Årsrapport 30700228 EY Godkendt Revisionspartnerselskab Værkmestergade 25 Postboks 330, 8100 Aarhus C 2024-01-01 2024-12-31 2023-01-01 2023-12-31 17472631 BouMatic A/S Jernvej 2 6900 Skjern 1993-12-01 Ringkøbing-Skjern 76945500 www.boumatic.dk Ringkjøbing Landbobank EY Godkendt Revisionspartnerselskab 30700228 Værkmestergade 25 8100 Aarhus C 2025-07-02 Jonathan Morreale Regnskabsklasse C, stor virksomhed Revisionspåtegning Grundlag for konklusion Konklusion true 2025-07-02 2025-07-02 CaseWare Working Papers Skjern Henrik Outzen Steven Robert Pretz Chairman Dean Lawrence Hampton Camilla Hagemann Haubjerg Aarhus Lone Nørgaard Eskildsen State Authorised Public Accountant mne32085 301060000 243681000 217450000 32394000 27173000 22876000 -4089000 12932000 10383000 9452000 7215000 Profit before interest and tax (EBIT) Profit before interest and tax (EBIT) Profit before interest and tax (EBIT) Profit before interest and tax (EBIT) Profit before interest and tax (EBIT) -11141000 -4304000 -6295000 -3152000 1170000 3204000 4884000 6522000 213790000 146214000 102796000 1094000 2119000 658000 455000 452000 34323000 31118000 26235000 -0.9 2.7 3.4 3.9 3.3 8.7 9.1 10.8 11.2 10.5 -0.9 3 3.8 4.5 4.3 EBITDA-margin EBITDA-margin EBITDA-margin EBITDA-margin EBITDA-margin 12 16.1 16.1 21.3 25.5 -27.5 16.5 9.8 17 28.4 104 89 92 450345556 474318740 411235599 430995719 39109957 43323021 22170889 13758812 41240091 31854432 20212242 15221767 -4088781 12931544 0 834322 11141073 5138664 -15229854 8627202 -3809800 1915036 -11420054 6712166 1958333 2458333 13703761 0 15662094 2458333 2370029 2658533 1327696 641768 3697725 3300301 19359819 5758634 26663208 29804311 7165585 7358197 77575387 102209386 788371 1057637 112192551 140429531 14982576 17236402 0 5326841 148587811 121308455 3014000 0 1445735 3559604 168030122 147431302 7101 7101 280229774 287867934 299589593 293626568 1000000 1000000 34804601 46224655 35804601 47224655 0 796482 742365 750000 742365 1546482 0 12960000 3576185 3479430 3576185 16439430 0 2980000 58727748 51213314 373704 373704 2603583 215125 33303046 58077668 151918868 92670946 0 2675536 12539493 20209708 259466442 228416001 263042627 244855431 299589593 293626568 1000000 33322535 0 6189954 6712166 1000000 46224655 -11420054 1000000 34804601 612521 815130 508161 705185 54540 10000 49820 99945 0 834322 5269767 5125484 5870012 0 1294 13180 0 2675536 -3809800 -760500 -11420054 6712166 2500000 287970 0 13703761 2500000 13991731 41667 287970 500000 0 541667 287970 1958333 13703761 12774329 3528673 142999 950961 12917328 4479634 10115796 2886905 431503 265033 10547299 3151938 2370029 1327696 153100 1000000 A 1000000 1000000 796482 279300 796482 3576185 0 3576185 0 77789195 82280936 7016012 7462866 520047 933756 85325254 90677558 85325254 90677558 146 165 2427249 0 0 0 2427249 0 Today, the Board of Directors and the Executive Board have discussed and approved the annual report of BouMatic A/S for the financial year 1 January - 31 December 2024. The annual report is prepared in accordance with the Danish Financial Statements Act. In our opinion, the financial statements give a true and fair view of the financial position of the Company at 31 December 2024 and of the results of the Company's operations for the financial year 1 January - 31 December 2024. Further, in our opinion, the Management's review gives a fair review of the matters discussed in the Management's review. We recommend that the annual report be approved at the annual general meeting. To the shareholders of BouMatic A/S We have audited the financial statements of BouMatic A/S for the financial year 1 January - 31 December 2024, which comprise income statement, balance sheet, statement of changes in equity and notes, including accounting policies. The financial statements are prepared in accordance with the Danish Financial Statements Act. In our opinion, the financial statements give a true and fair view of the financial position of the Company at 31 December 2024 and of the results of the Company's operations for the financial year 1 January - 31 December 2024 in accordance with the Danish Financial Statements Act. We conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the "Auditor's responsibilities for the audit of the financial statements" section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Independence We are independent of the Company in accordance with the International Ethics Standards Board for Accountants' International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the Danish Financial Statements Act and for such internal control as Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, Management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting in preparing the financial statements unless Management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Our objectives are to obtain reasonable assurance as to whether the financial statements as a whole are free from material misstatement, whether due to fraud or error and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements. As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management. Conclude on the appropriateness of Management's use of the going concern basis of accounting in preparing the financial statements and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern. Evaluate the overall presentation, structure and contents of the financial statements, including the note disclosures, and whether the financial statements represent the underlying transactions and events in a manner that gives a true and fair view. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Management is responsible for the Management's review. Our opinion on the financial statements does not cover the Management's review, and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the Management's review and, in doing so, consider whether the Management's review is materially inconsistent with the financial statements or our knowledge obtained during the audit, or otherwise appears to be materially misstated. Moreover, it is our responsibility to consider whether the Management's review provides the information required under the Danish Financial Statements Act. Based on the work we have performed, we conclude that the Management's review is in accordance with the financial statements and has been prepared in accordance with the requirements of the Danish Financial Statement Act. We did not identify any material misstatement of the Management's review. For terms and definitions, please see the accounting policies. The Company develops, manufactures and markets traditional milking plants, milking rotaries, slurry equipment, computerized feeding plants and related accessories for the milking sector with dairy stock. The equipment is marketed under the names SAC, Boumatic and Hokofarm. Boumatic’s brand is sold in the Nordic markets and the Baltic countries. SAC brand is sold in whole Europe except in France, Hokofarm is sold in whole Europe. The company also provides Procurement and warehousing serviced to other European companies of the groups, especially to Boumatic Robotics in Netherlands and to Boumatic Gascoigne Melotte in Belgium. The income statement for 2024 shows a loss of DKK 11,420 thousand against a profit of DKK 6,712 thousand last year, and the balance sheet at 31 December 2024 shows equity of DKK 35,805 thousand. In the annual report for 2023, Management expected a profit before tax in the range of DKK 8,000-12,000 thousand. Management considers the Company's financial performance in the year unsatisfactory. The loss in 2024 is mainly due to extraordinary inventory depreciation cost and exchange rate adjustment of intercompany loans in USD. The Company invests considerable resources in training and development of the Company's employees at several levels of the organisation. This is based on a systematic and targeted approach in the form of both compulsory and voluntary training of the Company's employees. Investments in competence development are increasing and constitute an important pillar in the Company's continued development. Price risks The company is purchasing most of its products from the parent company in the USA, an increase of the Tarif’s in Europe would lead to purchase price increases. However, most of the purchased parts are resold to other companies in the group at a price method of cost+5%, there is then no financial risk on this part of the business. Currency risks The Company is dependent on the general trends in the foreign exchange markets, since both sales and purchases are essentially in USD, EUR and DKK. The Company's commercial currency risk is not hedged. Interest rate risks Due to the Company's equity ratio and financial resources, moderate changes in the interest rate level will not have any significant direct effect on earnings. Therefore, interest rate risks will not be hedged. Credit risks The Company is not exposed to material credit risks in relation to individual customers and other collaborators. The Company acts in accordance with the applicable environmental and safety legislation. Statutory report on corporate social responsibility, in alignment with § 99 a. The company’s primary activity includes development, manufactures and markets traditional milking plants, milking rotaries, slurry equipment, computerized feeding plants and related accessories for the agricultural sector with dairy stock. Respect for Human Rights BouMatic A/S supports and respects the protection of internationally recognized human rights and upholds the freedom of association for all employees. We treat colleagues, customers, and business partners with respect and fairness, and we are committed to safeguarding the privacy of our employees. We adhere to the UN Guiding Principles on Business and Human Rights and have zero tolerance for any form of human rights abuse. To support this commitment, BouMatic A/S relies on recognized industry standards, as we have identified the highest risk of human rights violations within the procurement of imported raw materials. We are committed to responsible corporate conduct and expect the same from our suppliers. We continuously monitor and follow up with our suppliers, and this process has not raised any concerns in the financial year 2024. No human rights violations were identified during the reporting period. Looking ahead, we intend to further strengthen our focus on human rights. Boumatic A/S policies and guidelines are part of the whistleblower scheme. Environmental Matters and Climate Impact As a responsible company, we recognize our obligation to contribute to sustainable development. We are committed to acting responsibly in relation to both our internal and external environments. Our primary environmental risk is the emission of GHG resulting from our production activities. At BouMatic A/S, we strive to minimize our environmental impact by managing chemicals and waste responsibly and by working to reduce energy consumption and waste generation. In 2024, we transitioned from gas to district heating – a significant step toward reducing our environmental footprint. District heating is typically produced using more energy-efficient and sustainable sources, such as surplus heat from industrial processes or renewable energy. By moving away from gas, we reduce our reliance on fossil fuels and lower our GHG emissions, contributing to a cleaner and more sustainable future. We intend to establish a climate account in the future to better understand our emissions and define concrete actions and targets for GHG reduction. Social and Employee Matters BouMatic A/S is committed to ensuring a safe and healthy physical and mental working environment and strives to prevent workplace accidents. Proper working conditions are essential for all employees, supported by clear policies that outline professional, social, and behavioral expectations. The primary risk in this area is a limited labor force. A safe and supportive work environment is essential for attracting and retaining employees. As of December 31, 2024, BouMatic A/S has focused on improving employee satisfaction in both the short and long term. This initiative has been carried out in collaboration with the consultancy Cabi, which has supported us in conducting targeted annual well-being surveys and ensuring that the results lead to meaningful improvements. As part of this well-being initiative, Danish managers at BouMatic participated in a series of workshops facilitated by Cabi. These sessions provided new tools for communication, conflict management, and early detection of dissatisfaction. Our staff handbook and personnel policies were also updated. Overall, the management team has been strengthened and has gained increased awareness of the importance of clear communication and employee well-being. Our goal is to further empower the Health and Safety Committee to take increasing responsibility for promoting employee well-being, ensuring it remains an integrated part of BouMatic A/S’s culture. Boumatic A/S policies and guidelines are part of the employee handbook Anti-Corruption and Bribery BouMatic A/S is committed to fair and transparent competition and adheres to antitrust and competition laws in all countries where we operate. We offer our products and services based on their merits and do not tolerate any form of bribery—whether offered or received—to influence or encourage improper actions. We recognize that operating across various countries and cultures may expose employees to situations involving corruption, bribery, or facilitation payments. To mitigate this risk, BouMatic A/S has implemented a Whistleblower Scheme that enables all employees to report suspected serious misconduct, legal violations, or breaches of BouMatic A/S’s key policies and guidelines. Bribery or any form of corruption is strictly unacceptable. In 2024, no incidents of corruption or bribery were reported at BouMatic A/S. In 2025, we will further strengthen our focus on anti-corruption and bribery compliance. Boumatic A/S policies and guidelines are part of the whistleblower scheme. Data accountability At BouMatic A/S, it is highly emphasized that our use of IT systems and personal data is done in a responsible manner. Protection of personal data about our employees and customers create trust in us as a workplace and supplier. We therefore ensure that BouMatic A/S processes personal data about employees and customers in accordance with the legislation on personal data protection and IT security requirements. Policy on data ethics Boumatic A/S does not have a formal policy, because the group only to a limited extent collects and processes data, does not utilize new technologies for the Company’s core activities and does not make specific data analysis, evaluations or segmentations, either on its own or through external suppliers. No events materially affecting the Company's financial position have occurred subsequent to the financial year end. Due to product rationalization and many costs savings, the Company expects a profit before taxes in the range of DKK 25,000 – 30,000 thousand in 2025. The annual report of BouMatic A/S for 2024 has been prepared in accordance with the provisions in the Danish Financial Statements Act applying to large reporting class C entities. The company has transitioned from medium-sized reporting class C to large reporting class C effective for the financial year 2024. The accounting policies used in the preparation of the financial statements are consistent with those of last year, as the transition solely resulted in changed requirements for presentation and disclosures. Recognition and measurement are consistent with those of last year. Minor reclassifications have been made. With reference to section 86(4) of the Danish Financial Statements Act, no cash flow statement has been prepared. The Company's cash flows are reflected in the consolidated cash flow statement for the higher-ranking parent company BouMatic SAC Holding ApS. Reporting currency The financial statements are presented in Danish kroner (DKK). On initial recognition, transactions denominated in foreign currencies are translated at the exchange rate at the transaction date. Foreign exchange differences arising between the exchange rates at the transaction date and the date of payment are recognised in the income statement as financial income or financial expenses. Receivables and payables and other monetary items denominated in foreign currencies are translated at the exchange rate at the balance sheet date. The difference between the exchange rates at the balance sheet date and the date at which the receivable or payable arose or was recognised in the most recent financial statements is recognised in the income statement as financial income or financial expenses. The Company has chosen IAS 11/IAS 18 as interpretation for revenue recognition. Income from the sale of goods for resale and finished goods, is recognised in revenue when the most significant rewards and risks have been transferred to the buyer and provided the income can be measured reliably and payment is expected to be received. The date of the transfer of the most significant rewards and risks is based on standardised terms of delivery based on Incoterms® 2022. Production costs comprise costs incurred in generating the revenue for the year. Such costs include direct and indirect costs of raw materials, consumables and production staff, rent and leases, as well as depreciation on production plant. Production costs also comprise research and development costs that do not qualify for capitalisation and amortisation of capitalised development costs. Also, provision for losses on construction contracts is recognised. Distribution costs comprise costs related to the distribution of goods sold in the year and to sales campaigns, etc. carried out in the year, including costs related to sales staff, advertising, exhibitions and amortisation/depreciation. Sales and marketing costs are recognised in the income statement when the Company obtains control of the sales or marketing product. Administrative expenses include expenses incurred in the year for company management and administration, including expenses relating to administrative staff, Management, office premises and expenses as well as amortisation/depreciation of assets used for administrative purposes. Other operating expenses comprise items of a secondary nature relative to the Company's core activities, including losses on the sale of fixed assets etc. comprise wages and salaries, including holiday allowance and pensions, and other social security costs, etc., for the Company's employees. The item comprises amortisation/depreciation of intangible assets and property, plant and equipment. The basis of amortisation/depreciation, which is calculated as cost less any residual value, is amortised/depreciated on a straight line basis over the expected useful life. The expected useful lives of the assets are as follows: Completed development projects 5 years Acquired intangible assets 5 years New line years Plant and machinery 3-10 years Fixtures and fittings, other plant and equipment 3-7 years Financial income and expenses are recognised in the income statements at the amounts that concern the financial year. Net financials include interest income and expenses as well as allowances and surcharges under the advance-payment-of-tax scheme, etc. Tax for the year includes current tax on the year's expected taxable income and the year's deferred tax adjustments. The portion of the tax for the year that relates to the profit/loss for the year is recognised in the income statement, whereas the portion that relates to transactions taken to equity is recognised in equity. The entity is jointly taxed with other group entities. The total Danish income tax charge is allocated between profit/loss-making Danish entities in proportion to their taxable income (full absorption). Jointly taxed entities entitled to a tax refund are reimbursed by the management company based on the rates applicable to interest allowances, and jointly taxed entities which have paid too little tax pay a surcharge according to the rates applicable to interest surcharges to the management company. Other intangible assets include development projects and other acquired intangible rights, including software licences, distribution rights and development projects. Other intangible assets are measured at cost less accumulated amortisation and impairment losses. Development costs comprise expenses, salaries and amortisation directly or indirectly attributable to development activities. Development projects that are clearly defined and identifiable, where the technical feasibility, sufficient resources and a potential future market or development opportunities areidentifiable and where the Company intends to produce, market or use the project, are recognised as intangible assets provided that the cost can be measured reliably and that there is sufficient assurance that future earnings can cover production costs, selling costs and administrative expenses and development costs. Other development costs are recognised in the income statement as incurred. Development costs that are recognised in the balance sheet are measured at cost less accumulated amortisation and impairment losses. On completion of a development project, development costs are amortised on a straight-line basis over the estimated useful life. Property, plant and equipment Items of property, plant and equipment are measured at cost less accumulated depreciation and impairment losses. Cost includes the acquisition price and costs directly related to the acquisition until the time at which the asset is ready for use. Gains or losses are calculated as the difference between the selling price less selling costs and the carrying amount at the date of disposal. Gains and losses from the disposal of property, plant and equipment are recognised in the income statement as other operating income or other operating expenses. The Company has chosen IAS 17 as interpretation for classification and recognition of leases. On initial recognition, leases for assets that transfer substantially all the risks and rewards incident to the ownership to the Company (finance leases) are measured in the balance sheet at the lower of fair value and the present value of the future lease payments. In calculating the net present value, the interest rate implicit in the lease or the incremental borrowing rate is used as the discount factor. Assets held under finance leases are subsequently accounted for in the same way as the Company's other assets. The capitalised residual lease liability is recognised in the balance sheet as a liability, and the interest element of the lease payment is recognised in the income statement over the term of the lease. Leases that do not transfer substantially all the risks and rewards incident to the ownership to the Company are classified as operating leases. Payments relating to operating leases and any other rent agreements are recognised in the income statement over the term of the lease. The Company's aggregate liabilities relating to operating leases and other rent agreements are disclosed under "Contingent liabilities". The carrying amount of intangible assets and property, plant and equipment is assessed for impairment on an annual basis. Impairment tests are conducted on assets or groups of assets when there is evidence of impairment. The carrying amount of impaired assets is reduced to the higher of the net selling price and the value in use (recoverable amount). The recoverable amount is the higher of the net selling price of an asset and its value in use. The value in use is calculated as the present value of the expected net cash flows from the use of the asset or the group of assets and the expected net cash flows from the disposal of the asset or the group of assets after the end of the useful life. Previously recognised impairment losses are reversed when the reason for recognition no longer exists. Inventories are measured at cost in accordance with the FIFO method. Where the net realisable value is lower than cost, inventories are written down to this lower value. The net realisable value of inventories is calculated as the sales amount less costs of completion and expenses required to effect the sale and is determined taking into account marketability, obsolescence and development in the expected selling price. The cost of raw materials and consumables comprises the cost of acquisition plus delivery costs. The cost of finished goods and work in progress includes the cost of raw materials, consumables, direct labour and indirect production overheads. Indirect production overheads include the indirect cost of material and labour as well as maintenance and depreciation of production machinery, buildings and equipment and expenses relating to plant administration and management. Borrowing costs are not recognised in the cost. Goods for resale are measured at cost, which comprises the cost of acquisition plus delivery costs as well as other expenses directly attributable to the acquisition. The Company has chosen IAS 39 as interpretation for impairment write-down of financial receivables. Receivables are measured at amortised cost. An impairment loss is recognised if there is objective evidence that a receivable or a group of receivables is impaired. If there is objective evidence that an individual receivable has been impaired, an impairment loss is recognised on an individual basis. Receivables in respect of which there is no objective evidence of individual impairment are tested for objective evidence of impairment on a portfolio basis. The portfolios are primarily based on the debtors' domicile and credit ratings in line with the Company's risk management policy. The objective evidence applied to portfolios is determined based on historical loss experience. Impairment losses are calculated as the difference between the carrying amount of the receivables and the present value of the expected cash flows, including the realisable value of any collateral received. The effective interest rate for the individual receivable or portfolio is used as discount rate. Service supplies and contract work in progress for third parties are measured at the market value of the work performed less progress billings. The market value is calculated based on the stage of completion at the balance sheet date and the total expected income from the relevant contract. The stage of completion is calculated based on the expenses incurred relative to the expected total expenses relating to the relevant contract. Where the outcome of contract work in progress cannot be estimated reliably, the market value is measured at the expenses incurred in so far as they are expected to be paid by the purchaser. Where the total expenses relating to the work in progress are expected to exceed the total market value, the expected loss is recognised as a loss-making agreement under "Provisions" and is expensed in the income statement. The value of work in progress less progress billings is classified as assets when the selling price exceeds progress billings and as liabilities when progress billings exceed the market value. Cash and cash equivalents comprise cash at bank and cash in hand. Proposed dividends Dividend proposed for the year is recognised as a liability once adopted at the annual general meeting (declaration date). Dividends expected to be distributed for the financial year are presented as a separate item under "Equity". Dividend proposed for the year is recognised as a liability once adopted at the annual general meeting (declaration date). Dividends expected to be distributed for the financial year are presented as a separate item under "Equity". Provisions comprise anticipated expenses relating to warranty commitments, onerous contracts, restructurings, etc. Provisions are recognised when the Company has a legal or constructive obligation at the balance sheet date as a result of a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation. Provisions are measured at net realisable value or at fair value if the obligation is expected to be settled far into the future. Warranty commitments include expenses for remedial action in respect of the contract work within the warranty period of 1 year. Provisions for warranty commitments are measured at net realisable value and recognised based on past experience. Current tax payables and receivables are recognised in the balance sheet as the estimated income tax charge for the year, adjusted for prior-year taxes and tax paid on account. Deferred tax is measured according to the liability method on all temporary differences between the carrying amount and the tax base of assets and liabilities. However, deferred tax is not recognised on temporary differences relating to goodwill which is not deductible for tax purposes and on office premises and other items where temporary differences, apart from business combinations, arise at the date of acquisition without affecting either profit/loss for the year or taxable income. Where alternative tax rules can be applied to determine the tax base, deferred tax is measured based on Management's intended use of the asset or settlement of the liability, respectively. Deferred tax is measured according to the tax rules and at the tax rates applicable at the balance sheet date when the deferred tax is expected to crystallise as current tax. Deferred tax assets are recognised at the expected value of their utilisation; either as a set-off against tax on future income or as a set-off against deferred tax liabilities in the same legal tax entity. Changes in deferred tax due to changes in the tax rate are recognised in the income statement. The Company has chosen IAS 39 as interpretation for liabilities. Financial liabilities are recognised at the date of borrowing at the net proceeds received less transaction costs paid. On subsequent recognition, financial liabilities are measured at amortised cost, corresponding to the capitalised value, using the effective interest rate. Accordingly, the difference between the proceeds and the nominal value is recognised in the income statement over the term of the loan. Financial liabilities also include the capitalised residual lease liability in respect of finance leases. Other liabilities are measured at net realisable value. Lease liabilities Lease liabilities are measured at the net present value of the remaining lease payments including any guaranteed residual value based on the interest rate implicit in the lease. Prepayments received from customers comprise amounts received from customers prior to the time and date of delivery of the agreed product or completion of the agreed service. The allocation of revenue to activities and geographical markets is disclosed where these activities and markets differ significantly in the organisation of sales of goods and services. The financial ratios stated under "Financial highlights" have been calculated as follows: Operating margin Operating profit/loss (EBIT) x 100 Revenue Gross margin Gross profit/loss x 100 Revenue EBITDA-margin Earnings before interest, taxes and amortisations (EBITDA) x 100 Revenue Equity ratio Equity, year-end x 100 Total equity and liabilities, year-end Return on equity Profit/loss after tax x 100 Average equity Breakdown of revenue by geographical segment: Europe 416,980,283 439,177,338 Asia 20,040,516 21,107,330 Other 13,324,757 14,034,072 450,345,556 474,318,740 Completed development projects Completed development projects relate to costs incurred for the development of slurry plant sold in the Southern European markets, especially to farmers in France. The demand for this plant from the Company's customers is still increasing. Management has not identified any indication of impairment in relation to the carrying amount of the system. Note 16 provides more details on collateral for loans, etc. as regards property, plant and equipment. The Company's share capital has remained DKK 1,000,000 over the past 5 years. At 31 January 2024, net deferred tax assets amount to DKK 3,104 thousand. Deferred tax assets have been recognised based on expected earnings in the foreseeable future. The provision for deferred tax primarily relates to timing differences in respect of intangible assets and property, plant and equipment. Other provisions comprise provisions for warranty commitments, totalling DKK 742.365 (2023: 750.000 DKK). Warranty provisions relate to expected warranty expenses in accordance with usual guarantee commitments applicable to the sale of goods. The obligation is expected to be settled over the warranty period, which is one year. Staff costs are recognised as follows in the financial statements: Production costs 57,557,831 66,560,187 Distribution costs 14,565,743 9,737,841 Administrative expenses 13,201,680 14,379,530 85,325,254 90,677,558 The Company is jointly taxed with its parent, BouMatic SAC Holding ApS, which acts as management company, and is jointly and severally liable with other jointly taxed group entities for payment of income taxes. Rent liabilities vis-à-vis the parent company and its other group entities: DKK 2024 2023 Rent liabilities 525,000 390,000 Rent liabilities include rent to group entity subject to three months' notice. Other lease liabilities: DKK 2024 2023 Lease liabilities 136,458 301,518 The Company has concluded operating leases regarding IT facilities with terms to maturity of 3-5 years The Company has provided a company charge of DKK 65,100 thousand as collateral for debt to credit institutions. The company charge comprises of future simple trade receivables, inventories, intagible rights, operating equipment, property, plant and equipment. The carrying amount of assets included in the company charge totalled DKK 147,981 thousand at 31 December 2024. To the bank used by BouMatic Real Estate ApS the Company has provided suretyship and an irrevocable guarantee of EUR 1,500 thousand, covering all BouMatic Real Estate ApS' balances with the bank in question. The Company is jointly and severally liable with the group companies Boumatic Real Estate ApS and Boumatic SAC Holding ApS for debts owed to Ringkjøbing Landbobank. Significant influence Related party Domicile Basis for significant influence BouMatic SAC Holding ApS Denmark Capital possesion (owner) BouMatic LLC USA Capital possesion (intermediate owner) Madison One Holdings, LLC USA Capital possesion (ultimate owner) Information about consolidated financial statements Parent Domicile Madison One Holdings, LLC Wisconsin, USA BouMatic SAC Holding ApS Skjern, Denmark Related party transactions BouMatic A/S was engaged in the below related party transactions: DKK 2024 2023 Sale of products, etc. 289,787,989 287,698,033 Purchase of products, etc. 98,132,658 99,071,881 Royalty income 2,267,490 2,389,096 Rebilling and allocation of costs 16,522,094 12,405,714 Rent 2,020,000 1,320,000 Receivables from group entities 148,587,811 121,308,455 Payables to group entities 151,918,868 92,670,946 17472631 2024-01-01 2024-12-31 17472631 2024-01-01 17472631 2023-12-31 17472631 2024-12-31 17472631 2023-01-01 17472631 2024-01-01 2024-12-31 1 17472631 2024-01-01 2024-12-31 2 17472631 2024-01-01 2024-12-31 3 17472631 2024-12-31 1 17472631 2024-01-01 2024-12-31 1 17472631 2024-01-01 2024-12-31 1 17472631 2024-01-01 e:CompletedDevelopmentProjectsMember 17472631 2024-01-01 e:AcquiredIntangibleAssetsMember 17472631 2024-01-01 2024-12-31 e:AcquiredIntangibleAssetsMember 17472631 2024-12-31 e:AcquiredIntangibleAssetsMember 17472631 2024-01-01 2024-12-31 e:CompletedDevelopmentProjectsMember 17472631 2024-12-31 e:CompletedDevelopmentProjectsMember 17472631 2024-01-01 e:PlantAndMachineryMember 17472631 2024-01-01 2024-12-31 e:PlantAndMachineryMember 17472631 2024-12-31 e:PlantAndMachineryMember 17472631 2024-01-01 e:FixturesFittingsToolsAndEquipmentMember 17472631 2024-01-01 2024-12-31 e:FixturesFittingsToolsAndEquipmentMember 17472631 2024-12-31 e:FixturesFittingsToolsAndEquipmentMember 17472631 2023-01-01 e:ContributedCapitalMember 17472631 2023-01-01 2023-12-31 e:ContributedCapitalMember 17472631 2024-01-01 e:ContributedCapitalMember 17472631 2024-12-31 e:ContributedCapitalMember 17472631 2024-01-01 e:RetainedEarningsMember 17472631 2024-01-01 2024-12-31 e:RetainedEarningsMember 17472631 2024-12-31 e:RetainedEarningsMember 17472631 2023-01-01 e:RetainedEarningsMember 17472631 2023-01-01 2023-12-31 e:RetainedEarningsMember 17472631 2023-01-01 2023-12-31 17472631 2022-01-01 2022-12-31 17472631 2022-12-31 17472631 2021-01-01 2021-12-31 17472631 2021-12-31 17472631 2020-01-01 2020-12-31 17472631 2020-12-31 17472631 2024-01-01 2024-12-31 3 17472631 2023-01-01 2023-12-31 3 17472631 2022-01-01 2022-12-31 3 17472631 2021-01-01 2021-12-31 3 17472631 2020-01-01 2020-12-31 3 17472631 2024-01-01 2024-12-31 11 17472631 2023-01-01 2023-12-31 11 17472631 2022-01-01 2022-12-31 11 17472631 2021-01-01 2021-12-31 11 17472631 2020-01-01 2020-12-31 11 17472631 2024-12-31 e:OtherLongtermPayablesMember 17472631 2024-01-01 2024-12-31 e:ManagementMember 17472631 2023-01-01 2023-12-31 e:ManagementMember 17472631 2024-01-01 2024-12-31 e:BoardOfDirectorsMember 17472631 2023-01-01 2023-12-31 e:BoardOfDirectorsMember 17472631 2023-12-31 1 17472631 2023-01-01 2023-12-31 1 xbrli:shares iso4217:DKK xbrli:pure