10050715 2023-01-01 2023-12-31 10050715 2023-01-01 2023-12-31 2 10050715 2022-01-01 2022-12-31 10050715 2023-12-31 10050715 2022-12-31 10050715 2022-12-31 fsa:ContributedCapitalMember 10050715 2023-01-01 2023-12-31 fsa:ContributedCapitalMember 10050715 2023-12-31 fsa:ContributedCapitalMember 10050715 2022-12-31 fsa:ReserveForDevelopmentExpenditureMember 10050715 2023-01-01 2023-12-31 fsa:ReserveForDevelopmentExpenditureMember 10050715 2023-12-31 fsa:ReserveForDevelopmentExpenditureMember 10050715 2022-12-31 fsa:RetainedEarningsMember 10050715 2023-01-01 2023-12-31 fsa:RetainedEarningsMember 10050715 2023-12-31 fsa:RetainedEarningsMember 10050715 2022-12-31 fsa:ProposedDividendRecognisedInEquityMember 10050715 2023-01-01 2023-12-31 fsa:ProposedDividendRecognisedInEquityMember 10050715 2023-12-31 fsa:ProposedDividendRecognisedInEquityMember 10050715 2023-01-01 2023-12-31 1 10050715 2023-01-01 2023-12-31 2 10050715 2023-01-01 2023-12-31 3 10050715 2023-01-01 2023-12-31 1 10050715 2023-01-01 2023-12-31 2 10050715 2023-01-01 2023-12-31 3 10050715 2023-01-01 2023-12-31 4 10050715 2023-01-01 2023-12-31 1 iso4217:DKK xbrli:pure GEA PROCESS ENGINEERING A/S Gladsaxeve 305 DK 2860 Søborg 10050715 The Execuve Board and Board of Directors have today considered and adopted the Annual Report of GEA PROCESS ENGINEERING A/S for the financial year 1 January - 31 December 2023. The Annual Report is prepared in accordance with the Danish Financial Statements Act. In our opinion the financial statements give a true and fair view of the Company's assets, liabilies, and financial posion at 31 December 2023 and of the results of the Company's operaons for 2023. Further, in our opinion, the Management's review gives a fair review of the development in the Company's acvies and financial maers, of the results for the year and of the Company's financial posion. We recommend that the Annual Report be adopted at the Annual General Meeng. Søborg Ulrik Lund Jakobsen Michael Friis Catherine Douzon-Damgaard CEO Executive Officer Executive Officer Ilija Aprcovic Ulla Michelsen Matthias Decker Chairman Nanna Borne Employee representative To the shareholders of GEA Process Engineering A/S We have audited the financial statements of GEA Process Engineering A/S for the financial year 1 January – 31 December 2023 comprising income statement, balance sheet, statement of changes in equity, and notes, including accounng policies. The financial statements are prepared in accordance with the Danish Financial Statements Act. In our opinion, the financial statements give a true and fair view of the Company's assets, liabilies and financial posion at 31 December 2023 and of the results of the Company's operaons for the financial year 1 January – 31 December 2023 in accordance with the Danish Financial Statements Act. We conducted our audit in accordance with Internaonal Standards on Auding (ISAs) and the addional requirements applicable in Denmark. Our responsibilies under those standards and requirements are further described in the "Auditor's responsibilies for the audit of the financial statements" secon of our report. We are independent of the Company in accordance with the Internaonal Ethics Standards Board for Accountants' Internaonal Code of Ethics for Professional Accountants (IESBA Code) and the addional ethical requirements applicable in Denmark, and we have fulfilled our other ethical responsibilies 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 preparaon of financial statements that give a true and fair view in accordance with the Danish Financial Statements Act and for such internal control, that Management determines is necessary to enable the preparaon of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, Management is responsible for assessing the Company's ability to connue as a going concern, disclosing, as applicable, maers related to going concern and using the going concern basis of accounng in preparing the financial statements unless Management either intends to liquidate the Company or to cease operaons, or has no realisc alternave but to do so. Our objecves are to obtain reasonable assurance as to whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs and the addional requirements in Denmark will always detect a material misstatement when it exists. Misstatements may arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of financial statement users made on the basis of these financial statements. As part of an audit conducted in accordance with ISAs and the addional requirements applicable in Denmark, we exercise professional judgement and maintain professional skepcism throughout the audit. We also • idenfy and assess the risks of material misstatement of the company financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecng a material misstatement resulng from fraud is higher than for one resulng from error as fraud may involve collusion, forgery, intenonal omissions, misrepresentaons, 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 effecveness of the Company's internal control. • evaluate the appropriateness of accounng policies used and the reasonableness of accounng esmates and related disclosures made by Management. • conclude on the appropriateness of Management's use of the going concern basis of accounng in preparing the financial statements and, based on the audit evidence obtained, whether a material uncertainty exists related to events or condions that may cast significant doubt on the Company's ability to connue as a going concern. If we conclude that a material uncertainty exists, we are required to draw aenon in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or condions may cause the Company to cease to connue as a going concern. • evaluate the overall presentaon, structure and contents of the financial statements, including the disclosures, and whether the financial statements represent the underlying transacons and events in a manner that gives a true and fair view. We communicate with those charged with governance regarding, among other maers, the planned scope and ming of the audit and significant audit findings, including any significant deficiencies in internal control that we idenfy during our audit. Management is responsible for the Management's review. Our opinion on the financial statements does not cover the Management's review, and we do not express any form of assurance conclusion thereon. In connecon with our audit of the financial statements, our responsibility is to read the Management's review and, in doing so, consider whether the Management's review is materially inconsistent with the financial statements, or our knowledge obtained during the audit, or otherwise appears to be materially misstated. Moreover, it is our responsibility to consider whether the Management's review provides the informaon required under the Danish Financial Statements Act. Based on the work we have performed; we conclude that the Management's review is in accordance with the financial statements and has been prepared in accordance with the requirements of the Danish Financial Statement Act. We did not idenfy any material misstatement of the Management's review. Copenhagen KPMG Statsautoriseret Revisionspartnerselskab 25578198 Kenn Wolff Hansen Stine Inger Pedersen State Authorised Public Accountant State Authorised Public Accountant mne30154 mne47771 +45 39 54 54 54 Gladsaxe Dampfærgeve 28 2100 København Ø Danske Bank Bernstorffsgade 40 1577 København V Financial highlights DKK million 2023 2022 2021 2020 2019 Key figures Profit/loss Revenue 1,938 2,195 2,038 1,965 2,101 Profit/loss before financial income 197 248 373 137 102 and expenses Profit/loss of financial income and 182 162 54 16 -42 expenses Net profit/loss 321 345 328 89 21 Balance sheet Balance sheet total 2,493 2,396 2,389 2,875 2,593 Investment in property, plant, and 6 5 5 4 7 equipment Equity 969 1,020 973 1,054 964 Ratios Profit margin 10.2% 11.3% 18.3% 7.0% 4.9% Return on assets 7.9% 10.4% 15.6% 4.8% 3.9% Solvency ratio 38.9% 42.6% 40.7% 36.7% 37.2% Return on equity 32.3% 34.6% 32.4% 8.8% 2.1% As of 1 May 2023, a carve out of the Liquid acvies was performed. Comparison numbers in the financial highlights overview have not been restated. Explanaon of financial raos Profit Margin Profit before financials x 100 / Revenue Return on Assets Profit before financials x 100 / Total assets at year end Solvency Rao Equity at year end x 100 / Total assets at year end Return on Equity Net profit for the year x 100 / Average equity Development in the year The operang profit for the year is DKK 197 million compared to an operang profit of DKK 248 million in 2022. The profit margin has though decreased from 11.3% in 2022 to 10.2% in 2023 due to challenges in the execuon of some projects and lower sales acvity. Management considers the result of the year sasfactory in mes of headwinds in the macro-economic environment. During 2023 the company has successfully maintained a strong market posion. Targets and expectaons for the year ahead The expectaons for sales in 2024 are lower than 2023, considering connued headwinds in the macro-economic environment and also due to the Liquid business being carved out during 2023 into the newly established company GEA Liquid Technologies A/S. Management foresees also connued intense compeon. Special risks, operang risks, and financial risks Operang risks The company’s principal operaonal risk is related to the ability of being strongly posioned in the important markets. Furthermore, it is important for the company to be at the cung edge of the development within process engineering, including having the possibility to aract and keep employees with qualificaons and experience facilitang this objecve. Financial risks Because of the financial posion of the company and its financial resources, the company is only exposed to changes in the interest level to a limited extent. The company is, however, exposed to currency risks related to the current operaon. The company primarily covers its currency risks by forward contracts. Credit risks The credit risks of the company are primarily related to accounts receivable in the balance sheet. The company has no major risks regarding single engagements. The company’s policy when accepng credit risks means that all larger customers and partners are subject to current credit rang. Knowledge resources The ability of the company to aract and retain highly educated employees is essenal to its connuous growth, including engineers with experse in process development and automaon. To ensure connuous compeve products the company is invesng in the most modern process tools and research environments. This demands high skills, and substanal resources are thus also invested to develop the competences of the employees. Research and development The company is connuously engaged in adaptaon and improvement of its plants and processes as well as in new developments. The costs of research and development are recognized in the profit and loss statement unless development cost meets the requirements for recognion in the balance sheet. Climate and environment The company affects the environment via processing equipment and plants for industrial use delivered to customers. Thus, minimizing the environmental impact of the company is best achieved through its customers by delivering opmized soluons. The current strategy named Mission 26 has a Net Zero by 2040 commitment which of course reflects on the GEA Process Engineering A/S enty. 2040 is 10 years ahead of the target set by the European Union. Further sustainability targets include that all soluons will be offered with zero freshwater usage by 2030 and 50% of total energy demand is covered by cerfied energy management systems by 2026. Regarding the two focus areas – Sustainability and New Food - both serve to reduce impact on the climate and environment. The laer indirectly through less climate and environmental impact early in the food producon chain, e.g. at farms. However, GEA Process Engineering A/S contributes to the trend with new soluons that enables downstream processing of New Foods. On sustainability, the focus is on reducing energy and water consumpon at our customers’ producon sites. To implement the strategy the company has already increased the number of employees working on sustainability and sustainability is the innovaon area with the highest planned new investments. In addion to the above, several smaller iniaves can be menoned. These include technology developments to reduce the consumpon of compressed air which is very energy intensive to produce as well as iniaves at the Soeborg Test Centre to significantly reduce water ulizaon. High Potenal and Talent Pools and Focus on Development GEA Process Engineering A/S’ connued success is dependent on being able to retain experienced employees and managers and to recruit new, talented employees and managers to our company. Accordingly, we place importance on providing an aracve workplace with good opportunies for personal development. In 2021 we launched a global talent and high potenal development program for us to retain great talent in the organizaon and secure solid succession planning. This is done by building a pool of trained workers who are ready to fill key roles when leaders and other key employees step down. Suppliers and human rights The company has assessed that the biggest exposure regarding human rights is within the supplier area. This area is separately treated in the GEA Compliance Handbook. Local and internaonal regulaons on condions of employment, working hours and health and safety condions are observed in order to comply with the high standard stated in the internal GEA Compliance Handbook. The Compliance Handbook specifically states that discriminaon of employees by virtue of sex, sexual orientaon, origin, color of skin, or other personal features are strictly forbidden. Our purchase organizaon is responsible for vendor management and procures workshop components, third party equipment and services for customer projects and aer sales business. Workshop components are manufactured based on our drawings and specificaons in external workshops in and outside Denmark. Third party services are purchased in accordance with framework supplier agreements or on a case-by-case basis depending on the characteriscs of the supplier or product market. The purchasing staff are all well-trained in 'good purchasing pracce' and the legal aspects of purchasing. Every purchaser has taken an on-line test in an-corrupon and export control organized by GEA Group Compliance Management. The procedures on external workshop audits include evaluaon of working condions, maintenance of producon facilies, cleaning, training of workshop staff and safety measures at the workshop. This has posively contributed to no registered breaches on our internal procedures or any severe noncompliance of our suppliers in 2023. We expect to maintain our focus in this area in the future. Key acvies As in previous years, the core acvity of the company has been engineering and supply of industrial processing plants. Statement of corporate social responsibility The core acvity of the company is engineering and supply of industrial processing plants. The company is a 100% owned subsidiary of GEA Group Holding GmbH, Germany, which is 100% owned by GEA Group Akengesellscha, Germany. The ulmate parent of the company includes business model, in addion to policy, acons, results and risks to each of the mandatory areas under 99a of the Danish Financial Statements Act. Therefore, we refer to the Group's annual report 2023, which can be found here: hps://www.gea.com/en/company/investor-relaons/events-releases/annual-reports/index.jspThe below presents an overview of the implemented local CSR iniaves within the company and how we live up to the Group's expectaons and commitments. Risks and how are they managed are reported on Group level. Gender composion of the Danish Financial Statements Act §99b The Board of Directors of GEA Process Engineering A/S has three members selected by the Annual General Meeng, one of which is female and two of which are men. Addionally, the Execuve Board of GEA Process Engineering A/S also has three members of which one is female and two are men. In accordance with the requirements under §99b of the Danish Financial Statements Act, GEA Process Engineering A/S therefore considers the Board of Directors and the Execuve Board to be gender balanced and has not set any further targets. As of 31. December 2023, the share of the underrepresented gender in upper management at GEA Process Engineering A/S, which operate in the mechanical engineering industry, is 18,6%. Our target is, according with our global Mission 26, a 21% female representaon in our top three management ers. We have not yet achieved the targeted level of 21% female representaon in upper management, and therefore we maintain a strong focus on our diversity and inclusion policy to connue progressing. Generally, our acons can be divided into two pillars: Recruitment and development of exisng employees. Recruitment: • With the explicit aim to drive gender diversity in management posions at GEA, our Global Placement Policy introduces a requirement to consider at least one qualified candidate from the underrepresented gender within the short-list of candidates selected for an interview for all management posions at GEA Process Engineering A/S. • When the need arises, and GEA Process Engineering A/S opts for using external recruitment agencies to fill an open management posion, we aim to only use agencies that can commit themselves to being able to present candidates from both legal genders. • When GEA Process Engineering A/S has a stand at a career fair, we ensure that our booth always includes female engineers for soon-to-be graduates and students to have a dialogue with. This to make sure we are viewed as an aracve employer on the labor market as well as to secure the company’s future viability. We aach utmost importance to a corporate culture that fosters diversity, equality, and inclusion. • We will launch a project which aims to ensure that GEA Process Engineering A/S writes gender neutral job adversements. Gender neutral job adversements play a focal role in promong gender equality by eradicang biases and creang an equitable recruitment process. By eradicang biases, our job adversements will not discourage certain groups from applying for employment. Development of exisng employees: • Talent Pipeline Program: Connue to focus on geng female talents enrolled in our company-wide Talent Pipeline program, which is intended to shape the managers of the future at GEA Process Engineering A/S. A total of 62,5% of employees enrolled in our Talent Pipeline program in 2023 was female. • Lean In: Connue broadening and enabling our female network, Lean-In, to help women achieve their ambions and to create an equal workplace. These networks, also known as circles, are about idenfying new opportunies, building connecons with fellow circle members, and encouraging women to be more confident and to improve their leadership skills. • Female Mentoring at GEA: A pilot project was launched in 2023 that enables female employees to be matched with female leaders at GEA for more tailored, one-on-one dialogue. GEA offers 20 high-potenal female employees a one-year mentoring program. Led by 20 experienced female managers, this program helps parcipants accelerate their professional development within GEA. Due to the posive feedback on the iniave, a larger implementaon of said project, is in scope. This policy applies to the upper management of GEA Process Engineering A/S as defined in the Danish Companies Act secon 139 c (4). We pledge our commitment to the abovemenoned acons to reach our target number for the underrepresented gender by 2026. 3 3 0.33 0.33 43 0.19 0.21 2026 Policy for data ethics The company has adopted the GEA Group’s policies for data protecon and corporate social responsibility. Embedded in these policies is a commitment to the safe processing and handling of data and ethical business pracces which includes: • The collecon, storage, and processing of personal data. • The consideraon of data protecon policies of vendors and 3rd pares. • The use of data to achieve sustainability targets. • The mandatory training of employees in data protecon. The company primarily processes data relang to human resources, customer interacons and supplier contact. The company controls that data is collected for explicit and legimate purposes and processed lawfully and fairly, as well as in a transparent manner in relaon to the data subject. A further descripon of the GEA Group’s principles and policies is available in the 2023 Sustainability Report which can be found here: hps://www.gea.com/en/company/sustainability/index.jsp 1938392000 2194607000 1278091000 1410365000 660301000 784242000 189343000 237250000 74792000 69196000 199486000 229949000 196680000 247847000 189404000 171403000 14512000 1330000 21477000 10540000 379119000 410040000 58598000 65103000 320521000 344937000 38037000 30720000 18327000 18973000 4817000 6423000 71434000 56767000 132615000 112883000 8012000 8494000 1339000 2008000 23509000 36312000 3962000 3533000 36822000 50347000 1184803000 1019240000 4834000 4834000 9524000 9267000 1199161000 1033341000 1368598000 1196571000 152170000 132561000 152170000 132561000 157678000 137406000 140901000 188182000 517503000 635535000 76756000 74819000 4193000 3808000 897031000 1039750000 75223000 27387000 1124424000 1199698000 2493022000 2396269000 100000000 100000000 81062000 67548000 415015000 852478000 372645000 0 968722000 1020026000 248849000 242866000 33846000 49873000 282695000 292739000 186194000 297386000 379910000 466098000 489895000 105394000 41128000 66593000 144478000 148033000 1241605000 1083504000 1524300000 1083504000 2493022000 2396269000 100000000 67548000 852478000 0 0 0 371825000 0 371825000 0 0 372645000 -372645000 0 0 0 320521000 0 100000000 81062000 415015000 372645000 DKK thousand 2023 2022 1. Revenue Project 1,608,998 1,809,374 Service and Components 329,394 385,233 1,938,392 2,194,607 The company operates globally, but under the same organizaon of their sales of projects and services across naonal borders. Thus, the geographical segment informaon has not been disclosed. 2. Producon expenses Cost of goods sold 1,031,980 1,157,103 Wages and salaries 249,474 256,829 Impairment and reversal of write-offs of inventories -3,363 -3,567 1,278,091 1,410,365 DKK thousand 2023 2022 5. Research and development expenses Wages and salaries 46,823 48,284 Depreciation and amortization 10,460 11,677 Other expenses 296 -750 Charged from group companies 17,213 9,985 74,792 69,196 3. Staff expenses Wages and salaries 588,881 561,019 Pensions 52,294 51,728 Social security 7,566 6,359 648,741 619,106 Including remuneration to Executive Board and Board of Directors Executive Board 8,795 8,742 Board of Directors 100 100 8,895 8,842 714 776 4. Distribuon expenses Wages and salaries 149,974 140,462 Depreciation and amortization 12,629 9,138 Other expenses 53,527 106,387 Charged to group companies -26,787 -18,737 189,343 237,250 6. Administrave expenses Wages and salaries 202,470 173,531 Depreciation and amortization 19,891 23,633 Other expenses 11,664 12,264 Charged to/from group companies -34,539 20,521 199,486 229,949 7. Income from investments in subsidiaries Gain (+) /loss (-) on disposal of shares in subsidiaries 0 -10,692 Impairment of investment in subsidiaries 0 -7,779 Reversal of prior year impairment 60,068 0 Dividends from subsidiaries 129,336 189,874 189,404 171,403 8. Financial income Interest received from Group enterprises 6,632 1,330 Exchange adjustments, income 7,880 0 14,512 1,330 9. Financial expenses Interest paid to group enterprises 9,084 1,237 Other financial expenses 12,393 3,852 Exchange adjustments, expenses 0 5,451 21,477 10,540 DKK thousand 2023 2022 10. Income tax expense Current tax for the year 43,897 66,593 Deferred tax for the year 4,795 -4,521 Other taxes 10,502 5,930 Adjustment of tax concerning previous years -1,784 -3,921 Adjustment of deferred tax concerning previous years 1,188 1,022 58,598 65,103 371825000 297456000 -423949000 47481000 372645000 371825000 12. Intangible fixed assets Completed Development Development Acquired Projects in DKK thousand Projects patents Goodwill Progress Cost at 1 January 306,344 44,579 81,225 56,767 Addions for the year 0 2,348 0 45,728 Disposals for the year -102,474 -10,388 0 -2,857 Transfers for the year 28,204 0 0 -28,204 Cost at 31 December 232,074 36,539 81,225 71,434 Impairment losses and amorzaons at 1 January 275,624 25,606 74,802 0 Amorzaons for the year 20,887 2,994 1,606 0 Impairment and amorzaon of sold assets for the year -102,474 -10,388 0 0 Impairment losses and amorzaons at 31 December 194,038 18,212 76,408 0 Carrying amount at 31 December 38,037 18,327 4,817 71,434 13. Property, plant, and equipment Other fixtures Property, and fittings, plant, and Plant and tools, and Leasehold equipment in DKK thousand machinery equipment improvements progress Cost at 1 January 72,352 10,512 119,499 3,533 Addions for the year 740 40 42 5,130 Disposals for the year -6,732 -1,387 0 0 Transfers for the year 4,103 598 0 -4,701 Cost at 31 December 70,463 9,763 119,541 3,962 Impairment losses & Depreciaons at 1 January 63,858 8,504 83,187 0 Depreciaons for the year 4,155 637 12,845 0 Depreciaons on disposals for the year -5,562 -717 0 0 Impairment losses & Depreciaons on 31 December 62,451 8,424 96,032 0 Carrying amount on 31 December 8,012 1,339 23,509 3,962 DKK thousand 2023 2022 14. Investment in subsidiaries Cost on 1 January 1,399,528 1,444,087 Addions for the year 105,495 0 Disposal for the year 0 -44,559 Cost on 31 December 1,505,023 1,399,528 Value adjustments at 1 January -380,288 -372,507 Revaluaons for the year, net 0 -105,031 Reversal for the year of revaluaons in previous years 60,068 97,250 Value adjustments on 31 December -320,220 -380,288 Carrying amount on 31 December 1,184,803 1,019,240 The company has calculated the recoverable amount for the individual subsidiaries and compared these to the carrying amount of these. The recoverable amount derived in connecon with the impairment test is calculated on the basis of net cash flow over a period of several years and a growth rate of 2%. The Weighted Average Cost of Capital (WACC) is based on a factor of 11.3%, which is the esmated average within the business areas in which the subsidiaries operate. The WACC esmaon is aligned with our Group corporate finance department. Based on the above assumpons the impairment test indicates a net reversal of prior year impairment totaling DKK 60.1 million. The driver behind the net reversal of impairments was an improved performance for our subsidiaries, hence we made a paral reversal of prior year impairment of GEA Process Engineering S.A. de C.V., addionally also a full reversal of prior year impairments on GEA Process Engineering Pte. Ltd. Investments in subsidiaries are specified as follows: Place of Net registered profit/loss Name office Ownership Equity for the year GEA Westfalia Separator DK A/S Denmark 100% 62,135 14,257 GEA Scan-Vibro A/S Denmark 100% 32,331 6,208 GEA Liquid technologies A/S Denmark 100% 1,199 -3,858 GEA Finland OY Finland 100% 7,952 3,167 GEA Process Engineering Pty. Ltd. Australia 100% 61,717 22,120 GEA Equipamentos e Soluções Ltda. Brazil 100% 23,715 7,781 GEA Japan Ltd. Japan 100% 19,825 10,471 GEA New Zealand Ltd. New Zealand 100% 76,929 39,329 GEA Process Engineering Pte. Ltd. Singapore 100% -23,834 -3,093 GEA Process Engineering (India) Pvt. Ltd. India 100% 202,659 19,400 GEA Process Engineering CEE Kft. Hungary 100% 225 14 GEA Process Engineering Sp. z o.o. Poland 100% 38,673 12,074 GEA Process Engineering N.V. Belgium 100% 80,931 -12,923 GEA Process Engineering Chile S.A. Chile 100% -156 -730 GEA PROSES MÜHENDİSLİK SANAYİ VE TİCARET LİMİTED ŞİRKETİ Turkey 100% 18,908 13,318 GEA Process Engineering S.A. de C.V. Mexico 100% 47,550 -21,651 15. Other fixed asset investments Other Deposits DKK thousand investments Cost at 1 January 4,834 9,267 Additions 0 257 Cost at 31 December 4,834 9,524 DKK thousand 2023 2022 16. Contract work in progress Selling price of work in progress 3,856,611 3,846,677 Invoiced on account -4,095,620 -4,124,593 Contract work in progress, net -239,009 -277,916 Recognised in the balance sheet as follows: Contract work in progress recognized as assets 140,901 188,182 Prepayments received recognized as debt -379,910 -466,098 Contract work in progress, net -239,009 -277,916 17. Prepayments Prepayments consist of prepaid rent, insurance premiums, subscripons, and other expenses. 18. Provision for deferred tax Deferred tax liabilies at 1 January 242,866 246,365 Amounts recognized in the income statement for the year 4,795 -4,521 Adjustment of deferred tax (concerning previous years, equity adj. etc.) 1,188 1,022 Deferred tax liabilies at 31 December 248,849 242,866 Intangible assets 28,122 24,834 Tangible assets -2,192 -1,213 Contract work in progress 226,758 230,710 Provisions and debt -3,839 -11,465 248,849 242,866 19. Warranty and other provisions Warranty and guarantee provisions 33,846 32,647 Other provisions 0 17,226 33,846 49,873 All provisions are expected to mature within 1-5 years. 20. Conngent assets, liabilies, and other financial obligaons Rental and lease obligations Lease obligations under operating leases. Total future lease payments: Within 1 year 20,584 25,705 Between 1 and 5 years 21,549 58,501 After 5 years 0 3,548 Rental and lease obligations 42,133 87,754 Guarantee obligations Warranties and guarantee obligations issued by GEA concerning execution of contractual work etc. for third party. 131,989 161,476 Bank guarantees have been given to third parties concerning execution of contractual work etc. for third party 138,261 281,857 Other conngent liabilies The group companies are jointly and severally liable for tax on the jointly taxed incomes etc. of the GEA Group. Moreover, the group companies are jointly and severally liable for Danish withholding taxes by way of dividend tax, tax on royalty payments and tax on unearned income. Any subsequent adjustments of corporaon taxes and withholding taxes may increase the Company’s liability. 21. Related pares and disclosure of consolidated financial statements Controlling interest GEA Group Holding GmbH, Germany 100% Transacons GEA Process Engineering A/S is a 100% owned subsidiary of GEA Group Holding GmbH, which is 100% owned by GEA Group Akengesellscha, Germany. GEA Process Engineering A/S’ closely related pares with material influence include GEA Group Akengesellscha and enterprises, including GEA Group Holding GmbH and its subsidiaries and associates, as well as the subsidiaries listed in note 13. GEA Process Engineering A/S sells and purchases goods and services to/from subsidiaries and associates. Intercompany trading is highlighted as follows: DKK thousand 2023 2022 Invoicing, income 1,454,252 1,080,418 Purchases, expenses 716,384 379,764 Dividends from subsidiaries, income 129,336 189,874 Interest received, income 6,632 1,330 Interest paid, expense 9,084 1,237 Contract work in progress, assets 68,799 101,677 Receivables from group enes 517,503 635,535 Contract work in progress, liabilies 151,586 152,198 Liabilies to group enes 489,895 105,394 Consolidated Financial Statements The Company is included in the Group Annual Report of the Parent Company of the largest and smallest group: Name Place of registered office GEA Group Aktiengesellschaft Germany The Group Annual Report of GEA Group Akengesellscha may be obtained at the following address: GEA Group Akengesellscha, Peter Müller Strasse 12, D-40468 Düsseldorf, Germany, or at: hps://www.gea.com/en/investor-relaons/releases-reports/annual-reports/index.jsp 22. Subsequent events No events materially affecng the assessment of the Annual Report have occurred aer the balance sheet date. 23. Accounng policies The Annual Report of GEA PROCESS ENGINEERING A/S for 2023 has been prepared in accordance with the provisions of the Danish Financial Statements Act applying to large enterprises of reporng class C. The Financial Statements for 2023 are presented in TDKK. Reclassificaon adjustments to comparave figures Reclassificaons have been made in individual items in the note for Distribuon expenses and Research and development. This has not affected the result and equity of this year or last year and has been made solely to ensure the comparability of the individual items in the note. Disclosure of auditor’s fees Further pursuant to the Danish financial statements act § 96, paragraph 3, the company has not disclosed fee for auditors appointed at the general meeng. Recognion and measurement Revenues are recognized in the income statement as earned. Furthermore, value adjustments of financial assets and liabilies measured at fair value or amorzed cost are recognized. Moreover, all expenses incurred to achieve the earnings for the year are recognized in the income statement, including depreciaon, write-downs, and provisions as well as write-backs because of changed accounng esmates of amounts that earlier have been included in the profit and loss statement are included. Assets are included in the balance sheet when it is likely because of a prior event that future financial advantages will accrue to the company and when the value of the asset can be measured in a reliable way. Liabilies are included in the balance sheet when the company has a legal or actual obligaon as a result of a prior event and if it is likely that future financial advantages will no longer be of benefit to the company, and the value can be measured in a reliable way. Assets and liabilies are inially measured at cost. Subsequently, assets and liabilies are measured as described for each item below. Gains, losses, and risks that result before the annual report is submied and which confirm or deny condions present at the balance sheet date must be considered in connecon with recognion and measurement. Translaon policies Transacons in foreign currencies are recorded at inial recognion at the exchange rate on the transacon date. Exchange rate differences appearing between the exchange rate on the transacon day and the exchange rate on the date of the payment are recognized as a financial gain/loss in the profit and loss statement. Receivables and debt in foreign currencies are recorded in Danish Kroner according to the exchange rate on the balance sheet date or the exchange rate in forward contracts if the outstanding is secured. Exchange rate differences appearing between the exchange rate on the balance sheet date and the exchange rate on the date of the original recognion of the receivable or the debt are recognized as a financial gain/loss in the profit and loss statement. Income statement Net sales Income from the sale of goods for resale and finished goods, is recognized in the income statement when delivery and transfer of risk to the buyer have taken place and provided that the income can be reliably measured and is expected to be received. Revenue is measured ex. VAT and taxes charged on behalf of third pares. All discounts granted are recognized in revenue. Construcon contracts are recognized as revenue by reference to the stage of compleon. Accordingly, revenue corresponds to the selling price of work performed during the year (the percentage of compleon method). When the income from a construcon contract cannot be esmated reliably, revenue is recognized only corresponding to the costs incurred to the extent that it is probable that they will be recovered. Producon expenses Producon cost comprise costs, including salaries, incurred in generang the revenue for the year. Such costs include direct and indirect costs for raw materials and consumables, wages, and salaries, rent and leases. Distribuon expenses Costs incurred in distribung goods sold during the year and in conducng sales campaigns, etc., during the year are recognized as distribuon costs. Also, costs relang to sales staff, adversing, exhibions, and depreciaon are recognized as distribuon costs. Research and Development expenses Research and development expenses comprises expenses incurred in the research phase of new technology, technique, process, and product innovaon. These expenses consist of salaries and other cost that are directly aributable to research phase. Only the cost incurred in the research phase of the R&D process will be expensed, whereas the cost incurred during the development phase are capitalized. Administrave expenses Administrave expenses comprise expenses incurred during the year for company management and administraon, including expenses for administrave staff, management, office premises and office expenses, and depreciaon. Income from investments in subsidiaries Income from investments in subsidiaries includes dividends distributed from subsidiaries and impairment write-downs on subsidiaries and reversal hereof. Dividends from subsidiaries are recognized as income in the income statement when adopted at the General Meeng of the subsidiary. However, dividends relang to earnings in the subsidiary before it was acquired by the Parent Company are set off against the cost of the subsidiary. Financial income and expenses Financial income and expenses include interest income and expenses as well as realized and unrealized exchange gains and losses related to transacons in foreign currency. Tax on profit/loss for the year Tax for the year consists of current tax for the year and deferred tax for the year. The tax aributable to the profit for year is recognized in the income statement, whereas the tax aributable to equity transacons is recognized directly in equity. The Company is jointly taxed with Danish group companies. The Company is administrave company for the joint taxaon and consequently seles all payments of corporaon tax to the Danish Tax authories. The tax effect of the joint taxaon with other Danish group enterprises is allocated to enterprises showing profits or losses in proporon to their taxable incomes (full allocaon with credit for tax losses). Balance Sheet Intangible fixed assets Goodwill acquired is measured at cost less accumulated amorzaon. Goodwill is amorzed on a straight-line basis over its useful life, which is assessed at maximum 20 years. Patents and licenses are measured at the lower value of cost less accumulated amorzaon, and recoverable amount. Patents are amorzed over the remaining patent period, and licenses are amorzed over the license period; however not exceeding 3-5 year. Development costs comprise costs, salaries, and amorzaon directly or indirectly aributable to development acvies. Development projects that are clearly defined and idenfiable, where the technical feasibility, sufficient resources and a potenal future market or development opportunies are evidenced, and where the Company intends to produce, market, or use the project, are recognized as intangible assets provided that the cost can be measured reliably and that there is sufficient assurance that future earnings can cover producon costs, selling costs and administrave expenses and development costs. Other development costs are recognized in the income statement when incurred. Development costs that are recognized in the balance sheet are measured at cost less accumulated amorzaon, and impairment losses. Following the compleon of the development work, development costs are amorzed on a straight-line basis over the esmated useful life, which is 3-5 years. Gains and losses on the disposal of development projects, patents and licenses are determined as the difference between the selling price less selling costs and the carrying amount at the date of disposal. Gains or losses are recognized in the income statement as other operang income/other operang costs. Property, plant, and equipment Property, plant, and equipment are measured at cost less accumulated depreciaon and less any accumulated impairment losses. Cost comprises the cost of acquision and expenses directly related to the acquision up unl the me when the asset is ready for use assets of own producon comprises direct and indirect expenses for labor and materials. Depreciaon based on cost reduced by any residual value is calculated on a straight-line basis over the expected useful lives of the assets, which are: Plant and machinery 3-15 years Other fixtures and fings, tools, and equipment 3-8 years Leasehold improvements 10-30 years The fixed assets’ residual values are determined at nil. Depreciaon period and residual value are reassessed annually. Profits and losses from the sale of property, plant and equipment are calculated as the difference between selling price minus selling costs and carrying amount at the me of sale. Profits or losses are included in the income statement under other operang income/other operang costs. Tangible fixed assets are wrien down to the recoverable amount, if this is lower than the book value. Impairment of fixed assets The carrying amounts of intangible assets and property, plant, and equipment as well as equity investments in group enes are reviewed on an annual basis to determine whether there is any indicaon of impairment other than that expressed by amorzaon and depreciaon. If so, an impairment test is carried out to determine whether the recoverable amount is lower than the carrying amount. If so, the asset is wrien down to its lower recoverable amount. The recoverable amount of the asset is calculated as the higher of net selling price and value in use. Where a recoverable amount cannot be determined for the individual asset, the assets are assessed in the smallest group of assets for which a reliable recoverable amount can be determined based on a total assessment. Investments in subsidiaries Investments in subsidiaries are measured at cost. Where cost exceeds the recoverable amount, write-down is made to this lower value. Previously recognized write-downs are reversed when the ban for the write-downs no longer exists. Reversed write-downs are recognized in the income statement as financial income. Fixed asset investments Fixed asset investments, which consist of listed bonds and shares, are measured at their fair values at the balance sheet date. Fair value is determined on the basis of the latest quoted market price. Investments which are not traded in an acve market are measured at the lower value of cost and recoverable amount. Other fixed asset investments Other investments consist of deposits and shares held in companies with less than 10% ownership. Inventories Inventories are measured at the lower of cost under the FIFO method and net realizable value. The cost of goods for resale, raw materials and consumables consists of purchase price plus landing cost. Goods of own producon are measured at the lower value of direct material and wages with addion of indirect producon cost, or net realizable value. Receivables Receivables are measured in the balance sheet at the lower of amorzed cost and net realizable value, which corresponds to nominal value less provisions for bad debts. Contract work in progress Contract work in progress is measured at selling price of the work performed calculated on the basis of the stage of compleon. The percent of compleon is determined as the rao between direct allocated costs, including materials, wages etc. with the addion of indirect producon costs related to the contract work and latest esmated total cost. Contract work in progress and invoicing on account in foreign currency have been translated at the rates of exchange in effect on the date of contract. In cases where invoicing on account exceeds the recognized sales value of a contract, the exceeding amount has been included in current liabilies as part of advance payment from customers. Prepayments Prepayments comprise prepaid expenses concerning subsequent financial years. Prepayments are measured at cost. Equity Reserve for development costs The reserve for development costs comprises capitalized development costs. The reserve cannot be used for dividend, distributed or cover losses. If the recognized development costs are sold or in other ways excluded from the Company’s operaons, the reserve will be dissolved and transferred directly to the distributable reserves under equity. If the recognized development costs are wrien down, the part of the reserve corresponding to the write-down of the development costs will be reversed. If a write-down of development costs is subsequently reversed, the reserve will be re-established. The reserve is reduced by amorzaon of capitalized development costs on an ongoing basis. Dividend Dividend distribuon proposed by Management for the year is disclosed as a separate equity item. Provisions Other provisions, which contain expected costs for warranty provisions, losses on contract work in progress, restructuring etc. are recognized if the obligaon is present at the date of the balance sheet. Warranty obligaons contain the commitments to repair works within the warranty period. Based upon experience, a provision for warranty expenses has been established to cover such obligaons. When there is a probability that the total costs will exceed the total income of contract work in progress for third pares, a provision of the total loss expected is established under cost of manufactured goods. Deferred tax assets and liabilies Deferred income tax is measured using the balance sheet liability method in respect of temporary differences arising between the tax bases of assets and liabilies and their carrying amounts for financial reporng purposes on the basis of the intended use of the asset and selement of the liability, respecvely. Deferred tax assets are measured at the value at which the asset is expected to be realized, either by eliminaon in tax on future earnings or by set-off against deferred tax liabilies within the same legal tax enty. Deferred tax is measured on the basis of the tax rules and tax rates that will be effecve under the legislaon at the balance sheet date when the deferred tax is expected to crystallize as current tax. Any changes in deferred tax due to changes to tax rates are recognized in the income statement or in equity if the deferred tax relates to items recognized in equity. Current tax receivables and liabilies Current tax liabilies and receivables are recognized in the balance sheet as the expected taxable income for the year adjusted for tax on taxable incomes for prior years and tax paid on account. Current tax payable and receivable is recognized in the balance sheet as amounts owed by or to affiliates. Financial debts Financial liabilies are measured at amorzed cost, substanally corresponding to nominal value. Consolidated Financial Statements With reference to secon 112 of the Danish Financial Statements Act and to the consolidated financial statements for 2023 of GEA, the Company has not prepared consolidated financial statements. Cash flow statement With reference to secon 86(4) of the Danish Financial Statements Act and to the cash flow statement included in the consolidated financial statements of GEA Group Akengesellscha, the Company has not prepared a cash flow statement. Annual report Auditor's report on audited financial statements ParsePort XBRL Converter 2023-01-01 2023-12-31 2022-01-01 2022-12-31 2024-06-12 Charlotte Thorsen Reporting class C, large enterprise 2024-06-12 10050715 GEA PROCESS ENGINEERING A/S Gladsaxevej 305 2860 Søborg Opinion Basis for Opinion 2024-06-12 25578198 KPMG Statsautoriseret Revisionspartnerselskab Dampfærgevej 28 2100 København Ø