36960566 2022-12-31 36960566 2021-12-31 36960566 2020-12-31 36960566 2024-12-31 36960566 2023-12-31 36960566 2024-01-01 fsa:ContributedCapitalMember 36960566 2024-01-01 fsa:ReserveForDevelopmentExpenditureMember 36960566 2024-01-01 fsa:RetainedEarningsMember 36960566 2024-01-01 fsa:ProposedDividendRecognisedInEquityMember 36960566 2024-12-31 fsa:ContributedCapitalMember 36960566 2024-12-31 fsa:ReserveForDevelopmentExpenditureMember 36960566 2024-12-31 fsa:RetainedEarningsMember 36960566 2024-12-31 fsa:ProposedDividendRecognisedInEquityMember 36960566 2024-01-01 fsa:CompletedDevelopmentProjectsMember 36960566 2024-01-01 fsa:AcquiredLicencesMember 36960566 2024-01-01 fsa:DevelopmentProjectsInProgressMember 36960566 2024-12-31 fsa:CompletedDevelopmentProjectsMember 36960566 2024-12-31 fsa:AcquiredLicencesMember 36960566 2024-12-31 fsa:DevelopmentProjectsInProgressMember 36960566 2024-01-01 fsa:FixturesFittingsToolsAndEquipmentMember 36960566 2024-12-31 fsa:FixturesFittingsToolsAndEquipmentMember 36960566 2024-01-01 fsa:DepositsLongtermInvestmentsAndReceivablesMember 36960566 2024-12-31 fsa:DepositsLongtermInvestmentsAndReceivablesMember 36960566 2024-12-31 fsa:LongtermLeaseCommitmentsMember 36960566 2023-12-31 fsa:LongtermLeaseCommitmentsMember 36960566 2024-01-01 2024-12-31 36960566 2024-01-01 2024-12-31 1 36960566 2024-01-01 2024-12-31 memberOfBoardIdentifier_executive_board_1 36960566 2024-01-01 2024-12-31 memberOfBoardIdentifier_executive_board_2 36960566 2024-01-01 2024-12-31 memberOfBoardIdentifier_board_of_director_1 36960566 2024-01-01 2024-12-31 memberOfBoardIdentifier_board_of_director_2 36960566 2024-01-01 2024-12-31 2 36960566 2022-01-01 2022-12-31 36960566 2021-01-01 2021-12-31 36960566 2020-01-01 2020-12-31 36960566 2023-01-01 2023-12-31 36960566 2024-01-01 2024-12-31 fsa:ContributedCapitalMember 36960566 2024-01-01 2024-12-31 fsa:ReserveForDevelopmentExpenditureMember 36960566 2024-01-01 2024-12-31 fsa:RetainedEarningsMember 36960566 2024-01-01 2024-12-31 fsa:ProposedDividendRecognisedInEquityMember 36960566 2024-01-01 2024-12-31 fsa:ManagementMember 36960566 2024-01-01 2024-12-31 fsa:BoardOfDirectorsMember 36960566 2024-01-01 2024-12-31 fsa:CompletedDevelopmentProjectsMember 36960566 2024-01-01 2024-12-31 fsa:AcquiredLicencesMember 36960566 2024-01-01 2024-12-31 fsa:DevelopmentProjectsInProgressMember 36960566 2024-01-01 2024-12-31 fsa:FixturesFittingsToolsAndEquipmentMember 36960566 2024-01-01 2024-12-31 fsa:DepositsLongtermInvestmentsAndReceivablesMember iso4217:DKK pure Årsrapport 33771231 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab Strandvejen 44 2900 Hellerup 2024-01-01 2023-01-01 2024-12-31 2023-12-31 36960566 2care4 Generics ApS Stenhuggervej 12 6710 Esbjerg V Esbjerg 2015-07-10 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab 33771231 Esbjerg Brygge 28, 2. 6700 Esbjerg Denmark 76 12 45 00 esbjerg@pwc.dk 2025-04-08 Thomas Hjarsbæk Rasmussen Regnskabsklasse C, mellemstor virksomhed Revisionspåtegning The Executive Board and Board of Directors have today considered and adopted the Annual Report of 2care4 Generics ApS for the financial year 1 January - 31 December 2024. The Annual Report is prepared in accordance with the Danish Financial Statements Act. In our opinion the Financial Statements give a true and fair view of the financial position at 31 December 2024 of the Company and of the results of the Company operations for 2024. 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. 2025-04-08 Esbjerg V Ulrik Ernst Rasmussen CEO Thomas Hjarsbæk Rasmussen CFO Henrik Bisgaard Jensen Toke Værndal To the shareholders of 2care4 Generics ApS Opinion In our opinion, the Financial Statements give a true and fair view of the financial position of the Company at 31 December 2024 and of the results of the Company´s operations for the financial year 1 January - 31 December 2024 in accordance with the Danish Financial Statements Act. We have audited the Financial Statements of 2care4 Generics ApS for the financial year 1 January - 31 December 2024, which comprise income statement, balance sheet, statement of changes in equity and notes, including a summary of significant accounting policies (”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 Company in accordance with the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the Danish Financial Statements Act, and for such internal control as Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the Financial Statements, Management is responsible for assessing the Company´s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting in preparing the Financial Statements unless Management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Our objectives are to obtain reasonable assurance about whether the Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Financial Statements. As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company´s internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management. Conclude on the appropriateness of Management’s use of the going concern basis of accounting in preparing the Financial Statements and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company´s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern. Evaluate the overall presentation, structure and contents of the Financial Statements, including the disclosures, and whether the Financial Statements represent the underlying transactions and events in a manner that gives a true and fair view. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 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 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. Esbjerg 2025-04-08 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab Palle H. Jensen State Authorised Public Accountant mne32115 Stefan Dracea State Authorised Public Accountant mne42827 75691000 55863000 32852000 44649000 36161000 19182000 -377000 96000 73000 34598000 29083000 15715000 170991000 127772000 72433000 0 149000 598000 0 500000 74230000 44632000 15549000 20 15 12 0.17 0.242 0.261 0.283 0.265 0.607 0.508 0.434 0.349 0.215 0.208 0.393 0.582 0.967 2.043 Key activities The Main activity of the company is to develop, import, produce and export generic pharmaceutical products. Development in the year The income statement of the Company for 2024 shows a profit of DKKm 17,2, and at 31 December 2024 the balance sheet of the Company shows a positive equity of DKKm 78,7. The past year and follow-up on development expectations from last year The Generics business has performed below expectations in 2024 driven by supply constraint on several key product lines. Targets and expectations for the year ahead For the financial year 2025 the company expects slightly increased activity, and a net profit level in line with 2024 Research and development The development of the company includes implemented measures that within a few years in expected to generate increased revenue for the company. External environment The energy consumption and general environmental footprint from the 2care4 Generics activities are very limited and has limited impact on the surrounding environment. Since the medical products are purchased as commodities, the Company has little opportunity to assess and evaluate impacts on the environment in the supply chain. This given that there is no contact with the original producer as such and, therefore, the Company has no influence on the production phase at all.In our opinion, we as a Company comply with current legislation in the area, and we are in dialogue with our business partners concerning compliance with local legislation at the locations in the world where the Company´s products are manufactured. 2care4 Generics is managed by the headquarters in Denmark at which we ensure compliance with local Danish legislation.The Group CSR policy (see link below), includes the Company´s policy on Environment and Climate. Since the policy was established in 2020 the following initiatives have concretely been implemented; optimized waste disposal, change to LED lightning and electricity consumption based on 100% sustainable energy.https://www.epaper.dk/mss2care4/csrpolicy/csr-2care4-policy/Going forward, 2care4 Group will ongoingly update the CSR policy to optimise the energy consumption and environmental footprint. Uncertainty relating to recognition and measurement There has been no uncertainty regarding recognition and measurement in the Annual Report. Subsequent events No events materially affecting the assessment of the Annual Report have occurred after the balance sheet date. 58190000 73414000 30346000 26457000 5788000 5797000 22056000 41160000 1567000 3399000 1618000 4077000 22005000 40482000 4812000 8918000 17193000 31564000 0 25000000 17193000 6564000 7555000 8238000 2009000 1345000 33209000 26309000 42773000 35892000 348000 513000 348000 513000 121000 84000 121000 84000 43242000 36489000 55748000 47838000 21121000 21723000 6249000 62686000 1253000 1196000 28623000 85605000 2125000 438000 86496000 133881000 129738000 170370000 50000 50000 31795000 26946000 46892000 34548000 0 25000000 78737000 86544000 9055000 7848000 1068000 822000 10123000 8670000 0 350000 0 350000 11113000 1031000 278000 62000 8387000 10262000 8558000 43751000 3604000 8539000 8938000 11161000 40878000 74806000 40878000 75156000 129738000 170370000 50000 26946000 34548000 25000000 0 0 0 -25000000 0 0 17193000 0 0 4849000 -4849000 0 50000 31795000 46892000 0 28322000 24739000 1487000 1174000 218000 154000 319000 390000 30346000 26457000 962000 479000 1441000 1511000 28 23 4138000 3501000 165000 211000 5788000 5797000 Gain and loss on disposal 1485000 2085000 1567000 3399000 1567000 3399000 374000 696000 1244000 3381000 1618000 4077000 3605000 8539000 1207000 377000 0 2000 4812000 8918000 21188000 1793000 26309000 685000 1353000 10939000 1455000 235000 1659000 2380000 0 -2380000 22798000 2911000 33209000 12950000 448000 0 3684000 454000 0 1391000 0 0 15243000 902000 0 7555000 2009000 33209000 Development projects in progressDevelopment projects in progress comprise development and registration of generic pharmaceutical products. The costs include both external costs to business partners and internal workling hours. Costs are registered in an internal project tool. The individual pharmaceutical product will be finished in the years 2025-2028. Afterwards, sales will start up. Overall, the products are expected to contribute with significant competitive advantages and therefore a substantial increase in activity level and result. The management has completed impairment test of the current book value of the assets. The recoverable amount, value in-use, exceeds the book value. Value in-use is calculated from expected cashflows based on management approved budgets through 2025-2030.Completed development projectsCompleted development projects include development and registration of pharmaceutical products for humans. Each product has a 5 year depreciation period, starting from when the product is launched in the market. The management has not established any indication for impairment of the current book value of the assets. 747000 747000 234000 165000 399000 348000 348000 84000 37000 121000 121000 52025000 45564000 3723000 2274000 55748000 47838000 Deferred tax liabilities at 1 January 7848000 7471000 Amounts recognised in the income statement for the year 1207000 377000 Deferred tax liabilities at 31 December 9055000 7848000 The recognized provision amounts to kDKK 1.068 (2023: kDKK 822) to cover the estimated reimbursement of price reductions to customers and to cover items at customers and profit on goods that probably will be returned according to cooperation agreements. The provision is recognized based on previous experience regarding the extend of these liabilities. Other provisions 1068000 822000 1068000 822000 The provisions are expected to mature as follows: Within 1 year -1068000 -822000 After 5 years 0 0 1068000 822000 0 0 0 350000 0 350000 278000 62000 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: Lease obligations Derivative financial instruments contracts in the form of forward exchange contracts have been concluded. At the balance sheet date, the fair value of derivative financial instruments amounts to: Liabilities 175000 0 The company has entered a currency forward contract to hedge future cashflow in Swedish kroner, totalling kSEK 29,600, Norwegian kroner, totalling kNOK 22,000, Euro, totalling kEUR 1.262 and Danish kroner, totalling kDKK 6,967 for January 2025. Compared to the forward exchange rates the contract hold a negative value of kDKK 175 The hedging does not meet the accounting criterias for hedging and the loss is therefore booked in the income statement under Other payables. Value adjustment, income statement Fair value at Forward exchange contracts 175000 175000 Rental and lease obligations The following assets have been placed as security for rent obligations for a period of 6 months. 312000 286000 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 is disclosed in the Annual Report of 2care4 Group ApS, which is the management company of the joint taxation purposes. 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 Company's liability. Basis Controlling interest 2care4 Group ApS, Esbjerg Parent Company Other related parties Henrik Bisgaard Jensen, Esbjerg Member of the Board of Directors Toke Værndal, Esbjerg Member of the Board of Directors Ulrik Ernst Rasmussen Executive Board Thomas Hjarsbæk Rasmussen Executive Board Transactions The Company has chosen only to disclose transactions which have not been made on an arm's length basis in accordance with section 98(c)(6) of the Danish Financial Statements Act. Consolidated Financial Statements The Company is included in the Group Annual Report of the Parent Company of the largest and smallest group: Name Place of registered office 2care4 Group ApS Esbjerg The Annual Report of 2care4 Generics ApS for 2024 has been prepared in accordance with the provisions of the Danish Financial Statements Act applying to medium-sized enterprises of reporting class C. The accounting policies applied remain unchanged from last year. The Financial Statements for 2024 are presented in TDKK. true With reference to section 86(4) of the Danish Financial Statements Act and to the cash flow statement included in the consolidated financial statements of , the Company has not prepared a cash flow statement. 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. Leases in terms of which the Company 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 Company. 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. Income statements of foreign subsidiaries and associates that are separate legal entities are translated at transaction date rates or approximated average exchange rates. Balance sheet items are translated at the exchange rates at the balance sheet date. Exchange adjustments arising on the translation of the opening equity and exchange adjustments arising from the translation of the income statements at the exchange rates at the balance sheet date are recognised directly in equity. Income statements of enterprises that are integrated entities are translated at transaction date rates or approximated average exchange rates; however, items derived from non-monetary balance sheet items are translated at the transaction date rates of the underlying assets or liabilities. Monetary balance sheet items are translated at the exchange rates at the balance sheet date, whereas non-monetary items are translated at transaction date rates. Exchange adjustments arising on the translation are recognised in financial income and expenses in the income statement. Revenue from the sale of goods is recognised when the risks and rewards relating to the goods sold have been transferred to the purchaser, the revenue can be measured reliably and it is probable that the economic benefits relating to the sale will flow to the Company. 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 revenue for the year. Other external expenses comprise indirect production costs and expenses for premises, sales and distribution as well as office expenses, etc. With reference to section 32 of the Danish Financial Statements Act, gross profit/loss is calculated as a summary of revenue, expenses for raw materials and consumables and other external expenses. Staff expenses comprise wages and salaries as well as payroll expenses. Amortisation, depreciation and impairment losses comprise amortisation, depreciation and impairment of intangible assets and property, plant and equipment. Financial income and expenses comprise interest, financial expenses in respect of finance leases, realised and unrealised exchange adjustments, price adjustment of securities, amortisation of mortgage loans as well as extra payments and repayment under the on-account taxation scheme. 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 2care4 Group ApS and all subsidiaries of the parent company. The tax effect of the joint taxation is allocated to enterprises in proportion to their taxable incomes. Development projects on clearly defined and identifiable products and processes, for which the technical rate of utilisation, adequate resources and a potential future market or development opportunity in the enterprise can be established, and where the intention is to manufacture, market or apply the product or process in question, are recognised as intangible assets. Other development costs are recognised as costs in the income statement as incurred. When recognising development projects as intangible assets, an amount equalling the costs incurred is taken to equity under Reserve for development costs that is reduced as the development projects are amortised and written down. The cost of development projects comprises costs such as salaries and amortisation that are directly attributable to the development projects. Completed development projects are amortised on a straight-line basis using their estimated useful lives which are determined based on a specific assessment of each development project. If the useful life cannot be estimated reliably, it is fixed at 10 years. For development projects protected by intellectual property rights, the maximum period of amortisation is the remaining duration of the relevant rights. The amortisation periods used are 5 years. Intellectual property rights acquired are measured at cost less accumulated amortisation. Patents are amortised over their remaining duration, and licences are amortised over the term of the agreement, but over no more than 20 years. Intellectual property rights etc are written down to the lower of recoverable amount and carrying amount. 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. Development projects that do not meet the criteria for recognition in the balance sheet are recognised as expenses in the income statement as incurred. 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. The amortisation period is 5 year. Other intangible fixed assets are measured at cost less accumulated amortisation and less any accumulated impairment losses or at a lower value in use. 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. 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: Other fixtures and fittings, tools and equipment 3-5 years The residual values are estimated at the following percentage of the cost: Other fixtures and fittings, tools and equipment 33 % The residual value of other fixed assets is determined at nil. 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. Other fixed asset investments consist of other receivables. 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 and costs of completion. The net realisable value is determined allowing for marketability, obsolescence and development in expected selling price. The cost of goods for resale equals landed cost. The cost of finished goods and work in progress comprises the cost of raw materials, consumables and direct labour. 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. Dividend distribution proposed by Management for the year is disclosed as a separate Dividend item. Provisions are recognised when - in consequence of an event occurred before or on the balance sheet date - the Company has a legal or constructive obligation and it is probable that economic benefits must be given up to settle the obligation. 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. Deferred tax assets and liabilities are offset within the same legal tax entity. 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. Debts are measured at amortised cost, substantially corresponding to nominal value. Return on assets Profit/loss of primary operations x 100 / Total assets at year end 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