Årsrapport 30700228 EY Godkendt Revisionspartnerselskab Værkmestergade 25 Postboks 330, 8100 Aarhus C 2024-01-01 2024-12-31 2023-01-01 2023-12-31 41852119 Tetra Pak Processing Systems A/S Søren Nymarks Vej 13 8270 Højbjerg 1957-11-22 Aarhus 89393939 EY Godkendt Revisionspartnerselskab 30700228 Værkmestergade 25 8100 Aarhus C 2025-05-30 Monica Pedersen Regnskabsklasse C, stor virksomhed Revisionspåtegning Grundlag for konklusion Konklusion true 2025-03-13 2025-03-13 CaseWare Working Papers Højbjerg Lars Peter Lindstrøm Monica Pedersen Chair Lars Peter Lindstrøm Rolf Brandhøj Overgaard Uffe Prebensen Nils Stefan Daniel Mårtensson Kenneth Tilsted Christensen elected by the employees Niels Glahn Sabroe elected by the employees Carsten Vigen Hansen elected by the employees Ole Hemme Hansen elected by the employees Aarhus Kim R. Mortensen Jonas Busk State Authorised Public Accountant mne18513 State Authorised Public Accountant mne42771 1384459000 1125847000 1231636000 10835000 49125000 86404000 55189000 78166000 Operating profit/loss Operating profit/loss Operating profit/loss Operating profit/loss Operating profit/loss -17674000 -17707000 -4689000 -3531000 -4538000 64669000 54280000 58230000 108847000 66789000 58898000 63107000 67810000 Non-current assets Non-current assets Non-current assets Non-current assets Non-current assets 597704000 737920000 645637000 525900000 468713000 Current assets Current assets Current assets Current assets Current assets 704535000 589007000 536523000 -46585000 -12606000 -11785000 -10001000 -12027000 170401000 160012000 163962000 -18739000 -27641000 180115000 -4262000 -1481000 4753000 -3060000 -1072000 Total cash flows Total cash flows Total cash flows Total cash flows Total cash flows 0.9 3.4 6.2 5.1 6.4 14.7 15.1 19.1 19.9 19.3 1.4 6.5 13.4 9.8 13.8 -4.1 15.9 39.1 33.5 43.2 402 406 427 1275850000 1423500000 1088031000 1209012000 187819000 214488000 108950000 102672000 68033000 62691000 744000 0 414000 67000 11166000 49058000 576000 212000 18250000 17919000 -6508000 31351000 -1255000 7430000 -5253000 23921000 15256000 14639000 32605000 16991000 905000 1814000 10547000 11226000 20770000 18503000 140000 144000 28624000 3472000 108847000 66789000 108847000 66789000 156102000 192401000 129336000 127365000 42987000 54871000 8415000 1496000 336840000 376133000 18943000 15850000 42307000 21474000 137306000 268913000 9195000 8209000 53113000 43079000 260864000 357525000 0 4262000 597704000 737920000 706551000 804709000 12000000 12000000 112400000 117653000 0 0 124400000 129653000 10557000 9287000 26642000 11105000 37199000 20392000 2505000 0 6392000 7429000 138000 1123000 25128000 15334000 99434000 128237000 291846000 367641000 99890000 103553000 19619000 31347000 544952000 654664000 706551000 804709000 12000000 93732000 64669000 23921000 0 0 64669000 12000000 117653000 0 -5253000 0 12000000 112400000 0 -5253000 23921000 21610000 42900000 -18325000 4934000 -1968000 71755000 0 212000 17674000 17919000 -1936000 12035000 -17706000 42013000 37450000 12606000 402000 586000 -37048000 -12020000 0 64669000 2506000 0 -7826000 -8391000 55812000 41586000 50492000 -31474000 -4262000 -1481000 4262000 5743000 0 4262000 380000 0 196000 212000 15250000 12918000 884000 359000 9000 603000 2107000 4039000 -2496000 5186000 1270000 2023000 -29000 221000 72024000 43448000 3564000 20490000 39094000 835000 3472000 1943000 22326000 0 722000 8275000 0 26510000 14061000 0 1047000 2376000 2824000 0 0 0 0 0 1358000 0 0 -1358000 59906000 65774000 2517000 20194000 44545000 835000 28624000 57385000 26457000 1750000 9264000 20591000 691000 0 1053000 6712000 909000 2368000 5873000 4000 0 -13788000 0 -1047000 -1985000 -2689000 0 0 44650000 33169000 1612000 9647000 23775000 695000 0 15256000 32605000 905000 10547000 20770000 140000 28624000 164725000 164695000 12000 A 12000000 12000000 10557000 0 10557000 0 26642000 0 26642000 0 9287000 7263000 10557000 9287000 270912000 265760000 32014000 22940000 13903000 10835000 316829000 299535000 401 400 1833000 757000 380000 355000 1109000 166000 344000 236000 -5253000 23921000 16919000 17853000 -576000 -212000 -18250000 -17919000 -1255000 7430000 -39293000 29806000 -13127000 29882000 33452000 -10087000 -11039000 -5229000 0 4262000 Today, the Board of Directors and the Executive Board have discussed and approved the annual report of Tetra Pak Processing Systems A/S for the financial year 1 January - 31 December 2024. 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 2024 and of the results of the Company's operations and cash flows for the financial year 1 January - 31 December 2024. 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 shareholders of Tetra Pak Processing Systems A/S We have audited the financial statements of Tetra Pak Processing Systems A/S for the financial year 1 January - 31 December 2024, which comprise income statement, balance sheet, statement of changes in equity, cash flow statement and notes, including accounting policies. The financial statements are 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 2024 and of the results of the Company's operations as well as the cash flows for the financial year 1 January - 31 December 2024 in accordance with the Danish Financial Statements Act. We conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the "Auditor's responsibilities for the audit of the financial statements" section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Independence 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. 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 as to 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 the 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 note 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. Management is responsible for the Management's review. Our opinion on the financial statements does not cover the Management's review, and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the Management's review and, in doing so, consider whether the 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 the Management's review provides the information required under the Danish Financial Statements Act. Based on the work we have performed, we conclude that the Management's review is in accordance with the financial statements and has been prepared in accordance with the requirements of the Danish Financial Statement Act. We did not identify any material misstatement of the Management's review. The financial ratios stated under "Financial highlights" have been calculated as follows: Operating margin Operating profit/loss (EBIT) x 100 Revenue Gross margin Gross profit/loss x 100 Revenue Return on assets Profit/loss from operating activites x 100 Average assets Return on equity Profit/loss after tax x 100 Average equity The Company's business activities are production, design and sale of production lines, machinery, equipment and spare parts for the ice cream industry, high shear mixers, high-tech filtrations systems and membranes for Food and Beverage industry. The income statement for 2024 shows a loss of DKK 5,253 thousand against a profit of DKK 23,921 last year, and the balance sheet at 31 December 2024 shows equity of DKK 124,400 thousand. The financial performance is below our expectations stated in the annual report for 2023 with an expectation of an increase in revenue of 2-5% and a profit change of +/- 10 million. The revenue for 2024 decreased with 10% and the profit before net financials declined with 77%. The company's business area places particularly high demands on the knowledge resources relating to employees and business processes, in order to be able to retain the competitive power, it is decisive that the company can recruit and retain employees, both with a high educational level and employees with technical experience. This has been succeeded to a wide extent by means of an active and attractive staff policy. As mentioned above, the Company's business activities are production, design and sales. The impact on the external environment is fairly limited. The Company is environmentally certified to ISO 14001. Statutory reporting on social responsibility statement, cf. FSA §99a The Company's business activities are production, design and sale of production lines, machinery, equipment and spare parts for the ice cream industry, high shear mixers, high-tech filtrations systems and membranes for Food and Beverage industry. Human Rights and Anti-Corruption The Tetra Pak Group is a signatory to the UN Global Compact, which entails that Tetra Pak Processing Systems A/S naturally is committed to implement and promote the principles in our business practice, e.g. by respecting the human rights and having a zero tolerance in relation to corruption and bribery. The most material risk to the company is connected to our suppliers, with whom we actively engage to ensure the compliance with both our Code of Business Conduct as well as national legislation and internationally recognized conventions. During 2024, we have continued follow-up activities with suppliers as well as promoted the ethical standards of our Code of Conduct among both suppliers and employees. No breaches to the Code of Conduct have been reported in 2024. We will continue to have this as our focus for the coming years. Environment and Climate TPPS A/S most material risks related to negative impacts on environmental and climate issues are within water & energy consumption and waste. Part of the Tetra Pak Group’s 2030 Strategy is based on a commitment to a low-carbon circular economy. This is of course also the objective of Tetra Pak Processing System A/S and we strive for a sustainable future by adhering completely to the Group’s environmental strategy. The main environmental and climate focus for Tetra Pak Processing Systems A/S during 2024 has been to provide Processing Solutions to our customer’s, enabling their operations towards minimal water and energy consumption and minimum waste. For 2024 we have launched number of improvements on our Processing Solutions equipment, within the areas of minimizing waste, water and energy consumption. This year we have optimized production sites water and energy consumption, which in 2024 has dropped with 2%. We will continue to have this as our focus and we have both short and long term targets, which is reviewed minimum at a yearly basis. We aim to follow Tetra Paks overall ambitions. Social and Employee matters The biggest asset of Tetra Pak Processing Systems A/S is our people, and our purpose is to be a modern and attractive employer that takes care of our employees and nourishes talent. To that end, we are driving actions to ensure a diverse workforce and an inclusive culture, where all employees can thrive. The main risk to our employees is potential accidents when dealing with chemicals and heavy machinery. To mitigate this risk, we actively work on safeguarding our employees by promoting Occupational Health & Safety (OHS) and wellbeing, as well as rolling out initiatives aimed at ensuring fewer accidents. All employees are continuously reminded and debriefed regarding our OHS policy and all new employees must undertake basic OHS trainings. We will continue to have this as our focus for the coming years Currently, the Board of Directors consists of 5 members, with the underrepresented gender accounting 20%. The target is to reach a balance in the board of 40% / 60% end of 2027. (Excl. members elected by the employees). In the current financial year, there were no relevant candidates of the underrepresented gender for the Board. The other managerial positions (consist of people with employee responsibility); females represent 11% and males 89%; based on total Full Time Employees end of year 2024. The target is that females represent 23% by the end of 2027. Target for 2024 for “Other Managerial Positions” was not fulfilled because there were no relevant candidates from the underrepresented gender for management positions in 2024 As a part of our ongoing commitment to diversity and inclusivity, we are actively enhancing our policy to delineate clearer strategies and objectives aimed at promoting and ensuring equitable gender representation across our management levels. We have put in place a detailed baseline that will allow us to monitor our progress as we implement our action plan aiming to achieve our target figures for the Board of Directors as well as other managerial positions. The purpose of our data ethics guidelines, are to guide our users on data ethics considerations when collecting, sharing and using data. We strive to pay special attention to the data ethics issues such that our activities are in compliance with regulation. The policy is aimed at customers, current and potential partners, as well as employees. It is essential that these parties and the outside world trust our way of using data. In case we use third party data, it is expected by the third party that data ethical considerations, and if possible, a data ethic policy are integrated. We strive to ensure that employees are well-informed about data ethics and that they handle data correctly. We will continuously support the understanding of the importance of data ethics No events materially affecting the Company's financial position have occurred subsequent to the financial year-end. The activities of Tetra Pak Processing Systems A/S for 2025 are expected to be above 2024, however as a consequence of the increased geopolitical uncertainty and rising commodity prices, etc. there is increased uncertainty about setting expectations for 2025. Sales Volume is expected to increase in the range 3-5%. We expect an impact of the operations to be from zero to plus 30 million. The annual report of Tetra Pak Processing Systems A/S for 2024 has been prepared in accordance with the provisions in the Danish Financial Statements Act applying to large reporting class C entities. The accounting policies used in the preparation of the financial statements are consistent with those of last year. Some financial items has been reclassified. The comparable figures have been adjusted. Reporting currency The financial statements are presented in Danish thousand 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. On initial recognition, derivative financial instruments are recognised at cost in the balance sheet and are subsequently measured at fair value. Positive and negative fair values of derivative financial instruments are presented as separate items in the balance sheet. Fair value adjustments of derivative financial instruments designated and qualifying as hedging of future assets or liabilities are recognised as separate items in the balance sheet and in the hedging reserve under equity. If the forecast transaction results in the recognition of assets or liabilities, amounts previously recognised in equity are transferred to the cost of the asset or liability, respectively. If the forecast transaction results in income or expenses, amounts previously recognised in equity are transferred to the income statement in the period in which the hedged item affects the income statement. The Company has chosen IFRS 15 as interpretation for revenue recognition. Revenue from contracts with customers comprises sales of products and income from construction contracts: • Revenue from the sale of products is recognised at the point in time when the control of products is transferred to the customer, which is generally upon delivery. • Income from construction contracts involving a high degree of customization is recognized as revenue by reference to the stage of completion. Accordingly, revenue corresponds to the market value of contract work performed during the year (percentage-of-completion method). Revenue from contracts with customers is measured at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those products. Amounts disclosed as net revenue exclude discounts, VAT and other duties. The Group considers whether contracts include other promises that constitute separate performance obligations and to which a portion of the transaction price needs to be allocated. In determining the transaction price, the Group considers the effects of variable consideration. No element of financing is deemed present, as payment is generally received as cash - on delivery or up to 60-90 days of credit. Variable consideration: The Group pays various discounts depending on the nature of the customer and business. Customer discounts comprise off-invoice discounts, volume- and activity-related discounts, including specific promotion prices offered. Off-invoice discounts arise from sales transactions where the customer immediately receives a reduction in the sales price. This also includes cash discounts and incentives for early payments. Volume- and activity-related discounts is a broad term covering incentives for customers to sustain business with the Group over a longer time and may be related to a current campaign or a sales target measured in volumes or total value. Examples include discounts paid as a lump sum, discounts for meeting all or certain sales targets or for exceeding targets, or progressive discounts offered in step with increasing sales to a customer. Production costs comprise costs incurred in generating the revenue for the year. Such costs include direct and indirect costs of raw materials, consumables and production staff, rent and leases, as well as depreciation on production plant. Production costs also include research and development costs that do not qualify for capitalisation and amortisation of capitalised development costs. 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. Sales and marketing costs are recognised in the income statement when the Company obtains control of the sales or marketing product. 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 and operating expenses comprise items of a secondary nature relative to the Company's core activities, including gains or losses on the sale of non-current assets. Staff costs include wages and salaries, including compensated absence and pension to the Company's employees, as well as other social security contributions, etc. The item is net of refunds from public authorities. The item comprises depreciation of property, plant and equipment. The basis of depreciation, which is calculated as cost less any residual value, is depreciated on a straight line basis over the expected useful life and reasessed every year. The expected useful lives of the assets are as follows: Land and buildings 25 years years Plant and machinery 5-20 years years Other fixtures and fittings, tools and equipment 3-5 years years Leasehold improvements 5 years Depreciation is based on the residual value of the asset and is reduced by impairment losses, if any. The depreciation period and the residual value are determined at the acquisition date and are reassessed annually. Where the residual value exceeds the carrying amount of the asset, no further depreciation charges are recognised. In the case of changes in the depreciation period or the residual value, the effect on the depreciation charges is recognised prospectively as a change in accounting estimates. Financial income and expenses are recognised in the income statement at the amounts that relate to the financial year. The items comprise interest income and expenses, e.g. from group entities and associates, financial expenses relating to finance leases, exchange gains and losses and amortisation of financial assets and liabilities. 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. The Company and its Danish group entities are jointly taxed. The Danish income tax charge is allocated between profit making and loss making Danish entities in proportion to their taxable income. Jointly taxed entities entitled to a tax refund are reimbursed by the management company based on the rates applicable to interest allowances, and jointly taxed entities which have paid too little tax pay a surcharge according to the rates applicable to interest surcharges to the management company. 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. Gains or losses are calculated as the difference between the selling price less selling costs and the carrying amount at the date of disposal. Gains and losses from the disposal of property, plant and equipment are recognised in the income statement as other operating income or other operating expenses. The Company has chosen IFRS 16 as interpretation for classification and recognition of leases. Lease assets are “right-of-use-assets” arising from lease agreements. Lease assets are initially measured at cost comprising the following: • the amount of the initial measurement of lease liability • any lease payments made at or before the commencement date less any lease incentives received • any initial direct costs • restoration costs. The lease assets are depreciated on a straight-line basis over the shorter period of the assets useful life and the lease term in the contract. The lease assets can be adjusted due to modifications to the lease agreement or reassessment of the lease term. The depreciation periods are as follows: • Property 1-6 years • Cars and trucks 1-3 years Payments associated with short-term leases and leases of low-value assets are recognised on a straight-line basis as an expense in the income statement. Short-term leases are leases with a term of 12 month or less, while low value assets comprise assets with a value below EUR 5 thousand. On initial recognition, lease commitments are measured at the present value of the future lease payments discounted by an incremental borrowing rate. The lease commitment is measured at amortised cost according to the effective interest method. The lease commitment is recalculated when the underlying contractual cash flows change due to changes in an index or an interest rate if the Group's estimate of a residual value guarantee changes or if the Group changes its assessment of whether call options, extension options or termination options can reasonably be expected to be exercised. In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset. Inventories are measured at cost in accordance with the FIFO method. Where the net realisable value is lower than cost, inventories are written down to this lower value. The net realisable value of inventories is calculated as the sales amount less costs of completion and expenses required to effect the sale and is determined taking into account marketability, obsolescence and development in the expected selling price. The cost of raw materials and consumables comprises the cost of acquisition plus delivery costs. The cost of finished goods and work in progress includes the cost of raw materials, consumables, direct labour and indirect production overheads. Indirect production overheads include the indirect cost of material and labour as well as maintenance and depreciation of production machinery, buildings and equipment and expenses relating to plant administration and management. Borrowing costs are not recognised in the cost price. Receivables are measured at amortised cost less write-down of expected losses, based on an individual assesment. The Company has chosen IAS 39 as interpretation for impairment of financial receivables. Impairment losses are calculated as the difference between the carrying amount of the receivables and the present value of the expected cash flows, including the realisable value of any collateral received. Service supplies and contract work in progress for third parties are measured at the market value of the work performed less progress billings. The market value is calculated based on the stage of completion at the balance sheet date and the total expected income from the relevant contract. The stage of completion is calculated based on the expenses incurred relative to the expected total expenses relating to the relevant contract. Where the outcome of contract work in progress cannot be estimated reliably, the market value is measured at the expenses incurred in so far as they are expected to be paid by the purchaser. Where the total expenses relating to the work in progress are expected to exceed the total market value, the expected loss is recognised as a loss-making agreement under "Provisions" and is expensed in the income statement. The value of work in progress less progress billings is classified as assets when the selling price exceeds progress billings and as liabilities when progress billings exceed the market value. Prepayments recognised under "Assets" comprise prepaid expenses regarding subsequent financial reporting years. Cash comprise cash and bank deposits. 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". Provisions comprise anticipated expenses relating to warranty commitments, onerous contracts, restructurings, etc. Provisions are recognised when the Company has a legal or constructive obligation at the balance sheet date as a result of a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation. Provisions are measured at net realisable value or at fair value if the obligation is expected to be settled far into the future. 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. 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. As management company for all the entities in the joint taxation arrangement, the parent company is liable for payment of the group companies' income taxes vis à vis the tax authorities as the group companies pay their joint taxation contributions. Joint taxation contributions payable or receivable are recognised in the balance sheet as receivables or payables to group entities. Financial liabilities 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 amortized cost, which is essentially equivalent to the 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. Prepayments from customers are recognised in liabilities. The cash flow statement shows the Company's net cash flows broken down according to operating, investing and financing activities, the year's changes in cash as well as the cash at the beginning and the end of the year. Cash flows from operating activities are calculated as the profit/loss for the year adjusted for non cash operating items, changes in working capital, received/paid interests and corporate income tax. Cash flows from investing activities comprise payments in connection with acquisitions and disposals of entities and activities and of intangible assets, property, plant and equipment and investments. Cash flows from financing activities comprise changes in the size or composition of the Company's share capital and related expenses as well as raising of loans, repayment of interest bearing debt including lease liabilities and payment of dividends to shareholders. Cash comprise cash and bank deposits. Segment information is given for revenue broken down by type of products. The segmentation is in accordance with the entity's internal financial management. Breakdown of revenue by business segment: Sales of goods/machinery 528,439 718,028 Sales of customized machines 224,904 174,093 Aftersales, services & consumables 522,524 531,379 1,275,867 1,423,500 The Company's share capital has remained DKK 12,000 thousand in the past year. The provision for deferred tax primarily relates to timing differences in respect of inventory, intangible assets and property, plant and equipment. By reference to section 98b(3), (ii), of the Danish Financial Statements Act, remuneration to Management is not disclosed. As management company, the Company is taxed on a joint basis with other Danish Group entities. The Company is jointly and severally liable with other jointlyt taxed group entities for payment of income taxes and withholding taxes. Parties exercising control Related party Domicile Basis for control Tetra Laval International SA Pully, Switzerland Participating interest Information about consolidated financial statements Parent Domicile Requisitioning of the parent company's consolidated financial statements Tetra Laval International SA Pully, Switzerland Avenue Général-Guisan 70, 1009 Pully, Switzerland Related party transactions Tetra Pak Processing Systems A/S was engaged in the below related party transactions: DKK'000 2024 2023 Sale of goods and services to affiliated companies 995,951 1,264,977 Acquisition of goods and services from affiliated companies 25,593 13,328 Sale of services (administrative fee and allocated costs) to affiliated companies 67,659 77,031 Acquisition of services (administrative fee and allocated costs) from affiliated companies 2,805 9,972 Royalty income from affiliated companies 2,917 7,208 Interest income from affiliated companies 380 0 Interest expenses to affiliated companies 15,250 12,918 Receivables from affiliated companies 137,306 268,913 Payables to affiliated companies 291,846 367,641 Paid dividends to parent 0 64,669 Ownership The following shareholders are registered in the Company's register of shareholders as holding minimum 5% of the votes or minimum 5% of the share capital: Name Domicile Tetra Laval International SA Avenue Général-Guisan 70, 1009 Pully, Switzerland 41852119 2024-01-01 2024-12-31 41852119 2024-01-01 41852119 2023-12-31 41852119 2024-12-31 41852119 2023-01-01 41852119 2024-01-01 2024-12-31 1 41852119 2024-01-01 2024-12-31 2 41852119 2024-01-01 2024-12-31 3 41852119 2024-01-01 2024-12-31 4 41852119 2024-01-01 2024-12-31 5 41852119 2024-01-01 2024-12-31 6 41852119 2024-01-01 2024-12-31 7 41852119 2024-01-01 2024-12-31 8 41852119 2024-01-01 2024-12-31 9 41852119 2024-12-31 1 41852119 2024-01-01 2024-12-31 1 41852119 2024-01-01 2024-12-31 2 41852119 2024-01-01 2024-12-31 1 41852119 2024-01-01 e:LandAndBuildingsMember 41852119 2024-01-01 e:PlanesMember 41852119 2024-01-01 2024-12-31 e:PlanesMember 41852119 2024-12-31 e:PlanesMember 41852119 2024-01-01 2024-12-31 e:LandAndBuildingsMember 41852119 2024-12-31 e:LandAndBuildingsMember 41852119 2024-01-01 e:PlantAndMachineryMember 41852119 2024-01-01 2024-12-31 e:PlantAndMachineryMember 41852119 2024-12-31 e:PlantAndMachineryMember 41852119 2024-01-01 e:FixturesFittingsToolsAndEquipmentMember 41852119 2024-01-01 2024-12-31 e:FixturesFittingsToolsAndEquipmentMember 41852119 2024-12-31 e:FixturesFittingsToolsAndEquipmentMember 41852119 2024-01-01 e:LeaseholdImprovementsMember 41852119 2024-01-01 2024-12-31 e:LeaseholdImprovementsMember 41852119 2024-12-31 e:LeaseholdImprovementsMember 41852119 2024-01-01 e:PropertyPlantAndEquipmentInProgressMember 41852119 2024-01-01 2024-12-31 e:PropertyPlantAndEquipmentInProgressMember 41852119 2024-12-31 e:PropertyPlantAndEquipmentInProgressMember 41852119 2024-01-01 e:ShipsMember 41852119 2024-01-01 2024-12-31 e:ShipsMember 41852119 2024-12-31 e:ShipsMember 41852119 2023-01-01 e:ContributedCapitalMember 41852119 2024-01-01 e:ContributedCapitalMember 41852119 2024-12-31 e:ContributedCapitalMember 41852119 2024-01-01 e:RetainedEarningsMember 41852119 2024-01-01 2024-12-31 e:RetainedEarningsMember 41852119 2024-12-31 e:RetainedEarningsMember 41852119 2023-01-01 e:RetainedEarningsMember 41852119 2023-01-01 2023-12-31 e:RetainedEarningsMember 41852119 2024-01-01 e:ProposedDividendRecognisedInEquityMember 41852119 2024-01-01 2024-12-31 e:ProposedDividendRecognisedInEquityMember 41852119 2024-12-31 e:ProposedDividendRecognisedInEquityMember 41852119 2023-01-01 e:ProposedDividendRecognisedInEquityMember 41852119 2023-01-01 2023-12-31 e:ProposedDividendRecognisedInEquityMember 41852119 2023-01-01 2023-12-31 41852119 2022-01-01 2022-12-31 41852119 2022-12-31 41852119 2021-01-01 2021-12-31 41852119 2021-12-31 41852119 2020-01-01 2020-12-31 41852119 2020-12-31 41852119 2024-01-01 2024-12-31 0 41852119 2024-01-01 2024-12-31 5 41852119 2023-01-01 2023-12-31 5 41852119 2022-01-01 2022-12-31 5 41852119 2021-01-01 2021-12-31 5 41852119 2020-01-01 2020-12-31 5 41852119 2024-01-01 2024-12-31 6 41852119 2023-01-01 2023-12-31 6 41852119 2022-01-01 2022-12-31 6 41852119 2021-01-01 2021-12-31 6 41852119 2020-01-01 2020-12-31 6 41852119 2023-01-01 2023-12-31 0 41852119 2022-01-01 2022-12-31 0 41852119 2021-01-01 2021-12-31 0 41852119 2020-01-01 2020-12-31 0 41852119 2024-12-31 e:LongtermLeaseCommitmentsMember 41852119 2023-12-31 1 41852119 2023-01-01 2023-12-31 1 41852119 2024-01-01 2024-12-31 23 41852119 2023-01-01 2023-12-31 23 41852119 2022-01-01 2022-12-31 23 41852119 2021-01-01 2021-12-31 23 41852119 2020-01-01 2020-12-31 23 41852119 2024-12-31 e:DeferredTaxLiabilitiesLongtermMember iso4217:DKK xbrli:shares xbrli:pure