31 12552688 2022-12-31 12552688 2021-12-31 12552688 2020-12-31 12552688 2024-07-01 2025-06-30 1 12552688 2023-07-01 2024-06-30 1 12552688 2022-01-01 2022-12-31 1 12552688 2021-01-01 2021-12-31 1 12552688 2020-01-01 2020-12-31 1 iso4217:DKK xbrli:pure Årsrapport 15915641 Christensen Kjærulff, Statsautoriseret Revisionsaktieselskab Østbanegade, 123 2100, København Ø 2023-07-01 2024-06-30 2024-07-01 2025-06-30 12552688 Delfi Technologies A/S Valdemarshaab 11 4600 Køge 1988-11-01 Køge www.delfi.com Christensen Kjærulff, Statsautoriseret Revisionsaktieselskab 15915641 Torben Laurentz Wiberg statsautoriseret revisor mne11651 Østbanegade 123 2100 København Ø Danmark +45 33 30 15 15 ck@ck.dk 2025-11-24 Svend-Aage Dreist Hansen Regnskabsklasse C, mellemstor virksomhed Revisionspåtegning Ja CaseWare fra Revisorgruppen Danmark kapitalejeren København 2025-11-24 Køge 2025-11-24 Grundlag for konklusion Konklusion 53809107 49291055 41888819 40144198 8650576 7751936 3269712 1394921 341404 2167588 404017 385513 2991898 3361226 1023235 586796 277413 158433 745822 428363 908158 1113119 -162336 -684756 0 208124 0 208124 24139293 23349225 24139293 23349225 54956 54956 54956 54956 24194249 23612305 36120430 49206667 36120430 49206667 29960861 31265360 21555840 20177494 414430 30369 206685 0 1070644 1348301 53208460 52821524 13463473 775921 102792363 102804112 126986612 126416417 0 1000000 1000000 0 162336 23430124 22521966 24430124 23684302 661474 0 661474 0 57025569 40496873 2611052 251549 24888984 28032244 10739674 27891946 260789 174396 31966 31966 6336980 5853141 101895014 102732115 102556488 102732115 126986612 126416417 38774376 37382025 2687308 2343461 427135 418712 41888819 40144198 62 63 66055 12364 2925843 3348862 2991898 3361226 12040600 778786 11261814 11832476 208124 778786 11261814 46711148 9232520 4082155 51861513 23361923 8442452 4082155 27722220 24139293 54956 54956 54956 1000000 1000000 1000000 1000000 162336 847092 -162336 -684756 0 162336 22521966 21408847 908158 1113119 23430124 22521966 0 18000000 0 18000000 Today, the Board of Directors and the Managing Director have approved the annual report of Delfi Technologies A/S for the financial year 1 July 2024 - 30 June 2025. The annual report has been prepared in accordance with the Danish Financial Statements Act. We consider the chosen accounting policy to be appropriate, and in our opinion, the financial statements give a true and fair view of the financial position of the Company at 30 June 2025 and of the results of the Company's operations for the financial year 1 July 2024 – 30 June 2025. Further, in our opinion, the Management's review gives a true and fair review of the matters discussed in the Management's review. We recommend that the annual report be approved at the Annual General Meeting. Palle Normann Svendsen Svend Aage Dreist Hansen Palle Normann Svendsen Claus Justsen We have audited the financial statements of Delfi Technologies A/S for the financial year 1 July 2024 - 30 June 2025, which comprise income statement, balance sheet, statement of changes in equity, notes and a summary of significant accounting policies, for the Company. The financial statements are prepared under 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 30 June 2025, and of the results of the Company's operations for the financial year 1 July 2024 - 30 June 2025 in accordance with the Danish Financial Statements Act. Basis for OpinionWe conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional requirements applicable in Den­mark. Our responsibilities under those standards and requirements are further described in the “Auditor’s Responsibilities for the Audit of the Financial Statements” section of our report. We are independent of the Company in accordance with the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Den­mark, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 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 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 judgment and maintain professional skepticism 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 disclosures, and whether the financial statements represent the underlying transactions and events in a manner that gives a true and fair view. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Statement on Management’s ReviewManagement is responsible for Management’s Review. Our opinion on the financial statements does not cover Management’s Review, and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read Management’s Review and, in doing so, consider whether Management’s Review is materially inconsistent with the financial statements or our knowledge obtained during the audit, or otherwise appears to be materially misstated. Moreover, it is our responsibility to consider whether Management’s Review provides the information required under the Danish Financial Statements Act. Based on the work we have performed, we conclude that 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 Management’s Review. 56160000 49477000 43269000 9481000 7288000 11060000 -2246000 -808000 -614000 -974000 -370000 6912000 5014000 8455000 176597000 116059000 97354000 9233000 8488000 17080000 5294000 4006000 41256000 34344000 29331000 63 59 50 100.9 100.1 113.0 127.5 130.3 19.2 18.7 23.4 29.6 30.1 3.1 1.3 18.3 15.7 32.4 Description of key activities of the companyDelfi Technologies A/S' principal activities consist of development and supply of value-added IT solutions for various industries and purposes, primarily for the European market, including import of the latest technology within hardware solutions combined with Delfi's own future-proof software solutions. In Delfi Technologies A/S, we believe in long term business partnerships. We apply our knowledge and skills to every solution by offering the right combination of support, service and counseling. We aim to be the best in our field based on an open dialogue, high expertise, using the latest technology and excellent service to grow together with our customers. Uncertainties connected with recognition or measurementThe annual report is not influenced by any material issues and there is no significant uncertainty in relation to the calculation of the annual report. Unusual circumstancesThe annual report is not influenced by any unusual circumstances and there are no significant circumstances in relation to the calculation of the annual report. Development in activities and financial mattersThe gross profit for the year totals DKK 53.809 thousand against DKK 49.291 last year. Profit or loss from ordinary activities after tax totals DKK 746 thousand against DKK 428 last year. Management considers the result for the year satisfactory under the given circumstances. The negative result primarily reflects extraordinary challenges in the Italian subsidiary, where market conditions temporarily affected earnings (losses were incurred on a few customers). Adjusted for these factors, the underlying business performance remains stable and in line with expectations. Although the net profit after tax is 746 thousand DKK higher than last year's, it reflects the challenging market conditions. The result aligns with management's expectations for the year and, in that context, is considered satisfactory. The continued investment in software solutions and long-term customer relationships provides a solid foundation for future improvements in earnings. Development for the year relative to the expectationsIt the annual report 2023/24, a projected gross profit for 2024/25 at a level of approximately DKK 50.000  thousand and a profit or loss from ordinary activities after tax of DKK 2.700-3.000 thousand were announced. The actual gross profit for 2024/25 amounts to DKK 53.809 thousand and the actual profit or loss from ordinary activities after tax amounts to DKK 746  thousand. Actual gross profit is considered as in level with the expected. The primary reason for the deviation between the projected and actual profit or loss from ordinary activities after tax is increased financial expenses. Expected developmentsDelfi expects a slightly growth in both revenue and margin level in the fiscal year 2025/26 compared to the two preceding periods, resulting in result after tax on approx. DKK 6.000 thousand. Intangible key resourcesThe employees of the company are the primary know how resources of the company, and their involvement is material for the growth of the business. The company continually strives at creating the best basic for know how ressources. Research and development activitiesWe have a strategic focus on adapting our solutions and technology to the latest market trends and innovations to ensure sustainable growth and maintain our competitiveness. Increasing demand for automation, sustainability, and digital solutions are emerging as key drivers. Therefore, we intend to concentrate on solutions and products that meet these needs. Our dedicated sales and development team will be at the forefront to ensure that our solution range is in line with technological changes and new needs in the market. Development work is an integral post of the daily work to satisfy customer demands and is therefore not separate processes that meet accounting requirements for capitalization of development costs. Events occurring after the end of the financial yearNo events have occurred subsequent to the balance sheet date, which would have material impact on the financial position of the company. 9.Deferred tax assetsDeferred tax assets 1 July 202430.369156.836Deferred tax of the net profit or loss for the year384.061-126.467 414.43030.369 The following items are subject to deferred tax: Intangible assets0-45.787 Property, plant, and equipment414.43076.156 414.43030.369 13.Contractual obligations and contingencies, etc.Contractual obligations and contingent liabilitiesLease liabilities:The company has entered into 7 operational leasing contracts with an average annual leasing payment of DKK 649 thousand. The leasing contracts have 2-42 months left to run, and the total outstanding leasing payment is DKK 1.371 thousand. Recourse guarantee commitments:The company has guaranteed the bank loans of the group enterprise Delfi Holding ApS. On 30 June 2025, the total bank loans of the group enterprise Delfi Holding ApS totalled DKK 6.221 thousand. Other contingent liabilitiesThe company has signed leases with 12 months' notice. As per 30 June 2025 the liability represents DKK 1.770 thousand. Joint taxationWith Palle Svendsen Holding ApS, company reg. no 41657146 as administration company, the company is subject to the Danish scheme of joint taxation and unlimitedly, jointly, and severally liable, along with the other jointly taxed companies, for the total corporation tax. The company is unlimitedly, jointly, and severally liable, along with the other jointly taxed companies, for any obligations to withhold tax on interest, royalties, and dividends. Any subsequent adjustments of corporate taxes or withholding tax, etc., may result in changes in the company's liabilities. 14.Related partiesControlling interest Palle Svendsen Holding ApSMajority shareholder Delfi Holding ApSMajority shareholder Karina Storgård Holding ApSMinority shareholder Annika Storgaard Holding ApSMinority shareholder Nikolaj Svendsen Holding ApSMinority shareholder Valdemarshaab A/S Sister company Delfi Technologies AB, SwedenSister company Delfi Technologies AS, NorwaySister company Delfi Technologies Development Company Ltd., VietnamSister company Delfi Technologies Joint Stock Company, VietnamSister company Delfi Technologies SRL, ItalySister company Delfi Technologies GmbH, Germany Sister company TransactionsAll transactions with related parties have taken place on market terms. Consolidated financial statementsThe company is included in the consolidated financial statements of Delfi Holding ApS, Gammel Hastrupvej 8, 4600 Køge and Palle Svendsen Holding ApS, Gammel Hastrupvej 8, 4600 Køge. The annual report for Delfi Technologies A/S has been presented in accordance with the Danish Financial Statements Act regulations concerning reporting class C enterprises (medium sized enterprises).   The accounting policies are unchanged from last year, and the annual report is presented in DKK. Pursuant to section 86 (4) of the Danish Financial Statements Act, no statement of cash flows for the enterprise has been prepared, as the relevant information is included in the consolidated financial statements of Delfi Holding ApS and Palle Svendsen Holding ApS. Recognition and measurement in generalIncome is recognised in the income statement concurrently with its realisation, including the recognition of value adjustments of financial assets and liabilities. Likewise, all costs are recognised in the income statement, including depreciations amortisations, write-downs for impairment, provisions, and reversals due to changes in estimated amounts previously recognised in the income statement. Assets are recognised in the statement of financial position when it seems probable that future economic benefits will flow to the company and the value of the asset can be reliably measured. Liabilities are recognised in the statement of financial position when it is seems probable that future economic benefits will flow out of the company and the value of the liability can be reliably measured. Assets and liabilities are measured at cost at the initial recognition. Hereafter, assets and liabilities are measured as described below for each individual accounting item. Certain financial assets and liabilities are measured at amortised cost, allowing a constant effective interest rate to be recognised during the useful life of the asset or liability. Amortised cost is recognised as the original cost less any payments, plus/less accrued amortisations of the difference between cost and nominal amount. In this way, capital losses and gains are allocated over the useful life of the liability. Upon recognition and measurement, allowances are made for such predictable losses and risks which may arise prior to the presentation of the annual report and concern matters that exist on the reporting date. Foreign currency translationTransactions in foreign currency are translated by using the exchange rate prevailing at the date of the transaction. Differences in the rate of exchange arising between the rate at the date of transaction and the rate at the date of payment are recognised in the profit and loss account as an item under net financials. If currency positions are considered to hedge future cash flows, the value adjustments are recognised directly in equity in a fair value reserve. Receivables, payables, and other foreign currency monetary items are translated using the closing rate. The difference between the closing rate and the rate at the time of the occurrence or initial recognition in the latest financial statements of the receivable or payable is recognised in the income statement under financial income and expenses. Gross profitGross profit comprises the revenue, changes in inventories of finished goods, work performed for own account and capitalised, other operating income, and external costs. The enterprise will be applying IAS 11 and IAS 18 as its basis of interpretation for the recognition of revenue. Revenue is recognised in the income statement if delivery and passing of risk to the buyer have taken place before the end of the year and if the income can be determined reliably and inflow is anticipated. Revenue is measured at the fair value of the consideration promised exclusive of VAT and taxes and less any discounts relating directly to sales. Cost of sales comprises costs concerning purchase of raw materials and consumables less discounts and changes in inventories. Other operating income comprises items of a secondary nature as regards the principal activities of the enterprise, including operating loss and conflict compensation as well as salary reimbursements received. Compensation is recognized when it is overwhelmingly probable that the company will receive the compensation. Other external expenses comprise expenses incurred for distribution, sales, advertising, administration, premises, loss on receivables, and operational leasing costs. Staff costsStaff costs include salaries and wages, including holiday allowances, pensions, and other social security costs, etc., for staff members. Depreciation, amortisation, and write-down for impairmentDepreciation, amortisation, and write-down for impairment comprise depreciation, amortisation, and write-down for the year and profit and loss on the disposal of intangible and tangible assets. Financial income and expensesFinancial income and expenses are recognised in the income statement with the amounts concerning the financial year. Financial income and expenses comprise interest income and expenses, financial expenses from financial leasing, realised and unrealised capital gains and losses relating to securities, debt and transactions in foreign currency, amortisation of financial assets and liabilities as well as surcharges and reimbursements under the advance tax scheme, etc. Tax on net profit or loss for the yearTax for the year comprises the current income tax for the year and changes in deferred tax and is recognised in the income statement with the share attributable to the net profit or loss for the year and directly in equity with the share attributable to entries directly in equity.  The company is subject to Danish rules on compulsory joint taxation of Danish group enterprises. The current Danish income tax is allocated among the jointly taxed companies proportional to their respective taxable income (full allocation with reimbursement of tax losses). Intangible assetsDevelopment projectsDevelopment costs and internally generated rights are recognised in the income statement as costs in the acquisition year. Profit and loss from the sale of development projects are measured as the difference between the sales price less sales costs and the carrying amount at the time of sale. Profit or loss is recognised in the income statement under amortisation and write-down for impairment. Property, plant, and equipmentProperty, plant, and equipment are measured at cost less accrued depreciation and write-down for impairment. Land is not subject to depreciation. The depreciable amount is cost less any expected residual value after the end of the useful life of the asset. The amortisation period and the residual value are determined at the acquisition date and reassessed annually. If the residual value exceeds the carrying amount, the depreciation is discontinued. Depreciation is done on a straight-line basis according to an assessment of the expected useful life and the residual value of the individual assets: Useful lifeResidual valueOther fixtures and fittings, tools and equipment3-5years0-20 % Minor assets with an expected useful life of less than 1 year are recognised as costs in the income statement in the year of acquisition. Profit or loss derived from the disposal of property, land, and equipment is measured as the difference between the sales price less selling costs and the carrying amount at the date of disposal. Profit or loss is recognised in the income statement under depreciation. LeasesAll other leases are regarded as operating leases. Payments in connection with operating leases and other lease agreements are recognised in the income statement for the term of the contract. The company's total liabilities concerning operating leases and lease agreements are recognised under contingencies, etc. DepositsDeposits are measured at amortised cost and represent lease deposits, etc. Impairment loss relating to non-current assetsThe carrying amount of both intangible and tangible fixed assets are subject to annual impairment tests in order to disclose any indications of impairment beyond those expressed by amortisation and depreciation respectively. If indications of impairment are disclosed, impairment tests are carried out for each individual asset or group of assets, respectively. write-down for impairment is done to the recoverable amount if this value is lower than the carrying amount. The recoverable amount is the higher value of value in use and selling price less expected selling cost. The value in use is calculated as the present value of the expected net cash flows from the use of the asset or the asset group and expected net cash flows from the sale of the asset or the asset group after the end of their useful life. Previously recognised impairment losses are reversed when conditions for impairment no longer exist. InventoriesInventories are measured at cost according to the FIFO method. In cases when the net realisable value of the inventories is lower than the cost, the latter is written down for impairment to this lower value. Costs of goods for resale, raw materials, and consumables comprise acquisition costs plus delivery costs. Costs of manufactured goods and work in progress comprise the cost of raw materials, consumables, direct wages, and indirect production costs. Indirect production costs comprise indirect materials and wages, maintenance and depreciation of machinery, factory buildings, and equipment used in the production process, and costs for factory administration and factory management. Borrowing expenses are not recognised in cost. The net realisable value for inventories is recognised as the estimated selling price less costs of completion and selling costs. The net realisable value is determined with due consideration of negotiability, obsolescence, and the development of expected market prices. ReceivablesReceivables are measured at amortised cost, which usually corresponds to nominal value. In order to meet expected losses, impairment takes place at the net realisable value. The company has chosen to use IAS 39 as a basis for interpretation when recognising impairment of financial assets, which means that impairments must be made to offset losses where an objective indication is deemed to have occurred that an account receivable or a portfolio of accounts receivable is impaired. If an objective indication shows that an individual account receivable has been impaired, an impairment takes place at individual level. Accounts receivable for which there is no objective indication of impairment at the individual level are evaluated at portfolio level for objective indication of impairment. The portfolios are primarily based on the debtors' domicile and credit rating in accordance with the company's and the group's credit risk management policy. Determination of the objective indicators applied for portfolios are based on experience with historical losses. Impairment losses are calculated as the difference between the carrying amount of accounts receivable and the present value of the expected cash flows, including the realisable value of any securities received. The effective interest rate for the individual account receivable or portfolio is used as the discount rate. PrepaymentsPrepayments recognised under assets comprise incurred costs concerning the following financial year. Cash and cash equivalentsCash and cash equivalents comprise cash at bank. EquityReserve for development costsThe reserve for development costs comprises recognised development costs less related deferred tax liabilities. The reserve cannot be used as dividends or for covering losses. The reserve is reduced or dissolved if the recognised development costs are amortised or abandoned. This is done by direct transfer to the distributable reserves of the equity. Income tax and deferred taxCurrent tax liabilities and current tax receivable are recognised in the statement of financial position as calculated tax on the taxable income for the year, adjusted for tax of previous years' taxable income and for tax paid on account. The company is jointly taxed with consolidated Danish companies. The current corporate income tax is distributed between the jointly taxed companies in proportion to their taxable income and with full distribution with reimbursement as to tax losses. The jointly taxed companies are comprised by the Danish tax prepayment scheme. Joint taxation contributions payable and receivable are recognised in the statement of financial position as ”Tax receivables from group enterprises" or "Income tax payable to group enterprises" According to the rules of joint taxation, Delfi Technologies A/S is unlimitedly, jointly, and severally liable to pay the Danish tax authorities the total income tax, including withholding tax on interest, royalties, and dividends, arising from the jointly taxed group of companies. Deferred tax is measured on the basis of temporary differences in assets and liabilities with a focus on the statement of financial position. Deferred tax is measured at net realisable value. Adjustments take place in relation to deferred tax concerning elimination of unrealised intercompany gains and losses. Deferred tax is measured based on the tax rules and tax rates applying under the legislation prevailing in the respective countries on the reporting date when the deferred tax is expected to be released as current tax. Changes in deferred tax due to changed tax rates are recognised in the income statement, except for items included directly in the equity. Deferred tax assets, including the tax value of tax losses allowed for carryforward, are recognised at the value at which they are expected to be realisable, either by settlement against tax of future earnings or by set-off in deferred tax liabilities within the same legal tax unit. Any deferred net tax assets are measured at net realisable value. Liabilities other than provisionsFinancial liabilities other than provisions related to borrowings are recognised at the received proceeds less transaction costs incurred. In subsequent periods, the financial liabilities are recognised at amortised cost, corresponding to the capitalised value when using the effective interest rate. The difference between the proceeds and the nominal value is recognised in the income statement during the term of the loan. Mortgage loans and bank loans are thus measured at amortised cost which, for cash loans, corresponds to the outstanding payables. For bond loans, the amortised cost corresponds to an outstanding payable calculated as the underlying cash value at the date of borrowing, adjusted by amortisation of the market value on the date of the borrowing effectuated over the repayment period. Also, capitalised residual leasing liabilities associated with financial leasing contracts are recognised in the financial liabilities. Liabilities other than provisions relating to investment properties are measured at amortised cost. Other liabilities concerning payables to suppliers, group enterprises, and other payables are measured at amortised cost which usually corresponds to the nominal value. Deferred incomePayments received concerning future income are recognised under deferred income.