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2022-11-01 2023-10-31 fsa:DepositsLongtermInvestmentsAndReceivablesMember cmn:ConsolidatedMember 35480463 2022-11-01 2023-10-31 cmn:ConsolidatedMember PricewaterhouseCoopers 35480463 2021-11-01 2022-10-31 cmn:ConsolidatedMember PricewaterhouseCoopers 35480463 2022-11-01 2023-10-31 PricewaterhouseCoopers 35480463 2021-11-01 2022-10-31 PricewaterhouseCoopers iso4217:DKK pure Årsrapport 33771231 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab Strandvejen 44 2900 Hellerup 2022-11-01 2021-11-01 2023-10-31 2022-10-31 35480463 Eltronic Group A/S Kilde Alle 4 8722 Hedensted Hedensted PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab 33771231 Herredsvej 32 7100 Vejle Denmark 79 21 27 00 Underskriv. revisors e-mail anvendes 2024-01-16 Jens Jørgen Madsen Regnskabsklasse C, stor virksomhed Revisionspåtegning The Executive Board and Board of Directors have today considered and adopted the Annual Report of Eltronic Group A/S for the financial year 1 November 2022 - 31 October 2023. The Annual Report is prepared in accordance with the Danish Financial Statements Act. In our opinion the Financial Statements and the Consolidated Financial Statements give a true and fair view of the financial position at 31 October 2023 of the Company and the Group and of the results of the Company and Group operations and of consolidated cash flows for 2022/23. In our opinion, Management's Review includes a true and fair account of the matters addressed in the Review. We recommend that the Annual Report be adopted at the Annual General Meeting. 2024-01-16 Hedensted Lars Jensen CEO Jesper Rantala COO Jens Jørgen Madsen Chair Carl Jensen Christian Møller Christensen Mari-Louise Kahr Andreasen Hans-Christian Ellegård Employee representative Claus Norring Jensen Employee representative Jeppe Kiilerich Østerlund Employee representative To the shareholders of Eltronic Group A/S Opinion In our opinion, the Consolidated Financial Statements and the Parent Company Financial Statements give a true and fair view of the financial position of the Group and the Parent Company at 31 October 2023 and of the results of the Group’s and the Parent Company’s operations and of consolidated cash flows for the financial year 1 November 2022 - 31 October 2023 in accordance with the Danish Financial Statements Act. We have audited the Consolidated Financial Statements and the Parent Company Financial Statements of Eltronic Group A/S for the financial year 1 November 2022 - 31 October 2023, which comprise income statement, balance sheet, statement of changes in equity and notes, including a summary of significant accounting policies, for both the Group and the Parent Company, as well as consolidated statement of cash flows (”the Financial Statements”). Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the ”Auditor’s responsibilities for the audit of the Financial Statements” section of our report. We are independent of the Group in accordance with the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Management is responsible for the preparation of consolidated financial statements and parent company financial statements that give a true and fair view in accordance with the Danish Financial Statements Act, and for such internal control as Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the Financial Statements, Management is responsible for assessing the Group´s and the Parent Company´s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting in preparing the Financial Statements unless Management either intends to liquidate the Group or the Parent Company or to cease operations, or has no realistic alternative but to do so. Our objectives are to obtain reasonable assurance about whether the Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Financial Statements. As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group´s and the Parent Company´s internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management. Conclude on the appropriateness of Management’s use of the going concern basis of accounting in preparing the Financial Statements and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group´s and the Parent Company´s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group and the Parent Company to cease to continue as a going concern. Evaluate the overall presentation, structure and contents of the Financial Statements, including the disclosures, and whether the Financial Statements represent the underlying transactions and events in a manner that gives a true and fair view. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the Consolidated Financial Statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Management is responsible for Management’s Review. Our opinion on the Financial Statements does not cover Management’s Review, and we do not express any form of assurance conclusion thereon. In connection with our audit of the Financial Statements, our responsibility is to read Management’s Review and, in doing so, consider whether Management’s Review is materially inconsistent with the Financial Statements or our knowledge obtained during the audit, or otherwise appears to be materially misstated. Moreover, it is our responsibility to consider whether Management’s Review provides the information required under the Danish Financial Statements Act. Based on the work we have performed, in our view, Management’s Review is in accordance with the Consolidated Financial Statements and the Parent Company Financial Statements and has been prepared in accordance with the requirements of the Danish Financial Statements Act. We did not identify any material misstatement in Management’s Review. Trekantområdet 2024-01-16 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab Lars Almskou Ohmeyer State Authorised Public Accountant mne24817 Heidi Bonde State Authorised Public Accountant mne42815 1040632000 718449000 618848000 536468000 362943000 291093000 111518000 38258000 19126000 -16171000 -4161000 -3501000 66704000 22780000 9515000 210085000 141484000 115497000 612111000 515438000 423871000 11367000 6253000 8638000 8738000 95826000 23103000 -17815000 -21196000 -37287000 -17924000 -39502000 27003000 704 609 457 41.1 39.2 51.6 50.5 47.0 4.8 4.9 10.7 5.3 3.1 9.1 7.2 18.2 7.4 4.5 31.8 24.9 34.3 27.4 27.2 14.2 28.9 37.9 17.7 9.0 http://catalog.eltronic.dk/esg-report-2022-2023/eltronic-group-esg-report-2022-2023pdf/?page=1 http://catalog.eltronic.dk/esg-report-2022-2023/eltronic-group-esg-report-2022-2023pdf/?page=1 http://catalog.eltronic.dk/esg-report-2022-2023/eltronic-group-esg-report-2022-2023pdf/?page=1 Key activities The Company’s key activities are: 1. to invest in small and medium-sized enterprises or parts of such enterprises 2. to develop the enterprises mentioned in paragraph 1, including participation in strategic management of such enterprises 3. to complete sales of the enterprises mentioned in paragraph 1 4. to carry out other activities which the Executive Board considers to be related to the activities mentioned in paragraphs 1-3.Eltronic A/S Eltronic A/S is a knowledge-based company developing, manufacturing and servicing production technology and platforms globally for the manufacturing industry.Eltronic FuelTech A/S Eltronic FuelTech A/S is a knowledge-based company developing, manufacturing and servicing process platforms for fuel gas supply systems and platforms globally for the maritime industry.ENABL A/S ENABL A/S is a knowledge-based company developing, manufacturing and servicing production technology and platforms globally for the wind energy industry.Eltronic PtX A/SEltronic PtX A/S is a knowledge-based company that develops, manufactures, and services modular process platforms for balance of stack PtX systems. Primarily focusing on electrolysis and synthesis for scaling PtX capacity globally for the energy sector.Dataintelligence A/S DataIntelligence A/S is a knowledge-based company which develops, manufactures, and services Data Intelligence & Analytic Platform (DIAP) and electronic platforms globally for the manufacturing industry.Dynatest A/S Dynatest A/S is a knowledge-based business which develops, manufactures, and services pavement test systems. The company is world-leading within evaluation of road and runway pavements.Epcido A/S Epcido A/S is a knowledge- and project company which installs and services equipment for logistics and distribution centers globally.MME Nordic A/S MME Nordic A/S is a knowledge-based company which develops, manufactures, and services production platforms globally for the medico industry. HE Marine A/S HE Marine A/S engages in sales, installation, and repair of maritime electronic equipment, as well as electrical installations and other technical services.Techno Ejendomme ApS Techno Ejendomme ApS is the company which owns a part of the Group’s properties. Development in the year The income statement of the Group for 2022/23 shows a profit of DKK 43,892k, and at 31 October 2023 the balance sheet of the Group shows equity of DKK 336,613k.The results for the year are satisfactory.At the beginning of the financial year in November 2022, the Eltronic Group had a headcount of 1,354 employees in total. This figure included freelancers, the number of which is equivalent to 235 full-time employees (FTEs). At the end of the financial year, in October 2023, the Eltronic Group had a headcount of 1,568 employees in total. This figure includes freelancers, the number of which is equivalent to 298 full-time employees (FTEs). The past year and follow-up on development expectations from last year In the fiscal year, the Group has continued to focus on developing, manufacturing, delivering, and servicing advanced production facilities, products, processes, and digitalization for its Danish and international customers.The global shortage of microchips, among other factors, has been decreasing throughout the year and has stabilized at a new level. There is an ongoing process of redesigning, reserving, and developing new solutions due to various sudden reasons for supply shortages.Eltronic Group as a whole has managed this disruption in our supply chains very satisfactorily, with no significant impact on our customers.The year's financial results were influenced by order postponements in the maritime sector and challenges faced by the wind power industry, particularly towards the end of the year. Several projects were cancelled as national governments and developers reacted late to inflationary pressures and interest rate developments. In ENABL, the first half of the year was affected by significant costs related to three Tower & Monopile projects, which have now been completed. Towards the end of the year, earnings from previous periods were restored, providing a solid foundation for significant growth and a healthy financial outlook for the coming years. We have a very positive outlook on the market from the second half of 2024 and are preparing for substantial demand growth.The Group's management tools are being strengthened and adjusted and have been integrated into the IT management platform, which extensively digitizes the company. The goal is to enhance the performance culture throughout the organization, creating the greatest possible value for customers in the future. Significant investments have been made in expanding and upgrading the company's business platforms and processes to anchor standardized business systems. These investments will continue in 2024 to support increased activity, with a specific focus on AI and ongoing efforts to strengthen and expand cyber security.Additionally, there has been a focus on the company's sustainability strategy, reflected in a new ESG report. Several initiatives have been introduced to minimize the company's own environmental footprint and, in particular, to minimize customers' footprint in their product manufacturing processes. Special risks - operating risks and financial risks Operating risks The Group’s activities cover development, manufacturing, and delivery of large and complex production solutions to the industry sector, which imply both technical and contractual risks. However, in Management’s assessment, the Group currently has internal systems and procedures to ensure that the activities for the year may be carried out without any significant technical and contractual risks. Foreign exchange risks The majority of the revenue is generated in DKK and EUR. As a result, the Group is exposed to a lesser extent to risks related to currency fluctuations. The uncertainties in other currencies are attempted to be mitigated through the reduction of net positions or the use of financial instruments in significant risk situations. Credit risks The Group’s customer portfolio primarily consists of large, well-reputed companies, assessed to have a good financial standing. Customers are subject to regular credit ratings, and risks are minimised through payment terms that reduce exposure. Targets and expectations for the year ahead Next year, we will focus on consolidation and optimisation of the Group’s activities.The company expects a strong demand within its core business and anticipates achieving a financially satisfactory result for 2023/24 with approximately DKK 2,000m in revenue and an EBT of approximately DKK 100m. Research and development Eltronic A/SDevelopment activities include product maturing of supply platforms for increased recycling, development, and integration of the Company's processes for managing all tasks across the Company.Eltronic Fueltech A/SDevelopment activities include the development of product families that ensure new alternative, fossil free, and more environmentally friendly energy and fuel solutions for the maritime industry.ENABL A/SThe financial year has been a re prioritisation year for ENABL and the development curve for ENABL in the Tower and Monopile market segment has continued. The company has built capacity and have allocated funding in the budget in the coming year for the development of new products and competences expected to support a significant growth and market position in the years to come. The solutions are supporting the development of the offshore wind turbines as well as our consulting business allowing ENABL to take a larger share of the global market. The planned investments contains both competences and automated product solutions.Dynatest A/SIn the coming years, we expect to invest substantially in the development of digital solutions and new products which can be applied globally across the company. Our collaboration with universities entails a steady pipeline of qualified resources. We continuously execute 4-5 projects with students at multiple levels through a controlled process. This has already resulted in subsequent solutions and employments. External environment The Group is aware of its responsibilities in relation to both the external and the internal environment and shows the necessary consideration when performing individual assignments and with respect to the environment in its services and supplies to customers. Thus, the UN Sustainable Development Goals (SDG) form the basis for the Company’s strategic direction, with the clear objective of contributing with technological solutions which reduce the environmental impact. The Group has obtained the ISO 14001 environmental certification, and its environmental impact is considered to be low. Intellectual capital resources The Group is a knowledge-based business whose key resources are the competencies and knowledge possessed by its employees.Competence development and knowledge sharing are keywords. Initiatives for the retention of employees are given high priority. Uncertainty relating to recognition and measurement There has been no uncertainty regarding recognition and measurement in the Annual Report. Unusual events The financial position at 31 October 2023 of the Group and the results of the activities and cash flows of the Group for the financial year for 2022/23 have not been affected by any unusual events. Subsequent events After the balance sheet date, there have been sales of assets and activities in HE Marine A/S and the name of the Company has been changed to Udlejningsselskabet af 4. januar 2024 A/S.Additionally, the property company Techno Ejendomme ApS has been sold. The statutory statement is available on the Company's website cf. http://catalog.eltronic.dk/esg-report-2022-2023/eltronic-group-esg-report-2022-2023pdf/?page=1 The statutory statement is available on the Company's website cf. http://catalog.eltronic.dk/esg-report-2022-2023/eltronic-group-esg-report-2022-2023pdf/?page=1 The statutory statement is available on the Company's website cf. http://catalog.eltronic.dk/esg-report-2022-2023/eltronic-group-esg-report-2022-2023pdf/?page=1 1983916000 1663233000 62344000 50096000 1956000 1069000 16315000 23491000 1027087000 875410000 0 0 143220000 137135000 40998000 33392000 815565000 651757000 37661000 40195000 663602000 532021000 23546000 21529000 55340000 37732000 647000 585000 753000 355000 15566000 18464000 95870000 81649000 -2098000 -383000 0 0 41244000 62883000 -409000 -816000 -409000 0 7280000 22374000 8396000 1614000 36764000 11181000 12227000 2513000 65977000 92026000 34906000 61601000 22085000 20863000 -1298000 -125000 43892000 71163000 36204000 61726000 0 0 5565000 40766000 7688000 9437000 0 0 36204000 61726000 30639000 20960000 50547000 5054000 0 0 5089000 4923000 0 0 66451000 94071000 0 0 25725000 69327000 0 0 147812000 173375000 0 0 158763000 123018000 1644000 0 2437000 429000 0 0 8260000 10603000 2378000 2726000 2359000 412000 0 0 7770000 36309000 0 0 179589000 170771000 4022000 2726000 330165000 407244000 0 0 31830000 19878000 15748000 4805000 727693000 788697000 184147000 234853000 1057675000 1134749000 513795000 599550000 0 0 324889000 361832000 737000 514000 737000 139000 1844000 1392000 0 0 2581000 1906000 325626000 361971000 329982000 346052000 329648000 364697000 152365000 146141000 0 0 156715000 122560000 0 0 0 0 158097000 227292000 0 0 323000 347000 2777000 4070000 9537000 1939000 9273000 9310000 400000 189000 530760000 563062000 184105000 234572000 44568000 79494000 42000 281000 1311000 1311000 1311000 1311000 0 0 82118000 81057000 385000 2825000 -974000 -1037000 39201000 26228000 0 0 13922000 14318000 0 0 53123000 40546000 0 0 70778000 74598000 0 0 13500000 18000000 13500000 18000000 750000 0 0 0 17824000 18613000 2300000 2000000 102852000 111211000 15800000 20000000 3892000 4009000 0 0 152708000 242245000 150745000 240767000 175000 0 0 0 48281000 12709000 0 0 56403000 126480000 0 0 0 0 39503000 52608000 5714000 7680000 0 0 12361000 15271000 0 0 1311291 1311291 1311291 1311291 296056000 261854000 215297000 184659000 38861000 16406000 0 0 336613000 282396000 297752000 265990000 155101000 201685000 4817000 4735000 130452000 90517000 5178000 15450000 565087000 700596000 200243000 313560000 667939000 811807000 216043000 333560000 1057675000 1134749000 513795000 599550000 1311000 2825000 261852000 16407000 1311000 81056000 -1037000 184658000 0 0 -2503000 0 108000 0 -2503000 0 0 0 0 0 0 17794000 0 0 0 -3000000 0 63000 0 0 0 0 63000 0 0 0 0 -2000000 -136000 0 -2000000 0 0 0 0 0 36204000 7688000 0 5565000 0 30639000 0 1311000 385000 296056000 38861000 1311000 82118000 -974000 215297000 0 43892000 71163000 102327000 51683000 -17990000 -93350000 128229000 29496000 7280000 5514000 36764000 11180000 98745000 23830000 9941000 26377000 88804000 -2547000 18765000 76422000 22634000 75988000 1459000 568000 3579000 1656000 375000 3137000 2873000 74318000 18886000 8275000 -22891000 -214228000 3937000 3909000 94037000 9725000 74000 101000 789000 0 0 31456000 0 247353000 998000 0 3000000 210000 -100839000 264864000 -34926000 48089000 79494000 31405000 44568000 79494000 44568000 79494000 0 0 After the balance sheet date, there have been sales of assets and activities in HE Marine A/S and the name of the Company has been changed to Udlejningsselskabet af 4. januar 2024 A/S.Additionally, the property company Techno Ejendomme ApS has been sold. Geographical segments Revenue, Denmark 614708000 840104000 62344000 50096000 Export sales, EU 764655000 360309000 0 0 Export sales, non-EU 604553000 462820000 0 0 0 0 0 0 0 0 0 0 1983916000 1663233000 62344000 50096000 Business segments Wind 982351000 841924000 0 0 Production systems 458464000 272657000 0 0 Electrical installations 22632000 63330000 0 0 Fuel systems 252849000 238635000 0 0 Installation 173693000 150799000 0 0 Road surface 93927000 95888000 0 0 Management fee 0 0 62344000 50096000 0 0 0 0 0 0 0 0 1983916000 1663233000 62344000 50096000 587627000 468913000 20705000 19170000 62570000 52786000 2612000 2155000 13405000 10322000 229000 204000 663602000 532021000 23546000 21529000 1217 999 37 36 44393000 26903000 0 375000 10521000 8072000 647000 210000 426000 2757000 0 0 Share of profits 0 62,979 84,179 Amortisation of goodwill 0 -21,735 -21,296 0 41,244 62,883 Share of profits/losses of associates -409 -816 -409 0 -409 -816 -409 0 0 16860000 0 0 0 0 7991000 1363000 2023000 697000 405000 251000 5257000 4817000 0 0 29907000 8209000 12227000 2513000 6857000 2972000 0 0 36764000 11181000 12227000 2513000 16096000 6841000 -1322000 287000 7316000 12596000 24000 -412000 -6985000 405000 0 0 5658000 1021000 0 0 22085000 20863000 -1298000 -125000 18734000 1124000 7166000 190544000 69327000 0 2000 0 -186000 0 1989000 1251000 16926000 0 -1499000 -6822000 0 60342000 0 0 -60342000 79076000 1124000 7658000 184973000 25725000 13680000 1124000 2242000 96472000 0 0 1000 0 0 426000 0 0 0 14423000 1097000 28872000 0 0 -771000 -6822000 0 28529000 1124000 2569000 118522000 0 50547000 0 5089000 66451000 25725000 Udviklingsprojekter vedrører videreudvikling af udstyr indenfor virksomhedens eksisterende produktområde. Produkterne markedsføres allerede. Udstyret skal sælges på det nuværende og nye markeder til både virksomhedens eksisterende kunder samt nye. Der er og forventes stor efterspørgsel på produkterne de kommende år. Some of the development projects relates to the further development of equipment within the company's existing product area. The products are already on the market. The equipment will be sold in the current and new markets to both the company's existing customers and new ones. There is, and is expected, to be a great demand for the products in the coming years. Furthermore there are the following development projects within the Group.Aengine project which is a development of a complete fuel supply system for the future ammonia-powered marine engines. This project is expected to be completed end 2024, and the solution can be marketed and sold the same year. There is great interest in the market for this future solution of carbon-free fuels. The project is progressed according to plan, and the relevant resources in the development department have been budgeted for next year to carry out the planned activities.A Fuel Supply System which is the development of Methanol-powered engines and is a supplement to our Gas Valve Train to deliver the full system from tank to engine. The project is ongoing, and the product is marketed in parallel, as the interest and use of Methanol as fuel has very high focus in the maritime market.A development projct which concerns a product for use with low pressure LNG-powered engines in a new variant on the existing market. The project is finalized and has had a relatively short development period, and was thus fully developed in 2022, when both marketing and sales have begun. There has thus been no capitalized cost in 2022/23. A development of robot-cells regarding the handling of sustainable packaging alternatives in the product environment. Udviklingsprojekter vedrører videreudvikling af udstyr indenfor virksomhedens eksisterende produktområde. Produkterne markedsføres allerede. Udstyret skal sælges på det nuværende og nye markeder til både virksomhedens eksisterende kunder samt nye. Der er og forventes stor efterspørgsel på produkterne de kommende år. Development projects relate to the further development of equipment within the company's existing product area. The products are already on the market. The equipment will be sold in the current and new markets to both the company's existing customers and new ones. There is, and is expected, to be a great demand for the products in the coming years. Amortised over 3-10 years 3-8 years 5 years Amortised over 5 years 280774000 179082000 400000 118253000 -37395000 -16560000 -1007000 0 242772000 280775000 81056000 39323000 28259000 778000 -2503000 2444000 63464000 84180000 -64000000 -21490000 -1938000 -1414000 -21735000 -21296000 -486000 -1468000 82117000 81057000 Positive differences arising on initial measurement of subsidiaries at net asset value 0 87415000 Remaining positive difference included in the above carrying amount at 31 October 45463000 79264000 DataIntelligence A/S Denmark 100 Eltronic FuelTech A/S Denmark 100 *) Eltronic Fueltech Korea Yuhanhoesa South Korea 100 Eltronic A/S Denmark 100 Techno Ejendomme ApS Denmark 100 MME Nordic A/S Denmark 70 Udlejningsselskabet af 4. januar 2024 A/S Denmark 100 ENABL A/S Denmark 93.9 *) Eltronic Global ApS Denmark 100 **) ENABL (Taicang) Co Ltd China 100 *) ENABL A/S Taiwan Branch Taiwan 100 *) ENABL Engineering Private Limited India 100 *) ENABL Bulgaria EOOD Bulgaria 100 *) ENABL Ukraina LLC Ukranie 100 *) ENABL-Wind UK Ltd United Kingdom 100 *) ENABL Inc USA 100 *) ENABL Hungary Kft Hungary 100 Dynatest A/S Denmark 100 *) Dynatest US Inc USA 100 *) Dynatest North America Inc USA 100 EPCIDO Holding A/S Denmark 50 *) EPCIDO US Inc USA 100 *) EPCIDO Sp. Z.o.o. Poland 100 *) EPCIDO A/S Denmark 100 **) EPCIDO Ltd United Kingdom 100 **) EPCIDO GmbH Germany 100 *) SoftXways ApS Denmark 80 535000 396000 0 0 1007000 139000 139000 139000 -396000 0 0 0 0 0 1007000 0 1146000 535000 1146000 139000 -21000 795000 0 0 -102000 -816000 -102000 0 21000 0 0 0 -307000 0 -307000 0 -409000 -21000 -409000 0 Positive differences arising on initial measurement of associates at net asset value 1408000 0 Positive differences arising on initial measurement of associates at net asset value 1408000 0 Remaining positive difference included in the above carrying amount at 31 October 1101000 0 Remaining positive difference included in the above carrying amount at 31 October 1101000 0 Sonne Management Invest ApS Denmark 33.33 MME Management Invest ApS Denmark 11.67 1393000 451000 1844000 Raw materials and consumables 84937000 77159000 0 0 Work in progress 50400000 43158000 0 0 Finished goods and goods for resale 16336000 20932000 0 0 Prepayment for goods 692000 4892000 0 0 152365000 146141000 0 0 Selling price of work in progress 849723000 754361000 0 0 Payments received on account -749411000 -758281000 0 0 100312000 -3920000 0 0 Recognised in the balance sheet as follows: Contract work in progress recognised in assets 156715000 122560000 0 0 Prepayments received recognised in debt -56403000 -126480000 0 0 100312000 -3920000 0 0 Prepayments consist of prepaid expenses concerning rent, insurance premiums, subscriptions and other costs as well. Prepayments consist of prepaid expenses concerning rent, insurance premiums, subscriptions and interest. Deferred tax liabilities at 1 November 26,228,000 11,174,000 Amounts recognised in the income statement for the year 502,000 13,617,000 Amounts recognised in equity for the year 12,471,000 1,437,000 Deferred tax liabilities at 31 October 39,201,000 26,228,000 Deferred tax liabilities at 1 November -347,000 65,000 Amounts recognised in the income statement for the year 24,000 -412,000 Deferred tax liabilities at 31 October -323,000 -347,000 Other provisions have been recognised for expected warranty claims. Other provisions 13922 14318 13922 14318 The provisions are expected to mature as follows: Within 1 year 13922 14318 13922 14318 54328000 57946000 0 0 16450000 16652000 0 0 3892000 4009000 0 0 74670000 78607000 0 0 0 0 0 0 13500000 18000000 13500000 18000000 4761000 9865000 4500000 9375000 18261000 27865000 18000000 27375000 0 0 0 0 750000 0 0 0 175000 0 0 0 925000 0 0 0 14939000 13953000 0 0 2885000 4660000 2300000 2000000 3478000 30000 0 0 21302000 18643000 2300000 2000000 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: -7280000 -22374000 36764000 11181000 52424000 38748000 409000 816000 22085000 20863000 -2075000 2449000 -6224000 -68107000 31009000 -213498000 -396000 -13392000 -42442000 201584000 63000 63000 Charges and security The following assets have been placed as security with mortgage credit institutes: The following assets have been placed as security with bankers: A company charge of DKK 123,600k has been created on trade receivables, inventories, fixtures and fittings, tools and equipment as well as goodwill and other intangible rights at a total carrying amount of DKK 472,974k.The Group and the Parent Company have provided security for balances with credit institutions through a charge on shares in group enterprises with a carrying amount of DKK 83,465k. The Group has assumed lease commitments amounting, as at the balance sheet date, to DKK 20,257k in the period of interminability.The Parent company has assumed lease commitments amounting, as at the balance sheet date, to DKK 1,027k in the period of interminability. The Group has assumed rent obligations amounting to DKK 27.346k at the balance sheet date in the period of interminability. The lease of the longest duration is interminable until 31 August 2026. The Parent Company has entered into a lease with a consolidated company at a yearly rent of DKK 15,103k. The lease expires on 31 March 2035. Guarantee obligations The Parent Company has provided security in respect of subsidiaries balances with credit institutions to DKK 1,709k at the balance sheet date. The Parent Company has issued a letter of support in respect of the subsidiary Udlejningsselskabet af 4. januar 2024 A/S. Other contingent liabilities Other contractual obligation has been entered into to a value of DKK 40,000k. In connection with the sale of a capital share, the group has undertaken, if certain circumstances arise in the future until April 2027, to repay a share of the sale price to the buyer. The Danish group companies are jointly and severally liable for tax on the jointly taxed incomes etc of the Group. The total amount of corporation tax payable by the Group amounts to DKK 2,973k. Moreover, the Danish group companies are jointly and severally liable for Danish withholding taxes by way of dividend tax, tax on royalty payments and tax on unearned income. Any subsequent adjustments of corporation taxes and withholding taxes may increase the Group’s liability. Related parties Lars Jensen CEO Jesper Rantala COO Jens Jørgen Madsen Chair Carl Jensen Board member Christian Møller Christensen Board member Mari-Louise Kahr Andreasen Board member Hans-Christian Ellegård Board member Claus Norring Jensen Board member Jeppe Kiilerich Østerlund Board member 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)(7) of the Danish Financial Statements Act. 1557000 1382000 85000 114000 149000 129000 0 0 903000 1009000 576000 73000 1344000 788000 744000 173000 The Annual Report of Eltronic Group A/S for 2022/23 has been prepared in accordance with the provisions of the Danish Financial Statements Act applying to large enterprises of reporting class C. The accounting policies applied remain unchanged from last year. The Consolidated Financial Statements and the Parent Company Financial Statements for 2022/23 are presented in TDKK. 1 Revenues are recognised in the income statement as earned. Furthermore, value adjustments of financial assets and liabilities measured at fair value or amortised cost are recognised. Moreover, all expenses incurred to achieve the earnings for the year are recognised in the income statement, including depreciation, amortisation, impairment losses and provisions as well as reversals due to changed accounting estimates of amounts that have previously been recognised in the income statement. Assets are recognised in the balance sheet when it is probable that future economic benefits attributable to the asset will flow to the Company, and the value of the asset can be measured reliably. Liabilities are recognised in the balance sheet when it is probable that future economic benefits will flow out of the Company, and the value of the liability can be measured reliably. Assets and liabilities are initially measured at cost. Subsequently, assets and liabilities are measured as described for each item below. 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. Basis of consolidation The Consolidated Financial Statements comprise the Parent Company, Eltronic Group A/S, and subsidiaries in which the Parent Company directly or indirectly holds more than 50% of the votes or in which the Parent Company, through share ownership or otherwise, exercises control. Enterprises in which the Group holds between 20% and 50% of the votes and exercises significant influence but not control are classified as associates. On consolidation, items of a uniform nature are combined. Elimination is made of intercompany income and expenses, shareholdings, dividends and accounts as well as of realised and unrealised profits and losses on transactions between the consolidated enterprises. The Parent Company's investments in the consolidated subsidiaries are set off against the Parent Company's share of the net asset value of subsidiaries stated at the time of consolidation. Minority interests Minority interests form part of the Group's total equity. Upon distribution of net profit, net profit is broken down on the share attributable to minority interests and the share attributable to the shareholders of the Parent Company. Minority interests are recognised on the basis of a remeasurement of acquired assets and liabilities to fair value at the time of acquistition of subsidiaries. Business acquisitions carried through on or after 1 July 2018 Minority interests are initially measured at their proportionate share of the fair value of the acquired entity’s identifiable net assets. In this way, only goodwill related to the Parent Company’s share of the entity acquired is recognised. On subsequent changes to minority interests where the Group retains control of the subsidiary, the consideration is recognised directly in equity. Business combinations Business acquisitions carried through on or after 1 July 2018 Acquisitions of subsidiaries are accounted for using the purchase method under which the identifiable assets and liabilities of the entity acquired are measured at fair value at the time of acquisition. Acquired contingent liabilities are recognised at fair value in the Consolidated Financial Statements to the extent that the value can be measured reliably. The time of acquisition is the time when the Group obtains control of the entity acquired. The cost of the entity acquired is the fair value of the consideration agreed, including consideration contingent on future events. Transaction costs directly attributable to the acquisition of subsidiaries are recognised in the income statement as incurred. Positive differences between the cost of the entity acquired and identifiable assets and liabilities are recognised as goodwill in intangible assets in the balance sheet and are amortised in the income statement on a straight-line basis over their estimated useful lives. Where the differences are negative, they are recognised immediately in the income statement. Where the purchase price allocation is not final, positive and negative differences from acquired subsidiaries due to changes to the recognition and measurement of identifiable net assets may be adjusted for up to 12 months after the time of acquisition. These adjustments are also reflected in the value of goodwill or negative goodwill, including in amortisation already made. Where cost includes contingent consideration, this is measured at fair value at the time of acquisition. Contingent consideration is subsequently measured at fair value. Any value adjustments are recognised in the income statement. In respect of step acquisitions, any previously held investments in the entity acquired are remeasured at fair value at the time of acquisition. The difference between the carrying amount of the investment previously held and the fair value is recognised in the income statement. Leases in terms of which the Group assumes substantially all the risks and rewards of ownership (finance leases) are recognised in the balance sheet at the lower of the fair value of the leased asset and the net present value of the lease payments computed by applying the interest rate implicit in the lease or an alternative borrowing rate as the discount rate. Assets acquired under finance leases are depreciated and written down for impairment under the same policy as determined for the other fixed assets of the Group. The remaining lease obligation is capitalised and recognised in the balance sheet under debt, and the interest element on the lease payments is charged over the lease term to the income statement. All other leases are considered operating leases. Payments made under operating leases are recognised in the income statement on a straight-line basis over the lease term. Transactions in foreign currencies are translated at the exchange rates at the dates of transaction. Gains and losses 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. 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. 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, see below. 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. Information on business segments and geographical segments is based on the Group´s risks and returns and its internal financial reporting system. Business segments are regarded as the primary segments. 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 Group. 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 Group. 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 Group. 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. Expenses for raw materials and consumables comprise the raw materials and consumables consumed to achieve the consolidated revenue for the year. Other external expenses comprise expenses for premises, sales as well as office expenses, etc. Other external expenses also include research and development costs that do not qualify for capitalisation. 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. Other operating income and other operating expenses comprise items of a secondary nature to the main activities of the Group, including gains and losses on the sale of intangible assets and property, plant and equipment. The items “Income from investments in subsidiaries” and “Income from investments in associates” in the income statement include the proportionate share of the profit for the year. Financial income and expenses are recognised in the income statement at the amounts relating to the financial year. Tax for the year consists of current tax for the year and deferred tax for the year. The tax attributable to the profit for year is recognised in the income statement, whereas the tax attributable to equity transactions is recognised directly in equity. Any changes in deferred tax due to changes to tax rates are recognised in the income statement. The Company is jointly taxed with Danish subsidiaries. The tax effect of the joint taxation with the subsidiaries is allocated to Danish enterprises showing profits or losses in proportion to their taxable incomes (full allocation with credit for tax losses). Goodwill is amortised on a straight-line basis over the estimated useful life of 3-10 years, determined on the basis of Management’s experience with the individual business areas. Costs of development projects comprise salaries, amortisation and other expenses directly or indirectly attributable to the Company’s development activities. Development projects that are clearly defined and identifiable and in respect of which technical feasibility, sufficient resources and a potential future market or development opportunity in the enterprise can be demonstrated, and where it is the intention to manufacture, market or use the project, are recognised as intangible assets. This applies if sufficient certainty exists that the value in use of future earnings can cover cost of sales, distribution and administrative expenses involved as well as the development costs. 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. Patents and licences 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 3-8 years. Software licences are amortised over the period of the agreements, which is 3-8 years. Property, plant and equipment are measured at cost less accumulated depreciation and less any accumulated impairment losses. Cost comprises the cost of acquisition and expenses directly related to the acquisition up until the time when the asset is ready for use. 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 buildings 30 years Plant and machinery 3-5 years Other fixtures and fittings, tools and equipment 3-5 years Leasehold improvements The fixed assets’ residual values are determined at nil. 5 years Depreciation period and residual value are reassessed annually. The carrying amounts of intangible assets and property, plant and equipment and investments are reviewed on an annual basis to determine whether there is any indication of impairment other than that expressed by amortisation and depreciation. The recoverable amount of the asset is calculated as the higher of net selling price and value in use. Where a recoverable amount cannot be determined for the individual asset, the assets are assessed in the smallest group of assets for which a reliable recoverable amount can be determined based on a total assessment. Goodwill, head office buildings and other assets for which a separate value in use cannot be determined as the asset does not on an individual basis generate future cash flows are reviewed for impairment together with the group of assets to which they are attributable. Investments in subsidiaries and associates are recognised and measured under the equity method. The items “Investments in subsidiaries” and “Investments in associates” in the balance sheet include the proportionate ownership share of the net asset value of the enterprises calculated on the basis of the fair values of identifiable net assets at the time of acquisition with deduction or addition of unrealised intercompany profits or losses and with addition of the remaining value of any increases in value and goodwill calculated at the time of acquisition of the enterprises. The total net revaluation of investments in subsidiaries and associates is transferred upon distribution of profit to “Reserve for net revaluation under the equity method“ under equity. The reserve is reduced by dividend distributed to the Parent Company and adjusted for other equity movements in the subsidiaries and the associates. Subsidiaries and associates with a negative net asset value are recognised at DKK 0. Any legal or constructive obligation of the Parent Company to cover the negative balance of the enterprise is recognised in provisions. Other fixed asset investments consist of security deposits etc. measured at cost. 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, 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 with addition of indirect production costs. Indirect production costs comprise the cost of indirect materials and labour as well as maintenance and depreciation of the machinery, factory buildings and equipment used in the manufacturing process as well as costs of factory administration and management. 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. Prepayments comprise prepaid expenses concerning rent, insurance premiums, subscriptions and interest. Provisions are recognised when - in consequence of an event occurred before or on the balance sheet date - the Group has a legal or constructive obligation and it is probable that economic benefits must be given up to settle the obligation. Other provisions include warranty obligations in respect of repair work within the warranty period of 1-5 years. Provisions are measured and recognised based on experience with guarantee work. Deferred income tax is measured using the balance sheet liability method in respect of temporary differences arising between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes 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 within the same legal tax entity. 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. Any changes in deferred tax due to changes to tax rates are recognised in the income statement or in equity if the deferred tax relates to items recognised in equity. Current tax liabilities and receivables are recognised in the balance sheet as the expected taxable income for the year adjusted for tax on taxable incomes for prior years and tax paid on account. Extra payments and repayment under the on-account taxation scheme are recognised in the income statement in financial income and expenses. 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. The cash flow statement shows the Group’s cash flows for the year broken down by operating, investing and financing activities, changes for the year in cash and cash equivalents as well as the Group’s cash and cash equivalents at the beginning and end of the year. Cash flows from operating activities are calculated as the net profit/loss for the year adjusted for changes in working capital and non-cash operating items such as depreciation, amortisation and impairment losses, and provisions. Working capital comprises current assets less short-term debt excluding items included in cash and cash equivalents. Cash flows from investing activities comprise cash flows from acquisitions and disposals of intangible assets, property, plant and equipment as well as fixed asset investments. Cash flows from financing activities comprise cash flows from the raising and repayment of long-term debt as well as payments to and from shareholders. Cash and cash equivalents comprise ”Cash at bank and in hand”. The cash flow statement cannot be immediately derived from the published financial records. Gross margin Gross profit x 100 / Revenue Profit margin Profit/loss of ordinary primary operations x 100 / Revenue Return on assets Profit/loss of ordinary 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