21153702 2025-05-01 2025-12-31 21153702 2025-05-01 2025-12-31 1 21153702 2025-05-01 2025-12-31 1 21153702 2025-05-01 2025-12-31 1 21153702 2025-05-01 2025-12-31 2 21153702 2025-05-01 2025-12-31 3 21153702 2025-05-01 2025-12-31 4 21153702 2025-05-01 2025-12-31 5 21153702 2025-05-01 2025-12-31 6 21153702 2025-05-01 2025-12-31 2 21153702 2024-05-01 2025-04-30 21153702 2025-12-31 21153702 2025-04-30 21153702 2025-04-30 fsa:ContributedCapitalMember 21153702 2025-04-30 fsa:ReserveForDevelopmentExpenditureMember 21153702 2025-04-30 fsa:RetainedEarningsMember 21153702 2025-05-01 2025-12-31 fsa:ContributedCapitalMember 21153702 2025-05-01 2025-12-31 fsa:ReserveForDevelopmentExpenditureMember 21153702 2025-05-01 2025-12-31 fsa:RetainedEarningsMember 21153702 2025-12-31 fsa:ContributedCapitalMember 21153702 2025-12-31 fsa:ReserveForDevelopmentExpenditureMember 21153702 2025-12-31 fsa:RetainedEarningsMember 21153702 2024-05-01 2025-04-30 1 21153702 2025-05-01 2025-12-31 1 21153702 2024-05-01 2025-04-30 2 21153702 2025-05-01 2025-12-31 2 21153702 2025-05-01 2025-12-31 2 21153702 2024-05-01 2025-04-30 2 21153702 2024-05-01 2025-04-30 1 21153702 2025-05-01 2025-12-31 1 21153702 2024-05-01 2025-04-30 2 21153702 2025-05-01 2025-12-31 2 21153702 2024-04-30 iso4217:DKK xbrli:pure Connie Rasmussen DS Smith Packaging Denmark A/S Åstrupvej 30 8500 Grenaa 21153702 Norddjurs City Tower, Værkmestergade 2 8000 Aarhus C The Board of Directors and the Executive Board have today considered and approved the annual report of DS Smith Packaging Denmark A/S for the financial year 01.05.2025.-31.12.2025. 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 Entity’s financial position at 31.12.2025. and of the results of its operations and cash flows for the financial year 01.05.2025.-31.12.2025. Further, in our opinion, the Management's review gives a fair review of the matters discussed in the Management's review. We recommend the annual report for adoption at the Annual General Meeting. Grenaa, Dan Johannessen Gustav Thorbjörn Sagerström Connie Rasmussen chairman deputy chairman Helena Birgitta Redmo Dan Johannessen Julie Katholm Quist Jesper Østergaard Opinion We have audited the financial statements of DS Smith Packaging Denmark A/S for the financial year 1 May – 31 December 2025, which comprise income statement, balance sheet, statement of changes in equity, cash flow statement and notes, including accounting policies. The financial statements are prepared in accordance with the Danish Financial Statements Act. In our opinion, the financial statements give a true and fair view of the financial position of the Company at 31 December 2025 and of the results of the Company's operations and cash flows for the financial year 1 May – 31 December 2025, in accordance with the Danish Financial Statements Act. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (ISAs) and additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the "Auditor's responsibilities for the audit of the financial statements" section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Independence We are independent of the Company in accordance with the International Ethics Standards Board for Accountants' International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. Statement on the management commentary Management is responsible for the management commentary. Our opinion on the financial statements does not cover the 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 the management commentary and, in doing so, consider whether the management commentary is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. Moreover, it is our responsibility to consider whether the management commentary provides the information required by relevant law and regulations. Based on the work we have performed, we conclude that the management commentary is in accordance with the financial statements and has been prepared in accordance with the requirements in the relevant law and regulations. We did not identify any material misstatement of the management commentary. Statement on the management commentary Management is responsible for the management commentary. Our opinion on the financial statements does not cover the 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 the management commentary and, in doing so, consider whether the management commentary is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. Moreover, it is our responsibility to consider whether the management commentary provides the information required by relevant law and regulations. Based on the work we have performed, we conclude that the management commentary is in accordance with the financial statements and has been prepared in accordance with the requirements in the relevant law and regulations. We did not identify any material misstatement of the management commentary. 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. Auditor's responsibilities for the audit of the financial statements 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 additional requirements applicable in Denmark will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements. As part of an audit conducted in accordance with ISAs and additional requirements applicable in Denmark, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management. • Conclude on the appropriateness of Management’s use of the going concern basis of accounting in preparing the financial statements, and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Entity’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 Entity to cease to continue as a going concern. • Evaluate the overall presentation, structure and contents of the financial statements, including the note disclosures, and whether the financial statements represent the underlying transactions and events in a manner that gives a true and fair view. • Plan and perform the audit of the financial statements to obtain sufficient appropriate audit evidence regarding the consolidated financial information of the entities or business units as a basis for forming an opinion on the financial statements. We are responsible for the direction, supervision and review of the audit work performed. We remain solely responsible for our audit opinion We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Aarhus, Deloitte Statsautoriseret Revisionspartnerselskab 33963556 Andreas Jacob Hjort Nielsson State Authorised Public Accountant mne52183 Mikael Møller State Authorised Public Accountant mne47835 Financial highlights 2025 (8 2024/25 2023/24 2022/23 2021/22 mth.) DKK'000 DKK'000 DKK'000 DKK'000 DKK'000 Key figures Revenue 865.393 1.258.830 1.261.523 1.506.137 1.369.407 Gross profit/loss 186.555 248.881 290.790 257.239 202.762 Operating profit/loss (70.737) (10.666) 35.313 (2.654) (43.502) Net financials (9.530) (19.514) (26.484) (15.888) (7.059) Profit/loss for the year (80.054) (23.269) 4.712 (16.036) (41.012) Total assets 704.374 785.953 855.066 922.969 881.387 Investments in property, plant and 24.892 11.129 40.984 53.660 22.159 equipment Equity 47.375 127.382 150.606 145.856 161.789 Cash flows from (used in) operating 41.867 (2.806) 84.930 (12.826) (65.950)activities Cash flows from (used in) investing (25.115) (10.417) (42.635) (55.830) (22.323)activities Cash flows from (used in) financing (16.845) 13.194 (43.678) 66.841 87.150 activities Average number of full-time employees 625 626 669 698 666 2025 2024/25 2023/24 2022/23 2021/22 DKK'000 DKK'000 DKK'000 DKK'000 DKK'000 Ratios Gross margin (%) 21,56 19,77 23,05 17,08 14,81 EBIT margin (%) (8,17) (0,85) 2,80 (0,18) (3,18) Net margin (%) (9,25) (1,85) 0,37 (1,06) (2,99) Return on equity (%) (91,62) (16,74) 3,18 (10,43) (22,50) Equity ratio (%) 6,73 16,21 17,61 15,80 18,36 Financial highlights are defined and calculated in accordance with the current version of "Recommendations & Ratios" issued by the CFA Society Denmark. Gross margin (%): Gross profit/loss * 100 RevenueEBIT margin (%):Operating profit/loss * 100 RevenueNet margin (%):Profit/loss for the year * 100 RevenueReturn on equity(%): Profit/loss for the year * 100 Average equityEquity ratio(%): Equity* 100 Total assets Merger with International Paper in January 2025 On January 31, 2025, International Paper Company, a New York corporation, through its indirect wholly owned subsidiary, International Paper UK Holdings Limited, completed the closing of its previously announced acquisition of the entire issued and to be issued ordinary shares of DS Smith Plc, a public limited company registered in England and Wales. The merger of the two companies builds the fundament to create a global leader in sustainable packaging solutions. The all-share transaction, valued at approximately $9.9 billion, resulted in International Paper shareholders owning 66.3% and DS Smith shareholders owning 33.7%. The combined company will have its headquarters in Memphis, Tennessee, with a European headquarters in London. International Paper announced spin‑off on January 2026 International Paper has announced a plan to separate into two independent, publicly traded companies, structured as a spin-off of the combined EMEA Packaging business. The new EMEA-focused company will include both legacy DS Smith and International Paper assets operating in Europe, the Middle East and Africa, while International Paper will continue as a North America-focused company. International Paper intends to retain a meaningful ownership stake in the new EMEA company. The separation is expected to be completed within the next 12 to 15 months from January 2026, subject to board approvals and regulatory requirements in the United States and the United Kingdom. Development in activities and finances This report covers our 2025 period, which is from 1 May 2025 – 31 December 2025. The market for corrugated paper across industries has been moderate to flat throughout the period 2025 and continues to be affected by fierce competition from domestic as well as foreign producers. DS Smith Denmark’s market share is unchanged in this period. Overall, the macroeconomic developments in Denmark in 2025 were positive. Growth was solid, mainly driven by exports, but consumer confidence remained weak with ongoing uncertanity in global markets. Inflation was low and stable. Similar but weaker development in Europe. Growth was modest, and the economy was still affected by uncertainty, weak demand, and challenges in export markets. The development of raw material prices of paper has always had a significant impact on financial results. This also applies in 2025, where volatile paper prices throughout the year led to pressure on sales prices in the first half of 2025. However, in the second half of the year, paper prices declined, which supported sales prices and helped offset the earlier negative impact, resulting in a more balanced overall effect on the financial performance for the full year. Profit/loss for the year in relation to expected development During the fiscal year 2025 we continued to meet our customers’ needs through innovative and sustainable packaging solutions. However, following a strategic review, Management concluded that the POS production at the Vejle site was not economically sustainable due to prolonged unsatisfactory profitability and limited prospects for improvement. As a result, a decision was made to close the production at this location. Consequently, the goodwill associated with the Vejle activities has been fully impaired in 2025 by DKK 76.3 mill, as it is no longer supported by future cash flows. The impairment is a non-cash accounting adjustment arising directly from the strategic decision to discontinue the activity and does not reflect the performance of the remaining business. As a result, the financial year ended with a net loss of DKK 80.1 mill. Following the impairment, the equity in DS Smith Denmark was significantly reduced and fell within the capital loss rules under the Danish Companies Act. To address this, a recapitalisation was carried out in June 2026. This included the sale of the shareholding in DS Smith Recycling Ireland Limited for EUR 9.24 mill (DKK 69.1 mill) and a capital injection of EUR 10.76 mill (DKK 80.4 mill). The sale of DS Smith Recycling Ireland Limited resulted in a minor loss of DKK 0,40 mill, which will be recognizes in the 2026 financial statement. The capital injection directly increased equity while the sale of the Irish subsidiary will not directly impact equity on its own. However, the cash received were used to repay intra group debt, which improves the balance sheet of DS Smith Denmark, strengthens the financial position and reduces future interest costs. Overall, these actions have strengthened the financial position and restored equity. Management therefore considers DS Smith Denmark well positioned to continue operations, and the financial statements have been prepared on a going concern basis. Capital loss The management has acknowledged that the company has lost more than 50% of its share capital. It is the management's opinion that this will not negatively impact the company's operations and that the share capital will be restored through future profits or by capital injection from the parent company. Outlook The unstable economic conditions in Europe are expected to continue and influence the financial result also in the year 2026. Market conditions in Denmark are characterized by strong competition and significant price pressure, this is also expected for 2026. The objective is to maintain the current market shares and market positions to meet Group strategic requirements. Volatile paper prices are expected to continue in the year 2026 impacting the financial result. However, we continue to focus on growing both our top and bottom lines driven by increased value creation for our customers, a development of earnings on each customer as well as a continuous adjustment of capacity and costs levels. Based on paper price assumptions pre-tax loss for 2026 is expected to be in the range of DKK 0 to -15 mill. Basis of earnings External environment The Company as well as the DS Smith Group have focused on and paid attention to the external environment. All environmental conditions are attempted to be improved on a continuous basis. Market risks The sometimes very considerable fluctuations in paper prices and other production costs may entail a market risk which may affect earnings in the short term. Foreign exchange risks The majority of the Company’s transactions are effectuated in DKK or EUR, and the Company’s foreign exchange risks are considered to be minimal. The Company does not enter foreign exchange positions for speculative purposes. Interest rate risks The net interest-bearing debt is mainly intra-group debt, and the interest rate is adjusted on an ongoing basis. The Company does not enter into interest rate agreements to hedge against interest rate exposures. Credit risks The Company is not exposed to any major risks from a single customer or business partner. All major customers and other business partners are credit rated on a regular basis. Health and Safety At DS Smith, health (both physical and mental) and safety is an integral and key part of our business activities. We strive to ensure that no employees or visitors are injured on the job or otherwise burdened unnecessarily either mentally or physically. At Group level, a target for health and safety has been set in accordance with DS Smith’s concept ’Vision Zero’ with the purpose of preventing situations that give rise to actual accidents. In addition, "near misses" are monitored to prevent situations that cause actual accidents. In the area of safety, improvements are continuously being made, which is why all employees must report safety observations monthly, as it must be safe to go to work at DS Smith Denmark. Actions and achievements In 2025 we can report 0 LTAs (Lost Time Accidents) in DS Smith Denmark. Maintaining high standards on safety procedures We continue with daily morning meetings consistently covering lockout/tagout (LOTOTO) procedures, conducting TAKE5 risk assessments, and the importance of making and addressing observations. Near-misses and A3 problem-solving were also analyzed in-depth as opportunities for accident prevention and continuous improvement. Overall, this comprehensive approach to safety awareness, training, observation management, and proactive risk mitigation allowed the company to reinforce a robust safety culture. In 2025 we can report 932 “Safety Walks” and 9473 “Safety Observations” conducted by employees. An important indicator of our employee involvement when it comes to creating a culture and workplace focusing on Health & Safety. Safety investments and actions During 2025, we invested significantly in separating pedestrian and vehicle traffic flows across our manufacturing facilities. Key measures included designated walkways, physical barriers, visual cues, alert systems, and sensor technology to automatically trigger alarms in shared areas. These initiatives improve safety for our employees while maintaining efficient operations by clearly delineating foot and vehicular traffic patterns. Purposefully dividing pedestrian and vehicle movements demonstrates our commitment to world-class safety standards and prioritizing our workforce. Our employees and their development In the year 2025, we have continued our focus on: 1) learning and development of our managers and employees 2) diversity, equity and inclusion 3) employee engagement Actions and achievements Managers Training We have continued our focus on management through continuous training of our managers. On the training courses, managers have been given the necessary tools for use in their everyday life, where we, among other things, adhere to our "Management Standards", which all managers at DS Smith adhere to in their daily lives and outlining a clear and consistent set of accountabilities, embedding these in all of our people processes and in the continued roll out of our management development programmes, where we have appointed Danish Managers to take part in Global Leadership Programs to strengthening our succession planning of senior leaders. In 2025 we have continued to invest in our e-learning platforms (GoLearn), and we have recorded a further increase in the numbers of people making use of e-learning. Diversity, Equity & Inclusion (DEI) We are committed to building and maintaining the diversity of our workforce to better reflect the communities we operate in. As a concrete action in 2025 we have for the fourth time celebrated Pride/Inclusive Workplace Month at all sites in Denmark. The internal communication campaign involved several activities like webinars for all employees with an external speaker, Pride flags on sites and a competition where employees could submit their ideas around building a more inclusive workplace. We have as well worked with the DEI, especially the gender perspective when we recruited around 50 summer substitutes to our sites. The target was 50% men and 50% women, and we almost reached target. To ensure fundamental knowledge we have taken 100% of our managers in DS Smith Denmark through a facilitated journey where we rolled out an internal program, supported by in-house facilitators who delivered DEI training. Employee Engagement During 2025, we continued the use of pulse surveys, providing more frequent opportunities for colleague feedback, better manager guidance and support and clearer reporting and action planning. We have been delighted with the increased response rates which have averaged 76 per cent. Lots of insights were gained, which resulted in dialogue and focus groups across the company as well as with the management, where taskforces work across departments with concrete measures that emerged in the dialogue. Several activities in our local areas can be mentioned here, such as free access to different sports activities, participation in exercise runs and various free activities at our locations. This has caused positive feedback from the employees. Another focus has been celebrating employee work anniversaries as a valuable way for us to show appreciation and boost engagement. Work milestones provide an opportunity to recognize an employee's dedicated service and contribution to our company over the years. Main risks - Social and Employee Relations The material risk for the Group is primarily associated with various hazards. We strive to control hazards using a risk-based approach, with a hierarchy of measures. We aim to continuously improve proactive mitigation. Any observations or raised concerns are addressed openly and promptly. To track and observe the development in DS Smith Denmark we constantly focus on our Whistleblower service – SpeakUp. Environment, sustainability, and circular economy Our business model is based on sustainability by providing packaging that is fully recyclable. We work actively to have a circular business model and focus on continuously optimizing the company's energy use, reducing emissions of CO₂ in our production and training our employees to understand and comply with the principles of the circular economy. Sustainability is integral to our circular business model. When we launched our Now & Next Sustainability Strategy in 2020, we set ambitious near and long-term targets that confirmed our commitment to the circular economy and our Purpose of Redefining Packaging for a Changing World. Now & Next includes aspirations for ‘Now’ and for ‘Next’, focusing on the sustainability challenges we are facing today, as well as those that will impact on future generations. We believe that delivering these aspirations will enable us to partner with our customers to lead the transition to the circular economy for packaging. Actions and achievements In 2025, the Group has continued the spread of the circular economy with the objectives from the sustainability strategy "For Now. And for Next” with the aim of continuing to focus on the circular economy in the industry and creating the foundation to support our customers in developing innovative approaches to packaging design, manufacturing, reuse and recycling, and to make the most of our resources and raw materials. "The Circular Design Model" has been a central part of this work. It is a tool where we can evaluate and compare different packaging designs, new and old, and in all kinds of materials. We do this using eight different indicators, such as biodegradability, recycled content, material utilization, etc. The Circular Design Model provides a clear identification of a packaging's environmental impact and focuses on what should be developed in collaboration with our customers. The model was developed in collaboration with the Ellen MacArthur Foundation and is based on "Cradle to gate". During 2025, we strengthened the sustainability of our freight transportation in Denmark by completing a comprehensive tender of all our transportation needs in the country. Sustainability and green initiatives were central selection criteria throughout the process. As a result of the tender, we have selected Frode Laursen and FREJA as our logistics partners. In close collaboration with them, we are now charting a clear course towards a more environmentally friendly transport setup. Both partners offer solutions such as electric trucks, representing an important step in reducing our carbon footprint as implementation begins in the financial year 2025. This strategic initiative to reduce the environmental impact of our freight transportation underlines our commitment to sustainable growth. By entering long-term partnerships with progressive logistics companies, we are positioning ourselves strongly to support the green transformation of the transportation sector. As part of DS Smith's global multi-site certificate, DS Smith Denmark is ISO 50001 energy certified. This means that throughout the DS Smith Group we work together to optimize energy utilization and reduce CO₂ emissions. The DS Smith Group sets clear targets for sustainable production and reduction of CO₂. As corrugated cardboard production is energy-intensive, there is a particular focus on switching to sustainable energy sources. It can be wind and solar energy or CO₂ neutral solutions. Main risks related to climate and environmental issues in DS Smith’s supply chain DS Smith Group has been on a multi-year journey to implement the recommendations set out by the Task Force on Climate-related Financial Disclosures, improving how we communicate climate-related financial information. Find below the top 4 climate related issues/risks. Increased spend on carbon taxes In the short term, there is a risk that new carbon taxes could be introduced, or existing carbon taxes could be extended as a policy tool to incentivise decarbonisation. Increased cost of raw materials or threat to supply In the medium to long term, there is a risk that raw materials could become more expensive or difficult to acquire due to disruption or market dynamic shifts caused by climate change. Increased severity of extreme weather events In the medium to long term, there is a risk that the frequency and severity of extreme weather events could increase, causing damage and disruption in our own operations or the value chain. Increased likelihood of water stress In the long term, there is a risk that competition for water could increase in the river basins from which we withdraw water, increasing the chance that supply constraints could be imposed. Contribution to charity and good causes: Community Engagement In the financial year 2025, DS Smith donated DKK 100,000 as part of our annual Christmas donation initiative. Ahead of Christmas, we invited our customers, suppliers, and business partners to vote on how the donation should be distributed among three pre-selected charitable initiatives. The selected causes align closely with our commitment to sustainability and social responsibility. The voting took place with participation from more than 100 customers and business partners. Based on the outcome of the vote, the Christmas donation was distributed as follows: • SMIL Foundation (supporting children): DKK 69,000 • WWF Denmark (nature and biodiversity protection): DKK 16,000 • Vild med Vilje (biodiversity and nature restoration): DKK 15,000 Furthermore, in the financial year 2025 we have continued with our permanent partnership with the NGO “Klimatræ”. The partnership deals with specific measures to plant trees, where DS Smith continuously buys trees every time a new colleague joins - 10 trees for each new colleague. We are also working on how the collaboration can be developed over the coming years. Legislation in the packaging industry DS Smith Denmark welcomes the PPWR as a fundamental measure to increase packaging circularity in Denmark, and an important part of the EU’s Circular Economy Action Plan. DS Smith Group has worked closely with our trade associations in Brussels to establish a constructive dialogue with the EU institutions throughout the process and ensure that the new legislation ensures that recycling and reuse are seen as complementary parts of the future regulatory landscape. As we reach the end of the process, we look forward to working with our partners and customers in ensuring a successful implementation of the legislation and continue to lead the way in packaging sustainability in Europe. We have as well work closely and with clear targets around the EPR in Denmark and EUDR to support our customers in the best possible way. Actions and achievements Legislations are a big driver for what we are seeing in the Danish market at the moment and in the past financial year 2025. EPR (Extended Producer Responsibility) In Denmark, the implementation of Extended Producer Responsibility (EPR) in 2025 required significant focus throughout 2025. During this period, we supported several brands in adapting their packaging solutions by transitioning to mono-material designs, ensuring that all materials were recyclable, and reducing material use wherever possible to meet regulatory requirements. EUDR (EU Deforestation Regulation) The EU Deforestation Regulation (EUDR) has now been postponed twice. Originally scheduled to apply from the end of 2024, the application date was first delayed to 30 December 2025 and subsequently postponed again to 30 December 2026 for large and medium‑sized operators (with micro and small enterprises covered from 30 June 2027). During this period, DS Smith Denmark has actively prepared for EUDR compliance. As part of this work, DS Smith Denmark is participating in a pilot project at one of our sites in Sweden, aiming to build practical experience with due diligence, traceability, and data requirements. The learnings from this pilot are being used to support a structured and robust implementation of EUDR requirements in Denmark ahead of the regulation’s application date. PPWR (Packaging and Packaging Waste Regulation) During 2025, we worked closely with our customers to prepare for the EU’s Packaging and Packaging Waste Regulation (PPWR), the most significant change to packaging legislation in decades. PPWR entered into force in February 2025 and will apply from August 2026, with key targets set for 2030, including full recyclability of packaging and reduced packaging waste through prevention, reuse, and bans on unnecessary packaging. Throughout the year, we supported customers in translating PPWR requirements into practical packaging solutions and engaged internally through webinars on EPR, information sharing on EUDR, and active participation in customer forums. Our strategic and scalable innovation initiatives are aligned with the PPWR agenda and position us to lead the industry in sustainable packaging solutions. Ethical business conduct, incl. human rights and anti-corruption and bribery policy Like the rest of the Group, DS Smith Denmark is committed to respecting and supporting existing human rights and preventing any form of corrupt activity. Our Anti-bribery and Anti-Corruption policy outlines our principles on preparing employees to comply with the rules against bribery and other corrupt conduct that apply to the DS Smith Group, its Employees and Third Parties. This applies to internal affairs as well as employees, and towards external cooperative partners and the local areas where DS Smith Denmark has activities. We want to conduct an ethical business, which is expressed in the Group’s Code of Conduct. The Code of Conduct sets out, among other things, that neither DS Smith nor any employee may make or receive illegal or improper payments or bribes. We refrain from engaging in any form of corrupt business conduct. DS Smith is committed to complying with applicable anti-corruption laws in all countries in which it operates and ensuring that opportunities for corruption and bribery are reduced to the lowest practicable level of risk. If any employees are aware of any circumstances which are or may be in breach of this anti-corruption police, the employee should promptly report the breach through the secure speak up channels, Group Legal or Group General Counsel & Company Secretary. For further description of our anti-corruption policy see below link: http://www.dssmith.com/investors/corporate-governance/policies/anti-corruption-policy Actions and main risks In the future, we will continue to work on mitigating potential breaches of anti-corruption and we have evaluated where the most significant risk of impacting anti-corruption are. We have evaluated that no corrupt activities have been noted throughout our value chain and we will continue to work in the future on mitigating potential breaches of anti-corruption. For further details on DS Smith's policies in this area, please refer to the Group's website under "Code-of Conduct" and "Our People”: http://www.dssmith.com/people/culture/code-of-conduct http://www.dssmith.com/company/sustainability/our-people Code of Conduct – Aligning with International Paper During the year 2025, we implemented the International Paper Code of Conduct, strengthening our commitment to ethical behaviour and responsible business practices. The Code of Conduct was communicated to all employees and integrated into our governance framework. Mandatory training was rolled out to ensure awareness and understanding of key principles such as ethics, compliance, human rights, and anti-corruption. The Code of Conduct has also been embedded into onboarding processes and reinforced through ongoing internal communication and leadership engagement. These actions ensure that the Code of Conduct is actively applied and understood across the organisation. To ensure knowledge of and compliance with the Code of Conduct, new administrative employees must complete electronic training in compliance with the Code of Conduct as part of their onboarding. Ethical business conduct is also a requirement for all our suppliers, which is described in the Group's Global Supplier Standards. https://www.dssmith.com/company/suppliers/responsible-sourcing In the coming year, we will continue to focus on monitoring current guidelines throughout the company. Human Rights Policy At DS Smith we believe everyone deserves to be treated with fairness, respect, and dignity. We are committed to conducting our business in a responsible manner, respecting the human rights of our workers and everyone we come into contact with. This policy helps us ensure this and is overseen by the Modern Slavery and Human Rights Committee. https://www.dssmith.com/investors/corporate-governance/policies/human-rights-policy Actions and achievements It is the Company's assessment that in the past financial year there have been no violations of the applicable guidelines relating to human rights, corruption and bribery. Gifts & Hospitality Policy The DS Smith Group recognises that the act of giving and accepting gifts can be part of building normal business relationships. However, some gifts and hospitality can create improper influence and conflicts of interests. In some instances, they can be viewed as bribes that could damage the DS Smith Group’s reputation or even break the law. Actions and main risks We recognise that the act of giving and accepting gifts can be part of building normal business relationships, which presents a risk for the company. Employees are required to report any circumstances which are in breach of our Gifts and Hospitality Policy. Every year as we approach the festive season, we remind all colleagues about the Gifts & Hospitality (G&H) Policy. Before giving or receiving G&H, depending on the value, all colleagues may need to seek approval from their line manager and the Group General Counsel & Company Secretary. They may also need to record it on your local G&H register. https://www.dssmith.com/investors/corporate-governance/policies/gifts--hospitality-policy Main risks A materiality and risk analysis has been prepared at group level, showing the areas where the Group can have the greatest impact on the surrounding community. The main areas were considered to be; human rights, anti-corruption risks, health and safety, fiber sourcing, supplier standards and the environmental impact of packaging in relation to recycling. We handle the risk of negative impact through our policies and actions described above. Cyber Security focus In the world around us, and within DS Smith we all have a responsibility, and play a key role, in helping to protect the business, customers and colleagues from cybercrime. Cyber security continues to be a hot topic for us at DS Smith. As a large organisation, we have a responsibility to be vigilant against these risks. Actions To ensure knowledge of and compliance to protect DS Smith against cyberattacks, new administrative employees must complete electronic training and as well employees in general on a continuous basis. We have scaled up the information level around the topic throughout the internal communication agenda the past financial year. AI learning and development in the business At DS Smith, we are committed to leveraging artificial intelligence to enhance operational efficiency and unlock new opportunities across our business. A key part of this journey is the continuous upskilling of our colleagues, ensuring they are equipped with the knowledge and capabilities to use AI tools effectively and responsibly. To safeguard our data and maintain high standards of security and compliance, we exclusively use AI solutions developed and approved by the DS Smith Group. This includes proprietary chatbots and internal AI platforms designed to support our teams while protecting sensitive information. Events after the balance sheet date After the balance sheet date, the Company completed a recapitalisation in June 2026 to strengthen the capital position. This included the sale of the shares in DS Smith Recycling Ireland Limited for EUR 9.24 mill (DKK 69.1 mill) and a capital injection of EUR 10.76 mill (DKK 80.4 mill). The cash received has been used to repay intra-group debt. Overall, these actions have improved the Company’s financial position and liquidity, which has been negatively impacted by the closure of the Vejle site and the impairment of goodwill. Primary activities DS Smith Packaging Denmark A/S offers innovative sustainable packaging and display solutions primarily made of corrugated paper. Since 2012, DS Smith Denmark has been part of the DS Smith Group, which is a leading provider on the international market for innovative sustainable packaging solutions. The Group operates in more than 30 countries and employs more than 30,000 employees. Sustainability is at the heart of our business model and forms the basis of our goal 'Redefining Packaging for a Changing World'. Our wish is to help our customers through a strategic partnership around our innovative sustainable packaging solutions and through the strategic support we offer our customers throughout their value chain. Statutory report on corporate social responsibility DS Smith Packaging Denmark A/S’ reporting on corporate social responsibility cf. §99a is the text in the management review. DS Smith aims to develop the business in a responsible and sustainable way, which is a testament of our approach to corporate responsibility. We pay special attention to: • Health and Safety • Our employees and their development • Environment, sustainability, and the circular economy DS Smith Denmark complies with the DS Smith Plc Group’s policies and initiatives relating to CSRD, ESG and sustainability. Those areas are explained on the Group’s website under the heading: ’Sustainability’, which shows the Group’s sustainability strategy ’For Now and for Next’: http://www.dssmith.com/company/sustainabilityThe sustainability strategy was launched in September 2020. Several targets have been met at Group level. The DS Smith Plc Group together with International Paper have provided a total overview of targets and all targets met in the Sustainability Report – the most recent edition from May 2026: https://www.dssmith.com/sustainability/reporting-hub/sustainabilityreport Data ethics including private policy DS Smith Packaging Denmark A/S’ reporting on data ethics cf. §99d. Like the rest of the Group, DS Smith Denmark is committed to respecting and supporting ethical and responsible use of data in connection with all conceivable scenarios of the company’s operations. This applies to internal matters and data about employees and to external business partners, customers, and candidates for vacant positions. DS Smith Packaging Denmark A/S have updated all Employee and Data Privacy policies to reflect the GDPR Regulations introduced in 2018. A central resource in DS Smith Packaging Denmark A/S has been appointed as GDPR responsible with the responsibility for the business area's registers and with the responsibility to support the business areas in complying to the Data Privacy policies. A Group GDPR person has been appointed, with the tasks to maintain our GDPR system documentation and to perform internal audits. We have trained our employees on what GDPR means to their daily work and on what action to take if there is a personal data breach. Our policy on data ethics is focused on GDPR, which is the primary data we work with. Moreover, we ensure that all employees are trained in the policy through e-learning. Moreover, all managers and union representatives in DS Smith Denmark have participated in a GDPR webinar on how sensitive personal information is handled in everyday life and how we ensure that we comply with the rules, and quarterly samples are taken with a view to storage of sensitive personal data without objective reason. For business partners and customers, only data used to be able to deliver, invoice and contact in connection with purchases is collected. For further information on data processing and private policy, see: https://www.dssmith.com/da/packaging/om-os-/om-ds-smith/privatpolitik 865393000 1258830000 678838000 1009949000 186555000 248881000 105551000 150642000 151741000 108905000 -70737000 -10666000 1865000 2883000 18000 103000 11413000 22500000 -80267000 -30180000 -213000 -6911000 -80054000 -23269000 1956000 2351000 0 81106000 363000 149000 2319000 83606000 130298000 131972000 203944000 215025000 6220000 7886000 200000 250000 12727000 3095000 353389000 358228000 69458000 67546000 3593000 3584000 73051000 71130000 428759000 512964000 53096000 55313000 3451000 3956000 44047000 39953000 100594000 99222000 162653000 158731000 5245000 6246000 1664000 2142000 4891000 5987000 174453000 173106000 568000 661000 275615000 272989000 704374000 785953000 250000000 250000000 1525000 1833000 -204150000 -124451000 47375000 127382000 29144000 29357000 3467000 494000 32611000 29851000 375229000 391443000 29208000 29839000 404437000 421282000 96482000 78315000 46817000 52637000 0 0 76652000 76486000 219951000 207438000 624388000 628720000 704374000 785953000 250000000 1833000 -124451000 127382000 0 0 47000 47000 0 -308000 308000 0 0 0 -80054000 -80054000 250000000 1525000 -204150000 47375000 Operating profit/loss Operating profit/loss -70737000 -10666000 9794000 -22971000 114205000 53228000 53262000 19591000 Financial income received Financial income received 18000 103000 11413000 22500000 0 0 41867000 -2806000 214000 21000 24892000 11129000 0 60000 49000 10000 40000 683000 -25115000 -10417000 16752000 -13223000 Incurrence of debt to group enterprises Incurrence of debt to group enterprises -16214000 13360000 Other adjustments Other adjustments -631000 -166000 -16845000 13194000 -93000 -29000 661000 690000 568000 661000 1. Judgements regarding going concern The management has acknowledged that the company has lost more than 50% of its share capital. It is the management's opinion that this will not negatively impact the company's operations and that the equity will be restored through future profits and capital injections from the parent company, cf. note 2. 2. Events after the balance sheet date After the balance sheet date, the Company completed a recapitalisation in June 2026 to strengthen the capital position. This included the sale of the shares in DS Smith Recycling Ireland Limited for EUR 9.24 mill (DKK 69.1 mill) and a capital injection of EUR 10.76 mill (DKK 80.4 mill). The cash received has been used to repay intra-group debt. Overall, these actions have improved the Company’s financial position and liquidity, which has been negatively impacted by the closure of the Vejle site and the impairment of goodwill. 3. Revenue 2025 2024/25 DKK '000 DKK '000 Home market 733.357 1.073.449 Export 132.036 185.381 Total revenue by geographical market 865.393 1.258.830 The company has not broken down revenue by business segments, as the company only sells one product category. 4. Staff costs 2025 2024/25 DKK '000 DKK '000 Wages and salaries 211.682 318.033 Pension costs 21.719 28.683 Other social security costs 8.977 12.414 242.378 359.130 625 626 Management salaries has not been disclosed in accordance with section§ 98b, para. 3 in the Danish Financial Statement Act. 5. Depreciation, amortization and impairment losses 2025 2024/25 DKK '000 DKK '000 Amortisation of intangible assets 5.189 7.846 Impairment of intangible assets 76.312 0 Depreciation of property, plant and equipment 29.731 47.918 111.232 55.764 6. Fees to the auditor appointed by the Annual General Meeting 2025 2024/25 DKK '000 DKK '000 Statutory audit services 654 650 Other services 28 110 682 760 7. Other financial income 2025 2024/25 DKK '000 DKK '000 Other interest income 18 103 18 103 8. Other financial expenses 2025 2024/25 DKK '000 DKK '000 Financial expenses from group enterprises 7.558 16.482 Other interest expenses 3.855 6.018 11.413 22.500 9. Tax on profit/loss for the year 2025 2024/25 DKK '000 DKK '000 Change in deferred tax (213) (5.599) Adjustment relating to previous years 0 (1.312) (213) (6.911) -308000 -495000 -79746000 -22774000 11. Intangible assets Development projects in Acquired licences Goodwill progress DKK '000 DKK '000 DKK '000 Cost beginning of year 72.173 638.778 149 Transfers 0 0 0 Additions 0 0 214 Disposals 0 0 0 Cost end of year 72.173 638.778 363 Amortisation and impairment losses beginning of year (69.822) (557.672) 0 Amortisation for the year (395) (4.794) 0 Impairment for the year 0 (76.312) 0 Reversal regarding disposals 0 0 0 Amortisation and impairment losses end of year (70.217) (638.778) 0 Carrying amount end of year 1.956 0 363 The capitalized development projects concern development to the company's existing IT platforms, including update system solutions for inventory and customer management. Management expects new IT systems to be taken in use in spring 2026 and will make DS Smith Packaging Denmark A/S customer service even more smooth and efficient. 12. Property, plant and equipment Other fixtures and Property, fittings, tools plant and Land and Plant and and Leasehold equipment buildings machinery equipment improvements in progress DKK '000 DKK '000 DKK '000 DKK '000 DKK '000 Cost beginning of year 374.564 923.926 49.720 691 3.095 Transfers 70 3.023 0 0 (3.093) Additions 5.558 6.341 268 0 12.725 Disposals 0 0 0 0 0 Cost end of year 380.192 933.290 49.988 691 12.727 Revaluations beginning of year 25.012 0 0 0 0 Revaluations end of year 25.012 0 0 0 0 Depreciation and impairment losses beginning of 0 (267.604) (708.901) (41.834) (441) year Depreciation for the year (7.302) (20.445) (1.934) (50) 0 Reversal regarding disposals 0 0 0 0 0 Depreciation and impairment losses end of year (274.906) (729.346) (43.768) (491) 0 Carrying amount end of year 130.298 203.944 6.220 200 12.727 13. Financial assets Investments in group enterprises Deposits DKK '000 DKK '000 Cost beginning of year 80.045 3.584 Additions 0 49 Disposals 0 (40) Cost end of year 80.045 3.593 Impairment losses beginning of year (12.499) 0 Exchange rate adjustments 47 0 Share of profit/loss for the year 1.865 0 Impairment losses end of year (10.587) 0 Carrying amount end of year 69.458 3.593 Equity interest Equity Profit/loss Investemenst in subsidiaries Registered in Corporate form % DKK '000 DKK '000 DS Smith Recycling Ireland Limited Dublin, Irland Ltd. 100 69.458 1.865 14. Receivables from group enterprises DS Smith Plc have made a cash-pool agreement with J.P. Morgan, where DS Smith Plc is the account holder and DS Smith Packaging Denmark A/S is a sub-account holder together with the group’s other subsidiaries. The terms of the cash pool scheme confer on J.P. Morgan the right to settle withdrawals and deposits with each other, whereby only the net balance of the total cash pool accounts constitutes DS Smith Plc's balance with J.P. Morgan. DS Smith Packaging Denmark A/S’ accounts in the cash pool scheme are recognized under receivables from group enterprises with the amount DKK K 130 as of 31 December 2025. 15. Prepayments Prepayments consist of prepaid expenses concerning rent, insurance premiums and leasing etc.. 16. Share capital Nominal value DKK '000 Share capital beginning of year 250.000 Share capital end of year 250.000 The share capital is composed of 100 shares of DKK K 500, 100 shares of DKK K 1.500 and 200 shares of DKK K 250. 17. Deferred tax 2025 2024/25 DKK '000 DKK '000 Intangible assets 448 541 Property, plant and equipment 24.996 24.762 Inventories 4.222 3.941 Receivables (95) (110) Other taxable temporary differences (427) 223 Deferred tax 29.144 29.357 2025 2024/25 DKK '000 DKK '000 Changes during the year Beginning of year 29.357 36.268 Recognised in the income statement (213) (6.911) End of year 29.144 29.357 18. Other provisions Provisions for redundancy costs which amount to DKK K 3.467 (2024/25: DKK K 494). The whole provision is expected to mature within 1 year. 19. Non-current liabilities other than provisions Due after more than 12 months 2025 DKK '000 Payables to group enterprises 375.229 Other payables 29.208 404.437 The long-term debt to group enterprises falls due for payment between 1 and 5 years after the balance sheet date. Other payables falls due after 5 years of balance sheet date. 20. Other payables 2025 2024/25 DKK '000 DKK '000 VAT and duties 6.891 7.013 Wages and salaries, personal income taxes, social security costs, etc payable 63.765 67.236 Other cost payable 5.996 2.237 76.652 76.486 21. Changes in working capital 2025 2024/25 DKK '000 DKK '000 Increase/decrease in inventories (1.372) 5.616 Increase/decrease in receivables (1.347) 21.109 Increase/decrease in trade payables etc 12.513 (49.696) 9.794 (22.971) 22. Other adjustments 2025 2024/25 DKK '000 DKK '000 Depreciation and write-downs on intangible and tangible assets 111.232 55.764 Profit on sale of fixtures and fittings 0 (60) Adjustement in provisions for pension and restructuring for the year 2.973 (2.476) 114.205 53.228 23. Unrecognized rental and lease commitments 2025 2024/25 DKK '000 DKK '000 Liabilities under rental or lease agreements until maturity in total 78.242 87.357 The leasing obligations fall due for payment in the period of non-terminability as follows 0 - 1 år / year 24.596 23.890 1 - 5 år / years 50.860 59.382 Over 5 år / Over 5 years 2.786 4.085 78.242 87.357 The company's operating leasing obligations at the balance sheet date comprises property rental contracts, leasing contracts on rolling stock and other obligations. 24. Other non-recognized obligations 2025 DKK '000 Purchase of tangible fixed assets 40.908 Purchase of raw materials 16.784 Purchase of other materials 300 25. Related parties with controlling interest DS Smith Packaging International B.V. Eerbeek, Netherland owns all shares in the company and thus has a controlling interest influence on this. 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. 26. Group relations Copies of the consolidated financial statements of International Paper Company may be ordered at the following address: International Paper Company, 6400 Poplar Avenue, Memphis, Tennessee, USA. true Non-comparability Following the acquisition by International Paper, DS Smith has changed its financial year-end to align with the calendar year (January 1 – December 31), replacing the previous May 1 – April 30 fiscal year. The financial statements for 2025 therefore cover the period from May to December. As the accounting period now differs from the prior year, the comparative figures are not comparable. Consolidated financial statements Referring to section 112 of the Danish Financial Statements Act, no consolidated financial statements have been prepared for the 8 month period 1 May 2025 to 31 December 2025. The Group Annual Report may be obtained at the following address: International Paper Company 6400 Poplar Avenue Memphis Tennessee USA Tel: +1 901 419-9000 www.internationalpaper.com Recognition and measurement All revenues are recognized in the income statement as earned based on the following criteria: - delivery has been made before year end, - a binding sales agreement has been made, - the sales price has been determined, and - payment has been received at the time of sale or may with reasonable certainty be expected to be received. Based on the above, revenues are recognized in the income statement as earned, which includes recognition of value adjustments of financial assets and liabilities measured at fair value or amortized cost. Furthermore, all expenses incurred to achieve the earnings for the year are recognized in the income statement, including depreciation, amortization, impairment losses and provisions as well as reversals due to changed accounting estimates of amounts that have previously been recognized in the income statement. Assets are recognized in the balance sheet when it is probable as a result of a prior event that future economic benefits will flow to the Entity, and the value of the asset can be measured reliably. Liabilities are recognized in the balance sheet when the Entity has a legal or constructive obligation as a result of a prior event, and it is probable that future economic benefits will flow out of the Entity, and the value of the liability can be measured reliably. On initial recognition, assets and liabilities are measured at cost. Measurement subsequent to initial recognition is effected as described below for each financial statement item. Certain financial assets and liabilities are measured at amortized cost, which involves the recognition of a constant effective interest rate over the maturity period. Amortized cost is calculated as original cost less any deductions and with addition/deduction of the cumulative amortization of any difference between cost and the nominal amount. In this way, capital losses and gains are allocated over the maturity period. Anticipated risks and losses that arise before the time of presentation of the annual report and that confirm or invalidate affairs and conditions existing at the balance sheet date are considered at recognition and measurement. Business combinations Newly acquired or newly established enterprises are recognized in the consolidated financial statements from the time of acquiring or establishing such enterprises. Divested or wound-up enterprises are recognized in the consolidated income statement up to the time of their divestment or winding-up. Acquisitions of enterprises, mergers, demergers, addition of assets and share exchanges etc. where the participating enterprises are under the Parent's control are accounted for applying the uniting-of-interests method, where the uniting of interests is considered implemented at the time of the acquisition without restating comparative figures. According to the uniting-of-interests method, the acquired company's assets and liabilities are recognized at carrying amounts adjusted for any differences in accounting policies and accounting estimates. The difference between the consideration agreed and the carrying amount of the acquired enterprise is recognized in equity. Foreign currency translation Transactions in foreign currency (e.g., purchases/-sales) are translated into local currency at monthly average rates of exchange or at forward rates. The monthly average rates of exchange are used for practical reasons, as these reflect approximately the rates of exchange at the transaction date. The differences in exchange rates arising between the average monthly rate and the rate at the date of payment are stated in the income statement under production costs. Receivables and creditors in foreign currency are translated into local currency at the exchange rates ruling at the balance sheet date or in some cases at forward rates. The difference between the rate of exchange at the balance sheet date (or the forward rate as the case may be) and the rate of exchange at the time when the debtor or the creditor was incurred is included in the income statement under production costs. Tangible fixed assets purchased in foreign currency are translated into local currency at the rate of exchange at the date of transaction or at a forward rate, as the case may be. Other realized and unrealized exchange rate adjustments are included in the income statement under production costs. For the purpose of translating the financial statements of group enterprises, the income statements are translated at average exchange rates, while the balance sheet items are translated at the exchange rates as at the balance sheet date as the undertakings are considered independent foreign entities. Exchange rate adjustments arising upon translation of the shareholders' equity of foreign undertakings at the beginning of the year and exchange rate adjustments arising as a result of the translation of the income statements of foreign undertakings at average exchange rates are taken directly to shareholders' equity. Income statement Revenue The company has chosen IAS 18 as interpretation basis for revenue recognition. Net sales comprise sales invoiced during the year less returned goods and discounts granted in connection with sales. Production costs Production costs include costs incurred to achieve the net sales of the year. Cost of sales includes raw materials, consumables, direct labour and production overheads such as maintenance and depreciation of production plant and operations, as well as administration and factory management. Distribution costs Distribution costs comprise costs incurred for sale and distribution of the Entity's products, including salaries for sales personnel, advertising and exhibition costs, depreciation, etc. Administrative expenses Administrative expenses comprise the costs of the administrative staff and management, including offices, salaries and depreciation, etc. Income from investments in group enterprises Income from investments in group enterprises comprises the pro rata share of the individual enterprises' profit/loss after full elimination of intragroup profits or losses. Other financial income Other financial income comprises dividends on interest income and allowances under the tax on account scheme. Other financial expenses Other financial expenses comprise interest expenses and tax surcharge under the Danish Tax Prepayment Scheme etc. Tax on profit/loss for the year Tax for the year, which consists of current tax for the year and the deferred tax for the year, is recognized in the income statement by the portion attributable to the profit for the year and recognized directly in equity by the portion attributable to entries directly in equity. Any share of the tax reported in the income statement arising from profit/loss on extraordinary activities for the year is attributed to such activities, whereas the remaining share is attributed to profit/loss on ordinary activities for the year. Balance sheet Goodwill Goodwill is amortized straight line over its estimated useful life which is fixed based on the experience gained by Management for each business area. The amortization period is usually five years, however, in certain cases it may be up to 20 years for strategically acquired enterprises with a strong market position and a long-term earnings profile if the longer amortization period is considered to give a better reflection of the benefit from the relevant resources. Goodwill is written down to the lower of recoverable amount and carrying amount. Intellectual property rights etc. Intellectual property rights etc. comprise acquired licenses and development projects in progress. Intangible assets are measured at cost less accumulated amortization and write-downs. Amortization is preceded according to the straight-line method based on the estimated useful lives of the asset which are 3-10 years for acquired licenses. The amortization period is determined on the basis of the management's experience within the company's business area. In the opinion of the management, it reflects the best estimate for the use-ful lives of the assets. The amortization period is assessed on a continuous basis and write-down is recorded in the income statement. Intellectual property rights etc. are written down to the lower of recoverable amount and carrying amount. Property, plant and equipment Land and buildings are measured at cost with the addition of revaluations and less accumulated depreciation and impairment losses. Land is not depreciated. Plant and machinery as well as fixtures, fittings and equipment are measured at cost less accumulated depreciation. Cost comprises the acquisition price, costs directly attributable to the acquisition and preparation costs of the asset until the time when it is ready to be put into operation. Investments in progress are measured at defrayed expenses. Cost comprises acquisition price and expenses directly related to the acquisition as well as expenses for set-up. Depreciation based on cost with the addition of revaluations and reduced by any scrap value is calculated on a straight-line basis over the expected useful lives of the assets which are: Use life Years Buildings 20-40 years Plant and machinery 10-20 years Other fixtures and fittings, tools and equipment 3-7 years Leasehold improvements 4 years Expected lifetimes and scrap values are reevaluated yearly. Leasehold improvements are depreciated over the lifetime of the leasehold contract. Property, plant and equipment are written down to the lower of recoverable amount and carrying amount. Equipment subject to financial leasing arrangements is treated as if acquired by the company. Investments in group enterprises Investment in group enterprises is recognized and measured according to the equity method. The Item "Income from investments in group enterprises" In the Income statement includes the share of enterprise's result for the year less amortization of goodwill. The item "Investments in group enterprises" in the balance sheet includes the proportionate ownership share of the net asset value of the group enterprise's calculated according to the accounting policies of the parent company with deduction or addition of unrealized intercompany profits and losses and with addition or deduction of any remaining value of positive or negative goodwill. Group enterprises with a negative net asset value are valued at DKK 0. If the parent company has a legal or actual liability to cover the negative equity of the company, a provision for this is set up. Upon profit distribution, the total net revaluation of investments in group enterprises is allocated to a "reserve for net revaluation under the equity method" under shareholders' equity in the parent company. When group enterprises are acquired, the difference between the cost and the net asset value of the subsidiary acquired is computed subsequent to adjustment of the individual assets and liabilities to fair value. Remaining positive differences are amortized on a straight-line basis in the income statement over 20 years. Goodwill is calculated as the difference between cost of the investments and fair value of the assets and liabilities acquired. The amortization period of 20 years for goodwill on consolidation is determined on the basis of the management's experience within the company's business area. In the opinion of the management, it reflects the best estimate of the useful lives of the assets. Investments In group enterprises are written down to the lower of recoverable amount and carrying amount. Inventories Inventories of raw materials, consumables and goods for resale are measured at the cost price according to the FIFO principle or net realizable value if the latter is lower than the cost price. Finished goods and semi-finished goods are measured at direct materials and labour costs involved as well as indirect production overheads such as maintenance and depreciation of production plant as well as operations, administration and management of the plants. Provisions are made for slow moving and obsolete items. Receivables The company has chosen IAS 39 as interpretation basis for impairment write-down of financial receivables. In the balance sheet receivables are measured at the lower of amortized cost and net realizable value, which usually corresponds to nominal value less provisions for bad debts. The provision is calculated based on an assessment of the individual debtors. Tax payable or receivable Current tax payable or receivable is recognized in the balance sheet, stated as tax computed on this year's taxable income, adjusted for prepaid tax. Prepayments Prepayments comprise incurred costs relating to subsequent financial years. Prepayments are measured at cost. Cash Cash comprises cash in hand and bank deposits. Cash on intra-group cash pool agreements are reclassified to receivables from group companies. Reserve for development expenditure Development costs related to identifiable and controllable projects with expected future economic benefits are recognized as intangible assets. Upon capitalization of development costs, a corresponding transfer is made to a reserve within equity. The reserve reflects the carrying amount of unamortized development assets and is reduced progressively in line with amortization and any impairment losses. Deferred tax Deferred tax is recognized on all temporary differences between the carrying amount and tax-based value of assets and liabilities, for which the tax-based value of assets is calculated based on the planned use of each asset. Deferred tax assets, including the tax base of tax loss carryforwards, are recognized in the balance sheet at their estimated realizable value, either as a set off against deferred tax liabilities or as net tax assets. Other provisions Provisions are recognized when - in consequence of an event that occurred before or on the balance sheet date - the Company has a legal or constructive obligation, and it is probable that economic benefits must be given up to settle the obligation. Pension commitments, which are not covered by insurance, are calculated and stated as the capitalized value of the actual pensions. Other provisions are made to the extent that at the yearend unsettled claims remain from customers or risk of claims concerning actual matters. Moreover, amounts are provided for restructuring decided which have not yet been completed. Operating leases The company has chosen IAS 17 as interpretation basis for recognition of leases. Lease payments on operating leases are recognized on a straight-line basis in the income statement over the term of the lease. Other financial liabilities Other debt is recognized at cost at the time of contracting the debt. Subsequently, it is stated at amortized cost, which in respect of short and non-interest-bearing liabilities and of variable, interest bearing liabilities usually corresponds to the nominal value. Cash flow statement The cash flow statement shows the Company's cash flows for the year broken down by operating, investing and financing activities, changes for the year in cash and cash equivalents as well as the Company's cash and cash equivalents at the beginning and end of the year. Cash flows from operating activities are calculated as the net profit/loss for the year adjusted for noncash operating items such as depreciation, amortization and impairment losses, provisions as well as changes in working capital, interest received and paid and corporation tax paid. Working capital comprises current assets less short-term debt excluding items included in cash and cash equivalents. Cash flows from investing activities comprise cash flows from acquisitions and disposals of intangible assets, property plant and equipment as well as fixed asset Investments. Cash flows from financing activities comprise cash flows from the raising and repayment of long-term debt as well as payment of dividend to shareholders. Cash and cash equivalents comprise "Cash at bank and in hand". The cash flow statement cannot be solely derived from the published financial records. Annual report Auditor's report on audited financial statements ParsePort XBRL Converter 2025-05-01 2025-12-31 2024-05-01 2025-04-30 2026-06-29 Reporting class C, large enterprise 2026-06-29 33963556 Deloitte DK Weidekampsgade 6 2300 København S Opinion Basis for Opinion 2026-06-29 33963556 Deloitte Statsautoriseret Revisionspartnerselskab City Tower, Værkmestergade 2 8000 Aarhus C Free cash flows generated from operations and investment before financing Free cash flows generated from operations and investment before financing