66089215 2024-10-01 2025-09-30 66089215 2024-10-01 2025-09-30 memberOfBoardIdentifier_executive_board_1 66089215 2024-10-01 2025-09-30 memberOfBoardIdentifier_executive_board_2 66089215 2024-10-01 2025-09-30 memberOfBoardIdentifier_executive_board_3 66089215 2024-10-01 2025-09-30 memberOfBoardIdentifier_board_of_director_1 66089215 2024-10-01 2025-09-30 memberOfBoardIdentifier_board_of_director_2 66089215 2024-10-01 2025-09-30 memberOfBoardIdentifier_board_of_director_3 66089215 2024-10-01 2025-09-30 memberOfBoardIdentifier_board_of_director_4 66089215 2024-10-01 2025-09-30 1 66089215 2022-10-01 2023-09-30 66089215 2022-01-01 2022-09-30 66089215 2021-01-01 2021-12-31 66089215 2023-09-30 66089215 2022-09-30 66089215 2021-12-31 66089215 2023-10-01 2024-09-30 66089215 2025-09-30 66089215 2024-09-30 66089215 2024-10-01 fsa:ContributedCapitalMember 66089215 2024-10-01 fsa:ReserveForDevelopmentExpenditureMember 66089215 2024-10-01 fsa:RetainedEarningsMember 66089215 2024-10-01 66089215 2024-10-01 2025-09-30 fsa:ContributedCapitalMember 66089215 2024-10-01 2025-09-30 fsa:ReserveForDevelopmentExpenditureMember 66089215 2024-10-01 2025-09-30 fsa:RetainedEarningsMember 66089215 2025-09-30 fsa:ContributedCapitalMember 66089215 2025-09-30 fsa:ReserveForDevelopmentExpenditureMember 66089215 2025-09-30 fsa:RetainedEarningsMember 66089215 2024-10-01 fsa:CompletedDevelopmentProjectsMember 66089215 2024-10-01 fsa:DevelopmentProjectsInProgressMember 66089215 2024-10-01 2025-09-30 fsa:CompletedDevelopmentProjectsMember 66089215 2024-10-01 2025-09-30 fsa:DevelopmentProjectsInProgressMember 66089215 2025-09-30 fsa:CompletedDevelopmentProjectsMember 66089215 2025-09-30 fsa:DevelopmentProjectsInProgressMember 66089215 2024-10-01 fsa:LandAndBuildingsMember 66089215 2024-10-01 fsa:FixturesFittingsToolsAndEquipmentMember 66089215 2024-10-01 2025-09-30 fsa:LandAndBuildingsMember 66089215 2024-10-01 2025-09-30 fsa:FixturesFittingsToolsAndEquipmentMember 66089215 2025-09-30 fsa:LandAndBuildingsMember 66089215 2025-09-30 fsa:FixturesFittingsToolsAndEquipmentMember 66089215 2024-10-01 fsa:InvestmentsInGroupEnterprisesMember 66089215 2023-10-01 fsa:InvestmentsInGroupEnterprisesMember 66089215 2024-10-01 2025-09-30 fsa:InvestmentsInGroupEnterprisesMember 66089215 2023-10-01 2024-09-30 fsa:InvestmentsInGroupEnterprisesMember 66089215 2025-09-30 fsa:InvestmentsInGroupEnterprisesMember 66089215 2024-09-30 fsa:InvestmentsInGroupEnterprisesMember 66089215 2024-10-01 2025-09-30 relatedEntityIdentifier_sub_1 fsa:SubsidiaryMember 66089215 2025-09-30 relatedEntityIdentifier_sub_1 fsa:SubsidiaryMember 66089215 2025-09-30 1 fsa:SubsidiaryMember 66089215 2025-09-30 fsa:OtherLongtermPayablesMember 66089215 2024-09-30 fsa:OtherLongtermPayablesMember 66089215 2025-09-30 fsa:OtherShorttermPayablesMember 66089215 2024-09-30 fsa:OtherShorttermPayablesMember iso4217:DKK pure xbrli:pure Årsrapport 33771231 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab Strandvejen 44 2900 Hellerup 2024-10-01 2023-10-01 2025-09-30 2024-09-30 Regnskabsklasse C, mellemstor virksomhed Revisionspåtegning true 2026-02-20 Klaus Kromann Knudsen The Executive Board and Board of Directors have today considered and adopted the Annual Report of MITA-TEKNIK A/S for the financial year 1 October 2024 - 30 September 2025. The Annual Report is 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 at 30 September 2025 of the Company and of the results of the Company operations for 2024/25. In our opinion, Management's Review includes a true and fair account of the matters addressed in the Review. We recommend that the Annual Report be adopted at the Annual General Meeting. Rødkærsbro 2026-02-20 Klaus Kromann Knudsen Robert Lewis Yeager Guido Wink Managing Director Director Director James Alistair Fraser Richard Rodney Nelson Guido Wink Chairman Richard William Kephart Jr. To the shareholder of MITA-TEKNIK A/S Opinion We have audited the Financial Statements of MITA-TEKNIK A/S for the financial year 1 October 2024 - 30 September 2025, which comprise income statement, balance sheet, statement of changes in equity and notes, including a summary of significant accounting policies. The Financial Statements are prepared in accordance with the Danish Financial Statements Act.In our opinion, the Financial Statements give a true and fair view of the financial position of the Company at 30 September 2025 and of the results of the Company’s operations for the financial year 1 October 2024 - 30 September 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 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 is responsible for the preparation of financial statements that give a true and fair view in accordance with the Danish Financial Statements Act, and for such internal control as Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.In preparing the Financial Statements, Management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting in preparing the Financial Statements unless Management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Our objectives are to obtain reasonable assurance about whether the Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Financial Statements.As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional 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 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. Management is responsible for Management’s Review.Our opinion on the Financial Statements does not cover Management’s Review, and we do not express any form of assurance conclusion thereon.In connection with our audit of the Financial Statements, our responsibility is to read Management’s Review and, in doing so, consider whether Management’s Review is materially inconsistent with the Financial Statements or our knowledge obtained during the audit, or otherwise appears to be materially misstated.Moreover, it is our responsibility to consider whether Management’s Review provides the information required under the Danish Financial Statements Act.Based on the work we have performed, in our view, Management’s Review is in accordance with the Financial Statements and has been prepared in accordance with the requirements of the Danish Financial Statements Act. We did not identify any material misstatement in Management’s Review. Aarhus 2026-02-20 KPMGStatsautoriseret Revisionspartnerselskab 25578198 Katrine Gybel State Authorised Public Accountant mne45848 MITA-TEKNIK A/S Håndværkervej 1 8840 Rødkærsbro +45 86 65 86 00 mtmail@Emerson.com 66089215 Viborg Frederiks Plads 42 8000 Aarhus Seen over a 5-year period, the development of the Company is described by the following financial highlights:In connection with changes regarding the merger between Mita-Teknik A/S and Mita-Teknik, Udlejning ApS, the comparative figures for 2021, 2022 and 2022/23 have not been restated. See the description under accounting policies. 26603000 21670000 32149000 -19923000 -12057000 -12557000 -991000 725000 312000 -16076000 -8287000 -8794000 112455000 111363000 104910000 436000 0 1903000 0 317000 10899000 26975000 35262000 48 47 48 49 50 0.599 0.598 0.097 0.242 0.336 0.088 0.503 0.849 0.266 0.499 Operating reviewPrincipal activitiesThe principal activities of the company include development, production, sale and service of control and monitoring solutions.The operation takes place from the company's head quarter in Rødkærsbro, Denmark, as well as from our subsidiaries in Ukraine. Operations are supported with sales and technical support in our main markets as well as Emerson's sales organization worldwide. As a system supplier and sub-supplier, Mita-Teknik works in the areas of sustainable energy, marine, mechanical engineering, and other industries.Mita-Teknik has gained traction as an important supplier to the wind turbine and solar industry in Europe, United States and AsiaDevelopment in activities and financial positionLoss for the year (including comparison with forecasts previously announced)Mita-Teknik A/S was acquired by Emerson Electric Co. on December 15, 2021. While integration into Emerson is still ongoing, 2025 has been a year of significant growth, with synergies materializing across multiple areas resulting also in material improvement of the financial numbers.Gross profit for the year amounted to TDKK 47,456 against TDKK 30,648 the previous year. The company reported a loss before tax of TDKK 2,770 for the year against a loss of TDKK 25,184 for the previous year. The Company’s loss before tax is close to the initial expectations set forth in the annual report for 2024 (a profit of 2 million before tax) and the management is pleased with the positive financial development during the year. These results strengthen our confidence in the company’s direction and future performance.2024/25 has been characterized by several external impacts. The globalization of our business has adversely affected the cost of business, while also the number of customer projects has increased. The situation with regards to materials, the price level remains high, and transport costs had impacted on earnings for the full year 2025. The acquisition by Emerson Co. has led to increased investments in the business and thus had an impact on our earnings in the short term. The integration of our operational footprint into Emerson’s Supply Chain initially impacted gross profit negatively in 2024/25. However, we anticipate significant benefits from this restructuring in 2025/26 and beyond.We have initiated a restructuring of our sales model, transferring direct sales activities to Emerson’s global sales offices. This transition is expected to be fully implemented during the 2025/26 financial year. It is expected that subscription revenue will impact the coming year’s gross profit and profits markedly.On 29 September 2025, a merger between Mita-Teknik A/S and Mita-Teknik, Udlejning ApS was approved, with Mita-Teknik A/S continuing as the legal entity. The merger was executed with effect from 1 October 2024. The financial impact is minimal, as Mita-Teknik,Udlejning ApS had only limited activity. Comparative figures for prior years have been adjusted accordingly.The property in Ukraine owned by Mita-Teknik Udlejning ApS was contributed to the subsidiary Mita-Teknik Ltd during the year as a capital increase in the form of non-cash assets.Despite challenging market conditions, we continue to see positive developments in the Renewable industry, particularly in India, Europe, North America, and other key regions. As part of our strategic realignment, we have closed our Mita-Teknik A/S entity in China (dissolved in August 2025) and transitioning to operate exclusively within Emerson facilities. While management is satisfied with our overall progress, this year’s earnings have fallen within expectations due to above conditions.The ultimate Parent Company, Emerson Electric Co., has issued a letter of support, undertaking to provide liquidity as may be required to enable the Company to meet its obligations during the financial year 2025/26.Intellectual capitalThe company develops and manufactures high-tech products based on the know-how accumulated in the cooperation with the company’s customers and in market analyses. The company has highly specialized employees, with extensive experience in the areas of control, regulation and monitoring, including specialists in the company’s business areas of sustainable energy, marine, mechanical engineering and other industries. The employees’ competencies are reinforced and continuously maintained by means of challenging development projects, joint developments with customers and internal/external training. In addition to the company’s own skill set, we occasionally purchase expertise as part of the development work with new products and hire students as interns as part of their training in relevant specialties.Environmental mattersOccupational safety and health conditions and prevention of pollution are continuously discussed in, among other things, the company’s Joint Consultative Committee and Safety Committee. The Company is insured against material damages and is in close dialogue with authorities and insurance companies with an eye to continued improved coverage of insurable risks.OutlookDespite expectations of increased business activity and a strong order book, high material costs, ongoing integration efforts, and the war in Ukraine are expected to negatively impact earnings in 2025/26.The financial year 2025/26 (12 months) is expected to crystallize a profit before tax of DKK 5 million. Significant global investment in renewables continues, with major utilities increasingly adopting a portfolio strategy and partnering with companies like Emerson to drive their initiatives. A key differentiator is the expansion of Mita-Teknik A/S software beyond wind into PV and BESS, positioning us for substantial growth in these areas.Building on the strong growth achieved in 2024/25 and the promising outlook ahead, we will further leverage Emersons global capabilities to support capacity expansion and meet rising demand.Research and development activitiesThe company continuously implements several development projects that account for a significant part of the overall expenditure. The operations in the period 2024/25 have, as expected, been positively affected by the new products launched on the market in recent years.Financial InstrumentsThe Company’s risk exposureFinancial risks:The Company operates with a low risk profile, to the effect that any foreign exchange, interest rate and credit risks can only arise based on market conditions. Management continuously evaluates if the Company has adequate capital resources, and the Board of Directors also continuously evaluates if this capital structure complies with the interests of the company and its stakeholders. This has led to a group contribution in 2025/26 to secure an adequate capital structure in the years to come. The Company’s foreign trade is primarily conducted in EUR and USD, which is why earnings, cash flows and equity can be impacted by foreign exchange rate developments. The Company does not have any speculative foreign exchange rate holdings.Market risks:The wind turbine industry is subject to political regulations, with all entailing risks. The Company is particularly exposed to downturns in the installation of new wind turbines and the ability to form long-term partnerships with the company’s customers. The Company manufactures to order custom-made high-tech products and has a highly flexible workforce that enables the Company to quickly react to market changes. The Company's investments in activities outside the wind turbine area generate a better balance in the company’s activity level and production capacity.Risks related to quality/customer claims:The Company’s customer segments place severe demands on product quality to safeguard stable and efficient operations. Therefore, all operational companies with the Company are ISO 9001 certified.Subcontracting risks:The Company aims to have several different suppliers for its most important sub-components and continuously canvasses the market for alternative suppliers of such components in order to ensure reductions in both price and dependence on individual suppliers.Risk management and internal control:The Company's Board of Directors and Executive Board are in an ongoing dialogue on important conditions in the company, including on risks that are considered to have the potential to materially impact the company. As part of the annual ISO 9001 audit, the Management assesses business risks.Events after the balance sheet dateWe see great opportunities in being part of Emerson and the possibilities that come with it. We expect this to have a positive impact on our business moving into 2025/26. On this note, no events have occurred after the balance sheet date that may influence the assessment of the annual report for the financial period 2024/25 47456000 30648000 40432000 36989000 11044000 11265000 -4020000 -17606000 0 -2950000 1250000 0 0 4628000 -2770000 -25184000 3079000 -4885000 -5849000 -20299000 13135000 17310000 7808000 2297000 20943000 19607000 8408000 13736000 100000 146000 8508000 13882000 7465000 2950000 7465000 2950000 36916000 36439000 8957000 10622000 5851000 4000000 3434000 9037000 18242000 23659000 7358000 9860000 42473000 40127000 32000 521000 863000 4888000 789000 1045000 51515000 56441000 11000 12000 69768000 80112000 106684000 116551000 1200000 1200000 16335000 15293000 46347000 53240000 63882000 69733000 4585000 2545000 1083000 1375000 5668000 3920000 2821000 2783000 2821000 2783000 0 120000 12174000 7866000 5696000 15224000 9065000 11222000 7378000 5683000 34313000 40115000 37134000 42898000 106684000 116551000 1200000 15293000 55624000 72117000 0 0 -2386000 -2386000 1,20015,29353,23869,731 0 0 1042000 1042000 0 1042000 0 1042000 0 0 -5849000 -5849000 1200000 16335000 46347000 63882000 35015000 32243000 5145000 4496000 272000 250000 40432000 36989000 48 47 In accordance with section 98b(3) of the Danish Financial Statements Act, remuneration of the Executive Board and the Board of Directors is not disclosed, as only one member of the Executive Board and Board of Directors is remunerated in his capacity as board member. Incentive schemesThe Parent Company (Emerson Electric Co.) has established a share-based payment program in the form of Restricted Stock Units (RSUs) for management and selected key employees of Mita-Teknik A/S. The RSUs granted are subject to cliff vesting. The RSU program vests participants with the right to receive shares in Emerson Electric Co. The awards are time-based, and thus the requirement is the passage of time and theretaining of employment with Mita-Teknik A/S. There are no performance requirements for these awards.• On 31 January 2022, 1,500 RSUs were granted. These RSUs will vest fully at the end of a three-year period.• On 6 November 2023, 600 RSUs were granted. These RSUs will vest in equal installments of one-third each year over a three-year period. 200 RSUs were vested on 6 November 2024.• On 4 November 2024, 982 RSUs were granted. These RSUs will vest in equal installments on one-third each year over a 3 year period. Emerson Electric Co. will retain any costs related to the share-based payment program. 619000 0 631000 0 1250000 0 0 2195000 0 2433000 0 4628000 -863000 -4885000 169000 0 1902000 5090000 1871000 -5090000 3079000 -4885000 -5849000 -20299000 161530000 2297000 3083000 7808000 2297000 -2297000 166910000 7808000 144220000 0 9555000 0 153775000 0 13135000 7808000 Completed development projectsCompleted development projects relate to the development of new technology and software. All projects are commercialised and generate positive cash flows.Development projects in progressDevelopment projects in progress relate to the development of new technology and software to be launched subsequent to the balance sheet date. All projects have a commercial perspective, and positive cash flows are expected from the projects. 44769000 8089000 436000 0 8195000 0 37010000 8089000 31033000 7944000 1444000 45000 3875000 0 28602000 7989000 8408000 100000 5900000 12271000 0 -6371000 4515000 0 2950000 0 7465000 5900000 -2950000 0 0 -2950000 -2950000 0 0 -2950000 7465000 2950000 Investments in subsidiaries are specified as follows:4,6431,064* The financial figures relate to the latest available financial statement for 2024. Mita-Teknik (Ningbo) Co., Ltd. was liquidated in August 2025.Mita-Teknik, Udlejning ApS and Mita-Teknik A/S was merged with effect from 1 October 2024 with Mita-Teknik A/S as the continuing legal entity. Mita-Teknik Ltd. (*) Ukraine 1.00 4643000 1064000 Prepayments comprise prepayment of costs incurred relating to subsequent financial years with regard to insurance, etc. Deferred tax liabilities at 1 October2,545-2,545Amounts recognised in the income statement for the year2,0405,090Deferred tax liabilities at 30 September4,5852,545 Other provisions comprise warranty commitments typically relating to warranty for products sold.Other provisions at 1 October1,375771Provisions in the year, net-2926041,0831,375The provisions are expected to mature as follows:Provisions falling due after 5 years0000 Payments due within 1 year are recognised in short-term debt. Other debt is recognised in long-term debt.The debt falls due for payment as specified below:Other payables10,1998,466 0 0 2821000 2783000 2821000 2783000 7378000 5683000 Rental and lease obligationsMita-Teknik A/S has entered into lease agreements for premises and operating equipment. The total premises obligation amounted to TDKK 60 at 30 September 2025, all due for payment within 12 months. The total operating equipment obligation amounted to TDKK 534 at 30 September 2025 (30 September 2024: TDKK 518), of which TDKK 168 falls due for payment within 12 months from the balance sheet date. Operating lease obligations fall due within 39 months from the balance sheet date.Other contingent liabilitiesThe Company is jointly taxed with other Danish companies in the Emerson Group. As a wholly-owned subsidiary, together with the other companies included in the joint taxation, the Company has joint and several unlimited liability for Danish corporation taxes and withholding taxes on dividends. Any subsequent correction of the taxable jointly taxed income or withholding taxes could result in an adjustment of the Company's liability. Controlling interestEmerson Electric Co., 8000 W. Florissant Ave., St. Louis, 63136 Missouri, USAUltimate parent companyEmerson International Holding Company Limited, Accuris House, 44 Baker Street, London W1U 7AL, Great BritainParent CompanyTransactionsSale of goods to group entities46,13520,672Purchase of goods from group entities19,85745,375Sale of services to group entities32,20553,227Purchase of services from group entities28,34025,515In accordance with section 98b(3) of the Danish Financial Statements Act, remuneration of the Executive Board and the Board of Directors is not disclosed as only one member of the Executive Board and Board of Directors is receiving remuneration in its capacity as Executive Board member.Payables and receivables to/from group entities are disclosed in the balance sheet, and interest income to group entities is disclosed in note 3. Consolidated Financial StatementsThe Company is included in the Group Annual Report of the Parent Company of the largest and smallest group:Emerson Electric Co.Missouri, USA No events materially affecting the assessment of the Annual Report have occurred after the balance sheet date. The Annual Report of MITA-TEKNIK A/S for 2024/25 has been prepared in accordance with the provisions of the Danish Financial Statements Act applying to medium-sized enterprises of reporting class C.The accounting policies applied remain unchanged from last year.The Financial Statements for 2024/25 are presented in TDKK. With reference to section 112 of the Danish Financial Statements Act and to the consolidated financial statements for 2024/25 of Emerson Electric Co, the Company has not prepared consolidated financial statements. 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 Emerson Electric Co.. Recognition and measurementRevenues are recognised in the income statement as earned. Furthermore, value adjustments of financial assets and liabilities measured at fair value or amortised cost are recognised. Moreover, all expenses incurred to achieve the earnings for the year are recognised in the income statement, including depreciation, amortisation, impairment losses and provisions as well as reversals due to changed accounting estimates of amounts that have previously been recognised in the income statement.Assets are recognised in the balance sheet when it is probable that future economic benefits attributable to the asset will flow to the Company, and the value of the asset can be measured reliably.Liabilities are recognised in the balance sheet when it is probable that future economic benefits will flow out of the Company, and the value of the liability can be measured reliably.Assets and liabilities are initially measured at cost. Subsequently, assets and liabilities are measured as described for each item below. Business combinationsPooling of interestsIntragroup business combinations are accounted for under the pooling-of-interests method. Under this method, the two enterprises are combined at carrying amounts, and no differences are identified. Any consideration which exceeds the carrying amount of the acquired enterprise is recognised directly in equity. The pooling-of-interests method is applied as if the two enterprises had always been combined by restating comparative figures. Translation policiesOn initial recognition, transactions denominated in foreign currencies are translated at the exchange rates at the transaction date. Foreign exchange differences arising between the exchange rates at the transaction date and the date of payment are recognised in the income statement as financial income or financial expenses.Receivables, payables and other monetary items denominated in foreign currencies are translated at the exchange rates at the balance sheet date. The difference between the exchange rates at the balance sheet date and the date at which the receivable or payable arose or was recognised in the latest financial statements is recognised in the income statement as financial income or financial expenses. RevenueWhen sales contracts that consist of several separate components are concluded, the contract amount is allocated by the individual components based on the relative fair value approach. The separate components are recognised as revenue when the criteria applicable to the sale of goods and services have been met.A contract is allocated by the individual components when the fair value of these individual components can be reliably measured and when each component represents a separate value to the buyer. Sales components are deemed to represent a separate value to the buyer when the component is individually identifiable and is normally sold separately.Income from the sale of goods for resale and finished goods is recognised in revenue when transfer of the most significant rewards and risks to the buyer has taken place and provided that the income can be reliably measured and payment is expected to be received. The date of the transfer of the goods relies on standard terms of delivery.Income from the sale of services, comprising service contracts, is recognised in revenue on a straightline basis as the services are delivered in the form of an indefinite number of actions over a specific period of time.Revenue is measured at fair value of the agreed consideration ex. VAT and taxes charged on behalf of third parties. All discounts granted are recognised in revenue. Cost of goods soldCost of sales comprises costs incurred to generate revenue for the year. This item also comprises direct and indirect costs for finished goods and changes in the inventory of goods for resale.Work for own account and capitalisedWork performed for own account and capitalised comprises internal costs directly attributable to the development of intangible assets. The item includes salaries incurred during the development phase. Capitalised work is recognised as an asset in the balance sheet when the recognition criteria are met and is subsequently depreciated over the expected useful life of the asset. Other external expensesOther external costs comprise distribution costs and costs related to sales, sales campaigns, administration,office premises, operating leases, etc. Gross profitPursuant to section 32 of the Danish Financial Statements Act, the Company has decided only to disclose gross profit. Staff costs comprise wages and salaries, including holiday allowance, pension and other social security costs, etc., to the Company's employees. Amortisation, depreciation and impairment lossesAmortisation, depreciation and impairment losses comprise depreciation and impairment of property, plant and equipment. Other operating income and expensesOther operating income and expenses comprises items secondary to the activities of the Company, including gains on the disposal of intangible assets and property, plant and equipment, payroll refunds and recharge of costs within the Group. Income from investments in subsidiariesIncome from equity investments in group entities comprise dividends received from subsidiaries and writedown of cost prices lead by impairment assessment.Dividends from equity investments in subsidiaries measured at cost are recognised as income in the parent company income statement in the financial year when the dividends are declared. Financial income and expenses comprise interest income and expense, gains and losses on receivables,payables and transactions denominated in foreign currencies, amortisation of liabilities as well as surcharges and refunds under the on-account tax scheme, etc. Tax on profit/loss for the yearThe Company is subject to the Danish rules on compulsory joint taxation of the Group's Danish subsidiaries. The subsidiaries are included in the joint taxation from the date when they are included in the consolidated financial statements and up to the date when they are excluded from the consolidation.The affiliated company, Damcos Holding A/S, is the administrative company for the joint taxation and consequently settles all payments of Danish corporation tax to the tax authorities.On payment of joint taxation contributions, current Danish corporation tax is allocated between the jointly taxed entities in proportion to their taxable income. Entities with tax losses receive joint taxation contributions from entities that have used the losses to reduce their own taxable profit.Tax for the year comprises current corporation tax for the year and changes in deferred tax, including changes in tax rates. The tax expense relating to the profit/loss for the year is recognised in the income statement, and the tax expense relating to amounts directly recognised in equity is recognised directly inequity. Intangible fixed assetsDevelopment projectsDevelopment costs comprise costs, wages, salaries and amortisation directly and indirectly attributable to development activities.Development projects that are clearly defined and identifiable, where the technical feasibility, sufficient resources and a potential future market or development opportunities are evidenced, and where the Company intends to produce, market or use the project, are recognised as intangible assets provided that the cost can be measured reliably and that there is sufficient assurance that future earnings can cover production costs, selling costs and administrative expenses as well development costs. Other development costs are recognised in the income statement as incurred.Development costs recognised in the balance sheet are measured at cost less accumulated amortisation and impairment losses.Upon completion of development work, development costs are amortised on a straight-line basis over the estimated useful lives. The amortisation period is usually 3-5 years, which is fixed on the basis of experience gained by Management and longest for strategically acquired projects. Land and buildings, plant and machinery and fixtures and fittings, tools 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:Buildings25 years Plant and machinery3-5 years Other fixtures and fittings, tools and equipment3-10 years The useful life and residual value are reassessed annually. Changes are treated as accounting estimates, and the effect on depreciation is recognised prospectively.Land is not depreciated.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. Impairment of fixed assetsThe carrying amount of intangible assets and property, plant and equipment as well as equity investments ingroup entities is subject to an annual test for indications of impairment other than the decrease in value reflected by depreciation or amortisation.Impairment tests are conducted of individual assets or groups of assets when there is an indication that they may be impaired. Write-down is made to the recoverable amount if this is lower than the carrying amount.The recoverable amount is the higher of an asset's net selling price and its value in use. The value in use is determined as the present value of the forecast net cash flows from the use of the asset or the group of assets, including forecast net cash flows from the disposal of the asset or the group of assets after the end of the useful life. Investments in subsidiariesEquity investments in group entities are measured at cost. InventoriesInventories are measured at cost in accordance with the FIFO method.Goods for resale and raw materials and consumables are measured at cost, comprising purchase price plus delivery costs.Finished goods and work in progress are measured at cost, comprising the cost of raw materials,consumables, direct wages and salaries and indirect production overheads. Indirect production overheads comprise indirect materials and wages and salaries as well as the maintenance of depreciation of production machinery, buildings and equipment as well as factory administration and management. Borrowing costs are not included in cost.Where the net realisable value is lower than cost, inventories are written down to this lower value. The net realisable value of inventories is calculated as the sales amount less costs of completion and costs necessary to make the sale and is determined taking into account marketability, obsolescence and development in expected selling price. Receivables are measured at amortised cost.Write-down is made for bad debt losses where there is an objective indication that a receivable has been impaired. If there is an objective indication that an individual receivable has been impaired, write-down is made on an individual basis. PrepaymentsPrepayments comprise prepayment of costs incurred relating to subsequent financial years. Reserve for development costsThe reserve for development costs comprises capitalised development costs. The reserve cannot be used for dividends, distribution or to cover losses. If the recognised development costs are sold or in other ways excluded from the Company's operations, the reserve will be dissolved and transferred directly to the distributable reserves under equity. If the recognised development costs are written down, the part of there serve corresponding to the write-down of the developments costs will be reversed. If a write-down of development costs is subsequently reversed, the reserve will be re-established. The reserve is reduced by amortisation of capitalised development costs on an ongoing basis.DividendsThe expected dividend payment for the year is disclosed as a separate item under equity. ProvisionsProvisions comprise anticipated costs of warranty commitments. Provisions are recognised when, as a result of past events, the Company has a legal or a constructive obligation, and it is probable that there may be outflow of resources embodying economic benefits to settle the obligation. Provisions are measured at value in use.Warranties comprise obligations to make good any defects within the warranty period. Provisions are recognised based on the Company's experience with warranties. Provisions expected to be maintained for more than one year from the balance sheet date are discounted at a rate reflecting risk and the due date for payment. Deferred tax assets and liabilitiesDeferred 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.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. Current tax receivables and liabilitiesCurrent tax receivables and liabilities are recognised in the balance sheet at the amount calculated on the basis of the expected taxable income for the year adjusted for tax on taxable incomes for prior years. Tax receivables and liabilities are offset if there is a legally enforceable right of set-off and an intention to settle on a net basis or simultaneously. Financial liabilities are recognised at cost at the date of borrowing, corresponding to the proceeds received less transaction costs paid. In subsequent periods, the financial liabilities are measured at amortised cost using the effective interest method. Accordingly, the difference between cost and the nominal value is recognised in the income statement over the term of the loan together with interest expenses.Other liabilities are measured at amortised cost, which usually corresponds to nominal value. Financial HighlightsExplanation of financial ratiosSolvency ratioEquity at year end x 100 / Total assets at year endReturn on equityNet profit for the year x 100 / Average equity