31580277 2025-01-01 2025-12-31 31580277 2025-01-01 2025-12-31 1 31580277 2025-01-01 2025-12-31 2 31580277 2025-01-01 2025-12-31 1 31580277 2025-01-01 2025-12-31 1 31580277 2025-01-01 2025-12-31 2 31580277 2025-01-01 2025-12-31 3 31580277 2025-01-01 2025-12-31 4 31580277 2025-01-01 2025-12-31 5 31580277 2023-01-01 2023-12-31 31580277 2022-01-01 2022-12-31 31580277 2021-01-01 2021-12-31 31580277 2023-12-31 31580277 2022-12-31 31580277 2021-12-31 31580277 2024-01-01 2024-12-31 31580277 2025-01-01 2025-12-31 15 31580277 2024-01-01 2024-12-31 15 31580277 2023-01-01 2023-12-31 15 31580277 2022-01-01 2022-12-31 15 31580277 2021-01-01 2021-12-31 15 31580277 2025-12-31 31580277 2024-12-31 31580277 2025-01-01 2025-12-31 c:ProposedDividendRecognisedInEquityMember 31580277 2025-01-01 2025-12-31 c:ReserveForDevelopmentExpenditureMember 31580277 2025-01-01 2025-12-31 c:RetainedEarningsMember 31580277 2025-01-01 2025-12-31 c:ReserveForNetRevaluationAccordingToEquityMethodMember 31580277 2025-12-31 c:ContributedCapitalMember 31580277 2025-12-31 c:ReserveForNetRevaluationAccordingToEquityMethodMember 31580277 2025-12-31 c:ReserveForDevelopmentExpenditureMember 31580277 2025-12-31 c:RetainedEarningsMember 31580277 2025-12-31 c:ProposedDividendRecognisedInEquityMember 31580277 2025-01-01 c:CompletedDevelopmentProjectsMember 31580277 2025-01-01 c:AcquiredIntangibleAssetsMember 31580277 2025-01-01 2025-12-31 c:CompletedDevelopmentProjectsMember 31580277 2025-12-31 c:CompletedDevelopmentProjectsMember 31580277 2025-12-31 c:AcquiredIntangibleAssetsMember 31580277 2025-01-01 2025-12-31 c:AcquiredIntangibleAssetsMember 31580277 2025-01-01 c:LeaseholdImprovementsMember 31580277 2025-01-01 c:FixturesFittingsToolsAndEquipmentMember 31580277 2025-01-01 2025-12-31 c:LeaseholdImprovementsMember 31580277 2025-01-01 2025-12-31 c:FixturesFittingsToolsAndEquipmentMember 31580277 2025-12-31 c:LeaseholdImprovementsMember 31580277 2025-12-31 c:FixturesFittingsToolsAndEquipmentMember 31580277 2025-01-01 c:InvestmentsInGroupEnterprisesMember 31580277 2025-12-31 c:InvestmentsInGroupEnterprisesMember 31580277 2025-01-01 2025-12-31 c:InvestmentsInGroupEnterprisesMember 31580277 2025-01-01 2025-12-31 c:SubsidiaryMember 1 31580277 2025-12-31 c:SubsidiaryMember 1 31580277 2025-01-01 2025-12-31 c:SubsidiaryMember 2 31580277 2025-12-31 c:SubsidiaryMember 2 31580277 2025-01-01 2025-12-31 c:SubsidiaryMember 3 31580277 2025-12-31 c:SubsidiaryMember 3 31580277 2025-12-31 1 31580277 2025-01-01 31580277 2024-01-01 iso4217:DKK xbrli:pure xbrli:shares Årsrapport 2026-04-30 Revisionspåtegning Tommy Skovdal Regnskabsklasse C, mellemstor virksomhed Beierholm 2026-04-30 Beierholm 2024-12-31 Langagervej 1 9220 Aalborg Ø Opinion Basis for Opinion 2024-01-01 Beierholm 7500 2025-01-01 81 2025-12-31 31580277 7800 Holstebro CERAMICSPEED A/S Nørgårdsvej Skive 3 Holstebro 32895468 Resenvej Danmark 81 32895468 Resenvej 7800 Skive Danmark true We have on this day presented the annual report for the financial year 01.01.25 - 31.12.25 for CERAMICSPEED A/S. The annual report is presented in accordance with the Danish Finan­cial Sta­te­ments Act. In our opinion, the financial statements give a true and fair view of the company's assets, liabilities and financial position as at 31.12.25 and of the results of the company's activities for the financial year 01.01.25 - 31.12.25. We 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. Jacob Csizmadia Thomas Holm Jensen Chairman Tommy Skovdal Jacob Csizmadia Martin Secher Banke Anders Christian Thormann To the shareholder of CERAMICSPEED A/S In our opinion the fi­nan­cial sta­te­ments give a true and fair view of the company's finan­cial posi­tion at 31.12.25 and of the results of the company's ope­ra­tions 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 fi­nan­cial sta­te­ments” section of our report. We are independent of the company in accordance with the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Management is responsible for the mana­ge­ment’s review.Our opinion on the 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 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 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 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. Management is responsible for the pre­pa­ra­tion of fi­nan­cial sta­te­ments that give a true and fair view in ac­cor­dance with the Danish Finan­cial Sta­te­ments Act and for such in­ter­nal control as Mana­gement de­ter­mi­nes is necessary to enable the pre­pa­ra­tion of fi­nan­cial sta­te­ments that are free from material misstatement, whether due to fraud or error.In preparing the fi­nan­cial sta­te­ments, mana­ge­ment is responsible for assessing the company's ability to continue as a going concern, dis­closing, as applicable, mat­ters related to going con­cern and using the going concern basis of ac­counting in pre­paring the fi­nan­cial sta­te­ments unless mana­ge­ment either intends to liquidate the company or to cease operations, or has no rea­listic alternative but to do so. Our objectives are to obtain reasonable as­surance about whether the fi­nan­cial sta­te­ments as a whole are free from material mis­statement, whether due to fraud or error, and to issue an auditor’s report that inclu­des our opinion. Reasonable assurance is a high level of assurance, but is not a gua­ran­tee that an audit conducted in accor­dance with ISAs and the additional requirements applic­able in Denmark will always detect a material misstatement when it exists. Mis­sta­te­ments can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be ex­pec­ted to influence the economic decisions of users taken on the basis of these fi­nan­cial sta­te­ments.As part of an audit conducted in accordance with ISAs and the additional requirements applic­able in Denmark, we exercise pro­fes­sional judgment and maintain professional scepticism through­out the audit. We also: Identify and assess the risks of material misstatement of the fi­nan­cial sta­te­ments, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and ap­pro­priate to provide a basis for our opinion. The risk of not detecting a mate­rial misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion, forgery, intentional omissions, mis­repre­sen­tations, or the override of internal control.Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appro­priate in the cir­cum­stances, but not for the purpose of expres­sing an opinion on the effectiveness of the company's inter­nal control.Evaluate the appropriateness of accoun­ting policies used and the reason­able­ness of accounting estimates and related disclosures made by management.Conclude on the appropriateness of manage­ment’s use of the going concern basis of accoun­ting in preparing the fi­nan­cial sta­te­ments and, based on the audit evidence obtained, whether a mate­rial uncertainty exists related to events or conditions that may cast signi­ficant doubt on the company's ability to con­tinue as a going concern. If we con­clude that a material uncertainty exists, we are required to draw attention in our audi­tor’s report to the related disclosures in the fi­nan­cial sta­te­ments or, if such dis­closures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern.Evaluate the overall presentation, structure and contents of the fi­nan­cial sta­te­ments, including the disclosures, and whether the fi­nan­cial sta­te­ments repre­sent the underlying transactions and events in a manner that gives a true and fair view.Plan and perform the audit of the financial statements to obtain sufficient appropriate audit evidence regarding the consolidated financial information of the entities or business units as a basis for expressing an opinion on the financial statements. We are responsible for the direction, supervision and review of the audit work performed. 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. Skive Bjørn Jakobsen Jakob Hove State Authorised Public Accountant mne24813 State Authorised Public Accountant mne49065 3260000 2676000 2230000 10486000 12487000 15709000 13218000 14426000 17778000 148366000 106108000 87065000 5435000 4087000 38517000 6395000 7121000 54102000 45884000 36457000 34.6 26.4 35.0 60.6 34.0 30.3 36.5 43.2 41.9 Liquidity ratio 91.7 75.2 60.0 91.5 96.5 59 61 50 Ratios definitionsReturn on equity:Profit/loss for the year x 100Average equitySolvency ratio:Equity, end of year x 100Total assetsLiquidity ratio:Current assets x 100Short-term payables Primary activitiesThe company's main activity is the production, development and sale of ceramic ball bearings, components and lubricants. Development in activities and financial affairsThe income statement for the period 01.01.25 - 31.12.25 shows a profit/loss of DKK 14,153k against DKK 15,396k for the period 01.01.24 - 31.12.24. The balance sheet shows equity of DKK 39,158k.The development should be assessed in light of the fact that in the 2024 annual report, the company expected a profit before tax for 2025 in the range DKK 20,00-22,00k. 2025 was a year where the activity was below the expected. Taking the lower activity into account, the result is satisfactory although under the level of expectations. Cost related to the continual development of the company are included in the income statement and were expected, we will continue to develop a strong foundation of the company to be able to meet the expectations in the years to come.The company is well consolidated, with an equity ratio of 34% as of 31 December 2025.In the financial year, investments in property, plant and equipment amounted to DKK 5,436k. The management considers the net profit for the year to be satisfactory. OutlookThe company expects a profit before tax in the region of DKK 15-17,000k for the coming year. The increase in profit before tax is expected to come from a growth in income from equity investments in group enterprises. The profit from the main activity is expected to increase in the region of DKK 500-1,500k due to the higher activity in related companies. Financial risksPrice risksThe company is exposed to commodity price risks, as the company's products contain various raw materials which are subject to fluctuating prices.Commodity price risks are not hedged. Previously, the impact on the company's results has been limited, as price fluctuations of the most important raw materials used are primarily passed on to the company's selling prices.Foreign currency risksThe company is exposed to foreign currency risks primarily from EUR, GBP and USD due to purchase and sales transactions that are settled in currencies other than DKK.Interest rate risksThe company has a large proportion of variable-rate assets and liabilities and is therefore exposed to interest rate risks.Credit risksThe company's primary credit risk relates to trade receivables. There are no single customers that constitutes a significant risk. Under the company's policy for assuming credit risk, all major customers and other business partners are subject to regular internal credit assessments. Subsequent eventsNo important events have occurred after the end of the financial year. 45168000 37671000 38228000 32320000 1563000 1022000 263000 276000 5114000 4053000 11433000 12955000 273000 440000 1901000 1388000 14919000 16060000 766000 664000 14153000 15396000 853000 741000 29000 35000 882000 776000 4632000 2116000 6162000 4561000 10794000 6677000 34462000 47879000 34462000 47879000 46138000 55332000 29822000 23503000 5286000 4756000 9550000 8215000 44658000 36474000 38000 34000 23434000 23247000 40000 21000 788000 403000 24300000 23705000 52000 4000 69010000 60183000 115148000 115515000 500000 500000 26566000 21133000 665000 578000 5427000 2794000 6000000 10000000 39158000 35005000 761000 430000 761000 430000 17753000 13486000 4027000 3167000 49492000 59771000 435000 437000 3522000 3219000 75229000 80080000 75229000 80080000 115148000 115515000 Figures in DKK '000Contributed capitalReserve for net revaluation according to the equity methodReserve for development costsRetained earningsProposed dividend for the financial yearTotal equityStatement of changes in equity for 01.01.25 - 31.12.25Balance as at 01.01.2550021,1335782,79410,00035,005Dividend paid0000-10,000-10,000Transfers to/from other reserves0087-8700Net profit/loss for the year05,43302,7206,00014,153Balance as at 31.12.2550026,5666655,4276,00039,158 -10000000 87000 -87000 5433000 2720000 6000000 500000 26566000 665000 5427000 6000000 32536000 27014000 3881000 3767000 674000 586000 1137000 953000 78 67 Remuneration for the management:Remuneration for the Executive Board and Board of Directors1,0691,139 1069000 1139000 With reference to section 98b(3) no. 1 of the Dan­ish Fi­nan­cial Statements Act, re­mune­ration for the Executive Board and Board of Di­rectors are sum­marized for 2025 and 2024, as infor­ma­tion would other­wise lead to a­mounts be­ing shown for a single mem­ber of man­age­ment.Remune­ration comprises allocated compensation calculated on the basis of a proportional allocation of management’s efforts within the group.Remune­ration for the Executive Board and Board of Directors is partial paid by a­not­her group com­pany and is there­fore not in­clu­ded in the com­pany's staff costs. 247000 425000 26000 15000 971000 822000 930000 566000 5433000 -15444000 6000000 10000000 2720000 20840000 3987000 70000 347000 4334000 70000 -3245000 -35000 -236000 -6000 -3481000 -41000 853000 29000 Completed development projects comprise the development and testing of new products to supplement the company's existing product lines and systems to optimize the business. In management’s assessment, the development activities have progressed in accordance with plans. The products were completed and brought into use in 2022-2025 and are amortised on a straight-line basis over an estimated useful life of 3-5 years. Management has not identified any indicators of impairment in respect of the carrying amount. 7.Property, plant and equipmentFigures in DKK '000Leasehold improvementsOther fixtures and fittings, tools and equipmentCost as at 01.01.252,9967,396Additions during the year2,7622,674Cost as at 31.12.255,75810,070Depreciation and impairment losses as at 01.01.25-880-2,834Depreciation during the year-246-1,074Depreciation and impairment losses as at 31.12.25-1,126-3,908Carrying amount as at 31.12.254,6326,162 2996000 7396000 2762000 2674000 5758000 10070000 -880000 -2834000 -246000 -1074000 -1126000 -3908000 4632000 6162000 8.Equity invest­ments in group enter­pri­sesFigures in DKK '000Equity invest­ments in group enter­pri­sesCost as at 01.01.251,896Cost as at 31.12.251,896Depreciation and impairment losses as at 01.01.2545,983Net profit/loss from equity investments11,433Dividend relating to equity investments-24,850Depreciation and impairment losses as at 31.12.2532,566Carrying amount as at 31.12.2534,462Name and registered office:Ownership interestSubsidiaries:CeramicSpeed Sport A/S, Holstebro71%Driven Technologies, Inc., Santa Ana, USA57%CeramicSpeed Bearings A/S, Holstebro68% 1896000 1896000 45983000 11433000 -24850000 32566000 34462000 CeramicSpeed Sport A/S Holstebro 71 Driven Technologies, Inc. Santa Ana, USA 57 CeramicSpeed Bearings A/S Holstebro 68 9.PrepaymentsPrepayments consist of prepaid expenses related to leasing and subscriptions. Share capital 500 500 31.12.2531.12.24DKK '000DKK '00011.Deferred taxDeferred tax as at 01.01.25430855Disposals relating to demergers and divestment of enterprises0-653Deferred tax recognised in the income statement332228Deferred tax as at 31.12.25762430 430000 855000 332000 228000 12.Contingent liabilitiesRecourse guarantee commitmentsThe company has provided an unlimited surety bond on behalf of CeramicSpeed Sport A/S and CeramicSpeed Bearings A/S for all outstanding debts with the credit instituion. The debt per 31 December 2025 appears in the annual report for CeramicSpeed Sport A/S and CeramicSpeed Bearing A/S.12.Contingent liabilities - continued -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 maximum liability totals an amount corresponding to the share of the capital in the company which is owned directly ar indirectly by til ultimate parent. The total tax liability for the jointly taxed companies at the balance sheet date has not yet been determined. For further information, please see the financial statements of the management company CeramicSpeed Holding ApS. 13.Other commitmentsThe company has concluded lease agreements with terms to maturity of 2-108 months and total lease payments of t.DKK 30.944. This includes lease agreements concluded with group enterprises, but the agreements are also specified separately below.The company has concluded lease agreements with group enterprises with terms to maturity of 108 months and total lease payments of t.DKK 30.780. 14.Charges and securityThe following assets have been pledged as security for bank: As security for the company's balance with credit institutions, a company pledge of t.DKK 4,000 has been pledged in receivables, operating equipment, intellectual property rights and inventory. The company has provided a company pledge of t.DKK 5,000 for the subsidiaries CeramicSpeed Bearings A/S and CeramicSpeed Sport A/S. The company has issued a letter of support to the subsidiary CeramicSpeed Bearings A/S. 15.Related partiesRelated party transactions are not disclosed, as all transactions are entered into in the ordinary course of business at arms’ length.Remuneration for the management is specified in note 1. Staff costs.The company is included in the consolidated finan­cial statements of the parent CeramicSpeed Holding ApS, Holstebro. The annual report is presen­ted in ac­cord­ance with the provisions of the Danish Fi­nan­cial Statements Act (Årsregn­skabs­lov­en) for medium-sized enterprises in re­port­ing class C with application of pro­vi­sions for a higher reporting class. In accordance with section 112 of the Danish Financial Statements Act, the company has not prepared consolidated financial statements. The company is a subsidiary of CeramicSpeed Holding ApS, Holstebro, CVR no. 31 89 10 35, which prepares consolidated financial statements. 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. 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 orex­penses in the income statement. Fixed assets, inventories and other non-monetary assets acquired in foreign currencies are translated using historical exchange rates. LEASESLease payments relating to operating leases are recognised in the income statement on a straight-line basis over the lease term. Gross profitGross profit comprises rev­enue, work performed for own account and capitalised, other operating income and raw materials and consumables and other external ex­penses. RevenueIncome from the sale of goods is recognised in the income statement if delivery has taken place and the risk has passed to the buyer before the end of the financial year and where the selling price can be determined reliably and is expected to be paid. Revenue is measured at fair value and is determined exclusive of VAT and other taxes collected on behalf of third parties and less discounts. Work performed for own account and capitalisedWork performed for own account and capitalised comprises cost of sales, wages and salaries and other internal expenses incurred during the year and included in the cost of self-constructed or self-produced intangible assets and property, plant and equipment. Other operating incomeOther operating income comprises income of a secondary nature in relation to the enterprise’s activities, including rental income, salary supplements and refunds, negative goodwill and gains on the sale of intangible assets and property, plant and equipment. Costs of raw materials and consuma­blesCosts of raw materials and consumables comprise raw materials and consumables used for the year as well as any changes in inventories, including any inventory wastage.Write-downs of inventories of raw materials and consumables are also recognised under raw materials and consumables to the extent that these do not exceed normal write-downs. Other external expensesOther external expenses comprise costs re­lating to distribution, sales and advertising and administration. Staff costsStaff costs comprise wages and salaries as well as other staff-related costs. De­pre­ci­a­tion, amor­ti­sa­tion and impair­ment lossesThe de­pre­ci­a­tion and amor­ti­sa­tion of in­tan­gi­ble as­sets and prop­er­ty, plant and equip­ment aim at systematic de­pre­ci­a­tion and amor­ti­sa­tion over the expected useful lives of the assets. Assets are de­pre­ci­ated and amor­tised according to the straight-line method based on the following ex­pected useful lives and residual values:The basis of de­pre­ci­a­tion and amor­ti­sa­tion is the cost of the asset less the expected residual value at the end of the useful life. Moreover, the basis of de­pre­ci­a­tion and amor­ti­sa­tion is reduced by any impairment losses. The useful life and residual value are determined when the asset is ready for use and reassessed annually.In­tan­gi­ble as­sets and prop­er­ty, plant and equip­ment are impaired in accordance with the accounting policies referred to in the ‘Impairment losses on fixed assets’ section. Other operating expensesOther operating expenses comprise costs of a secondary nature in relation to the enterprise’s activities. Income from equity investments in group en­tre­prisesFor equity investments in equity invest­ments in sub­si­di­ar­ies, 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. Income from equity investments in equity investments in sub­si­di­ar­ies also comprises gains and losses on the sale of equity investments. Other net financialsInterest income and interest expenses, for­eign exchange gains and losses on trans­ac­tions denominated in foreign currencies 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. In connection with the settlement of joint taxation contributions, the current Danish income tax is allocated 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. Intangible assetsCompleted de­vel­op­ment projectsDevelopment projects are recognised in the balance sheet where the project aims at developing a specific product or a specific process, intended to be produced or used, respectively, by the company in its production process. On initial recognition, development projects are measured at cost. Cost comprises the purchase price plus expenses resulting directly from the purchase, including wages and salaries directly attributable to the development projects until the asset is ready for use. Interest on loans arranged to finance development projects in the development period is not included in the cost. Other development projects and development costs are recognised in the income statement in the year in which they are incurred.Development projects are subsequently measured in the balance sheet at cost less accumulated amortisation and impairment losses.Completed development projects are amortised using the straight-line method based on useful lives, which are stated in the ‘De­pre­ci­a­tion, amor­ti­sa­tion and impair­ment losses’ section.Acquired rightsAquired rights are measured in the balance sheet at cost less accumulated amortisation and impairment losses.Acquired rights are amortised using the straight-line method based on useful lives, which are stated in the ‘De­pre­ci­a­tion, amor­ti­sa­tion and impair­ment losses’ section.Gains or losses on the disposal of intangi­ble assetsGains or losses on the disposal of intangible assets are determined as the difference between the selling price, if any, less selling costs and the carrying amount at the date of disposal. Property, plant and equipmentProperty, plant and equipment comprise land and buildings, leasehold improvements as well as other fixtures and fittings, tools and equipment.Property, plant and equipment are meas­ured in the balance sheet at cost less accumulated depreciation and impairment losses. Cost comprises the purchase price and expenses resulting directly from the purchase until the asset is ready for use. Interest on loans arranged to finance production is not included in the cost.The total cost of an asset is decomposed into separate components that are depreciated separately if the useful lives of the individual components vary.Property, plant and equipment are depreci­ated using the straight-line method based on useful lives and residual values, which are stated in the ‘De­pre­ci­a­tion, amor­ti­sa­tion and impair­ment losses' section.Property, plant and equipment under construc­tionProperty, plant and equipment under con­struc­tion are measured at cost. Costs incurred on property, plant and equipment under construction are transferred to the relevant asset category when the asset is ready for use.Gains and losses on the disposal of property, plant and equipmentGains and losses on the disposal of property, plant and equipment are determined as the difference between the selling price, if any, less selling costs and the carrying amount at the date of disposal less any costs of disposal. Equity investments in group en­tre­prisesEquity investments in subsidiaries are recognised and measured according to the equity method. For equity investments in subsidiaries, the equity method is considered a measurement method.On 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. Under 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.Gains 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 ordiscontinuation. 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. InventoriesInventories are measured at cost calculated according to the FIFO-method. Inventories are written down to the lower of cost and net realisable value.The cost of raw materials and consumables as well as goods for resale is determined as purchase prices plus expenses resulting directly from the purchase.The net realisable value of inventories is determined as the selling price less costs of completion and costs necessary to make the sale and is determined taking into account marketability, obsolescence and the expected development in the selling price. 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. PrepaymentsPrepayments recognised under assets com­prise costs incurred in respect of subse­quent financial years. CashCash includes deposits in bank account. EquityThe net revaluation of equity investments measured according to the equity method is recognized in the net revaluation reserve in equity according to the equity method to the extent that the carrying amount exceeds the cost. Dividends from subsidiaries which are adopted before adoption of the annual report for CERAMICSPEED A/S are not tied up in the revaluation reserve (simultaneous principle).An amount equivalent to internally generated development costs in the balance sheet is recognised in equity under reserve for development costs. The reserve is measured less deferred tax and reduced by amortisation and impairment losses on the asset. If impairment losses on development costs are subsequently reversed, the reserve will be restored with a corresponding amount. The reserve is dissolved when the development costs are no longer recognized in the balance sheet, and the remaining amount will be transferred to retained earnings. 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 or elimination in tax on future earnings.Deferred tax is measured on the basis of the tax rules and at the tax rates 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. PayablesShort-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. Referring to section 86(4) of the Danish Fi­nancial Statements Act a cash flow state­ment has not been prepared as the enter­prise is included in the consolidated cash flow statement.