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Skous Vej 1 8000 Aarhus C STATEMENT BY BOARD OF DIRECTORS AND BOARD OF EXECUTIVES The board of directors and board of executives have today presented the consolidated and parent annual report of Midt Factoring A/S for the financial year 1 January to 31 December 2025. The annual report is presented in accordance with the Danish Financial Statements Act. In our opinion, the consolidated and parent financial statements give a true and fair view of the company’s assets, liabilities and financial position as per 31 December 2025. The financial report also reflects a fair view on the activities and financial result of the financial year 1 January to 31 December 2025. The management’s review contains in our opinon a true description of the items and activities covered in the review. The board of directors and board of executives recommend the annual report for adoption at the Annual General Meeting. Ikast Søren Steen Lund Larsen Thierry Jean André Lagnon Vincent-Pierre Casaubon Chairman Xavier Raymond Robert Flogny Jérôme Le Segretain du Patis INDEPENDENT AUDITOR’S REPORT To the shareholder of Midt Factoring 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 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 Midt Factoring 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 (“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. Statement on the management commentary 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's responsibilities for the consolidated financial statements and the parent financial statements 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. Auditor’s Responsibilities for the Audit of the Financial Statements 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 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab 33771231 Mads Johansson State Authorised Public Accountant MANAGEMENT’S REVIEW Uncertainty in recognition and measurement As part of the application of the company's accounting policies, a number of assessments and estimates has been made on how the future may impact the value of company's assets and liabilities. The estimates are based on appropriate, but unpredictable assumptions, and unexpected events may occur. The assessment of the need for write-down of loans and receivables is based on objective indications of impairment, on the future ability to repay, and on assessments of the value of collaterals provided. It is management's assessment that all known factors at the year-end date have been taken into account for an assessment of the need for write-down at the end of the year, however, some factors are based on an estimate, and any losses ascertained subsequently may differ from the estimate made. Intangible and tangible fixed assets are assessed to have a future value in use at least equivalent to the booked amounts. Development in the company's activities The company’s operations during the financial year 2025, covering the period 1 January – 31 December is characterized by a satisfactory activity both among existing and new clients. The activity in 2025 in Midt Factoring A/S has been at a high level and the demand for financing has been strong throughout the year. Objective The objective of the company is administration, financing and discounting of invoices, with and without recourse, as well as financing and trade activity. The consolidated result of the year after tax amounts to DKK 32.409 thousands, which is considered to be at a satisfactory level. The result is in accordance with our expectations presented in connection with the presentation of the Annual Report 2024. The balance sheet totals DKK 2.433.248 thousands. The equity, including dividend related to the year 2025 of DKK 30.000 thousands, equals DKK 127.898 thousands. Significant events and expectations to the future The company offers primarily three types of products: - Recourse/non-recourse factoring with invoice management - Recourse/non-recourse factoring without invoice management - Invoice management without financing The company’s level of activity in terms of financial income is expected to be at the same level, compared to the level of 2025; a result before tax at a level in the range DKK 40,000 – DKK 50,000 thousands is expected. Events after the balance sheet date No events have occurred after the balance sheet date that may have a material influence on the assessment of the annual report. Risks The company's most significant risks are described below: Market risk The company's most significant operating risk is attached to the ability to be strongly positioned in the market for financing and administrative services, and to continue to be able to ensure competitive prices and a high service level. Credit risks The assets comprise primarily short-term accounts with customers. The company's credit risks concern in all material respects accounts receivable where the credit risk corresponds to the recognized values. Clients, debtors and business partners are credit rated before a business relationship is opened, thus, the credit risk attached is as a normal business relationship. Accounts with clients are hedged by security in debtor portfolios with good spread of risk, of which a large part is covered by credit insurance. The accounts with clients are therefore subject to moderate risk, in the opinion of the management. Foreign exchange and interest risks It is the company's policy to hedge foreign exchange and interest risks exposed to the company. The value of the company's assets and liabilities is assessed to be sensitive only to a limited extent to changes in the foreign exchange rates and interest rates. Knowledge resources The company's business foundation includes financing and management of account receivables as well as related matters. This makes especially high demands on knowledge resources and business processes. In order to be able to provide these solutions continuously, it is decisive that the company can recruit and retain employees, both with a high educational level and employees with technical experience. Development activities The company continues the development of relevant products attached to the businesses' trade, nationally and globally, with special focus on financing, invoice management, risk management and collection procedures. Use of highly developed technology should all the time support the optimization of resource consumption in the companies that choose to outsource, in part or in full, the management of their debtor bookkeeping and in relation to compliance. Investment in development of the ERP and system has continued in 2025 and supporting system that uses AI/ML has also been implemented. Ownership The company is 100% owned by BPCE Factor, France. Financial income Financial income Financial income Financial income Financial income 153239000 167459000 165736000 119922000 91525000 Financial expenses Financial expenses Financial expenses Financial expenses Financial expenses -46255000 -58994000 -53735000 -10059000 -1370000 106984000 108465000 112001000 109863000 90155000 41623000 45709000 51018000 46058000 32083000 32409000 35622000 39735000 35865000 24967000 2433428000 1805324000 1751708000 1525464000 1539215000 129000 0 56000 384000 0 127898000 130490000 134867000 130132000 119267000 0.053 0.072 0.077 0.085 0.077 0.251 0.268 0.30 0.288 0.214 Index Financial income (2021=100) Index Financial income (2021=100) Index Financial income (2021=100) Index Financial income (2021=100) Index Financial income (2021=100) 1.674 1.83 1.811 1.31 1.00 Key figures Key figure Model of calculation Key figure states Equity ratio (%) = Equity Equity percentage compared Balance sheet total to the total balance Return on equity (%) = Net profit/loss for the year x 100 The company's rate of return Average equity on capital invested in the company by the owners. The consolidated values include the subsidiary MF Ejendom A/S, which was established in February 2010. The company's main activities The company develops and provides services aimed at facilitating trade between companies, both nationally and internationally. The services reduce the administrative, risk-related as well as financial tasks for the client companies. true The main estimates of management are mentioned in a later paragraph in accounting policies "Estimation uncertainty - management's assessment". RECOGNITION AND MEASUREMENT Adjustment of accounts As the company carries out financial activities, an adjustment of the accounts has been made with reference to § 11 of the Danish Financial Statements Act in order to give a true picture of the company's production and activities and accordingly the income statement and balance sheet have been adjusted to this fact. Recognition and measurement in general Income is recognized in the income statement as it is earned, and this includes the recognition of value adjustment of financial assets and liabilities. Costs, including amortizations and write-downs are also recognized in the income statement. Assets are recognized in the balance sheet when it appears probable that future economic advantages will accrue to the company and the value of the asset can be measured reliably. Liabilities are recognized in the balance sheet when it appears probable that future economic advantages will flow from the company and the value of the asset can be measured reliably. On initial recognition, assets and liabilities are measured at cost or amortised cost. Subsequently, assets and liabilities are measured as described under each item below. Some financial assets and liabilities are measured at amortised cost whereby a constant, effective interest rate is recognized during the term. Amortised cost is calculated as the original cost with the deduction of any repayments and additions/deductions of the accumulated amortization of the difference between cost and nominal amount. When carrying out recognition and measurement, account is taken of events that occur between the balance sheet date and the date of presenting the annual report and which provide or disprove circumstances that existed on the balance sheet date. The carrying amount of intangible and tangible fixed assets is reviewed annually in order to determine whether there is an indication of impairment over and above what can be expressed as normal amortization. If this is the case, an impairment test is carried out and, if subsequently necessary, there is a write-down to the lower recoverable value. ACCOUNTING POLICIES The annual report of Midt Factoring A/S for 2025 has been presented in accordance with the provisions of the Danish Financial Statements Act for enterprises in reporting class C. The annual report is presented in DKK thousands. According to the Danish Financial Statements Act, Midt Factoring A/S has decided to present an Annual report on consolidated group level and only in English. CONSOLIDATED FINANCIAL STATEMENTS The consolidated financial statements comprise (parent company) and the companies (affiliated companies) which are controlled by the parent company, cf. the group outline, page 7. The parent company is considered to have control when it directly or indirectly holds more than 50% of the voting rights, or when it, in some other way, may or actually does exercise dominant influence. Consolidation principles The consolidated financial statements are drawn up on the basis of financial statements of the (parent company) and its subsidiary companies. The completion of the consolidated financial statements is done by consolidating items of similar nature. At the consolidation, intra-group income and expenses, intra-group balances and dividends as well as gains and losses on transactions between the consolidated companies are eliminated. The financial statements used for the consolidation are prepared in accordance with the group’s accounting policies. In the consolidated financial accounts, the accounting items of the subsidiary companies are included 100%. Capital investments in the subsidiary companies are offset against the proportionate part of the net assets of the subsidiary companies at the time of acquisition calculated at fair value. INCOME STATEMENT Interest income and expenses Interest income and expenses arising from interest bearing financial instruments carried at amortised cost are recognized in the income statement using the effective interest method on the basis of the cost of the financial instrument. Interest includes amortization of fees that are an integral part of the effective yield on a financial instrument, including origination fees, and amortization of any other differences between cost and redemption price. Interest income and expenses include interest on financial instruments carried at fair value. Revenue recognition of interest on loans with individual write-down for impairment is based on the written down value. Income from and expenses for services provided over a period of time, for example guarantee commission and fees for invoice administration, are accrued over the period. Transaction fees, for example domestic and foreign transfers, are recognized as income/cost on completion of the transaction. Staff and external expenses Salaries, wages and other remuneration which are expected to be paid for work carried out during the year, are recognized as Staff and administrative expenses. The expense includes salaries and wages as well as holiday allowances, anniversary bonuses, pensions etc. Write-down of loans Includes losses on and write-downs of loans, which are not re-insured. Tax Calculated current and deferred tax on the profit for the year and subsequent adjustments of tax charges for previous years are recognized in the income statement. Income tax for the year is recognized in the income statement on the basis of the tax laws applying in Denmark. Tax attributable to equity transactions is recognized directly in equity. Midt Factoring A/S is taxed jointly with the subsidiary of Midt Factoring A/S, MF Ejendom A/S. BALANCE SHEET Property, plant and equipment and Intangible assets Cost includes the acquisition cost and costs directly connected with the acquisition up to the date on which the asset is ready to be used. Cost also includes estimated costs for demolishing and disposing of the asset and re-establishment to the extent that these costs are recognized as an obligation. The cost of an asset is divided into separate components that are amortised individually if their useful life differs. Subsequent costs of replacing components are recognized as tangible fixed assets when it appears probable that they will lead to future economic advantages. The carrying amount of the replaced components is recognized in the income statement. All other costs for repairs and maintenance are recognized in the income statement as they are paid. The basis of amortization is cost with the deduction of the expected residual value after the end of the asset's useful life. Residual value is re-evaluated annually. Straight-line amortization is carried out on the basis of the following evaluation of the asset’s expected useful life and subsequent residual value: Useful life Residual value Intangible assets 3-5 years 0 % of cost Operating equipment 3-5 years 0 % of cost Leasehold improvements 3-5 years 0 % of cost Buildings 20 years 65 % of cost Estimated useful lives and residual values are reassessed annually. Profits or losses on sales of tangible fixed assets are calculated as the difference between the net proceeds when sold and the carrying amount on the date of the sale. Profits or losses are recognized in the income statement under other operating income and other operating expenses. Equity investments and securities Bonds, shares and other equity investments are measured at fair value. Fair value is established in accordance with the following order of priorities: • Market-based sales value if a well-functioning market can be found • Approximate sales value calculated as the relevant capital in use relevant to the security if a relevant capital in use can be calculated with the help of generally recognized valuation models and techniques • Cost The above means • that listed shares and bonds are measured at market price, • that unlisted shares and equity investments are measured at approximate sales value or cost Equity investments in subsidiaries Equity investments in subsidiaries are recognized and measured using the equity method, implying that the capital share measured at the pro-rata share of the subsidiary’s booked value, plus or minus amortized respectively positive or negative goodwill and adding/subtracting any unrealized gains/losses from intercompany transactions. In the profit and loss statement, the pro rata share of the subsidiary’s net result after elimination of any unrealized intercompany profits or losses is included, plus or minus the amortization of goodwill. The value of investments in subsidiaries is transferred to reserves using the equity method included in equity Investment in subsidiary is written down to recoverable amount if this is lower than carrying value. Loans and trade receivable Loans and accounts receivable include invoice discounting. Loans are measured at fair value at first recognition with addition of transaction costs and with deduction of fees received etc. which usually corresponds to nominal value. Subsequently loans are measured at amortised cost, in accordance with the effective interest method. All loans are individually tested continuously for the need for write-down on the basis of fixed objective indicators of impairment. If unutilized granted credits are assessed to present a credit risk, they will be included in the above test for need for write-down. Write-down of unutilized granted credits are recognized as provision for liabilities. Write-down and carry-back of the year of previously made write-down are recognized in the income statement. Prepayments and accrued income Prepayments recognized under assets include expenses paid regarding the following accounting year. Prepayments are measured at cost price. Financial liabilities Financial debts are recognized by debt assumption at the received proceeds, the principal amount with the deduction of transation costs paid. During subsequent periods, financial liabilities are recognized at amortised cost corresponding to the capitalized value with the use of the effective interest method. Loan costs are therefore recognized in the income statement over the term of the loan. Payments received under prepayments are recognized under liabilities, which is income regarding the subsequent years. Provisions Provisions include expected expenses for deferred tax. Provisions are recognized when it appears probable on the balance sheet date that the liability will mean drawing on the company's economic resources and that the amount on the liability can be calculated reliably. Deferred tax Deferred tax is calculated in accordance with the balance sheet liability method on all temporary differences between the carrying amount and the tax base value of assets and liabilities. Deferred tax is recognized in the balance sheet under Deferred tax assets and Deferred tax liabilities on the basis of the current tax rates. However, deferred tax of temporary differences concerning non-tax deductible goodwill and other items, where temporary differences have occurred at the date of acquisition without having effect on the earnings or taxable income is not recognized. For those cases in which tax value declaration is applicable according to specific taxation rulings, the deferred tax is computed based on planned management application of the asset or, where applicable, liquidation of liabilities. Tax assets relating to unutilized losses and tax deduction are contained in deferred tax only, if it is likely that such losses and tax deduction can be utilized. Deferred tax is measured on the basis of the tax rules and the tax rates that will be applicable under the legislation on the balance sheet date when the deferred tax is expected to be paid as current tax. Changes in deferred tax as a consequence of adjusted tax rates are recognized in the income statement. Dividends Dividends are recognized as a liability in the accounts on the date when the general meeting has adopted this, and the company has thereby taken on an obligation. The Board of Executives’ proposal for a dividend for the current accounting year is therefore part of equity and information on this is provided in the note on equity. Translating foreign currency Receivables, debt and other monetary items in foreign currency that have not been settled on the balance sheet date, are translated at the exchange rate current on the balance sheet date. The difference between the exchange rate on the balance sheet date and the exchange rate on the date of the origin of the receivable or the debt is recognized in the income statement. Derivative financial instruments Derivative financial instruments are initially recognized in the balance sheet at cost and are subsequently measured at fair value. Positive and negative fair values from derivative financial instruments are recognized in other receivables, other debt respectively. Changes in the fair value of derivative financial instruments classified as hedging instruments and meeting the criteria for hedging the fair value of a recognized asset or liability are recognized in the income statement together with changes in the value of the hedged asset or liability. For derivative financial instruments, which do not meet the criteria for treatment as hedging instruments, changes in fair value are recognized in the income statement as they arise. Estimation uncertainty - management's assessment As part of the company's application of the accounting policies, it has been assessed and estimated how the future may influence the value of the company's assets and liabilities. The estimation is based on appropriate, however unpredictable assumptions, and unexpected events may occur. The special risks are mentioned in Management's Review. Tangible assets are likewise assessed to have a replacement cost exceeding the carrying amount. Cash flow statement The cash flow statement shows the company's cash flow for the year distributed between operating activities, investment activities, and financing activities for the year, the change in liquidity for the year, and liquid assets at the beginning and end of the year. No separate cash flow statement has been prepared for the parent company, as this is included in the group cash flow statement. The cash flow from operating activities is calculated as the profit or loss for the year adjusted for non-cash operating items, changes in working capital, and corporation tax. Paid tax is presented as a separate item under operating activities. The cash flow from investment activities includes payments in connection with buying and selling fixed assets and cash flow in connection with buying and selling companies and activities. The cash flow from financing activity includes changes in the amount or composition of share capital and the costs connected with this, raising loans and repayments on loans that are not included in working capital, the payment of dividends, and buying and selling own shares. Cash at bank and cash equivalents comprise cash. Off-setting Outstanding amounts and debts are offset when the company has a legal right to offset the recognized amounts and at the same time intends to settle net or realize the asset and at the same time meet the obligation. 153637000 168014000 153239000 167459000 46241000 58962000 46255000 58994000 107396000 109052000 106984000 108465000 30421000 27749000 28288000 25698000 36171000 36307000 36235000 36372000 1198000 1281000 1450000 1533000 -612000 -847000 -612000 -847000 40218000 44562000 41623000 45709000 1038000 834000 0 0 41256000 45396000 41623000 45709000 8847000 9774000 9214000 10087000 32409000 35622000 32409000 35622000 1604000 2666000 1604000 2666000 1604000 2666000 1604000 2666000 0 0 18150000 18402000 393000 400000 393000 400000 393000 400000 18543000 18802000 9532000 8494000 0 0 543000 499000 543000 499000 10075000 8993000 543000 499000 12072000 12059000 20690000 21967000 2059496000 1492113000 2059496000 1492113000 8300000 9700000 0 0 0 2000 17000 30000 209000 1280000 0 967000 819000 785000 819000 785000 2068824000 1503880000 2060332000 1493895000 352352000 289371000 352406000 289462000 2421176000 1793251000 2412738000 1783357000 2433248000 1805310000 2433428000 1805324000 40000000 40000000 40000000 40000000 9033000 7995000 0 0 1253000 2081000 0 0 47612000 45413000 57898000 55490000 30000000 35000000 30000000 35000000 127898000 130489000 127898000 130490000 353000 572000 353000 572000 353000 572000 353000 572000 0 0 0 0 16560000 23542000 16560000 23542000 2231938000 1607649000 2231938000 1607649000 0 0 158000 0 55595000 41919000 55617000 41932000 904000 1139000 904000 1139000 2304997000 1674249000 2305177000 1674262000 2305350000 1674821000 2305530000 1674834000 2433248000 1805310000 2433428000 1805324000 41623000 45709000 1450000 1533000 Fair value adjustment of shares Fair value adjustment of shares -45000 -87000 70333000 72112000 8307000 11523000 105054000 107744000 Purchase of tangible and intangible fixed assets Purchase of tangible and intangible fixed assets -129000 -1371000 -129000 -1371000 0 648000 Changes in bank debt Changes in bank debt -6982000 18243000 35000000 40000000 -41982000 -22405000 62943000 83968000 289463000 205495000 352406000 289463000 40000000 55489000 0 35000000 130489000 0 35000000 35000000 2409000 30000000 32409000 40000000 57898000 0 30000000 127898000 40000000 45413000 7995000 2081000 35000000 130489000 0 35000000 35000000 828000 -828000 0 1371000 1038000 30000000 32409000 40000000 47612000 9033000 1253000 30000000 127898000 Group/consolidated 2025 2024 2025 2024 DKK '000 DKK '000 DKK '000 DKK '000 Note 1 – Financial income 5.812 7.347 Credit institutions 5.830 7.375 80.348 92.448 Loans and other receivables 80.348 92.448 59.838 60.268 Fees and commission income 59.838 60.268 7.178 7.281 Value adjustment - currency 7.178 7.281 45 87 Unrealized value adjustments on investments 45 87 416 583 Interest group enterprises - - 153.637 168.014 Total Financial income 153.239 167.459 Note 2 – Financial expenses -45.873 -58.586 Interest group enterprises -45.873 -58.586 -368 -376 Credit institutions -382 -408 -46.241 -58.962 Total Financial expenses -46.255 -58.994 Note 3 – Staff cost -31.860 -31.968 Wages and salaries -31.924 -32.033 -3.644 -3.568 Pension cost -3.644 -3.568 -667 -771 Other social security costs -667 -771 -36.171 -36.307 Total Staff costs -36.235 -36.372 Average number of full-time employees in 2025 was 57, which is equal compared to 2024. Salary costs for the management are included within Total staff costs. No payments have been made to the board. Information about salaries paid to the management is referring to “Årsregnskabslovens” §98b sec. 3 and is not supplied. Note 4 – Tax on profit/loss for the year Current tax -9.075 -9.678 -9.442 -9.991 Change in deferred tax 219 -139 219 -139 Adjustment relating to previous years 9 43 9 43 Total Tax -8.847 -9.774 -9.214 -10.087 30000000 35000000 30000000 35000000 1038000 834000 0 0 1371000 -212000 2409000 622000 32409000 35622000 32409000 35622000 Note 6 – Intangible assets and Property, plant, equipment GROUP Operating Development Property equipment costs (DKK '000) Cost beginning of year 25.151 15.820 18.197 Tranfers Additions 129 - Disposals - - Cost end of year 25.151 15.949 18.197 Amortisation and impairment losses beginning of year 6.749 15.420 15.531 Transfers Amortisation for the year 252 136 1.062 Reversal regarding disposals - Amortisation and impairment losses end of year 7.001 15.556 16.593 Carrying amount end of year 18.150 393 1.604 Investment in development costs is related to special designed IT software which is used to optimize operations in the company or ensure compliance to regulatory demands. Only external costs are capitalized. Note 6 – Intangible assets and Property, plant, equipment PARENT Operating Development Property Equipment costs (DKK '000) Cost beginning of year 15.820 18.197 Additions 129 - Disposals - - Cost end of year - 15.949 18.197 Amortisation and impairment losses beginning of year 15.420 15.531 Amortisation for the year 136 1.062 Reversal regarding disposals - Amortisation and impairment losses end of year - 15.556 16.593 Carrying amount end of year - 393 1.604 Note 7 – Financial assets investments GROUP Other investments (DKK '000)Cost beginning of year 300 Additions - Disposals - Cost end of year 300 Revaluation beginning of year 198 Share of profit/loss for the year 45 Other adjustments - Revaluations end of year 243 Carrying amount end of year 543 Note 7 – Financial assets investments PARENT Other Subsidiary Investments (DKK '000)Cost beginning of year 500 300 Additions - - Disposals (receivables) - - Cost end of year 500 300 Revaluation beginning of year 7.994 198 Share of profit/loss for the year 1.038 45 Other adjustments Revaluations end of year 9.032 243 Carrying amount end of year 9.532 543 Investments in group enterprises comprise: MF Ejendom A/S, Nygade 111, 7430 Ikast, is 100% owned by Midt Factoring A/S Note 8 - Prepayments Prepayments include periodic adjustments made for various cost types eg. insurance costs, licences (software), and leasing. Note 9 - Deferred tax GROUP 2025 2024 DKK '000 DKK '000 Deferred tax beginning of year Included in the Income statement 572 433 -219 139 Deferred tax end of year 353 572 Deferred tax is mainly related to development costs, with a booked value higher than the value in the fiscal balance. Note 10 - Deferred income Deferred income includes periodic adjustments made for factoring commission income, invoiced but not yet earned. Note 11 - Currency exposure The company utilizes standard forward contracts in order to secure its position against fluctuations in the different foreign currencies. Hedging/ Net Receive-FX position ables Payables contracts 2025 DKK '000 DKK '000 DKK '000 DKK '000 EUR (duration 0-3 months) 488.366 -447.997 -39.772 597 GBP (duration 0-3 months) 39.516 -35.164 -4.244 108 NOK (duration 0-3 months) 155.610 -150.492 -5.043 75 SEK (duration 0-3 months) 151.665 -143.316 -8.254 95 USD (duration 0-3 months) 316.864 -314.294 -1.969 601 Other (duration 0-3 months) 7.641 -123 -7.468 50 Total 1.159.662 -1.091.386 -66.750 1.526 As of 31 December 2025, the unrealized fair value adjustment of the Hedging transactions amounts to -196k DKK. In the Profit and Loss statement the amount is included in Value adjustments and in the balance sheet it is included in the Trade receivables. Receivables and payables disclosed above are based on the hedged position as of 31 December 2025. Consequently, incoming payments settled after the time of hedging will reduce both receivables and payables, without impacting the FX contracts or the net position. Note 12 Contingencies and other obligations Contingent assets and contingent liabilities The group/parent has entered into different business service contracts. The obligations have a total value of approximately 3,3 mill. DKK.(2024: 3,3 mill. DKK) The group/parent has entered into different IT service contracts. The obligations have a total value of approximately 1,1 mill. DKK.(2024: 0,3 mill. DKK) The group/parent has entered into operational leasing contracts of company cars. The obligations have a total value of approximately 1,4 mill. DKK. (2024: 0,9 mill. DKK) The parent company has entered into a lease contract for lease of the premises in Ikast. The lease contracts can be terminated with a notice of 6 months. The obligations have a total value of approximately 1,1 mill. DKK (2024: 1,1 mill. DKK) The Entity serves as the administration company in a Danish joint taxation arrangement. According to the joint taxation provisions of the Danish Corporation Tax Act, the Entity is therefore liable for income taxes etc. for the jointly taxed entities. Note 13 Related parties The related parties of Midt Factoring A/S include the following: Controlling interest The company is 100% owned by BPCE Factor, Subsidiary of BPCE Bank Paris. Midt Factoring A/S is 100% owner of MF Ejendom A/S. Transactions During the year, the Company had the following transactions with its ultimate Parent Company and its subsidiaries: Real estate rental: 2,2 mill. DKK (2024: 2,1 mill. DKK) Management fee: 1,1 mill. DKK (2024: 1,0 mill. DKK) Interest expenses: 45,8 mill. DKK (2024: 58,6 mill. DKK) Dividends: 35,0 mill. DKK (2024: 40,0 mill. DKK) Note 14 Consolidation Midt Factoring A/S and subsidiary are included in the consolidated financial statement of BPCE Factor no. RCS Paris 379 160 070 Note 15 Subsequent events No events materially affecting the assessment of the Annual Report have occurred after the balance sheet date. Annual report Auditor's report on audited financial statements ParsePort XBRL Converter 2025-01-01 2025-12-31 2024-01-01 2024-12-31 2026-03-12 Reporting class C, medium-size enterprise 1978-03-16 +4596601100 www.midtfactoring.dk 57 57 2026-03-12 Strandvejen 44 2900 Hellerup Opinion Basis for Opinion 2026-03-12 mne40760 33771231