39183056 2023-01-01 2023-12-31 39183056 2023-01-01 2023-12-31 2 39183056 2022-01-01 2022-12-31 39183056 2023-12-31 39183056 2022-12-31 39183056 2020-12-31 fsa:ContributedCapitalMember 39183056 2021-01-01 2021-12-31 fsa:ContributedCapitalMember 39183056 2021-12-31 fsa:ContributedCapitalMember 39183056 2020-12-31 fsa:ReserveForDevelopmentExpenditureMember 39183056 2021-01-01 2021-12-31 fsa:ReserveForDevelopmentExpenditureMember 39183056 2021-12-31 fsa:ReserveForDevelopmentExpenditureMember 39183056 2020-12-31 fsa:RetainedEarningsMember 39183056 2021-01-01 2021-12-31 fsa:RetainedEarningsMember 39183056 2021-12-31 fsa:RetainedEarningsMember 39183056 2020-12-31 39183056 2021-01-01 2021-12-31 39183056 2021-12-31 39183056 2022-01-01 2022-12-31 fsa:ContributedCapitalMember 39183056 2022-12-31 fsa:ContributedCapitalMember 39183056 2022-01-01 2022-12-31 fsa:ReserveForDevelopmentExpenditureMember 39183056 2022-12-31 fsa:ReserveForDevelopmentExpenditureMember 39183056 2022-01-01 2022-12-31 fsa:RetainedEarningsMember 39183056 2022-12-31 fsa:RetainedEarningsMember 39183056 2023-01-01 2023-12-31 fsa:ContributedCapitalMember 39183056 2023-12-31 fsa:ContributedCapitalMember 39183056 2023-01-01 2023-12-31 fsa:ReserveForDevelopmentExpenditureMember 39183056 2023-12-31 fsa:ReserveForDevelopmentExpenditureMember 39183056 2023-01-01 2023-12-31 fsa:RetainedEarningsMember 39183056 2023-12-31 fsa:RetainedEarningsMember 39183056 2023-01-01 2023-12-31 1 39183056 2023-01-01 2023-12-31 1 39183056 2023-01-01 2023-12-31 1 39183056 2023-01-01 2023-12-31 2 39183056 2023-01-01 2023-12-31 3 39183056 2023-01-01 2023-12-31 4 iso4217:DKK xbrli:pure 39183056 Anne Nord Innargi A/S Lyngby Hovedgade 85 2800 Kongens Lyngby www.innargi.com PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab Management Review The ambition of Innargi is to decarbonise heat for district heating systems on an industrial scale by unlocking the potential of geothermal heating with our unique business model. In Denmark, geothermal energy has the potential to cover approx. 30% of Denmark´s energy demand for district heating. Outside of Denmark, the potential is larger, as European cities are phasing out coal, gas, and biomass to meet green climate targets and achieve higher energy independence. Geothermal heating has zero emissions and is close to carbon neutral when partnered with solar and wind. It is a local energy, creating energy security for cities and communities. Innargi has developed a business model in which Innargi assumes responsibility and risks related to the subsurface, from the initial test drilling to supplying the energy from the warm water to the district heating company. That way, both the district heating companies and their customers can be certain that there will be no unanticipated added costs even if things do not go as planned as this risk is sitting with Innargi. During 2023, the companys subsidiary, Innargi Project I P/S, further progressed the project agreed with the district heating company Kredsløb (formerly AffaldVarme Aarhus) to develop and operate a geothermal heating plant in Aarhus, Denmark. Towards the end of the year, drilling operations were initiated, and the first two appraisal wells were completed in January and March 2024 respectively. Test results are currently being evaluated. Subject to a successful ap-praisal process, the geothermal plant will be completed in 2030 with an expected operation of at least 30 years. Fully developed, the planned capacity of the geothermal heating plant is 110 MW, equal-ling 20% of Aarhus district heating demand, and the annual CO2 emissions are expected to be reduced by up to 165,000 tonnes. In 2023, Innargi continued its collaboration with district heating com-panies to explore the potential for delivery of geothermal energy in, among other areas, Copenhagen, Denmark, Poznan, Poland, and Kiel, Germany. The companys parent company, Innargi Holding A/S, concluded a second investment round with its main shareholders, ATP, the larg-est pension fund in Denmark, NRGi, a Danish co-operative utility company, and A.P. Moller Holding, the parent company of the A.P. Moller Group. Innargi A/S continued to develop the organisational capabilities and competencies enabling the performance and continued development of the company. During 2023, the number of employees increased from 29 to 66. RESULT FOR THE YEAR Net loss for the year after tax amounted to DKK 128.9m (DKK 60.3m). The result for the year is affected by increased activity and scale up of the organisation. The result for the year is proposed transferred to retained earnings. No dividend is proposed for 2023. As of 31 December 2023, the equity amounted to DKK 222.9 m (DKK 81.8m). 59153000 22948000 76240000 36362000 8586000 2625000 13977000 6235000 -130002000 -55700000 1816000 118000 935000 159000 -129121000 -55741000 -254000 4574000 -128867000 -60315000 -742000 20333000 -128125000 -80648000 59864000 53686000 0 6920000 59864000 60606000 2815000 1964000 1257000 1698000 1106000 1240000 5178000 4902000 143791000 22519000 7455000 0 144000 142000 151390000 22661000 216432000 88169000 48000 0 18769000 5975000 275000 2523000 1138000 0 20230000 8498000 21248000 7370000 41478000 15868000 257910000 104037000 500000 500000 59864000 60606000 162560000 20685000 222924000 81791000 505000 400000 0 792000 505000 1192000 1294000 740000 5859000 7945000 4132000 1000 2596000 4153000 20600000 8215000 34481000 21054000 34986000 22246000 257910000 104037000 500000 40273000 26333000 67106000 0 0 0 0 500000 40273000 26333000 67106000 0 0 75000000 75000000 0 20333000 -80648000 500000 60606000 20685000 0 0 270000000 270000000 0 -742000 -128125000 500000 59864000 162560000 Note 1: Staff cost Amounts in DKK ‘000 2023 2022 Wages and salaries - 76,035 - 35,042 Other social security costs - 205 - 1,320 Total staff costs - 76,240 - 36,362 45 18 Note 2: Depreciation and impairment losses No impairments have been recognised in respect of development projects. Note 3: Other financial income Amounts in DKK ‘000 2023 2022 Interest income, affiliates 168 92 Other financial income 1,648 26 Total 1,816 118 Note 4: Tax on profit/loss for the year Amounts in DKK ‘000 2023 2022 Tax on profit/loss for the year 48 0 Adjustment of tax concerning previous years 206 -9,366 Adjustment of deferred tax 0 4,792 Total 254 -4,574 Note 5: Finalised development projects and projects under development The company is working towards introducing geothermal heating on a large scale in and outside of Den-mark. Geothermal energy is a renewable and currently almost untapped energy source with the poten-tial to cover approx. 30% of Denmark´s energy supply for district heating. Outside of Denmark, the po-tential is larger, as European cities are phasing out coal, gas, and biomass to meet green climate targets and achieve higher energy independence. A team of specialists with extensive experience from large, complex, and capital-intensive projects de-veloping the subsurface has been brought together. Such competencies are key in order to exploit geo-thermal energy. To be ready for the next phases of the project, the organisation is scaling up. Innargi’s ambition is to utilise geothermal energy on a large scale so we can lower the costs and offer the district heating companies – and the consumers – renewable heating at prices that are competitive today. Our business model means that we are responsible for exploration, construction and operation of the plants. Hence, the consumers will not end up paying the bill if things should not proceed as planned. In January 2022, Innargi entered into a 30-year agreement with the district heating company Kredsløb (formerly AffaldVarme Aarhus) to develop and operate a geothermal heating plant in Aarhus, Denmark. Subject to a successful appraisal process, the geothermal plant will be completed in 2029 with an ex-pected operation of at least 30 years. The project is be developed by the company’s subsidiary Innargi Project I P/S. During 2023, the project progressed according to plan with drilling operations initiated to-wards the end of the year. The first appraisal well was completed in January 2024 and the second ap-praisal well was completed in March 2024. Certain development projects relating to building the organisational competences and technical capabili-ties required to fulfil the company’s ambition is capitalised as intangible assets. During 2022, the company initiated a study regarding the design of geothermal facilities which were completed in 2023 at a total cost of DKK 12,697 thousand. The design is intended to be deployed in the Aarhus project but is also intended to be used for other projects. Note 6: Related parties The company has not entered into any transactions with related parties that were not on an arm’s length basis. The company is included in the consolidated financial statements of Innargi Holding A/S, Business Reg-istration No 40 56 96 42, Lyngby Hovedgade 85, DK-2800 Kongens Lyngby. Note 7: Contingent assets The value of tax losses carry forward amount to DKK 47.4 million as of 31 December 2023. The tax as-set is not recognised in the balance sheet, as it is unknown when the company will be able to utilise the tax asset. Note 8: Contingent liabilities The company was included in national joint taxation with Danish companies in the A.P. Møller Holding group until 3 February 2022, and afterwards with companies in the Innargi Holding group. The company is jointly and severally liable for the payment of taxes and withholding tax. Note 9: Guarantees The company has provided a letter of support to the company’s subsidiary Innargi Project I P/S. true With reference to section 110 of the Danish Financial Statements Act, the company has not prepared consolidated financial statements. The Financial Statements are presented in DKK. Unless otherwise stated, comparative figures for 2022 are presented in brackets. FOREIGN CURRENCY TRANSLATION Transactions in currencies other than the functional currency are translated at the exchange rate pre-vailing on the date of the transaction. Monetary items in foreign currencies not settled at the balance sheet date are translated at the exchange rate as per the balance sheet date. Foreign exchange gains and losses are included in the income statement as financial income or expenses. INCOME STATEMENT Other external expenses Other external expenses comprise expenses for administration, office supplies, advisory fee, etc. Staff costs Staff costs include wages and salaries, including compensated absence, as well as other social security contributions and board fees. Other income Other income comprise service fees and option premium. Financial income and expenses Other financial items comprise bank fees, interest and net exchange gains and losses on transactions in foreign currencies etc. Tax Tax comprises an estimate of current and deferred income tax as well as adjustments to previous years of those. Tax is recognised in the income statement to the extent it arises from items recognised in the income statement. Note 10: Significant accounting policies BALANCE SHEET Intangible assets Development projects on clearly defined and identifiable products and processes, for which the tech-nical rate of utilisation, adequate resources and a potential future market or development opportunity in the enterprise can be established, and where the intention is to manufacture, market or apply the prod-uct or process in question, are recognised as intangible assets. Other development costs are recog-nised as costs in the income statement as incurred. The cost of development projects comprises costs such as salaries and other costs that are directly and indirectly attributable to the development projects. Completed development projects are amortised on a straight-line basis. During the year, the useful life of completed development projects were reassessed and changed from 32 years to 10 years. Projects in progress are not amortised, but are annually tested for impairment. Development projects are written down to the lower of recoverable amount and carrying amount. Patents are measured at cost less accumulated amortised and write-downs or at recoverable amount, if lower. Patents are amortised over the remaining patent term or a shorter economic life. Fixed assets Fixed assets comprise equipment and leasehold improvements and are measured at cost less accumu-lated depreciation and impairment losses. Cost comprises the acquisition price as well as costs directly associated with the asset until such time as the asset is ready for its intended use as well as the net present value of estimated costs of removal and restoration. Depreciation is charged to the income statement on a straight-line basis over the useful lives at an esti-mated residual value. The useful lives are typically as follows: Equipment including furniture 5 years Leasehold 3 years Estimated useful lives and residual value are reassessed on a regular basis. Leases Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabili-ties include the net present value of the expected future lease payments. Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining bal-ance of the liability for each period. Right-of-use assets are initially equal to the capitalised lease liability adjusted for any upfront payments or expected future restoration costs. Right-of-use assets are presented as property, plant and equip-ment and depreciated over the lease term. Investments in subsidiaries Investments in subsidiaries are measured at cost. The investments are written down to recoverable amount (i.e., the higher of fair value less costs of disposal and value in use) if it is lower than the carry-ing amount. Dividends received from subsidiaries are recognised as income from subsidiaries. Receivables Receivables are generally recognised at nominal value, substantially corresponding to amortised cost and impaired for expected losses. Impairment of receivables are based on the expected loss model as described in IFRS 9. Cash and bank balances Cash and bank balances comprises cash in bank deposits. Deferred tax Deferred tax is provided for, based on the difference between the carrying amount and the tax base of assets and liabilities. Deferred tax is not recognised in respect of goodwill which cannot be deducted or amortised for tax purposes, or in respect of temporary differences which at the date of transaction do not affect either profit for the year or taxable income. Moreover, no provision is made for deferred tax on differences relating to investments in subsidiaries and associates to the extent that taxable distribution is not likely in the near future. Deferred tax assets are recognised solely to the extent that the tax asset is likely to be utilised within the near future. Liabilities Other financial liabilities are measured at amortised cost, substantially corresponding to nominal value. Provisions Provisions comprises net present value of estimated costs of removal and restoration of leasehold im-provements. false The Executive Board and Boards of Directors have today considered and adopted the Annual Report of Innargi A/S for the fi-nancial year 1 January31 December 2023. The Annual Report is prepared in accordance with the Danish Finan-cial Statements Act. In our opinion, the financial statements give a true and fair view of the financial position at 31 December 2023 of the company and of the results of the company operations for 2023. In our opinion, management review includes a true and fair account of the development in the operations and financial circumstances of the company, of the results for the year and of the financial position of the company as well as a description of the most significant risks and elements of uncertainty facing the company. We recommend that the Annual Report is adopted at the Annual General Meeting.Managements Statement Kongens Lyngby, Samir Abboud Claus Michael Valentin Hemmingsen Chairperson Anders Eldrup Edda Sif Pind Aradóttir Pernille Lyngvold Erenbjerg OPINION In our opinion, the Financial Statements give a true and fair view of the financial position of the Company at 31 December 2023, and of the results of the Company’s operations for the financial year 1 Janu-ary - 31 December 2023 in accordance with the Danish Financial Statements Act. We have audited the Financial Statements of Innargi A/S for the fi-nancial year 1 January - 31 December 2023, which comprise income statement, balance sheet, statement of changes in equity and notes, including a summary of significant accounting policies (“financial statements”). BASIS FOR OPINION We conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional requirements applicable in Den-mark. 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 Stand-ards Board for Accountants’ International Code of Ethics for Profes-sional 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 ob-tained is sufficient and appropriate to provide a basis for our opinion. STATEMENT ON MANAGEMENT REVIEW Management is responsible for Management’s Review. Our opinion on the financial statements does not cover Manage-ment’s Review, and we do not express any form of assurance con-clusion thereon. In connection with our audit of the financial statements, our responsi-bility is to read Management’s Review and, in doing so, consider whether Management’s Review is materially inconsistent with the fi-nancial 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 Finan-cial Statements Act. We did not identify any material misstatement in Management’s Review. MANAGEMENT’S RESPONSIBILITIES FOR THE FINANCIAL STATEMENTS Management is responsible for the preparation of Financial State-ments that give a true and fair view in accordance with the Danish Fi-nancial Statements Act, and for such internal control as Management determines is necessary to enable the preparation of financial state-ments 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, dis-closing, as applicable, matters related to going concern and using the going concern basis of accounting in preparing the financial state-ments unless Management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Independent Auditor’s Report To the shareholder of Innargi A/S AUDITORS RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors report that in-cludes our opinion. Reasonable assurance is a high level of assur-ance, 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, individu-ally or in the aggregate, they could reasonably be expected to influ-ence the economic decisions of users taken on the basis of these fi-nancial statements. As part of an audit conducted in accordance with ISAs and the addi-tional requirements applicable in Denmark, we exercise professional judgement and maintain professional scepticism throughout the au-dit. We also: • Identify and assess the risks of material misstatement of the fi-nancial 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 ba-sis for our opinion. The risk of not detecting a material misstate-ment resulting from fraud is higher than for one resulting from error as fraud may involve collusion, forgery, intentional omis-sions, 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 disclo-sures 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 conclu-sions 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 in-ternal control that we identify during our audit. Copenhagen, PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab 33771231 Thomas Wraae Holm State Authorised Public Accountant mne30141 Henrik Kyhnauv State Authorised Public Accountant mne40028 Annual report Auditor's report on audited financial statements ParsePort XBRL Converter 2023-01-01 2023-12-31 2022-01-01 2022-12-31 2024-04-24 Reporting class B 2017-12-21 2024-04-24 33771231 Strandvejen 44 Hellerup 2900 Opinion Basis for Opinion 2024-04-24 33771231 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab