Årsrapport 30700228 EY Godkendt Revisionspartnerselskab Bavnehøjvej 5 6700 Esbjerg 2021-01-01 2021-12-31 2020-01-01 2020-12-31 2022-03-17 37799564 BPI Finans ApS Lysholt Allé 10 6711 Vejle 2016-06-13 Vejle EY Godkendt Revisionspartnerselskab 30700228 Bavnehøjvej 5 6700 Esbjerg Danmark +45 73 23 30 00 2022-06-13 Thomas Hougaard Bonde Regnskabsklasse C, stor virksomhed Revisionspåtegning Grundlag for konklusion Konklusion true 2022-03-17 2022-03-17 CaseWare Working Papers Vejle Thomas Hougaard Bonde Esbjerg Morten Østergaard Koch Dan Mose Andersen State Authorised Public Accountant mne35420 State Authorised Public Accountant mne35406 276526000 304910000 282452000 64190000 79781000 64836000 48245000 32946000 17340000 31204000 15715000 Earnings before interest, taxes, depreciation and amortisation (EBITDA) Earnings before interest, taxes, depreciation and amortisation (EBITDA) Earnings before interest, taxes, depreciation and amortisation (EBITDA) Earnings before interest, taxes, depreciation and amortisation (EBITDA) Earnings before interest, taxes, depreciation and amortisation (EBITDA) -222000 14607000 788000 -1860000 -2175000 -3033000 -3321000 -2244000 -2109000 7676000 -397000 188144000 212516000 223807000 -16109000 -11979000 -6754000 -9206000 -9860000 57063000 61755000 55136000 10.3 6.2 -0.1 4.8 0.3 15.2 12.6 6.3 10.2 5.6 EBITDA-margin EBITDA-margin EBITDA-margin EBITDA-margin EBITDA-margin 17.1 8.1 -0.1 6.9 0.4 31.2 16.5 0 0 0 431 491 486 317275000 260542000 0 0 231432000 191134000 0 0 85843000 69408000 0 0 32661000 32062000 0 0 19367000 21878000 40000 36000 32000 3011000 0 0 1282000 2413000 0 0 32565000 16066000 -40000 -36000 0 0 21544000 8166000 750000 482000 679000 2438000 2610000 2657000 218000 543000 30705000 13891000 21965000 10025000 5792000 3575000 96000 409000 24913000 10316000 21869000 9616000 -3044000 -700000 10316000 499000 1852000 0 0 991000 1566000 0 0 25053000 27747000 0 0 26543000 31165000 0 0 48128000 49755000 0 0 38501000 40832000 0 0 3748000 470000 0 0 4381000 0 0 0 94758000 91057000 0 0 0 0 80149000 59232000 0 0 0 24990000 0 0 80149000 84222000 121301000 122222000 80149000 84222000 20449000 15723000 0 0 12721000 11432000 0 0 33170000 27155000 0 0 30423000 25886000 0 0 773000 320000 0 0 898000 233000 0 0 0 0 4157000 0 200000 126000 0 0 1470000 2168000 0 0 33764000 28733000 4157000 0 13425000 16616000 1605000 3261000 80359000 72504000 5762000 3261000 201660000 194726000 85911000 87483000 150000 150000 150000 150000 0 0 31368000 10451000 -3295000 -2511000 0 0 0 -157000 0 0 81257000 61888000 46594000 48769000 2500000 0 2500000 0 11324000 8368000 0 0 91936000 67738000 80612000 59370000 7198000 6741000 0 0 7198000 6741000 0 0 24307000 25868000 0 0 7956000 4811000 0 0 0 27083000 0 27083000 32263000 57762000 0 27083000 3202000 2519000 0 0 32186000 25755000 0 0 19903000 16047000 0 0 4428000 1849000 4403000 285000 0 0 867000 716000 10544000 16315000 29000 29000 70263000 62485000 5299000 1030000 102526000 120247000 5299000 28113000 201660000 194726000 85911000 87483000 150000 -2511000 -157000 61888000 0 8368000 0 0 19369000 2500000 3044000 0 784000 0 0 110000 157000 0 22000 150000 -3295000 0 81257000 2500000 80612000 11324000 150000 10451000 48769000 0 21544000 -2175000 2500000 0 627000 0 0 150000 31368000 46594000 2500000 24913000 10316000 24336000 25026000 -12027000 3680000 37222000 39022000 750000 482000 2610000 2657000 3875000 1477000 31487000 35370000 222000 798000 10829000 6338000 38000 1538000 -11013000 -5598000 30097000 2728000 0 3320000 -6432000 14661000 -23665000 -14069000 -3191000 15703000 16616000 913000 13425000 16616000 70799000 67577000 0 0 11540000 11035000 0 0 2224000 2058000 0 0 1251000 1531000 0 0 85814000 82201000 0 0 401 404 0 0 4844000 5724000 0 0 10836000 11156000 0 0 15680000 16880000 0 0 15680000 16880000 0 0 0 0 679000 2438000 750000 482000 0 0 185000 535000 185000 535000 2425000 2122000 33000 8000 7427000 378000 96000 409000 -678000 1990000 0 0 -957000 1207000 0 0 5792000 3575000 96000 409000 11947000 9813000 44373000 0 -2000 0 0 222000 0 7310000 3638000 0 4637000 6395000 44373000 10095000 8247000 16626000 0 -2000 0 1353000 797000 2694000 -7310000 -3638000 0 4138000 5404000 19320000 499000 991000 25053000 84005000 128603000 4917000 0 -563000 -429000 0 0 916000 7195000 3617000 4381000 0 19861000 1709000 0 84358000 115508000 6825000 4381000 34250000 87771000 4447000 0 -174000 -288000 0 0 2154000 8343000 339000 0 0 -18746000 -1709000 0 0 73000 0 0 36230000 77007000 3077000 0 48128000 38501000 3748000 4381000 12737000 48781000 24990000 0 679000 0 25669000 48781000 0 10451000 0 21544000 -627000 0 80149000 0 Bramming Plast-Industri Holding ApS Bramming 87.62 150000 100000 100000 100000 0 50000 0 0 150000 150000 100000 100000 6421000 8047000 0 0 6425000 6421000 0 0 324000 743000 0 0 7295000 6973000 0 0 311000 397000 0 0 414000 476000 0 0 0 -51000 0 0 -1908000 -910000 0 0 0 -1207000 0 0 -11000 0 0 0 25807000 1500000 24307000 18309000 9659000 1703000 7956000 159000 185000 136000 20000 148000 56000 63000 2500000 0 21544000 0 -2175000 9616000 15680000 16908000 -1004000 -2368000 -750000 -482000 -2610000 -2657000 5792000 3575000 6015000 -713000 -4594000 -4360000 1418000 -7327000 13425000 16616000 Today, the Executive Board has discussed and approved the annual report of BPI Finans ApS for the financial year 1 January - 31 December 2021. The annual report is prepared in accordance with the Danish Financial Statements Act. In my opinion, the consolidated financial statements and the parent company financial statements give a true and fair view of the financial position of the Group and the Company at 31 December 2021 and of the results of the Group's and the Company's operations and of the consolidated cash flows for the financial year 1 January - 31 December 2021. Further, in my opinion, the Management's review gives a fair review of the development in the Group's and the Company's operations and financial matters and the results of the Group's and the Company's operations and financial position. I recommend that the annual report be approved at the annual general meeting. To the shareholders of BPI Finans ApS We have audited the consolidated financial statements and the parent company financial statements of BPI Finans ApS for the financial year 1 January - 31 December 2021, which comprise income statement, balance sheet, statement of changes in equity and notes, including accounting policies, for the Group and the Parent Company, and a consolidated cash flow statement. The consolidated financial statements and the parent company financial statements are prepared in accordance with the Danish Financial Statements Act. In our opinion, the consolidated financial statements and the parent company financial statements give a true and fair view of the financial position of the Group and the Parent Company at 31 December 2021, and of the results of the Group's and Parent Company's operations as well as the consolidated cash flows for the financial year 1 January - 31 December 2021 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 consolidated financial statements and the parent Company financial statements" (herinafter collectively referred to as "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 Group in accordance with the International Ethics Standards Board for Accountants' 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 consolidated financial statements and parent company 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 Group's and the Parent 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 Group or the Parent 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 Group's and the Parent 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 Group's and the Parent 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 Group and the Parent 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. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. 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 Statements Act. We did not identify any material misstatement of the Management's review. For terms and definitions, please see the accounting policies. BPI Finans ApS is, via Bramming Plast Industri Holding ApS, the majority shareholder of Bramming Plast-Industri A/S (BPI). BPI aspires to be a value adding industrial partner – specializing in customer specific solutions, offering unique value propositions within four main applications areas; Insulation, Acoustic, vibration and comfort. Manufacturing takes place at the plants in Bramming and in the subsidiary in Poland. Sales & marketing is handled by the sales department in Denmark. No unusual circumstances occurred during the year. Production and sales were only to a limited degree affected by the COVID-19 pandemic. In 2019 the group launched a new strategy with a clear vision of creating fully sustainable customer solutions supported by both industrial and scalable processes. The BPI continuous Improvement program secured a positive impact throughout the value chain, resulting in a positive development in both revenue and earnings. The group realised an increasing revenue of DKK 317,275 thousand and an increasing gross profit of DKK 85,843 thousand. The Group's income statement for 2021 showed a profit of DKK 24,913 thousand, and the Group's balance sheet at 31 December 2021 showed equity of DKK 91,936 thousand. Management finds results for 2021 to be satisfactory and in line with previous expectation as communicated on the 2020 Annual report. Due to its operations, investments and financing, the Group is exposed to changes in exchange rates interest rates. The Group is especially exposed to exchange rates between DKK/EUR and PLN due to the production facilities in Poland. At 31 December 2021, the Group's net interest-bearing debt constituted a total of DKK 54,226 thousand (2020: DKK 42,337 thousand), which is assessed to be a reasonable level compared to the actual need for financial flexibility. The Group manages the financial risks by evaluation the risks and if deemed relevant due to the risk utilize hedging instruments, such a currency hedging. At year-end 2021, no such instruments were deemed relevant. Group's Management manage the Groups cash position, including relevant new funding and placement of excess liquidity. The group’s credit risks relate to trade receivables included in the balance sheet. The group has no vital risks related to a single customer or business partner. The company’s credit risk policy involves assessing creditworthiness of all major customers and business partners. This is done on a regular basis. The Group carries on development activities on an ongoing basis regarding both new as well as existing products. For Statutory Statement on Corporate Social Responsibility for the financial year 1 January – 31 December 2021, cf. section 99a, b and d in the Danish Financial Statement Act, please see the Environment, Social & Governance Report 2021 on https://bpi.dk/wp-content/uploads/sites/191/2022/03/ESG-report-2021-BPI-Finans-ApS.pdf. The report covers the time period 1 January - 31 December 2021. Code of conduct and CSR policy are also available on www.bpi.dk. Despite the current situation in Ukraine, no events have occurred after the balance sheet date, which may materially affect the assessment of the Company's financial position. The group has built a solid performance driven platform and continuously develops initiatives for growth in a combined sales -and supply chain strategy. We strive to realize the growth potential in industrial and sustainable solutions, building customer integration and strategic partnerships. Earnings in 2022 are expected in the range of DKK 57 million to DKK 60 million. The annual report of BPI Finans ApS for 2021 has been prepared in accordance with the provisions in the Danish Financial Statements Act applying to large reporting class C entities. 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). The consolidated financial statements comprise the parent company, BPI Finans ApS, and the entities over which the parent company has control. Control is assumed to exist where the parent company, directly or indirectly, owns more than half of the voting rights in a business. Control may also exist via agreement or articles of association or because the parent company in some other way has or actually exercises control in a subsidiary. The existence and impact of potential voting rights that are actually exercisable or convertible are taken into account when assessing whether control exists. The financial statements of the consolidated enterprises have been prepared in accordance with the parent company's accounting policies. The consolidated financial statements are prepared based on the consolidated enterprise's financial statements by aggregating similar financial statement items. Intragroup income, expenses, gains, losses, ownership interest, dividends and balances are eliminated. Investments in consolidated enterprises are set off against the proportionate share of the consolidated enterprise’s fair value of net assets and liabilities at the acquisition date. Newly acquired and sold subsidiaries are recognised in the consolidated income statement for the period during which control existed. Comparative figures are not restated for acquisitions or disposals. For acquisitions of subsidiaries, the purchase method is used. Cost is measured at net present value of the agreed consideration with the addition of directly attributable costs. Conditional payments are recognised at the amount expected to be paid. Identifiable assets and liabilities of the enterprises acquired are recognised at fair value at the acquisition date. Restructuring costs that relate to the enterprise taken over, are recognised provided that the restructuring had been decided at the acquisition date. The tax effect of the restatement of assets and liabilities is taken into consideration. Any remaining difference between cost and the Group's share of fair value of the identifiable assets and liabilities is recognised as goodwill or negative goodwill. On initial recognition, non-controlling interests are measured at the fair value of the non-controlling interests' equity interest. Goodwill relating to the non-controlling interests' share of the acquiree is recognised. 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. Income from the sale of goods for resale and finished goods is recognised in revenue when delivery and transfer of risk have taken place and provided the income can be reliably measured and is expected to be received. Revenue is measured at the fair value of the agreed consideration excluding VAT and taxes charged on behalf of third parties. All discounts and rebates granted are recognised in revenue. Production costs comprise costs incurred in generating the revenue for the year. Such costs include direct and indirect costs of raw materials, consumables and production staff, rent and leases, as well as depreciation on production plant. Production costs also comprise research and development costs that do not qualify for capitalisation and amortisation of capitalised development costs. Also, provision for losses on construction contracts is recognised. Distribution costs comprise costs related to the distribution of goods sold in the year and to sales campaigns, etc. carried out in the year, including costs related to sales staff, advertising, exhibitions and amortisation/depreciation. Sales and marketing costs are recognised in the income statement when the Company obtains control of the sales or marketing product. Administrative expenses include expenses incurred in the year for company management and administration, including expenses relating to administrative staff, Management, office premises and expenses as well as amortisation/depreciation of assets used for administrative purposes. Other operating income and operating expenses comprise items of a secondary nature relative to the Company's core activities, including gains or losses on the sale of fixed assets. The item comprises amortisation/depreciation of intangible assets and property, plant and equipment. The cost net of the expected residual value for completed development projects and acquired IP rights is amortised over the expected useful life. Acquired IP rights include patents, rights and licences. Goodwill is amortised/depeciated over the expected economic life of the asset, measured by reference to Management’s experience in the individual business segments. Goodwill is amortised on a straight-line basis over the amortisation period. The maximum amortisation period for goodwill is ten years for enterprises with strong market positions and long-term earnings profiles. The basis of amortisation, which is calculated as cost less any residual value, is amortised 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 Acquired intangible assets 3-10 years Goodwill 10-15 years The basis of depreciation, which is calculated as cost less any residual value, is depreciated on a straight line basis over the expected useful life. The expected useful lives of the assets are as follows: Land and buildings 20-40 years Plant and machinery 3-10 years Other fixtures and fittings, tools and equipment 3-5 years A proportionate share of the underlying entities' profit/loss after tax is recognised in the income statement according to the equity method. Shares of profit/loss after tax in subsidiaries are presented as separate line items in the income statement. Full elimination of intra-group gains/losses is made for equity investments in subsidiaries. The proportionate share of the individual subsidiaries' profit/loss after tax after full elimination of internal gains/losses are recognised in the parent company's income statement. 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. The parent company is covered by the Danish rules on mandatory joint taxation of the Group's Danish subsidiaries. Subsidiaries are included in the joint taxation arrangement from the date at which they are included in the consolidated financial statements and up to the date when they are no longer consolidated. The parent company acts as management company for the joint taxation arrangement and consequently settles all corporate income tax payments with the tax authorities. On payment of joint taxation contributions, the Danish corporate income tax charge is allocated between the jointly taxed entities in proportion to their taxable income. Entities with tax losses receive joint taxation contributions from entities that have been able to use the tax losses to reduce their own taxable income. Tax for the year, which comprises the current income tax charge, joint taxation contributions and deferred tax adjustments, including adjustments arising from changes in tax rates, is recognised in the income statement as regards the portion that relates to the profit/loss for the year and directly in equity as regards the portion that relates to entries directly in equity. Goodwill is amortised over the expected economic life of the asset, measured by reference to Management’s experience in the individual business segments. Goodwill is amortised on a straight-line basis over the amortisation period. The maximum amortisation period for goodwill is ten years for enterprises with strong market positions and long-term earnings profiles. Goodwill is measured at cost less accumulated amortisation and impairment losses. Other intangible assets include development projects and other acquired intangible rights, including software licences, distribution rights and development projects. Other intangible assets are measured at cost less accumulated amortisation and impairment losses. 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. Property, plant and equipment Items of property, plant and equipment are measured at cost less accumulated depreciation and impairment losses. Cost includes the acquisition price and costs directly related to the acquisition until the time at which the asset is ready for use. On initial recognition, leases for assets that transfer substantially all the risks and rewards incident to the ownership to the Company (finance leases) are measured in the balance sheet at the lower of fair value and the present value of the future lease payments. In calculating the net present value, the interest rate implicit in the lease or the incremental borrowing rate is used as the discount factor. Assets held under finance leases are subsequently accounted for in the same way as the Company's other assets. The capitalised residual lease liability is recognised in the balance sheet as a liability, and the interest element of the lease payment is recognised in the income statement over the term of the lease. 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 subsidiaries and associates are measured according to the equity method. Equity investments in joint ventures are also measured according to the equity method in the consolidated financial statements. On initial recognition, equity investments in subsidiaries 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 subsidiaries measured at net asset value are subject to impairment test requirements if there is any indication of impairment. The carrying amount of intangible assets, property, plant and equipment and investments in subsidiaries and associates 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. Inventories are measured at cost in accordance with the FIFO method. Where the net realisable value is lower than cost, inventories are written down to this lower value. The net realisable value of inventories is calculated as the sales amount less costs of completion and expenses required to effect the sale and is determined taking into account marketability, obsolescence and development in the expected selling price. The cost of raw materials and consumables comprises the cost of acquisition plus delivery costs. The cost of finished goods and work in progress includes the cost of raw materials, consumables, direct labour and indirect production overheads. Indirect production overheads include the indirect cost of material and labour as well as maintenance and depreciation of production machinery, buildings and equipment and expenses relating to plant administration and management. Borrowing costs are not recognised in the sales price. Receivables are measured at amortised cost. The Company has chosen IAS 39 as interpretation for impairment of financial receivables. 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 comprise 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 subsidiaries 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. 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 subsidiaries 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. Hedging reserve The hedging reserve comprises the cumulative net change in the fair value of hedging transactions that qualify for recognition as a cash flow hedge and where the hedged transaction has not yet been realised. The reserve is dissolved when the hedged transaction is realised, if the hedged cash flows are no longer expected to be realised or if the hedging relationship is no longer effective. The reserve does not represent a limitation under company law and may therefore be negative. 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. 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. Lease liabilities Lease liabilities are measured at the net present value of the remaining lease payments including any guaranteed residual value based on the interest rate implicit in the lease. Deferred income Deferred income recognised as a liability comprises payments received concerning income in subsequent financial reporting years. The cash flow statement shows the Company's net cash flows broken down according to operating, investing and financing activities, the year's changes in cash and cash equivalents as well as the cash and cash equivalents at the beginning and the end of the year. Cash flows from operating activities are calculated as the profit/loss for the year adjusted for non cash operating items, changes in working capital and paid corporate income tax. Cash flows from investing activities comprise payments in connection with acquisitions and disposals of entities and activities and of intangible assets, property, plant and equipment and investments. Cash flows from financing activities comprise changes in the size or composition of the Company's share capital and related expenses as well as raising of loans, repayment of interest bearing debt and payment of dividends to shareholders. Cash and cash equivalents comprise cash, short term bank loans and short term securities which are readily convertible into cash and which are subject only to insignificant risks of changes in value. The allocation of revenue to activities and geographical markets is disclosed where these activities and markets differ significantly in the organisation of sales of goods and services. The financial ratios stated under "Financial highlights" have been calculated as follows: Operating profit/loss Profit/loss before financial items adjusted for other operating income and other operating expenses Operating margin Operating profit (EBIT) x 100 Revenue EBITDA-margin Earnings before interest, taxes and amortisations (EBITDA) x 100 Revenue Return on assets Profit/loss from operating activites x 100 Average assets Return on equity Profit/loss for the year after tax ex. non-controlling interests x 100 Average equity excl. non-controlling interests EBITDA is calculated as earnings before interest, taxes, depreciation, amortization and gains or losses on the sale of fixed assets. As the Group's products, services and costumers are within the same segment and legal environment no segment information is disclosed. Geographically the revenue is segmented into domestic DKK 124,641 thousands (2020: DKK 114,804 thousands), EU DKK 178,296 thousands (2020: DKK 110,978 thousands) and the remaining outside of EU. Management remuneration Group and parent company Remuneration of the Board of Directors and Executive Board totalled DKK 4,650 amounts to (2020: DKK 4,138 thousand). DKK 4,350 thousands (2020: DKK 3,838 thousands) related to the Executive Board and DKK 300 thousands (2020: DKK 300 thousand) related to the Board of Directors. Incentive programmes to Management in the Group, including Executive Board Members in subsidiaries comprises warrant a program, granting the right to subscribe new shares amounting to nominal DKK 1,768 thousands in the subsidiary Bramming Plast-Industri Holding ApS. The exercise period is 31 March 2025 – 12 May 2025 or earlier in case of an exit. Warrants was granted at an amount of DKK 329 thousands. The exercise price is DKK 124.4305 + an annual interest of 8%. The total value of the warrants therefore amounts to DKK 2,200 + 8% p.a. Amortisation/depreciation of intangible assets and property, plant and equipment is recognised in the income statement under the following items: Production costs 12,986 14,178 0 0 Administrative expenses 2,694 2,702 0 0 15,680 16,880 0 0 Prepayments include accrual of expenses relating to subsequent financial years, including insurance policies, IT fees etc. Deferred tax assets primary relates to carried forward tax losses in the Polish entities. The tax asset is expected to be utilized within the coming years due to increasing activities from the entities. Group Rent and lease liabilities comprise lease liabilities totalling DKK 279 thousand (2020: DKK 492 thousand) for non-terminable leases with a remaining contract period of 1 years. Furthermore, the obligation comprises operating leases on vehicles and IT equipment totalling DKK 3,989 thousand (2020: DKK 3,562 thousand) with a remaining contract period of 1-5 years. The company is jointly taxed with the Danish subsidiaries. The companies included in the joint taxationhave joint and several unlimited liability for Danish corporation taxes and withholding taxes on dividends, interest and royalties. Mortgages or other collateral in the Group's asset totaling DKK 81,941 thousand have been provided as collateral for the group company's payables to mortgage credit institutions, other credit institutions, creditors and other suppliers. The carrying amount of assets provided as collateral or mortgaged totals DKK 139,486 thousand. Security and the carrying amount are broken down on financial statement items as follows: Land and buildings with a carrying amount of DKK 25,627 thousand at 31 December 2021 have been put up as security for debt to mortgage credit institutions, totaling DKK 26,170 thousand. Land and buildings with a carrying amount of DKK 25,627 thousand at 31 December 2021 have been provided as collateral amounting to DKK 6,500 thousand regarding payables to credit institutions, DKK 6,612 thousand. Land and buildings with a carrying amount of DKK 22,500 thousand at 31 December 2021 have been provided as collateral amounting to DKK 14,562 thousand regarding payables to credit institutions, DKK 0 thousand, Land and buildings with a carrying amount of DKK 22,500 thousand at 31 December 2021 have been provided as collateral for payables to credit institution, totaling DKK 0 thousand. As collateral for liabilities to credit institutions, DKK 6,612 thousand, a company charge of DKK 34,708 thousand has been provided in the Group's assets with a carrying amount of DKK 98,975 thousand at 31 December 2021. The parent Company has not placed any assets or other as security for loans at 31/12 2021. 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