Årsrapport 30700228 EY Godkendt Revisionspartnerselskab Dirch Passers Allé 36 Postboks 250, 2000 Frederiksberg 2023-01-01 2023-12-31 2022-01-01 2022-12-31 54037317 Goodyear Danmark A/S Alexandriagade 8 2150 Nordhavn 1925-06-30 Gentofte www.goodyear.dk PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab 33771231 Strandvejen 44 2900 Hellerup 2024-05-02 Henrik Juul Hansen Regnskabsklasse C, mellemstor virksomhed Revisionspåtegning Grundlag for konklusion Konklusion true 2024-05-02 2024-05-02 CaseWare Working Papers Copenhagen Sturmius Johannes Wehner Director Chantal Emma Filippa Grönvall Director Henrik Juul Hansen Chairman Sturmius Johannes Wehner Claes Hedström Hellerup Henrik Hornbæk State Authorised Public Accountant mne32802 32909000 22168000 28019000 6106000 -4000 3434000 -717000 -637000 -167000 -187000 -345000 7450000 -159000 2381000 724000 1063000 613000 263000 482000 Fixed assets Fixed assets Fixed assets Fixed assets Fixed assets 77913000 59603000 58537000 39505000 53656000 Non-fixed assets Non-fixed assets Non-fixed assets Non-fixed assets Non-fixed assets 59150000 39768000 54138000 94000 806000 568000 5000 813000 500000 500000 500000 500000 500000 Share capital Share capital Share capital Share capital Share capital 12288000 4838000 4997000 73547000 49910000 46496000 34836000 48884000 Current liabilities other than provisions Current liabilities other than provisions Current liabilities other than provisions Current liabilities other than provisions Current liabilities other than provisions 1.3 8.1 12.3 0 6.6 10.3 29.4 87 -3.2 62.6 12 11 11 27476000 29556000 15174000 14685000 10593000 10016000 1709000 4855000 242000 113000 959000 750000 992000 4218000 222000 933000 770000 3285000 724000 1063000 724000 1063000 724000 1063000 71660000 55419000 4926000 2487000 1232000 1454000 91000 152000 77909000 59512000 4000 91000 77913000 59603000 78637000 60666000 500000 500000 3643000 3573000 700000 6000000 4843000 10073000 247000 683000 247000 683000 477000 380000 6130000 4315000 24227000 22363000 29576000 13599000 13137000 9253000 73547000 49910000 73794000 50593000 78637000 60666000 500000 6288000 5500000 -2715000 6000000 0 5500000 500000 3573000 6000000 70000 700000 0 6000000 500000 3643000 700000 10269000 10048000 1042000 1022000 27000 28000 341000 246000 11679000 11344000 13 13 242000 113000 814000 480000 116000 230000 29000 40000 222000 933000 700000 6000000 70000 -2715000 1368000 94000 1462000 305000 433000 738000 724000 -1454000 -2387000 -27000 -27000 -23000 -26000 -1182000 -1401000 724000 477000 247000 0 Today, the Board of Directors and the Executive Board have discussed and approved the annual report of Goodyear Danmark A/S for the financial year 1 January - 31 December 2023. 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 of the Company at 31 December 2023 and of the results of the Company's operations for the financial year 1 January - 31 December 2023. Further, in our opinion, the Management's review gives a fair review of the matters discussed in the Management's review. We recommend that the annual report be approved at the annual general meeting. To the shareholder of Goodyear Danmark A/S 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 January - 31 December 2023 in accordance with the Danish Financial Statements Act. We have audited the Financial Statements of Goodyear Danmark A/S for the financial 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”). 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 judgment and maintain professional skepticism 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. The financial ratios stated under "Financial highlights" have been calculated as follows: Operating profit/loss Profit/loss before net financials +/- Other operating income and other operating expenses Return on assets Profit/loss from operating activites x 100 Average assets Return on equity Profit/loss after tax x 100 Average equity Principal activities The principal activities of the company are import and distribution of tires for passenger cars, trucks, motorcycles and other vehicles to retailers, car dealerships and wholesalers, who in turn sell the products to their end customers in Denmark. Examples of brands included in the product range are Goodyear, Dunlop, Fulda, Debica and Sava. The Management of Goodyear Danmark A/S recognizes that Net Sales for 2023 increased by 2,49% vs. 2022, while the Gross Profit of 27,48 MDKK decreased by 7,04% vs. 2022 which is within the expected interval between 27-31 MDKK. The profit for the year 2023 of 0.77 MDKK (2022: 3,3 MDKK) is in line with Management´s expectations, as the operating margin was reduced from target 1% to 0,6% effective January 2023, as a result of increased cost of goods sold. The management considers the result of 2023 to be satisfactory. Goodyear Danmark A/S Net Sales for the full year 2024 is expected to increase by app 1,5% vs. 2023. The estimated increase is driven by increased volume as well as improved gross margin due to favorable Price and Mix in both Consumer and Commercial product business units. Price risks The company is a sales company and does not purchase raw materials. All raw material purchases and manufacturing is performed in other group companies who sell tires to Goodyear Danmark A/S, to sell in the local market. There is a risk, for the Goodyear Group, that raw material price increases cannot be passed on to the customer. The company does not consider this risk to have material impact on sales, since it would affect competition equally. Currency risks The company sells tires on the Danish market in DKK, while tires are purchased from a group company in EUR, hence the company is affected by fluctuations in exchange rates. It is the company´s policy not to hedge commercial currency risks. Interest rate risk The company does not hold any external debt. As the interest-bearing debt is intercompany and given the current and forecasted low level of interest rates, the company does not consider this risk to have material impact on earnings. The current interest rate on the intercompany cashpool was decreased effective January 2023 due to lower cost of capital for the Group. It is crucial for the company to be able to attract and keep employees with the right level of education and/ or experience. This applies for the sales force employed by the Danish company as well as for the employees in the Swedish company serving all Nordic entities. The company has a legal producer responsibility for the tires the company sell on the local market. The legislated producer responsibility is set to ensure old tires are disposed of in an environmentally acceptable manner. In Denmark this responsibility is fulfilled by reporting and paying environmental taxes to the Danish tax authorities. Goodyear Danmark A/S is wholly owned by the parent company The Goodyear Tire & Rubber Company. The Goodyear Tire & Rubber Company annually publishes a sustainability report ("Corporate Responsibility Report") which covers the entire global group's operations. The majority of the global group's factories have environmental management systems that are certified in accordance with ISO 14001. The transport agreements that exist between suppliers and companies in the global group state that the supplier of freight shall have the quality standards ISO 14001 and ISO 9001: 2000. The policy regarding Environmental, Health & Safety sets out requirements regarding, among other things, setting group-wide goals to reduce environmental impact, increase sustainability of materials, processes and products and to minimize waste and greenhouse gas emissions. The research and development activities are carried out in other group companies. Development activities primarily consist of the development of more efficient products with better grip that are safer and lasts longer. The annual report of Goodyear Danmark A/S for 2023 has been prepared in accordance with the provisions in the Danish Financial Statements Act applying to medium-sized reporting class C entities. The accounting policies used in the preparation of the financial statements are consistent with those of last year. With reference to section 86(4) of the Danish Financial Statements Act, no cash flow statement has been prepared. The Company's cash flows are reflected in the consolidated cash flow statement for the higher-ranking parent company Goodyear Dunlop Tires Europe B.V. Income is recognised in the profit and loss account concurrently with its realisation, including the recognition of value adjustments of finansial assets and liabilities. Likewise, all costs, these including depreciation, amortisation, writedown, provisions and reversals which are due to changes in estimated amounts previously recognised in the profit and loss account are recognised in the profit and loss account. Assets are recognised in the balance sheet when it is probable that future economic benefits 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 from the company and the value of the liability can be measured reliably. At the first recognition, assets and liabilities are measured at cost. Later, assets and liabilities are measured as described below for each individual accounting item. Certain fixed asset investments and liabilities are measured at amortised cost, by which method a fixed, effective interest is recognised during the useful life of the asset or the liability. Amortised cost is recognised as the original cost with deduction of any payments and additions/deductions of the accrued amortisation of the difference between cost and nominal amount. In this way capital losses and capital profits are spread over the useful life. Reporting currency The financial statements are presented in Danish kroner (DKK'000). On initial recognition, transactions denominated in foreign currencies are translated at the exchange rate at the transaction date. Foreign exchange differences arising between the exchange rates at the transaction date and the date of payment are recognised in the income statement as financial income or financial expenses. Receivables and payables and other monetary items denominated in foreign currencies are translated at the exchange rate at the balance sheet date. The difference between the exchange rates at the balance sheet date and the date at which the receivable or payable arose or was recognised in the most recent financial statements is recognised in the income statement as financial income or financial expenses. Revenue from contracts with customers is recognised on the basis of transfer of control, which takes place at the time when control of the product delivered passes to the customer. Control is considered passed to the customer when: • a binding sales agreement has been made; • delivery has been made before year end; • the sales price has been determined; and • payment has been received or may with reasonable certainty be expected to be received. Revenue is recognised exclusive of VAT and net of discounts relating to sales. The items revenue, production costs and other operating income have been aggregated into one item in the income statement called gross profit in accordance with section 32 of the Danish Financial Statements Act. Distribution costs comprise costs related to the distribution of goods sold in the year and to sales campaigns, etc. carried out in the year, including costs related to sales staff, advertising, exhibitions and amortisation/depreciation. Administrative expenses include expenses incurred in the year for company management and administration, including expenses relating to administrative staff, Management, office premises and expenses as well as amortisation/depreciation of assets used for administrative purposes. Other operating income comprise items of a secondary nature relative to the Company's core activities, including gains on the sale of fixed assets. Financial income and expenses are recognised in the income statements at the amounts that concern the financial year. Net financials include interest income and expenses as well as allowances and surcharges under the advance-payment-of-tax scheme, etc. Tax for the year includes current tax on the year's expected taxable income and the year's deferred tax adjustments. The portion of the tax for the year that relates to the profit/loss for the year is recognised in the income statement, whereas the portion that relates to transactions taken to equity is recognised in equity. Property, plant and equipment Items of property, plant and equipment are measured at cost less accumulated depreciation and impairment losses. Cost includes the acquisition price and costs directly related to the acquisition until the time at which the asset is ready for use. The Company has chosen IFRS 16 as interpretation for classification and recognition of leases. Leases are recognised in the balance sheet at the calculated amount of the lease liability. The lease liability is calculated at the present value of the lease payments calculated by applying the interest rate implicit in the lease or the Company’s incremental borrowing rate as discount rate if the interest rate implicit in the lease is not available. Lease assets are depreciated and written down for impairment under the same policy as for the Company’s other fixed assets. The Company has chosen to apply the exemptions concerning short-term and low-value leases. Therefore, such lease assets are not recognised as assets and liabilities in the balance sheet. The costs are recognised in the income statement on a straight-line basis over the lease term. The lease liability is recognised in the balance sheet under debt and is adjusted for prepaid lease payments on a current basis. At the same time, interest is added on the liability. Interest expenses are charged to the income statement on a current basis. The Company has chosen IAS 39 as interpretation for impairment write-down of financial receivables. Receivables are measured at amortised cost. Prepayments recognised under "Assets" comprise prepaid expenses regarding subsequent financial reporting years. Prepayments comprise prepaid expenses concerning insurance premiums. Cash comprise cash and short term securities which are readily convertible into cash and subject onlyto minor risks of changes in value. Proposed dividends Dividend proposed for the year is recognised as a liability once adopted at the annual general meeting (declaration date). Dividends expected to be distributed for the financial year are presented as a separate item under "Equity". Dividend proposed for the year is recognised as a liability once adopted at the annual general meeting (declaration date). Dividends expected to be distributed for the financial year are presented as a separate item under "Equity". Current tax payables and receivables are recognised in the balance sheet as the estimated income tax charge for the year, adjusted for prior-year taxes and tax paid on account. Deferred tax is measured according to the liability method on all temporary differences between the carrying amount and the tax base of assets and liabilities. However, deferred tax is not recognised on temporary differences relating to goodwill which is not deductible for tax purposes and on office premises and other items where temporary differences, apart from business combinations, arise at the date of acquisition without affecting either profit/loss for the year or taxable income. Where alternative tax rules can be applied to determine the tax base, deferred tax is measured based on Management's intended use of the asset or settlement of the liability, respectively. Deferred tax is measured according to the tax rules and at the tax rates applicable at the balance sheet date when the deferred tax is expected to crystallise as current tax. Deferred tax assets are recognised at the expected value of their utilisation; either as a set-off against tax on future income or as a set-off against deferred tax liabilities in the same legal tax entity. Changes in deferred tax due to changes in the tax rate are recognised in the income statement. The Company has chosen IAS 39 as interpretation for liabilities. Trade payables are measured at amortised cost. Financial liabilities, which comprises of loans from group enterprises, are recognised at the date of borrowing at the net proceeds received less transaction costs paid. On subsequent recognition, financial liabilities are measured at amortised cost, corresponding to the capitalised value, using the effective interest rate. Accordingly, the difference between the proceeds and the nominal value is recognised in the income statement over the term of the loan. Financial liabilities also include the capitalised residual lease liability in respect of finance leases. Other liabilities are measured at net realisable value. Lease liabilities Lease liabilities are measured at the net present value of the remaining lease payments including any guaranteed residual value based on the interest rate implicit in the lease. No events have occured after the balance sheet date of importance to the 2023 financial statements. Total remuneration to the Executive Management was DKK 284,350 for 2023. Goodyear Danmark A/S did not pay any remuneration to the board members in 2023. None of the board members were employed by Goodyear Danmark A/S in 2023 The Company's total deferred tax assets amount to TDKK 1,232 end 2023 (2022: TDKK 1.454). Prepayments include accrual of expenses relating to subsequent financial years, including mainly insurances. The share capital consists of 5 shares, each with a nominal value of DKK 100.000. No shares hold particular rights. The Company's share capital has remained DKK 500 thousand over the past 5 years. Contingent liabilities No contingent liabilities exist at the balance sheet date. Information about consolidated financial statements Parent Domicile Requisitioning of the parent company's consolidated financial statements Goodyear Europe B.V Ledeboerstraat 21 , 5048AC Tilburg, The Netherlands www.goodyear.com Related party transactions The Company solely discloses related party transactions that have not been carried out on an arm's length basis, cf. section 98c(7) of the Danish Financial Statements Act. All transactions have been carried out on an arm's length basis. Goodyear Danmark A/S has transactions with related parties which constitute a number of enterprises in Goodyear Dunlop Tires Group. The company is a wholly owned subsidiary of Goodyear Europe B.V - Ledeboerstraat 21 , 5048AC Tilburg, The Netherlands. The ultimate Parent Company is The Goodyear Tire and Rubber Company, 1144 East Market Street Akron, Ohio 44316-0001. The company is incorporated into the consolidated financial statements of this company. The consolidated financial statements can be obtained from this company. 54037317 2023-01-01 2023-12-31 54037317 2023-01-01 54037317 2022-12-31 54037317 2023-12-31 54037317 2022-01-01 54037317 2023-01-01 2023-12-31 1 54037317 2023-01-01 2023-12-31 2 54037317 2023-01-01 2023-12-31 3 54037317 2023-01-01 2023-12-31 1 54037317 2023-01-01 2023-12-31 2 54037317 2023-01-01 2023-12-31 1 54037317 2023-01-01 e:FixturesFittingsToolsAndEquipmentMember 54037317 2023-01-01 2023-12-31 e:FixturesFittingsToolsAndEquipmentMember 54037317 2023-12-31 e:FixturesFittingsToolsAndEquipmentMember 54037317 2022-01-01 e:ContributedCapitalMember 54037317 2023-01-01 e:ContributedCapitalMember 54037317 2023-12-31 e:ContributedCapitalMember 54037317 2023-01-01 e:RetainedEarningsMember 54037317 2023-01-01 2023-12-31 e:RetainedEarningsMember 54037317 2023-12-31 e:RetainedEarningsMember 54037317 2022-01-01 e:RetainedEarningsMember 54037317 2022-01-01 2022-12-31 e:RetainedEarningsMember 54037317 2023-01-01 e:ProposedDividendRecognisedInEquityMember 54037317 2023-01-01 2023-12-31 e:ProposedDividendRecognisedInEquityMember 54037317 2023-12-31 e:ProposedDividendRecognisedInEquityMember 54037317 2022-01-01 e:ProposedDividendRecognisedInEquityMember 54037317 2022-01-01 2022-12-31 e:ProposedDividendRecognisedInEquityMember 54037317 2023-12-31 e:ReceivablesMember 54037317 2022-12-31 e:ReceivablesMember 54037317 2023-12-31 e:TaxLossesMember 54037317 2022-12-31 e:TaxLossesMember 54037317 2022-01-01 2022-12-31 54037317 2021-01-01 2021-12-31 54037317 2021-12-31 54037317 2020-01-01 2020-12-31 54037317 2020-12-31 54037317 2019-01-01 2019-12-31 54037317 2019-12-31 54037317 2023-01-01 2023-12-31 5 54037317 2022-01-01 2022-12-31 5 54037317 2021-01-01 2021-12-31 5 54037317 2020-01-01 2020-12-31 5 54037317 2019-01-01 2019-12-31 5 54037317 2023-01-01 2023-12-31 6 54037317 2022-01-01 2022-12-31 6 54037317 2021-01-01 2021-12-31 6 54037317 2020-01-01 2020-12-31 6 54037317 2019-01-01 2019-12-31 6 54037317 2023-01-01 2023-12-31 7 54037317 2022-01-01 2022-12-31 7 54037317 2021-01-01 2021-12-31 7 54037317 2020-01-01 2020-12-31 7 54037317 2019-01-01 2019-12-31 7 54037317 2023-01-01 2023-12-31 10 54037317 2022-01-01 2022-12-31 10 54037317 2021-01-01 2021-12-31 10 54037317 2020-01-01 2020-12-31 10 54037317 2019-01-01 2019-12-31 10 54037317 2023-12-31 e:LongtermLeaseCommitmentsMember 54037317 2023-12-31 e:LiabilitiesOtherThanProvisionsMember 54037317 2022-12-31 e:LiabilitiesOtherThanProvisionsMember iso4217:DKK xbrli:pure