BDO Statsautoriseret revisionsaktieselskabRoms Hule 4, 1. salDK-7100 Vejle20222670Årsrapport2025-06-30Henrik Dalsgaard HansenAMMERAAL BELTECH MODULAR A/SHjulmagervej 217100 VejleRevisionspåtegning255394192000-03-29Vejle2024-01-012024-12-312023-01-012023-12-31KPMG Statsautoriseret RevisionspartnerselskabVestergade 27,2. sal7000FredericiaVejle2025-06-30Henrik Dalsgaard HansenGerrit Jan de JongManaging DirectorManaging DirectorMichiel Christiaan BoksChairmanKarsten Vangsgaard JensenStaff RepresentativeJesper Gartner BangStaff RepresentativeAnders Stounberg ØstergaardBoard MemberMathieu Marie Gabriel RiometBoard MemberKonklusionGrundlag for konklusionFredericia2025-06-30KPMG Statsautoriseret Revisionspartnerselskab25578198Michael Lund SiegumfeldtRevisionspåtegningState Authorised Public Accountantmne286625897680005874110004567960002030530002909980002274480007271100015673600010991500040490007973000-22390006356000012725700083463000418032000539144000478585000245253000366535000339278000865760003491700056448000259880001534100014715816918118236.637.634.449.549.812.515.512.326.724.120.521.920.836.128.1516736000569583000-279302000-28169200041227000089681000737060001889800002141850009501700097487000294340002849600011800011600064411000880860001442800071970003074000184780007576500076805000191670001640100056598000604040005985000798000051680008427000198500026440001313800019051000160500018690001178020001196670006990002620000023295000267040001434010001485020005392000455300053920004553000161931000172106000251140006084700070343000648920009545700012573900017256000100190001856290001421560003084000223920005039000765000211008000175332000486500027990003113300003038700004732610004759760003000000300000016925300018765500075000000115000000247253000305655000550500015984000107060003453000162110001943700002104000021040001980000228200031153000380050007520900058680000241300001576600054079000150660002097970001487800002097970001508840004732610004759760003000000187655000115000000-1840200075000000-1150000003000000169253000750000001471588180400083682000113270001243100018860001374000950170009748700015600035290001427200036680001442800071970000162800030740001685000030740001847800028470000184220001176000-1328000-10479000-69300075000000115000000-18402000-5459600056598000604040001795400051302000594700008790000179540005218100059470009974000428760003302000199500041370006600001196900047013000396200059850005168000198500017300000416630000155820000200240005850006849700000684970000017300000436654000161670001543100029696300015320000264000218890001480001569500031885200015468000160500011780200069900049180001391000267040000-2148800001807900013910002329500013910000139100000232950004553000839000539200053920000Regnskabsklasse C, stor virksomhedtrueToday the Supervisory Board and Executive Board have discussed and approved the Annual Report of AMMERAAL BELTECH MODULAR A/S for the financial year 1 January - 31 December 2024. 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 2024 and of the results of the Company's operations for the financial year 1 January - 31 December 2024. 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. To the Shareholder of AMMERAAL BELTECH MODULAR A/S We have audited the financial statements of Ammeraal Beltech Modular A/S for the financial year 1 January – 31 December 2024 comprising income statement, balance sheet, statement of changes in equity and notes, including accounting policies. The financial statements are prepared in accordance with the Danish Financial Statements Act. In our opinion, the financial statements give a true and fair view of the Company's assets, liabilities and financial position at 31 December 2024 and of the results of the Company's operations for the financial year 1 January – 31 December 2024 in accordance with the Danish Financial Statements Act. Basis for Opinion Grundlag 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 (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's responsibility 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, that Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, Management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting in preparing the financial statements unless Management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Our objectives are to obtain reasonable assurance as to whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs and the additional requirements in Denmark will always detect a material misstatement when it exists. Misstatements may 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 financial statement users made on the basis of these financial statements. As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional judgement and maintain professional scepticism throughout the audit. We also identify and assess the risks of material misstatement of the company 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. 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's review Management is responsible for the Management's review. Our opinion on the financial statements does not cover the Management's review, and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the Management's review and, in doing so, consider whether the Management's review is materially inconsistent with the financial statements or our knowledge obtained during the audit, or otherwise appears to be materially misstated. Moreover, it is our responsibility to consider whether the Management's review provides the information required under the Danish Financial Statements Act. Based on the work we have performed, we conclude that the Management's review is in accordance with the financial statements and has been prepared in accordance with the requirements of the Danish Financial Statement Act. We did not identify any material misstatement of the Management's review. Financial highlights for 2022 have been restated due to material errors in revenue cut-off. The financial highlights for 2021 and 2020 have not been restated as the required dataset is not present. The ratios stated in the list of key figures and ratios have been calculated as follows: Gross margin: Gross profit/loss x 100 Net revenue Operating margin: Operating profit/loss of main activities x 100 Net revenue Return on equity: Profit/loss after tax x 100 Average equity Principal activities The Company's activity consists of the development, production and sale of modular belts and chains made of plastic and steel for the use on internal conveyors. Primary market segments are the food processing, packaging and automotive industries. Business Model AMMERAAL BELTECH MODULAR A/S is a part of the AMMEGA group, and is responsible for operational management, project management and it owns the manufacturing know-how and technical expertise required in the execution of the manufacturing process. Furthermore, it holds the responsibility and knowhow related to R&D for both new products as well as new technologies. All Finished Goods (belts, chains, and sprockets) are sold to many different industries, where it becomes an integral part of the manufacturing process and equipment. The products are being sold through AMMEGA’s global sales organization, who is responsible for local sales and marketing functions. Furthermore, the sales team is involved in the local business development, designing and technical specifications of the product offering in order to meet the client’s particular needs, installation, as well as after sales services. The Finished Goods are either delivered from AMMERAAL BELTECH MODULAR A/S or via an assembly site in Poland directly to the end customer, which can be either an End User (a factory), an OEM (a machine builder) or a Distributor. Development in activities and financial position Continued tension on the market and the financial market volatility impacted the 2024 results. The impact was seen in all major product series and across all major markets. Due to actions taken during 2024 the impact was not significant compared to previous years. Furthermore, Ammega group was hit by a cyberattack that influenced the topline, primarily in Q1 and Q2, and recovering in Q3 and Q4 Revenue decreased 9% to MDKK 517 vs MDKK 570 in 2023. The Company’s income statement for 2024 shows a gross profit of MDKK 189 vs MDKK 214 last year. The gross profit is mainly impacted by a decrease in sales related to the Cyberattack. Even with a tight cost control program, and reduction in indirect labor, it has not been possible to obtain the expected result. Further programs to reduce indirect labor, direct labor ration has been activated late 2024, and will have a positive impact in 2025. From an overall perspective, the revenue was lower compared to the outlook for 2024 which was stated in the annual report for 2023. The expectations for 2024 were hard to determine because of the overall market conditions and the impacts from the cyberattack. Fortunately, we were able to impact EBITDA positive with a tight cost control program. In December 2024, the Company had a Sale & Lease back transaction on the building. A gain of MDKK 88 was realized. Of this amount, MDKK 41 is recognized in the income statement as other operating income. The remaining MDKK 47 is recognized as deferred income and will be utilized over the next 15 years. The result of the business operations in 2024 is considered unsatisfactory in a very challenging year. The result after taxes was MDKK 56,6 vs MDKK 60 in 2023. 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. Financial instruments The Company’s risk exposure Particular risks No special risks apart from generally occurring risks in the industry. Operating risks The key business risk of AMMERAAL BELTECH MODULAR A/S is related to the potential inability to be competitive in our main markets. Our continuous development and launch of new products reduce this risk. Financial risks The Company invoices in Danish kroner as well as several foreign currencies, primarily Euro, US Dollars and Great British Pounds. Business and payments from Russian customers completely stopped due to restrictions related to the war in Ukraine. Purchases are made primarily in Danish kroner, Euro and Polish zloty. Outlook Revenue for 2025 is expected to be 7% higher compared to 2024. EBITA is expected to increase with the same percentage. Statement of corporate social responsibility The CSR is based on the Danish Financial Statements Act §99a. AMMERAAL BELTECH MODULAR A/S CSR policies and procedures are reflected throughout its overall business model and strategy. AMMERAAL BELTECH MODULAR A/S has conducted a risk evaluation within CSR-related areas and have not found any material risks. AMMERAAL BELTECH MODULAR A/S has not found any breaches of its CSR policies during 2024. Environment and Climate Policies AMMERAAL BELTECH MODULAR A/S has no policies related to environment and climate, which we have chosen to combine, however it follows the AMMEGA Responsible Sourcing Policy that describes how the AMMEGA Group shall work with its suppliers and ask them to meet the minimum health & safety, human rights, ethical and environmental standards. Further the AMMEGA group and thereby AMMERAAL BELTECH MODULAR A/S supports the UNGC universal principles on human rights, labor, environment and anti-corruption. By this AMMEGA strives to take its social responsibility seriously and strives to do business in a way that minimizes the negative impacts and maximizes the positive value for people, the environment and society. The AMMEGA Group and thereby also AMMERAAL BELTECH MODULAR A/S requests its suppliers to maintain effective policies, processes and procedures to manage their environmental impact and to operate their business in a sustainable manner, consistent with the UNGC’s Sustainable Development Goals. Further AMMEGA Group and thereby also AMMERAAL BELTECH MODULAR A/S is also committed to making its products more sustainable by developing cleaner processes and minimize the impact on the environment. Actions & Results AMMERAAL BELTECH MODULAR A/S continued to work on the Circle Links project, which is about recycling plastic scrap to new belts. Our recycling partner uses patented technology for plastic resins sorting. Belts in recycled material have been tested over 15 months by a customer, and the test showed that the wear resistance is at least as good as virgin material. The takeback model was officially launched in the first half of 2025, primarily for products for the corrugated industry. Regrinding of belts returned from customers was started second half of 2024 and will continue in 2025. KPIs & Due Diligence AMMERAAL BELTECH MODULAR A/S reports a variety of information relating to the environment to its head quarter and several are related to CSR. Amongst others AMMERAAL BELTECH MODULAR A/S is on a continuous basis measuring the: • Energy consumption: Electricity consumption in kWh and Gas consumption in m3 • Water consumption: Water consumption in m3 • Fuel consumption for both company cars and driving in non-company cars but for company related matters. AMMERAAL BELTECH MODULAR A/S has no formalized due diligence process related to the Environment and Climate. Future efforts We will continue with the Circle Link project in 2025. Social and employee staff matters Policies AMMEGA’s most important asset is its workforce and AMMERAAL BELTECH MODULAR A/S is aiming at being known as a company taking care of its employees and actively contributing to job satisfaction, well-being, development, and safety. Health and safety are an important part of the overall business operations. AMMERAAL BELTECH MODULAR A/S has a health & safety policy that outlines that the focus is on safety in the execution of the job and on the employee’s well-being, commitment and personal development via on-the-job training and education. Besides this AMMERAAL BELTECH MODULAR A/S also follows the global AMMEGA Health & safety policy. AMMERAAL BELTECH MODULAR A/S has an absenteeism policy that calls out that the aim is to reduce absenteeism via conversations with the employees. This is in place to avoid long-term illness and support the employees to avoid long-term illness situations. Besides this AMMERAAL BELTECH MODULAR A/S also has a stress policy which outlines AMMERAAL BELTECH MODULAR A/S ’s active role in supporting the employees to avoid stress, but also ensuring that the employee returns safely to the workplace after a stress incident. is the belief of AMMERAAL BELTECH MODULAR A/S that the current efforts are satisfactory. The company will therefore continue to conduct performance appraisals every year. Besides performance, also job satisfaction, education and future opportunities will continuously be evaluated so no further initiatives have been planned for 2025. Actions & Results The Health, Safety and Environment Specialist is responsible for monitoring compliance with local laws and to support and stimulate the awareness of Health and Safety in AMMERAAL BELTECH MODULAR A/S. Each and every health & safety incident is evaluated, communicated in the broader group, and the implementation of related corrective measures is being pursued. In 2024 886 safety observations, 1 injuries without lost time and 1 lost time injuries were reported. The management team participates in weekly Gemba safety walks, with the purpose of identifying potential risks and stimulating safety awareness throughout the entire organization. Once a year, in December, a job satisfaction survey is conducted. This survey is conducted to get the employee perspective on their well-being. Survey results are distributed to the managers and managers are encouraged to talk to their employees about the result in order to understand which corrective actions shall be made, if any. The latest survey showed overall a good result and satisfied employees. On a quarterly basis dialogue meetings with AMMERAAL BELTECH MODULAR A/S employees are being held. The goal of these meetings is to ensure that employees know how AMMERAAL BELTECH MODULAR A/S is performing in general but also what new initiatives AMMERAAL BELTECH MODULAR A/S is focusing on. In all these meetings safety is an important agenda topic. A safety week was held in May 2024 and included a variety of activities. First aid courses, lectures in diet and lifestyle, lectures in ergonomics and lifting, elemental firefighting, precision driving with work forklift and many more. During 2024 the company was ISO45001 certified. The concept of safety week will continue in 2025. Furthermore, a variety of safety trainings are conducted for relevant blue and white collars on a yearly basis. Every year performance appraisals are conducted. Besides performance, also job satisfaction, education and future opportunities are evaluated. KPIs & Due Diligence AMMERAAL BELTECH MODULAR A/S is on a continuous basis measuring the • Illness rate • The Bradford factor • No. of accidents at work and the no. of near miss accidents AMMERAAL BELTECH MODULAR A/S has no formalized due diligence process related to Labour and Social conditions. Future efforts It is the belief of AMMERAAL BELTECH MODULAR A/S that the current efforts are satisfactory, so no further initiatives have been planned for 2025, but ongoing scouting of the markets and possibilities across customers and competitors are ongoing in the Business Development area. Human rights Policies AMMERAAL BELTECH MODULAR A/S has through AMMEGA a Global Human Rights policy that is prepared in line with the UN Guiding Principles on business and human rights (the UNGPs). The policy is derived from The United Nations (UN) Universal Declaration of Human Rights, The International Labour Organisation’s (ILO) Declaration of Fundamental Principles and Rights at Work and The United Nations Global Compact. The human rights policy covers: • safe and healthy workplaces • freedom of association • elimination of forced labour, child labour and human trafficking • workplaces free of discrimination, harassment, and violence • fair remuneration • support for local communities • land rights and water use • employee guidance and reporting rules Furthermore, human rights are described in the AMMEGA Code of Conduct with reference to the Human Rights Policy. The company will continue to have mandatory test relating to the Code of Conduct every year. Actions and Results To ensure compliance with human rights policy, AMMEGA makes sure that all employees, business partners and other stakeholders receive print or digital copies of the Code of Conduct. In 2024 all employees completed an e-learning with a mandatory test relating to the Code of Conduct. AMMERAAL BELTECH MODULAR A/S is also a member of the Dansk Arbejdsgiverforening (Danish employer association) and has signed and complies with union agreements for all work areas within the company. Once a year, in December, a job satisfaction survey is conducted. This survey is conducted to get the employees perspective on their well-being. Survey results are distributed to the managers and managers are encouraged to talk to their employees about the result to understand which corrective actions shall be made, if any. The latest survey showed overall a good result and satisfied employees. AMMEGA conducts a yearly Organizational Health Index Survey with the goal of becoming a better organization every single year. The survey is designed to be an in-depth evaluation of the way we organize and complete our work. Survey results were analyzed and distributed by AMMEGA. Focus areas were defined based on the survey and action plans have been initialized. Besides this, AMMEGA has a global speak up hotline, hosted by a third party, which is promoted to all employees in AMMEGA. All employees have been informed how to report incidents to this hotline and if any incidents are reported it will be managed by the Group. KPIs & Due Diligence No specific KPIs are measured. AMMERAAL BELTECH MODULAR A/S has no formalized due diligence process related to CSR for the local entity, but corporate is assisting in assessing all key suppliers in an annual supplier assessment to validate they also adhere to the UN declaration of Human Rights. Future efforts AMMERAAL BELTECH MODULAR A/S will continue our efforts within human rights in 2025 as they are deemed satisfactory, so no further initiatives have been planned for 2025. Through AMMEGA there is an enhanced focus on improving rights and conditions for employees. We will follow the development in AMMEGA and implement the policies when they are released. Anti corruption Policies AMMERAAL BELTECH MODULAR A/S disassociates itself from corruption. The disassociation is expressed in the policies: • The AMMEGA anti-corruption policy • The AMMEGA anti-trust policy • Code of Conduct, which is published on the AMMEGA and AMMERAAL BELTECH MODULAR A/S intranet. The anti-corruption policy outlines that: • Employees in AMMEGA and hereunder AMMERAAL BELTECH MODULAR A/S must act with business integrity by being compliant with law, not be involved in any bribery, facilitation payments, corruption, extortion or embezzlement. All business activities shall be conducted with honesty, integrity, and in accordance with the moral, ethical and legal standards of the country. The anti-trust policy outlines that: • Employees in AMMEGA and hereunder AMMERAAL BELTECH MODULAR A/S must comply with applicable antitrust laws that is implemented to control anticompetitive agreements and practices. Antitrust laws are focused mainly on identifying the line between robust competition and anticompetitive. Furthermore, anti-corruption and anti-trust is described in the AMMEGA Code of Conduct with reference to the Anti-Corruption Policy and the Anti-Trust Policy. The company will continue to conduct training for the employees every year and based on that perform an evaluation of the awareness. No further initiatives have been planned for 2025. Actions & Results To ensure compliance with the anti-corruption policy and the anti-trust policy, AMMEGA makes sure that all employees, business partners and other stakeholders receive print or digital copies of the Code of Conduct. In 2024 all employees completed an e-learning with a mandatory test relating to the Code of Conduct. Furthermore, employees in positions with relations to external parties also had to complete an e-learning course in anti-bribery. AMMEGA has a global speak up hotline, hosted by a third party, which is promoted to all employees in AMMEGA. All employees have been informed how to report incidents to this hotline and if any incidents are reported it will be managed by the Group. KPIs & Due Diligence No specific KPIs are measured. AMMERAAL BELTECH MODULAR A/S has no formalized due diligence process related to Anti-corruption. Future efforts AMMERAAL BELTECH MODULAR A/S will continue our efforts within anti-corruption in 2025 as they are deemed satisfactory, so no further initiatives have been planned for 2025. Reporting on data ethics Policies AMMERAAL BELTECH MODULAR A/S take responsibility for the data that we, as a company, collect. Most of our data relates to our employees, business partners, suppliers as well as our customers. Furthermore, we work on data ethics and data security when using data across the value chain. We do not use data to track movements or consumer preferences of any private individuals, nor do we use machine learning, AI or similar to profile customers, employees or other private individuals. Ammega collects and/or processes Personal Data in accordance with its obligations under applicable data protection legislation. The Responsible Person is accountable for Ammega’s ongoing compliance with Group policies and the law. The Group policy applies to all Personal Data (of employees or business partners) collected or processed by Ammega in any of the countries where Ammega does business. To ensure that processing of Personal Data is lawful, fair and transparent, Ammega’s ICT function maintains a Register of Systems. The Register of Systems is reviewed at least annually and individuals have the right to access their Personal Data and any such requests made to Ammega are dealt with promptly and in accordance with applicable legislation. Ammega ensures that Personal Data are adequate, relevant and limited to what is necessary in relation to the purposes for which they are processed. To ensure that Personal Data is kept for no longer than necessary, Ammega has an archiving policy for each area in which Personal Data is processed and reviews this process annually. The archiving policy specifies what data should/must be retained, for how long, and why. Ammega ensures that Personal Data is stored securely using software that is kept-up-to-date. Access to Personal Data is limited to personnel who need access to do their jobs and appropriate security is in place to avoid unauthorised sharing of information and when Personal Data is deleted this is done safely such that the Personal Data is irrecoverable. Actions & Results No specific actions & results in 2024. The company will continue to conduct training for the employees every year and based on that perform an evaluation of the awareness. No further initiatives have been planned for 2025. KPIs & Due Diligence No specific KPIs are measured. AMMERAAL BELTECH MODULAR A/S has no formalized due diligence process related to Data Ethics. Future efforts It is the belief of AMMERAAL BELTECH MODULAR A/S that the current efforts are satisfactory, so no further initiatives have been planned for 2025. DKK '000 Share capital Retained earnings Proposed dividend Total Equity at 1 January 2024 3.000 187.655 115.000 305.655 Proposed profit allocation, see note 8 -18.402 75.000 56.598 Transactions with owners Dividend paid -115.000 -115.000 Equity at 31 December 2024 3.000 169.253 75.000 247.253 1 | Net revenue Segment details (geography) Revenue, Europe 374.247 392.312 Revenue, USA 88.822 94.224 Revenue, Latin America 19.474 27.300 Revenue, Asia 34.207 54.462 Revenue, Other -14 1.285 516.736 569.583 Segment information is provided on geographical markets. The segment information is in line with the Group's accounting policies, risks and internal financial management. In accordance with section 96 of the Danish Financial Statements Act, the distribution of revenue across business segments is not disclosed, as such information may be detrimental to the Group. 2 | Other operating income Gain from a sale and lease back transaction. The total gain is MDKK 88 million, of which MDKK 41 is recognized as other operating income in 2024. The remaining amount is recognized as deferred income and will be recognized to the income statement over the next 15 years. 3 | Fee to statutory auditor Fee to the auditor appointed at the general meeting has not been disclosed in accordance with section 96 (3) of the Danish Financial Statements Act. Reference is made to the Consolidated Statements of Ammega Group BV. Marconistraat 15, Heerhugowaard, 1704RH, the Netherlands. 4 | Staff costs Average number of full time employees 147 158 Wages and salaries 81.804 83.682 Pensions 11.327 12.431 Social security costs 1.886 1.374 95.017 97.487 Staff costs include remuneration of the Company's Executive Board, DKK 1.472 thousand, pensions, DKK 153 thousand and remuneration of the Company's Supervisory Board, DKK 11 thousand. In 2023 remuneration of Executive Board and Supervisory Board is not disclosed in accordance with section 98B(1) of the Danish Financial Statements Act. 5 | Other financial income Interest income from group enterprises 156 3.529 172.110 Other interest income 14.272 3.668 14.428 7.197 6 | Other financial expenses Interest expenses to group enterprises 0 1.628 173.107 Other interest expenses 3.074 16.850 3.074 18.478 8 | Proposed distribution of profit Proposed dividend for the year 75.000 115.000 515.300 Retained earnings -18.402 -54.596 56.598 60.404 9 | Intangible assets DKK '000 Development projects completed, including patents and similar rights originating from development projects Acquired concessions, patents, licences, trademarks and similar rights Goodwill Cost at 1 January 2024 17.954 51.302 5.947 Transfer 0 879 0 Cost at 31 December 2024 17.954 52.181 5.947 Amortisation at 1 January 2024 9.974 42.876 3.302 Amortisation for the year 1.995 4.137 660 Amortisation at 31 December 2024 11.969 47.013 3.962 Carrying amount at 31 December 2024 5.985 5.168 1.985 10 | Property, plant and equipment DKK '000 Land and buildings Production plant and machinery Other plant, fixtures and equipment Cost at 1 January 2024 17.300 416.630 15.582 Transferred 0 20.024 585 Additions 68.497 0 0 Disposals -68.497 0 0 Cost at 31 December 2024 17.300 436.654 16.167 Depreciation and impairment losses at 1 January 2024 15.431 296.963 15.320 Depreciation for the year 264 21.889 148 Depreciation and impairment losses at 31 December 2024 15.695 318.852 15.468 Carrying amount at 31 December 2024 1.605 117.802 699 Finance lease assets 4.918 DKK '000 Leasehold improvements Tangible fixed assets in progress and prepayments for tangible fixed assets Cost at 1 January 2024 1.391 26.704 Transferred 0 -21.488 Additions 0 18.079 Cost at 31 December 2024 1.391 23.295 Depreciation and impairment losses at 1 January 2024 1.391 0 Depreciation and impairment losses at 31 December 2024 1.391 0 Carrying amount at 31 December 2024 0 23.295 11 | Financial non-current assets DKK '000 Rent deposit and other receivables Cost at 1 January 2024 4.553 Additions 839 Cost at 31 December 2024 5.392 Carrying amount at 31 December 2024 5.392 12 | Receivables from group enterprises Receivables from group enterprises comprise DKK 76.011 thousand regarding cash pool (2023: DKK 1 thousand) 13 | Prepayments Prepayments comprise prepaid expenses regarding rent, insurance premiums, subscribtions and interest. 14 | Share capital Allocation of Share capital: A-shares, 3 unit in the denomination of 1.000 DKK'000 3.000 3.000 3.000 3.000 15 | Provision for deferred tax The provision for deferred tax is related to differences between the carrying amount and tax value of securities, receivables, intangible and tangible fixed assets, including recognised finance lease contracts. Deferred tax, beginning of year 15.984 16.676 522.100.01 Deferred tax of the year, income statement -10.479 -692 522.100.02 Provision for deferred tax 31 December 2024 5.505 15.984 16 | Other provisions Other provisions 1 January 3.453 3.304 Provisions for the year 7.253 149 10.706 3.453 The provisions are expected to be activated as follows: 0-1 years 4.676 1.865 > 5 years 6.030 1.568 Other provisions 31 December 10.706 3.453 Other provisions comprise of warranty provisions with an expected payment within 1 year and a provision related to required maintenance of leased property within the next 5-10 years. 17 | Long-term liabilities 31/12 2024 Repayment Debt outstanding 31/12 2023 DKK '000 total liabilities next year after 5 years total liabilities Lease liabilities 1.980 1.980 0 4.386 1.980 1.980 0 4.386 18 | Debt to group enterprises Debt to group entities comprise DKK 0 thousand regarding cash pool (2023: DKK 18.999 thousand). 19 | Deferred income Deferred income constitutes of a profit on a sale and lease back transaction and deferred revenue. Contingent liabilities The Company has entered into operating leases with a remaining term of 15 years and an average yearly lease payments of DKK 11,069 thousand, totalling DKK 166,036 thousand. Joint liabilities The Company is jointly and severally liable together with the Parent Company and the other group companies in the joint taxable group for tax on the group’s joint taxable income and for certain possible withholding taxes, such as dividend tax, etc. Tax payable on the Group’s joint taxable income is stated in the annual report of Ammega Holding Denmark ApS, which serves as management Company for the joint taxation. 21 | Related parties AMMERAAL BELTECH MODULAR A/S' related parties comprise the following transactions: Related party transactions: DKK'000 31/12 2024 Sale of goods to group entities 478.393 Sale of goods to parent entity 13 Sale of services to parent entity 3.659 Purchase of goods from group entities 27.671 Purchase of services from group entities 83.503 Purchases of services from parent entity 41.348 Receiveables and payables to group entities are disclosed in the balance sheet. Interest income is disclosed in note 5 and interest expense in note 6. 22 | Significant events after the end of the financial year No significant events have occured after the balance sheet date. 23 | Consolidated Financial Statements Ammeraal Beltech Danmark A/S, Hjulmagervej 21, 7100 Vejle. Ammeraal Beltech Danmark A/S holds the majority of the contributed capital in the Company. AMMERAAL BELTECH MODULAR A/S is part of the consolidated financial statements of Ammega Group BV, Marcoistraat 15, Heerhugowaard, 1704RH, and the consolidated financial statements of Alpha ABMD Holdco BV, Marcoistraat 15, Heerhugowaard, 1704RH, which are the smallest and largest groups, respectively, in which the Company is included as a subsidiary. The consolidated financial statements of Ammega Group BV and the consolidated financial statements of Alpha ABMD Holdco BV can be obtained by contacting the companies at the above addresses. The Annual Report of AMMERAAL BELTECH MODULAR A/S for 2024 has been presented in accordance with the provisions of the Danish large-size Financial Statements Act for enterprises in reporting class C. Regnskabsklasse C, stor virksomhed1 true The Annual Report is prepared consistently with the accounting principles applied last year. The Annual Report 2024 is presented in DKK thousand. Net revenue Income from the sale of goods is recognised in revenue when delivery and transfer of risk to the buyer have taken place, and the income may be measured reliably and is expected to be received. The date of transfer of the most significant benefits and risks is determined using standard Incoterms @ 2020. Revenue from the sale of goods where installation is a condition for significant risks being considered to have been transferred to the buyer is recognised as revenue when installation has been completed. Revenue from the sale of goods where delivery has been postponed at the buyer's request is recognised as revenue when ownership of the goods has been transferred to the buyer. A contract is broken down by individual transactions when the fair value of the individual sales transactions may be reliably measured, and the individual sales transactions are of separate value to the buyer. Sales transactions are deemed to be of a separate value to the buyer when the transaction is individually identifiable and usually sold individually. The contract price is broken down by the individual sales transactions in accordance with the fair value method. The separate sales transactions are recognised as revenue when complying with the criteria applying to the sale of goods and services. Revenue is measured at the fair value of the agreed consideration excluding VAT and taxes charged on behalf of third parties. All discounts granted are recognised in revenue. For products with a high degree of customisation, revenue is recognised as production takes place, and accordingly, revenue corresponds to the selling price of the work performed for the year (the percentage of completion method). When total income and costs attributable to the contract or the stage of completion at the balance sheet date cannot be estimated reliably, revenue is recognised only at costs incurred and only to the extent that the recovery thereof is likely. Revenue from the sale of services is recognised on a straight-line basis in the income statement as the services are provided. Services based on time spent are recognised in revenue as the work is performed. Cost of sales Change in inventories of finished goods/work in progress include costs relating to raw materials and consumables used in generating the year's revenue. Other operating income Other operating income comprises items secondary to the activities of the entity, including gains on the disposal of intangible assets as well as property, plant and equipment. Other external expenses Other external expenses include other production, sales, delivery and administrative costs, including costs of energy, marketing, premises, loss on bad debts, operating lease expenses, etc. Staff costs Staff costs comprise wages and salaries, including holiday allowance, pension and other social security costs, etc., to the Company's employees, excluding reimbursements from public authorities. Other operating expenses Other operating expenses comprise items secondary to the activities of the entity, including losses on the disposal of intangible assets and property, plant and equipment. Financial income and expenses Financial income and expenses comprise interest income and expense, financial costs regarding finance leases, gains and losses on securities, payables and transactions denominated in foreign currencies, amortisation of financial assets and liabilities as well as surcharges and refunds under the on-account tax scheme, etc. In case of indication of impairment, an impairment test is conducted. Indication of impairment exists if distributed dividend exceeds profit for the year or if the carrying amount of equity investments exceeds the consolidated carrying amounts of the net assets in the subsidiary. 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. The entity and its Danish group entities are taxed on a joint basis. The Danish income tax charge is allocated between profit-making and loss-making Danish entities in proportion to their taxable income (full allocation method). Jointly taxed companies entitled to a tax refund are, as a minimum, reimbursed by the management company according to the current rates applicable to interest allowances, and jointly taxed companies with insufficient tax payments, as a maximum, are to pay a surcharge according to the current rates applicable to interest surcharges to the management company. Intangible assets Goodwill is amortised on a straight-line basis over the estimated useful life determined on the basis of Management's experience within the individual business areas. The maximum amortisation period is between 5 and 25 years and longest for strategically acquired entities with a strong market position and longterm earnings profile. Patents and licences are measured at cost less accumulated amortisation and impairment losses. Patents are amortised on a straight-line basis over the remaining life of the patent, and licences are amortised over the contract period, however, not exceeding 7 years. Development projects comprise costs, including wages and salaries, and amortisation, which directly or indirectly can be related to the Company’s development activities and which fulfil the criteria for recognition in the Balance Sheet. The accounting item is measured at the lower of the capitalised costs less accumulated amortisation and recoverable amount. Capitalised development costs are amortised on a straight-line basis over the estimated useful life after completion of the development work. The amortisation period is normally 5 years. Intangible fixed assets are generally written down to the recoverable amount if this is lower than the carrying amount. Gains and losses on the disposal of intangible assets are stated as the difference between the selling price less selling costs and the carrying amount at the date of disposal. Gains and losses are recognised in the income statement as other operating income or other operating costs, respectively. Property, plant and equipment Land and buildings, production plant and machinery, other plant, fixtures and equipment are measured at cost less accumulated depreciation and impairment losses. Cost comprises the purchase price and any costs directly attributable to the acquisition until the date on which the asset is available for use. Indirect production overheads and borrowing costs are not recognised in cost. Where individual components of an item of property, plant and equipment have different useful lives, they are accounted for as separate items, which are depreciated separately. The basis of depreciation is cost less any projected residual value after the end of the useful life. Depreciation is provided on a straight-line basis over the estimated useful life. The estimated useful lives are as follows: Buildings 10-33 years Production plant and machinery 3-10 years Other plant, fixtures and equipment 3-10 years Leasehold improvements 10-14 years The useful life and residual value are reassessed annually. Changes are treated as accounting estimates, and the effect on depreciation is recognised prospectively.. Fixed assets under construction are recognised and measured at cost at the balance sheet date. Upon entry into service, the cost is transferred to the relevant group of property, plant and equipment. Gains and losses on the disposal of property, plant and equipment are stated as the difference between the selling price less selling costs and the carrying amount at the date of disposal. Gains and losses are recognised in the income statement as other operating income or other operating costs, respectively. Lease contracts On initial recognition, leases for non-current assets that transfer substantially all risks and rewards incident to ownership to the Company (finance leases) are recognised in the balance sheet at the lower of fair value and the net present value of future lease payments. When calculating the net present value, the interest rate implicit in the lease or the incremental borrowing rate is used as the discount factor. Assets held under finance leases are subsequently treated as the Company's other non-current assets. The capitalised lease obligation is recognised in the balance sheet as a liability at amortised cost, allowing the interest element of the lease payment to be recognised in the income statement over the term of the lease. All other lease contracts are considered to be operating leases. Payments related to operating leases and other rental agreements are recognised in the Income Statement over the contract period. The Company's total liability relating to operating leases and rental agreements is disclosed as contingencies etc. Financial non-current assets Other receivables are measured at amortised cost which usually corresponds to the nominal amount. The amount is written down to meet expected losses. Impairment of fixed assets The carrying amount of intangible assets and property, plant and equipment, 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. Inventories Inventories are measured at cost using the FIFO-principle. If the net realisable amount is lower than cost, the inventories are written down to the lower amount. The cost of finished goods and work in progress includes the cost of raw materials, consumables, direct payroll cost and other direct and other indirect production costs include indirect materials and payroll and maintenance and depreciation of the machines, factory buildings and equipment used in the production process, the cost of factory administration and management and capitalised development costs relating to the products. The net realisable value of inventories is stated at the expected sales price less direct completion costs and costs incurred to execute the sale and is determined with due regard to marketability, obsolescence and development in expected sales price of the inventories. 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. Prepayments Accruals recognised as assets include costs incurred relating to the subsequent financial year. Cash and cash equivalents Cash at bank and in hand comprise cash and bank deposits. Equity Dividends The expected dividend payment for the year is disclosed as a separate item under equity. Dividends are recognised as a liability at the date of declaration by the annual general meeting. Other provisions for liabilities Provisions comprise expected expenses relating to guarantee commitments, etc. Provisions are recognised when the Company has a legal or constructive obligation as a result of a past event at the balance sheet date and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation. Provisions are measured at net realisable value or at fair value if the obligation concerned is expected to be settled far into the future. Tax payable and deferred tax Current tax payable and receivable is recognised in the balance sheet as tax computed on the taxable income for the year, adjusted for tax on the taxable income of prior years and for tax paid on account. Deferred tax is measured using the balance sheet liability method on all temporary differences between the carrying amount and the tax value of assets and liabilities measured on the planned use of the asset or settlement of the liability, respectively. However, deferred tax is not recognised on temporary differences relating to office buildings non-deductible for tax purposes and other items where temporary differences arise at the date of acquisition without affecting either profit/loss or taxable income. Deferred tax assets, including the tax value of tax loss carryforwards, are recognised at the expected value of their utilisation within the foreseeable future; either as a set-off against tax on future income or as a set-off against deferred tax liabilities in the same legal tax entity. Any deferred net assets are measured at net realisable value. Deferred tax is measured in accordance with the tax rules and at the tax rates applicable at the balance sheet date when the deferred tax is expected to crystallise as current tax. Changes in deferred tax as a result of changes in tax rates are recognised in the income statement or equity, respectively. 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. Lease liabilities are measured at the net present value of the remaining lease payments including a guaranteed residual value, if any, based on the interest rate implicit in the lease. Deferred income Deferred income comprises payments received regarding income in subsequent years. 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. Cash Flow Statement Pursuant to section 86(4) of the Danish Financial Statements Act, no cash flow statement has been prepared. The Company's cash flows are included in the cash flow statement in the consolidated financial statements of Ammega Group BV. Marconistraat 15, Heerhugowaard, 1704RH, the Netherlands. Pursuant to section 86(4) of the Danish Financial Statements Act, no cash flow statement has been prepared. The Company's cash flows are included in the cash flow statement in the consolidated financial statements of Ammega Group BV. 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