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2023-01-01 2023-12-31 fsa:PropertyPlantAndEquipmentInProgressMember 10422345 2023-01-01 2023-12-31 fsa:InvestmentsInGroupEnterprisesMember 10422345 2022-01-01 2022-12-31 fsa:InvestmentsInGroupEnterprisesMember 10422345 2023-01-01 2023-12-31 1 fsa:SubsidiaryMember 10422345 2023-01-01 2023-12-31 2 fsa:SubsidiaryMember 10422345 2023-01-01 2023-12-31 3 fsa:SubsidiaryMember 10422345 2023-01-01 2023-12-31 fsa:DepositsLongtermInvestmentsAndReceivablesMember iso4217:DKK pure Årsrapport 33771231 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab Strandvejen 44 2900 Hellerup 2023-01-01 2022-01-01 2023-12-31 2022-12-31 10422345 Aasted ApS Bygmarken 7 - 17 3520 Farum Furesø +45 4434 8000 www.aasted.eu Mail@aasted.eu PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab 33771231 Strandvejen 44 2900 Hellerup Denmark 39 45 39 45 koebenhavn@pwc.dk 2024-03-15 Bjarne Moltke Hansen Regnskabsklasse C, stor virksomhed Revisionspåtegning The Executive Board and Board of Directors have today considered and adopted the Annual Report of Aasted ApS for the financial year 1 January - 31 December 2023. The Annual Report is prepared in accordance with the Danish Financial Statements Act. In our opinion the Financial Statements give a true and fair view of the financial position at 31 December 2023 of the Company and of the results of the Company operations for 2023. In our opinion, Management's Review includes a true and fair account of the matters addressed in the Review. We recommend that the Annual Report be adopted at the Annual General Meeting. 2024-03-15 Farum Piet Tæstensen CEO Henrik Heitmann Jensen Kenneth Toftedal Heiden Mads Harck Bjarne Moltke Hansen Chairman Poul Christian Aasted Lars Allan Aasted Mads Hedstrøm Thomas Aasted Søren Sandholm Overgaard Danica Sucur To the shareholder of Aasted ApS Opinion In our opinion, the Financial Statements give a true and fair view of the financial position of the Company at 31 December 2023 and of the results of the Company´s operations for the financial year 1 January - 31 December 2023 in accordance with the Danish Financial Statements Act. We have audited the Financial Statements of Aasted ApS for the financial year 1 January - 31 December 2023, which comprise income statement, balance sheet, statement of changes in equity and notes, including a summary of significant accounting policies (”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. Hellerup 2024-03-15 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab Kaare von Cappeln State Authorised Public Accountant mne11629 Jakob Thisted Binder State Authorised Public Accountant mne42816 501099000 571464000 589455000 146178000 171929000 184274000 -1987000 -1728000 -5915000 22527000 36305000 29250000 318757000 306354000 298695000 6917000 11584000 5013000 1726000 6120000 122782000 112255000 75950000 0.247 0.314 0.385 0.366 0.254 0.371 0.178 0.192 0.386 0.477 The Company has prepared an independent report for social responsibility (Corporate Responsibility), which constitutes the statutory statement. In this, the Company explains its view on its social responsibility and data ethics, cf. § 99a and § 99d of the Danish Financial Statements Act. The reporting can be read on the Company's website,https://brochure.aasted.eu/csr/aasted-csr-rapport-2023/ In accordance with Danish financial law, we have set targets for the underrepresented gender, which in Aasted are people who identify as female. Being a manufacturing company, many of the groups of professionals that are needed in the production of our machines have technical and engineering background, which are typically male dominated professions. This translates into the distribution of the gender ratio on the total workforce. We have set targets to reach a more equal distribution of genders across the management levels from board of directors to all employees employed by Aasted. It is our policy to work towards a diversity in our workforce including in the management positions. To support this, we aim for an inclusive workplace and culture that supports minorities including the underrepresented gender, and we aim for that the payment reflects role, responsibility, results, and skills regardless of gender. We monitor the gender pay gap, that in 2023 were -0.7%. Generally, when we use recruiters, usually for key strategic positions like manager positions, they are instructed to not provide name, personal identification number or picture. Furthermore, we have in 2023 used a tool to analyze our job postings, to educate our HR department on inclusive writing.As of 31 December 2023, the share of the underrepresented gender in the Board of Directors at Aasted were 14% (1 out of 7). Our targeted level is to achieve 25% in 2025 and 30% in 2030. Since the current setup of the Board of Directors were established in 2022 with three new external members, changes in the composition are not foreseen neither in 2023 nor in 2024. With this in mind, in 2023 we adapted the 2025 goal from 30% to 25% to be more realistic.As of 31 December 2023, the share of the underrepresented gender in management at Aasted were 20%. With management positions we refer to positions with people management responsibility. Our targeted level is to achieve 25% in 2025 and 30% in 2030. From 2022 to 2023, we have increased the number of management positions, mainly in the production, where it is in general difficult to attract female workforce. This has decreased the share of female managers. In 2023, we redefined our 2025 target from 35% to 25% to better reflect our new organization.Comparing our gender distribution to the goals we have set we see a gap which might not be closed if we continue business as usual. To reach these targets we have planned actions in place for next year.Firstly, getting stakeholder input from professionals in industry organization to identify where we can have the most positive impact.Secondly, management training and dialogue on how we ensure diversity and inclusion in Aasted with a focus on the bias, that may impede the recruitment of more female managers. The Company has prepared an independent report for social responsibility (Corporate Responsibility), which constitutes the statutory statement. In this, the Company explains its view on its social responsibility and data ethics, cf. § 99a and § 99d of the Danish Financial Statements Act. The reporting can be read on the Company's website,https://brochure.aasted.eu/csr/aasted-csr-rapport-2023/ 783490000 576718000 578887000 423626000 204603000 153092000 106836000 83198000 34090000 35555000 63677000 34339000 0 221000 63677000 34560000 2624000 0 3578000 345000 3146000 6009000 66733000 28896000 14397000 6893000 52336000 22003000 40000000 20000000 12336000 2003000 22736000 20074000 30821000 0 7790000 7751000 61347000 27825000 10714000 10192000 2702000 2265000 5649000 3707000 46000 610000 19111000 16774000 1415000 0 4777000 4607000 6192000 4607000 86650000 49206000 154218000 88049000 82760000 44076000 169190000 102020000 8801000 5520000 500000 349000 6835000 8887000 268086000 160852000 127104000 99607000 549408000 348508000 636058000 397714000 320000 320000 23811000 21704000 92990000 82761000 40000000 20000000 157121000 124785000 45906000 31025000 205000 1432000 46111000 32457000 16551000 16015000 27396000 0 43947000 16015000 8371000 6970000 92386000 74995000 228144000 113240000 4286000 0 52267000 29252000 3425000 0 388879000 224457000 432826000 240472000 636058000 397714000 320000 21704000 82761000 20000000 0 0 0 -20000000 0 -168000 168000 0 0 0 12336000 40000000 0 2275000 -2275000 0 320000 23811000 92990000 40000000 320000 22605000 79857000 20000000 0 0 0 -20000000 0 0 2003000 20000000 0 -901000 901000 0 320000 21704000 82761000 20000000 No events materially affecting the assessment of the Annual Report have occurred after the balance sheet date. Aasted ApS only have activities within the segment for production and sales of production equipment to the chocolate and baking industry. With reference to section 96 of the Danish Financial Statement Act the Company has excluded information regarding the distribution of revenue to geographical markets, as the information may cause significant harm to the Company as a result of special competitive considerations. 225608000 198395000 12531000 7846000 3736000 3397000 241875000 209638000 8196000 6829000 820000 512000 9016000 7341000 342000 316000 Wages and salaries, pensions, other social security expenses and other staff expenses are recognised in the following items: Production expenses 171411000 142632000 Distribution expenses 48686000 43430000 Administrative expenses 21778000 23576000 Total 241875000 209638000 Including remuneration to the Executive Board and Board of Directors: 3046000 345000 532000 0 3578000 345000 3146000 713000 0 5296000 OtherFinanceExpenses 3146000 6009000 14881000 7628000 -484000 1732000 0 -2467000 14397000 6893000 35917000 0 7751000 0 34246000 10148000 0 0 216000 9893000 0 -9893000 45810000 34246000 7790000 15843000 0 0 7231000 3425000 0 23074000 3425000 0 22736000 30821000 7790000 Goodwill concerns market rights acquired from the Company's subsidiaries. Development projects relate to the development of the Company's portfolio of products. The cost for the development projects include salaries and other external costs that can be directly or indirectly attributed to the development projects. The recognition of the development costs is based on costs involved in the projects. Progress with the development projects is following the established plan. 34333000 14932000 3768000 610000 3806000 1239000 635000 1237000 0 207000 0 0 0 0 1801000 -1801000 38139000 15964000 6204000 46000 24141000 12667000 61000 0 3284000 802000 494000 0 0 207000 0 0 27425000 13262000 555000 0 10714000 2702000 5649000 46000 320000 320000 320000 320000 -320000 -320000 387000 0 1028000 0 1095000 -320000 1415000 0 Aasted Germany GmbH Bremen, Germany 100 Aasted North America, Inc. USA 100 Aasted Turkey and Middle East LLC Turkey 100 4607000 170000 4777000 4777000 Investments in subsidiaries are specified as follows: 144934000 79280000 6408000 5571000 2876000 3198000 154218000 88049000 Selling price of work in progress 524819000 297375000 Payments received on account -583773000 -308595000 Total -58954000 -11220000 Recognised in the balance sheet as follows: Contract work in progress recognised in assets 169190000 102020000 Prepayments received recognised in debt -228144000 -113240000 Total -58954000 -11220000 Prepayments consists of prepaid expenses related to rent, insurance, subscriptions to service agreements as well as prepaid travel costs. Deferred tax liabilities at 1 January 31025000 25864000 Amounts recognised in the income statement for the year 14881000 5161000 Deferred tax liabilities at 31 December 45906000 31025000 Intangible assets 7039000 6122000 Property, plant and equipment 809000 724000 Inventories 1941000 1336000 Contract work in progress 51041000 28816000 Prepayments 155000 107000 Tax loss carry-forward -15079000 -6080000 45906000 31025000 Deferred tax asset Calculated tax assets 0 0 Carrying amount 0 0 0 0 16551000 16015000 16551000 16015000 52267000 29252000 13698000 0 13698000 0 27396000 0 3425000 0 Payments due within 1 year are recognised in short-term debt. Other debt is recognised in long-term debt. The debt falls due for payment as specified below: Other payables Deferred income Deferred income consists of payments received in respect of internal profit to be reversed in subsequent years. Rental and lease obligations Obligations under rental or leasing contracts until maturity in total 211609000 226648000 Other contingent liabilities Deposit and guarantee obligations 133697000 99580000 The Company has submitted a corporate pledge in the form of an indemnity letter to Nykredit for TDKK 75,000.The Company is involved in a few disputes. The outcome of the disputes is not expected to have a significant impact on the Company's financial position. The group companies are jointly and severally liable for tax on the jointly taxed incomes of the Group. The total amount of corporation tax payable is disclosed in the Annual Report of Aasted Holding ApS, which is the management company of the joint taxation purposes. Moreover, the group companies are jointly and severally liable for Danish withholding taxes by way of dividend tax, tax on royalty payments and tax on unearned income. Any subsequent adjustments of corporation taxes and withholding taxes may increase the Company's liability. Basis Controlling interest Aasted Holding ApS, Bygmarken 9-17, 3520 Farum Majority shareholder Other related parties Consists of the Company's Board of Directors and subsidiaries 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. 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 Aasted Holding ApS, CVR-no. 71 28 60 10 Bygmarken 9-17, 3520 Farum The Annual Report of Aasted ApS for 2023 has been prepared in accordance with the provisions of the Danish Financial Statements Act applying to large enterprises of reporting class C. The accounting policies applied remain unchanged from last year. The Financial Statements for 2023 are presented in TDKK. The Company has adjusted its allocation of expenses to production, distribution and administration in 2023. As a result the comparative figures have also been adjusted to reflect this change. As the change is only an adjustment to the allocation of expenses there is no impact on operating profit/loss, net profit/loss for the year and equity in 2022. With reference to section 112 of the Danish Financial Statements Act and to the consolidated financial statements for 2023 of Aasted Holding ApS, CVR-no. 71 28 60 10, the Company has not prepared consolidated financial statements. 1 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 Aasted Holding ApS, CVR-no. 71 28 60 10, the Company has not prepared a cash flow statement. 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. **Segmentoplysning om nettoomsætning**Oplysninger om aktiviteter og geografiske markeder er baseret på selskabets afkast og risici samt ud fra den interne økonomistyring. Virksomhedens aktiviteter anses som det primære segmentområde. 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. **Produktionsomkostninger**Produktionsomkostninger omfatter de omkostninger, der er medgået til at opnå årets omsætning. I kostprisen indgår råvarer, hjælpematerialer, direkte løn og indirekte produktionsomkostninger, såsom vedligeholdelse og afskrivninger m.v. samt drift, administration og ledelse af fabrikker. Under produktionsomkostninger indregnes tillige forsknings- og udviklingsomkostninger, der ikke opfylder kriterierne for aktivering, samt afskrivning på aktiverede udviklingsomkostninger. Revenue from the sale of goods is recognised when the risks and rewards relating to the goods sold have been transferred to the purchaser, the revenue can be measured reliably and it is probable that the economic benefits relating to the sale will flow to the Company. 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. With reference to section 96 of the Danish Financial Statements Act, Management has omitted information on the distribution of net revenue by geographical markets, as the information could cause significant damage to the Company. Management has justified the application of the section in note 1. Production expenses comprise costs incurred to achieve revenue for the year. Cost comprises raw materials, consumables, direct labour costs and indirect production costs such as maintenance and depreciation, etc, as well as operation, administration and management of factories. Research and development costs that do not meet the criteria for capitalization are also recognized under production expenses, as well as depreciation of capitalized development costs. Distribution expenses comprise costs in the form of salaries to sales and distribution staff, advertising and marketing expenses as well as operation of motor vehicles, depreciation, etc. Administrative expenses comprise expenses for Management, administrative staff, office expenses, depreciation, etc. Administrative expenses also includes impairment of receivables recognized under current assets. 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. The item “Income from investments in subsidiaries” in the income statement includes 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. The Company is jointly taxed with the other companies in the Group. 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). Udviklingsprojekter vedrørende produkter, der er klart definerede og identificerbare, hvor den tekniske udnyttelsesgrad, tilstrækkelige ressourcer og et potentielt fremtidigt marked eller udviklingsmulighed i virksomheden kan påvises, og hvor det er hensigten at fremstille, markedsføre eller anvende det pågældende produkt, indregnes som immaterielle anlægsaktiver. Øvrige udviklingsomkostninger indregnes som omkostninger i resultatopgørelsen, når omkostningerne afholdes. Kostprisen for udviklingsprojekter omfatter omkostninger, herunder gager og afskrivninger, der direkte og indirekte kan henføres til udviklingsprojekterne. Indirekte produktionsomkostninger i form af indirekte henførbare personaleomkostninger og afskrivninger på immaterielle og materielle anlægsaktiver, der er anvendt i udviklingsprocessen, indregnes i kostprisen baseret på medgåede omkostninger for det enkelte projekt. Færdiggjorte udviklingsprojekter afskrives lineært over den forventede brugstid. Afskrivningsperioden udgør 5 år. For udviklingsprojekter, der er beskyttet af immaterielle rettigheder, udgør den maksimale afskrivningsperiode restløbetiden for de pågældende rettigheder. Udviklingsprojekter nedskrives til genindvindingsværdi, hvis denne er lavere end den regnskabsmæssige værdi. Goodwill acquired is measured at cost less accumulated amortisation. Goodwill is amortised on a straight-line basis over its useful life, which is assessed at 10 year. Intellectual property rights, etc. include completed development projects and development projects in progress. Development projects relating to products that are clearly defined and identifiable, where the degree of technical utilization, sufficient resources and a potential future market or development opportunity in the company can be demonstrated, and where the intention is to manufacture, market or use the product in question, are recognized as intangible fixed assets. Other development costs are recognized as costs in the income statement when the costs are incurred. The cost for development projects includes wages and depreciation, that can be directly and indirectly attributed to the development projects. Indirect production costs in the form of indirectly attributable personnel costs and depreciation on intangible and tangible fixed assets used in the development process are recognized in the cost based on incurred costs for the individual project. Completed development projects are depreciated on a straight-line basis over the expected useful life. The depreciation period is 5 years. For development projects protected by intellectual property rights, the maximum amortization period constitutes the remaining term of the rights in question. Development projects are written down to the recoverable amount if this is lower than the accounting value. 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. 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: Plant and machinery 5 years Other fixtures and fittings, tools and equipment 5 years Leasehold improvements 10 years The fixed assets’ residual values are determined at nil. Profit and loss on disposal of property, plant and equipment is calculated as the difference between the sales price less sales costs and the accounting value at the time of sale. Profit or loss is recognized in the income statement as a correction to depreciation and write-downs or under other operating income, to the extent that the selling price exceeds the original cost. 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. If so, the asset is written down to its lower recoverable amount. Investments in subsidiaries are recognised and measured under the equity method. The item “Investments in subsidiaries” 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. The total net revaluation of investments in subsidiaries 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. Subsidiaries 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 deposits. 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 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. Expenses relating to sales work and the winning of contracts are recognised in the income statement as incurred. **Likvide beholdninger**Likvide beholdninger omfatter kontante beholdninger og bankindeståender. Prepayments comprise prepaid expenses concerning rent, insurance premiums, subscriptions and travel costs. **Cash and cash equivalents** Cash and cash equivalents include cash and bank deposits. Dividend distribution proposed by Management for the year is disclosed as a separate Dividend item. 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 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 receivables and liabilities are recognised in the balance sheet at the amount calculated on the basis of the expected taxable income for the year adjusted for tax on taxable incomes for prior years. Tax receivables and liabilities are offset if there is a legally enforceable right of set-off and an intention to settle on a net basis or simultaneously. Debts are measured at amortised cost, substantially corresponding to nominal value. Deferred income comprises payments received in respect of income in subsequent years. 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 Profit margin Profit/loss before financial income and expenses x 100 / Revenue EBITDA margin EBITDA x 100 / Revenue