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Primary activities The Company, AIP Infrastructure II K/S, was established in June 2020 and is a private alternative infrastructure fund managed by AIP Management P/S. The General Partner is AIP Infrastructure II GP ApS. The Company invests in renewables energy and transition assets and is set to yield stable and long-term returns to the benefit of the investors. The principal activities of the Company in the period under review were to own shares in: • AIP Escalade Holding GP ApS (100%) • AIP Escalade Holding K/S (78.07%) o AIP Escalade Holding GP Inc. (100%) o AIP Escalade Holding (US) LP (100%) ▪ Escalade Partners LLC (35%) • AIP Mallard Holding GP ApS (100%) • AIP Mallard Holding K/S (78.07%) o Agility Trains East (Holdings) Ltd. (30%) • AIP Dante Holding GP ApS (100%) • AIP Dante Holding K/S (78,07%) • AIP Porter Holding GP ApS (100%) • AIP Porter Holding K/S (99.97%) • AIP Pref NE GP ApS (100%) • AIP Pref NE K/S (99.97%) • AIP Pref S.E GP ApS (100%) • AIP Pref S.E. K/S (99.97%) o AIP preferred ApS (100%) • AIP XLT Holding GP ApS (100%) • AIP XLT Holding K/S (78.07%) o Galvani JVCo Limited (30.56%) • AIP Lorax Holding GP ApS (100%) • AIP Lorax Holding K/S (78.07%) o AIP CW Holding (US) GP Inc. (100%) o AIP CW Holding LP (100%) o AIP Lorax LLC (100%) ▪ VP-Arica TargetCo LLC (60%) • VP-Arica Class B LLC (100%) • AIP II Holding 9 GP ApS (100%) • AIP II Holding 9 K/S (100%) Development in activities and finances The Company’s Consolidated Income Statement of the Financial year 1 January – 31 December 2023 shows a Net result of DKK 330,493k, compared to a negative result of DKK 566,161k in 2022. The result for 2023 is in line with the management’s expectations and have been favorable impacted by macro-economic circumstances, that has been partially offset by increased interest rates and negative change in exchange rates. For 2024 the management expects a positive result of DKK 300-400 million depending on macro-economic circumstances e.g. power prices, inflation and interest levels. Uncertainty in recognition and measurement It is assessed that there is no significant uncertainty in the recognition and measurement of financial figures. Principal risks and uncertainties The management does not see any special risks to the company in connection with the ownership of the shares in above companies’ projects in addition to the commonly occurring risks within the companies’ industry. Management sees no special risk of affecting the external environment in connection with the ownership of the shares in above companies and their projects. Subsequent Events No subsequent events have occurred after the balance sheet date that required adjustment to or disclosure in the financial statements. Corporate social responsibility/ESG The company is managed by the fund manager AIP Management P/S. All matters related to Corporate Social Responsibility/ESG are governed by the policies of the fund manager. Please download the ESG report for further information about how AIP Management works with ESG across the investment portfolio. The report is available on the AIP Management website, www.aipmanagement.dk/sustainability-reports. Policies governing environment and climate, social matters and staff-related matters, human rights, and anti-corruption. The Limited Partnership is subject to several policies covering environment and climate, social matters and staff-related matters, human rights, and anti-corruption. The Responsible Investment Policy and the ESG policy defines the principles, while the underlying procedures supports the implementation. Environmental, social and governance considerations are important for investment decision-making, both in terms of understanding and managing risks, and identifying opportunities for enhancement. We believe that a strong focus on responsible investing and ESG will create long-term value for our investors. Consequently, we have integrated a range of ESG principles and valuations throughout all stages of our investment process; from initial screening and investment analysis, during due diligence, negotiation and closing of transaction, and thereafter in the asset management phase. Below we have described the principles and our results for 2023 in more detail. In 2024, the Limited Partnership expects to continue to focus on its efforts within environment and climate, social and staff-related matters, human rights, and anti-corruption. Environment and climate The Limited Partnership maintains a responsible approach to environmental and climate issues, with a climate-friendly investment policy and a requirement to adopt good industry environmental practices. Investments in renewable energy projects have significant climate benefits in terms of emissions avoided (see later SFDR section of this report). The Limited Partnership adheres to the following environmental principles: • Continue to invest in renewable energy • Minimize environmental consequences related to construction and operation of infrastructure assets • Minimize carbon footprint of investments • Minimize carbon footprint of own operations • Exclude investments in coal, oil and tar sands In 2023, the limited partnership has maintained its positive contribution within Environmental and Climate impact. Social matters and staff-related matters For social matters and staff-related matters, the Limited Partnership promotes that the fundamental employees’ rights shall be acknowledged and observed by the investment project. The principal risks to the Limited Partnership’s activities relate to non-adherence to its labor and health and safety standards. In addition to contractual standards, the Limited Partnership monitors performance on an ongoing basis and receives monthly reports about the status of Limited Partnership investments. In 2023, the Limited Partnership has contributed to a safe and healthy work environment. Human rights In respect of human rights, the Limited Partnership promotes human rights principles and adopts a zero-tolerance approach to infringement of such rights. The principal risks to the Limited Partnership’s activities relate to potential non-adherence to its labor standards in the investments. The Limited Partnership follows local regulations and expects investment to comply with international commitments related to human rights. In 2023, the Limited Partnership is not aware of any breaches of human rights. Anti-corruption The Limited Partnership has a zero-tolerance policy when it comes to corruption and bribery. No corruption and/or bribery shall take place or be carried out directly or indirectly by any of the parties involved in an investment. The Limited Partnership has taken measures to reduce the risk of corruption, by performing due diligence and monitoring of counterparties and requiring standards of business conduct in contractual agreements. Background checks are conducted using a risk-based approach. In 2023, the Limited Partnership believes that it has not contributed to any form of corruption or bribery. Risk assessment and risk mitigation The main risks associated with the overall investment process of the Fund are: • Market risks • Credit risks • Liquidity risks • Counterparty risks • Operational risks To manage these risks, AIP Management as the overall fund management company in the group has established a risk management function. The key responsibility of the function is to perform independent, and reliable: • Risk identification • Risk measurement • Risk management • Risk monitoring • Stress tests/Analysis Individual departments within AIP Management have the overall responsibility to carry out the procedures implemented, whilst Risk Management has the responsibility of overseeing this work. Sustainable Finance Disclosure Regulation (SFDR) The company fulfills the requirement for periodic publication of information on financial products, cf. Article 8, subsection 1, 2 and 2a, in Regulation (EU) 2019/2088 and Article 6, subsection 1, in Regulation (EU) 2020/852 by preparing a supplementary report in connection with this annual report. Executive Board composition No policy or objective for the composition of the Board of Directors or the Executive Board, but the company complies with the legislation in force in the area at any given time. Supplementary Report Template periodic disclosure for the financial products referred to in Article 8, paragraphs 1, 2 and 2a, of Regulation (EU) 2019/2088 and Article 6, first paragraph, of Regulation (EU) 2020/852 Product name: AIP Infrastructure II K/S (CVR.no: 41411856) Legal entity identifier: 984500FE8JB0O4B64C87 Environmental and/or social characteristics Did this financial product have a sustainable investment objective? Yes No It made sustainable It promoted Environmental/Social (E/S) X investments with an characteristics and while it did not have as its objective a environmental objective: ___% sustainable investment, it had a proportion of in economic activities that 40% of sustainable investments qualify as environmentally sustainable under the EU with an environmental objective in X Taxonomy economic activities that qualify as environmentally sustainable under the EU in economic activities that do Taxonomy not qualify as environmentally sustainable under the EU with an environmental objective in economic activities that do not qualify as Taxonomy environmentally sustainable under the EU Taxonomy with a social objective It made sustainable investments It promoted E/S characteristics, but did not with a social objective: ___% make any sustainable investments To what extent were the environmental and/or social characteristics promoted by this financial product met? AIP Infrastructure II K/S (“the Fund”) promotes environmental characteristics by investing in economic activities that contributes to one or more of the following sustainability indicators: increased renewable energy capacity (MW), increased renewable energy generated (MWh), reduction in greenhouse gas emissions and climate change mitigation. This report discloses information pertaining to the sustainability and performance of investments in cases where the assets have actively produced electricity. Investments that are currently under construction and prospective investment opportunities, as they do not yet generate electricity, have not attained a stage allowing for reliable determination of sustainability indicators. Consequently, these investments will not be considered in the assessment of the Fund's performance with respect to the sustainability indicators. During this reference period, the Fund made one new investment, H2 Green Steel, a manufacturer of carbon-neutral green steel, made with renewable hydrogen. The investment was consistent with the environmental objective of the Fund. The investment followed good governance practices and was in line with the Fund Manager’s, AIP Management P/S (“AIP”), ESG Policy and Responsible Investment Policy. The investment were subject to the ESG due diligence process. At last, the Fund’s investment, Elias, became operational and commenced electricity production in late Q4, resulting in an increase for this specific reference period. How did the sustainability indicators perform? During the reference period, the Fund has used the following sustainability indicators to measure the environmental characteristics promoted: Sustainability Data 2023 Data 2022  Change in % indicators  Renewable energy 186 101 85,2% capacity (MW)  Renewable energy 364,613 206,182 76,8% generated (MWh)  Greenhouse gas 117,510 63,666 84,6% emissions avoided (tCO2e) The operational portfolio of the Fund generated 364,613 MWh during 2023, which corresponds to 117,510 tCO2e avoided. …and compared to previous periods? The Fund increased its emissions avoided by 53,844 tCO2e in 2023. This constitues to a increase of 84,6% due to the increase of assets in operation. What were the objectives of the sustainable investments that the financial product partially made and how did the sustainable investment contribute to such objectives? The Fund has committed to have a minimum proportion of 40% of sustainable investments. The Fund has conducted an assessment of the alignment of the portfolio against the EU Taxonomy and has assessed that 78% of the assets is within activities that are aligned with the EU Taxonomy. The assessment is based on the EU Taxonomy criteria for climate change mitigation. The investments which are classified as aligned with the EU taxonomy is thus making a substantial contribution to the objective of climate change mitigation by providing renewable energy, storing renewable energy, or providing low carbon transport. How did the sustainable investments that the financial product partially made not cause significant harm to any environmental or social sustainable investment objective? The sustainable investments undertaken by the Fund during this reference period was analysed against the EU Taxonomy’s “do no significant harm”-criteria as an integrated part of the Fund’s investment process, where applicable. All investments were subject to the extensive ESG due diligence process which AIP conducts for all investments which consider Do No Significant Harm to other objectives under the taxonomy. How were the indicators for adverse impacts on sustainability factors taken into account? The principal adverse impacts on sustainability factors were considered during the ESG due diligence process and continuedly monitored during asset management. Were sustainable investments aligned with the OECD Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights? Details: 78% of the investments that are aligned with the EU Taxonomy. The remaining share of the portfolio also aligns with the OECD MNE and the UNGP, as this is part of the ESG due diligence process. The fund has established an annual good governance screening process and minimum safeguards based in OECD and the UNGP are considered in the due diligence phase. How did this financial product consider principal adverse impacts on sustainability factors? During the reference period, the principal adverse impact indicators (PAIs) were considered during the ESG due diligence process. For the portfolio as a whole the PAIs are presented in AIP’s Article 4 - PAI Statement. The Fund assesses that none of the investments in the portfolio are causing significant harm to any environmental or social objectives. During this reference period the Fund have committed and considered the following 2 environmental and 7 social additional voluntary PAIs on sustainability factors to its reporting (available on our website in our Annex I – Principal Adverse Impact Statement): Environmental: • Investments in companies without carbon emission reduction initiatives • Natural species and protected areas Social: • Investments in companies without workplace accident prevention policies • Number of days lost to injuries, accident, fatalities, or illness • Insufficient whistleblower protection • Lack of human rights policy • Operations and suppliers at significant risk of incidents of child labour • Operations and suppliers at significant risk of incidents of forced or compulsory labour • Number of identified cases of severe human rights issues and incident The Fund considers the PAI indicators on sustainability factors as performance measure for the “do no significantly harm” (DNSH) principle. The mandatory as well as additional PAIs are monitored continuously. If the PAIs demonstrate negative progress, the Fund will work with the investee companies to rectify the causes of the negative progress through close collaboration. What were the top investments of this financial product? Largest investments Sector % Assets Country Agility Trains East Rail transport 23% United Kingdom Porter Renewable energy 15% Lithuania Escalade Renewable energy 12% United States Navarra Renewable energy 11% Spain Elias Renewable energy 10% Finland Dante Renewable energy 9% United Kingdom Cross London Trains Rail transport 8% United Kingdom Viiatti Renewable energy 7% Finland Lorax Renewable energy 5% United States H2 Green Steel Manufacturing of steel - Sweden What was the proportion of sustainability-related investments? The proportion of sustainability-related investment was 78%. This is based on the current/market value of each asset which has been assessed as being aligned with the criteria in the EU Taxonomy. What was the asset allocation? #1A SustainableTaxonomy-aligned78%78% #1 Aligned with InvestmentsE/S characteristics#1B Other E/S 100%characteristics22%#1 Aligned with E/S characteristics includes the investments of the financial product used to attain the environmental or social characteristics promoted by the financial product. #2Other includes the remaining investments of the financial product which are neither aligned with the environmental or social characteristics, nor are qualified as sustainable investments. The category #1 Aligned with E/S characteristics covers: - The sub-category #1A Sustainable covers environmentally and socially sustainable investments. - The sub-category #1B Other E/S characteristics covers investments aligned with the environmental or social characteristics that do not qualify as sustainable investments. In which economic sectors were the investments made? During this reference period, the Fund made 1 new investment in a green hydrogen producing steel asset. To what extent were the sustainable investments with an environmental objective aligned with the EU Taxonomy? 78% of investments in economic activities that qualify as environmentally sustainable were aligned with the EU Taxonomy. Did the financial product invest in fossil gas and/or nuclear energy related 1activities complying with the EU Taxonomy? 1 Fossil gas and/or nuclear related activities will only comply with the EU Taxonomy where they contribute to limiting climate change (“climate change mitigation”) and do not significantly harm any EU Taxonomy objective - see explanatory note in the left hand margin. The full criteria for fossil gas and nuclear energy economic activities that comply with the EU Taxonomy are laid down in Commission Delegated Regulation (EU) 2022/1214. Yes: In fossil gas In nuclear energy No X The graphs below show in green the percentage of investments that were aligned with the EU Taxonomy. As there is no appropriate methodology to determine the taxonomy-alignment of sovereign bonds*, the first graph shows the Taxonomy alignment in relation to all the investments of the financial product including sovereign bonds, while the second graph shows the Taxonomy alignment only in relation to the investments of the financial product other than sovereign bonds. 2. Taxonomy-alignment of investments 1. Taxonomy-alignment of investments excluding sovereign bonds*including sovereign bonds* x%x%78%22%Turnoverx%78%22%TurnoverCapExx%78%22%CapExx%x%78%22%OpExx%78%22%OpExx%x%78%22%0% 50% 100%0% 50% 100%Taxonomy-aligned: Fossil gasTaxonomy-aligned: Fossil gasTaxonomy-aligned: NuclearTaxonomy-aligned: NuclearTaxonomy-aligned (no gas and nuclear)Taxonomy-aligned (no gas and nuclear)Non Taxonomy-alignedNon Taxonomy-alignedThis graph represents 78% of the total investments.* For the purpose of these graphs, ‘sovereign bonds’ consist of all sovereign exposures. What was the share of investments made in transitional and enabling activities? 31% of the total investments of the Fund was invested into transitional activities. None of the investments were related to enabling activities. How did the percentage of investments that were aligned with the EU Taxonomy compare with previous reference periods? The Taxonomy-aligned investments have decreased to 78% constituting to a 22% reduction in Taxonomy-aligned investments for the Fund in this reference period. This is due to new investments in the fund. What was the share of sustainable investments with an environmental objective not aligned with the EU Taxonomy? The share of sustainable investments with an environmental objective that were not aligned with the EU Taxonomy is 22%. What was the share of socially sustainable investments? The Fund did not commit to make socially sustainable investments. What investments were included under “other”, what was their purpose and were there any minimum environmental or social safeguards? No investment are classified as “other”. What actions have been taken to meet the environmental and/or social characteristics during the reference period? All investments held by the Fund during the reference period were subject to the mechnanisms and procedures described in the Fund’s Article 10 – Website Disclosure and were considered to be materially aligned with them. The binding elements of the investment strategy used to attain the environmental and social characteristics promoted by this fund have been monitored and documented on an ongoing basis. Specific actions have been taken by implementing a new data collection tool in collaboration with third-party experts with the purpose of strenghtening good governance around the ESG data collection process and more validated calculations of the principal adverse impact indicators. This will also act as a database going forward and let us to establish more specific GHG targets for the the Fund. How did this financial product perform compared to the reference benchmark? A specific index is not designated to the Fund. How does the reference benchmark differ from a broad market index? The Fund did not use a reference benchmark. How did this financial product perform with regard to the sustainability indicators to determine the alignment of the reference benchmark with the environmental or social characteristics promoted? The Fund did not use a reference benchmark. How did this financial product perform compared with the reference benchmark? The Fund did not use a refernece benchmark. How did this financial product perform compared with the broad market index? The Fund did not use a reference benchmark. Gender diversity There are only two persons in the Executive Board and it is not meaningful to set target figures. Data ethics The entity has not implemented a data ethics policy. There are no people employed in the entity and the entity has limited data. The data landscape of the entity is very simple and does not imply any data ethical risk. The Executive Board has today considered and adopted the Annual Report of AIP Infrastructure II K/S for the financial year 1 January – 31 December 2023. The Annual Report is prepared in accordance with the Danish Financial Statements Act and other relevant legislation. In our opinion, the Financial Statements and the Consolidated Financial Statements give a true and fair view of the financial position at 31 December 2023 of the Company and the Group and of the results of the Company and Group operations and cash flows for 1 January – 31 December 2023. In our opinion, the Management review includes a true and fair account of the matter addressed in the review. We recommend that the Annual Report be adopted at the Annual General Meeting. Copenhagen, Jannick Prehn Brøndum Kasper Hansen To the Limited Partners of AIP Infrastructure II K/S 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 December 2023, and of the results of the Group’s and the Parent Company’s operations as well as the consolidated cash flows for the financial year 1 January - 31 December 2023 in accordance with the Danish Financial Statements Act. We have audited the Consolidated Financial Statements and the Parent Company Financial Statements of AIP Infrastructure II K/S 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 accounting policies, for both the Group and the Parent Company, as well as consolidated statement of cash flows (“financial statements”). 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 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 Financials Statements Act and other relevant legislation. 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 Statement Act and the information requirements in other relevant legislation. We did not identify any material misstatement in Management’s Review. 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 judgment 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. Hellerup, PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab 33771231 Per Rolf Larssen Casper Larsen State Authorised Public Accountant State Authorised Public Accountant mne24822 mne45855 -61023000 -67800000 -92995000 -90337000 594000 614000 0 0 0 0 473903000 259189000 196904000 85263000 0 0 179651000 857093000 50979000 1162716000 -44364000 -840245000 329929000 -993864000 375489000 275647000 2191000 4206000 614000 1552000 3823000 1799000 330511000 -566150000 328297000 -991456000 19000 11000 0 0 330493000 -566161000 328297000 -991456000 473903000 259634000 473903000 259634000 45282000 -119073000 0 0 -188692000 -706722000 -145606000 -1251090000 330493000 -566161000 328297000 -991456000 0 0 8491706000 5834639000 3955882000 3137042000 0 0 0 0 0 0 6731844000 4506251000 0 0 10687726000 7643293000 8491706000 5834639000 10687726000 7643293000 8491706000 5834639000 0 0 64868000 8748000 60771000 4790000 542000 0 60771000 4790000 65410000 8748000 138027000 172171000 10743000 50051000 198798000 176961000 76154000 58799000 10886523000 7820254000 8567860000 5893438000 10166820000 7366142000 10166787000 7366108000 -1137555000 -982103000 -1670370000 -1524764000 9029265000 6384039000 8496417000 5841344000 1738956000 1383194000 0 0 10768221000 7767233000 8496417000 5841344000 118302000 53021000 71443000 52095000 118302000 53021000 71443000 52095000 10886523000 7820254000 8567860000 5893438000 7366142000 0 -982103000 1383194000 7767233000 2800678000 0 0 475895000 3276572000 0 0 33240000 -7757000 25484000 0 473903000 -188692000 45282000 330493000 0 -473903000 0 -157657000 -631560000 10166820000 0 -1137555000 1738956000 10768221000 7366108000 0 -1524764000 5841344000 2800679000 0 0 2800679000 0 473903000 -145606000 328297000 0 -473903000 0 -473903000 10166787000 0 -1670370000 8496417000 330493000 -566161000 -392129000 497735000 Changes in working capital Changes in working capital 9300000 -3966000 -52335000 -72392000 Investment in financial assets Investment in financial assets -3224084000 -1579385000 196904000 85263000 FX adjustments FX adjustments 25484000 -163464000 -3001696000 -1657587000 3276572000 1833927000 Interests paid Interests paid -85000 -1447000 Interest income Interest income 374961000 275542000 631560000 335068000 3019888000 1772954000 172171000 129195000 -34144000 42976000 138027000 172171000 Principal accounting policies This annual report has been presented in accordance with the provisions of the Danish Financial Statements Act governing reporting medium sized class C enterprises. The accounting policies applied to the Group are identical to the rules applied to the Parent. Consolidated financial statements The consolidated financial statement comprises the parent and the group enterprises that are controlled by the parent. Control of a subsidiary is achieved by the parent, either directly or indirectly, holding more than 50% of the voting rights or in any other way exercising controlling influence. Enterprises in which the group, directly or indirectly, holds between 20% and 50% of the voting rights and exercises significant, but not controlling, influence are regarded as associates. Basis of consolidation The consolidated financial statements are prepared based on the financial statements of the parent and its subsidiaries. The consolidated financial statements are prepared by combining uniform items. On consolidation, intra-group income, expenses, accounts and dividends are eliminated. The financial statements used for consolidation have been prepared applying the group accounting policies. Subsidiaries’ financial statement items are recognised in full in the consolidated financial statements. Presentation currency The reporting currency is Danish kroner. All amounts are in thousands of DKK. The exchange rates used as at 31 December 2023: EUR 745.29 (2022: 743.65), USD 674.47 (2022: 697.22), GBP 857.59 (2022: 838.45) was used where translation to DKK was needed. Recognition and measurement Revenue is recognized in the income statement as it is earned, including value adjustments of financial assets and liabilities measured at fair value or amortized costs. In addition, expenses incurred to achieve the year’s earnings are recognized, including depreciation, write-downs, provisions, and reversals because of changed accounting estimates of amounts previously recognized in the income statement. Assets are recognized in the balance sheet when it is probable because of a prior event that future economic benefits will flow to the company, and the value of the asset can be measured reliably. Liabilities are recognized in the balance sheet when the company has a legal or constructive obligation because of a prior event, and it is probable that future economic benefits will flow out of the company, and the value of the liabilities can be measured. At initial recognition, assets and liabilities are measured at cost. Subsequently, assets and liabilities are measured as described for each accounting item below. Recognition and measurements consider the gains, losses and risks that arise before the annual report is presented and which corroborates or invalidates conditions that existed at the balance sheet date. The group accounts are consolidated based on the subsidiaries individual accounts adjusted for any intercompany transactions and equity interest. Foreign currency translation Foreign currency transactions are translated at the exchange rate at the transaction date. Exchange rate differences arising between the exchange rate at the transaction date and the rate at the payment date are recognizes in the income statement as a financial item. Receivables, payables, and other monetary items in foreign currencies that have not been settled on the balance sheet date are translated at the exchange rate at the balance sheet date. The difference between the exchange rate at the balance sheet date and the exchange rate at the transaction date is recognized in the income statement as a financial item. Key ratios Key figures and financial ratios are determined based on “Recommendations & Financial Ratios” issued by the Danish Society of Financial Analyst: Equity ratio = Equity, end of period x 100 Total Assets Return on Equity = Net Result x 100 Average Equity Income statement Gross loss Gross loss is calculated with reference to §32 of the Danish Financial Statements Act as a summary of other external costs. Other external costs Other external costs include costs for administration, etc. Staff expenses Staff expenses comprises wages, payroll taxes and other social security contributions. For information about remuneration policy and disclosure requirements on remuneration for managers of alternative investment funds please see the annual report for the Fund Manager. Income from group companies Dividend income from group companies is presented in the Income statement in the year of which it was declared. Income from associated companies Dividend income from associated companies is presented in the Income statement in the year of which it was declared. Impairment Investments in subsidiaries and associates are recognized and measured at cost. If there is an indication of a need for impairment, an impairment test is performed. Where the carrying amount exceeds the recoverable amount it is written down to this lower value. Financial items Financial income and expenses include interest income and expenses, realized and unrealized gains and losses on debt, fair value of investments & loans and transactions in foreign currencies. Tax The company is not taxable independently, which is why the tax liability is incumbent on the company’s investors. As a result, no tax and deferred tax has been set aside in the accounts for the Company. At Group level the income taxes for the year, is recognized in the income statement with the part that can be attributed to the profit for the year. Balance sheet Investments in financial assets Investments in subsidiaries and associates are recognized and measured at cost. If there is an indication of a need for impairment, an impairment test is performed. Where the carrying amount exceeds the recoverable amount it is written down to this lower value. Receivables Receivables are recognized and measured at amortized cost. If there is an indication of a need for impairment, an impairment test is performed. Where the carrying amount exceeds the recoverable amount it is written down to the lower value. Cash and cash equivalents Cash comprises cash in bank deposits. Cash and cash equivalents comprise cash and bank balances net of bank overdrafts. Equity Dividend distributions proposed by the management for the financial year are shown as a separate item under equity. Short-term payables Expenses with reference to the fiscal year are accrued for. Cash flow statement Cash flow from operating activities includes all cash transactions other than cash flows arising from investments, received dividends, paid and received financial items and equity transactions. Cash flow statement is calculated based on the indirect method where the cash flow is based on the difference between year start and year end with adjustments for non-cash items. true Note 2 2023 2022 2023 2022Employees Group Group Parent ParentWages and salaries- 266 - 252 - - Taxes and social security contributions- 328 - 362 - - Total staff expenses- 594 - 614 - - 1 1 0 0 Note 3Financial incomeInterest from loans to Group companies - - - 4,004 Interest from loans to associated companies 307,891 275,531 - - Gain on foreign exchanges 528 117 528 114 Other financial income 67,070 - 1,663 87 Total financial income 375,489 275,647 2,191 4,206 Note 4Financial expenses Loss on foreign exchanges- 614 - 105 - 612 - Other financial expenses - - 1,447 - 3,212 - 1,799 Total financial expenses- 614 - 1,552 - 3,823 - 1,799 Note 5TaxesIncome taxes- 19 - 11 - - Total income taxes- 19 - 11 - - Note 6Investments in group companiesCost at 1 January - - 7,151,976 5,958,570 Additions in year - - 2,708,086 1,501,199 Disposals in year - - - 40 - 307,792 Cost at 31 December - - 9,860,022 7,151,976 Impairment at 1 January - - - 1,317,337 - 154,621 Impairment in year - - - 50,979 - 1,162,716 Impairment at 31 December - - - 1,368,316 - 1,317,337 Total investments in group companies - - 8,491,706 5,834,639 The company has investment in the following subsidiaries: Investments in subsidiaries Registered Ownershare in Company nameoffice%AIP Escalade Holding GP ApS Copenhagen, Denmark 100.00 AIP Escalade Holding K/S Copenhagen, Denmark 78.07 AIP Mallard Holding GP ApS Copenhagen, Denmark 100.00 AIP Mallard Holding K/S Copenhagen, Denmark 78.07 AIP Dante Holding GP ApS Copenhagen, Denmark 100.00 AIP Dante Holding K/S Copenhagen, Denmark 78.07 AIP XLT Holding GP ApS Copenhagen, Denmark 100.00 AIP XLT Holding K/S Copenhagen, Denmark 78.07 AIP Pref NE GP ApS Copenhagen, Denmark 100.00 AIP Pref NE K/S Copenhagen, Denmark 99.97 AIP Porter Holding GP ApS Copenhagen, Denmark 100.00 AIP Porter Holding K/S Copenhagen, Denmark 99.97 AIP Pref S.E. GP ApS Copenhagen, Denmark 100.00 AIP Pref S.E. K/S Copenhagen, Denmark 99.97 AIP Lorax Holding GP ApS Copenhagen, Denmark 100.00 AIP Lorax Holding K/S Copenhagen, Denmark 78.07 AIP II Holding 9 GP ApS Copenhagen, Denmark 100.00 AIP II Holding 9 K/S Copenhagen, Denmark 100.00 Note 7 2023 2022 2023 2022Investments in associated companies Group Group Parent ParentCost at 1 January 4,026,150 3,295,900 - - Additions in year 1,018,958 730,250 - - Disposals in year - - - - Cost at 31 December 5,045,108 4,026,150 - - Impairment at 1 January- 889,108 - 69,268 - - Impairment in year- 200,118 - 819,839 - - Impairment at 31 December- 1,089,226 - 889,108 - - Total investments in associated companies 3,955,882 3,137,042 - - The Group has investment in the following associated companies: Registered Ownershare Company name LCYofficein %Equity* Net Result*Escalade Partners LLC USD USA 35.00 330,764 - 21,701 Agility Trains East (Holdings) Limited GBP UK 30.00 33,690 24,380 Galvani JVCo Ltd GBP UK 30.56 439,306 148,470 VP-Arica TE HoldCo LLC** USD USA 50.00 * In thousands LCY, latest audited annual report** The company has not yet published an annual report Note 11 Contingent liabilities The company has no contingent liabilities apart from the liabilities already recognized in the balance sheet. Note 12 Group and ownership relations The fund is owned by: • Pensionskassen for Sygeplejersker og Lægesekretærer, Tuborg Boulevard 3, 2900 Hellerup, CVR 71 97 15 11, Owner 27.43% • Pensionskassen for Socialrådgivere, Socialpædagoger og Kontorpersonale Tuborg Boulevard 3, 2900 Hellerup, CVR 71 97 43 16, Owner 15.60% • Pensionskassen for Sundhedsfaglige, Tuborg Boulevard 3, 2900 Hellerup, CVR 71 97 35 14, Owner 12.11% • Pensionskassen for Farmakonomer, Tuborg Boulevard 3, 2900 Hellerup, CVR 10 49 68 37, Owner 2.00% • PenSam Pension forsikringsaktieselskab, Jørgen Knudsens Vej 2, 3520 Farum, CVR 14 63 89 03, Owner 22.13% • AIP Infrastructure II Swiss Feeder, Klareboderne 1, 1115 Copenhagen K, CVR 41 41 16 27, Owner 6.44% • AkademikerPension – Akademikernes Pensionskasse, Smakkedalen 8, 2820 Gentofte, CVR 20 76 68 16, Owner 10.21% • Lærernes Pension, Forsikringsaktieselskab, Tuborg Boulevard 3, 2900 Hellerup, CVR 17 10 65 89, Owner 4.08% Other related parties include: • AIP Infrastructure II GP ApS, Klareboderne 1, 1115 Copenhagen K, CVR: 41 40 89 01 Besides the investment transactions shown in the financial statement and general partner fee, there are no transactions with related parties. The Group is not part of any other consolidated financial statements. Note 8 2023 2022 2023 2022Receivable from group companies Group Group Parent ParentCost at 1 January - - - 7,613 Additions in year - - - - Repayments in year - - - - 7,613 Cost at 31 December - - - - Total receivable from group companies - - - - Note 9Receivable from associated companiesCost at 1 January 4,506,251 3,694,369 - - Additions in year 2,471,712 1,033,261 - - Repayments in year- 246,119 - 221,380 - - Cost at 31 December 6,731,844 4,506,251 - - Total receivable from associated companies 6,731,844 4,506,251 - - Note 10Cash flow statement - adjustmentsDividends received- 196,904 - 85,263 Interest paid 614 1,552 Interests income- 375,489 - 275,647 Valuation changes 179,651 857,093 Total adjustments- 392,129 497,735 Annual report Auditor's report on audited financial statements ParsePort XBRL Converter 2023-01-01 2023-12-31 2022-01-01 2022-12-31 2024-04-29 Reporting class C, medium-size enterprise 2020-06-03 2024-04-15 39504308 AIP Management P/S Klareboderne 1 1115 Copenhagen Opinion Basis for Opinion 2024-04-15 33771231 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab Strandvejen 44 2900 Hellerup Net profit Net profit