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cmn:ConsolidatedMember PricewaterhouseCoopers 31593247 2022-01-01 2022-12-31 cmn:ConsolidatedMember PricewaterhouseCoopers iso4217:DKK pure Årsrapport 33771231 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab Strandvejen 44 2900 Hellerup 2023-01-01 2022-01-01 2023-12-31 2022-12-31 31593247 Runway Holding ApS Lufthavnsvej 7A 6580 Vamdrup Vamdrup PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab 33771231 Herredsvej 32 7100 Vejle Denmark 79 21 27 00 Underskriv. revisors e-mail anvendes 2024-05-23 Halldor Sigurdarson Regnskabsklasse C, stor virksomhed Revisionspåtegning The Executive Board has today considered and adopted the Annual Report of Runway Holding ApS for the financial year 1 January - 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 of 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. 2024-05-23 Vamdrup Jesper Rungholm Kirsten Rungholm To the shareholder of Runway Holding ApS Opinion 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 and of 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 Statements of Runway Holding ApS for the financial year 1 January - 31 December 2023, which comprise income statement, balance sheet, statement of changes in equity and notes, including a summary of significant accounting policies, for both the Group and the Parent Company, as well as consolidated statement of cash flows (”the Financial Statements”). Basis for Opinion 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. 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. Management is responsible for Management’s Review. Our opinion on the Financial Statements does not cover 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 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 materially misstated. Moreover, it is our responsibility to consider whether Management’s Review provides the information required under the Danish Financial Statements Act. Based on the work we have performed, in our view, Management’s Review is in accordance with the Consolidated Financial Statements and the Parent Company Financial Statements and has been prepared in accordance with the requirements of the Danish Financial Statements Act. We did not identify any material misstatement in Management’s Review. Trekantområdet 2024-05-23 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab Jan Bunk Harbo Larsen State Authorised Public Accountant mne30224 573647000 428307000 1007650000 212060000 256514000 329181000 44131000 19480000 54255000 -26528000 -17075000 -37198000 2513000 3921000 15303000 852250000 900162000 871888000 218385000 158191000 68248000 46894000 57705000 228737000 226222000 222507000 94810000 121370000 -4099000 -14261000 -17750000 40630000 -48136000 6513000 -38535000 32413000 110133000 -2004000 237 342 562 0.329 0.295 0.37 0.599 0.327 0.078 0.012 0.077 0.045 0.054 0.065 0.01 0.052 0.022 0.062 0.272 0.255 0.268 0.251 0.255 0.18 0.041 0.011 0.017 0.071 The Group’s corporate social responsibility (CSR) is necessary to lead a sustainable business, and the Group strives in all its activities to operate socially responsible, not only within flight operations but also in relation to general management and broader activities related to flight operations. Throughout the years the Group has continuously worked on establishing a range of policies and guidance material related to its CSR, especially within environmental and climate-related aspects as well as overall safety in all areas.The Group’s business model focuses on two areas: scheduled flights, and flights for other airlines (ACMI). Ad-hoc and short-series charters will be operated but not multi series of seasonal charter flights. Operations are primarily based in the European market with a focus on the Nordic region. Some ACMI activities take place outside of this area as well as outside of Europe. DAT sells tickets under its own brand direct to passengers as well as in the business-to-business markets. There is no exposure to markets or customers that infringe upon human rights nor are there signs that suppliers do not adhere to human rights.Due to the nature of the Group’s activities, there are environmental risks and impacts related to the operations. The large amount of energy needed for planes to get, and stay, airborne creates a big environmental risk as one of the most carbon-intensive form of travel. Environmental and climate aspects have been incorporated into the business through operational procedures and strategic focus on addressing CO2 emissions. Fuel consumption is monitored and thereby carbon footprint. In 2023 we reduced our fuel carbon consumption by 24.7% from 2022 (including flights operating under the Group’s call signs). This is attributed mainly to our withdrawal from operating planned charter series as well as redirecting so of the aircraft capacity from Scheduled Services to ACMI services. The Group is working on a fleet renewal plan with the aim of replacing aircraft with those more fuel efficient. This initiative will continue in the future. The Airbus fleet was expanded in 2022 as a replacement for the Group’s more fuel-intensive MD aircraft that were disposed of in 2021. Crew are trained to minimize fuel usage throughout our operations while maintainingfull compliance with aviation regulations, for both environmental and cost optimization. In 2020 DAT A/S announced its intention to join the Air Transport Climate Fund (i.e. Luftfartens Klimafond), whose intentions were to facilitate the industry’s green transition and contribute to Denmark’s climate goals. This fund has since been discontinued due to a change in focus within the Danish government.The Group’s cooperation is built upon trust and respect. We treat all – customers, suppliers, employees, and colleagues alike – as we ourselves wish to be treated. Such behavior requires that we regard all humans as equal with a right to equal treatment and respect regardless of race, color, gender, age, nationality, religion, or political or sexual orientation. The Group respects international law regarding human rights and will react to violations of these laws. Employees face many potential hazards on the job, from strains assisting passengers with luggage to, falls on wet surfaces, to more severe injuries in cases of emergency landings. There are defined social and employment conditions within the Group to ensure a productive and safe environment. There are regular activities to promote the physical and psychological environments as well as employees’ welfare. One stated goal of the Group is a high level of health and safety regarding the physical and psychological working environments. This is seen through the Group’s focus on sickness levels, alcohol and smoking policies, safety and security policies, random testing for psychoactive substances, a peer support program for flight crew, and the requirements regarding continuous health checks for its flight crew.We have regular evaluations of the Group’s alcohol and smoking policies, as well as a triennial evaluation among all staff of the Group’s working environment. There is a Safety Management System to ensure the security and safety of the airlines which follows a bottom-up approach that builds on reports from colleagues to the safety system.The working environment has in 2023 been evaluated through several initiatives, both formal and informal. Formal initiatives include: Working Environmental Committee, Safety Action Groups, and Safety Review Board meetings. Within DAT A/S a formal Working Environment Committee solicits input from personnel and addresses specific issues. A triannual risk assessment is completed surveying the work environment and health and safety of the following employee groups: flight crew, mechanics, and administrative staff. The triannual assessment is not done in the same year for all employee groups. The operational environment is regularly evaluated through quarterly and biannual Safety Action Groups (i.e. Peer Support, Fatigue, and Flight and Airworthiness). These initiatives will continue in the future. Issues are brought forward to midmanagement from both anonymous and identifiable front-line personnel reports through the Safety Management System. Finally, biannual Safety Review Board meetings address matters that require upper management involvement, most often raised from Safety Action Group meetings. Finally, ad-hoc informal meetings are held with front-line personnel to address either timely or less pressing matters. An example of a formal initiative implemented in 2022 include improving accommodation providers in a training location for flight crew and an informal initiative include liaising with flight crew regarding a route’s timetable to align commercial and operational aspects. This initiative have continued in 2023, and will further continue into future years. The significant reduction in work and various initiatives implemented to reduce costs throughout the year may impact evaluations in the future, but at the same time, may be an opportunity to improve efficiency (e.g. long flying days but not impacting fatigue due to reduced working days. The Group’s handbooks are readily available and ensure that all colleagues can quickly find information regarding the Group’s policies and other relevant information. The current business environment is not conducive to corruption risks and therefore no anti-corruption policy has been put in place. This policy does not exist because the Group is not directly exposed to corruption issues in its transactions, neither directly nor through suppliers. The Group does declare in its purchase conditions that it will not pay any rebate, commission, salary or any remuneration or reward, indirectly or in any form whatsoever to any officer, employee, agent, or representative employed by or on behalf of the Group.The Group does not have a formal policy concerning human rights. Such a policy is not in place as the Group is not directly exposed to severe human rights’ issues, neither directly nor through suppliers, as far as the Group is aware. The Group respects international law regarding human rights’ issues and will react accordingly should the Group be made aware of any breach, either directly or through suppliers. DAT Holding A/S, DAT Leasing A/S, and DAT A/S have the same board of directors. In 2023, the board of directors was below the targeted goal of 40% female. There has been no change in board directors during the year and as of writing, the current ratio is 0% female. It should be noted that qualifications are always prioritized above gender. It is the Group’s intention to re-equalise its male-to-female representation and its board of directors by 2025. Runway Holding's top management has no underrepresented gender as the top management consist of one male and one female.The broader management team currently consists of 100% men and 0% women. Should one take a wider perspective and consider flight crew composition there are gender ratios of varying degrees. The Group acknowledges diversity as a source of competitive advantages and, therefore, wants to secure an equal gender distribution at the broader management team and flight crew level. As stated previously, qualifications are prioritized compared to other factors and the Group does not discriminate during its hiring or promotion of colleagues. To work towards achieving the goal of increasing the number of the underrepresented gender on the board, DAT Holding A/S focuses on following the policy, when there is to be a replacement. Active work has been done in 2023 with the policy to increase the share of the underrepresented gender in the coming years, to reach the targets by 2025. Top management Total number of members 2 Underrepresented gender % 50% Other management levels Total number of members 1 Qualifications are prioritized when hiring, however ensuring a wide-ranging applicant pool is important to the Group. The policy for gender equalisation is a two-pronged approach. Internal candidates of all genders are encouraged to apply for management positions. External job postings are placed in industry-specific outlets, in addition to, female-focused outlets if available and relevant to the management position at hand. Since the broader management team consists of one person, the company is exempt from stating the proportion of the underrepresented gender and from setting targets and policies for the broader management team. The Group does not apply advanced technologies, such as Artificial Intelligence or machine learning in relation to data management. Data used in relation to customers and employees is sufficiently managed in accordance with GDPR legislation and internal policies for privacy and data security. Given the required management of data, the Group has assessed that a separate policy is not necessary. The Group will evaluate whether a policy is needed on a continuous basis. In 2023, the Group followed up on its data security by commissioning a report to test the vulnerability from social engineering attacks as well as for penetration tests to be performed against several of its resources. The tests concluded in 2023 and will be followed up on in 2025. Key activities The Group’s activities consist of two airlines and related activities using both own and leased aircraft as wellas trading in aircraft and parts.The Company’s activities comprise holding shares in subsidiaries. Development in the year The income statement of the Group for 2023 shows a profit of TDKK 52,248, and at 31 December 2023 the balance sheet of the Group shows a positive equity of TDKK 340,783. A significant amount of the increase of equity in the Runway Group figures relates to the current year addition of KØ 2005 ApS, which Runway Holding ApS has bought in exchange of new capital shares in the group. General business resumed to normality with no direct COVID implication for the full year. Yield across the network of Scheduled Services improved year-on-year, in particular during the first few months of 2023, and the number of passengers carried per flight exceeded the 2022 level. The activity level within the Schedule Services segment was, as in years before, reasonably stable throughout the year although there was seasonality impact with in frequency with the winter months having 48 daily flights on average and the summer months having 56 daily flights on average. Overall flight activity dropped from the year before, largely because of a combination of discontinued, as well as reduced frequency on, routs in Denmark., Scheduled services performed mostly to expectations.Jet production, servicing ACMI markets in Europe and Asia, had a slow start to the year with aircraft mostly sitting idle until the spring and only a handful of flights operated. This changed dramatically to the better from early on in April and into June and then continued throughout the summer season into early winter. Some of the aircraft carried on under Wet lease contracts into the winter and some continue into this coming spring. Demand for Ad-hoc services on short notice was much higher than it has been before and the aircraft dedicated for Ad-hocs and to service internally as back-up was almost in full production from early summer until end of the summer season. Performance and results from both ACMI and Ad-hoc services exceeded expectations.The severe negative impacts in 2022 caused by the Russian invasion into Ukraine eased somewhat in 2023. Price of fuel came back down and the US Dollar recovered although it continued throughout the year 2023 to be at a historical strong level. Strong US Dollar works against the Company as a good portion of our cash outflows are US Dollar denominated and thus negatively impacts the bottom-line results. One Airbus aircraft entered the fleet in early 2023. The active operating fleet consisted of 14 ATR aircraft, 6 Airbus aircraft, and 1 Citation aircraft. One further Airbus aircraft joined the fleet in early 2024. The past year and follow-up on development expectations from last year. The past year and follow-up on development expectations from last year In 2022,the primary expectations, for the financial year of 2023, was that the revenue at the group level would increase by 16% from the year before. The realised revenue in 2023 was however approximately 30% higher than in 2022. The reason for the greater than initially expected revenue increase was because of the combination of (i) ACMI and Ad-hoc activities being higher than was envisaged, and (ii) better selling prices achieved than anticipated. These resulted in a robust financial performance starting from the spring and until end of the summer season. Until then, the financial performance was disappointing, albeit expected. Whilst the winter 2023 was loss making, it was notably better than the harsh winter before it. Overall, a reasonable financial result with profit with a net profit margin of 8.2%. Capital resources Group’s bank. Credit lines are granted at the Group level therefore the assessment of adequate liquidity reserves for the coming year has been made at this level.The Group has total debt towards Sydbank amounting to DKK 140 mill as of year-end 2023. Thereof, DKK 45 mill is in form of two revolving facilities with annual extensions during the summer time each year. Additional facilities were provided during the year. One in relation to past aircraft improvements and the other against future of aircraft and engines. As of April 2024, the liquidity is adequate with a short-term headroom totalling around DKK 144 mill. Being cautiously optimistic, the long-term liquidity forecast (12 months) shows a headroom of DKK 112 mill under the budgeted scenario. Management view is that the budgeted scenario is reasonable. Based on this, it is management's assessment that the Group has the required capital and liquidity resources to carry through the plans for the financial year 2024. The Annual Report is therefore presented on the assumption of continued operations. Foreign exchange risks A large portion of the Group's income, expenses, and external financing is settled in foreign currencies which exposes profits to currency fluctuations. It is Group policy not to partake in speculative currency positions. Targets and expectations for the year ahead It is anticipated for the year 2024 to yield a profit before tax of approximately DKK 45 mill at the group level. The continued geopolitical situation in Europe and the war in Ukraine can have unforeseen implications. Cost across all aspects of the business remains uncapped and thus challenging to predict. A key to meeting the profit target is to deliver smooth, reliable, and on-time operations. One very important element to achieving that is to have all required resources available which is why the timing of both recruitment and the successful completion of training of flight crew personnel can play a crucial role. Nevertheless, it is Management’s view that its expectations are achievable. External environment DAT Group's primary environmental influence is through CO2-emissions from aircraft operations. DAT Group seeks to reduce fuel consumption and CO2-emission as much as possible. Among other things this is done by continuously training pilots, adjusting aircraft sizes to the number of passengers, optimizing flight height, and investing in more fuel-efficient aircraft which have lower CO2-emissions. Every pilot is trained in fuel-efficient flight as an integrated part of their training in the Group's aircraft fleet. DAT Group continues to invest in new aircraft to achieve the optimum utilization based on the Group's activities, including the optimal utilisation related to fuel consumption. Furthermore, the Group did in 2022 exit its services of planned charter services and is not intending to resume such services. DAT A/S and UAB DAT LT are in the aviation industry which impacts the climate with CO2 emissions. It has been estimated that the aviation industry is responsible for about to 3% of the EU’s annual CO2 emissions, and as a responsible airline the Group is invested in reducing its climate impact. This is achieved by utilizing aircraft relevant to the passenger load, continuous education of pilots, and investments in new aircraft and engines that have lower emissions overall. The environmental and climate impact is being addressed by evaluating the introduction of more fuel efficient engines. There were no noise violations were reported in 2023. Branches abroad - DAT A/S, Italy, VAT no. IT10399580967.- UAB DAT LT, Italy, VAT no IT10448800960. Uncertainty relating to recognition and measurement The assessments of indications of impairment per 31 December 2023 is based on the future cash flows expected by management per 31 December 2023, which due to external uncontrollable impacts, such as the war in Ukraine, may differ from the expectations for future cash flows that management has at the time of approval of the Annual Report. Hence, after the balance sheet date there is uncertainty in recognizing and measuring the Group’s investments in airplanes and associated spare parts. 1038735000 795897000 732000 1770000 19283000 25764000 0 0 661580000 544417000 0 0 54564000 42339000 2015000 540000 341874000 234905000 -1283000 1230000 148782000 161371000 0 0 111877000 64002000 0 0 81215000 9532000 -1283000 1230000 0 0 49079000 7300000 1342000 -1229000 0 0 22290000 27527000 3632000 349000 41529000 28178000 437000 541000 63318000 7652000 50991000 8338000 11070000 -2021000 599000 306000 52248000 9673000 50392000 8032000 0 0 47658000 7300000 1856000 1641000 0 0 50392000 8032000 2734000 732000 26270000 27309000 0 0 3612000 3572000 0 0 691972000 592502000 0 0 662090000 561621000 0 0 0 0 299353000 182781000 1342000 0 0 0 0 0 51000000 51000000 21234000 19888000 0 0 22576000 19888000 350353000 233781000 714548000 612390000 350353000 233781000 77576000 69550000 0 0 96498000 80034000 0 0 18922000 10484000 0 0 94210000 74451000 0 0 0 0 56835000 41863000 64334000 74802000 98000 0 0 0 10299000 4812000 10834000 8423000 0 0 169378000 157676000 67232000 46675000 62008000 36000 21000 16000 208928000 84793000 11029000 3054000 536812000 322539000 78282000 49745000 1251360000 934929000 428635000 283526000 152000 127000 152000 127000 0 0 0 0 0 0 177296000 129619000 3000 -16000 0 0 338762000 235911000 161469000 106276000 338917000 236022000 338917000 236022000 1866000 2390000 0 0 340783000 238412000 338917000 236022000 28680000 43975000 0 0 0 0 8757000 0 37845000 7130000 0 0 66525000 51105000 8757000 0 15070000 16375000 0 0 114960000 119148000 0 0 24816000 218568000 0 0 4682000 0 4682000 0 8228000 0 0 0 118724000 8288000 0 0 286480000 362379000 4682000 0 1453000 1390000 0 0 26216000 42942000 0 0 192722000 14672000 0 0 6040000 12344000 0 0 91096000 93019000 0 0 0 0 61037000 39149000 4177000 4025000 3983000 3983000 21106000 4948000 10898000 4328000 214493000 109693000 361000 44000 269000 0 0 0 557572000 283033000 76279000 47504000 844052000 645412000 80961000 47504000 1251360000 934929000 428635000 283526000 127000 0 -16000 235911000 2390000 0 0 19000 0 0 25000 52459000 0 0 0 0 0 0 0 -1403000 0 0 0 0 -977000 0 0 0 50392000 1856000 0 -52459000 0 52459000 0 152000 0 3000 338762000 1866000 127000 0 129619000 106276000 25000 52459000 0 0 0 0 19000 0 0 0 47658000 2734000 0 -52459000 0 52459000 152000 0 177296000 161469000 52248000 9673000 128529000 44270000 99248000 -19829000 280025000 34114000 18580000 27521000 -41529000 -27941000 257076000 33694000 -10207000 -10038000 246869000 23656000 -218385000 -131036000 -7621000 -2233000 17192000 0 -208814000 -133269000 -1242000 0 -20914000 -6221000 -15702000 0 0 -4219000 0 17535000 0 31982000 123498000 0 60105000 0 -1403000 0 144342000 39077000 182397000 -70536000 84829000 155366000 3710000 -1000 270936000 84829000 208928000 84793000 62008000 36000 270936000 84829000 The Group's financial performance for 2023 shows a profit before tax of TDKK 63.318 and the equity is as of 31 December 2023 positive of TDKK 340.783.Next to equity the Group’s operations is financed through external credit lines provided by the Group’s bank. The credit lines are granted at Group level and hence the assessment of adequate liquidity reserves for the coming year has been made at this level. The Group has total debt towards Sydbank amounting to DKK 140 mill as of year-end 2023. Thereof, DKK 45 mill is in form of two revolving facilities with annual extensions during the summer time each year.The current credit facilities are assessed to provide sufficient liquidity to secure the Groups operations in the years to come. The credit facilities are classified as non-current debt in the balance sheet.For 2024, the Group’s budget is based on an increase in revenues of around 13% compared to 2023. The revenue growth is expected to be generated from the newly added Airbus aircraft that joined the fleet in early 2024, better utilisation of an Airbus aircraft that was under long-term maintenance in 2023, and improved yield (including PSO contributions) from before. The budget for 2024 is based on some assumptions for securing additional winter production from the winter before.As of April 2024, the liquidity is adequate with a short-term headroom totalling around DKK 144 mill. Being cautiously optimistic, the long-term liquidity forecast (12 months) shows a headroom of DKK 112 mill under the budgeted scenario. Management view is that the budgeted scenario is reasonable. This includes scheduled instalments on loans of around DKK 20 mill during 2024, new facilities against aircraft investments, and the refinancing of aircraft related purchase options. Based on this, it is the management's assessment that the Company has the necessary capital and liquidity resources to carry through the plans for the financial year 2024. The Annual Report is therefore presented on the assumption of continued operations. An incident occurred on 18 February 2024 when one of the owned aircraft, under sub dry-lease to a third-party, was operating a scheduled flight. When taking off, the aircraft overshot the runway end and impacted with the runway lights. The aircraft completed the take-off and successfully returned to the airport. The incident caused the aircraft however to get so severely damaged that it was subsequently declared a Constructive Total Loss. The aircraft was insured by the lessee and no loss has incurred for Runway Leasing ApS or the group. Geographical segments Revenue, Europe 1038735000 795897000 732000 1770000 Total 1038735000 795897000 732000 1770000 Business segments Scheduled Services 561589000 599647000 0 0 Charter Services 39475000 58899000 0 0 ACMI Services 437671000 137351000 0 0 Other income 0 0 732000 1770000 Total 1038735000 795897000 732000 1770000 Profit on sale of fixed assets 7590000 6886000 0 0 Profit on sale of inventory 9887000 10474000 0 0 Salary refund 1278000 2233000 0 0 COVID-19 support 414000 5584000 0 0 Other income 114000 587000 0 0 Total 19283000 25764000 0 0 137702000 149704000 0 0 6957000 7558000 0 0 4123000 4109000 0 0 148782000 161371000 0 0 3239000 3722000 0 0 323 330 0 0 0 0 3540000 349000 12533000 22063000 92000 0 9757000 5464000 0 0 22290000 27527000 3632000 349000 41529000 24589000 402000 541000 0 3589000 35000 0 OtherFinanceExpenses 41529000 28178000 437000 541000 22785000 5792000 599000 306000 -12917000 -7813000 0 0 1202000 0 0 0 11070000 -2021000 599000 306000 36981000 29287000 1186905000 0 1561000 216824000 0 0 8348000 36981000 30848000 1395381000 9618000 25713000 625284000 0 0 8195000 1093000 1523000 105810000 0 0 -1254000 0 0 4744000 10711000 27236000 733291000 26270000 3612000 662090000 0 0 209618000 53114000 53074000 60105000 40000 113219000 53114000 129635000 122335000 19000 0 49079000 7300000 1437000 0 177296000 129635000 81000 32000 8757000 0 299353000 182781000 DAT Holding A/S Vampdrup, Denmark 100 DAT A/S Vampdrup, Denmark 100 DAT Leasing A/S Vampdrup, Denmark 100 DAT LT, UAB Kaunas, Lithuania 100 Runway Leasing ApS Kaunas, Lithuania 100 KØ 2005 ApS Vampdrup, Denmark 100 UAB KUN Hangar LT Kaunas, Lithuania 100 RSB Asset Trading Limited Nicosia, Cyprus 51 Nordic Crew Supply Ltd Nicosia, Cyprus 100 2796000 5996000 0 0 0 3200000 0 0 2796000 2796000 0 0 -2796000 -1567000 0 0 2236000 -4016000 0 0 894000 -2787000 0 0 -1454000 -2796000 0 0 1342000 0 0 0 Nordic Regional Airlines AB Stockholm, Sweden 60 19888000 51000000 59000 0 1287000 0 21234000 51000000 21234000 51000000 Investments in subsidiaries are specified as follows: Investments in associates are specified as follows: Prepayments consist of prepaid expenses concerning rent, insurance premiums, subscriptions and interest. Group Securities 3710 62008 Parent company Securities 6 21 Deferred tax liabilities at 1 January 43975000 51787000 0 0 Amounts recognised in the income statement for the year -12917000 -7812000 0 0 Amounts recognised in equity for the year -2378000 0 0 0 Deferred tax liabilities at 31 December 28680000 43975000 0 0 Provision for maintenance 37845000 7130000 0 0 37845000 7130000 0 0 0 0 0 0 15070000 16375000 0 0 15070000 16375000 0 0 1453000 1390000 0 0 9319000 13105000 0 0 105641000 106043000 0 0 114960000 119148000 0 0 25221000 5000000 0 0 995000 37942000 0 0 0 0 0 0 24816000 218568000 0 0 24816000 218568000 0 0 192722000 14672000 0 0 0 0 0 0 4682000 0 4682000 0 4682000 0 4682000 0 4177000 4025000 3983000 3983000 0 0 0 0 8228000 0 0 0 8228000 0 0 0 0 0 0 0 0 0 0 0 118724000 8288000 0 0 118724000 8288000 0 0 214493000 109693000 361000 44000 Payments 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: Mortgage loans Credit institutions Lease obligations Payables to owner and Management Deposits Other payables Deferred income consists of payments received in respect of income in subsequent years. -22290000 -27527000 41529000 28178000 99543000 44409000 -1342000 1229000 11070000 -2021000 19000 2000 128529000 44270000 -16464000 -346000 -11702000 -65830000 30715000 -9454000 96699000 55801000 99248000 -19829000 Charges and security The following assets have been placed as security with bankers: Land and buildings with a carrying amount of 26270000 27309000 0 0 Company charge of nominally TDKK 191.635 provide security in aircraft with a booked value of 662090000 561621000 0 0 The company has provided Sydbank with a floating charge providing Sydbank with collateral in the company's receivables. The floating charge amounts to: 30000000 30000000 0 0 The following assets have been placed as security with SEBC Aviation Leasing ApS Aircraft 116052000 0 0 0 Rental and lease obligations Lease obligations under operating leases. Total future lease payments: Within 1 year 42957000 19043000 0 0 Between 1 and 5 years 134646000 68790000 0 0 After 5 years 10758000 89941000 0 0 Total 188361000 177774000 0 0 Other contingent liabilities DAT Leasing A/S has provided Runway Leasing ApS a guarantee obligation related to a loan with a booked value of 108560000 0 0 0 DAT A/S has provided DAT Leasing A/S with a full surety in relation to Sydbank. DAT Leasing A/S has provided DAT A/S with a full surety in relation to Sydbank. The Danish group companies are jointly and severally liable for tax on the jointly taxed incomes etc of the Group. The total amount of corporation tax payable by the Group amounts to DKK 21,105,950. Moreover, the Danish group companies are jointly and severally liable for Danish withholding taxes by way of dividend tax, tax on royalty payments and tax on unearned income. Any subsequent adjustments of corporation taxes and withholding taxes may increase the Group’s liability. Basis Controlling interest Runway Holding ApS Vamdrup, Denmark Transactions The Company has chosen only to disclose transactions which have not been made on an arm's length basis in accordance with section 98(c)(7) of the Danish Financial Statements Act. 695000 776000 787000 222000 85000 163000 The Annual Report of Runway Holding ApS for 2023 has been prepared in accordance with the provisions of the Danish Financial Statements Act applying to large enterprises of reporting class C. The Consolidated Financial Statements and the Parent Company Financial Statements for 2023 are presented in TDKK. Few comparative figures have been reclassified in the balance sheet in order to present the figures correctly. It has no effect on the equity or the fair view of the Annual Report. 1 Revenues are recognised in the income statement as earned. Furthermore, value adjustments of financial assets and liabilities measured at fair value or amortised cost 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. Basis of consolidation The Consolidated Financial Statements comprise the Parent Company, Runway Holding ApS, and subsidiaries 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. Enterprises in which the Group holds between 20% and 50% of the votes and exercises significant influence but not control are classified as associates. 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. Minority interests Minority interests form part of the Group's total equity. Upon distribution of net profit, net profit is broken down on the share attributable to minority interests and the share attributable to the shareholders of the Parent Company. Minority interests are recognised on the basis of a remeasurement of acquired assets and liabilities to fair value at the time of acquistition of subsidiaries. On subsequent changes to minority interests where the Group retains control of the subsidiary, the consideration is recognised directly in equity. Leases in terms of which the Group assumes substantially all the risks and rewards of ownership (finance leases) are recognised in the balance sheet at the lower of the fair value of the leased asset and the net present value of the lease payments computed by applying the interest rate implicit in the lease or an alternative borrowing rate as the discount rate. Assets acquired under finance leases are depreciated and written down for impairment under the same policy as determined for the other fixed assets of the Group. The remaining lease obligation is capitalised and recognised in the balance sheet under debt, and the interest element on the lease payments is charged over the lease term to the income statement. All other leases are considered operating leases. Payments made under operating leases are recognised in the income statement on a straight-line basis over the lease term. Transactions 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 rates at the time when the receivable or the debt arose are recognised in financial income and expenses in the income statement. Fixed assets acquired in foreign currencies are measured at the transaction date rates. Information on business segments and geographical segments is based on the Group´s risks and returns and its internal financial reporting system. Business segments are regarded as the primary segments. Revenue from the sale of goods and services are recognised when the risks and rewards relating to the goods and services sold have been transferred to the purchaser, the revenue can be measured reliably and it is probable that the economic benefits relating to the sale will flow to the Group. Revenue is measured at the consideration received and is recognised exclusive of VAT and net of discounts relating to sales. Direct expenses primarily include operating expenses for the year. Other external expenses comprise indirect production costs and expenses for premises, sales as well as office expenses, etc. Staff costs include wages and salaries including compensated absence and pensions as well as other social security contributions etc. made to the entity's employees. Amortisation, depreciation and impairment losses comprise depreciation and impairment of property, plant and equipment. Other operating income and other operating expenses comprise items of a secondary nature to the main activities of the Group, including gains and losses on the sale of property, plant and equipment. The items “Income from investments in subsidiaries” and “Income from investments in associates” in the income statement include the proportionate share of the profit for the year. Financial income and expenses are recognised in the income statement at the amounts relating to the financial year. Tax for the year consists of current tax for the year and changes in 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 is jointly taxed with Danish group companies. The tax effect of the joint taxation is allocated to Danish enterprises in proportion to their taxable incomes. Property, 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. Interest expenses on loans contracted directly for financing the construction of property, plant and equipment are recognised in cost over the construction period. 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: Aircraft 10 - 20 years Other building 10 - 30 years Other fixtures and fittings, tools and equipment 3 - 7 years Depreciation period and residual value are reassessed annually. The carrying amounts of property, plant and equipment and investments are reviewed on an annual basis to determine whether there is any indication of impairment other than that expressed by depreciation. If so, the asset is written down to its lower recoverable amount. Investments in subsidiaries and associates are recognised and measured under the equity method. The items “Investments in subsidiaries” and “Investments in associates” 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 the remaining value of any increases in value and goodwill calculated at the time of acquisition of the enterprises. The total net revaluation of investments in subsidiaries and associates 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 the subsidiaries and the associates. Subsidiaries and associates with a negative net asset value are recognised at DKK 0. Any legal or constructive obligation of the Parent Company to cover the negative balance of the enterprise is recognised in provisions. Other fixed asset investments consist of deposits. Inventories are measured at the lower of cost under the FIFO method and net realisable value. The net realisable value of inventories is calculated at the amount expected to be generated by sale of the inventories in the process of normal operations with deduction of selling expenses and costs of completion. The net realisable value is determined allowing for marketability, obsolescence and development in expected selling price. The cost of raw materials and consumables equals landed cost. Receivables 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. Prepayments comprise prepaid expenses concerning rent, insurance premiums, subscriptions and interest. Current Asset Investments, which consist of listed bonds and shares, are measured at their fair values at the balance sheet date. Fair value is determined on the basis of the latest quoted market price. Provisions are recognised when - in consequence of an event occurred before or on the balance sheet date - the Group has a legal or constructive obligation and it is probable that economic benefits must be given up to settle the obligation. Deferred income tax is measured using the balance sheet liability method in respect of temporary differences arising between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes 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 within the same legal tax entity. 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. Any changes in deferred tax due to changes to tax rates are recognised in the income statement or in equity if the deferred tax relates to items recognised in equity. Current tax liabilities and receivables are recognised in the balance sheet as the expected taxable income for the year adjusted for tax on taxable incomes for prior years and tax paid on account. Extra payments and repayment under the on-account taxation scheme are recognised in the income statement in financial income and expenses. Loans, such as mortgage loans and 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. Mortgage loans are measured at amortised cost, which for cash loans corresponds to the remaining loan. Amortised cost of debenture loans corresponds to the remaining loan calculated as the underlying cash value of the loan at the date of raising the loan adjusted for depreciation of the price adjustment of the loan made over the term of the loan at the date of raising the loan. Other debts are measured at amortised cost, substantially corresponding to nominal value. Deferred income comprises payments received in respect of income in subsequent years. The cash flow statement shows the Group’s cash flows 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. Cash 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 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 activities comprise cash flows from the raising and repayment of long-term debt as well as payments to and from shareholders. Cash and cash equivalents comprise ”Cash at bank and in hand” and ”Current asset investments”. ”Current asset investments” consist of short-term securities with an insignificant risk of value changes that can readily be turned into cash. The cash flow statement cannot be immediately derived from the published financial records. Gross margin Gross profit x 100 / Revenue Profit margin Profit/loss of ordinary primary operations x 100 / Revenue Return on assets Profit/loss of ordinary primary operations x 100 / Total assets at year end Solvency ratio Equity at year end x 100 / Total assets at year end Return on equity Net profit for the year x 100 / Average equity