39183056 2024-01-01 2024-12-31 39183056 2024-01-01 2024-12-31 1 39183056 2024-01-01 2024-12-31 2 39183056 2023-01-01 2023-12-31 39183056 2024-12-31 39183056 2023-12-31 39183056 2022-12-31 fsa:ContributedCapitalMember 39183056 2023-01-01 2023-12-31 fsa:ContributedCapitalMember 39183056 2022-12-31 fsa:ReserveForDevelopmentExpenditureMember 39183056 2023-01-01 2023-12-31 fsa:ReserveForDevelopmentExpenditureMember 39183056 2022-12-31 fsa:RetainedEarningsMember 39183056 2023-01-01 2023-12-31 fsa:RetainedEarningsMember 39183056 2022-12-31 39183056 2023-12-31 fsa:ContributedCapitalMember 39183056 2024-01-01 2024-12-31 fsa:ContributedCapitalMember 39183056 2024-12-31 fsa:ContributedCapitalMember 39183056 2023-12-31 fsa:ReserveForDevelopmentExpenditureMember 39183056 2024-01-01 2024-12-31 fsa:ReserveForDevelopmentExpenditureMember 39183056 2024-12-31 fsa:ReserveForDevelopmentExpenditureMember 39183056 2023-12-31 fsa:RetainedEarningsMember 39183056 2024-01-01 2024-12-31 fsa:RetainedEarningsMember 39183056 2024-12-31 fsa:RetainedEarningsMember 39183056 2024-01-01 2024-12-31 1 39183056 2024-01-01 2024-12-31 2 39183056 2024-01-01 2024-12-31 1 39183056 2024-01-01 2024-12-31 2 39183056 2024-01-01 2024-12-31 3 39183056 2024-01-01 2024-12-31 4 iso4217:DKK xbrli:pure Anne Nord Innargi A/S Amerika Plads 29 2100 København Ø 39183056 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab Management ReviewInnargi’s business model is distinguished by its assumption of full responsibility and associated subsurface risks ranging from initial exploration and test drilling to the delivery of heat to district heating companies. This model ensures that district heating companies and their customers are shielded from unforeseen added cost, as such risks remain with Innargi. During 2024, the Group’s subsidiary, Innargi Project II P/S, entered into a 30-year heat supply agreement with Vestforbrænding for a geothermal project located in Virum, Denmark. The project remains in its initial development phase, with a seismic survey successfully completed in 2024 to evaluate the geothermal potential of the site. In Aarhus, Denmark, the Group’s long-term project with the district heating company Kredsløb advanced significantly in 2024. The first appraisal well, drilled in early 2024, confirmed satisfactory tempera- ture parameters but revealed suboptimal water flow. Following further analysis and testing, it was concluded that no commercially viable development plan currently supports continued development at that location, and the related well costs have accordingly been impaired in 2024. However, subsequent drilling of two additional appraisal wells in Skejby, Aarhus, in spring 2024 demonstrated both favourable temperature and flow characteristics. As a result, construction of the first geothermal plant in Aarhus commenced in the second half of 2024, with commissioning scheduled for mid-2025. The facility is expected to operate for a minimum of 30 years. The Skejby develop- ment marks a first-of-its-kind project in Aarhus, with further phases anticipated to begin in 2025–2026. In parallel, Innargi expanded its strategic collaborations across Denmark, Poland, and Germany, assessing and advancing a project portfolio comprising 12 geothermal prospects during 2024. These developments reflect Innargi’s growing role in accelerating the adoption of large-scale renewable heating solutions across multiple European markets. As of year-end 2024, the number of employees increased from 66 to 78, reflecting the Group’s continued organisational growth to support its operational and development activities. RESULT FOR THE YEAR Net loss for the year after tax amounted to DKK 144m (DKK 129m). 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 2024. As of 31 December 2024, the equity amounted to DKK 454m (DKK 223m). Innargi’s strategic ambition is to decarbonise district heating systems on an industrial scale by harnessing the potential of geothermal energy through a unique and scalable business model. In Denmark, geothermal energy has the potential to supply baseload heat to a large number of large and mid-size district heating networks internationally, particularly in Central and Eastern Europe, where cities are actively phasing out coal, gas, and biomass in pursuit of climate neutrality and enhanced energy independence the potential is even greater. According to a study by the European Commission geothermal energy could provide 30- 45% of the EU’s district heating supply. As a renewable and locally sourced energy, geothermal heating offers zero direct emissions and can be nearly carbon-neutral when integrated with solar and wind energy sources, thereby enhancing urban energy security. 12449000 13977000 44515000 59153000 102520000 76240000 10069000 8586000 -144655000 -130002000 894000 1816000 781000 935000 -144542000 -129121000 -501000 -254000 -144041000 -128867000 -7154000 -742000 -136887000 -128125000 52710000 59864000 52710000 59864000 2263000 2815000 0 1257000 9050000 1106000 11313000 5178000 398282000 143791000 8072000 7455000 0 144000 406354000 151390000 470377000 216432000 654000 48000 11826000 18769000 2555000 275000 2034000 1138000 17069000 20230000 13676000 21248000 30744000 41478000 501121000 257910000 500000 500000 52710000 59864000 400672000 162560000 453882000 222924000 1505000 505000 5218000 0 6723000 505000 2636000 1294000 3970000 5859000 13781000 4132000 0 2596000 20129000 20600000 40516000 34481000 47240000 34986000 501121000 257910000 500000 60606000 20685000 81791000 0 0 270000000 270000000 0 -742000 -128125000 500000 59864000 162560000 0 0 375000000 375000000 0 -7154000 -136887000 500000 52710000 400672000 Note 1: Staff costs Amounts in TDKK 2024 2023 Wages and salaries 102,218 76,035 Other social security costs 302 205 Total 102,520 76,240 73 45 Note 2: Depreciation and impairment losses No impairments have been recognised in respect of development projects. Note 3: Other financial income Amounts in TDKK 2024 2023 Interest income, affiliates 448 168 Other financial income 446 1,648 Total 894 1,816 Note 4: Tax on profit/loss for the year Amounts in TDKK 2024 2023 Tax on profit/loss for the year 501 48 Adjustment of tax concerning previous years 0 206 Adjustment of deferred tax 0 0 Total 501 254 Note 5: Completed development projects, including patents The Group is actively engaged in scaling up geothermal heating in Denmark and abroad. Geothermal energy remains an underutilised renewable energy source with the potential to supply approximately 30- 45% of the EU’s district heating supply. Innargi’s mission is to make geothermal heating broadly acces- sible and cost-competitive by leveraging economies of scale and offering a turnkey model that covers exploration, construction, and long-term operation. This structure ensures that district heating compa- nies and their customers are not exposed to financial risk if projects do not proceed as planned. In January 2022, Innargi entered into a 30-year heat supply agreement with Kredsløb for the develop- ment of a geothermal heating plant in Aarhus, Denmark. In 2024, a similar long-term agreement was signed with Vestforbrænding for a project in Virum, Denmark. The Virum project is in its initial development phase. Innargi’s fully owned subsidiary Innargi Project II P/S acquired seismic during the second half of 2024 confirming the subsurface potential. The project is planned for development and execution in the coming years with heat delivery expected in 2028. The Aarhus project, which is being developed by the Group’s subsidiary Innargi Project I P/S, pro- gressed through multiple development stages in 2024. In the first half of the year, the first appraisal well was completed. While temperature readings were in line with expectations, water flow rates were insuffi- cient to support a commercial development plan. Following testing and analysis, the associated well costs were impaired in the 2024 financial statements for the subsidiary. In spring 2024, two additional appraisal wells were successfully drilled in Skejby, Aarhus, both demon- strating adequate temperature and flow characteristics. As a result, construction of the first geothermal plant commenced in the second half of 2024. The plant is expected to be completed and commissioned in 2025, with an anticipated operational lifespan of at least 30 years. 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, Amerika Plads 29, DK-2100 København Ø. Note 7: Contingent assets The value of tax losses carry forward amount to DKK 100.4 million as of 31 December 2024. The tax asset 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 and Innargi Project II P/S. Note 10: Events after the balance sheet date No events have occurred after the balance sheet date that materially affect the annual report. Note 11: Significant accounting policies The Financial Statements are presented in DKK. Unless otherwise stated, comparative figures for 2023 are presented in brackets. Note 11: Significant accounting policies (continued) 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. Share-based payment The company has established a warrant program for senior staff and key employees. The warrants vest over 36 months, with a one-year cliff, after which 1/3 vests, followed by monthly vesting over the next 24 months. The estimated fair value of the program is recognized over the period from May 2024 – April 2027. 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 11: Significant accounting policies – continued 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 product or process in question, are recognised as intangible assets. Other development costs are rec- ognised 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 2023, 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. Note 11: Significant accounting policies - continued 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. true With reference to section 110 of the Danish Financial Statements Act, the company has not prepared consolidated financial statements. true Management’s Statement 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 2024. 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 2024 of the company and of the results of the company operations for 2024. 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. Copenhagen Samir Abboud Lars Bjørn Heineke Claus Michael Valentin Hemmingsen Chairperson Anders Eldrup Edda Sif Pind Aradóttir Pernille Lyngvold Erenbjerg Independent Auditor’s Report To the shareholder of Innargi A/S OPINION In our opinion, the Financial Statements give a true and fair view of the financial position of the Company at 31 December 2024, and of the results of the Company’s operations for the financial year 1 Janu- ary - 31 December 2024 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 2024, 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 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 Professional Accountants (IESBA Code) and the additional ethical re- quirements 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 respon- sibility 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, 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 Com- pany or to cease operations, or has no realistic alternative but to do so. AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS Our objectives are to obtain reasonable assurance about whether the Financial Statements as a whole are free from material misstate- ment, 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 accord- ance with ISAs and the additional requirements applicable in Den- mark will always detect a material misstatement when it exists. Mis- statements 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 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 2024-01-01 2024-12-31 2023-01-01 2023-12-31 2025-04-29 Reporting class B 2017-12-21 www.innargi.com 2025-04-29 529900VSWLQF0O3GA946 Strandvejen 44 Hellerup 2900 Opinion Basis for Opinion 2025-04-29 33771231 33771231 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab