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Scanmetals A/S 32895468 Skibbækparken 7-11, Kirke Stillinge Slagelse Slagelse Beierholm Næstved Handelsskolevej 1 4700 true true We have on this day presented the annual report for the financial year 01.01.25 - 31.12.25 for Scanmetals A/S. The annual report is presented in accordance with the Danish Finan­cial Sta­te­ments Act. In our opinion, the consolidated financial sta­te­ments and financial statements give a true and fair view of the group's and the parent's assets, lia­bilities and financial position as at 31.12.25 and of the results of the group’s and parent’s ac­ti­vities and of the group's cash flows for the financial year 01.01.25 - 31.12.25. We believe that the management's review includes a fair review of the matters dealt with in the management's review. The annual report is submitted for adoption by the general meeting. Andrew John King Lars Fuglsang Mikkel Krogslund Andersen Chairman Andreas Færk Allan Bach Pedersen Henrik Linde Thøgersen To the Shareholder of Scanmetals A/S In our opinion the con­so­li­da­ted fi­nan­cial sta­te­ments and fi­nan­cial sta­te­ments give a true and fair view of the group's and the com­pa­ny's finan­cial posi­tion at 31.12.25 and of the results of the group's and the com­pa­ny's ope­ra­tions and con­solidated cash flows for the finan­cial year 01.01.25 - 31.12.25 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 con­so­li­da­ted fi­nan­cial sta­te­ments and fi­nan­cial sta­te­ments” section of our report. We are independent of the group and 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. 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 mana­ge­ment’s review.Our opinion on the con­so­li­da­ted fi­nan­cial sta­te­ments and 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 con­so­li­da­ted fi­nan­cial sta­te­ments and fi­nan­cial sta­te­ments, it is our responsibility is to read mana­gement’s review and, in doing so, con­sider whether management’s review is mate­rially in­con­sistent with the con­so­li­da­ted fi­nan­cial sta­te­ments or pa­rent com­pa­ny 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, we conclude that the management’s review is in accordance with the con­so­li­da­ted fi­nan­cial sta­te­ments and fi­nan­cial sta­te­ments and has been prepared in accordance with the requirements of the Danish Financial Statements Act. We did not identify any material misstatement of the management’s review. Management is responsible for the pre­pa­ra­tion of con­so­li­da­ted fi­nan­cial sta­te­ments and 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 con­so­li­da­ted fi­nan­cial sta­te­ments and fi­nan­cial sta­te­ments that are free from material misstatement, whether due to fraud or error.In preparing the con­so­li­da­ted fi­nan­cial sta­te­ments and fi­nan­cial sta­te­ments, mana­ge­ment is responsible for assessing the group's and 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 con­so­li­da­ted fi­nan­cial sta­te­ments and fi­nan­cial sta­te­ments unless mana­ge­ment either intends to liquidate the group and the company or to cease operations, or has no rea­listic alternative but to do so. Our objectives are to obtain reasonable as­surance about whether the con­so­li­da­ted fi­nan­cial sta­te­ments and 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 con­so­li­da­ted fi­nan­cial sta­te­ments and fi­nan­cial sta­te­ments.As part of an audit conducted in accordance with ISAs and the additional requirements applic­able in Denmark, we exercise pro­fes­sional judgment and maintain professional scepticism through­out the audit. We also: Identify and assess the risks of material misstatement of the con­so­li­da­ted fi­nan­cial sta­te­ments and 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 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 con­so­li­da­ted fi­nan­cial sta­te­ments and 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 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 con­so­li­da­ted fi­nan­cial sta­te­ments and 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 company to cease to continue as a going concern.Evaluate the overall presentation, structure and contents of the con­so­li­da­ted fi­nan­cial sta­te­ments and fi­nan­cial sta­te­ments, including the disclosures, and whether the con­so­li­da­ted fi­nan­cial sta­te­ments and fi­nan­cial sta­te­ments repre­sent the underlying transactions and events in a manner that gives a true and fair view.Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the group as a basis for expressing an opinion on the consolidated financial statements and fi­nan­cial sta­te­ments. We are responsible for the direction, supervision and review of the audit work performed for purposes 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. Næstved Rickard Halfdan Patel State Authorised Public Accountant mne33780 1094273000 1161712000 902479000 195140000 217935000 220059000 Profit before depreciation, amortisation, write-downs and impairment losses 143744 168664 94557 133432 149474 37328000 77289000 94732000 -18565000 -10179000 -11262000 6618000 45164000 54763000 750216000 709939000 695047000 116669000 130281000 97550000 48483000 23563000 195934000 194009000 161204000 58379000 80986000 90240000 -97414000 -48446000 -23654000 39697000 -42554000 -37519000 18 8 24 41 15 22 26 27 23 171 156 134 Ratios definitionsReturn on equity:Profit/loss for the year x 100Average equityGross margin:Gross result x 100RevenueSolvency ratio:Equity, end of year x 100Total assets Primary activitiesScanmetals recovers non-ferrous metals from mixed post-consumer waste. The recovered non ferrous metals are cleaned, separated into different fractions, and sold to primary and secondary smelters, refineries, manufacturers of ingots and foundries globally. Scanmetals A/S is the parent company of the Scanmetals groups of companies (“Scanmetals” or the “company”) with principal operations in Denmark, Germany and the United Kingdom. Development in activities and financial affairsThe income statement for the period 01.01.25 - 31.12.25 shows a profit/loss of DKK -34,132k against DKK 39,584k for the period 01.01.24 - 31.12.24. The balance sheet shows equity of DKK 189,778k.Key developments during the year included:Inaguration and ramp-up of our Sanish plant in ZaragozaRefinancing the group to prepare for growthCEO/Leadership transition to lead the way forwardImpairment of participating interests and a provision relating to the sale of recycled aggregates at AFATEK Expectations for 2025 were an operating profit before depreciation (EBITDA) of DKK 140 - 150 million. The objective was met. OutlookThe company expects an operating profit for 2026 before depreciation (EBITDA) in the region of DKK 160 - 170 million for 2026. Financial risksPrice risksThe non-ferrous metals recovered are subject to fluctuations in commodity price. However, the lead time to purchasing raw material and the sale of recovered metals is relatively short and the risk of significant individual commodity price movements is limited. The company does not take speculative positions on the future price of its metal end products. Foreign currency risksThe group is exposed to limited foreign currency risk as most raw material purchases (except UK) and sales transactions are settled in Euro. On a monthly basis the company hedges its foreign exchange risk where possible.Exchange rate adjustments of investments in subsidiaries that are an independent entity are recognized directly in equity. Interest rate risksThe company’s policy in respect of interest rate and liquidity risk is to maintain a mixture of term finance from its shareholders and banking partners with both fixed and floating interest rates.Credit risksAppropriate and regular credit checks are made on all potential customers before any metal sales are undertaken. The company also makes use of credit insurance to mitigate the credit risk of its customers. Subsequent eventsNo important events have occurred after the end of the financial year.After the balance sheet date, the company carried out a cash capital increase, bringing the share capital to DKK 1,615k. The capital increase has resulted in the company’s equity increasing by DKK 137,590k.No other significant events have occurred since the end of the fiscal year. Corporate social responsibilityScanmetals’ Commitment to a Sustainable FutureScanmetals will continue to invest in innovation and process improvements that will further enhance our contribution to a more resilient and resource-efficient production. We have set targets to minimize our environmental impact. Our roadmap includes measurable milestones and key performance metrics. To ensure our performance aligns with industry's best practices, we closely monitor energy consumption and waste reduction.As part of our commitment to transparency, we are using Solitwork to collect our ESG data and. This enables us to report in accordance with the voluntary sustainability reporting framework.Governance, Stakeholder Engagement and ComplianceDuring the year, Scanmetals underwent significant developments in ownership and management. Polaris acquired CSC Capital's stake in the company, leading to adjustments in the management structure, including the appointment of a new chairman of the board. Lars Fuglsang was appointed Chief Executive Officer, while founder Ejvind Pedersen transitioned to an active board role.The company also completed a refinancing and expansion of its credit facilities through a debut club deal with Nordea Denmark and Nykredit Bank, strengthening financial flexibility and supporting long-term growth, operational investments, and sustainable metal recovery initiatives.Scanmetals engage actively with stakeholders, including investors, customers, employees, and regulatory authorities, to ensure transparency, collaboration, and continuous improvement. In 2025, the company became a member of the Danish Waste and Resource Industry Association (ARI), enhancing regulatory insight, industry alignment, and contribution to relevant standards, while reinforcing ethical practices and sustainable value creation.Scanmetals are now covered by the NIS2 Directive and have been classified in the "important" category due to the societal significance of our operations. We actively comply with the requirements applicable to companies of increased societal importance, including strengthened processes for cybersecurity, risk management, and operational preparedness.Key Performance Indicators To track our progress, we monitor a comprehensive set of key range of performance indicators, including energy efficiency, waste reduction, and overall environmental impact. These metrics provide valuable insights that inform our strategic decisions and help us identify opportunities for further improvement. 20254,119,862Accounting policiesTotal energy consumption consists of the sum in kWh of energy consumtion from fossil sources, nuclear sources and renewable sources.Cutting CO2 Emissions with Innovative Metal Recycling SolutionsIn 2025, Scanmetals recovered 19,627 tonnes Aluminum and 8,416 tonnes Heavy metals (including copper, zinc, brass, stainless steel, gold and silver). This has resulted in significant CO2 savings compared to the production of virgin metals. Industry averages suggest that producing virgin aluminum generates about 12 tonnes CO2 per ton (https://www.epa.gov/ghgemissions), whereas recycling can reduce these emissions by up to 95%. This translates to an estimated saving of roughly 11.4 tonnes CO2 for every ton of recycled aluminum (https://www.world-aluminium.org/). For heavy metals, the recycling process can save around 2.5 tonnes CO2 per ton compared to virgin production. (https://ghgprotocol.org/standards-guidance).These initiatives underscore our commitment to a more sustainable future and highlight the role that Scanmetals plays in reducing the global metal manufacturing industry's carbon footprint.Social and employee mattersScanmetals' management system is based on the following ISO standards: ISO 9001 (Quality), ISO 14001 (Environment), and ISO 45001 (Health & Safety).The system is audited annually by external auditors, who assess the company's actual performance in relation to the procedures in the management system and the requirements of the applicable ISO standards. The company set specific goals in 2025 for each standard, including high customer satisfaction ratings in relation to the quality of the metals they purchase, zero accidents and near misses in terms of Health & Safety and no environmental permit breaches. While the target of zero accidents and near misses remains a long-term ambition, Scanmetals recorded 2 lost time injuries, 15 recordable incidents, and 20 near misses . These were thoroughly investigated and followed up with preventive and corrective actions.Environmental compliance remained a top priority, with no reported breaches of environmental permits in 2025.The integrated management system plays a vital role in driving performance improvements, mitigating risk, and aligning operational practices with Scanmetals' core values of responsibility, quality, and sustainability. In addition, Scanmetals maintained its commitment to quality through continuous product monitoring and close dialogue with customers to ensure specifications are consistently met.The company has set a clear target of zero workplace incidents ("Lost Time Injury" - LTI) and has implemented procedures for reporting and addressing near-misses across all sites. These measures aim to reduce risks and strengthen the overall safety-culture. Daily reporting of near misses will continue to be a focus area, as part of the company's efforts to provide a safe and secure working environment for all employees.202520242115342019Accounting policiesAll work-related injuries and near misses are recorded in our management quality system when these occur. Lost time injuries includes work-related injuries with more than 1 day absence.Employee Well-being and InclusionScanmetals is committed to maintaining a healthy, inclusive, and respectful workplace culture. The company supports equal opportunities and a non-discriminatory work environment that allows all employees to thrive. Initiatives aimed at employee engagement and well-being are continuously assessed and developed, in alignment with Scanmetals' core values. Scanmetals has a Code of Conduct to govern staff and all persons who act on behalf of Scanmetals, guaranteeing that all the company's activities are conducted ethically, under socially responsible conditions and which prioritize the well-being of both employees and the environment.Respect for human rights Given Scanmetals’ international footprint, the company maintains ongoing assessments of human rights risks in the countries it operates in and among its business partners. Through regular dialogue and evaluations, Scanmetals monitors suppliers and customers to ensure adherence to internationally recognised human rights principles.Scanmetals does not engage with external partners whose practices conflict with its ethical standards. The company’s Modern Slavery and Human Trafficking Statement outlines its commitment to preventing forced labour, child labour, and other forms of exploitation. There has been no reporting in 2025. The statement is publicly available on the company’s website:https://scanmetals.com/modern-slavery-human-trafficking-statementAnti-corruption and bribery mattersAnti-corruption and bribery are paramount concerns for Scanmetals, and the company is committed to upholding the highest standards in all dealings with customers and suppliers alike. The company’s values and ethical standards can be found in the Code of Conduct: https://scanmetals.com/wp-content/uploads/2024/08/Scanmetals-Code-of-Conduct.pdfFurthermore, the company has implemented a Whistleblower policy for both employees and clients, allowing the reporting of any suspicions regarding the company's activities. To date, the whistleblower scheme has not received any reports of inappropriate behavior or issues of concern.For information on the company’s Whistleblower policy, please visit the Scanmetals website: https://whistleportal.co/HYpjq. This policy allows both employees and clients to report any activities that may compromise the integrity of Scanmetals. Business model and sustainabilityScanmetals is a recycling company specializing in the recovery of non-ferrous metals from mixed post-consumer waste and metal scrap. As an industry leader in metal recycling, Scanmetals utilizes the latest separation technologies to recover individual fractions of non-ferrous metals efficiently and effectively. The recovered metals are used in the production of low carbon alloys and metals in various manufacturing industries.At Scanmetals, our business model is rooted in the principles of a circular economy. Scanmetals is committed to driving innovation and operational excellence in the metal recycling industry. We continuously evaluate and adapt our processes to ensure they remain resilient to environmental challenges and market dynamics. We seek to enhance resource efficiency and environmental responsibility across the recycling value chain by investing in technology and sustainable practices. Scanmetals plays an important role in supporting the global metal industry’s transition toward a more sustainable future. Strategic Expansion and new FacilityScanmetals operates six processing facilities in Denmark, Germany, the United Kingdom and Spain. Scanmetals has a workforce of nearly 250 employees across the group. Scanmetals has experienced significant growth and development in recent years, highlighted by the establishment of a new processing facility in Zaragoza, Spain and the recent acquisition of Afatek and Roca. Data ethicsScanmetals has, following advice from the associated GDPR legal counsel, opted out of a data ethics policy, as Scanmetals does not process data or personal data on a large scale or uses new technologies, such as algorithms, machine learning or artificial intelligence in the development and provision of the company's services. The processing of personal data or data is not part of Scanmetals’ business activities or strategy.In connection with Scanmetals’ activities, no personal data or data is processed as only B2B customers are traded with and therefore, as a rule, no personal data or data is processed in a business context.Scanmetals only processes contact information (name and work email address and / or work telephone number) of a contact person at a B2B customer in connection with the administration or collaboration with the B2B customer. This information is collected from the contact person himself.In addition to the above, Scanmetals processes personal information about its employees to manage the employment relationship. Scanmetals does not make use of algorithms for the processing of this personal data.For more information please visit the Scanmetals website: https://whistleportal.co/HYpjq#privacy-policy 1488759000 1378991000 595677000 609388000 -25223000 -9112000 -9112000 12452000 5700000 2945000 7393000 3026000 1095310000 1027261000 460343000 460419000 144722000 89811000 26665000 25710000 279650000 273976000 125174000 113833000 135906000 105312000 64632000 54082000 76988000 60853000 23968000 21316000 15504000 0 15504000 0 51252000 107811000 21070000 38435000 0 0 -20120000 14651000 807000 577000 807000 577000 2130000 2415000 1275000 1894000 10312000 0 10312000 0 49847000 38831000 33314000 24529000 -5970000 71972000 -40594000 31028000 28162000 32388000 -2389000 4407000 -34132000 39584000 -38205000 26621000 201650000 237241000 0 0 201650000 237241000 0 0 288067000 105914000 89159000 93504000 44374000 16188000 0 0 138369000 123737000 108786000 86250000 12164000 14356000 885000 284000 1048000 150502000 0 0 484022000 410697000 198830000 180038000 0 0 333129000 386534000 2034000 1227000 2034000 1227000 0 10312000 0 10312000 565000 0 0 0 2599000 11539000 335163000 398073000 688271000 659477000 533993000 578111000 491000 183000 0 0 129341000 104426000 53524000 44412000 129832000 104609000 53524000 44412000 135677000 140828000 51123000 52566000 0 0 173305000 99875000 0 10633000 0 10633000 8060000 0 0 0 0 0 6241000 3644000 13784000 21725000 1962000 3513000 4367000 10880000 1934000 9635000 161888000 184066000 234565000 179866000 282612000 110753000 69850000 6941000 574332000 399428000 357939000 231219000 1262603000 1058905000 891932000 809330000 1322000 1322000 1322000 1322000 0 2328000 0 2328000 -3919000 -5924000 -3919000 -5924000 161110000 199502000 161110000 199502000 158513000 197228000 158513000 197228000 31265000 37286000 0 0 189778000 234514000 158513000 197228000 0 2500000 5900000 8069000 79541000 11213000 0 0 79541000 13713000 5900000 8069000 76970000 29707000 28260000 29707000 444576000 256519000 374766000 175351000 54082000 29409000 54082000 28007000 132965000 169834000 132965000 169834000 708593000 485469000 590073000 402899000 19808000 33343000 18424000 30183000 63468000 125914000 63468000 125914000 0 19332000 0 0 117033000 80999000 31432000 22797000 0 0 3703000 2589000 23757000 16926000 3850000 0 60625000 48695000 16569000 19651000 284691000 325209000 137446000 201134000 993284000 810678000 727519000 604033000 1262603000 1058905000 891932000 809330000 Figures in DKK '000Share capitalReserve for net revaluation according to the equity methodForeign currency translation reserveCash flow hedging reserveRetained earningsEquity attributable to owners of the parentNon-controlling interestsTotal equityGroup:Statement of changes in equity for 01.01.24 - 31.12.24Balance as at 01.01.241,32200-5,610172,881168,59327,341195,934Net effect of mergers and acquisition of enterprises0000002,3292,329Adjusted balance as at 01.01.241,32200-5,610172,881168,59329,670198,263Foreign currency translation adjustment of foreign enterprises002,328002,3281,1633,491Fair value adjustment of hedging instruments000-4030-4030-403Dividend paid000000-6,510-6,510Tax on changes in equity00089089089Net profit/loss for the year000026,62126,62112,96339,584Balance as at 31.12.241,32202,328-5,924199,502197,22837,286234,514Statement of changes in equity for 01.01.25 - 31.12.25Balance as at 01.01.251,32202,328-5,924199,502197,22837,286234,514Foreign currency translation adjustment of foreign enterprises00-2,51500-2,515-1,369-3,884Fair value adjustment of hedging instruments0002,57002,57002,570Dividend paid000000-8,725-8,725Tax on changes in equity000-5650-5650-565Transfers to/from other reserves001870-187000Net profit/loss for the year0000-38,205-38,2054,073-34,132Balance as at 31.12.251,32200-3,919161,110158,51331,265189,778Figures in DKK '000Share capitalReserve for net revaluation according to the equity methodForeign currency translation reserveCash flow hedging reserveRetained earningsEquity attributable to owners of the parentNon-controlling interestsTotal equityParent:Statement of changes in equity for 01.01.24 - 31.12.24Balance as at 01.01.241,32200-5,610172,881168,5930168,593Foreign currency translation adjustment of foreign enterprises002,328002,32802,328Fair value adjustment of hedging instruments000-4030-4030-403Tax on changes in equity00089089089Net profit/loss for the year000026,62126,621026,621Balance as at 31.12.241,32202,328-5,924199,502197,2280197,228Statement of changes in equity for 01.01.25 - 31.12.25Balance as at 01.01.251,32202,328-5,924199,502197,2280197,228Foreign currency translation adjustment of foreign enterprises00-2,51500-2,5150-2,515Fair value adjustment of hedging instruments0002,57002,57002,570Tax on changes in equity000-5650-5650-565Transfers to/from other reserves001870-187000Net profit/loss for the year0000-38,205-38,2050-38,205Balance as at 31.12.251,32200-3,919161,110158,5130158,513 1322000 0 172881000 27341000 2329000 -6510000 26621000 12963000 1322000 0 199502000 37286000 -187000 -38205000 4073000 1322000 0 161110000 31265000 1322000 0 172881000 0 1322000 0 0 -187000 -38205000 1322000 0 161110000 0 178508000 128798000 -25223000 -9112000 14168000 -72772000 36033000 -6386000 -7402000 42101000 68328000 11213000 230280000 133426000 2131000 2415000 -49847000 -38831000 -32455000 -18537000 150109000 78473000 0 -93936000 -116669000 -130281000 0 17000 0 -10312000 -116669000 -234512000 -8725000 -6510000 48710000 0 -1598000 -1359000 375000000 80655000 -263834000 59447000 25735000 -17551000 0 92285000 -36869000 0 138419000 206967000 171859000 50928000 110753000 59825000 282612000 110753000 282612000 110753000 1.Subsequent eventsAfter the balance sheet date, the company carried out a cash capital increase, bringing the share capital to DKK 1,615k. The capital increase has resulted in the company’s equity increasing by DKK 137,590k.No other significant events have occurred since the end of the fiscal year. 2.Special itemsSpecial items are income and expenses that are special due to their size and nature. The following special items were recorded in the financial year:GroupParentSpecial items:Recognised in the income statement in:2025 DKK '0002024 DKK '0002025 DKK '0002024 DKK '000Write-downs on other current assetsWrite-downs of current assets exceeding normal write-downs-15,5040-15,5040Impairment losses of equity investments in participating interestsImpairment losses on financial assets-10,3120-10,3120Provisions during the yearCost of sales-48,996000Total-74,8120-25,8160During the fiscal year, the group observed a significant increase in its costs associated with the disposal of slag gravel. As a result, a substantial adjustment was made to the provision for the disposal of this material, which had a negative impact on the year’s results. Furthermore an adjustment was made on the equity investments in participating interests and the receivable from the same company. Information about the distribution of revenue by activities and geographical markets is provided below. The segment information is prepared in accordance with the company's accounting policies and follows the company's internal financial management.With reference to the exemption-on-prejudice provision in section 96(1) of the Danish Financial Statements Act, the company has omitted to provide further segment information. The reason for the omission is that this information will have a negative effect on the Group's competitiveness.Revenue comprises the following activities:Revenue, metals1,488,7591,378,991595,677609,388Revenue comprises the following geographical markets:Revenue, EU1,068,053933,548323,865329,674Revenue, Non-EU420,706445,443271,812279,714Total1,488,7591,378,991595,677609,388 116338000 90242000 56737000 47671000 7862000 5331000 4701000 3742000 8073000 7589000 1558000 1233000 3633000 2150000 1636000 1436000 237 200 84 79 Remuneration for the management:Remuneration for the Executive Board and Board of Directors8,7276,1138,7276,113 8727000 6113000 8727000 6113000 With reference to section 98b(3) no. 1 of the Dan­ish Fi­nan­cial Statements Act, re­mune­ration for the Executive Board and Board of Di­rectors are sum­marized for 2025 and 2024, as infor­ma­tion would other­wise lead to a­mounts be­ing shown for a single mem­ber of man­age­ment. 1035000 755000 332000 238000 51000 54000 0 0 141000 144000 49000 87000 505000 315000 310000 143000 Amortisation of intangible assets35,59126,98000Depreciation of property, plant and equipment41,48833,87323,96821,316Impairment losses on property, plant and equipment-91000Total76,98860,85323,96821,316 35591000 26980000 0 0 41488000 33873000 23968000 21316000 -91000 0 0 0 2130000 2415000 1275000 1894000 49847000 38831000 33314000 24529000 -11124000 -1505000 -2735000 4407000 4073000 12963000 0 0 -38205000 26621000 -38205000 26621000 355913000 355913000 -118672000 -35591000 -154263000 201650000 14.Property, plant and equipmentFigures in DKK '000Land and buildingsLeasehold improvementsPlant and machineryOther fixtures and fittings, tools and equipmentProperty, plant and equipment under constructionGroup:Cost as at 01.01.25133,92920,822265,05620,223150,502Foreign currency translation adjustment of foreign enterprises0-482-2,973-910Additions during the year83029,93443,7932,04440,068Disposals during the year00-1,684-4480Transfers during the year to/from other items189,28923300-189,522Cost as at 31.12.25324,04850,507304,19221,7281,048Depreciation and impairment losses as at 01.01.25-28,015-4,634-141,319-5,8670Foreign currency translation adjustment of foreign enterprises01181,486850Depreciation during the year-7,966-1,617-27,674-4,2300Reversal of depreciation of and impairment losses on disposed assets001,6844480Depreciation and impairment losses as at 31.12.25-35,981-6,133-165,823-9,5640Carrying amount as at 31.12.25288,06744,374138,36912,1641,048Carrying amount of assets held under finance leases as at 31.12.2500103,2720014.Property, plant and equipment  -  continued  -Figures in DKK '000Land and buildingsLeasehold improvementsPlant and machineryOther fixtures and fittings, tools and equipmentProperty, plant and equipment under constructionParent:Cost as at 01.01.25121,4990177,9561,8200Additions during the year830041,1138170Cost as at 31.12.25122,3290219,0692,6370Depreciation and impairment losses as at 01.01.25-27,9940-91,706-1,5360Depreciation during the year-5,1760-18,577-2160Depreciation and impairment losses as at 31.12.25-33,1700-110,283-1,7520Carrying amount as at 31.12.2589,1590108,7868850Carrying amount of assets held under finance leases as at 31.12.250099,94800 133929000 20822000 265056000 20223000 150502000 -482000 -2973000 -91000 830000 29934000 43793000 2044000 40068000 -1684000 -448000 189289000 233000 -189522000 324048000 50507000 304192000 21728000 1048000 -28015000 -4634000 -141319000 -5867000 0 118000 1486000 85000 -7966000 -1617000 -27674000 -4230000 1684000 448000 -35981000 -6133000 -165823000 -9564000 0 288067000 44374000 138369000 12164000 1048000 0 0 103272000 0 0 121499000 0 177956000 1820000 0 830000 41113000 817000 122329000 0 219069000 2637000 0 -27994000 0 -91706000 -1536000 0 -5176000 -18577000 -216000 -33170000 0 -110283000 -1752000 0 89159000 0 108786000 885000 0 0 0 99948000 0 0 15.Equity investmentsFigures in DKK '000Equity invest­ments in group enter­pri­sesEquity invest­ments in asso­ciatesEquity investments in participating interestsGroup:Cost as at 01.01.25050010,312Cost as at 31.12.25050010,312Revaluations as at 01.01.2507270Net profit/loss from equity investments08070Revaluations as at 31.12.2501,5340Impairment losses during the year00-10,312Depreciation and impairment losses as at 31.12.2500-10,312Carrying amount as at 31.12.2502,0340Parent:Cost as at 01.01.25411,92750010,312Cost as at 31.12.25411,92750010,312Revaluations as at 01.01.25-25,3937270Foreign currency translation adjustment of foreign enterprises-2,51500Amortisation of goodwill-35,59100Net profit/loss from equity investments15,4718070Dividend relating to equity investments-30,77000Revaluations as at 31.12.25-78,7981,5340Impairment losses during the year00-10,312Depreciation and impairment losses as at 31.12.2500-10,312Carrying amount as at 31.12.25333,1292,034015.Equity investments  -  continued  -Name and registered office:Ownership interestSubsidiaries:Euroscan AB, Sweden100%Scanmetals (UK) Limited, United Kingdom67%Scanmetals Deutschland GmbH, Germany100%Recoin Unipessoal Lda., Portugal100%Scanmetals Iberia Sociedad Limitada, Spain100%Afatek A/S, Næstved, Denmark70%Associates:EIBAR A/S, Aabenraa, Denmark50%Participating interests:Roca Group Limited, United Kingdom35% 0 500000 10312000 0 500000 10312000 -10312000 0 0 -10312000 0 2034000 0 411927000 500000 411927000 500000 0 0 333129000 2034000 Euroscan AB Sweden 100 Scanmetals (UK) Limited United Kingdom 67 Scanmetals Deutschland GmbH Germany 100 Recoin Unipessoal Lda. Portugal 100 Scanmetals Iberia Sociedad Limitada Spain 100 Afatek A/S Næstved, Denmark 70 EIBAR A/S Aabenraa, Denmark 50 Roca Group Limited United Kingdom 35 565000 565000 565000 GroupParent31.12.2531.12.2431.12.2531.12.24DKK '000DKK '000DKK '000DKK '00017.PrepaymentsPrepaid insurance premiums228512228512Other prepayments4,13910,3681,7069,123Total4,36710,8801,9349,635 Share capital 1321667 1322 GroupParent31.12.2531.12.2431.12.2531.12.24DKK '000DKK '000DKK '000DKK '00020.Deferred taxProvisions for deferred tax as at 01.01.25-2,499-8,155-8,069-3,751Additions relating to mergers and acquisition of enterprises04,29200Deferred tax recognised in the income statement11,1241,5052,735-4,407Deferred tax recognised in equity-565-141-56589Provisions for deferred tax as at 31.12.258,060-2,499-5,899-8,069As at 31.12.25, the group has recognised a deferred tax asset of DKK 8,060k, which consists of temporary differences between accounting and tax treatment. The deferred tax asset is not related to tax losses. -2499000 -8155000 -8069000 -3751000 11124000 1505000 2735000 -4407000 -565000 -141000 -565000 89000 As at 31.12.25, the group has recognised a deferred tax asset of DKK 8,060k, which consists of temporary differences between accounting and tax treatment. The deferred tax asset is not related to tax losses. 21.Other provisionsFigures in DKK '000Obligation for dismandling, removing and restoringOther provisionsGroup:Provisions as at 01.01.2511,21319,332Provisions during the year048,996Provisions as at 31.12.2511,21368,32831.12.2531.12.2431.12.2531.12.24DKK '000DKK '000DKK '000DKK '000Other provisions are expected to be distributed as follows:Non-current liabilities37,08311,21300Current liabilities42,458000Total79,54111,21300 -1250000 21794000 78220000 31108000 0 0 444576000 270964000 -18558000 0 72640000 46906000 0 132965000 169834000 -1250000 21794000 29510000 31108000 0 0 374766000 187986000 -17174000 0 71256000 44154000 0 132965000 169834000 23.Fair value informationFigures in DKK '000Derivative financial instrumentsGroup:Fair value as at 31.12.25-5,025Unrealised changes of fair value recognised in equity for the year2,570Parent:Fair value as at 31.12.25-5,025Unrealised changes of fair value recognised in equity for the year2,570 24.Derivative financial instrumentsGroup:The group has entered into two interest rate swaps to hedge future interest payments on a variable-rate mortgage loan. The interest rate swaps have a term of five to ten years for the latest expiry on 31 December 2033. The interest rate swaps are recognised at fair value calculated by the bank, amounting to DKK -5,025k at the balance sheet date. The interest rate swaps have been entered into with a Danish bank as the counterparty.Parent:The company has entered into two interest rate swaps to hedge future interest payments on a variable-rate mortgage loan. The interest rate swaps have a term of five to ten years for the latest expiry on 31 December 2033. The interest rate swaps are recognised at fair value calculated by the bank, amounting to DKK -5,025k at the balance sheet date. The interest rate swaps have been entered into with a Danish bank as the counterparty. 25.Contingent liabilitiesGroup:Recourse guarantee commitmentsThe group has provided a guarantee whereby the guarantor assumes primary liability for group enterprises' debt to credit institutions. The guarantee is maximised at DKK 1,015k. The group enterprises' debt to the credit institutions concerned amounts to DKK 0 at the balance sheet date.The group has provided guarantees whereby the guarantor assumes primary liability for group enterprises' debt to credit institution. The guarantees are unlimited. The group enterprises' debt to the credit institution concerned amounts to DKK 0 at the balance sheet date.Guarantee commitmentsThe group has provided guarantees of DKK 3,065k to suppliers and public authorities.25.Contingent liabilities - continued -Parent:Recourse guarantee commitmentsThe company has provided a guarantee whereby the guarantor assumes primary liability for group enterprises' debt to credit institutions. The guarantee is maximised at DKK 1,015k. The group enterprises' debt to the credit institutions concerned amounts to DKK 0 at the balance sheet date.The company has provided guarantees whereby the guarantor assumes primary liability for group enterprises' debt to credit institution. The guarantees are unlimited. The group enterprises' debt to the credit institution concerned amounts to DKK 0 at the balance sheet date.Guarantee commitmentsThe company has provided guarantees of DKK 2,565k to suppliers and public authorities.Other contingent liabilitiesThe company is taxed jointly with the other Danish companies in the group and has joint, several and unlimited liability for income taxes and any obligations to withhold tax at source on interest, royalties and dividends for the jointly taxed companies. The liability also includes any subsequent corrections to the calculated tax liability as a consequence of changes made to the jointly taxable income etc. 26.Other commitmentsGroup:The group has concluded lease agreements with total lease payments of DKK 68,671k.Parent:The company has concluded lease agreements with total lease payments of DKK 27k. 27.Charges and securityGroup:Land and buildings with a carrying amount of DKK 83,158k have been provided as security of DKK 32,685k for mortgage debt of DKK 29,510k. The group has issued mortgage deeds registered to the mortgagor in the total amount of DKK 25,300k secured upon land and buildings with a carrying amount of DKK 67,887k. The mortgage deeds registered to the mortgagor are provided as security for debt to credit institutions.The group has provided a company charge of DKK 137,500k as security for debt to cre­dit institutions of DKK 438,234k. As at 31.12.25, the com­pa­ny charge comprises the following as­sets with the following carrying amounts:Goodwill and intellectual property rights, DKK 0kMotor vehicles, DKK 0kOther plant, fixtures and fittings, tools and equipment, DKK 116,555kInventories, DKK 53,524kTrade receivables, DKK 51,123kFuels and other ancillary materials, DKK 0kEquity investments in group enterprises Afatek A/S, Scanmetals (UK) Limited, Scanmetals Deutschland GmbH and Scanmetals Iberia Sociedad Limitada with a carrying amount of DKK 328,833k have been provided as security for debt to cre­dit institutions of DKK 438,234k.27.Charges and security - continued -Parent:Land and buildings with a carrying amount of DKK 83,158k have been provided as security of DKK 32,685k for mortgage debt of DKK 29,510k. The company has issued mortgage deeds registered to the mortgagor in the total amount of DKK 9,300k secured upon land and buildings with a carrying amount of DKK 60,933k. The mortgage deeds registered to the mortgagor are provided as security for debt to credit institutions.The company has provided a company charge of DKK 127,500k as security for debt to cre­dit institutions of DKK 438,234k. As at 31.12.25, the com­pa­ny charge comprises the following as­sets with the following carrying amounts:Goodwill and intellectual property rights, DKK 0kMotor vehicles, DKK 0kOther plant, fixtures and fittings, tools and equipment, DKK 109,672kInventories, DKK 53,524kTrade receivables, DKK 51,123kFuels and other ancillary materials, DKK 0kEquity investments in group enterprises Afatek A/S, Scanmetals (UK) Limited, Scanmetals Deutschland GmbH and Scanmetals Iberia Sociedad Limitada with a carrying amount of DKK 328,833k have been provided as security for debt to cre­dit institutions of DKK 438,234k. 28.Related partiesRelated party transactions are not disclosed, as all transactions are entered into in the ordinary course of business at arms’ length.Remuneration for the management is specified in note 4. Staff costs. 76989000 60853000 15504000 0 -807000 -577000 -2131000 -2415000 49848000 38831000 28161000 32388000 632000 -274000 The annual report is presen­ted in accordance with the provisions of the Danish Financial Statements Act for large groups and enterprises in re­port­ing class C. Basis of recognition and measurementIncome is recognised in the income state­ment as earned, including value adjust­ments of fin­an­cial assets and liabilities. All ex­penses, including depreciation, amortisa­tion, impair­ment losses and write-downs, are also recognised in the in­come state­ment.Assets are recognised in the balance sheet when it is probable that future economic bene­fits will flow to the company, and the value of such assets can be measured reliably. Liabilities are recognised in the balance sheet when it is probable that future economic benefits will flow from the company, and the value of such liabilities can be measured reliably. On initial recognition, assets and liabilities are measured at cost. Subsequently, assets and liabilities are measured as described for each item below.On recognition and measurement, account is taken of foreseeable losses and risks arising before the date at which the annual report is presented and proving or disproving matters arising on or before the balance sheet date. CONSOLIDATED FINANCIAL STATEMENTSThe consolidated financial statements comprise the parent and its subsidiaries in which the parent directly or indirectly holds more than 50% of the voting rights or by way of agreements exercises control. Enterprises in which the group holds participating interests, between 20% and 50% of the voting rights and in which it has significant interest but not control, are considered associates. Enterprises held by the group for the purpose of furthering its own activities through a permanent affiliation, and in which the group does not exercise significant influence or control, are considered participating interests.All financial statements used for consolidation are prepared in accordance with the ac­count­ing policies of the group.The consolidated financial statements con­solidate the financial statements of the parent and its subsidiaries by adding to­gether items of a uniform nature, elimi­nating intercompany income and ex­penditure, equity investments, inter­company balances and dividends as well as gains and losses resulting from transactions between the consolidated enterprises to the extent that the underlying assets and liabilities are not realised. Non-controlling interestsThe financial items of the subsidiaries are recog­nised in full in the consolidated finan­cial state­ments. The non-controlling interests’ proportion­ate share of the subsidiaries’ equity is classified as a part of consolidated equity. The subsidiar­ies’ results are distributed proportionately to non-controlling interests and the parent’s equity interest.Purchase and sale of non-controlling interests in a subsidiary which do not result in changes in control of the subsidiary are treated in the consolidated financial statements as equity transactions, and the difference between the consideration and the carrying amount is allocated to the parent’s equity interest. CURRENCYThe annual report is presen­ted in Danish kroner (DKK).On initial recognition, transactions den­ominated in foreign currencies are trans­lated using the exchange rates applicable at the transaction date. Exchange rate differences between the exchange rate applicable at the transaction date and the exchange rate at the date of payment are recognised in the income statement as a financial item. Receivables, payables and other monetary items denominated in foreign currencies are translated using the exchange rates applicable at the balance sheet date. The difference between the ex­change rate applicable at the balance sheet date and at the date at which the receivable or payable arose or was recognised in the latest annual report is recognised under financial income or ex­penses in the income statement. Fixed assets, inventories and other non-monetary assets acquired in foreign currencies are translated using historical exchange rates.On recognition of independent foreign entities, the income statements are translated at the exchange rates applicable at the transaction date or approximate average exchange rates. The balance sheet items are translated using the exchange rates applicable at the balance sheet date. Foreign currency translation adjustments arising from the translation of equity at the beginning of the year using the exchange rates applicable at the balance sheet date and from the translation of income statements from average exchange rates to the exchange rates applicable at the balance sheet date are recognised directly in equity under the reserve for net revaluation according to the equity method in respect of investments measured ac­cord­ing to the equity method, and otherwise un­der the foreign currency translation reserve.Translation adjustments of intercompany balances with independent foreign entities, measured using the equity method and where the balance is considered to be part of the overall investment, are recognised directly in equity under the foreign currency translation reserve. On the divestment of foreign entities, accumulated exchange differences are recognised in the income statement. DERIVATIVE FINANCIAL INSTRUMENTSOn initial recognition, derivative financial instruments are measured at cost. Sub­sequently, they are measured at fair value and recognised under other receivables and other payables, respectively. Fair value adjustment of derivative financial instruments classified as and meeting the criteria for hedging future cash flows (cash flow hedging) are recognised in equity under the cash flow hedging reserve. In the event that the hedged transaction results in the recognition of an asset or a liability, the accumulated fair value adjustment of the hedging instrument, which was previously recognised in equity, will be included in the cost of the asset or the liability. In the event that the hedged transaction results in the recognition of an income or an expense, the accumulated fair value adjustment of the hedging instrument, which was previously recognised in equity, will be recognised together with the hedged income or expense.If the hedged transaction is no longer expected to occur, the cash flow hedging treatment is discontinued, and the accumulated fair value adjustment of the hedging instrument is transferred to other net financials in the income statement. If the hedged transaction is still expected to occur, but the criteria for cash flow hedging are no longer met, the hedging treatment is discontinued, and the accumulated fair value adjustment of the hedging instrument remains in equity until the transaction occurs.Fair value adjustments of derivative finan­cial instruments that do not meet the criteria for hedge accounting treatment are recognised under other net financials in the income statement on an ongoing basis. LEASESLeases relating to assets where the company has substantially all the risks and benefits incidental to the ownership of the asset (finance leases) are recognised in the balance sheet. On initial recognition, assets held under finance leases and related lease commitments are measured at the lower of the fair value of the leased asset and the present value of future lease payments. Subsequently, assets held under finance leases are treated like other similar assets.Lease commitments relating to assets held under finance leases are recognised in the balance sheet as payables. Subsequent to initial recognition, lease commitments are measured at amortised cost according to which the interest element of the lease pay­ment is recognised in the income statement over the lease term.Lease payments relating to operating leases are recognised in the income statement on a straight-line basis over the lease term. RevenueIncome from the sale of goods is recognised in the income statement if delivery has taken place and the risk has passed to the buyer before the end of the financial year and where the selling price can be determined reliably and is expected to be paid. Revenue is measured at fair value and is determined exclusive of VAT and other taxes collected on behalf of third parties and less discounts. Change in inventories of finished goods and work in progressChange in inventories of finished goods and work in progress comprises adjustments in inventories of finished goods and work in progress for the year, including write-downs of inventories of finished goods and work in progress to the extent that these do not exceed normal write-downs. Other operating incomeOther operating income comprises income of a secondary nature in relation to the enterprise’s activities, including rental income, salary supplements and refunds, negative goodwill and gains on the sale of intangible assets and property, plant and equipment. Costs of raw materials and consuma­blesCosts of raw materials and consumables comprise raw materials and consumables used for the year as well as any changes in inventories, including any inventory wastage.Write-downs of inventories of raw materials and consumables are also recognised under raw materials and consumables to the extent that these do not exceed normal write-downs. Cost of salesCost of sales comprises cost of sales for the year measured at cost plus any changes in inventories, including write-downs to the extent that these do not exceed normal write-downs. Other external expensesOther external expenses comprise costs re­lating to distribution, sales and advertising and administration, premises and bad debts to the extent that these do not exceed normal write-downs. Staff costsStaff costs comprise wages and salaries as well as other staff-related costs. De­pre­ci­a­tion, amor­ti­sa­tion and impair­ment lossesThe de­pre­ci­a­tion and amor­ti­sa­tion of in­tan­gi­ble as­sets and prop­er­ty, plant and equip­ment aim at systematic de­pre­ci­a­tion and amor­ti­sa­tion over the expected useful lives of the assets. Assets are de­pre­ci­ated and amor­tised according to the straight-line method based on the following ex­pected useful lives and residual values:Goodwill is amortised over 10 years. The use­ful life has been determined in considera­tion of the expected future net earnings of the enterprise or activity to which the goodwill relates.Land is not depreciated.The basis of de­pre­ci­a­tion and amor­ti­sa­tion is the cost of the asset less the expected residual value at the end of the useful life. Moreover, the basis of de­pre­ci­a­tion and amor­ti­sa­tion is reduced by any impairment losses. The useful life and residual value are determined when the asset is ready for use and reassessed annually.In­tan­gi­ble as­sets and prop­er­ty, plant and equip­ment are impaired in accordance with the accounting policies referred to in the ‘Impairment losses on fixed assets’ section. Write-downs of current assets exceed­ing normal write-downsWrite-downs of current assets exceeding normal write-downs comprise write-downs of inventories, trade receivables and other current assets that due to their nature or size or otherwise due to the affairs of the enterprise are considered to exceed normal write-downs. Income from equity investments in group en­tre­prises and as­so­ci­ates as well as participating interestsFor equity investments in equity invest­ments in as­so­ci­ates and in the parent also equity investments in sub­si­di­ar­ies that are measured using the equity method, the share of the enterprises’ profit or loss is recognised in the income statement after elimination of unrealised intercompany profits and losses and less any goodwill amortisation and im­pairment losses. For associates only the proportionate share of intercompany gains and losses is eliminated.Dividends from equity investments measured at cost are recognised as income in the financial year in which the dividend is declared.Income from equity investments in equity investments in sub­si­di­ar­ies and as­so­ci­ates as well as participating interests also comprises gains and losses on the sale of equity investments. Impairment losses on financial assetsImpairment losses on financial assets comprise impairment of investments at a lower recoverable amount and write-downs of financial current assets at a lower net realisable value. Other net financialsInterest income and interest expenses, the interest element of finance lease payments, for­eign exchange gains and losses on trans­ac­tions denominated in foreign currencies etc. are recognised in other net financials.Amortisation of capital losses and borrowing costs relating to financial liabilities is recognised on an ongoing basis as financial expenses. Tax on profit/loss for the yearThe current and deferred tax for the year is recognised in the income statement as tax on the profit/loss for the year with the portion attributable to the profit/loss for the year, and directly in equity with the portion attributable to amounts recognised directly in equity.The company is jointly taxed with Danish consolidated enterprises. The parent is the ad­min­is­tra­tion company for the joint taxation and thus settles all income tax payments with the tax authorities.In connection with the settlement of joint taxation contributions, the current Danish income tax is allocated between the jointly taxed enterprises in proportion to their tax­able incomes. This means that enter­prises with a tax loss receive joint taxation contributions from enterprises which have been able to use this loss to reduce their own taxable profit. Intangible assetsGoodwillGoodwill is measured in the balance sheet at cost less accumulated amortisation and impairment losses.Goodwill is amortised using the straight-line method based on useful lives, which are stated in the ‘De­pre­ci­a­tion, amor­ti­sa­tion and impair­ment losses’ section.Gains or losses on the disposal of intangible assets are determined as the difference between the selling price, if any, less selling costs and the carrying amount at the date of disposal. Property, plant and equipmentProperty, plant and equipment comprise land and buildings, leasehold improvements, plant and machinery as well as other fixtures and fittings, tools and equipment.Property, plant and equipment are meas­ured in the balance sheet at cost less accumulated depreciation and impairment losses. Cost comprises the purchase price and expenses resulting directly from the purchase until the asset is ready for use. Interest on loans arranged to finance production is not included in the cost.The total cost of an asset is decomposed into separate components that are depreciated separately if the useful lives of the individual components vary.Property, plant and equipment are depreci­ated using the straight-line method based on useful lives and residual values, which are stated in the ‘De­pre­ci­a­tion, amor­ti­sa­tion and impair­ment losses' section.Property, plant and equipment under construc­tionProperty, plant and equipment under con­struc­tion are measured at cost. Costs incurred on property, plant and equipment under construction are transferred to the relevant asset category when the asset is ready for use.Gains and losses on the disposal of property, plant and equipmentGains and losses on the disposal of property, plant and equipment are determined as the difference between the selling price, if any, less selling costs and the carrying amount at the date of disposal less any costs of disposal. Equity investments in group en­tre­prises and as­so­ci­ates as well as participating interestsEquity investments in group enterprisesEquity investments in subsidiaries are recognised and measured according to the equity method in the balance sheet of the parent. For equity investments in subsidiaries, the equity method is considered a measurement method, and reference is made to the 'Equity method' section for further details.Equity investments in associatesIn the balance sheet, equity investments in associates are recognised and measured according to the equity method. For equity investments in associates, the equity method is considered a measurement method, and reference is made to the 'Equity method' section for further details.Participating interestsIn the balance sheet, participating interests are measured at cost less any impairment losses. Transaction costs directly attributable to the acquisition are recognised in the cost of equity investments. Equity methodOn initial recognition, equity investments measured according to the equity method are measured at cost. Transaction costs directly attributable to the acquisition are recognised in the cost of equity investments. However, transaction costs on the acquisition of subsidiaries are recognised in the income statement in the consolidated financial statements at the date incurred. On subsequent recognition and measurement of equity investments according to the equity method, equity investments are measured at the proportionate share of the enterprises' equity value, determined according to the accounting policies of the parent, adjusted for the remaining value of goodwill and gains and losses on transactions with the enterprises in question. Equity investments, where information for recognition according to the equity method is not known, are measured at cost.Goodwill recognised under equity invest­ments is amortised according to the straight-line method based on an individual assessment of the useful life of the asset. The useful life of goodwill has been de­ter­mined at 10 years for equity invest­ments in subsidiaries. The useful life has been determined in consideration of the expected future net earnings of the enterprise to which the goodwill relates.Gains or losses on disposal of equity investmentsGains or losses on disposal of equity investments are determined as the difference between the disposal consideration and the carrying amount of net assets at the time of sale, including non-amortised goodwill, as well as the expected costs of divestment or discontinuation. Gains and losses are recognised in the income statement under income from equity investments. Impairment losses on fixed assetsThe carrying amount of fixed assets which are not measured at fair value is assessed annually for indications of impairment over and above what is reflected in de­pre­ci­a­tion and amor­ti­sa­tion.If the company's realised return on an asset or a group of assets is lower than expected, this is considered an indication of impairment.If there are indications of impairment, an impairment test is conducted of individual assets or groups of assets.If dividends are distributed on equity investments in participating interests exceeding the year earnings from the enterprise in question, this is considered an indication of impairment.The assets or groups of assets are impaired to the lower of recoverable amount and carrying amount.The higher of net selling price and value in use is used as the recoverable amount. The value in use is determined as the present value of expected net cash flows from the use of the asset or group of assets as well as expected net cash flows from the sale of the asset or group of assets after the expiry of their useful lives.Impairment losses are reversed when the reasons for the impairment no longer exist. Impairment losses on goodwill are not reversed, unless goodwill is included in the carrying amount of equity investments. InventoriesInventories are measured at cost calculated according to the FIFO-method. Inventories are written down to the lower of cost and net realisable value.The cost of raw materials and consumables as well as goods for resale is determined as purchase prices plus expenses resulting directly from the purchase.The cost of manufactured finished goods and work in progress is determined as the value of direct and indirect material and labour costs. Production overheads include indirect material and labour costs as well as maintenance and depreciation of machinery, buildings and equipment used in the production process as well as the costs of factory administration and management. Interest on loans arranged to finance production is not included in the cost.The net realisable value of inventories is determined as the selling price less costs of completion and costs necessary to make the sale and is determined taking into account marketability, obsolescence and the expected development in the selling price. ReceivablesReceivables are measured at amortised cost, which usually corresponds to the nom­inal value, less write-downs for bad debts.Write-downs for bad debts are determined based on an individual assessment of each receivable if there is no objective evidence of individual impairment of a receivable.Deposits recognised under assets comprise deposits paid to the lessor under leases entered into by the company. PrepaymentsPrepayments recognised under assets com­prise costs incurred in respect of subse­quent financial years. CashCash includes deposits in bank accounts as well as operating cash. EquityThe net revaluation of equity investments measured according to the equity method is recognized in the financial statements of the parent in the net revaluation reserve in equity according to the equity method to the extent that the carrying amount exceeds the cost.Unrealised foreign currency gains and losses from the translation of the net investment in independent foreign entities are recognised in equity under the foreign currency translation reserve. The reserve is dissolved when the independent foreign entities are disposed of.Unrealised gains and losses on financial in­stru­ments classified as and meeting the criteria for hedging of future cash flows (cash flow hedging) are recognised in equity under the cash flow hedging reserve. The reserve is mea­sured less deferred tax. The reserve is dissolved when the hedged transaction occurs, or it is no longer expected to occur. ProvisionsOther provisions comprise expected ex­penses incidental to obligations for dismandling, removing and restoring, restructuring etc. and are recog­nised when the company has a legal or con­structive obligation at the balance sheet date and it is probable that such obligation will draw on the financial resources of the company. Provisions are measured at net realisable value or fair value if the provi­sion is expected to be settled over the longer term.For assets, the acquisition, construction or use of which entails an obligation to dismandle, remove or restore the asset after use, the estimated expenses incidental thereto are recognised as provisions. The estimated expenses are included in the cost of the asset. Current and deferred taxCurrent tax payable and receivable is recognised in the balance sheet as tax computed on the basis of the taxable income for the year, adjusted for tax paid on account.Joint taxation contributions payable and receivable are recognised as income tax under receivables or payables in the balance sheet.Deferred tax liabilities and tax assets are recognised on the basis of all temporary differences between the carrying amounts and tax bases of assets and liabilities. However, deferred tax is not recognised on temporary differences relating to goodwill which is non-amortisable for tax purposes and other items where temporary differ­ences, except for acquisitions, have arisen at the date of acquisition without affecting the net profit or loss for the year or the tax­able income. In cases where the tax value can be determined according to different taxation rules, deferred tax is measured on the basis of management’s intended use of the asset or settlement of the liability.Deferred tax assets are recognised, following an assessment, at the expected realisable value through offsetting against deferred tax liabilities within the same tax jurisdiction or elimination in tax on future earnings.Deferred tax is measured on the basis of the tax rules and at the tax rates in the respective countries which, according to the legislation in force at the balance sheet date, will be applicable when the deferred tax is expected to crystallise as current tax. PayablesLong-term payables are measured at cost at the time of contracting such liabilities (raising of the loan). The payables are subsequently measured at amortised cost where capital losses and loan expenses are recognised in the income statement as a financial expense over the term of the payable on the basis of the calculated effective interest rate in force at the time of contracting the liability.Short-term financial payables are measured at amortised cost, normally corresponding to the nominal value of such payables. Other short-term payables are measured at net realisable value. Prepayments received from customersPrepayments received from customers com­prise amounts received from customers prior to the time and date of delivery of the agreed product or completion of the agreed service. The cash flow statement is prepared using the indirect method, showing cash flows from operating, investing and financing activities as well as cash and cash equivalents at the beginning and end of the year.Cash flows from operating activities com­prise the net profit or loss for the year, adjusted for non-cash operating items, income tax paid and changes in working capital.Cash flows from investing activities com­prise payments in connection with the ac­quisition and divestment of companies and financial assets as well as the purchase, development, improvement and sale of in­tangible assets and property, plant and equipment.Cash flows from financing activities com­prise changes in the parent’s share capital and as­so­ci­a­ted costs and finan­cing from and di­vidends paid to sharehold­ers as well as the ar­ran­ge­ment and repay­ment of long-term pay­ables. Cash flows from financing activities also comprise finance lease payments. Cash and cash equivalents at the beginning and end of the year comprise cash. Referring to section 86(4) of the Danish Fi­nancial Statements Act a cash flow state­ment has not been prepared for the parent as the parent is included in the consolidated cash flow statement.