213800QRC7LNX935OZ09 2022-01-01 2022-12-31 213800QRC7LNX935OZ09 2021-01-01 2021-12-31 213800QRC7LNX935OZ09 2022-12-31 213800QRC7LNX935OZ09 2021-12-31 213800QRC7LNX935OZ09 2020-12-31 213800QRC7LNX935OZ09 2021-12-31 ifrs-full:IssuedCapitalMember 213800QRC7LNX935OZ09 2021-12-31 ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember 213800QRC7LNX935OZ09 2021-12-31 ROC:DividendsProposedOrDeclaredBeforeFinancialStatementsAuthorisedForIssueButNotRecognisedAsDistributionToOwnersRecognisedInEquityMember 213800QRC7LNX935OZ09 2021-12-31 ifrs-full:RetainedEarningsMember 213800QRC7LNX935OZ09 2021-12-31 ifrs-full:ReserveOfCashFlowHedgesMember 213800QRC7LNX935OZ09 2021-12-31 ifrs-full:EquityAttributableToOwnersOfParentMember 213800QRC7LNX935OZ09 2021-12-31 ifrs-full:NoncontrollingInterestsMember 213800QRC7LNX935OZ09 2022-01-01 2022-12-31 ifrs-full:IssuedCapitalMember 213800QRC7LNX935OZ09 2022-01-01 2022-12-31 ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember 213800QRC7LNX935OZ09 2022-01-01 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ifrs-full:EquityAttributableToOwnersOfParentMember 213800QRC7LNX935OZ09 2022-12-31 ifrs-full:NoncontrollingInterestsMember 213800QRC7LNX935OZ09 2020-12-31 ifrs-full:IssuedCapitalMember 213800QRC7LNX935OZ09 2020-12-31 ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember 213800QRC7LNX935OZ09 2020-12-31 ROC:DividendsProposedOrDeclaredBeforeFinancialStatementsAuthorisedForIssueButNotRecognisedAsDistributionToOwnersRecognisedInEquityMember 213800QRC7LNX935OZ09 2020-12-31 ifrs-full:RetainedEarningsMember 213800QRC7LNX935OZ09 2020-12-31 ifrs-full:ReserveOfCashFlowHedgesMember 213800QRC7LNX935OZ09 2020-12-31 ifrs-full:EquityAttributableToOwnersOfParentMember 213800QRC7LNX935OZ09 2020-12-31 ifrs-full:NoncontrollingInterestsMember 213800QRC7LNX935OZ09 2021-01-01 2021-12-31 ifrs-full:IssuedCapitalMember 213800QRC7LNX935OZ09 2021-01-01 2021-12-31 ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember 213800QRC7LNX935OZ09 2021-01-01 2021-12-31 ROC:DividendsProposedOrDeclaredBeforeFinancialStatementsAuthorisedForIssueButNotRecognisedAsDistributionToOwnersRecognisedInEquityMember 213800QRC7LNX935OZ09 2021-01-01 2021-12-31 ifrs-full:RetainedEarningsMember 213800QRC7LNX935OZ09 2021-01-01 2021-12-31 ifrs-full:ReserveOfCashFlowHedgesMember 213800QRC7LNX935OZ09 2021-01-01 2021-12-31 ifrs-full:EquityAttributableToOwnersOfParentMember 213800QRC7LNX935OZ09 2021-01-01 2021-12-31 ifrs-full:NoncontrollingInterestsMember iso4217:EUR xbrli:shares iso4217:EUR iso4217:DKK xbrli:shares Denmark Denmark global 35 3907000000 3088000000 15000000 6000000 3922000000 3094000000 1682000000 1116000000 518000000 438000000 273000000 205000000 811000000 733000000 3284000000 2492000000 638000000 602000000 236000000 201000000 402000000 401000000 1000000 1000000 16000000 10000000 61000000 19000000 358000000 393000000 85000000 90000000 273000000 303000000 10 1.3 12.7 14.1 10 1.3 12.6 14 273000000 303000000 0 28000000 4000000 2000000 17000000 78000000 1000000 0 1000000 0 13000000 104000000 286000000 407000000 107000000 102000000 14000000 9000000 29000000 34000000 12000000 14000000 3000000 17000000 165000000 176000000 908000000 860000000 702000000 680000000 18000000 16000000 359000000 273000000 1987000000 1829000000 88000000 61000000 9000000 8000000 4000000 3000000 48000000 52000000 61000000 63000000 2301000000 2129000000 433000000 317000000 347000000 307000000 80000000 98000000 31000000 24000000 27000000 39000000 209000000 166000000 1127000000 951000000 3428000000 3080000000 29000000 29000000 -117000000 -134000000 102000000 102000000 2567000000 2398000000 -1000000 -1000000 2580000000 2394000000 55000000 51000000 32000000 35000000 61000000 44000000 19000000 16000000 39000000 17000000 206000000 163000000 102000000 9000000 7000000 1000000 270000000 283000000 24000000 19000000 17000000 8000000 26000000 26000000 196000000 177000000 642000000 523000000 848000000 686000000 3428000000 3080000000 The consolidated cash flow statement is compiled using the indirect method on the basis of EBIT<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>. The cash flow statement shows flows from operating, investing and financing activities for the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>, as well as cash and cash equivalents at the beginning and at the end of the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>. Cash flows from operating activities comprises operatingprofit befor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e financial items adjusted for non-cash itemsand changes in working capital.Cash flows from investing activities comprise paymentsrelating to acquisition and sale of companies, intangibleand tangible assets and other asset investments.Cash flows from financing activities comprise pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>oceeds from borr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>owings, repayment of lease liabilities and debt,payment of dividends, sale and purchase of own shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>es,transactions with non-controlling interests and incr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eases of the share capital.Cash available includes cash less short-term bank debt.Dividend is included as a liability at the time of adoptionby the Annual General Meeting. Dividend that isexpected to be paid for the year is shown separately inthe equity.Sale and purchase of, as well as dividends on ownshares ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e recognised under retained earnings in the equity. The reserve for curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ency translation adjustmentsconsists of exchange rate differ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ences that occur whentranslating the subsidiaries’ financial statements fromtheir functional currency into EUR.Hedging adjustments comprise changes in the fair valueof hedging transactions that qualify for recognition ascash flow hedges and where the hedged transaction hasnot yet been realised.Non-controlling inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>estsThe non-controlling inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ests' proportionate share of theresult for the year and the equity is recognised as part ofthe Group's r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>esult for the year and as a separate share of the Group's equity.As per 22 December 2021, the minority share in ROCKWOOL Firesafe Insulation (Guangdong) Co Ltd., ROCKWOOL Malaysia Sdn. Bhd. and ROCKWOOL (Thailand) Limited was acquired fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>om the Investment Fund for Developing Countries, Denmark.1.2 General accounting policiesThe Annual Report for ROCKWOOL A/S has been prepar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>edin accordance with International Financial ReportingStandards (IFRS) as adopted by the EU and furtherrequir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ements in the Danish Financial Statements Act.The financial year for the Group is 1 January – 31December 2022.Group AccountsThe consolidated financial statements compriseROCKWOOL A/S and the entities in which the companyand its subsidiaries hold the majority of the voting rights.The consolidated financial statements have beenprepar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ed as a consolidation of the parent company’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s and the individual subsidiaries’ financial statements,determined according to the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s accounting policies, and with elimination of dividends, internalrevenue and expenditur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e items, internal profits aswell as intercompany balances and inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>companyshareholdings.Besides shares, capital investments in subsidiaries include long-term loans to subsidiaries if such loans constitute an addition to the shareholding.T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>ranslation of foreign currencyThe Annual Report has been presented in Eur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>o (EUR)which is the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s presentation curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ency. Each company in the Group determines its own functionalcurrency.T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>ransactions in foreign currency are translated using the exchange rate at the transaction date or a hedged rate. Monetary items in foreign curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ency are translated usingthe exchange rates at the balance sheet date. Accounts of foreign subsidiaries ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e translated using the exchange rates at the balance sheet date for balance sheet items,and the periodic average exchange rates for items of theincome statement.T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>ransactions in Russian rubles were since March 2022 translated using exchange rates published by the RussianNational bank. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>ransactions in rubles were translated using the exchange rates at the balance sheet date forbalance sheet items, and the periodic average exchangerates for items of the income statement.All exchange rate adjustments are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ecognised in the income statement under financial items, apart from theexchange rate differ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ences arising on:– Conversion of equity in subsidiaries at the beginningof the financial year using the exchange rates at thebalance sheet date;– Conversion of the profit for the year fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>om averageexchange rates to exchange rates at the balance sheetdate;– Conversion of long-term intercompany balances that constitute an addition to the holding of shares in subsidiaries;– Conversion of the forward hedging of capitalinvestments in subsidiaries;– Conversion of capital investments in associated andother companies; and,– Profit and loss on ef<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>fective derivative financialinstruments used to hedge expected futuretransactions.These value adjustments are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ecognised directly underother comprehensive income.1.3 New and amended standardsand interpretationsImplementation of new or changed accounting standards and interpr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>etationsEffective fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>om 1 January 2022, the Group hasimplemented the following amendments to standards(IAS and IFRS):– IAS 16, IAS 37, IFRS 3 and annual improvements 2018-2020.The adoption of the new or amended standards has notimpacted our consolidated financial accounts for 2022 and is not anticipated to have a significant impact on future periods.New and amended standards and interpr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>etation notyet adoptedIASB has issued new or amended accounting standards and interpretations that have not yet become ef<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>fectiveand have consequently not been implemented in the consolidated financial statements for 2022. The Group expects to adopt the accounting standar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ds and interpretations when they become mandatory.None of the new or amended standards orinterpretations ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e expected to have a significant impacton the consolidated financial statements.1.4 Reporting under the ESEFRegulationThe Commission Delegated Regulation (EU) 2019/815on the European Single Electr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>onic Format (ESEFRegulation) has introduced a single electr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>onic reportingformat for the annual financial reports of issuers withsecurities listed on the EU regulated markets.The ESEF Regulation sets out the annual financialreports shall be disclosed using the XHTML formatand that the statements and notes in the consolidatedfinancial statements shall be tagged using inlineeXtensible Business Reporting Language (iXBRL).IXBRL tags shall comply with the ESEF taxonomy, which isincluded in the ESEF Regulation and developed based onthe IFRS taxonomy published in the IFRS Foundation.As part of the tagging process financial statement lineitems and notes are marked up to elements in the ESEFtaxonomy. If a financial statement line item or note isnot defined in the ESEF taxonomy, an extension to thetaxonomy is created. Extensions have to be anchor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>edin the ESEF taxonomy, except for extensions which aresubtotals.The Annual Report submitted to the Danish FinancialSupervisory Authority (The Officially AppointedMechanisms) consists of the XHTML document togetherwith some technical files all included in a ZIP file namedROCK-2022-12-31-en.zip.NotesNet salesThe Group pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>oduces and sells a range of non-combustible stone wool insulation products, insolutions for ceiling systems, vent faand water management and stone wool substrate solutions for the professional horticultural.Sales are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ecognised when control of the products has<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> transferred to the customer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>, being when the products are deliver<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ed to the customer and the risk has been transferred. The product ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e ofte sold with retrospective volume<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> 30discounts based on aggregate saperiod. Revenue from these sales is r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ecognised basedon the price specified in the contract, net of theestimated volume discounts. Accumulated experience is used to estimate and provide for the discounts, usingthe expected value method.The sales include no element of financing as the sales are made with cr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>edit terms of nor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>mally 30-60 days consistent with market practice.A receivable is r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ecognised when the products are deliver<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ed as this is the point in time that the consideration is unconditional because only the passage of time is requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ed before the payment is due.Segmented accountsGroup Management has determined the business segments for the purpose of assessing business performance andallocating resour<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ces. Primarily segments are based onproductprimarilfriction and thermal performance, as Systems segment is defined as non-thermal insulation products. Nearly all external sales consist of sales of products.Segmental data is stated for business areas and geographical areas. The split by business ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>eas is inaccordance with the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>oup’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>nal reporting.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> The segmental data is presented accor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ding to the sameprinciple as the consolidated financial statements. Thesegmental EBIT includes net sales and expenditure including non-recurring expenditur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e operationally a 12-month related to the segment.T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>wo different shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e-based incent<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>ive programmes<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> have been established: A stock option programme and a restricted shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e programme (RSUs). Both programmes ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e classified as equity based, as they are settled in shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>es. Due to local rules, a minor part of both programmes is given as phantom shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>es and is classified as cash-based, as they are settled in cash. The programmes ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e offered to Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup Management and other senior executives. The incentive programmes are part of the variable part of the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>emuneration and follows the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s Remuneration policy. Participation in the programmes ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e at the Remuneration Committeesdiscretion and no individual has a contractual right to participate or receive any guaranteed benefit.Stock optionsOn issuance of stock options, the fair value of the options is assessed using the Black &amp; Scholes formula at the time<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> of grant and is recognised in personnel costs in the incomestatement and in equity over the three-year vesting period.A part of the stock options is given as phantom shares(cash-based programme) and ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e adjusted after initialrecognition to fair value thr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ough financial expenses inthe income statement against a related pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ovision.Restricted Share Units (RSUs)When RSUs are issued, the value of the RSUs at grantdate is recognised in personnel cost in the income statement and in equity over the three-year vesting period. On initial recognition of the RSUs, the number ofRSUs expected to vest is estimated. Subsequently, the estimate is revised so the total cost r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ecognised is basedon the actual number of RSUs vested. The fair value ofRSUs is determined based on the quoted share priceat grant adjusted for expected dividend payout (basedon historic dividend payout ratio). The participants arecompensated for any dividend payment by receivingadditional RSUs.A minor part of the RSUs are given as phantom shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>es(cash-based programme) and ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e after initial recognitionadjusted to fair value through financial expenses in the income statement against a related pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ovision.The costs of resear<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ch activities are carried as expenditure in the year in which they are incurr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed. The costs of development projects which ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e clearly defined and identifiable, and of which the potential technical and commercial exploitation is demonstrated, are capitalised to the extent that they are expected<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> to generate future r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>evenue. Other development costs are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ecognised on an ongoing basis in the income statement under operating costs.Intangible assets, apart from goodwill, ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e stated at cost less accumulated amortisation and write-downs.Amortisation of the following intangible assets is madeon a straight-line basis over the expected future lifetimeof the assets, which is:Development projects: <span xmlns="http://www.w3.org/1999/xhtml" class="_ _173"> </span>2-10 yearsPatents: <span xmlns="http://www.w3.org/1999/xhtml" class="_ _182"> </span>5-20 yearsSoftware: <span xmlns="http://www.w3.org/1999/xhtml" class="_ _191"> </span>2-4 yearsT<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>rademarks: <span xmlns="http://www.w3.org/1999/xhtml" class="_ _192"> </span>10-20 yearsCustomer relationships: <span xmlns="http://www.w3.org/1999/xhtml" class="_ _193"> </span>10-15 yearsGoodwill arisen from acquisition of enterprises and activities is stated at cost. The carrying amount of goodwill is allocated to the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s cash-generating units at the acquisition date. Identification of independent cash-generating units is based on business structure and level of internal control of cash flow<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. Goodwill is tested annually for impairment andthe carrying amount of other assets is reviewed onindications of impairment. When testing for impair<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>ment,the value is written down to the estimated net salesprice or the value in use, if greater<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>. Software in progr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ess is also tested for impairment annually.T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>angible assets are stated at cost less accumulated depreciation and impairment losses. The cost of technical plant and machinery manufactured by the Group comprises the acquisition cost, expenditure<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> directly r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>elated to the acquisition, engineering hours, including indirect pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>oduction costs and borrowing costs.Depreciation is carried out on a straight-line basis, based on current assessment of their useful lives and scrap value. The expected lifetimes are: <span xmlns="http://www.w3.org/1999/xhtml" class="_ _19c"> </span> Buildings: <span xmlns="http://www.w3.org/1999/xhtml" class="_ _4b"> </span>20-40 years Plant and machinery: <span xmlns="http://www.w3.org/1999/xhtml" class="_ _19d"> </span>5-15 years Other operating equipment: <span xmlns="http://www.w3.org/1999/xhtml" class="_ _19e"> </span>3-10 yearsOn sale or scrapping of assets, any losses or gains are included under other operating income for the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>.Investment grants are deducted in the cost of the equivalent tangible assets.Whether a contract contains a lease is assessed atcontract inception. For identified leases, a right-of-use(RoU) asset and corresponding liability are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognisedon the lease commencement date.Assets and liabilities arising from a lease are initiallymeasured on a pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>esent value basis. Lease liabilitiesinclude the net present value of the payments, whichare fixed or variable payments dependent on an indexor a rate. When adjustments to lease payments basedon an index or a rate take effect, the lease liability isreassessed and adjusted against the lease asset. Servicecomponents are excluded fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>om the lease liability exceptfrom those r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>elating to cars.T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>o measure the lease liability at an amount equal to the net present value of the lease payments, a discount rateis used. For this purpose, the Group generally uses itsincremental borr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>owing rate (IBR). The IBR is calculatedper main country/region per asset type consideringdiffer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ent length of the lease terms.The lease payments have been split into an interest costand a repayment of the lease liability.RoU assets are measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ed at cost corresponding tothe lease liability recognised, adjusted for any leaseprepayments or dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ectly related costs, includingrestoration costs.RoU assets are depr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>eciated on a straight-line basis over theshorter of the expected lease term and the asset’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s useful<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>life. RoU assets are tested for impairment whenever there isan indication that the assets may be impaired.Extension and termination options are included in a number of property and equipment leases acr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>oss the Group. The majority of extension and termination options held are exer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>cisable only by the Group and not by the respective lessor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>. If the lease contract contains an extension or purchase option that the Group considers<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> reasonably certain to be exer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>cised, these are included in the measurement of the liability.Short-term leases and leases of low value are recognised ona straight-line basis as cost in the income statement.The Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s portfolio of leases covers leases of office<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> buildings, warehouses and other equipment such as carsand forklifts. Leases for offices and other buildings havelease terms between 2-22 years, warehouses between3-10 years while car and forklift leases generally havelease terms between 3-5 years. The Group also hasa few long-term site leases with lease ter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>ms up to 99years.When there is an indication of a reduction in the<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> profitability of an asset, an impairment test is performed for the assets in question and write-downs are made, if necessary. For goodwill, annual impairment tests are made. Therecoverable amounts of the assets and cash-generating units (CGUs) have been determined based on value-in-use calculations. When testing for impairment, the valueis written down to the estimated recoverable amount, iflower than the carrying amount.The carrying amount of other non-current assets is tested for impairment once a year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. The carrying amount of property, plant and equipment is tested forimpairment when there is indication of change in thestructural profitability.Pension payments concerning defined contribution plans are<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> recognised on an ongoing basis in the income statement. Defined benefit plans are stated at the net pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>esent valueat the balance sheet date and included in the consolidatedfinancial statements. Adjustments of the plans are carriedout on a regular basis in accor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>dance with underlyingactuarial assessments. Actuarial gains or losses for defined benefit plans are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ecognised in full in the period in which they occur in other comprehensive income. The actuarial assessment is carried out every year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>.Funded benefit plans have assets placed in trustee-administered pension funds, which ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e governed bylocal regulations and practice in each country.The payments to the pension funds are based on the usual actuarial assessments and are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ecognised in the income statement after maturity. Provided that the actuarial assessments of pension obligations show noticeable excess solvency or insolvency in relation tothe pension fund’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s assets, the difference is enter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ed to the balance sheet and the future payments ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e adjustedaccordingly. With regard to these schemes, the actuarialassessment is also carried out every year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>.Provisions ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e recognised where a legal or constructive<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> obligation has been incurred as a r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>esult of past events and if it is probable it will lead to an outflow of financial resour<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ces and if the size of the liability can be measured on a reliable basis. The pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ovision is calculated as theamount expected to be paid to settle the obligation.Inventories are valued at the lowest value of historical cost calculated as a weighted average or the net realisation value. The cost of finished goods and work in progr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ess include the direct costs of pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>oduction materials and wages, as well as indirect pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>oducosts, maintenance cos costs such as personne and depreciation of plant amachinery.T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>rade receivables are measured at amortised cost less<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> allowance for bad debt based on the expected credit loss model.The Group applies the simplified approach to measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eexpected credit losses, which uses a lifetime expectedloss allowance for all trade receivables.T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>o measure the expected credit losses, trade r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>eceivables have been grouped based on shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ed credit riskcharacteristics and the days past due.The expected loss rates are based on the paymentprofiles of sales over a period of 60 months befor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e 1January 2022 and the corresponding historical cr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>editlosses experienced within this period. The historical lossrates are adjusted to r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>eflect current and forward-lookinginformation on macroeconomic factors affecting theability of the customers to settle the receivables.The costs of allowance for bad debts and realised lossesduring the year are included in other external costs.Financial income and expenses comprise interest income and interest costs, inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>est costs compiled from lease liabilities, realised and unr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ealised foreign exchange gains and losses, as well as fair value adjustments of cash-settled share-based incentiveprogrammes which ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e offset against other liabilities.Further<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>, they include adjustments to fair value hedges, and income and costs relating to cash flow hedges transferred fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>om other comprehensive income on realisation of the hedged items.Derivative financial instruments are initially recognised<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> in the balance sheet at cost price and are subsequently measured at fair value. Derivative financial instruments are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ecognised in other receivables and other payables. Changes to the fair value of derivative financial instruments, which meet the conditions for hedging the fair value of a recognised asset or liability, are<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> recognised in the income statement together with any changes in the fair value of the hedged asset or liability.Changes to the fair value of derivative financial instruments, which meet the conditions for hedging future cash flow<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, are recognised in other compr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ehensive income provided the hedge has been ef<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>fective. Hedge effectiveness is determined at the inception of the hedge relationship, and thr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ough periodic prospective effectiveness assessments to ensur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e that an economic relationship exists between the hedged item andhedging instrument. The accumulated value adjustmentrelated to these hedge transactions is transferr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ed fromother comprehensive income when the position is realised, and is included in the value of the hedged position e.g. the adjustment follows the cash flow<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.For derivative financial instruments, which do not qualify as hedging instruments, changes to the fair value are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ecognised on an ongoing basis in the income statement as financial income or financial expenses.ROCKWOOL A/S has a reserve of own shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>es recognised in r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>etained earnings. The shares are bought back to meet obligations under the Group's equity-basedstock option and restricted shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e unit programmes and as part of the Group's shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e buy-back programme.The parent company is taxed jointly with all Danish subsidiaries. Income subject to joint taxation is fully distributed. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>ax on profit for the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>, which includes current tax on pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ofit for the year and changes to deferred tax, is r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ecognised in the income statement. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>ax on changes in other comprehensive income is recognised dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ectly under other comprehensive income.Provisions for deferr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ed tax are calculated on all temporary differ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ences between accounting and taxable values, calculated using the balance-sheet liability method.Deferred tax pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ovisions are also made to cover the re-taxation of losses in jointly taxed for<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>eign companies previously included in the Danish joint taxation.Companies within the Group may be entitled to claimspecial tax deductions for investments in qualifyingassets or in relation to qualifying expenditure. The Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oupaccounts for such allowances as tax credits. Consequently, the allowance reduces income tax payables and curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ent tax expense. A deferred tax asset is r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ecognised for unclaimed tax credits that ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e carried forward.Deferred tax assets ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e recognised when it is probable thatthe assets will reduce tax payments in coming years andthey are assessed at the expected net r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ealisable value.Deferred tax is stated accor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ding to current tax regulations.Changes in deferred tax as a consequence of changes intax rates are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ecognised in the income statement.Provisions for legal pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>oceedings are recognised if they<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> are certain or pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>obable at the balance sheet date, and if the size of the liability can be measured on a reliable<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> basis. Legal proceedings for which no r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>eliable estimate can be made are disclosed as contingent liabilities.Definition of key figur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es and ratiosEBITDAEarnings before depreciation, write-downs, amortisations, financial items and taxEBITEarnings before financial items and taxNet working capital (NWC)T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>rade receivables, other receivables and other current<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> operating assets less trade payables, other payables and other current operational liabilities adjusted for investment payablesInvested capitalNWC + intangible assets, tangible assets and right-of-use assets less non-interest bearing liabilities andinvestment payablesNet interest bearing debtCash less bank loans and other loans less bank debt less lease liabilitiesEBITDA margin (%)EBITDAx 100%Net salesEBIT margin (%)EBITx 100%Net salesEarnings per share of DKK 10 (EUR 1.3)Profit for the year excl. non-contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>olling interests Average number of outstanding shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>esDiluted earnings per share of DKK 10 (EUR 1.3)Profit for the year excl. non-contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>olling interests Diluted average number of outstanding sharesCash flow per share of DKK 10 (EUR 1.3)Cash flows from operating activities Average number of outstanding shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>esDividend per share of DKK 10 (EUR 1.3)Proposed dividend for the year Number of shares at the end of the yearBook value per share of DKK 10 (EUR 1.3)Equity end of the year excl. non-controlling interests Number of shares at the end of the yearROICEBITx 100%Average invested capital including goodwillReturn on equity (%)Profit for the year excl. non-contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>olling interestsx 100%Average equity excl. non-contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>olling interestsEquity ratio (%)Equity end of the year excl. non-controlling interestsx 100%T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>otal equity and liabilities at the end of the yearPayout ratio (%)Proposed dividend for the yearx 100%Profit for the year excl. non-contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>olling interestsLeverage ratioNet interest-bearing debt EBITDA Financial gearingNet interest-bearing debtEquity end of the yearMarket capNumber of outstanding shares x shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e priceGrowth in local curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>encyGrowth rates excluding curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ency impact, as bothperiods are using the same exchange rates.Non-financial key figuresFor definition of the non-financial key figures mentioned on p. 8, please refer to the Sustainability Report at www<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.rockwool.com/group/about-us/sustainability/sustainability-report-2022/.RA<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>TIOSThe ratios have been calculated in accordance withwww<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.keyratios.org/ issued by CF<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>A Society Denmark. The ratios mentioned in the five-year summary arecalculated as described in the definitions above.EXCHANGE RA<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>TEAverage DKK/EUR2022<span xmlns="http://www.w3.org/1999/xhtml" class="fc1 ls0 ws0"> <span class="_ _234"> </span></span>7.442021<span xmlns="http://www.w3.org/1999/xhtml" class="fc1 ls0 ws0"> <span class="_ _234"> </span><span class="fc2">7</span></span>.442020 7.452019 7.462018 7.45Accounts of foreign subsidiaries ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e translated using theexchange rates at the balance sheet date for balancesheet items, and the periodic average exchange ratesfor items of the income statement. The consolidated cash flow statement is compiled using the indirect method on the basis of EBIT. The cash flow statement shows flows from operating, investing and financing activities for the year, as well as cash and cash equivalents at the beginning and at the end of the year. Cash flows from operating activities comprises operatingprofit before financial items adjusted for non-cash itemsand changes in working capital.Cash flows from investing activities comprise paymentsrelating to acquisition and sale of companies, intangibleand tangible assets and other asset investments.Cash flows from financing activities comprise proceeds from borrowings, repayment of lease liabilities and debt,payment of dividends, sale and purchase of own shares,transactions with non-controlling interests and increases of the share capital.Cash available includes cash less short-term bank debt. Individual items in the cash flow statement cannot be directly deduced from the consolidated balance sheet.4.3 Other cash flow notesAdjustments of non-cash operating itemsMEUR 2022 2021Provisions 2 -7Expensed value of RSUs issued 3 2Gain/loss on sale of intangible and tangible assets -1 -Adjustments of non-cash operating items 4 -5Changes in net working capitalMEUR 2022 2021Change in inventories -113 -89Change in trade receivables -48 -47Change in other receivables 10 -45Change in trade payables -8 91Change in other payables 11 8Change in net working capital -148 -82 402000000 401000000 236000000 201000000 4000000 -5000000 148000000 82000000 494000000 515000000 10000000 10000000 38000000 17000000 72000000 82000000 394000000 426000000 326000000 295000000 1000000 0 8000000 7000000 1000000 8000000 -334000000 -310000000 60000000 116000000 102000000 93000000 0 3000000 2000000 4000000 1000000 1000000 0 8000000 26000000 21000000 0 -8000000 124000000 26000000 9000000 100000000 -14000000 -194000000 46000000 -78000000 165000000 240000000 -9000000 3000000 202000000 165000000 500000000 600000000 Dividend is included as a liability at the time of adoptionby the Annual General Meeting. Dividend that isexpected to be paid for the year is shown separately inthe equity. Sale and purchase of, as well as dividends on ownshares are recognised under retained earnings in the equity. 29000000 -134000000 102000000 2398000000 -1000000 2394000000 0 2394000000 0 0 102000000 171000000 0 273000000 0 273000000 0 17000000 0 -4000000 0 13000000 0 13000000 0 17000000 102000000 167000000 0 286000000 0 286000000 0 0 0 2000000 0 2000000 0 2000000 0 0 0 1000000 0 1000000 0 1000000 0 0 0 2000000 0 2000000 0 2000000 0 0 102000000 -1000000 0 101000000 0 101000000 29000000 -117000000 102000000 2567000000 -1000000 2580000000 0 2580000000 29000000 -212000000 94000000 2178000000 -1000000 2088000000 4000000 2092000000 0 0 102000000 201000000 0 303000000 0 303000000 0 78000000 0 26000000 0 104000000 0 104000000 0 78000000 102000000 227000000 0 407000000 0 407000000 0 0 0 3000000 0 3000000 0 3000000 0 0 0 4000000 0 4000000 0 4000000 0 0 0 1000000 0 1000000 0 1000000 0 0 0 2000000 0 2000000 0 2000000 0 0 0 -4000000 0 -4000000 -4000000 -8000000 0 0 94000000 -1000000 0 93000000 0 93000000 29000000 -134000000 102000000 2398000000 -1000000 2394000000 0 2394000000 1.1 Critical accounting estimatesand judgementsThe preparation of the consolidated financial statementsrequir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>es Management to make accounting estimatesand assumptions that have a significant effect on theapplication of policies and reported amounts of assets, liabilities, income, expenses, and related disclosures.The most significant accounting estimates andjudgements are pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>esented below<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.The application of the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s accounting policies may requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e Management to make judgments that can havea significant effect on the amounts r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ecognised in theconsolidated financial statements. When determiningthe carrying amount of some assets and liabilities itrequir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>es Management to make judgments, estimatesand assumptions concerning future events.The estimates and underlying assumptions are basedon professional experience, historical experience andvarious other factors that Management considersappropriate under the given cir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>cumstances. Actualresults may dif<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>fer from these estimates. The estimates and underlying assumptions are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>eviewedon an ongoing basis. Changes in estimates may benecessary if there ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e changes in the circumstanceson which the estimate was based, or if more detailed information becomes available. Such changes are recognised in the period in which the estimate in question is revised.Below are the accounting estimates and judgements,which Management considers significant to thepreparation of the consolidated financial statements:Accounting estimates– Impairment testing (note 3.5)– Deferred tax assets and uncertain tax positions(note 6.1)Judgements– Expected lifetime for tangible assets (note 3.2)The accounting policies are described in each of thespecific notes to the financial statements, which alsoinclude additional description of the most significantaccounting estimates and judgements.1.2 General accounting policiesThe Annual Report for ROCKWOOL A/S has been prepar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>edin accordance with International Financial ReportingStandards (IFRS) as adopted by the EU and furtherrequir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ements in the Danish Financial Statements Act.The financial year for the Group is 1 January – 31December 2022.Group AccountsThe consolidated financial statements compriseROCKWOOL A/S and the entities in which the companyand its subsidiaries hold the majority of the voting rights.The consolidated financial statements have beenprepar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ed as a consolidation of the parent company’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s and the individual subsidiaries’ financial statements,determined according to the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s accounting policies, and with elimination of dividends, internalrevenue and expenditur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e items, internal profits aswell as intercompany balances and inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>companyshareholdings.Besides shares, capital investments in subsidiaries include long-term loans to subsidiaries if such loans constitute an addition to the shareholding.T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>ranslation of foreign currencyThe Annual Report has been presented in Eur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>o (EUR)which is the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s presentation curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ency. Each company in the Group determines its own functionalcurrency.T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>ransactions in foreign currency are translated using the exchange rate at the transaction date or a hedged rate. Monetary items in foreign curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ency are translated usingthe exchange rates at the balance sheet date. Accounts of foreign subsidiaries ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e translated using the exchange rates at the balance sheet date for balance sheet items,and the periodic average exchange rates for items of theincome statement.T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>ransactions in Russian rubles were since March 2022 translated using exchange rates published by the RussianNational bank. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>ransactions in rubles were translated using the exchange rates at the balance sheet date forbalance sheet items, and the periodic average exchangerates for items of the income statement.All exchange rate adjustments are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ecognised in the income statement under financial items, apart from theexchange rate differ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ences arising on:– Conversion of equity in subsidiaries at the beginningof the financial year using the exchange rates at thebalance sheet date;– Conversion of the profit for the year fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>om averageexchange rates to exchange rates at the balance sheetdate;– Conversion of long-term intercompany balances that constitute an addition to the holding of shares in subsidiaries;– Conversion of the forward hedging of capitalinvestments in subsidiaries;– Conversion of capital investments in associated andother companies; and,– Profit and loss on ef<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>fective derivative financialinstruments used to hedge expected futuretransactions.These value adjustments are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ecognised directly underother comprehensive income.1.3 New and amended standardsand interpretationsImplementation of new or changed accounting standards and interpr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>etationsEffective fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>om 1 January 2022, the Group hasimplemented the following amendments to standards(IAS and IFRS):– IAS 16, IAS 37, IFRS 3 and annual improvements 2018-2020.The adoption of the new or amended standards has notimpacted our consolidated financial accounts for 2022 and is not anticipated to have a significant impact on future periods.New and amended standards and interpr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>etation notyet adoptedIASB has issued new or amended accounting standards and interpretations that have not yet become ef<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>fectiveand have consequently not been implemented in the consolidated financial statements for 2022. The Group expects to adopt the accounting standar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ds and interpretations when they become mandatory.None of the new or amended standards orinterpretations ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e expected to have a significant impacton the consolidated financial statements.1.4 Reporting under the ESEFRegulationThe Commission Delegated Regulation (EU) 2019/815on the European Single Electr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>onic Format (ESEFRegulation) has introduced a single electr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>onic reportingformat for the annual financial reports of issuers withsecurities listed on the EU regulated markets.The ESEF Regulation sets out the annual financialreports shall be disclosed using the XHTML formatand that the statements and notes in the consolidatedfinancial statements shall be tagged using inlineeXtensible Business Reporting Language (iXBRL).IXBRL tags shall comply with the ESEF taxonomy, which isincluded in the ESEF Regulation and developed based onthe IFRS taxonomy published in the IFRS Foundation.As part of the tagging process financial statement lineitems and notes are marked up to elements in the ESEFtaxonomy. If a financial statement line item or note isnot defined in the ESEF taxonomy, an extension to thetaxonomy is created. Extensions have to be anchor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>edin the ESEF taxonomy, except for extensions which aresubtotals.The Annual Report submitted to the Danish FinancialSupervisory Authority (The Officially AppointedMechanisms) consists of the XHTML document togetherwith some technical files all included in a ZIP file namedROCK-2022-12-31-en.zip.Notes2.1 Net sales and segmented accountsAccounting policiesNet salesThe Group pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>oduces and sells a range of non-combustible stone wool insulation products, in solutions for ceiling systems, vent faand water management and stone wool substrate solutions for the professional horticultural.Sales are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ecognised when control of the products has<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> transferred to the customer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>, being when the products are deliver<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ed to the customer and the risk has been transferred. The product ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e ofte sold with retrospective volume<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> 30discounts based on aggregate saperiod. Revenue from these sales is r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ecognised basedon the price specified in the contract, net of theestimated volume discounts. Accumulated experience is used to estimate and provide for the discounts, usingthe expected value method.The sales include no element of financing as the sales are made with cr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>edit terms of nor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>mally 30-60 days consistent with market practice.A receivable is r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ecognised when the products are deliver<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ed as this is the point in time that the consideration is unconditional because only the passage of time is requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ed before the payment is due.Segmented accountsGroup Management has determined the business segments for the purpose of assessing business performance andallocating resour<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ces. Primarily segments are based onproductprimarilfriction and thermal performance, as Systems segment is defined as non-thermal insulation products. Nearly all external sales consist of sales of products.Segmental data is stated for business areas and geographical areas. The split by business ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>eas is inaccordance with the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>oup’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>nal reporting.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> The segmental data is presented accor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ding to the sameprinciple as the consolidated financial statements. Thesegmental EBIT includes net sales and expenditure including non-recurring expenditur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e operationally a 12-month related to the segment.CommentsROCKWOOL Group operates in two business segmentsbased on products: Insulation segment and Systemssegment. The information is based on the managementstructure and internal management reporting to Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>oupManagement and constitutes the reportable segments.Headquarters costs are allocated to the business segments based on allocation keys used in the internalmanagement reporting. These allocation keys arereassessed annually based on planned activity in thesegments. Intangible and tangible assets and relatedamortisation/depreciation are not fully allocated tobusiness segments as all stone wool production isdone in the Insulation segment. Financial income andexpenses, and income taxes are managed at Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ouplevel and are not allocated to business segments.Business segments and sales reportingInsulation<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> <span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> Systems<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> <span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> ROCKWOOLsegmentsegment<span xmlns="http://www.w3.org/1999/xhtml" class="_ _96"> </span>EliminationsGroupMEUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _15b"> </span>2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a4"> </span>2021<span xmlns="http://www.w3.org/1999/xhtml" class="_ _42"> </span>2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a4"> </span>2021<span xmlns="http://www.w3.org/1999/xhtml" class="_ _42"> </span>2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _42"> </span>2021<span xmlns="http://www.w3.org/1999/xhtml" class="_ _42"> </span>2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a4"> </span>2021External net sales <span xmlns="http://www.w3.org/1999/xhtml" class="_ _170"> </span>3 034<span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span>2 291<span xmlns="http://www.w3.org/1999/xhtml" class="_ _171"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ws2e">873<span class="_ _171"> </span>797<span class="_ _172"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _71"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span>3 907<span xmlns="http://www.w3.org/1999/xhtml" class="_ _b4"> </span>3 088Internal net sales<span xmlns="http://www.w3.org/1999/xhtml" class="_ _173"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">437<span class="_ _171"> </span>354<span class="_ _172"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _71"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-437<span class="_ _14"> </span>-354<span class="_ _172"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _172"> </span>-EBIT <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">312<span class="_ _67"> </span>275<span class="_ _174"> </span>90<span class="_ _67"> </span>126<span class="_ _ab"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _172"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span>402<span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span>401EBIT margin<span xmlns="http://www.w3.org/1999/xhtml" class="_ _159"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">9.0%<span class="_ _5e"> </span>10.4%<span class="_ _da"> </span>10.3%<span class="_ _da"> </span>15.9%<span class="_ _172"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _172"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span>10.3%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span>13.0%Financial items and income-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _71"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _172"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _172"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _71"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _172"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c"> </span>-44<span xmlns="http://www.w3.org/1999/xhtml" class="_ _97"> </span>-8from associated companiesT<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>ax on profit for the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _175"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _71"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _172"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _172"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _71"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _172"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c"> </span>-85<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e"> </span>-90Profit for the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _176"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _172"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _82"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _82"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _172"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _82"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span>273<span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span>303Goods transferred at a point in time3 034<span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span>2 291<span xmlns="http://www.w3.org/1999/xhtml" class="_ _171"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ws2e">873<span class="_ _171"> </span>797<span class="_ _172"> </span></span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-<span class="_ _71"> </span>-<span class="_ _33"> </span></span>3 907<span xmlns="http://www.w3.org/1999/xhtml" class="_ _b4"> </span>3 088Non-current asset additions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _79"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">289<span class="_ _4a"> </span>295<span class="_ _177"> </span>83<span class="_ _177"> </span>58<span class="_ _172"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _172"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _4a"> </span>372<span xmlns="http://www.w3.org/1999/xhtml" class="_ _171"> </span>353Intangible andtangible assets202220219729114273947537002 1522 005Geographical segmentsNet salesMEUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _10b"> </span>2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fa"> </span>2021<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fa"> </span>Western Europe<span xmlns="http://www.w3.org/1999/xhtml" class="_ _ea"> </span>2 290<span xmlns="http://www.w3.org/1999/xhtml" class="_ _12d"> </span>1 834<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7d"> </span>Eastern Europe and Russia <span xmlns="http://www.w3.org/1999/xhtml" class="_ _178"> </span>813<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7d"> </span>562<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9a"> </span>North America, Asia and others<span xmlns="http://www.w3.org/1999/xhtml" class="_ _179"> </span>804<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7d"> </span>692<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9a"> </span>T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17a"> </span>3 907<span xmlns="http://www.w3.org/1999/xhtml" class="_ _ae"> </span>3 088<span xmlns="http://www.w3.org/1999/xhtml" class="_ _ae"> </span>CommentsInternal net sales from the Insulation segment to the Systems segment are at arms’ length prices. The Insulation segment includes among others interior building insulation, façade insulation, roof insulation and industrial and technical insulation. The Systems segment includes acoustic ceilings and walls, cladding boards, engineer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ed fibres, noise andvibration control, and horticultural substrates.The geographical net sales information is based on the location of the customers, while the information regar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ding the geographical assets distribution is based on the physical placement of the assets. The domestic sales in Denmark were in the range of 3-4percent of the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>oup’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s net sales in both 2022 and 2021. The domestic intangible and tangible assets in Denmark amount to 196 MEUR (2021: 172 MEUR).No customers exceed 10 percent of the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>oup’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s net sales<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> neither this year nor last year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>. In Ger<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>many and France net sales amount to between 10-15 percent of the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>oup’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s total<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> net sales in both 2022 and 2021. In the United States net sales amount to between 10-20 percent of the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>oup’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s total<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> net sales in 2021. In no other country does net sales exceed10 percent of the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>oup’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s total net sales.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> In 2022 and 2021, intangible and tangible assets in the United States and Germany exceeded 10 percent of theGroup's total intangible and tangible assets.2.2 Personnel costsCommentsRemuneration of Group Management (key managementpersonnel) complies with the principles of the Group'sRemuneration Policy.The variable part of the total remuneration, measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>edas short-term incentive maximum and annual long-ter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>mincentive grant, can be maximum 50 percent of the total remuneration. The short-term incentive (bonus) isdependent on achievement of individual targets andtargets for the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>oup's financial performance, which areannually approved by the Remuneration Committee. Inaddition, pension and other benefits are offer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed in line with market practice with a total value not exceeding 20 percent of base salary.The individual remuneration elements of eachRegistered Dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ector are disclosed in the annualRemuneration Report.No termination costs are included in 2022. In 2021,termination costs of less than 1 MEUR are included inthe remuneration to Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>oup Management.Personnel costsMEUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17b"> </span>2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fa"> </span>2021W<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ages and salaries<span xmlns="http://www.w3.org/1999/xhtml" class="_ _103"> </span>684<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7d"> </span>614Expended value of RSUs issued<span xmlns="http://www.w3.org/1999/xhtml" class="_ _139"> </span>2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>4Pension Cost<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17c"> </span>34<span xmlns="http://www.w3.org/1999/xhtml" class="_ _13"> </span>31Other social security cost<span xmlns="http://www.w3.org/1999/xhtml" class="_ _13a"> </span>91<span xmlns="http://www.w3.org/1999/xhtml" class="_ _13"> </span>84Personnel costs<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17d"> </span>811<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6"> </span>733Average number of employees<span xmlns="http://www.w3.org/1999/xhtml" class="_ _14e"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="_ _174"> </span>Remuneration to Group Management, Register<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ed Directors and Boar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>d of DirectorsPersonnel costs include the following to Group Management, Register<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ed directors and Board of Dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ectors:MEUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17b"> </span>2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fa"> </span>2021Group ManagementSalaries and other benefits to Group Management<span xmlns="http://www.w3.org/1999/xhtml" class="_ _106"> </span>7<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>7V<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>alue of expensed RSU costs or fair value adjustments to Group Management<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9c"> </span>1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>1Pension cost to Group Management<span xmlns="http://www.w3.org/1999/xhtml" class="_ _108"> </span>1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>1T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>otal to Group Management<span xmlns="http://www.w3.org/1999/xhtml" class="_ _140"> </span>9<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>9Hereof Register<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ed DirectorsHereof r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>emuneration to Registered Directors<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17e"> </span>3<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>3Hereof value of expensed RSU cost or fair value adjustments to Registered Dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ectors<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17f"> </span>1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>1Hereof pension cost to Register<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ed Directors<span xmlns="http://www.w3.org/1999/xhtml" class="_ _15e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _157"> </span>-T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>otal to Registered Directors<span xmlns="http://www.w3.org/1999/xhtml" class="_ _180"> </span>4<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a6"> </span>4Board of Dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ectorsRemuneration to Board of Directors<span xmlns="http://www.w3.org/1999/xhtml" class="_ _181"> </span>1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>1T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>otal remuneration to Registered Dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ectors and Board of Directors<span xmlns="http://www.w3.org/1999/xhtml" class="_ _182"> </span>5<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a6"> </span>52.3 Long-term incentive programmesAccounting policiesT<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>wo different shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e-based incent<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>ive programmes<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> have been established: A stock option programme and a restricted shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e programme (RSUs). Both programmes ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e classified as equity based, as they are settled in shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>es. Due to local rules, a minor part of both programmes is given as phantom shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>es and is classified as cash-based, as they are settled in cash. The programmes ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e offered to Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup Management and other senior executives. The incentive programmes are part of the variable part of the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>emuneration and follows the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s Remuneration policy. Participation in the programmes ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e at the Remuneration Committeesdiscretion and no individual has a contractual right to participate or receive any guaranteed benefit.Stock optionsOn issuance of stock options, the fair value of the options is assessed using the Black &amp; Scholes formula at the time<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> of grant and is recognised in personnel costs in the incomestatement and in equity over the three-year vesting period.A part of the stock options is given as phantom shares(cash-based programme) and ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e adjusted after initialrecognition to fair value thr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ough financial expenses inthe income statement against a related pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ovision.Restricted Share Units (RSUs)When RSUs are issued, the value of the RSUs at grantdate is recognised in personnel cost in the income statement and in equity over the three-year vesting period. On initial recognition of the RSUs, the number ofRSUs expected to vest is estimated. Subsequently, the estimate is revised so the total cost r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ecognised is basedon the actual number of RSUs vested. The fair value ofRSUs is determined based on the quoted share priceat grant adjusted for expected dividend payout (basedon historic dividend payout ratio). The participants arecompensated for any dividend payment by receivingadditional RSUs.A minor part of the RSUs are given as phantom shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>es(cash-based programme) and ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e after initial recognitionadjusted to fair value through financial expenses in the income statement against a related pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ovision.CommentsStock optionsNo stock options have been granted since 2015. Theoutstanding options are all exercisable and fully vestedat the end of the reporting period.The average share price at exer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>cise in 2022 was209 EUR (2021: 409 EUR). All stock options are now exercised. In 2022, no stock options expir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ed. In 2021,the stock options granted in 2013 expired and theywere all exer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>cised.Stock option programmeStock options outstanding at year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>-end have the following exercise periods and exercise prices:Exercise <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6f"/> Number of stock<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> Number of stockTime of grant<span xmlns="http://www.w3.org/1999/xhtml" class="_ _41"> </span>Exercise periodprice (EUR)options 2022options 20212015<span xmlns="http://www.w3.org/1999/xhtml" class="_ _183"> </span>20.03.2018 - 19.03.2023<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> <span xmlns="http://www.w3.org/1999/xhtml" class="_ _4d"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff11 ws2e">103<span class="_ _c6"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _90"> </span>4 200-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2d"> </span>4 200In 2021, all remaining stock options belonged to senior executives.Development in outstanding stock options2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _184"> </span>2021Average <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6f"/> AverageNumber of<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"/> exercise <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6f"/> Number of<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"/> exercisestock optionsprice (EUR)stock optionsprice (EUR)Outstanding stock options 1/1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _185"> </span>4 200<span xmlns="http://www.w3.org/1999/xhtml" class="_ _92"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ws2e">103<span class="_ _a6"> </span></span>15 050<span xmlns="http://www.w3.org/1999/xhtml" class="_ _92"> </span>110Exercised <span xmlns="http://www.w3.org/1999/xhtml" class="_ _186"> </span>4 200<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8d"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ws2e">103<span class="_ _a6"> </span></span>10 850<span xmlns="http://www.w3.org/1999/xhtml" class="_ _92"> </span>114Outstanding stock options 31/12<span xmlns="http://www.w3.org/1999/xhtml" class="_ _185"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _175"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _80"> </span>4 200<span xmlns="http://www.w3.org/1999/xhtml" class="_ _bc"> </span>103CommentsRestricted Share UnitsRestricted Share Units (RSUs) will be subject to a vesting period of three years. After the vesting period the shares ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e transferred to the participants withoutpayment, subject to continued employment withROCKWOOL Group in the vesting period.The RSUs repr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>esent the employee's right to shares butdo not carry voting rights nor have any tangible valuebefore the RSUs ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e exercised and become actual Bshares of ROCKWOOL A/S. The terms of the shareincentive may provide that shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>es may be settled in cash in which case, the related pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ovision equals the share price at the time of vesting.The estimated fair value of RSUs granted in 2022 was 3MEUR (2021: 3 MEUR) at grant date. In 2022, 2 MEUR was expensed related to the RSUs(2021: 4 MEUR), of which 2 MEUR (2021: 4 MEUR) wasrecognised in personnel costs. In 2022, the fair value adjustment under finance expenses was close to zero(2021: close to zero).Cash-settled programmesThe cash-settled programmes consist of phantom shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>esgranted during the years 2019-2021.The employees granted the phantom shares participate on terms and conditions similar to those applying to the share options and the RSUs.There ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e no more phantom options outstanding fromthe 2013-2015 stock options. The outstanding RSUsfrom 2020-2022 include 3117 phantom shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>es (2021: 5014).The total intrinsic value of the phantom stock options/RSUs at year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>-end amounts to less than 1 MEUR (2021: 1MEUR), which is recognised as a liability.Restricted share units (RSUs)RSUs outstanding at year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>-end have the following vesting dates:V<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esting<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> Number of<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"/> Number ofTime of grantdateRSUs 2022RSUs 20212019<span xmlns="http://www.w3.org/1999/xhtml" class="_ _140"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">24.05.2022<span class="_ _80"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _174"> </span>10 3112020<span xmlns="http://www.w3.org/1999/xhtml" class="_ _140"> </span>23.05.2023<span xmlns="http://www.w3.org/1999/xhtml" class="_ _177"> </span>14 190<span xmlns="http://www.w3.org/1999/xhtml" class="_ _177"> </span>14 2262020, one-time award<span xmlns="http://www.w3.org/1999/xhtml" class="_ _187"> </span>26.05.2025<span xmlns="http://www.w3.org/1999/xhtml" class="_ _21"> </span>9 272<span xmlns="http://www.w3.org/1999/xhtml" class="_ _21"> </span>9 2722021<span xmlns="http://www.w3.org/1999/xhtml" class="_ _140"> </span>22.05.2024<span xmlns="http://www.w3.org/1999/xhtml" class="_ _12d"> </span>7 237<span xmlns="http://www.w3.org/1999/xhtml" class="_ _21"> </span>7 2512022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _140"> </span>21.05.2025<span xmlns="http://www.w3.org/1999/xhtml" class="_ _12d"> </span>9 353<span xmlns="http://www.w3.org/1999/xhtml" class="_ _80"> </span>-40 052<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e"> </span>41 060Weighted average r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>emaining contractual life of the outstandingRSUs at year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>-end (Y<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ear)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _188"> </span>1.5<span xmlns="http://www.w3.org/1999/xhtml" class="_ _189"> </span>1.8Of the number of RSUs 15 972 belong to <span xmlns="http://www.w3.org/1999/xhtml" class="ls120">Registered Directors</span> and 24 080 to other senior executives. In 2021, 16 364 belonged toRegistered Directors an<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>d 24 696 to o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ther senior executives.Development in number of outstanding RSUs2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fa"> </span>2021Outstanding RSUs 1/1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _144"> </span>41 060<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> <span xmlns="http://www.w3.org/1999/xhtml" class="_ _11"> </span>42 303Granted<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18a"> </span>9 908<span xmlns="http://www.w3.org/1999/xhtml" class="_ _21"> </span>7 559V<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ested<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18b"> </span>10 849<span xmlns="http://www.w3.org/1999/xhtml" class="_ _21"> </span>8 802Forfeited<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18c"> </span>67<span xmlns="http://www.w3.org/1999/xhtml" class="_ _80"> </span>-Outstanding RSUs 31/12 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _111"> </span>40 052<span xmlns="http://www.w3.org/1999/xhtml" class="_ _34"> </span>41 060The average share price the day following the vesting date was 257 EUR.3.1 Intangible assetsAccounting policiesThe costs of resear<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ch activities are carried as expenditure in the year in which they are incurr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed. The costs of development projects which ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e clearly defined and identifiable, and of which the potential technical and commercial exploitation is demonstrated, are capitalised to the extent that they are expected<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> to generate future r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>evenue. Other development costs are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ecognised on an ongoing basis in the income statement under operating costs.Intangible assets, apart from goodwill, ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e stated at cost less accumulated amortisation and write-downs.Amortisation of the following intangible assets is madeon a straight-line basis over the expected future lifetimeof the assets, which is:Development projects: <span xmlns="http://www.w3.org/1999/xhtml" class="_ _173"> </span>2-10 yearsPatents: <span xmlns="http://www.w3.org/1999/xhtml" class="_ _182"> </span>5-20 yearsSoftware: <span xmlns="http://www.w3.org/1999/xhtml" class="_ _191"> </span>2-4 yearsT<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>rademarks: <span xmlns="http://www.w3.org/1999/xhtml" class="_ _192"> </span>10-20 yearsCustomer relationships: <span xmlns="http://www.w3.org/1999/xhtml" class="_ _193"> </span>10-15 yearsGoodwill arisen from acquisition of enterprises and activities is stated at cost. The carrying amount of goodwill is allocated to the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s cash-generating units at the acquisition date. Identification of independent cash-generating units is based on business structure and level of internal control of cash flow<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. Goodwill is tested annually for impairment andthe carrying amount of other assets is reviewed onindications of impairment. When testing for impair<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>ment,the value is written down to the estimated net salesprice or the value in use, if greater<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>. Software in progr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ess is also tested for impairment annually.Intangible assets2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span>20<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>21Customer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6f"/> Other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"/> Software <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6f"/> Customer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6f"/> Other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"/> SoftwareMEUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _195"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff1 fc2 ls3f ws2e">Goodwill<span class="_ _8b"> </span>Software</span>relationshipsintangible assetsin progr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ess T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>otal Goodwill Softwarerelationshipsintangible assetsin progr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ess<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span>T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>otalCost 1/1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _179"> </span>133<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8d"> </span>93<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8d"> </span>89<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8f"> </span>34<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8d"> </span>17<span xmlns="http://www.w3.org/1999/xhtml" class="_ _99"> </span>366<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2d"> </span>127<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8d"> </span>92<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8f"> </span>82<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8d"> </span>42<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8f"> </span>12<span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span>355Exchange rate adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _197"> </span>5<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _157"> </span>7<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e"> </span>6<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>3<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _78"> </span>11Additions for the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _b1"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>3<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>4<span xmlns="http://www.w3.org/1999/xhtml" class="_ _157"> </span>7<span xmlns="http://www.w3.org/1999/xhtml" class="_ _175"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>5<span xmlns="http://www.w3.org/1999/xhtml" class="_ _157"> </span>7T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>ransfer of assets in progress<span xmlns="http://www.w3.org/1999/xhtml" class="_ _19a"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8f"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">18<span class="_ _91"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-18<span class="_ _77"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _175"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>3<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>4<span xmlns="http://www.w3.org/1999/xhtml" class="_ _87"> </span>-6<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2d"> </span>-1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d5"> </span>-Disposals for the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8c"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-17<span class="_ _91"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _87"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-3<span class="_ _91"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _89"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-20<span class="_ _175"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _bc"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-2<span class="_ _91"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _87"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-5<span class="_ _91"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _19b"> </span>-7Cost 31/12<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e0"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">138<span class="_ _93"> </span>97<span class="_ _93"> </span>91<span class="_ _93"> </span>31<span class="_ _199"> </span></span>3<span xmlns="http://www.w3.org/1999/xhtml" class="_ _124"> </span>360<span xmlns="http://www.w3.org/1999/xhtml" class="_ _87"> </span>133<span xmlns="http://www.w3.org/1999/xhtml" class="_ _93"> </span>93<span xmlns="http://www.w3.org/1999/xhtml" class="_ _93"> </span>89<span xmlns="http://www.w3.org/1999/xhtml" class="_ _93"> </span>34<span xmlns="http://www.w3.org/1999/xhtml" class="_ _93"> </span>17<span xmlns="http://www.w3.org/1999/xhtml" class="_ _124"> </span>366Amortisation and write-downs 1/1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _170"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">31<span class="_ _8d"> </span>84<span class="_ _8f"> </span>55<span class="_ _8d"> </span>20<span class="_ _91"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">190<span class="_ _c4"> </span>31<span class="_ _8d"> </span>79<span class="_ _8f"> </span>43<span class="_ _8d"> </span>21<span class="_ _198"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _99"> </span>174Exchange rate adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _185"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _157"> </span>1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _175"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _157"> </span>4Amortisation for the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _183"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>7<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>6<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _78"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">15<span class="_ _175"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>6<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>6<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span>14T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>ransfers<span xmlns="http://www.w3.org/1999/xhtml" class="_ _13d"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7f"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _175"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>4<span xmlns="http://www.w3.org/1999/xhtml" class="_ _bc"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-4<span class="_ _198"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d5"> </span>-Disposals for the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _bc"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-8<span class="_ _91"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _87"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-3<span class="_ _91"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _89"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-11<span class="_ _175"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _bc"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-2<span class="_ _198"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _19b"> </span>-2Amortisation and write-downs 31/12<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8d"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">31<span class="_ _93"> </span>83<span class="_ _93"> </span>62<span class="_ _93"> </span>19<span class="_ _c4"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9a"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">195<span class="_ _91"> </span>31<span class="_ _93"> </span>84<span class="_ _93"> </span>55<span class="_ _93"> </span>20<span class="_ _91"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _124"> </span>190Carrying amount 31/12<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e5"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">107<span class="_ _93"> </span>14<span class="_ _93"> </span>29<span class="_ _93"> </span>12<span class="_ _199"> </span></span>3<span xmlns="http://www.w3.org/1999/xhtml" class="_ _124"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">165<span class="_ _87"> </span>102<span class="_ _199"> </span></span>9<span xmlns="http://www.w3.org/1999/xhtml" class="_ _93"> </span>34<span xmlns="http://www.w3.org/1999/xhtml" class="_ _93"> </span>14<span xmlns="http://www.w3.org/1999/xhtml" class="_ _93"> </span>17<span xmlns="http://www.w3.org/1999/xhtml" class="_ _124"> </span>176During the year R&amp;D costs amounting to 55 MEUR (2021: 45 MEUR) have been expensed.CommentsGoodwill is allocated to cash generating units (CGUs) in Insulation segment at an amount of 45 MEUR (2021: 42 MEUR) and to CGUs in Systems segment at an amount of 62 MEUR (2021: 60 MEUR).Goodwill has been impairment tested for the identified CGUs, which for both years have not resulted in any value adjustments. The impairment test of goodwill is based on current and future r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>esults for the CGUs to where the results ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e allocated. Most of the goodwill in the Group is related<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> to the acquisition of Flumroc in 2017, Chicago Metallic in 2013 and CSR in 2010 and they are performing according to plan.Please refer to note 3.5 for further details.The carrying amount of other intangible assets includes brands amounting to 8 MEUR (2021: 10 MEUR) and patents amounting to 4 MEUR (2021: 4 MEUR).3.2 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _23"/>angible assetsAccounting policiesT<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>angible assets are stated at cost less accumulated depreciation and impairment losses. The cost of technical plant and machinery manufactured by the Group comprises the acquisition cost, expenditure<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> directly r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>elated to the acquisition, engineering hours, including indirect pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>oduction costs and borrowing costs.Depreciation is carried out on a straight-line basis, based on current assessment of their useful lives and scrap value. The expected lifetimes are: <span xmlns="http://www.w3.org/1999/xhtml" class="_ _19c"> </span> Buildings: <span xmlns="http://www.w3.org/1999/xhtml" class="_ _4b"> </span>20-40 years Plant and machinery: <span xmlns="http://www.w3.org/1999/xhtml" class="_ _19d"> </span>5-15 years Other operating equipment: <span xmlns="http://www.w3.org/1999/xhtml" class="_ _19e"> </span>3-10 yearsOn sale or scrapping of assets, any losses or gains are included under other operating income for the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>.Investment grants are deducted in the cost of the equivalent tangible assets.Critical estimatesand judgementsThe expected lifetime for tangible assets is determined based on past experience and expectations for future use of the assets. Especially the estimated lifetime of plant and machinery is linked to uncertainty dueto varying utilisation and the significant amount ofmaintenance costs. The expected future lifetime for theassets is evaluated annually.When there is an indication of a reduction in theprofitability of an asset, an impairment test is performedfor the assets in question and write-downs are made, ifnecessary.The recoverable amounts of the assets and cash-generating units are determined based on value-in-use calculations and fair value less cost to sell. Thesecalculations requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e the use of estimates as they arebased on budgets, business plans and projections forfive years and take into account previous experienceand repr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>esent Management’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s best estimate of future developments.CommentsOf the carrying amount of buildings and land, 121 MEUR (2021: 119 MEUR) represent sites not subject to<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> depreciation.Accumulated capitalised interests amounting to 7 MEUR(2021: 3 MEUR) are included in the cost of tangibleassets. Additional capitalised interest has been addedthis year as part of ongoing investments.For the recognised investment grants the conditionsare fulfilled or ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e reasonably assured to be fulfilled.Some of the received investment grants ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e subjectto repayment obligations pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ovided that the attachedconditions are not fulfilled within a number of years.The Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s investment grants are for the main part<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> received in<span xmlns="http://www.w3.org/1999/xhtml" class="fc9 ls0"> </span>China, Poland, Spain, Germany, Norway andthe United States. The investment grants received in2022 amount to 4 MEUR (2021: 13 MEUR). The grantsare in most cases linked to expansion of the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>oupincluding the amount of investment in tangible assetsand the creation of jobs - and is given as cash or loans.Only limited contingent liabilities exist.Contractual obligations for the purchase of tangibleassets at 31 December 2022 amount to 152 MEUR(2021: 107 MEUR).T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>angible assets2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _11d"> </span>2021Buildings<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6f"/> Plant and<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"/> Other operating<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"/> T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>angible assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"/><span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> </span>Buildings<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6f"/> Plant and<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> Other operating<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"/> T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>angible assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"/><span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> </span>MEURand sitesmachineryequipmentin progr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ess<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span>T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>otaland sitesmachineryequipmentin progr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ess<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d6"> </span>T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>otalCost 1/1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _19f"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f">1 358<span class="_ _b"> </span>2 460<span class="_ _d5"> </span><span class="ws2e">140<span class="_ _fd"> </span>273<span class="_ _da"> </span></span>4 231<span class="_ _21"> </span>1 105<span class="_ _b"> </span>2 099<span class="_ _93"> </span><span class="ws2e">123<span class="_ _d5"> </span>534<span class="_ _4c"> </span></span>3 861</span>Exchange rate adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span>8<span xmlns="http://www.w3.org/1999/xhtml" class="_ _196"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">11<span class="_ _c4"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span>13<span xmlns="http://www.w3.org/1999/xhtml" class="_ _11"> </span>32<span xmlns="http://www.w3.org/1999/xhtml" class="_ _10d"> </span>28<span xmlns="http://www.w3.org/1999/xhtml" class="_ _98"> </span>45<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a1"> </span>-1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8d"> </span>23<span xmlns="http://www.w3.org/1999/xhtml" class="_ _174"> </span>95Additions for the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a2"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">25<span class="_ _6"> </span>60<span class="_ _1a3"> </span></span>6<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a6"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">237<span class="_ _14"> </span>328<span class="_ _1a4"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _96"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c2"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7f"> </span>301<span xmlns="http://www.w3.org/1999/xhtml" class="_ _4a"> </span>301T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>ransfer of assets in progress <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a5"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">65<span class="_ _6"> </span>87<span class="_ _8d"> </span>12<span class="_ _74"> </span>-164<span class="_ _21"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _98"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">233<span class="_ _68"> </span><span class="ws0"> 330<span class="_ _90"> </span></span>22<span class="_ _1a6"> </span>-585<span class="_ _71"> </span></span>-Disposals for the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _44"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-13<span class="_ _72"> </span>-53<span class="_ _bc"> </span>-5<span class="_ _90"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-71<span class="_ _94"> </span>-12<span class="_ _72"> </span>-18<span class="_ _1a1"> </span>-4<span class="_ _91"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-34</span>Business acquisitions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _185"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _96"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _91"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2d"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _21"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a6"> </span>4<span xmlns="http://www.w3.org/1999/xhtml" class="_ _89"> </span>4<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c2"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _68"> </span>8Cost 31/12<span xmlns="http://www.w3.org/1999/xhtml" class="_ _dd"> </span>1 443<span xmlns="http://www.w3.org/1999/xhtml" class="_ _11"> </span>2 565<span xmlns="http://www.w3.org/1999/xhtml" class="_ _80"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ws2e">153<span class="_ _a6"> </span>359<span class="_ _60"> </span></span>4 520<span xmlns="http://www.w3.org/1999/xhtml" class="_ _ae"> </span>1 358<span xmlns="http://www.w3.org/1999/xhtml" class="_ _11"> </span>2 460<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a7"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ws2e">140<span class="_ _80"> </span>273<span class="_ _30"> </span></span>4 231Depreciation and write-downs 1/1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a6"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">498<span class="_ _ac"> </span><span class="ws0">1 780<span class="_ _d5"> </span></span>124<span class="_ _90"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span>2 402<span xmlns="http://www.w3.org/1999/xhtml" class="_ _98"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ws2e">468<span class="_ _b"> </span></span>1 660<span xmlns="http://www.w3.org/1999/xhtml" class="_ _93"> </span>101<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c4"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d6"> </span>2 229Exchange rate adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a8"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _89"> </span>1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _91"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _92"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8b"> </span>1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>6<span xmlns="http://www.w3.org/1999/xhtml" class="_ _196"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">35<span class="_ _1a9"> </span></span>1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _91"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _b"> </span>42Depreciation for the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1aa"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">50<span class="_ _71"> </span>129<span class="_ _8d"> </span>16<span class="_ _92"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">195<span class="_ _13"> </span>36<span class="_ _fa"> </span>103<span class="_ _199"> </span>26<span class="_ _91"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ab"> </span>165Disposals for the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _44"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-13<span class="_ _72"> </span>-47<span class="_ _bc"> </span>-5<span class="_ _90"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-65<span class="_ _94"> </span>-12<span class="_ _72"> </span>-18<span class="_ _1a1"> </span>-4<span class="_ _91"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18"> </span>-34Depreciation and write-downs 31/12<span xmlns="http://www.w3.org/1999/xhtml" class="_ _ac"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">535<span class="_ _e"> </span><span class="ws0">1 863<span class="_ _80"> </span></span>135<span class="_ _90"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _60"> </span>2 533<span xmlns="http://www.w3.org/1999/xhtml" class="_ _196"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ws2e">498<span class="_ _e"> </span></span>1 780<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a7"> </span>124<span xmlns="http://www.w3.org/1999/xhtml" class="_ _91"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _da"> </span>2 402Carrying amount 31/12<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ac"> </span>908<span xmlns="http://www.w3.org/1999/xhtml" class="_ _12d"> </span>702<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8f"> </span>18<span xmlns="http://www.w3.org/1999/xhtml" class="_ _19b"> </span>359<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ws0">1 987<span class="_ _7c"> </span></span>860<span xmlns="http://www.w3.org/1999/xhtml" class="_ _12d"> </span>680<span xmlns="http://www.w3.org/1999/xhtml" class="_ _90"> </span>16<span xmlns="http://www.w3.org/1999/xhtml" class="_ _80"> </span>273<span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span>1 829Hereof investment grants<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e2"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-17<span class="_ _ab"> </span>-27<span class="_ _1ad"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _92"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-44<span class="_ _74"> </span>-9<span class="_ _72"> </span>-13<span class="_ _c2"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8c"> </span>-21<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18"> </span>-433.3 LeasesAccounting policiesWhether a contract contains a lease is assessed atcontract inception. For identified leases, a right-of-use(RoU) asset and corresponding liability are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognisedon the lease commencement date.Assets and liabilities arising from a lease are initiallymeasured on a pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>esent value basis. Lease liabilitiesinclude the net present value of the payments, whichare fixed or variable payments dependent on an indexor a rate. When adjustments to lease payments basedon an index or a rate take effect, the lease liability isreassessed and adjusted against the lease asset. Servicecomponents are excluded fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>om the lease liability exceptfrom those r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>elating to cars.T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>o measure the lease liability at an amount equal to the net present value of the lease payments, a discount rateis used. For this purpose, the Group generally uses itsincremental borr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>owing rate (IBR). The IBR is calculatedper main country/region per asset type consideringdiffer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ent length of the lease terms.The lease payments have been split into an interest costand a repayment of the lease liability.RoU assets are measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ed at cost corresponding tothe lease liability recognised, adjusted for any leaseprepayments or dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ectly related costs, includingrestoration costs.RoU assets are depr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>eciated on a straight-line basis over theshorter of the expected lease term and the asset’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s useful<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>life. RoU assets are tested for impairment whenever there isan indication that the assets may be impaired.Accounting policies (continued)Extension and termination options are included in a number of property and equipment leases acr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>oss the Group. The majority of extension and termination options held are exer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>cisable only by the Group and not by the respective lessor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>. If the lease contract contains an extension or purchase option that the Group considers<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> reasonably certain to be exer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>cised, these are included in the measurement of the liability.Short-term leases and leases of low value are recognised ona straight-line basis as cost in the income statement.The Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s portfolio of leases covers leases of office<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> buildings, warehouses and other equipment such as carsand forklifts. Leases for offices and other buildings havelease terms between 2-22 years, warehouses between3-10 years while car and forklift leases generally havelease terms between 3-5 years. The Group also hasa few long-term site leases with lease ter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>ms up to 99years.Leases in the balance sheetMEUR2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fa"> </span>2021Right-of-use assets:Offices, other buildings and sites<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ae"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">14<span class="_ _13"> </span>12</span>W<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>arehouses<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1af"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">48<span class="_ _13"> </span>30</span>Forklifts, cars and other assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b0"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">26<span class="_ _13"> </span>19</span>Carrying amount of right-of-use assets 31/12<span xmlns="http://www.w3.org/1999/xhtml" class="_ _158"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">88<span class="_ _116"> </span>61</span>Contractual maturity of lease liabilities:&lt; 1 year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _12e"> </span>30<span xmlns="http://www.w3.org/1999/xhtml" class="_ _13"> </span>211-5 years<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18c"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">60<span class="_ _13"> </span>35</span>&gt; 5 years<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18c"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">15<span class="_ _10d"> </span>17</span>T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>otal undiscounted lease liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b1"> </span>105<span xmlns="http://www.w3.org/1999/xhtml" class="_ _116"> </span>73Current/non-curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ent classification (discounted):Non-current<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1af"> </span>61<span xmlns="http://www.w3.org/1999/xhtml" class="_ _13"> </span>44Current<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b2"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">24<span class="_ _13"> </span>19</span>In 2022, additions to right-of-use assets were 37 MEUR (2021: 37 MEUR).Leases in the income statementMEUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17b"> </span>2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fa"> </span>2021Depreciation of right-of-use assets:Offices, other buildings and sites<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b3"> </span>5<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>3W<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>arehouses<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1af"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">10<span class="_ _fd"> </span></span>9Forklifts, cars and other assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b0"> </span>11<span xmlns="http://www.w3.org/1999/xhtml" class="_ _13"> </span>10T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>otal depreciation of right-of-use assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _15e"> </span>26<span xmlns="http://www.w3.org/1999/xhtml" class="_ _88"> </span>22Interest expense (included in financial expenses)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b4"> </span>3<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>2Expense relating to short-term leases (included in operating costs)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b5"> </span>11<span xmlns="http://www.w3.org/1999/xhtml" class="_ _13"> </span>10Expense relating to low-value leases (included in operating costs)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8"> </span>1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _157"> </span>-V<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ariable lease payments not included in the lease liabilities (included in operating costs)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b6"> </span>2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>1The total cash outflow for leases in 2022 was 43 MEUR (2021: 35 MEUR), of which 26 MEUR (2021: 21 MEUR) is classified ascash flow from financing activities and 17 MEUR (2021: 14 MEUR) is classified as cash flow fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>om operating activities.3.4 Amortisation, depreciation and write-downsAmortisation, depreciation and write-downsMEUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _12e"> </span>2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _97"> </span>2021Amortisation of intangible assets <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b7"> </span>15<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span>14Depreciation of tangible assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b8"> </span>195<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span>165Depreciation of right-of-use assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b9"> </span>26<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span>22Amortisation, depreciation and write-downs<span xmlns="http://www.w3.org/1999/xhtml" class="_ _12"> </span>236<span xmlns="http://www.w3.org/1999/xhtml" class="_ _82"> </span>2013.5 Impairment testsAccounting policiesWhen there is an indication of a reduction in the<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> profitability of an asset, an impairment test is performed for the assets in question and write-downs are made, if necessary. For goodwill, annual impairment tests are made. Therecoverable amounts of the assets and cash-generating units (CGUs) have been determined based on value-in-use calculations. When testing for impairment, the valueis written down to the estimated recoverable amount, iflower than the carrying amount.The carrying amount of other non-current assets is tested for impairment once a year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. The carrying amount of property, plant and equipment is tested forimpairment when there is indication of change in thestructural profitability.Critical estimates and judgementsWhen preparing impairment tests, estimates are used to calculate the future value. Significant estimates ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>emade when assessing long-term growth rates andprofitability. In addition, an assessment is made of thereasonable discount rate.Changes in the growth rate in the budget period or discount rate may result in significantly differ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent values. The assessments are made based on budgets, business plans and projections for five years and take into account previous experience and r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>epresent Management’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s best estimate of future developments. Key parameters are gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>owth in sales, margins, discountrate and future gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>owth expectations.CommentsManagement has performed the yearly impair<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>ment test of the carrying amount of goodwill and other non-current intangible assets. In addition, impairment test of property, plant and equipment has also been made, where indication of r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>eduction of value was found. In the impairment test, the carrying amount of the assets is compared to the discounted value of the future cash<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> flows. The assessment of future cash flows is typically based on five-year management reviewed budgets and business plans, where the last year is used as a normalised ter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>minal year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>. Net sales, raw material prices, discount rate and future gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>owth assumptions constitutethe most material parameters in the calculation.The average growth rate in the terminal period is set to two percent. The average gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>owth rate in the budget period is estimated to be between 0-10 percent depending on the businesses. The high gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>owth rates are used in countries where wehistorically have seen steep increases after a slow period.Gross mar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>gins are based on average values the last three years and adjusted over the budget period for efficiency impr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ovements and expected raw material inflation based on past actual price movements and future market conditions. Futur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e investment is derivedfrom the historic investment level to secur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e a smoothoperation of the factories and the capacity utilisationis based on the current situation including investmentplans. The post-tax discount rate is based on thespecific circumstances of the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>oup and the operatingsegments and is derived from the weighted averagecost of capital (WACC).2022The impairment tests for 2022 have not shown a need for write-downs or reversals of write-downs r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ecognised previous years. The cash generating units of CSR and KEWO have been merged as r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>evenue from these business combinations no longer can be separated. All cash generating units are showing a solid headr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>oom to the carrying amount. The Chinese Insulation businessis followed closely to ensure that the expected futureoutcome of the investment in the new factory in Fogang is realised. HECK W<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>all Systems continues to be closely monitored due to dif<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ficult market situations. Despite a decrease in the net pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>esent value of the business, the headroom is still consider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ed to be large.2021The impairment tests for 2021 have not shown a need for write-downs or reversals of write-downs r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ecognised previous years. During 2021 HECK W<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>all Systems has been monitored closely. HECK W<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>all Systems exceededthe expectations and market outlook outlined in theimpairment test last year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, and the stone wool conversiongoal was reached in 2021. The net pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>esent value ofHECK W<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>all Systems amounts to 59 MEUR in 2021 whichgives a headroom of 37 MEUR to the carrying amount.The main drivers are sales gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>owth and costs efficiencyimprovements.Sensitivity analysisAs part of the preparation of impairment tests,sensitivity analyses are pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>epared on the basis ofrelevant risk factors and scenarios that managementcan determine within reasonable reliability. Sensitivityanalyses are pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>epared by altering the estimates with arange of probable outcomes.2022The sensitivities have been assessed as follows, allother things being equal; an increase in the discountrate of one percent, a decr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ease in the growth rateof one percent p.a. and an incr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ease of input costs ofone percent p.a. None of the scenarios r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>esulted inidentification of write-downs.We consider the chosen scenarios as the most r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ealistic,which is why none of the impairment tests have givenrise to adjustment of the value.2021The sensitivities have been assessed as follows, allother things being equal; an increase in the discountrate of one percent, a decr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ease in the growth rateof one percent p.a. and an incr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ease of input costs ofone percent p.a. None of the scenarios r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>esulted inidentification of write-downs.We consider the chosen scenarios as the most r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ealistic,which is why none of the impairment tests have givenrise to adjustment of the value.Impairment test of goodwillMEUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ba"> </span>2022Carrying<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> Growth rateamount,<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6f"/> Discount<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> (budgetCGUsGoodwillrateperiod)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> <span xmlns="http://www.w3.org/1999/xhtml" class="_ _57"> </span>HeadroomChicago Metallic Corporation (Rockfon)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">62<span class="_ _82"> </span>8.1%<span class="_ _196"> </span>3%*<span class="_ _21"> </span>Large</span>HECK W<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>all Systems<span xmlns="http://www.w3.org/1999/xhtml" class="_ _169"> </span>6<span xmlns="http://www.w3.org/1999/xhtml" class="_ _71"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">8.0%<span class="_ _196"> </span>2%*<span class="_ _21"> </span>Large</span>CSR including KEWO<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1bc"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">15<span class="_ _172"> </span>8.5%<span class="_ _fa"> </span>10%*<span class="_ _21"> </span>Large</span>Flumroc<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1bb"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">16<span class="_ _172"> </span>6.9%<span class="_ _196"> </span>5%*<span class="_ _12d"> </span>Large</span>Other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1bd"> </span>8<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18"> </span>12-16%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _71"> </span>0-6%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _21"> </span>LargeT<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _126"> </span>107* Average gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>owth rate due to large spread in the period.Impairment test of goodwillMEUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ba"> </span>2021Carrying<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> Growth rateamount,<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> Discount<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> (budgetCGUsGoodwillrateperiod)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> <span xmlns="http://www.w3.org/1999/xhtml" class="_ _57"> </span>Headroom<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> Chicago Metallic Corporation (Rockfon)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">57<span class="_ _82"> </span>7.1%<span class="_ _196"> </span>3%*<span class="_ _21"> </span>Large</span>HECK W<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>all Systems<span xmlns="http://www.w3.org/1999/xhtml" class="_ _169"> </span>6<span xmlns="http://www.w3.org/1999/xhtml" class="_ _71"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">6.9%<span class="_ _196"> </span>3%*<span class="_ _21"> </span>Large</span>CSR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _14e"> </span>8<span xmlns="http://www.w3.org/1999/xhtml" class="_ _172"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">8.0%<span class="_ _196"> </span>7%*<span class="_ _21"> </span>Large</span>Flumroc<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1bb"> </span>15<span xmlns="http://www.w3.org/1999/xhtml" class="_ _172"> </span>6.9%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _196"> </span>7%*<span xmlns="http://www.w3.org/1999/xhtml" class="_ _12d"> </span>LargeOther<span xmlns="http://www.w3.org/1999/xhtml" class="_ _122"> </span>16<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8b"> </span>7-11%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8b"> </span>2-11%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _21"> </span>LargeT<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _126"> </span>102* Average gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>owth rate due to large spread in the period. 3.6 Pension obligationsAccounting policiesPension payments concerning defined contribution plans are<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> recognised on an ongoing basis in the income statement. Defined benefit plans are stated at the net pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>esent valueat the balance sheet date and included in the consolidatedfinancial statements. Adjustments of the plans are carriedout on a regular basis in accor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>dance with underlyingactuarial assessments. Actuarial gains or losses for defined benefit plans are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ecognised in full in the period in which they occur in other comprehensive income. The actuarial assessment is carried out every year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>.Funded benefit plans have assets placed in trustee-administered pension funds, which ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e governed bylocal regulations and practice in each country.The payments to the pension funds are based on the usual actuarial assessments and are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ecognised in the income statement after maturity. Provided that the actuarial assessments of pension obligations show noticeable excess solvency or insolvency in relation tothe pension fund’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s assets, the difference is enter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ed to the balance sheet and the future payments ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e adjustedaccordingly. With regard to these schemes, the actuarialassessment is also carried out every year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>.CommentsThe present value of defined benefit pension obligationsdepends on a number of factors that are determined onan actuarial basis using a number of assumptions. Anychanges to these assumptions will impact the carryingamount of pension obligations.The discount rate and other key assumptions are basedin part on the current market conditions.CommentsA number of the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s employees and former employees participate in pension schemes. The pension schemes areprimarily defined contribution plans. However<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>, defined<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>benefit plans are also used, mainly in Switzerland, theUnited Kingdom and Germany. The benefit plans in theUnited Kingdom and Germany are closed for new entries.Under a defined benefit plan the Group carries the riskassociated with the future development in e.g. inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>estrates, inflation, salaries, mortality and disability.Defined benefit plans typically guarantee the employees aretir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ement benefit based on the final salary at retirement.The pension benefit plans in the United Kingdom andSwitzerland have assets placed in independent pensionfunds. The remaining plans ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e unfunded, where the mainpart relates to Germany. For these plans the retirementbenefit obligations amount to approximately 21 per<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>cent (2021: 22 per<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>cent) of the total gross liability.Except for the Swiss and UK plans, the mentioned definedbenefit plans are not subject to r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>egulatory requirementsregar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ding minimum funding. The granted pensionpayments of the mentioned defined benefit plans are basedupon the salary of the participating employees duringthe period of employment. The Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s contributions are derived from the split of the pension premium between theemployee and employer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>.The actuarial assessment of the pension obligation isbased on assumptions specific to each country. The latestactuarial calculation is prepar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ed by authorised experts.The valuation of the assets is based on the compositionand the expectations to the economic development. Theassumptions used are weighted averages.Pension costsMEUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17b"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff1 fc2 ls3f ws2e">2022<span class="_ _fa"> </span>2021</span>Defined contribution plans:T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>otal pension costs recognised<span xmlns="http://www.w3.org/1999/xhtml" class="_ _142"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">30<span class="_ _10d"> </span>29</span>Defined benefit plans:Pension costs<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1be"> </span>3<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>2Interest costs<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1bf"> </span>3<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>2Interest income<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c0"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-2<span class="_ _74"> </span>-1</span>Curtailments/settlements<span xmlns="http://www.w3.org/1999/xhtml" class="_ _188"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span>-1T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>otal pension costs recognised<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b8"> </span>4<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>2Defined benefit pension plansMEUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _15f"> </span>2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fa"> </span>2021<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fa"> </span>2020<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fa"> </span>2019<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fa"> </span>2018Present value of pension liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c1"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">177<span class="_ _7c"> </span><span class="ws0"> 239<span class="_ _98"> </span></span>250<span class="_ _9a"> </span>247<span class="_ _9a"> </span>217</span>Fair value of plan assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c7"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-179<span class="_ _12b"> </span>-214<span class="_ _12b"> </span>-184<span class="_ _12b"> </span>-185<span class="_ _12b"> </span>-164</span>Assets ceiling limitation<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">34<span class="_ _10d"> </span>10<span class="_ _80"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _110"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _110"> </span>-Pension obligation, net 31/12<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c2"> </span>32<span xmlns="http://www.w3.org/1999/xhtml" class="_ _99"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ws0"> 35<span class="_ _116"> </span></span>66<span xmlns="http://www.w3.org/1999/xhtml" class="_ _10d"> </span>62<span xmlns="http://www.w3.org/1999/xhtml" class="_ _116"> </span>53Key assumptions2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fa"> </span>2021Increase in salaries and wages<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c3"> </span>1.7%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _172"> </span>1.2%Discount rate<span xmlns="http://www.w3.org/1999/xhtml" class="_ _12f"> </span>3.3%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _82"> </span>1.1%Remaining life expectancy at the time of retirement (years)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _163"> </span>24.0<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7c"> </span>27.1Defined benefit pension obligationMEUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17b"> </span>2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fa"> </span>2021Obligations 1/1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c4"> </span>239<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7d"> </span>250Exchange rate adjustments <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c5"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _10d"> </span>10Pension costs<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1be"> </span>4<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>6Interest costs<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1bf"> </span>3<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>2Settlements<span xmlns="http://www.w3.org/1999/xhtml" class="_ _14d"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span>-3Actuarial gains/losses from changes in demographic assumptions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span>-7Actuarial gains/losses from changes in financial assumptions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _154"> </span>-67<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c6"> </span>-7Actuarial gains/losses from changes in experience<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c7"> </span>5<span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span>-2Benefits paid<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c8"> </span>-7<span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span>-10Obligations 31/12<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c9"> </span>177<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6"> </span>239Sensitivity analysisA<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ssumptions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ca"> </span>Discount rate<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d5"> </span>Salary increase<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a6"> </span>Life expectancy-0.5%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ab"> </span>+0.5%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e"> </span>-1.0%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ab"> </span>+1.0%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _35"> </span>-1 year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span>+1 yearMEUR2022 - Impact on obligation<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1cb"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">11<span class="_ _75"> </span>-10<span class="_ _94"> </span>-1<span class="_ _10d"> </span></span>1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-4<span class="_ _13"> </span></span>42021 - Impact on obligation<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1cb"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">19<span class="_ _75"> </span>-18<span class="_ _94"> </span>-2<span class="_ _10d"> </span></span>2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-8<span class="_ _13"> </span></span>8The sensitivity analysis above has been determined based on a method that extrapolates the impact on the defined benefitobligation as a result of reasonable changes in key assumptions.Th<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>e fo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>llo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>win<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>g pay<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>m<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>ent<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>s a<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>re e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>xp<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>ec<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>te<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>d co<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>nt<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>ri<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>bu<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>ti<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>on<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>s to t<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>he d<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>efi<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>ne<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>d b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>en<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>ef<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>it pl<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>an o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>bl<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>iga<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>ti<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>on:Expected contributionsMEUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17b"> </span>2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fa"> </span>2021&lt; 1 year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1cc"> </span>7<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c6"> </span> 71-5 years<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18c"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">22<span class="_ _13"> </span>24</span>&gt; 5 years<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18c"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">40<span class="_ _10d"> </span>38</span>Expected contributions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _f9"> </span>69<span xmlns="http://www.w3.org/1999/xhtml" class="_ _10d"> </span>69The expected duration of the defined benefit plan obligation is 24 years (2021: 27 years) at year end.Pension plan assetsMEUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17b"> </span>2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fa"> </span>2021Pension plan assets 1/1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1cd"> </span>214<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7d"> </span>184Exchange rate adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ce"> </span>1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _10d"> </span>10Interest income<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1cf"> </span>2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>1Return on plan assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d0"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-38<span class="_ _13"> </span>22</span>Employer’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s contribution<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d1"> </span>4<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>4Plan participants<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d2"> </span>1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>1Benefits paid<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c8"> </span>-5<span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span>-8Pension plan assets 31/12<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d3"> </span>179<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6"> </span>214Composition of pension plan assetsMEUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17b"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff1 fc2 ls3f ws2e">2022<span class="_ _fa"> </span>2021</span>Assets quoted in active markets:Equities in European markets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d4"> </span>36%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _12b"> </span>39%Bonds in European markets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _129"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">27%<span class="_ _1d5"> </span>31%</span>Assets unquoted:Cash<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d6"> </span>9%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span>8%Other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b2"> </span>28%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _12b"> </span>22%3.7 ProvisionsAccounting policiesProvisions ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e recognised where a legal or constructive<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> obligation has been incurred as a r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>esult of past events and if it is probable it will lead to an outflow of financial resour<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ces and if the size of the liability can be measured on a reliable basis. The pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ovision is calculated as theamount expected to be paid to settle the obligation.Provisions2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d7"> </span>2021Claims<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> Claimsand legal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> and legalMEUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c"> </span>Employeesactions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d4"> </span>Other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _26"> </span>T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _54"> </span>Employeesactions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d4"> </span>Other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _26"> </span>T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>otalProvisions 1/1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ca"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">13<span class="_ _12d"> </span></span>4<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span>7<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d6"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">24<span class="_ _13"> </span>12<span class="_ _21"> </span></span>4<span xmlns="http://www.w3.org/1999/xhtml" class="_ _4c"> </span>10<span xmlns="http://www.w3.org/1999/xhtml" class="_ _4c"> </span>26Additions for the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d8"> </span>3<span xmlns="http://www.w3.org/1999/xhtml" class="_ _21"> </span>3<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d6"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">16<span class="_ _4c"> </span>22<span class="_ _fd"> </span></span>3<span xmlns="http://www.w3.org/1999/xhtml" class="_ _21"> </span>5<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span>1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span>9Used during the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d9"> </span>-1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _97"> </span>-2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span>-1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1da"> </span>-4<span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span>-2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _48"> </span>-2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _42"> </span>-4<span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span>-8Reversed during the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1db"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-2<span class="_ _97"> </span>-3<span class="_ _1da"> </span>-1<span class="_ _46"> </span>-6<span class="_ _1a4"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8b"> </span>-3<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1da"> </span>-3<span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span>-6Business acquisitions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _af"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _172"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _110"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _172"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span>3<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span>3Provisions 31/12<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e3"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">13<span class="_ _21"> </span></span>2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2b"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">21<span class="_ _2b"> </span>36<span class="_ _116"> </span>13<span class="_ _21"> </span></span>4<span xmlns="http://www.w3.org/1999/xhtml" class="_ _31"> </span>7<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2b"> </span>24Current/non-curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ent classification:Non-current liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1dc"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">10<span class="_ _172"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span>9<span xmlns="http://www.w3.org/1999/xhtml" class="_ _4c"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">19<span class="_ _13"> </span>11<span class="_ _21"> </span></span>1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span>4<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d6"> </span>16Current liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1dd"> </span>3<span xmlns="http://www.w3.org/1999/xhtml" class="_ _21"> </span>2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d6"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">12<span class="_ _4c"> </span>17<span class="_ _fd"> </span></span>2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _21"> </span>3<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span>3<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span>8Provisions 31/12<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e3"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">13<span class="_ _21"> </span></span>2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2b"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">21<span class="_ _2b"> </span>36<span class="_ _116"> </span>13<span class="_ _21"> </span></span>4<span xmlns="http://www.w3.org/1999/xhtml" class="_ _31"> </span>7<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2b"> </span>24CommentsProvisions r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>elate primarily to jubilee obligations and retirementbenefits, reconstruction and r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>elief aid activities in Ukraine,refurbishment obligation, warranties, fair value provision forphantom share, r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>estructuring and ongoing disputes.As at 31 December 2022 other provisions include aprovision of 1 MEUR (2021: 1 MEUR) for r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>estructuringmeasures. This pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ovision is expected to be utilisedwithin one year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>.4.1 InventoriesAccounting policiesInventories are valued at the lowest value of historical cost calculated as a weighted average or the net realisation value. The cost of finished goods and work in progr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ess include the direct costs of pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>oduction materials and wages, as well as indirect pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>odu costs such as personne costs, maintenance cos and depreciation of plant amachinery.CommentsThe main part of the write-down of inventory relates to write-down of spare parts inventory.InventoriesMEUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17b"> </span>2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fa"> </span>2021Raw materials and consumables<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1df"> </span>212<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7d"> </span>144Work in pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ogress<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e0"> </span>20<span xmlns="http://www.w3.org/1999/xhtml" class="_ _13"> </span>15Finished goods<span xmlns="http://www.w3.org/1999/xhtml" class="_ _138"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">201<span class="_ _7d"> </span>158</span>Inventories 31/12<span xmlns="http://www.w3.org/1999/xhtml" class="_ _103"> </span>433<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6"> </span>317Inventory before wr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e1"> </span>512<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7d"> </span>398MEURWrite-downs 1/1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e2"> </span>-81<span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span>-77Change in the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e3"> </span>2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span>-4Write-downs 31/12<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e4"> </span>-79<span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span>-81Inventories 31/12<span xmlns="http://www.w3.org/1999/xhtml" class="_ _103"> </span>433<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6"> </span>3174.2 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _f"/>rade receivablesAccounting policiesT<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>rade receivables are measured at amortised cost less<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> allowance for bad debt based on the expected credit loss model.The Group applies the simplified approach to measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eexpected credit losses, which uses a lifetime expectedloss allowance for all trade receivables.T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>o measure the expected credit losses, trade r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>eceivables have been grouped based on shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ed credit riskcharacteristics and the days past due.The expected loss rates are based on the paymentprofiles of sales over a period of 60 months befor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e 1January 2022 and the corresponding historical cr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>editlosses experienced within this period. The historical lossrates are adjusted to r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>eflect current and forward-lookinginformation on macroeconomic factors affecting theability of the customers to settle the receivables.The costs of allowance for bad debts and realised lossesduring the year are included in other external costs.T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>rade receivablesMEUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17b"> </span>2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fa"> </span>2021T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>rade receivables before allowance for bad debts (maximum credit risk)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e5"> </span>360<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7d"> </span>318Allowance for bad debts 1/1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e6"> </span>-11<span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span>-10Exchange rate adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _f1"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _157"> </span>-Movements during the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e7"> </span>-3<span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span>-2Realised losses during the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _180"> </span>1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a6"> </span>1Allowance for bad debts 31/12<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e8"> </span>-13<span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span>-11T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>rade receivables 31/12<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e9"> </span>347<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6"> </span>307Allowance for bad debts based on the expected credit loss model2022Gross <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6f"/> Allowance<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6f"/> Expected<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6f"/> carrying<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> for badMEURloss rateamountdebt<span xmlns="http://www.w3.org/1999/xhtml" class="_ _172"> </span>T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>otalCurrent<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ea"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">0.1%<span class="_ _7d"> </span>340<span class="_ _1a4"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7d"> </span>340More than 30 days past due<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3a"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">2%<span class="_ _107"> </span></span>6<span xmlns="http://www.w3.org/1999/xhtml" class="_ _110"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>6More than 60 days past due<span xmlns="http://www.w3.org/1999/xhtml" class="_ _13d"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">40%<span class="_ _fd"> </span></span>2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-1<span class="_ _fd"> </span></span>1More than 90 days past due<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1eb"> </span>100%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _13"> </span>12<span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span>-12<span xmlns="http://www.w3.org/1999/xhtml" class="_ _110"> </span>-T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>otal 31/12<span xmlns="http://www.w3.org/1999/xhtml" class="_ _129"> </span>360<span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span>-13<span xmlns="http://www.w3.org/1999/xhtml" class="_ _196"> </span>3472021Gross <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6f"/> AllowanceExpected<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6f"/> carrying<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> for badMEURloss rateamountdebt<span xmlns="http://www.w3.org/1999/xhtml" class="_ _172"> </span>T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>otalCurrent<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ea"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">0.1%<span class="_ _7d"> </span>301<span class="_ _1a4"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7d"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">301</span>More than 30 days past due<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3a"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">2%<span class="_ _107"> </span></span>4<span xmlns="http://www.w3.org/1999/xhtml" class="_ _110"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>4More than 60 days past due<span xmlns="http://www.w3.org/1999/xhtml" class="_ _13d"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">40%<span class="_ _fd"> </span></span>2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _110"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>2More than 90 days past due<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1eb"> </span>100%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _13"> </span>11<span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span>-11<span xmlns="http://www.w3.org/1999/xhtml" class="_ _110"> </span>-T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>otal 31/12<span xmlns="http://www.w3.org/1999/xhtml" class="_ _129"> </span>318<span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span>-11<span xmlns="http://www.w3.org/1999/xhtml" class="_ _196"> </span>3074.3 Other cash flow notesAdjustments of non-cash operating itemsMEUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17b"> </span>2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fa"> </span>2021Provisions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ec"> </span>2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span>-7Expensed value of RSUs issued<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c1"> </span>3<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>2Gain/loss on sale of intangible and tangible assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2f"> </span>-1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _110"> </span>-Adjustments of non-cash operating items<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ed"> </span>4<span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span>-5Changes in net working capitalMEUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17b"> </span>2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fa"> </span>2021Change in inventories<span xmlns="http://www.w3.org/1999/xhtml" class="_ _13e"> </span>-113<span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span>-89Change in trade receivables<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ee"> </span>-48<span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span>-47Change in other receivables<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ef"> </span>10<span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span>-45Change in trade payables<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1f0"> </span>-8<span xmlns="http://www.w3.org/1999/xhtml" class="_ _13"> </span>91Change in other payables<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fb"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">11<span class="_ _107"> </span></span>8Change in net working capital<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b9"> </span>-148<span xmlns="http://www.w3.org/1999/xhtml" class="_ _99"> </span>-825.1 Financial income and Financial expenses<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1fa"> </span>Accounting policiesFinancial income and expenses comprise interest income and interest costs, inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>est costs compiled from lease liabilities, realised and unr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ealised foreign exchange gains and losses, as well as fair value adjustments of cash-settled share-based incentiveprogrammes which ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e offset against other liabilities.Further<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>, they include adjustments to fair value hedges, and income and costs relating to cash flow hedges transferred fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>om other comprehensive income on realisation of the hedged items.Financial incomeMEUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17b"> </span>2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fa"> </span>2021Interest income <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1f5"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ws10f"> 5<span class="_ _107"> </span></span>2Fair value adjustment Phantom shares<span xmlns="http://www.w3.org/1999/xhtml" class="_ _11d"> </span>1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _110"> </span>-Foreign exchange gains<span xmlns="http://www.w3.org/1999/xhtml" class="_ _115"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">10<span class="_ _fd"> </span></span>8Financial income<span xmlns="http://www.w3.org/1999/xhtml" class="_ _146"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">16<span class="_ _116"> </span>10</span>Hereof financial income on financial assets at amortised cost<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1f6"> </span>4<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>2Financial expensesMEUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17b"> </span>2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fa"> </span>2021Interest expenses and similar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1f7"> </span>8<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>8Interest expenses lease liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _130"> </span>3<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>2Foreign exchange losses<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1f8"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">50<span class="_ _fd"> </span></span>9Financial expenses<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1f9"> </span>61<span xmlns="http://www.w3.org/1999/xhtml" class="_ _116"> </span>19Hereof financial expenses on financial liabilities at amortised cost<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span>6<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>45.2 Financial risks and instrumentsAccounting policiesDerivative financial instruments are initially recognised<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> in the balance sheet at cost price and are subsequently measured at fair value. Derivative financial instruments are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ecognised in other receivables and other payables. Changes to the fair value of derivative financial instruments, which meet the conditions for hedging the fair value of a recognised asset or liability, are<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> recognised in the income statement together with any changes in the fair value of the hedged asset or liability.Changes to the fair value of derivative financial instruments, which meet the conditions for hedging future cash flow<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, are recognised in other compr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ehensive income provided the hedge has been ef<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>fective. Hedge effectiveness is determined at the inception of the hedge relationship, and thr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ough periodic prospective effectiveness assessments to ensur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e that an economic relationship exists between the hedged item andhedging instrument. The accumulated value adjustmentrelated to these hedge transactions is transferr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ed fromother comprehensive income when the position is realised, and is included in the value of the hedged position e.g. the adjustment follows the cash flow<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.For derivative financial instruments, which do not qualify as hedging instruments, changes to the fair value are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ecognised on an ongoing basis in the income statement as financial income or financial expenses.CommentsAs a consequence of ROCKWOOL Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s extensive international activities, the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s income statement and equity are subject to a number of financial risks. TheGroup manages these risks in the following categories:– Exchange rate risk– Interest rate risk– Liquidity risk– Credit riskThe Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s policy is to identify and hedge significant financial risks on an ongoing basis. This is theresponsibility of the individual companies in whichfinancial risks might arise and overall supported bythe Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s treasury department. The par<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent company continuously monitors the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s financial risks in accordance with a framework determined by GroupManagement and/or the Board of Dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ectors.Exchange rate riskAs a consequence of the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s structure, net sales<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> and expenditure in for<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>eign currency are to a significantdegree set of<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>f against each other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, so that the Group is<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> not exposed to major exchange rate risks.Commercial exchange rate risks in the companies, whichcannot be set off ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e hedged on a continuous basis, tothe extent that they may significantly affect the resultsof the individual company in a negative direction,using currency loans, curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ency deposits and/or financialderivatives. Exchange rate risks are hedged in theindividual companies. The Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s hedging reserve is<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> disclosed under “Statement of changes in equity” withan insignificant amount.Categories of financial assets and liabilitiesMEUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1fb"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff1 fc2 ls3f ws2e">2022<span class="_ _fa"> </span>2021</span>Financial assets:Financial instruments for hedging of future cash flows1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _157"> </span>-Financial assets at fair value through other compr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ehensive income1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _110"> </span>-T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>rade receivables3<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>47<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d5"> </span>3<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>07Other receivables and receivables fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om associated companies80<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1fc"> </span>98Cash209<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d5"> </span>16<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>6Financial assets at amortised costs636<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span>571Financial liabilities:Fair value hedges-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _157"> </span>-Financial liabilities at fair value through income statement-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _110"> </span>-Financial instruments for hedging of future cash flows3<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a6"> </span>1Financial liabilities at fair value through other compr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ehensive income3<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a6"> </span>1Bank loans and other loans including short-term portion141<span xmlns="http://www.w3.org/1999/xhtml" class="_ _88"> </span>26Bank debt7<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a6"> </span>1T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>rade payables270<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d5"> </span>28<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>3Other payables19<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>6<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6"> </span>17<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>6Financial liabilities at amortised costs614<span xmlns="http://www.w3.org/1999/xhtml" class="_ _12b"> </span>486The carrying value of the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s financial assets and liabilities measured at amortised cost are assessed to be a r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>easonable approximation of fair value.Other receivables and r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>eceivables from associated companiesOther receivables and r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>eceivables from associated companies fall due within one year in both 2022 and 2021, and amount to 80 MEUR (2021: 98 MEUR).CommentsThe Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s net sales and expenditures will be subject<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> to exchange rate fluctuations on translation into EUR. A sensitivity analysis is made for the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s result and<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> equity based on the underlying currency transactions.The financial instruments included in the sensitivity analysis are cash, r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>eceivables, payables, current liabilities and financial investments without taking hedging into consideration. The result of the sensitivity analysis cannot be directly transferr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ed to the fluctuations on translating the financial result and equity of subsidiariesinto EUR.The impact on the net sales of the difference between<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> average rate and year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>-end rate amounts to 50 MEUR(2021: 27 MEUR) for the five most exposed currencies(USD, RUB, CAD, PLN, and GBP), which is a change of-1.3 percent (2021: 0.9 per<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>cent).The Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s policy is not to hedge exchange rate risks in long-term investments in subsidiaries. When relevant,external investment loans and Group loans are, as ageneral rule, established in the local currency of the company involved, while cash at bank and in hand areplaced in local currency.In the few countries with ineffective financial markets loans can be raised and surplus liquidity placed in DKK or EUR, subject to the approval of the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>oup’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s finance function. Most Group loans that ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e not establishedin DKK or EUR, are hedged via forwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>d agreements,currency loans and cash pools or via the SW<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>AP market.Interest rate riskCurrently the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>oup does not have any significant non-current inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>est-bearing debt or assets. The Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s policy is that necessary financing of investments shouldprimarily be affected by raising five to seven year loansat fixed or variable interest rates.Drawings on credit facilities at variable interest ratesgenerally match the funds, and all Group loans aresymmetrical in terms of interest rates. Consequently,changes in interest rates will not have a significant ef<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>fecton the result of the Group.Sensitivity analysisEffect in MEUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _b3"> </span>EBITDA5% change in exchange rate<span xmlns="http://www.w3.org/1999/xhtml" class="_ _13"> </span>2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _35"> </span>2021USD (+/-)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _184"> </span>10<span xmlns="http://www.w3.org/1999/xhtml" class="_ _97"> </span> 10RUB (+/-)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1fd"> </span>6<span xmlns="http://www.w3.org/1999/xhtml" class="_ _12b"> </span>7CAD (+/-)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1fe"> </span>4<span xmlns="http://www.w3.org/1999/xhtml" class="_ _12b"> </span>3PLN (+/-)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e5"> </span>1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _12b"> </span>1GBP (+/-)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ff"> </span>8<span xmlns="http://www.w3.org/1999/xhtml" class="_ _12b"> </span>7Equity5% change in exchange rate<span xmlns="http://www.w3.org/1999/xhtml" class="_ _13"> </span>2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _35"> </span>2021USD (+/-)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _184"> </span>14<span xmlns="http://www.w3.org/1999/xhtml" class="_ _21"> </span>14RUB (+/-)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ca"> </span>18<span xmlns="http://www.w3.org/1999/xhtml" class="_ _21"> </span>12CAD (+/-)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _200"> </span>12<span xmlns="http://www.w3.org/1999/xhtml" class="_ _21"> </span>11PLN (+/-)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _201"> </span>13<span xmlns="http://www.w3.org/1999/xhtml" class="_ _21"> </span>12GBP (+/-)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _184"> </span>11<span xmlns="http://www.w3.org/1999/xhtml" class="_ _21"> </span>10Liquidity riskThe current surplus and deficit liquidity in the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _f"/>s companies is set off, to the extent that this is profitable,via the parent company acting as intra-Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>oup bank andvia cash pool systems. When considered appr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>opriate,underlying cash pool systems are established in for<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>eigncompanies.T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>o the extent that the financial reserves are of an<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> appropriate size, the par<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ent company also acts as lenderto the companies in the Group.T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>o ensure adequate financial reserves as defined by the<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> Board of Dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ectors, investment loans can be raised ona continuous basis to partly cover new investments andto refinance existing loans. The par<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ent company has made guarantees for some credit facilities and loans. The parent company has issued ownership clauses and/or deed of postponements in connection with intercompany loans.The parent company ensur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>es on an ongoing basis that flexible, unutilised committed credit facilities of an adequate size are established with Investment Grade credit-rated banks. The Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>oup’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s financial reserves also consist of cash at bank and in hand, and unusedoverdraft facilities.Credit riskDue to the considerable customer spread in terms ofgeographical location and numbers, the credit riskis fundamentally limited. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>o a minor degree, when considered necessary, insurance or bank guarantees ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>eused to hedge outstanding receivables.As a consequence of the international diversification ofthe Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s activities there ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e business relations with a number of differ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ent banks in Europe, North America and Asia. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>o minimise the credit risk on placement of funds and on entering into agreements on derived financial instruments, only major<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>, financially sound institutions are used.Customer credit risks ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e assessed considering thefinancial position, past experience and other factors.Individual risk limits are set based on internal and external ratings. For impair<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>ment of trade receivable andthe maximum credit risk, please r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>efer to note 4.2.Financial instrumentsFinancial assets and liabilities at fair value are relatedto foreign exchange rate forwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>d contracts, foreignexchange rate swaps or interest rate swaps all of whichhave been valued using a valuation technique with market observable inputs (level 2). The Group is using no other valuation technique. TheGroup enters into derivative financial instruments withfinancial institutions.Derivatives valued using valuation techniques withmarket observable inputs are mainly for<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>eign exchangeforward contracts. The most fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>equently applied valuationtechniques include forward pricing models using pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>esentvalue calculations. The models incorporate variousinputs including the credit quality of counterparties andforeign exchange spot rates.5.3 CashCashMEUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17b"> </span>2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fa"> </span>2021Cash<span xmlns="http://www.w3.org/1999/xhtml" class="_ _202"> </span>209<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7d"> </span>166Bank debt<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18c"> </span>7<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>1Cash 31/12<span xmlns="http://www.w3.org/1999/xhtml" class="_ _f4"> </span>202<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6"> </span>1655.4 LoansBank loans are measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ed at amortised cost. The carrying amount for these approximates fair value.Bank loans amounted to 141 MEUR at 31 December2022. The loans are to be fully r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>epaid within three years,of which the majority are due within one year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>. The loans are fixed inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>est loans, and are denominated in EURand CNY<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>.In 2021, bank loans amounted to 26 MEUR. The loanswere fixed inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>est loans, were to be fully repaid withinthree years, and wer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e denominated in EUR and CNY<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>.5.5 Own sharesAccounting policiesROCKWOOL A/S has a reserve of own shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>es recognised in r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>etained earnings. The shares are bought back to meet obligations under the Group's equity-basedstock option and restricted shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e unit programmes and as part of the Group's shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e buy-back programme.Own sharesEUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18e"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff1 fc2 ls3f ws2e">2022<span class="_ _1b"> </span>2021</span>Average <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6f"/> % of<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"/> Average <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6f"/> % of<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"/> Number<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> purchase/ share <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6f"/> Number<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> purchase/ share A-sharesof sharessales pricecapitalof sharessales pricecapitalOwn shares 1/1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _ef"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _159"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _35"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f">76 069<span class="_ _b5"> </span><span class="ws2e">0.4</span></span>Purchase<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1dd"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _96"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _78"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _96"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _96"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _78"> </span>-Cancellation of shares<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16b"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _78"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _96"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _35"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f">76 069<span class="_ _78"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span>0.4Own shares 31/12<span xmlns="http://www.w3.org/1999/xhtml" class="_ _173"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _159"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _96"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _159"> </span>-B-sharesOwn shares 1/1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _203"> </span>56 228<span xmlns="http://www.w3.org/1999/xhtml" class="_ _b5"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ws2e">0.3<span class="_ _42"> </span></span>327 843<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1db"> </span>1.4Purchase<span xmlns="http://www.w3.org/1999/xhtml" class="_ _41"> </span>5 000<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fa"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ws2e">314<span class="_ _12b"> </span>0.0<span class="_ _67"> </span></span>18 630<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fa"> </span>330<span xmlns="http://www.w3.org/1999/xhtml" class="_ _12b"> </span>0.1Cancellation of shares<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16b"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _204"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a4"> </span>278 145<span xmlns="http://www.w3.org/1999/xhtml" class="_ _b5"> </span>1.2Sale<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1de"> </span>13 371<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fa"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ws2e">103<span class="_ _12b"> </span>0.1<span class="_ _35"> </span></span>12 100<span xmlns="http://www.w3.org/1999/xhtml" class="_ _71"> </span>114<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span>0.0Own shares 31/12<span xmlns="http://www.w3.org/1999/xhtml" class="_ _4d"> </span>47 857<span xmlns="http://www.w3.org/1999/xhtml" class="_ _205"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ws2e">0.2<span class="_ _3b"> </span></span>56 228<span xmlns="http://www.w3.org/1999/xhtml" class="_ _205"> </span>0.3Own shares ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e used to hedge the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s stock option and restricted share unit pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ogrammes and as part of the Group's shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e buy-back programme. Own shares ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e purchased based on authorisation from the General Assembly.5.6 Share capitalCommentsEach A share of a nominal value of 10 DKK (1.3 EUR) carries 10 votes, and each B share of a nominal value of 10 DKK (1.3 EUR) carries one vote.The Annual General Meeting of ROCKWOOL A/S on 6 April 2022 adopted the board of dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ectors' proposal for amendments to the articles of associations regarding the opportunity to convert on a voluntary basis A shares toB shares in a ratio of 1:1. The conversions for 2022 wer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ecompleted on 15 December 2022 and the company'sarticles of association were updated with the resultingchanges to the size of the company's A- and B sharecapital.The Annual General Meeting of ROCKWOOL A/S on 7 April2021 adopted the proposal to r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>educe the Company’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s share<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> capital from nominally 219 749 230 DKK to nominally 216 207090 DKK by cancellation of the Company’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s own shares.The share capital has been fully paid up. No shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>eholderis under an obligation to allow his shares to be redeemedwhether in whole or in part. The shares ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e negotiableinstruments, and all shares shall be fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>eely transferable.Share capitalMEUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17b"> </span>2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fa"> </span>2021A shares - 10 906 522 shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>es of 10 DKK each (1.3 EUR)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _190"> </span>15B shares - 10 714 187 shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>es of 10 DKK each (1.3 EUR)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16a"> </span>14A shares - 11 155 558 shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>es of 10 DKK each (1.3 EUR)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _118"> </span>15B shares - 10 465 151 shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>es of 10 DKK each (1.3 EUR)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _126"> </span>14Share capital<span xmlns="http://www.w3.org/1999/xhtml" class="_ _206"> </span>29<span xmlns="http://www.w3.org/1999/xhtml" class="_ _116"> </span>295.7 Earnings per shareEarnings per shareMEUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17b"> </span>2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fa"> </span>2021Profit for the year attributable to shareholders of ROCKWOOL A/S<span xmlns="http://www.w3.org/1999/xhtml" class="_ _207"> </span>273<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7d"> </span>303Average number of shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>es ('000)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _148"> </span>21 621<span xmlns="http://www.w3.org/1999/xhtml" class="_ _177"> </span>21 744Average number of own shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>es ('000)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _208"> </span>54<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7d"> </span>177Average number of outstanding shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>es ('000)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _15c"> </span>21 567<span xmlns="http://www.w3.org/1999/xhtml" class="_ _34"> </span>21 567Dilution effect of stock options ('000)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _209"> </span>42<span xmlns="http://www.w3.org/1999/xhtml" class="_ _13"> </span>49Average number of diluted shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>es ('000)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _132"> </span>21 609<span xmlns="http://www.w3.org/1999/xhtml" class="_ _34"> </span>21 616Earnings per share<span xmlns="http://www.w3.org/1999/xhtml" class="_ _103"> </span>12.7<span xmlns="http://www.w3.org/1999/xhtml" class="_ _12b"> </span>14.1Earnings per share, diluted<span xmlns="http://www.w3.org/1999/xhtml" class="_ _20a"> </span>12.6<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d5"> </span>14.06.1 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _23"/>axAccounting policiesThe parent company is taxed jointly with all Danish subsidiaries. Income subject to joint taxation is fully distributed. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>ax on profit for the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>, which includes current tax on pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ofit for the year and changes to deferred tax, is r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ecognised in the income statement. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>ax on changes in other comprehensive income is recognised dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ectly under other comprehensive income.Provisions for deferr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ed tax are calculated on all temporary differ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ences between accounting and taxable values, calculated using the balance-sheet liability method.Deferred tax pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ovisions are also made to cover the re-taxation of losses in jointly taxed for<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>eign companies previously included in the Danish joint taxation.Companies within the Group may be entitled to claimspecial tax deductions for investments in qualifyingassets or in relation to qualifying expenditure. The Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oupaccounts for such allowances as tax credits. Consequently, the allowance reduces income tax payables and curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ent tax expense. A deferred tax asset is r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ecognised for unclaimed tax credits that ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e carried forward.Deferred tax assets ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e recognised when it is probable thatthe assets will reduce tax payments in coming years andthey are assessed at the expected net r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ealisable value.Deferred tax is stated accor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ding to current tax regulations.Changes in deferred tax as a consequence of changes intax rates are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ecognised in the income statement.T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>ax on profit for the yearMEUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17b"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff1 fc2 ls3f ws2e">2022<span class="_ _fa"> </span>2021</span>Current tax for the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _120"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">85<span class="_ _10d"> </span>86</span>Change in deferred tax<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d0"> </span>6<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>4Adjustment to valuation of tax assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _20e"> </span>-3<span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span>-1Withholding taxes<span xmlns="http://www.w3.org/1999/xhtml" class="_ _138"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>2Adjustment in current and deferred tax in pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evious years<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-3<span class="_ _74"> </span>-1</span>T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>ax on profit for the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _20f"> </span>85<span xmlns="http://www.w3.org/1999/xhtml" class="_ _116"> </span>90Reconciliation of effective tax rate%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _210"> </span>2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fa"> </span>2021Danish tax rate<span xmlns="http://www.w3.org/1999/xhtml" class="_ _211"> </span>22.0<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d5"> </span>22.0Deviation in non-Danish subsidiaries' tax compared to Danish tax percentage<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e3"> </span>0.6<span xmlns="http://www.w3.org/1999/xhtml" class="_ _189"> </span>1.4Withholding tax adjustment<span xmlns="http://www.w3.org/1999/xhtml" class="_ _212"> </span>0.0<span xmlns="http://www.w3.org/1999/xhtml" class="_ _189"> </span>0.5Permanent differences<span xmlns="http://www.w3.org/1999/xhtml" class="_ _213"> </span>1.8<span xmlns="http://www.w3.org/1999/xhtml" class="_ _189"> </span>0.0Effect on change in income tax rates<span xmlns="http://www.w3.org/1999/xhtml" class="_ _214"> </span>0.2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7d"> </span>-0.4Adjustment to valuation of tax assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _215"> </span>-0.8<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7d"> </span>-0.3Initial recognition of tax credit<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e1"> </span>0.0<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7d"> </span>-0.2Other deviations<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e3"> </span>-0.1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span>0.0Effective tax rate (%)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1f8"> </span>23.7<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span>23.0Income tax receivable and payableMEUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17b"> </span>2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fa"> </span>2021Income tax receivable and payable 1/1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _216"> </span>-13<span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span>-13Exchange rate adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ce"> </span>3<span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span>-2Current tax for the year including withholding taxes<span xmlns="http://www.w3.org/1999/xhtml" class="_ _217"> </span>85<span xmlns="http://www.w3.org/1999/xhtml" class="_ _13"> </span>88Payments during the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _144"> </span>-76<span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span>-85Adjustment in respect of prior years<span xmlns="http://www.w3.org/1999/xhtml" class="_ _108"> </span>-1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span>-1Current tax for the year recognised in other compr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ehensive income<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e9"> </span>1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _110"> </span>-Income tax receivable and payable 31/12<span xmlns="http://www.w3.org/1999/xhtml" class="_ _218"> </span>-1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _99"> </span>-13Income tax is recognised as follows:Income tax receivable<span xmlns="http://www.w3.org/1999/xhtml" class="_ _219"> </span>27<span xmlns="http://www.w3.org/1999/xhtml" class="_ _13"> </span>39Income tax payable<span xmlns="http://www.w3.org/1999/xhtml" class="_ _137"> </span>26<span xmlns="http://www.w3.org/1999/xhtml" class="_ _10d"> </span>26Income tax receivable and payable 31/12<span xmlns="http://www.w3.org/1999/xhtml" class="_ _21a"> </span>--1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _99"> </span>-13Critical estimates and judgementsWhile conducting business globally, transfer pricing disputes, etc. with tax authorities may occur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>, and Management judgement is applied to assess the possible outcome of such disputes. The most probable outcome is used as the measurement method, and Management believes that the provision made for uncertain tax positions not yet settled with local taxauthorities is adequate. However<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>, the actual obligation may deviate and is dependent on the result of litigations and settlements with the relevant tax authorities.The Group is subject to income taxes in numer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ous jurisdictions. Significant estimates is required in<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> determining provision for uncertain tax positions or therecognition of a deferr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ed tax asset.A tax asset is recognised if it is assessed that the asset can be utilised in a foreseeable futur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e based on strong indications that sufficient future pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofits are available to absorb the temporary differ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ences including the Group'sfuture tax planning.The valuation of tax assets related to losses carriedforward is done on a yearly basis and is based onexpected positive taxable income within the next 3-5years.CommentsT<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>ax assets not recognised amount to 16 MEUR (2021: 21 MEUR). The tax assets have not been recognised as they have arisen in subsidiaries that have been loss-makingfor some time and there is no evidence of r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ecoverability in the near future.Deferred tax assets and liabilities are of<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>fset in theconsolidated balance sheet if the Group has a legally enforceable right to set of<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>f and the deferred taxassets and liabilities relate to the same legal taxentity consolidation. Of the total deferred tax assetsrecognised, 20 MEUR (2021: 3 MEUR) r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>elate to tax loss carry forwards.Deferred taxMEUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17b"> </span>2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fa"> </span>2021Deferred tax, net 1/1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c9"> </span>-1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c6"> </span>-7Exchange rate adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ce"> </span>3<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>1Change in deferred tax r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ecognised in profit and loss<span xmlns="http://www.w3.org/1999/xhtml" class="_ _ea"> </span>4<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>4Adjustment to valuation of tax assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _20e"> </span>-3<span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span>-1Deferred tax for the year recognised in other compr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ehensive income for the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e3"> </span>4<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>2Deferred tax, net 31/12<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fc"> </span>7<span xmlns="http://www.w3.org/1999/xhtml" class="_ _78"> </span>-1Deferred tax is r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ecognised in the balance sheet as follows:Deferred tax assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _109"> </span>48<span xmlns="http://www.w3.org/1999/xhtml" class="_ _10d"> </span>52Deferred tax liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _219"> </span>55<span xmlns="http://www.w3.org/1999/xhtml" class="_ _13"> </span>51Deferred tax, net 31/12<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fc"> </span>7<span xmlns="http://www.w3.org/1999/xhtml" class="_ _78"> </span>-1Deferred tax r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>elates to:Non-current assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _21b"> </span>44<span xmlns="http://www.w3.org/1999/xhtml" class="_ _13"> </span>20Current assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _21c"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>1Non-current liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _119"> </span>-7<span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span>-12Current liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _146"> </span>-14<span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span>-11T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>ax loss carried forward<span xmlns="http://www.w3.org/1999/xhtml" class="_ _117"> </span>-20<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c6"> </span>-3Re-taxable amounts<span xmlns="http://www.w3.org/1999/xhtml" class="_ _21b"> </span>4<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>4Deferred tax, net 31/12<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fc"> </span>7<span xmlns="http://www.w3.org/1999/xhtml" class="_ _78"> </span>-1Unrecognised tax assets expir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e as followsMEUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17b"> </span>2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fa"> </span>2021&lt; 1 year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _21d"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c6"> </span> 11-5 years<span xmlns="http://www.w3.org/1999/xhtml" class="_ _21e"> </span>4<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>5&gt; 5 years<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18c"> </span>12<span xmlns="http://www.w3.org/1999/xhtml" class="_ _10d"> </span>13Do not expire<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1af"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>2Unrecognised tax assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c5"> </span>16<span xmlns="http://www.w3.org/1999/xhtml" class="_ _116"> </span>216.2 Commitments and contingent liabilitiesAccounting policiesProvisions for legal pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>oceedings are recognised if they<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> are certain or pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>obable at the balance sheet date, and if the size of the liability can be measured on a reliable<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> basis. Legal proceedings for which no r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>eliable estimate can be made are disclosed as contingent liabilities.CommentsFor the Group, commitments comprise 31 MEUR (2021:26 MEUR), which mainly relates to a number of long-term supply agreements and one conditional tangible asset purchase obligation. Contingent liabilities amount to 6 MEUR (2021: 6 MEUR). Contractual obligations for purchase of tangible assets ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e mentioned in note 3.2.The Group is engaged in a few legal pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>oceedings. It isexpected that the outcome of these legal proceedings will not impact the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s financial position in excess of what has been provided for in the balance sheet as at31 December 2022 (as well as at 31 December 2021).6.3 Related partiesCommentsAt 31 December 2022, own shares accounted for 0.2 per<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>cent<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> (2021: 0.3 percent) of the shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e capital, see note 5.5.The Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s related parties comprise the Company’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s shareholder; the ROCKWOOL Foundation, theCompany’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s Board of Directors and Management and<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> associated companies.In 2022, as well as in 2021, no shares wer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e purchased frommajor shareholders.Apart from dividends and pur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>chase of own shares, notransactions were carried out with the shareholdersduring the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>. For transactions with the Board of Directors and Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>oup Management please refer to note 2.2 and note 2.3.T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>ransactions with related partiesMEUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _cd"> </span>2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _85"> </span>2021T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>ransactions with associated companies:Net sales to associated companies<span xmlns="http://www.w3.org/1999/xhtml" class="_ _93"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">24<span class="_ _60"> </span>21</span>Dividend from associated companies<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a4"> </span>2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _b4"> </span>16.4 Auditor’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s feeCommentsFees for services in addition to the statutory auditof the financial statements which were pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ovidedby the statutory auditor PricewaterhouseCoopersStatsautoriseret Revisionspartnerselskab to the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>oupamounted to less than 1 MEUR in both 2022 and 2021.Services in addition to the statutory audit of the financialstatements comprise general consultancy services.ROCKWOOL's policy is to follow the 70 percentfee cap restriction on non-audit services pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ovidedby PricewaterhouseCoopers StatsautoriseretRevisionspartnerselskab, Denmark, the auditorof the parent company. PricewaterhouseCoopersStatsautoriseret Revisionspartnerselskab complies withthe 70 percent fee cap r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>estriction in 2022 and 2021.Fees to auditors elected atthe Annual General MeetingMEUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e5"> </span>2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _174"> </span>2021Statutory audit<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1cb"> </span>2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _88"> </span>1Other opinions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _176"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _78"> </span>-T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>ax consultancy<span xmlns="http://www.w3.org/1999/xhtml" class="_ _173"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _96"> </span>-Other services<span xmlns="http://www.w3.org/1999/xhtml" class="_ _b5"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _88"> </span>1Fees to auditors<span xmlns="http://www.w3.org/1999/xhtml" class="_ _21f"> </span>2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1fc"> </span>26.5<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> Events after the reporting dateWe ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e not aware of events subsequent to 31 December2022, which are expected to have a material impact onthe Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s financial position.6.6 Group companiesParent companyROCKWOOL A/S% Shares Subsidiaries<span xmlns="http://www.w3.org/1999/xhtml" class="_ _220"> </span>CountryownedROCKWOOL Handelsgesellschaft m.b.H.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _221"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Austria<span class="_ _2b"> </span>100</span>Etablissements Charles Wille et cie SA<span xmlns="http://www.w3.org/1999/xhtml" class="_ _204"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Belgium<span class="_ _30"> </span>100</span>ROCKWOOL Belgium N.V<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _222"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Belgium<span class="_ _2b"> </span>100</span>ROCKWOOL Bulgaria EooD<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e5"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Bulgaria<span class="_ _2b"> </span>100</span>ROXUL Inc.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _223"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Canada<span class="_ _2b"> </span>100</span>Chicago Metallic (Shenzhen) Co. Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _15a"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">China<span class="_ _2b"> </span>100</span>ROCKWOOL Firesafe Insulation (Guangdong) Co. Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _19b"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">China<span class="_ _2b"> </span>100</span>ROCKWOOL Firesafe Insulation (Jiangsu) Co., Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">China<span class="_ _2b"> </span>100</span>ROCKWOOL Adriatic d.o.o.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Croatia<span class="_ _2b"> </span>100</span>ROCKWOOL a.s.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9e"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f">Czech Republic<span class="_ _2b"> </span><span class="ws2e">100</span></span>ROCKWOOL Danmark A/S<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Denmark<span class="_ _2b"> </span>100</span>T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>ripplex ApS<span xmlns="http://www.w3.org/1999/xhtml" class="_ _13c"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Denmark<span class="_ _2b"> </span>100</span>ROCKWOOL EE OÜ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Estonia<span class="_ _30"> </span>100</span>ROCKWOOL Finland OY<span xmlns="http://www.w3.org/1999/xhtml" class="_ _224"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Finland<span class="_ _2b"> </span>100</span>ROCKWOOL France S.A.S<span xmlns="http://www.w3.org/1999/xhtml" class="_ _133"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">France<span class="_ _30"> </span>100</span>Deutsche ROCKWOOL GmbH &amp; Co. KG<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1aa"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Ger<span class="_ _3"/>many<span class="_ _2b"> </span>100</span>HECK W<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>all Systems GmbH<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Ger<span class="_ _3"/>many<span class="_ _30"> </span>100</span>ROCKWOOL Beteiligungs GmbH<span xmlns="http://www.w3.org/1999/xhtml" class="_ _225"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Germany<span class="_ _2b"> </span>100</span>ROCKWOOL Mineralwolle GmbH Flechtingen<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c2"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Germany<span class="_ _2b"> </span>100</span>ROCKWOOL Operations GmbH &amp; Co. KG<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c8"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Ger<span class="_ _3"/>many<span class="_ _30"> </span>100</span>ROCKWOOL Rockfon GmbH<span xmlns="http://www.w3.org/1999/xhtml" class="_ _226"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Germany<span class="_ _2b"> </span>100</span>ROCKWOOL V<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>erwaltungs GmbH<span xmlns="http://www.w3.org/1999/xhtml" class="_ _227"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Germany<span class="_ _2b"> </span>100</span>ROCKWOOL Building Materials Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _15"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f">Hong Kong<span class="_ _2b"> </span><span class="ws2e">100</span></span>ROCKWOOL Hungary Kft.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18f"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Hungary<span class="_ _2b"> </span>100</span>% Shares Subsidiaries<span xmlns="http://www.w3.org/1999/xhtml" class="_ _220"> </span>CountryownedROXUL ROCKWOOL Insulation India Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _204"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">India<span class="_ _30"> </span>100</span>ROXUL ROCKWOOL T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>echnical Insulation India Pvt. Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _93"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">India<span class="_ _30"> </span>100</span>ROCKWOOL Italia S.p.A.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _228"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Italy<span class="_ _2b"> </span>100</span>ROCKWOOL Japan LLC<span xmlns="http://www.w3.org/1999/xhtml" class="_ _229"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Japan<span class="_ _2b"> </span>100</span>ROCKWOOL Korea Co. Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _22a"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Korea<span class="_ _30"> </span>100</span>SIA ROCKWOOL<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1f6"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Latvia<span class="_ _2b"> </span>100</span>ROCKWOOL UAB<span xmlns="http://www.w3.org/1999/xhtml" class="_ _ed"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Lithuania<span class="_ _2b"> </span>100</span>Chicago Metallic (Malaysia) Sdn. Bhd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _45"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Malaysia<span class="_ _30"> </span>100</span>ROCKWOOL Malaysia Sdn. Bhd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _22b"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Malaysia<span class="_ _2b"> </span>100</span>CMC Productos Perlitas S de R.L. de C.V<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1db"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Mexico<span class="_ _2b"> </span>100</span>Servicios Pearl de Mexico S de R.L. de C.V<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _22c"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Mexico<span class="_ _2b"> </span>100</span>AS ROCKWOOL<span xmlns="http://www.w3.org/1999/xhtml" class="_ _22d"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Norway<span class="_ _2b"> </span>100</span>F<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>AST Sp. z o.o.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span>Poland<span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span>100ROCKWOOL Global Business Service Center Sp. z.o.o.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span>Poland<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2b"> </span>100ROCKWOOL Polska Sp. z o.o.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _22e"> </span>Poland<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2b"> </span>100ROCKWOOL Romania s.r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>.l.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span> Romania<span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span>100LLC ROCKWOOL<span xmlns="http://www.w3.org/1999/xhtml" class="_ _186"> </span>Russia<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2b"> </span>100LLC ROCKWOOL-NORTH<span xmlns="http://www.w3.org/1999/xhtml" class="_ _cd"> </span>Russia<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2b"> </span>100LLC ROCKWOOL-Ural<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18e"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Russia<span class="_ _2b"> </span>100</span>LLC ROCKWOOL-VOLGA<span xmlns="http://www.w3.org/1999/xhtml" class="_ _224"> </span>Russia<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2b"> </span>100ROCKWOOL Building Materials (Singapore) Pte Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7d"> </span>Singapore<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2b"> </span>100ROCKWOOL Slovensko s.r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>.o.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _22e"> </span>Slovakia<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2b"> </span>100ROCKWOOL Peninsular S.A.U.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1fd"> </span>Spain<span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span>100ROCKWOOL AB<span xmlns="http://www.w3.org/1999/xhtml" class="_ _22f"> </span>Sweden<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2b"> </span>100% SharesSubsidiaries<span xmlns="http://www.w3.org/1999/xhtml" class="_ _220"> </span>CountryownedFlumroc AG<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1f6"> </span>Switzerland<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2b"> </span>100Meilco Holding AG<span xmlns="http://www.w3.org/1999/xhtml" class="_ _43"> </span>Switzerland<span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span>100P<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>AMAG Engineering AG<span xmlns="http://www.w3.org/1999/xhtml" class="_ _230"> </span>Switzerland<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2b"> </span>100ROCKWOOL GmbH<span xmlns="http://www.w3.org/1999/xhtml" class="_ _195"> </span>Switzerland<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2b"> </span>100ROCKWOOL (Thailand) Limited<span xmlns="http://www.w3.org/1999/xhtml" class="_ _231"> </span>Thailand<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2b"> </span>100Breda Confectie B.V<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span>the Netherlands<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2b"> </span>100ROCKWOOL B.V<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1f2"> </span>the Netherlands<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2b"> </span>100ROCKWOOL Insaat ve Y<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>al<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>itim Sistemleri San. V<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e Tic. Ltd. Sti.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _189"> </span>T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>urkey<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2b"> </span>100LLC ROCKWOOL Ukraine<span xmlns="http://www.w3.org/1999/xhtml" class="_ _232"> </span>Ukraine<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2b"> </span>100ROCKWOOL Middle East FZE<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18f"> </span>UAE<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2b"> </span>100ROCKWOOL Limited<span xmlns="http://www.w3.org/1999/xhtml" class="_ _226"> </span>United Kingdom<span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span>100ROXUL USA Inc.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _233"> </span>United States<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2b"> </span>100A<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ssociated companiesAKUART A/S<span xmlns="http://www.w3.org/1999/xhtml" class="_ _186"> </span>Denmark<span xmlns="http://www.w3.org/1999/xhtml" class="_ _ac"> </span>20RESO SA<span xmlns="http://www.w3.org/1999/xhtml" class="_ _49"> </span>France<span xmlns="http://www.w3.org/1999/xhtml" class="_ _174"> </span>20ScanArc Plasma T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>echnologies AB<span xmlns="http://www.w3.org/1999/xhtml" class="_ _af"> </span>Sweden<span xmlns="http://www.w3.org/1999/xhtml" class="_ _ac"> </span>34The German subsidiaries DEUTSCHE ROCKWOOL GmbH &amp; Co. KG andROCKWOOL Operations GmbH &amp; Co. KG, which have legal form of partnership,make use of the exemptions provided by section 264b of the GermanCommercial Code (HGB)Definition of key figur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es and ratiosEBITDAEarnings before depreciation, write-downs, amortisations, financial items and taxEBITEarnings before financial items and taxNet working capital (NWC)T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>rade receivables, other receivables and other current<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> operating assets less trade payables, other payables and other current operational liabilities adjusted for investment payablesInvested capitalNWC + intangible assets, tangible assets and right-of-use assets less non-interest bearing liabilities andinvestment payablesNet interest bearing debtCash less bank loans and other loans less bank debt less lease liabilitiesEBITDA margin (%)EBITDAx 100%Net salesEBIT margin (%)EBITx 100%Net salesEarnings per share of DKK 10 (EUR 1.3)Profit for the year excl. non-contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>olling interests Average number of outstanding shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>esDiluted earnings per share of DKK 10 (EUR 1.3)Profit for the year excl. non-contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>olling interests Diluted average number of outstanding sharesCash flow per share of DKK 10 (EUR 1.3)Cash flows from operating activities Average number of outstanding shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>esDividend per share of DKK 10 (EUR 1.3)Proposed dividend for the year Number of shares at the end of the yearBook value per share of DKK 10 (EUR 1.3)Equity end of the year excl. non-controlling interests Number of shares at the end of the yearROICEBITx 100%Average invested capital including goodwillReturn on equity (%)Profit for the year excl. non-contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>olling interestsx 100%Average equity excl. non-contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>olling interestsEquity ratio (%)Equity end of the year excl. non-controlling interestsx 100%T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>otal equity and liabilities at the end of the yearPayout ratio (%)Proposed dividend for the yearx 100%Profit for the year excl. non-contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>olling interestsLeverage ratioNet interest-bearing debt EBITDA Financial gearingNet interest-bearing debtEquity end of the yearMarket capNumber of outstanding shares x shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e priceGrowth in local curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>encyGrowth rates excluding curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ency impact, as bothperiods are using the same exchange rates.Non-financial key figuresFor definition of the non-financial key figures mentioned on p. 8, please refer to the Sustainability Report at www<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.rockwool.com/group/about-us/sustainability/sustainability-report-2022/.RA<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>TIOSThe ratios have been calculated in accordance withwww<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.keyratios.org/ issued by CF<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>A Society Denmark. The ratios mentioned in the five-year summary arecalculated as described in the definitions above.EXCHANGE RA<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>TEAverage DKK/EUR2022<span xmlns="http://www.w3.org/1999/xhtml" class="fc1 ls0 ws0"> <span class="_ _234"> </span></span>7.442021<span xmlns="http://www.w3.org/1999/xhtml" class="fc1 ls0 ws0"> <span class="_ _234"> </span><span class="fc2">7</span></span>.442020 7.452019 7.462018 7.45Accounts of foreign subsidiaries ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e translated using theexchange rates at the balance sheet date for balancesheet items, and the periodic average exchange ratesfor items of the income statement. 1.1 Critical accounting estimatesand judgementsThe preparation of the consolidated financial statementsrequires Management to make accounting estimatesand assumptions that have a significant effect on theapplication of policies and reported amounts of assets, liabilities, income, expenses, and related disclosures.The most significant accounting estimates andjudgements are presented below.The application of the Group’s accounting policies may require Management to make judgments that can havea significant effect on the amounts recognised in theconsolidated financial statements. When determiningthe carrying amount of some assets and liabilities itrequires Management to make judgments, estimatesand assumptions concerning future events.The estimates and underlying assumptions are basedon professional experience, historical experience andvarious other factors that Management considersappropriate under the given circumstances. Actualresults may differ from these estimates. The estimates and underlying assumptions are reviewedon an ongoing basis. Changes in estimates may benecessary if there are changes in the circumstanceson which the estimate was based, or if more detailed information becomes available. Such changes are recognised in the period in which the estimate in question is revised.Below are the accounting estimates and judgements,which Management considers significant to thepreparation of the consolidated financial statements:Accounting estimates– Impairment testing (note 3.5)– Deferred tax assets and uncertain tax positions(note 6.1)Judgements– Expected lifetime for tangible assets (note 3.2)The accounting policies are described in each of thespecific notes to the financial statements, which alsoinclude additional description of the most significantaccounting estimates and judgements.1.2 General accounting policiesThe Annual Report for ROCKWOOL A/S has been preparedin accordance with International Financial ReportingStandards (IFRS) as adopted by the EU and furtherrequirements in the Danish Financial Statements Act.The financial year for the Group is 1 January – 31December 2022.Group AccountsThe consolidated financial statements compriseROCKWOOL A/S and the entities in which the companyand its subsidiaries hold the majority of the voting rights.The consolidated financial statements have beenprepared as a consolidation of the parent company’s and the individual subsidiaries’ financial statements,determined according to the Group’s accounting policies, and with elimination of dividends, internalrevenue and expenditure items, internal profits aswell as intercompany balances and intercompanyshareholdings.Besides shares, capital investments in subsidiaries include long-term loans to subsidiaries if such loans constitute an addition to the shareholding.Translation of foreign currencyThe Annual Report has been presented in Euro (EUR)which is the Group’s presentation currency. Each company in the Group determines its own functionalcurrency.Transactions in foreign currency are translated using the exchange rate at the transaction date or a hedged rate. Monetary items in foreign currency are translated usingthe exchange rates at the balance sheet date. Accounts of foreign subsidiaries are translated using the exchange rates at the balance sheet date for balance sheet items,and the periodic average exchange rates for items of theincome statement.Transactions in Russian rubles were since March 2022 translated using exchange rates published by the RussianNational bank. Transactions in rubles were translated using the exchange rates at the balance sheet date forbalance sheet items, and the periodic average exchangerates for items of the income statement.All exchange rate adjustments are recognised in the income statement under financial items, apart from theexchange rate differences arising on:– Conversion of equity in subsidiaries at the beginningof the financial year using the exchange rates at thebalance sheet date;– Conversion of the profit for the year from averageexchange rates to exchange rates at the balance sheetdate;– Conversion of long-term intercompany balances that constitute an addition to the holding of shares in subsidiaries;– Conversion of the forward hedging of capitalinvestments in subsidiaries;– Conversion of capital investments in associated andother companies; and,– Profit and loss on effective derivative financialinstruments used to hedge expected futuretransactions.These value adjustments are recognised directly underother comprehensive income.1.3 New and amended standardsand interpretationsImplementation of new or changed accounting standards and interpretationsEffective from 1 January 2022, the Group hasimplemented the following amendments to standards(IAS and IFRS):– IAS 16, IAS 37, IFRS 3 and annual improvements 2018-2020.The adoption of the new or amended standards has notimpacted our consolidated financial accounts for 2022 and is not anticipated to have a significant impact on future periods.New and amended standards and interpretation notyet adoptedIASB has issued new or amended accounting standards and interpretations that have not yet become effectiveand have consequently not been implemented in the consolidated financial statements for 2022. The Group expects to adopt the accounting standards and interpretations when they become mandatory.None of the new or amended standards orinterpretations are expected to have a significant impacton the consolidated financial statements.1.4 Reporting under the ESEFRegulationThe Commission Delegated Regulation (EU) 2019/815on the European Single Electronic Format (ESEFRegulation) has introduced a single electronic reportingformat for the annual financial reports of issuers withsecurities listed on the EU regulated markets.The ESEF Regulation sets out the annual financialreports shall be disclosed using the XHTML formatand that the statements and notes in the consolidatedfinancial statements shall be tagged using inlineeXtensible Business Reporting Language (iXBRL).IXBRL tags shall comply with the ESEF taxonomy, which isincluded in the ESEF Regulation and developed based onthe IFRS taxonomy published in the IFRS Foundation.As part of the tagging process financial statement lineitems and notes are marked up to elements in the ESEFtaxonomy. If a financial statement line item or note isnot defined in the ESEF taxonomy, an extension to thetaxonomy is created. Extensions have to be anchoredin the ESEF taxonomy, except for extensions which aresubtotals.The Annual Report submitted to the Danish FinancialSupervisory Authority (The Officially AppointedMechanisms) consists of the XHTML document togetherwith some technical files all included in a ZIP file namedROCK-2022-12-31-en.zip.Notes 1.2 General accounting policiesThe Annual Report for ROCKWOOL A/S has been preparedin accordance with International Financial ReportingStandards (IFRS) as adopted by the EU and furtherrequirements in the Danish Financial Statements Act.The financial year for the Group is 1 January – 31December 2022.Group AccountsThe consolidated financial statements compriseROCKWOOL A/S and the entities in which the companyand its subsidiaries hold the majority of the voting rights.The consolidated financial statements have beenprepared as a consolidation of the parent company’s and the individual subsidiaries’ financial statements,determined according to the Group’s accounting policies, and with elimination of dividends, internalrevenue and expenditure items, internal profits aswell as intercompany balances and intercompanyshareholdings.Besides shares, capital investments in subsidiaries include long-term loans to subsidiaries if such loans constitute an addition to the shareholding.Translation of foreign currencyThe Annual Report has been presented in Euro (EUR)which is the Group’s presentation currency. Each company in the Group determines its own functionalcurrency.Transactions in foreign currency are translated using the exchange rate at the transaction date or a hedged rate. Monetary items in foreign currency are translated usingthe exchange rates at the balance sheet date. Accounts of foreign subsidiaries are translated using the exchange rates at the balance sheet date for balance sheet items,and the periodic average exchange rates for items of theincome statement.Transactions in Russian rubles were since March 2022 translated using exchange rates published by the RussianNational bank. Transactions in rubles were translated using the exchange rates at the balance sheet date forbalance sheet items, and the periodic average exchangerates for items of the income statement.All exchange rate adjustments are recognised in the income statement under financial items, apart from theexchange rate differences arising on:– Conversion of equity in subsidiaries at the beginningof the financial year using the exchange rates at thebalance sheet date;– Conversion of the profit for the year from averageexchange rates to exchange rates at the balance sheetdate;– Conversion of long-term intercompany balances that constitute an addition to the holding of shares in subsidiaries;– Conversion of the forward hedging of capitalinvestments in subsidiaries;– Conversion of capital investments in associated andother companies; and,– Profit and loss on effective derivative financialinstruments used to hedge expected futuretransactions.These value adjustments are recognised directly underother comprehensive income. Group AccountsThe consolidated financial statements compriseROCKWOOL A/S and the entities in which the companyand its subsidiaries hold the majority of the voting rights.The consolidated financial statements have beenprepared as a consolidation of the parent company’s and the individual subsidiaries’ financial statements,determined according to the Group’s accounting policies, and with elimination of dividends, internalrevenue and expenditure items, internal profits aswell as intercompany balances and intercompanyshareholdings.Besides shares, capital investments in subsidiaries include long-term loans to subsidiaries if such loans constitute an addition to the shareholding. Translation of foreign currencyThe Annual Report has been presented in Euro (EUR)which is the Group’s presentation currency. Each company in the Group determines its own functionalcurrency.Transactions in foreign currency are translated using the exchange rate at the transaction date or a hedged rate. Monetary items in foreign currency are translated usingthe exchange rates at the balance sheet date. Accounts of foreign subsidiaries are translated using the exchange rates at the balance sheet date for balance sheet items,and the periodic average exchange rates for items of theincome statement.Transactions in Russian rubles were since March 2022 translated using exchange rates published by the RussianNational bank. Transactions in rubles were translated using the exchange rates at the balance sheet date forbalance sheet items, and the periodic average exchangerates for items of the income statement.All exchange rate adjustments are recognised in the income statement under financial items, apart from theexchange rate differences arising on:– Conversion of equity in subsidiaries at the beginningof the financial year using the exchange rates at thebalance sheet date;– Conversion of the profit for the year from averageexchange rates to exchange rates at the balance sheetdate;– Conversion of long-term intercompany balances that constitute an addition to the holding of shares in subsidiaries;– Conversion of the forward hedging of capitalinvestments in subsidiaries;– Conversion of capital investments in associated andother companies; and,– Profit and loss on effective derivative financialinstruments used to hedge expected futuretransactions.These value adjustments are recognised directly underother comprehensive income. Translation of foreign currencyThe Annual Report has been presented in Euro (EUR)which is the Group’s presentation currency. Each company in the Group determines its own functionalcurrency. 1.3 New and amended standardsand interpretationsImplementation of new or changed accounting standards and interpretationsEffective from 1 January 2022, the Group hasimplemented the following amendments to standards(IAS and IFRS):– IAS 16, IAS 37, IFRS 3 and annual improvements 2018-2020.The adoption of the new or amended standards has notimpacted our consolidated financial accounts for 2022 and is not anticipated to have a significant impact on future periods.New and amended standards and interpretation notyet adoptedIASB has issued new or amended accounting standards and interpretations that have not yet become effectiveand have consequently not been implemented in the consolidated financial statements for 2022. The Group expects to adopt the accounting standards and interpretations when they become mandatory.None of the new or amended standards orinterpretations are expected to have a significant impacton the consolidated financial statements. 1.3 New and amended standardsand interpretationsImplementation of new or changed accounting standards and interpretationsEffective from 1 January 2022, the Group hasimplemented the following amendments to standards(IAS and IFRS):– IAS 16, IAS 37, IFRS 3 and annual improvements 2018-2020.The adoption of the new or amended standards has notimpacted our consolidated financial accounts for 2022 and is not anticipated to have a significant impact on future periods.New and amended standards and interpretation notyet adoptedIASB has issued new or amended accounting standards and interpretations that have not yet become effectiveand have consequently not been implemented in the consolidated financial statements for 2022. The Group expects to adopt the accounting standards and interpretations when they become mandatory.None of the new or amended standards orinterpretations are expected to have a significant impacton the consolidated financial statements. The Group produces and sells a range of non-combustible stone wool insulation products, insolutions for ceiling systems, vent faand water management and stone wool substrate solutions for the professional horticultural.Sales are recognised when control of the products has transferred to the customer, being when the products are delivered to the customer and the risk has been transferred. The product are ofte 30 sold with retrospective volume discounts based on aggregate saperiod. Revenue from these sales is recognised basedon the price specified in the contract, net of theestimated volume discounts. Accumulated experience is used to estimate and provide for the discounts, usingthe expected value method.The sales include no element of financing as the sales are made with credit terms of normally 30-60 days consistent with market practice.A receivable is recognised when the products are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due. The Group produces and sells a range of non-combustible stone wool insulation products, insolutions for ceiling systems, vent faand water management and stone wool substrate solutions for the professional horticultural. the products has transferred to the customer, being when the products are delivered to the customer and the risk has been transferred. The product are ofte 30 sold with retrospective volume discounts based on aggregate saperiod. Revenue from these sales is recognised basedon the price specified in the contract, net of theestimated volume discounts. Accumulated experience is used to estimate and provide for the discounts, usingthe expected value method. Segmented accountsGroup Management has determined the business segments for the purpose of assessing business performance andallocating resources. Primarily segments are based onproductprimarilfriction and thermal performance, as Systems segment is defined as non-thermal insulation products. Nearly all external sales consist of sales of products.Segmental data is stated for business areas and geographical areas. The split by business areas is inaccordance with the Group’s internal reporting. The segmental data is presented according to the sameprinciple as the consolidated financial statements. Thesegmental EBIT includes net sales and expenditure including non-recurring expenditure operationally a 12-month related to the segment. 2.1 Net sales and segmented accountsAccounting policiesNet salesThe Group produces and sells a range of non-combustible stone wool insulation products, insolutions for ceiling systems, vent faand water management and stone wool substrate solutions for the professional horticultural.Sales are recognised when control of the products has transferred to the customer, being when the products are delivered to the customer and the risk has been transferred. The product are ofte 30 sold with retrospective volume discounts based on aggregate saperiod. Revenue from these sales is recognised basedon the price specified in the contract, net of theestimated volume discounts. Accumulated experience is used to estimate and provide for the discounts, usingthe expected value method.The sales include no element of financing as the sales are made with credit terms of normally 30-60 days consistent with market practice.A receivable is recognised when the products are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due.Segmented accountsGroup Management has determined the business segments for the purpose of assessing business performance andallocating resources. Primarily segments are based onproductprimarilfriction and thermal performance, as Systems segment is defined as non-thermal insulation products. Nearly all external sales consist of sales of products.Segmental data is stated for business areas and geographical areas. The split by business areas is inaccordance with the Group’s internal reporting. The segmental data is presented according to the sameprinciple as the consolidated financial statements. Thesegmental EBIT includes net sales and expenditure including non-recurring expenditure operationally a 12-month related to the segment.CommentsROCKWOOL Group operates in two business segmentsbased on products: Insulation segment and Systemssegment. The information is based on the managementstructure and internal management reporting to GroupManagement and constitutes the reportable segments.Headquarters costs are allocated to the business segments based on allocation keys used in the internalmanagement reporting. These allocation keys arereassessed annually based on planned activity in thesegments. Intangible and tangible assets and relatedamortisation/depreciation are not fully allocated tobusiness segments as all stone wool production isdone in the Insulation segment. Financial income andexpenses, and income taxes are managed at Grouplevel and are not allocated to business segments.Business segments and sales reportingInsulation Systems ROCKWOOLsegmentsegment EliminationsGroupMEUR 2022 2021 2022 2021 2022 2021 2022 2021External net sales 3 034 2 291 873 797 - - 3 907 3 088Internal net sales 437 354 - - -437 -354 - -EBIT 312 275 90 126 - - 402 401EBIT margin 9.0% 10.4% 10.3% 15.9% - - 10.3% 13.0%Financial items and income- - - - - - -44 -8from associated companiesTax on profit for the year - - - - - - -85 -90Profit for the year - - - - - - 273 303Goods transferred at a point in time3 034 2 291 873 797 - - 3 907 3 088Non-current asset additions 289 295 83 58 - - 372 353Intangible andtangible assets202220219729114273947537002 1522 005Geographical segmentsNet salesMEUR 2022 2021 Western Europe 2 290 1 834 Eastern Europe and Russia 813 562 North America, Asia and others 804 692 Total 3 907 3 088 CommentsInternal net sales from the Insulation segment to the Systems segment are at arms’ length prices. The Insulation segment includes among others interior building insulation, façade insulation, roof insulation and industrial and technical insulation. The Systems segment includes acoustic ceilings and walls, cladding boards, engineered fibres, noise andvibration control, and horticultural substrates.The geographical net sales information is based on the location of the customers, while the information regarding the geographical assets distribution is based on the physical placement of the assets. The domestic sales in Denmark were in the range of 3-4percent of the Group’s net sales in both 2022 and 2021. The domestic intangible and tangible assets in Denmark amount to 196 MEUR (2021: 172 MEUR).No customers exceed 10 percent of the Group’s net sales neither this year nor last year. In Germany and France net sales amount to between 10-15 percent of the Group’s total net sales in both 2022 and 2021. In the United States net sales amount to between 10-20 percent of the Group’s total net sales in 2021. In no other country does net sales exceed10 percent of the Group’s total net sales. In 2022 and 2021, intangible and tangible assets in the United States and Germany exceeded 10 percent of theGroup's total intangible and tangible assets. Geographical segmentsNet salesMEUR 2022 2021 Western Europe 2 290 1 834 Eastern Europe and Russia 813 562 North America, Asia and others 804 692 Total 3 907 3 088 Business segments and sales reportingInsulation Systems ROCKWOOLsegmentsegment EliminationsGroupMEUR 2022 2021 2022 2021 2022 2021 2022 2021External net sales 3 034 2 291 873 797 - - 3 907 3 088Internal net sales 437 354 - - -437 -354 - - Geographical segmentsNet salesMEUR 2022 2021 Western Europe 2 290 1 834 Eastern Europe and Russia 813 562 North America, Asia and others 804 692 Total 3 907 3 088 Business segments and sales reportingInsulation Systems ROCKWOOLsegmentsegment EliminationsGroupMEUR 2022 2021 2022 2021 2022 2021 2022 2021External net sales 3 034 2 291 873 797 - - 3 907 3 088Internal net sales 437 354 - - -437 -354 - - 2.2 Personnel costsCommentsRemuneration of Group Management (key managementpersonnel) complies with the principles of the Group'sRemuneration Policy.The variable part of the total remuneration, measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>edas short-term incentive maximum and annual long-ter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>mincentive grant, can be maximum 50 percent of the total remuneration. The short-term incentive (bonus) isdependent on achievement of individual targets andtargets for the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>oup's financial performance, which areannually approved by the Remuneration Committee. Inaddition, pension and other benefits are offer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed in line with market practice with a total value not exceeding 20 percent of base salary.The individual remuneration elements of eachRegistered Dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ector are disclosed in the annualRemuneration Report.No termination costs are included in 2022. In 2021,termination costs of less than 1 MEUR are included inthe remuneration to Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>oup Management.Personnel costsMEUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17b"> </span>2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fa"> </span>2021W<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ages and salaries<span xmlns="http://www.w3.org/1999/xhtml" class="_ _103"> </span>684<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7d"> </span>614Expended value of RSUs issued<span xmlns="http://www.w3.org/1999/xhtml" class="_ _139"> </span>2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>4Pension Cost<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17c"> </span>34<span xmlns="http://www.w3.org/1999/xhtml" class="_ _13"> </span>31Other social security cost<span xmlns="http://www.w3.org/1999/xhtml" class="_ _13a"> </span>91<span xmlns="http://www.w3.org/1999/xhtml" class="_ _13"> </span>84Personnel costs<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17d"> </span>811<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6"> </span>733Average number of employees<span xmlns="http://www.w3.org/1999/xhtml" class="_ _14e"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="_ _174"> </span>Remuneration to Group Management, Register<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ed Directors and Boar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>d of DirectorsPersonnel costs include the following to Group Management, Register<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ed directors and Board of Dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ectors:MEUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17b"> </span>2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fa"> </span>2021Group ManagementSalaries and other benefits to Group Management<span xmlns="http://www.w3.org/1999/xhtml" class="_ _106"> </span>7<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>7V<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>alue of expensed RSU costs or fair value adjustments to Group Management<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9c"> </span>1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>1Pension cost to Group Management<span xmlns="http://www.w3.org/1999/xhtml" class="_ _108"> </span>1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>1T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>otal to Group Management<span xmlns="http://www.w3.org/1999/xhtml" class="_ _140"> </span>9<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>9Hereof Register<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ed DirectorsHereof r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>emuneration to Registered Directors<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17e"> </span>3<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>3Hereof value of expensed RSU cost or fair value adjustments to Registered Dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ectors<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17f"> </span>1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>1Hereof pension cost to Register<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ed Directors<span xmlns="http://www.w3.org/1999/xhtml" class="_ _15e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _157"> </span>-T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>otal to Registered Directors<span xmlns="http://www.w3.org/1999/xhtml" class="_ _180"> </span>4<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a6"> </span>4Board of Dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ectorsRemuneration to Board of Directors<span xmlns="http://www.w3.org/1999/xhtml" class="_ _181"> </span>1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>1T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>otal remuneration to Registered Dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ectors and Board of Directors<span xmlns="http://www.w3.org/1999/xhtml" class="_ _182"> </span>5<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a6"> </span>53.6 Pension obligationsAccounting policiesPension payments concerning defined contribution plans are<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> recognised on an ongoing basis in the income statement. Defined benefit plans are stated at the net pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>esent valueat the balance sheet date and included in the consolidatedfinancial statements. Adjustments of the plans are carriedout on a regular basis in accor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>dance with underlyingactuarial assessments. Actuarial gains or losses for defined benefit plans are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ecognised in full in the period in which they occur in other comprehensive income. The actuarial assessment is carried out every year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>.Funded benefit plans have assets placed in trustee-administered pension funds, which ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e governed bylocal regulations and practice in each country.The payments to the pension funds are based on the usual actuarial assessments and are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ecognised in the income statement after maturity. Provided that the actuarial assessments of pension obligations show noticeable excess solvency or insolvency in relation tothe pension fund’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s assets, the difference is enter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ed to the balance sheet and the future payments ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e adjustedaccordingly. With regard to these schemes, the actuarialassessment is also carried out every year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>.CommentsThe present value of defined benefit pension obligationsdepends on a number of factors that are determined onan actuarial basis using a number of assumptions. Anychanges to these assumptions will impact the carryingamount of pension obligations.The discount rate and other key assumptions are basedin part on the current market conditions.CommentsA number of the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s employees and former employees participate in pension schemes. The pension schemes areprimarily defined contribution plans. However<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>, defined<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>benefit plans are also used, mainly in Switzerland, theUnited Kingdom and Germany. The benefit plans in theUnited Kingdom and Germany are closed for new entries.Under a defined benefit plan the Group carries the riskassociated with the future development in e.g. inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>estrates, inflation, salaries, mortality and disability.Defined benefit plans typically guarantee the employees aretir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ement benefit based on the final salary at retirement.The pension benefit plans in the United Kingdom andSwitzerland have assets placed in independent pensionfunds. The remaining plans ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e unfunded, where the mainpart relates to Germany. For these plans the retirementbenefit obligations amount to approximately 21 per<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>cent (2021: 22 per<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>cent) of the total gross liability.Except for the Swiss and UK plans, the mentioned definedbenefit plans are not subject to r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>egulatory requirementsregar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ding minimum funding. The granted pensionpayments of the mentioned defined benefit plans are basedupon the salary of the participating employees duringthe period of employment. The Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s contributions are derived from the split of the pension premium between theemployee and employer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>.The actuarial assessment of the pension obligation isbased on assumptions specific to each country. The latestactuarial calculation is prepar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ed by authorised experts.The valuation of the assets is based on the compositionand the expectations to the economic development. Theassumptions used are weighted averages.Pension costsMEUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17b"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff1 fc2 ls3f ws2e">2022<span class="_ _fa"> </span>2021</span>Defined contribution plans:T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>otal pension costs recognised<span xmlns="http://www.w3.org/1999/xhtml" class="_ _142"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">30<span class="_ _10d"> </span>29</span>Defined benefit plans:Pension costs<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1be"> </span>3<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>2Interest costs<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1bf"> </span>3<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>2Interest income<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c0"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-2<span class="_ _74"> </span>-1</span>Curtailments/settlements<span xmlns="http://www.w3.org/1999/xhtml" class="_ _188"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span>-1T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>otal pension costs recognised<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b8"> </span>4<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>2Defined benefit pension plansMEUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _15f"> </span>2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fa"> </span>2021<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fa"> </span>2020<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fa"> </span>2019<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fa"> </span>2018Present value of pension liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c1"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">177<span class="_ _7c"> </span><span class="ws0"> 239<span class="_ _98"> </span></span>250<span class="_ _9a"> </span>247<span class="_ _9a"> </span>217</span>Fair value of plan assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c7"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-179<span class="_ _12b"> </span>-214<span class="_ _12b"> </span>-184<span class="_ _12b"> </span>-185<span class="_ _12b"> </span>-164</span>Assets ceiling limitation<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">34<span class="_ _10d"> </span>10<span class="_ _80"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _110"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _110"> </span>-Pension obligation, net 31/12<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c2"> </span>32<span xmlns="http://www.w3.org/1999/xhtml" class="_ _99"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ws0"> 35<span class="_ _116"> </span></span>66<span xmlns="http://www.w3.org/1999/xhtml" class="_ _10d"> </span>62<span xmlns="http://www.w3.org/1999/xhtml" class="_ _116"> </span>53Key assumptions2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fa"> </span>2021Increase in salaries and wages<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c3"> </span>1.7%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _172"> </span>1.2%Discount rate<span xmlns="http://www.w3.org/1999/xhtml" class="_ _12f"> </span>3.3%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _82"> </span>1.1%Remaining life expectancy at the time of retirement (years)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _163"> </span>24.0<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7c"> </span>27.1Defined benefit pension obligationMEUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17b"> </span>2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fa"> </span>2021Obligations 1/1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c4"> </span>239<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7d"> </span>250Exchange rate adjustments <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c5"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _10d"> </span>10Pension costs<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1be"> </span>4<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>6Interest costs<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1bf"> </span>3<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>2Settlements<span xmlns="http://www.w3.org/1999/xhtml" class="_ _14d"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span>-3Actuarial gains/losses from changes in demographic assumptions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span>-7Actuarial gains/losses from changes in financial assumptions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _154"> </span>-67<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c6"> </span>-7Actuarial gains/losses from changes in experience<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c7"> </span>5<span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span>-2Benefits paid<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c8"> </span>-7<span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span>-10Obligations 31/12<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c9"> </span>177<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6"> </span>239Sensitivity analysisA<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ssumptions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ca"> </span>Discount rate<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d5"> </span>Salary increase<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a6"> </span>Life expectancy-0.5%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ab"> </span>+0.5%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e"> </span>-1.0%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ab"> </span>+1.0%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _35"> </span>-1 year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span>+1 yearMEUR2022 - Impact on obligation<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1cb"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">11<span class="_ _75"> </span>-10<span class="_ _94"> </span>-1<span class="_ _10d"> </span></span>1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-4<span class="_ _13"> </span></span>42021 - Impact on obligation<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1cb"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">19<span class="_ _75"> </span>-18<span class="_ _94"> </span>-2<span class="_ _10d"> </span></span>2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-8<span class="_ _13"> </span></span>8The sensitivity analysis above has been determined based on a method that extrapolates the impact on the defined benefitobligation as a result of reasonable changes in key assumptions.Th<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>e fo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>llo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>win<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>g pay<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>m<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>ent<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>s a<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>re e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>xp<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>ec<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>te<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>d co<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>nt<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>ri<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>bu<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>ti<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>on<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>s to t<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>he d<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>efi<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>ne<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>d b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>en<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>ef<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>it pl<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>an o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>bl<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>iga<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>ti<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>on:Expected contributionsMEUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17b"> </span>2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fa"> </span>2021&lt; 1 year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1cc"> </span>7<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c6"> </span> 71-5 years<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18c"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">22<span class="_ _13"> </span>24</span>&gt; 5 years<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18c"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">40<span class="_ _10d"> </span>38</span>Expected contributions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _f9"> </span>69<span xmlns="http://www.w3.org/1999/xhtml" class="_ _10d"> </span>69The expected duration of the defined benefit plan obligation is 24 years (2021: 27 years) at year end.Pension plan assetsMEUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17b"> </span>2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fa"> </span>2021Pension plan assets 1/1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1cd"> </span>214<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7d"> </span>184Exchange rate adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ce"> </span>1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _10d"> </span>10Interest income<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1cf"> </span>2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>1Return on plan assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d0"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-38<span class="_ _13"> </span>22</span>Employer’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s contribution<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d1"> </span>4<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>4Plan participants<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d2"> </span>1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>1Benefits paid<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c8"> </span>-5<span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span>-8Pension plan assets 31/12<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d3"> </span>179<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6"> </span>214Composition of pension plan assetsMEUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17b"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff1 fc2 ls3f ws2e">2022<span class="_ _fa"> </span>2021</span>Assets quoted in active markets:Equities in European markets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d4"> </span>36%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _12b"> </span>39%Bonds in European markets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _129"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">27%<span class="_ _1d5"> </span>31%</span>Assets unquoted:Cash<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d6"> </span>9%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span>8%Other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b2"> </span>28%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _12b"> </span>22% 2.2 Personnel costsCommentsRemuneration of Group Management (key managementpersonnel) complies with the principles of the Group'sRemuneration Policy.The variable part of the total remuneration, measuredas short-term incentive maximum and annual long-termincentive grant, can be maximum 50 percent of the total remuneration. The short-term incentive (bonus) isdependent on achievement of individual targets andtargets for the Group's financial performance, which areannually approved by the Remuneration Committee. Inaddition, pension and other benefits are offered in line with market practice with a total value not exceeding 20 percent of base salary.The individual remuneration elements of eachRegistered Director are disclosed in the annualRemuneration Report.No termination costs are included in 2022. In 2021,termination costs of less than 1 MEUR are included inthe remuneration to Group Management.Personnel costsMEUR 2022 2021Wages and salaries 684 614Expended value of RSUs issued 2 4Pension Cost 34 31Other social security cost 91 84Personnel costs 811 733Average number of employees Remuneration to Group Management, Registered Directors and Board of DirectorsPersonnel costs include the following to Group Management, Registered directors and Board of Directors:MEUR 2022 2021Group ManagementSalaries and other benefits to Group Management 7 7Value of expensed RSU costs or fair value adjustments to Group Management 1 1Pension cost to Group Management 1 1Total to Group Management 9 9Hereof Registered DirectorsHereof remuneration to Registered Directors 3 3Hereof value of expensed RSU cost or fair value adjustments to Registered Directors 1 1Hereof pension cost to Registered Directors - -Total to Registered Directors 4 4Board of DirectorsRemuneration to Board of Directors 1 1Total remuneration to Registered Directors and Board of Directors 5 5 2.2 Personnel costsCommentsRemuneration of Group Management (key managementpersonnel) complies with the principles of the Group'sRemuneration Policy.The variable part of the total remuneration, measuredas short-term incentive maximum and annual long-termincentive grant, can be maximum 50 percent of the total remuneration. The short-term incentive (bonus) isdependent on achievement of individual targets andtargets for the Group's financial performance, which areannually approved by the Remuneration Committee. Inaddition, pension and other benefits are offered in line with market practice with a total value not exceeding 20 percent of base salary.The individual remuneration elements of eachRegistered Director are disclosed in the annualRemuneration Report.No termination costs are included in 2022. In 2021,termination costs of less than 1 MEUR are included inthe remuneration to Group Management.Personnel costsMEUR 2022 2021Wages and salaries 684 614Expended value of RSUs issued 2 4Pension Cost 34 31Other social security cost 91 84Personnel costs 811 733Average number of employees Remuneration to Group Management, Registered Directors and Board of DirectorsPersonnel costs include the following to Group Management, Registered directors and Board of Directors:MEUR 2022 2021Group ManagementSalaries and other benefits to Group Management 7 7Value of expensed RSU costs or fair value adjustments to Group Management 1 1Pension cost to Group Management 1 1Total to Group Management 9 9Hereof Registered DirectorsHereof remuneration to Registered Directors 3 3Hereof value of expensed RSU cost or fair value adjustments to Registered Directors 1 1Hereof pension cost to Registered Directors - -Total to Registered Directors 4 4Board of DirectorsRemuneration to Board of Directors 1 1Total remuneration to Registered Directors and Board of Directors 5 5 Remuneration to Group Management, Registered Directors and Board of DirectorsPersonnel costs include the following to Group Management, Registered directors and Board of Directors:MEUR 2022 2021Group ManagementSalaries and other benefits to Group Management 7 7Value of expensed RSU costs or fair value adjustments to Group Management 1 1Pension cost to Group Management 1 1Total to Group Management 9 9Hereof Registered DirectorsHereof remuneration to Registered Directors 3 3Hereof value of expensed RSU cost or fair value adjustments to Registered Directors 1 1Hereof pension cost to Registered Directors - -Total to Registered Directors 4 4Board of DirectorsRemuneration to Board of Directors 1 1Total remuneration to Registered Directors and Board of Directors 5 5The estimated fair value of RSUs granted in 2022 was 3MEUR (2021: 3 MEUR) at grant date. In 2022, 2 MEUR was expensed related to the RSUs(2021: 4 MEUR), of which 2 MEUR (2021: 4 MEUR) wasrecognised in personnel costs. In 2022, the fair value adjustment under finance expenses was close to zero(2021: close to zero).Defined benefit pension plansMEUR 2022 2021 2020 2019 2018Present value of pension liabilities 177 239 250 247 217Fair value of plan assets -179 -214 -184 -185 -164Assets ceiling limitation 34 10 - - -Pension obligation, net 31/12 32 35 66 62 53Financial incomeMEUR 2022 2021Interest income 5 2Fair value adjustment Phantom shares 1 -Foreign exchange gains 10 8Financial income 16 10Hereof financial income on financial assets at amortised cost 4 2Categories of financial assets and liabilitiesMEUR 2022 2021Financial assets:Financial instruments for hedging of future cash flows1 -Financial assets at fair value through other comprehensive income1 -Trade receivables347 307Other receivables and receivables from associated companies80 98Cash209 166Financial assets at amortised costs636 571Financial liabilities:Fair value hedges- -Financial liabilities at fair value through income statement- -Financial instruments for hedging of future cash flows3 1Financial liabilities at fair value through other comprehensive income3 1Bank loans and other loans including short-term portion141 26Bank debt7 1Trade payables270 283Other payables196 176Financial liabilities at amortised costs614 486The carrying value of the Group’s financial assets and liabilities measured at amortised cost are assessed to be a reasonable approximation of fair value.Bank loans are measured at amortised cost. The carrying amount for these approximates fair value. Remuneration to Group Management, Register<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ed Directors and Boar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>d of DirectorsPersonnel costs include the following to Group Management, Register<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ed directors and Board of Dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ectors:MEUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17b"> </span>2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fa"> </span>2021Group ManagementSalaries and other benefits to Group Management<span xmlns="http://www.w3.org/1999/xhtml" class="_ _106"> </span>7<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>7V<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>alue of expensed RSU costs or fair value adjustments to Group Management<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9c"> </span>1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>1Pension cost to Group Management<span xmlns="http://www.w3.org/1999/xhtml" class="_ _108"> </span>1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>1T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>otal to Group Management<span xmlns="http://www.w3.org/1999/xhtml" class="_ _140"> </span>9<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>9Hereof Register<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ed DirectorsHereof r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>emuneration to Registered Directors<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17e"> </span>3<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>3Hereof value of expensed RSU cost or fair value adjustments to Registered Dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ectors<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17f"> </span>1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>1Hereof pension cost to Register<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ed Directors<span xmlns="http://www.w3.org/1999/xhtml" class="_ _15e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _157"> </span>-T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>otal to Registered Directors<span xmlns="http://www.w3.org/1999/xhtml" class="_ _180"> </span>4<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a6"> </span>4Board of Dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ectorsRemuneration to Board of Directors<span xmlns="http://www.w3.org/1999/xhtml" class="_ _181"> </span>1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>1T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>otal remuneration to Registered Dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ectors and Board of Directors<span xmlns="http://www.w3.org/1999/xhtml" class="_ _182"> </span>5<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a6"> </span>52.3 Long-term incentive programmesAccounting policiesT<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>wo different shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e-based incent<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>ive programmes<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> have been established: A stock option programme and a restricted shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e programme (RSUs). Both programmes ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e classified as equity based, as they are settled in shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>es. Due to local rules, a minor part of both programmes is given as phantom shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>es and is classified as cash-based, as they are settled in cash. The programmes ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e offered to Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup Management and other senior executives. The incentive programmes are part of the variable part of the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>emuneration and follows the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s Remuneration policy. Participation in the programmes ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e at the Remuneration Committeesdiscretion and no individual has a contractual right to participate or receive any guaranteed benefit.Stock optionsOn issuance of stock options, the fair value of the options is assessed using the Black &amp; Scholes formula at the time<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> of grant and is recognised in personnel costs in the incomestatement and in equity over the three-year vesting period.A part of the stock options is given as phantom shares(cash-based programme) and ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e adjusted after initialrecognition to fair value thr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ough financial expenses inthe income statement against a related pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ovision.Restricted Share Units (RSUs)When RSUs are issued, the value of the RSUs at grantdate is recognised in personnel cost in the income statement and in equity over the three-year vesting period. On initial recognition of the RSUs, the number ofRSUs expected to vest is estimated. Subsequently, the estimate is revised so the total cost r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ecognised is basedon the actual number of RSUs vested. The fair value ofRSUs is determined based on the quoted share priceat grant adjusted for expected dividend payout (basedon historic dividend payout ratio). The participants arecompensated for any dividend payment by receivingadditional RSUs.A minor part of the RSUs are given as phantom shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>es(cash-based programme) and ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e after initial recognitionadjusted to fair value through financial expenses in the income statement against a related pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ovision.CommentsStock optionsNo stock options have been granted since 2015. Theoutstanding options are all exercisable and fully vestedat the end of the reporting period.The average share price at exer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>cise in 2022 was209 EUR (2021: 409 EUR). All stock options are now exercised. In 2022, no stock options expir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ed. In 2021,the stock options granted in 2013 expired and theywere all exer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>cised.Stock option programmeStock options outstanding at year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>-end have the following exercise periods and exercise prices:Exercise <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6f"/> Number of stock<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> Number of stockTime of grant<span xmlns="http://www.w3.org/1999/xhtml" class="_ _41"> </span>Exercise periodprice (EUR)options 2022options 20212015<span xmlns="http://www.w3.org/1999/xhtml" class="_ _183"> </span>20.03.2018 - 19.03.2023<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> <span xmlns="http://www.w3.org/1999/xhtml" class="_ _4d"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff11 ws2e">103<span class="_ _c6"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _90"> </span>4 200-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2d"> </span>4 200In 2021, all remaining stock options belonged to senior executives.Development in outstanding stock options2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _184"> </span>2021Average <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6f"/> AverageNumber of<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"/> exercise <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6f"/> Number of<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"/> exercisestock optionsprice (EUR)stock optionsprice (EUR)Outstanding stock options 1/1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _185"> </span>4 200<span xmlns="http://www.w3.org/1999/xhtml" class="_ _92"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ws2e">103<span class="_ _a6"> </span></span>15 050<span xmlns="http://www.w3.org/1999/xhtml" class="_ _92"> </span>110Exercised <span xmlns="http://www.w3.org/1999/xhtml" class="_ _186"> </span>4 200<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8d"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ws2e">103<span class="_ _a6"> </span></span>10 850<span xmlns="http://www.w3.org/1999/xhtml" class="_ _92"> </span>114Outstanding stock options 31/12<span xmlns="http://www.w3.org/1999/xhtml" class="_ _185"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _175"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _80"> </span>4 200<span xmlns="http://www.w3.org/1999/xhtml" class="_ _bc"> </span>103CommentsRestricted Share UnitsRestricted Share Units (RSUs) will be subject to a vesting period of three years. After the vesting period the shares ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e transferred to the participants withoutpayment, subject to continued employment withROCKWOOL Group in the vesting period.The RSUs repr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>esent the employee's right to shares butdo not carry voting rights nor have any tangible valuebefore the RSUs ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e exercised and become actual Bshares of ROCKWOOL A/S. The terms of the shareincentive may provide that shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>es may be settled in cash in which case, the related pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ovision equals the share price at the time of vesting.The estimated fair value of RSUs granted in 2022 was 3MEUR (2021: 3 MEUR) at grant date. In 2022, 2 MEUR was expensed related to the RSUs(2021: 4 MEUR), of which 2 MEUR (2021: 4 MEUR) wasrecognised in personnel costs. In 2022, the fair value adjustment under finance expenses was close to zero(2021: close to zero).Cash-settled programmesThe cash-settled programmes consist of phantom shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>esgranted during the years 2019-2021.The employees granted the phantom shares participate on terms and conditions similar to those applying to the share options and the RSUs.There ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e no more phantom options outstanding fromthe 2013-2015 stock options. The outstanding RSUsfrom 2020-2022 include 3117 phantom shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>es (2021: 5014).The total intrinsic value of the phantom stock options/RSUs at year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>-end amounts to less than 1 MEUR (2021: 1MEUR), which is recognised as a liability.Restricted share units (RSUs)RSUs outstanding at year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>-end have the following vesting dates:V<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esting<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> Number of<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"/> Number ofTime of grantdateRSUs 2022RSUs 20212019<span xmlns="http://www.w3.org/1999/xhtml" class="_ _140"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">24.05.2022<span class="_ _80"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _174"> </span>10 3112020<span xmlns="http://www.w3.org/1999/xhtml" class="_ _140"> </span>23.05.2023<span xmlns="http://www.w3.org/1999/xhtml" class="_ _177"> </span>14 190<span xmlns="http://www.w3.org/1999/xhtml" class="_ _177"> </span>14 2262020, one-time award<span xmlns="http://www.w3.org/1999/xhtml" class="_ _187"> </span>26.05.2025<span xmlns="http://www.w3.org/1999/xhtml" class="_ _21"> </span>9 272<span xmlns="http://www.w3.org/1999/xhtml" class="_ _21"> </span>9 2722021<span xmlns="http://www.w3.org/1999/xhtml" class="_ _140"> </span>22.05.2024<span xmlns="http://www.w3.org/1999/xhtml" class="_ _12d"> </span>7 237<span xmlns="http://www.w3.org/1999/xhtml" class="_ _21"> </span>7 2512022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _140"> </span>21.05.2025<span xmlns="http://www.w3.org/1999/xhtml" class="_ _12d"> </span>9 353<span xmlns="http://www.w3.org/1999/xhtml" class="_ _80"> </span>-40 052<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e"> </span>41 060Weighted average r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>emaining contractual life of the outstandingRSUs at year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>-end (Y<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ear)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _188"> </span>1.5<span xmlns="http://www.w3.org/1999/xhtml" class="_ _189"> </span>1.8Of the number of RSUs 15 972 belong to <span xmlns="http://www.w3.org/1999/xhtml" class="ls120">Registered Directors</span> and 24 080 to other senior executives. In 2021, 16 364 belonged toRegistered Directors an<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>d 24 696 to o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ther senior executives.Development in number of outstanding RSUs2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fa"> </span>2021Outstanding RSUs 1/1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _144"> </span>41 060<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> <span xmlns="http://www.w3.org/1999/xhtml" class="_ _11"> </span>42 303Granted<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18a"> </span>9 908<span xmlns="http://www.w3.org/1999/xhtml" class="_ _21"> </span>7 559V<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ested<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18b"> </span>10 849<span xmlns="http://www.w3.org/1999/xhtml" class="_ _21"> </span>8 802Forfeited<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18c"> </span>67<span xmlns="http://www.w3.org/1999/xhtml" class="_ _80"> </span>-Outstanding RSUs 31/12 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _111"> </span>40 052<span xmlns="http://www.w3.org/1999/xhtml" class="_ _34"> </span>41 060The average share price the day following the vesting date was 257 EUR.6.3 Related partiesCommentsAt 31 December 2022, own shares accounted for 0.2 per<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>cent<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> (2021: 0.3 percent) of the shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e capital, see note 5.5.The Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s related parties comprise the Company’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s shareholder; the ROCKWOOL Foundation, theCompany’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s Board of Directors and Management and<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> associated companies.In 2022, as well as in 2021, no shares wer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e purchased frommajor shareholders.Apart from dividends and pur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>chase of own shares, notransactions were carried out with the shareholdersduring the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>. For transactions with the Board of Directors and Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>oup Management please refer to note 2.2 and note 2.3.T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>ransactions with related partiesMEUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _cd"> </span>2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _85"> </span>2021T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>ransactions with associated companies:Net sales to associated companies<span xmlns="http://www.w3.org/1999/xhtml" class="_ _93"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">24<span class="_ _60"> </span>21</span>Dividend from associated companies<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a4"> </span>2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _b4"> </span>1 Remuneration to Group Management, Register<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ed Directors and Boar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>d of DirectorsPersonnel costs include the following to Group Management, Register<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ed directors and Board of Dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ectors:MEUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17b"> </span>2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fa"> </span>2021Group ManagementSalaries and other benefits to Group Management<span xmlns="http://www.w3.org/1999/xhtml" class="_ _106"> </span>7<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>7V<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>alue of expensed RSU costs or fair value adjustments to Group Management<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9c"> </span>1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>1Pension cost to Group Management<span xmlns="http://www.w3.org/1999/xhtml" class="_ _108"> </span>1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>1T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>otal to Group Management<span xmlns="http://www.w3.org/1999/xhtml" class="_ _140"> </span>9<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>9Hereof Register<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ed DirectorsHereof r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>emuneration to Registered Directors<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17e"> </span>3<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>3Hereof value of expensed RSU cost or fair value adjustments to Registered Dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ectors<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17f"> </span>1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>1Hereof pension cost to Register<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ed Directors<span xmlns="http://www.w3.org/1999/xhtml" class="_ _15e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _157"> </span>-T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>otal to Registered Directors<span xmlns="http://www.w3.org/1999/xhtml" class="_ _180"> </span>4<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a6"> </span>4Board of Dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ectorsRemuneration to Board of Directors<span xmlns="http://www.w3.org/1999/xhtml" class="_ _181"> </span>1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>1T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>otal remuneration to Registered Dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ectors and Board of Directors<span xmlns="http://www.w3.org/1999/xhtml" class="_ _182"> </span>5<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a6"> </span>52.3 Long-term incentive programmesAccounting policiesT<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>wo different shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e-based incent<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>ive programmes<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> have been established: A stock option programme and a restricted shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e programme (RSUs). Both programmes ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e classified as equity based, as they are settled in shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>es. Due to local rules, a minor part of both programmes is given as phantom shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>es and is classified as cash-based, as they are settled in cash. The programmes ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e offered to Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup Management and other senior executives. The incentive programmes are part of the variable part of the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>emuneration and follows the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s Remuneration policy. Participation in the programmes ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e at the Remuneration Committeesdiscretion and no individual has a contractual right to participate or receive any guaranteed benefit.Stock optionsOn issuance of stock options, the fair value of the options is assessed using the Black &amp; Scholes formula at the time<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> of grant and is recognised in personnel costs in the incomestatement and in equity over the three-year vesting period.A part of the stock options is given as phantom shares(cash-based programme) and ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e adjusted after initialrecognition to fair value thr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ough financial expenses inthe income statement against a related pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ovision.Restricted Share Units (RSUs)When RSUs are issued, the value of the RSUs at grantdate is recognised in personnel cost in the income statement and in equity over the three-year vesting period. On initial recognition of the RSUs, the number ofRSUs expected to vest is estimated. Subsequently, the estimate is revised so the total cost r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ecognised is basedon the actual number of RSUs vested. The fair value ofRSUs is determined based on the quoted share priceat grant adjusted for expected dividend payout (basedon historic dividend payout ratio). The participants arecompensated for any dividend payment by receivingadditional RSUs.A minor part of the RSUs are given as phantom shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>es(cash-based programme) and ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e after initial recognitionadjusted to fair value through financial expenses in the income statement against a related pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ovision.CommentsStock optionsNo stock options have been granted since 2015. Theoutstanding options are all exercisable and fully vestedat the end of the reporting period.The average share price at exer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>cise in 2022 was209 EUR (2021: 409 EUR). All stock options are now exercised. In 2022, no stock options expir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ed. In 2021,the stock options granted in 2013 expired and theywere all exer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>cised.Stock option programmeStock options outstanding at year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>-end have the following exercise periods and exercise prices:Exercise <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6f"/> Number of stock<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> Number of stockTime of grant<span xmlns="http://www.w3.org/1999/xhtml" class="_ _41"> </span>Exercise periodprice (EUR)options 2022options 20212015<span xmlns="http://www.w3.org/1999/xhtml" class="_ _183"> </span>20.03.2018 - 19.03.2023<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> <span xmlns="http://www.w3.org/1999/xhtml" class="_ _4d"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff11 ws2e">103<span class="_ _c6"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _90"> </span>4 200-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2d"> </span>4 200In 2021, all remaining stock options belonged to senior executives.Development in outstanding stock options2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _184"> </span>2021Average <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6f"/> AverageNumber of<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"/> exercise <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6f"/> Number of<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"/> exercisestock optionsprice (EUR)stock optionsprice (EUR)Outstanding stock options 1/1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _185"> </span>4 200<span xmlns="http://www.w3.org/1999/xhtml" class="_ _92"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ws2e">103<span class="_ _a6"> </span></span>15 050<span xmlns="http://www.w3.org/1999/xhtml" class="_ _92"> </span>110Exercised <span xmlns="http://www.w3.org/1999/xhtml" class="_ _186"> </span>4 200<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8d"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ws2e">103<span class="_ _a6"> </span></span>10 850<span xmlns="http://www.w3.org/1999/xhtml" class="_ _92"> </span>114Outstanding stock options 31/12<span xmlns="http://www.w3.org/1999/xhtml" class="_ _185"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _175"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _80"> </span>4 200<span xmlns="http://www.w3.org/1999/xhtml" class="_ _bc"> </span>103CommentsRestricted Share UnitsRestricted Share Units (RSUs) will be subject to a vesting period of three years. After the vesting period the shares ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e transferred to the participants withoutpayment, subject to continued employment withROCKWOOL Group in the vesting period.The RSUs repr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>esent the employee's right to shares butdo not carry voting rights nor have any tangible valuebefore the RSUs ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e exercised and become actual Bshares of ROCKWOOL A/S. The terms of the shareincentive may provide that shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>es may be settled in cash in which case, the related pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ovision equals the share price at the time of vesting.The estimated fair value of RSUs granted in 2022 was 3MEUR (2021: 3 MEUR) at grant date. In 2022, 2 MEUR was expensed related to the RSUs(2021: 4 MEUR), of which 2 MEUR (2021: 4 MEUR) wasrecognised in personnel costs. In 2022, the fair value adjustment under finance expenses was close to zero(2021: close to zero).Cash-settled programmesThe cash-settled programmes consist of phantom shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>esgranted during the years 2019-2021.The employees granted the phantom shares participate on terms and conditions similar to those applying to the share options and the RSUs.There ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e no more phantom options outstanding fromthe 2013-2015 stock options. The outstanding RSUsfrom 2020-2022 include 3117 phantom shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>es (2021: 5014).The total intrinsic value of the phantom stock options/RSUs at year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>-end amounts to less than 1 MEUR (2021: 1MEUR), which is recognised as a liability.Restricted share units (RSUs)RSUs outstanding at year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>-end have the following vesting dates:V<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esting<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> Number of<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"/> Number ofTime of grantdateRSUs 2022RSUs 20212019<span xmlns="http://www.w3.org/1999/xhtml" class="_ _140"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">24.05.2022<span class="_ _80"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _174"> </span>10 3112020<span xmlns="http://www.w3.org/1999/xhtml" class="_ _140"> </span>23.05.2023<span xmlns="http://www.w3.org/1999/xhtml" class="_ _177"> </span>14 190<span xmlns="http://www.w3.org/1999/xhtml" class="_ _177"> </span>14 2262020, one-time award<span xmlns="http://www.w3.org/1999/xhtml" class="_ _187"> </span>26.05.2025<span xmlns="http://www.w3.org/1999/xhtml" class="_ _21"> </span>9 272<span xmlns="http://www.w3.org/1999/xhtml" class="_ _21"> </span>9 2722021<span xmlns="http://www.w3.org/1999/xhtml" class="_ _140"> </span>22.05.2024<span xmlns="http://www.w3.org/1999/xhtml" class="_ _12d"> </span>7 237<span xmlns="http://www.w3.org/1999/xhtml" class="_ _21"> </span>7 2512022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _140"> </span>21.05.2025<span xmlns="http://www.w3.org/1999/xhtml" class="_ _12d"> </span>9 353<span xmlns="http://www.w3.org/1999/xhtml" class="_ _80"> </span>-40 052<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e"> </span>41 060Weighted average r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>emaining contractual life of the outstandingRSUs at year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>-end (Y<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ear)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _188"> </span>1.5<span xmlns="http://www.w3.org/1999/xhtml" class="_ _189"> </span>1.8Of the number of RSUs 15 972 belong to <span xmlns="http://www.w3.org/1999/xhtml" class="ls120">Registered Directors</span> and 24 080 to other senior executives. In 2021, 16 364 belonged toRegistered Directors an<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>d 24 696 to o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ther senior executives.Development in number of outstanding RSUs2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fa"> </span>2021Outstanding RSUs 1/1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _144"> </span>41 060<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> <span xmlns="http://www.w3.org/1999/xhtml" class="_ _11"> </span>42 303Granted<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18a"> </span>9 908<span xmlns="http://www.w3.org/1999/xhtml" class="_ _21"> </span>7 559V<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ested<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18b"> </span>10 849<span xmlns="http://www.w3.org/1999/xhtml" class="_ _21"> </span>8 802Forfeited<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18c"> </span>67<span xmlns="http://www.w3.org/1999/xhtml" class="_ _80"> </span>-Outstanding RSUs 31/12 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _111"> </span>40 052<span xmlns="http://www.w3.org/1999/xhtml" class="_ _34"> </span>41 060The average share price the day following the vesting date was 257 EUR. 2.3 Long-term incentive programmesAccounting policiesT<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>wo different shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e-based incent<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>ive programmes<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> have been established: A stock option programme and a restricted shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e programme (RSUs). Both programmes ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e classified as equity based, as they are settled in shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>es. Due to local rules, a minor part of both programmes is given as phantom shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>es and is classified as cash-based, as they are settled in cash. The programmes ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e offered to Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup Management and other senior executives. The incentive programmes are part of the variable part of the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>emuneration and follows the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s Remuneration policy. Participation in the programmes ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e at the Remuneration Committeesdiscretion and no individual has a contractual right to participate or receive any guaranteed benefit.Stock optionsOn issuance of stock options, the fair value of the options is assessed using the Black &amp; Scholes formula at the time<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> of grant and is recognised in personnel costs in the incomestatement and in equity over the three-year vesting period.A part of the stock options is given as phantom shares(cash-based programme) and ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e adjusted after initialrecognition to fair value thr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ough financial expenses inthe income statement against a related pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ovision.Restricted Share Units (RSUs)When RSUs are issued, the value of the RSUs at grantdate is recognised in personnel cost in the income statement and in equity over the three-year vesting period. On initial recognition of the RSUs, the number ofRSUs expected to vest is estimated. Subsequently, the estimate is revised so the total cost r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ecognised is basedon the actual number of RSUs vested. The fair value ofRSUs is determined based on the quoted share priceat grant adjusted for expected dividend payout (basedon historic dividend payout ratio). The participants arecompensated for any dividend payment by receivingadditional RSUs.A minor part of the RSUs are given as phantom shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>es(cash-based programme) and ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e after initial recognitionadjusted to fair value through financial expenses in the income statement against a related pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ovision.CommentsStock optionsNo stock options have been granted since 2015. Theoutstanding options are all exercisable and fully vestedat the end of the reporting period.The average share price at exer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>cise in 2022 was209 EUR (2021: 409 EUR). All stock options are now exercised. In 2022, no stock options expir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ed. In 2021,the stock options granted in 2013 expired and theywere all exer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>cised.Stock option programmeStock options outstanding at year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>-end have the following exercise periods and exercise prices:Exercise <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6f"/> Number of stock<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> Number of stockTime of grant<span xmlns="http://www.w3.org/1999/xhtml" class="_ _41"> </span>Exercise periodprice (EUR)options 2022options 20212015<span xmlns="http://www.w3.org/1999/xhtml" class="_ _183"> </span>20.03.2018 - 19.03.2023<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> <span xmlns="http://www.w3.org/1999/xhtml" class="_ _4d"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff11 ws2e">103<span class="_ _c6"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _90"> </span>4 200-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2d"> </span>4 200In 2021, all remaining stock options belonged to senior executives.Development in outstanding stock options2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _184"> </span>2021Average <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6f"/> AverageNumber of<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"/> exercise <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6f"/> Number of<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"/> exercisestock optionsprice (EUR)stock optionsprice (EUR)Outstanding stock options 1/1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _185"> </span>4 200<span xmlns="http://www.w3.org/1999/xhtml" class="_ _92"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ws2e">103<span class="_ _a6"> </span></span>15 050<span xmlns="http://www.w3.org/1999/xhtml" class="_ _92"> </span>110Exercised <span xmlns="http://www.w3.org/1999/xhtml" class="_ _186"> </span>4 200<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8d"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ws2e">103<span class="_ _a6"> </span></span>10 850<span xmlns="http://www.w3.org/1999/xhtml" class="_ _92"> </span>114Outstanding stock options 31/12<span xmlns="http://www.w3.org/1999/xhtml" class="_ _185"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _175"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _80"> </span>4 200<span xmlns="http://www.w3.org/1999/xhtml" class="_ _bc"> </span>103CommentsRestricted Share UnitsRestricted Share Units (RSUs) will be subject to a vesting period of three years. After the vesting period the shares ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e transferred to the participants withoutpayment, subject to continued employment withROCKWOOL Group in the vesting period.The RSUs repr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>esent the employee's right to shares butdo not carry voting rights nor have any tangible valuebefore the RSUs ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e exercised and become actual Bshares of ROCKWOOL A/S. The terms of the shareincentive may provide that shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>es may be settled in cash in which case, the related pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ovision equals the share price at the time of vesting.The estimated fair value of RSUs granted in 2022 was 3MEUR (2021: 3 MEUR) at grant date. In 2022, 2 MEUR was expensed related to the RSUs(2021: 4 MEUR), of which 2 MEUR (2021: 4 MEUR) wasrecognised in personnel costs. In 2022, the fair value adjustment under finance expenses was close to zero(2021: close to zero).Cash-settled programmesThe cash-settled programmes consist of phantom shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>esgranted during the years 2019-2021.The employees granted the phantom shares participate on terms and conditions similar to those applying to the share options and the RSUs.There ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e no more phantom options outstanding fromthe 2013-2015 stock options. The outstanding RSUsfrom 2020-2022 include 3117 phantom shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>es (2021: 5014).The total intrinsic value of the phantom stock options/RSUs at year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>-end amounts to less than 1 MEUR (2021: 1MEUR), which is recognised as a liability.Restricted share units (RSUs)RSUs outstanding at year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>-end have the following vesting dates:V<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esting<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> Number of<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"/> Number ofTime of grantdateRSUs 2022RSUs 20212019<span xmlns="http://www.w3.org/1999/xhtml" class="_ _140"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">24.05.2022<span class="_ _80"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _174"> </span>10 3112020<span xmlns="http://www.w3.org/1999/xhtml" class="_ _140"> </span>23.05.2023<span xmlns="http://www.w3.org/1999/xhtml" class="_ _177"> </span>14 190<span xmlns="http://www.w3.org/1999/xhtml" class="_ _177"> </span>14 2262020, one-time award<span xmlns="http://www.w3.org/1999/xhtml" class="_ _187"> </span>26.05.2025<span xmlns="http://www.w3.org/1999/xhtml" class="_ _21"> </span>9 272<span xmlns="http://www.w3.org/1999/xhtml" class="_ _21"> </span>9 2722021<span xmlns="http://www.w3.org/1999/xhtml" class="_ _140"> </span>22.05.2024<span xmlns="http://www.w3.org/1999/xhtml" class="_ _12d"> </span>7 237<span xmlns="http://www.w3.org/1999/xhtml" class="_ _21"> </span>7 2512022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _140"> </span>21.05.2025<span xmlns="http://www.w3.org/1999/xhtml" class="_ _12d"> </span>9 353<span xmlns="http://www.w3.org/1999/xhtml" class="_ _80"> </span>-40 052<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e"> </span>41 060Weighted average r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>emaining contractual life of the outstandingRSUs at year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>-end (Y<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ear)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _188"> </span>1.5<span xmlns="http://www.w3.org/1999/xhtml" class="_ _189"> </span>1.8Of the number of RSUs 15 972 belong to <span xmlns="http://www.w3.org/1999/xhtml" class="ls120">Registered Directors</span> and 24 080 to other senior executives. In 2021, 16 364 belonged toRegistered Directors an<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>d 24 696 to o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ther senior executives.Development in number of outstanding RSUs2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fa"> </span>2021Outstanding RSUs 1/1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _144"> </span>41 060<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> <span xmlns="http://www.w3.org/1999/xhtml" class="_ _11"> </span>42 303Granted<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18a"> </span>9 908<span xmlns="http://www.w3.org/1999/xhtml" class="_ _21"> </span>7 559V<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ested<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18b"> </span>10 849<span xmlns="http://www.w3.org/1999/xhtml" class="_ _21"> </span>8 802Forfeited<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18c"> </span>67<span xmlns="http://www.w3.org/1999/xhtml" class="_ _80"> </span>-Outstanding RSUs 31/12 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _111"> </span>40 052<span xmlns="http://www.w3.org/1999/xhtml" class="_ _34"> </span>41 060The average share price the day following the vesting date was 257 EUR. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>wo different shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e-based incent<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>ive programmes<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> have been established: A stock option programme and a restricted shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e programme (RSUs). Both programmes ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e classified as equity based, as they are settled in shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>es. Due to local rules, a minor part of both programmes is given as phantom shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>es and is classified as cash-based, as they are settled in cash. The programmes ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e offered to Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup Management and other senior executives. The incentive programmes are part of the variable part of the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>emuneration and follows the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s Remuneration policy. Participation in the programmes ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e at the Remuneration Committeesdiscretion and no individual has a contractual right to participate or receive any guaranteed benefit.Stock optionsOn issuance of stock options, the fair value of the options is assessed using the Black &amp; Scholes formula at the time<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> of grant and is recognised in personnel costs in the incomestatement and in equity over the three-year vesting period.A part of the stock options is given as phantom shares(cash-based programme) and ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e adjusted after initialrecognition to fair value thr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ough financial expenses inthe income statement against a related pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ovision.Restricted Share Units (RSUs)When RSUs are issued, the value of the RSUs at grantdate is recognised in personnel cost in the income statement and in equity over the three-year vesting period. On initial recognition of the RSUs, the number ofRSUs expected to vest is estimated. Subsequently, the estimate is revised so the total cost r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ecognised is basedon the actual number of RSUs vested. The fair value ofRSUs is determined based on the quoted share priceat grant adjusted for expected dividend payout (basedon historic dividend payout ratio). The participants arecompensated for any dividend payment by receivingadditional RSUs.A minor part of the RSUs are given as phantom shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>es(cash-based programme) and ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e after initial recognitionadjusted to fair value through financial expenses in the income statement against a related pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ovision. The costs of research activities are carried as expenditure in the year in which they are incurred. The costs of development projects which are clearly defined and identifiable, and of which the potential technical and commercial exploitation is demonstrated, are capitalised to the extent that they are expected to generate future revenue. Other development costs are recognised on an ongoing basis in the income statement under operating costs.Intangible assets, apart from goodwill, are stated at cost less accumulated amortisation and write-downs.Amortisation of the following intangible assets is madeon a straight-line basis over the expected future lifetimeof the assets, which is:Development projects: 2-10 yearsPatents: 5-20 yearsSoftware: 2-4 yearsTrademarks: 10-20 yearsCustomer relationships: 10-15 yearsGoodwill arisen from acquisition of enterprises and activities is stated at cost. The carrying amount of goodwill is allocated to the Group’s cash-generating units at the acquisition date. Identification of independent cash-generating units is based on business structure and level of internal control of cash flow. Goodwill is tested annually for impairment andthe carrying amount of other assets is reviewed onindications of impairment. When testing for impairment,the value is written down to the estimated net salesprice or the value in use, if greater. Software in progress is also tested for impairment annually. The costs of research activities are carried as expenditure in the year in which they are incurred. The costs of development projects which are clearly defined and identifiable, and of which the potential technical and commercial exploitation is demonstrated, are capitalised to the extent that they are expected to generate future revenue. Other development costs are recognised on an ongoing basis in the income statement under operating costs.Intangible assets, apart from goodwill, are stated at cost less accumulated amortisation and write-downs.Amortisation of the following intangible assets is madeon a straight-line basis over the expected future lifetimeof the assets, which is:Development projects: 2-10 yearsPatents: 5-20 yearsSoftware: 2-4 yearsTrademarks: 10-20 yearsCustomer relationships: 10-15 yearsGoodwill arisen from acquisition of enterprises and activities is stated at cost. The carrying amount of goodwill is allocated to the Group’s cash-generating units at the acquisition date. Identification of independent cash-generating units is based on business structure and level of internal control of cash flow. Goodwill is tested annually for impairment andthe carrying amount of other assets is reviewed onindications of impairment. When testing for impairment,the value is written down to the estimated net salesprice or the value in use, if greater. Software in progress is also tested for impairment annually. The costs of research activities are carried as expenditure in the year in which they are incurred. The costs of development projects which are clearly defined and identifiable, and of which the potential technical and commercial exploitation is demonstrated, are capitalised to the extent that they are expected to generate future revenue. Other development costs are recognised on an ongoing basis in the income statement under operating costs.Intangible assets, apart from goodwill, are stated at cost less accumulated amortisation and write-downs.Amortisation of the following intangible assets is madeon a straight-line basis over the expected future lifetimeof the assets, which is:Development projects: 2-10 yearsPatents: 5-20 yearsSoftware: 2-4 yearsTrademarks: 10-20 yearsCustomer relationships: 10-15 yearsGoodwill arisen from acquisition of enterprises and activities is stated at cost. The carrying amount of goodwill is allocated to the Group’s cash-generating units at the acquisition date. Identification of independent cash-generating units is based on business structure and level of internal control of cash flow. Goodwill is tested annually for impairment andthe carrying amount of other assets is reviewed onindications of impairment. When testing for impairment,the value is written down to the estimated net salesprice or the value in use, if greater. Software in progress is also tested for impairment annually. 3.1 Intangible assetsAccounting policiesThe costs of resear<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ch activities are carried as expenditure in the year in which they are incurr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed. The costs of development projects which ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e clearly defined and identifiable, and of which the potential technical and commercial exploitation is demonstrated, are capitalised to the extent that they are expected<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> to generate future r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>evenue. Other development costs are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ecognised on an ongoing basis in the income statement under operating costs.Intangible assets, apart from goodwill, ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e stated at cost less accumulated amortisation and write-downs.Amortisation of the following intangible assets is madeon a straight-line basis over the expected future lifetimeof the assets, which is:Development projects: <span xmlns="http://www.w3.org/1999/xhtml" class="_ _173"> </span>2-10 yearsPatents: <span xmlns="http://www.w3.org/1999/xhtml" class="_ _182"> </span>5-20 yearsSoftware: <span xmlns="http://www.w3.org/1999/xhtml" class="_ _191"> </span>2-4 yearsT<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>rademarks: <span xmlns="http://www.w3.org/1999/xhtml" class="_ _192"> </span>10-20 yearsCustomer relationships: <span xmlns="http://www.w3.org/1999/xhtml" class="_ _193"> </span>10-15 yearsGoodwill arisen from acquisition of enterprises and activities is stated at cost. The carrying amount of goodwill is allocated to the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s cash-generating units at the acquisition date. Identification of independent cash-generating units is based on business structure and level of internal control of cash flow<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. Goodwill is tested annually for impairment andthe carrying amount of other assets is reviewed onindications of impairment. When testing for impair<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>ment,the value is written down to the estimated net salesprice or the value in use, if greater<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>. Software in progr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ess is also tested for impairment annually.Intangible assets2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span>20<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>21Customer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6f"/> Other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"/> Software <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6f"/> Customer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6f"/> Other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"/> SoftwareMEUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _195"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff1 fc2 ls3f ws2e">Goodwill<span class="_ _8b"> </span>Software</span>relationshipsintangible assetsin progr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ess T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>otal Goodwill Softwarerelationshipsintangible assetsin progr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ess<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span>T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>otalCost 1/1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _179"> </span>133<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8d"> </span>93<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8d"> </span>89<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8f"> </span>34<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8d"> </span>17<span xmlns="http://www.w3.org/1999/xhtml" class="_ _99"> </span>366<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2d"> </span>127<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8d"> </span>92<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8f"> </span>82<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8d"> </span>42<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8f"> </span>12<span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span>355Exchange rate adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _197"> </span>5<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _157"> </span>7<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e"> </span>6<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>3<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _78"> </span>11Additions for the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _b1"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>3<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>4<span xmlns="http://www.w3.org/1999/xhtml" class="_ _157"> </span>7<span xmlns="http://www.w3.org/1999/xhtml" class="_ _175"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>5<span xmlns="http://www.w3.org/1999/xhtml" class="_ _157"> </span>7T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>ransfer of assets in progress<span xmlns="http://www.w3.org/1999/xhtml" class="_ _19a"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8f"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">18<span class="_ _91"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-18<span class="_ _77"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _175"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>3<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>4<span xmlns="http://www.w3.org/1999/xhtml" class="_ _87"> </span>-6<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2d"> </span>-1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d5"> </span>-Disposals for the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8c"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-17<span class="_ _91"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _87"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-3<span class="_ _91"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _89"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-20<span class="_ _175"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _bc"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-2<span class="_ _91"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _87"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-5<span class="_ _91"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _19b"> </span>-7Cost 31/12<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e0"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">138<span class="_ _93"> </span>97<span class="_ _93"> </span>91<span class="_ _93"> </span>31<span class="_ _199"> </span></span>3<span xmlns="http://www.w3.org/1999/xhtml" class="_ _124"> </span>360<span xmlns="http://www.w3.org/1999/xhtml" class="_ _87"> </span>133<span xmlns="http://www.w3.org/1999/xhtml" class="_ _93"> </span>93<span xmlns="http://www.w3.org/1999/xhtml" class="_ _93"> </span>89<span xmlns="http://www.w3.org/1999/xhtml" class="_ _93"> </span>34<span xmlns="http://www.w3.org/1999/xhtml" class="_ _93"> </span>17<span xmlns="http://www.w3.org/1999/xhtml" class="_ _124"> </span>366Amortisation and write-downs 1/1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _170"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">31<span class="_ _8d"> </span>84<span class="_ _8f"> </span>55<span class="_ _8d"> </span>20<span class="_ _91"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">190<span class="_ _c4"> </span>31<span class="_ _8d"> </span>79<span class="_ _8f"> </span>43<span class="_ _8d"> </span>21<span class="_ _198"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _99"> </span>174Exchange rate adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _185"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _157"> </span>1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _175"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _157"> </span>4Amortisation for the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _183"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>7<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>6<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _78"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">15<span class="_ _175"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>6<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>6<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span>14T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>ransfers<span xmlns="http://www.w3.org/1999/xhtml" class="_ _13d"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7f"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _175"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>4<span xmlns="http://www.w3.org/1999/xhtml" class="_ _bc"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-4<span class="_ _198"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d5"> </span>-Disposals for the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _bc"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-8<span class="_ _91"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _87"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-3<span class="_ _91"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _89"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-11<span class="_ _175"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _bc"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-2<span class="_ _198"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _19b"> </span>-2Amortisation and write-downs 31/12<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8d"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">31<span class="_ _93"> </span>83<span class="_ _93"> </span>62<span class="_ _93"> </span>19<span class="_ _c4"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9a"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">195<span class="_ _91"> </span>31<span class="_ _93"> </span>84<span class="_ _93"> </span>55<span class="_ _93"> </span>20<span class="_ _91"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _124"> </span>190Carrying amount 31/12<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e5"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">107<span class="_ _93"> </span>14<span class="_ _93"> </span>29<span class="_ _93"> </span>12<span class="_ _199"> </span></span>3<span xmlns="http://www.w3.org/1999/xhtml" class="_ _124"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">165<span class="_ _87"> </span>102<span class="_ _199"> </span></span>9<span xmlns="http://www.w3.org/1999/xhtml" class="_ _93"> </span>34<span xmlns="http://www.w3.org/1999/xhtml" class="_ _93"> </span>14<span xmlns="http://www.w3.org/1999/xhtml" class="_ _93"> </span>17<span xmlns="http://www.w3.org/1999/xhtml" class="_ _124"> </span>176During the year R&amp;D costs amounting to 55 MEUR (2021: 45 MEUR) have been expensed.CommentsGoodwill is allocated to cash generating units (CGUs) in Insulation segment at an amount of 45 MEUR (2021: 42 MEUR) and to CGUs in Systems segment at an amount of 62 MEUR (2021: 60 MEUR).Goodwill has been impairment tested for the identified CGUs, which for both years have not resulted in any value adjustments. The impairment test of goodwill is based on current and future r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>esults for the CGUs to where the results ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e allocated. Most of the goodwill in the Group is related<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> to the acquisition of Flumroc in 2017, Chicago Metallic in 2013 and CSR in 2010 and they are performing according to plan.Please refer to note 3.5 for further details.The carrying amount of other intangible assets includes brands amounting to 8 MEUR (2021: 10 MEUR) and patents amounting to 4 MEUR (2021: 4 MEUR). 3.1 Intangible assetsAccounting policiesThe costs of resear<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ch activities are carried as expenditure in the year in which they are incurr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed. The costs of development projects which ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e clearly defined and identifiable, and of which the potential technical and commercial exploitation is demonstrated, are capitalised to the extent that they are expected<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> to generate future r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>evenue. Other development costs are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ecognised on an ongoing basis in the income statement under operating costs.Intangible assets, apart from goodwill, ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e stated at cost less accumulated amortisation and write-downs.Amortisation of the following intangible assets is madeon a straight-line basis over the expected future lifetimeof the assets, which is:Development projects: <span xmlns="http://www.w3.org/1999/xhtml" class="_ _173"> </span>2-10 yearsPatents: <span xmlns="http://www.w3.org/1999/xhtml" class="_ _182"> </span>5-20 yearsSoftware: <span xmlns="http://www.w3.org/1999/xhtml" class="_ _191"> </span>2-4 yearsT<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>rademarks: <span xmlns="http://www.w3.org/1999/xhtml" class="_ _192"> </span>10-20 yearsCustomer relationships: <span xmlns="http://www.w3.org/1999/xhtml" class="_ _193"> </span>10-15 yearsGoodwill arisen from acquisition of enterprises and activities is stated at cost. The carrying amount of goodwill is allocated to the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s cash-generating units at the acquisition date. Identification of independent cash-generating units is based on business structure and level of internal control of cash flow<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. Goodwill is tested annually for impairment andthe carrying amount of other assets is reviewed onindications of impairment. When testing for impair<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>ment,the value is written down to the estimated net salesprice or the value in use, if greater<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>. Software in progr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ess is also tested for impairment annually.Intangible assets2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span>20<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>21Customer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6f"/> Other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"/> Software <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6f"/> Customer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6f"/> Other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"/> SoftwareMEUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _195"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff1 fc2 ls3f ws2e">Goodwill<span class="_ _8b"> </span>Software</span>relationshipsintangible assetsin progr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ess T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>otal Goodwill Softwarerelationshipsintangible assetsin progr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ess<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span>T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>otalCost 1/1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _179"> </span>133<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8d"> </span>93<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8d"> </span>89<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8f"> </span>34<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8d"> </span>17<span xmlns="http://www.w3.org/1999/xhtml" class="_ _99"> </span>366<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2d"> </span>127<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8d"> </span>92<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8f"> </span>82<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8d"> </span>42<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8f"> </span>12<span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span>355Exchange rate adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _197"> </span>5<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _157"> </span>7<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e"> </span>6<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>3<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _78"> </span>11Additions for the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _b1"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>3<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>4<span xmlns="http://www.w3.org/1999/xhtml" class="_ _157"> </span>7<span xmlns="http://www.w3.org/1999/xhtml" class="_ _175"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>5<span xmlns="http://www.w3.org/1999/xhtml" class="_ _157"> </span>7T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>ransfer of assets in progress<span xmlns="http://www.w3.org/1999/xhtml" class="_ _19a"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8f"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">18<span class="_ _91"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-18<span class="_ _77"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _175"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>3<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>4<span xmlns="http://www.w3.org/1999/xhtml" class="_ _87"> </span>-6<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2d"> </span>-1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d5"> </span>-Disposals for the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8c"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-17<span class="_ _91"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _87"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-3<span class="_ _91"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _89"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-20<span class="_ _175"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _bc"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-2<span class="_ _91"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _87"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-5<span class="_ _91"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _19b"> </span>-7Cost 31/12<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e0"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">138<span class="_ _93"> </span>97<span class="_ _93"> </span>91<span class="_ _93"> </span>31<span class="_ _199"> </span></span>3<span xmlns="http://www.w3.org/1999/xhtml" class="_ _124"> </span>360<span xmlns="http://www.w3.org/1999/xhtml" class="_ _87"> </span>133<span xmlns="http://www.w3.org/1999/xhtml" class="_ _93"> </span>93<span xmlns="http://www.w3.org/1999/xhtml" class="_ _93"> </span>89<span xmlns="http://www.w3.org/1999/xhtml" class="_ _93"> </span>34<span xmlns="http://www.w3.org/1999/xhtml" class="_ _93"> </span>17<span xmlns="http://www.w3.org/1999/xhtml" class="_ _124"> </span>366Amortisation and write-downs 1/1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _170"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">31<span class="_ _8d"> </span>84<span class="_ _8f"> </span>55<span class="_ _8d"> </span>20<span class="_ _91"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">190<span class="_ _c4"> </span>31<span class="_ _8d"> </span>79<span class="_ _8f"> </span>43<span class="_ _8d"> </span>21<span class="_ _198"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _99"> </span>174Exchange rate adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _185"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _157"> </span>1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _175"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _157"> </span>4Amortisation for the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _183"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>7<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>6<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _78"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">15<span class="_ _175"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>6<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>6<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span>14T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>ransfers<span xmlns="http://www.w3.org/1999/xhtml" class="_ _13d"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7f"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _175"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>4<span xmlns="http://www.w3.org/1999/xhtml" class="_ _bc"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-4<span class="_ _198"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d5"> </span>-Disposals for the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _bc"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-8<span class="_ _91"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _87"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-3<span class="_ _91"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _89"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-11<span class="_ _175"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _bc"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-2<span class="_ _198"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _19b"> </span>-2Amortisation and write-downs 31/12<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8d"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">31<span class="_ _93"> </span>83<span class="_ _93"> </span>62<span class="_ _93"> </span>19<span class="_ _c4"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9a"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">195<span class="_ _91"> </span>31<span class="_ _93"> </span>84<span class="_ _93"> </span>55<span class="_ _93"> </span>20<span class="_ _91"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _124"> </span>190Carrying amount 31/12<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e5"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">107<span class="_ _93"> </span>14<span class="_ _93"> </span>29<span class="_ _93"> </span>12<span class="_ _199"> </span></span>3<span xmlns="http://www.w3.org/1999/xhtml" class="_ _124"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">165<span class="_ _87"> </span>102<span class="_ _199"> </span></span>9<span xmlns="http://www.w3.org/1999/xhtml" class="_ _93"> </span>34<span xmlns="http://www.w3.org/1999/xhtml" class="_ _93"> </span>14<span xmlns="http://www.w3.org/1999/xhtml" class="_ _93"> </span>17<span xmlns="http://www.w3.org/1999/xhtml" class="_ _124"> </span>176During the year R&amp;D costs amounting to 55 MEUR (2021: 45 MEUR) have been expensed.CommentsGoodwill is allocated to cash generating units (CGUs) in Insulation segment at an amount of 45 MEUR (2021: 42 MEUR) and to CGUs in Systems segment at an amount of 62 MEUR (2021: 60 MEUR).Goodwill has been impairment tested for the identified CGUs, which for both years have not resulted in any value adjustments. The impairment test of goodwill is based on current and future r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>esults for the CGUs to where the results ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e allocated. Most of the goodwill in the Group is related<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> to the acquisition of Flumroc in 2017, Chicago Metallic in 2013 and CSR in 2010 and they are performing according to plan.Please refer to note 3.5 for further details.The carrying amount of other intangible assets includes brands amounting to 8 MEUR (2021: 10 MEUR) and patents amounting to 4 MEUR (2021: 4 MEUR). 3.1 Intangible assetsAccounting policiesThe costs of resear<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ch activities are carried as expenditure in the year in which they are incurr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed. The costs of development projects which ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e clearly defined and identifiable, and of which the potential technical and commercial exploitation is demonstrated, are capitalised to the extent that they are expected<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> to generate future r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>evenue. Other development costs are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ecognised on an ongoing basis in the income statement under operating costs.Intangible assets, apart from goodwill, ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e stated at cost less accumulated amortisation and write-downs.Amortisation of the following intangible assets is madeon a straight-line basis over the expected future lifetimeof the assets, which is:Development projects: <span xmlns="http://www.w3.org/1999/xhtml" class="_ _173"> </span>2-10 yearsPatents: <span xmlns="http://www.w3.org/1999/xhtml" class="_ _182"> </span>5-20 yearsSoftware: <span xmlns="http://www.w3.org/1999/xhtml" class="_ _191"> </span>2-4 yearsT<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>rademarks: <span xmlns="http://www.w3.org/1999/xhtml" class="_ _192"> </span>10-20 yearsCustomer relationships: <span xmlns="http://www.w3.org/1999/xhtml" class="_ _193"> </span>10-15 yearsGoodwill arisen from acquisition of enterprises and activities is stated at cost. The carrying amount of goodwill is allocated to the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s cash-generating units at the acquisition date. Identification of independent cash-generating units is based on business structure and level of internal control of cash flow<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. Goodwill is tested annually for impairment andthe carrying amount of other assets is reviewed onindications of impairment. When testing for impair<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>ment,the value is written down to the estimated net salesprice or the value in use, if greater<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>. Software in progr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ess is also tested for impairment annually.Intangible assets2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span>20<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>21Customer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6f"/> Other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"/> Software <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6f"/> Customer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6f"/> Other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"/> SoftwareMEUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _195"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff1 fc2 ls3f ws2e">Goodwill<span class="_ _8b"> </span>Software</span>relationshipsintangible assetsin progr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ess T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>otal Goodwill Softwarerelationshipsintangible assetsin progr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ess<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span>T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>otalCost 1/1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _179"> </span>133<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8d"> </span>93<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8d"> </span>89<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8f"> </span>34<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8d"> </span>17<span xmlns="http://www.w3.org/1999/xhtml" class="_ _99"> </span>366<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2d"> </span>127<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8d"> </span>92<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8f"> </span>82<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8d"> </span>42<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8f"> </span>12<span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span>355Exchange rate adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _197"> </span>5<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _157"> </span>7<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e"> </span>6<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>3<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _78"> </span>11Additions for the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _b1"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>3<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>4<span xmlns="http://www.w3.org/1999/xhtml" class="_ _157"> </span>7<span xmlns="http://www.w3.org/1999/xhtml" class="_ _175"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>5<span xmlns="http://www.w3.org/1999/xhtml" class="_ _157"> </span>7T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>ransfer of assets in progress<span xmlns="http://www.w3.org/1999/xhtml" class="_ _19a"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8f"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">18<span class="_ _91"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-18<span class="_ _77"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _175"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>3<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>4<span xmlns="http://www.w3.org/1999/xhtml" class="_ _87"> </span>-6<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2d"> </span>-1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d5"> </span>-Disposals for the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8c"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-17<span class="_ _91"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _87"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-3<span class="_ _91"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _89"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-20<span class="_ _175"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _bc"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-2<span class="_ _91"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _87"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-5<span class="_ _91"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _19b"> </span>-7Cost 31/12<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e0"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">138<span class="_ _93"> </span>97<span class="_ _93"> </span>91<span class="_ _93"> </span>31<span class="_ _199"> </span></span>3<span xmlns="http://www.w3.org/1999/xhtml" class="_ _124"> </span>360<span xmlns="http://www.w3.org/1999/xhtml" class="_ _87"> </span>133<span xmlns="http://www.w3.org/1999/xhtml" class="_ _93"> </span>93<span xmlns="http://www.w3.org/1999/xhtml" class="_ _93"> </span>89<span xmlns="http://www.w3.org/1999/xhtml" class="_ _93"> </span>34<span xmlns="http://www.w3.org/1999/xhtml" class="_ _93"> </span>17<span xmlns="http://www.w3.org/1999/xhtml" class="_ _124"> </span>366Amortisation and write-downs 1/1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _170"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">31<span class="_ _8d"> </span>84<span class="_ _8f"> </span>55<span class="_ _8d"> </span>20<span class="_ _91"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">190<span class="_ _c4"> </span>31<span class="_ _8d"> </span>79<span class="_ _8f"> </span>43<span class="_ _8d"> </span>21<span class="_ _198"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _99"> </span>174Exchange rate adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _185"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _157"> </span>1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _175"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _157"> </span>4Amortisation for the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _183"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>7<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>6<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _78"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">15<span class="_ _175"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>6<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>6<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span>14T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>ransfers<span xmlns="http://www.w3.org/1999/xhtml" class="_ _13d"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7f"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _175"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>4<span xmlns="http://www.w3.org/1999/xhtml" class="_ _bc"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-4<span class="_ _198"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d5"> </span>-Disposals for the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _bc"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-8<span class="_ _91"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _87"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-3<span class="_ _91"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _89"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-11<span class="_ _175"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _bc"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-2<span class="_ _198"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _19b"> </span>-2Amortisation and write-downs 31/12<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8d"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">31<span class="_ _93"> </span>83<span class="_ _93"> </span>62<span class="_ _93"> </span>19<span class="_ _c4"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9a"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">195<span class="_ _91"> </span>31<span class="_ _93"> </span>84<span class="_ _93"> </span>55<span class="_ _93"> </span>20<span class="_ _91"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _124"> </span>190Carrying amount 31/12<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e5"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">107<span class="_ _93"> </span>14<span class="_ _93"> </span>29<span class="_ _93"> </span>12<span class="_ _199"> </span></span>3<span xmlns="http://www.w3.org/1999/xhtml" class="_ _124"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">165<span class="_ _87"> </span>102<span class="_ _199"> </span></span>9<span xmlns="http://www.w3.org/1999/xhtml" class="_ _93"> </span>34<span xmlns="http://www.w3.org/1999/xhtml" class="_ _93"> </span>14<span xmlns="http://www.w3.org/1999/xhtml" class="_ _93"> </span>17<span xmlns="http://www.w3.org/1999/xhtml" class="_ _124"> </span>176During the year R&amp;D costs amounting to 55 MEUR (2021: 45 MEUR) have been expensed.CommentsGoodwill is allocated to cash generating units (CGUs) in Insulation segment at an amount of 45 MEUR (2021: 42 MEUR) and to CGUs in Systems segment at an amount of 62 MEUR (2021: 60 MEUR).Goodwill has been impairment tested for the identified CGUs, which for both years have not resulted in any value adjustments. The impairment test of goodwill is based on current and future r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>esults for the CGUs to where the results ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e allocated. Most of the goodwill in the Group is related<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> to the acquisition of Flumroc in 2017, Chicago Metallic in 2013 and CSR in 2010 and they are performing according to plan.Please refer to note 3.5 for further details.The carrying amount of other intangible assets includes brands amounting to 8 MEUR (2021: 10 MEUR) and patents amounting to 4 MEUR (2021: 4 MEUR). During the year R&amp;D costs amounting to 55 MEUR (2021: 45 MEUR) have been expensed. The impairment test of goodwill is based on current and future results for the CGUs to where the results are allocated. Most of the goodwill in the Group is related to the acquisition of Flumroc in 2017, Chicago Metallic in 2013 and CSR in 2010 and they are performing according to plan.Please refer to note 3.5 for further details.When there is an indication of a reduction in theprofitability of an asset, an impairment test is performedfor the assets in question and write-downs are made, ifnecessary.3.5 Impairment testsAccounting policiesWhen there is an indication of a reduction in the profitability of an asset, an impairment test is performed for the assets in question and write-downs are made, if necessary. For goodwill, annual impairment tests are made. Therecoverable amounts of the assets and cash-generating units (CGUs) have been determined based on value-in-use calculations. When testing for impairment, the valueis written down to the estimated recoverable amount, iflower than the carrying amount.The carrying amount of other non-current assets is tested for impairment once a year. The carrying amount of property, plant and equipment is tested forimpairment when there is indication of change in thestructural profitability.Critical estimates and judgementsWhen preparing impairment tests, estimates are used to calculate the future value. Significant estimates aremade when assessing long-term growth rates andprofitability. In addition, an assessment is made of thereasonable discount rate.Changes in the growth rate in the budget period or discount rate may result in significantly different values. The assessments are made based on budgets, business plans and projections for five years and take into account previous experience and represent Management’s best estimate of future developments. Key parameters are growth in sales, margins, discountrate and future growth expectations.CommentsManagement has performed the yearly impairment test of the carrying amount of goodwill and other non-current intangible assets. In addition, impairment test of property, plant and equipment has also been made, where indication of reduction of value was found. In the impairment test, the carrying amount of the assets is compared to the discounted value of the future cash flows. The assessment of future cash flows is typically based on five-year management reviewed budgets and business plans, where the last year is used as a normalised terminal year. Net sales, raw material prices, discount rate and future growth assumptions constitutethe most material parameters in the calculation.The average growth rate in the terminal period is set to two percent. The average growth rate in the budget period is estimated to be between 0-10 percent depending on the businesses. The high growth rates are used in countries where wehistorically have seen steep increases after a slow period.Gross margins are based on average values the last three years and adjusted over the budget period for efficiency improvements and expected raw material inflation based on past actual price movements and future market conditions. Future investment is derivedfrom the historic investment level to secure a smoothoperation of the factories and the capacity utilisationis based on the current situation including investmentplans. The post-tax discount rate is based on thespecific circumstances of the Group and the operatingsegments and is derived from the weighted averagecost of capital (WACC).2022The impairment tests for 2022 have not shown a need for write-downs or reversals of write-downs recognised previous years. The cash generating units of CSR and KEWO have been merged as revenue from these business combinations no longer can be separated. All cash generating units are showing a solid headroom to the carrying amount. The Chinese Insulation businessis followed closely to ensure that the expected futureoutcome of the investment in the new factory in Fogang is realised. HECK Wall Systems continues to be closely monitored due to difficult market situations. Despite a decrease in the net present value of the business, the headroom is still considered to be large.2021The impairment tests for 2021 have not shown a need for write-downs or reversals of write-downs recognised previous years. During 2021 HECK Wall Systems has been monitored closely. HECK Wall Systems exceededthe expectations and market outlook outlined in theimpairment test last year, and the stone wool conversiongoal was reached in 2021. The net present value ofHECK Wall Systems amounts to 59 MEUR in 2021 whichgives a headroom of 37 MEUR to the carrying amount.The main drivers are sales growth and costs efficiencyimprovements.Sensitivity analysisAs part of the preparation of impairment tests,sensitivity analyses are prepared on the basis ofrelevant risk factors and scenarios that managementcan determine within reasonable reliability. Sensitivityanalyses are prepared by altering the estimates with arange of probable outcomes.2022The sensitivities have been assessed as follows, allother things being equal; an increase in the discountrate of one percent, a decrease in the growth rateof one percent p.a. and an increase of input costs ofone percent p.a. None of the scenarios resulted inidentification of write-downs.We consider the chosen scenarios as the most realistic,which is why none of the impairment tests have givenrise to adjustment of the value.2021The sensitivities have been assessed as follows, allother things being equal; an increase in the discountrate of one percent, a decrease in the growth rateof one percent p.a. and an increase of input costs ofone percent p.a. None of the scenarios resulted inidentification of write-downs.We consider the chosen scenarios as the most realistic,which is why none of the impairment tests have givenrise to adjustment of the value.Impairment test of goodwillMEUR 2022Carrying Growth rateamount, Discount (budgetCGUsGoodwillrateperiod) HeadroomChicago Metallic Corporation (Rockfon) 62 8.1% 3%* LargeHECK Wall Systems 6 8.0% 2%* LargeCSR including KEWO 15 8.5% 10%* LargeFlumroc 16 6.9% 5%* LargeOther 8 12-16% 0-6% LargeTotal 107* Average growth rate due to large spread in the period.Impairment test of goodwillMEUR 2021Carrying Growth rateamount, Discount (budgetCGUsGoodwillrateperiod) Headroom Chicago Metallic Corporation (Rockfon) 57 7.1% 3%* LargeHECK Wall Systems 6 6.9% 3%* LargeCSR 8 8.0% 7%* LargeFlumroc 15 6.9% 7%* LargeOther 16 7-11% 2-11% LargeTotal 102* Average growth rate due to large spread in the period. 3.2 Tangible assetsAccounting policiesTangible assets are stated at cost less accumulated depreciation and impairment losses. The cost of technical plant and machinery manufactured by the Group comprises the acquisition cost, expenditure directly related to the acquisition, engineering hours, including indirect production costs and borrowing costs.Depreciation is carried out on a straight-line basis, based on current assessment of their useful lives and scrap value. The expected lifetimes are: Buildings: 20-40 years Plant and machinery: 5-15 years Other operating equipment: 3-10 yearsOn sale or scrapping of assets, any losses or gains are included under other operating income for the year.Investment grants are deducted in the cost of the equivalent tangible assets.Critical estimatesand judgementsThe expected lifetime for tangible assets is determined based on past experience and expectations for future use of the assets. Especially the estimated lifetime of plant and machinery is linked to uncertainty dueto varying utilisation and the significant amount ofmaintenance costs. The expected future lifetime for theassets is evaluated annually.When there is an indication of a reduction in theprofitability of an asset, an impairment test is performedfor the assets in question and write-downs are made, ifnecessary.The recoverable amounts of the assets and cash-generating units are determined based on value-in-use calculations and fair value less cost to sell. Thesecalculations require the use of estimates as they arebased on budgets, business plans and projections forfive years and take into account previous experienceand represent Management’s best estimate of future developments.CommentsOf the carrying amount of buildings and land, 121 MEUR (2021: 119 MEUR) represent sites not subject to depreciation.Accumulated capitalised interests amounting to 7 MEUR(2021: 3 MEUR) are included in the cost of tangibleassets. Additional capitalised interest has been addedthis year as part of ongoing investments.For the recognised investment grants the conditionsare fulfilled or are reasonably assured to be fulfilled.Some of the received investment grants are subjectto repayment obligations provided that the attachedconditions are not fulfilled within a number of years.The Group’s investment grants are for the main part received in China, Poland, Spain, Germany, Norway andthe United States. The investment grants received in2022 amount to 4 MEUR (2021: 13 MEUR). The grantsare in most cases linked to expansion of the Groupincluding the amount of investment in tangible assetsand the creation of jobs - and is given as cash or loans.Only limited contingent liabilities exist.Contractual obligations for the purchase of tangibleassets at 31 December 2022 amount to 152 MEUR(2021: 107 MEUR).Tangible assets2022 2021Buildings Plant and Other operating Tangible assets Buildings Plant and Other operating Tangible assets MEURand sitesmachineryequipmentin progress Totaland sitesmachineryequipmentin progress TotalCost 1/1 1 358 2 460 140 273 4 231 1 105 2 099 123 534 3 861Exchange rate adjustments 8 11 - 13 32 28 45 -1 23 95Additions for the year 25 60 6 237 328 - - - 301 301Transfer of assets in progress 65 87 12 -164 - 233 330 22 -585 -Disposals for the year -13 -53 -5 - -71 -12 -18 -4 - -34Business acquisitions - - - - - 4 4 - - 8Cost 31/12 1 443 2 565 153 359 4 520 1 358 2 460 140 273 4 231Depreciation and write-downs 1/1 498 1 780 124 - 2 402 468 1 660 101 - 2 229Exchange rate adjustments - 1 - - 1 6 35 1 - 42Depreciation for the year 50 129 16 - 195 36 103 26 - 165Disposals for the year -13 -47 -5 - -65 -12 -18 -4 - -34Depreciation and write-downs 31/12 535 1 863 135 - 2 533 498 1 780 124 - 2 402Carrying amount 31/12 908 702 18 359 1 987 860 680 16 273 1 829Hereof investment grants -17 -27 - - -44 -9 -13 - -21 -43 Tangible assets are stated at cost less accumulated depreciation and impairment losses. The cost of technical plant and machinery manufactured by the Group comprises the acquisition cost, expenditure directly related to the acquisition, engineering hours, including indirect production costs and borrowing costs.Depreciation is carried out on a straight-line basis, based on current assessment of their useful lives and scrap value. The expected lifetimes are: Buildings: 20-40 years Plant and machinery: 5-15 years Other operating equipment: 3-10 yearsOn sale or scrapping of assets, any losses or gains are included under other operating income for the year.Investment grants are deducted in the cost of the equivalent tangible assets. Tangible assets are stated at cost less accumulated depreciation and impairment losses. The cost of technical plant and machinery manufactured by the Group comprises the acquisition cost, expenditure directly related to the acquisition, engineering hours, including indirect production costs and borrowing costs.Depreciation is carried out on a straight-line basis, based on current assessment of their useful lives and scrap value. The expected lifetimes are: Buildings: 20-40 years Plant and machinery: 5-15 years Other operating equipment: 3-10 yearsOn sale or scrapping of assets, any losses or gains are included under other operating income for the year.Investment grants are deducted in the cost of the equivalent tangible assets. Depreciation is carried out on a straight-line basis, based on current assessment of their useful lives and scrap value. The expected lifetimes are: Buildings: 20-40 years Plant and machinery: 5-15 years Other operating equipment: 3-10 yearsRoU assets are depreciated on a straight-line basis over theshorter of the expected lease term and the asset’s usefullife. RoU assets are tested for impairment whenever there isan indication that the assets may be impaired. Investment grants are deducted in the cost of the equivalent tangible assets. Critical estimatesand judgementsThe expected lifetime for tangible assets is determined based on past experience and expectations for future use of the assets. Especially the estimated lifetime of plant and machinery is linked to uncertainty dueto varying utilisation and the significant amount ofmaintenance costs. The expected future lifetime for theassets is evaluated annually.When there is an indication of a reduction in theprofitability of an asset, an impairment test is performedfor the assets in question and write-downs are made, ifnecessary.The recoverable amounts of the assets and cash-generating units are determined based on value-in-use calculations and fair value less cost to sell. Thesecalculations require the use of estimates as they arebased on budgets, business plans and projections forfive years and take into account previous experienceand represent Management’s best estimate of future developments.Critical estimates and judgementsWhen preparing impairment tests, estimates are used to calculate the future value. Significant estimates aremade when assessing long-term growth rates andprofitability. In addition, an assessment is made of thereasonable discount rate.Changes in the growth rate in the budget period or discount rate may result in significantly different values. The assessments are made based on budgets, business plans and projections for five years and take into account previous experience and represent Management’s best estimate of future developments. Key parameters are growth in sales, margins, discountrate and future growth expectations.Critical estimates and judgementsWhile conducting business globally, transfer pricing disputes, etc. with tax authorities may occur, and Management judgement is applied to assess the possible outcome of such disputes. The most probable outcome is used as the measurement method, and Management believes that the provision made for uncertain tax positions not yet settled with local taxauthorities is adequate. However, the actual obligation may deviate and is dependent on the result of litigations and settlements with the relevant tax authorities.The Group is subject to income taxes in numerous jurisdictions. Significant estimates is required in determining provision for uncertain tax positions or therecognition of a deferred tax asset.A tax asset is recognised if it is assessed that the asset can be utilised in a foreseeable future based on strong indications that sufficient future profits are available to absorb the temporary differences including the Group'sfuture tax planning.The valuation of tax assets related to losses carriedforward is done on a yearly basis and is based onexpected positive taxable income within the next 3-5years.1.1 Critical accounting estimatesand judgementsThe preparation of the consolidated financial statementsrequires Management to make accounting estimatesand assumptions that have a significant effect on theapplication of policies and reported amounts of assets, liabilities, income, expenses, and related disclosures.The most significant accounting estimates andjudgements are presented below.The application of the Group’s accounting policies may require Management to make judgments that can havea significant effect on the amounts recognised in theconsolidated financial statements. When determiningthe carrying amount of some assets and liabilities itrequires Management to make judgments, estimatesand assumptions concerning future events.The estimates and underlying assumptions are basedon professional experience, historical experience andvarious other factors that Management considersappropriate under the given circumstances. Actualresults may differ from these estimates. The estimates and underlying assumptions are reviewedon an ongoing basis. Changes in estimates may benecessary if there are changes in the circumstanceson which the estimate was based, or if more detailed information becomes available. Such changes are recognised in the period in which the estimate in question is revised.Below are the accounting estimates and judgements,which Management considers significant to thepreparation of the consolidated financial statements:Accounting estimates– Impairment testing (note 3.5)– Deferred tax assets and uncertain tax positions(note 6.1)Judgements– Expected lifetime for tangible assets (note 3.2)The accounting policies are described in each of thespecific notes to the financial statements, which alsoinclude additional description of the most significantaccounting estimates and judgements. The Group’s investment grants are for the main part received in China, Poland, Spain, Germany, Norway andthe United States. The investment grants received in2022 amount to 4 MEUR (2021: 13 MEUR). The grantsare in most cases linked to expansion of the Groupincluding the amount of investment in tangible assetsand the creation of jobs - and is given as cash or loans.Only limited contingent liabilities exist. 3.3 LeasesAccounting policiesWhether a contract contains a lease is assessed atcontract inception. For identified leases, a right-of-use(RoU) asset and corresponding liability are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognisedon the lease commencement date.Assets and liabilities arising from a lease are initiallymeasured on a pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>esent value basis. Lease liabilitiesinclude the net present value of the payments, whichare fixed or variable payments dependent on an indexor a rate. When adjustments to lease payments basedon an index or a rate take effect, the lease liability isreassessed and adjusted against the lease asset. Servicecomponents are excluded fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>om the lease liability exceptfrom those r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>elating to cars.T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>o measure the lease liability at an amount equal to the net present value of the lease payments, a discount rateis used. For this purpose, the Group generally uses itsincremental borr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>owing rate (IBR). The IBR is calculatedper main country/region per asset type consideringdiffer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ent length of the lease terms.The lease payments have been split into an interest costand a repayment of the lease liability.RoU assets are measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ed at cost corresponding tothe lease liability recognised, adjusted for any leaseprepayments or dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ectly related costs, includingrestoration costs.RoU assets are depr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>eciated on a straight-line basis over theshorter of the expected lease term and the asset’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s useful<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>life. RoU assets are tested for impairment whenever there isan indication that the assets may be impaired.Accounting policies (continued)Extension and termination options are included in a number of property and equipment leases acr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>oss the Group. The majority of extension and termination options held are exer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>cisable only by the Group and not by the respective lessor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>. If the lease contract contains an extension or purchase option that the Group considers<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> reasonably certain to be exer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>cised, these are included in the measurement of the liability.Short-term leases and leases of low value are recognised ona straight-line basis as cost in the income statement.The Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s portfolio of leases covers leases of office<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> buildings, warehouses and other equipment such as carsand forklifts. Leases for offices and other buildings havelease terms between 2-22 years, warehouses between3-10 years while car and forklift leases generally havelease terms between 3-5 years. The Group also hasa few long-term site leases with lease ter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>ms up to 99years.Leases in the balance sheetMEUR2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fa"> </span>2021Right-of-use assets:Offices, other buildings and sites<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ae"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">14<span class="_ _13"> </span>12</span>W<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>arehouses<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1af"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">48<span class="_ _13"> </span>30</span>Forklifts, cars and other assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b0"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">26<span class="_ _13"> </span>19</span>Carrying amount of right-of-use assets 31/12<span xmlns="http://www.w3.org/1999/xhtml" class="_ _158"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">88<span class="_ _116"> </span>61</span>Contractual maturity of lease liabilities:&lt; 1 year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _12e"> </span>30<span xmlns="http://www.w3.org/1999/xhtml" class="_ _13"> </span>211-5 years<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18c"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">60<span class="_ _13"> </span>35</span>&gt; 5 years<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18c"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">15<span class="_ _10d"> </span>17</span>T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>otal undiscounted lease liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b1"> </span>105<span xmlns="http://www.w3.org/1999/xhtml" class="_ _116"> </span>73Current/non-curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ent classification (discounted):Non-current<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1af"> </span>61<span xmlns="http://www.w3.org/1999/xhtml" class="_ _13"> </span>44Current<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b2"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">24<span class="_ _13"> </span>19</span>In 2022, additions to right-of-use assets were 37 MEUR (2021: 37 MEUR).Leases in the income statementMEUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17b"> </span>2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fa"> </span>2021Depreciation of right-of-use assets:Offices, other buildings and sites<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b3"> </span>5<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>3W<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>arehouses<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1af"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">10<span class="_ _fd"> </span></span>9Forklifts, cars and other assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b0"> </span>11<span xmlns="http://www.w3.org/1999/xhtml" class="_ _13"> </span>10T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>otal depreciation of right-of-use assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _15e"> </span>26<span xmlns="http://www.w3.org/1999/xhtml" class="_ _88"> </span>22Interest expense (included in financial expenses)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b4"> </span>3<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>2Expense relating to short-term leases (included in operating costs)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b5"> </span>11<span xmlns="http://www.w3.org/1999/xhtml" class="_ _13"> </span>10Expense relating to low-value leases (included in operating costs)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8"> </span>1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _157"> </span>-V<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ariable lease payments not included in the lease liabilities (included in operating costs)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b6"> </span>2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>1The total cash outflow for leases in 2022 was 43 MEUR (2021: 35 MEUR), of which 26 MEUR (2021: 21 MEUR) is classified ascash flow from financing activities and 17 MEUR (2021: 14 MEUR) is classified as cash flow fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>om operating activities. Whether a contract contains a lease is assessed atcontract inception. For identified leases, a right-of-use(RoU) asset and corresponding liability are recognisedon the lease commencement date.Assets and liabilities arising from a lease are initiallymeasured on a present value basis. Lease liabilitiesinclude the net present value of the payments, whichare fixed or variable payments dependent on an indexor a rate. When adjustments to lease payments basedon an index or a rate take effect, the lease liability isreassessed and adjusted against the lease asset. Servicecomponents are excluded from the lease liability exceptfrom those relating to cars.To measure the lease liability at an amount equal to the net present value of the lease payments, a discount rateis used. For this purpose, the Group generally uses itsincremental borrowing rate (IBR). The IBR is calculatedper main country/region per asset type consideringdifferent length of the lease terms.The lease payments have been split into an interest costand a repayment of the lease liability.RoU assets are measured at cost corresponding tothe lease liability recognised, adjusted for any leaseprepayments or directly related costs, includingrestoration costs.RoU assets are depreciated on a straight-line basis over theshorter of the expected lease term and the asset’s usefullife. RoU assets are tested for impairment whenever there isan indication that the assets may be impaired.Extension and termination options are included in a number of property and equipment leases across the Group. The majority of extension and termination options held are exercisable only by the Group and not by the respective lessor. If the lease contract contains an extension or purchase option that the Group considers reasonably certain to be exercised, these are included in the measurement of the liability.Short-term leases and leases of low value are recognised ona straight-line basis as cost in the income statement.The Group’s portfolio of leases covers leases of office buildings, warehouses and other equipment such as carsand forklifts. Leases for offices and other buildings havelease terms between 2-22 years, warehouses between3-10 years while car and forklift leases generally havelease terms between 3-5 years. The Group also hasa few long-term site leases with lease terms up to 99years. 3.4 Amortisation, depreciation and write-downsAmortisation, depreciation and write-downsMEUR 2022 2021Amortisation of intangible assets 15 14Depreciation of tangible assets 195 165Depreciation of right-of-use assets 26 22Amortisation, depreciation and write-downs 236 201 3.4 Amortisation, depreciation and write-downsAmortisation, depreciation and write-downsMEUR 2022 2021Amortisation of intangible assets 15 14Depreciation of tangible assets 195 165Depreciation of right-of-use assets 26 22Amortisation, depreciation and write-downs 236 2013.5 Impairment testsAccounting policiesWhen there is an indication of a reduction in the profitability of an asset, an impairment test is performed for the assets in question and write-downs are made, if necessary. For goodwill, annual impairment tests are made. Therecoverable amounts of the assets and cash-generating units (CGUs) have been determined based on value-in-use calculations. When testing for impairment, the valueis written down to the estimated recoverable amount, iflower than the carrying amount.The carrying amount of other non-current assets is tested for impairment once a year. The carrying amount of property, plant and equipment is tested forimpairment when there is indication of change in thestructural profitability.Critical estimates and judgementsWhen preparing impairment tests, estimates are used to calculate the future value. Significant estimates aremade when assessing long-term growth rates andprofitability. In addition, an assessment is made of thereasonable discount rate.Changes in the growth rate in the budget period or discount rate may result in significantly different values. The assessments are made based on budgets, business plans and projections for five years and take into account previous experience and represent Management’s best estimate of future developments. Key parameters are growth in sales, margins, discountrate and future growth expectations.CommentsManagement has performed the yearly impairment test of the carrying amount of goodwill and other non-current intangible assets. In addition, impairment test of property, plant and equipment has also been made, where indication of reduction of value was found. In the impairment test, the carrying amount of the assets is compared to the discounted value of the future cash flows. The assessment of future cash flows is typically based on five-year management reviewed budgets and business plans, where the last year is used as a normalised terminal year. Net sales, raw material prices, discount rate and future growth assumptions constitutethe most material parameters in the calculation.The average growth rate in the terminal period is set to two percent. The average growth rate in the budget period is estimated to be between 0-10 percent depending on the businesses. The high growth rates are used in countries where wehistorically have seen steep increases after a slow period.Gross margins are based on average values the last three years and adjusted over the budget period for efficiency improvements and expected raw material inflation based on past actual price movements and future market conditions. Future investment is derivedfrom the historic investment level to secure a smoothoperation of the factories and the capacity utilisationis based on the current situation including investmentplans. The post-tax discount rate is based on thespecific circumstances of the Group and the operatingsegments and is derived from the weighted averagecost of capital (WACC).2022The impairment tests for 2022 have not shown a need for write-downs or reversals of write-downs recognised previous years. The cash generating units of CSR and KEWO have been merged as revenue from these business combinations no longer can be separated. All cash generating units are showing a solid headroom to the carrying amount. The Chinese Insulation businessis followed closely to ensure that the expected futureoutcome of the investment in the new factory in Fogang is realised. HECK Wall Systems continues to be closely monitored due to difficult market situations. Despite a decrease in the net present value of the business, the headroom is still considered to be large.2021The impairment tests for 2021 have not shown a need for write-downs or reversals of write-downs recognised previous years. During 2021 HECK Wall Systems has been monitored closely. HECK Wall Systems exceededthe expectations and market outlook outlined in theimpairment test last year, and the stone wool conversiongoal was reached in 2021. The net present value ofHECK Wall Systems amounts to 59 MEUR in 2021 whichgives a headroom of 37 MEUR to the carrying amount.The main drivers are sales growth and costs efficiencyimprovements.Sensitivity analysisAs part of the preparation of impairment tests,sensitivity analyses are prepared on the basis ofrelevant risk factors and scenarios that managementcan determine within reasonable reliability. Sensitivityanalyses are prepared by altering the estimates with arange of probable outcomes.2022The sensitivities have been assessed as follows, allother things being equal; an increase in the discountrate of one percent, a decrease in the growth rateof one percent p.a. and an increase of input costs ofone percent p.a. None of the scenarios resulted inidentification of write-downs.We consider the chosen scenarios as the most realistic,which is why none of the impairment tests have givenrise to adjustment of the value.2021The sensitivities have been assessed as follows, allother things being equal; an increase in the discountrate of one percent, a decrease in the growth rateof one percent p.a. and an increase of input costs ofone percent p.a. None of the scenarios resulted inidentification of write-downs.We consider the chosen scenarios as the most realistic,which is why none of the impairment tests have givenrise to adjustment of the value.Impairment test of goodwillMEUR 2022Carrying Growth rateamount, Discount (budgetCGUsGoodwillrateperiod) HeadroomChicago Metallic Corporation (Rockfon) 62 8.1% 3%* LargeHECK Wall Systems 6 8.0% 2%* LargeCSR including KEWO 15 8.5% 10%* LargeFlumroc 16 6.9% 5%* LargeOther 8 12-16% 0-6% LargeTotal 107* Average growth rate due to large spread in the period.Impairment test of goodwillMEUR 2021Carrying Growth rateamount, Discount (budgetCGUsGoodwillrateperiod) Headroom Chicago Metallic Corporation (Rockfon) 57 7.1% 3%* LargeHECK Wall Systems 6 6.9% 3%* LargeCSR 8 8.0% 7%* LargeFlumroc 15 6.9% 7%* LargeOther 16 7-11% 2-11% LargeTotal 102* Average growth rate due to large spread in the period. When there is an indication of a reduction in the profitability of an asset, an impairment test is performed for the assets in question and write-downs are made, if necessary. For goodwill, annual impairment tests are made. Therecoverable amounts of the assets and cash-generating units (CGUs) have been determined based on value-in-use calculations. When testing for impairment, the valueis written down to the estimated recoverable amount, iflower than the carrying amount.The carrying amount of other non-current assets is tested for impairment once a year. The carrying amount of property, plant and equipment is tested forimpairment when there is indication of change in thestructural profitability. 3.6 Pension obligationsAccounting policiesPension payments concerning defined contribution plans are<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/> recognised on an ongoing basis in the income statement. Defined benefit plans are stated at the net pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>esent valueat the balance sheet date and included in the consolidatedfinancial statements. Adjustments of the plans are carriedout on a regular basis in accor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>dance with underlyingactuarial assessments. Actuarial gains or losses for defined benefit plans are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ecognised in full in the period in which they occur in other comprehensive income. The actuarial assessment is carried out every year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>.Funded benefit plans have assets placed in trustee-administered pension funds, which ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e governed bylocal regulations and practice in each country.The payments to the pension funds are based on the usual actuarial assessments and are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ecognised in the income statement after maturity. Provided that the actuarial assessments of pension obligations show noticeable excess solvency or insolvency in relation tothe pension fund’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s assets, the difference is enter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ed to the balance sheet and the future payments ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e adjustedaccordingly. With regard to these schemes, the actuarialassessment is also carried out every year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>.CommentsThe present value of defined benefit pension obligationsdepends on a number of factors that are determined onan actuarial basis using a number of assumptions. Anychanges to these assumptions will impact the carryingamount of pension obligations.The discount rate and other key assumptions are basedin part on the current market conditions.CommentsA number of the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s employees and former employees participate in pension schemes. The pension schemes areprimarily defined contribution plans. However<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>, defined<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>benefit plans are also used, mainly in Switzerland, theUnited Kingdom and Germany. The benefit plans in theUnited Kingdom and Germany are closed for new entries.Under a defined benefit plan the Group carries the riskassociated with the future development in e.g. inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>estrates, inflation, salaries, mortality and disability.Defined benefit plans typically guarantee the employees aretir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ement benefit based on the final salary at retirement.The pension benefit plans in the United Kingdom andSwitzerland have assets placed in independent pensionfunds. The remaining plans ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e unfunded, where the mainpart relates to Germany. For these plans the retirementbenefit obligations amount to approximately 21 per<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>cent (2021: 22 per<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>cent) of the total gross liability.Except for the Swiss and UK plans, the mentioned definedbenefit plans are not subject to r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>egulatory requirementsregar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ding minimum funding. The granted pensionpayments of the mentioned defined benefit plans are basedupon the salary of the participating employees duringthe period of employment. The Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s contributions are derived from the split of the pension premium between theemployee and employer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>.The actuarial assessment of the pension obligation isbased on assumptions specific to each country. The latestactuarial calculation is prepar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ed by authorised experts.The valuation of the assets is based on the compositionand the expectations to the economic development. Theassumptions used are weighted averages.Pension costsMEUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17b"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff1 fc2 ls3f ws2e">2022<span class="_ _fa"> </span>2021</span>Defined contribution plans:T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>otal pension costs recognised<span xmlns="http://www.w3.org/1999/xhtml" class="_ _142"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">30<span class="_ _10d"> </span>29</span>Defined benefit plans:Pension costs<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1be"> </span>3<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>2Interest costs<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1bf"> </span>3<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>2Interest income<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c0"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-2<span class="_ _74"> </span>-1</span>Curtailments/settlements<span xmlns="http://www.w3.org/1999/xhtml" class="_ _188"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span>-1T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>otal pension costs recognised<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b8"> </span>4<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>2Defined benefit pension plansMEUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _15f"> </span>2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fa"> </span>2021<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fa"> </span>2020<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fa"> </span>2019<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fa"> </span>2018Present value of pension liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c1"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">177<span class="_ _7c"> </span><span class="ws0"> 239<span class="_ _98"> </span></span>250<span class="_ _9a"> </span>247<span class="_ _9a"> </span>217</span>Fair value of plan assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c7"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-179<span class="_ _12b"> </span>-214<span class="_ _12b"> </span>-184<span class="_ _12b"> </span>-185<span class="_ _12b"> </span>-164</span>Assets ceiling limitation<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">34<span class="_ _10d"> </span>10<span class="_ _80"> </span></span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _110"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _110"> </span>-Pension obligation, net 31/12<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c2"> </span>32<span xmlns="http://www.w3.org/1999/xhtml" class="_ _99"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ws0"> 35<span class="_ _116"> </span></span>66<span xmlns="http://www.w3.org/1999/xhtml" class="_ _10d"> </span>62<span xmlns="http://www.w3.org/1999/xhtml" class="_ _116"> </span>53Key assumptions2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fa"> </span>2021Increase in salaries and wages<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c3"> </span>1.7%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _172"> </span>1.2%Discount rate<span xmlns="http://www.w3.org/1999/xhtml" class="_ _12f"> </span>3.3%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _82"> </span>1.1%Remaining life expectancy at the time of retirement (years)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _163"> </span>24.0<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7c"> </span>27.1Defined benefit pension obligationMEUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17b"> </span>2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fa"> </span>2021Obligations 1/1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c4"> </span>239<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7d"> </span>250Exchange rate adjustments <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c5"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _10d"> </span>10Pension costs<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1be"> </span>4<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>6Interest costs<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1bf"> </span>3<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>2Settlements<span xmlns="http://www.w3.org/1999/xhtml" class="_ _14d"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span>-3Actuarial gains/losses from changes in demographic assumptions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span>-7Actuarial gains/losses from changes in financial assumptions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _154"> </span>-67<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c6"> </span>-7Actuarial gains/losses from changes in experience<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c7"> </span>5<span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span>-2Benefits paid<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c8"> </span>-7<span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span>-10Obligations 31/12<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c9"> </span>177<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6"> </span>239Sensitivity analysisA<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ssumptions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ca"> </span>Discount rate<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d5"> </span>Salary increase<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a6"> </span>Life expectancy-0.5%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ab"> </span>+0.5%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e"> </span>-1.0%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ab"> </span>+1.0%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _35"> </span>-1 year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span>+1 yearMEUR2022 - Impact on obligation<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1cb"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">11<span class="_ _75"> </span>-10<span class="_ _94"> </span>-1<span class="_ _10d"> </span></span>1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-4<span class="_ _13"> </span></span>42021 - Impact on obligation<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1cb"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">19<span class="_ _75"> </span>-18<span class="_ _94"> </span>-2<span class="_ _10d"> </span></span>2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-8<span class="_ _13"> </span></span>8The sensitivity analysis above has been determined based on a method that extrapolates the impact on the defined benefitobligation as a result of reasonable changes in key assumptions.Th<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>e fo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>llo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>win<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>g pay<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>m<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>ent<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>s a<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>re e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>xp<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>ec<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>te<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>d co<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>nt<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>ri<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>bu<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>ti<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>on<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>s to t<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>he d<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>efi<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>ne<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>d b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>en<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>ef<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>it pl<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>an o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>bl<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>iga<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>ti<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>on:Expected contributionsMEUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17b"> </span>2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fa"> </span>2021&lt; 1 year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1cc"> </span>7<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c6"> </span> 71-5 years<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18c"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">22<span class="_ _13"> </span>24</span>&gt; 5 years<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18c"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">40<span class="_ _10d"> </span>38</span>Expected contributions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _f9"> </span>69<span xmlns="http://www.w3.org/1999/xhtml" class="_ _10d"> </span>69The expected duration of the defined benefit plan obligation is 24 years (2021: 27 years) at year end.Pension plan assetsMEUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17b"> </span>2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fa"> </span>2021Pension plan assets 1/1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1cd"> </span>214<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7d"> </span>184Exchange rate adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ce"> </span>1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _10d"> </span>10Interest income<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1cf"> </span>2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>1Return on plan assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d0"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-38<span class="_ _13"> </span>22</span>Employer’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>s contribution<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d1"> </span>4<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>4Plan participants<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d2"> </span>1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>1Benefits paid<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c8"> </span>-5<span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span>-8Pension plan assets 31/12<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d3"> </span>179<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6"> </span>214Composition of pension plan assetsMEUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17b"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff1 fc2 ls3f ws2e">2022<span class="_ _fa"> </span>2021</span>Assets quoted in active markets:Equities in European markets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d4"> </span>36%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _12b"> </span>39%Bonds in European markets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _129"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">27%<span class="_ _1d5"> </span>31%</span>Assets unquoted:Cash<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d6"> </span>9%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span>8%Other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b2"> </span>28%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _12b"> </span>22% 3.7 ProvisionsAccounting policiesProvisions are recognised where a legal or constructive obligation has been incurred as a result of past events and if it is probable it will lead to an outflow of financial resources and if the size of the liability can be measured on a reliable basis. The provision is calculated as theamount expected to be paid to settle the obligation.Provisions2022 2021Claims Claimsand legal and legalMEUR Employeesactions Other Total Employeesactions Other TotalProvisions 1/1 13 4 7 24 12 4 10 26Additions for the year 3 3 16 22 3 5 1 9Used during the year -1 -2 -1 -4 -2 -2 -4 -8Reversed during the year -2 -3 -1 -6 - -3 -3 -6Business acquisitions - - - - - - 3 3Provisions 31/12 13 2 21 36 13 4 7 24Current/non-current classification:Non-current liabilities 10 - 9 19 11 1 4 16Current liabilities 3 2 12 17 2 3 3 8Provisions 31/12 13 2 21 36 13 4 7 24CommentsProvisions relate primarily to jubilee obligations and retirementbenefits, reconstruction and relief aid activities in Ukraine,refurbishment obligation, warranties, fair value provision forphantom share, restructuring and ongoing disputes.As at 31 December 2022 other provisions include aprovision of 1 MEUR (2021: 1 MEUR) for restructuringmeasures. This provision is expected to be utilisedwithin one year. Provisions are recognised where a legal or constructive obligation has been incurred as a result of past events and if it is probable it will lead to an outflow of financial resources and if the size of the liability can be measured on a reliable basis. The provision is calculated as theamount expected to be paid to settle the obligation. 4.1 InventoriesAccounting policiesInventories are valued at the lowest value of historical cost calculated as a weighted average or the net realisation value. The cost of finished goods and work in progress include the direct costs of production materials and wages, as well as indirect produ costs such as personnecosts, maintenance cos and depreciation of plant a machinery.CommentsThe main part of the write-down of inventory relates to write-down of spare parts inventory.InventoriesMEUR 2022 2021Raw materials and consumables 212 144Work in progress 20 15Finished goods 201 158Inventories 31/12 433 317Inventory before wrMEUR 512 398Write-downs 1/1 -81 -77Change in the year 2 -4Write-downs 31/12 -79 -81Inventories 31/12 433 317 4.2 Trade receivablesAccounting policiesTrade receivables are measured at amortised cost less allowance for bad debt based on the expected credit loss model.The Group applies the simplified approach to measureexpected credit losses, which uses a lifetime expectedloss allowance for all trade receivables.To measure the expected credit losses, trade receivables have been grouped based on shared credit riskcharacteristics and the days past due.The expected loss rates are based on the paymentprofiles of sales over a period of 60 months before 1January 2022 and the corresponding historical creditlosses experienced within this period. The historical lossrates are adjusted to reflect current and forward-lookinginformation on macroeconomic factors affecting theability of the customers to settle the receivables.The costs of allowance for bad debts and realised lossesduring the year are included in other external costs.Trade receivablesMEUR 2022 2021Trade receivables before allowance for bad debts (maximum credit risk) 360 318Allowance for bad debts 1/1 -11 -10Exchange rate adjustments - -Movements during the year -3 -2Realised losses during the year 1 1Allowance for bad debts 31/12 -13 -11Trade receivables 31/12 347 307Allowance for bad debts based on the expected credit loss model2022Gross Allowance Expected carrying for badMEURloss rateamountdebt TotalCurrent 0.1% 340 - 340More than 30 days past due 2% 6 - 6More than 60 days past due 40% 2 -1 1More than 90 days past due 100% 12 -12 -Total 31/12 360 -13 3472021Gross AllowanceExpected carrying for badMEURloss rateamountdebt TotalCurrent 0.1% 301 - 301More than 30 days past due 2% 4 - 4More than 60 days past due 40% 2 - 2More than 90 days past due 100% 11 -11 -Total 31/12 318 -11 307 4.2 Trade receivablesAccounting policiesTrade receivables are measured at amortised cost less allowance for bad debt based on the expected credit loss model.The Group applies the simplified approach to measureexpected credit losses, which uses a lifetime expectedloss allowance for all trade receivables.To measure the expected credit losses, trade receivables have been grouped based on shared credit riskcharacteristics and the days past due.The expected loss rates are based on the paymentprofiles of sales over a period of 60 months before 1January 2022 and the corresponding historical creditlosses experienced within this period. The historical lossrates are adjusted to reflect current and forward-lookinginformation on macroeconomic factors affecting theability of the customers to settle the receivables.The costs of allowance for bad debts and realised lossesduring the year are included in other external costs.Trade receivablesMEUR 2022 2021Trade receivables before allowance for bad debts (maximum credit risk) 360 318Allowance for bad debts 1/1 -11 -10Exchange rate adjustments - -Movements during the year -3 -2Realised losses during the year 1 1Allowance for bad debts 31/12 -13 -11Trade receivables 31/12 347 307Allowance for bad debts based on the expected credit loss model2022Gross Allowance Expected carrying for badMEURloss rateamountdebt TotalCurrent 0.1% 340 - 340More than 30 days past due 2% 6 - 6More than 60 days past due 40% 2 -1 1More than 90 days past due 100% 12 -12 -Total 31/12 360 -13 3472021Gross AllowanceExpected carrying for badMEURloss rateamountdebt TotalCurrent 0.1% 301 - 301More than 30 days past due 2% 4 - 4More than 60 days past due 40% 2 - 2More than 90 days past due 100% 11 -11 -Total 31/12 318 -11 307 4.2 Trade receivablesAccounting policiesTrade receivables are measured at amortised cost less allowance for bad debt based on the expected credit loss model.The Group applies the simplified approach to measureexpected credit losses, which uses a lifetime expectedloss allowance for all trade receivables.To measure the expected credit losses, trade receivables have been grouped based on shared credit riskcharacteristics and the days past due.The expected loss rates are based on the paymentprofiles of sales over a period of 60 months before 1January 2022 and the corresponding historical creditlosses experienced within this period. The historical lossrates are adjusted to reflect current and forward-lookinginformation on macroeconomic factors affecting theability of the customers to settle the receivables.The costs of allowance for bad debts and realised lossesduring the year are included in other external costs.Trade receivablesMEUR 2022 2021Trade receivables before allowance for bad debts (maximum credit risk) 360 318Allowance for bad debts 1/1 -11 -10Exchange rate adjustments - -Movements during the year -3 -2Realised losses during the year 1 1Allowance for bad debts 31/12 -13 -11Trade receivables 31/12 347 307Allowance for bad debts based on the expected credit loss model2022Gross Allowance Expected carrying for badMEURloss rateamountdebt TotalCurrent 0.1% 340 - 340More than 30 days past due 2% 6 - 6More than 60 days past due 40% 2 -1 1More than 90 days past due 100% 12 -12 -Total 31/12 360 -13 3472021Gross AllowanceExpected carrying for badMEURloss rateamountdebt TotalCurrent 0.1% 301 - 301More than 30 days past due 2% 4 - 4More than 60 days past due 40% 2 - 2More than 90 days past due 100% 11 -11 -Total 31/12 318 -11 307Due to the considerable customer spread in terms ofgeographical location and numbers, the credit riskis fundamentally limited. To a minor degree, when considered necessary, insurance or bank guarantees areused to hedge outstanding receivables.As a consequence of the international diversification ofthe Group’s activities there are business relations with a number of different banks in Europe, North America and Asia. To minimise the credit risk on placement of funds and on entering into agreements on derived financial instruments, only major, financially sound institutions are used.Customer credit risks are assessed considering thefinancial position, past experience and other factors.Individual risk limits are set based on internal and external ratings. For impairment of trade receivable andthe maximum credit risk, please refer to note 4.2. Inventories are valued at the lowest value of historical cost calculated as a weighted average or the net realisation value. The cost of finished goods and work in progress include the direct costs of production materials and wages, as well as indirect producosts, maintenance cos costs such as personne and depreciation of plant amachinery. The cost of finished goods and work in progress include the direct costs of production materials and wages, as well as indirect producosts, maintenance cos costs such as personne and depreciation of plant amachinery. Trade receivables are measured at amortised cost less allowance for bad debt based on the expected credit loss model.The Group applies the simplified approach to measureexpected credit losses, which uses a lifetime expectedloss allowance for all trade receivables.To measure the expected credit losses, trade receivables have been grouped based on shared credit riskcharacteristics and the days past due.The expected loss rates are based on the paymentprofiles of sales over a period of 60 months before 1January 2022 and the corresponding historical creditlosses experienced within this period. The historical lossrates are adjusted to reflect current and forward-lookinginformation on macroeconomic factors affecting theability of the customers to settle the receivables.The costs of allowance for bad debts and realised lossesduring the year are included in other external costs. Financial income and expenses comprise interest income and interest costs, interest costs compiled from lease liabilities, realised and unrealised foreign exchange gains and losses, as well as fair value adjustments of cash-settled share-based incentiveprogrammes which are offset against other liabilities.Further, they include adjustments to fair value hedges, and income and costs relating to cash flow hedges transferred from other comprehensive income on realisation of the hedged items. Financial income and expenses comprise interest income and interest costs, interest costs compiled from lease liabilities, realised and unrealised foreign exchange gains and losses, as well as fair value adjustments of cash-settled share-based incentiveprogrammes which are offset against other liabilities.Further, they include adjustments to fair value hedges, and income and costs relating to cash flow hedges transferred from other comprehensive income on realisation of the hedged items. Financial incomeMEUR 2022 2021Interest income 5 2Fair value adjustment Phantom shares 1 -Foreign exchange gains 10 8Financial income 16 10Hereof financial income on financial assets at amortised cost 4 2 Financial expensesMEUR 2022 2021Interest expenses and similar 8 8Interest expenses lease liabilities 3 2Foreign exchange losses 50 9Financial expenses 61 19Hereof financial expenses on financial liabilities at amortised cost 6 4 Derivative financial instruments are initially recognised in the balance sheet at cost price and are subsequently measured at fair value. Derivative financial instruments are recognised in other receivables and other payables. Changes to the fair value of derivative financial instruments, which meet the conditions for hedging the fair value of a recognised asset or liability, are recognised in the income statement together with any changes in the fair value of the hedged asset or liability.Changes to the fair value of derivative financial instruments, which meet the conditions for hedging future cash flow, are recognised in other comprehensive income provided the hedge has been effective. Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness assessments to ensure that an economic relationship exists between the hedged item andhedging instrument. The accumulated value adjustmentrelated to these hedge transactions is transferred fromother comprehensive income when the position is realised, and is included in the value of the hedged position e.g. the adjustment follows the cash flow.For derivative financial instruments, which do not qualify as hedging instruments, changes to the fair value are recognised on an ongoing basis in the income statement as financial income or financial expenses. Derivative financial instruments are initially recognised in the balance sheet at cost price and are subsequently measured at fair value. Derivative financial instruments are recognised in other receivables and other payables. Changes to the fair value of derivative financial instruments, which meet the conditions for hedging the fair value of a recognised asset or liability, are recognised in the income statement together with any changes in the fair value of the hedged asset or liability.Changes to the fair value of derivative financial instruments, which meet the conditions for hedging future cash flow, are recognised in other comprehensive income provided the hedge has been effective. Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness assessments to ensure that an economic relationship exists between the hedged item andhedging instrument. The accumulated value adjustmentrelated to these hedge transactions is transferred fromother comprehensive income when the position is realised, and is included in the value of the hedged position e.g. the adjustment follows the cash flow.For derivative financial instruments, which do not qualify as hedging instruments, changes to the fair value are recognised on an ongoing basis in the income statement as financial income or financial expenses. Derivative financial instruments are initially recognised in the balance sheet at cost price and are subsequently measured at fair value. Derivative financial instruments are recognised in other receivables and other payables. Changes to the fair value of derivative financial instruments, which meet the conditions for hedging the fair value of a recognised asset or liability, are recognised in the income statement together with any changes in the fair value of the hedged asset or liability.Changes to the fair value of derivative financial instruments, which meet the conditions for hedging future cash flow, are recognised in other comprehensive income provided the hedge has been effective. Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness assessments to ensure that an economic relationship exists between the hedged item andhedging instrument. The accumulated value adjustmentrelated to these hedge transactions is transferred fromother comprehensive income when the position is realised, and is included in the value of the hedged position e.g. the adjustment follows the cash flow.For derivative financial instruments, which do not qualify as hedging instruments, changes to the fair value are recognised on an ongoing basis in the income statement as financial income or financial expenses. Derivative financial instruments are initially recognised in the balance sheet at cost price and are subsequently measured at fair value. Derivative financial instruments are recognised in other receivables and other payables. Changes to the fair value of derivative financial instruments, which meet the conditions for hedging the fair value of a recognised asset or liability, are recognised in the income statement together with any changes in the fair value of the hedged asset or liability.Changes to the fair value of derivative financial instruments, which meet the conditions for hedging future cash flow, are recognised in other comprehensive income provided the hedge has been effective. Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness assessments to ensure that an economic relationship exists between the hedged item andhedging instrument. The accumulated value adjustmentrelated to these hedge transactions is transferred fromother comprehensive income when the position is realised, and is included in the value of the hedged position e.g. the adjustment follows the cash flow.For derivative financial instruments, which do not qualify as hedging instruments, changes to the fair value are recognised on an ongoing basis in the income statement as financial income or financial expenses. Changes to the fair value of derivative financial instruments, which meet the conditions for hedging future cash flow, are recognised in other comprehensive income provided the hedge has been effective. Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness assessments to ensure that an economic relationship exists between the hedged item andhedging instrument. The accumulated value adjustmentrelated to these hedge transactions is transferred fromother comprehensive income when the position is realised, and is included in the value of the hedged position e.g. the adjustment follows the cash flow. 5.1 Financial income and Financial expenses Accounting policiesFinancial income and expenses comprise interest income and interest costs, interest costs compiled from lease liabilities, realised and unrealised foreign exchange gains and losses, as well as fair value adjustments of cash-settled share-based incentiveprogrammes which are offset against other liabilities.Further, they include adjustments to fair value hedges, and income and costs relating to cash flow hedges transferred from other comprehensive income on realisation of the hedged items.Financial incomeMEUR 2022 2021Interest income 5 2Fair value adjustment Phantom shares 1 -Foreign exchange gains 10 8Financial income 16 10Hereof financial income on financial assets at amortised cost 4 2Financial expensesMEUR 2022 2021Interest expenses and similar 8 8Interest expenses lease liabilities 3 2Foreign exchange losses 50 9Financial expenses 61 19Hereof financial expenses on financial liabilities at amortised cost 6 4 5.2 Financial risks and instrumentsAccounting policiesDerivative financial instruments are initially recognised in the balance sheet at cost price and are subsequently measured at fair value. Derivative financial instruments are recognised in other receivables and other payables. Changes to the fair value of derivative financial instruments, which meet the conditions for hedging the fair value of a recognised asset or liability, are recognised in the income statement together with any changes in the fair value of the hedged asset or liability.Changes to the fair value of derivative financial instruments, which meet the conditions for hedging future cash flow, are recognised in other comprehensive income provided the hedge has been effective. Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness assessments to ensure that an economic relationship exists between the hedged item andhedging instrument. The accumulated value adjustmentrelated to these hedge transactions is transferred fromother comprehensive income when the position is realised, and is included in the value of the hedged position e.g. the adjustment follows the cash flow.For derivative financial instruments, which do not qualify as hedging instruments, changes to the fair value are recognised on an ongoing basis in the income statement as financial income or financial expenses.CommentsAs a consequence of ROCKWOOL Group’s extensive international activities, the Group’s income statement and equity are subject to a number of financial risks. TheGroup manages these risks in the following categories:– Exchange rate risk– Interest rate risk– Liquidity risk– Credit riskThe Group’s policy is to identify and hedge significant financial risks on an ongoing basis. This is theresponsibility of the individual companies in whichfinancial risks might arise and overall supported bythe Group’s treasury department. The parent company continuously monitors the Group’s financial risks in accordance with a framework determined by GroupManagement and/or the Board of Directors.Exchange rate riskAs a consequence of the Group’s structure, net sales and expenditure in foreign currency are to a significantdegree set off against each other, so that the Group is not exposed to major exchange rate risks.Commercial exchange rate risks in the companies, whichcannot be set off are hedged on a continuous basis, tothe extent that they may significantly affect the resultsof the individual company in a negative direction,using currency loans, currency deposits and/or financialderivatives. Exchange rate risks are hedged in theindividual companies. The Group’s hedging reserve is disclosed under “Statement of changes in equity” withan insignificant amount.Categories of financial assets and liabilitiesMEUR 2022 2021Financial assets:Financial instruments for hedging of future cash flows1 -Financial assets at fair value through other comprehensive income1 -Trade receivables347 307Other receivables and receivables from associated companies80 98Cash209 166Financial assets at amortised costs636 571Financial liabilities:Fair value hedges- -Financial liabilities at fair value through income statement- -Financial instruments for hedging of future cash flows3 1Financial liabilities at fair value through other comprehensive income3 1Bank loans and other loans including short-term portion141 26Bank debt7 1Trade payables270 283Other payables196 176Financial liabilities at amortised costs614 486The carrying value of the Group’s financial assets and liabilities measured at amortised cost are assessed to be a reasonable approximation of fair value.Other receivables and receivables from associated companiesOther receivables and receivables from associated companies fall due within one year in both 2022 and 2021, and amount to 80 MEUR (2021: 98 MEUR).CommentsThe Group’s net sales and expenditures will be subject to exchange rate fluctuations on translation into EUR. A sensitivity analysis is made for the Group’s result and equity based on the underlying currency transactions.The financial instruments included in the sensitivity analysis are cash, receivables, payables, current liabilities and financial investments without taking hedging into consideration. The result of the sensitivity analysis cannot be directly transferred to the fluctuations on translating the financial result and equity of subsidiariesinto EUR.The impact on the net sales of the difference between average rate and year-end rate amounts to 50 MEUR(2021: 27 MEUR) for the five most exposed currencies(USD, RUB, CAD, PLN, and GBP), which is a change of-1.3 percent (2021: 0.9 percent).The Group’s policy is not to hedge exchange rate risks in long-term investments in subsidiaries. When relevant,external investment loans and Group loans are, as ageneral rule, established in the local currency of the company involved, while cash at bank and in hand areplaced in local currency.In the few countries with ineffective financial markets loans can be raised and surplus liquidity placed in DKK or EUR, subject to the approval of the Group’s finance function. Most Group loans that are not establishedin DKK or EUR, are hedged via forward agreements,currency loans and cash pools or via the SWAP market.Interest rate riskCurrently the Group does not have any significant non-current interest-bearing debt or assets. The Group’s policy is that necessary financing of investments shouldprimarily be affected by raising five to seven year loansat fixed or variable interest rates.Drawings on credit facilities at variable interest ratesgenerally match the funds, and all Group loans aresymmetrical in terms of interest rates. Consequently,changes in interest rates will not have a significant effecton the result of the Group.Sensitivity analysisEffect in MEUR EBITDA5% change in exchange rate 2022 2021USD (+/-) 10 10RUB (+/-) 6 7CAD (+/-) 4 3PLN (+/-) 1 1GBP (+/-) 8 7Equity5% change in exchange rate 2022 2021USD (+/-) 14 14RUB (+/-) 18 12CAD (+/-) 12 11PLN (+/-) 13 12GBP (+/-) 11 10Liquidity riskThe current surplus and deficit liquidity in the Group’s companies is set off, to the extent that this is profitable,via the parent company acting as intra-Group bank andvia cash pool systems. When considered appropriate,underlying cash pool systems are established in foreigncompanies.To the extent that the financial reserves are of an appropriate size, the parent company also acts as lenderto the companies in the Group.To ensure adequate financial reserves as defined by the Board of Directors, investment loans can be raised ona continuous basis to partly cover new investments andto refinance existing loans. The parent company has made guarantees for some credit facilities and loans. The parent company has issued ownership clauses and/or deed of postponements in connection with intercompany loans.The parent company ensures on an ongoing basis that flexible, unutilised committed credit facilities of an adequate size are established with Investment Grade credit-rated banks. The Group’s financial reserves also consist of cash at bank and in hand, and unusedoverdraft facilities.Credit riskDue to the considerable customer spread in terms ofgeographical location and numbers, the credit riskis fundamentally limited. To a minor degree, when considered necessary, insurance or bank guarantees areused to hedge outstanding receivables.As a consequence of the international diversification ofthe Group’s activities there are business relations with a number of different banks in Europe, North America and Asia. To minimise the credit risk on placement of funds and on entering into agreements on derived financial instruments, only major, financially sound institutions are used.Customer credit risks are assessed considering thefinancial position, past experience and other factors.Individual risk limits are set based on internal and external ratings. For impairment of trade receivable andthe maximum credit risk, please refer to note 4.2.Financial instrumentsFinancial assets and liabilities at fair value are relatedto foreign exchange rate forward contracts, foreignexchange rate swaps or interest rate swaps all of whichhave been valued using a valuation technique with market observable inputs (level 2). The Group is using no other valuation technique. TheGroup enters into derivative financial instruments withfinancial institutions.Derivatives valued using valuation techniques withmarket observable inputs are mainly foreign exchangeforward contracts. The most frequently applied valuationtechniques include forward pricing models using presentvalue calculations. The models incorporate variousinputs including the credit quality of counterparties andforeign exchange spot rates. 5.2 Financial risks and instrumentsAccounting policiesDerivative financial instruments are initially recognised in the balance sheet at cost price and are subsequently measured at fair value. Derivative financial instruments are recognised in other receivables and other payables. Changes to the fair value of derivative financial instruments, which meet the conditions for hedging the fair value of a recognised asset or liability, are recognised in the income statement together with any changes in the fair value of the hedged asset or liability.Changes to the fair value of derivative financial instruments, which meet the conditions for hedging future cash flow, are recognised in other comprehensive income provided the hedge has been effective. Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness assessments to ensure that an economic relationship exists between the hedged item andhedging instrument. The accumulated value adjustmentrelated to these hedge transactions is transferred fromother comprehensive income when the position is realised, and is included in the value of the hedged position e.g. the adjustment follows the cash flow.For derivative financial instruments, which do not qualify as hedging instruments, changes to the fair value are recognised on an ongoing basis in the income statement as financial income or financial expenses.CommentsAs a consequence of ROCKWOOL Group’s extensive international activities, the Group’s income statement and equity are subject to a number of financial risks. TheGroup manages these risks in the following categories:– Exchange rate risk– Interest rate risk– Liquidity risk– Credit riskThe Group’s policy is to identify and hedge significant financial risks on an ongoing basis. This is theresponsibility of the individual companies in whichfinancial risks might arise and overall supported bythe Group’s treasury department. The parent company continuously monitors the Group’s financial risks in accordance with a framework determined by GroupManagement and/or the Board of Directors.Exchange rate riskAs a consequence of the Group’s structure, net sales and expenditure in foreign currency are to a significantdegree set off against each other, so that the Group is not exposed to major exchange rate risks.Commercial exchange rate risks in the companies, whichcannot be set off are hedged on a continuous basis, tothe extent that they may significantly affect the resultsof the individual company in a negative direction,using currency loans, currency deposits and/or financialderivatives. Exchange rate risks are hedged in theindividual companies. The Group’s hedging reserve is disclosed under “Statement of changes in equity” withan insignificant amount.Categories of financial assets and liabilitiesMEUR 2022 2021Financial assets:Financial instruments for hedging of future cash flows1 -Financial assets at fair value through other comprehensive income1 -Trade receivables347 307Other receivables and receivables from associated companies80 98Cash209 166Financial assets at amortised costs636 571Financial liabilities:Fair value hedges- -Financial liabilities at fair value through income statement- -Financial instruments for hedging of future cash flows3 1Financial liabilities at fair value through other comprehensive income3 1Bank loans and other loans including short-term portion141 26Bank debt7 1Trade payables270 283Other payables196 176Financial liabilities at amortised costs614 486The carrying value of the Group’s financial assets and liabilities measured at amortised cost are assessed to be a reasonable approximation of fair value.Other receivables and receivables from associated companiesOther receivables and receivables from associated companies fall due within one year in both 2022 and 2021, and amount to 80 MEUR (2021: 98 MEUR).CommentsThe Group’s net sales and expenditures will be subject to exchange rate fluctuations on translation into EUR. A sensitivity analysis is made for the Group’s result and equity based on the underlying currency transactions.The financial instruments included in the sensitivity analysis are cash, receivables, payables, current liabilities and financial investments without taking hedging into consideration. The result of the sensitivity analysis cannot be directly transferred to the fluctuations on translating the financial result and equity of subsidiariesinto EUR.The impact on the net sales of the difference between average rate and year-end rate amounts to 50 MEUR(2021: 27 MEUR) for the five most exposed currencies(USD, RUB, CAD, PLN, and GBP), which is a change of-1.3 percent (2021: 0.9 percent).The Group’s policy is not to hedge exchange rate risks in long-term investments in subsidiaries. When relevant,external investment loans and Group loans are, as ageneral rule, established in the local currency of the company involved, while cash at bank and in hand areplaced in local currency.In the few countries with ineffective financial markets loans can be raised and surplus liquidity placed in DKK or EUR, subject to the approval of the Group’s finance function. Most Group loans that are not establishedin DKK or EUR, are hedged via forward agreements,currency loans and cash pools or via the SWAP market.Interest rate riskCurrently the Group does not have any significant non-current interest-bearing debt or assets. The Group’s policy is that necessary financing of investments shouldprimarily be affected by raising five to seven year loansat fixed or variable interest rates.Drawings on credit facilities at variable interest ratesgenerally match the funds, and all Group loans aresymmetrical in terms of interest rates. Consequently,changes in interest rates will not have a significant effecton the result of the Group.Sensitivity analysisEffect in MEUR EBITDA5% change in exchange rate 2022 2021USD (+/-) 10 10RUB (+/-) 6 7CAD (+/-) 4 3PLN (+/-) 1 1GBP (+/-) 8 7Equity5% change in exchange rate 2022 2021USD (+/-) 14 14RUB (+/-) 18 12CAD (+/-) 12 11PLN (+/-) 13 12GBP (+/-) 11 10Liquidity riskThe current surplus and deficit liquidity in the Group’s companies is set off, to the extent that this is profitable,via the parent company acting as intra-Group bank andvia cash pool systems. When considered appropriate,underlying cash pool systems are established in foreigncompanies.To the extent that the financial reserves are of an appropriate size, the parent company also acts as lenderto the companies in the Group.To ensure adequate financial reserves as defined by the Board of Directors, investment loans can be raised ona continuous basis to partly cover new investments andto refinance existing loans. The parent company has made guarantees for some credit facilities and loans. The parent company has issued ownership clauses and/or deed of postponements in connection with intercompany loans.The parent company ensures on an ongoing basis that flexible, unutilised committed credit facilities of an adequate size are established with Investment Grade credit-rated banks. The Group’s financial reserves also consist of cash at bank and in hand, and unusedoverdraft facilities.Credit riskDue to the considerable customer spread in terms ofgeographical location and numbers, the credit riskis fundamentally limited. To a minor degree, when considered necessary, insurance or bank guarantees areused to hedge outstanding receivables.As a consequence of the international diversification ofthe Group’s activities there are business relations with a number of different banks in Europe, North America and Asia. To minimise the credit risk on placement of funds and on entering into agreements on derived financial instruments, only major, financially sound institutions are used.Customer credit risks are assessed considering thefinancial position, past experience and other factors.Individual risk limits are set based on internal and external ratings. For impairment of trade receivable andthe maximum credit risk, please refer to note 4.2.Financial instrumentsFinancial assets and liabilities at fair value are relatedto foreign exchange rate forward contracts, foreignexchange rate swaps or interest rate swaps all of whichhave been valued using a valuation technique with market observable inputs (level 2). The Group is using no other valuation technique. TheGroup enters into derivative financial instruments withfinancial institutions.Derivatives valued using valuation techniques withmarket observable inputs are mainly foreign exchangeforward contracts. The most frequently applied valuationtechniques include forward pricing models using presentvalue calculations. The models incorporate variousinputs including the credit quality of counterparties andforeign exchange spot rates. 5.2 Financial risks and instrumentsAccounting policiesDerivative financial instruments are initially recognised in the balance sheet at cost price and are subsequently measured at fair value. Derivative financial instruments are recognised in other receivables and other payables. Changes to the fair value of derivative financial instruments, which meet the conditions for hedging the fair value of a recognised asset or liability, are recognised in the income statement together with any changes in the fair value of the hedged asset or liability.Changes to the fair value of derivative financial instruments, which meet the conditions for hedging future cash flow, are recognised in other comprehensive income provided the hedge has been effective. Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness assessments to ensure that an economic relationship exists between the hedged item andhedging instrument. The accumulated value adjustmentrelated to these hedge transactions is transferred fromother comprehensive income when the position is realised, and is included in the value of the hedged position e.g. the adjustment follows the cash flow.For derivative financial instruments, which do not qualify as hedging instruments, changes to the fair value are recognised on an ongoing basis in the income statement as financial income or financial expenses.CommentsAs a consequence of ROCKWOOL Group’s extensive international activities, the Group’s income statement and equity are subject to a number of financial risks. TheGroup manages these risks in the following categories:– Exchange rate risk– Interest rate risk– Liquidity risk– Credit riskThe Group’s policy is to identify and hedge significant financial risks on an ongoing basis. This is theresponsibility of the individual companies in whichfinancial risks might arise and overall supported bythe Group’s treasury department. The parent company continuously monitors the Group’s financial risks in accordance with a framework determined by GroupManagement and/or the Board of Directors.Exchange rate riskAs a consequence of the Group’s structure, net sales and expenditure in foreign currency are to a significantdegree set off against each other, so that the Group is not exposed to major exchange rate risks.Commercial exchange rate risks in the companies, whichcannot be set off are hedged on a continuous basis, tothe extent that they may significantly affect the resultsof the individual company in a negative direction,using currency loans, currency deposits and/or financialderivatives. Exchange rate risks are hedged in theindividual companies. The Group’s hedging reserve is disclosed under “Statement of changes in equity” withan insignificant amount.Categories of financial assets and liabilitiesMEUR 2022 2021Financial assets:Financial instruments for hedging of future cash flows1 -Financial assets at fair value through other comprehensive income1 -Trade receivables347 307Other receivables and receivables from associated companies80 98Cash209 166Financial assets at amortised costs636 571Financial liabilities:Fair value hedges- -Financial liabilities at fair value through income statement- -Financial instruments for hedging of future cash flows3 1Financial liabilities at fair value through other comprehensive income3 1Bank loans and other loans including short-term portion141 26Bank debt7 1Trade payables270 283Other payables196 176Financial liabilities at amortised costs614 486The carrying value of the Group’s financial assets and liabilities measured at amortised cost are assessed to be a reasonable approximation of fair value.Other receivables and receivables from associated companiesOther receivables and receivables from associated companies fall due within one year in both 2022 and 2021, and amount to 80 MEUR (2021: 98 MEUR).CommentsThe Group’s net sales and expenditures will be subject to exchange rate fluctuations on translation into EUR. A sensitivity analysis is made for the Group’s result and equity based on the underlying currency transactions.The financial instruments included in the sensitivity analysis are cash, receivables, payables, current liabilities and financial investments without taking hedging into consideration. The result of the sensitivity analysis cannot be directly transferred to the fluctuations on translating the financial result and equity of subsidiariesinto EUR.The impact on the net sales of the difference between average rate and year-end rate amounts to 50 MEUR(2021: 27 MEUR) for the five most exposed currencies(USD, RUB, CAD, PLN, and GBP), which is a change of-1.3 percent (2021: 0.9 percent).The Group’s policy is not to hedge exchange rate risks in long-term investments in subsidiaries. When relevant,external investment loans and Group loans are, as ageneral rule, established in the local currency of the company involved, while cash at bank and in hand areplaced in local currency.In the few countries with ineffective financial markets loans can be raised and surplus liquidity placed in DKK or EUR, subject to the approval of the Group’s finance function. Most Group loans that are not establishedin DKK or EUR, are hedged via forward agreements,currency loans and cash pools or via the SWAP market.Interest rate riskCurrently the Group does not have any significant non-current interest-bearing debt or assets. The Group’s policy is that necessary financing of investments shouldprimarily be affected by raising five to seven year loansat fixed or variable interest rates.Drawings on credit facilities at variable interest ratesgenerally match the funds, and all Group loans aresymmetrical in terms of interest rates. Consequently,changes in interest rates will not have a significant effecton the result of the Group.Sensitivity analysisEffect in MEUR EBITDA5% change in exchange rate 2022 2021USD (+/-) 10 10RUB (+/-) 6 7CAD (+/-) 4 3PLN (+/-) 1 1GBP (+/-) 8 7Equity5% change in exchange rate 2022 2021USD (+/-) 14 14RUB (+/-) 18 12CAD (+/-) 12 11PLN (+/-) 13 12GBP (+/-) 11 10Liquidity riskThe current surplus and deficit liquidity in the Group’s companies is set off, to the extent that this is profitable,via the parent company acting as intra-Group bank andvia cash pool systems. When considered appropriate,underlying cash pool systems are established in foreigncompanies.To the extent that the financial reserves are of an appropriate size, the parent company also acts as lenderto the companies in the Group.To ensure adequate financial reserves as defined by the Board of Directors, investment loans can be raised ona continuous basis to partly cover new investments andto refinance existing loans. The parent company has made guarantees for some credit facilities and loans. The parent company has issued ownership clauses and/or deed of postponements in connection with intercompany loans.The parent company ensures on an ongoing basis that flexible, unutilised committed credit facilities of an adequate size are established with Investment Grade credit-rated banks. The Group’s financial reserves also consist of cash at bank and in hand, and unusedoverdraft facilities.Credit riskDue to the considerable customer spread in terms ofgeographical location and numbers, the credit riskis fundamentally limited. To a minor degree, when considered necessary, insurance or bank guarantees areused to hedge outstanding receivables.As a consequence of the international diversification ofthe Group’s activities there are business relations with a number of different banks in Europe, North America and Asia. To minimise the credit risk on placement of funds and on entering into agreements on derived financial instruments, only major, financially sound institutions are used.Customer credit risks are assessed considering thefinancial position, past experience and other factors.Individual risk limits are set based on internal and external ratings. For impairment of trade receivable andthe maximum credit risk, please refer to note 4.2.Financial instrumentsFinancial assets and liabilities at fair value are relatedto foreign exchange rate forward contracts, foreignexchange rate swaps or interest rate swaps all of whichhave been valued using a valuation technique with market observable inputs (level 2). The Group is using no other valuation technique. TheGroup enters into derivative financial instruments withfinancial institutions.Derivatives valued using valuation techniques withmarket observable inputs are mainly foreign exchangeforward contracts. The most frequently applied valuationtechniques include forward pricing models using presentvalue calculations. The models incorporate variousinputs including the credit quality of counterparties andforeign exchange spot rates. 5.2 Financial risks and instrumentsAccounting policiesDerivative financial instruments are initially recognised in the balance sheet at cost price and are subsequently measured at fair value. Derivative financial instruments are recognised in other receivables and other payables. Changes to the fair value of derivative financial instruments, which meet the conditions for hedging the fair value of a recognised asset or liability, are recognised in the income statement together with any changes in the fair value of the hedged asset or liability.Changes to the fair value of derivative financial instruments, which meet the conditions for hedging future cash flow, are recognised in other comprehensive income provided the hedge has been effective. Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness assessments to ensure that an economic relationship exists between the hedged item andhedging instrument. The accumulated value adjustmentrelated to these hedge transactions is transferred fromother comprehensive income when the position is realised, and is included in the value of the hedged position e.g. the adjustment follows the cash flow.For derivative financial instruments, which do not qualify as hedging instruments, changes to the fair value are recognised on an ongoing basis in the income statement as financial income or financial expenses.CommentsAs a consequence of ROCKWOOL Group’s extensive international activities, the Group’s income statement and equity are subject to a number of financial risks. TheGroup manages these risks in the following categories:– Exchange rate risk– Interest rate risk– Liquidity risk– Credit riskThe Group’s policy is to identify and hedge significant financial risks on an ongoing basis. This is theresponsibility of the individual companies in whichfinancial risks might arise and overall supported bythe Group’s treasury department. The parent company continuously monitors the Group’s financial risks in accordance with a framework determined by GroupManagement and/or the Board of Directors.Exchange rate riskAs a consequence of the Group’s structure, net sales and expenditure in foreign currency are to a significantdegree set off against each other, so that the Group is not exposed to major exchange rate risks.Commercial exchange rate risks in the companies, whichcannot be set off are hedged on a continuous basis, tothe extent that they may significantly affect the resultsof the individual company in a negative direction,using currency loans, currency deposits and/or financialderivatives. Exchange rate risks are hedged in theindividual companies. The Group’s hedging reserve is disclosed under “Statement of changes in equity” withan insignificant amount.Categories of financial assets and liabilitiesMEUR 2022 2021Financial assets:Financial instruments for hedging of future cash flows1 -Financial assets at fair value through other comprehensive income1 -Trade receivables347 307Other receivables and receivables from associated companies80 98Cash209 166Financial assets at amortised costs636 571Financial liabilities:Fair value hedges- -Financial liabilities at fair value through income statement- -Financial instruments for hedging of future cash flows3 1Financial liabilities at fair value through other comprehensive income3 1Bank loans and other loans including short-term portion141 26Bank debt7 1Trade payables270 283Other payables196 176Financial liabilities at amortised costs614 486The carrying value of the Group’s financial assets and liabilities measured at amortised cost are assessed to be a reasonable approximation of fair value.Other receivables and receivables from associated companiesOther receivables and receivables from associated companies fall due within one year in both 2022 and 2021, and amount to 80 MEUR (2021: 98 MEUR).CommentsThe Group’s net sales and expenditures will be subject to exchange rate fluctuations on translation into EUR. A sensitivity analysis is made for the Group’s result and equity based on the underlying currency transactions.The financial instruments included in the sensitivity analysis are cash, receivables, payables, current liabilities and financial investments without taking hedging into consideration. The result of the sensitivity analysis cannot be directly transferred to the fluctuations on translating the financial result and equity of subsidiariesinto EUR.The impact on the net sales of the difference between average rate and year-end rate amounts to 50 MEUR(2021: 27 MEUR) for the five most exposed currencies(USD, RUB, CAD, PLN, and GBP), which is a change of-1.3 percent (2021: 0.9 percent).The Group’s policy is not to hedge exchange rate risks in long-term investments in subsidiaries. When relevant,external investment loans and Group loans are, as ageneral rule, established in the local currency of the company involved, while cash at bank and in hand areplaced in local currency.In the few countries with ineffective financial markets loans can be raised and surplus liquidity placed in DKK or EUR, subject to the approval of the Group’s finance function. Most Group loans that are not establishedin DKK or EUR, are hedged via forward agreements,currency loans and cash pools or via the SWAP market.Interest rate riskCurrently the Group does not have any significant non-current interest-bearing debt or assets. The Group’s policy is that necessary financing of investments shouldprimarily be affected by raising five to seven year loansat fixed or variable interest rates.Drawings on credit facilities at variable interest ratesgenerally match the funds, and all Group loans aresymmetrical in terms of interest rates. Consequently,changes in interest rates will not have a significant effecton the result of the Group.Sensitivity analysisEffect in MEUR EBITDA5% change in exchange rate 2022 2021USD (+/-) 10 10RUB (+/-) 6 7CAD (+/-) 4 3PLN (+/-) 1 1GBP (+/-) 8 7Equity5% change in exchange rate 2022 2021USD (+/-) 14 14RUB (+/-) 18 12CAD (+/-) 12 11PLN (+/-) 13 12GBP (+/-) 11 10Liquidity riskThe current surplus and deficit liquidity in the Group’s companies is set off, to the extent that this is profitable,via the parent company acting as intra-Group bank andvia cash pool systems. When considered appropriate,underlying cash pool systems are established in foreigncompanies.To the extent that the financial reserves are of an appropriate size, the parent company also acts as lenderto the companies in the Group.To ensure adequate financial reserves as defined by the Board of Directors, investment loans can be raised ona continuous basis to partly cover new investments andto refinance existing loans. The parent company has made guarantees for some credit facilities and loans. The parent company has issued ownership clauses and/or deed of postponements in connection with intercompany loans.The parent company ensures on an ongoing basis that flexible, unutilised committed credit facilities of an adequate size are established with Investment Grade credit-rated banks. The Group’s financial reserves also consist of cash at bank and in hand, and unusedoverdraft facilities.Credit riskDue to the considerable customer spread in terms ofgeographical location and numbers, the credit riskis fundamentally limited. To a minor degree, when considered necessary, insurance or bank guarantees areused to hedge outstanding receivables.As a consequence of the international diversification ofthe Group’s activities there are business relations with a number of different banks in Europe, North America and Asia. To minimise the credit risk on placement of funds and on entering into agreements on derived financial instruments, only major, financially sound institutions are used.Customer credit risks are assessed considering thefinancial position, past experience and other factors.Individual risk limits are set based on internal and external ratings. For impairment of trade receivable andthe maximum credit risk, please refer to note 4.2.Financial instrumentsFinancial assets and liabilities at fair value are relatedto foreign exchange rate forward contracts, foreignexchange rate swaps or interest rate swaps all of whichhave been valued using a valuation technique with market observable inputs (level 2). The Group is using no other valuation technique. TheGroup enters into derivative financial instruments withfinancial institutions.Derivatives valued using valuation techniques withmarket observable inputs are mainly foreign exchangeforward contracts. The most frequently applied valuationtechniques include forward pricing models using presentvalue calculations. The models incorporate variousinputs including the credit quality of counterparties andforeign exchange spot rates. 5.2 Financial risks and instrumentsAccounting policiesDerivative financial instruments are initially recognised in the balance sheet at cost price and are subsequently measured at fair value. Derivative financial instruments are recognised in other receivables and other payables. Changes to the fair value of derivative financial instruments, which meet the conditions for hedging the fair value of a recognised asset or liability, are recognised in the income statement together with any changes in the fair value of the hedged asset or liability.Changes to the fair value of derivative financial instruments, which meet the conditions for hedging future cash flow, are recognised in other comprehensive income provided the hedge has been effective. Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness assessments to ensure that an economic relationship exists between the hedged item andhedging instrument. The accumulated value adjustmentrelated to these hedge transactions is transferred fromother comprehensive income when the position is realised, and is included in the value of the hedged position e.g. the adjustment follows the cash flow.For derivative financial instruments, which do not qualify as hedging instruments, changes to the fair value are recognised on an ongoing basis in the income statement as financial income or financial expenses.CommentsAs a consequence of ROCKWOOL Group’s extensive international activities, the Group’s income statement and equity are subject to a number of financial risks. TheGroup manages these risks in the following categories:– Exchange rate risk– Interest rate risk– Liquidity risk– Credit riskThe Group’s policy is to identify and hedge significant financial risks on an ongoing basis. This is theresponsibility of the individual companies in whichfinancial risks might arise and overall supported bythe Group’s treasury department. The parent company continuously monitors the Group’s financial risks in accordance with a framework determined by GroupManagement and/or the Board of Directors.Exchange rate riskAs a consequence of the Group’s structure, net sales and expenditure in foreign currency are to a significantdegree set off against each other, so that the Group is not exposed to major exchange rate risks.Commercial exchange rate risks in the companies, whichcannot be set off are hedged on a continuous basis, tothe extent that they may significantly affect the resultsof the individual company in a negative direction,using currency loans, currency deposits and/or financialderivatives. Exchange rate risks are hedged in theindividual companies. The Group’s hedging reserve is disclosed under “Statement of changes in equity” withan insignificant amount.Categories of financial assets and liabilitiesMEUR 2022 2021Financial assets:Financial instruments for hedging of future cash flows1 -Financial assets at fair value through other comprehensive income1 -Trade receivables347 307Other receivables and receivables from associated companies80 98Cash209 166Financial assets at amortised costs636 571Financial liabilities:Fair value hedges- -Financial liabilities at fair value through income statement- -Financial instruments for hedging of future cash flows3 1Financial liabilities at fair value through other comprehensive income3 1Bank loans and other loans including short-term portion141 26Bank debt7 1Trade payables270 283Other payables196 176Financial liabilities at amortised costs614 486The carrying value of the Group’s financial assets and liabilities measured at amortised cost are assessed to be a reasonable approximation of fair value.Other receivables and receivables from associated companiesOther receivables and receivables from associated companies fall due within one year in both 2022 and 2021, and amount to 80 MEUR (2021: 98 MEUR).CommentsThe Group’s net sales and expenditures will be subject to exchange rate fluctuations on translation into EUR. A sensitivity analysis is made for the Group’s result and equity based on the underlying currency transactions.The financial instruments included in the sensitivity analysis are cash, receivables, payables, current liabilities and financial investments without taking hedging into consideration. The result of the sensitivity analysis cannot be directly transferred to the fluctuations on translating the financial result and equity of subsidiariesinto EUR.The impact on the net sales of the difference between average rate and year-end rate amounts to 50 MEUR(2021: 27 MEUR) for the five most exposed currencies(USD, RUB, CAD, PLN, and GBP), which is a change of-1.3 percent (2021: 0.9 percent).The Group’s policy is not to hedge exchange rate risks in long-term investments in subsidiaries. When relevant,external investment loans and Group loans are, as ageneral rule, established in the local currency of the company involved, while cash at bank and in hand areplaced in local currency.In the few countries with ineffective financial markets loans can be raised and surplus liquidity placed in DKK or EUR, subject to the approval of the Group’s finance function. Most Group loans that are not establishedin DKK or EUR, are hedged via forward agreements,currency loans and cash pools or via the SWAP market.Interest rate riskCurrently the Group does not have any significant non-current interest-bearing debt or assets. The Group’s policy is that necessary financing of investments shouldprimarily be affected by raising five to seven year loansat fixed or variable interest rates.Drawings on credit facilities at variable interest ratesgenerally match the funds, and all Group loans aresymmetrical in terms of interest rates. Consequently,changes in interest rates will not have a significant effecton the result of the Group.Sensitivity analysisEffect in MEUR EBITDA5% change in exchange rate 2022 2021USD (+/-) 10 10RUB (+/-) 6 7CAD (+/-) 4 3PLN (+/-) 1 1GBP (+/-) 8 7Equity5% change in exchange rate 2022 2021USD (+/-) 14 14RUB (+/-) 18 12CAD (+/-) 12 11PLN (+/-) 13 12GBP (+/-) 11 10Liquidity riskThe current surplus and deficit liquidity in the Group’s companies is set off, to the extent that this is profitable,via the parent company acting as intra-Group bank andvia cash pool systems. When considered appropriate,underlying cash pool systems are established in foreigncompanies.To the extent that the financial reserves are of an appropriate size, the parent company also acts as lenderto the companies in the Group.To ensure adequate financial reserves as defined by the Board of Directors, investment loans can be raised ona continuous basis to partly cover new investments andto refinance existing loans. The parent company has made guarantees for some credit facilities and loans. The parent company has issued ownership clauses and/or deed of postponements in connection with intercompany loans.The parent company ensures on an ongoing basis that flexible, unutilised committed credit facilities of an adequate size are established with Investment Grade credit-rated banks. The Group’s financial reserves also consist of cash at bank and in hand, and unusedoverdraft facilities.Credit riskDue to the considerable customer spread in terms ofgeographical location and numbers, the credit riskis fundamentally limited. To a minor degree, when considered necessary, insurance or bank guarantees areused to hedge outstanding receivables.As a consequence of the international diversification ofthe Group’s activities there are business relations with a number of different banks in Europe, North America and Asia. To minimise the credit risk on placement of funds and on entering into agreements on derived financial instruments, only major, financially sound institutions are used.Customer credit risks are assessed considering thefinancial position, past experience and other factors.Individual risk limits are set based on internal and external ratings. For impairment of trade receivable andthe maximum credit risk, please refer to note 4.2.Financial instrumentsFinancial assets and liabilities at fair value are relatedto foreign exchange rate forward contracts, foreignexchange rate swaps or interest rate swaps all of whichhave been valued using a valuation technique with market observable inputs (level 2). The Group is using no other valuation technique. TheGroup enters into derivative financial instruments withfinancial institutions.Derivatives valued using valuation techniques withmarket observable inputs are mainly foreign exchangeforward contracts. The most frequently applied valuationtechniques include forward pricing models using presentvalue calculations. The models incorporate variousinputs including the credit quality of counterparties andforeign exchange spot rates. 5.2 Financial risks and instrumentsAccounting policiesDerivative financial instruments are initially recognised in the balance sheet at cost price and are subsequently measured at fair value. Derivative financial instruments are recognised in other receivables and other payables. Changes to the fair value of derivative financial instruments, which meet the conditions for hedging the fair value of a recognised asset or liability, are recognised in the income statement together with any changes in the fair value of the hedged asset or liability.Changes to the fair value of derivative financial instruments, which meet the conditions for hedging future cash flow, are recognised in other comprehensive income provided the hedge has been effective. Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness assessments to ensure that an economic relationship exists between the hedged item andhedging instrument. The accumulated value adjustmentrelated to these hedge transactions is transferred fromother comprehensive income when the position is realised, and is included in the value of the hedged position e.g. the adjustment follows the cash flow.For derivative financial instruments, which do not qualify as hedging instruments, changes to the fair value are recognised on an ongoing basis in the income statement as financial income or financial expenses.CommentsAs a consequence of ROCKWOOL Group’s extensive international activities, the Group’s income statement and equity are subject to a number of financial risks. TheGroup manages these risks in the following categories:– Exchange rate risk– Interest rate risk– Liquidity risk– Credit riskThe Group’s policy is to identify and hedge significant financial risks on an ongoing basis. This is theresponsibility of the individual companies in whichfinancial risks might arise and overall supported bythe Group’s treasury department. The parent company continuously monitors the Group’s financial risks in accordance with a framework determined by GroupManagement and/or the Board of Directors.Exchange rate riskAs a consequence of the Group’s structure, net sales and expenditure in foreign currency are to a significantdegree set off against each other, so that the Group is not exposed to major exchange rate risks.Commercial exchange rate risks in the companies, whichcannot be set off are hedged on a continuous basis, tothe extent that they may significantly affect the resultsof the individual company in a negative direction,using currency loans, currency deposits and/or financialderivatives. Exchange rate risks are hedged in theindividual companies. The Group’s hedging reserve is disclosed under “Statement of changes in equity” withan insignificant amount.Categories of financial assets and liabilitiesMEUR 2022 2021Financial assets:Financial instruments for hedging of future cash flows1 -Financial assets at fair value through other comprehensive income1 -Trade receivables347 307Other receivables and receivables from associated companies80 98Cash209 166Financial assets at amortised costs636 571Financial liabilities:Fair value hedges- -Financial liabilities at fair value through income statement- -Financial instruments for hedging of future cash flows3 1Financial liabilities at fair value through other comprehensive income3 1Bank loans and other loans including short-term portion141 26Bank debt7 1Trade payables270 283Other payables196 176Financial liabilities at amortised costs614 486The carrying value of the Group’s financial assets and liabilities measured at amortised cost are assessed to be a reasonable approximation of fair value.Other receivables and receivables from associated companiesOther receivables and receivables from associated companies fall due within one year in both 2022 and 2021, and amount to 80 MEUR (2021: 98 MEUR).CommentsThe Group’s net sales and expenditures will be subject to exchange rate fluctuations on translation into EUR. A sensitivity analysis is made for the Group’s result and equity based on the underlying currency transactions.The financial instruments included in the sensitivity analysis are cash, receivables, payables, current liabilities and financial investments without taking hedging into consideration. The result of the sensitivity analysis cannot be directly transferred to the fluctuations on translating the financial result and equity of subsidiariesinto EUR.The impact on the net sales of the difference between average rate and year-end rate amounts to 50 MEUR(2021: 27 MEUR) for the five most exposed currencies(USD, RUB, CAD, PLN, and GBP), which is a change of-1.3 percent (2021: 0.9 percent).The Group’s policy is not to hedge exchange rate risks in long-term investments in subsidiaries. When relevant,external investment loans and Group loans are, as ageneral rule, established in the local currency of the company involved, while cash at bank and in hand areplaced in local currency.In the few countries with ineffective financial markets loans can be raised and surplus liquidity placed in DKK or EUR, subject to the approval of the Group’s finance function. Most Group loans that are not establishedin DKK or EUR, are hedged via forward agreements,currency loans and cash pools or via the SWAP market.Interest rate riskCurrently the Group does not have any significant non-current interest-bearing debt or assets. The Group’s policy is that necessary financing of investments shouldprimarily be affected by raising five to seven year loansat fixed or variable interest rates.Drawings on credit facilities at variable interest ratesgenerally match the funds, and all Group loans aresymmetrical in terms of interest rates. Consequently,changes in interest rates will not have a significant effecton the result of the Group.Sensitivity analysisEffect in MEUR EBITDA5% change in exchange rate 2022 2021USD (+/-) 10 10RUB (+/-) 6 7CAD (+/-) 4 3PLN (+/-) 1 1GBP (+/-) 8 7Equity5% change in exchange rate 2022 2021USD (+/-) 14 14RUB (+/-) 18 12CAD (+/-) 12 11PLN (+/-) 13 12GBP (+/-) 11 10Liquidity riskThe current surplus and deficit liquidity in the Group’s companies is set off, to the extent that this is profitable,via the parent company acting as intra-Group bank andvia cash pool systems. When considered appropriate,underlying cash pool systems are established in foreigncompanies.To the extent that the financial reserves are of an appropriate size, the parent company also acts as lenderto the companies in the Group.To ensure adequate financial reserves as defined by the Board of Directors, investment loans can be raised ona continuous basis to partly cover new investments andto refinance existing loans. The parent company has made guarantees for some credit facilities and loans. The parent company has issued ownership clauses and/or deed of postponements in connection with intercompany loans.The parent company ensures on an ongoing basis that flexible, unutilised committed credit facilities of an adequate size are established with Investment Grade credit-rated banks. The Group’s financial reserves also consist of cash at bank and in hand, and unusedoverdraft facilities.Credit riskDue to the considerable customer spread in terms ofgeographical location and numbers, the credit riskis fundamentally limited. To a minor degree, when considered necessary, insurance or bank guarantees areused to hedge outstanding receivables.As a consequence of the international diversification ofthe Group’s activities there are business relations with a number of different banks in Europe, North America and Asia. To minimise the credit risk on placement of funds and on entering into agreements on derived financial instruments, only major, financially sound institutions are used.Customer credit risks are assessed considering thefinancial position, past experience and other factors.Individual risk limits are set based on internal and external ratings. For impairment of trade receivable andthe maximum credit risk, please refer to note 4.2.Financial instrumentsFinancial assets and liabilities at fair value are relatedto foreign exchange rate forward contracts, foreignexchange rate swaps or interest rate swaps all of whichhave been valued using a valuation technique with market observable inputs (level 2). The Group is using no other valuation technique. TheGroup enters into derivative financial instruments withfinancial institutions.Derivatives valued using valuation techniques withmarket observable inputs are mainly foreign exchangeforward contracts. The most frequently applied valuationtechniques include forward pricing models using presentvalue calculations. The models incorporate variousinputs including the credit quality of counterparties andforeign exchange spot rates. The current surplus and deficit liquidity in the Group’s companies is set off, to the extent that this is profitable,via the parent company acting as intra-Group bank andvia cash pool systems. When considered appropriate,underlying cash pool systems are established in foreigncompanies.To the extent that the financial reserves are of an appropriate size, the parent company also acts as lenderto the companies in the Group.To ensure adequate financial reserves as defined by the Board of Directors, investment loans can be raised ona continuous basis to partly cover new investments andto refinance existing loans. The parent company has made guarantees for some credit facilities and loans. The parent company has issued ownership clauses and/or deed of postponements in connection with intercompany loans.The parent company ensures on an ongoing basis that flexible, unutilised committed credit facilities of an adequate size are established with Investment Grade credit-rated banks. The Group’s financial reserves also consist of cash at bank and in hand, and unusedoverdraft facilities. Financial instrumentsFinancial assets and liabilities at fair value are relatedto foreign exchange rate forward contracts, foreignexchange rate swaps or interest rate swaps all of whichhave been valued using a valuation technique with market observable inputs (level 2). The Group is using no other valuation technique. TheGroup enters into derivative financial instruments withfinancial institutions.Derivatives valued using valuation techniques withmarket observable inputs are mainly foreign exchangeforward contracts. The most frequently applied valuationtechniques include forward pricing models using presentvalue calculations. The models incorporate variousinputs including the credit quality of counterparties andforeign exchange spot rates. 5.3 CashCashMEUR 2022 2021Cash 209 166Bank debt 7 1Cash 31/12 202 165 5.4 LoansBank loans are measured at amortised cost. The carrying amount for these approximates fair value.Bank loans amounted to 141 MEUR at 31 December2022. The loans are to be fully repaid within three years,of which the majority are due within one year. The loans are fixed interest loans, and are denominated in EURand CNY.In 2021, bank loans amounted to 26 MEUR. The loanswere fixed interest loans, were to be fully repaid withinthree years, and were denominated in EUR and CNY. Bank loans are measured at amortised cost. The carrying amount for these approximates fair value. 5.5 Own sharesAccounting policiesROCKWOOL A/S has a reserve of own shares recognised in retained earnings. The shares are bought back to meet obligations under the Group's equity-basedstock option and restricted share unit programmes and as part of the Group's share buy-back programme.Own sharesEUR 2022 2021Average % of Average % of Number purchase/ share Number purchase/ share A-sharesof sharessales pricecapitalof sharessales pricecapitalOwn shares 1/1 - - 76 069 0.4Purchase - - - - - -Cancellation of shares - - - 76 069 - 0.4Own shares 31/12 - - - -B-sharesOwn shares 1/1 56 228 0.3 327 843 1.4Purchase 5 000 314 0.0 18 630 330 0.1Cancellation of shares - - 278 145 1.2Sale 13 371 103 0.1 12 100 114 0.0Own shares 31/12 47 857 0.2 56 228 0.3Own shares are used to hedge the Group’s stock option and restricted share unit programmes and as part of the Group's share buy-back programme. Own shares are purchased based on authorisation from the General Assembly. ROCKWOOL A/S has a reserve of own shares recognised in retained earnings. The shares are bought back to meet obligations under the Group's equity-basedstock option and restricted share unit programmes and as part of the Group's share buy-back programme. 5.6 Share capitalCommentsEach A share of a nominal value of 10 DKK (1.3 EUR) carries 10 votes, and each B share of a nominal value of 10 DKK (1.3 EUR) carries one vote.The Annual General Meeting of ROCKWOOL A/S on 6 April 2022 adopted the board of directors' proposal for amendments to the articles of associations regarding the opportunity to convert on a voluntary basis A shares toB shares in a ratio of 1:1. The conversions for 2022 werecompleted on 15 December 2022 and the company'sarticles of association were updated with the resultingchanges to the size of the company's A- and B sharecapital.The Annual General Meeting of ROCKWOOL A/S on 7 April2021 adopted the proposal to reduce the Company’s share capital from nominally 219 749 230 DKK to nominally 216 207090 DKK by cancellation of the Company’s own shares.The share capital has been fully paid up. No shareholderis under an obligation to allow his shares to be redeemedwhether in whole or in part. The shares are negotiableinstruments, and all shares shall be freely transferable.Share capitalMEUR 2022 2021A shares - 10 906 522 shares of 10 DKK each (1.3 EUR) 15B shares - 10 714 187 shares of 10 DKK each (1.3 EUR) 14A shares - 11 155 558 shares of 10 DKK each (1.3 EUR) 15B shares - 10 465 151 shares of 10 DKK each (1.3 EUR) 14Share capital 29 29 5.7 Earnings per shareEarnings per shareMEUR 2022 2021Profit for the year attributable to shareholders of ROCKWOOL A/S 273 303Average number of shares ('000) 21 621 21 744Average number of own shares ('000) 54 177Average number of outstanding shares ('000) 21 567 21 567Dilution effect of stock options ('000) 42 49Average number of diluted shares ('000) 21 609 21 616Earnings per share 12.7 14.1Earnings per share, diluted 12.6 14.0 The parent company is taxed jointly with all Danish subsidiaries. Income subject to joint taxation is fully distributed. Tax on profit for the year, which includes current tax on profit for the year and changes to deferred tax, is recognised in the income statement. Tax on changes in other comprehensive income is recognised directly under other comprehensive income.Provisions for deferred tax are calculated on all temporary differences between accounting and taxable values, calculated using the balance-sheet liability method.Deferred tax provisions are also made to cover the re-taxation of losses in jointly taxed foreign companies previously included in the Danish joint taxation.Companies within the Group may be entitled to claimspecial tax deductions for investments in qualifyingassets or in relation to qualifying expenditure. The Groupaccounts for such allowances as tax credits. Consequently, the allowance reduces income tax payables and current tax expense. A deferred tax asset is recognised for unclaimed tax credits that are carried forward.Deferred tax assets are recognised when it is probable thatthe assets will reduce tax payments in coming years andthey are assessed at the expected net realisable value.Deferred tax is stated according to current tax regulations.Changes in deferred tax as a consequence of changes intax rates are recognised in the income statement. The parent company is taxed jointly with all Danish subsidiaries. Income subject to joint taxation is fully distributed. Tax on profit for the year, which includes current tax on profit for the year and changes to deferred tax, is recognised in the income statement. Tax on changes in other comprehensive income is recognised directly under other comprehensive income.Provisions for deferred tax are calculated on all temporary differences between accounting and taxable values, calculated using the balance-sheet liability method.Deferred tax provisions are also made to cover the re-taxation of losses in jointly taxed foreign companies previously included in the Danish joint taxation.Companies within the Group may be entitled to claimspecial tax deductions for investments in qualifyingassets or in relation to qualifying expenditure. The Groupaccounts for such allowances as tax credits. Consequently, the allowance reduces income tax payables and current tax expense. A deferred tax asset is recognised for unclaimed tax credits that are carried forward.Deferred tax assets are recognised when it is probable thatthe assets will reduce tax payments in coming years andthey are assessed at the expected net realisable value.Deferred tax is stated according to current tax regulations.Changes in deferred tax as a consequence of changes intax rates are recognised in the income statement. Income tax receivable and payableMEUR 2022 2021Income tax receivable and payable 1/1 -13 -13Exchange rate adjustments 3 -2Current tax for the year including withholding taxes 85 88Payments during the year -76 -85Adjustment in respect of prior years -1 -1Current tax for the year recognised in other comprehensive income 1 -Income tax receivable and payable 31/12 -1 -13Income tax is recognised as follows:Income tax receivable 27 39Income tax payable 26 26Income tax receivable and payable 31/12 --1 -13 6.1 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _23"/>axAccounting policiesThe parent company is taxed jointly with all Danish subsidiaries. Income subject to joint taxation is fully distributed. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>ax on profit for the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>, which includes current tax on pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ofit for the year and changes to deferred tax, is r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ecognised in the income statement. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>ax on changes in other comprehensive income is recognised dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ectly under other comprehensive income.Provisions for deferr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ed tax are calculated on all temporary differ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ences between accounting and taxable values, calculated using the balance-sheet liability method.Deferred tax pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ovisions are also made to cover the re-taxation of losses in jointly taxed for<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>eign companies previously included in the Danish joint taxation.Companies within the Group may be entitled to claimspecial tax deductions for investments in qualifyingassets or in relation to qualifying expenditure. The Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oupaccounts for such allowances as tax credits. Consequently, the allowance reduces income tax payables and curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ent tax expense. A deferred tax asset is r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ecognised for unclaimed tax credits that ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e carried forward.Deferred tax assets ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e recognised when it is probable thatthe assets will reduce tax payments in coming years andthey are assessed at the expected net r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ealisable value.Deferred tax is stated accor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ding to current tax regulations.Changes in deferred tax as a consequence of changes intax rates are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ecognised in the income statement.T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>ax on profit for the yearMEUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17b"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff1 fc2 ls3f ws2e">2022<span class="_ _fa"> </span>2021</span>Current tax for the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _120"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">85<span class="_ _10d"> </span>86</span>Change in deferred tax<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d0"> </span>6<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>4Adjustment to valuation of tax assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _20e"> </span>-3<span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span>-1Withholding taxes<span xmlns="http://www.w3.org/1999/xhtml" class="_ _138"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>2Adjustment in current and deferred tax in pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evious years<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">-3<span class="_ _74"> </span>-1</span>T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>ax on profit for the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _20f"> </span>85<span xmlns="http://www.w3.org/1999/xhtml" class="_ _116"> </span>90Reconciliation of effective tax rate%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _210"> </span>2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fa"> </span>2021Danish tax rate<span xmlns="http://www.w3.org/1999/xhtml" class="_ _211"> </span>22.0<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d5"> </span>22.0Deviation in non-Danish subsidiaries' tax compared to Danish tax percentage<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e3"> </span>0.6<span xmlns="http://www.w3.org/1999/xhtml" class="_ _189"> </span>1.4Withholding tax adjustment<span xmlns="http://www.w3.org/1999/xhtml" class="_ _212"> </span>0.0<span xmlns="http://www.w3.org/1999/xhtml" class="_ _189"> </span>0.5Permanent differences<span xmlns="http://www.w3.org/1999/xhtml" class="_ _213"> </span>1.8<span xmlns="http://www.w3.org/1999/xhtml" class="_ _189"> </span>0.0Effect on change in income tax rates<span xmlns="http://www.w3.org/1999/xhtml" class="_ _214"> </span>0.2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7d"> </span>-0.4Adjustment to valuation of tax assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _215"> </span>-0.8<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7d"> </span>-0.3Initial recognition of tax credit<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e1"> </span>0.0<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7d"> </span>-0.2Other deviations<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e3"> </span>-0.1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span>0.0Effective tax rate (%)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1f8"> </span>23.7<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span>23.0Income tax receivable and payableMEUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17b"> </span>2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fa"> </span>2021Income tax receivable and payable 1/1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _216"> </span>-13<span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span>-13Exchange rate adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ce"> </span>3<span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span>-2Current tax for the year including withholding taxes<span xmlns="http://www.w3.org/1999/xhtml" class="_ _217"> </span>85<span xmlns="http://www.w3.org/1999/xhtml" class="_ _13"> </span>88Payments during the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _144"> </span>-76<span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span>-85Adjustment in respect of prior years<span xmlns="http://www.w3.org/1999/xhtml" class="_ _108"> </span>-1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span>-1Current tax for the year recognised in other compr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ehensive income<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e9"> </span>1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _110"> </span>-Income tax receivable and payable 31/12<span xmlns="http://www.w3.org/1999/xhtml" class="_ _218"> </span>-1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _99"> </span>-13Income tax is recognised as follows:Income tax receivable<span xmlns="http://www.w3.org/1999/xhtml" class="_ _219"> </span>27<span xmlns="http://www.w3.org/1999/xhtml" class="_ _13"> </span>39Income tax payable<span xmlns="http://www.w3.org/1999/xhtml" class="_ _137"> </span>26<span xmlns="http://www.w3.org/1999/xhtml" class="_ _10d"> </span>26Income tax receivable and payable 31/12<span xmlns="http://www.w3.org/1999/xhtml" class="_ _21a"> </span>--1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _99"> </span>-13Critical estimates and judgementsWhile conducting business globally, transfer pricing disputes, etc. with tax authorities may occur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>, and Management judgement is applied to assess the possible outcome of such disputes. The most probable outcome is used as the measurement method, and Management believes that the provision made for uncertain tax positions not yet settled with local taxauthorities is adequate. However<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>, the actual obligation may deviate and is dependent on the result of litigations and settlements with the relevant tax authorities.The Group is subject to income taxes in numer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ous jurisdictions. Significant estimates is required in<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> determining provision for uncertain tax positions or therecognition of a deferr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ed tax asset.A tax asset is recognised if it is assessed that the asset can be utilised in a foreseeable futur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e based on strong indications that sufficient future pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofits are available to absorb the temporary differ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ences including the Group'sfuture tax planning.The valuation of tax assets related to losses carriedforward is done on a yearly basis and is based onexpected positive taxable income within the next 3-5years.CommentsT<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>ax assets not recognised amount to 16 MEUR (2021: 21 MEUR). The tax assets have not been recognised as they have arisen in subsidiaries that have been loss-makingfor some time and there is no evidence of r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ecoverability in the near future.Deferred tax assets and liabilities are of<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>fset in theconsolidated balance sheet if the Group has a legally enforceable right to set of<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>f and the deferred taxassets and liabilities relate to the same legal taxentity consolidation. Of the total deferred tax assetsrecognised, 20 MEUR (2021: 3 MEUR) r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>elate to tax loss carry forwards.Deferred taxMEUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17b"> </span>2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fa"> </span>2021Deferred tax, net 1/1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c9"> </span>-1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c6"> </span>-7Exchange rate adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ce"> </span>3<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>1Change in deferred tax r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ecognised in profit and loss<span xmlns="http://www.w3.org/1999/xhtml" class="_ _ea"> </span>4<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>4Adjustment to valuation of tax assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _20e"> </span>-3<span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span>-1Deferred tax for the year recognised in other compr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ehensive income for the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e3"> </span>4<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>2Deferred tax, net 31/12<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fc"> </span>7<span xmlns="http://www.w3.org/1999/xhtml" class="_ _78"> </span>-1Deferred tax is r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>ecognised in the balance sheet as follows:Deferred tax assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _109"> </span>48<span xmlns="http://www.w3.org/1999/xhtml" class="_ _10d"> </span>52Deferred tax liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _219"> </span>55<span xmlns="http://www.w3.org/1999/xhtml" class="_ _13"> </span>51Deferred tax, net 31/12<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fc"> </span>7<span xmlns="http://www.w3.org/1999/xhtml" class="_ _78"> </span>-1Deferred tax r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>elates to:Non-current assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _21b"> </span>44<span xmlns="http://www.w3.org/1999/xhtml" class="_ _13"> </span>20Current assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _21c"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>1Non-current liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _119"> </span>-7<span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span>-12Current liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _146"> </span>-14<span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span>-11T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>ax loss carried forward<span xmlns="http://www.w3.org/1999/xhtml" class="_ _117"> </span>-20<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c6"> </span>-3Re-taxable amounts<span xmlns="http://www.w3.org/1999/xhtml" class="_ _21b"> </span>4<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>4Deferred tax, net 31/12<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fc"> </span>7<span xmlns="http://www.w3.org/1999/xhtml" class="_ _78"> </span>-1Unrecognised tax assets expir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>e as followsMEUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17b"> </span>2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fa"> </span>2021&lt; 1 year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _21d"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c6"> </span> 11-5 years<span xmlns="http://www.w3.org/1999/xhtml" class="_ _21e"> </span>4<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>5&gt; 5 years<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18c"> </span>12<span xmlns="http://www.w3.org/1999/xhtml" class="_ _10d"> </span>13Do not expire<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1af"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>2Unrecognised tax assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c5"> </span>16<span xmlns="http://www.w3.org/1999/xhtml" class="_ _116"> </span>21 The Group is subject to income taxes in numerous jurisdictions. Significant estimates is required in determining provision for uncertain tax positions or therecognition of a deferred tax asset.A tax asset is recognised if it is assessed that the asset can be utilised in a foreseeable future based on strong indications that sufficient future profits are available to absorb the temporary differences including the Group'sfuture tax planning.The valuation of tax assets related to losses carriedforward is done on a yearly basis and is based onexpected positive taxable income within the next 3-5years.CommentsTax assets not recognised amount to 16 MEUR (2021: 21 MEUR). The tax assets have not been recognised as they have arisen in subsidiaries that have been loss-makingfor some time and there is no evidence of recoverability in the near future.Deferred tax assets and liabilities are offset in theconsolidated balance sheet if the Group has a legally enforceable right to set off and the deferred taxassets and liabilities relate to the same legal taxentity consolidation. Of the total deferred tax assetsrecognised, 20 MEUR (2021: 3 MEUR) relate to tax loss carry forwards.Deferred taxMEUR 2022 2021Deferred tax, net 1/1 -1 -7Exchange rate adjustments 3 1Change in deferred tax recognised in profit and loss 4 4Adjustment to valuation of tax assets -3 -1Deferred tax for the year recognised in other comprehensive income for the year 4 2Deferred tax, net 31/12 7 -1Deferred tax is recognised in the balance sheet as follows:Deferred tax assets 48 52Deferred tax liabilities 55 51Deferred tax, net 31/12 7 -1Deferred tax relates to:Non-current assets 44 20Current assets - 1Non-current liabilities -7 -12Current liabilities -14 -11Tax loss carried forward -20 -3Re-taxable amounts 4 4Deferred tax, net 31/12 7 -1 6.2 Commitments and contingent liabilitiesAccounting policiesProvisions for legal proceedings are recognised if they are certain or probable at the balance sheet date, and if the size of the liability can be measured on a reliable basis. Legal proceedings for which no reliable estimate can be made are disclosed as contingent liabilities.CommentsFor the Group, commitments comprise 31 MEUR (2021:26 MEUR), which mainly relates to a number of long-term supply agreements and one conditional tangible asset purchase obligation. Contingent liabilities amount to 6 MEUR (2021: 6 MEUR). Contractual obligations for purchase of tangible assets are mentioned in note 3.2.The Group is engaged in a few legal proceedings. It isexpected that the outcome of these legal proceedings will not impact the Group’s financial position in excess of what has been provided for in the balance sheet as at31 December 2022 (as well as at 31 December 2021). Provisions for legal proceedings are recognised if they are certain or probable at the balance sheet date, and if the size of the liability can be measured on a reliable basis. Legal proceedings for which no reliable estimate can be made are disclosed as contingent liabilities. 6.4 Auditor’s feeCommentsFees for services in addition to the statutory auditof the financial statements which were providedby the statutory auditor PricewaterhouseCoopersStatsautoriseret Revisionspartnerselskab to the Groupamounted to less than 1 MEUR in both 2022 and 2021.Services in addition to the statutory audit of the financialstatements comprise general consultancy services.ROCKWOOL's policy is to follow the 70 percentfee cap restriction on non-audit services providedby PricewaterhouseCoopers StatsautoriseretRevisionspartnerselskab, Denmark, the auditorof the parent company. PricewaterhouseCoopersStatsautoriseret Revisionspartnerselskab complies withthe 70 percent fee cap restriction in 2022 and 2021.Fees to auditors elected atthe Annual General MeetingMEUR 2022 2021Statutory audit 2 1Other opinions - -Tax consultancy - -Other services - 1Fees to auditors 2 2 6.5 Events after the reporting dateWe are not aware of events subsequent to 31 December2022, which are expected to have a material impact onthe Group’s financial position. Associated companiesAKUART A/S Denmark 20RESO SA France 20ScanArc Plasma Technologies AB Sweden 34 6.6 Group companiesParent companyROCKWOOL A/S% Shares Subsidiaries<span xmlns="http://www.w3.org/1999/xhtml" class="_ _220"> </span>CountryownedROCKWOOL Handelsgesellschaft m.b.H.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _221"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Austria<span class="_ _2b"> </span>100</span>Etablissements Charles Wille et cie SA<span xmlns="http://www.w3.org/1999/xhtml" class="_ _204"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Belgium<span class="_ _30"> </span>100</span>ROCKWOOL Belgium N.V<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _222"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Belgium<span class="_ _2b"> </span>100</span>ROCKWOOL Bulgaria EooD<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e5"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Bulgaria<span class="_ _2b"> </span>100</span>ROXUL Inc.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _223"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Canada<span class="_ _2b"> </span>100</span>Chicago Metallic (Shenzhen) Co. Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _15a"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">China<span class="_ _2b"> </span>100</span>ROCKWOOL Firesafe Insulation (Guangdong) Co. Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _19b"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">China<span class="_ _2b"> </span>100</span>ROCKWOOL Firesafe Insulation (Jiangsu) Co., Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">China<span class="_ _2b"> </span>100</span>ROCKWOOL Adriatic d.o.o.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Croatia<span class="_ _2b"> </span>100</span>ROCKWOOL a.s.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9e"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f">Czech Republic<span class="_ _2b"> </span><span class="ws2e">100</span></span>ROCKWOOL Danmark A/S<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Denmark<span class="_ _2b"> </span>100</span>T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>ripplex ApS<span xmlns="http://www.w3.org/1999/xhtml" class="_ _13c"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Denmark<span class="_ _2b"> </span>100</span>ROCKWOOL EE OÜ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Estonia<span class="_ _30"> </span>100</span>ROCKWOOL Finland OY<span xmlns="http://www.w3.org/1999/xhtml" class="_ _224"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Finland<span class="_ _2b"> </span>100</span>ROCKWOOL France S.A.S<span xmlns="http://www.w3.org/1999/xhtml" class="_ _133"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">France<span class="_ _30"> </span>100</span>Deutsche ROCKWOOL GmbH &amp; Co. KG<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1aa"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Ger<span class="_ _3"/>many<span class="_ _2b"> </span>100</span>HECK W<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>all Systems GmbH<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Ger<span class="_ _3"/>many<span class="_ _30"> </span>100</span>ROCKWOOL Beteiligungs GmbH<span xmlns="http://www.w3.org/1999/xhtml" class="_ _225"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Germany<span class="_ _2b"> </span>100</span>ROCKWOOL Mineralwolle GmbH Flechtingen<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c2"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Germany<span class="_ _2b"> </span>100</span>ROCKWOOL Operations GmbH &amp; Co. KG<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c8"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Ger<span class="_ _3"/>many<span class="_ _30"> </span>100</span>ROCKWOOL Rockfon GmbH<span xmlns="http://www.w3.org/1999/xhtml" class="_ _226"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Germany<span class="_ _2b"> </span>100</span>ROCKWOOL V<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>erwaltungs GmbH<span xmlns="http://www.w3.org/1999/xhtml" class="_ _227"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Germany<span class="_ _2b"> </span>100</span>ROCKWOOL Building Materials Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _15"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f">Hong Kong<span class="_ _2b"> </span><span class="ws2e">100</span></span>ROCKWOOL Hungary Kft.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18f"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Hungary<span class="_ _2b"> </span>100</span>% Shares Subsidiaries<span xmlns="http://www.w3.org/1999/xhtml" class="_ _220"> </span>CountryownedROXUL ROCKWOOL Insulation India Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _204"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">India<span class="_ _30"> </span>100</span>ROXUL ROCKWOOL T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>echnical Insulation India Pvt. Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _93"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">India<span class="_ _30"> </span>100</span>ROCKWOOL Italia S.p.A.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _228"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Italy<span class="_ _2b"> </span>100</span>ROCKWOOL Japan LLC<span xmlns="http://www.w3.org/1999/xhtml" class="_ _229"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Japan<span class="_ _2b"> </span>100</span>ROCKWOOL Korea Co. Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _22a"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Korea<span class="_ _30"> </span>100</span>SIA ROCKWOOL<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1f6"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Latvia<span class="_ _2b"> </span>100</span>ROCKWOOL UAB<span xmlns="http://www.w3.org/1999/xhtml" class="_ _ed"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Lithuania<span class="_ _2b"> </span>100</span>Chicago Metallic (Malaysia) Sdn. Bhd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _45"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Malaysia<span class="_ _30"> </span>100</span>ROCKWOOL Malaysia Sdn. Bhd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _22b"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Malaysia<span class="_ _2b"> </span>100</span>CMC Productos Perlitas S de R.L. de C.V<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1db"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Mexico<span class="_ _2b"> </span>100</span>Servicios Pearl de Mexico S de R.L. de C.V<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _22c"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Mexico<span class="_ _2b"> </span>100</span>AS ROCKWOOL<span xmlns="http://www.w3.org/1999/xhtml" class="_ _22d"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Norway<span class="_ _2b"> </span>100</span>F<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>AST Sp. z o.o.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span>Poland<span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span>100ROCKWOOL Global Business Service Center Sp. z.o.o.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span>Poland<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2b"> </span>100ROCKWOOL Polska Sp. z o.o.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _22e"> </span>Poland<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2b"> </span>100ROCKWOOL Romania s.r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>.l.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span> Romania<span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span>100LLC ROCKWOOL<span xmlns="http://www.w3.org/1999/xhtml" class="_ _186"> </span>Russia<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2b"> </span>100LLC ROCKWOOL-NORTH<span xmlns="http://www.w3.org/1999/xhtml" class="_ _cd"> </span>Russia<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2b"> </span>100LLC ROCKWOOL-Ural<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18e"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Russia<span class="_ _2b"> </span>100</span>LLC ROCKWOOL-VOLGA<span xmlns="http://www.w3.org/1999/xhtml" class="_ _224"> </span>Russia<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2b"> </span>100ROCKWOOL Building Materials (Singapore) Pte Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7d"> </span>Singapore<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2b"> </span>100ROCKWOOL Slovensko s.r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>.o.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _22e"> </span>Slovakia<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2b"> </span>100ROCKWOOL Peninsular S.A.U.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1fd"> </span>Spain<span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span>100ROCKWOOL AB<span xmlns="http://www.w3.org/1999/xhtml" class="_ _22f"> </span>Sweden<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2b"> </span>100% SharesSubsidiaries<span xmlns="http://www.w3.org/1999/xhtml" class="_ _220"> </span>CountryownedFlumroc AG<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1f6"> </span>Switzerland<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2b"> </span>100Meilco Holding AG<span xmlns="http://www.w3.org/1999/xhtml" class="_ _43"> </span>Switzerland<span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span>100P<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>AMAG Engineering AG<span xmlns="http://www.w3.org/1999/xhtml" class="_ _230"> </span>Switzerland<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2b"> </span>100ROCKWOOL GmbH<span xmlns="http://www.w3.org/1999/xhtml" class="_ _195"> </span>Switzerland<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2b"> </span>100ROCKWOOL (Thailand) Limited<span xmlns="http://www.w3.org/1999/xhtml" class="_ _231"> </span>Thailand<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2b"> </span>100Breda Confectie B.V<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span>the Netherlands<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2b"> </span>100ROCKWOOL B.V<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1f2"> </span>the Netherlands<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2b"> </span>100ROCKWOOL Insaat ve Y<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>al<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>itim Sistemleri San. V<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e Tic. Ltd. Sti.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _189"> </span>T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>urkey<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2b"> </span>100LLC ROCKWOOL Ukraine<span xmlns="http://www.w3.org/1999/xhtml" class="_ _232"> </span>Ukraine<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2b"> </span>100ROCKWOOL Middle East FZE<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18f"> </span>UAE<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2b"> </span>100ROCKWOOL Limited<span xmlns="http://www.w3.org/1999/xhtml" class="_ _226"> </span>United Kingdom<span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span>100ROXUL USA Inc.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _233"> </span>United States<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2b"> </span>100A<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ssociated companiesAKUART A/S<span xmlns="http://www.w3.org/1999/xhtml" class="_ _186"> </span>Denmark<span xmlns="http://www.w3.org/1999/xhtml" class="_ _ac"> </span>20RESO SA<span xmlns="http://www.w3.org/1999/xhtml" class="_ _49"> </span>France<span xmlns="http://www.w3.org/1999/xhtml" class="_ _174"> </span>20ScanArc Plasma T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>echnologies AB<span xmlns="http://www.w3.org/1999/xhtml" class="_ _af"> </span>Sweden<span xmlns="http://www.w3.org/1999/xhtml" class="_ _ac"> </span>34The German subsidiaries DEUTSCHE ROCKWOOL GmbH &amp; Co. KG andROCKWOOL Operations GmbH &amp; Co. KG, which have legal form of partnership,make use of the exemptions provided by section 264b of the GermanCommercial Code (HGB) 6.6 Group companiesParent companyROCKWOOL A/S% Shares Subsidiaries<span xmlns="http://www.w3.org/1999/xhtml" class="_ _220"> </span>CountryownedROCKWOOL Handelsgesellschaft m.b.H.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _221"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Austria<span class="_ _2b"> </span>100</span>Etablissements Charles Wille et cie SA<span xmlns="http://www.w3.org/1999/xhtml" class="_ _204"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Belgium<span class="_ _30"> </span>100</span>ROCKWOOL Belgium N.V<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _222"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Belgium<span class="_ _2b"> </span>100</span>ROCKWOOL Bulgaria EooD<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e5"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Bulgaria<span class="_ _2b"> </span>100</span>ROXUL Inc.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _223"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Canada<span class="_ _2b"> </span>100</span>Chicago Metallic (Shenzhen) Co. Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _15a"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">China<span class="_ _2b"> </span>100</span>ROCKWOOL Firesafe Insulation (Guangdong) Co. Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _19b"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">China<span class="_ _2b"> </span>100</span>ROCKWOOL Firesafe Insulation (Jiangsu) Co., Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">China<span class="_ _2b"> </span>100</span>ROCKWOOL Adriatic d.o.o.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Croatia<span class="_ _2b"> </span>100</span>ROCKWOOL a.s.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9e"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f">Czech Republic<span class="_ _2b"> </span><span class="ws2e">100</span></span>ROCKWOOL Danmark A/S<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Denmark<span class="_ _2b"> </span>100</span>T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>ripplex ApS<span xmlns="http://www.w3.org/1999/xhtml" class="_ _13c"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Denmark<span class="_ _2b"> </span>100</span>ROCKWOOL EE OÜ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Estonia<span class="_ _30"> </span>100</span>ROCKWOOL Finland OY<span xmlns="http://www.w3.org/1999/xhtml" class="_ _224"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Finland<span class="_ _2b"> </span>100</span>ROCKWOOL France S.A.S<span xmlns="http://www.w3.org/1999/xhtml" class="_ _133"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">France<span class="_ _30"> </span>100</span>Deutsche ROCKWOOL GmbH &amp; Co. KG<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1aa"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Ger<span class="_ _3"/>many<span class="_ _2b"> </span>100</span>HECK W<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>all Systems GmbH<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Ger<span class="_ _3"/>many<span class="_ _30"> </span>100</span>ROCKWOOL Beteiligungs GmbH<span xmlns="http://www.w3.org/1999/xhtml" class="_ _225"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Germany<span class="_ _2b"> </span>100</span>ROCKWOOL Mineralwolle GmbH Flechtingen<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c2"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Germany<span class="_ _2b"> </span>100</span>ROCKWOOL Operations GmbH &amp; Co. KG<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c8"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Ger<span class="_ _3"/>many<span class="_ _30"> </span>100</span>ROCKWOOL Rockfon GmbH<span xmlns="http://www.w3.org/1999/xhtml" class="_ _226"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Germany<span class="_ _2b"> </span>100</span>ROCKWOOL V<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>erwaltungs GmbH<span xmlns="http://www.w3.org/1999/xhtml" class="_ _227"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Germany<span class="_ _2b"> </span>100</span>ROCKWOOL Building Materials Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _15"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f">Hong Kong<span class="_ _2b"> </span><span class="ws2e">100</span></span>ROCKWOOL Hungary Kft.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18f"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Hungary<span class="_ _2b"> </span>100</span>% Shares Subsidiaries<span xmlns="http://www.w3.org/1999/xhtml" class="_ _220"> </span>CountryownedROXUL ROCKWOOL Insulation India Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _204"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">India<span class="_ _30"> </span>100</span>ROXUL ROCKWOOL T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>echnical Insulation India Pvt. Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _93"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">India<span class="_ _30"> </span>100</span>ROCKWOOL Italia S.p.A.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _228"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Italy<span class="_ _2b"> </span>100</span>ROCKWOOL Japan LLC<span xmlns="http://www.w3.org/1999/xhtml" class="_ _229"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Japan<span class="_ _2b"> </span>100</span>ROCKWOOL Korea Co. Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _22a"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Korea<span class="_ _30"> </span>100</span>SIA ROCKWOOL<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1f6"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Latvia<span class="_ _2b"> </span>100</span>ROCKWOOL UAB<span xmlns="http://www.w3.org/1999/xhtml" class="_ _ed"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Lithuania<span class="_ _2b"> </span>100</span>Chicago Metallic (Malaysia) Sdn. Bhd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _45"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Malaysia<span class="_ _30"> </span>100</span>ROCKWOOL Malaysia Sdn. Bhd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _22b"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Malaysia<span class="_ _2b"> </span>100</span>CMC Productos Perlitas S de R.L. de C.V<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1db"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Mexico<span class="_ _2b"> </span>100</span>Servicios Pearl de Mexico S de R.L. de C.V<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _22c"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Mexico<span class="_ _2b"> </span>100</span>AS ROCKWOOL<span xmlns="http://www.w3.org/1999/xhtml" class="_ _22d"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Norway<span class="_ _2b"> </span>100</span>F<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>AST Sp. z o.o.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span>Poland<span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span>100ROCKWOOL Global Business Service Center Sp. z.o.o.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span>Poland<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2b"> </span>100ROCKWOOL Polska Sp. z o.o.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _22e"> </span>Poland<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2b"> </span>100ROCKWOOL Romania s.r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>.l.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span> Romania<span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span>100LLC ROCKWOOL<span xmlns="http://www.w3.org/1999/xhtml" class="_ _186"> </span>Russia<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2b"> </span>100LLC ROCKWOOL-NORTH<span xmlns="http://www.w3.org/1999/xhtml" class="_ _cd"> </span>Russia<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2b"> </span>100LLC ROCKWOOL-Ural<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18e"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls3f ws2e">Russia<span class="_ _2b"> </span>100</span>LLC ROCKWOOL-VOLGA<span xmlns="http://www.w3.org/1999/xhtml" class="_ _224"> </span>Russia<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2b"> </span>100ROCKWOOL Building Materials (Singapore) Pte Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7d"> </span>Singapore<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2b"> </span>100ROCKWOOL Slovensko s.r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>.o.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _22e"> </span>Slovakia<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2b"> </span>100ROCKWOOL Peninsular S.A.U.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1fd"> </span>Spain<span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span>100ROCKWOOL AB<span xmlns="http://www.w3.org/1999/xhtml" class="_ _22f"> </span>Sweden<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2b"> </span>100% SharesSubsidiaries<span xmlns="http://www.w3.org/1999/xhtml" class="_ _220"> </span>CountryownedFlumroc AG<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1f6"> </span>Switzerland<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2b"> </span>100Meilco Holding AG<span xmlns="http://www.w3.org/1999/xhtml" class="_ _43"> </span>Switzerland<span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span>100P<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>AMAG Engineering AG<span xmlns="http://www.w3.org/1999/xhtml" class="_ _230"> </span>Switzerland<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2b"> </span>100ROCKWOOL GmbH<span xmlns="http://www.w3.org/1999/xhtml" class="_ _195"> </span>Switzerland<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2b"> </span>100ROCKWOOL (Thailand) Limited<span xmlns="http://www.w3.org/1999/xhtml" class="_ _231"> </span>Thailand<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2b"> </span>100Breda Confectie B.V<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span>the Netherlands<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2b"> </span>100ROCKWOOL B.V<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1f2"> </span>the Netherlands<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2b"> </span>100ROCKWOOL Insaat ve Y<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>al<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3"/>itim Sistemleri San. V<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e Tic. Ltd. Sti.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _189"> </span>T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2"/>urkey<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2b"> </span>100LLC ROCKWOOL Ukraine<span xmlns="http://www.w3.org/1999/xhtml" class="_ _232"> </span>Ukraine<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2b"> </span>100ROCKWOOL Middle East FZE<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18f"> </span>UAE<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2b"> </span>100ROCKWOOL Limited<span xmlns="http://www.w3.org/1999/xhtml" class="_ _226"> </span>United Kingdom<span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span>100ROXUL USA Inc.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _233"> </span>United States<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2b"> </span>100 Earnings per share of DKK 10 (EUR 1.3)Profit for the year excl. non-controlling interests Average number of outstanding sharesDiluted earnings per share of DKK 10 (EUR 1.3)Profit for the year excl. non-controlling interests Diluted average number of outstanding sharesCash flow per share of DKK 10 (EUR 1.3)Cash flows from operating activities Average number of outstanding sharesDividend per share of DKK 10 (EUR 1.3)Proposed dividend for the year Number of shares at the end of the yearBook value per share of DKK 10 (EUR 1.3)Equity end of the year excl. non-controlling interests Number of shares at the end of the year ROCKWOOL A/S A/S Hovedgaden 5842640 Hedehusene