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Revisionspartnerselskab Strandvejen 44 2900 Hellerup 2023-01-01 2022-01-01 2023-12-31 2022-12-31 38175793 Cube Denmark ApS Farverland 7 2600 Glostrup Albertslund 2016-11-01 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab 33771231 Strandvejen 44 2900 Hellerup Denmark 39 45 39 45 koebenhavn@pwc.dk 2024-05-30 Ole Steensbro Regnskabsklasse C, stor virksomhed Revisionspåtegning The Executive Board and Board of Directors have today considered and adopted the Annual Report of Cube Denmark ApS for the financial year 1 January - 31 December 2023. The Annual Report is prepared in accordance with the Danish Financial Statements Act. In our opinion the Parent Financial Statements and the Consolidated Financial Statements give a true and fair view of the financial position at 31 December 2023 of the Company and the Group and of the results of the Company and Group operations and of consolidated cash flows for 2023. 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. 2024-05-30 Glostrup Ole Steensbro CEO Stefan Konrad Weis Chairman Antonio Rosamina To the shareholder of Cube Denmark ApS Opinion 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 2023 and of the results of the Group’s and the Parent Company’s operations and of consolidated cash flows for the financial year 1 January - 31 December 2023 in accordance with the Danish Financial Statements Act. We have audited the Consolidated Financial Statements and the Parent Company Financial Statements of Cube Denmark ApS for the financial year 1 January - 31 December 2023, which comprise income statement, balance sheet, statement of changes in equity and notes, including a summary of significant accounting policies, for both the Group and the Parent Company, as well as consolidated statement of cash flows (”the Financial Statements”). Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the ”Auditor’s responsibilities for the audit of the Financial Statements” section of our report. We are independent of the Group 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 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 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 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 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 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, in our view, Management’s Review is in accordance with the Consolidated Financial Statements and the Parent Company Financial Statements and has been prepared in accordance with the requirements of the Danish Financial Statements Act. We did not identify any material misstatement in Management’s Review. Hellerup 2024-05-30 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab Bo Schou-Jacobsen State Authorised Public Accountant mne28703 Kenneth Østergaard State Authorised Public Accountant mne47262 729790000 694827000 686797000 535245000 514628000 501106000 23070000 18327000 17915000 -11837000 -13460000 -12477000 5412000 10064000 3827000 912158000 788957000 725313000 841504000 -295710000 -196935000 -66964000 -93075000 155274000 152686000 112844000 76778000 98776000 86068000 -190831000 -61216000 -162001000 89137000 46826000 74429000 -24916000 84389000 -1504000 949 946 974 0.057 0.035 0.032 0.026 0.026 0.092 0.132 0.17 0.194 0.156 0.123 0.079 0.035 0.076 0.038 For a short description of our business model, see the section “Key activities” on page 7.It is the Group policy to consider social and environmental issues as well as corporate governance when making decisions and in its day-to-day operations. We adhere to the UN Global Compact initiatives and support a set of basic values within human rights, employee rights, environment, and anti-corruption: ***Human rights*** 1) The Group supports and respects the protection of internationally proclaimed human rights; and2) we ensure that we do not participate in the infringement of human rights.The Group has moreover implemented the following diversity policy: "We see diversity as a strength for our Company. We appreciate working together across differences in age, gender, religion, sexuality, and ethnicity. We believe that diversity inspires and builds strength, and we provide equal opportunities for everyone by being flexible and showing individual considerations. We have room for diversity taking into consideration the overall interests of the Company". In addition, discrimination and bullying, etc. is prohibited and will result in dismissal.The Company activities are continuously reviewed by senior management, employee representatives and the various works counsel functions as described in Danish law. The company also has a Whistle blower and Grievance mechanisms in place which gives all internal and external stakeholders opportunity to report any deviating behavior anonymously. Based on that, risk of breach of the human rights policies of the company are regarded as low. Actions in 2023:Considering the continuous growth, Umove has during 2023 strengthened its focus on People and initiated various initiatives to improve engagement, satisfaction, and ongoing competence upgrades across the company.Update of our purchase agreements with the main suppliers to secure that they meet our standards in terms of staff conditions and environmental protection. The process is ongoing as agreements are renewed but the initiative has not yet given reason to any disputes with suppliers.In 2024 we will continue to visit our main suppliers (i.e., vehicle manufacturers) to check relevant conditions are met. ***Employee rights***The Group1) ensures the freedom of association of its employees and recognizes their right to and need for collective bargaining.2) supports the elimination of any type of forced labor.3) rejects child labor; and4) eliminates any discrimination in conditions of work and employment. Moreover, The Group has implemented the following occupational health and safety policy:"A good working environment is an important condition for being able to provide the right services to our passengers. Naturally, the physical environment and tools must be in working order, but we also look positively at our cooperation in our environmental organization, with trade organizations and external partners who help us map employee satisfaction. Such initiatives are always backed up by action plans that can contribute to improving our working environment."The industry has periodically been challenged by a lack of labour, which in long term could cause issues if we don't succeed in attracting new employees to the required extent. This is the most significant risk related to employee rights. Actions in 2023:During the year we carried out the second employee engagement survey among all employees in Umove. In general, the engagement results are satisfying and improved compared to the year before. The outputs are used to develop and implement various new initiatives to continue to improve the employee satisfaction.Umove Academy, an internal leadership training program, has been introduced in an updated version and two programmes have been completed during the year. Each programme consists of six modules of training covering various leadership topics – a total of 16 days of education. The program has been developed in cooperation between Umove and DEKRA.The HR function will be further strengthened in 2024 to support the growth of the group and strengthen people engagement activities, pre-, on- and offboarding processes as well as upgrading leadership capabilities. ***Environment and work environment***The Group1) supports a precautionary approach to environmental challenges.2) takes initiatives to promote a high level of environmental responsibility; and3) encourages the development and dissemination of environmentally sound technologies.Moreover, The Group is ISO 14001 and ISO 45001 certified and has implemented the following environmental policy:"Even though public transport contributes to an overall reduction of transport emissions into the environment, we do have an impact on the environment. We use fossil fuel, CNG, Electricity, chemicals and generate waste. We produce noise and have an overall impact on the surroundings. Therefore, it is important for us to minimize our impact on the environment by being prepared to experiment with alternative technologies and energy sources when requested by the Public Transport Authorities. We are pleased to lead the way and to assume a calculated risk daily assisted by our environmental management system ISO 14001, which ensures that we work systematically with our environmental impact. We aim continuously at reducing our consumption of resources and our environmental impact through, for example, our systems and follow up on fuel consumption. On locations where new buses operate, we invest in technology that assist the drivers in “green driving” in 2023. If we can reduce our fuel consumption, we reduce both the environmental impact and save money.*As it is the Group's clients who define which fuels are to be used in new contracts, the most significant risks will consists of demand for other fuels than electric buses, possibly justified by saving on public transport. Actions in 2023:Denmark as a country is on the road to full electrification of bus operations. We are investing heavily in electric vehicles and charging infrastructure and expect this process to continue until around 90% of the market has been tendered (during the coming 4-7 years). Only very few tenders allow for the use of fossil fuels, and where electrification is not yet possible (if high speed is required), the Public Transport Authorities typically require the use of HVO. Umove have ordered more than 200 electric vehicles to be delivered in 2024 and 2025. ***Anti-corruption and bribery***The company is engaged with a significant low number of customers (4 Public Transport Authorities and a limited number of municipalities) in a very regulated tendered marketplace with objective and transparent criteria for assignment of contracts. Representatives of management are fully informed of the company’s rules in respect of gift’s etc. It is the company’s policy that no employees are allowed to receive gifts. All commercial activities towards our clients are managed by senior management. Commercial agreements are not agreed or signed by any employee, but senior management. In respect of supplier agreements, the same rules apply. It is part of the scope of the external auditors’ activities to report any occurring or suspected occurrence to senior management and ultimately the company board of directors.The most significant risk are linked to the financial risks, if any situations should arise where employees don't act in the company's best interests.In 2023, no suspected occurrences were reported.The company always adheres to relevant local and international legislation and follows development in this area closely and will continuously assess if further initiatives regarding anti-corruption are necessary. The Board of Directors of Cube Denmark comprises 2 members elected at the General Meeting none of whom are women. Representation of men/women on the Company’s Board of Directors: 2/0. The management board of the company comprises 2 executive directors, all being men. Due to the fact that the company has less than 50 employees, the company is exempt from disclosing a gender composition target and policy for C-level management. Top management Total number of members 2 Underrepresented gender % 0% Other management levels Total number of members 2 Underrepresented gender % 0% **Other Policies**Besides the above, The Group has laid down guidelines for the Company’s day-to-day staff management (values for being a good colleague and rules for a good management) and staff policy principles in staff manuals.The Groups vision is to connect people by building a better future through sustainable mobility solutions, and we aim to achieve this by becoming the best mobility operator in Denmark. We believe that we can help take a very important social responsibility as well as environmental responsibility by providing sustainable mobility solutions that contribute to a greener future. The Group have four core values that guide our operations: integrity, vigour, business acumen, and ownership. These values represent our commitment to providing top-notch services to our customers and passengers, are guiding principles to all colleagues in The Group while conducting ourselves with honesty, energy, and accountability. Our staff policy includes, among other things, the following in day-to-day cooperation:- We do our best and take responsibility for our actions.- We treat each other with respect and talk nicely to each other.- We help each other as best we can.- We stop rumors before they become a problem.- We appreciate our differences and see it as a strength.- We do what we can to keep each other informed, and our working language is Danish. Rules for good Umove leadership:- Manage expectations: Align expectations with your employees - Expect that your employees do their best and promote continuous feedback - Appreciate a good effort- Practice as you preach- Be well mannered and organised- Have focus on the ball never the man/woman **ESG and target figures** The Group keeps track of agreed targets on all relevant parameters, such as energy consumption, waste and emissions and staff related issues such as absence, work injuries etc. Yearly, The Group conduct a Co2 analyses that demonstrates our ability to reduce the impact on society and hence our social responsibility. The Group doesn't use advanced technologies such as artificial intelligence or machine learning. The company handles general data such as customer data and employee data. Data are processed in accordance with GDPR. With the limited processing of data, it is the company's assessment that there is no need for a specific policy on data ethics. The company will continuously assess whether a policy is necessary. Key activities The main activity of the Group is to provide public transport services for the Public Transport Authorities of the Regions and Municipalities in Denmark through the subsidiaries Umove and Umove Holding. Development in the year The income statement of the Group for 2023 shows a profit of TDKK 19,012, and at 31 December 2023 the balance sheet of the Group shows a positive equity of TDKK 164,085. The Group provides transport services for 4 out of 5 regional Public Transport Authorities (PTA) and 2023 was characterized by continued organic growth during the year. During 2023 Umove increased the operation in the Copenhagen area in Kastrup with 46 electrical buses and expanded the operation in Glostrup with 12 electrical buses and Kvistgård with 15 electrical buses. In South Jutland, Umove started a new contract for 13 electric buses in the summer of 2023. During 2023 Umove has also been awarded new contracts with electrical buses in Movia A22 tender, MT60+, MT65 and ST20. A total of more than 200 new electrical vehichles with a contract period of minimum 12 years. The contracts will begin in 2024. Umove thereby maintain its position as a market leader in Denmark with operation of buses, where the share of electrical buses continues to increase. The Profit before tax of the year is just below Managements expectation of mDKK 25-28. Special risks - operating risks and financial risks Operating risks The Group is not assessed to be exposed to any special risks. The Group’s most important customers are the Public Transport Authorities (PTA), and the service contracts are typically concluded for a long period of time with the possibility of extension; thus, the service contracts match the useful lives of the buses. In connection with the delivery of new buses, Umove ensures a repurchase guarantee from the manufacturer/supplier which matches the terms of the service contracts whenever relevant. Market risks The Group is not subject to any special price risks as the indexation of contract payments from the Public Transport Authorities includes general fluctuations in wage levels, interest rate levels and fuel prices. Interest rate risks The interest-bearing debt constitutes a material amount in the Group. Changes to the interest rate level are, however, included in the indexation of the service contracts with the Public Transport Authorities and, therefore, increases in interest rates do not constitute any significant risk for the Group. Credit risks The debtor risk is considered very limited as the Group’s major customers are the Public Transport Authorities. Strategy The group is mainly focused on expanding the business through successful tendering in the public transport bus market but is also open for M&A opportunities if they support the positive development of the group. Targets and expectations for the year ahead 2024 will be focused on mobilization of new operations in the Copenhagen area (Movia A22) and in South and Mid Jutland (ST20, MT60+ and MT65). Profit before tax in 2024 is expected to be at the level of mDKK 25-28, reflecting the latest tender wins. Uncertainty relating to recognition and measurement There has been no uncertainty regarding recognition and measurement in the Annual Report. Unusual events The financial position at 31 December 2023 of the Group and the results of the activities and cash flows of the Group for the financial year for 2023 have not been affected by any unusual events. Subsequent events We refer to note 20. 1069564000 1002290000 0 0 6318000 4688000 0 0 208916000 245653000 0 0 51711000 56267000 230000 126000 815255000 705058000 -230000 -126000 641004000 575126000 0 0 113259000 95137000 0 0 60992000 34795000 -230000 -126000 0 0 17145000 9897000 1285000 60000 5629000 2759000 38073000 17370000 3872000 4335000 24204000 17485000 18672000 8195000 5192000 5527000 343000 286000 19012000 11958000 18329000 7909000 756000 686000 0 0 18256000 11272000 18329000 7909000 16227000 0 0 0 1524000 2533000 0 0 61215000 73653000 0 0 5313000 12087000 0 0 84279000 88273000 0 0 66028000 66193000 0 0 950756000 712632000 0 0 10104000 12366000 0 0 163661000 10957000 0 0 353669000 14895000 0 0 1544218000 817043000 0 0 0 0 179784000 179784000 0 0 177046000 113546000 4001000 3808000 0 0 4001000 3808000 356830000 293330000 1632498000 909124000 356830000 293330000 25644000 23876000 0 0 25644000 23876000 0 0 60555000 53330000 0 0 0 0 6491000 4675000 52290000 30118000 0 0 0 0 91000 427000 450000 216000 0 107000 8414000 7695000 0 0 121709000 91359000 6582000 5209000 5814000 5289000 0 0 1600000 72330000 386000 44101000 154767000 192854000 6968000 49310000 1787265000 1101978000 363798000 342640000 14410000 14410000 14410000 14410000 0 9428000 0 0 146075000 118391000 179629000 161300000 160485000 142229000 194039000 175710000 3600000 3369000 0 0 164085000 145598000 194039000 175710000 26943000 21756000 0 0 26943000 21756000 0 0 1108000 1109000 0 0 11118000 21527000 0 0 701004000 468359000 0 0 2381000 9543000 0 0 148771000 148771000 148772000 148771000 62351000 48287000 0 0 926733000 697596000 148772000 148771000 822000 2548000 0 0 491780000 85642000 0 0 6933000 8699000 0 0 54970000 50512000 114000 108000 20873000 16766000 20873000 18051000 94126000 72861000 0 0 669504000 237028000 20987000 18159000 1596237000 934624000 169759000 166930000 1787265000 1101978000 363798000 342640000 14410000 9428000 118391000 3369000 0 0 0 -525000 0 0 18256000 756000 0 -9428000 9428000 0 14410000 0 146075000 3600000 14410000 161300000 0 18329000 14410000 179629000 19012000 11958000 169229000 123256000 -6354000 732000 181887000 135946000 256000 60000 -37045000 -17370000 145098000 118636000 -239000 -215000 144859000 118421000 -24400000 -3381000 -826610000 -292301000 14534000 0 36000 8034000 -525000 0 -836965000 -287648000 -12135000 -2705000 -8928000 -10520000 0 -2216000 638783000 174646000 4107000 3628000 74000 881000 -525000 -968000 0 -20621000 621376000 142125000 -70730000 -27102000 72330000 99432000 1600000 72330000 1600000 72330000 1600000 72330000 No events materially affecting the assessment of the Annual Report have occurred after the balance sheet date. Geographical and business segments Busservices, Sealand 1061350000 993850000 0 0 Other revenue 8214000 8440000 0 0 Total 1069564000 1002290000 0 0 All of the Company's revenue is on the Danish market. 567677000 514206000 0 0 52858000 41790000 0 0 6121000 9470000 0 0 14348000 9660000 0 0 641004000 575126000 0 0 1257 1138 0 0 Remuneration to the Executive Board has not been disclosed in accordance with section 98 B(3) of the Danish Financial Statements Act. Dividend 0 0 17145000 9897000 Total 0 0 17145000 9897000 0 0 5629000 2759000 1285000 60000 0 0 1285000 60000 5629000 2759000 3868000 3867000 3868000 3867000 34205000 13503000 4000 468000 OtherFinanceExpenses 38073000 17370000 3872000 4335000 0 0 0 -107000 5192000 4866000 336000 -268000 0 661000 7000 661000 5192000 5527000 343000 286000 0 10299000 154931000 12087000 16643000 0 0 7760000 0 0 0 14534000 16643000 10299000 154931000 5313000 0 7766000 81278000 0 416000 1009000 12438000 0 416000 8775000 93716000 0 16227000 1524000 61215000 5313000 Development projects consist of the development of internal software for use in planning and disposition, and are capitalized in accordance with applicable requirements for recognition. 92964000 1079825000 17552000 10956000 14895000 1848000 332778000 505000 152705000 353669000 0 115000 0 0 14895000 -215000 -27929000 -2202000 0 0 94597000 1384559000 15855000 163661000 353669000 26772000 367194000 5186000 0 0 1930000 95763000 1659000 0 0 0 36000 0 0 0 -133000 -29118000 -1094000 0 0 28569000 433803000 5751000 0 0 66028000 950756000 10104000 163661000 353669000 0 16011000 0 0 0 179784000 159161000 0 20623000 179784000 179784000 179784000 179784000 Umove A/S Glostrup 97 967049 32754 UM Leasing Øst 2019 ApS Glostrup 97 27622 -1528 UM Leasing Øst 2020 A/S Glostrup 97 27461 -674 UM Leasing Øst 2021 ApS Glostrup 97 68538 -2839 UM Leasing Øst 2022 ApS Glostrup 97 108805 -2571 UM Ejendomme Øst 2018 ApS Glostrup 97 14158 -80 Umove Service ApS Glostrup 97 -863 240 Umove Holding A/S Glostrup 97 111352 21492 Umove Service II ApS Glostrup 97 40 UM Leasing Øst 2023 ApS Glostrup 97 321362 1354 UM Leasing Vest 2017 ApS Horsens 97 195513 -678 3809000 113546000 192000 63500000 4001000 177046000 4001000 177046000 Investments in subsidiaries are specified as follows: Prepayments consist of prepaid expenses concerning rent, insurance premiums, subscriptions and interest as well. Deferred tax liabilities at 1 January 21756000 16889000 -427000 -159000 Amounts recognised in the income statement for the year 5187000 4867000 336000 -268000 Deferred tax liabilities at 31 December 26943000 21756000 -91000 -427000 1108000 1109000 0 0 1108000 1109000 0 0 0 0 0 0 8707000 10626000 0 0 2411000 10901000 0 0 11118000 21527000 0 0 822000 2548000 0 0 307778000 178855000 0 0 393226000 289504000 0 0 701004000 468359000 0 0 450370000 85609000 0 0 41410000 33000 0 0 0 0 0 0 2381000 9543000 0 0 2381000 9543000 0 0 6933000 8699000 0 0 148771000 148771000 148772000 148771000 148771000 148771000 148772000 148771000 20873000 16766000 20873000 18051000 18268000 16932000 0 0 44083000 31355000 0 0 62351000 48287000 0 0 0 194000 0 0 94126000 72667000 0 0 Payments due within 1 year are recognised in short-term debt. Other debt is recognised in long-term debt. The debt falls due for payment as specified below: Subordinate loan capital Mortgage loans Credit institutions Lease obligations Payables to group enterprises Other payables The subordinated loan capital from the group’s investors of DKK 1,1 million is due 31 December 2029. The repayment of the principal amount of the loan is subordinated to all other present and future obligations, including claims according to the Danish Bankruptcy Act. -1285000 -60000 38073000 17370000 113259000 91800000 5192000 5527000 13990000 8619000 169229000 123256000 -1768000 -1774000 -30309000 -21062000 25723000 23568000 -6354000 732000 Charges and security The following assets have been placed as security with mortgage credit institutes, bankers and credit institutes Company charges with a nominal value of TDKK 44,000 (2022: TDKK 29,000) in the group's immaterial rights, operating equipment, inventory, and claims with a carrying amount of 242709000 222331000 0 0 Mortgage deed with a nominal value of TDKK 764,494 (2022: TDKK 526,869) in the group's machinery with a carrying amount of 820503000 596249000 0 0 Mortgage deed with a nominal value of TDKK 33,921 (2022: TDKK 60,971) in the group's land an buildings with a carrying amount of 54807000 100897000 0 0 Rental and lease obligations Lease obligations under operating leases. Total future lease payments: Within 1 year 3907000 1753000 0 0 Between 1 and 5 years 9117000 2938000 0 0 After 5 years 2675000 0 0 0 Total 15699000 4691000 0 0 Lease obligations, period of non-terminability 3-114 months 74106000 77985000 0 0 Other contingent liabilities The group companies are jointly and severally liable for tax on the jointly taxed incomes etc of the Group. The total amount of corporation tax payable by the Group amounts to DKK 0. Moreover, the group companies are jointly and severally liable for Danish withholding taxes by way of dividend tax, tax on royalty payments and tax on unearned income. Any subsequent adjustments of corporation taxes and withholding taxes may increase the Group’s liability. The group has contractually committed itself to the purchase of equipment of TDKK 73,037. Basis Controlling interest Cube II Transport S.à.r.lLuxembourgThe ultimate parent company does not prepare consolidated financial statements. Ultimate parent company Transactions All transactions with related parties are on arms-length terms, why no transactions are disclosed according with section 98(c)(7) of the Danish Financial Statements Act. 717000 663000 579000 0 885000 737000 The Annual Report of Cube Denmark ApS for 2023 has been prepared in accordance with the provisions of the Danish Financial Statements Act applying to large enterprises of reporting class C. The accounting policies applied remain unchanged from last year. The Consolidated Financial Statements and the Parent Company Financial Statements for 2023 are presented in TDKK. 1 Revenues are recognised in the income statement as earned. Furthermore, value adjustments of financial assets and liabilities measured at fair value or amortised cost are recognised. Moreover, all expenses incurred to achieve the earnings for the year are recognised in the income statement, including depreciation, amortisation, impairment losses and provisions as well as reversals due to changed accounting estimates of amounts that have previously been recognised in the income statement. Assets are recognised 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 recognised 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. Basis of consolidation The Consolidated Financial Statements comprise the Parent Company, Cube Denmark ApS, and subsidiaries in which the Parent Company directly or indirectly holds more than 50% of the votes or in which the Parent Company, through share ownership or otherwise, exercises control. Enterprises in which the Group holds between 20% and 50% of the votes and exercises significant influence but not control are classified as associates. On consolidation, items of a uniform nature are combined. Elimination is made of intercompany income and expenses, shareholdings, dividends and accounts as well as of realised and unrealised profits and losses on transactions between the consolidated enterprises. The Parent Company's investments in the consolidated subsidiaries are set off against the Parent Company's share of the net asset value of subsidiaries stated at the time of consolidation. Minority interests Minority interests form part of the Group's total equity. Upon distribution of net profit, net profit is broken down on the share attributable to minority interests and the share attributable to the shareholders of the Parent Company. Minority interests are recognised on the basis of a remeasurement of acquired assets and liabilities to fair value at the time of acquistition of subsidiaries. Business acquisitions carried through before 1 July 2018 Minority interests are recognised at the carrying amounts of the acquired assets and liabilities at the time of acquisition of subsidiaries. Business acquisitions carried through on or after 1 July 2018 Minority interests are initially measured at their proportionate share of the fair value of the acquired entity’s identifiable net assets. In this way, only goodwill related to the Parent Company’s share of the entity acquired is recognised. On subsequent changes to minority interests where the Group retains control of the subsidiary, the consideration is recognised directly in equity. Business combinations Business acquisitions carried through on or after 1 July 2018 Acquisitions of subsidiaries are accounted for using the purchase method under which the identifiable assets and liabilities of the entity acquired are measured at fair value at the time of acquisition. Acquired contingent liabilities are recognised at fair value in the Consolidated Financial Statements to the extent that the value can be measured reliably. The time of acquisition is the time when the Group obtains control of the entity acquired. The cost of the entity acquired is the fair value of the consideration agreed, including consideration contingent on future events. Transaction costs directly attributable to the acquisition of subsidiaries are recognised in the income statement as incurred. Positive differences between the cost of the entity acquired and identifiable assets and liabilities are recognised as goodwill in intangible assets in the balance sheet and are amortised in the income statement on a straight-line basis over their estimated useful lives. Where the differences are negative, they are recognised immediately in the income statement. Where the purchase price allocation is not final, positive and negative differences from acquired subsidiaries due to changes to the recognition and measurement of identifiable net assets may be adjusted for up to 12 months after the time of acquisition. These adjustments are also reflected in the value of goodwill or negative goodwill, including in amortisation already made. Where cost includes contingent consideration, this is measured at fair value at the time of acquisition. Contingent consideration is subsequently measured at fair value. Any value adjustments are recognised in the income statement. In respect of step acquisitions, any previously held investments in the entity acquired are remeasured at fair value at the time of acquisition. The difference between the carrying amount of the investment previously held and the fair value is recognised in the income statement. Business acquisitions carried through before 1 July 2018 Subject to some exemptions, acquisitions carried through before 1 July 2018 are accounted for under the same accounting policies as those applying to business combinations carried through on or after 1 July 2018. The most material exemptions are: Identifiable assets and liabilities of the entity acquired are recognised only if they are probable. Identifiable contingent liabilities of the entity acquired are not recognised in the consolidated balance sheet. Where the purchase price allocation is not final, positive and negative differences due to changes to the recognition and measurement of the acquired net assets may be adjusted until the end of the financial year following the year of acquisition. These adjustments are also reflected in the value of goodwill or negative goodwill, including in amortisation already made. Transaction costs directly attributable to the acquisition of subsidiaries are included as part of cost. After the initial recognition, adjustment of contingent consideration is recognised directly with its counter entry in initial purchase price, thus correcting the value of goodwill or negative goodwill. In respect of step acquisitions, the carrying amount of the existing investments is recognised in cost. Pooling of interests Intragroup business combinations are accounted for under the pooling-of-interests method. Under this method, the two enterprises are combined at carrying amounts, and no differences are identified. Any consideration which exceeds the carrying amount of the acquired enterprise is recognised directly in equity. The pooling-of-interests method is applied as if the two enterprises had always been combined by restating comparative figures. Leases in terms of which the Group assumes substantially all the risks and rewards of ownership (finance leases) are recognised in the balance sheet at the lower of the fair value of the leased asset and the net present value of the lease payments computed by applying the interest rate implicit in the lease or an alternative borrowing rate as the discount rate. Assets acquired under finance leases are depreciated and written down for impairment under the same policy as determined for the other fixed assets of the Group. The remaining lease obligation is capitalised and recognised in the balance sheet under debt, and the interest element on the lease payments is charged over the lease term to the income statement. All other leases are considered operating leases. Payments made under operating leases are recognised in the income statement on a straight-line basis over the lease term. 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 recognised in financial income and expenses in the income statement. Where foreign exchange transactions are considered hedging of future cash flows, the value adjustments are recognised 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 transaction date rates are recognised in financial income and expenses in the income statement; however, see the section on hedge accounting. Information on geographical segments is based on the Group´s risks and returns and its internal financial reporting system. Revenue comprise passenger transport, which is recognised in the income statement when delivery and transfer of risk have been made before year-end. The sale is considered effected based on the following criteria:- driving has been made before year-end;- a binding agreement has been made;- the sales price has been determined; and- payment has been received or may with reasonable certainty be expected to be received. Revenue is measured at the consideration received and is recognised exclusive of VAT and net of discounts relating to sales. Expenses for raw materials and consumables comprise the raw materials and consumables consumed to achieve the consolidated revenue for the year. Other external expenses comprise indirect production costs and expenses for premises, sales as well as office expenses, etc. Staff costs include wages and salaries including compensated absence and pensions as well as other social security contributions etc. made to the entity's employees. Amortisation, depreciation and impairment losses comprise amortisation, depreciation and impairment of intangible assets and property, plant and equipment. Other operating income and other operating expenses comprise items of a secondary nature to the main activities of the Group, including gains and losses on the sale of intangible assets and property, plant and equipment. Dividends from subsidiaries are recognised as income in the income statement when adopted at the General Meeting of the subsidiary. However, dividends relating to earnings in the subsidiary before it was acquired by the Parent Company are set off against the cost of the subsidiary. Financial income and expenses are recognised in the income statement at the amounts relating to the financial year. Tax for the year consists of current tax for the year and deferred tax for the year. The tax attributable to the profit for year is recognised in the income statement, whereas the tax attributable to equity transactions is recognised directly in equity. Any changes in deferred tax due to changes to tax rates are recognised in the income statement. The Company is jointly taxed with Danish Group entities. The tax effect of the joint taxation with the subsidiaries is allocated to Danish enterprises showing profits or losses in proportion to their taxable incomes (full allocation with credit for tax losses). Goodwill is amortised on a straight-line basis over the estimated useful life of 10 years, determined on the basis of Management’s experience with the individual business areas. Costs of development projects comprise salaries, amortisation and other expenses directly or indirectly attributable to the Company’s development activities. Development projects that are clearly defined and identifiable and in respect of which technical feasibility, sufficient resources and a potential future market or development opportunity in the enterprise can be demonstrated, and where it is the intention to manufacture, market or use the project, are recognised as intangible assets. This applies if sufficient certainty exists that the value in use of future earnings can cover cost of sales, distribution and administrative expenses involved as well as the development costs. Capitalised development costs are measured at cost less accumulated amortisation and impairment losses or at a lower recoverable amount. An amount corresponding to the recognised development costs is allocated to the equity item 'Reserve for development costs'. The reserve comprises only development costs recognised in financial years beginning on or after 1 January 2016. The reserve is reduced by amortisation of and impairment losses on the development projects on a continuing basis. As of the date of completion, capitalised development costs are amortised on a straight-line basis over the period of the expected economic benefit from the development work. Rights are measured at cost less accumulated amortisation and less any accumulated impairment losses or at a lower value in use. Rights are amortised over the period of the agreements, which is 7 years. 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 labour, materials, components and sub-suppliers. Interest expenses on loans contracted directly for financing the construction of property, plant and equipment are recognised in cost over the construction period. 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: Production buildings 25-50 years Other buildings 25-50 years Other fixtures and fittings, tools and equipment 5-12 years Leasehold improvements 5-12 years Depreciation period and residual value are reassessed annually. The carrying amounts of intangible assets and property, plant and equipment and investments are reviewed on an annual basis to determine whether there is any indication of impairment other than that expressed by amortisation and depreciation. The recoverable amount of the asset is calculated as the higher of net selling price and value in use. Where a recoverable amount cannot be determined for the individual asset, the assets are assessed in the smallest group of assets for which a reliable recoverable amount can be determined based on a total assessment. Goodwill, head office buildings and other assets for which a separate value in use cannot be determined as the asset does not on an individual basis generate future cash flows are reviewed for impairment together with the group of assets to which they are attributable. Investments in subsidiaries are measured at cost. Where cost exceeds the recoverable amount, write-down is made to this lower value. Other fixed asset investments consist of deposit. Inventories are measured at the lower of cost under the FIFO method and net realisable value. The net realisable 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 realisable value is determined allowing for marketability, obsolescence and development in expected selling price. Receivables are measured in the balance sheet at the lower of amortised cost and net realisable value, which corresponds to nominal value less provisions for bad debts. Prepayments comprise prepaid expenses concerning rent, insurance premiums, subscriptions and interest. Investments which are not traded in an active market are measured at the lower of cost and recoverable amount. Deferred tax is recognised in respect of all temporary differences between the carrying amount and the tax base of assets and liabilities. However, deferred tax is not recognised in respect of temporary differences concerning goodwill not deductible for tax purposes and other items - apart from business acquisitions - where temporary differences have arisen at the time of acquisition without affecting the profit for the year or the taxable income. Deferred tax is measured on the basis of 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 crystallise as current tax. In cases where the computation of the tax base may be made according to alternative tax rules, deferred tax is measured on the basis of the intended use of the asset and settlement of the liability, respectively. Deferred tax assets, including the tax base of tax loss carry-forwards, are measured at the value at which the asset is expected to be realised, either by elimination in tax on future earnings or by set-off against deferred tax liabilities. Current tax receivables and liabilities are recognised in the balance sheet at the amount calculated on the basis of the expected taxable income for the year adjusted for tax on taxable incomes for prior years. Tax receivables and liabilities are offset if there is a legally enforceable right of set-off and an intention to settle on a net basis or simultaneously. Loans, such as mortgage loans and loans from credit institutions, are recognised initially at the proceeds received net of transaction expenses incurred. Subsequently, the loans are measured at amortised cost; the difference between the proceeds and the nominal value is recognised as an interest expense in the income statement over the loan period. Mortgage loans are measured at amortised cost, which for cash loans corresponds to the remaining loan. Amortised cost of debenture loans corresponds to the remaining loan calculated as the underlying cash value of the loan at the date of raising the loan adjusted for depreciation of the price adjustment of the loan made over the term of the loan at the date of raising the loan. Other debts are measured at amortised cost, substantially corresponding to nominal value. The cash flow statement shows the Group’s cash flows for the year broken down by operating, investing and financing activities, changes for the year in cash and cash equivalents as well as the Group’s cash and cash equivalents at the beginning and end of the year. Cash flows from operating activities are calculated as the net profit/loss for the year adjusted for changes in working capital and non-cash operating items such as depreciation, amortisation and impairment losses, and provisions. Working capital comprises current assets less short-term debt excluding items included in cash and cash equivalents. Cash flows from investing activities comprise cash flows from acquisitions and disposals of intangible assets, property, plant and equipment as well as fixed asset investments. Cash flows from financing activities comprise cash flows from the raising and repayment of long-term debt as well as payments to and from shareholders. Cash and cash equivalents comprise ”Cash at bank and in hand”. The cash flow statement cannot be immediately derived from the published financial records. Profit margin Profit/loss of ordinary primary operations x 100 / Revenue Solvency ratio Equity at year end x 100 / Total assets at year end Return on equity Net profit for the year x 100 / Average equity