Årsrapport 30700228 EY Godkendt Revisionspartnerselskab Værkmestergade 25 Postboks 330, 8100 Aarhus C 2024-01-01 2024-12-31 2023-01-01 2023-12-31 28101082 Arrow ECS Denmark A/S Jens Juuls Vej 42 8260 Viby J 2004-08-23 Aarhus 70254500 70254501 https://www.arrow.com/globalecs/dk/ Danske Bank A/S EY Godkendt Revisionspartnerselskab 30700228 Værkmestergade 25 8100 Aarhus C 2025-06-20 Henrik Resting-Jeppesen Regnskabsklasse C, stor virksomhed Revisionspåtegning Grundlag for konklusion Konklusion true 2025-06-20 2025-06-20 CaseWare Working Papers Aarhus John Normann Refsgaard Director Henrik Resting-Jeppesen Chairman John Normann Refsgaard Stefan Høg Sophie Stephanie Ribemont-Béguin Aarhus Steen Skorstengaard Christine Agerskov Bro State Authorised Public Accountant mne19709 State Authorised Public Accountant mne50623 1274457000 1122000000 1184392000 192317000 163776000 168293000 104494000 75706000 80640000 10917000 17564000 16159000 2471000 -4888000 94000000 60945000 49373000 1835967000 1688449000 1508463000 -335000 -253000 -157000 -366000 -1127000 649089000 555089000 494144000 8.1 8.6 8.2 6.7 5.8 14.9 16.1 15.1 14.6 14.2 5.5 6 5.9 4.7 5.4 35.9 40.7 35.4 32.9 32.8 12.4 14.2 15.6 11.6 10.5 105 105 111 1427183000 1272517000 1159025000 1026562000 20000 0 55130000 40728000 213048000 205227000 96133000 94567000 972000 993000 115943000 109667000 161000 147000 19062000 22396000 8306000 4979000 126860000 127231000 27977000 28089000 98883000 99142000 650000 975000 650000 975000 472000 494000 141000 540000 613000 1034000 8223000 8062000 0 500000000 1471000 1433000 9694000 509495000 10957000 511504000 114565000 155491000 114565000 155491000 1079633000 807438000 1129879000 353864000 5442000 4284000 6648000 3064000 15141000 3578000 2236743000 1172228000 528000 689000 2351836000 1328408000 2362793000 1839912000 1000000 1000000 2497000 2336000 843616000 744894000 847113000 748230000 56000 138000 1030000 1030000 1086000 1168000 16353000 0 16353000 0 1394171000 1031220000 10493000 5362000 75472000 51979000 18105000 1953000 1498241000 1090514000 1514594000 1090514000 2362793000 1839912000 1000000 2189000 645900000 147000 98994000 1000000 2336000 744894000 161000 98722000 1000000 2497000 843616000 98883000 99142000 17528000 11518000 131569000 -73004000 247980000 37656000 19062000 22396000 8306000 4979000 28663000 32650000 230073000 22423000 335000 253000 20000 0 -315000 -253000 229919000 23764000 -229919000 -23764000 -161000 -1594000 689000 2283000 528000 689000 680000 661000 588000 578000 44000 20000 48000 63000 89054000 87624000 4209000 4088000 903000 853000 1967000 2002000 96133000 94567000 111 110 16888000 14771000 1315000 7159000 859000 466000 3009000 2973000 4059000 1427000 1238000 579000 28058000 28216000 -81000 -127000 161000 147000 98722000 98995000 19593000 19593000 18618000 325000 18943000 650000 19887000 9686000 336000 0 531000 0 19692000 9686000 19393000 9146000 246000 399000 419000 0 19220000 9545000 472000 141000 5726000 500000000 1433000 0 0 38000 0 500000000 0 5726000 0 1471000 2336000 0 0 161000 2497000 0 0 8223000 0 1471000 IPVista A/S Private limited company Aarhus, Denmark 100 1000000 1000000 1000000 138000 264000 56000 138000 143000 215000 -174000 -169000 311000 318000 -224000 -226000 551000 993000 161000 147000 -19062000 -22396000 -8306000 -4979000 27894000 28089000 -40926000 -66523000 -333438000 -44517000 -424081000 95010000 528000 689000 Today, the Board of Directors and the Executive Board have discussed and approved the annual report of Arrow ECS Denmark A/S for the financial year 1 January - 31 December 2024. The annual report is prepared in accordance with the Danish Financial Statements Act. In our opinion, the financial statements give a true and fair view of the financial position of the Company at 31 December 2024 and of the results of the Company's operations and cash flows for the financial year 1 January - 31 December 2024. Further, in our opinion, the Management's review gives a fair review of the matters discussed in the Management's review. We recommend that the annual report be approved at the annual general meeting. To the shareholder of Arrow ECS Denmark A/S We have audited the financial statements of Arrow ECS Denmark A/S for the financial year 1 January - 31 December 2024, which comprise income statement, balance sheet, statement of changes in equity, cash flow statement and notes, including accounting policies. The financial statements are prepared in accordance with the Danish Financial Statements Act. In our opinion, the financial statements give a true and fair view of the financial position of the Company at 31 December 2024 and of the results of the Company's operations as well as the cash flows for the financial year 1 January - 31 December 2024 in accordance with the Danish Financial Statements Act. We conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the "Auditor's responsibilities for the audit of the financial statements" section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Independence We are independent of the Company in accordance with the International Ethics Standards Board for Accountants' International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the Danish Financial Statements Act and for such internal control as Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, Management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting in preparing the financial statements unless Management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Our objectives are to obtain reasonable assurance as to whether the financial statements as a whole are free from material misstatement, whether due to fraud or error and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements. As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management. Conclude on the appropriateness of Management's use of the going concern basis of accounting in preparing the financial statements and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern. Evaluate the overall presentation, structure and contents of the financial statements, including the note disclosures, and whether the financial statements represent the underlying transactions and events in a manner that gives a true and fair view. Plan and perform the audit of the financial statements to obtain sufficient appropriate audit evidence regarding the consolidated financial information of the entities or business units as a basis for forming an opinion on the financial statements. We are responsible for the direction, supervision and review of the audit work performed. 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. Management is responsible for the Management's review. Our opinion on the financial statements does not cover the Management's review, and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the Management's review and, in doing so, consider whether the Management's review is materially inconsistent with the financial statements or our knowledge obtained during the audit, or otherwise appears to be materially misstated. Moreover, it is our responsibility to consider whether the Management's review provides the information required under the Danish Financial Statements Act. Based on the work we have performed, we conclude that the Management's review is in accordance with the financial statements and has been prepared in accordance with the requirements of the Danish Financial Statement Act. We did not identify any material misstatement of the Management's review. The financial ratios stated under "Financial highlights" have been calculated as follows: Operating profit/loss Profit/loss before net financials +/- Other operating income and other operating expenses Operating margin Operating profit/loss (EBIT) x 100 Revenue Gross margin Gross profit/loss x 100 Revenue Return on assets Profit/loss from operating activites x 100 Average assets Equity ratio Equity, year-end x 100 Total equity and liabilities, year-end Return on equity Profit/loss after tax x 100 Average equity The Company's main activities are sales of IT infrastructure and related software and consultancy services to businesses in the Nordic area. Focus areas are cloud, hosting, middleware, mobility, virtualisation, access infrastructure, network & security and server & storage. The Company combines its cutting-edge technical competences within the above areas with a wide range of value-adding services, covering everything from market and competitor analysis to product positioning, marketing, technical support and training, to offer turnkey solutions that contribute to enhancing the growth potential of producers as well as resellers. The Company cooperates with a large number of the world's largest and most innovative IT producers, carefully selected based on the clout and market potential of their products. In 2024, the Company's revenue amounted to DKK 1,427,183 thousand against DKK 1,272,517 thousand last year. The income statement for 2024 shows a profit of DKK 98,883 thousand against a profit of DKK 99,142 thousand last year, and the balance sheet at 31 December 2024 shows equity of DKK 847,113 thousand. Profit/loss for the year compared to previously announced expectations In the annual report for 2023, the Company expected a growth in revenue and profit for the year on 6-10%. Revenue has increased 12% compared to 2023. Revenue was positively impacted by Arrow's successful negotiation of more favorable contracts with key suppliers. These agreements have enabled the company to strengthen its competitive position and capture increased market share, contributing to top-line growth above expectations during the reporting period. Profit for the year is on par with 2023. The financial performance for the year was adversely impacted by the IT market experiencing pressure on margins, driven by heightened competition and secondly, foreign exchange (FX) losses occurred during the year, which affected the overall expected profitability. Management consider the result for the year satisfactory. The Company maintains one of the country's most powerful competence centers within IT products, market conditions, support and training. Ongoing training and competence development ensure that we always hold cutting-edge competence within all areas. The Company's foreign activities mean that results, cash flows and equity are affected by exchange and interest rate developments for a number of currencies. It is part of the Company's policy to hedge commercial currency risks, and forward exchange contracts were entered into from time to time for such purposes. Interest bearing net debts are insignificant and moderate interest rate changes will therefore not have any significant direct effect on earnings. Accordingly, the Company does not hedge interest rate risks. Other risks Up to the date of the audit 2024, the Ukraine-Russia war and/or Israel/Middle East conflict has had no measurable impact on our business in Denmark, and the company does not have any business in Ukraine, Russia or Middle-East at this moment. We do have some vendors located in Israel, but our business with these vendors is so far not impacted by the Israel/Middle East conflict. There is a risk that the Ukraine-Russia war and/or the Israel/Middle-East conflict could have an indirect impact on our business in the future as a result of disruption/delays in global supply chains or negative macro-economic effects. Risks in the current macro-economic environment include but are not limited to high inflation and energy costs, increasing interest rates, a possible slowdown in economic growth, supply chain disturbances (e.g Red Sea), and tensions in global trade (USA/China/EU), which might impact our business. So far, this has had limited impact on our results, but uncertainties remain significant. The Company complies with all public requirements in relation to destruction of packaging and obsolete products and maintains positive relationships with the supervisory authorities. The Company has not established any independent social responsibility policies, including climate, environment, social and labor conditions or anti-corruption and human rights policies, as the Company is already covered by the parent company's policies. For the corporate social responsibility reporting cf. The Danish Financial Statement Act §99a, we refer to our parent company Arrow Electronics Inc. The parent company, Arrow Electronics Inc., is a participant in the United Nations Global Compact and has prepared a progress report. Please refer to the ESG report of our ultimate parent company Arrow Electronics, Inc. available on: https://esg.arrow.com Risks: Arrow had identified the risks of data breaches and non-compliance to GDPR and other privacy regulations on its business, employees and business partners. Policy: Arrow Electronics, Inc. takes its privacy responsibility very seriously. Arrow will not transfer Personal Data (as defined below) to any entity, individual, or organization, particularly entities within countries without adequate data protections, except in accordance with the applicable laws and regulations. The company employs administrative and systems protections to assure that Personal Data is transferred only in accordance with applicable privacy regulations. We use appropriate steps to ensure that human resource data is protected and access to the data is restricted to necessary individuals. It is Arrow’s policy that employees must process Personal Data fairly and lawfully. Our operations are responsible for collecting Personal Data only for specific, lawful, explicit and legitimate purposes, and for further processing of Personal Data consistent with those purposes. Personal Data that we maintain must be adequate and relevant to the purpose for which it is collected or used. As Arrow Electronics, Inc. is a U.S. company, it has voluntarily decided to comply with the EU – U.S. Privacy Shield Framework and is subject to the investigatory and enforcement powers of the Federal Trade Commission. Actions: We make reasonable efforts to maintain such Personal Data accurately, to provide reasonable means to correct, delete, or rectify any inaccurate Personal Data, and to store such Personal Data for periods no longer than is necessary. Arrow complies with the EU – U.S. Privacy Shield Framework, as set forth by the U.S. Department of Commerce in consultation with the European Commission, regarding the collection, use and retention of Employee Personal Data received from the European Union. Arrow annually certifies its adherence to the Privacy Shield Principles of notice; choice; accountability for onward transfer; security; data integrity and purpose limitation; access; and recourse, enforcement and liability. To learn more about the EU – U.S. Privacy Shield Framework, please visit https://www.privacyshield.gov/EU-US-Framework. To view Arrow's certification, please visit: https://www.privacyshield.gov/list. Results: There have been no data breaches in Arrow ECS Denmark A/S during 2024. For 2025, revenue is expected to grow by 10-16% and profit to grow by 8-14% as we expect continued demand growth for IT products and services driven by amongst others the continued transformation of technology from on-premise to cloud, the growing size and value represented by big data and the resulting increasing importance of IT security, and other technology trends demanding intensive support. Safe Harbor Statement This report includes "forward-looking statements," as the term is defined under U.S. federal securities laws. Forward-looking statements are those statements which are not statements of historical fact. These forward-looking statements can be identified by forward-looking words such as “expects,” “anticipates,” “intends,” “plans,” “may,” “will,” “believes,” “seeks,” “estimates,” and similar expressions. These forward-looking statements are subject to numerous assumptions, risks, and uncertainties, which could cause actual results or facts to differ materially from such statements for a variety of reasons, including, but not limited to: potential adverse effects of the ongoing global impacts of the conflict in Ukraine, industry conditions, changes in product supply, pricing and customer demand, competition, other vagaries in the global components and the global enterprise computing solutions (“ECS”) markets, changes in relationships with key suppliers, increased profit margin pressure, changes in legal and regulatory matters, non-compliance with certain regulations, such as export, antitrust, and anti-corruption laws, foreign tax and other loss contingencies, and the company's ability to generate cash flow. For a further discussion of these and other factors that could cause the company's future results to differ materially from any forward-looking statements, please see the section entitled “Risk Factors” in Arrow Electronic, Inc.’s, most recent Quarterly Report on Form 10-Q and the company's most recent Annual Report on Form 10-K, as well as in other filings the company makes with the U.S. Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. The company undertakes no obligation to update publicly or revise any of the forward-looking statements. The annual report of Arrow ECS Denmark 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. Referring to section 112(2) of the Danish Financial Statements Act, no consolidated financial statements are prepared. The financial statements of Arrow ECS Denmark A/S and its group entities are part of the consolidated financial statements of Arrow Electronics, Inc., United States. The consolidated financial statements for Arrow Electronics, Inc. can be obtained on the company's website: https://investor.arrow.com/financials/financial-results/default.aspx. The accounting policies used in the preparation of the financial statements are consistent with those of last year. Reporting currency The financial statements are presented in Danish kroner (DKK'000). On initial recognition, transactions denominated in foreign currencies are translated at the exchange rate at the transaction date. Foreign exchange differences arising between the exchange rates at the transaction date and the date of payment are recognised in the income statement as financial income or financial expenses. Receivables and payables and other monetary items denominated in foreign currencies are translated at the exchange rate at the balance sheet date. The difference between the exchange rates at the balance sheet date and the date at which the receivable or payable arose or was recognised in the most recent financial statements is recognised in the income statement as financial income or financial expenses. The Company has chosen IFRS 15 as interpretation of the Danish Financial Statements Act for revenue recognition. This means that the Company uses a 5-step model for revenue recognition. According to this, the contract is identified with the customer (step 1). Subsequently, the identifiable performance obligations are identified in the contract (step 2). The total transaction price is then determined (step 3) and allocated to the identified performance obligations (step 4). Finally, revenue is recognised as the identified performance obligations are met (step 5). Revenue is recognised either at a specific time or over time upon transfer of control of what was delivered to the customer. The Company assesses all of the Company's revenue streams in relation to proper presentation. In cases where it is assessed that the Company acts as an agent and not as a principal, the Company's revenue from this is presented net. Revenue is measured net of all types of discounts/rebates granted. Also, revenue is measured net of VAT and other indirect taxes charged on behalf of third parties. Other operating income comprise items secondary to the principal activities of the Company, including rental income from the temporary lease out of production facilities, compensation, government grants, refund of wages and salaries, gains on the disposal of intangible assets and property, plant and equipment, etc. Compensation and grants are recognised when there is reasonable assurance that the entity will comply with the conditions attaching to them and the grants will be received. Cost of sales includes the cost of goods used in generating the year's revenue. Other external expenses include the year's expenses relating to the Company's core activities, including expenses relating to distribution, sale, advertising, administration, premises, bad debts, payments under operating leases, etc. Staff costs 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, which is calculated as cost less any residual value, is amortised on a straight line basis over the expected useful life. The expected useful lives of the assets are as follows: Goodwill 9-20 years The basis of depreciation, which is calculated as cost less any residual value, is depreciated on a straight line basis over the expected useful life. The expected useful lives of the assets are as follows: Other fixtures and fittings, tools and equipment 3-5 years Leasehold improvements 3-10 years Depreciation is based on the residual value of the asset and is reduced by impairment losses, if any. The depreciation period and the residual value are determined at the acquisition date and are reassessed annually. Where the residual value exceeds the carrying amount of the asset, no further depreciation charges are recognised. In the case of changes in the depreciation period or the residual value, the effect on the depreciation charges is recognised prospectively as a change in accounting estimates. The income statement includes the proportional share of the underlying companies' profit or loss after elimination of internal profit/loss and after tax. In group entities, the full elimination of internal profit and loss is carried out without regard to ownership shares. 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. Goodwill is amortised over the expected economic life, measured by reference to an assessment of, among other factors, the nature and market position of the business, the stability of the industry and the dependence on key staff. The amortisation period is 9-20 years for strategically acquired companies with a strong market position and long-range earnings profile. Property, plant and equipment Items of property, plant and equipment are measured at cost less accumulated depreciation and impairment losses. Cost includes the acquisition price and costs directly related to the acquisition until the time at which the asset is ready for use. The Company has chosen IAS 17 as interpretation for classification and recognition of leases. 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". Equity investments in group entities are measured according to the equity method. On initial recognition, equity investments in group entities are measured at cost, i.e. plus transaction costs. The cost is allocated in accordance with the acquisition method; see the accounting policies regarding business combinations. The cost is adjusted by shares of profit/loss after tax calculated in accordance with the Group's accounting policies less or plus unrealised intra-group gains/losses. Identified increases in value and goodwill, if any, compared to the underlying entity's net asset value are amortised in accordance with the accounting policies for the assets and liabilities to which they can be attributed. Negative goodwill is recognised in the income statement. Dividend received is deduced from the carrying amount. The carrying amount of intangible assets, property, plant and equipment and investments in subsidiaries 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. Impairment losses on goodwill are not reversed. 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. 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. Prepayments recognised under "Assets" comprise prepaid expenses regarding subsequent financial reporting years. Given the nature of the Group's cash pool arrangement, cash pool balances are not considered cash, but are recognised under "Receivables from group entities". Reserve for net revaluation according to the equity method The net revaluation reserve according to the equity method includes net revaluations of investments in subsidiaries relative to cost. The reserve can be eliminated in case of losses, realisation of investments or a change in accounting estimates. The reserve cannot be recognised at a negative amount. Proposed dividends Dividend proposed for the year is recognised as a liability once adopted at the annual general meeting (declaration date). Dividends expected to be distributed for the financial year are presented as a separate item under "Equity". Dividend proposed for the year is recognised as a liability once adopted at the annual general meeting (declaration date). Dividends expected to be distributed for the financial year are presented as a separate item under "Equity". Current tax payables and receivables are recognised in the balance sheet as the estimated income tax charge for the year, adjusted for prior-year taxes and tax paid on account. Deferred tax is measured according to the liability method on all temporary differences between the carrying amount and the tax base of assets and liabilities. However, deferred tax is not recognised on temporary differences relating to goodwill which is not deductible for tax purposes and on office premises and other items where temporary differences, apart from business combinations, arise at the date of acquisition without affecting either profit/loss for the year or taxable income. Where alternative tax rules can be applied to determine the tax base, deferred tax is measured based on Management's intended use of the asset or settlement of the liability, respectively. Deferred tax is measured according to the tax rules and at the tax rates applicable at the balance sheet date when the deferred tax is expected to crystallise as current tax. Deferred tax assets are recognised at the expected value of their utilisation; either as a set-off against tax on future income or as a set-off against deferred tax liabilities in the same legal tax entity. Changes in deferred tax due to changes in the tax rate are recognised in the income statement. Other payables Other payables are measured at net realisable value. Deferred income Deferred income recognised as a liability comprises payments received concerning income in subsequent financial reporting years. The cash flow statement shows the Company's net cash flows broken down according to operating, investing and financing activities, the year's changes in cash and cash equivalents as well as the cash and cash equivalents at the beginning and the end of the year. Cash flows from operating activities are calculated as the profit/loss for the year adjusted for non cash operating items, changes in working capital and paid corporate income tax. Cash flows from investing activities comprise payments in connection with acquisitions and disposals of entities and activities and of intangible assets, property, plant and equipment and investments. Cash flows from financing activities comprise changes in the size or composition of the Company's share capital and related expenses as well as raising of loans, repayment of interest bearing debt and payment of dividends to shareholders. Changes in the cash pool scheme are classified as cash flows from financing activities, as the changes are signficantly related to financing between the group companies. Cash and cash equivalents comprise cash, short term bank loans and short term securities which are readily convertible into cash and which are subject only to insignificant risks of changes in value. 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. Breakdown of revenue by business segment: Gross billings 3,637,720 3,170,857 Minus: Fee for Service (net treatment) -2,288,234 -1,967,544 Plus: Net margin Fee for Service 77,697 69,204 1,427,183 1,272,517 Segment information By reference to section 96(1) of the Danish Financial Statements Act, the company has not disclosed the breakdown of revenue by geographical and business segments, as Management is of the opinion that its activities is one segment. By reference to section 98b(3), (ii), of the Danish Financial Statements Act, remuneration to Management is not disclosed. Prepayments include accrual of expenses relating to subsequent financial years, including rent and insurance policies. The Company's share capital has remained DKK 1,000 thousand over the past 5 years. Other provisions comprise provisions for retirement obligation for leaseholds, totalling DKK 1,030 thousand. The commitment is expected to be settled when the company decides to move out of the leaseholds. A timeline for this have not yet been assessed. Deferred income, DKK 18,105 thousand (2023: DKK 1,953 thousand), consists of payments received from customers that may not be recognised until the subsequent financial year. The Company is jointly taxed with Arrow Electronics Danish Holdings ApS, which acts as management company, and is jointly and severally liable with other jointly taxed group entities for payment of income taxes as well as withholding taxes on interest, royalties and dividends. Other rent and lease liabilities: DKK'000 2024 2023 Rent and lease liabilities 4,434 6,073 Parties exercising control Related party Domicile Basis for control Arrow ECS Nordic A/S Viby J, Denmark Parent company Arrow Electronics Inc. Centennial, Colorado, USA Ultimate parent company Information about consolidated financial statements Parent Domicile Requisitioning of the parent company's consolidated financial statements Arrow Electronics Inc. Centennial, Colorado, USA https://investor.arrow.com/financials/financial-results/default.aspx Arrow Electronics EMAESA S.r.l Milan, Italy Viale Fulvio Testi, 280, Milan, 20126, Italy Related party transactions Arrow ECS Denmark A/S was engaged in the below related party transactions: DKK'000 2024 2023 Intercompany sales 2,462,197 2,207,860 Intercompany purchase of goods 11,291 19,283 Staff allocation in 4,358 4,413 Staff allocation out 10,191 11,923 Cost recharge in 45,151 32,476 Cost recharge out 7,681 8,121 Intercompany interests, income 13,879 11,798 Royalty, cost 12,586 0 Intercompany receivables 807,370 261,274 Intercompany loans 0 500,000 Intercompany payables 10,493 5,362 28101082 2024-01-01 2024-12-31 28101082 2024-01-01 28101082 2023-12-31 28101082 2024-12-31 28101082 2023-01-01 28101082 2024-01-01 2024-12-31 1 28101082 2024-01-01 2024-12-31 2 28101082 2024-01-01 2024-12-31 3 28101082 2024-01-01 2024-12-31 4 28101082 2024-12-31 1 28101082 2024-01-01 2024-12-31 1 28101082 2024-01-01 2024-12-31 2 28101082 2024-01-01 2024-12-31 1 28101082 2024-01-01 e:GoodwillMember 28101082 2024-01-01 2024-12-31 e:GoodwillMember 28101082 2024-12-31 e:GoodwillMember 28101082 2024-01-01 e:ReceivablesFromGroupEnterprisesMember 28101082 2024-01-01 2024-12-31 e:ReceivablesFromGroupEnterprisesMember 28101082 2024-12-31 e:ReceivablesFromGroupEnterprisesMember 28101082 2024-12-31 e:ReceivablesFromOwnersAndManagementMember 28101082 2024-01-01 e:FixturesFittingsToolsAndEquipmentMember 28101082 2024-01-01 2024-12-31 e:FixturesFittingsToolsAndEquipmentMember 28101082 2024-12-31 e:FixturesFittingsToolsAndEquipmentMember 28101082 2024-01-01 e:LeaseholdImprovementsMember 28101082 2024-01-01 2024-12-31 e:LeaseholdImprovementsMember 28101082 2024-12-31 e:LeaseholdImprovementsMember 28101082 2024-01-01 e:InvestmentsInGroupEnterprisesMember 28101082 2024-01-01 2024-12-31 e:InvestmentsInGroupEnterprisesMember 28101082 2024-12-31 e:InvestmentsInGroupEnterprisesMember 28101082 2023-01-01 e:ContributedCapitalMember 28101082 2024-01-01 e:ContributedCapitalMember 28101082 2024-12-31 e:ContributedCapitalMember 28101082 2024-01-01 e:ReserveForNetRevaluationAccordingToEquityMethodMember 28101082 2024-01-01 2024-12-31 e:ReserveForNetRevaluationAccordingToEquityMethodMember 28101082 2024-12-31 e:ReserveForNetRevaluationAccordingToEquityMethodMember 28101082 2023-01-01 e:ReserveForNetRevaluationAccordingToEquityMethodMember 28101082 2023-01-01 2023-12-31 e:ReserveForNetRevaluationAccordingToEquityMethodMember 28101082 2024-01-01 e:RetainedEarningsMember 28101082 2024-01-01 2024-12-31 e:RetainedEarningsMember 28101082 2024-12-31 e:RetainedEarningsMember 28101082 2023-01-01 e:RetainedEarningsMember 28101082 2023-01-01 2023-12-31 e:RetainedEarningsMember 28101082 2024-12-31 e:IntangibleAssetsMember 28101082 2023-12-31 e:IntangibleAssetsMember 28101082 2024-12-31 e:PropertyPlantAndEquipmentMember 28101082 2023-12-31 e:PropertyPlantAndEquipmentMember 28101082 2024-12-31 e:ReceivablesMember 28101082 2023-12-31 e:ReceivablesMember 28101082 2023-01-01 2023-12-31 28101082 2022-01-01 2022-12-31 28101082 2022-12-31 28101082 2021-01-01 2021-12-31 28101082 2021-12-31 28101082 2020-01-01 2020-12-31 28101082 2020-12-31 28101082 2024-01-01 2024-12-31 e:SubsidiaryMember 1 28101082 2024-12-31 e:SubsidiaryMember 1 28101082 2023-12-31 1 28101082 2024-12-31 e:ProvisionsMember 28101082 2023-12-31 e:ProvisionsMember 28101082 2024-01-01 e:DepositsLongtermInvestmentsAndReceivablesMember 28101082 2024-01-01 2024-12-31 e:DepositsLongtermInvestmentsAndReceivablesMember 28101082 2024-12-31 e:DepositsLongtermInvestmentsAndReceivablesMember 28101082 2023-01-01 2023-12-31 1 iso4217:DKK xbrli:shares xbrli:pure