25305639 2024-04-01 2025-03-31 25305639 2024-04-01 2025-03-31 1 25305639 2024-04-01 2025-03-31 1 25305639 2024-04-01 2025-03-31 2 25305639 2024-04-01 2025-03-31 3 25305639 2024-04-01 2025-03-31 4 25305639 2024-04-01 2025-03-31 5 25305639 2024-04-01 2025-03-31 1 25305639 2023-04-01 2024-03-31 25305639 2025-03-31 25305639 2024-03-31 25305639 2024-03-31 fsa:ContributedCapitalMember 25305639 2024-03-31 fsa:RetainedEarningsMember 25305639 2024-03-31 fsa:ProposedDividendRecognisedInEquityMember 25305639 2024-04-01 2025-03-31 fsa:ContributedCapitalMember 25305639 2024-04-01 2025-03-31 fsa:RetainedEarningsMember 25305639 2024-04-01 2025-03-31 fsa:ProposedDividendRecognisedInEquityMember 25305639 2025-03-31 fsa:ContributedCapitalMember 25305639 2025-03-31 fsa:RetainedEarningsMember 25305639 2025-03-31 fsa:ProposedDividendRecognisedInEquityMember iso4217:DKK xbrli:pure Management’s Statement The Executive Board and Board of Directors have today considered and adopted the Annual Report of Lightera Denmark ApS for the financial year April 1, 2024 - March 31, 2025. 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 as of March 31, 2025 of the Company and of the results of the Company operations for 2024/25. In our opinion, Management's Review includes a true and fair account of the matters addressed in the Review. We recommend that the Annual Report be adopted at the Annual General Meeting. Brøndby Erik Gustav Børgesen CEO Jane Lusa Cercena Nubuaki Orita Richard Steve Allen Chairman Michael F. Pedersen Tommy Geisler Staff Representative Staff Representative To the Shareholders of Lightera Denmark ApS Opinion We have audited the financial statements of for the financial year 01.04.2024 - 31.03.2025, 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 31.03.2025 and of the results of its operations and cash flows for the financial year 01.04.2024 - 31.03.2025 in accordance with the Danish Financial Statements Act. Basis for opinion 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. Management's responsibilities for the financial statements 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. Auditor's responsibilities for the audit of the financial statements 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. • 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. Statement on management commentary Management is responsible for the management commentary. Our opinion on the consolidated financial statements and the parent financial statementsdoes 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 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 relevant law and regulations. Based on the work we have performed; we conclude that the management commentary is in accordance with the financial statements and has been prepared in accordance with the requirements in the relevant law and regulations. We did not identify any material misstatement of the management commentary. Copenhagen Deloitte Statsautoriseret Revisionspartnerselskab 33963556 Eskild Nørregaard Jakobsen State Authorised Public Accountant mne11681 Lightera Denmark ApS Priorparken 680 DK 2605 Brøndby 25305639 Brøndby Weidekampsgade 6 DK 2300 København S Financial Highlights Seen over a five-year period, the development of the Company is described by the following financial highlights: 2024/252023/242022/232021/222020/21Key Figures mDKKmDKKmDKKmDKKmDKK2024/252023/242022/232021/222020/21Key Figures mDKKmDKKmDKKmDKKmDKKRevenue 590 493 620 501 545Revenue 590 493 620 501 545Gross profit/loss 240 153 179 143 137Gross profit/loss 240 153 179 143 137Operating profit/loss 172 104 132 99 91Operating profit/loss 172 104 132 99 91Profit/loss before financial Profit/loss before financial income and expenses188 186 126 96 102income and expenses188 186 126 96 102Net financials 1 18 9 11 -2Net financials 1 18 9 11 -2Net profit/loss for the year 147 158 105 94 99Net profit/loss for the year 147 158 105 94 99Total assets 552 602 849 799 622Total assets 552 602 849 799 622Balance sheet total Equity 366 444 586 541 447Balance sheet total Equity 366 444 586 541 447Key Figures in %2024/25 2023/24 2022/23 2021/22 2020/21Key Figures in %2024/25 2023/24 2022/23 2021/22 2020/21Gross margin 40.7% 31.1% 28.9% 28.5% 25.1%Gross margin 40.7% 32.8% 28.8% 28.5% 25.1%Profit margin 31.8% 37.7% 20.3% 19.2% 18.7%Profit margin 31.8% 37.8% 20.3% 19.2% 18.7%Return on assets 34.0% 30.9% 14.8% 12.0% 16.4%Return on assets 34.0% 31.0% 14.8% 12.1% 15.9%Solvency ratio 66.3% 73.8% 69.0% 67.7% 71.9%Solvency ratio 66.4% 73.7% 69.0% 67.7% 71.9%Return on equity 36.4% 30.7% 18.6% 19.0% 24.9%Return on equity 36.4% 30.7% 18.6% 19.0% 24.9%The figures for 2021/22 have been updated due to the change in accounting policy for right of use assets in the financial year 2023/24. The comparison figures for the financial years 2020/21 and previous years have not been changed. Management’s Review Key activities The objects for which the Company is established are to develop, produce and market high technology products within the fields of telecommunication and data transfer, and carry on all such other business activities as the board of directors deems to the attainment of such objects. Development in the year The income statement of the company for 2024/25 shows a profit of after Tax 147.4 mDKK, and as of 31 March 2025 the balance sheet of the company shows equity of 366.1 mDKK. Operating profit is 172.2 mDKK, an increase of 52% as compared to the prior financial year. The net profit for the year is considered as satisfying and exceeds expectations. Special risks – operating risks and financial risks Foreign exchange risks Most of the revenue in the company is in foreign currency, and especially the FX rate in USD has an impact on sales and earnings DKK. This risk is primarily offset by making purchases in USD, however not eliminating the currency risk entirely. Targets and expectations for the year ahead The revenue for 2025/26 is expected to be in line with the current year. We have seen an improving market for specialty fiber, and Ocean transmission fiber is expected to continue the same trend as seen last year. Overall operating profit is expected to be in line with the current year. Research and development Research and development activities are primarily focused on product and process development within the Company’s existing product areas. Efforts are being made to improve existing products and develop new products to maintain or grow our market position. Projects are in many cases carried out in cooperation with other OFS and Furukawa companies as well as various universities. Intellectual capital resources The Vision of the company is: To become the most trusted and innovative provider of fiber optic solutions, inspiring employees, and customers to transform the way the world communicates, works, and lives. The Company has a global leading position with respect to both delivery time/ability and product quality. This obviously means that it is important to retain qualified and innovative employees. The Company has succeeded in maintaining the critical knowledge of the Company and keeping the turnover of staff at a lower level. Uncertainty relating to recognition and measurement Recognition and measurement in the Annual Report have not been subject to any uncertainty. Unusual events The financial position on 31 March, 2025 of the Company and the results of the activities of the Company for the financial year for 2024/25 have not been affected by any unusual events. Subsequent events No events materially affecting the assessment of the Annual Report occurred after the balance sheet date. Statement of corporate social responsibility cf. Danish Financial Statements Act §99a The company and its activities are in Denmark. The Company is therefore regularly monitoring Danish and EU legislation as part of the normal compliance procedures and obligations. When new applicable legislation is identified, the QHSE department will start the procedures to obtain the necessary level of compliance. The identified risks that have been found are the risk of workers safety caused by the business activities. Lightera Denmark ApS is committed to preventing safety incidents through proactive efforts and continuous training. Our employees play a key role in this preventive approach by consistently reporting near misses and safety observations. Emergency plans and similar are evaluated and updated regularly. In 2024/25, safety observations were registered with an increase from the prior fiscal year. The increase can be explained by more observations being recorded as a result of increased safety focus. The number of recordable injuries remains low. When benchmarked against official data from OSHA and Statistics Denmark, Lightera’s safety performance is nearly twice as good as the industry average and is approaching best-in-class levels within the fiber optic cable sector. We believe that the initiatives implemented in 2024/25 have significantly contributed to maintaining a safe work environment. Lightera will continue to prioritize workplace safety moving forward. Human rights Furukawa Electric group CSR Code of Conduct is the basis for behavior for our directors and employees: Respect the human rights of all people and do not engage in discrimination or harassment on the grounds of race, nationality, creed, religion, gender, sexual identity, sexual orientation, social origin, age, disability, academic background, or family circumstances. Using biannual employee engagement surveys and annual employee dialogues the company interacts with the employees to work for equality and against discrimination. Lightera Denmark ApS in 2024/25 has evaluated the risk of human rights breaches to be low and we are not aware of violations regarding human rights in Lightera Denmark ApS in 2024/25. We will continue to monitor any potential violations in the coming year. Environment and climate As part of our commitment to sustainable development and responsible business practices, we are continuously strengthening our environmental management and working to reduce our climate impact. Our ESG efforts are aligned with the ESRS standards—ESRS 2, E1, E5, S1, and G1—with a clear focus on continuous improvement. CO₂ Emissions and Energy Use As part of our strategic priorities, we have identified CO₂ emissions as our most significant environmental risk and we are actively working to reduce our climate footprint. Our production processes are energy-intensive. The electricity used is currently sourced mainly from non-renewable sources, resulting in substantial Scope 2 emissions. In the coming years, we will transition to renewable energy by exploring and implementing solutions such as direct agreements with energy providers. These initiatives support our long-term commitment to sustainable energy sourcing and will be aligned with our overall corporate objectives Hydrogen (H₂) Supply Transition Hydrogen plays a key role in our manufacturing process. Production of H₂ itself can lead to indirect CO₂ emissions. During the past year, we successfully transitioned our hydrogen supply to a provider in Esbjerg, where hydrogen is produced via electrolysis powered by renewable energy. This change is a significant step toward reducing the indirect emissions associated with our operations. Waste and Packaging Management Our production generates waste, including glass residues and chemical by-products. We are working to improve waste handling and reduce the environmental impact of our packaging. Initiatives underway include: • Continuous focus on increasing yield to reduce scrap and waste. • Recovering and reusing valuable materials from production, including Germanium. • Reducing packaging volumes to minimize material use. • Introducing reusable plastic reels to decrease single-use packaging. • Standardizing packaging for modules to improve recyclability and resource efficiency. Anti-corruption and bribery There may be a risk that employees unjustifiably give gifts or other means to unjustly influence a stakeholder. This could have consequences for the Company’s reputation. The Company has a zero-tolerance policy on corruption and bribery and actively works to counter this through employee training. We will continue doing so in the coming year. The Company issues its guidelines to employees regarding anti-corruption and bribery. Furthermore, the company convenes yearly training in anti-corruption and bribery policies, and the policies are updated and available to all employees. The Company is not aware of any violations regarding corruption and bribery in Lightera Denmark ApS in 2024/25 and we believe that the current actions taken in order to prevent corruption and bribery by Lightera Denmark is sufficient. The company has a Whistleblower hotline for all to report any concerns or complaints about possible violations of law or of the company’s code of conduct, human rights etc. Throughout the financial year 2024/25 we have had 0 reports though the Whistleblowers hotline. Governance and Management Systems Our Quality Management System is certified under ISO 9001 (re-certified in 2025). Health, Safety, and Environmental (HSE) practices are governed by Danish and European legislation and inspired by the principles of ISO 14001 and ISO 45001. We have steadily progressed in aligning our systems with these standards. Due to restricted resources, we have postponed our commitment to achieving formal certification to 2025–2026. Statement on data ethics cf. Danish Financial Statements Act 99d Lightera Denmark ApS has a written ‘databeskyttelsespolitik’, as part of our overall quality system. The policy complies with both Danish and EU law on data and privacy protection. The policy describes the rules and principles for handling personal and other data. All employees sign in with the employment policy. The policy is evaluated regular to ensure compliance with Danish and EU law. Based on the above and the level of data that we work with, we have not found it necessary to develop a specific policy around data ethics. 589811000 493352000 350017000 339949000 239793000 153403000 16397000 11501000 51149000 37758000 172248000 104144000 16207000 82764000 738000 541000 4022000 18053000 2724000 0 189015000 204420000 41595000 46371000 147420000 158049000 23696000 15980000 1385000 1263000 13466000 15580000 2665000 4212000 52430000 63734000 93642000 100769000 93642000 100769000 83722000 86666000 56150000 55722000 266449000 343571000 3996000 2100000 3519000 0 3799000 1685000 333913000 403078000 40844000 11492000 458479000 501236000 552121000 602005000 26000000 26000000 340086000 267666000 0 150000000 366086000 443666000 34119000 34119000 34119000 34119000 44909000 54198000 2106000 2106000 47015000 56304000 38130000 20650000 3970000 4571000 9332000 9578000 24127000 13551000 29342000 19566000 104901000 67916000 151916000 124220000 552121000 602005000 26000000 267666000 150000000 443666000 0 0 150000000 150000000 75000000 -75000000 0 0 75000000 75000000 0 147420000 0 147420000 0 0 0 0 26000000 340086000 0 366086000 20252024kDKKkDKK1. RevenueGeographical segmentsRevenue, Denmark 7,106 6,200 Revenue, exports 582,705 487,152 589,811 493,352 Business segments Goods for resale 13,312 22,965 Own production 573,518 469,269 License 1,490 1,118 589,811 493,352 2. StaffWages and Salaries 123,789 114,054 Pensions 16,867 17,613 Other social security expenses 1,807 1,559 142,463 133,225 Wages and Salaries, pensions and other social expenses are recognizedin the following items:Cost of sales 104,093 107,566 Distribution expenses 10,456 10,021 Administrative expenses 27,915 15,638 142,463 133,225 Including remuneration to the Executive Board 2,154 3,943 189 190 3. Other operating income and expensesGain related to sale of business activities - 63,533 Other operating income 16,207 19,231 Other operating expenses -738 -540 15,469 82,224 4. Financial itemsFinancial incomeInterest from group enterprices 3,582 9,801 Other financial income 440 664 Exchange rate gains - 7,588 4,022 18,053 Financial expensesOther financial expenses 1,364 - Exchange rate losses 1,360 - 2,724 - 5. Tax on profit/loss for the yearCurrent tax for the year 43,591 36,333 Deferred tax for the year -1,892 8,684 Adjustment deferred tax for previous years -100 2,216 Adjustment of tax concerning previous years -4 -862 41,595 46,371 Tax on profit/loss for the year is calculated as follows:Calculated 22% tax on profit/loss for the year before tax 41,583 44,975 Tax effect of:Tax on non-deducticle expenses and non-taxable income 12 42 Adjustment deferred tax for previous years - 2,216 Adjustment of tax concerning previous years - -862 41,595 46,371 6. Property, plant and equipment Other fixtures Property, plant and fittings, and Plant and tools and Leasehold equipment in Right of use machineryequipmentimprovementsprogressassetsTotalkDKK kDKK kDKK kDKK kDKK kDKKCost at 1 April 522,310 6,154 337,144 4,212 74,846 944,666 Modifications 3,277 -1,271 -931 0 5,075 6,150 Additions for the year 6,738 476 46 2,665 9,925 Transfers for the year 4,212 -4,212 - Reclassifications 141 -141 - Cost at 31 March 536,678 5,359 336,117 2,665 79,921 960,741 Depreciation at 1 April 506,330 4,891 321,564 - 11,112 843,897 Modifications 1,331 -1,271 542 0 5,549 6,150 Depreciation for the year 5,321 354 546 10,831 17,052 Reclassifications - Depreciation at 31 March 512,982 3,974 322,651 0 27,491 867,099 Carrying amount at 31 March 23,696 1,385 13,466 2,665 52,430 93,642 20252024kDKKkDKKDepreciation and impairment of property, plant and equipment assets are recognized in the following items:Cost of sales 17,052 14,480 17,052 14,480 7. InventoriesRaw materials and consumables 49,107 37,573 Work in Progress - 355 Finished goods and goods for resale 34,615 48,738 83,722 86,666 8. Deferred tax assetDeferred tax asset at 1 April 2,100 13,000 Amount recognised in the income statement for the year 1,892 -8,684 Adjustment deferred tax prior year 4 -2,216 Deferred tax asset at 31 March 3,996 2,100 9. Prepayments Prepayments consist of prepaid expenses concerning rent, insurance premiums, subscriptions and interest. 10. Equity The share capital consists of 26,000 shares of a nominal value of KDKK 1,000. No shares carry any special rights. 13. Contingent assets, liabilities, and other financial obligations rdThe Company has provided bank guarantees in favor of 3 parties of total kDKK 38,158 (2024: KDKK 33,037). 20252024kDKKkDKK11. Other provisionsOther provisions 34,119 34,119 34,119 34,119 147420000 158049000 14. Related parties Controlling interest Basis Furukawa Electric Co., Tokyo, Japan Ultimate controlling shareholder Lightera, LLC, Norcross, USA Immediate controlling shareholder Other related parties Jane Lusa Cercena Chairman of the Board Richard Steve Allen Member of the Board Nobuaki Orita Member of the Board Tommy Geisler Member of the Board Michael F. Pedersen Member of the Board Transactions During the year, the Company had the following transactions with its ultimate Parent Company and its subsidiaries: Corporate allocation fee for the year amounts to kDKK 15,863 (2024: kDKK 15,847). Purchase of goods from associates, kDKK 14,439 (2024: kDKK 27,915) Sales of goods to group enterprises, kDKK 342,962 (2024: kDKK 229,792) Receivables from group enterprises, kDKK 266,449 (2024: kDKK 343,571) Payable to group enterprises, kDKK 3,970 (2024: kDKK 4.571) Consolidated Financial Statements The Company is included in the Group Annual Report of the Parent Company of the largest and smallest group: Name Place of registered office Furukawa Electric Co., Ltd. Japan Lightera, LLC, Norcross, USA USA The Group Annual Report of Furukawa Electric Co., Ltd. May be obtained at the following address: Furukawa Electric Co., Ltd. 6-1, Marunouchi, 2-chome, Chiyoda-ku Tokyo 10-8322 Japan The Group Annual Report of Lightera, LLC, Norcross, USA may be obtained at the following address: Lightera, LLC 200 Northeast Expressway Norcross, GA 30071 USA 2025202415. Fee to auditors appointed at the general meetingkDKKkDKKDeloitteAudit fee 521 591 521 591 16. Accounting Policies The Annual Report of Lightera Denmark ApS for 2024/25 has been prepared in accordance with the provisions of the Danish Financial Statements Act applying to large enterprises of reporting class C. The Financial Statements for 2024/25 are presented in kDKK. Recognition and measurement The Financial Statements have been prepared under the historical cost method. Revenues are recognized in the income statement as earned. Furthermore, value adjustments of financial assets and liabilities measured at fair value or amortized cost are recognized. Moreover, all expenses incurred to achieve the earnings for the year are recognized in the income statement, including depreciation, amortization, impairment losses and provisions as well as reversals due to changed accounting estimates of amounts that have previously been recognized in the income statement. Assets are recognized in the balance sheet when it is probable that future economic benefits attributable to the asset will flow to the Company, and the value of the asset can be measured reliably. Liabilities are recognized in the balance sheet when it is probable that future economic benefits will flow out of the Company, and the value of the liability can be measured reliably. Assets and liabilities are initially measured at cost. Subsequently, assets and liabilities are measured as described for each item below. Certain financial assets and liabilities are measured at amortized cost, which involves the recognition of a constant effective interest rate over the maturity period. Amortized cost is calculated as original cost less any repayments and with addition/deduction of the cumulative amortization of any difference between cost and the nominal amount. In this way, capital losses and gains are allocated over the maturity period. Recognition and measurement consider predictable losses and risks occurring before the presentation of the Annual Report which confirm or invalidate affairs and conditions existing at the balance sheet date. Leases Under IFRS 16, leases are recognized by recording a right-of-use asset and a corresponding lease liability at the commencement date, with both amounts measured on a present value basis. The lease liability reflects the net present value of lease payments, including fixed payments (and those that are, in substance, fixed), less any lease incentives receivable. It further encompasses variable lease payments based on an index or rate, where the amounts are initially measured using the index or rate at commencement. Translation policies Danish kroner is used as the presentation currency. All other currencies are regarded as foreign currencies. Transactions in foreign currencies are translated at the exchange rates at the dates of transaction. Exchange differences arising due to differences between the transaction date rates and the rates at the dates of payment are recognized in financial income and expenses in the income statement. Where foreign exchange transactions are considered hedging of future cash flows, the value adjustments are recognized directly in equity. Receivables, payables and other monetary items in foreign currencies that have not been settled at the balance sheet date are translated at the exchange rates at the balance sheet date. Any differences between the exchange rates at the balance sheet date and the rates at the time when the receivable or the debt arose are recognized in financial income and expenses in the income statement. Fixed assets acquired in foreign currencies are measured at the transaction date rates. Hedge accounting Changes in the fair values of financial instruments that are designated and qualify as fair value hedges of a recognized asset, or a recognized liability are recognized in the income statement as are any changes in the fair value of the hedged asset or the hedged liability related to the hedged risk. instruments that are designated and qualify as hedges of expected future transactions are recognized in retained earnings under equity as regards the effective portion of the hedge. The ineffective portion is recognized in the income statement. If the hedged transaction results in an asset or a liability, the amount deferred in equity is transferred from equity and recognized in the cost of the asset or the liability, respectively. If the hedged transaction results in an income or an expense, the amount deferred in equity is transferred from equity to the income statement in the period in which the hedged transaction is recognized. The amount is recognized in the same item as the hedged transaction. Changes in the fair values of financial instruments that are designated and qualify as hedges of net investments in independent foreign subsidiaries or associates are recognized directly in equity as regards the effective portion of the hedge, whereas the ineffective portion is recognized in the income statement. Segment information on revenue Information on business segments and geographical segments based on the Company’s risks and returns and its internal financial reporting system. Business segments are regarded as the primary segments. Income Statement Revenue The revenue is following the rules of IFRS15, and this has changed in the financial year 2023/24. Revenue from the sale of goods is recognized when the risks and rewards relating to the goods sold have been transferred to the purchaser, the revenue can be measured reliably, and it is probable that the economic benefits relating to the sale will flow to the Company. Services are recognized at the rate of completion of the service to which the contract relates by using the percentage-of-completion method, which means that revenue equals the selling price of the service completed for the year. This method is applied when total revenues and expenses in respect of the service and the stage of completion at the balance sheet date can be measured reliably, and it is probable that the economic benefits, including payments, will flow to the Company. The stage of completion is determined based on the ratio between the expenses incurred and the total expected expenses of the service. Revenue is measured at the consideration received and is recognized exclusive of VAT and net of discounts relating to sales. Cost of sales Cost of sales comprises costs incurred to achieve revenue for the year. Cost comprises raw materials, consumables, direct labor costs and indirect production costs such as maintenance and depreciation, etc., as well as operation, administration and management of factories. Cost of sales also includes research and development costs that do not qualify for capitalization as well as amortization of capitalised development costs. Furthermore, amortization of goodwill is included to the extent that goodwill relates to production activities. Finally, provisions for losses on contract work are recognized. Distribution expenses Distribution expenses comprise costs in the form of salaries to sales and distribution staff, advertising and marketing expenses as well as operation of motor vehicles, depreciation, etc. Amortization of goodwill is also included to the extent that goodwill relates to distribution activities. Administrative expenses Administrative expenses comprise expenses for Management, administrative staff, office expenses, depreciation, etc. Amortization of goodwill is also included to the extent that goodwill relates to administrative activities. Other operating income and expenses Other operating income and other operating expenses comprise items of a secondary nature to the main activities of the Company, including gains and losses on the sale of intangible assets and property, plant and equipment. Financial income and expenses Financial income and expenses are recognized in the income statement at the amounts relating to the financial year. Tax on profit/loss for the year Tax for the year consists of current tax for the year and changes in deferred tax for the year. The tax attributable to the profit for the year is recognized in the income statement, whereas the tax attributable to equity transactions is recognized directly in equity. The Company was jointly taxed with wholly owned Danish and foreign subsidiaries. The tax effect of the joint taxation is allocated to enterprises in proportion to their taxable incomes. Balance Sheet Property, plant and equipment Property, plant and equipment are measured at cost less accumulated depreciation and less any accumulated impairment losses. Cost comprises the cost of acquisition and expenses directly related to the acquisition up until the time when the asset is ready for use. In the case of assets of own construction, cost comprises direct and indirect expenses for labor, materials, components and sub-suppliers. Interest expenses on loans raised directly for financing the construction of property, plant and equipment are recognized in cost over the period of construction. All indirectly attributable borrowing expenses are recognized in the income statement. Depreciation based on cost reduced by any residual value is calculated on a straight-line basis over the expected useful lives of the assets, which are: Plant and machinery 3-15 years Other fixtures and fittings, tools and equipment 3-5 years Leasehold improvements 7-15 years The depreciation period and residual value are reassessed annually. Impairment of fixed assets The carrying amounts of intangible assets and property, plant and equipment are reviewed on an annual basis to determine whether there is any indication of impairment other than that expressed by amortization and depreciation. If so, the asset is written down to its lower recoverable amount. Inventories Inventories are measured at the lowest of cost under the FIFO method and net realizable value. The net realization value of inventories is calculated at the amount expected to be generated by sale of the inventories in the process of normal operations with deduction of selling expenses. The net realizable value is determined allowing for marketability, obsolescence and development in expected selling price. The cost of goods for resale, raw materials and consumables equals landed cost. The cost of finished goods and work in progress comprises the cost of raw materials, consumables and direct labor with addition of indirect production costs. Indirect production costs comprise the cost of indirect materials and labor as well as maintenance and depreciation of the machinery, factory buildings and equipment used in the manufacturing process as well as costs of factory administration and management. Receivables Receivables are recognized in the balance sheet at amortized cost, which substantially corresponds to nominal value. Provisions for estimated bad debts are made. Prepayments Prepayments comprise prepaid expenses concerning rent, insurance premiums, subscriptions and interest. Provisions Provisions are recognized when - in consequence of an event occurring before or on the balance sheet date - the Company has a legal or constructive obligation, and it is probable that economic benefits must be given up settling the obligation. Deferred tax assets and liabilities Deferred income tax is measured using the balance sheet liability method in respect of temporary differences arising between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes based on the intended use of the asset and settlement of the liability, respectively. Deferred tax assets are measured at the value at which the asset is expected to be realized, either by elimination in tax on future earnings or by set-off against deferred tax liabilities within the same legal tax entity. Deferred tax is measured based on the tax rules and tax rates that will be effective under the legislation at the balance sheet date when the deferred tax is expected to crystallize as current tax. Any changes in deferred tax due to changes to tax rates are recognized in the income statement or in equity if the deferred tax relates to items recognized in equity. Current tax receivables and liabilities Current tax liabilities and receivables are recognized in the balance sheet as the expected taxable income for the year adjusted for tax on taxable incomes for prior years and tax paid on account. Extra payments and repayment under the on-account taxation scheme are recognized in the income statement in financial income and expenses. Financial debts Debts are measured at amortized cost, substantially corresponding to nominal value. Explanation of financial ratios Gross margin Gross profit x 100 Revenue Profit margin Profit before financials x 100 Revenue Return on assets Profit before financials x 100 Total assets Solvency ratio Equity at year end x 100 Total assets Return on equity Net profit for the year x 100 Average equity true Cash flow statement With reference to section 86(4) of the Danish Financial Statements Act and to the cash flow statement included in the consolidated financial statements of Furukawa Electric Co., Ltd., Japan, the Company has not prepared a cash flow statement. Annual report Auditor's report on audited financial statements ParsePort XBRL Converter 2024-04-01 2025-03-31 2023-04-01 2024-03-31 2025-09-02 Oliver Machholdt Reporting class C, large enterprise 2025-09-02 25305639 Lightera Denmark ApS Priorparken 680 2605 Brøndby Opinion Basis for Opinion 2025-09-02