36718463 2023-01-01 2023-12-31 cmn:ConsolidatedMember 36718463 2023-01-01 2023-12-31 cmn:ConsolidatedMember 2 36718463 2022-01-01 2022-12-31 cmn:ConsolidatedMember 36718463 2023-01-01 2023-12-31 36718463 2022-01-01 2022-12-31 36718463 2023-12-31 cmn:ConsolidatedMember 36718463 2022-12-31 cmn:ConsolidatedMember 36718463 2023-12-31 36718463 2022-12-31 36718463 2022-12-31 cmn:ConsolidatedMember fsa:ContributedCapitalMember 36718463 2023-01-01 2023-12-31 cmn:ConsolidatedMember fsa:ContributedCapitalMember 36718463 2023-12-31 cmn:ConsolidatedMember fsa:ContributedCapitalMember 36718463 2022-12-31 cmn:ConsolidatedMember fsa:ReserveForCurrentValueOfHedgingMember 36718463 2023-01-01 2023-12-31 cmn:ConsolidatedMember fsa:ReserveForCurrentValueOfHedgingMember 36718463 2023-12-31 cmn:ConsolidatedMember fsa:ReserveForCurrentValueOfHedgingMember 36718463 2022-12-31 cmn:ConsolidatedMember fsa:ReserveForCurrentValueAdjustmentsOfCurrencyGainsMember 36718463 2023-01-01 2023-12-31 cmn:ConsolidatedMember fsa:ReserveForCurrentValueAdjustmentsOfCurrencyGainsMember 36718463 2023-12-31 cmn:ConsolidatedMember fsa:ReserveForCurrentValueAdjustmentsOfCurrencyGainsMember 36718463 2022-12-31 cmn:ConsolidatedMember fsa:RetainedEarningsMember 36718463 2023-01-01 2023-12-31 cmn:ConsolidatedMember fsa:RetainedEarningsMember 36718463 2023-12-31 cmn:ConsolidatedMember fsa:RetainedEarningsMember 36718463 2022-12-31 cmn:ConsolidatedMember fsa:EquityAttributableToParentMember 36718463 2023-01-01 2023-12-31 cmn:ConsolidatedMember fsa:EquityAttributableToParentMember 36718463 2023-12-31 cmn:ConsolidatedMember fsa:EquityAttributableToParentMember 36718463 2022-12-31 cmn:ConsolidatedMember fsa:MinorityInterestsMember 36718463 2023-01-01 2023-12-31 cmn:ConsolidatedMember fsa:MinorityInterestsMember 36718463 2023-12-31 cmn:ConsolidatedMember fsa:MinorityInterestsMember 36718463 2022-12-31 fsa:ContributedCapitalMember 36718463 2023-01-01 2023-12-31 fsa:ContributedCapitalMember 36718463 2023-12-31 fsa:ContributedCapitalMember 36718463 2022-12-31 fsa:ReserveForNetRevaluationAccordingToEquityMethodMember 36718463 2023-01-01 2023-12-31 fsa:ReserveForNetRevaluationAccordingToEquityMethodMember 36718463 2023-12-31 fsa:ReserveForNetRevaluationAccordingToEquityMethodMember 36718463 2022-12-31 fsa:RetainedEarningsMember 36718463 2023-01-01 2023-12-31 fsa:RetainedEarningsMember 36718463 2023-12-31 fsa:RetainedEarningsMember 36718463 2021-12-31 cmn:ConsolidatedMember 36718463 2023-01-01 2023-12-31 cmn:ConsolidatedMember 1 36718463 2023-01-01 2023-12-31 cmn:ConsolidatedMember 1 36718463 2023-01-01 2023-12-31 cmn:ConsolidatedMember 2 36718463 2023-01-01 2023-12-31 cmn:ConsolidatedMember 3 36718463 2023-01-01 2023-12-31 cmn:ConsolidatedMember 4 36718463 2023-01-01 2023-12-31 cmn:ConsolidatedMember 5 36718463 2023-01-01 2023-12-31 cmn:ConsolidatedMember 1 36718463 2023-01-01 2023-12-31 cmn:ConsolidatedMember 2 iso4217:DKK xbrli:pure Mads Bach Christensen The Executive and Board of directors have today considered and adopted the Annual Report of MAKEEN Energy A/S for the financial year 1 January 2023 – 31 December 2023.The Annual Report is prepared in accordance with the Danish Financial Statements Act. In our opinion, the Financial Statements and the Consolidated Financial Statements give a true and fair view of the financial position at 31 December 2023 of the Company and the Group and of the results of the Company and Group operations and consolidated cash flows for 2023.In our opinion, Management’s Review includes a true and fair account of the matters addressed in the Review.We recommend that the Annual Report be adopted at the Annual General Meeting. Randers SV We conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Group in accordance with the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. To the Shareholder of MAKEEN Energy A/S Management is responsible for Management’s Review.Our opinion on the financial statements does not cover Management’s Review, and we do not expresany form of assurance conclusion thereon.In connection with our audit of the financial statements, our responsibility is to read Management’s Review and, in doing so, consider whether Management’s Review is materially inconsistent with the financial statements or our knowledge obtained during the audit, or otherwise appears to be materiallmisstated.Moreover, it is our responsibility to consider whether Management’s Review provides the informatiorequired under the Danish Financial Statements Act.Based on the work we have performed, in our view, Management’s Review is in accordance with theConsolidated Financial Statements and the Parent Company Financial Statements and has been prepared in accordance with the requirements of the Danish Financial Statement Act. We did not identify any material misstatement in Management’s Review. In our opinion, the Consolidated Financial Statements and the Parent Company Financial Statements give a true and fair view of the financial position of the Group and the Parent Company at 31 December 2023, and of the results of the Group’s and the Parent Company’s operations as well as the consolidated cash flows for the financial year 1 January - 31 December 2023 in accordance with the Danish Financial Statements Act.We have audited the Consolidated Financial Statements and the Parent Company Financial Statementsof MAKEEN Energy A/S for the financial year 1 January - 31 December 2023, which comprise a summary of significant accounting policies, income statement, balance sheet, statement of changes in equity and notes, for both the Group and the Parent Company, as well as consolidated statement of cash flows (“financial statements”). Management is responsible for the preparation of Consolidated Financial Statements and Parent Company Financial Statements that give a true and fair view in accordance with the Danish Financial Statements Act, and for such internal control as Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.In preparing the financial statements, Management is responsible for assessing the Group’s and the Parent Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting in preparing the financial statements unless Management either intends to liquidate the Group or the Parent Company or to cease operations, or has no realistic alternative but to do so. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s and the Parent Company’s internal control.• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management.• Conclude on the appropriateness of Management’s use of the going concern basis of accounting in preparing the financial statements and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s and the Parent Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group and the Parent Company to cease to continue as a going concern.• Evaluate the overall presentation, structure and contents of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that gives a true and fair view.• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the Consolidated Financial Statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Aarhus C, 33771231 Claus Lindholm Jacobsen mne23328 State Authorised Public Accountant State Authorised Public Accountant Thyge Belter mne30222 MAKEEN Energy A/S Alsvej 21 DK -8940 Randers SV Abdulaziz Sulaiman M Alhedithy DK -8000 Aarhus C Jens Chr. Skous Vej 1 PricewaterhouseCoopers Abdulkareem Hamad A Alayuni (chairman) Mads Bach Christensen Steen Lykkegaard Winkler Christian Fredberg Adel Abdullah I Alhamzah Anders C. Anderson 36718463 Randers Group2023 2022 2021 2020 2019DKK mio. DKK mio. DKK mio. DKK mio. DKK mio.Key figuresProfit/lossRevenue1.882,1 1.752,7 1.447,2 1.262,4 881,9Gross profit/loss295,6 251,6 233,0 286,5 243,2EBITDA96,6 74,0 26,6 92,3 84,2EBITA55,8 -36,4 5,4 78,5 68,4Profit/loss before financialincome and expenses28,5 -63,9 -21,2 49,1 48,5Net financials-50,8 -13,8 -10,7 -26,6 -12,9Net profit/loss for the year after minority interests-24,0 -76,5 -37,9 4,9 18,1Balance sheetBalance sheet total1.323,1 1.381,6 1.266,9 1.152,6 928,8Investment in property, plantand equipment52,7 118,6 40,8 21,4 25,7Equity allocated to shareholders of the parent company264,2 127,4 186,4 202,6 208,4Number of employees in Denmark183 150 121 107 109Number of employeesoutside Denmark1.653 1.487 1.286 1.260 943RatiosGross margin15,7% 14,4% 16,1% 22,7% 27,6%EBITDA margin5,1% 4,2% 1,8% 7,3% 9,5%EBITA margin3,0% -2,1% 0,4% 6,2% 7,8%Profit margin1,5% -3,6% -1,5% 3,9% 5,5%Return on assets2,2% -4,6% -1,7% 4,3% 5,2%Solvency ratio20,0% 9,2% 14,7% 17,6% 22,4%Return on equity-12,3% -48,7% -19,5% 2,4% 9,2%Main activitiesMAKEEN Energy A/S is through the ownership of MAKEEN Gas Solutions A/S and MAKEEN Prosupply ApS the world’s leading global supplier of systems, products, services and components for filling and maintenance of LPG cylinders. Moreover, other requirements within the LPG- and Cryogenetics business and technical gasses are covered where there is a related business or strategic gain. Design & integration of applications in environmental technology is also a part of the portfolio through the ownership of MAKEEN Envitotech A/S. Development during the YearThe result for the year is a loss of DKK 21.5 million versus a loss of DKK 75.1 million in 2022. The result is lower than expected at the beginning of the year and negatively affected by DKK 101 million related to higher cost for developing, designing and construction of the first plast to oil conversion system. The result is also affected negatively by DKK 10.8 million related to impairment of plant and machinery within the division of Envitotech. The Group has during the year sold the IPR (Intellectual Property Rights) to the oil conversion system which have made a possitive affected by DKK 64,2 million to the result also within the division of EnvitotechThe Envitotech activities – primarily related to plast to oil conversion systems has required significant amount of resources and higher investments than originally planned. The future expectations and market demand for this new technology are very high and the market interest shown so far is very positive. The first system is under construction and will be running by during 2024. Special RisksMacro-economic and Political ConditionsThe Group sells products and services world-wide. The geographical distribution ensures a considerable diversification of risks, but also implies that the Group’s sales often are influenced positively or negatively by macro-economical or political conditions on specific markets.Credit and Liquidity RisksThe Group’s activities on a large number of markets involve a certain exposure to deferred payments and non-payments from customers. Such risks are met by strict management of payment conditions and use of normal payment instruments.Foreign Exchange RisksAs the major part of the Group’s revenue is generated abroad, results and equity are affected by the development in exchange rates in respect of a number of currencies. However, the risk is limited by a material part of revenue being settled in Euro. It is Group policy to hedge against commercial foreign exchange exposure through forward exchange contracts. The Group does not enter into foreign exchange positions for speculative purposes.Anti-corruption and bribery MAKEEN Energy operates in over 140 countries, including regions identified as having a high risk of corruption according to the Corruption Perception Index by Transparency International . These areas exhibit a competitive environment with a potential for improper demands or actions that contradict our company policies.Throughout our history, we have taken pride in not engaging in corrupt practices and have remained steadfast in our commitment to conducting business ethically. We firmly reject any involvement in activities that rely on improper payments or illegal means to solve problems. Instead, we believe in establishing a business based on strong values, integrity, high moral standards, and the importance of a fair market free from bribery and corruption.Anti-corruption is an integral part of our core values, and as such, we have proudly joined the UN Global Compact. We have also implemented Key Performance Indicators (KPIs) to ensure our adherence to ethical standards and continuously strengthen our resilience against improper payments and illegal business practices.Risks related to corruptionWhile we acknowledge that our activities come with potential challenges, we have identified the following risks in relation to anti-corruption within our business:• Monetary penalties resulting from legal violations.• Negative impact on our reputation among suppliers, customers, employees, and other stakeholders.• Non-compliance with our corporate purpose of developing responsible energy solutions for the betterment of people and the planet.• Failure to adhere to the prescribed practices outlined in our anti-corruption training.Actions to mitigate risks associated with corruptionBy proactively addressing these risks and maintaining our commitment to ethical conduct, MAKEEN Energy strives to uphold our reputation, fulfil our corporate purpose, and contribute to a sustainable and transparent energy market. In the sections below the actions taken is described.Global anti-corruption training courseAs part of our comprehensive approach, we have implemented a new anti-corruption training course on our updated learning platform, which is now included in our mandatory onboarding package on a global scale. By integrating this training into our onboarding process, we ensure that every new employee is equipped with the knowledge and understanding of our company's commitment to ethical conduct and the prevention of corruption. This initiative demonstrates our dedication to cultivating a strong culture of integrity and compliance throughout the organization.MAKEEN Energy´s Policy/Code of conduct - Anti Continuous focus on our code of conduct and the implementation of the below policies that is a part of the code of conduct. • MAKEEN Energy does not in any way accept the use of corruptive means and will not accept that any of our employees or third parties such as agents, consultants or partners engage in corruptive activities. • At MAKEEN Energy, we consider any kind of corruption to be morally wrong and unacceptable. We realise that corruption can occur in several different ways, and we do not accept any kind of corruption. Considering our business and the industry we are operating in, we will in this code of conduct highlight 3 particularly relevant types of corruption: bribery, facilitation payments and extortion. • MAKEEN Energy will neither receive nor pay/give bribes and will not accept that any of our employees receive or pay/give bribes. Moreover, we will not accept that any third parties such as agents, consultants or partners receive or pay/give bribes. Due to the industry, we operate in, we believe that it is relevant to stress that we, naturally, do not accept kickbacks either. A kickback is defined as a pre-agreed bribe, and we will never accept receiving or paying/giving kickbacks.• MAKEEN Energy will neither make nor receive facilitation payments and will not accept that any of our employees make/receive facilitation payments. Moreover, we will not accept that any third parties such as agents, consultants, or partners make/receive facilitation payments. Oftentimes, it is possible to avoid facilitation payments by being familiar with local legislation and planning. When you know the setup and culture you will be working in and take expected delays into account, it is much easier to plan and go through projects without risking situations that could lead to facilitation payments.Whistle-blower service – 3rd line of protectionTo reinforce our commitment to combating corruption, MAKEEN Energy recognizes the significant role of our whistle-blower service. Over the past years, we have provided all employees with the opportunity to utilize an external whistle-blower service as part of our comprehensive approach. In the last couple of years, we globally promoted this service, leading to increased utilization and a strong commitment from all levels of management. Sharing information about the whistle-blower service has been prioritized as a key responsibility for management, and this focus will continue in the future.In 2023 our efforts will be concentrating about strengthening the awareness of our whistle blower service internally.As part of our commitment to transparency, we launched a new website in, which includes a re-launch of our external communications activities. Notably, we now actively promote our whistle-blower service as an open and accessible tool in our fight against corruption.In practice, this means that anyone, including external parties, can use our whistle-blower service. All inquiries received will be handled with the utmost care and confidentiality by our trusted external partner.By expanding the visibility of our whistle-blower service, we aim to foster a culture of integrity and encourage individuals to come forward with any concerns or suspicions of corruption. The service acts as an essential mechanism for reporting and addressing potential misconduct, ensuring that every member of the MAKEEN Energy community can contribute to the fight against corruption.Through these proactive measures, we demonstrate our unwavering dedication to upholding high ethical standards and maintaining a work environment free from corrupt practices. The whistle-blower service at MAKEEN Energy plays a vital role in strengthening our collective resilience against corruption and protecting our company's reputation as a responsible global energy leader.KPI´s related to Anti-corruption2023 Target2023 Result2024 TargetAll leaders and employees are required to complete the anti-corruption training session The platform was The target for 2024 is that available on the updated learning platform.introduced in 2023 and at 75% of alle employees the end of the year 14% of have completed the course. our employees have completed the courseBy the end of this year, it should be Completed, and every new mandatory for all new employees at employee going forward MAKEEN Energy to complete our updated will have to participated in digital Anti-Corruption training program.the mandatory trainingEnsure a strong Implementation of the Code Not Achieved – same Ensure a strong of Conduct with the agents. target for 2024.Implementation of the Code of Conduct with the agents.Promoting to be continued on the Makeen Completed and continued Promoting to be continued Energy web page and plan how to add in 2024on the Makeen Energy web additional promotion of the whistle-blower page and plan how to add service towards our suppliers.additional promotion of the whistle-blower service towards our suppliers.New Initiative in 2024Promotion the whistle-blower service internally towards employees. The plan is to complete internal audits around the entities where one of the tasks will be promoting the serviceRespecting human rightsMAKEEN Energy is committed to supporting, respecting, and promoting internationally proclaimed human rights. As a global corporation, we understand our responsibility towards our employees and the individuals impacted by our products.To ensure the effective management of our human rights efforts, we have established a dedicated CSR Committee. This committee oversees the implementation and reporting of our Key Performance Indicators (KPIs) related to our engagement with the UN Global Compact. Furthermore, the committee ensures that MAKEEN Energy does not contribute to any form of human rights violations.Risks related to human rightsHuman rights risks are inherent in our business activities, and we acknowledge these challenges. The following risks within the realm of human rights have been identified,• Potential monetary penalties due to legal violations.• Negative impact on our reputation among suppliers, customers, employees, and other stakeholders.• Non-compliance with MAKEEN Energy´s Code of Conduct.Action to address the risks related to human rightsTo address these risks and fulfil our commitment to human rights, we have established KPIs that focus on strengthening our efforts in this area. At MAKEEN Energy, we firmly believe in upholding the principles of human rights for all individuals involved in our activities. We recognize that our responsibilities extend beyond business operations and encompass the well-being and dignity of every person affected by our actions. By actively addressing human rights concerns, we aim to safeguard the rights of individuals, maintain our reputation as a responsible corporate citizen, and fulfil our corporate purpose of developing sustainable energy solutions that benefit people and the planet.MAKEEN Energy´s Policy/Code of conduct – Human rightsContinuous focus on our code of conduct and the implementation of the below policies that is a part of the code of conduct. • MAKEEN Energy respects and protects the internationally proclaimed human rights, and we require all our employees and third parties acting on our behalf to do the same. We are committed to complying with the UN International Bill of Human Rights and the International Labor Organization (ILO) Declaration on Fundamental Principles and Rights at Work. And as a member of the UN Global Compact, we respect and protect human rights as a part of a sustainable business model. • At MAKEEN Energy, we consider any kind of human rights violation to be morally wrong and unacceptable – whether it happens knowingly or unknowingly. Besides protecting human rights within our own organisation, we also strive to ensure that our suppliers and sub-suppliers are compliant with the abovementioned international regulations and standards. • If we know of any human rights violations among suppliers or sub-suppliers, we will act right away. The action will depend on the violation, but generally we believe that both they and we would benefit from constructive guidance to ensure compliance with the international regulations and standards in the future.Implementing our code of conduct in our supply chainMAKEEN Energy have actively been working on ensuring ethical practices and human rights compliance within your supply chain. This is done by implementing a risk assessment process identifying the suppliers and third parties that are in risk of not complying the MAKEEN Energy Code of Conduct based on parameters such as geography and industry. To further enhance our efforts, we plan to automate the process of notifying new suppliers and third parties, requesting them comply with our Suppliers Code of conduct. This setup will be integrated into our ERP system to ensure efficient communication and documentation.The planned audits of our supply were not completed in 2023. The aim is to assess and verify the compliance of your suppliers and third parties with the established human rights standards. For 2024 the target is to optain a total insight of our suppliers around the world, and to make a risk assessment towards which suppliers our internal audit will focus on the coming years, including signing our Code of Conduct for suppliers. By completing these audits, we will gain a clearer understanding of the existing gaps and areas for improvement.By taking these actions, we demonstrate a proactive approach to addressing human rights concerns and promoting ethical practices within our organization and supply chain.KPI´s related to the human rights2023 Target2023 Result2023 TargetThe target is that 50 % of our main suppliers Not achievedTo Commence a risk should be committed to ensure that the assessment of our Suppliers Human Rights are respected in their supply in order to identify which chainsuppliers we will have increased focus on the coming years, and to structure the intern audit. Further, we are setting.Not Achieved – same Conduct audits supplier up an audit team and we will conduct 3 target for 2023audits at suppliers that are audits.placed in areas that are assessed as having a high risk of not complying with MAKEEN Energy´s Code of Conduct.Create internal training course about Human Not Achieved – same Create internal training rightstarget for 2024course about Human rights based on the code of conduct.Environment and ClimateOver the past few years, MAKEEN Energy has undergone a significant reorientation as a company. With a long-standing reputation as industry leaders in LPG cylinder filling for more than half a century, we have now established a stable, reliable, and expanding business. This provides us with a strong foundation to embark on bold research, development, and investments.As our owners, board, and global directors have explored opportunities to leverage our decades of experience in gas handling for the benefit of society and the environment, addressing the critical issue of plastic waste emerged as a solution that aligns with our expertise. By successfully utilizing pyrolysis technology to chemically recycle materials, we are well-positioned to offer solutions for future circular economies. This extends beyond plastics to encompass the wind industry, composite manufacturers, and other sectors. In addition to pyrolysis, our experience in liquefaction enables us to provide various other environmentally friendly Bio-gas solutions that will play a significant role in the transition into sustainable energy sources. Committed to maximizing our positive impact on the environment, our approach is guided by the principles and requirements outlined in the ISO 14001:2015 standard having 2 of our entities certified according to the above-mentioned standard. We also adhere to national regulations and consider customer criteria in our operations.Risks related to Environment and climateHowever, our environmental efforts are not without challenges, and within the environmental domain, we have identified the following risks:• Failing to meet the increasing demand for sustainable energy solutions.• Not being ready to comply with the EU directive 2022/2464 - Corporate Sustainability Reporting Directive (CSRD). • Insufficient business development to support our environmental objectives.• Potential monetary penalties resulting from legal violations.• Negative impact on our reputation among suppliers, customers, employees, and other stakeholders.•Non-compliance with our corporate purpose of developing responsible energy solutions for the betterment of people and the planet.Recognizing the need for continuous improvement, we are determined to further enhance our environmental initiatives. This year, we are following up on our Key Performance Indicator from the previous year which focuses on scaling up our commitment to invest in environmentally friendly technology. These efforts reflect our dedication to developing responsible energy solutions and driving positive change for the environment. Furthermore we continue preparing to be compliant with the CSRD with the ESG-reporting which applies for MAKEEN Energy in 2025 (to be reported in 2026).Actions to mitigate risks associated with Environment and ClimateThe 3 steps outlined below are action that constitutes the MAKEEN Energy 2026 plan for being ready to comply with EU directive 2022/2464 - Corporate Sustainability Reporting Directive (CSRD). Taking those steps will contribute to ensure that MAKEEN Energy is going to reduce the environmental footprints that comes from the business.Phase 1 – Make Baseline AssessmentThe baseline assessment we have outlined focuses on evaluating the existing sustainability reporting process, internal controls, and governance within our organization. It also involves considering the auditor's perspective on materiality and the key performance indicators (KPIs) currently in place. Additionally, benchmarking with industry peers, conducting interviews with internal stakeholders, and mapping out the global supply chain using the double materiality concept are important components of this assessment.Here's a breakdown of each step in the baseline assessment process:(Re)assess existing sustainability reporting process: This involves reviewing MAKEEN Energy´s current sustainability reporting process, including the methodologies used, data collection and analysis procedures, reporting standards followed, and the overall governance structure. The goal is to gain a comprehensive understanding of the existing process.Consider auditor's perspective on materiality:Assess how we determines materiality, i.e., the significance of sustainability issues to stakeholders. Understanding the auditor's perspective will help ensure that the materiality process aligns with established standards and best practices.Assess baseline and benchmark with industry peers:Evaluate the MAKEEN Energy´s current sustainability performance and compare it to selected industry peers. This benchmarking exercise provides insights into how the organization is performing relative to others in the industry and identifies areas for improvement.Conduct interviews with key internal stakeholders:Engage with relevant individuals within our organization, such as sustainability managers, data analysts, and finance personnel, to understand the existing data management process. This includes assessing how data is designed, captured, recorded, calculated, and compiled for sustainability reporting purposes.Map out global supply chain and assess sustainability topics:Gain a comprehensive understanding of the MAKEEN Energy´s global supply chain and identify sustainability topics relevant to the business. Applying the double materiality concept, which considers both the external impact of the organization and the organization's dependency on external factors, helps identify key areas of focus for sustainability efforts. By completing these steps, the organization can establish a baseline understanding of its sustainability reporting process, identify areas for improvement, compare its performance to industry peers, and gain insights into managing sustainability data effectively. This baseline assessment sets the stage for developing a robust sustainability strategy and reporting framework moving forward.Phase 2 - Getting assurance ready/compliantTo prepare for assurance activities related to sustainability reporting, the following steps are outlined.Regulation overview:Conduct a thorough review of relevant regulatory obligations to identify which ones will come into force and when. Stay updated on new and upcoming regulations at the local, regional, and international levels that impact sustainability reporting. This scan helps us to ensure compliance and informs reporting practices.Training plan for key employees on EU regulations:Identify key employees responsible for sustainability reporting and ensure they receive appropriate training on EU regulations. This training should cover the specific requirements, methodologies, reporting standards, and disclosure obligations outlined in the regulations.Create a matrix per strategic KPI on assurance requirements:Develop a matrix that outlines the requirements for limited and reasonable assurance for each strategic Key Performance Indicator (KPI). This matrix should clearly specify the data, metrics, and information needed to provide assurance on each KPI, as well as the level of assurance required.Analyse the existing carbon reporting process:Evaluate the MAKEEN Energy´s existing carbon reporting process, including data collection, calculation methodologies, and reporting procedures. Assess the effectiveness and accuracy of the process and determine if it can be replicated for other KPIs or expanded to cover additional sustainability metrics beyond carbon.Investigate the feasibility of replicating the carbon reporting process:Determine if the existing carbon reporting process if any can be extended or adapted to cover other KPIs. Assess whether the methodologies, data collection procedures, and reporting frameworks used for carbon reporting are suitable for other sustainability metrics. Identify any necessary modifications or enhancements needed to ensure consistency and accuracy.Implement internal control framework on non-financial information:Establish an internal control framework specifically designed for non-financial information, including sustainability data. This framework should incorporate processes and controls to ensure the reliability, accuracy, and completeness of non-financial data, as well as the integrity of the reporting process. It should include data validation, verification, documentation, and review procedures.By completing these steps, MAKEEN Energy can ensure compliance with regulatory obligations, provide appropriate training to key employees, establish assurance requirements for each strategic KPI, evaluate the feasibility of replicating the carbon reporting process for other metrics, and implement internal controls for non-financial information. These actions contribute to building a robust framework for assurance readiness in sustainability reporting.Phase 3 - Create a roadmapTo create a roadmap for getting assurance ready in sustainability reporting, the following steps needs to be taken.Engage key internal stakeholders: Collaborate with key internal stakeholders, such as sustainability managers, finance personnel, auditors, and data analysts, to develop an actionable roadmap. Involve these stakeholders in the process to ensure their expertise and perspectives are considered.Establish a taxonomy mapping and governance plan: Develop a taxonomy mapping that provides a clear and consistent framework for organizing sustainability data and reporting elements. This helps ensure data accuracy, comparability, and transparency. Additionally, create a governance plan that outlines the roles, responsibilities, and decision-making processes related to sustainability reporting and assurance.Design a data management framework: Develop a comprehensive data management framework that covers the entire data lifecycle, from data collection to reporting. This framework should address data quality, data validation, data storage, and data security. It should also incorporate processes for data aggregation, consolidation, and normalization to facilitate accurate and reliable reporting.Provide insights on required audit documentation: Work closely with auditors to gain insights into the specific audit documentation requirements for sustainability reporting. Understand the expectations regarding evidence, testing, and documentation of sustainability data and related internal controls. This collaboration ensures alignment between the reporting process and audit requirements.Consider digital solutions: Explore digital solutions that can enhance data management, internal controls, and reporting efficiency. Digital tools and platforms can streamline data collection, automate data validation processes, improve internal controls, and generate valuable insights. Evaluate available software or technology solutions that can support reliable ESG reporting and facilitate the assurance process.Incorporate limited and reasonable assurance: Develop a phased approach for assurance readiness, starting with limited assurance and eventually progressing towards reasonable assurance. Clearly define the criteria, metrics, and processes for each level of assurance. This staged approach allows for continuous improvement and builds confidence in the accuracy and reliability of sustainability reporting.By following this roadmap, the MAKEEN Energy can engage key stakeholders, establish a governance plan, design a data management framework, gain insights on audit requirements, and leverage digital solutions. This comprehensive approach ensures a systematic and efficient journey towards achieving reliable ESG (sustainability) reporting and readiness for assurance activities.MAKEEN Energy´s Policy/Code of conduct EnvironmentalInevitably, the activities of MAKEEN Energy involve and affect the communities and places where we operate. However, we are dedicated to making our influence on people and planet as positive as possible. Therefore, we continually look for ways to reduce adverse environmental impact and use the resources more efficiently. The principles and requirements of the ISO 14001 standard, combined with national and customer criteria, are the starting point for our wide range of environmental initiatives. Our approach to environmental issues Protecting the environment is in the heart of our business. As our purpose states, we provide responsible energy solutions for people and planet.Our global environmental management system ensures that we align our environmental efforts across all our locations around the world. Our Group Quality Committee manages the system itself while functional management teams handle the local implementation of initiatives and requirements.KPI´s related to Environment and Climate2023 Target2023 Result2024 TargetTo be continued in 2023 investing in The first Plastcon site is To be continued in 2024 PlastCon and liquefaction of Biogas.expected to be finished in investing in PlastCon and 2024, whereafter we will liquefaction of Biogas.continue with building the next plants in DK.Continue our effort to locally reduce CO2 Not achievedWill be covered by below emissions.KPIComplete the first steps under phase 1 – in 2023 we have Continuing the preparation Create the baseline assessmentcompleted the double according to the CSRD-actmateriality assessments for the group and engaging with the key internal stakeholders. An ESK Committee as been assigned ensuring progress and anchoring in the organization. An external provider for measuring and calculation our carbon footprint has been engaged as well. New target for 2024Continue awareness of the benefits having virtual meetings and less travel activity across our organization. LabourAs a global company with a widespread presence and numerous employees, MAKEEN Energy recognizes the importance of addressing the challenges and responsibilities associated with the working environment both within our organization and throughout our supply chain. As a market-leading corporation in the LPG cylinder filling industry, we understand the complexities of managing a global ecosystem of subcontractors and suppliers, which can sometimes make it difficult to ensure consistent adherence to standards.We are committed to complying with both local and international requirements concerning working conditions. Moreover, we continuously assess and refine our methods, processes, and systems to identify and prevent potential risks while also seeking opportunities for improvement.Our efforts, in conjunction with our environmental policy, are all aimed at safeguarding the health, safety, and well-being of our employees. At MAKEEN Energy, we firmly believe in upholding the freedom of association and the right to collective bargaining for all our employees. We consider these rights as fundamental and mutually beneficial.Risks related to LabourHowever, engaging with people presents its own set of challenges, and within the realm of labour, we have identified the following risks:• Potential monetary penalties due to legal violations.• Work-related accidents and near-misses involving our employees.• Negative impact on our reputation among suppliers, customers, employees, and other stakeholders.• Difficulties in attracting and retaining skilled labour.• Non-compliance with our corporate purpose of developing responsible energy solutions for the betterment of people and the planet.Our employees are our most asset, and we are fully dedicated to providing them with optimal working conditions. On the following page, you will find five previously established Key Performance Indicators (KPIs) that we have implemented to ensure just that. The overview provides a comprehensive report on our progress in meeting these KPIs. It is important to note that this year, we have merged one of our KPIs, which involved auditing external suppliers for the use of forced or child labour, with KPI 1, which focuses on auditing external suppliers for adherence to our code of conduct.At MAKEEN Energy, we strive to create a work environment that fosters the well-being, safety, and satisfaction of our employees. We remain steadfast in our commitment to developing responsible energy solutions while promoting labour practices that align with our corporate values.Actions to mitigate risks associated with LabourThroughout the reporting period, we have implemented various initiatives to promote employee engagement, health, and work-life balance. We offered health checks, conducted training courses on first aid, and organized stress coaching sessions. Our commitment to employee well-being extends further as we provide access to specialists and resources to support their mental health needs. Additionally, we organize social events and sports activities within different groups, such as the MAKEEN Young Professionals, MAQUEENS, MAKEEN Cycling club, and our football team MAKEEN Energy United, aiming at providing an enhanced working environment for our employees.Professional development is a priority at MAKEEN Energy. We value continuous learning and growth opportunities for our employees. To that end, we introduced Personal Development Talks (PDTs), where employees engage in constructive conversations with their direct reports to discuss individual growth, career aspirations, and receive performance feedback. Furthermore, we have taken a significant step by developing the MAKEEN Academy, an e-learning platform (launched by the end of May 2023). This platform will provide equal access to learning resources and training modules, empowering our employees to enhance their skills and knowledge.In line with our commitment to fair employment practices, we adhere to applicable labor laws and regulations. We promote equal opportunities, non-discrimination, and respect for workers' rights. Our open channels of communication encourage employee participation and feedback in decision-making processes, fostering a culture of transparency and inclusivity.Health and safety remain of greatest importance within our organization. We have implemented comprehensive programs, protocols, and regular training to ensure a safe working environment for all employees. Our ongoing efforts aim to continuously improve our safety performance and reduce occupational hazards.We will continue to prioritize the well-being, professional growth, and safety of our employees, ensuring a thriving workplace that nurtures their potential and contributes positively to society.MAKEEN Energy´s Policy/Code of conduct - LabourImplementation of our Code of Conduct described below is one of the actions taken by MAKEEN Energy to mitigate the risk related to labour.MAKEEN Energy strives to provide a healthy and safe working environment for everyone who is involved in our activities. As an international organisation, we have employees all over the world, and our health and safety policy apply to everyone within our organisation, including agents, consultants, or partners. We are committed to supporting the International Labour Organization (ILO) Declaration on Fundamental Principles and Rights at Work as well as the UN Global Compact that both set a high standard for working environments. To strengthen our efforts, we use our health and safety policy and our global health and safety management system to help ensure a good physical working environment for everyone who is part of MAKEEN Energy. In terms of psychosocial working environment, it is important to stress that we do not tolerate any kind of discrimination or harassment of neither employees nor third parties such as agents, consultants, or partners.Training in non-diskriminationMAKEEN Energy management on a global level has undergone value-based leadership training in 2023. Although the establishment of a setup for continuous training has not been completed yet, MAKEEN Energy is including it as part of the KPI for 2024. It means that MAKEEN Energy will roll out the non-discrimination training program to all employees and ensuring that every employee has access to the training and the necessary resources to complete it. Using the updated training platform MAKEEN Energy is going track and monitoring the employee progress.Ensuring safety and preventing accidentsTo further enhance our efforts and promote incident reporting MAKEEN Energy will address the challenges in measuring and quantifying the usage of the system and the reporting of all incidents.To strengthen our focus on incident reporting and maintain MAKEEN Energy is planning to take the following actions.• Increase awareness among employees about the importance of incident reporting.• Engage managers at all levels and make them accountable for incident reporting within their teams. Train managers on the reporting system, its purpose, and the importance of timely and accurate reporting. Encourage them to actively promote a culture of reporting, address any barriers or concerns raised by employees, and ensure a supportive environment for incident reporting.• Provide regular training and educational programs on incident reporting, including the proper identification, documentation, and reporting procedures. • Reinforce the understanding that near-misses and minor incidents are valuable indicators of potential hazards.• Continuously analyze the reported incidents and near-misses to identify patterns, trends, and areas for improvement. Regularly review the data to identify any gaps or discrepancies in reporting and take corrective actions accordingly. • Use the insights gained from incident reports to enhance safety procedures, implement preventive measures, and conduct targeted training.• Conduct periodic reviews and audits of the reporting system to ensure its effectiveness and identify any potential issues or shortcomings.By implementing these steps, we can strengthen the focus on incident reporting, enhance the usage of the reporting system, and work towards lowering the LTIFR (lost time injury frequency rate) to 2.KPI´s related to labour2023 Target2023 Result2024 TargetUse the new training platform to create and Not completedin 2023. The new platform deploy a course in non-discrimination was introduced in 2023 and behaviour to all employees.in 2024 we will stride to development and deploy new courses in non-discrimination behaviour for all employeesWe choose to keep a focus on this KPI. We The LTIFR for 2023 has 2024 target is to have will strengthen focus on importance of not yet been calculated LTIFR (lost time injury reporting incidents in our internal – not achieved. frequency rate) not higher communication and as a task for managers.than 2.New initiative for 2024Invest in much more safety awareness and training.Expectations for the Year AheadThe Group's primary line of business is within LPG, Cryogenetics and Environmental Technologies, which are important energy resources in most countries of the world. For the financial year 2024, the Group expects to realize an operating profit between DKK 125 - 150 million.The ultimate owner of MAKEEN - AL-Ayuni Investment and Contracting Company - is commited to support with needed loans to finance MAKEENs operating activities. Dialogue with existing bank relations to secure credit lines to support the future growth and expanding plans are ongoing.DevelopmentThis financial year, the Group has incurred expenses for development totalling DKK 76.5 million. DKK 10.5 million out of this amount have been charged as production costs as the Group assesses that these costs do not meet the criteria for recognition in the balance sheet. The remaining amount of DKK 66,0 million have been capitalised as development projects.Development projects for the LPG division mainly consists of components, systems and software within the area of LPG filling plants. In the Envitotech division the Group has developed a plastic-to-oil conversion system, under the brand name PlastCon. The first PlastCon system is sold in March 2021 and is expected to be in operations in 2024The new developments within the LPG and Envitotech divisions is expected to lead to a competitive advantage and thus directly influence the activity and future financial performance of the Group.Intellectual Capital ResourcesThe Group gives priority to continuing training of employees in MAKEEN Energy and the subsidiaries abroad. Training in sales management, project management, project training and general leadership has been carried through during the year. Similar training will continue in the coming year. MAKEEN new digital Leaning Management Systems has been launched in May 2023.OwnershipThe Company’s share capital of DKK 80,000k at 31 December 2023 is wholly owned by MAKEEN International, S.a.r.l, 6 Rue Eugéne Ruppert, L-2453, Luxembourg. The ratios have been prepared in accordance with the definitions stated in the section accounting policies. Statutory statement on CSR according to section 99a of the Danish Financial ActMAKEEN Energy´s business model"MAKEEN Energy is a global, market-leading corporation in the energy industry, comprising three distinct business units. Our first business unit is dedicated to developing cutting-edge solutions for LPG cylinder filling plants, ensuring safe and efficient operations in the LPG industry. We leverage our expertise to provide innovative technologies that meet the evolving needs of this sector.The second business unit, MAKEEN Envitotech, focuses on sustainability and environmental solutions. Within this unit, we develop and implement forward-thinking technologies like our Plastcon solution, addressing pressing environmental challenges and contributing to a more sustainable future. Additionally, our third business unit is a trading unit specializing in providing products for the gas industry. Leveraging our extensive network and industry knowledge, we offer a wide range of high-quality products to meet the diverse demands of the gas market.With 25 offices spread across the globe, MAKEEN Energy has established a strong international presence. We employ over 3500 talented professionals who are committed to delivering excellence in their respective roles. Our customer base spans over 140countries, and our average customer relationship spans an impressive 26 years. Our average portfolio consists of around 400 projects, demonstrating our commitment to continuous growth and development.MAKEEN Energy remains resolute in our mission to drive the sustainable transformation of the energy market. We empower our partners to embrace the energy market of tomorrow while bridging the gaps between present and future energy supply. Through our three business units and a culture of innovation, we are well-positioned to make a meaningful difference for people and the planet.By embracing responsible energy solutions, enabling innovation, and fostering strong relationships, MAKEEN Energy continues to be at the forefront of shaping the energy industry's future." The composition of genders in the Board of Directors is unchanged in 2023 as the number of changes has not provided the basis for an improvement.In the Company's other management levels, females are currently represented with 37% The company believes that diversity among employees, including gender balance, positively contributes to the work environment and strengthens the company's performance. MAKEEN Energy is working to increase the proportion of female leaders within the company and has therefore established policies and targets for gender balance in both the Board of Directors and the Company’s other management level.The company aims for 20% of Board of Directors to be occupied by the underrepresented gender by 2025. The Company has in 2023 implemented a targeted recruitment strategy focusing on attracting qualified candidates from the underrepresented gender for board positions. This may include advertising on platforms and networks specifically targeting female leaders and experts. In the other management level, the Company have reach the goal of equal representation of the gender. In the coming years the Company will focus on retaining the level and continue to increase the percentage.The company has in 2023 implemented a policy to promote diversity and equality within the group. The policy includes guidelines and principles for recruitment and hiring, as well as opportunities for mentorship programs and development initiatives to promote career advancement for the underrepresented gender within the organization. The company believes that diversity among employees, including gender balance, positively contributes to the work environment and strengthens the company's performance. MAKEEN Energy is working to increase the proportion of female leaders within the company and has therefore established policies and targets for gender balance in both the Board of Directors and the Company’s other management level.The company aims for 20% of Board of Directors to be occupied by the underrepresented gender by 2025. The Company has in 2023 implemented a targeted recruitment strategy focusing on attracting qualified candidates from the underrepresented gender for board positions. This may include advertising on platforms and networks specifically targeting female leaders and experts. In the other management level, the Company have reach the goal of equal representation of the gender. In the coming years the Company will focus on retaining the level and continue to increase the percentage.The company has in 2023 implemented a policy to promote diversity and equality within the group. The policy includes guidelines and principles for recruitment and hiring, as well as opportunities for mentorship programs and development initiatives to promote career advancement for the underrepresented gender within the organization. The company believes that diversity among employees, including gender balance, positively contributes to the work environment and strengthens the company's performance. MAKEEN Energy is working to increase the proportion of female leaders within the company and has therefore established policies and targets for gender balance in both the Board of Directors and the Company’s other management level.The company aims for 20% of Board of Directors to be occupied by the underrepresented gender by 2025. The Company has in 2023 implemented a targeted recruitment strategy focusing on attracting qualified candidates from the underrepresented gender for board positions. This may include advertising on platforms and networks specifically targeting female leaders and experts. In the other management level, the Company have reach the goal of equal representation of the gender. In the coming years the Company will focus on retaining the level and continue to increase the percentage.The company has in 2023 implemented a policy to promote diversity and equality within the group. The policy includes guidelines and principles for recruitment and hiring, as well as opportunities for mentorship programs and development initiatives to promote career advancement for the underrepresented gender within the organization. Statutory statement on the underrepresented gender according to section 99b of the Danish Financial Act.The Company's highest level of management, the Board of Directors, is currently consisting solely of males. Members of the Board of Directors elected on the General Meeting are elected according to qualifications.The composition of genders in the Board of Directors is unchanged in 2023 as the number of changes has not provided the basis for an improvement.In the Company's other management levels, females are currently represented with 37%The company believes that diversity among employees, including gender balance, positively contributes to the work environment and strengthens the company's performance. MAKEEN Energy is working to increase the proportion of female leaders within the company and has therefore established policies and targets for gender balance in both the Board of Directors and the Company’s other management level.The company aims for 20% of Board of Directors to be occupied by the underrepresented gender by 2025. The Company has in 2023 implemented a targeted recruitment strategy focusing on attracting qualified candidates from the underrepresented gender for board positions. This may include advertising on platforms and networks specifically targeting female leaders and experts. In the other management level, the Company have reach the goal of equal representation of the gender. In the coming years the Company will focus on retaining the level and continue to increase the percentage.The company has in 2023 implemented a policy to promote diversity and equality within the group. The policy includes guidelines and principles for recruitment and hiring, as well as opportunities for mentorship programs and development initiatives to promote career advancement for the underrepresented gender within the organization.In 2023 the company has also finalized a recruitment policy that promotes diversity and aims to attract qualified candidates from the underrepresented gender, despite operating in a male-dominated 5 0.20 2025 11 0.37 0.40 2025 The company has in 2023 implemented a policy to promote Statutory statement on data ethics according to section 99d of the Danish Financial ActThe Group acknowledges not to have formal policy specifically addressing data ethics. Instead, data ethics considerations are primarily covered by the existing GDPR policy. However, in 2022, the Group has reevaluated its approach and recognized the need to develop and implement a more dedicated policy on data ethics. In 2023, the Group has begun work on drafting a new policy that must be anchored in the organization. However, the policy has not been finalized yet, but is expected to be finalized during 2024.The forthcoming data ethics policy aims to establish global standards for the collection, storage, and usage of both personal and non-personal data. The policy will also include the following,• The categories and types of data that the Group collects, stores, and utilizes. This includes personaldata as well as non-personal data.• Information about how and when data should be collected. It will emphasize the importance ofobtaining informed consent, ensuring data accuracy, and following appropriate legal and ethicalstandards.• The circumstances under which data may be shared, the necessary safeguards and contractualobligations, and the Group's commitment to protecting data privacy.• The Group's commitment to educating its workforce on ethical data handling practices and raisingawareness of privacy and data protection obligations.Once the data ethics policy is fully developed and implemented during 2024, the Group will focus on effectively putting it into practice. This includes the deployment of tools and mechanisms to monitor the use of data and ensure compliance with the established data ethics standards.Subsidiaries and Local OfficesA material element in the Group strategy and growth plans is to establish and develop or acquire local sales and service enterprises.The Group's existing subsidiaries continue to develop positively: the sale and service subsidiaries are developing very positively, particularly in after-sales, service and facility management.In 2023 the Group have had focus on consolidating the existing subsidiaries and have not made any significant acquisitions during the financial year. Basis of PreparationThe Annual Report of MAKEEN Energy A/S for 2023 has been prepared in accordance with the provisions of the Danish Financial Statements Act applying to large enterprises of reporting class C and current Danish Accounting Standards.The financial statements are presented in TDKK. The Company has in 2023 changed the accounting policies used for the classification of cash and cash equivalents in the cash flow statement. The change has led to changes in the Company's cash flows, as Credit institutions are included in financing activity rather than net cash holdings. The Company's result, balance sheet total and equity are not affected by the change.Recognition and measurementThe financial statements have been prepared under the historical cost method.Revenues are recognised in the income statement as earned. Furthermore, value adjustments of financial assets and liabilities measured at fair value or amortised costs are recognised. Moreover, all expenses incurred to achieve the earnings for the year are recognised in the income statement, including depreciation, amortisation, impairment losses and provisions as well as reversals due to changed accounting estimates of amounts that have previously been recognised in the income statement.Assets are recognised in the balance sheet when it is probable that future economic benefits attributable to the asset will flow to the Company, and the value of the asset can be measured reliably.Liabilities are recognised in the balance sheet when it is probable that future economic benefits will flow out of the Company, and the value of the liability can be measured reliably.Assets and liabilities are initially measured at cost. Subsequently, assets and liabilities are measured as described for each item below.Certain financial assets and liabilities are measured at amortised cost, which involves the recognition of a constant effective interest rate over the maturity period. Amortised cost is calculated as original cost less any repayments and with addition/deduction of the cumulative amortisation of any difference between cost and the nominal amount. In this way, capital losses and gains are allocated over the maturity period.Recognition and measurement take into account predictable losses and risks occurring before the presentation of the Annual Report which confirm or invalidate affairs and conditions existing at the balance sheet date.Danish kroner is used as the measurement currency. All other currencies are regarded as foreign currencies.Basis of consolidationThe Consolidated Financial Statements comprise the Parent Company, MAKEEN Energy A/S, and enterprises in which the Parent Company directly or indirectly holds more than 50% of the votes or in which the Parent Company, through share ownership or otherwise, exercises control.On consolidation, items of a uniform nature are combined. Elimination is made of intercompany income and expenses, shareholdings, dividends and accounts as well as of realised and unrealised profits and losses on transactions between the consolidated enterprises.The Parent Company’s investments in the consolidated subsidiaries are set off against the Parent Company’s share of the net asset value of subsidiaries stated at the time of consolidation.Business acqusitionsOn acquisition of subsidiaries, the difference between cost of acquisition and net asset value of the enterprise acquired is determined at the date of acquisition after the individual assets and liabilities having been adjusted to fair value (the purchase method). In this connection any restructuring provisions decided concerning the acquired enterprise are deducted. Any remaining positive differences are recognised in “Investments in subsidiaries” and are amortised on a straight-line basis over the estimated useful life, but not exceeding 20 years.Acquisitions of subsidiaries are accounted for using the purchase method under which the identifiable assets and liabilities of the entity acquired are measured at fair value at the time of acquisition.The time of acquisition is the time when the Group obtains control og the entity acquired.The cost of the entity acquired is the fair value of the consideration agreed, including consideration contingent on future events. Transaction costs directly attributable to the acquistion of subsidiaries are recognised in the income statement as incurred.Positive differences between the cost of the entity acquired and identifiable assets and liabilities are recognised as goodwill in intangible assets in the balance sheet and are amortised in the income statement on a straight-line basis over their estimated useful lives. Where the differences are negative, they are recognised immediately in the income statement.Where the purchase price allocation is not final, positive and negative differences from acquired subsidiaries due to change to the recognition and measurement of identifiable net assets may be adjusted for up to 12 months after the time of acquisition. These adjustments are also reflected in the value of goodwill or negative goodwill, including in amortisation already made.Business acqusitions carried through on or before 1 July 2018Business acqusitions carried through before 1 July 2018 follow the above accounting policies for business combinations with a few exemptions. The most material exemptions are:- Where the purchase price allocation in not final, positive and negative differences due to changes to the recognition and measurement of the acquired net assets may be adjusted until the end of the financial year following the year of acquistion. These adjustments are also reflected in the value of goodwill or negative goodwill, including in amortisation already made.- Transaction costs directly attributable to the acquistion of subsidiaries are included as part of cost.Minority interestsOn statement of Group results and Group equity, the shares of results and equity of subsidiaries attributable to minority interests are recognised as separate items in the income statement and the balance sheet. Minority interests are recognised on the basis of a re-measurement of acquired assets and liabilities to fair value at the time of acquisition of subsidiaries. At subsequent changes in minority interests the changed share of results is recognised from the time of the change.LeasesAll of the Group’s leases are classified as either operating or finance leases. Payments concerning operating leases are recognised in the income statement on a straight-line basis over the leasing period. The payments concerning finance leases are divided between financial expenses and repayments on the leasing debt to obtain a constant interest rate for the remaining leasing debt.Translation policiesTransactions in foreign currencies are translated at the exchange rates at the dates of transaction. Gains and losses arising due to differences between the transaction date rates and the rates at the dates of payment are recognised in financial income and expenses in the income statement.Receivables, payables and other monetary items in foreign currencies that have not been settled at the balance sheet date are translated at the exchange rates at the balance sheet date. Any differences between the exchange rates at the balance sheet date and the transaction date rates are recognised in financial income and expenses in the income statement; however, see the section on hedge accounting.Income statements of foreign subsidiaries are translated at transaction date rates or approximated average exchange rates. Balance sheet items are translated at the exchange rates at the balance sheet date. Exchange adjustments arising on the translation of the opening equity and exchange adjustments arising from the translation of the income statements at the exchange rates at the balance sheet date are recognised directly in equity.Derivative financial instrumentsDerivative financial instruments are initially recognised in the balance sheet at cost and are subsequently remeasured at their fair values. Positive and negative fair values of derivative financial instruments are classified as “Other receivables” and “Other payables”, respectively.Changes in the fair values of derivative financial instruments are recognised in the income statement unless the derivative financial instrument is designated and qualify as hedge accounting, see below.Hedge accountingChanges in the fair values of financial instruments that are designated and qualify as fair value hedges of a recognised asset or a recognised liability are recognised in the income statement as are any changes in the fair value of the hedged asset or the hedged liability related to the hedged risk.Changes in the fair values of derivative financial instruments that are designated and qualify as hedges of expected future transactions are recognised in retained earnings under equity as regards the effective portion of the hedge. The ineffective portion is recognised in the income statement. If the hedged transaction results in an asset or a liability, the amount deferred in equity is transferred from equity and recognised in the cost of the asset or the liability, respectively. If the hedged transaction results in an income or an expense, the amount deferred in equity is transferred from equity to the income statement in the period in which the hedged transaction is recognised. The amount is recognised in the same item as the hedged transaction.Changes in the fair values of financial instruments that are designated and qualify as hedges of net investments in independent foreign subsidiaries or associates are recognised directly in equity as regards the effective portion of the hedge, whereas the ineffective portion is recognised in the income statement.Income StatementRevenueRevenue from the sale of goods for resale and finished goods is recognised in the income statement when the sale is considered effected based on the following criteria: • delivery has been made before year end; • a binding sales agreement has been made; • the sales price has been determined; and payment has been received or may with reasonable certainty be expected to be received.Contract work in progress is recognised at the rate of completion of the projects, which means that revenue equals the selling price of the work completed for the year (percentage-of-completion method). This method is applied when total revenues and expenses in respect of the project and the stage of completion at the balance sheet date can be measured reliably, and it is probable that the economic benefits, including payments, will flow to the Company. Contract work in progress includes agreements of delivery of projects with a high level of individual customization. Cost of salesCost of sales comprises costs incurred to achieve revenue for the year. Cost comprises purchases for projects, raw materials, consumables, direct labour costs and indirect production costs such as maintenance and depreciation, etc, as well as operation, administration and management of factories.Cost of sales also includes development costs that do not qualify for capitalisation.Distribution expensesDistribution expenses comprise costs in the form of salaries to sales and distribution staff, advertising, marketing and exhibition expenses as well as operation of motor vehicles, depreciation, etc.Administrative expensesAdministrative expenses comprise expenses for Management, administrative staff, office expenses, depreciation, etc.Other operating income and expensesOther operating income and other operating expenses comprise items of a secondary nature to the core activities of the enterprises, including gains and losses on the sale of intangible assets and property, plant and equipment.Income from investments in subsidiariesThe item "Income from investments in subsidiaries" in the income statement includes the proportionate share of the profit for the year after tax.Income from investments in associatesThe item "Income from investments in associates" in the income statement includes the proportionate share of the profit for the year after tax.Financial income and expensesFinancial income and expenses comprise interest, realised and unrealised exchange adjustments, price adjustment of securities as well as extra payments and repayment under the on-account taxation scheme.Tax on profit/loss for the yearTax for the year consists of current tax for the year and deferred tax for the year. The tax attributable to the profit for the year is recognised in the income statement, whereas the tax attributable to equity transactions is recognised directly in equity.The Company assesses for Danish tax purposes jointly with the Danish consolidated company. Foreign subsidiaries are not part of the joint taxation.The effect of the joint taxation is divided among the involved companies according to the taxable profit or loss of each company. The companies that are part of the joint taxation are entered into the tax prepayment scheme.Balance SheetIntangible assetsGoodwillGoodwill is amortised on a straight-line basis over the estimated useful life determined on the basis of Management’s experience with the individual business areas. The maximum amortisation period is 20 years, the longest period applying to enterprises acquired for strategic purposes with a strong market position and a long earnings profile.Development projectsCosts of development projects comprise salaries, amortisation and other expenses directly or indirectly attributable to the Company’s development activities.Development projects that are clearly defined and identifiable and in respect of which technical feasibility, sufficient resources and a potential future market or development opportunity in the enterprise can be demonstrated, and where it is the intention to manufacture, market or use the project, are recognised as intangible assets. This applies if sufficient certainty exists that the value in use of future earnings can cover cost of sales, distribution and administrative expenses involved as well as the development costs.Development projects that do not meet the criteria for recognition in the balance sheet are recognised as expenses in the income statement as incurred.Capitalised development costs are measured at cost less accumulated amortisation and impairment losses or at a lower recoverable amount. An amount equal to the recognised development projects are reserved in "Reserve according to development costs" under equity. The reserve comprises development costs recognised on 1 January 2016 or later. The reserve is reduced by amortisation and impairment losses on development projects.As of the date of completion, capitalised development costs are amortised on a straight-line basis over the period of the expected economic benefit from the development work, but not exceeding 5 years.Property, plant and equipmentProperty, plant and equipment are measured at cost less accumulated depreciation and less any accumulated impairment losses.Cost comprises the cost of acquisition and expenses directly related to the acquisition up until the time when the asset is ready for use. In the case of assets of own construction, cost comprises direct and indirect expenses for labour, materials, components and sub-suppliers.Interest expenses on loans raised directly for financing the construction of property, plant and equipment are recognised in cost over the period of construction. All indirectly attributable borrowing expenses are recognised in the income statement.Depreciation based on cost reduced by any residual value is calculated on a straight-line basis over the expected useful lives of the assets, which are:Land and buildings20-40 yearsPlant and machinery 2-10 yearsOther fixtures and fittings, tools and equipment2-10 yearsLeasehold improvements 5-12 yearsAssets costing less than DKK 20,000 are expensed in the year of acquisition.Impairment of fixed assetsThe carrying amounts of property, plant and equipment are reviewed on an annual basis to determine whether there is any indication of impairment other than that expressed by amortisation and depreciation. If so, an impairment test is carried out to determine whether the recoverable amount is lower than the carrying amount, and the asset is written down to its lower recoverable amount.The recoverable amount of the asset is calculated as the higher of net selling price and value in use. Where a recoverable amount cannot be determined for the individual asset, the assets are assessed in the smallest group of assets for which a reliable recoverable amount can be determined based on a total assessment.Assets for which a separate value in use cannot be determined as the asset does not on an individual basis generate future cash flows are reviewed for impairment together with the Group of assets to which they are attributable.Investments in subsidiariesInvestments in subsidiaries are recognised and measured under the equity method.The items “Investments in subsidiaries” in the balance sheet include the proportionate ownership share of the net asset value of the enterprises calculated on the basis of the fair values of identifiable net assets at the time of acquisition with deduction or addition of unrealised intercompany profits or losses and with addition of any remaining value of positive differences (goodwill).The total net revaluation of investments in subsidiaries is transferred upon distribution of profit to "Reserve for net revaluation under the equity method" under equity. The reserve is reduced by dividend distributed to the Parent Company and adjusted for other equity movements in subsidiaries.DepositsDeposits compromise prepaid deposits concerning rental agreements.InventoriesInventories are measured at the lower of cost under the weighted average method and net realisable value. The net realisable value of inventories is calculated at the amount expected to be generated by sale in the process of normal operations with deduction of selling expenses and costs of completion. The net realisable value is determined with consideration for the marketability, obsolescence and development in expected sales sum.The cost of goods for resale, raw materials and consumables equals landed cost.The cost of finished goods, semi-finished goods and work in progress comprises the cost of raw materials, consumables and direct labour with addition of indirect production costs. Indirect production costs comprise the cost of indirect materials and labour as well as maintenance and depreciation of the machinery, factory buildings and equipment used in the manufacturing process as well as costs of factory administration and management.ReceivablesReceivables are measured in the balance sheet at the lower of amortised cost and net realisable value, which corresponds to nominal value less provisions for bad debts. Provisions for bad debts are determined on the basis of an individual assessment of each receivable, and in respect of trade receivables, a general provision is also made based on the Company’s experience from previous years.Contract work in progressContract work in progress is measured at the selling price of the work performed calculated on the basis of the stage of completion. The stage of completion is measured by the proportion that the contract expenses incurred to date bear to the estimated total contract expenses. Contract work in progress includes agreements of delivery of projects with a high level of individual customization. Where it is probable that total contract expenses will exceed total revenues from a contract, the expected loss is recognised as an expense in the income statement.Where the selling price cannot be measured reliably, the selling price is measured at the lower of expenses incurred and net realisable value.Prepayments and payments received on account are set off against the selling price. The individual contracts are classified as receivables when the net selling price is positive and as liabilities when the net selling price is negative.Expenses relating to sales work and the winning of contracts are recognised in the income statement as incurred.PrepaymentsPrepayments comprise prepaid expenses concerning rent, insurance premiums, subscriptions and interest.EquityDividendDividend distribution proposed by Management for the year is disclosed as a separate equity item.ProvisionsProvisions are recognised when - in consequence of an event occurred before or on the balance sheet date - the Company has a legal or constructive obligation and it is probable that economic benefits must be given up to settle the obligation.Provisions are made for warranty obligations in respect of repair work within the warranty period of 1 year. Provisions are measured and recognised based on experience with guarantee work.Deferred tax assets and liabilitiesDeferred tax is recognised in respect of all temporary differences between the carrying amount and the tax base of assets and liabilities. However, deferred tax is not recognised in respect of temporary differences concerning goodwill not deductible for tax purposes and other items - apart from business acquisitions - where temporary differences have arisen at the time of acquisition without affecting the profit for the year or the taxable income.Deferred tax is measured on the basis of the tax rules and tax rates that will be effective under the legislation at the balance sheet date when the deferred tax is expected to crystallise as current tax. In cases where the computation of the tax base may be made according to alternative tax rules, deferred tax is measured on the basis of the intended use of the asset and settlement of the liability, respectively.Deferred tax assets, including the tax base of tax loss carry-forwards, are measured at the value at which the asset is expected to be realised, either by elimination in tax on future earnings or by set-off against deferred tax liabilities.Deferred tax assets and liabilities are offset within the same legal tax jurisdiction.Current tax receivables and liabilitiesCurrent tax receivables and liabilities are recognised in the balance sheet at the amount calculated on the basis of the expected taxable income for the year adjusted for tax on taxable incomes for prior years. Tax receivables and liabilities are offset if there is a legally enforceable right of set-off and an intention to settle on a net basis or simultaneously.Financial debtsFixed-interest loans, such as loans from credit institutions, are recognised initially at the proceeds received net of transaction expenses incurred. Subsequently, the loans are measured at amortised cost; the difference between the proceeds and the nominal value is recognised as an interest expense in the income statement over the loan period.Other debts are measured at amortised cost, substantially corresponding to nominal value.Deferred incomeDeferred income comprises amount received for goods or services which have not yet been delivered.Cash Flow StatementThe cash flow statement shows the Group’s cash flow for the year broken down by operating, investing and financing activities, changes for the year in cash and cash equivalents as well as the Group’s cash and cash equivalents at the beginning and end of the year.No cash flow statement has been prepared for the Parent Company as the Parent Company cash flows are included in the Consolidated Cash Flow Statement.Cash flows from operating activitiesCash flows from operating activities are calculated as the net profit/loss for the year adjusted for changes in working capital and non-cash operating items such as depreciation, amortisation and impairment losses, and provisions. Working capital comprises current assets less short-term debt excluding items included in cash and cash equivalents.Cash flows from investing activitiesCash flows from investing activities comprise cash flows from acquisitions and disposals of intangible assets, property, plant and equipment as well as fixed asset investments.Cash flows from financing activitiesCash flows from financing activities comprise cash flows from the raising and repayment of long-term debt, movement in credit institutions as well as payments to and from shareholders.Cash and cash equivalentsCash and cash equivalents comprise "Cash at bank and in hand".The cash flow statement cannot be immediately derived from the published financial records.Explanation of financial ratiosGross marginEBITDA marginEBITA marginProfit marginReturn on assetsSolvency ratioReturn on equity 1882071000 1752673000 72094000 62643000 1586510000 1501104000 69134000 59846000 295561000 251569000 2960000 2797000 187133000 186571000 0 0 119900000 106690000 0 0 -11472000 -41692000 2960000 2797000 67316000 5256000 0 0 0 0 0 5117000 27350000 27484000 0 0 28494000 -63920000 2960000 -2320000 0 0 -14548000 -67272000 -267000 1073000 0 0 13199000 15079000 31734000 15881000 63696000 29974000 41425000 22713000 -22270000 -77742000 -21279000 -76424000 -697000 -2666000 2710000 28000 -21573000 -75076000 -23989000 -76452000 246553000 270811000 0 0 35653000 39129000 0 0 14123000 16937000 0 0 9807000 8352000 0 0 16430000 70241000 0 0 322566000 405470000 0 0 90551000 93818000 0 0 57685000 35129000 0 0 14584000 13222000 2374000 1100000 8778000 9825000 119000 134000 171598000 151994000 2493000 1234000 0 0 617800000 563354000 16988000 15765000 0 0 422000 5260000 0 0 2022000 1855000 3096000 3010000 0 0 136495000 136483000 19432000 22880000 757391000 702847000 513596000 580344000 759884000 704081000 294924000 256370000 0 0 223002000 230267000 0 0 46225000 39698000 0 0 33652000 0 749000 61000 348323000 137884000 51137000 49955000 1197000 164000 3171000 14617000 0 0 81003000 50133000 5524000 6072000 21728000 56632000 5710000 6028000 427015000 441363000 394406000 150148000 87527000 103554000 290000 503000 809466000 801287000 394696000 150651000 1323062000 1381631000 1154580000 854732000 80000000 75000000 80000000 75000000 7941000 9223000 0 0 -5827000 -1623000 0 0 0 0 0 0 182052000 44762000 184166000 52362000 264166000 127362000 264166000 127362000 6462000 5097000 0 0 270628000 132459000 264166000 127362000 0 0 247596000 173114000 10068000 6910000 0 0 27662000 27826000 0 0 66258000 55207000 0 0 103988000 89943000 247596000 173114000 103318000 226215000 0 74536000 114301000 262780000 202994000 346307000 1515000 990000 0 0 219134000 489985000 202994000 420843000 11849000 43064000 165245000 0 211403000 108675000 177483000 64874000 117062000 109553000 0 0 254822000 274908000 9475000 3953000 1857000 423000 65497000 46363000 9204000 17592000 0 0 16042000 15343000 4714000 1499000 107073000 99686000 17410000 16724000 729312000 669244000 439824000 133413000 948446000 1159229000 642818000 554256000 1323062000 1381631000 1154580000 854732000 75000000 9223000 -1623000 44762000 127362000 5097000 5000000 0 0 144130000 149130000 0 149130000 0 0 -4204000 -4204000 -2000 -4206000 0 -1643000 0 0 -1643000 0 -1643000 0 -361000 0 0 -361000 0 -361000 0 0 0 17149000 17149000 -1049000 16100000 0 0 0 -23989000 -23989000 2416000 80000000 7941000 -5827000 182052000 264166000 6462000 75000000 0 52362000 5000000 0 144130000 149130000 0 4207000 -2000 4205000 0 -1281000 0 -1281000 0 0 17149000 17149000 0 5488000 -29477000 80000000 0 184166000 49113000 126924000 -16926000 8642000 10614000 60490000 13199000 15079000 63696000 29974000 -39883000 45595000 -13203000 7234000 -26680000 38361000 0 6031000 65827000 51626000 52662000 118611000 1719000 16049000 167088000 0 9009000 477000 4972000 64000 60861000 -191776000 0 101485000 302066000 11720000 102728000 18841000 149130000 0 -50208000 108606000 -16027000 -44809000 103554000 148363000 87527000 -87527000 -103554000 Going concernThe Annual report is prepared under the condition of going concern. The ultimate parent company Al-Ayuni Investment & Contracting Co. who owns 100% of the share capital has issued a parent guarantee, which expires on 30 June 2025. The guarantee secures the needed cash to ensure the going concern of the company. - LedelsesberetningGroupParent Company2023 2022 2023 2022DKK '000 DKK '000 DKK '000 DKK '000RevenueGeographical segmentsEurope364.206 421.834 60.906 52.874Outside Europe1.517.865 1.330.839 11.188 9.7691.882.071 1.752.673 72.094 62.643Activity segmentsProject sales530.968 501.613 0 0Aftersales1.351.103 1.251.060 0 0Other0 0 72.094 62.6431.882.071 1.752.673 72.094 62.643 StaffWages and salaries414.550 349.813 36.840 29.903Pensions19.242 16.636 2.531 2.151Other social security expenses33.722 38.888 357 281467.514 405.337 39.728 32.335The booked salaries for the Executive boards for 2023 contains DKK 0k concerning bonus from previous years (2022: DKK -142k). Fee to auditors appointed at the general meetingPricewaterhouseCoopersAudit fee1.364 1.695 187 172Other assurance engagements 45 60 0 15Tax assistance311 138 142 0Non-audit services534 563 162 97Other audit companiesAudit fee and non-audit services 1.246 1.579 139 1623.500 4.035 630 446 Remuneration to the Executive board and Board of directors amounts to:Executive board6.289 5.626 4.813 4.290Board of directors60 60 60 606.349 5.686 4.873 4.350 1836 1637 44 40 Other operating incomeOther operating income in the MAKEEN Group mainly consist of profit from the sale of Intellectual Property Rights related to Plastcon technology of DKK 64,247k. Income from investments in subsidiaries after taxShare of earnings of subsidiaries after tax 0 0 1.767 -51.193Amortisation of goodwill 0 0 -16.315 -16.0790 0 -14.548 -67.272 Financial incomeInterest received from group enterprises0 0 25.041 8.432Exchange adjustments9.346 12.997 6.612 7.273Other financial income3.853 2.082 81 17613.199 15.079 31.734 15.881 Financial expensesInterest expenses to group enterprises 17.149 8.540 22.683 13.308Bank charges 30.164 10.498 13.763 140Exchange adjustments14.563 6.302 4.979 6.984Other financial expenses 1.820 4.634 0 2.28163.696 29.974 41.425 22.713 Tax on profit/loss for the yearCurrent tax for the year29.976 19.654 2.162 223Deferred tax for the year-31.034 -19.704 548 -195-1.058 -50 2.710 28which breaks down as follows:Tax on profit/loss for the year-697 -2.666 2.710 28Tax on changes in equity-361 2.616 0 0-1.058 -50 2.710 28 0 0 5488000 -27746000 2416000 1376000 0 0 -23989000 -76452000 -29477000 -48706000 Intangible assetsDevelop-Develop-mentCustomer Order mentprojects inGroup Goodwill BrandrelationsbacklogprojectsprogressDKK '000 DKK '000 DKK '000 DKK '000 DKK '000 DKK '000Cost at 1 January 2023 434.613 45.367 23.362 3.917 51.847 70.241Exchange adjustments -1.783 -1.486 -766 -128 0 0Additions for the year 0 0 0 0 408 65.419Transferred 0 0 0 0 8.747 -8.747Disposals for the year -616 0 0 0 0 -106.251Cost at 31 December 2023432.214 43.881 22.596 3.789 61.002 20.662Amortisation at 1 January 2023163.802 6.238 6.425 3.917 43.495 0Exchange adjustments -326 -251 -260 -128 0 0Amortisation for the year 22.801 2.241 2.308 0 7.700 0Reversal of impairment Impairment for the year 0 0 0 0 0 4.232and amortisation of sold assets-616 0 0 0 0 00Amortisation at 31 December 2023185.661 8.228 8.473 3.789 51.195 4.232Carrying amount at 31 December 2023246.553 35.653 14.123 0 9.807 16.430Amortised over 10-20 years 20 years 10 years 9-18 months 3-5 yearsAmortisation and impairment of intangible assets are recognised in the following items:Cost of sales11.932Amortisation, goodwill 27.35039.282GoodwillInvestment in subsidiaries are considered to be of strategic importance for the Group. In consideration of the Groups plans for development and increasing the activities in the acquired subsidiaries the useful life of goodwill is set up to 20 years.Development projectsCompleted development projects comprise development and testing of components and systems within the area of gas filling plants. Completed development projects are amortized over 3-5 years.The management has not identified any indication of impairment in relation to the carrying amount.Development project in progressDevelopment projects mainly consists of development of new components, systems and software within the area of LPG filling plants, CRYO plants and PlastCon plants. The costs mainly consists of external costs.The new components and systems leads to competitive advantage and thus directly influence the activity and future financial performance of the Group.Disposals for the year relates to the sale of Intellectual Property Rights related to Plastcon technology.Impairment relates to research and development activites within the CRYO division. Property, plant and equipmentOtherfixtures andfittings,LeaseholdLand and Plant andtools andimprove-GroupbuildingsmachineryequipmentmentsDKK '000 DKK '000 DKK '000 DKK '000Cost at 1 January 2023 108.294 140.869 68.789 13.141Exchange adjustments -551 -1.232 -196 -226Additions for the year 1.659 43.020 7.109 874Transferred -316 158 0 158Disposals for the year 0 -6.665 -612 0Cost at 31 December 2023 109.086 176.150 75.090 13.947Impairment losses and depreciation at 1 January 202314.476 105.740 55.567 3.316Exchange adjustments 35 -550 -51 -40Depreciation for the year 4.024 6.917 5.677 1.893Impairment for the year0 10.298 0 0Reversal of impairment and depreciation of sold assets0 -3.940 -687 0Impairment losses and depreciation at 31 December 202318.535 118.465 60.506 5.169Carrying amount at 31 December 202390.551 57.685 14.584 8.778Depreciated over 20-40 years 2-10 years 2-10 years 5-12 yearsDepreciation and impairment of property, plant and equipment are recognised in the following items:2023DKK '000Cost of sales21.798Distribution expenses 1.619Administrative expenses5.39228.809Plant and machineryImpairment relates to investment in a facility management contract and a syngas solution within Plastcon in the Envirotech division.Otherfixtures andfittings,Leasehold tools andimprove-Parent CompanyequipmentmentsDKK '000 DKK '000Cost at 1 January 2023 8.920 147Additions for the year 1.689 0Cost at 31 December 2023 10.609 147Impairment losses and depreciation at 1 January 2023 7.820 13Depreciation for the year 415 15Impairment for the year 0 0Impairment losses and depreciation at 31 December 2023 8.235 28Carrying amount at 31 December 20232.374 119Depreciated over 2-10 years 2-10 yearsDepreciation and impairment of other fixtures and leasehold improvement are recognised in the 2023DKK '000Cost of sales 430430 Fixed assets investmentsInvestments Other Groupin associatesinvestmentsDepositsDKK '000 DKK '000 DKK '000Cost at 1 January 2023 20.737 0 1.855Exchange adjustments 5 0 -17Additions for the year 1.500 0 222Disposals for the year -96 0 -38Cost at 31 December 2023 22.146 0 2.022½Value adjustment at 1 January 2023 -4.972 5.260 0Exchange adjustments 9 0 0Net profit/loss for the year -195 0 0Other adjustments 0 -4.838 0Value adjustments at 31 December 2023 -5.158 422 0Carrying amount at 31 December 202316.988 422 2.022Investments Loans to in group Parent CompanysubsidiariesDepositsenterprisesDKK '000 DKK '000 DKK '000Cost at 1 January 2023 429.766 3.010 136.483Exchange adjustments 0 0 -1.257Additions for the year 0 86 34.921Disposals for the year 0 0 0Cost at 31 December 2023 429.766 3.096 170.147Value adjustment at 1 January 2023-39.526 0 0Exchange adjustments -4.207 0 0Net profit/loss for the year -14.548 0 0-1.281 0 0Value adjustment at 31 Fair value adjustment of hedging instruments, netDecember 2023-59.562 0 0Equity investments with negative net asset value transferred to provision247.596 0 0Carrying amount at 31 December 2023617.800 3.096 170.147Fixed assets617.800 3.096 136.495Current assets0 0 33.652617.800 3.096 170.147Of this amount, goodwill amounts to 284.605Subsidiaries are recognised and measured as separate entities.Investments in subsidiaries are specified as follows:ShareVotes andName Place of registered officecapitalownershipMAKEEN Gas Solutions A/SDenmarkkDKK 15,000100%MAKEEN EnviroTech A/S Denmark kDKK 500 100%House of MAKEEN Energy A/SDenmark kDKK 400 100%MAKEEN ProSupply ApSDenmark kDKK 1,000 100%MAKEEN Energy for MaintenanceSaudi ArabiakSAR 0 100% Contract work in progressSelling price of production 939.911 960.929 0 0Payments received on account-1.010.748 -1.030.784 0 0Contract work in progress, net-70.837 -69.855 0 0Recognised in the balance sheet as follows:Contract work in progress recognised in assets46.225 39.698 0 0Prepayments received recognised in debt½ ½-117.062 -109.553 0 0-70.837 -69.855 0 0 GroupParent Company2023 2022 2023 2022DKK '000 DKK '000 DKK '000 DKK '000InventoriesRaw materials and consumables287.553 247.952 0 0Work in progress7.371 8.418 0 0294.924 256.370 0 0 PrepaymentsPrepayments21.728 56.632 5.710 6.02821.728 56.632 5.710 6.028 Provision for deferred taxFixed assets 18.110 18.369 0 0Current assets 12.419 12.178 0 0Debt -1.443 -1.158 0 0Tax loss carry-forward -1.424 -1.563 0 027.662 27.826 0 0Provision for deferred tax at 1. January 27.826 26.047 0 0Amounts recognised in the income statement for the year-525 3.219 0 0Amounts recognised in equity for the year 361 -1.440 0 0Provision for deferred tax at 31. December27.662 27.826 0 0Deferred tax assetFixed assets14.827 -3.039 66 176Current assets51.414 40.926 -356 -393Debt 2.183 957 1.155 957Tax loss carry-forward 12.579 11.289 4.659 5.33281.003 50.133 5.524 6.072Deferred tax asset at 1. January 50.133 28.650 6.072 5.877Amounts recognised in the income statement for the year30.870 22.659 -548 195Deferred tax asset at 31. DecemberAmounts recognised in equity for the year 0 -1.176 0 0Deferred tax asset at 31. December81.003 50.133 5.524 6.072Based on the budgets for the next three years, management has considered it likely that prior years tax losses and unused tax credits can be utilized within 3-5 years. EquityThe share capital consists of 800.000 shares of a nominal amount of DKK 100. No shares carry any special rights.Share capital for the past five years is specified as follows:2023 2022 2021 2020 2019DKK '000 DKK '000 DKK '000 DKK '000 DKK '000Share capital 80.000 75.000 75.000 75.000 75.000 Other provisionsOther provisions are related to retirement obligations and provision for loss-making sales projects. GroupParent Company2023 2022 2023 2022DKK '000 DKK '000 DKK '000 DKK '000Warranty obligationsWithin 1 year 10.068 6.910 0 010.068 6.910 0 0 Long-term debtPayments due within 1 year are recognised in short-term debt. Other debt is recognised in long-term debt.The debt falls due for payment as specified below:GroupParent Company2023 2022 2023 2022DKK '000 DKK '000 DKK '000 DKK '000Credit institutionsAfter 5 years41.260 66.559 0 31.535Between 1 and 5 years62.058 159.656 0 43.001Long-term part103.318 226.215 0 74.536Within 1 year11.849 43.064 0 0115.167 269.279 0 74.536Payables to group enterprisesBetween 1 and 5 years114.301 262.780 202.994 346.307Long-term part114.301 262.780 202.994 346.307Within 1 year0 0 165.245 0114.301 262.780 368.239 346.307Other payablesBetween 1 and 5 years1.515 990 0 0Long-term part1.515 990 0 0Within 1 year0 0 0 0Kortfristet del1.515 990 0 0 GroupParent Company2023 2022 2023 2022DKK '000 DKK '000 DKK '000 DKK '000Contingent assets, liabilities and other financial obligationsThe future minimum lease payments under operating leases are as follows:No later than 1 year10.462 12.137 6.309 5.197Later than 1 year and no later than 5 years 17.973 18.749 24.706 20.786Later than 5 years3.540 6.307 36.661 36.3760 031.975 37.193 67.676 62.359GroupThe Group's banks have at 31 December 2023 issued bank guarantees totalling DKK 142,325k towards the Group's customers and banks.The Group is a party in a pending claim for damages related to product liability, and also a party in a mutual claim for contract breach. The outcome of these claims are expected not to constitute financial obligations on part of the Group beyond what is allocated in the Annual Report.The Group has issued a guarantee for MAKEEN Gas Solutions Lanka (Private) Ltd.'s engagement with Sampath Bank for total EUR 1,850k.The Group has issued a mortgage bond with security in land and buildings with carrying amount of total DKK 61,604k.The Group has issued a guarantee with security in plant and machinery with carrying amount of total USD 343k.The Group has issued a guarantee with security in inventory and trade receivables with carrying amount of total INR 862,915k.The Group has provided security towards banks with the shares of MAKEEN ProSupply ApS, Makeen ProSupply North America and Gas Equipment Company Inc' for Makeen ProSupply North America's engagement with the bank. The consolidated equity value of the companies' shares is DKK 108,705k.Parent CompanyThe Company's banks have at 31 December 2023 issued bank guarantees totalling DKK 2,425k towards the Company's customers and banks.The Company has issued a surety guarantee for MAKEEN EnviroTech A/S, House of MAKEEN Energy A/S, MAKEEN Prosupply ApS, MAKEEN Prosupply North America and MAKEEN Gas Solutions A/S' engagement with banks for a total of DKK 284,089k. The Danish companies in the Group are subject to mandatory Danish national joint taxation. The jointly taxed companies share the liability for the Danish income tax etc. The Company has provided security towards banks with the shares of MAKEEN ProSupply ApS, Makeen ProSupply North America and Gas Equipment Company Inc' for Makeen ProSupply North America's engagement with the bank. The consolidated equity value of the companies' shares is DKK 108,705k.The parent company has issued a limited parent guarantee to MAKEEN EnviroTech A/S and Gas EquipmenCo. Inc., which expire at the next annual general meeting. Related parties and Group Annual ReportTransactionsThe Company has chosen only to disclose transactions which have not been made on arm's length basis in accordance with section 98(c)(7) of the Danish Financial Statements Act.The Company has received subsidies from Al Ayuni Contracting & Investment Company for DKK 17,149k. Besides the received subsidies from Al Ayuni Contracting & Investment Company all transactions with related parties are on arm's length basis. Group Annual ReportThe Company is included in the Group Annual Report for the Ultimate parent company Al Ayuni Investment & Contracting Company.The Group Annual Report can be obtained from the following address:Al Ayuni Investment & Contracting Company3769 ath thumamah rd, ar rabiUnit no. 2Riyadh 13316 – 8580Saudi Arabia Subsequent eventsIn January 2024 the Makeen Group acquired FAS Flüssiggas Anlagen GmbH based in Salzgitter, Germany, who will be an integrated part of MAKEEN Gas Equipment division. The acquisition is expecting to strengthening the global business and network of Makeen Gas Equipment.At May 31st 2024 a debt conversion of EUR 15,337k equal to DKK 114,440k has been carried out, of which DKK 5,000k was added as Share Capital and DKK 109,440k as Share Premium.No events materially affecting the assessment of the financial position of the Company by 31 December 2023 have occurred after the balance sheet date. Derivative financial instrumentsIt is group policy to hedge material expected currency cash flows in currencies not closesely correlated to EUR.Fair value of derivatives recognised in the balance sheets as of 31 December:Group Parent Company2023 2022 2023 2022DKK '000 DKK '000 DKK '000 DKK '000Forward exchange contracts, DKK/USD-2.025 -2.094 -2.025 -2.094Interest rate swaps 10.182 11.825 0 08.157 9.731 -2.025 -2.094Cash flow hedges10.182 11.825 0 0Fair value hedges-2.025 -2.094 -2.025 -2.0948.157 9.731 -2.025 -2.094Assets422 5.260 0 0Liabilities-2.025 -2.094 -2.025 -2.094-1.603 3.166 -2.025 -2.094Gains and losses recognised in the hedging reserve in the equity on interest rate swaps as of 31 December 2023 will be recognised in profit and loss in the period or periods during which the hedged interests and forecast sales take place (1-15 years). The Group's banks have determined the fair value. Cash flow statement - adjustmentsFinancial income -13.199 -15.079Financial expenses63.696 29.974Income from investments in associates before tax195 -1.073Depreciation and impairment of property, plant and machinery28.809 105.606Amortisation and impairment of intangible assets39.282 34.132Profit on sold assets-67.196 0Tax on profit/loss for the year -697 -2.666Adjustments deferred tax -31.034 -19.704Equity adjustments 13.683 18.659Change in minority interests' share of equity1.365 189Change in other provisions14.209 -23.11449.113 126.924Cash Flow Statement - change in working capitalChange in inventories -38.554 -54.275Change in receivables 7.265 7.313Change in contract work in progress-6.527 28.293Change in other receivables -1.182 -26.706Change in prepayments (assets)34.904 -28.062Change in prepayments from customers 7.509 1.229Change in trade payables etc. -20.086 110.953Change in receivables from group enterprises, net746 540Change in other payables 7.387 -38.961Change in deferred income-8.388 8.318-16.926 8.642 Annual report Auditor's report on audited financial statements ParsePort XBRL Converter 2023-01-01 2023-12-31 2022-01-01 2022-12-31 2024-06-27 Reporting class C, large enterprise 2024-06-27 36718463 Makeen Energy A/S Alsvej 21 8940 Randers SV Opinion Basis for Opinion 2024-06-27 33771231 PricewaterhouseCoopers Jens Chr. Skous Vej 1 8000 Aarhus C DK 0