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Strandvejen 44 2900 Hellerup 2025-01-01 2024-01-01 2025-12-31 2024-12-31 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab 33771231 Regnskabsklasse C, mellemstor virksomhed Revisionspåtegning true 2026-03-10 Claus Berner Nielsen The Executive Board and Board of Directors have today considered and adopted the Annual Report of INPS A/S for the financial year 1 January - 31 December 2025. 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 December 2025 of the Company and the Group and of the results of the Company and Group operations and of consolidated cash flows for 2025. 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. Sønderborg 2026-03-10 Jens Rom CEO Jan C. von Backhaus Bent Kristensen Peter M. Clausen Chairman Vice chairman Flemming Hegelund Kær Claus Berner Nielsen Erik Balck Sørensen To the shareholder of INPS 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 December 2025 and of the results of the Group’s and the Parent Company’s operations as well as of the consolidated cash flows for the financial year 1 January - 31 December 2025 in accordance with the Danish Financial Statements Act.We have audited the Consolidated Financial Statements and the Parent Company Financial Statements of INPS A/S for the financial year 1 January - 31 December 2025, 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 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. 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.Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the group as a basis for forming an opinion on the Consolidated Financial Statements and the Parent Company Financial Statements. We are responsible for the direction, supervision and review of the audit work performed for purposes 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. Aarhus C 2026-03-10 PricewaterhouseCoopersStatsautoriseret Revisionspartnerselskab 33771231 Henrik Kragh Jeppe Smed Sørensen State Authorised Public Accountant State Authorised Public Accountant mne26783 mne40041 INPS A/S Ellegårdvej 7 Sønderborg 34733228 Sønderborg Jens Chr. Skous Vej 1 Aarhus C Seen over a 5-year period, the development of the Group is described by the following financial highlights:Cash flows from: 102317000 137427000 101703000 44815000 79787000 54520000 1283000 -923000 21724000 35759000 67078000 88225000 160874000 183832000 169135000 863000 1741000 5237000 4767000 515000 119392000 114405000 105245000 65691000 27331000 44265000 -5237000 -10423000 36204000 -30000000 -58000000 -30949000 30454000 -41092000 49520000 82 87 119 138 102 0.462 0.234 0.279 0.434 0.322 0.786 0.600 0.742 0.622 0.622 0.495 0.331 0.306 0.611 1.444 Key activitiesThe purpose of the Company is to be the holding company of the INPS Group. The purpose of the Group is to develop and sell innovative last-mile technology, in particular parcel locker systems and related software-based solutions, to logistics providers globally. The Group focuses on delivering parcel locker network technology and related software solutions, rather than operating distribution networks itself.Development in the yearThe income statement of the Group for 2025 shows a profit of TDKK 70,347, and at 31 December 2025 the balance sheet of the Group shows an equity of TDKK 147,089.The financial result for 2025 reflects a strong operational performance. Despite the impact of significant one-off costs, the year met management’s expectations and resulted in growth in both revenue and profit compared to 2024.Macroeconomic conditions improved during 2025 compared to the previous year. While inflationary pressures and interest rates remained elevated during parts of the year, the overall economic environment showed signs of stabilisation. However, customer decision-making among logistics providers on capex investments continued to be characterised by a degree of caution, and investment decisions were often subject to extended evaluation processes.Demand for parcel locker systems continued to be supported by the ongoing growth in e-commerce and an increased focus on sustainable and efficient first and last-mile delivery solutions. Despite the cautious market environment, the Group experienced continued traction in both existing and new markets, with a number of customers progressing from pilot projects into roll-out phases during the year.During 2025 the Company paid dividends of MDKK 60 to its shareholders.The past year and follow-up on development expectations from last yearThe result for 2025 met expectations, which at the beginning of the year was expected to be a profit before tax between MDKK 80 to 100, despite the occurrence of significant one-off costs. The Group achieved growth in both revenue and profit compared to 2024, confirming the positive development anticipated at the beginning of the year.In line with expectations, the Group continued to strengthen its market position through the successful execution of ongoing projects and the expansion of customer relationships in both existing and new markets. The performance in 2025 demonstrated the resilience of the Group’s business model and its ability to deliver profitable growth in an environment still characterised by global uncertainty.Targets and expectations for the year aheadThe Group expects continued growth in 2026, supported by favourable market conditions and an enhanced product programme. While macroeconomic uncertainties remain, demand for parcel locker systems is expected to be supported by continued growth in e-commerce and an increasing emphasis on sustainable last-mile solutions.The expected profit before tax for 2026 is in the interval of MDKK 140 to 170.Research and developmentIn 2025 no research and development costs have been capitalized.External environmentThe Group works towards reducing its environmental footprint through an ongoing optimization of the energy and resources used for the daily operation and in the products.Intellectual capital resourcesTo offer innovative solutions, the Group is dependent on both human and technological resources. Thus, the ability to recruit and retain highly qualified employees remains a key priority.Branches abroadSwipBox Polska sp. z o.o. is a 100% owned subsidiary based in Warsaw, Poland. Sales and customer service for Polish customers is handled through this company.SwipBox Pakistan Ltd is a 99.8% owned subsidiary based in Islamabad, Pakistan. Software development and parts of IT for the Group are handled through this company. SwipBox Pty Ltd is a 100% owned subsidiary based in Brisbane, Australia. Sales and customer service for Australian customers is handled through this company.Uncertainty relating to recognition and measurementThere has been no uncertainty regarding recognition and measurement in the Annual Report.Unusual eventsThe financial position 31 December 2025 of the Company and the results of the activities of the Company for the financial year for 2025 have not been affected by any unusual events other than already mentioned above.Subsequent eventsNo events materially affecting the assessment of the Annual Report have occurred after the balance sheet date. 147089000 119204000 -98000 -226000 54094000 58478000 0 0 6430000 7367000 0 0 86565000 53359000 -98000 -226000 0 0 70055000 43588000 2085000 2121000 30000 12000 379000 323000 440000 1294000 88271000 55157000 69547000 42080000 17924000 12782000 -800000 -295000 70347000 42375000 70347000 42375000 2273000 4138000 0 0 5163000 6012000 0 0 7436000 10150000 0 0 3290000 6690000 0 0 3290000 6690000 0 0 0 0 139177000 149295000 0 0 139177000 149295000 10726000 16840000 139177000 149295000 17584000 14408000 0 0 0 824000 0 0 216000 5650000 0 0 14944000 8957000 0 0 32744000 29839000 0 0 18668000 41131000 0 0 0 0 934000 887000 14538000 37025000 0 0 3110000 5869000 717000 24000 1549000 1030000 1525000 1890000 0 0 14572000 8163000 0 489000 0 0 37865000 85544000 17748000 10964000 105920000 95892000 2037000 403000 176529000 211275000 19785000 11367000 187255000 228115000 158962000 160662000 17690000 17690000 17690000 17690000 0 0 20178000 30296000 -404000 -231000 0 0 129803000 119456000 109221000 88929000 147089000 136915000 147089000 136915000 9188000 5240000 0 0 9188000 5240000 0 0 339000 42722000 0 0 8838000 10439000 32000 0 0 0 11804000 23678000 0 0 4000 0 21801000 32799000 33000 69000 30978000 85960000 11873000 23747000 30978000 85960000 11873000 23747000 187255000 228115000 158962000 160662000 17690000 -231000 119456000 136915000 0 0 60000000 60000000 0 -173000 0 -173000 0 0 70347000 70347000 17690000 -404000 129803000 147089000 17690000 30296000 88929000 136915000 0 0 60000000 60000000 0 -173000 0 -173000 0 -9945000 80292000 70347000 17690000 20178000 109221000 147089000 70347000 42375000 23022000 18398000 -8500000 19734000 84869000 80507000 2085000 2121000 379000 323000 86575000 82305000 15684000 11909000 70891000 70396000 863000 1741000 -863000 -1741000 60000000 25000000 -60000000 -25000000 10028000 43655000 95892000 52237000 105920000 95892000 Cash and cash equivalents are specified as follows:Other adjustments37447 105920000 95892000 105920000 95892000 49144000 53967000 0 0 3076000 2852000 0 0 960000 863000 0 0 914000 796000 0 0 54094000 58478000 0 0 4777000 4440000 0 0 82 87 0 0 Salaries to the executive board has not been disclosed separately and is included in the salaries for the board of directors in accordance with section 98 B(3) of the Danish Financial Statements Act. 0 0 23000 3000 2085000 2121000 7000 9000 2085000 2121000 30000 12000 0 0 393000 1210000 379000 323000 47000 84000 379000 323000 440000 1294000 15229000 9723000 -107000 -303000 2695000 2395000 -693000 8000 0 664000 0 0 17924000 12782000 -800000 -295000 60000000 25000000 -9945000 -6412000 20292000 23787000 21887000 6012000 0 849000 21887000 5163000 17749000 0 1865000 0 19614000 0 2273000 5163000 Completed development projects consists of developed software related to the SwipBox concept which includes Infinity and Classic parcel lockers systems and related software-based solutions to logistics providers.Development projects in progress consist of the development of a digital label solution that supports circular packaging. It’s expected that the development of the solution will be finalized over the next 5 years, and when completed, it will positively impact Swipbox’s activities. 26234000 -212000 863000 1780000 25105000 19544000 -77000 3740000 1392000 21815000 3290000 118999000 118999000 118999000 118999000 30296000 36560000 -173000 148000 70055000 43588000 80000000 50000000 20178000 30296000 139177000 149295000 Investments in subsidiaries are specified as follows:DKK 500kDKK 2.300kRS 500kAUD 1PLN 65kDKK 71k^) Subsidiary of SwipBox International A/S^^) Subsidiary of SwipBox Development ApS SwipBox International A/S Denmark 1.00 SwipBox Development ApS^ Denmark 1.00 SwipBox Pakistan Pvt. Ltd. ^^ Pakistan 0.998 SwipBox Pty. Ltd.^ Australia 1.00 SwipBox Polska sp. z o.o.^ Poland 1.00 PERO Solutions ApS^ Denmark 1.00 Deferred tax asset at 1 January5,8698,2552432Amounts recognised in the income statement for the year-2,759-2,386693-8Deferred tax asset at 31 December3,1105,86971724The recognised tax asset comprises tax loss carry-forwards and tax depreciation based assets expected to be utilised within the next one to three years. In connection with the assessment of the utilisation of the tax asset, special emphasis has been placed on the Groups expected profit before tax. TDKK398,7757,290,74717,690 A-shares 399000 B-shares 17291000 The company has issued warrants of total 518.701. Each warrant entitles the warrant holder to subscribe for A-class shares in the company of a nominal value of DKK 1 without preemption right for the shareholders of the company. The warrant agreement expires 1st January 2030 and the exercise price is determined in the warrant agreement. Other provisions9,1885,240009,1885,24000The provisions are expected to mature as follows:Provisions falling due after 5 years3,0552,247003,0552,24700The Company provides warranties on some of its products and is therefore obliged to repair or replace goods which are not satisfactory. Based on previous experience in respect of the level of repairs and returns, other provisions of TDKK 9,188 (2024: TDKK 5,240) have been recognised for expected warranty claims. 2085000 2121000 379000 323000 6430000 7367000 17924000 12782000 23022000 18398000 -2905000 7477000 45439000 -38076000 3948000 -1923000 54982000 -52256000 -8500000 19734000 Rental and lease obligationsLease obligations under operating leases. Total future lease payments:Within 1 year1,1841,03500Between 1 and 5 years90388001,2741,42300Other contingent liabilitiesThe 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 0. 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 Group’s liability.The parent company is guarantor with primary liability in respect to all balances with the subsidiary SwipBox International A/S. TransactionsThe Company has chosen only to disclose transactions which have not been made on an arm's length basis in accordance with section 98(c)(6) of the Danish Financial Statements Act. No events materially affecting the assessment of the Annual Report have occurred after the balance sheet date. The Annual Report of INPS A/S for 2025 has been prepared in accordance with the provisions of the Danish Financial Statements Act applying to medium-sized 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 2025 are presented in TDKK. Recognition and measurementRevenues 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. Basis of consolidationThe Consolidated Financial Statements comprise the Parent Company, INPS 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. Translation policiesDanish kroner is used as the presentation currency. All other currencies are regarded as foreign currencies.Transactions in foreign currencies are translated at the exchange rates at the dates of transaction. Exchange differences arising due to differences between the transaction date rates and the rates at the dates of payment are recognised in financial income and expenses in the income statement. Where foreign exchange transactions are considered hedging of future cash flows, the value adjustments are recognised directly in equity.Receivables, payables and other monetary items in foreign currencies that have not been settled at the balance sheet date are translated at the exchange rates at the balance sheet date. Any differences between the exchange rates at the balance sheet date and the transaction date rates are recognised in financial income and expenses in the income statement; however, see the section on hedge accounting.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.Income statements of enterprises that are integrated entities are translated at transaction date rates or approximated average exchange rates; however, items derived from non-monetary balance sheet items are translated at the transaction date rates of the underlying assets or liabilities. Monetary balance sheet items are translated at the exchange rates at the balance sheet date, whereas non-monetary items are translated at transaction date rates. Exchange adjustments arising on the translation are recognised in financial income and expenses in the income statement. RevenueRevenue 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.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 consumablesExpenses for raw materials and consumables comprise the raw materials and consumables consumed to achieve the consolidated revenue for the year. Other external expensesOther external expenses comprise indirect production costs and expenses for premises, sales as well as office expenses, etc. Gross profitWith reference to section 32 of the Danish Financial Statements Act, gross profit/loss is calculated as a summary of revenue, other operating income, expenses for raw materials and consumables and other external expenses. Staff costs include wages and salaries including compensated absence and pensions as well as other social security contributions etc. made to the entity's employees. Amortisation, depreciation and impairment lossesAmortisation, depreciation and impairment losses comprise amortisation, depreciation and impairment of intangible assets and property, plant and equipment. Other operating income and expensesOther 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. Income from investments in subsidiariesThe item “Income from investments in subsidiaries” in the income statement includes the proportionate share of the profit for the year. Financial income and expenses comprise interest, financial expenses in respect of finance leases, realised and unrealised exchange adjustments, price adjustment of securities, amortisation of mortgage loans as well as extra payments and repayment under the on-account taxation scheme. Tax on profit/loss for the yearTax 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 the danish subsidiaries. The tax effect of the joint taxation with the subsidiaries is allocated to enterprises showing profits or losses in proportion to their taxable incomes (full allocation with credit for tax losses). Intangible fixed assetsDevelopment projectsCosts 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 8-10 year. 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:Other fixtures and fittings, tools and equipment3-8 years The fixed assets’ residual values are determined at nil.Depreciation period and residual value are reassessed annually. Impairment of fixed assetsThe 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 subsidiariesInvestments 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 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 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. InventoriesInventories 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. 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. PrepaymentsPrepayments comprise prepaid expenses concerning rent, insurance premiums, subscriptions and interest. ProvisionsProvisions 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 1-10 years. Provisions are measured and recognised based on experience with guarantee work. Deferred tax assets and liabilitiesDeferred tax is recognised in respect of all temporary differences between the carrying amount and the tax base of assets and liabilities. However, deferred tax is not recognised in respect of temporary differences concerning goodwill not deductible for tax purposes and other items - apart from business acquisitions - where temporary differences have arisen at the time of acquisition without affecting the profit for the year or the taxable income.Deferred tax is measured on the basis of the tax rules and tax rates that will be effective under the legislation at the balance sheet date when the deferred tax is expected to crystallise as current tax. In cases where the computation of the tax base may be made according to alternative tax rules, deferred tax is measured on the basis of the intended use of the asset and settlement of the liability, respectively.Deferred tax assets, including the tax base of tax loss carry-forwards, are measured at the value at which the asset is expected to be realised, either by elimination in tax on future earnings or by set-off against deferred tax liabilities.Deferred tax assets and liabilities are offset within the same legal tax entity. Current tax receivables and liabilitiesCurrent 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. With reference to section 86(4) of the Danish Financial Statements Act, the Parent Company has not prepared a cash flow statement for the Company itself but has only prepared a cash flow statement for the Group.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 activitiesCash 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 activitiesCash 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 activitiesCash 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 equivalentsThe cash flow statement cannot be immediately derived from the published financial records. Cash and cash equivalents comprise ”Cash at bank and in hand”. Financial HighlightsExplanation of financial ratiosReturn on assetsProfit/loss of primary operations x 100 / Total assets at year endSolvency ratioEquity at year end x 100 / Total assets at year endReturn on equityNet profit for the year x 100 / Average equity