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2025-12-31 e:DepositsLongtermInvestmentsAndReceivablesMember iso4217:DKK xbrli:pure 0 0 0 0 BDO Statsautoriseret Revisionspartnerselskab Rabalderstræde 7, 2. sal DK-4000 Roskilde 45719375 2026-06-30 Frederik Petersen Årsrapport D LINE A/S Jyllingevej 59, kl. 2720 Vanløse Den uafhængige revisors erklæring 32948367 2010-06-03 Copenhagen 2025-01-01 2025-12-31 2024-01-01 2024-12-31 BDO Statsautoriseret Revisionspartnerselskab Rabalderstræde 7, 2. sal 4000 Roskilde Today the Board of Directors and Executive Board have discussed and approved the Annual Report of D LINE A/S for the fi­nan­ci­al year 1 January  - 31 December 2025. The Annual Report is presented in accor­dance with the Da­nish Fi­nan­ci­al State­ments Act. In our opinion the Con­so­li­da­ted Fi­nan­ci­al Sta­te­ments and the Pa­rent Com­pa­ny Fi­nan­ci­al Sta­te­ments give a true and fair view of Group's and the Company's assets, liabilities and financial position at 31 December 2025 and of the results of Group's and the Company's operations as well as the consolidated cash flows of the Group for the fi­nan­ci­al year 1 January  - 31 December 2025. The Management Commentary includes in our opinion a fair presentation of the matters dealt with in the Commentary. We recommend the Annual Report be approved at the Annual General Meeting. Vanløse 2026-06-30 Peter Bjertrup Jensen Frederik Petersen Chairman Hans Christian Petersen Martin Meesenburg Morten Balsby Stefan Ehrlich-Adam To the Shareholders of D LINE A/S Konklusion We ha­ve au­di­ted the Con­so­li­da­ted Fi­nan­ci­al Sta­te­ments and the Pa­rent Com­pa­ny Fi­nan­ci­al Sta­te­ments of D LINE A/S for the fi­nan­ci­al year 1 January - 31 December 2025, which comprise income statement, Balance Sheet, sta­te­ment of chan­ges in e­qui­ty, no­tes and a summary of significant accounting policies for both the Group and the Parent Company, as well as consolidated statement of cash flows for the Group. The Con­so­li­da­ted Fi­nan­ci­al Sta­te­ments and the Pa­rent Com­pa­ny Fi­nan­ci­al Sta­te­ments are pre­pared in accordance with the Da­nish Fi­nan­ci­al State­ments Act.   In our o­pi­ni­on, the Con­so­li­da­ted Fi­nan­ci­al Sta­te­ments and the Pa­rent Com­pa­ny Fi­nan­ci­al Sta­te­ments give a true and fair view of the assets, liabilities and financial position of the Gro­up or the Com­pa­ny at 31 December 2025 and of the results of the Group and the Pa­rent Com­pa­ny's operations as well as the consolidated cash flows of the Group for the fi­nan­ci­al year 1 January - 31 December 2025 in accordance with the Da­nish Fi­nan­ci­al State­ments Act.   Basis for OpinionGrundlag for konklusion We conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the “Auditor’s Responsibilities for the Audit of the Con­so­li­da­ted Fi­nan­ci­al Sta­te­ments and the Pa­rent Com­pa­ny Fi­nan­ci­al Sta­te­ments” section of our report. We are independent of the Gro­up in accordance with the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (including International Independence Standards) (IESBA Code), together with the ethical requirements that are relevant to our audit of the Financial Statements in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We be­lie­ve that the e­vi­den­ce we ha­ve ob­tai­ned is suf­fi­ci­ent and ap­prop­ria­te to pro­vi­de a ba­sis for our con­clu­si­on.   Grundlag for konklusion Emphasis of matter We draw attention to the note "Going concern assumptions" in the financial statements, which outlines the assumptions underlying management’s preparation of the financial statements on a going concern basis. Our conclusion is not modified in respect of this matter.   We also draw attention to the note "Information on significant uncertainties at recognition and measurement" in the financial statements, which describes the uncertainty related to the recognized deferred tax asset of DKK 8 million. Our conclusion is not modified in respect of this matter.   Ma­na­ge­ment's Re­spon­si­bi­li­ti­es for the Con­so­li­da­ted Fi­nan­ci­al Sta­te­ments and the Pa­rent Com­pa­ny Fi­nan­ci­al Sta­te­ments Management is responsible for the preparation of Con­so­li­da­ted Fi­nan­ci­al Sta­te­ments and the Pa­rent Com­pa­ny Fi­nan­ci­al Sta­te­ments that give a true and fair view in accordance with the Da­nish Fi­nan­ci­al State­ments Act and for such Internal control as Ma­na­ge­ment determines is necessary to enable the preparation of Con­so­li­da­ted Fi­nan­ci­al Sta­te­ments and the Pa­rent Com­pa­ny Fi­nan­ci­al Sta­te­ments that are free from material misstatement, whether due to fraud or error.   In preparing the Con­so­li­da­ted Fi­nan­ci­al Sta­te­ments and the Pa­rent Com­pa­ny Fi­nan­ci­al Sta­te­ments, Ma­na­ge­ment is responsible for assessing the Gro­up's and the Pa­rent Com­pa­ny's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting in preparing the Con­so­li­da­ted Fi­nan­ci­al Sta­te­ments and the Pa­rent Com­pa­ny Fi­nan­ci­al Sta­te­ments unless Management either intends to liquidate the Gro­up or the Com­pa­ny or to cease operations, or has no realistic alternative but to do so.   Our objectives are to obtain reasonable assurance about whether the Con­so­li­da­ted Fi­nan­ci­al Sta­te­ments and the Pa­rent Com­pa­ny Fi­nan­ci­al Sta­te­ments as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Con­so­li­da­ted Fi­nan­ci­al Sta­te­ments and the Pa­rent Com­pa­ny Fi­nan­ci­al Sta­te­ments.   As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:   Identify and assess the risks of material misstatement of the Con­so­li­da­ted Fi­nan­ci­al Sta­te­ments and the Pa­rent Com­pa­ny Fi­nan­ci­al Sta­te­ments, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.   Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Gro­up's and the Pa­rent Com­pa­ny's internal control.   Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Ma­na­ge­ment.   Conclude on the appropriateness of Ma­na­ge­ment’s use of the going concern basis of accounting in preparing the Con­so­li­da­ted Fi­nan­ci­al Sta­te­ments and the Pa­rent Com­pa­ny Fi­nan­ci­al Sta­te­ments and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Gro­up's and the Pa­rent Com­pa­ny's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the Con­so­li­da­ted Fi­nan­ci­al Sta­te­ments and the Pa­rent Com­pa­ny Fi­nan­ci­al Sta­te­ments or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Gro­up and the Pa­rent Com­pa­ny to cease to continue as a going concern.   Evaluate the overall presentation, structure and contents of the Con­so­li­da­ted Fi­nan­ci­al Sta­te­ments and the Pa­rent Com­pa­ny Fi­nan­ci­al Sta­te­ments, including the disclosures, and whether the Con­so­li­da­ted Fi­nan­ci­al Sta­te­ments and the Pa­rent Com­pa­ny Fi­nan­ci­al Sta­te­ments represent the underlying transactions and events in a manner that gives a true and fair view.   Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the group as a basis for forming an opinion on the  Group Fi­nan­ci­al Sta­te­ments and the Pa­rent Com­pa­ny Fi­nan­ci­al Sta­te­ments. We are responsible for the direction, supervision and review of the audit work performed for purposes of the group audit. We remain solely responsible for our audit opinion.   We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.   Statement on Management Commentary Management is responsible for Ma­na­ge­ment Com­men­ta­ry.   Our opinion on the Con­so­li­da­ted Fi­nan­ci­al Sta­te­ments and the Pa­rent Com­pa­ny Fi­nan­ci­al Sta­te­ments does not cover Ma­na­ge­ment Com­men­ta­ry, and we do not express any form of assurance conclusion thereon.   In connection with our audit of the Con­so­li­da­ted Fi­nan­ci­al Sta­te­ments and the Pa­rent Com­pa­ny Fi­nan­ci­al Sta­te­ments, our responsibility is to read Ma­na­ge­ment Com­men­ta­ry and, in doing so, consider whether Ma­na­ge­ment Com­men­ta­ry is materially inconsistent with the Con­so­li­da­ted Fi­nan­ci­al Sta­te­ments and the Pa­rent Com­pa­ny Fi­nan­ci­al Sta­te­ments or our knowledge obtained during the audit, or otherwise appears to be materially misstated.   Moreover, it is our responsibility to consider whether Ma­na­ge­ment Com­men­ta­ry provides the information required under the Danish Financial Statements Act.   Based on the work we have performed, we conclude that Ma­na­ge­ment Com­men­ta­ry is in accordance with the Con­so­li­da­ted Fi­nan­ci­al Sta­te­ments and the Pa­rent Com­pa­ny Fi­nan­ci­al Sta­te­ments and has been prepared in accordance with the requirements of the Danish Financial Statements Act. We did not identify any material misstatement of Ma­na­ge­ment Com­men­ta­ry.   Roskilde 2026-06-30 BDO Statsautoriseret Revisionspartnerselskab 45719375 Ferass Hamade Den uafhængige revisors erklæring State Authorised Public Accountant mne35441 23939000 30286000 30932000 -2571000 4607000 7429000 -1888000 -1370000 -451000 -3691000 2869000 9589000 72127000 76422000 72589000 29143000 24288000 22114000 5442000 -2107000 3509000 4418000 -5749000 -5525000 -177000 -509000 -670000 -506000 -598000 79 74 77 82 82 111.2 116.1 107.0 104.3 111.4 28.8 38.5 40.4 31.8 30.5 -34.2 -19.7 -13.8 12.4 55.1 The ratios stated in the list of key figures and ratios have been calculated as follows:   Liquidity ratio: Current assets x 100  Current liabilities Equity ratio:  Equity (ex. minorities), at year-end x 100 Total assets, at year-end Return on equity: Profit/loss after tax x 100        Average equity Principal activities D line is a leading Danish design brand that conceives and hand crafts enduring architectural hardware, sanitary ware and solutions for barrier-free living. The designs behind the brand – which include the perfectly balanced lever handles – respond to needs, while pushing to evolve, innovate and lead in new areas.    Launched in 1971 with the coordinated line of stainless steel architectural products that Knud Holscher created for St Catherine’s College Oxford, d line has since collaborated with iconic Danish designers including Arne Jacobsen and Bjarke Ingels. The ambition of the brand is to be universally known, coveted and admired for the uncompromising endurance of its design, craftsmanship and quality.  The main activity of d line is to market premium quality stainless steel products targeted at the building industry.  d line continues to operate through its subsidiaries, including production entities in Lithuania and China and commercial operations in the UK and Denmark.    Recognition and measurement uncertainty There have been uncertainties regarding the recognition or measurement of deferred tax assets. Reference is made to the note "Information on significant uncertainties in recognition and measurement" for further details.   Development in activities and financial and economic position D line’s financial performance during 2025 remained below management expectations due to challenging market conditions and lower activity levels in several markets, particularly within the Nordic region. Project delays and changes in timing of certain large orders also impacted revenue development during the year.    Despite these challenges, d line experienced positive developments in several strategic areas. Sales of traded goods in the UK showed strong growth during the year, and key product collections including QTOO, Knud Holscher and Arne Jacobsen product lines continued to develop positively.     The second half of the year showed increased sales activity and improved order intake compared to the beginning of the year. Increased production activity during this period also resulted in higher freight and production costs   Profit/loss for the year compared to the expected development Management expected a profit of approximately DKK 2,3 million for 2025. However, the realised result for the year was a loss of approximately DKK -7,2 million, representing a significant negative deviation from expectations. The deviation is primarily attributable to lower-than-expected billing, an unfavourable market and product mix, timing shifts in project deliveries, and increased freight and production costs, including overtime and additional staffing in preparation for expected sales orders and stock rebuilding. These effects were partly offset by lower marketing and travel expenses. In addition to financial expectations, management had outlined several strategic priorities for 2025: - Continued investment in core markets and high-performing product groups: This was partially achieved. While key product lines such as QTOO, Knud Holscher and Arne Jacobsen collections developed positively compared to 2024 in UK market , overall activity levels in Nordic, were below expectations due to challenging market conditions.  - Expanded rollout of the Re-handle concept to new markets: Work continued through a range of commercial and awareness-building initiatives, including exhibiting Re-handle at Building Green (and VVS messen), developing a dedicated Re-handle brochure for architects, delivering architect presentations, completing partner training and set-up, and strengthening Re-handle communication across all d line channels and platforms. While progress was impacted by resource prioritisation and market conditions, further rollout is expected in 2026. - Enhanced sales efforts building on the 2024 foundation: This was achieved in the second half of the year, as reflected in improved order intake and increased sales activity towards year-end. However, the impact on revenue was delayed due to project timing shifts.  - Ongoing efficiency measures to maintain cost discipline: Cost control measures were implemented, including reductions in marketing and travel expenses. However, overall cost levels increased due to higher freight costs, production overtime, and additional staffing, limiting the net effect of these initiatives.  Despite the weaker-than-expected financial performance, order intake improved during the second half of the year. In addition, several projects with an estimated value of approximately DKK 18 million, originally expected in 2025, were postponed and are expected to contribute to revenue in 2026. Management considers the result for the year to be unsatisfactory but notes improving operational trends towards the end of the year.   Significant events after the end of the financial year No events have occurred after the end of the financial year of material importance for the Company's financial position.   Financial risk Market risk: D line remains exposed to cyclical construction markets in Europe and the UK. Activity remains volatile, particularly in Nordic markets.    Currency risk: D line’s core markets are primarily exposed to EUR, DKK and GBP. Purchases from suppliers are primarily made in EUR, DKK and USD. Due to ownership of 75% Novus in China Group is exposed to CNY fluctuations as well. Currency exposure is partially mitigated by matching currency inflows from customers with supplier payments in the same currencies.  Interest risk: Bank facilities remain fixed-rate. The loans from shareholders and sale leaseback are fixed-rate loans as well.    Credit risk: D line mitigates credit risk through credit insurance and by continuously assessing the creditworthiness of customers. Customers with established payment histories are granted credit terms, while new customers may be required to provide prepayments. Accounts receivable are monitored regularly and follow-up procedures are applied for overdue balances.  Supplier and liquidity risk: Vendor payments are closely monitored and prioritised based on available liquidity. Management continues to focus on optimising payment terms and maintaining close dialogue with key suppliers.  Inventory management procedures have also been strengthened in order to optimise stock levels and reduce the risk of overstocking.    Research and development activities During 2025, d line’s research and development activities focused on strengthening the company’s core product portfolio, supporting international market expansion, and ensuring the continued relevance of its design?led collections.  A key development activity was the modernisation of the wall mounted sanitary ware range, originally designed by Knud Holscher in the 1980’ies. The project involved re?engineering selected designs to improve functionality, compatibility with current consumables, and overall usability, while preserving the original design identity. Development activities were completed during the year, with market launch planned for 2025. The modernised portfolio is expected to contribute positively to future category growth of 15% by the end of 2027.  In parallel, d line continued the development and expansion of the Qtoo tap and shower collection, introducing new products and updates designed to address customer needs and new markets. Development activities for these projects were finalised during the year, with selected products launched in late 2025 and early 2026.    To support international expansion, d line carried out development work to adapt selected hardware products to North American ANSI standards. This included technical reconfiguration and testing to ensure compliance with local door and lock system requirements. Initial market launch is planned for 2026, with further adaptations expected as market presence develops.  In addition, the company carried out several smaller development projects during the year, including targeted national adaptations, materials and finishes development, and supporting product and concept initiatives. These activities address local market requirements, technical capabilities related to surface treatments, and commercial support needs.     All capitalised development costs relate to identifiable projects with clear technical objectives and expected future economic benefits. Development costs are documented through employee time registrations and directly attributable project expenses, ensuring transparency and auditability.    Future expectations Management expects improved financial performance in 2026 compared to 2025. Based on the current order book, pipeline activity and market outlook, management expects revenue growth in 2026 and a return to positive operating profit. Profit before tax is expected to be around DKK 2.5 million. The expected improvement is primarily based on the following assumptions: - Realisation of postponed projects from 2025 with an estimated value of approximately DKK 18 million. - Continued increase in order intake and sales activity observed in the second half of 2025. - Improved product mix and continued growth within key product lines such as QTOO, Knud Holscher and Arne Jacobsen - Normalisation of freight and production costs, including reduced need for overtime and temporary staffing. - Continued focus on operational efficiency and cost control measures.   At the same time, management notes that the outlook is subject to uncertainty, particularly related to: - Continued volatility in construction markets, especially in the Nordic region. - Timing and execution of large project deliveries. - Development in input costs, including freight and raw materials. - The company’s ability to convert pipeline and order intake into realised revenue. Management continues to focus on strengthening d line’s market position and expects that strategic initiatives, including further development of the Re-handle concept, will support long-term growth. 27539000 27636000 8971000 7999000 23711000 22629000 7682000 7037000 4594000 4863000 3891000 3896000 710000 1290000 0 0 -1476000 -1146000 -2602000 -2934000 0 0 -2870000 -1664000 4646000 147000 3957000 223000 3358000 2500000 0 0 7064000 2149000 6252000 1848000 -7252000 -5648000 -7767000 -6223000 370000 -180000 0 -964000 -7622000 -5468000 -7767000 -5259000 5601000 6047000 5601000 6040000 2141000 2512000 2092000 2448000 8147000 10432000 7616000 9368000 15889000 18991000 15309000 17856000 124000 136000 124000 136000 548000 854000 139000 427000 628000 706000 627000 706000 1300000 1696000 890000 1269000 0 0 9316000 10654000 0 3358000 0 0 0 0 7008000 6992000 218000 218000 218000 218000 1519000 1519000 1519000 1519000 1737000 5095000 18061000 19383000 18926000 25782000 34260000 38508000 5694000 11788000 3689000 6398000 3133000 6063000 2052000 2691000 11804000 1581000 4079000 1350000 20631000 19432000 9820000 10439000 8864000 9477000 3171000 6028000 0 0 5276000 985000 7499000 7499000 7499000 7499000 946000 223000 773000 68000 3422000 3406000 3242000 3234000 20731000 20605000 19961000 17814000 1446000 1564000 64000 242000 42808000 41601000 29845000 28495000 61734000 67383000 64105000 67003000 19277000 19277000 19277000 19277000 0 983000 0 983000 4539000 4711000 4539000 4711000 -6009000 945000 -6009000 945000 490000 345000 0 0 18297000 26261000 17807000 25916000 0 0 7018000 3644000 0 0 7018000 3644000 0 1632000 0 1632000 561000 0 561000 0 4368000 3033000 4368000 3033000 4929000 5302000 4929000 5302000 18653000 17509000 18653000 17509000 345000 0 345000 0 222000 811000 0 297000 12292000 8385000 3353000 3920000 0 0 8452000 4656000 337000 812000 0 0 509000 0 509000 0 38508000 35820000 34351000 32141000 43437000 41122000 39280000 37443000 61734000 67383000 64105000 67003000 Group DKK '000Sha­re ca­pi­talShare premium accountReserve for development costsRetained profitMinority shareholdersTotal Equity at 1 January 202519.2779834.71194534526.261 Proposed profit allocation, see note 8 -7.767145-7.622 Other legal bindingsCapitalized development costs 927-927 0Foreign exchange adjustments -342 -342 TransfersDepreciations -1.1471.147 0Allowed equalization -9839830 Tax on changes in equity 48-480 Equity at 31 December 202519.27704.539-6.00949018.297 Parent Company DKK '000Sha­re ca­pi­talShare premium accountReserve for development costsRetained profitTotal Equity at 1 January 202519.2779834.71194525.916 Proposed profit allocation, jf. note 8 -7.767-7.767 Other legal bindingsCapitalized development costs 927-9270Foreign exchange adjustments -342-342 TransfersDepreciations -1.1471.1470Allowed equalization -9839830 Tax on changes in equity 48-480 Equity at 31 December 202519.27704.539-6.00917.807 19277000 983000 4711000 945000 345000 -7767000 145000 927000 -927000 -342000 -1147000 1147000 -983000 983000 48000 -48000 19277000 0 4539000 -6009000 490000 19277000 983000 4711000 945000 -7767000 927000 -927000 -342000 -1147000 1147000 -983000 983000 48000 -48000 19277000 0 4539000 -6009000 -5468000 4594000 5269000 370000 784000 -845000 -1506000 -1199000 -398000 -126000 -228000 1674000 51000 204000 -1496000 -794000 -2172000 -176000 -509000 0 1290000 -468000 6038000 -1438000 4647000 0 829000 54000 0 542000 0 1144000 -232000 -2269000 -1519000 1645000 -1854000 1116000 -2842000 -118000 309000 1564000 1255000 1446000 1564000 1 | Going concern assumptions The Group’s most recent financial years have shown negative results. However, the Group’s gross profit has shown a positive development over recent years, increasing from 27.636 TDKK in 2024 to 27.950 TDKK in the current financial year. Furthermore, management has prepared budgets and cash flow forecasts indicating an improvement in the Group’s financial performance in the coming financial years. The management expects that the conditions are in place for further growth potential, which will also strengthen profitability.  Management has full confidence in their ability to execute their plans and budgets, thereby improving the company’s financial position. 2 | Information on significant uncertainties at recognition and measurement The Company has recognized a deferred tax asset amounting to T.DKK 7.499 as of 31 December 2025. The deferred tax asset primarily relates to tax loss carryforwards and temporary differences between the carrying amounts and tax bases of assets and liabilities. The recognition of the deferred tax asset is based on management’s assessment that the Company will generate sufficient future taxable income to utilize these tax losses and deductible temporary differences. This assessment is supported by business plans, budgets, and cash flow forecasts, which indicate an improvement in the Company’s financial performance in the coming years, driven by expected revenue growth and strengthened profitability. The approved budgets reflect a positive development in earnings, with profit before tax and taxable income expected to be positive from 2026 and increasing in the following years. Based on these projections, management expects that sufficient taxable income will be available within the foreseeable future to utilize the recognized deferred tax asset.  However, the assessment involves significant management judgment and is inherently subject to uncertainty, as it depends on assumptions regarding future market conditions, revenue development, cost levels, and overall business performance. If actual results differ materially from the assumptions applied, this may impact the value and recognition of the deferred tax asset. Management continuously monitors the underlying assumptions and will adjust the recognized amount if necessary. Based on the current information, management believes that the recognized deferred tax asset appropriately reflects its expected recoverable value.   Group Parent Company 20252024 20252024 DKK '000DKK '000 DKK '000DKK '000 3 | Staff costs Ave­ra­ge num­ber of full ti­me em­ploy­ees7974 1110 Wages and salaries 22.01921.433 6.3436.223 Pensions 1.325854 1.148688 Social security costs 357324 181108 Other staff costs 1018 1018 23.71122.629 7.6827.037 Information on management remuneration has been omitted in accordance with the exception provision in the Danish Financial Statements Act, section 98 b, subsection 3, no. 2. Staff costs are deducted with capitalization of salary costs of DKK 900k regarding development projects (2024: DKK 1.300k) 79 74 11 10 22019000 21433000 6343000 6223000 1325000 854000 1148000 688000 357000 324000 181000 108000 10000 18000 10000 18000 23711000 22629000 7682000 7037000 4 | Result from equity investments in group enterprises Result from group enterprises 00 -2.870-1.664 00 -2.870-1.664 5 | Other financial income Other interest income 4.646147 3.957223 4.646147 3.957223 4646000 147000 3957000 223000 4646000 147000 3957000 223000 6 | Other financial expenses Other interest expenses 7.0642.149 6.2521.848 7.0642.149 6.2521.848 7064000 2149000 6252000 1848000 7064000 2149000 6252000 1848000 361000 784000 0 0 9000 0 0 0 0 -964000 0 -964000 Group Parent Company 20252024 20252024 DKK '000DKK '000 DKK '000DKK '000 8 | Proposed distribution of profit Retained earnings -7.767-5.259 -7.767-5.259 Minority interests share of result 145-209 00 -7.622-5.468 -7.767-5.259 -7767000 -5259000 -7767000 -5259000 145000 -209000 0 0 -7622000 -5468000 -7767000 -5259000 9 | Intangible assets Group DKK '000Development projects completedIntangible fixed assets acquiredGoodwill Cost at 1 January 2025 10.5638.85624.945 Transfer -137410 Additions 7942110 Cost at 31 December 2025 11.2209.10824.945 Amortisation at 1 January 2025 4.5096.35114.513 Transfer -37270 Amortisation for the year 1.1475892.285 Amortisation at 31 December 2025 5.6196.96716.798 Carrying amount at 31 December 20255.6012.1418.147 Finance lease assets 01.4560 Development projects relate to the development of new versions of the Company’s existing products and new products. The development was progressing according to plan through the use of the resources allocated by Management to the development. The products is expected to be sold in the present market to the Company’s existing customers.  Parent Company DKK '000Development projects completedIntangible fixed assets acquiredGoodwill Cost at 1 January 2025 10.5228.65421.638 Transfers to/from other items -9600 Additions 7942110 Cost at 31 December 2025 11.2208.86521.638 Amortisation at 1 January 2025 4.4826.20612.270 Transfer -1000 Amortisation for the year 1.1475671.752 Amortisation at 31 December 2025 5.6196.77314.022 Carrying amount at 31 December 20255.6012.0927.616 Finance lease assets 01.4560 Development projects relate to the development of new versions of the Company’s existing products and new products. The development was progressing according to plan through the use of the resources allocated by Management to the development. The products is expected to be sold in the present market to the Company’s existing customers.  10563000 8856000 24945000 -137000 41000 0 794000 211000 0 11220000 9108000 24945000 4509000 6351000 14513000 -37000 27000 0 1147000 589000 2285000 5619000 6967000 16798000 5601000 2141000 8147000 0 1456000 0 10522000 8654000 21638000 -96000 0 0 794000 211000 0 11220000 8865000 21638000 4482000 6206000 12270000 -10000 0 0 1147000 567000 1752000 5619000 6773000 14022000 5601000 2092000 7616000 0 1456000 0 10 | Property, plant and equipment Group DKK '000Land and buildingsOther plant, fixtures and equipmentLeasehold improvements Cost at 1 January 2025 30017.7732.005 Additions 013839 Cost at 31 December 2025 30017.9112.044   Depreciation and impairment losses at 1 January 2025 16416.9191.299 Depreciation for the year 12444117 Depreciation and impairment losses at 31 December 2025 17617.3631.416 Carrying amount at 31 December 2025124548628 Parent Company DKK '000Land and buildingsOther plant, fixtures and equipmentLeasehold improvements Cost at 1 January 2025 30014.4111.899 Additions 0839 Cost at 31 December 2025 30014.4191.938   Depreciation and impairment losses at 1 January 2025 16413.9841.194 Depreciation for the year 12296117 Depreciation and impairment losses at 31 December 2025 17614.2801.311 Carrying amount at 31 December 2025124139627 300000 17773000 2005000 0 138000 39000 300000 17911000 2044000 164000 16919000 1299000 12000 444000 117000 176000 17363000 1416000 124000 548000 628000 300000 14411000 1899000 0 8000 39000 300000 14419000 1938000 164000 13984000 1194000 12000 296000 117000 176000 14280000 1311000 124000 139000 627000 11 | Financial non-current assets Group DKK '000Other securities and equity investmentsRent depositsOther receivables Cost at 1 January 2025 3.3582181.519 Disposals 000 Cost at 31 December 2025 3.3582181.519   Impairment losses for the year 3.35800 Impairment losses and amortisation of goodwill at 31 December 2025 3.35800 Carrying amount at 31 December 202502181.519 Parent Company DKK '000Equity investments in group enterprisesReceivables from group enterprises Cost at 1 January 2025 11.7236.992 Transferred 00 Additions 016 Cost at 31 December 2025 11.7237.008 Revaluation at 1 January 2025 -1.7420 Exchange adjustment -3430 Dividend -1.5000 Profit/loss for the year -2.3370 Revaluation at 31 December 2025 -5.9220 Impairment losses and amortisation of goodwill at 1 January 2025 2.9700 Negative balance, provisions -7.018 Amortisation of goodwill 5330 Impairment losses and amortisation of goodwill at 31 December 2025 -3.5150 Carrying amount at 31 December 20259.3167.008 Parent Company DKK '000Rent depositsOther receivables Cost at 1 January 2025 2181.519 Cost at 31 December 2025 2181.519 Carrying amount at 31 December 20252181.519 Investments in subsidiaries  Name and domicileOwnership D Line Production UAB, Lithuania 100 % D Line Eisenware Ltd, United Kingdom 100 % D Line Invest ApS, Denmark 100 % Novus Precision Co. Ltd, China 75 % 3358000 218000 1519000 0 0 0 3358000 218000 1519000 3358000 0 0 3358000 0 0 0 218000 1519000 11723000 6992000 0 0 0 16000 11723000 7008000 -1742000 0 -343000 0 -1500000 0 -2337000 0 -5922000 0 2970000 0 -7018000 533000 0 -3515000 0 9316000 7008000 218000 1519000 218000 1519000 218000 1519000 12 | Deferred tax assets The provision for deferred tax is related to differences between the carrying amount and tax value of securities, receivables, intangible and tangible fixed assets, including recognised finance lease contracts. Group Parent Company 20252024 20252024 DKK '000DKK '000 DKK '000DKK '000 Deferred tax assets, beginning of year 7.4996.535 7.4996.535 Deferred tax of the year, income statement 0964 0964 Deferred tax assets 31 December7.4997.499 7.4997.499 D Line has recognized a deferred tax asset of T.DKK 7.499 in the balance sheet as of 31. december 2025. The tax asset primarily relates to carried forward tax losses and temporary differences between accounting and tax values of assets and liabilities. The recognition of the tax asset is based on an assessment that D Line expect to generate sufficient taxable income in the future to utilize the carried forward losses and tax benefits. The assessment is based on business plans and budgets, including expected revenue and cost levels.The assessment of the recognition of the tax asset is subject to estimates and uncertainties. If actual future results differ significantly from the current assumptions, it may lead to a change in the recognition of the tax asset. D Line continuously monitors the underlying assumptions and will adjust the recognition of the tax asset if deemed necessary.  D Line has recognized a deferred tax asset of T.DKK 7.499 in the balance sheet as of 31. december 2025. The tax asset primarily relates to carried forward tax losses and temporary differences between accounting and tax values of assets and liabilities. The recognition of the tax asset is based on an assessment that D Line expect to generate sufficient taxable income in the future to utilize the carried forward losses and tax benefits. The assessment is based on business plans and budgets, including expected revenue and cost levels.The assessment of the recognition of the tax asset is subject to estimates and uncertainties. If actual future results differ significantly from the current assumptions, it may lead to a change in the recognition of the tax asset. D Line continuously monitors the underlying assumptions and will adjust the recognition of the tax asset if deemed necessary.  13 | Accruals and prepaid costs Prepaid expenses include prepaid costs, primarily insurance and contributions, that relate to the following financial year. 20252024 DKK '000DKK '000 14 | Sha­re ca­pi­talAllocation of Share capital: Shares, 19.277/1 unit in the denomination of 1.000,00/1,00 DKK19.27719.277 19.27719.277 15 | Provision for deferred tax The provision for deferred tax is related to differences between the carrying amount and tax value of securities, receivables, intangible and tangible fixed assets, including recognised finance lease contracts. Deferred tax of the year, income statement 440 00 Provision for deferred tax 31 December440 00 16 | Long-term liabilities Group 31/12 2025RepaymentDebt outstanding31/12 2024DKK '000total liabilitiesnext yearafter 5 yearstotal liabilities Bank loan 79079001.632Lease liabilities 90634500Payables to shareholders and management 4.368003.033Other liabilities 0002.162 6.0641.13506.827 Parent Company 31/12 2025RepaymentDebt outstanding31/12 2024DKK '000total liabilitiesnext yearafter 5 yearstotal liabilities Bank loan 79079001.632Lease liabilities 90634500Payables to shareholders and management 4.368003.033Other liabilities 0002.162 6.0641.13506.827 0 0 17 | Accruals and deferred income Deferred income relates to revenue from goods sold in the current financial year, where delivery takes place in the subsequent financial year. The revenue is recognised as deferred income in the balance sheet until delivery has occurred, at which point it is recognised in the income statement. Group Parent Company 2025 2025 DKK '000 DKK '000 Lease commitment The total lease commitment as of the balance sheet date amount to: 875 593 Other financial commitments The total other financial commitments as of the balance sheet date amount to: 2.781 1.680 19 | Charges and securities Mortgage deeds registrered to the mortgagor totalling T.DKK 18.000 providing security on simple claims, inventory, property, plant and equipment at a total carrying amount of:   Group Parent Company DKK '000 DKK '000 Land and buildings124 124 Other plant, fixtures and equipment548 139 Leasehold improvements628 627 Inventories20.631 9.820 Receivables (excl. tax)11.430 19.900 20 | Related parties The Company did not carry out any material transactions that were not concluded on market conditions. According to section 98c, subsection 6 of the Danish Financial Statements Act information is given only on transactions that were not performed on common market conditions. The Annual Report of D LINE A/S for 2025 has been presented in accor­dance with the pro­vi­sions of the Da­nish me­di­um-si­ze Fi­nan­ci­al State­ments Act for en­ter­pri­ses in re­por­ting class C.  Regnskabsklasse C, mellemstor virksomhed1trueThe Annual Report is prepared consistently with the accounting principles applied last year.   Regnskabsklasse C, mellemstor virksomhed true The Consolidated Financial Statements include the Parent Company D LINE A/S and the subsidiaries in which D LINE A/S direct­ly or indirect­ly holds more than 50% of the voting rights or in any other way has a control­ling influ­ence. Enter­prises in which the Group holds be­tween 20% and 50% of the voting rights and exer­cises signi­ficant, but not con­trol­ling influ­ence, are con­sidered asso­ciates, see the Group structure.   The Consolidated Financial Statements conso­lidate the Financial Statements of the Parent Company and the subsidiaries by com­bining uniform accounts items. Intercompany income and expenses, shareholdings, intercompany accounts and dividend, and realised and unrea­lised gains and losses arising from transactions between the consolidated enterprises are fully eliminated in the consolidation.   Newly acquired or established enterprises within the Group are recognised in the Consolidated Financial statements from the date of takeover or establishment. Sold or wound-up enterprises are recognised in the Consolidated Income Statement up to the time of handover. Comparative figures are not adjusted for newly acquired, sold or wound-up enterprises.   The takeover date is the date on which the Group gains actual control over the acquired enterprise.   Acquired enterprises within the Group are recognised in the Consolidated Financial Statements according to the combination method, the combination being regarded as completed at the date of acquisition, and by using the carrying amounts of the assets and liabilities taken over.    Positive and negative differences between the acquisition value and the carrying amounts of taken over and identified assets and liabilities are recognised in equity upon acquisition. The difference from acquired entities is 664 DKK ('000).   Transaction costs, incurred in connection with acquisition of businesses, are recognised in the income statement  in the year when costs are incurred.   Equity interests in subsidiaries are set off by the proportional share of the subsidiaries’ fair value of net assets and liabilities at the date of takeover.   Investments in associates are measured in the Balance Sheet at the proportional share of the equity value of the enterprises, calculated under the accounting policies of the Parent Company and eliminating proportionally any unrealised inter­company gains and losses. The proportional share of the results of the associates is recognised in the Income Statement after elimination of the proportional share of internal gains and losses.   Minority interests The accounting items of the subsidiaries are recognised in full in the Consolidated Financial Statements. The minority interests’ proportional share of the results and equity of the subsidiaries is stated as separate items in the allocation of profit/loss and equity, respectively.   Net revenue Net revenue from the sale of merchandise and finished goods is recognised in the Income Statement if supply and risk transfer to purchaser has taken place before the end of the year and if the income can be measured reliably and is expected to be received.   Net revenue is recognised exclusive of VAT and less duties and discounts related to the sale.   Costs of raw materials and consumables Raw materials and consumables comprises the costs of raw materials and consumables used to reach the revenue for the year. Additionally, decrease or increase of inventories of raw materials and consumables for the year is included, as well as normal impairment of inventories of raw materials and consumables.   Other operating income Other operating income includes items of a secondary nature in relation to the Group’s and the Company’s activities, including profit from sale of intangible and tangible fixed assets. In addition, profit from sale of intangible and tangible fixed assets as well as business interruption and conflict compensations are included. Compensations are recognised when the income is deemed to be realisable.   Other external expenses Other external expenses include other production, sales, delivery and administrative costs, including costs of energy, marketing, premises, loss on bad debts,  operating lease expenses, etc   Payments related to operating lease expenses and other lease agreements are recognised in the Income Statement over the contract period. The Company’s total liability concerning operating and other lease agreements are stated under contingencies, etc.    Staff costs Staff costs comprise wages and salaries, including holiday pay and pensions, and other costs of social security etc., for the Group and the Pa­rent Com­pa­ny's employees. Repayments from public authorities are deducted from staff costs.   Other operating expenses Other operating expenses include items of a secondary nature in relation to the Group’s and the Company’s activities. Losses from sale of intangible and tangible fixed assets are also included.   Income from investments in subsidiaries and associates The proportional share of the results of subsidiaries, stated according to the Parent Company’s accounting policies and with full elimination of unrealised intercompany profits/losses and deduction of amortisation of added value and goodwill resulting from purchase price allocation at the date of acquisition, is recognised in the Parent Company’s Income Statement.   In connection with transfers, potential profits are recognised when the economic rights related to the sold equity interests are transferred, however, at the earliest when the profit has been realised or is regarded as realisable. Moreover, realised losses other than impairments are included where identified.   Financial income and expenses Financial income and expenses include interest income and expenses, financial expenses of finance leases, realised and unrealised gains and losses arising from securities, debt and transactions in foreign currencies, as well as charges and allowances under the tax-on-account scheme, etc. Financial income and expenses are recognised by the amounts that relate to the financial year. Interest income and expenses are calculated on amortised cost prices.   Tax The tax for the year, which consists of the current tax for the year and changes in deferred tax, is recognised in the Income Statement by the share that may be attributed to the profit for the year, and is recognised directly in equity by the share that may be attributed to entries directly to equity.   Intangible fixed assets Development projects comprise costs, including wages and salaries, and amortisation, which directly or indirectly can be related to the Company’s development activities and which fulfil the criteria for recognition in the Balance Sheet. Capitalised development costs are measured at cost less accumulated amortisation and impairment losses or at a lower recoverable amount. An amount corresponding to the recognised development costs is allocated to the equity item 'Reserve for development costs'. The reserve comprises only development costs recognised in financial years beginning on or after 1 January 2023. The reserve is reduced by amortisation of and impairment losses on the development projects on a continuing basis. As of the date of completion, capitalised development costs are amortised on a straight-line basis over the period of the expected economic benefit from the development work. The amortisation period is 7 year. Acquired goodwill is measured at cost less accumulated amortisation. Goodwill is amortised on a straight-line basis over the expected useful life which is estimated to 10 years. The period of amortisation is determined based on an assessment of the acquired company’s position in the market and earnings profile, and the industry-specific conditions.   Patents and licences are measured at the lower of cost less accumulated amortisation and the recoverable amount. Patents are amortised over the remaining patent period and licences are amortised over the period of the agreement, however, no more than 8 years. Intangible fixed assets are generally written down to the recoverable amount if this is lower than the carrying amount.   Profit or loss from sale of intangible fixed assets is calculated at the difference between the sales price and the carrying amount at the time of the sale. Profit and loss are recognised in the Income Statement under other operating income or other operating expenses.    Property, plant and equipment Land and buildings, production plant and machinery, other plant, fixtures and equipment are measured at cost less accumulated depreciation and impairment losses.   The depreciation base is cost less estimated residual value after end of useful life.   The cost includes the acquisition price and costs incurred directly in connection with the acquisition until the time when the asset is ready to be used.    Straight-line depreciation is provided on the basis of an assessment of the expected useful lives of the assets and their residual value:   Useful lifeLand and buildings 25 år0 %Other plant, fixtures and equipment 3-8 år0 %Leasehold improvements 10 år0 % Profit or loss on sale of property, plant and equipment is stated as the difference between the sales price less selling costs and the carrying amount at the date of sale. Profit or loss is recognised in the Income Statement as other operating income or other operating expenses.   Lease contracts Lease contracts relating to tangible fixed assets  The capitalised residual lease liability is recog­nised in the Balance Sheet as a liability and the interest portion of the lease payment is recog­nised in the Income Statement over the contract period.   Financial non-current assets Investments in group enterprise are measured in the Parent Company Balance Sheet under the equity method, which is regarded as a method of measuring/consolidation.   Equity investments in group enterprise are measured in the Balance Sheet at the proportional share of the enterprises’ carrying equity value, calculated in accordance with the Parent Company’s accounting policies with deduction or addition of unrealised intercompany profits or losses and with addition or deduction of the residual value of positive or negative goodwill calculated according to the acquisition method. Negative goodwill is recognised in the Income Statement when the equity interest is acquired. Where the negative goodwill is related to acquired contingent liabilities, the negative goodwill will be recognised as income when the contingent liabilities have been settled or cease.   Land and buildings, plants and machines, as well as other fixtures, fittings, tools and equipment are measured at cost with deduction of accumulated depreciations. Land is not depreciated. Inventories are measured at cost according to the FIFO principle with deductions of any depreciations at a lower net realisation value. Receivables and payables are measured at amortised cost.   Received dividend is deducted in the carrying amount of the equity investment.   The combination method is applied when acquiring enterprises within the Group, where the combination is regarded as completed at the date of acquisition, and by using the carrying amounts of the assets and liabilities acquired.   The difference between the acquisition cost and carrying amounts is recognised directly in equity.   Net revaluation of equity interests in group enterprises is transferred under equity to reserve for net revaluation under the equity value method to the extent that the carrying amount exceeds the acquisition value.   Profit and loss at disposal of investments in group enterprise are determined as the difference between the net selling price and the carrying amount of the disposed investment at the time of sale, including non-depreciated excess values and goodwill. Profit and loss are recognised in the Income Statement under income from investments.   Group enterprise with a negative carrying equity value are measured to DKK 0 and any amounts due from these enterprises are written down to the extent that it is deemed to be irrecoverable. If the carrying negative equity value exceeds receivables, the residual amount is recognised under provision for liabilities to the extent that the Company has a legal or actual liability to cover the subsidiary's sub­si­dia­ri­es deficit.   Other receivables are measured at amortised cost which usually corresponds to the nominal amount. The amount is written down to meet expected losses.   Impairment of fixed assets The carrying amount of in­tan­gib­le fi­xed and pro­per­ty, plant and equip­ment to­get­her with fi­xed as­sets, which are not mea­su­red at fair va­lue,, are assessed annually for indications of impairment other than that reflected by amortisation and depreciation.   In the event of impairment indications, an impairment test is made for each asset or group of assets, respectively. If the recoverable amount is lower than the carrying amount, the asset is written down to the recoverable amount.   The recoverable amount is calculated at the higher of the capital value and the sales value less expected costs of a sale. The capital value is determined as the Company's share in the current value of the net cash flows which the subsidiary is expected to generate through its activities and from sale of assets after the end of their useful lives. A discount rate is used which reflects the risk-free market rate and the owners' minimum return on interest requirements for similar assets. The growth rate in the terminal period is determined in accordance with the standards within the industry.   Inventories Inventories are measured at cost using the FIFO-principle. If the net realisable amount is lower than cost, the inventories are written down to the lower amount.   The cost of merchandise as well as raw materials and consumables is calculated at acquisition price with addition of transportation and similar costs.   The cost of finished goods and work in progress includes the cost of raw materials, consumables, direct payroll cost and other direct and other indirect production costs include indirect mate­rials and payroll and maintenance and depreci­ation of the machines, factory buildings and equipment used in the production process, the cost of factory administration and management and capitalised development costs relating to the products.   The net realisable value of inventories is stated at the expected sales price less direct completion costs and costs incurred to execute the sale and is determined with due regard to marketability, obsolescence and development in expected sales price of the inventories.   Receivables Receivables are measured at amortised cost which usually corresponds to nominal value. The value is written down to meet expected losses.   Write-off is performed to provide for losses when an objective indication has been assessed to have incurred that a receivable or a portfolio of receivables are impaired. If there is an objective indication that an individual receivable is impaired, the write-off is performed at individual level.   Receivables for which there are no objective indication of impairment at individual level are assessed at portfolio level for objective indication of impairment. The portfolios are primarily based on the debtors’ registered office and credit rating in accordance with the Company’s policy for credit risk management. The objective indicators, which are applied for portfolios, are determined based on the historical loss experiences.   Write-off is determined as the difference between the carrying amount of receivables and the present value of the expected cash flows, including realisable value of any received collaterals. The effective interest rate is used as discount rate for the single receivable or portfolio.   Accruals, assets Accruals recognised as assets include costs incur­red relating to the subsequent financial year.   Tax payable and deferred tax Current tax liabilities and receivable current tax are recognised in the Balance Sheet as the calculated tax on the taxable income for the year, ad­justed for tax on the taxable income for previous years and taxes paid on account.   Deferred tax is measured on the temporary dif­ferences between the carrying amount and the tax value of assets and liabilities.   Deferred tax assets, including the tax value of tax loss carryforwards, are measured at the amount at which the asset is expected to be used within a reasonable number of years, either by setoff against tax on future earnings or by setoff against deferred tax liabilities within the same legal tax entity.   Deferred tax is measured on the basis of the tax rules and tax rates that under the legislation in force on the Balance Sheet date will be ap­pli­cable when the deferred tax is expected to crystallise as current tax. Any changes in the deferred tax resulting from changes in tax rates, are recognised in the income statement, except from items recognised directly in equity.   Liabilities Financial liabilities are recognised at the time of borrowing by the amount of proceeds received less transaction costs. In subsequent periods, the financial liabilities are measured at amortised cost equal to the capitalised value when using the effective interest, the difference between the proceeds and the nominal value being recog­nised in the Income Statement over the loan period.   The amortised cost of current liabilities corresponds usually to the nominal value.   The capitalised remaining lease liability on finance lease contracts is also recognised as financial liabilities.   Accruals, liabilities Accruals recognised as liabilities include payments received regarding income in subsequent years.   Foreign currency translation Transactions in foreign currencies are translated at the rate of exchange on the transaction date. Exchange differences arising between the rate on the transaction date and the rate on the payment date are recognised in the Income Statement as a financial income or expense. Receivables, payables and other monetary items in foreign currencies that are not settled on the Balance Sheet date are translated at the exchange rate on the Balance Sheet date. The difference between the exchange rate on the Balance Sheet date and the exchange rate at the date when the receivables or payables come into existence recognised in the Income Statement as financial income or expenses. Fixed assets acquired in foreign currencies are translated at the rate of exchange on the transaction date.   At recognition of foreign subsidiaries that are not independent entities, but integrated entities, monetary items are translated at the exchange rate on the Balance Sheet date. Non-monetary items are translated at the rate at the date of acquisition or at the date of a subsequent revaluation or writedown of the asset. The items of the Income Statement are translated at the rate on the transaction date, items derived from non-monetary items being translated at the historic rates of the non-monetary item.   The Income Statements of foreign subsidiaries and associates fulfilling the concitions for being independent entities are translated at an average exchange rate for the month and the Balance Sheet items are translated at the rate of exchange on the Balance Sheet date. Exchange differences arising from translation of the equity of foreign subsidiaries at the beginning of the year to the rates of the Balance Sheet date and from translation of Income Statements from average rate to the rates of the Balance Sheet date are recognised directly in the equity.   Exchange adjustment of intercompany accounts with foreign subsidiaries that are deemed to be an addition to or deduction from the equity of independent subsidiaries are recognised directly in the equity.   Exchange rate differences recognised in Equity are accumulated in a fair value reserve for currency translation of foreign entities and are transferred to the Income Statement when object of the currency translation is realised or ends. An exception is exchange rate differences arising from translation of Equity interests, which are recognised at Equity value, where the whole value adjustment, including exchange rate differences, are included in the reserve for net valuation according to the Equity value method.   Cash Flow Statement   With reference to Section 86(4) of the Danish Financial Statements Act, the company has not prepared a cash flow statement. A cash flow statement has been prepared for the Group.   The cash flow statement shows the Company’s cash flows for the year for operating activities, investing activities and financing activities in the year, the change in cash and cash equivalents of the year and cash and cash equivalents at beginning and end of the year.   Cash flows from operating activities:Cash flows from operating activities are computed as the results for the year adjusted for non-cash operating items, changes in net working capital and corporation tax paid.   Cash flows from investing activities:Cash flows from investing activities include payments in connection with purchase and sale of intangible and tangible fixed asset and fixed asset investments.   Cash flows from financing activities:Cash flows from financing activities include changes in the size or composition of share capital and related costs, and borrowings and repayment of interest-bearing debt and payment of dividend to shareholders.   Cash and cash equivalents:Cash and cash equivalents include bank overdraft and cash in hand.   With reference to Section 86(4) of the Danish Financial Statements Act, the company has not prepared a cash flow statement. A cash flow statement has been prepared for the Group.