BDO Statsautoriseret revisionsaktieselskabLangelandsvej 6DK-5500 Middelfart20222670Årsrapport2025-06-30Robert SchramaThermo-Transit Group A/SOmfartsvejen 16330 PadborgRevisionspåtegning104006861986-09-16Aabenraa2024-01-012024-12-312023-01-012023-12-31BDO Statsautoriseret revisionsaktieselskabLangelandsvej65500MiddelfartPadborg2025-06-30Jens Rømer SodeEdvardas LiachoviciusChairmanJens Rømer SodeViktorija MolyteMarius CatrauskasRobert SchramaKonklusionGrundlag for konklusionMiddelfart2025-06-30BDO Statsautoriseret revisionsaktieselskab20222670Claus UrhøjRevisionspåtegningState Authorised Public Accountantmne27873155853400012952750001159855000364253000307497000274777000395010005283200046983000-1476000447000-1052000-107272000-15740000380250005327900045931000Profit/loss for the year before taxProfit/loss for the year before taxProfit/loss for the year before taxProfit/loss for the year before taxProfit/loss for the year before tax29310000414430003590400052376500045966800036451800018034300017050700012603200059880005628800052244000-6481000-54096000-7592700058000001103600010341000-66919000-17667000-17667000-72743000-7504100092690379875274217.424.323.423.723.7-5.5-0.31.11.934.223.134.437.134.6-135.5-14.116.72832.817471050001485717000006552000122970006600066000135863000010352620000090381000102136000256000150000304646000360616000-190000-84000366766000327879000003378400031381000000541000000-95904000-4054000-190000-8400000-73569000-2241100010725000780300038840002246000220930001948900040930002072000-107272000-15740000-73968000-22321000-72910005751000-200051000-99981000-21491000-73966000-223720001529000175100000152900017510000012153400012206800000856840001137950000044150005417000002116330002412800000000451750001216840001770004210000017700042100045175000121684000213339000243452000451750001216840002163660001864690000026480001676000261260003055400076450000001095100010031000030002285000354800022480002608000001257000542000464800038630000024454300020558700029631000337070001000100000100010000075222000924470002237000238430003197660002980350003186800057550000533105000541487000770430001792340005000005000005000005000000043794000120302000-10599000-7659000003242900013241000075200011500002233000012525100045046000121952000053300000053300000467650004890800000029811000002212100043646000003970000007311600012680100000212800020010000038028000138510000081780001353800000758990009130900014400088000235874000913310003161900056601000579000256300000002340005930004376590002889020003199700057282000510775000415703000319970005728200053310500054148700077043000179234000500000-7659000132410000-99981000-2940000500000-10599000324290005000001203020001150000-73569000-397000-2940000050000043793000753000-99981000-214910003378400031381000-5416000-3736000-729100052200001393000-11797000-325740007354000-1301400026975000-12603900030305000-26420000-669190002522700016783000-1193000-50136000018893000-2016000-7704000-26886000-13423000-5634000-92950000-300000001445430007446200011000700032933000-17225000131020009244700079345000752220009244700059700043100047000450001030002650006000600071100076800018000097000926903113165010002927080000026938000131620000023327000220090000036676600032787900000121300016630002861000721000951200061400001023000152500010725000780300038840002246000164800002861000020445000194890001232000207200022093000194890004093000207200000-73569000-22412000-99981000-21491000-39700040000-99981000-21491000-73966000-22372000104030001040300086510002240008875000152800012955900019606200013691000-602000-3784000-425000215700023221000870000317300000131114000183769000133530007491000822660008274000-1000-1925000-19800001285600002089000306000008610009579000980850008937000121535000856840004416000299470004210000024400017700017700013820001382000120834000-2940000-73569000-5320004379300045175000The groups deferred tax assets are recognised in the balance sheet at DKK 7.645m. The tax asset primarily relates to this years tax losses. The tax asset is recognised on the basis of expectations for the next few years' tax profits in Norway, where the tax losses are expected to be fully utilised. The assessments are based on budgets and managements expectations on profit related to sale of trucks and future profit.37958Regnskabsklasse C, stor virksomhedtrueToday the Board of Directors and Executive Board have discussed and approved the Annual Report of Thermo-Transit Group A/S for the financial year 1 January - 31 December 2024. The Annual Report is presented in accordance with the Danish Financial Statements Act. In our opinion the Consolidated Financial Statements and the Parent Company Financial Statements give a true and fair view of Group's and the Company's assets, liabilities and financial position at 31 December 2024 and of the results of Group's and the Company's operations and cash flows for the financial year 1 January - 31 December 2024. 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. To the Shareholder of Thermo-Transit Group A/S We have audited the Consolidated Financial Statements and the Parent Company Financial Statements of Thermo-Transit Group A/S for the financial year 1 January - 31 December 2024, which comprise income statement, Balance Sheet, statement of changes in equity, notes and a summary of significant accounting policies for both the Group and the Parent Company, as well as consolidated statement of cash flows for the Group. The Consolidated Financial Statements and the Parent Company Financial Statements are prepared in accordance with the Danish Financial Statements Act. In our opinion, the Consolidated Financial Statements and the Parent Company Financial Statements give a true and fair view of the assets, liabilities and financial position of the Group or the Company at 31 December 2024 and of the results of the Group and the Parent Company's operations as well as the consolidated cash flows of the Group for the financial year 1 January - 31 December 2024 in accordance with the Danish Financial Statements Act. Basis for Opinion Grundlag for konklusion We conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the “Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements and the Parent Company Financial Statements” section of our report. We are independent of the Group in accordance with the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (including International Independence Standards) (IESBA Code), together with the ethical requirements that are relevant to our audit of the financial statements in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion. Management's Responsibilities for the Consolidated Financial Statements and the Parent Company Financial Statements Management is responsible for the preparation of Consolidated Financial Statements and the Parent Company Financial Statements that give a true and fair view in accordance with the Danish Financial Statements Act and for such Internal control as Management determines is necessary to enable the preparation of Consolidated Financial Statements and the Parent Company Financial Statements that are free from material misstatement, whether due to fraud or error. In preparing the Consolidated Financial Statements and the Parent Company Financial Statements, Management is responsible for assessing the Group's and the Parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting in preparing the Consolidated Financial Statements and the Parent Company Financial Statements unless Management either intends to liquidate the Group or the Company or to cease operations, or has no realistic alternative but to do so. Our objectives are to obtain reasonable assurance about whether the Consolidated Financial Statements and the Parent Company Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Consolidated Financial Statements and the Parent Company Financial Statements. As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the Consolidated Financial Statements and the Parent Company Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's and the Parent Company's internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management. Conclude on the appropriateness of Management’s use of the going concern basis of accounting in preparing the Consolidated Financial Statements and the Parent Company Financial Statements and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's and the Parent Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the Consolidated Financial Statements and the Parent Company Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group and the Parent Company to cease to continue as a going concern. Evaluate the overall presentation, structure and contents of the Consolidated Financial Statements and the Parent Company Financial Statements, including the disclosures, and whether the Consolidated Financial Statements and the Parent Company Financial Statements represent the underlying transactions and events in a manner that gives a true and fair view. Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the group as a basis for forming an opinion on the Group Financial Statements and the Parent Company Financial Statements. We are responsible for the direction, supervision and review of the audit work performed for purposes of the group audit. We remain solely responsible for our audit opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Statement on Management Commentary Management is responsible for Management Commentary. Our opinion on the Consolidated Financial Statements and the Parent Company Financial Statements does not cover Management Commentary, and we do not express any form of assurance conclusion thereon. In connection with our audit of the Consolidated Financial Statements and the Parent Company Financial Statements, our responsibility is to read Management Commentary and, in doing so, consider whether Management Commentary is materially inconsistent with the Consolidated Financial Statements and the Parent Company Financial Statements or our knowledge obtained during the audit, or otherwise appears to be materially misstated. Moreover, it is our responsibility to consider whether Management Commentary provides the information required under the Danish Financial Statements Act. Based on the work we have performed, we conclude that Management Commentary is in accordance with the Consolidated Financial Statements and the Parent Company Financial Statements and has been prepared in accordance with the requirements of the Danish Financial Statements Act. We did not identify any material misstatement of Management Commentary. The ratios stated in the list of key figures and ratios have been calculated as follows: Gross margin: Gross profit x 100 Net revenue Operating margin: Operating profit/loss x 100 Net revenue Equity ratio: Equity ex. minorities, at year-end x 100 Total equity and liabilities, at year-end Return on equity: Profit/loss after tax x 100 Average equity Principal activities As in previous years, the Parent Company’s principal activities are to own equity investments in the fully owned subsidiary Thermo-Transit Danmark A/S and other consolidated companies. As before, the Group's principal activities are to provide transport and logistics services, including refrigerated and frozen transport across Europe. The Group uses both intra-group assets and third-party service providers to serve its customers. The Group's activities are mainly managed from the headquarters in Denmark and through subsidiaries in Denmark, Norway, Sweden, Finland, Germany, the Netherlands, and Poland. The Group’s customer base is geographically located in the aforementioned countries as well as Southern Europe. The Group is part of the collective Girteka Group, which also has activities within the transport and logistics services across Europe. Moreover, the Group operates terminals which are used for reloading. Events outside normal operations Regulatory Inspection in Norway On 15 November 2023, TTN TRUCKING AS, a wholly owned subsidiary of Thermo-Transit Group A/S, was subject to an unannounced inspection by the Norwegian Labour Inspection Authority, in collaboration with the Norwegian Tax Administration and the Norwegian Public Roads Administration. Thermo-Transit Norway AS was also inspected. Following the inspection, the Labour Inspection Authority issued an order, the Tax Administration notified of a potential reassessment, and the Public Roads Administration submitted a case to the police for evaluation. No charges have been filed, and the Management considers the matter an opportunity to strengthen internal routines and compliance. The Labour Inspection Authority found no irregularities regarding salary or overtime payments. The company has addressed the order, implemented corrective measures, and appealed two matters. No fines have been imposed. The Norwegian Public Roads Administration has referred a matter to the police for assessment. Neither the company nor any employees have been charged. The Management considers it uncertain whether there is a legal or factual basis for further proceedings. Preliminary assessments indicate that any deviations may be linked to individual driver behavior or insufficient instruction by a third-party partner. The Management is following up to ensure all routines are clearly communicated and enforced. The Tax Administration is reviewing the basis for employer contributions for the years 2018–2023. The company, with support from external advisors, disputes the basis for reassessment and expects a satisfactory resolution. The Management continues to monitor the situation closely and is committed to ensuring full compliance with all regulatory requirements. Development in activities and financial and economic position Management considers the 2024 result to be unsatisfactory. The significant increase in revenue compared to the prior year is primarily attributable to the closer operational alignment with Girteka Group in relation to the execution of the fish logistics business in Scandinavia. This alignment includes a larger dedicated fleet to support our business and strengthened collaboration, which has resulted in a higher level of activity and a more integrated approach to servicing key customers in the region. Average revenue from fish customers declined during the year. This is primarily due to a significant drop of approx. 20% in quotas for whitefish and a decrease in salmon volumes due to disease in the stock. Despite rising prices for the Company’s primary fish products – whitefish (cod) and red fish (salmon) – it has not been possible to maintain the expected revenue and profit generation. Lower fish volumes at the Padborg terminal further reduced activity levels and the utilization of the facilities. In addition, the Company experienced overcapacity in its own vehicle fleet, which reduced utilization rates and negatively affected operating results. The Group maintains its strategic goal of expanding in Finland and Norway via subsidiaries in the respective countries. These markets remain a key focus in the Company’s growth strategy. During the year, several management restructurings were implemented to optimize the business model and cost base. Management considers these measures an important step toward realizing synergies within its operation. The implementation of all these changes is expected to contribute positively to future growth and support increase market share in core product areas. Going concern assumptions The annual report has been prepared based on the going concern assumption. Management assesses that the company has adequate resources to continue its operations for the foreseeable future. As part of this assessment, it is noted that the company continues to receive financial and operational support from its parent company, Girteka Group UAB. This support has been confirmed in a formal letter of support issued by the parent company. Based on this, management considers the going concern assumption to be appropriate. Profit/loss for the year compared to the expected development The result for the year did not meet expectations. The pre-tax loss constitute DK 107,7 million, compared to a pre-tax loss of DKK 15,7 million in 2023. In 2023, the expectations for 2024 were a profit before tax of DKK 0 to -20 million. The result was primarily due to decrease in fish exports caused by salmon disease and a decrease in the fishing quota of whitefish in Norway. This has meant decreasing quantities in the terminal volumes and underutilization of the fleet. Revenue growth in 2024 exceeded initial expectations, driven by strong customer retention following the implementation of the Seafood Logistics Strategy, as well as increased market demand. Additionally, the company successfully re-engaged former customers and secured new business during the year. However, despite the positive revenue development, 2024 has been a challenging year for the industry as a whole—and for Thermo-Transit in particular. Additionally operational inefficiencies and elevated cost levels in our terminal operations have significantly impacted profitability and contributed to the negative financial result for the year. A result before tax in 2025 is therefore expected in the range of DKK 0 and DKK -20 million. Significant events after the end of the financial year As part of our ongoing strategy to focus on our core business within transport and logistics, Thermo-Transit Group has initiated an optimization of its property portfolio in Padborg. While the company has historically invested in real estate, our strategic priority remains clear: to strengthen our position as a leading provider of reliable logistics and transport solutions, not as a property owner. In line with this approach, we have initiated the sale of four properties in Padborg during the first quarter in 2025. The net book values as at 31 December 2024 are not affected. Following the balance sheet date, Thermo-Transit Denmark A/S, as the sole shareholder of Thermo-Transit Poland Sp. z o.o., resolved to initiate a group redundancy procedure at its Polish subsidiary due to market conditions. These circumstances do not affect the figures recognized in the consolidated financial statements as of December 31, 2024. No other events have occurred after the end of the financial year of material importance for the company's financial position. Financial risk The Group has considerable sales and purchase activities in foreign currencies, gives credit to customers, has raised variable-interest loans. Moreover, group companies owe considerable amounts to the Parent Company. Accordingly, the Group has a risk exposure in relation to changes in exchange rates, interest rates and customers’ credit rating. In addition, the Parent Company is materially exposed to changes in Group Companies credit rating. Currency Risks: Purchases and sale transactions are mainly in DKK, NOK, EUR, PLN, and SEK. The Group’s sale transactions in EUR and NOK are, as far as possible, hedged by offsetting purchase transactions in the same currency. External activities in NOK, SEK, and PLN are limited. The Group has a policy to limit currency risks, especially related to sales in NOK. As described above, this is attempted through natural hedging. Exchange rate adjustments of investments in subsidiaries, which are independent entities, are recognized directly in equity. Currency risks related to this are generally not hedged, as the Group believes that ongoing hedging of such long-term investments would not be optimal from an overall risk and cost perspective. No speculative currency positions are taken. Interest rate risk: The Group is only impacted by changes in the interest-rate level to a limited extent. In connection with the continued growth of operations and to support the Group's financial position following the losses incurred in 2023 and 2024, the company has received increased financing from its parent company, Girteka Group. All financing arrangements have been made on an arm’s-length basis and reflect market terms. The additional funding ensures sufficient liquidity to support ongoing operations and strategic initiatives. No positions are entered into to hedge interest rate risks. Credit risk: The Group's credit to customers is in accordance with standard terms, which have been set out by Management, according to which the customers are categorised according to size and duration of the business relationship. The Parent Company does not have any security for its receivables from the group companies of which a share is not planned to be repaid within a reasonable time frame. The remaining share consists mainly of trade receivables, which are settled currently. Price risk The Group maintains a leading position in the transportation of fresh fish from Northern to Southern Europe. Our pricing is subject to market dynamics, including seasonal fluctuations in fish volumes, competition, and cost developments. We seek to manage price and volume risks through long-term customer relationships, flexible capacity planning, and contractual structures that support price stability. As part of this, fuel price volatility is mitigated through diesel floater mechanisms embedded in customer contracts, allowing freight rates to adjust in line with significant changes in fuel costs. Future expectations Management expects a significant increase in revenue in 2025, partly due to the introduction of the new kilometer-based road tax. As this tax leads to increased operating costs, it has been necessary to adjust customer prices to ensure that the costs of running the business remain covered. Prices have been adjusted to cover increased costs and maintain a sustainable business model, under the new market conditions. Furthermore, the economic outlook in core markets is more positive than anticipated in early 2024. The Group expects a turnover in the region of DKK 2 billion in 2025. As the Group is primarily engaged in stable products (fresh/frozen fish, vegetables, fruit), Management sees opportunities for growth within these segments and expects, as previously mentioned, a result before tax between DKK 0 and DKK -20 million. The “Seafood Logistics Strategy” launched in early 2024 is progressing as planned and is expected to be fully implemented by mid-2025. The strategy includes, among other things, a modernization and adaptation of the existing vehicles fleet to meet future operational and environmental requirements. The full effects of the strategy are expected to be visible in results from 2025 onwards and will positively support the Group’s profitability and efficiency. As part of an active process to rightsize our business model and improve operational efficiency, the Group has initiated measures to align its fleet capacity with current and projected market demand. This includes the decision to downsize fleet operations in both Norway and Poland. The objective is to enhance flexibility, strengthen our competitive offering, and ensure that our services remain well aligned with the evolving needs of the transport and logistics industry. These actions are a natural continuation of our efforts to maintain a sustainable and agile operating model in a challenging market environment. Corporate social responsibility (CSR) report Business model and risks As a specialised transport company with a leading role in the movement of fresh fish from Northern to Southern Europe, we recognise our responsibility to operate sustainably — both environmentally and socially. Our CSR strategy reflects our position as a critical link in the seafood supply chain and focuses on practical, measurable efforts to reduce our environmental impact and promote responsible business practices. We work continuously to lower the environmental footprint of our operations by improving fleet efficiency, investing in lower-emission vehicles, and using route optimisation tools to reduce fuel consumption. Social responsibility remains a key focus area. We are committed to maintaining good and fair working conditions, ensuring occupational health and safety, and supporting the ongoing development of our drivers and logistics personnel. Throughout our operations, we maintain a strong focus on business ethics, anti-corruption, and data protection — particularly in the handling of international transport and customs processes. Strategic, social, and environmental risks are managed and mitigated through effective risk management and systematic due diligence. The Group actively engages in due diligence processes through its management system and in close cooperation with the Parent Company. Girteka Group’s Code of Conduct is rooted in the group’s values and applies to all employees, managers, and board members across the organization. Great emphasis is placed on integrity and responsible behavior, and employees are strongly encouraged to speak up if they experience or suspect violations of the Code of Conduct. Any concerns can be raised with the immediate supervisor, senior management, or through the group’s whistleblower system. This applies to all relevant areas, including environment and climate, social conditions, employee relations, human rights, and the fight against corruption and bribery—as well as any other matters that conflict with the group’s ethical guidelines. The Group actively promotes corporate social responsibility by encouraging partners, subcontractors, and other stakeholders in the value chain to adhere to the principles of the UN Global Compact. By creating jobs, the Company also contributes to supporting both economic growth and societal development in the regions where it operates. Due Diligence Process In accordance with §99a of the Danish Financial Statements Act, we have implemented a due diligence process to identify, assess, prevent, and mitigate potential negative impacts on human rights, labour standards, the environment, and anti-corruption. Our due diligence framework includes: • Regular internal risk assessments across relevant business areas • Integration of environmental and social considerations in operational decisions • Periodic reviews of compliance with our internal Code of Conduct • Clear internal channels for reporting and handling of ethical concerns We review the effectiveness of these measures on an ongoing basis. In 2024, no material breaches were identified through our due diligence process. Where minor risks were observed, they were addressed through internal corrective actions. We report annually on our CSR efforts and due diligence outcomes as part of our management report. Our objective is to ensure a responsible and transparent operation that contributes to long-term value for customers, employees, and society. Environment and climate The Group has a dedicated environmental and climate policy with a particular focus on reducing greenhouse gas emissions. To ensure an active contribution to the green transition, the Group systematically works on developing and improving its Environmental Management System (EMS), which is certified according to the ISO 14001:2015 standard. The EMS enables the identification of both risks and opportunities for improvement and commits the group to several key objectives, including: • Applying green criteria in procurement • Measuring and reporting customers’ CO2 emissions • Preventing environmental incidents and managing them effectively when they occur • Developing green transport solutions • Monitoring and complying with environmental legislation in all operating countries • Reducing pollution, CO2 emissions, and waste volumes • Increasing waste sorting and recycling • Raising awareness and engagement among employees and partners The EMS program covers all organizational activities—from offices and garages to outsourced services and subcontractors—with the aim of integrating environmental considerations throughout the entire value chain. CO2 emissions represent the most significant environmental and climate-related risk associated with the Group’s activities, as the transport sector accounts for approximately 25% of total CO2 emissions in the EU, with road transport making up 71% of that. A reduction of just 20% in emissions per vehicle can therefore have a noticeable impact on the overall climate footprint. The Group has launched several initiatives aimed at reducing its CO2 footprint. In addition to the overarching goal of providing more climate-friendly transport services, these efforts also serve a business purpose by preparing for future requirements such as CO2 taxes and emission-free urban zones. Customers are increasingly interested in ESG data and CO2 accounts, which are made available upon request through the Parent Company. Additionally, transport solutions based on HVO diesel are offered as a lower-impact alternative. Beyond technological measures, the group also focuses on behavioral change, including incentives for eco-driving, where drivers are rewarded for fuel-efficient driving. Eco-driving also contributes positively to road safety, as drivers become better at anticipating traffic situations, reducing the risk of accidents, and driving more attentively. The Group believes these initiatives have had a positive effect both in terms of reducing its climate footprint and improving traffic safety. Going forward, improved and more comprehensive measurements—especially of greenhouse gases—are expected to provide clearer documentation of results. Social matters and staff matters Employee health, safety, and well-being are core values for the Group. It is essential to ensure a healthy physical and psychological working environment — whether the work is carried out on the road, at Group’s own facilities, or at customer locations. The Group takes a proactive approach to occupational health and safety and is committed to continuous monitoring, improvement, and prevention. All employees are responsible for contributing to a safe work environment by following safety regulations and exercising care to prevent accidents. The industry faces general risks related to drivers’ pay and working conditions, including terms of employment, remuneration, working hours, and accommodation. Some of these risks are particularly present in the value chain, where the Group has limited direct control. However, the Group assesses that the risk level in its own operations is lower than the industry average, partly because its core service is based on high-quality deliveries, which require specific driver competencies and justify a higher price point. Drivers are employed by the Group’s Polish and Norwegian entities of the Group, which regularly report to Denmark on employment conditions, training, and work environment. Working time regulations are consistently followed, regardless of the driver’s nationality, to ensure a high and uniform professional standard. Employment contracts are designed to attract and retain qualified and competent employees. Own driver hotels are offered which meet basic needs and ensure proper conditions with access to kitchen facilities, bathrooms/toilets, and opportunities for rest areas. Cultural differences among residents are considered to create a safe and respectful environment. Safety is a high priority in the Group’s policy, especially regarding driving in Norway, where specific requirements are placed on driver competencies. For example, winter tires are used as part of preventive measures. The Group believes that its targeted efforts have had a positive impact on employee health, safety, and well-being. Going forward, a more data-driven approach is expected as a result of improved and more comprehensive measurements in social and personnel-related areas. Human rights Until March 2025 the Goruo did not have an actual human rights policy. There are assessed to be no significant risks of humas rights violations. The Gorup primarily operates in Northern Europe countries and not to any significant extent in regions where there is a risk of human right breaches. From March 2025 Human Rights were added to the Groups Code of Conduct as decribed below. Thermo-Transit is fully committed to upholding and promoting internationally recognized human rights across all aspects of its operations and business relationships. Our policy outlines our commitment to respect and protect human rights in accordance with the following frameworks: • The United Nations Universal Declaration of Human Rights • The International Labour Organization (ILO) Declaration on Fundamental Principles and Rights at Work • The Ten Principles of the UN Global Compact • The International Bill of Human Rights We do not tolerate human rights abuses in any form, including but not limited to forced labor, child labor, human trafficking, and any form of discrimination or degrading treatment. This policy applies to all employees of Thermo-Transit Group, as well as to contractors, suppliers, and business partners. Thermo-Transit integrates human rights considerations into its daily operations through a number of systems and procedures: • Supplier Code of Conduct: All suppliers and business partners must adhere to our Supplier Code of Conduct, which includes strict provisions on labor rights, working conditions, and ethical treatment. • Employee Training: Key employees, especially in procurement and HR, receive regular training on human rights awareness, responsible sourcing, and how to identify and address risks. • Contractual Requirements: Contracts with suppliers and service providers include clauses that require compliance with applicable human rights standards. • Whistleblower Channel: We have an anonymous whistleblower system in place for reporting human rights concerns or violations, which is accessible to employees and third parties. • Management Responsibility: Responsibility for human rights compliance is anchored at senior management level, with oversight from the Legal & Compliance function. Due Diligence Processes We conduct due diligence to identify, prevent, and mitigate potential human rights risks in our own operations and across our supply chain. Our approach includes: • Risk Mapping: Regular assessments of geographic and industry-related human rights risks in our operations and supply chain. • Supplier Screening: Initial and ongoing evaluation of key suppliers based on human rights risk indicators. • Stakeholder Engagement: We maintain dialogue with employees, worker representatives, and external stakeholders to identify concerns and continuously improve our practices. Future Expectations For 2025 and beyond, Thermo-Transit will focus on deepening the integration of human rights across all levels of the organization. Key goals include: • Extending supplier audits • Internal work group with cross-functional/geographical focus on Human Rights The Group aims to ensure there are no breaches in the upcoming year. Anti-Corruption and Bribery The Group has implemented a set of clear and binding rules to combat corruption, bribery, and money laundering. These guidelines are an integral part of our business ethics and apply to all employees, managers, board members, and third parties acting on behalf of the group. General Principles The Group maintains a zero-tolerance policy toward any form of bribery and corruption - without exceptions, regardless of local practices or legislation. Ordinary and appropriate hospitality may be accepted, but any doubts must be clarified with the immediate supervisor or management. Definition and Scope Bribery includes any offer, promise, gift, fee, loan, or other form of value given or received as an incentive to influence a decision or action that would not otherwise have occurred. The prohibition of bribery extends beyond monetary payments and includes: • Payment of travel expenses • Disproportionately large entertainment or hospitality expenses • Charitable donations with hidden motives • Products, services, or other financial/personal benefits Kickbacks and Facilitation Payments Kickbacks are considered a form of bribery and are strictly prohibited. It is not permitted to offer or accept kickbacks under any circumstances. Facilitation payments - i.e., small payments to public officials to expedite or secure the performance of a task they are already obligated to carry out - are also prohibited, even if they are commonly accepted locally. Money Laundering and Terrorism Financing The Group does not tolerate any form of money laundering. It is strictly forbidden to engage in activities that conceal the illegal origin of funds or attempt to legitimize proceeds from criminal acts. This also includes any involvement in the financing of terrorism or other organized crime. Any employee who becomes aware of or suspects a violation of these guidelines is encouraged to report it to their immediate supervisor, senior management, or through the Group’s whistleblower system. A whistleblower scheme has been established and is managed by a lawyer. There is a policy and procedure in place for handling cases submitted through the whistleblower system. All employees have been informed via email and the employee handbook, and the scheme is also referenced in the Group’s Code of Conduct, which can be accessed via the following link: https://www.thermo-transit.com/wp-content/uploads/2025/04/2025-03-TT-CoC.pdf The policy has not been breached in 2024.The Group aims to ensure there are no breaches in the upcoming year. Report of data ethics The Group works actively with data ethics and data protection and has established policies in accordance with GDPR and the applicable data protection regulation. The aim is to ensure that personal data and confidential information are handled with high integrity and in full respect of individual rights and the group’s values. The Group and its employees are obligated to respect and protect confidential information related to the group, customers, suppliers, and other business partners. Employees must not disclose confidential or proprietary information to unauthorized parties, either during or after the termination of their employment, in accordance with applicable local legislation. To ensure compliance with data protection legislation, the Group has issued binding internal guidelines that protect personal data from unauthorized access, copying, misuse, theft, or destruction. Active efforts are made to ensure that only individuals with the necessary authorization have access to sensitive data. Personal data is defined as any information that can directly or indirectly identify a person, including name, photo, email address, bank details, employment data, and IP address. Particularly sensitive personal data may include information about ethnic origin, political or religious beliefs, etc. All employees are informed about the policy through the employee handbook and directly via email. In 2024, there were no recorded breaches of the Group’s data ethics policy. Group DKK '000 Share capital Fair value reserve, currency translation of foreign entities Retained profit Total Equity at 1 January 2024 500 -7.659 132.410 125.251 Proposed profit allocation, according to note 6 -99.981 -99.981 Change fair value reserves Value adjustments in the year -2.940 -2.940 Equity at 31 December 2024 500 -10.599 32.429 22.330 Parent Company DKK '000 Share capital Reserve for net revaluation according to equity value Retained profit Total Equity at 1 January 2024 500 120.302 1.150 121.952 Proposed profit allocation, jf. note 6 -73.569 -397 -73.966 Other legal bindings Foreign exchange adjustments -2.940 -2.940 Equity at 31 December 2024 500 43.793 753 45.046 Group Parent Company 2024 2023 2024 2023 DKK '000 DKK '000 DKK '000 DKK '000 1 | Net revenue Norway 723.757 655.630 0 0 Europe 883.075 668.967 0 0 Revenue other countries 140.573 161.120 0 0 1.747.405 1.485.717 0 0 Segment details (activities) Refrigerated transport 1.747.405 1.485.717 0 0 1.747.405 1.485.717 0 0 2 | Fee to statutory auditor Total fee BDO 1.411 1.464 233 148 1.411 1.464 233 148 Specification of fee Statutory audit 597 431 47 45 Tax consultancy 103 265 6 6 Other services 711 768 180 97 1.411 1.464 233 148 3 | Staff costs Average number of full time employees 926 903 1 1 Wages and salaries 316.501 292.708 0 0 Pensions 26.938 13.162 0 0 Social security costs 23.327 22.009 0 0 366.766 327.879 0 0 The parent company's employees only include the management team, who do not receive remuneration. There are no remuneration or wages paid to Management or Board of Directors in the group. 4 | Other financial income Group enterprises 1.213 1.663 2.861 721 172.110 Other interest income 9.512 6.140 1.023 1.525 10.725 7.803 3.884 2.246 5 | Other financial expenses Group enterprises 1.648 0 2.861 0 173.107 Other interest expenses 20.445 19.489 1.232 2.072 22.093 19.489 4.093 2.072 6 | Proposed distribution of profit Allocation to reserve for net revaluation according to equity method 0 0 -73.569 -22.412 514.100.04 Retained earnings -99.981 -21.491 -397 40 -99.981 -21.491 -73.966 -22.372 7 | Intangible assets Group DKK '000 Goodwill Cost at 1 January 2024 10.403 Cost at 31 December 2024 10.403 Amortisation at 1 January 2024 8.651 Amortisation for the year 224 Amortisation at 31 December 2024 8.875 Carrying amount at 31 December 2024 1.528 8 | Property, plant and equipment Group DKK '000 Land and buildings Other plants, machinery, tools and equipment Leasehold improvements Cost at 1 January 2024 129.559 196.062 13.691 Exchange adjustment at closing rate -602 -3.784 -425 Additions 2.157 23.221 87 Disposals 0 -31.730 0 Cost at 31 December 2024 131.114 183.769 13.353 Depreciation and impairment losses at 1 January 2024 7.491 82.266 8.274 Exchange adjustment -1 -1.925 -198 Reversal of depreciation of assets disposed of 0 -12.856 0 Depreciation for the year 2.089 30.600 861 Depreciation and impairment losses at 31 December 2024 9.579 98.085 8.937 Carrying amount at 31 December 2024 121.535 85.684 4.416 Finance lease assets 29.947 9 | Financial non-current assets Group DKK '000 Rent deposit andother receivables Cost at 1 January 2024 421 Exchange adjustment at closing rate 0 Additions 0 Disposals -244 Cost at 31 December 2024 177 Carrying amount at 31 December 2024 177 Parent Company DKK '000 Equity investments in group enterprises Cost at 1 January 2024 1.382 Cost at 31 December 2024 1.382 Revaluation at 1 January 2024 120.834 Exchange adjustment -2.940 Profit/loss for the year -73.569 Other adjustments -532 Revaluation at 31 December 2024 43.793 Carrying amount at 31 December 2024 45.175 Investments in subsidiaries Name and domicile Ownership Thermo-Transit Danmark A/S, Padborg, Danmark 100 % Thermo-Transit Finland OY, Rovaniemi, Finland 100 % Thermo-Transit Norge AS, Ålesund, Norge 100 % --TTN Eindomme AS, Ålesund, Norge 100 % --TTN Trucking AS, Ålesund, Norge 100 % TT Trucking GmbH, Harrislee, Tyskland 100 % Barsøe GmbH, Harrislee, Tyskland 100 % Thermo-Transit Sverige AB, Göteborg, Sverige 100 % Thermo-Transit Poland SP. Z O. O., Barlinek, Polen 100 % --Thermo-Transit Properties Poland SP Z.O.O, Barlinek, Polen 100 % Thermo-Transit Holland, Waddinxveen, Holland 100 % TTDK Hermesvej 6, Padborg, Danmark 100 % TTDK Thorsvej 10, Padborg, Danmark 100 % TTDK-Ejendomme ApS, Padborg, Danmark 100 % TTK-Ejendomme2 ApS, Padborg, Danmark 100 % Information on equity and results of investments in subsidiary companies has been omitted in accordance with the exception in the Danish Financial Statements Act, section 97 a, subsection 3. 10 | Deferred tax assets The provision for deferred tax is related to differences between the carrying amount and tax base of receivables, tangible fixed assets, including recognized finance lease contracts and tax losses carried forward. Group Parent Company 2024 2023 2024 2023 DKK '000 DKK '000 DKK '000 DKK '000 Deferred tax assets, beginning of year -533 350 0 0 450.600.01 Deferred tax of the year, income statement 8.178 -883 0 0 450.600.02 Deferred tax assets 31 December 2024 7.645 -533 0 0 The groups deferred tax assets are recognised in the balance sheet at DKK 7.645m. The tax asset primarily relates to this years tax losses. The tax asset is recognised on the basis of expectations for the next few years' tax profits in Norway, where the tax losses are expected to be fully utilised. The assessments are based on budgets and managements expectations on profit related to sale of trucks and future profit. 11 | Prepayments and accrued income Prepayments and accrued income contain prepaid expenses, primarily insurance and subscriptions which concern the following financial year. 2024 2023 DKK '000 DKK '000 12 | Share capital Allocation of Share capital: A-Shares, 500 unit in the denomination of 1.000 DKK 500 500 500 500 13 | Long-term liabilities Group 31/12 2024 Repayment Debt outstanding 31/12 2023 DKK '000 total liabilities next year after 5 years total liabilities Mortgage debt 48.894 2.128 33.728 50.909 Bank loan 38.028 38.028 0 31.732 Lease liabilities 30.299 8.178 0 57.185 Other liabilities 4.913 1.080 3.833 8.710 Deposit 397 0 397 0 122.531 49.414 37.958 148.536 The parent company has not recognized a deferred tax asset of DKK('000) 107. The tax asset primarily relates to losses carried forward. The tax asset has not been recognised because there is uncertainty associated with utilisation within a period of 1 - 3 years. The Group has not recognized a deferred tax asset of DKK('000) 21.577. The tax asset primarily relates to losses carried forward. The tax asset has not been recognised because there is uncertainty associated with utilisation within a period of 1 - 3 years. Contingent liabilities The Group has assumed operating rental and lease obligations which amount to DKK (’000) 28.175 at the balance sheet date. The lease contracts have a period of non-terminability of up to 41 months. The Group has signed agreements on lease of premises which have a period of non-terminability of up to 6 years. The total rent liability is DKK (‘000) 85.643. During the financial year 2024, one of the Group’s Norwegian subsidiaries – TTN Trucking AS – received a notice (not a final decision) from the Norwegian Tax Administration regarding a proposed reassessment of employer’s payroll tax contributions for prior years (2018–2023). The company has submitted a formal response contesting the reassessment and, based on legal and tax advice from top tier external counsel, management believes it is highly probable that the matter will be resolved without any financial outflow and that the reassessment will be dismissed in full. Accordingly, no provision has been recognized in the financial statements. Should the authorities ultimately uphold the reassessment, any additional tax liability would amount to approximately NOK 40 million, excluding penalties (0-40%) and interest. As security for engagement with Jyske Bank, the Parent Company has granted a charge of the share capital of the subsidiary Thermo-Transit Danmark A/S. The Parent Company has provided a guarantee of all balances with with Thermo Transit Norge AS, Barsøe GmbH, TT-Trucking GmbH, TTDK-Ejendomme2 ApS, TTDK-Ejendomme ApS, TTDK Hermesvej 6 ApS, TTDK Thorsvej 10 ApS, Thermo Transit Finland OY and Thermo Transit Danmark A/S. Joint liabilities The Danish companies of the group is jointly and severally liable for tax on the group’s jointly taxed income and for certain possible withholding taxes such as dividend tax and royalty tax, and for the joint registration of VAT. Tax payable of the group’s jointly taxed income amounts to DKK (‘000) 0 at the Balance Sheet date. 15 | Charges and securities The Group has provided security to Jyske Bank of DKK 50m in the form of an all money mortgage. The company charge includes fixtures, fittings, tools and equipment, leasehold improvements and trade receivables. The carrying amount of the assets charged as collateral constitute DKK 81.847m. As security for an engagement with Jyske Bank, the Group has provided security in mortgages registered to the mortgagor of DKK 14,6m related to operating resources, inventory and equipment. The carrying amount of the assets charged as collateral constitute DKK 36,5m. As security for an engagement with Jyske Bank, the Group has provided security in mortgages registered to the mortgagor of DKK 20.9m for the properties: Hermesvej 2A, DK-6330 Padborg; Omfartsvejen 1, DK-6330 Padborg; Thorsvej 10, DK-6330 Padborg; and Hermesvej 6, DK-6330 Padborg. As security for mortgage debt, the Group has provided security of DKK 62,7m in total of the properties: Omfartsvejen 1, DK-6330 Padborg; Hermesvej 6, DK-6330 Padborg; and Sundvegen 83,87 and 89, NO-1929 Auli. The carrying amount of the properties constitutes DKK 118m in total. The Group has provided floating charge to Jyske Bank of DKK 25m with security in the Group's Norwegian operating equipment. The carrying amount of the assets charged as collateral constitute a total of DKK 40.9m. Jyske Bank has issued a payment guarantee of DKK 10m in relation to SKAT (the Danish tax authorities). The Group has provided bank guarantees to third parties totaling DKK 6m. As security for the tax authorities in Norway, security has been provided as deposits on restricted accounts totaling DKK 5m. 16 | Related parties The Company's related parties include: - Girteka Europe West - Girteka Competence center, UAB, sister company - GirDeTrans GmbH, sister company - Classtrucks Poland Sp. Z.o.o, sister company - ME Trailers UAB, sister company - Girteka Group, UAB, parent company - Girteka Nordic UAB, sister company Controlling interest Girteka Group UAB, Laisvés pr. 36 LT-04340 Vilnius, Lithuania, is the principal shareholder and parent Company. Mindaugas Raila, Amenu Str. 4-8, Vilnius, Lithuania, ultimate principal shareholder. Transactions with related parties (1) Controlling parties are companies limited to Girteka Holding UAB group (2) Other related parties are all other companies in the Girteka Group UAB group 17 | Going concern assumptions The annual report has been prepared based on the going concern assumption. Management assesses that the company has adequate resources to continue its operations for the foreseeable future. As part of this assessment, it is noted that the company continues to receive financial and operational support from its parent company, Girteka Group UAB. This support has been confirmed in a formal letter of support issued by the parent company. Based on this, management considers the going concern assumption to be appropriate. 18 | Significant events after the end of the financial year As part of our ongoing strategy to focus on our core business within transport and logistics, Thermo-Transit Group has initiated an optimization of its property portfolio in Padborg. While the company has historically invested in real estate, our strategic priority remains clear: to strengthen our position as a leading provider of reliable logistics and transport solutions, not as a property owner. In line with this approach, we have initiated the sale of four properties in Padborg during the first quarter in 2025. The net book values as at 31 December 2024 are not affected. Following the balance sheet date, Thermo-Transit Denmark A/S, as the sole shareholder of Thermo-Transit Poland Sp. z o.o., resolved to initiate a group redundancy procedure at its Polish subsidiary due to market conditions. These circumstances do not affect the figures recognized in the consolidated financial statements as of December 31, 2024. No other events have occurred after the end of the financial year of material importance for the company's financial position. 19 | Consolidated Financial Statements The Company is a part of the Consolidated Financial Statements of Girteka Holding UAB, Laisvés pr. 36, LT-04340 Vilnius, Lithuania, Company ID: 304869444. The Annual Report of Thermo-Transit Group A/S for 2024 has been presented in accordance with the provisions of the Danish large-size Financial Statements Act for enterprises in reporting class C . Regnskabsklasse C, stor virksomhed1 true The Annual Report is prepared consistently with the accounting principles applied last year. The Consolidated Financial Statements include the Parent Company Thermo-Transit Group A/S and the subsidiaries in which Thermo-Transit Group A/S directly or indirectly holds more than 50% of the voting rights or in any other way has a controlling influence. Enterprises in which the Group holds between 20% and 50% of the voting rights and exercises significant, but not controlling influence, are considered associates, see the Group structure. The Consolidated Financial Statements consolidate the Financial Statements of the Parent Company and the subsidiaries by combining uniform accounts items. Intercompany income and expenses, shareholdings, intercompany accounts and dividend, and realised and unrealised gains and losses arising from transactions between the consolidated enterprises are fully eliminated in the consolidation. The date of takeover is the date at which the Group gains actual control over the acquired enterprise. Acquired enterprises are recognised in the Consolidated Financial Statements under the acquisition method, reassessing all identified assets and liabilities to fair value at the acquisition date. The fair value is calculated based on acquisitions made in an active market, alternatively calculated using generally accepted valuation methods. At calculation of the fair value of investment properties, a discounted cash flow model is applied based on discounted cash flow of future earnings. Operating equipment is recognised at fair value based on an assessor’s opinion, using an overall assessment of the production equipment. Deferred tax of the acquired reassessments with the exception of goodwill is recognised. Positive differences (goodwill) between the acquisition value and fair value of acquired and identified assets and liabilities are recognised in intangible fixed assets as goodwill and amortised systematically in the Income Statement under an individual assessment of the useful life. Negative differences are recognised in the Income Statement at the date of acquisition. The difference from acquired enterprises is DKK (‘000) 0. When acquiring new companies, in which there are minority interests, the minority interests are recognised and measured at fair value, inclusive of goodwill on the share of the minority interests. Equity interests in subsidiaries are set off by the proportional share of the subsidiaries’ fair value of net assets and liabilities at the date of takeover. Investments in associates are measured in the balance sheet at the proportional share of the equity value of the enterprises, calculated under the accounting policies of the Parent Company and eliminating proportionally any unrealised intercompany gains and losses. The proportional share of the results of the associates is recognised in the income statement after elimination of the proportional share of internal gains and losses. Net revenue Net revenue from sale of transportations is recognised in the income statement if supply and risk transfer to purchaser has taken place before the end of the year. Net revenues is recognised exclusive of VAT, duties and less discounts related to the sale. Transport costs Transport costs comprise costs incurred to achieve the net revenue for the year. Other operating income Other operating income includes items of a secondary nature in relation to the enterprises' principal activities, including profit from sale of intangible and tangible assets, operating loss and conflict compensations, as well as salary refunds. Compensations are recognised when the income is estimated to be realisable. Other external expenses Other external expenses include cost of sales, advertising, administration, buildings, bad debts, operational lease expenses, etc. Payments related to operating lease expenses and other lease agreements are recognised in the Income Statement during the continuance of the contract. The Company’s total liability concerning operating and other lease agreements are stated under contingencies, etc. Staff costs Staff costs comprise wages and salaries, including holiday pay and pensions, and other costs of social security etc., for the Group and the Parent Company's employees. Other operating expenses Other operating expenses include items of secondary nature in relation to the enterprises' principal activities. Income from investments in subsidiaries The income statement of the parent company recognises the proportional share of the results of each subsidiary after full elimination of intercompany profits/losses and deduction of amortisation of goodwill. 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 debt and transactions in foreign currencies, amortisation of financial assets and liabilities as well as charges and allowances under the tax-on-account scheme etc. Financial income and expenses are recognised in the income statement by the amounts that relate to the financial year. 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 portion that may be attributed to the profit for the year, and is recognised directly in the equity by the portion that may be attributed to entries directly to the 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 5 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. Tangible fixed assets Land and buildings, other plant, fixtures and equipment are measured at cost less accumulated depreciation and write-downs. Land is not depreciated. 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 life Residual value Buildings 30 years 50% Other plant, fixtures and equipment 3-7 years 0-60% Leasehold improvements 5-10 years 0-60% Profit or loss on disposal of tangible fixed assets is stated as the difference between the sales price less selling costs and the carrying amount at the time 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 term of the contract. All other lease contracts are considered to be operating leases. Payments related to operating leases and other rental agreements are recognised in the income statement over the term of the contract. The company's total liability relating to operating leases and rental agreements is disclosed as contingencies etc. Financial non-current assets Investments in subsidiaries are measured in the Parent Company Balance Sheet under the equity method, which is regarded as a method of measuring/consolidation. Investments in subsidiaries are measured in the Balance Sheet at the proportional share of the enterprises’ carrying equity value, calculated in accordance with the Parent Company’s accounting policies with deduction or addition of unrealised intercompany profits or losses and with addition or deduction of the residual value of positive or negative goodwill calculated according to the acquisition method. Negative goodwill is recognised in the Income Statement when the equity interest is acquired. Where the negative goodwill is related to acquired contingent liabilities, the negative goodwill will be recognised as income when the contingent liabilities have been settled or cease. Acquired enterprises are subject to the acquisition method, reassessing all identified assets and liabilities to fair value at the acquisition date. The fair value is calculated based on acquisitions made in an active market, alternatively calculated using generally accepted valuation models. A discounted cash flow model is used to calculate the fair value of investment properties based on a discounted cash flow of future earnings. Operating equipment is recognised at fair value based on an assessor’s opinion, based on an overall assessment of the production equipment. The acquisition date is the date on which the Company gains actual control over the acquired entity. The fair value is calculated based on acquisitions made in an active market, alternatively calculated using generally accepted valuation models. The acquisition date is the date on which the Company gains actual control over the acquired entity. Ascertained excess values in relation to the underlying company’s equity value are recognised and measured in accordance with the accounting policies for the assets and liabilities, to which they attributable. Excess values concerning land and buildings are depreciated on a straight-line basis over the depreciation period, which is 30 years. Excess values concerning plants and machines as well as operating equipment and inventory are depreciated on a straight-line basis over the depreciation period, which is 3 - 7 years. Land and buildings, plants and machines, as well as other fixtures, fittings, tools and equipment are measured at cost with deduction of accumulated depreciations. Land is not depreciated. Inventories are measured at cost according to the FIFO principle with deductions of any depreciations at a lower net realisation value. Receivables and payables are measured at amortised cost. Received dividend is deducted in the carrying amount of the equity investment. Net revaluation of investments in subsidiaries is transferred under equity to reserve for net revaluation under the equity value method to the extent that the carrying amount exceeds the acquisition value. Profit and loss at disposal of investments in subsidiaries are determined as the difference between the net selling price and the carrying amount of the disposed investment at the time of sale, including non-depreciated excess values and goodwill. Profit and loss are recognised in the Income Statement under income from investments. Subsidiaries with a negative carrying equity value are measured to DKK 0 and any amounts due from these enterprises are written down to the extent that it is deemed to be irrecoverable. If the carrying negative equity value exceeds receivables, the residual amount is recognised under provision for liabilities to the extent that the Company has a legal or actual liability to cover the subsidiaries deficit. Impairment of fixed assets The carrying amount of intangible fixed and tangible assets together with fixed assets, which are not measured at fair value, are valued on an annual basis 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 net realisable value is lower than the carrying amount, the assets are written down to the lower value. The recoverable amount is calculated at the higher of net selling price and capital value. The capital value is determined as the fair value of the expected net cash flows from the use of the asset or group of assets and the expected net cash flows from sale of the asset or group of assets after the end of its useful life. Receivables Receivables are measured at amortised cost which usually corresponds to nominal value. The value is reduced by impairment losses 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. Securities and investments Securities and investments, recognised as current assets, comprise public quoted bonds, shares and other current investments that are measured at fair market value on the balance sheet date. Public quoted securities are measured at quoted price. Non-quoted securities are measured at sales value based on computed net present value. 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 on account tax 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 carry-forwards, are measured at the expected realisable value of the asset, either by set-off against tax on future earnings or by set-off 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 would 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 borrowing 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 term of loan. Amortised cost of current liabilities usually corresponds to 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 time of occurrence of the receivables or payables is 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. The income statements of foreign subsidiaries and associates fulfilling the criteria for being independent entities are translated at an average exchange rate for the month and balance sheet items are translated at the rate of exchange on the balance sheet date. Exchange differences arising from translation of the equity of foreign subsidiaries at the beginning of the year to the rates of the balance sheet date and from translation of income statements from average rate to the rates of the balance sheet date are recognised directly in the equity. Exchange adjustment of intercompany accounts with foreign subsidiaries that are deemed to be an addition to or deduction from the equity of independent subsidiaries are recognised directly in the equity. Cash Flow Statement With reference to Section 86(4) of the Danish Financial Statements Act, the company has not prepared a cash flow statement. A cash flow statement has been prepared for the Group. The cash flow statement shows the company’s cash flows for the year for operating activities, investing activities and financing activities in the year, the change in cash and cash equivalents of the year and cash and cash equivalents at beginning and end of the year. Cash flows from operating activities: Cash flows from operating activities are computed as the results for the year adjusted for non-cash operating items, changes in net working capital and corporation tax paid. Cash flows from investing activities: Cash flows from investing activities include payments in connection with purchase and sale of intangible and tangible fixed asset and fixed asset investments. Cash flows from financing activities: Cash flows from financing activities include changes in the size or composition of share capital and related costs, and borrowings and repayment of interest-bearing debt and payment of dividend to shareholders. Cash and cash equivalents: Cash and cash equivalents include cash in hand. With reference to Section 86(4) of the Danish Financial Statements Act, the company has not prepared a cash flow statement. 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