36423544 2022-12-31 36423544 2021-12-31 36423544 2020-12-31 36423544 2024-12-31 36423544 2023-12-31 36423544 2024-01-01 fsa:ContributedCapitalMember 36423544 2024-01-01 fsa:ReserveForDevelopmentExpenditureMember 36423544 2024-01-01 fsa:ReserveForCurrentValueOfHedgingMember 36423544 2024-01-01 fsa:RetainedEarningsMember 36423544 2024-12-31 fsa:ContributedCapitalMember 36423544 2024-12-31 fsa:ReserveForDevelopmentExpenditureMember 36423544 2024-12-31 fsa:ReserveForCurrentValueOfHedgingMember 36423544 2024-12-31 fsa:RetainedEarningsMember 36423544 2024-01-01 fsa:CompletedDevelopmentProjectsMember 36423544 2024-01-01 fsa:AcquiredOtherSimilarRightsMember 36423544 2024-01-01 fsa:GoodwillMember 36423544 2024-01-01 fsa:DevelopmentProjectsInProgressMember 36423544 2024-12-31 fsa:CompletedDevelopmentProjectsMember 36423544 2024-12-31 fsa:AcquiredOtherSimilarRightsMember 36423544 2024-12-31 fsa:GoodwillMember 36423544 2024-12-31 fsa:DevelopmentProjectsInProgressMember 36423544 2024-01-01 fsa:LandAndBuildingsMember 36423544 2024-01-01 fsa:PlantAndMachineryMember 36423544 2024-01-01 fsa:FixturesFittingsToolsAndEquipmentMember 36423544 2024-01-01 fsa:PropertyPlantAndEquipmentInProgressMember 36423544 2024-12-31 fsa:LandAndBuildingsMember 36423544 2024-12-31 fsa:PlantAndMachineryMember 36423544 2024-12-31 fsa:FixturesFittingsToolsAndEquipmentMember 36423544 2024-12-31 fsa:PropertyPlantAndEquipmentInProgressMember 36423544 2024-12-31 fsa:LongtermMortgageLoansMember 36423544 2023-12-31 fsa:LongtermMortgageLoansMember 36423544 2024-12-31 fsa:DepositsLongtermLiabilitiesOtherThanProvisionsMember 36423544 2023-12-31 fsa:DepositsLongtermLiabilitiesOtherThanProvisionsMember 36423544 2024-12-31 fsa:LongtermDeferredIncomeMember 36423544 2023-12-31 fsa:LongtermDeferredIncomeMember 36423544 2024-12-31 fsa:ShorttermDeferredIncomeMember 36423544 2023-12-31 fsa:ShorttermDeferredIncomeMember 36423544 2024-01-01 2024-12-31 36423544 2024-01-01 2024-12-31 1 36423544 2024-01-01 2024-12-31 memberOfBoardIdentifier_executive_board_2 36423544 2024-01-01 2024-12-31 memberOfBoardIdentifier_executive_board_3 36423544 2024-01-01 2024-12-31 memberOfBoardIdentifier_board_of_director_1 36423544 2024-01-01 2024-12-31 memberOfBoardIdentifier_board_of_director_2 36423544 2024-01-01 2024-12-31 memberOfBoardIdentifier_board_of_director_3 36423544 2024-01-01 2024-12-31 memberOfBoardIdentifier_board_of_director_4 36423544 2024-01-01 2024-12-31 memberOfBoardIdentifier_board_of_director_5 36423544 2024-01-01 2024-12-31 memberOfBoardIdentifier_board_of_director_6 36423544 2024-01-01 2024-12-31 memberOfBoardIdentifier_board_of_director_7 36423544 2024-01-01 2024-12-31 memberOfBoardIdentifier_board_of_director_8 36423544 2024-01-01 2024-12-31 2 36423544 2022-01-01 2022-12-31 36423544 2021-01-01 2021-12-31 36423544 2020-01-01 2020-12-31 36423544 2023-01-01 2023-12-31 36423544 2024-01-01 2024-12-31 fsa:ContributedCapitalMember 36423544 2024-01-01 2024-12-31 fsa:ReserveForDevelopmentExpenditureMember 36423544 2024-01-01 2024-12-31 fsa:ReserveForCurrentValueOfHedgingMember 36423544 2024-01-01 2024-12-31 fsa:RetainedEarningsMember 36423544 2024-01-01 2024-12-31 fsa:ManagementMember 36423544 2023-01-01 2023-12-31 fsa:ManagementMember 36423544 2024-01-01 2024-12-31 fsa:BoardOfDirectorsMember 36423544 2023-01-01 2023-12-31 fsa:BoardOfDirectorsMember 36423544 2024-01-01 2024-12-31 fsa:CompletedDevelopmentProjectsMember 36423544 2024-01-01 2024-12-31 fsa:AcquiredOtherSimilarRightsMember 36423544 2024-01-01 2024-12-31 fsa:GoodwillMember 36423544 2024-01-01 2024-12-31 fsa:DevelopmentProjectsInProgressMember 36423544 2024-01-01 2024-12-31 fsa:LandAndBuildingsMember 36423544 2024-01-01 2024-12-31 fsa:PlantAndMachineryMember 36423544 2024-01-01 2024-12-31 fsa:FixturesFittingsToolsAndEquipmentMember 36423544 2024-01-01 2024-12-31 fsa:PropertyPlantAndEquipmentInProgressMember iso4217:DKK pure Årsrapport 33771231 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab Strandvejen 44 2900 Hellerup 2024-01-01 2023-01-01 2024-12-31 2023-12-31 36423544 Norlys Fibernet A/S Tietgensvej 4 8600 Silkeborg Silkeborg 2014-11-04 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab 33771231 Jens Chr. Skous Vej 1 8000 Aarhus C Denmark 89 32 00 00 aarhus@pwc.dk 2025-04-24 Christina Cederfeld de Simonsen Regnskabsklasse C, stor virksomhed Revisionspåtegning The Executive Board and Board of Directors have today considered and adopted the Annual Report of Norlys Fibernet A/S 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. 2025-04-03 Silkeborg Carsten Bryder Thejls CEO Stine Aare Jensen CFO Gert Vinther Jørgensen Chairman Dennis van Alphen Vice chairman Christian Greve Malte Larsen Jess Julin Ibsen Anne Mette Aaby Aaes Jakobus Maarten Alfrink Alexandre Edouard Jean Pieyre To the shareholder of Norlys Fibernet A/S 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 Norlys Fibernet A/S 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. Aarhus C 2025-04-03 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab Michael Groth Hansen State Authorised Public Accountant mne33228 Line Borregaard State Authorised Public Accountant mne34353 1132134000 906046000 856558000 892849000 401481000 340318000 105469000 -36044000 -87753000 -99709000 -22940000 -16544000 9946000 -45831000 -80306000 9971265000 3739352000 3563194000 769155000 1258307000 1409524000 488370000 528768000 2402224000 893351000 939182000 0.878 0.879 0.789 0.443 0.397 0.175 0.119 0.093 -0.04 -0.102 0.022 0.014 0.011 -0.01 -0.025 0.2 0.207 0.241 0.239 0.264 -0.029 -0.04 0.006 -0.05 -0.082 Reference is made to the statement of social responsibility, included in the consolidated accounts for Norlys a.m.b.a., CVR no. 26382645 Reference is made to the statement of policy for data ethics, included in the consolidated financial statements for Norlys a.m.b.a., CVR no. 26382645. 1388912000 1298396000 484473000 561467000 1506000 1430000 317143000 337457000 338769000 382005000 1218979000 1141831000 364924000 426174000 610443000 561263000 869000 0 242743000 154394000 40258000 59566000 362307000 332558000 -79306000 -118598000 -16022000 -26407000 -63284000 -92191000 -63284000 -92191000 217035000 193557000 130249000 131529000 72593000 44879000 62143000 61841000 482020000 431806000 1518000 1518000 9193223000 8917326000 13941000 1670000 369882000 412663000 9578564000 9333177000 10060584000 9764983000 0 134000 0 134000 59508000 59104000 29554000 19255000 517500000 683733000 19916000 37808000 37400000 0 77380000 81923000 741258000 881823000 8363000 16563000 749621000 898520000 10810205000 10663503000 121002000 121002000 217758000 199210000 -74476000 -27530000 1898620000 1912581000 2162904000 2205263000 112765000 104187000 112765000 104187000 7353736000 7335915000 38000 74000 24633000 12251000 7378407000 7348240000 725300000 565839000 32936000 30603000 126913000 132626000 84043000 123468000 170957000 151823000 15980000 1454000 1156129000 1005813000 8534536000 8354053000 10810205000 10663503000 121002000 199210000 -27530000 1912581000 0 0 0 -669000 0 0 0 68540000 0 0 0 -63284000 0 0 13241000 0 0 0 -60187000 0 0 18548000 0 -18548000 121002000 217758000 -74476000 1898620000 No events materially affecting the assessment of the Annual Report have occurred after the balance sheet date. Segments Wholesale 1255913000 1133148000 Operators and partners 132999000 165248000 Total 1388912000 1298396000 Net sales are on the domestic market. 323713000 380795000 35483000 39843000 5728000 5536000 364924000 426174000 4355000 4444000 359000 388000 4714000 4832000 586 662 Including remuneration to the Executive Board and Board of Directors: Remuneration for the management is based on an estimate of the time spent by the executive board and the board of directors, as the management is included as a management member in several of the group's companiesThe management is part of a 3-year long-term incentive program which is based on the achievement of certain targets. Financial targets relating to Profit before tax and ROIC as well as non-financial targets relating to awareness and speed of green conversion determine the size of the incentive payment. 70604000 58524000 539839000 502739000 610443000 561263000 Which is specified as follows: Amortisation - Completed development projects 28419000 20917000 Amortisation - Acquired other similar rights 21865000 22090000 Amortisation - Goodwill 20320000 15517000 Depreciation - Other fixtures and fittings, tools and equipment 539839000 502739000 Total 610443000 561263000 20323000 33838000 18809000 25213000 1126000 515000 40258000 59566000 0 20846000 361447000 310996000 860000 716000 362307000 332558000 -37400000 0 21488000 -25654000 -462000 -2290000 352000 1537000 -16022000 -26407000 246360000 187950000 77583000 61841000 0 0 48034000 0 0 0 0 72784000 51897000 20585000 0 -72482000 298257000 208535000 125617000 62143000 52803000 56421000 32704000 0 28419000 21865000 20320000 0 81222000 78286000 53024000 0 217035000 130249000 72593000 62143000 Completed development projects are the development of fiber networks and technology, as well as the development of supporting IT systems. Development projects in progress can be attributed to development projects that relate to the company's IT systems as well as other system development to support the company's strategy. 1518000 11918976000 9032000 412663000 0 109623000 0 551000 0 24937000 15036000 729182000 0 0 2194000 0 0 772514000 0 -772514000 1518000 12826050000 21874000 369882000 0 3001650000 7362000 0 0 91987000 0 0 0 539190000 648000 0 0 0 77000 0 0 3632827000 7933000 0 1518000 9193223000 13941000 369882000 0 17519000 0 0 Selling price of work in progress 29554000 19255000 Total 29554000 19255000 Recognised in the balance sheet as follows: Contract work in progress recognised in assets 29554000 19255000 Total 29554000 19255000 Prepayments consist of IT-services and wholesale revenue. Deferred tax liabilities at 1 January 104187000 157855000 Adjustment deferred tax concerning previous year 331000 1536000 Amounts recognised in the income statement for the year 21488000 -25654000 Amounts recognised in equity for the year -13241000 -29550000 Deferred tax liabilities at 31 December 112765000 104187000 4360934000 5883754000 2992802000 1452161000 7353736000 7335915000 0 0 0 0 38000 74000 38000 74000 0 0 0 0 24633000 12251000 24633000 12251000 15980000 1454000 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: Mortgage loans Deposits Deferred income Derivative financial instruments contracts in the form of interest rate swaps have been concluded. At the balance sheet date, the fair value of derivative financial instruments amounts to: Liabilities 95512000 35295000 Interest rate swap contracts have been entered into hedge future interest payments on floating mortgage loans. The contracts have a term of 60 months. Under the contracts, an interest rate in the CIBOR 3 and 6 is exchanged for a fixed rate of interest of 2.28%, 2.5 %, 2.525%, 2.57%, 2.58%, 2,79%, 2,9%, 3.14%, 3.23%, 3.24% and 3.235% on loans with a principal amount of T.DKK 7,353,577. At the balance sheet date, the fair value of the interest rate swap amounts to T.DKK -95,512. Deferred income consists of payments received in respect of income in subsequent years. Charges and security The following assets have been placed as security with mortgage credit institutes: Land and buildings with a carrying amount of 1518000 1518000 Plant and machinery and other fixtures with a carrying amount of 9189528000 8918996000 Rental and lease obligations Lease obligations, period of non-terminability 12 months 1390000 2619000 Payments under operation leases concerning cars and equipment, remaining terms is 1-49 months 37039000 56426000 **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 Norlys Group A/S, 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 Norlys a.m.b.a, Silkeborg Ultimate Parent Norlys Group A/S, Silkeborg Parent Company Norlys Infrastructure Holding A/S, Silkeborg Parent Company Norlys Fiber Infrastruktur A/S, Silkeborg Parent Company Other related parties 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. There have been no transactions with the Supervisory Board, the Executive Board, senior officers, significant shareholders, group enterprises or other related parties, except for intercompany transactions and normal management remuneration. 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 Norlys a.m.b.a Tietgensvej 4, 8600 Silkeborg, Denmark The Group Annual Report of Norlys a.m.b.a may be obtained at the following address: Tietgensvej 4, 8600 Silkeborg, Denmark With reference to §96 subsection of the Danish Financial Statements Act. 3, the fee for the auditor elected by the general meeting is not disclosed. Reference is made to the consolidated financial statements of Norlys a.m.b.a. CVR No. 26 38 26 45. The Annual Report of Norlys Fibernet A/S for 2024 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 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 Norlys a.m.b.a, 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. Recognition and measurement take into account predictable losses and risks occurring before the presentation of the Annual Report which confirm or invalidate affairs and conditions existing at the balance sheet date. Danish kroner is used as the presentation currency. All other currencies are regarded as foreign currencies. Transactions in foreign currencies are translated at the exchange rates at the dates of transaction. Exchange differences arising due to differences between the transaction date rates and the rates at the dates of payment are 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. Derivative financial instruments are initially recognised in the balance sheet at cost and are subsequently remeasured at their fair values. Positive and negative fair values of derivative financial instruments are classified as ”Other receivables” and ”Other payables”, respectively. Changes in the fair values of derivative financial instruments are recognised in the income statement unless the derivative financial instrument is designated and qualify as hedge accounting. Changes in the fair values of financial instruments that are designated and qualify as fair value hedges of a recognised asset or a recognised liability are recognised in the income statement as are any changes in the fair value of the hedged asset or the hedged liability related to the hedged risk. Changes in the fair values of derivative financial instruments that are designated and qualify as hedges of expected future transactions are recognised in the fair value reserve under equity as regards the effective portion of the hedge. The ineffective portion is recognised in the income statement. If the hedged transaction results in an asset or a liability, the amount deferred in equity is transferred from equity and recognised in the cost of the asset or the liability, respectively. If the hedged transaction results in an income or an expense, the amount deferred in equity is transferred from equity to the income statement in the period in which the hedged transaction is recognised. The amount is recognised in the same item as the hedged transaction. Changes in the fair values of financial instruments that are designated and qualify as hedges of net investments in independent foreign subsidiaries or associates are recognised directly in equity as regards the effective portion of the hedge, whereas the ineffective portion is recognised in the income statement. Revenue from the sale of goods for resale and finished goods is recognised in the income statement when the sale is considered effected based on the following criteria:• delivery has been made before year end;• a binding sales 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. Contract work in progress (construction contracts) is recognised at the rate of completion, which means that revenue equals the selling price of the work completed for the year (percentage-of-completion method). This method is applied when total revenues and expenses in respect of the contract and the stage of completion at the balance sheet date can be measured reliably, and it is probable that the economic benefits, including payments, will flow to the Company. The stage of completion is determined on the basis of the ratio between the expenses incurred and the total expected expenses of the contract. Services are recognised at the rate of completion of the service to which the contract relates by using the percentage-of-completion method, which means that revenue equals the selling price of the service completed for the year. This method is applied when total revenues and expenses in respect of the service and the stage of completion at the balance sheet date can be measured reliably, and it is probable that the economic benefits, including payments, will flow to the Company. The stage of completion is determined on the basis of the ratio between the expenses incurred and the total expected expenses of the service. Revenue is measured at the consideration received and is recognised exclusive of VAT and net of discounts relating to sales.Connection fees charged in connection with the establishment of new installations, etc., are recognized as long-term liabilities and are recognized as income over 5 years. 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 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 Company, including gains and losses on the sale 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. The Company is jointly taxed with Norlys Holding A/S. 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). For goodwillbeløb er brugstiderne fastlagt ud fra en vurdering af den økonomiske levetid, der fastlægges på baggrund af ledelsens erfaringer inden for de enkelte forretningsområder og vurderet til 5 år for kunderettigheder. Brugstiderne revurderes årligt. De anvendte afskrivningsperioder udgør 5 år.Goodwill nedskrives til genindvindingsværdi, hvis denne er lavere end den regnskabsmæssige værdi. Goodwill is amortised on a straight-line basis over the estimated useful life of 5 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. 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'. 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 5-10 year. Patents are measured at cost less accumulated amortisation and less any accumulated impairment losses or at a lower value in use. Patents are amortised over the remaining patent period or a shorter useful life. The amortisation period is 5 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 and indirectly 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 added revaluations and reduced by any residual value is calculated on a straight-line basis over the expected useful lives of the assets, which are: Plant and machinery 5-30 years Other fixtures and fittings, tools and equipment 5-10 years Land is not depreciated 0 years The fixed assets’ residual values are 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. 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 raw materials and consumables equals landed cost. The cost of finished goods and work in progress comprises the cost of raw materials, consumables and direct 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. Contract work in progress is measured at selling price of the work performed calculated on the basis of the stage of completion. The stage of completion is measured by the proportion that the contract expenses incurred to date bear to the estimated total contract expenses. Where it is probable that total contract expenses will exceed total revenues from a contract, the expected loss is recognised as an expense in the income statement. Where the selling price cannot be measured reliably, the selling price is measured at the lower of expenses incurred and net realisable value. Payments received on account are set off against the selling price. The individual contracts are classified as receivables when the net selling price is positive and as liabilities when the net selling price is negative. Expenses relating to sales work and the winning of contracts are recognised in the income statement as incurred. Prepayments comprise prepaid expenses. 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. 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. Deferred income comprises payments received in respect of income in subsequent years. Gross margin Gross profit x 100 / Revenue Profit margin Profit/loss of primary operations x 100 / Revenue 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