36459948 2025-01-01 2025-12-31 36459948 2025-01-01 2025-12-31 1 36459948 2025-01-01 2025-12-31 1 36459948 2025-01-01 2025-12-31 2 36459948 2025-01-01 2025-12-31 3 36459948 2025-01-01 2025-12-31 4 36459948 2025-01-01 2025-12-31 5 36459948 2025-01-01 2025-12-31 6 36459948 2025-01-01 2025-12-31 7 36459948 2025-01-01 2025-12-31 1 36459948 2025-01-01 2025-12-31 2 36459948 2023-01-01 2023-12-31 36459948 2022-01-01 2022-12-31 36459948 2021-01-01 2021-12-31 36459948 2023-12-31 36459948 2022-12-31 36459948 2021-12-31 36459948 2024-01-01 2024-12-31 36459948 2025-12-31 36459948 2024-12-31 36459948 2025-01-01 c:ContributedCapitalMember 36459948 2025-01-01 c:ReserveForDevelopmentExpenditureMember 36459948 2025-01-01 c:RetainedEarningsMember 36459948 2025-01-01 c:ProposedDividendRecognisedInEquityMember 36459948 2025-01-01 2025-12-31 c:RetainedEarningsMember 36459948 2025-01-01 2025-12-31 c:ProposedDividendRecognisedInEquityMember 36459948 2025-01-01 2025-12-31 c:ReserveForDevelopmentExpenditureMember 36459948 2025-12-31 c:ContributedCapitalMember 36459948 2025-12-31 c:ReserveForDevelopmentExpenditureMember 36459948 2025-12-31 c:RetainedEarningsMember 36459948 2025-12-31 c:ProposedDividendRecognisedInEquityMember 36459948 2025-01-01 2025-12-31 c:ManagementMember 36459948 2024-01-01 2024-12-31 c:ManagementMember 36459948 2025-01-01 2025-12-31 c:BoardOfDirectorsMember 36459948 2024-01-01 2024-12-31 c:BoardOfDirectorsMember 36459948 2025-01-01 c:CompletedDevelopmentProjectsMember 36459948 2025-01-01 c:AcquiredIntangibleAssetsMember 36459948 2025-01-01 2025-12-31 c:CompletedDevelopmentProjectsMember 36459948 2025-01-01 2025-12-31 c:AcquiredIntangibleAssetsMember 36459948 2025-12-31 c:CompletedDevelopmentProjectsMember 36459948 2025-12-31 c:AcquiredIntangibleAssetsMember 36459948 2025-01-01 c:LandAndBuildingsMember 36459948 2025-01-01 c:FixturesFittingsToolsAndEquipmentMember 36459948 2025-01-01 c:LeaseholdImprovementsMember 36459948 2025-01-01 2025-12-31 c:LandAndBuildingsMember 36459948 2025-01-01 2025-12-31 c:FixturesFittingsToolsAndEquipmentMember 36459948 2025-01-01 2025-12-31 c:LeaseholdImprovementsMember 36459948 2025-12-31 c:LandAndBuildingsMember 36459948 2025-12-31 c:FixturesFittingsToolsAndEquipmentMember 36459948 2025-12-31 c:LeaseholdImprovementsMember 36459948 2025-01-01 2025-12-31 c:LandAndBuildingsMember 36459948 2025-01-01 2025-12-31 c:FixturesFittingsToolsAndEquipmentMember 36459948 2025-01-01 c:InvestmentsInGroupEnterprisesMember 36459948 2025-01-01 c:ReceivablesFromGroupEnterprisesMember 36459948 2025-01-01 c:DepositsLongtermInvestmentsAndReceivablesMember 36459948 2025-01-01 2025-12-31 c:InvestmentsInGroupEnterprisesMember 36459948 2025-01-01 2025-12-31 c:ReceivablesFromGroupEnterprisesMember 36459948 2025-01-01 2025-12-31 c:DepositsLongtermInvestmentsAndReceivablesMember 36459948 2025-12-31 c:InvestmentsInGroupEnterprisesMember 36459948 2025-12-31 c:ReceivablesFromGroupEnterprisesMember 36459948 2025-12-31 c:DepositsLongtermInvestmentsAndReceivablesMember iso4217:EUR iso4217:DKK xbrli:pure BDO Statsautoriseret Revisionspartnerselskab Dokken 8 DK-6700 Esbjerg 45719375 Årsrapport 2026-06-30 Henrik Lykke Søberg  Polytech Group ApS Industrivej 75 6740 Bramming Den uafhængige revisors erklæring 36459948 2014-12-11 Esbjerg 2025-01-01 2025-12-31 2024-01-01 2024-12-31 BDO Statsautoriseret Revisionspartnerselskab Dokken 8 6700 Esbjerg Today the Board of Directors and Executive Board have discussed and approved the Annual Report of Polytech Group ApS for the fi­nan­ci­al year 1 January  - 31 December 2025. The Annual Report is presented in accor­dance with the Da­nish Fi­nan­ci­al State­ments Act. In our opinion the Fi­nan­ci­al Sta­te­ments give a true and fair view of the Company's assets, liabilities and financial position at 31 December 2025 and of the results of the Company's operations for the fi­nan­ci­al year 1 January  - 31 December 2025. The Management Commentary includes in our opinion a fair presentation of the matters dealt with in the Commentary. We recommend the Annual Report be approved at the Annual General Meeting. Bramming 2026-04-29 Henrik Lykke Søberg Søren Friis Knudsen Chairman Jacob Olof Wiström Eskil Gundersen Koffeld Tove Feld Arne Handeland Christian Erik Bering Jelsbech Mads Kirkegaard To the Shareholder of Polytech Group ApS Konklusion We ha­ve au­di­ted the Fi­nan­ci­al Sta­te­ments of Polytech Group ApS for the fi­nan­ci­al year 1 January - 31 December 2025, which comprise income statement, Balance Sheet, sta­te­ment of chan­ges in e­qui­ty, no­tes and a summary of significant accounting policies. The Fi­nan­ci­al Sta­te­ments are pre­pared in accordance with the Da­nish Fi­nan­ci­al State­ments Act.   In our o­pi­ni­on, the Fi­nan­ci­al Sta­te­ments give a true and fair view of the assets, liabilities and financial position of the Com­pa­ny at 31 December 2025 and of the results of the Com­pa­ny's operations for the fi­nan­ci­al year 1 January - 31 December 2025 in accordance with the Da­nish Fi­nan­ci­al State­ments Act.   Basis for OpinionGrundlag for konklusion 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 Com­pa­ny in accordance with the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (including International Independence Standards) (IESBA Code), together with the ethical requirements that are relevant to our audit of the Financial Statements in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We be­lie­ve that the e­vi­den­ce we ha­ve ob­tai­ned is suf­fi­ci­ent and ap­prop­ria­te to pro­vi­de a ba­sis for our con­clu­si­on.   Grundlag for konklusion Ma­na­ge­ment's Re­spon­si­bi­li­ti­es for the Fi­nan­ci­al Sta­te­ments Management is responsible for the preparation of Fi­nan­ci­al Sta­te­ments that give a true and fair view in accordance with the Da­nish Fi­nan­ci­al State­ments Act and for such Internal control as Ma­na­ge­ment determines is necessary to enable the preparation of Fi­nan­ci­al Sta­te­ments that are free from material misstatement, whether due to fraud or error.   In preparing the Fi­nan­ci­al Sta­te­ments, Ma­na­ge­ment is responsible for assessing the Com­pa­ny's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting in preparing the Fi­nan­ci­al Sta­te­ments unless Management either intends to liquidate the Com­pa­ny or to cease operations, or has no realistic alternative but to do so.   Our objectives are to obtain reasonable assurance 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 judgment and maintain professional skepticism throughout the audit. We also:   Identify and assess the risks of material misstatement of the Fi­nan­ci­al Sta­te­ments, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.   Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Com­pa­ny's internal control.   Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Ma­na­ge­ment.   Conclude on the appropriateness of Ma­na­ge­ment’s use of the going concern basis of accounting in preparing the Fi­nan­ci­al Sta­te­ments and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Com­pa­ny's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the Fi­nan­ci­al Sta­te­ments or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Com­pa­ny to cease to continue as a going concern.   Evaluate the overall presentation, structure and contents of the Fi­nan­ci­al Sta­te­ments, including the disclosures, and whether the Fi­nan­ci­al Sta­te­ments represent the underlying transactions and events in a manner that gives a true and fair view.   Plan and perform the audit of the Fi­nan­ci­al Sta­te­ments to obtain sufficient appropriate audit evidence regarding the consolidated financial information of the entities or business units as a basis for forming an opinion on the Fi­nan­ci­al Sta­te­ments. We are responsible for the direction, supervision and review of the audit work performed. We remain solely responsible for our audit opinion.   We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.   Statement on Management Commentary Management is responsible for Ma­na­ge­ment Com­men­ta­ry.   Our opinion on the Fi­nan­ci­al Sta­te­ments does not cover Ma­na­ge­ment Com­men­ta­ry, 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 Com­men­ta­ry and, in doing so, consider whether Ma­na­ge­ment Com­men­ta­ry 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 Com­men­ta­ry provides the information required under the Danish Financial Statements Act.   Based on the work we have performed, we conclude that Ma­na­ge­ment Com­men­ta­ry is in accordance with the 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 Ma­na­ge­ment Com­men­ta­ry.   Esbjerg 2026-04-29 BDO Statsautoriseret Revisionspartnerselskab 45719375 BDO Statsautoriseret Revisionspartnerselskab 45719375 Mikael Grosbøl Kasper Ladefoged Den uafhængige revisors erklæring State Authorised Public Accountant State Authorised Public Accountant mne33707 mne49042 5329000 1896000 6390000 31000 -4125000 474000 -2350000 -2038000 -372000 -9665000 -5157000 17238000 121172000 131989000 145215000 82989000 83649000 96919000 -93000 -184000 -132000 -753000 -571000 61.2 61.9 68.5 63.4 66.7 12.5 -0.8 -11.6 -5.7 18.7 The comparative figures have not been adjusted for the change of accounting policy for the years 2021-2023 regarding the changes mentioned in the Accounting Policies.   Financial highlights are defined and calculated in accordance with the current version of "Recommendations & Ratios" issued by the CFA Society Denmark.   Equity ratio:  Equity, at year-end x 100 Total assets, at year-end Return on equity: Profit/loss after tax x 100        Average equity Principal activities Polytech Group's develops and produces a wide portfolio of products and solutions supporting the global wind industry, onshore and offshore. Products are primarily sold to wind turbine manufacturers (OEMs), asset owners developers, distributors, and independent service providers. Polytech Group offers unique value propositions within business line areas: Lightning Protection, Leading Edge Protection, Blade Monitoring, Transport Track & Protect, Blade Performance Upgrades, Test & Validation Services, and future development areas such as subsea solutions.   Development in activities and financial and economic position The income statement for 2025 shows a profit of TEUR 7,742 and the balance sheet shows an equity at  TEUR 61,227. The development and result exceed the management's expectations.   Profit/loss for the year compared to the expected development The income from investments in subsidiaries increased significantly from 2024 to 2025 which is primarily caused by a higher revenue, especially in the subsidiary in China.   Significant events after the end of the financial year No events have occurred after the end of the financial year of material importance for the Company's financial position.   Future expectations The company expects the development of the market measured on number of turbines to be flat in 2026. The reason being the market grows in terms of MW, but the MW rating and size of each turbine also grows. This expectation is reflected in the financial results where revenue and profit are expected to be at the same level as in 2025.   3885000 3900000 5085000 4457000 2225000 2220000 0 77000 -3425000 -2854000 12508000 3919000 226000 258000 2905000 3232000 6404000 -1909000 -1338000 -1339000 7742000 -570000 688000 1282000 9869000 10550000 10557000 11832000 4876000 5581000 172000 277000 729000 851000 5777000 6709000 68950000 72427000 1136000 1128000 1108000 1171000 71194000 74726000 87528000 93267000 6893000 3606000 0 98000 1200000 0 3413000 2605000 723000 524000 12229000 6833000 295000 867000 12524000 7700000 100052000 100967000 14000 14000 538000 1000000 60675000 53453000 0 8000000 61227000 62467000 1432000 0 1432000 0 15172000 17000000 1578000 1779000 16750000 18779000 3520000 0 227000 223000 386000 559000 15052000 17362000 0 209000 20643000 19721000 37393000 38500000 100052000 100967000 EUR '000Sha­re ca­pi­talReserve for development costsRetained earningsProposed dividendTotal Equity at 1 January 2025141,00053,4538,00062,467 Proposed profit allocation, see note 5 7,7427,742 Transactions with ownersDividend paid -8,000-8,000 Other legal bindingsForeign exchange adjustments -987 -987Other adjustments to equity value 5 5Revaluations in the year -462462 0 Equity at 31 December 20251453860,675061,227 14000 1000000 53453000 8000000 7742000 -8000000 -987000 5000 -462000 462000 14000 538000 60675000 0 1 | Staff costs Average number of full-time employees3433 Wages and salaries 4,6334,058 Pensions 413365 Social security costs 3934 5,0854,457 Remuneration of Management and Board of Directors 770 Remuneration of Executive Board 069 Remuneration of Board of Directors 010 7779 Special incentitve programmes In 2021, warrants were granted free of charge in Euros HoldCo AB (a parent company) to members of Polytech Group ApS's Executive Board and Board of directors as part of an incentive programme.  A total of 5,178 A-warrants were issued, which each give a right to subscribe (without any pre-emption rights for other shareholders) a share in Euros HoldCo AB of a quota value of SEK 0.025 at a subscription of DKK 1,545.  A total of 5,178 B-warrants were issued, which each give a right to subscribe (without any pre-emption rights for other shareholders) a share in Euros HoldCo AB of a quota value of SEK 0.025 at a subscription price of DKK 1,545. B-warrants can only be exercised if the fair market price of a share of a quota value of SEK 0.025 equals or exceeds DKK 3,091.  A total of 5,178 C-warrants were issued, which each give a right to subscribe (without any pre-emption rights for other shareholders) a share in Euros HoldCo AB of a quota value of SEK 0.025 at a subscription price of DKK 1,545. C-warrants can only be exercised if the fair market price of a share in the Company of a quota value of SEK 0.025 equals or exceeds DKK 4,636.  In 2024, warrants were again granted free of charge in Euros HoldCo AB (a parent company) to members of Polytech Group ApS's Executive Board and Board of directors as part of an incentive programme.  One warrant gives the right to subscribe (without any pre-emption rights for other shareholders) a share in Euros HoldCo AB of a quota value of SEK 0.025 at the below subscription price: D-warrants: EUR 79.43435 E-warrants: EUR 158.86871 F-warrants: EUR 238.30306   34 33 4633000 4058000 413000 365000 39000 34000 5085000 4457000 77000 0 0 69000 0 10000 2 | Other financial income Interest income from group enterprises 209153 Other interest income 17105 226258 209000 153000 17000 105000 226000 258000 3 | Other financial expenses Interest expenses to group enterprises 568774 Other interest expenses 2,3372,458 2,9053,232 568000 774000 2337000 2458000 2905000 3232000 -2869000 -2338000 0 -59000 1531000 1058000 5 | Proposed distribution of profit Proposed dividend for the year 08,000 Extraordinary dividend 020,000 Retained earnings 7,742-28,570 7,742-570 0 8000000 0 20000000 7742000 -28570000 7742000 -570000 6 | Intangible assets EUR '000Completed development projectsAcquired intangible assets and licences Cost at 1 January 2025 2,91712,679 Exchange adjustment at closing rate -4-15 Cost at 31 December 2025 2,91312,664   Amortisation at 1 January 2025 1,6352,129 Exchange adjustment at closing rate -1-3 Amortisation for the year 591669 Amortisation at 31 December 2025 2,2252,795 Carrying amount at 31 December 20256889,869 2917000 12679000 -4000 -15000 2913000 12664000 1635000 2129000 -1000 -3000 591000 669000 2225000 2795000 688000 9869000 7 | Property, plant and equipment EUR '000Land and buildingsOther plant, fixtures and equipmentLeasehold improvements Cost at 1 January 2025 6,3174181,177 Exchange adjustment at closing rate -70-2 Additions 41520 Disposals 0-860 Cost at 31 December 2025 6,3513841,175   Depreciation and impairment losses at 1 January 2025 736141326 Exchange adjustment -100 Reversal of depreciation of assets disposed of 0-330 Depreciation for the year 740104120 Depreciation and impairment losses at 31 December 2025 1,475212446 Carrying amount at 31 December 20254,876172729 Right-of-use assets 4,87689 6317000 418000 1177000 -7000 0 -2000 41000 52000 0 0 86000 0 6351000 384000 1175000 736000 141000 326000 -1000 0 0 0 33000 0 740000 104000 120000 1475000 212000 446000 4876000 172000 729000 4876000 89000 8 | Financial non-current assets EUR '000Investments in subsidiariesReceivables from group companiesRent deposit and other receivables Cost at 1 January 2025 80,3671,1281,171 Exchange adjustment at closing rate 08-1 Additions 0015 Disposals 00-77 Cost at 31 December 2025 80,3671,1361,108   Revaluation at 1 January 2025 -7,94000 Exchange adjustment -98500 Dividend -15,00000 Profit/loss for the year 12,50800 Revaluation at 31 December 2025 -11,41700 Carrying amount at 31 December 202568,9501,1361,108 Investments in subsidiaries  Name and domicilOwnership Polytech A/S, Esbjerg  100 % Polytech Wind Power Technology (Wuxi) Co., Ltd., China 100 % Polytech Science and Technology Testing (Sheyang) Co., Ltd., China 100 % Polytech Wind Power Technology Germany GmbH, Germany 100 % Polytech Wind Power Technology India Private Limited, India 100 % Polytech Manufacturing Mexico, S. de. R.L. de S.V., Mexico  100 % Polytech Wind Power Technology Mexico S. de R.L. de S.V., Mexico 100 % Polytech Wind Power Technology Inc., USA 100 % 80367000 1128000 1171000 0 8000 -1000 0 0 15000 0 0 77000 80367000 1136000 1108000 -7940000 0 0 -985000 0 0 -15000000 0 0 12508000 0 0 -11417000 0 0 68950000 1136000 1108000 9 | Prepayments Prepayments consist of prepaid insurance and software lincence fee etc. 10 | Provision for deferred tax The provision for deferred tax is related to differences between the carrying amount and tax value of receivables, intangible and tangible fixed assets, including recognised finance lease contracts. 20252024 EUR '000EUR '000 Deferred tax, beginning of year -98-1,157 Deferred tax of the year, income statement 1,5311,059 Foreign exchange adjustments -10 Provision for deferred tax 31 December 20251,432-98 11 | Long-term liabilities 31/12 2025RepaymentDebt outstanding31/12 2024EUR '000total liabilitiesnext yearafter 5 yearstotal liabilities Bank debt 18,6923,520017,000Lease liabilities 1,8052276942,002 20,4973,74769419,002 694 Joint liabilitiesThe Danish companies of the group is jointly and severally liable for tax on the group’s jointly taxed income and for certain possible withholding taxes such as dividend tax and royalty tax, and for the joint registration of VAT. Tax payable of the group’s jointly taxed income amounts to EUR (‘000) 0 at the Balance Sheet date. 13 | Charges and securities The group has secured a commitment with Nykredit Bank through a registered company charge of TEUR 24,500 nominal. The registered company charge includes licences, other plant, fixtures and equipment and trade receivables from group enterprises.  The carrying amount of pledged assets amounts to TEUR 17,574. Furthermore bank loans are secured by pledge of shares in Polytech A/S. The carrying amount of the investment is TEUR 25,540. 14 | Related parties The Company's related parties include: Controlling interest Euros BidCo AB, Stockholm, Sweden (Parent company of Polytech Group ApS) Euros HoldCo AB, Stockholm, Sweden (Parent company of Euros BidCo AB) Transactions with related parties Only related party transactions not conducted on an arm’s length basis are disclosed in the annual report. No such transactions have been conducted in the financial year. 15 | Consolidated Financial Statements Name and registered office of the Parent preparing consolidated financial statements for the largest group: Euros HoldCo AB, Stockholm, Sweden. Name and registered office of the Parent preparing consolidated financial statements for the smallest group: Euros HoldCo AB, Stockholm, Sweden. Copies of the consolidated financial statements of Euros HoldCo AB may be ordered at the following adress: www.cvr.dk in addition to the financial statement of Polytech Group ApS, reg. no. 36459948. The Annual Report of Polytech Group ApS for 2025 has been presented in accor­dance with the pro­vi­sions of the Da­nish me­di­um-si­ze Fi­nan­ci­al State­ments Act for en­ter­pri­ses in re­por­ting class C.   Regnskabsklasse C, mellemstor virksomhed1trueThe Annual Report is prepared consistently with the accounting principles applied last year. The Annual Report is presented in Euros at a EUR/DKK rate of 7.47 (2024: 7.45)   Regnskabsklasse C, mellemstor virksomhed true Consolidated Financial Statements have not been prepared because the group fulfils the exemption provisions of section 112 of the Danish Financial Statements Act on sub-groups. The Company is included in the consolidated Financial Statements of Euros HoldCo AB, Stockholm, Sweden.   Net revenue Revenue is recognized in accordance with IFRS 15. Net revenue from sale of goods and services is recognized in the income statement when control over the individual identifiable delivery obligation in the sales agreement transfers to the customer, which, according to the terms of sale, occurs at the time of delivery. Although a sales agreement for the sale of goods often contains multiple delivery obligations, they are treated as a single delivery obligation, as delivery typically occurs at the same time.  The portion of the total consideration that is variable, such as discounts, bonus payments, etc., is first recognized in revenue when it is reasonably certain that there will be no reversal in subsequent periods, for example, due to failure to meet targets, etc.    Other operating income Other operating income includes items of a secondary nature in relation to the enterprises' principal activities, including profit from sale of intangible and tangible assets, operating loss and conflict compensations, as well as salary refunds. Compensations are recognised when the income is estimated to be realisable.    Other external expenses Other external expenses include expenses relating to the Entity's ordinary activities, including expenses for premises, stationery and office supplies, marketing costs, etc. This item also includes writedowns of receivables in current assets.   Payments related to operating lease expenses and other lease agreements are recognised in the Income Statement over the contract period. The Company’s total liability concerning operating and other lease agreements are stated under contingencies, etc.    Staff costs Staff costs comprise wages and salaries, including holiday pay and pensions, and other costs of social security etc., for the Com­pa­ny's employees.   Other operating expenses Other operating expenses include items of a secondary nature in relation to the Group’s and the Company’s activities. Losses from sale of intangible and tangible fixed assets are also included.   Income from investments in subsidiaries The Income Statement of the Parent Company recognises the proportional share of the results of subsidiaries determined according to the Parent Company’s accounting policies and after full elimination of intercompany profits/losses and deduction of amortisation of goodwill. resulting from purchase price allocation at the date of acquisition, is recognised in the Parent Company’s Income Statement.   Financial income and expenses Financial income and expenses include interest income and expenses, financial expenses of finance leases, realised and unrealised gains and losses arising from securities, debt and transactions in foreign currencies, as well as charges and allowances under the tax-on-account scheme, etc. Financial income and expenses are recognised by the amounts that relate to the financial year. Interest income and expenses are calculated on amortised cost prices.   Interest and other costs of borrowing for financing of manufacture of current assets and fixed assets are not recognised in the cost price.   Tax The tax for the year, which consists of the current tax for the year and changes in deferred tax, is recognised in the Income Statement by the share that may be attributed to the profit for the year, and is recognised directly in equity by the share that may be attributed to entries directly to equity.   Intangible fixed assets Intellectual property rights etc comprise development projects completed and in progress with related intellectual property rights and acquired intellectual property rights such as patents, licenses and software. Development projects on clearly defined and identifiable products and processes, for which the technical rate of utilisation, adequate resources and a potential future market or development opportunity in the enterprise can be established, and where the intention is to manufacture, market or apply the product or process in question, are recognised as intangible assets. Other development costs are recognised as costs in the income statement as incurred. When recognising development projects as intangible assets, an amount equalling the costs incurred less deferred tax is taken to equity in the reserve for development costs that is reduced as the development projects are amortised and written down.  The cost of development projects comprises costs such as salaries and amortisation that are directly and indirectly attributable to the development projects. Indirect production costs in the form of indirectly attributable staff costs and amortisation of intangible assets and depreciation of property, plant and equipment used in the development process are recognised in cost based on time spent on each project. Completed development projects are amortised on a straight-line basis using their estimated useful lives which are determined based on a specific assessment of each development project. If the useful life cannot be estimated reliably, it is fixed at 10 years. For development projects protected by intellectual property rights, the maximum period of amortisation is the remaining duration of the relevant rights. The amortisation period used is 5 years.  Intellectual property rights acquired are measured at cost less accumulated amortisation. Patents are amortised on a straight-line basis over their remaining duration, and licences are amortised over the term of the agreement. The amortisation periods used are 3-20 years. Software is amortised over 3-4 years. Intellectual property rights etc are written down to the lower of recoverable amount and carrying amount.   Property, plant and equipment Land and buildings, other plant, fixtures and equipment are measured at cost less accumulated depreciation and impairment losses.   The depreciation base is cost less estimated residual value after end of useful life.   The cost includes the acquisition price and costs incurred directly in connection with the acquisition until the time when the asset is ready to be used.    Straight-line depreciation is provided on the basis of an assessment of the expected useful lives of the assets and their residual value:   Useful lifeResidual valueLand and buildings 5-10 years0 %Other plant, fixtures and equipment 3-10 years0 %Leasehold improvements 5-10 years0 % Profit or loss on sale of property, plant and equipment is stated as the difference between the sales price less selling costs and the carrying amount at the date of sale. Profit or loss is recognised in the Income Statement as other operating income or other operating expenses.   Right-of-use assets Right-of-use assets and lease liabilities are recognized in the balance sheet when the group, under an entered lease agreement concerning a specific identifiable asset, is provided with the lease asset, and when the group obtains the right to substantially all the economic benefits from the use of the identified asset and the right to direct the use of the identified asset.  Lease liabilities are initially measured at the present value of future lease payments discounted using an alternative borrowing rate.  The lease liability is measured at amortized cost using the effective interest method. The lease liability is remeasured when there are changes in the underlying contractual cash flows from changes in an index or a rate, if there are changes in the group’s estimate of a residual value guarantee, or if the group changes its assessment of whether a purchase, extension, or termination option is reasonably certain to be exercised.  The lease asset is initially measured at cost, which corresponds to the value of the lease liability adjusted for prepaid lease payments, plus directly related costs and estimated costs for dismantling, restoration, or similar, and less any received discounts or other types of incentive payments from the lessor.  Subsequently, the asset is measured at cost less accumulated depreciation and impairments. The lease asset is depreciated over the shorter of the lease term and the useful life of the lease asset. Depreciation is recognized linearly in the income statement.  The lease asset is adjusted for changes in the lease liability due to changes in the terms of the lease agreement or changes in the contractual cash flows in line with changes in an index or a rate. Lease agreements with a term of less than 12 months or of low value are not recognized in the balance sheet   Financial non-current assets Investments in subsidiaries are measured in the Parent Company Balance Sheet under the equity method, which is regarded as a method of measuring/consolidation. Investments in subsidiaries are measured in the Balance Sheet at the proportional share of the enterprises’ carrying Equity value, calculated in accordance with the Parent Company’s accounting policies with deduction or addition of unrealised intercompany profits or losses, and with addition of remaining additional values and goodwill calculated according to the acquisition method. The combination method is applied when acquiring enterprises within the Group, where the combination is regarded as completed at the date of acquisition, and by using the carrying amounts of the assets and liabilities acquired. The difference between the acquisition cost and carrying amounts is recognised directly in equity. Received dividend is deducted in the carrying amount of the equity investment. Net revaluation of investments in subsidiaries is transferred under equity to reserve for net revaluation under the equity value method to the extent that the carrying amount exceeds the acquisition value.   Profit and loss at disposal of investments in subsidiaries are determined as the difference between the net selling price and the carrying amount of the disposed investment at the time of sale, including nondepreciated excess values and goodwill. Profit and loss are recognised in the Income Statement under income from investments. Deposits include rental deposits which are recognised and measured at cost. Deposits are not depreciated. Other receivables are measured at amortised cost which usually corresponds to the nominal amount. The amount is written down to meet expected losses.   Received dividend is deducted in the carrying amount of the equity investment.   Investments in sub­si­dia­ri­es with negative equity value are measured at DKK 0. Any receivables with these companies are written off, to the extent that the receivable is uncollectible from a specifically assessed indication of impairment. To the extent that the Parent Company has a legal or actual obligation to cover a negative balance which exceeds the receivable, the remainder is recognised under provisions for liabilities.   Impairment of fixed assets The carrying amount of in­tan­gib­le fi­xed and pro­per­ty, plant and equip­ment to­get­her with fi­xed as­sets, which are not mea­su­red at fair va­lue,, are assessed annually for indications of impairment other than that reflected by amortisation and depreciation.   In the event of impairment indications, an impairment test is made for each asset or group of assets, respectively. If the recoverable amount is lower than the carrying amount, the asset is written down to the recoverable amount.   The recoverable amount is calculated at the higher of the capital value and the sales value less expected costs of a sale. The capital value is determined as the Company's share in the current value of the net cash flows which the subsidiary is expected to generate through its activities and from sale of assets after the end of their useful lives. A discount rate is used which reflects the risk-free market rate and the owners' minimum return on interest requirements for similar assets. The growth rate in the terminal period is determined in accordance with the standards within the industry.   Receivables Receivables are measured at amortised cost which usually corresponds to nominal value. The value is written down to meet expected losses.   Write-off is performed to provide for losses when an objective indication has been assessed to have incurred that a receivable or a portfolio of receivables are impaired. If there is an objective indication that an individual receivable is impaired, the write-off is performed at individual level.   Receivables for which there are no objective indication of impairment at individual level are assessed at portfolio level for objective indication of impairment. The portfolios are primarily based on the debtors’ registered office and credit rating in accordance with the Company’s policy for credit risk management. The objective indicators, which are applied for portfolios, are determined based on the historical loss experiences.   Write-off is determined as the difference between the carrying amount of receivables and the present value of the expected cash flows, including realisable value of any received collaterals. The effective interest rate is used as discount rate for the single receivable or portfolio.   Accruals, assets Accruals recognised as assets include costs incur­red relating to the subsequent financial year.   Equity Reserve for development costsThe reserve includes recognised post-tax development costs, which are capitalised as intangible assets. The reserve is reduced concurrently with depreciation of the intangible asset and is dissolved if the asset is discontinued from the operation of the company. Reduction of the reserve takes place via transferring directly to the distributable reserves of the equity.   Fair value reserve for foreign currency translation The reserve includes a share of foreign currency translation adjustments arisen at translation of the financial statements of entities with another functional currency than Danish Kroner as well as foreign currency translation adjustments regarding assets and liabilities which constitute a share of the company’s net investments in such entities. The reserve is dissolved by disposal of foreign entities. In the parent company where investments in subsidiaries, associates and equity investments are subject to the requirement of limitation of the reserve according to equity method, foreign currency translation adjustments will instead be included in the reserve according to the equity method.   Tax payable and deferred tax Current tax liabilities and receivable current tax are recognised in the Balance Sheet as the calculated tax on the taxable income for the year, ad­justed for tax on the taxable income for previous years and taxes paid on account.   The Company is subject to joint taxation with Danish Group companies. The current corporation tax is distributed among the joint taxable companies in proportion to their taxable income and with full allocation and refund related to tax losses. The joint taxable companies are included in the tax-on-account scheme. Joint taxation contributions receivable and payable are recognised in the Balance Sheet under current assets and liabilities, respectively.   Deferred tax is measured on the temporary dif­ferences between the carrying amount and the tax value of assets and liabilities.   Deferred tax assets, including the tax value of tax loss carryforwards, are measured at the amount at which the asset is expected to be used within a reasonable number of years, either by setoff against tax on future earnings or by setoff 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 under the legislation in force on the Balance Sheet date will be ap­pli­cable when the deferred tax is expected to crystallise as current tax. Any changes in the deferred tax resulting from changes in tax rates, are recognised in the income statement, except from items recognised directly in equity.   Liabilities Financial liabilities are recognised at the time of borrowing by the amount of proceeds received less transaction costs. In subsequent periods, the financial liabilities are measured at amortised cost equal to the capitalised value when using the effective interest, the difference between the proceeds and the nominal value being recog­nised in the Income Statement over the loan period.   The amortised cost of current liabilities corresponds usually to the nominal value.   Foreign currency translation Transactions in foreign currencies are translated at the rate of exchange on the transaction date. Exchange differences arising between the rate on the transaction date and the rate on the payment date are recognised in the Income Statement as a financial income or expense. Receivables, payables and other monetary items in foreign currencies that are not settled on the Balance Sheet date are translated at the exchange rate on the Balance Sheet date. The difference between the exchange rate on the Balance Sheet date and the exchange rate at the date when the receivables or payables come into existence recognised in the Income Statement as financial income or expenses. Fixed assets acquired in foreign currencies are translated at the rate of exchange on the transaction date.   The Income Statements of foreign subsidiaries and associates fulfilling the concitions for being independent entities are translated at an average exchange rate for the month and the Balance Sheet items are translated at the rate of exchange on the Balance Sheet date. Exchange differences arising from translation of the equity of foreign subsidiaries at the beginning of the year to the rates of the Balance Sheet date and from translation of Income Statements from average rate to the rates of the Balance Sheet date are recognised directly in the equity.   Exchange rate differences recognised in Equity are accumulated in a fair value reserve for currency translation of foreign entities and are transferred to the Income Statement when object of the currency translation is realised or ends. An exception is exchange rate differences arising from translation of Equity interests, which are recognised at Equity value, where the whole value adjustment, including exchange rate differences, are included in the reserve for net valuation according to the Equity value method.   Cash Flow Statement   With reference to Section 86(4) of the Danish Financial Statements Act, the Company has not prepared a cash flow statement. A cash flow statement has been prepared for the Group.   With reference to Section 86(4) of the Danish Financial Statements Act, the Company has not prepared a cash flow statement. A cash flow statement has been prepared for the Group.