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Revisionspåtegning Ja CaseWare fra Revisorgruppen Danmark kapitalejerne Aarhus 2026-07-08 Aarhus N 2026-07-08 Grundlag for konklusion Konklusion The key figures appearing from the survey have been calculated as follows:Gross margin ratio Gross profit x 100 / RevenueReturn on equity investment Operating profit or loss (EBIT) x 100 / Average invested capitalInvested capital Operational intangible and tangible assets and net working capitalSolvency ratio Equity, closing balance x 100 / Total assets, closing balanceReturn on equity Net profit or loss for the year x 100 / Average equity 663439788 721544848 428417014 529955716 8065905 954164 50579310 16192256 295906474 320934987 230830177 257576836 216368001 215877097 151816665 152909763 159231218 185686928 96349482 135661373 140049142 108269323 94564161 71695982 25992983 16649745 15084663 10189453 2134219 13176459 2134219 13176459 -8945126 47591401 -15433561 40599479 0 0 -1572753 3089084 116800 63288 5107406 2495927 1886179 13460068 5855235 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2631931 0 0 14702771 15435772 Rains USA INC. USA 100 4818219 1924435 Rains Shanghai Trading Co. Ltd. Kina 100 -1444821 -4742024 Rains Norway AS Norge 100 3051830 -126986 Rains International Ltd. England 100 2300859 718665 Rains Germany GmbH Tyskland 100 846602 58737 Rains Sweden AB Sverige 100 307544 -5957 Drip Dutch B.V. Nederlandene 100 432087 212956 RAINS RETAIL DENMARK ApS Danmark 100 -1038444 536315 RAINS Canada Sales INC. Canada 100 1753428 307274 Kjer-Ca UG Tyskland 100 -1154819 -96315 Rains Italy S.R.L. Italien 100 246533 121683 RAINS Switzerland AG Schweiz 100 878608 74221 Rains France Frankrig 100 -239281 -276422 Rains Belgium Srl Belgien 100 67061 -186901 Rains Collective Ireland Limited Irland 100 -17813 -92434 7116189 10827190 12781544 6044707 7099478 7099478 12798255 9772419 12798255 9772419 108000 108000 108000 108000 108000 108000 108000 108000 0 0 7301516 4184888 0 0 -2361748 3116628 0 0 4939768 7301516 13885794 13130812 13130812 3882287 0 0 754982 9248525 13885794 13130812 13885794 13130812 114898704 133006944 125705428 133388371 -114898704 -133006944 0 0 114898704 133006944 -14202515 1538038 0 0 0 30000000 0 0 0 30000000 0 0 -1543977 -9220981 114898704 133006944 109958936 125705428 7675886 1027200 0 260000 -2363306 6648686 4350000 3926000 -906062 0 0 0 4406518 7675886 4350000 4186000 242630 181675 194230 156675 3518999 2589608 906533 533126 25992983 16649745 -2002979 -13523356 10279000 16350018 -656884 10110073 -13176459 0 -12065028 -30842752 -57565842 3527372 -37650397 74664056 0 13176459 Today, the Board of Directors and the Executive Board have approved the annual report of RAINS ApS for the financial year 1 January - 31 December 2025. The annual report has been prepared in accordance with the Danish Financial Statements Act. We consider the chosen accounting policy to be appropriate, and in our opinion, the consolidated financial statements and the parent company financial statements give a true and fair view of the financial position of the Group and the Parent Company at 31 December 2025, and of the results of the Group and the Company's operations as well as the consolidated cash flows for the financial year 1 January – 31 December 2025. Further, in our opinion, the Management's review gives a true and fair review of the matters discussed in the Management's review. We recommend that the annual report be approved at the Annual General Meeting. Daniel Brix Hesselager Morten Kristiansen Daniel Brix Hesselager Kenneth Davids Philip Lotko Wormslev We have audited the consolidated financial statements and the parent company financial statements of RAINS ApS for the financial year 1 January to 31 December 2025, which comprise a summary of significant accounting policies, income statement, balance sheet, statement of changes in equity and notes for both the Group the Parent Company, as well as consolidated statement of cash flows. The consolidated financial statements and the parent company financial statements are prepared under 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 financial position of the Group and the Parent Company at 31 December 2025, and of the results of the Group and the Company's operations as well as the consolidated cash flows for the financial year 1 January - 31 December 2025 in accordance with the Danish Financial Statements Act. Basis for OpinionWe 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 (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 consolidated financial statements and 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 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 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 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 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 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 consolidated 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’s ReviewManagement is responsible for Management’s Review. Our opinion on the consolidated financial statements and the parent company 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 consolidated financial statements and the parent company financial statements, our responsibility is to read Management’s Review and, in doing so, consider whether Management’s Review 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’s Review provides the information required under the Danish Financial Statements Act. Based on the work we have performed, we conclude that Management’s Review is in accordance with the financial statements and has been prepared in accordance with the requirements of the Danish Financial Statement Act. We did not identify any material misstatement of Management’s Review. 627703000 563244000 400938000 169212000 143575000 120617000 72371000 67780000 69667000 -8276000 -2827000 20000 -3310000 2397000 57503000 50712000 56464000 458206000 351933000 211857000 10120000 21791000 0 0 0 141564000 119231000 108885000 45751000 10826000 56127000 -113669000 -42891000 -13145000 68798000 35855000 20060000 87488000 -11697000 880000 3789000 22922000 157 132 103 24.0 25.7 27.0 25.5 30.1 -1.5 8.9 17.9 24.0 40.3 23.1 24.0 30.9 33.9 51.4 -12.0 24.1 44.1 44.5 62.2 Uncertainties about recognition or measurementThere are no significant uncertainties in the recognition and measurement of assets and liabilities other than conditions related to normal operating activity. Unusual circumstancesThere have been no unusual circumstances that may affect the recognition and measurement of assets and liabilities other than conditions related to normal operating activity. Development in activities and financial mattersDuring 2025, Rains continued its strategic development towards becoming a global lifestyle brand. This development included expansion into new product categories as well as continued investments in strengthening the Group’s direct-to-consumer platform and retail presence. The Group also invested heavily in employees to support the growth of the business.  As part of this strategic direction, Rains internalised the operation of its retail stores across Europe during the year, representing an important milestone in the transition towards a more retail-driven business model. By taking direct control of retail operations, the Group is better positioned to ensure a consistent and differentiated brand experience across markets and customer touchpoints. The transition also enables closer engagement with end consumers and provides valuable insights into customer preferences, purchasing behaviour and market trends. Furthermore, the internalisation of retail operations increases operational agility and supports faster implementation of commercial initiatives, store concepts and brand activations. Management considers the direct control of retail operations an important strategic step in strengthening customer loyalty, brand positioning and long-term value creation. Over time, the transition is also expected to support improved operational efficiencies and margin development through greater control of the value chain. During 2025, Rains continued to expand its product universe beyond outerwear and bags, and invested significantly in this expansion into new products categories.  During the year, Rains also launched new material and product innovations, including the lightweight Suva hardshell line and the Mito UV-protective windbreaker line. These initiatives support the Group’s ambition of strengthening its position within functional lifestyle products while broadening relevance across seasons and usage occasions. Revenue for the group for 2025 totals DKK 663 against DKK 722 million last year. Net income or loss from ordinary activities after tax totals DKK -17 against DKK 35 million last year. Managements’ expectations for 2025 were to deliver continued growth across all regions and sales channels resulting in improved financial results. However, the financial year has showed a slight decline in revenue. The financial year 2025 was characterised by continued macroeconomic and geopolitical uncertainty, including unstable political and market conditions across several of our core markets. In Management’s view, these conditions have impacted consumer sentiment and market development and have contributed to a longer-than-anticipated timeframe for the Group’s strategic investments to generate the expected financial returns. Management considers the net loss for the year to be acceptable in light of the significant strategic and operational investments made during 2025, including the internalisation of retail operations, opening of five new retail stores, continued investments in employees and continued investments in new product categories and organisational capabilities aimed at supporting the Group’s long-term growth strategy. As investments and expansion activities continued throughout 2025, Management expects the full effects of these initiatives to materialise over a longer period. Development for the year relative to the expectationsThe expectations for 2025 were to deliver continued groth in sales channels and financial results. The expected growth in sales channels and financial performance was not realised during 2025. Expected developmentsFor the financial year 2026, moderate revenue growth is expected. Revenue is expected to be approximately DKK 700-740 million. Net income for the year is expected to fall within the range of DKK 0-20 million. Due to the factors described under “Development in Activities and Financial Matters”, these expectations are subject to uncertainty. Corporate social responsibility report pursuant to section 99 a of the Danish Financial Statements ActBusiness model and engagement Rains’ purpose is to develop, produce, market and sell lifestyle products under the RAINS brand.  Sales channels can be divided into retail sales, wholesale and e-commerce sales across Europe, Asia, North America and Australia. Within wholesale, a large part of the sales is handled from the headquarters in Denmark, US and China. Distributors are engaged to conduct sales in Baltics, Greece, Israel, South Korea, Poland, Slovenia, Montenegro, Croatia, Ukraine and Turkey.  Within retail, stores are operated by local Rains subsidiaries in accordance with guidelines and support from the parent company, Rains ApS.  All e-commerce sales are via rains.com, which is mainly operated by the parent company, Rains ApS, and local subsidiaries. Exceptions being kr.rains.com which is operated by our distributor, SJ Group Co., Ltd and au.rains.com which is operated by our agent, Crosby South Pty Ltd. The majority of Rains’ business activities are conducted within Europe and North America. In general, 2025 has been a year of change for Rains, and with the introduction of new product categories, Rains has naturally started cooperating with new suppliers. This expansion of the supplier network has resulted in supplier mapping with collection of relevant certifications such as GOTS- and RWS-certification, as part of its broader assessment of ethical and responsible sourcing. In 2025, Rains has mainly engaged suppliers from China and a single supplier from Denmark. Rains continues to aim to establish and maintain close relationships with suppliers to better ensure compliance with relevant legislation and international standards on environment, human rights and product safety. RAINS aims to comply with the most stringent laws and regulations globally on environment, human rights and product safety. To ensure compliance with this throughout our value chain, we operate in accordance with RAINS Code of Conduct which includes requirements on social responsibility issues, workers’ conditions, respect of human rights, and environmental impact. We continuously review RAINS Code of Conduct and update it when relevant. All Rains’ suppliers and partners are expected to adhere to RAINS Code of Conduct. We do not have incentive programs linked to sustainability issues on management level. In 2024, Rains excepted to adhere to voluntary reporting standards for the financial year 2025, however, following the regulatory developments related to the EU Omnibus proposal and a reassessment of the Group’s reporting priorities, Management decided not to implement formal voluntary sustainability reporting standards for the financial year 2025 and instead prioritise resources towards strategic growth initiatives, operational development and strengthening of the Group’s commercial platform during a period of continued investment and market uncertainty.  Rains did, however, appoint a dedicated full-time Compliance Attorney to further strengthen the company’s focus on and understanding of compliance and sustainability throughout the value chain. This hiring is also meant to enhance Rains’ ability to provide continuous guidance and support to our suppliers, helping to ensure ongoing alignment with our standards and expectations. Lastly, Rains is aware that single use packaging has an adverse negative impact on the environment.  With packaging design, Rains strives to make it as compact but still consumer friendly as possible, to avoid shipping void space/ empty air. Rains’ e-commerce packaging is made to be reusable by incorporating stronger materials and zip locks. By doing this, the product bags can be reused by Rains when customers return RAINS items in them, and they can be repurposed by our customers.  Further, in 2025, Rains introduced new hangtags of paper for better recyclability. On company level, Rains focuses on minimizing our energy consumption through measures such as automatic lighting, reducing food waste, solar cells (generating approximately 50% of our total energy consumption) and recycling cardboard boxes from our warehouses. Lastly, we have incorporated biodiversity measures on the surrounding site of RAINS new HQ. . Environmental issues – including climate change Rains are well aware that the fashion and lifestyle industry is associated with significant environmental impacts across the value chain, including the use of raw materials, production processes, transportation, packaging and handling of end-of-life products. The industry is also associated with substantial carbon emissions, water consumption, chemical use and waste generation. As an international fashion and lifestyle brand, Rains recognises its responsibility to work towards reducing the environmental impact connected to its products and operations. Rains acknowledges that responsibility extends across the value chain and requires collaboration between brands, suppliers, logistics providers, customers and other industry stakeholders. Given Rains’ business model and outsourced production setup, the most significant environmental impacts and risks are primarily linked to material sourcing, manufacturing processes, transportation and overproduction.  Through our code of conduct, we encourage our suppliers to work towards implement environmental initiatives aimed at reducing the environmental impact of manufacturing processes. Specifically, regarding material sourcing Rains we require that our Chinese suppliers only source materials and parts within China. We also require that fabrics for our outerwear and bags are coloured through solution dyeing processes, where colour pigments are added directly to the raw material granulate prior to fibre production. This is because solution dyeing is generally recognised within the textile industry as an alternative to conventional wet dyeing that may reduce water and chemical consumption.  We have not quantified the impact associated with our products.    However, Rains recognises that such initiatives only marginally mitigate the overall environmental impact associated with our manufacturing activities. In 2025, Rains introduced ready-to-wear and increased the number of annual product drops from two to twelve. Management recognises that a higher product frequency will contribute to increased environmental impacts related to production, transportation and consumption patterns within the fashion industry. To help mitigate the risk of overproduction and excess inventory, Rains continues to operate with a preorder-based sales model for significant parts of its product offering, allowing production volumes to be more closely aligned with market demand. Further, Rains continues to focus on aiding the design process with 3D sampling tools to avoid excess production of samples.  Rains is also aware that the longer our products last, the smaller its environmental impact will be. Consequently, we have high standards for the materials used in our products and Rains continuously evaluate the performance of the materials. Consequently, Rains continues working with designs and materials that perform well and discontinue the use of materials and designs that do not perform.   To help extend the lifespan of its products, Rains provides customers with guidance on proper care and maintenance of RAINS products. Rains also continues to work on the development of a Care & Repair concept intended to enable customers to repair selected products and thereby prolong product usability and reduce waste. While the initiative was initially expected to be implemented during 2025, the project timeline was extended due to the operational workload associated with the expansion into new product categories and the increased number of annual product drops. The initiative remains in progress. Improving the circularity of products returned with defects or faults continues to be an area of focus for Rains. Products with minor defects are offered for sale through warehouse sales, where employees, as well as friends and family, may purchase them at reduced prices in order to extend product use and reduce waste. In addition, Rains is actively exploring partnerships with distributors and operators specialising in the repair and resale of faulty products as part of its ongoing efforts to support more circular product flows and reduce unnecessary disposal. Social issues and employee issues It is Rains’ policy to continuously improve and work on the employees’ well-being by securing a safe and healthy work environment. Such policies are communicated to new employees through the onboarding process, just like updated policies are communicated and available to all employees via our internal website.  Employees are hired without reference to gender, age, social conditions or the like, and solely based on personal and professional qualifications in relation to the relevant position.  Our warehouses are organized and designed to improve the work environment and safety of the workers.  Rains expects to continue focusing on the employee’s well-being in the work environment and continue to improve on this, when possible, based on our latest executed APV (work place assessment).  Human rights Since RAINS products are sourced from China, Rains is mindful of the high risks in relation to human rights violations. It is Rains’ policy not to enter into agreements with business partners whose views on human rights differ from internationally recognized principles on the observance of human rights.  To mitigate these risks, the parent company, Rains ApS, has drafted a RAINS Code of Conduct that business partners and suppliers are expected to adhere to. RAINS Code of Conduct specifies Rains’ standpoints and requirements in relation to human rights and requirements for business partners’ implementation of relevant policies and processes. It is required that all business partners ensure that subcontractors are also compliant with RAINS Code of Conduct.  To ensure compliance with RAINS Code of Conduct, audits are conducted yearly on all tier 1 factory locations. Audits are conducted by the independent auditor Amfori BSCI and include monitoring on the following Human Rights subjects: • Social Management System • Workers Involvement and Protection • The Rights of Freedom of Association and Collective Bargaining • No Discrimination, Violence or Harassment • Fair Remuneration  • Decent Working Hours • Occupational Health and Safety • No Child Labour • Special Protection for Young Workers • No Precarious Employment • No Bonded, Forced Labour or Human TraffickingFighting corruption and bribery It is Rains’ policy to avoid all forms of bribery and corruption, including extortion. Rains is mindful of potential risks in relation to bribery and corruption, as our sourcing and production as well as some of our partners are located outside of the EU.  To target potential risks in relation to corruption and bribery, partners and suppliers are expected to adhere to the requirements of RAINS Code of Conduct. In case potential partners/suppliers have different views on bribery and corruption than expressed in RAINS Code of Conduct, it is the Management’s position that Rains will not enter into agreements with such partners/suppliers. Rains also aims to build and evolve partnerships solely with trustworthy and professional partners. To ensure compliance with RAINS Code of Conduct, audits are conducted yearly on all factory locations. Audits are conducted by the independent auditor Amfori BSCI and include monitoring of Ethical Business Behaviour.  Disclosure of assumptions related to development projects The company's development project includes the development of IT software for its own use. Completion is expected in 2026, after which commissioning will take place immediately thereafter. Management has found no indication of the need for impairment losses in relation to the carrying amount. GroupParent 31/12 202531/12 202431/12 202531/12 2024 18.Provisions for deferred taxProvisions for deferred tax 1 January 20257.675.8861.027.2000260.000Deferred tax of the results for the year-2.363.3066.648.6864.350.0003.926.000Deferred tax of previous years-906.062000 4.406.5187.675.8864.350.0004.186.000 The following items are subject to deferred tax: Intangible assets3.090.0003.728.0003.090.0003.728.000 Property, plant, and equipment-738.000-402.000-738.000-402.000 Current assets2.054.5184.349.8861.998.000860.000 4.406.5187.675.8864.350.0004.186.000 21.Charges and securityFor bank debts, TDKK 16.699, the parent company has provided security in parent company assets representing a nominal value of TDKK 1.000. This security comprises the below assets, stating the book values: DKK in thousands Inventories114.057 Trade receivables70.686 Other fixtures and fittings, tools and equipment23.978 Intangible assets1.806 Goodwill4.094 22.Contractual obligations and contingencies, etc. DKK in thousands Lease liabilities2.792 Non-cancellable lease commitment300.245 Total contractual obligations303.037 Bank guarantee38.825 Total contingent liabilities38.825 Total contractual obligations and contingent liabilities341.862 Lease liabilities:The Parent company has entered into leasing contracts with an total outstanding leasing payment TDKK 1.864. The parent company has guarantee for subsidiaries' lease TDKK 13.624. The Group has entered into leasing contracts with an total outstanding leasing payment TDKK 2.792. Non-cancellable lease commitment:The Parent company has entered lease (rent) agreements with an total outstanding lease payment TDKK 221.931. The Parent company has guarantee for subsidiaries' lease (rent) TDKK 13.624. The parent company has transferred its rental lease commitments relating to future periods to its subsidiaries. The total commitment amounts to TDKK 13.624. The Group has entered lease (rent) agreements with an total outstanding lease payment TDKK 300.245. Gurantees:For rent commitments through the bank, the Parent company and the Group has provided a total bank guarantee for the amount of TDKK 38.825.  The parent company has submitted a statement of support to the subsidiary so that operations for the coming year can be carried out. Joint taxationWith H 12 ApS, company reg. no 34472785 as administration company, the company is subject to the Danish scheme of joint taxation and is proportionally liable for tax claims within the joint taxation scheme. The company is proportionally liable for any obligations to withhold tax on interest, royalties, and dividends of the jointly taxed companies. The liabilities amount to a maximum amount corresponding to the share of the company capital, which is owned directly or indirectly by the ultimate parent company. The jointly taxed enterprises' total known net liability to the dansih tax authorities emerges from the financial statement of the administration company. Any subsequent adjustments of corporate taxes or withholding tax, etc., may result in changes in the company's liabilities. 23.Related partiesControlling interest H 12 ApS, Krathusvej 3, 8240 RisskovMajority shareholder TransactionsTransactions with related parties have been carried out on an arm's lenght basis. Accordingly, no further disclosures are required. Consolidated financial statementsThe company  is included in the consolidated financial statements of H 12 ApS, cvr.nr. 34 47 27 85. The annual report for RAINS ApS has been presented in accordance with the Danish Financial Statements Act regulations concerning reporting class C enterprises (large enterprises).   Changes in the accounting policiesThe Company has changed its presentation such that rental income from subsidiaries and income from sales and marketing services provided to subsidiaries are now recognised under other operating income, whereas they were previously recognised under occupancy costs and administrative expenses, respectively. The change in presentation and recognition has not resulted in any changes to profit for the year or equity. Comparative figures have been restated accordingly. Except for the above, the accounting policies remain unchanged from last year. Recognition and measurement in generalIncome is recognised in the income statement concurrently with its realisation, including the recognition of value adjustments of financial assets and liabilities. Likewise, all costs are recognised in the income statement, including depreciations amortisations, writedowns for impairment, provisions, and reversals due to changes in estimated amounts previously recognised in the income statement. Assets are recognised in the statement of financial position when it seems probable that future economic benefits will flow to the group and the value of the asset can be reliably measured. Liabilities are recognised in the statement of financial position when it is seems probable that future economic benefits will flow out of the group and the value of the liability can be reliably measured. Assets and liabilities are measured at cost at the initial recognition. Hereafter, assets and liabilities are measured as described below for each individual accounting item. Upon recognition and measurement, allowances are made for such predictable losses and risks which may arise prior to the presentation of the annual report and concern matters that exist on the reporting date. Foreign currency translationTransactions in foreign currency are translated by using the exchange rate prevailing at the date of the transaction. Differences in the rate of exchange arising between the rate at the date of transaction and the rate at the date of payment are recognised in the profit and loss account as an item under net financials. If currency positions are considered to hedge future cash flows, the value adjustments are recognised directly in equity in a fair value reserve. Receivables, payables, and other foreign currency monetary items are translated using the closing rate. The difference between the closing rate and the rate at the time of the occurrence or initial recognition in the latest financial statements of the receivable or payable is recognised in the income statement under financial income and expenses. Fixed assets acquired and paid for in foreign currency are measured at the exchange rate prevailing at the date of  the transaction. RevenueThe enterprise will be applying IAS 18 as its basis of interpretation for the recognition of revenue. Revenue is recognised in the income statement if delivery and passing of risk to the buyer have taken place before the end of the year and if the income can be determined reliably and inflow is anticipated. Revenue is measured at the fair value of the consideration promised exclusive of VAT and taxes and less any discounts relating directly to sales. Cost of salesCost of sales comprises costs concerning purchase of raw materials and consumables less discounts and changes in inventories. Other external costsOther external costs comprise costs incurred for distribution, sales, advertising, administration, premises, loss on receivables, and operational leasing costs. Depreciation, amortisation, and writedown for impairmentDepreciation, amortisation, and writedown for impairment comprise depreciation on, amortisation of, and writedown for impairment of intangible and tangible assets, respectively. Results from investments in subsidiariesAfter full elimination of intercompany profit or loss less amortised consolidated goodwill, the equity investment in the individual entities are recognised in the income statement of the parent as a proportional share of the entities' post-tax profit or loss. Financial income and expensesFinancial income and expenses are recognised in the income statement with the amounts concerning the financial year. Financial income and expenses comprise interest income and expenses, financial expenses from financial leasing, realised and unrealised capital gains and losses relating to securities, debt and transactions in foreign currency, amortisation of financial assets and liabilities as well as surcharges and reimbursements under the advance tax scheme, etc. Tax on net profit or loss for the yearTax for the year comprises the current income tax for the year and changes in deferred tax and is recognised in the income statement with the share attributable to the net profit or loss for the year and directly in equity with the share attributable to entries directly in equity.  The parent and the Danish group enterprises are subject to Danish rules on compulsory joint taxation of Danish group enterprises. The current Danish income tax is allocated among the jointly taxed companies proportional to their respective taxable income (full allocation with reimbursement of tax losses). Intangible assetsDevelopment projects, patents, and licencesDevelopment costs and internally generated rights are recognised in the income statement as costs in the acquisition year. Patents and licenses are measured at cost less accrued amortisation. Patents are amortised on a straightline basis over the remaining patent period and licenses are amortised over the contract period, however, for a maximum of 7 years. GoodwillAcquired goodwill is measured at cost less accumulated amortisation. Given that it is impossible to make a reliable estimate of the useful life, the amortisation period is set at 10 years. Property, plant, and equipmentLand and buildings is measured at cost plus revaluations and less accrued depreciation and write-down for impairment. Land is not subject to depreciation. The depreciable amount is cost plus revaluations at fair value less expected residual value after the end of the useful life of the asset. The amortisation period is fixed at the acquisition date and reassessed annually. If the residual value exceeds the carrying mount of the asset, depreciation is discontinued. Reversal of previous revaluations and recognised deferred taxes concerning revaluations are recognised directly in company equity. Other property, plant, and equipment are measured at cost less accrued depreciation and write-down for impairment. The depreciable amount is cost less any expected residual value after the end of the useful life of the asset. The amortisation period and the residual value are determined at the acquisition date and reassessed annually. If the residual value exceeds the carrying amount, the depreciation is discontinued. If the amortisation period or the residual value is changed, the effect on amortisation will, in future, be recognised as a change in the accounting estimates. The cost comprises acquisition cost and costs directly associated with the acquisition until the time when the asset is ready for use. The cost of a total asset is divided into separate components. These components are depreciated separately, the useful lives of each individual components differing, and the individual component representing a material part of the total cost. Depreciation is done on a straight-line basis according to an assessment of the expected useful life and the residual value of the individual assets: Useful lifeResidual valueBuildings40years10-60 %Other fixtures and fittings, tools and equipment2-6years0-20 % Minor assets with an expected useful life of less than 1 year are recognised as costs in the income statement in the year of acquisition. Profit or loss derived from the disposal of property, land, and equipment is measured as the difference between the sales price less selling costs and the carrying amount at the date of disposal. Profit or loss is recognised in the income statement as other operating income or other operating expenses. Investments in subsidiariesInvestments in subsidiaries are recognised and measured by applying the equity method. The equity method is used as a method of consolidation. Investments in subsidiaries are recognised in the statement of financial position at the proportionate share of the enterprise's equity value. This value is calculated in accordance with the parent's accounting policies with deductions or additions of unrealised intercompany gains and losses as well as with additions or deductions of the remaining value of positive or negative goodwill calculated in accordance with the acquisition method. Negative goodwill is recognised in the income statement at the time of acquisition of the equity investment. If the negative goodwill relates to contingent liabilities acquired, negative goodwill is not recognised until the contingent liabilities have been settled or lapsed. Consolidated goodwill is amortised over its estimated useful life, which is determined on the basis of the management's experience with the individual business areas. Consolidated goodwill is amortised on a straight-line basis over the amortisation period, which represent 5-20 years. The depreciation period is determined on the basis of an assessment that these are strategically acquired enterpriseswith a strong market position and a long-term earnings profile. Investments in subsidiaries with a negative equity value are measured at DKK 0, and any accounts receivable from these enterprises are written down to the extent that the account receivable is uncollectible. To the extent that the parent has a legal or constructive obligation to cover an negative balance that exceeds the account receivable, the remaining amount is recognised under provisions. To the extent the equity exceeds the cost, the net revaluation of equity investments in subsidiaries  transferred to the reserve under equity for net revaluation according to the equity method. Dividends from subsidiaries expected to be adopted before the approval of this annual report are not subject to a limitation of the revaluation reserve. The reserve is adjusted by other equity movements in subsidiaries. Newly acquired or newly established companies are recognised in the financial statement as of the time of acquisition. Sold or liquidated companies are recognised until the date of disposal. DepositsDeposits are measured at amortised cost and represent lease deposits, etc. InventoriesInventories are measured at cost according to the FIFO method. In cases when the net realisable value of the inventories is lower than the cost, the latter is written down for impairment to this lower value. Costs of goods for resale, raw materials, and consumables comprise acquisition costs plus delivery costs. ReceivablesReceivables are measured at amortised cost, which usually corresponds to nominal value. In order to meet expected losses, impairment takes place at the net realisable value. The company has chosen to use IAS 39 as a basis for interpretation when recognising impairment of financial assets, which means that impairments must be made to offset losses where an objective indication is deemed to have occurred that an account receivable or a portfolio of accounts receivable is impaired.If an objective indication shows that an individual account receivable has been impaired, an impairment takes place at individual level. Prepayments and accrued incomePrepayments and accrued income recognised under assets comprise incurred costs concerning the following financial year. Cash on hand and demand depositsCash on hand and demand deposits comprise cash at bank and on hand. EquityReserve for net revaluation according to the equity methodThe reserve for net revaluation according to the equity method comprises net revaluation of equity investments in subsidiaries, associates and equity interests proportional to cost. The reserve may be eliminated in the event of losses, realisation of equity investments, or changes in the accounting estimates. The reserve cannot be recognised by a negative amount. Reserve for development costsThe reserve for development costs comprises recognised development costs less related deferred tax liabilities. The reserve cannot be used as dividends or for covering losses. The reserve is reduced or dissolved if the recognised development costs are amortised or abandoned. This is done by direct transfer to the distributable reserves of the equity. DividendDividend expected to be distributed for the year is recognised as a separate item under equity.  Income tax and deferred taxCurrent tax liabilities and current tax receivable are recognised in the statement of financial position as calculated tax on the taxable income for the year, adjusted for tax of previous years' taxable income and for tax paid on account. The company is jointly taxed with consolidated Danish companies. The current corporate income tax is distributed between the jointly taxed companies in proportion to their taxable income and with full distribution with reimbursement as to tax losses. The jointly taxed companies are comprised by the Danish tax prepayment scheme. Joint taxation contributions payable and receivable are recognised in the statement of financial position as ”Tax receivables from group enterprises" or "Income tax payable to group enterprises" According to the rules of joint taxation, RAINS ApS is proportionally liable to pay the Danish tax authorities the total income tax, including withholding tax on interest, royalties, and dividends, arising from the jointly taxed group of companies. Deferred tax is measured on the basis of temporary differences in assets and liabilities with a focus on the statement of financial position. Deferred tax is measured at net realisable value. Adjustments take place in relation to deferred tax concerning elimination of unrealised intercompany gains and losses. Deferred tax is measured based on the tax rules and tax rates applying under the legislation prevailing in the respective countries on the reporting date when the deferred tax is expected to be released as current tax. Changes in deferred tax due to changed tax rates are recognised in the income statement, except for items included directly in the equity. Deferred tax assets, including the tax value of tax losses allowed for carryforward, are recognised at the value at which they are expected to be realisable, either by settlement against tax of future earnings or by set-off in deferred tax liabilities within the same legal tax unit. Any deferred net tax assets are measured at net realisable value. ProvisionsProvisions are measured at net realisable value or at fair value. If the fulfilment of a liability is expected to take place far in the future, the liability is measured at fair value. Liabilities other than provisionsOther liabilities concerning payables to suppliers, group enterprises, and other payables are measured at amortised cost which usually corresponds to the nominal value. Accruals and deferred incomePayments received concerning future income are recognised under accruals and deferred income.