25013719 2023-01-01 2023-12-31 25013719 2023-01-01 2023-12-31 1 25013719 2023-01-01 2023-12-31 2 25013719 2022-01-01 2022-12-31 25013719 2023-12-31 25013719 2022-12-31 25013719 2021-12-31 fsa:ContributedCapitalMember 25013719 2021-12-31 fsa:ReserveForDevelopmentExpenditureMember 25013719 2022-01-01 2022-12-31 fsa:ReserveForDevelopmentExpenditureMember 25013719 2021-12-31 fsa:RetainedEarningsMember 25013719 2022-01-01 2022-12-31 fsa:RetainedEarningsMember 25013719 2021-12-31 fsa:ProposedDividendRecognisedInEquityMember 25013719 2022-01-01 2022-12-31 fsa:ProposedDividendRecognisedInEquityMember 25013719 2021-12-31 25013719 2022-12-31 fsa:ContributedCapitalMember 25013719 2023-12-31 fsa:ContributedCapitalMember 25013719 2022-12-31 fsa:ReserveForDevelopmentExpenditureMember 25013719 2023-01-01 2023-12-31 fsa:ReserveForDevelopmentExpenditureMember 25013719 2023-12-31 fsa:ReserveForDevelopmentExpenditureMember 25013719 2022-12-31 fsa:RetainedEarningsMember 25013719 2023-01-01 2023-12-31 fsa:RetainedEarningsMember 25013719 2023-12-31 fsa:RetainedEarningsMember 25013719 2022-12-31 fsa:ProposedDividendRecognisedInEquityMember 25013719 2023-01-01 2023-12-31 fsa:ProposedDividendRecognisedInEquityMember 25013719 2023-12-31 fsa:ProposedDividendRecognisedInEquityMember 25013719 2023-01-01 2023-12-31 1 25013719 2023-01-01 2023-12-31 1 25013719 2023-01-01 2023-12-31 2 25013719 2023-01-01 2023-12-31 3 iso4217:EUR xbrli:pure Marel A/S 25013719 P.O. Pedersens Vej 18, 8200 Aarhus N Arni Sigurjonsson The Board of Directors and the Management Board have today discussed and approved the an-nual report of Marel A/S for the financial year 1 January to 31 December 2023.The annual report has been prepared in accordance with the Danish Financial Statements Act.In our opinion, the financial statements give a true and fair view of the Company's assets, liabili-ties and financial position at 31 December 2023 and of the results of its operations for the finan-cial year 1 January – 31 December 2023.Further, in our opinion, the Management's review gives a fair review of the development in theCompany's operations and financial matters and the results of the Company's operations and fi-nancial position.We recommend that the annual report be approved at the annual general meeting. Aarhus Janne Sigurdsson Arni Sigurjonsson Chairman Søren K. S. Flummer Morten Munk Rasmussen To the shareholders of Marel A/S We have audited the financial statements of Marel A/S for the financial year 1 January – 31 De-cember 2023 comprising income statement, balance sheet, statement of changes in equity andnotes, including accounting policies. The financial statements are prepared in accordance withthe Danish Financial Statements Act.In our opinion, the financial statements give a true and fair view of the Company's assets, liabili-ties and financial position at 31 December 2023 and of the results of the Company's operationsfor the financial year 1 January – 31 December 2023 in accordance with the Danish FinancialStatements Act. We conducted our audit in accordance with International Standards on Auditing (ISAs) and theadditional requirements applicable in Denmark. Our responsibilities under those standards andrequirements are further described in the "Auditor's responsibilities for the audit of the financialstatements" section of our report.We are independent of the Company in accordance with the International Ethics Standards Boardfor Accountants' International Code of Ethics for Professional Accountants (IESBA Code) andthe additional ethical requirements applicable in Denmark, and we have fulfilled our other ethi-cal 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 abasis for our opinion. Management is responsible for the preparation of financial statements that give a true and fairview in accordance with the Danish Financial Statements Act and for such internal control, thatManagement determines is necessary to enable the preparation of financial statements that arefree from material misstatement, whether due to fraud or error.In preparing the financial statements, Management is responsible for assessing the Company'sability to continue as a going concern, disclosing, as applicable, matters related to going concernand using the going concern basis of accounting in preparing the financial statements unlessManagement either intends to liquidate the Company or to cease operations, or has no realisticalternative but to do so. Our objectives are to obtain reasonable assurance as to whether the financial statements as awhole are free from material misstatement, whether due to fraud or error, and to issue an audi-tor's report that includes our opinion. Reasonable assurance is a high level of assurance but is nota guarantee that an audit conducted in accordance with ISAs and the additional requirements inDenmark will always detect a material misstatement when it exists. Misstatements may arisefrom fraud or error and are considered material if, individually or in the aggregate, they couldreasonably be expected to influence the economic decisions of financial statement users made onthe basis of these financial statements.As part of an audit conducted in accordance with ISAs and the additional requirements applica-ble in Denmark, we exercise professional judgement and maintain professional scepticismthroughout the audit. We also identify and assess the risks of material misstatement of the company 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 oneresulting from error as fraud may involve collusion, forgery, intentional omissions, misrepre-sentations or the override of internal control. obtain an understanding of internal control relevant to the audit in order to design audit proce-dures that are appropriate in the circumstances, but not for the purpose of expressing an opinionon the effectiveness of the Company's internal control. evaluate the appropriateness of accounting policies used and the reasonableness of accountingestimates and related disclosures made by Management. conclude on the appropriateness of Management's use of the going concern basis of accountingin preparing the financial statements and, based on the audit evidence obtained, whether a ma-terial uncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a material uncertaintyexists, we are required to draw attention in our auditor's report to the related disclosures in thefinancial statements or, if such disclosures are inadequate, to modify our opinion. Our conclu-sions 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, includingthe disclosures, and whether the financial statements represent the underlying transactions andevents in a manner that gives a true and fair view. We communicate with those charged with governance regarding, among other matters, theplanned scope and timing of the audit and significant audit findings, including any significantdeficiencies 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 notexpress any form of assurance conclusion thereon.In connection with our audit of the financial statements, our responsibility is to read the Manage-ment's review and, in doing so, consider whether the Management's review is materially incon-sistent with the financial statements or our knowledge obtained during the audit, or otherwise ap-pears to be materially misstated.Moreover, it is our responsibility to consider whether the Management's review provides the in-formation required under the Danish Financial Statements Act.Based on the work we have performed, we conclude that the Management's review is in accordancewith the financial statements and has been prepared in accordance with the requirements of theDanish Financial Statement Act. We did not identify any material misstatement of the Manage-ment's review. Aarhus KPMGStatsautoriseret Revisionspartnerselskab 25578198 Michael E. K. Rasmussen State AuthorisedPublic Accountant Aarhus Financial highlights(EUR'000) 2023 2022 2021 2020 2019Income statement:Revenue132.431135.377127.175105.19597.627Gross profit 7.209 24.874 18.590 20.448 18.502Ordinary operating profit/loss -10.635 7.159 5.048 7.910 4.804Financial income and expenses, net-2.3202.9031.8853.1781.169Profit/loss for the year-9.8458.3726.05610.0834.988Balance sheet:Total assets 115.490 129.366 126.897 100.505 96.474Equity13.86928.72825.28223.21922.589Gross investments in property, plant andequipment 1.338 1.908 9.550 798 252Financial ratios %:Gross margin 5,4 18,4 14,6 19,4 19,0Operating margin-8,05,34,07,54,9Return oninvestment (yearly basis)-12,27,76,412,58,4Return on equity -46,2 31,0 25,0 44,0 20,7Solvency ratio 12,0 22,2 19,9 23,1 23,4The financial ratios are defined as follows:Gross margin Gross profit/loss x 100RevenueOperating margin Ordinary operating profit/loss x 100RevenueReturn on invest-Ordinary operating profit/lossmentAverage number of operating assetsReturn on equityProfit after tax x 100Average equitySolvency ratio Equity at year end x 100Total equity and liabilities at 31 DecemberDevelopment in activities and financial positionRevenue in 2023 totalled EUR 132.4 million, which is a decrease of EUR 2.9 million (2,2%) com-pared to 2022.Gross profit is highly affected by low margin projects executed in 2023, and an impairment losson a capitalized R&D project.Profit for the year after tax totalled EUR -9,8 million, which is a decrease of EUR 18.2 millioncompared to 2022.Equity totalled EUR 13.9 million at the end of the year, corresponding to a solvency ratio of 12.0%.In 2023, dividends of EUR 5.0 million was paid.The financial statements did not live up to the expectations disclosed in the latest published annualreport.Events after the balance sheet dateNo events materially affecting the Company’s financial position have occurred subsequent to thefinancial year end.Particular risksOur management has identified certain key risks to our business that demand attention. Of these,seven key risks are discussed below, together with an overview of corresponding mitigative ac-tions.Profit and earnings volatility risk:Our operational results are subject to volatility. Factors like increase in competition, geopoliticalconflicts, trade restrictions, and natural disasters might influence our ability to predict revenues,costs, and expenses affecting our growth objectives. Our business model with revenue streamsgenerated by different industries, geographical areas, and product mix allows us toachieve and maintain strong profitability throughout economic cycles.Innovation risk:Changes in technology, failure to understand customer needs, inability to enforce intellectual prop-erty rights, etc. can affect our expansion objectives. Our success depends on our ability to developand successfully introduce new products in addition to ensuring the competitiveness of existingones, including solutions and software.The Company will continue to lead the innovation game in the food processing industry by com-mitting significant resources to support its ambitious innovation objectives.People management risk:A high turnover rate, disengaged employees, gaps in workforce skills or misalignment of thoseskills with the company’s needs, an inadequate succession plan, etc. can harm our business. Work-place instability, absenteeism, and additional stress caused by the global pandemic, coupled withchanging global workforce preferences, further increase the risk of effective talent management.The Company remains a desirable place to work that attracts and retains talented employees.Throughout the pandemic, we have implemented initiatives to maintain motivation and engagewith our workforce in a personal manner. The Company is proactive in adapting its policies toalign with current global trends.Particular risksSupply chain disruption risk:The company makes use of its global footprint to mitigate supply chain risks, while continuing toadopt new supply chain technologies. Deliberate mitigations include the increasing of inventorylevels, as well as identifying substitute suppliers. The company remains agile and proactive whenprioritizing its manufacturing needs.Reputation and compliance risk:The Company operates worldwide and needs to comply with numerous and changing laws andregulations. Failure to comply can lead to penalties and adverse publicity. The evolution of socialmedia further increases the risk of reputational damage.The Company strives to preserve and enhance its brand value, build resilience, and create emo-tionally connected customers, employees, and stakeholders, while complying with all industry,regulatory, and other general standards of significance.Information security risk:Failure to secure our information systems and data could result in operational disruptions, financiallosses, reputational damage with existing and new customers, etc.The Company continues to invest in new facilities and infrastructure and in upgrading existingones to ensure their integrity and availability in case of adverse events.Foreign exchange risk:As an international company, the Company is exposed to foreign exchange risk arising from vari-ous currency movements, primarily with respect to the EUR/USD exchange rate for revenues andEUR/ISK rate on the cost side.The Company takes advantage of natural currency hedges by matching revenues and operationalcosts as economically as possible. The company’s funding is denominated in its main operationalcurrencies to create natural hedging in the balance sheet. Where necessary, financial exposure ishedged in accordance with the Company’s policy on permitted instruments and exposure limits.Intellectual capitalThe primary business foundation is to provide competitive products, solutions and technology forthe food industry improving its competitiveness. Accordingly, the Company must be able to de-velop and retain intellectual capital and know-how on products and business processes. The Com-pany therefore regularly develops policies and procedures for recruiting, training and retainingemployees and for developing and documenting products and business processes.Research and development activitiesThe Company's research and development activities comprise regular development of new andexisting products and processes for the food industry. The Company is committed to developingindustry-leading technology in partnership with our customers.Annually, we invest approximately 6-8% of revenues in research and development, which translat-ed to EUR 11.6 million in 2023 including an impairment loss of EUR 4.9 million for a develop-ment project that was not feasible form a technical and commercial point of view.The level of research and development cost is essential to the creation of transformative solutionsfor the food processing industry and securing our competitive advantage, which in turn deliver or-ganic growth to the company.Branches in UruguayThe company has an established Branch in Uruguay operating under the name Marel A/S SucursalUruguay performing sales and service activities in the local market. In 2023, the branch had anoperating profit of EUR 21.000 before taxes. Principal activitiesMarel is a leading global provider of advanced processing equipment, systems, software and ser-vices to the poultry, meat and fish industries. The company has a global reach with local pres-ence in over 30 countries, with sales and service engineers servicing customers in over 140 coun-tries.The Company’s business model is based on providing full-line solutions and services to the foodprocessing industry, one of the most important value chains in the world. With an emphasis oninnovation, close partnership with customers, and global and local reach, this model supports ourvision of a world where quality food is produced sustainably and affordably.Our revenue streams consist of sales of standard equipment, major projects, and recurring salesof parts, services, and software licenses. We have a global customer base diversified across dif-ferent industries, product mixes, and geographical areas, allowing us to achieve and maintainstrong profitability throughout economic cycles. Corporate social responsibilityMarel A/S is part of the Marel Group that has signed the United Nations Global Compact. TheCompany meets the statutory requirement for Corporate Social Responsibility by following theConsolidated Sustainability Policy for Marel Group. For the statutory reporting on Corporate So-cial Responsibility, according to §99a in the Danish Financial Statement Act, we refer to the offi-cial CSR reporting for the group which can be found in the ESG report for Marel on the website:https://marel.com/en/investors/financials#sustainability-and-esg Policies and goals for the underrepresented genderThis section constitutes Marel A/S’ reporting on gender diversity according to §99b in the DanishFinancial Statements Act.The Marel Group promotes diversity in all its locations worldwide. We must ensure that Marel hasa diverse and truly inclusive culture. With this in mind, we have set targets for achieving a better-balanced gender representation across managerial levels and included targets to that effect in oursustainability program.We understand the value of reflecting the markets and communities we serve across all dimensions– whether that is servicing our customers in their local languages, listening to the needs of our endconsumers, moving towards fully local management teams in the regions or hiring and developingmore diverse talent in technical roles. The Company’s employees, prospective employees, con-tractors, consultants, suppliers, and customers must be treated equally and should not be discrim-inated against on the grounds of age, race or ethnicity, nationality, or on any other aspect.We want to lead by example and have already taken steps towards this with a well gender-balancedboard and executive team. We are also committed to ensuring the right diversity and set of com-petences at all managerial levels to meet future challenges. We hope to be part of moving ourindustry towards more diversity and more inclusivity going forward, and feel very proud that bothour Board and Executive team are in the optimal gender balance within the 40-60% ratio.In 2021, the Company introduced a new Global Diversity and Inclusion Policy with additionalfocus on inclusion and accountability. To embed D&I in our culture, it was decided to do morethan offer simple training. Instead, almost 40 employees from all around the globe stepped forwardand became D&I champions and completed a two-day workshop. We now have the foundation toimplement and follow through with D&I initiatives supported by a diverse group of enthusiasticliaisons.In 2023 we continued to host diversity and inclusion webinars in 12 languages for all employees.These interactive sessions were led by Marel employees and have now been completed by 59% ofemployees generating positive feedback.Policy for the gender quota in the Board of DirectorsUnder section 99b of the Danish Financial Statement Act, the Board of Directors of Marel A/S haslaid down the Company's policy to increase the share of the underrepresented gender in the Com-pany's Management in general.Policies and goals for the underrepresented genderPolicy for the gender quota in the Board of DirectorsThe Board of Directors of Marel A/S consists of three men. As this is not compliant with theDanish Business Authority’s recommendations.Marel A/S has not succeeded in promoting a woman for the position during 2023, as no qualifiedfemale representative could be found on short notice.We do not want to create instability in the management of the company by just substituting amale with a female without any other reason. But if the need for changes occurs during 2024, wewill strive to find a female candidate.Policy for other management levelsMarel A/S wishes that the gender quota of society between men and women is reflected in theCompany's management level. Through this policy, the Company will create an equal distributionof sexes at management level.Policy for other management levels:In 2023 we have obtained equal representation of the sexes, and therefore we are not obliged toset further targets.2023Top management bodyTotal number of members 3The % of underrepresented gender0 %The target in % for the underrepresented gender 33 %The year of fulfillment of the target2025Other management levelsTotal number of members2The % of underrepresented gender 50 %The target in % for the underrepresented gender50%Managers of the Company should be elected / employed based on their overall qualifications, andit is essential that the managers have the right qualifications, irrespective of their sex. The Boardof Directors, however, acknowledges the advantages of a broad-based management at all levelstaking into consideration experience, specialised knowledge, culture and sex, etc.Goals and policies for the underrepresented genderMarel A/S is in a line of business, which has a predominance of male employees. The presentmanagement team (3. Management layer) comprises eight persons of which on one is female.In the management team, we seek diversity in line with Group policy. Marel A/S aims to obtainequality between co-workers, and finds that the positions in the management team are equallysuitable for both men and women. However we do not have frequently changes in the managementgroup.In case a manager leaves, Marel A/S will strive to get a more diverse management team, as wewant to improve the gender balance for the future, as well as making a systematic effort to givethe employees a good work life balance.The measures initiated have not yet had any changes in the gender quota of the 3. managementlayer during 2023, as no replacements has taken place.OutlookThe continued geopolitical tensions, especially in Europe is still causing uncertainty. The companyhas a balanced exposure to global economies and local markets through its global reach, innovativeproduct portfolio and diversified business mix. Indeed, our business model has proved to be resil-ient during times of turbulence. Our global reach and years of investment in innovation and digitalsolutions have proved to be key differentiating factors for the Company. These will enable us topush forward and help us navigate geopolitical tensions in the long run. That path is of course oneof discovery to some extent, with inherent challenges and learnings, but one that team Marel willmanage with its characteristic determination.In 2024 we are moving our Central Warehouse function to Holland where we are centralizing allspare part handling for our European production sites. Therefore, we expect a drop in revenue ofapp. EUR 75 million per year when fully implemented but expect to be compensated for the lostmargins through our Transfer Pricing setup.We also expect to recover the margin level on equipment and therefore we expect EBIT betweenEUR 4 – 8 million. These expectations are subject to uncertainties due the increased geopoliticaltensions mentioned above. Policy for the gender quota in the Board of DirectorsUnder section 99b of the Danish Financial Statement Act, the Board of Directors of Marel A/S haslaid down the Company's policy to increase the share of the underrepresented gender in the Com-pany's Management in general.Policies and goals for the underrepresented genderPolicy for the gender quota in the Board of DirectorsThe Board of Directors of Marel A/S consists of three men. As this is not compliant with theDanish Business Authority’s recommendations.Marel A/S has not succeeded in promoting a woman for the position during 2023, as no qualifiedfemale representative could be found on short notice.We do not want to create instability in the management of the company by just substituting amale with a female without any other reason. But if the need for changes occurs during 2024, wewill strive to find a female candidate. Policy for other management levelsMarel A/S wishes that the gender quota of society between men and women is reflected in theCompany's management level. Through this policy, the Company will create an equal distributionof sexes at management level.Policy for other management levels:In 2023 we have obtained equal representation of the sexes, and therefore we are not obliged toset further targets. 3 0 0.33 2025 2 0.50 0.50 Reporting on data ethicsMarel is committed to the responsible and transparent use and protection of personal data entrustedto us by customers, employees, and others. We provide our employees and contractors with train-ing on global privacy principles in accordance with our commitment to respect and safeguard per-sonal data.Our Data Ethics Policy are governed by Marel Compliance, and they will regularly assess whetherthe policy needs to be updated and initiate relevant updates. Marel Compliance will supervise andreport on the day-to-day work of using the data ethic principles of the Policy. Marel Compliancemonitors compliance with this Policy with relevant checkpoints, communicating the reports sig-nificant risks or breaches to the Marel Executive Board.Example of the practices we follow to help ensure the integrity of our data privacy processes in-clude:Example of the practices we follow to help ensure the integrity of our data privacy processes in-clude: Collecting and using the minimum amount of personal data necessary to achieve our businessPurposes. Sharing personal data only with individuals who have a legitimate need for it and will protectit. Maintaining appropriate administrative, technical, and organizational security measures to pro-tect personal data. Training our employees on the responsible use of personal information 132431000 135377000 125222000 110503000 7209000 24874000 10421000 8447000 7423000 9268000 -10635000 7159000 1703000 2420000 384000 2223000 4407000 1740000 -12955000 10062000 -3110000 1690000 -9845000 8372000 225000 761000 3558000 6442000 0 2000 3783000 7205000 18460000 17697000 126000 148000 1640000 1221000 39000 1256000 20265000 20322000 35378000 35378000 35378000 35378000 59426000 62905000 28328000 32726000 2331000 2497000 3516000 9022000 10982000 18337000 2300000 0 744000 747000 35000 25000 19908000 30628000 7828000 3107000 56064000 66461000 115490000 129366000 1342000 1342000 2775000 4279000 9752000 18107000 0 5000000 13869000 28728000 2141000 3558000 542000 640000 89000 96000 2772000 4294000 762000 472000 64000000 64000000 2647000 2652000 67409000 67124000 567000 472000 1068000 2338000 7037000 5742000 16654000 15248000 0 370000 6114000 5049000 31440000 29219000 98849000 96343000 115490000 129366000 1342000 2855000 16085000 5000000 25282000 -73000 -73000 1424000 6949000 0 0 5000000 5000000 5000000 -5000000 0 1342000 4279000 18107000 5000000 14000 14000 -1504000 -8341000 5000000 5000000 0 0 0 1342000 2775000 9752000 0 The annual report of Marel A/S for 2023 has been prepared in accordance with the provisionsapplying to reporting class C large enterprises under the Danish Financial Statements Act.Foreign currency translationOn initial recognition, transactions denominated in foreign currencies are translated at theexchange rates at the transaction date. Foreign exchange differences arising between theexchange rates at the transaction date and at the date of payment are recognised in the incomestatement as financial income or financial expenses.Receivables and payables and other monetary items denominated in foreign currencies aretranslated at the exchange rates at the balance sheet date. The difference between the exchangerates at the balance sheet date and at the date at which the receivable or payable arose or wasrecognised in the latest financial statements is recognised in the income statement as financialincome or financial expenses.Non-current assets acquired in foreign currencies are measured at the exchange rate at thetransaction date.Consolidated financial statementsIn accordance with section 112 (1) of the Danish Financial Statements Act, the Company hasnot prepared consolidated financial statements, as the Company is a subsidiary and as thefinancial statements of the Company and its subsidiaries are included in the consolidatedfinancial statements of the parent company, Marel hf., Iceland.Income statementRevenueRevenue from the sale of goods and services is recognised in the income statement providedthat delivery and transfer of risk to the buyer have taken place before year-end and that theincome can be reliably measured and is expected to be received. Contract work in progress isrecognised at the selling price of the work performed. Revenue is measured excl. VAT andtaxes and less discounts granted in connection with the sale.Production costsProduction costs comprise costs incurred in generating the revenue for the year. Such costsinclude direct and indirect costs for raw materials, goods for resale and consumables, wagesand salaries, rent and leases, and depreciation of production plant and other assets used forproduction purposes. Write-down for inventories and write-down in connection withanticipated bad debt losses on contract work in progress are also included. Production costsalso comprise development costs that do not qualify for capitalisation and amortisation ofcapitalised development costs.Distribution costsCosts incurred in distributing goods sold during the year and in conducting sales campaigns,etc. during the year are recognised as distribution costs. Also, costs relating to sales staff,advertising and depreciation are recognised as distribution costs.Administrative expensesAdministrative expenses comprise expenses incurred during the year for Companymanagement and administration, including expenses for administrative staff, management,office premises, insurance and office expenses, etc. and depreciation.Other operating income or operating costsOther operating income and cost comprise items secondary to the activities of the Company,including gains and losses on the disposal of non-current assets.Result from investments in subsidiariesResult from investments in subsidiaries comprises dividends from subsidiaries recognised asincome in the income statement when adopted at the General Meeting of the subsidiary.Financial income and expensesFinancial income and expenses comprise interest income and expense, finance charges inrespect of finance leases, realised and unrealised gains and losses on securities, payables andtransactions denominated in foreign currencies, amortisation of financial assets and liabilitiesas well as surcharges and refunds under the on-account tax scheme, etc.Tax on profit/loss for the yearTax for the year comprises current tax for the year end and changes in deferred tax, includingchanges in tax rates. The tax expense relating to the profit/loss for the year is recognised in theincome statement at the amount attributable to the profit/loss for the year and directly in equityat the amount attributable to entries directly in equity.Balance sheetIntangible assetsDevelopment projects comprise costs directly and indirectly attributable to the Company'sdevelopment activities and which comply with the criteria for recognition under the DanishFinancial Statements Act. Capitalised development projects are measured at cost lessaccumulated amortisation or at recoverable amount if the latter is lower. Capitaliseddevelopment projects are amortised on a straight-line basis of the estimated useful lives aftercompletion of the development project. The amortisation period is usually five years.Goodwill is measured at cost less accumulated amortisation and impairment losses.Goodwill is amortized on a straight-line basis over the remaining life.Amortisation is provided on a straight-line basis over the expected useful lives of the assets.The expected useful lives are as follows:Goodwill 10yearsSoftware 3 - 5yearsProperty, plant and equipmentLand and buildings, plant and machinery, fixtures and fittings, as well as other plant andequipment are measured at cost less accumulated depreciation. Land is not depreciated.The basis of depreciation is cost less expected residual value at the end of the useful life.Cost comprises the purchase price and any costs directly attributable to the acquisition until thedate when the asset is available for use.Where individual components of an item of property, plant and equipment have different usefullives, they are accounted for as separate items, which are depreciated separately. The basis ofdepreciation is cost less any projected residual value after the end of the useful life.Depreciation is provided on a straight-line basis over the estimated useful lifeDepreciation is provided on a straight-line basis over the expected useful lives of the assets.The expected useful lives are as follows:Buildings 20 - 55yearsPlant and machinery3 - 10yearsFixtures, fittings and other equipment 4 - 6yearsThe useful life and residual value are reassessed annually. Changes are treated as accountingestimates, and the effect on depreciation is recognised prospectively.Gains and losses on the disposal of property, plant and equipment are determined as thedifference between the selling price less selling costs and the carrying amount at the date ofdisposal. Gains or losses are recognised in the income statement as other operating income oroperating costs.Leased assetsOn initial recognition, leases for fixed assets that transfer substantially all risks and rewardsincident to ownership to the Company (finance leases) are recognised in the balance sheet atthe lower of fair value and the net present value of future lease payments. When the net presentvalue is calculated, the interest rate implicit in the lease or the incremental borrowing rate isused as the discount factor. Assets held under finance leases are subsequently depreciated asthe Company's other fixed assets.Leased assetsThe capitalised residual lease obligation is recognised in the balance sheet as a liability, and theinterest element of the lease payment is recognised in the income statement over the term of thelease.Short term leases and leases of low-value assetsShort term leases that have a lease term of 12 month or less and leases of low-value assets arenot recognised as right of use assets and lease liability and the lease payments associated withthese leases are expensed as a straight line base over the lease term.The Company's obligation relating to these leases is disclosed in contingent liabilities.Equity investmentsEquity investments in subsidiaries are recognised in the balance sheet at cost. Write-down ismade to the lower of cost and recoverable amount.Cost is reduced by dividends received that exceed accumulated earnings after the date ofacquisition.For subsidiaries where the parent company has a legal or constructive obligation to cover thedeficit equity investments are written down corresponding to the parent company's share ofnegative equity. Any receivable from these enterprises is written down by the parent company'sshare of the negative net asset value. If the net asset value exceeds the amount owed, theresidual amount is recognised under provisions.Impairment of non-current assetsThe carrying amount of intangible assets and property, plant and equipment as well asinvestments in subsidiaries is subject to an annual test for indications of impairment other thanthe decrease in value reflected by depreciation or amortisation.Impairment tests of individual assets or groups of assets are conducted when there is anindication that they may be impaired. Write-down is made to the recoverable amount if this islower than the carrying amount.The recoverable amount is the higher of an asset's net selling price and its value in use. Thevalue in use is determined as the present value of the anticipated net cash flows from the use ofthe asset or group of assets.Previously recognised write-downs are reversed when the basis for the write-down no longerexists. Write-down of goodwill is not reversed.InventoriesInventories are measured at cost in accordance with the average cost formula. Where the netrealisable value is lower than cost, inventories are written down to this lower value.Goods for resale and raw materials and consumables are measured at cost, comprising purchaseprice plus delivery costs.Finished goods and work in progress are measured at cost, comprising the cost of rawmaterials, consumables, direct wages and salaries as well as direct and indirect productionoverheads.The net realisable value of inventories is calculated as the sales amount less costs ofcompletion and costs necessary to make the sale and is determined taking into accountmarketability, obsolescence and development in expected sales price.ReceivablesReceivables are measured at amortised cost.Write-down is made for bad debt losses where there is an objective indication that a receivableor a receivable portfolio has been impaired. If there is objective evidence that an individualreceivable has been impaired, write-down is made on an individual basis.Receivables with no objective indication of individual impairment are assessed for objectiveindication of impairment on a portfolio basis. The portfolios are primarily composed on thebasis of the country of domicile and credit ratings of the debtors in accordance with the creditrisk management policy of the Company. The objective indicators used in relation to portfoliosare determined based on historical loss experience.Write-downs are calculated as the difference between the carrying amount of the receivablesand the present value of the expected cash flows, including the realisable value of any collateralreceived. The effective interest rate for the individual receivable or portfolio is used as discountrate.Contract work in progressContract work in progress is measured at the selling price of the work performed. The sellingprice is measured by reference to the stage of completion at the balance sheet date and totalexpected income from the work. The degree of completion is computed as the proportionbetween resources spent and total estimated resources for the completion of the contract. Whenit is probable that contract work in progress will result in losses, the estimated loss isrecognised in the income statement.When the selling price of contract work in progress cannot be measured reliably, the contractwork in progress is measured at the lower of costs incurred and net realisable value.The individual work in progress is recognised in the balance sheet as receivables or payablesdepending on the net value of the sales amount less on-account invoicing and prepayments.Selling costs and costs incurred in securing contracts are recognised in the income statement asincurred.PrepaymentsPrepayments comprise costs incurred concerning subsequent financial years, such as officerent, insurance premiums and licences.EquityDividends:The expected dividend payment for the year is disclosed as a separate item under equity.Reserve for development costs:The reserve for development costs comprises capitalised development costs. The reservecannot be used for dividend, distribution or to cover losses. If the recognised development costsare sold or in other ways excluded from the Company's operations, the reserve will bedissolved and transferred directly to the distributable reserves under equity. If the recogniseddevelopment costs are written down, the part of the reserve corresponding to the write-down ofthe developments costs will be reversed. If a write-down of development costs is subsequentlyreversed, the reserve will be re-established. The reserve is reduced by amortisation ofcapitalised development costs on an ongoing basis.Corporation tax and deferred taxCurrent tax payable and receivable is recognised in the balance sheet as tax computed on thetaxable income for the year, adjusted for tax on the taxable income of prior years and for taxpaid on account.Deferred tax is measured using the balance sheet liability method on all temporary differencesbetween the carrying amount and the tax value of assets and liabilities. Where alternative taxrules can be applied to determine the tax base, e.g. regarding shares, deferred tax is measuredbased on the planned use of the asset or settlement of the liability, respectively.Deferred tax assets, including the tax value of tax loss carryforwards, are measured at theexpected value of their realisation; 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. Any deferred net assets aremeasured at net realisable values.Deferred tax is measured according to the tax rules and at the tax rates applicable at the balancesheet date when the deferred tax is expected to crystallise as current tax. Changes in deferredtax due to changes in tax rates are recognised in the income statement.The Company is jointly taxed with other Danish subsidiaries and affiliated companies. CurrentDanish corporation tax is settled by the parent company, which is the administrative company,and allocated between the jointly taxed companies in proportion to their taxable income.ProvisionsProvisions comprise expected costs of warranties, losses on work in progress, restructurings,etc.Liabilities other than provisionsFinancial liabilities comprising amounts owed to credit institutions, trade payables andpayables to group enterprises are recognised at the date of borrowing at cost, corresponding tothe proceeds received less transaction costs paid. In subsequent periods, financial liabilities aremeasured at amortised cost.Financial liabilities also include the capitalised residual obligation on finance leases.Other liabilities are measured at net realisable value.Segment informationSegment information is provided on business segments and geographical markets. The segmentinformation is in line with the Company's accounting policies, risks and internal financialmanagement. true Applied exemption clauses in the Danish Financial Statements ActIn accordance with section 86(4) of the Danish Financial Statements Act, the Company has notprepared a cash flow statement, as this is included in the consolidated cash flow statement ofthe parent company, Marel hf., Iceland.Pursuant to section 96(3) of the Danish Financial Statements Act, the Company has notdisclosed the fee to the auditors appointed at the annual general meeting.Pursuant to section 98b(3) of the Danish Financial Statements Act, the Company has notdisclosed remuneration of Management as only one member of the Management Board isremunerated.The financial statements of Marel A/S are included in the consolidated financial statements ofMarel hf., Austurhraun 9, 210 Gardabaer, Iceland. The consolidated financial statements can bedownloaded at www.marel.com. Wages and salaries, etc. 33.969 33.448Pensions 2.979 2.453Other social security costs 529 48237.477 36.382Staff costs are recognised as follows:Production 26.214 25.690Distribution 6.632 6.072Administration 4.630 4.62037.477 36.382Pursuant to section 98b(3) of the Danish Financial Statements Act, the Company has notdisclosed remuneration of Management as only one member of the Management Board isremunerated. 377 373 The identified operating segments comprise the three industries, which are the reportingsegments. These operating segments form the basis for managerial decision taking.The segment information for the period ended 31 December 2023 is as follows:PoultryFishMeatOthersTotalRevenue 59.193 34.292 36.263 2.683 132.431Geographical informationThe Companys operating segments operate in four main geographical areas20232022Revenue(EUR'000) (EUR'000)Denmark7.0246.913Europe other70.14495.265North America32.94718.165Other countries22.31515.035Total 132.431 135.377 Land and building 576 438Plant and machinery 44 46Fixtures, fittings and other equipment 638 621Leasehold improvements 0 01.259 1.105Depreciation are recognised as follows:Production 263 243Distribution 340 365Administration 656 4971.259 1.105 Result from investments in subsidiariesDividends from group enterprises 1.703 2.4201.703 2.420 Other financial income 384 2.223384 2.223 Interest expense, group companies 3.716 1.258Interest expense, leasing 31 14Other financial expenses 660 4684.407 1.740 Tax on profit/loss for the year is specified as follows:Current tax 1.780 -1.552Correction tax prior years -87 -45Deferred tax 1.417 -131Correction deferred tax prior years 0 383.110 -1.690 1504000 -1424000 Cost at 1 January 22.856 5.620 28.476Additions 0 2.665 2.665Transferred 421 -421 0Cost at 31 December 23.277 7.864 31.141Impairment loss and amortisation at 1 January 22.034 0 22.034Amortisation and impairment for the year 601 4.948 5.549Impairment loss and amortisation at 31 December 22.635 4.948 27.583Carrying amount at 31 December 642 2.916 3.558Completed development projects relate to the deveopment and test of machines for the foodprocessing industry and are usually amortised over five years.Ongoing development projects relate to the development and test of machines for the foodprocessing industry and the majority of the projects are expected to be completed within 1-3years where considerable economic benefits are expected.Software GoodwillCost at 1 January 625 8.295Foreign exchange adjustments at 1 January -1 0Cost at 31 December 624 8.295Impairment loss and amortisation at 1 January 623 7.534Foreign exchange adjustments at 1 January -1 0Amortisation for the year 1 536Impairment loss and amortisation at 31 December 624 8.070Carrying amount at 31 December 0 225Goodwill is amortised over 10 years, as the service business is linked to equipment with a longlifespan. Cost at 1 January 20.643 1.057 1.530 1.256Foreign exchange adjustments at 1 January 0 0 0 0Additions 0 23 180 2Transferred 990 0 229 -1.219Cost at 31 December 21.633 1.080 1.939 39Impairment loss and depreciation at 1 January3.0129091.1850Foreign exchange adjustments at 1 January0000Transferred0000Disposals00-90Depreciation for the year 436 44 163 0Impairment loss and depreciation at 31December3.448 954 1.339 0Carrying amount at 31 December 18.185 126 600 39Leased assetsCost at 1 January 202 0 1.918 0Foreign exchange adjustments 0 0 0 0Additions 349 0 784 0Disposals -16 0 -978 0Cost at 31 December 536 0 1.724 0Impairment loss and depreciation at 1 January 136 0 1.042 0Foreign exchange adjustments 0 0 0 0Disposals -16 0 -835 0Depreciation for the year 140 0 475 0Impairment loss and depreciation at 31December260 0 683 0Carrying amount at 31 December 275 0 1.041 0Total18.4601261.64039 Equity investments in group companiesCost at 1 January 35.378 35.378Cost at 31 December 35.378 35.378Carrying amount at 31 December 35.378 35.378Specification of subsidiaries Owner- Profit/Registeredsee latest published financial statements ship loss Equityoffice(EUR'000) (EUR'000)Marel Salmon A/S Denmark 100% 3.030 17.974Marel New Zealand Limited New Zealand 100% 191 1.259Marel GB Ltd. England 100% 794 7.395Marel Food Systems Ltd. Ireland 100% 110 1.730Marel Polska Sp. z.o.o. Poland 100% 525 745Marel Chile SPA Chile 100% 306 1.645Marel Equipameintos Industriales S.A. Uruguay 100% 41 229 Finished goods 7.758 6.193Work in progress 20.568 26.530Raw materials and consumables 2 328.328 32.726Contract work in progress 2.902 8.302Progress billings -454 -1.618Net value at 31 December 2.449 6.684- recognised as follows:Contract work in progress 3.516 9.022Prepayments from customers -1.068 -2.338Net value at 31 December 2.449 6.684In the above, numbers are intercompany projects included with a sales value of EUR 3,288thousand and progress billings of EUR 391 thousand or a net value of EUR 2,897 thousand withEUR 3,288 thousand reported under assets and EUR 391 thousand reported under liabilities. Deferred tax at 1 January 3.558 3.463Deferred tax for the year recognised in profit/loss for the year -1.417 95Deferred tax at 31 December 2.141 3.558Deferred tax relates to:Intangible assets 832 1.584Property, plant and equipment 835 959Retaxation obligation, foreign entities 13 13Current assets 463 1.001Provisions -2 0Leased assets and liabilities 1 12.141 3.558 The Company's share capital amounts to EUR 1,342 thousand, broken down on a share with aface value of EUR 134.2 thousand. No shares carry special rights.2023 2022 2021 2020 2019Share capital for the last 5 years 1.342 1.342 1.342 1.342 1.342 2023 2022WarrantiesBalance at 1 January 640 512Adjustments for the year -98 128Balance at 31 December 542 640Date of maturity is expected to be 0-1 yearOther provisionsReorganisation provision 89 76Other provisions 0 2089 96Date of maturity is expected to be 0-1 year Finance leases 567 762 1.329 0Payables to group enterprises 16.654 64.000 80.654 0Other payables 6.114 2.647 8.761 2.40023.334 67.409 90.743 2.400 Marel A/S' related parties comprise the following:Control:Marel hf., Austurhraun 9, Gardabaer, IcelandMarel hf. Holds the majority of the share capital in the CompanyMarel A/S is part of the consolidated financial statements of Marel hf. Austurhraun 9, Gardabaer,Iceland, which is the smallest and largest group in which the Company is included as asubsidiary.The consolidated financial statements of Marel hf. can be obtained by contacting the Company orat the following website: www.marel.com.Related party transactions:GroupSale of goods 111.261 113.413Production costs -48.357 -54.643Distribution costs -2.638 -76Administrative expenses -7.965 3.787Interest -3.716 -1.258Total 48.585 61.223Parent CompanyProduction costs 3.201 0Distribution costs 2.265 0Administrative expenses 2.356 0Dividends 5.000 -5.000Total 5.000 -5.000Payables and receivables to group enterprises are disclosed in the balance sheet and in notes 14and 19, and interest expense and received dividend are disclosed in note 5 and 7. Collateral, contingent liabilities and lease liabilitiesThe Company is jointly taxed with other Danish group companies. Marel A/S is registred as theadministrative company, together with the other companies included in the joint taxation, theCompany has joint and several unlimited liability for Danish corporation taxes and withholdingtaxes on dividends, interest and royalties. Corporation taxes payable and withholding taxeswithin the joint taxation unit totalled a receivable of DKK 513 thousand at 31 December 2023.Any subsequent corrections to the taxable joint taxation income or withholding taxes may implythat the Company's liability will increase.Cash at bank and in hand amounting to EUR 7,829 thousand has been pledged as security for agroup cash pool. Annual report Auditor's report on audited financial statements ParsePort XBRL Converter 2023-01-01 2023-12-31 2022-01-01 2022-12-31 2024-06-28 Reporting class C, large enterprise 1969-05-19 2024-06-28 25578198 KPMG P/S Dampfærgevej 28 2100 København Ø Opinion Basis for Opinion 2023-06-28 mne41364 Michael E.K. Rasmussen State Authorised Public Accountant mne41364 25578198 KPMG Statsautoriseret Revisionspartnerselskab