37773743 2025-12-31 37773743 2024-12-31 37773743 2025-01-01 c:RetainedEarningsMember 37773743 2025-12-31 c:RetainedEarningsMember 37773743 2025-01-01 c:InvestmentsInGroupEnterprisesMember 37773743 2025-12-31 c:InvestmentsInGroupEnterprisesMember 37773743 2025-01-01 2025-12-31 37773743 2025-01-01 2025-12-31 1 37773743 2025-01-01 2025-12-31 2 37773743 2025-01-01 2025-12-31 3 37773743 2025-01-01 2025-12-31 1 37773743 2025-01-01 2025-12-31 2 37773743 2025-01-01 2025-12-31 3 37773743 2025-01-01 2025-12-31 4 37773743 2025-01-01 2025-12-31 1 37773743 2025-01-01 2025-12-31 2 37773743 2024-01-01 2024-12-31 37773743 2025-01-01 c:ContributedCapitalMember 37773743 2025-01-01 2025-12-31 c:RetainedEarningsMember 37773743 2025-12-31 c:ContributedCapitalMember 37773743 2025-01-01 c:AcquiredIntangibleAssetsMember 37773743 2025-01-01 2025-12-31 c:AcquiredIntangibleAssetsMember 37773743 2025-12-31 c:AcquiredIntangibleAssetsMember 37773743 2025-01-01 c:FixturesFittingsToolsAndEquipmentMember 37773743 2025-01-01 2025-12-31 c:FixturesFittingsToolsAndEquipmentMember 37773743 2025-12-31 c:FixturesFittingsToolsAndEquipmentMember 37773743 2025-01-01 2025-12-31 c:FixturesFittingsToolsAndEquipmentMember 37773743 2025-01-01 2025-12-31 c:InvestmentsInGroupEnterprisesMember iso4217:DKK xbrli:pure 2155005000 2273003000 2155005000 2273003000 2156772000 2275243000 2597764000 2654267000 1819486000 1968870000 1819586000 1968970000 2597764000 2654267000 1968870000 1819486000 2575407000 2775409000 2155005000 true BDO Statsautoriseret Revisionspartnerselskab Kolding Åpark 8A, 7. sal DK-6000 Kolding 45719375 2026-07-06 Nathan Scott Schaan Årsrapport Frontmatec Group ApS Platinvej 8 6000 Kolding Den uafhængige revisors erklæring 37773743 2016-06-06 Kolding 2025-01-01 2025-12-31 2024-01-01 2024-12-31 BDO Statsautoriseret Revisionspartnerselskab Kolding Åpark 8A, 7. sal 6000 Kolding Today the Board of Directors and Executive Board have discussed and approved the Annual Report of Frontmatec Group ApS for the fi­nan­ci­al year 1 January  - 31 December 2025. The Annual Report is presented in accor­dance with the Da­nish Fi­nan­ci­al State­ments Act. In our opinion the Fi­nan­ci­al Sta­te­ments give a true and fair view of the Company's assets, liabilities and financial position at 31 December 2025 and of the results of the Company's operations for the fi­nan­ci­al year 1 January  - 31 December 2025. The Management Commentary includes in our opinion a fair presentation of the matters dealt with in the Commentary. We recommend the Annual Report be approved at the Annual General Meeting. Kolding 2026-07-06 Massimo Bizzi Nathan Scott Schaan Jennifer Robertson Jennifer Robertson Chairman Kevin Gerard Harry Massimo Bizzi Nathan Scott Schaan To the Shareholder of Frontmatec Group ApS Konklusion We ha­ve au­di­ted the Fi­nan­ci­al Sta­te­ments of Frontmatec Group ApS for the fi­nan­ci­al year 1 January - 31 December 2025, which comprise income statement, Balance Sheet, sta­te­ment of chan­ges in e­qui­ty, no­tes and a summary of significant accounting policies. 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 assets, liabilities and financial position of the Com­pa­ny at 31 December 2025 and of the results of the Com­pa­ny's operations for the fi­nan­ci­al year 1 January - 31 December 2025 in accordance with the Da­nish Fi­nan­ci­al State­ments Act.   Basis for OpinionGrundlag for konklusion We conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the “Auditor’s Responsibilities for the Audit of the Fi­nan­ci­al Sta­te­ments” section of our report. We are independent of the Com­pa­ny in accordance with the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (including International Independence Standards) (IESBA Code), together with the ethical requirements that are relevant to our audit of the Financial Statements in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We be­lie­ve that the e­vi­den­ce we ha­ve ob­tai­ned is suf­fi­ci­ent and ap­prop­ria­te to pro­vi­de a ba­sis for our con­clu­si­on.   Grundlag for konklusion Ma­na­ge­ment's Re­spon­si­bi­li­ti­es for the Fi­nan­ci­al Sta­te­ments Management is responsible for the preparation of Fi­nan­ci­al Sta­te­ments that give a true and fair view in accordance with the Da­nish Fi­nan­ci­al State­ments Act and for such Internal control as Ma­na­ge­ment determines is necessary to enable the preparation of Fi­nan­ci­al Sta­te­ments that are free from material misstatement, whether due to fraud or error.   In preparing the Fi­nan­ci­al Sta­te­ments, Ma­na­ge­ment is responsible for assessing the Com­pa­ny's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting in preparing the Fi­nan­ci­al Sta­te­ments unless Management either intends to liquidate the Com­pa­ny or to cease operations, or has no realistic alternative but to do so.   Our objectives are to obtain reasonable assurance about whether the Fi­nan­ci­al Sta­te­ments as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Fi­nan­ci­al Sta­te­ments.   As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:   Identify and assess the risks of material misstatement of the Fi­nan­ci­al Sta­te­ments, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.   Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Com­pa­ny's internal control.   Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Ma­na­ge­ment.   Conclude on the appropriateness of Ma­na­ge­ment’s use of the going concern basis of accounting in preparing the Fi­nan­ci­al Sta­te­ments and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Com­pa­ny's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the Fi­nan­ci­al Sta­te­ments or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Com­pa­ny to cease to continue as a going concern.   Evaluate the overall presentation, structure and contents of the Fi­nan­ci­al Sta­te­ments, including the disclosures, and whether the Fi­nan­ci­al Sta­te­ments represent the underlying transactions and events in a manner that gives a true and fair view.   We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.   Statement on Management Commentary Management is responsible for Ma­na­ge­ment Com­men­ta­ry.   Our opinion on the Fi­nan­ci­al Sta­te­ments does not cover Ma­na­ge­ment Com­men­ta­ry, and we do not express any form of assurance conclusion thereon.   In connection with our audit of the Fi­nan­ci­al Sta­te­ments, our responsibility is to read Ma­na­ge­ment Com­men­ta­ry and, in doing so, consider whether Ma­na­ge­ment Com­men­ta­ry is materially inconsistent with the Fi­nan­ci­al Sta­te­ments or our knowledge obtained during the audit, or otherwise appears to be materially misstated.   Moreover, it is our responsibility to consider whether Ma­na­ge­ment Com­men­ta­ry provides the information required under the Danish Financial Statements Act.   Based on the work we have performed, we conclude that Ma­na­ge­ment Com­men­ta­ry is in accordance with the Fi­nan­ci­al Sta­te­ments and has been prepared in accordance with the requirements of the Danish Financial Statements Act. We did not identify any material misstatement of Ma­na­ge­ment Com­men­ta­ry.   Kolding 2026-07-06 BDO Statsautoriseret Revisionspartnerselskab 45719375 BDO Statsautoriseret Revisionspartnerselskab 45719375 Jørn Holm Christian Holdensen Den uafhængige revisors erklæring State Authorised Public Accountant State Authorised Public Accountant mne35808 mne49072 Principal activities Frontmatec Group is a leading global provider of advanced food processing equipment. The Group develops world-class customized solutions for automation in the food industry. The Group is especially renowned for the high-quality systems for the entire value chain of the meat industry – from carcass grading to slaughter lines, cutting and deboning lines and control systems to logistics and packaging.    Recognition and measurement uncertainty Investments in subsidiaries are measured at cost. The measurement of the investment in Frontmatec Tandslet A/S is subject to estimation uncertainty, as the assessment of any impairment is based on an impairment test using a discounted cash flow (DCF) model. Further information regarding the estimation uncertainty is disclosed in note 1.   15341 27432 24564 34645 1172 1278 0 71056 -10395 -79547 -188947 709212 131854 31226 72416 70526 -139904 590365 9480 1655 -149384 588710 0 700787 -149384 -112077 -149384 588710 1012 1733 1012 1733 755000 507000 755000 507000 17000 0 381544 281760 12546 24140 68000 70000 0 2191 7527 5291 401702 313452 39290 65572 440992 379024 100000 100000 0 105000 969000 12174 0 34348 105000 205000 6956 6595 739687 610329 777209 673123 778178 685297 DKK '000Sha­re ca­pi­talRetained earningsTotal Equity at 1 January 20251001.968.8701.968.970 Proposed profit allocation -149.384-149.384 Equity at 31 December 20251001.819.4861.819.586 100000 -149384 100000 1 | Information on significant uncertainties at recognition and measurement Investments in subsidiaries are measured at cost. The measurement of the investment in Frontmatec Tandslet A/S is subject to estimation uncertainty, as the assessment of any impairment is based on an impairment test using a discounted cash flow (DCF) model. The determination of the recoverable amount involves the use of significant estimates and assumptions regarding future developments, which have a material effect on the outcome of the calculation. Key assumptions include: Gross margin: Expected development in revenue and operating profit. WACC (Weighted Average Cost of Capital): Used to discount future cash flows to present value.  The value of the investment is highly sensitive to these assumptions. Consequently, there is significant uncertainties as to whether the carrying amount remains recoverable.  Management has conducted a sensitivity analysis showing that: A decrease in the gross margin of 1 percentage point would reduce the recoverable amount by approximately 29 million DKK.  An increase in the WACC of 1 percentage point would, in isolation, reduce the recoverable amount by approximately 211 million DKK. If these parameters develop unfavorably, there is a risk that the carrying amount may exceed the recoverable amount, which could lead to a need for impairment of the investment. The carrying amount recognised in the annual report thus represents management’s best estimate based on the current assumptions.   20252024 DKK '000DKK '000 2 | Staff costs Ave­ra­ge num­ber of full ti­me em­ploy­ees1619 Wages and salaries 22.78032.391 Pensions 1.6812.122 Social security costs 103132 24.56434.645 16 19 22780 32391 1681 2122 103000 132000 24564 34645 3 | Income from investments in subsidiaries Income from investments in subsidiaries -188.947709.212 -188.947709.212 Income from investments in group enterprises in 2025 consists of impairment loss on investments in the subsidiary Frontmatec Tandslet A/S and received dividens from subsidiaries.  Income from investments in group enterprises in 2024 consists of gains from the sale of investments in the subsidiary Frontmatec Inc., Kansas which was received as an extraordinary dividend during the year.  20252024 DKK '000DKK '000 4 | Other financial income Interest income from group enterprises 20.6358.062 Other interest income 111.21923.164 131.85431.226 20635 8062 111219 23164 131854 31226 5 | Other financial expenses Interest expenses to group enterprises 34.99721.825 Other interest expenses 37.41948.701 72.41670.526 34997 21825 37419 48701 72416 70526 6 | Intangible assets DKK '000Acquired concessions, patents, licences, trademarks and similar rights Cost at 1 January 2025 7.468Additions 130Disposals -50Cost at 31 December 2025 7.548 Amortisation at 1 January 2025 5.735Reversal of amortisation of assets disposed of  -50Amortisation for the year 851Amortisation at 31 December 2025 6.536 Carrying amount at 31 December 20251.012 7468 130000 50000 7548 5735 50000 851000 6536 1012 7 | Property, plant and equipment DKK '000Other plant, fixtures and equipment Cost at 1 January 2025 2.164Additions 569Cost at 31 December 2025 2.733  Depreciation and impairment losses at 1 January 2025 1.657Depreciation for the year 321Depreciation and impairment losses at 31 December 2025 1.978 Carrying amount at 31 December 2025755 Finance lease assets 131 2164 569000 2733 1657 321000 1978 755000 131000 8 | Financial non-current assets DKK '000Investments in subsidiaries Cost at 1 January 2025 2.575.407Additions 200.002Cost at 31 December 2025 2.775.409  Impairment losses and amortisation of goodwill at 1 January 2025 302.404Impairment losses for the year 318.000Impairment losses and amortisation of goodwill at 31 December 2025 620.404 Carrying amount at 31 December 20252.155.005 Investments in subsidiaries (DKK '000) Name and domicileEquityProfit/loss for the yearOwnership Frontmatec Tandslet A/S, Tandslet, Denmark -71.302-141.417100 % - Frontmatec Equipments Inc., St Alselme, Canada 415.26758.512100 % - Frontmatec Holding B.V., Borculo, the Netherlands 10.139-1.555100 % - Frontmatec LLC., Moscow, Russia -38-503100 % - Frontmatec Shanghai Co, Ltd., Shanghai, China -28.157-6.303100 % - Frontmatec SP. ZO.O., Grodzisk, Poland 23994100 % - Frontmatec GmbH, Beckum, Germany 11.906971100 % Frontmatec Skive A/S, Skive, Denmark 49.81120.580100 % Frontmatec Hygiene GmbH, Beckum, Germany 57.296-8.381100 % Accles & Shelvoke, Ltd., Birmingham, United Kingdom 34.20611.470100 % Jining Xinglong Food Machinery Manufacturing Co., Ltd., Xinglong Jining, China -12.095-3.452100 % Frontmatec Sibiu SRL, Sibiu, Romania 21.5131.895100 % AIRA Robotics, S.L., Cardona, Spain 80.45513.295100 % Iltay S.A., Montevideo, Uruguay 13.880-3.091100 % Softvic S.A., Barcelona, Spain 11.09611.490100 % 200002 302404 318000 620404 9 | Long-term liabilities 31/12 2025RepaymentDebt outstanding31/12 2024DKK '000total liabilitiesnext yearafter 5 yearstotal liabilities Lease liabilities 1051050310Other non-current liabilities 12.00411.035019.614 12.10911.140019.924 0 Joint liabilitiesThe Company is jointly and severally liable together with the Parent Company and the other group companies in the joint taxable group for tax on the group’s joint taxable income and for certain possible withholding taxes, such as dividend tax, etc. Tax payable on the Group’s joint taxable income is stated in the annual report of Merlin DK Bidco ApS, which serves as management Company for the joint taxation. 11 | Charges and securities The shares in Frontmatec Tandslet A/S, Frontmatec Skive A/S and Frontmatec Hygiene GmbH are provided as security for all bank debt. The value of the capital investments amounts to T.DKK 1.373.244 bank debt amounts to T.DKK 0. Frontmatec Group ApS issued a guarantee of repayment of any present and future obligation which Merlin Dk Bidco ApS, Frontmatec Tandslet A/S, Frontmatec Skive A/S, Frontmatec GmbH and Frontmatec Hygiene GmbH have or may have towards the Nordea Group. Furthermore, Frontmatec Group ApS has issued a negative pledge to the bank. The Annual Report of Frontmatec Group ApS for 2025 has been presented in accor­dance with the pro­vi­sions of the Da­nish Fi­nan­ci­al State­ments Act for en­ter­pri­ses in re­por­ting class B and cer­tain pro­vi­si­ons ap­ply­ing to re­por­ting class C.  Regnskabsklasse B1truetrueThe Annual Report is prepared consistently with the accounting principles applied last year.   Regnskabsklasse B true Consolidated Financial Statements have not been prepared because the group fulfils the exemption provisions of section 112 of the Danish Financial Statements Act on sub-groups. The Company is included in the consolidated Financial Statements of Merlin DK Bidco ApS, Platinvej 8, 6000 Kolding, CVR No. DK43276301.   Net revenue Revenue from the sale of services is recognised in the income statement when delivery is made to the buyer. Revenue is recognised net of VAT, duties and sales discounts and is measured at fair value of the consideration fixed.   Other external expenses Other external expenses include other production, sales, delivery and administrative costs, including costs of energy, marketing, premises, loss on bad debts,  operating lease expenses, etc   Payments related to operating lease expenses and other lease agreements are recognised in the Income Statement over the contract period. The Company’s total liability concerning operating and other lease agreements are stated under contingencies, etc.    Staff costs Staff costs comprise wages and salaries, including holiday pay and pensions, and other costs of social security etc., for the Com­pa­ny's employees.   Other operating expenses Other operating expenses include items of a secondary nature in relation to the Group’s and the Company’s activities. Losses from sale of intangible assets and property, plant and equipment are also included.   Income from investments in subsidiaries Dividend from sub­si­dia­ri­es is recognised in the financial year in which the dividend is declared. In connection with transfers, potential profits are recognised when the economic rights related to the sold equity interests are transferred, however, at the earliest when the profit has been realised or is regarded as realisable. Moreover, realised losses other than impairments are included where identified.   Financial income and expenses Financial income and expenses include interest income and expenses, financial expenses of finance leases, realised and unrealised gains and losses arising from securities, debt and transactions in foreign currencies, as well as charges and allowances under the tax-on-account scheme, etc. Financial income and expenses are recognised by the amounts that relate to the financial year. Interest income and expenses are calculated on amortised cost prices.   Tax The tax for the year, which consists of the current tax for the year and changes in deferred tax, is recognised in the Income Statement by the share that may be attributed to the profit for the year, and is recognised directly in equity by the share that may be attributed to entries directly to equity.   Intangible fixed assets Acquired goodwill is measured at cost less accumulated amortisation. Goodwill is amortised on a straight-line basis over the expected useful life which is estimated to 2-15 years. The period of amortisation is determined based on an assessment of the acquired Company’s position in the market and earnings profile, and the industry-specific conditions.   Profit or loss from sale of intangible fixed assets is calculated at the difference between the sales price and the carrying amount at the time of the sale. Profit and loss are recognised in the Income Statement under other operating income or other operating expenses.    Property, plant and equipment Other plant, fixtures and equipment are measured at cost less accumulated depreciation and impairment losses.   The depreciation base is cost less estimated residual value after end of useful life.   The cost includes the acquisition price and costs incurred directly in connection with the acquisition until the time when the asset is ready to be used.    Straight-line depreciation is provided on the basis of an assessment of the expected useful lives of the assets and their residual value:   Useful lifeOther plant, fixtures and equipment 3-5 years Profit or loss on sale of property, plant and equipment is stated as the difference between the sales price less selling costs and the carrying amount at the date of sale. Profit or loss is recognised in the Income Statement as other operating income or other operating expenses.   Lease contracts Lease contracts relating to tangible fixed assets for which the Company bears all material risks and benefits attached to the ownership (finance lease, see IAS 17) are recognised as assets in the Balance Sheet. The assets are at the initial recognition measured at the lower of cost stated at fair value and the and present value of the future lease payments. The internal interest rate of the lease contract, or alternatively the Company’s loan interest, is used as discounting factor when calculating the present value. Finance lease assets are hereafter treated as the Group’s and the Company’s other similar tangible fixed assets.   The capitalised residual lease liability is recog­nised in the Balance Sheet as a liability and the interest portion of the lease payment is recog­nised in the Income Statement over the contract period.   Financial non-current assets Investments in sub­si­dia­ri­es are measured at cost. If the cost exceeds the net realisable value, this is written down to the lower value.   Impairment of fixed assets The carrying amount of in­tan­gib­le fi­xed and pro­per­ty, plant and equip­ment to­get­her with fi­xed as­sets, which are not mea­su­red at fair va­lue,, are assessed annually for indications of impairment other than that reflected by amortisation and depreciation.   In the event of impairment indications, an impairment test is made for each asset or group of assets, respectively. If the recoverable amount is lower than the carrying amount, the asset is written down to the recoverable amount.   The recoverable amount is calculated at the higher of the capital value and the sales value less expected costs of a sale. The capital value is determined as the Company's share in the current value of the net cash flows which the subsidiary is expected to generate through its activities and from sale of assets after the end of their useful lives. A discount rate is used which reflects the risk-free market rate and the owners' minimum return on interest requirements for similar assets. The growth rate in the terminal period is determined in accordance with the standards within the industry.   Receivables Receivables are measured at amortised cost which usually corresponds to nominal value. The value is written down to meet expected losses.   Write-off is performed to provide for losses when an objective indication has been assessed to have incurred that a receivable or a portfolio of receivables are impaired. If there is an objective indication that an individual receivable is impaired, the write-off is performed at individual level.   Receivables for which there are no objective indication of impairment at individual level are assessed at portfolio level for objective indication of impairment. The portfolios are primarily based on the debtors’ registered office and credit rating in accordance with the Company’s policy for credit risk management. The objective indicators, which are applied for portfolios, are determined based on the historical loss experiences.   Write-off is determined as the difference between the carrying amount of receivables and the present value of the expected cash flows, including realisable value of any received collaterals. The effective interest rate is used as discount rate for the single receivable or portfolio.   Accruals, assets Accruals recognised as assets include costs incur­red relating to the subsequent financial year.   Tax payable and deferred tax Current tax liabilities and receivable current tax are recognised in the Balance Sheet as the calculated tax on the taxable income for the year, ad­justed for tax on the taxable income for previous years and taxes paid on account.   The Company is subject to joint taxation with Danish Group companies. The current corporation tax is distributed among the joint taxable companies in proportion to their taxable income and with full allocation and refund related to tax losses. The joint taxable companies are included in the tax-on-account scheme. Joint taxation contributions receivable and payable are recognised in the Balance Sheet under current assets and liabilities, respectively.   Deferred tax is measured on the temporary dif­ferences between the carrying amount and the tax value of assets and liabilities.   Deferred tax assets, including the tax value of tax loss carryforwards, are measured at the amount at which the asset is expected to be used within a reasonable number of years, either by setoff against tax on future earnings or by setoff against deferred tax liabilities within the same legal tax entity.   Deferred tax is measured on the basis of the tax rules and tax rates that under the legislation in force on the Balance Sheet date will be ap­pli­cable when the deferred tax is expected to crystallise as current tax. Any changes in the deferred tax resulting from changes in tax rates, are recognised in the income statement, except from items recognised directly in equity.   Liabilities Financial liabilities are recognised at the time of borrowing by the amount of proceeds received less transaction costs. In subsequent periods, the financial liabilities are measured at amortised cost equal to the capitalised value when using the effective interest, the difference between the proceeds and the nominal value being recog­nised in the Income Statement over the loan period.   The amortised cost of current liabilities corresponds usually to the nominal value.   Foreign currency translation Transactions in foreign currencies are translated at the rate of exchange on the transaction date. Exchange differences arising between the rate on the transaction date and the rate on the payment date are recognised in the Income Statement as a financial income or expense. Receivables, payables and other monetary items in foreign currencies that are not settled on the Balance Sheet date are translated at the exchange rate on the Balance Sheet date. The difference between the exchange rate on the Balance Sheet date and the exchange rate at the date when the receivables or payables come into existence recognised in the Income Statement as financial income or expenses. Fixed assets acquired in foreign currencies are translated at the rate of exchange on the transaction date.   Exchange adjustment of intercompany accounts with foreign subsidiaries that are deemed to be an addition to or deduction from the equity of independent subsidiaries are recognised directly in the equity.