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København V København V Beierholm Aarhus N Tangen 9 8200 true true I have on this day presented the annual report for the financial year 01.01.25 - 31.12.25 for EQUILIBRIA ApS. The annual report is presented in accordance with the Danish Finan­cial Sta­te­ments Act. In my opinion, the consolidated financial sta­te­ments and financial statements give a true and fair view of the group's and the parent's assets, lia­bilities and financial position as at 31.12.25 and of the results of the group’s and parent’s ac­ti­vities and of the group's cash flows for the financial year 01.01.25 - 31.12.25. I believe that the management's review includes a fair review of the matters dealt with in the management's review. The annual report is submitted for adoption by the general meeting. Brian Leander To the shareholder of EQUILIBRIA ApS In our opinion the con­so­li­da­ted fi­nan­cial sta­te­ments and fi­nan­cial sta­te­ments give a true and fair view of the group's and the com­pa­ny's finan­cial posi­tion at 31.12.25 and of the results of the group's and the com­pa­ny's ope­ra­tions and con­solidated cash flows for the finan­cial year 01.01.25 - 31.12.25 in ac­cor­dan­ce with the Danish Finan­cial Sta­te­ments Act. 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 con­so­li­da­ted fi­nan­cial sta­te­ments and fi­nan­cial sta­te­ments” section of our report. We are independent of the group and the company in accordance with the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Management is responsible for the pre­pa­ra­tion of con­so­li­da­ted fi­nan­cial sta­te­ments and 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 con­so­li­da­ted fi­nan­cial sta­te­ments and fi­nan­cial sta­te­ments that are free from material misstatement, whether due to fraud or error.In preparing the con­so­li­da­ted fi­nan­cial sta­te­ments and fi­nan­cial sta­te­ments, mana­ge­ment is responsible for assessing the group's and the com­pa­ny's ability to continue as a going concern, dis­closing, as applicable, mat­ters related to going con­cern and using the going concern basis of ac­counting in pre­paring the con­so­li­da­ted fi­nan­cial sta­te­ments and fi­nan­cial sta­te­ments unless mana­ge­ment either intends to liquidate the group and the company or to cease operations, or has no rea­listic alternative but to do so. Our objectives are to obtain reasonable as­surance about whether the con­so­li­da­ted fi­nan­cial sta­te­ments and 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 con­so­li­da­ted fi­nan­cial sta­te­ments and 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 con­so­li­da­ted fi­nan­cial sta­te­ments and 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 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 con­so­li­da­ted fi­nan­cial sta­te­ments and 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 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 con­so­li­da­ted fi­nan­cial sta­te­ments and 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 company to cease to continue as a going concern.• Evaluate the overall presentation, structure and contents of the con­so­li­da­ted fi­nan­cial sta­te­ments and fi­nan­cial sta­te­ments, including the disclosures, and whether the con­so­li­da­ted fi­nan­cial sta­te­ments and fi­nan­cial sta­te­ments repre­sent the underlying transactions and events in a manner thatgives 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 expressing an opinion on the consolidated financial statements and 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. Management is responsible for the mana­ge­ment’s review.Our opinion on the con­so­li­da­ted fi­nan­cial sta­te­ments and fi­nan­cial sta­te­ments does not cover the management’s review, and we do not express any form of assurance con­clu­sion thereon. In connection with our audit of the con­so­li­da­ted fi­nan­cial sta­te­ments and fi­nan­cial sta­te­ments, it is our responsibility is to read mana­gement’s review and, in doing so, con­sider whether management’s review is mate­rially in­con­sistent with the con­so­li­da­ted fi­nan­cial sta­te­ments or pa­rent com­pa­ny 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, we conclude that the management’s review is in accordance with the con­so­li­da­ted fi­nan­cial sta­te­ments and fi­nan­cial sta­te­ments and has been prepared in accordance with the requirements of the Danish Financial Statements Act. We did not identify any material misstatement of the management’s review. Aarhus Kristian Tudborg Nielsen State Authorised Public Accountant mne36189 -8305000 -6604000 -3149000 -8305000 -16816000 -9361000 45701000 -157735000 358656000 25113000 -134679000 263195000 1211874000 1228400000 1433017000 1139780000 1164899000 1299578000 39467000 125775000 167275000 -25288000 -38668000 -66204000 -50232000 0 -14664000 6 2 -11 23 94 94 95 95 91 Ratios definitionsReturn on equity:Profit/loss for the year x 100Average equitySolvency ratio:Equity, end of year x 100Total assets Primary activitiesThe group's activities is a long-term investor in listed and unlisted securities. It is part of the single-family office IPQ Capital, The key focus areas at IPQ is : - Global macro investing with the majority of our capital - Early growth investments in fintech companies - Early growth investments in healthtech companies (via Crista Galli Ventures Ltd.) For further information, please refer to www.ipqcapital.com. Development in activities and financial affairsThe income statement for the period 01.01.25 - 31.12.25 shows a profit/loss of DKK -44,585k against DKK 76,265k for the period 01.01.24 - 31.12.24. The balance sheet shows equity of DKK 1,148,958k. Profit/loss for the year in relation to expected developments This year's results are below the stated expectations for the year. The expectation for the 2025 result was a return on equity before tax of 8–12%, which has not been achieved.The main positive contributions to returns came from Korean and US tech stocks. The main detractors were European healthcare equities, a falling USD and JPY.While management considers this year's result unsatisfactory, the performance of our investments should be judged over the long term. And the long-term returns are very attractive. OutlookWe expect the 2026 result to be significantly better than 2025, with an 8–12% (pre-tax) net return on equity, despite anticipated higher market volatility and the potential impact on the global economy from the Iran War's effects on energy supply chains.Approximately 70% of the World Index's expected earnings growth over the next 12 months and three years is linked to AI capex and earnings from AI deployment. This illustrates where the general weaknesses and opportunities in the market will likely arise in the coming years.Some equity markets are currently at high valuation levels. While comparing index valuations over time requires caution, and valuations say little about the next 12 months, this could weigh on long-term equity returns. Conversely, some Emerging Market assets are valued much lower but face different policy and growth trade-offs. Current progress in technology and science provides strong tailwinds, making us long-term positive on equities and growth. Concurrently, we see strong tailwinds for the development and deployment of AI in healthtech and fintech solutions.PhilanthropyOur family does philanthropy via IPQ Capital with a mission to help level the playing field, focusing on education, healthcare and art. Financial risksThrough its investments, the group is exposed to financial risks, primarily equity price risk, interest rate risk and currency risk. The group also uses financial instruments to gain exposure to, or hedge risk from, different asset classes. Taking on financial risk through investments is integral to the group's business model, and limits and monitoring form part of the group's portfolio and risk models. Subsequent eventsNo events have occurred between the balance sheet date and the date of this report that would affect the evaluation of this annual report. -5530000 -3182000 -2781000 -1684000 505000 500000 255000 250000 0 0 -13988000 67813000 -15241000 680000 -15241000 680000 -12705000 8547000 -14232000 6006000 75214000 115910000 5843000 8505000 89936000 26836000 4231000 4308000 -48703000 94619000 -44885000 76762000 -4118000 18354000 -300000 497000 -44585000 76265000 -44585000 76265000 0 0 976703000 1007326000 93415000 99743000 93415000 99743000 128798000 137786000 106504000 117418000 222213000 237529000 1176622000 1224487000 222213000 237529000 1176622000 1224487000 24550000 19239000 4250000 3949000 107000 110000 107000 6282000 24657000 19349000 4357000 10231000 801960000 906780000 62191000 59137000 801960000 906780000 62191000 59137000 174972000 114273000 542000 5471000 1001589000 1040402000 67090000 74839000 1223802000 1277931000 1243712000 1299326000 80000 80000 80000 80000 0 0 866365000 909962000 1131878000 1205963000 265513000 296001000 17000000 0 17000000 0 1148958000 1206043000 1148958000 1206043000 70645000 68214000 70645000 68214000 70645000 68214000 70645000 68214000 3000 0 0 0 307000 323000 162000 169000 0 0 21827000 22808000 248000 242000 248000 242000 251000 1348000 0 1348000 3390000 1761000 1872000 502000 4199000 3674000 24109000 25069000 74844000 71888000 94754000 93283000 1223802000 1277931000 1243712000 1299326000 Figures in DKK '000Contributed capitalReserve for net revaluation according to the equity methodRetained earningsProposed dividend for the financial yearTotal equityGroup:Statement of changes in equity for 01.01.25 - 31.12.25Balance as at 01.01.258001,205,96301,206,043Extraordinary dividend paid00-12,5000-12,500Net profit/loss for the year00-61,58517,000-44,585Balance as at 31.12.258001,131,87817,0001,148,958Parent:Statement of changes in equity for 01.01.25 - 31.12.25Balance as at 01.01.2580909,962296,00101,206,043Distributed dividend from group enterprises0-16,63516,63500Extraordinary dividend paid00-12,5000-12,500Net profit/loss for the year0-26,962-34,62317,000-44,585Balance as at 31.12.2580866,365265,51317,0001,148,958 -12500000 -61585000 17000000 80000 0 1131878000 17000000 -16635000 16635000 -12500000 -26962000 -34623000 17000000 80000 866365000 265513000 17000000 38550000 -79947000 2000 91000 -16000 0 1635000 4661000 120798000 -4197000 116384000 -3127000 16446000 13830000 -47144000 -7046000 -2290000 -9326000 83396000 -5669000 -13564000 -12788000 934000 0 -12630000 -12788000 -12500000 -10000000 3000 0 2430000 0 -10067000 -10000000 60699000 -28457000 114273000 142730000 174972000 114273000 174972000 114273000 500000 500000 250000 250000 5000 0 5000 0 1 1 1 1 With reference to section 98b(3) no. 2 of the Danish Fi­nan­cial State­ments Act, re­mune­ration for the manage­ment is not dis­closed for 2025 and 2024, as infor­mation would other­wise lead to a­mounts being shown for a single mem­ber of manage­ment. 0 0 433000 605000 2560000 4215000 2552000 3022000 11906000 959000 10000 681000 75470000 21662000 1236000 0 0 0 -26962000 68493000 12500000 0 12500000 0 17000000 0 17000000 0 -74085000 76265000 -47123000 7772000 6.InvestmentsFigures in DKK '000Equity invest­ments in group enter­pri­sesEquity invest­ments in asso­ciatesOther invest­mentsGroup:Cost as at 01.01.250118,23886,112Additions during the year08,9134,651Disposals during the year00-15,362Cost as at 31.12.250127,15175,401Revaluations as at 01.01.250-18,4940Foreign currency translation adjustment of foreign enterprises0-2,3160Net profit/loss from equity investments0-12,9260Revaluations as at 31.12.250-33,7360Fair value adjustments as at 01.01.250051,674Foreign currency translation adjustment of foreign enterprises00-1,859Fair value adjustments during the year00-11,772Reversal of fair value adjustments of disposed assets0015,354Fair value adjustments as at 31.12.250053,397Carrying amount as at 31.12.25093,415128,798Positive balances ascertainable on initial recognition of equity investments measured at equity value04,90906.Investments  -  continued  -Figures in DKK '000Equity invest­ments in group enter­pri­sesEquity invest­ments in asso­ciatesOther invest­mentsParent:Cost as at 01.01.2578,868118,23863,233Additions during the year08,9133,318Disposals during the year00-15,362Cost as at 31.12.2578,868127,15151,189Revaluations as at 01.01.25928,458-18,4940Foreign currency translation adjustment of foreign enterprises0-2,3160Net profit/loss from equity investments-13,988-12,9260Dividend relating to equity investments-16,63500Revaluations as at 31.12.25897,835-33,7360Fair value adjustments as at 01.01.250054,185Foreign currency translation adjustment of foreign enterprises00-1,859Fair value adjustments during the year00-12,365Reversal of fair value adjustments of disposed assets0015,354Fair value adjustments as at 31.12.250055,315Carrying amount as at 31.12.25976,70393,415106,504Positive balances ascertainable on initial recognition of equity investments measured at equity value04,90906.Investments  -  continued  -Name and registered office:Ownership interestSubsidiaries:Insalvo ApS, København100%Associates:Crista Galli Ventures Limited, London48.72%Crista Galli Alpha Limited, London33.33%Investments in associates have been recognized on the basis of the most recent approved financial statement dated 30 April 2025, including a fair value adjustment from the underlying investments in the associates dated 31 December 2025. 0 118238000 86112000 8913000 4651000 -15362000 0 127151000 75401000 0 0 51674000 -1859000 -11772000 15354000 0 0 53397000 0 93415000 128798000 4,909 78868000 118238000 63233000 8913000 3318000 -15362000 78868000 127151000 51189000 0 0 54185000 -1859000 -12365000 15354000 0 0 55315000 976703000 93415000 106504000 Insalvo ApS København 100 Crista Galli Ventures Limited London 48.72 Crista Galli Alpha Limited London 33.33 GroupParent31.12.2531.12.2431.12.2531.12.24DKK '000DKK '000DKK '000DKK '0007.Deferred taxProvisions for deferred tax as at 01.01.2519,23932,6713,9494,384Deferred tax recognised in the income statement5,311-13,432301-435Provisions for deferred tax as at 31.12.2524,55019,2394,2503,949Deferred tax is distributed as below:Tax losses24,55019,2394,2503,949As at 31.12.25, the group has recognised a deferred tax asset of DKK 24.550k, which can primarily be attributed to tax losses carried forward. The deferred tax asset is recognised on the basis of expectations of positive operating results for the coming yearsAs at 31.12.25, the company has recognised a deferred tax asset of DKK 4.250k, which can primarily be attributed to tax losses carried forward. The deferred tax asset is recognised on the basis of expectations of positive operating results for the coming years. 19239000 32671000 3949000 4384000 5311000 -13432000 301000 -435000 70645000 68214000 70645000 68214000 9.Fair value informationFigures in DKK '000Listed securities and equity investmentsUnlisted securities and equity investmentsGroup:Fair value as at 31.12.25801,960128,798Unrealised changes of fair value recognised in the income statement for the year10,641-13,638Parent:Fair value as at 31.12.2562,191106,505Unrealised changes of fair value recognised in the income statement for the year4,591-14,231Unlisted securities and equity investments consists primarily of investments in unlisted shares and investments through alternative investment funds and is considered illiquid in the short term. The valuation of other securities and other investments is carried out on the basis of the latest capital round of the companies, which management considers to be, independent third party assessment of the companies' value. 10.Contingent liabilitiesThe group has no contingent liabilities as at 31.12.25.Parent:Other contingent liabilitiesThe company is taxed jointly with the other Danish companies in the group and has joint, several and unlimited liability for income taxes and any obligations to withhold tax at source on interest, royalties and dividends for the jointly taxed companies. The total known tax liability for the jointly taxed companies is DKK 251k at the balance sheet date, of which DKK 0k is recognised in the balance sheet. The liability also includes any subsequent corrections to the calculated tax liability as a consequence of changes made to the jointly taxable income etc. 11.Other commitmentsGroup:The group has entered into non cancellable contractual obligations with total future payment obligations amounting to DKK 5 million. The contractual obligations relate to management agreements. The company has entered into investment contracts which commits the company to invest in two funds. 1) Total commitment of DKK 10,000k as of 31 December 2025, a total of DKK 7,500k has been invested. The remaining commitment amounts to DKK 2,500k as of 31 December 2025. 2) Total commitment of USD 2,500k, as of 31 December 2025, a total of USD 1,969k has been invested. The remaining commitment amounts to USD 531k as of 31 December 2025.Parent:The company has entered into non cancellable contractual obligations with total future payment obligations amounting to DKK 2.5 million. The contractual obligations relate to management agreements. 12.Charges and securityGroup:As security for credit facilities with credit institutions DKK 203.100k, the group has pledged cash and securities with a carrying amount of DKK 803.528k. As of 31 December 2025, the group had not utilised any of the credit facilities.Parent:The company has not provided any security over assets. 13.Related partiesRelated party transactions are not disclosed, as all transactions are entered into in the ordinary course of business at arms’ length. 15241000 -680000 12705000 -8547000 -75214000 -115910000 89936000 26836000 -4118000 18354000 The annual report is presen­ted in accordance with the provisions of the Danish Financial Statements Act for medium-sized groups and enterprises in re­port­ing class C. Basis of recognition and measurementIncome is recognised in the income state­ment as earned, including value adjust­ments of fin­an­cial assets and liabilities. All ex­penses, including depreciation, amortisa­tion, impair­ment losses and write-downs, are also recognised in the in­come state­ment.Assets are recognised in the balance sheet when it is probable that future economic bene­fits will flow to the company, and the value of such assets can be measured reliably. Liabilities are recognised in the balance sheet when it is probable that future economic benefits will flow from the company, and the value of such liabilities can be measured reliably. On initial recognition, assets and liabilities are measured at cost. Subsequently, assets and liabilities are measured as described for each item below.On recognition and measurement, account is taken of foreseeable losses and risks arising before the date at which the annual report is presented and proving or disproving matters arising on or before the balance sheet date. CONSOLIDATED FINANCIAL STATEMENTSThe consolidated financial statements comprise the parent and its subsidiaries in which the parent directly or indirectly holds more than 50% of the voting rights or by way of agreements exercises control. Enterprises in which the group holds participating interests, between 20% and 50% of the voting rights and in which it has significant interest but not control, are considered associates.All financial statements used for consolidation are prepared in accordance with the ac­count­ing policies of the group.The consolidated financial statements con­solidate the financial statements of the parent and its subsidiaries by adding to­gether items of a uniform nature, elimi­nating intercompany income and ex­penditure, equity investments, inter­company balances and dividends as well as gains and losses resulting from transactions between the consolidated enterprises to the extent that the underlying assets and liabilities are not realised. CURRENCYThe annual report is presen­ted in Danish kroner (DKK).On initial recognition, transactions den­ominated in foreign currencies are trans­lated using the exchange rates applicable at the transaction date. Exchange rate differences between the exchange rate applicable at the transaction date and the exchange rate at the date of payment are recognised in the income statement as a financial item. Receivables, payables and other monetary items denominated in foreign currencies are translated using the exchange rates applicable at the balance sheet date. The difference between the ex­change rate applicable at the balance sheet date and at the date at which the receivable or payable arose or was recognised in the latest annual report is recognised under financial income or ex­penses in the income statement. Fixed assets and other non-monetary assets acquired in foreign currencies are translated using historical exchange rates.On recognition of independent foreign entities, the income statements are translated at the exchange rates applicable at the transaction date or approximate average exchange rates. The balance sheet items are translated using the exchange rates applicable at the balance sheet date. Foreign currency translation adjustments arising from the translation of equity at the beginning of the year using the exchange rates applicable at the balance sheet date and from the translation of income statements from average exchange rates to the exchange rates applicable at the balance sheet date are recognised directly in equity under the reserve for net revaluation according to the equity method in respect of investments measured ac­cord­ing to the equity method, and otherwise un­der the foreign currency translation reserve.Translation adjustments of intercompany balances with independent foreign entities, measured using the equity method and where the balance is considered to be part of the overall investment, are recognised directly in equity under the foreign currency translation reserve. On the divestment of foreign entities, accumulated exchange differences are recognised in the income statement. DERIVATIVE FINANCIAL INSTRUMENTSOn initial recognition, derivative financial instruments are measured at cost. Sub­sequently, they are measured at fair value and recognised under other receivables and other payables, respectively. The company does not apply the hedge accounting rules under which changes in the fair value of derivative financial instruments are recognised under other net financials in the income statement. Gross lossGross loss comprises other external ex­penses. Other external expensesOther external expenses comprise costs re­lating to distribution, sales and advertising and administration, premises and bad debts to the extent that these do not exceed normal write-downs. Staff costsStaff costs comprise wages and salaries as well as other staff-related costs. Income from equity investments in group en­tre­prises and as­so­ci­atesFor equity investments in equity invest­ments in as­so­ci­ates and in the parent also equity investments in sub­si­di­ar­ies that are measured using the equity method, the share of the enterprises’ profit or loss is recognised in the income statement after elimination of unrealised intercompany profits and losses and less any goodwill amortisation and im­pairment losses. For associates only the proportionate share of intercompany gains and losses is eliminated.Income from equity investments in equity investments in sub­si­di­ar­ies and as­so­ci­ates also comprises gains and losses on the sale of equity investments. Income from other investments and re­ceivables that are fixed assetsInterest income, dividends, unrealised capi­tal gains and realised gains on disposal are recognised under this item. Other net financialsInterest income and interest expenses, for­eign exchange gains and losses on trans­ac­tions denominated in foreign currencies, gains and losses on other securities and equity invest­ments etc. are recognised in other net financials. Tax on profit/loss for the yearThe current and deferred tax for the year is recognised in the income statement as tax on the profit/loss for the year with the portion attributable to the profit/loss for the year, and directly in equity with the portion attributable to amounts recognised directly in equity.The company is jointly taxed with Danish consolidated enterprises. The parent is the ad­min­is­tra­tion company for the joint taxation and thus settles all income tax payments with the tax authorities.In connection with the settlement of joint taxation contributions, the current Danish income tax isallocated between the jointly taxed enterprises in proportion to their tax­able incomes. This means that enter­prises with a tax loss receive joint taxation contributions from enterprises which have been able to use this loss to reduce their own taxable profit. Equity investments in group en­tre­prises and as­so­ci­atesEquity investments in group enterprisesEquity investments in subsidiaries are recognised and measured according to the equity method in the balance sheet of the parent. For equity investments in subsidiaries, the equity method is considered a measurement method, and reference is made to the 'Equity method' section for further details.Equity investments in associatesIn the balance sheet, equity investments in associates are recognised and measured according to the equity method. For equity investments in associates, the equity method is considered a measurement method, and reference is made to the 'Equity method' section for further details.The acquisition of equity investments in associates is recognised in accordance with the acquisition method, according to which the identifiable assets and liabilities of acquired equity investments are measured at fair value at the date of acquisition.Equity methodOn initial recognition, equity investments measured according to the equity method are measured at cost. Transaction costs directly attributable to the acquisition are recognised in the cost of equity investments. However, transaction costs on the acquisition of subsidiaries are recognised in the income statement in the consolidated financial statements at the date incurred. On subsequent recognition and measurement of equity investments according to the equity method, equity investments are measured at the proportionate share of the enterprises' equity value, determined according to the accounting policies of the parent, adjusted for the remaining value of goodwill and gains and losses on transactions with the enterprises in question. Equity investments, where information for recognition according to the equity method is not known, are measured at cost.On the acquisition of as­so­ci­ates, goodwill is recognised on a proportionate basis based on the actual ownership interest in the acquired equity investments.The goodwill (positive difference) determined at the date of acquisition is recognised under equity investments in associates. For negative goodwill (negative difference), a reassessment is made of thefair values determined for the proportionate share of the net assets acquired and the purchase price of the equity investments. Negative goodwill that is attributable to contingent liabilities at the date of acquisition is recognised under equity investments in associates and reduced in line with the realisation of these liabilities. Any remaining negative difference (negative goodwill) is recognised in the income statement at the date of acquisition. Goodwill and negative goodwill from acquired enterprises are adjusted until 12 months after the date of acquisition.Gains or losses on disposal of equity investmentsGains or losses on disposal of equity investments are determined as the difference between the disposal consideration and the carrying amount of net assets at the time of sale, including non-amortised goodwill, as well as the expected costs of divestment or discontinuation. Gains and losses are recognised in the income statement under income from equity investments. Impairment losses on fixed assetsThe carrying amount of fixed assets which are not measured at fair value is assessed annually for indications of impairment over and above what is reflected in de­pre­ci­a­tion and amor­ti­sa­tion.If the company's realised return on an asset or a group of assets is lower than expected, this is considered an indication of impairment.If there are indications of impairment, an impairment test is conducted of individual assets or groups of assets.The assets or groups of assets are impaired to the lower of recoverable amount and carrying amount.The higher of net selling price and value in use is used as the recoverable amount. The value in use is determined as the present value of expected net cash flows from the use of the asset or group of assets as well as expected net cash flows from the sale of the asset or group of assets after the expiry of their useful lives.Impairment losses are reversed when the reasons for the impairment no longer exist. ReceivablesReceivables are measured at amortised cost, which usually corresponds to the nom­inal value, less write-downs for bad debts.Write-downs for bad debts are determined based on an individual assessment of each receivable if there is no objective evidence of individual impairment of a receivable. Other investmentsOther securities are measured at fair value, equivalent to the market value at the balance sheet date.Other equity investments are measured at fair value in the balance sheet. For equity investments that are traded in an active market, fair value is equivalent to the market value at the balance sheet date. Other equity investments for which fair value cannot be determined reliably are measured at cost. CashCash includes deposits in bank account. EquityThe net revaluation of equity investments measured according to the equity method is recognized in the financial statements of the parent in the net revaluation reserve in equity according to the equity method to the extent that the carrying amount exceeds the cost. The proposed dividend for the financial year is recognised as a separate item in equity. Current and deferred taxCurrent tax payable and receivable is recognised in the balance sheet as tax computed on the basis of the taxable income for the year, adjusted for tax paid on account.Joint taxation contributions payable and receivable are recognised as income tax under receivables or payables in the balance sheet.Deferred tax liabilities and tax assets are recognised on the basis of all temporary differences between the carrying amounts and tax bases of assets and liabilities. However, deferred tax is not recognised on temporary differences relating to goodwill which is non-amortisable for tax purposes and other items where temporary differ­ences, except for acquisitions, have arisen at the date of acquisition without affecting the net profit or loss for the year or the tax­able income. In cases where the tax value can be determined according to different taxation rules, deferred tax is measured on the basis of management’s intended use of the asset or settlement of the liability.Deferred tax assets are recognised, following an assessment, at the expected realisable value through offsetting against deferred tax liabilities within the same tax jurisdiction or elimination in tax on future earnings.Deferred tax is measured on the basis of the tax rules and at the tax rates in the respective countries which, according to the legislation in force at the balance sheet date, will be applicable when the deferred tax is expected to crystallise as current tax. PayablesLong-term payables are measured at cost at the time of contracting such liabilities (raising of the loan). The payables are subsequently measured at amortised cost where capital losses and loan expenses are recognised in the income statement as a financial expense over the term of the payable on the basis of the calculated effective interest rate in force at the time of contracting the liability.Short-term financial payables are measured at amortised cost, normally corresponding to the nominal value of such payables. Other short-term payables are measured at net realisable value. The cash flow statement is prepared using the indirect method, showing cash flows from operating, investing and financing activities as well as cash and cash equivalents at the beginning and end of the year.Cash flows from operating activities com­prise the net profit or loss for the year, adjusted for non-cash operating items, income tax paid and changes in working capital.Cash flows from investing activities com­prise payments in connection with the ac­quisition and divestment of companies and financial assets as well as the purchase, development, improvement and sale of in­tangible assets and property, plant and equipment.Cash flows from financing activities com­prise changes in the parent’s share capital and as­so­ci­a­ted costs and finan­cing from and di­vidends paid to sharehold­ers as well as the ar­ran­ge­ment and repay­ment of long-term pay­ables. Cash and cash equivalents at the beginning and end of the year comprise cash. Referring to section 86(4) of the Danish Fi­nancial Statements Act a cash flow state­ment has not been prepared for the parent as the parent is included in the consolidated cash flow statement.