36960566 2025-01-01 2025-12-31 36960566 2025-01-01 2025-12-31 2 36960566 2025-01-01 2025-12-31 memberOfBoardIdentifier_executive_board_1 36960566 2025-01-01 2025-12-31 memberOfBoardIdentifier_board_of_director_1 36960566 2025-01-01 2025-12-31 1 36960566 2023-01-01 2023-12-31 36960566 2022-01-01 2022-12-31 36960566 2021-01-01 2021-12-31 36960566 2023-12-31 36960566 2022-12-31 36960566 2021-12-31 36960566 2024-01-01 2024-12-31 36960566 2025-12-31 36960566 2024-12-31 36960566 2025-01-01 fsa:ContributedCapitalMember 36960566 2025-01-01 fsa:ReserveForDevelopmentExpenditureMember 36960566 2025-01-01 fsa:RetainedEarningsMember 36960566 2025-01-01 36960566 2025-01-01 2025-12-31 fsa:ContributedCapitalMember 36960566 2025-01-01 2025-12-31 fsa:ReserveForDevelopmentExpenditureMember 36960566 2025-01-01 2025-12-31 fsa:RetainedEarningsMember 36960566 2025-12-31 fsa:ContributedCapitalMember 36960566 2025-12-31 fsa:ReserveForDevelopmentExpenditureMember 36960566 2025-12-31 fsa:RetainedEarningsMember 36960566 2025-01-01 2025-12-31 fsa:ManagementMember 36960566 2024-01-01 2024-12-31 fsa:ManagementMember 36960566 2025-01-01 2025-12-31 fsa:BoardOfDirectorsMember 36960566 2024-01-01 2024-12-31 fsa:BoardOfDirectorsMember 36960566 2025-01-01 fsa:CompletedDevelopmentProjectsMember 36960566 2025-01-01 fsa:AcquiredLicencesMember 36960566 2025-01-01 fsa:DevelopmentProjectsInProgressMember 36960566 2025-01-01 2025-12-31 fsa:CompletedDevelopmentProjectsMember 36960566 2025-01-01 2025-12-31 fsa:AcquiredLicencesMember 36960566 2025-01-01 2025-12-31 fsa:DevelopmentProjectsInProgressMember 36960566 2025-12-31 fsa:CompletedDevelopmentProjectsMember 36960566 2025-12-31 fsa:AcquiredLicencesMember 36960566 2025-12-31 fsa:DevelopmentProjectsInProgressMember 36960566 2025-01-01 fsa:FixturesFittingsToolsAndEquipmentMember 36960566 2025-01-01 2025-12-31 fsa:FixturesFittingsToolsAndEquipmentMember 36960566 2025-12-31 fsa:FixturesFittingsToolsAndEquipmentMember 36960566 2025-01-01 fsa:DepositsLongtermInvestmentsAndReceivablesMember 36960566 2025-12-31 fsa:DepositsLongtermInvestmentsAndReceivablesMember iso4217:DKK pure Årsrapport 33771231 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab Strandvejen 44 2900 Hellerup 2025-01-01 2024-01-01 2025-12-31 2024-12-31 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab 33771231 Regnskabsklasse C, mellemstor virksomhed Revisionspåtegning false 2026-04-30 Jens Rødgaard Knudsen The Executive Board and Board of Directors have today considered and adopted the Annual Report of 2care4 Generics ApS for the financial year 1 January - 31 December 2025. The Annual Report is prepared in accordance with the Danish Financial Statements Act. In our opinion the Financial Statements give a true and fair view of the financial position at 31 December 2025 of the Company and of the results of the Company operations for 2025. In our opinion, Management's Review includes a true and fair account of the matters addressed in the Review. We recommend that the Annual Report be adopted at the Annual General Meeting. Esbjerg V 2026-04-30 Erik Sandberg CEO Toke Værndal To the shareholder of 2care4 Generics ApS Opinion In our opinion, the Financial Statements give a true and fair view of the financial position of the Company at 31 December 2025 and of the results of the Company’s operations for the financial year 1 January - 31 December 2025 in accordance with the Danish Financial Statements Act.We have audited the Financial Statements of 2care4 Generics ApS 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 (”the Financial Statements”). Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the ”Auditor’s responsibilities for the audit of the Financial Statements” section of our report. We are independent of the 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 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 Financial Statements and has been prepared in accordance with the requirements of the Danish Financial Statements Act. We did not identify any material misstatement in Management’s Review. Management is responsible for the preparation of 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 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 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.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. Esbjerg 2026-04-30 PricewaterhouseCoopersStatsautoriseret Revisionspartnerselskab 33771231 Palle H. Jensen Lukasz Nidental State Authorised Public Accountant State Authorised Public Accountant mne32115 mne52103 2care4 Generics ApS Stenhuggervej 12 6710 Esbjerg V 36960566 Esbjerg Esbjerg Brygge 28, 2. 6700 Esbjerg Seen over a 5-year period, the development of the Company is described by the following financial highlights: 73414000 75691000 55863000 41160000 44649000 36161000 -678000 -377000 96000 31564000 34598000 29083000 170370000 170991000 127772000 0 0 149000 598000 0 86544000 74230000 44632000 29 28 23 20 15 0.138 0.170 0.242 0.261 0.283 0.434 0.607 0.508 0.434 0.349 0.174 0.208 0.393 0.582 0.967 Key activitiesThe Main activity of the company is to develop, import, produce and export generic pharmaceutical products.Development in the yearThe income statement of the Company for 2025 shows a profit of DKKm 11,2 and at 31 December 2025 the balance sheet of the Company shows a positive equity of DKKm 49,9.The past year and follow-up on development expectations from last yearThe Generics business has performed below expectations in 2025 because of lower performance and higher competitions on key products.Targets and expectations for the year aheadTargets and expectations for the financial year 2026 the company expects slightly increased activity, and a net profit level of DKK 15 - 20 mio.Research and developmentThe Generic business has increased their focus and investment in product development, including measures that within a few years in expected to generate increased revenue for the company.External environmentThe energy consumption and general environmental footprint from the 2care4 Generics activities are very limited and has limited impact on the surrounding environment. Since the medical products are purchased as commodities, the Company has little opportunity to assess and evaluate impacts on the environment in the supply chain. This given that there is no contact with the original producer as such and, therefore, the Company has no influence on the production phase at all.In our opinion, we as a Company comply with current legislation in the area, and we are in dialogue with our business partners concerning compliance with local legislation at the locations in the world where the Company´s products are manufactured. 2care4 Generics is managed by the headquarters in Denmark at which we ensure compliance with local Danish legislation.The Group CSR policy (see link below), includes the Company´s policy on Environment and Climate. Since the policy was established in 2020 the following initiatives have concretely been implemented; optimized waste disposal, change to LED lightning and electricity consumption based on 100% sustainable energy.https://www.epaper.dk/mss2care4/csrpolicy/csr-2care4-policy/Going forward, 2care4 Group will ongoingly update the CSR policy to optimise the energy consumption and environmental footprint.Uncertainty relating to recognition and measurementThere has been no uncertainty regarding recognition and measurement in the Annual Report.Subsequent eventsNo events materially affecting the assessment of the Annual Report have occurred after the balance sheet date. 52415000 57871000 30896000 30027000 5568000 5788000 15951000 22056000 647000 1567000 2283000 1618000 14315000 22005000 3108000 4812000 11207000 17193000 8936000 7555000 3513000 2009000 43424000 33209000 55873000 42773000 0 348000 0 348000 121000 121000 121000 121000 55994000 43242000 47595000 55748000 9875000 21121000 110000 6249000 1619000 1253000 11604000 28623000 0 2125000 59199000 86496000 115193000 129738000 50000 50000 40840000 31795000 9054000 46892000 49944000 78737000 11757000 9055000 1650000 1068000 13407000 10123000 0 11113000 0 278000 5101000 8387000 34224000 8558000 403000 3604000 12114000 8938000 51842000 40878000 51842000 40878000 115193000 129738000 50000 31795000 46892000 78737000 0 0 40000000 40000000 0 11743000 -11743000 0 0 2698000 -2698000 0 0 0 11207000 11207000 50000 40840000 9054000 49944000 28935000 28322000 1734000 1487000 227000 218000 30896000 30027000 Including remuneration to the Executive Board and Board of Directors:During the year, both a member of the Executive board and a member of the Board of directors resigned in December. Consequently, for the majority of the year the company had two members of the Executive board and two members of the Board of directors. Accordingly, the note on management and directors’ remuneration is presented for the year, reflecting these changes in the composition of the Executive board and the Board of directors. 1105000 962000 434000 479000 1539000 1441000 29 28 Amortisation of intangible assets4,4374,138Depreciation of property, plant and equipment121165Gain and loss on disposal1,0101,4855,5685,788 470000 1567000 2000 0 175000 0 647000 1567000 1128000 374000 1155000 1244000 2283000 1618000 406000 3605000 2702000 1207000 3108000 4812000 40000000 0 -28793000 17193000 22798000 2911000 33209000 450000 2283000 15838000 1233000 0 0 5623000 0 -5623000 27638000 5194000 43424000 15243000 902000 0 3658000 779000 0 -199000 0 0 18702000 1681000 0 8936000 3513000 43424000 5 years3 yearsDevelopment projects in progressDevelopment projects in progress comprise development and registration of generic pharmaceutical products. The costs include both external costs to business partners and internal working hours. Costs are registered in an internal project tool. The individual pharmaceutical product will be finished in the years 2026-2029. Afterwards, sales will start up. Overall, the products are expected to contribute with significant competitive advantages and therefore a substantial increase in activity level and result. The management has completed impairment test of the current book value of the assets. The recoverable amount, value in-use, exceeds the book value. Value in-use is calculated from expected cashflows based on management approved budgets through 2026-2031.Completed development projectsCompleted development projects include development and registration of pharmaceutical products for humans. Each product has a 5 year depreciation period, starting from when the product is launched in the market. The management has not established any indication for impairment of the current book value of the assets. 747000 747000 0 399000 121000 520000 0 0 3 years 121000 121000 121000 42949000 52025000 4646000 3723000 47595000 55748000 Deferred tax liabilities at 1 January9,0557,848Amounts recognised in the income statement for the year2,7021,207Deferred tax liabilities at 31 December11,7579,055 The recognized provision amounts to kDKK 1.650 (2024: kDKK 1.068) to cover the estimated reimbursement of price reductions to customers and to cover items at customers and profit on goods that most likely will be returned according to cooperation agreements. The provision is recognized based on previous experience regarding the extend of these liabilities.Other provisions1,6501,0681,6501,068The provisions are expected to mature as follows:Within 1 year1,6501,068After 5 years001,6501,068 Derivative financial instruments contracts in the form of forward exchange contracts have been concluded. At the balance sheet date, the fair value of derivative financial instruments amounts to:Liabilities0175Forward exchange contracts175175 Charges and securityThe following assets have been placed as security with bankers:As collateral for the multi-currency cash pool in the amount of kDKK 376.308, the company has issued af floating company charge at nominalvalue kDKK 150,000 including the following assets, which on the 31st of december 2025 amounts to kDKK.Trade receivables9,8750Inventories47,5950Intangible assets55,8730The Company participates in 2care4 Group ApS’s cash pool arrangements in Denmark, Sweden and Germany. By participating in this cash pool arrangements, all participants are jointly and severally liable for the total drawings under the arrangements.As of 31 December 2025, the cash pool arrangements show a total net debt of kDKK 376.308. Rental and lease obligationsThe following assets have been placed as security for rent obligations for a period of 28 months. (2024, 40 months)1,2601,332Other contingent liabilitiesThe group companies are jointly and severally liable for tax on the jointly taxed incomes etc of the Group. The total amount of corporation tax payable is disclosed in the Annual Report of 2care4 Group ApS, which is the management company of the joint taxation purposes. Moreover, the group companies are jointly and severally liable for Danish withholding taxes by way of dividend tax, tax on royalty payments and tax on unearned income. Any subsequent adjustments of corporation taxes and withholding taxes may increase the Company's liability.Other financial obligationsAs of December 31, 2025, the company has entered into a non-cancellable agreement to purchase goods for delivery in 2026. The total contractual obligation amounts to TDKK 494. Controlling interest2care4 Group ApS, EsbjergParent CompanyOther related partiesToke Værndal, EsbjergMember of the Board of DirectorsErik Sandberg, OdenseExecutive BoardTransactionsThe Company has chosen only to disclose transactions which have not been made on an arm's length basis in accordance with section 98(c)(6) of the Danish Financial Statements Act. No such transactions have occurred. Consolidated Financial StatementsThe Company is included in the Group Annual Report of the Parent Company of the largest and smallest group:2care4 Group ApSEsbjerg No events materially affecting the assessment of the Annual Report have occurred after the balance sheet date. The Annual Report of 2care4 Generics ApS for 2025 has been prepared in accordance with the provisions of the Danish Financial Statements Act applying to medium-sized enterprises of reporting class C.The Financial Statements for 2025 are presented in TDKK. During the financial year, the Company has reclassified certain items between staff costs and other external expenses. The comparative figures have been restated accordingly. The changes have no impact on profit for the year, equity or the financial position. However, gross profit has been negatively affected by DKKm 0,3 (2024: DKKm 0,3). With reference to section 86(4) of the Danish Financial Statements Act and to the cash flow statement included in the consolidated financial statements of 2care4 Group ApS, the Company has not prepared a cash flow statement. Recognition and measurementRevenues are recognised in the income statement as earned. Furthermore, value adjustments of financial assets and liabilities measured at fair value or amortised cost are recognised. Moreover, all expenses incurred to achieve the earnings for the year are recognised in the income statement, including depreciation, amortisation, impairment losses and provisions as well as reversals due to changed accounting estimates of amounts that have previously been recognised in the income statement.Assets are recognised in the balance sheet when it is probable that future economic benefits attributable to the asset will flow to the Company, and the value of the asset can be measured reliably.Liabilities are recognised in the balance sheet when it is probable that future economic benefits will flow out of the Company, and the value of the liability can be measured reliably.Assets and liabilities are initially measured at cost. Subsequently, assets and liabilities are measured as described for each item below. Leases in terms of which the Company assumes substantially all the risks and rewards of ownership (finance leases) are recognised in the balance sheet at the lower of the fair value of the leased asset and the net present value of the lease payments computed by applying the interest rate implicit in the lease or an alternative borrowing rate as the discount rate. Assets acquired under finance leases are depreciated and written down for impairment under the same policy as determined for the other fixed assets of the Company.The remaining lease obligation is capitalised and recognised in the balance sheet under debt, and the interest element on the lease payments is charged over the lease term to the income statement.All other leases are considered operating leases. Payments made under operating leases are recognised in the income statement on a straight-line basis over the lease term. Translation policiesTransactions in foreign currencies are translated at the exchange rates at the dates of transaction. Exchange differences arising due to differences between the transaction date rates and the rates at the dates of payment are recognised in financial income and expenses in the income statement. Where foreign exchange transactions are considered hedging of future cash flows, the value adjustments are recognised directly in equity.Receivables, payables and other monetary items in foreign currencies that have not been settled at the balance sheet date are translated at the exchange rates at the balance sheet date. Any differences between the exchange rates at the balance sheet date and the transaction date rates are recognised in financial income and expenses in the income statement; however, see the section on hedge accounting.Income statements of foreign subsidiaries and associates that are separate legal entities are translated at transaction date rates or approximated average exchange rates. Balance sheet items are translated at the exchange rates at the balance sheet date. Exchange adjustments arising on the translation of the opening equity and exchange adjustments arising from the translation of the income statements at the exchange rates at the balance sheet date are recognised directly in equity.Income statements of enterprises that are integrated entities are translated at transaction date rates or approximated average exchange rates; however, items derived from non-monetary balance sheet items are translated at the transaction date rates of the underlying assets or liabilities. Monetary balance sheet items are translated at the exchange rates at the balance sheet date, whereas non-monetary items are translated at transaction date rates. Exchange adjustments arising on the translation are recognised in financial income and expenses in the income statement. Derivative financial instruments are initially recognised in the balance sheet at cost and are subsequently remeasured at their fair values. Positive and negative fair values of derivative financial instruments are classified as ”Other receivables” and ”Other payables”, respectively.Changes in the fair values of derivative financial instruments are recognised in the income statement unless the derivative financial instrument is designated and qualify as hedge accounting. RevenueRevenue from the sale of goods is recognised when the risks and rewards relating to the goods sold have been transferred to the purchaser, the revenue can be measured reliably and it is probable that the economic benefits relating to the sale will flow to the Company.Revenue is measured at the consideration received and is recognised exclusive of VAT and net of discounts relating to sales. Expenses for raw materials and consumablesExpenses for raw materials and consumables comprise the raw materials and consumables consumed to achieve revenue for the year. Other external expensesOther external expenses comprise indirect production costs and expenses for premises, sales and distribution as well as office expenses, etc. Gross profitWith reference to section 32 of the Danish Financial Statements Act, gross profit/loss is calculated as a summary of revenue, expenses for raw materials and consumables and other external expenses. Staff expenses comprise wages and salaries as well as payroll expenses. Amortisation, depreciation and impairment lossesAmortisation, depreciation and impairment losses comprise amortisation, depreciation and impairment of intangible assets and property, plant and equipment. Financial income and expenses comprise interest, financial expenses in respect of finance leases, realised and unrealised exchange adjustments, price adjustment of securities, amortisation of mortgage loans as well as extra payments and repayment under the on-account taxation scheme. Tax on profit/loss for the yearTax for the year consists of current tax for the year and deferred tax for the year. The tax attributable to the profit for year is recognised in the income statement, whereas the tax attributable to equity transactions is recognised directly in equity.Any changes in deferred tax due to changes to tax rates are recognised in the income statement.The Company is jointly taxed with 2care4 Group ApS and all subsidiaries of the parent company. The tax effect of the joint taxation is allocated to enterprises in proportion to their taxable incomes. Intangible fixed assetsDevelopment projectsCosts of development projects comprise salaries, amortisation and other expenses directly or indirectly attributable to the Company’s development activities.Development projects that are clearly defined and identifiable and in respect of which technical feasibility, sufficient resources and a potential future market or development opportunity in the enterprise can be demonstrated, and where it is the intention to manufacture, market or use the project, are recognised as intangible assets. This applies if sufficient certainty exists that the value in use of future earnings can cover cost of sales, distribution and administrative expenses involved as well as the development costs.Development projects that do not meet the criteria for recognition in the balance sheet are recognised as expenses in the income statement as incurred.Capitalised development costs are measured at cost less accumulated amortisation and impairment losses or at a lower recoverable amount. An amount corresponding to the recognised development costs is allocated to the equity item 'Reserve for development costs'. The reserve comprises only development costs recognised in financial years beginning on or after 1 January 2016. The reserve is reduced by amortisation of and impairment losses on the development projects on a continuing basis.As of the date of completion, capitalised development costs are amortised on a straight-line basis over the period of the expected economic benefit from the development work. The amortisation period is 5 year. Other intangible fixed assetsOther intangible fixed assets are measured at cost less accumulated amortisation and less any accumulated impairment losses or at a lower value in use.Acquired licences are amortised over the period of the agreements, which is 3 years. Property, plant and equipment are measured at cost less accumulated depreciation and less any accumulated impairment losses.Cost comprises the cost of acquisition and expenses directly related to the acquisition up until the time when the asset is ready for use. Interest expenses on loans contracted directly for financing the construction of property, plant and equipment are recognised in cost over the construction period.Depreciation based on cost reduced by any residual value is calculated on a straight-line basis over the expected useful lives of the assets, which are:Other fixtures and fittings, tools and equipment3-5 years The residual value of other fixed assets is determined at nil.Depreciation period and residual value are reassessed annually. Impairment of fixed assetsThe carrying amounts of intangible assets and property, plant and equipment and investments are reviewed on an annual basis to determine whether there is any indication of impairment other than that expressed by amortisation and depreciation.The recoverable amount of the asset is calculated as the higher of net selling price and value in use. Where a recoverable amount cannot be determined for the individual asset, the assets are assessed in the smallest group of assets for which a reliable recoverable amount can be determined based on a total assessment.Goodwill, head office buildings and other assets for which a separate value in use cannot be determined as the asset does not on an individual basis generate future cash flows are reviewed for impairment together with the group of assets to which they are attributable. Other fixed asset investments consist of other receivables. InventoriesInventories are measured at the lower of cost under the FIFO method and net realisable value.The net realisable value of inventories is calculated at the amount expected to be generated by sale of the inventories in the process of normal operations with deduction of selling expenses and costs of completion. The net realisable value is determined allowing for marketability, obsolescence and development in expected selling price.The cost of goods for resale equals landed cost.The cost of finished goods and work in progress comprises the cost of raw materials, consumables and direct labour. Receivables are measured in the balance sheet at the lower of amortised cost and net realisable value, which corresponds to nominal value less provisions for bad debts. DividendDividend distribution proposed by Management for the year is disclosed as a separate Dividend item. ProvisionsProvisions are recognised when - in consequence of an event occurred before or on the balance sheet date - the Company has a legal or constructive obligation and it is probable that economic benefits must be given up to settle the obligation.Other provisions include reimbursement of price reductions to customers and to cover items at customers and profit on goods that probably will be returned according to cooperation agreements within the warranty period of 1 year. The provision is recognized based on previous experience regarding the extend of these liabilities. Deferred tax assets and liabilitiesDeferred tax is recognised in respect of all temporary differences between the carrying amount and the tax base of assets and liabilities. However, deferred tax is not recognised in respect of temporary differences concerning goodwill not deductible for tax purposes and other items - apart from business acquisitions - where temporary differences have arisen at the time of acquisition without affecting the profit for the year or the taxable income.Deferred tax is measured on the basis of the tax rules and tax rates that will be effective under the legislation at the balance sheet date when the deferred tax is expected to crystallise as current tax. In cases where the computation of the tax base may be made according to alternative tax rules, deferred tax is measured on the basis of the intended use of the asset and settlement of the liability, respectively.Deferred tax assets, including the tax base of tax loss carry-forwards, are measured at the value at which the asset is expected to be realised, either by elimination in tax on future earnings or by set-off against deferred tax liabilities.Deferred tax assets and liabilities are offset within the same legal tax entity. Current tax receivables and liabilitiesCurrent tax receivables and liabilities are recognised in the balance sheet at the amount calculated on the basis of the expected taxable income for the year adjusted for tax on taxable incomes for prior years. Tax receivables and liabilities are offset if there is a legally enforceable right of set-off and an intention to settle on a net basis or simultaneously. Debts are measured at amortised cost, substantially corresponding to nominal value. Financial HighlightsExplanation of financial ratiosReturn on assetsProfit/loss of primary operations x 100 / Total assets at year endSolvency ratioEquity at year end x 100 / Total assets at year endReturn on equityNet profit for the year x 100 / Average equity