18630877 2023-07-01 2024-06-30 cmn:ConsolidatedMember 18630877 2022-07-01 2023-06-30 cmn:ConsolidatedMember 18630877 2021-07-01 2022-06-30 18630877 2020-07-01 2021-06-30 18630877 2024-06-30 cmn:ConsolidatedMember 18630877 2023-06-30 cmn:ConsolidatedMember 18630877 2022-06-30 18630877 2021-06-30 18630877 2023-06-30 cmn:ConsolidatedMember fsa:ContributedCapitalMember 18630877 2023-07-01 2024-06-30 cmn:ConsolidatedMember fsa:ContributedCapitalMember 18630877 2024-06-30 cmn:ConsolidatedMember fsa:ContributedCapitalMember 18630877 2023-06-30 cmn:ConsolidatedMember fsa:OtherReservesMember 18630877 2023-07-01 2024-06-30 cmn:ConsolidatedMember fsa:OtherReservesMember 18630877 2024-06-30 cmn:ConsolidatedMember fsa:OtherReservesMember 18630877 2023-06-30 cmn:ConsolidatedMember fsa:RetainedEarningsMember 18630877 2023-07-01 2024-06-30 cmn:ConsolidatedMember fsa:RetainedEarningsMember 18630877 2024-06-30 cmn:ConsolidatedMember fsa:RetainedEarningsMember 18630877 2023-06-30 cmn:ConsolidatedMember fsa:ProposedDividendRecognisedInEquityMember 18630877 2023-07-01 2024-06-30 cmn:ConsolidatedMember fsa:ProposedDividendRecognisedInEquityMember 18630877 2024-06-30 cmn:ConsolidatedMember fsa:ProposedDividendRecognisedInEquityMember 18630877 2023-06-30 fsa:ContributedCapitalMember 18630877 2023-07-01 2024-06-30 fsa:ContributedCapitalMember 18630877 2024-06-30 fsa:ContributedCapitalMember 18630877 2023-06-30 fsa:OtherReservesMember 18630877 2023-07-01 2024-06-30 fsa:OtherReservesMember 18630877 2024-06-30 fsa:OtherReservesMember 18630877 2023-06-30 fsa:RetainedEarningsMember 18630877 2023-07-01 2024-06-30 fsa:RetainedEarningsMember 18630877 2024-06-30 fsa:RetainedEarningsMember 18630877 2023-06-30 fsa:ProposedDividendRecognisedInEquityMember 18630877 2023-07-01 2024-06-30 fsa:ProposedDividendRecognisedInEquityMember 18630877 2024-06-30 fsa:ProposedDividendRecognisedInEquityMember 18630877 2023-06-30 18630877 2023-07-01 2024-06-30 18630877 2024-06-30 18630877 2023-07-01 2024-06-30 cmn:ConsolidatedMember 1 18630877 2022-07-01 2023-06-30 cmn:ConsolidatedMember 1 18630877 2023-07-01 2024-06-30 cmn:ConsolidatedMember 1 18630877 2022-07-01 2023-06-30 cmn:ConsolidatedMember 1 18630877 2022-06-30 cmn:ConsolidatedMember 18630877 2022-07-01 2023-06-30 18630877 2023-07-01 2024-06-30 cmn:ConsolidatedMember 1 18630877 2023-07-01 2024-06-30 cmn:ConsolidatedMember 1 18630877 2023-07-01 2024-06-30 cmn:ConsolidatedMember 2 18630877 2023-07-01 2024-06-30 cmn:ConsolidatedMember 3 18630877 2023-07-01 2024-06-30 cmn:ConsolidatedMember 4 18630877 2023-07-01 2024-06-30 cmn:ConsolidatedMember 1 iso4217:DKK xbrli:pure 1FUFS-VOE As a global leader in maritime safety, data collection, and AI-based analytics, Danelec is at the forefront of digitalizing the maritime industry to accelerate the route to net-zero shipping.Danelec is at the forefront of digitalizing the maritime industry to accelerate the route to net-zero shipping. With an installed base of more than 14,000 vessels, the company is a pioneer in operational optimization for safety, sustainability, and performance.Danelec provides an agnostic and integrated platform enabling the maritime ecosystem to bridge the gap between the systems that served our needs of the past and a solution that can scale to serve the needs of our future. Global Hubs14Years in Market291Employees172Installed base14KPartners200+Certified Technicians700+Revenue Growth10.8%High-Frequency Data is Becoming a Prerequisite for Ecient Digitalization of the Maritime Industry.The commercial maritime sector is at a crossroads, facing unprecedented challenges and opportunitiesdriven by the need for greater sustainability, safety, and eciency. The industry, which handles 2over 90% of global trade, has been thrust into the spotlight as new regulations and consumer expectations demand rapid decarbonization and improved operational performance. The key to meeting these challenges lies in digital transformation, which is poised to reshape the industry and make high-frequency, high-quality data the foundation of future success.Growing Demand for Data-Driven OperationsAs digital transformation takes hold in the maritime industry, the demand for high-frequency, high-quality data is becoming critical. Data-driven insights are essential for optimizing ship performance, ensuring regulatory compliance, and meeting the growing expectations of ESG-conscious consumers. At Danelec, we are commied to supporting the maritime sector’s digital transformation by providing solutions that enable shipowners to collect, analyze, and act on real-time data, ultimately improving sustainability, transparency, and productivity.Currently, 69% of shipping companies are exploringdigital tools to optimize their operations, yet the full 3potential of digitalization remains untapped. To maximize the benefits of digitalization, companies must invest in infrastructure that supports continuous data collection and analysis. This not only allows for improved decision-making but also enables compliance with increasingly stringent environmental and safety regulations.Safety in the Digital Age: A Proactive ApproachAs the maritime industry embraces digital transformation, safety emerges as a critical area where data can make a significant impact.The number of safety incidents involving vessels over 100 gross tons increased by 9% in 2022, following a 7% rise in 2021. The primary driver of this increase has been machine damage or failure, which accounted for 57% of all 4incidents in 2022.Despite the rising number of incidents, a lack of quality data has made it dicult to understand the root causes or predict future risks.In the latest safety report from Inmarsat, The Future of Maritime Safety Report 2024, you can read experts gathered for the SEACARE Working Group emphasize the need for a proactive, data-driven approach to safety. Instead of responding to incidents aer they occur, the maritime industry should focus on gathering and sharing high-quality safety data to prevent accidents before they happen. However, barriers to achieving this include underreporting of incidents and near misses—oen due to fears of reputational damage—and fragmented data that remains siloed within organizations.To address these challenges, the industry must embrace a culture of transparency and data sharing. By creating a holistic, industry-wide picture of safety, companies can beer understand the causes of incidents and implement preventive measures. This shi toward proactive safety management will not only reduce risks but also improve the overall safety culture within the maritime ecosystem.The Business Case for DigitalizationThe economic advantages of digital transformation are clear. By optimizing operations and reducing fuel consumption, shipping companies can lower operating costs, enhance profitability, and meet the increasing demands of regulatory bodies and environmentally conscious consumers. For example, studies have shown that voyage optimization alone can improve profitability by up to 17.8% for 5mid-range tankers. Similarly, reducing unplanned downtime through condition-based monitoring can boost margins by as much as 50%.Digitalization is not only about short-term gains; however, it is a strategic investment in the future resilience of the maritime industryAs environmental regulations tighten and market pressures grow, companies that fail to embrace digital optimization risk being le behind. For deep-sea liners, in particular, where decarbonization challenges are more complex, digital technologies oer the most immediate and eective path to reducing emissions and improving eciency.Conclusion: The Digitalization of the Maritime Relies on Quality DataThe future of the maritime industry is increasingly data-driven, and digitalization will be the key to unlocking its potential. By investing in high-frequency, high-quality data infrastructure, shipping companies can optimize their operations, meet stringent decarbonization targets, and improve safety outcomes. This shi toward a more digital and sustainable industry is not just a regulatory requirement—it is a business-critical imperative.At Danelec, we are commied to supporting this transformation by providing the tools and technologies that enable shipping companies to harness the power of data. At Danelec, we are commied to equipping the maritime sector with sensor technology, data management solutions, and cloud-based services that will power this transformation. As the industry moves toward a more sustainable and ecient future with an increasing focus on safety at sea, those who invest in high-frequency, quality data will be best positioned to thrive in an evolving and increasingly competitive marketplace.With close to 30 years in the market, Danelec is a perceived leader in the maritime digitalization.Danelec’s mission is to deliver an agnostic platform built on high-quality data with a singular purpose: to empower the maritime ecosystem to achieve eciency through digitalization.As a leading manufacturer of Voyage Data Recorders (VDR), Sha Power Meters, and provider of a market-leading AI-based analytics platform, Danelec is well positioned to bridge the gap between ship and shore. With an installed base spanning more than 14,000 active vessels, the company is a pioneer in operational optimization forsafety, sustainability, and performance.Danelec is commied to providing the most eective products and services that help customersmeet changing regulations and operate more eciently through the application of data collected on board and accessed in the cloud. With 14 global hubs across Denmark, Norway, Greece, Germany, Poland, Singapore, South Korea, India, China, and the US as well as over 700 certifiedservice technicians in more than 50 countries worldwide, Danelec has a truly global presence ensuring reliable, cost-ecient and fast service andsupport to customers anywhere. Headquartered outside of Copenhagen, Denmark, Danelec is the world’s largest maritime data collection solutions provider. Danelec has more than 15,600 installations collecting data from sensors across the entire vessel. These provide owners and operators with high-frequency, high-quality data to eciently manage their assets and thereby vastly reduce costs and emissions.Business Model The foundation that enables our strategic eorts is our reinforcing system of multiple products that support the shipowners with valuable insights to safely navigate in today’s net-zero economy. Danelec’s first ambition is to provide a turnkey solution for the maritime ecosystem based on high-frequency, high-quality data collection to propel the sustainable transition of the global shipping sector.“The bedrock of our oering is a solid foundation of high-quality data that empowers the maritime ecosystem with the right insights, to the right people, at the right time.”- Casper Jensen, CEO at Danelec. In the wake of recent acquisitions of the Norwegian ship performance monitoring specialist Kyma and the AI-based technology platform of Nautilus Labs, Danelec now delivers solutions across two use-case-focused business units: Danelec Safety and Danelec Ship Performance.Danelec SafetyDanelec’s Safety solutions surpass the mandatory requirements by ensuring uninterrupted data collection and enabling remote management of onboard equipment. The leading infrastructure of Danelec's safety system enables smooth retrofit and quicker shipboard services, minimizing downtime.Key safety oerings include the Danelec legacy Voyage Data Recorder (VDR) and a number of Safety Insights services that enhance the maritime ecosystem through digital solutions.This year, Danelec launched a pilot project in collaboration with Danpilot to explore the feasibility of remote piloting and remote navigational The bedrock of our oering is a solid foundation of high-quality data that empowers the maritime ecosystem with the right insights, to the right people, at the right time.assistance. This new technology integrates operational and navigation solutions, allowing for safe piloting without requiring a pilot to board the ship.Danelec has collected vessel and navigation data on commercial vessels for almost 30 years. Today, vessel data can be sent to the cloud and displayed in near real-time ashore. By providing DanPilot access to the vessel data, a pilot can eectively viewthe same as if they were onboard the vessel. This approach not only saves time and costs associated with a pilot boarding the vessel but also mitigates the risk of accidents during the transfer process. “Piloting is a process that demands significant time and resources, and it poses considerable risks to the pilot boarding the vessel. Therefore,we are pleased to introduce a remote solution that allows DanPilotto eectively guide international shipping trac through Danish waters without the necessity of boarding the vessel.” — Christian Kock, EVP, Safety at DanelecDanelec Ship PerformanceDanelec delivers an end-to-end ship performance solution, providing actionable insights to reduce fuel consumption and empowering Chief Engineers, Technical Superintendents, and Operators to quicklyidentify corrective actions and achieve collaborative savings.Key ship performance oerings include onboard sensors, data management, and cloud-based analytics solutions. The core of any ship performance solution is the torque meter. The renowned Kyma Power Meter delivers trusted sha power measurements with >99.5% accuracy. It is a solid technology for continuous monitoring of sha power, torque, thrust, and RPM to optimize ship performance.Proactive use of vessel data requires a solid data capturing and transmission solution. Danelec Collectbuilds upon two decades of expertise in vessel data collection to seamlessly and securely transmit essential high-frequency data from vessel sensors to shore-based systems for comprehensive analysisand optimization.Solid data capturing solutions enable both onboard and shore-based data insights, empowering both crew and performance teams. Danelec Onboard Insights arms the crew with real-time, actionable insights to drive decisions that optimize fuel consumption and minimize emissions. Danelec Fleet Insights enables ship owners to save fuel with trusted and targeted insights that align crew, charterer, and shore teams. Lastly, Danelec Voyage Insights maximizes fuel eciency and enables ship owners to achieve commercial goals and voyage requirements with demonstrated savings of up to 5% on fuel consumption per voyage. “By leveraging our AI-powered digital twin technology, we’ve transformed the way this fleet operates—unlocking real-time fuel savings, reducing emissions, and turning data into actionable insights. It’s a clear example of how smart maritime solutions can drive both operational eciency and environmental leadership” — Claus Borum, CTO / EVP, Ship PerformanceAdding to a strong ship performance oering, the new state-of-the-art Danelec Edge was introducedto the market this year. With increasingly complex emissions and operational requirements, ship owners are looking to future-proof fleets by unlocking the capability for the crew to use any cloud-based soware on board. Coming Together to Bridge the Gap Between Ship and ShoreAs a result of recent acquisitions, we can now bridge the power of Danelec’s data capturing capabilities, Kyma’s ship performance solutions, and the powerful AI-based technology platform of Nautilus Labs.Together, we provide an agnostic and integrated platform that enables the maritime ecosystem to bridge the gap between the systems that served our needs in the past and a solution that can scale to serve the needs of our future.“Danelec delivers the Agnostic Platform to enhance eciency and safety across the maritime industry.” – Casper Jensen, CEO DanelecAt Danelec, we firmly believe that digitalization holds the key to confronting the key challenges of sustainability, safety, and eciency, and further enhancing safety within the maritime industry However, our 30 years of experience in the market have demonstrated that we cannot solve the evermore wicked challenges the industry is facing on our own.The ever-changing needs of the global maritime fleet highlight the importance of flexibility and scalability in any technology platform. With our agnostic platform, we enable the maritime sector to transition from noon reports and standard-based navigation to vessel-specific high-frequency data tailored to real-time scenarios.With our turnkey solution, we have made it our mission to empower the maritime sector with an agnostic platform designed for cross-functional collaboration with a single purpose in mind: empowering the maritime ecosystem to bridge the gap between ship and shore. Business Ethics At Danelec, we are commied to working within the laws of business and against corruption in all its forms by always acting professionally, fairly and with integrity. We take a zero-tolerance approach to bribery, corruption and fraud. As an example, the behavior is clearly demonstrated by daily scrutiny of shipments for local legislation and potential embargoes.Headquartered in Farum, just outside Copenhagen, Denmark, Danelec counts 14 global hubs incl. oces in Norway, Greece, Germany, Poland, Singapore, South Korea, India, China, and the US. Adding to Danelec’s oces is a network of +200 partners and 700+ certified technicians, ensuring constant accessibility and minimal downtime for our customers. Our commitment to unparalleled product quality is matched by rapid service response, with technicians ready to board any vessel within 48 hours - anywhere.Group ChartDanelec Electronics A/SAt 22 November 2023, Danelec Digital A/S was merged into Danelec Electronics A/S.Danelec Norway ASDanelec GmbHBergen, NorwayHamburg, GermanyShip Performance MonitoringVoyage Data RecordersConsolidated from December 2021 Consolidated from November 20235-year Consolidated Financial HighlightsDKK million 2023/24 2022/23 2021/22 2020/21 2019/20Income statementRevenue 330.3 298.0 168.6 111.1 102.3Direct profit 205.5 180.0 103.4 71.7 54.2Gross profit 153.9 153.8 89.0 64.1 59.1EBITDA before special items 81.1 88.3 46.2 38.1 35.1EBITDA 65.1 82.1 40.9 38.1 35.1Operating profit/loss (EBIT) 35.2 55.7 20.6 26.2 26.1Net financials -10.3 -6.1 -1.9 -0.1 -0.1Net profit/loss for the year 17.4 38.8 16.3 21.4 20.8Balance sheetTotal assets 292.9 276.1 225.6 99.0 78.6Investments in property, plant and equipment 2.0 0.4 0.4 0.6 0.5Equity 94.2 87.9 52.8 69.6 48.1Average number of full-time employees 112 84 71 30 31Financial ratiosDirect margin 62.2% 60.4% 61.3% 64.5% 53.0%Gross margin 46.6% 51.6% 52.8% 57.7% 57.8%Profit margin 10.6% 18.7% 12.2% 23.6% 25.5%Current ratio 185.3% 205.6% 173.5% 295.6% 199.6%Solvency ratio 32.2% 31.8% 23.4% 70.3% 61.2%Return on equity 19.1% 55.1% 26.6% 36.4% 48.3%The financial ratios have been prepared in accordance with the recommendations and guidelines issued by the Danish Society of Finance Analysts. Financial definitions are disclosed in “Note 22 Accounting Policies”.Revenue (DKKm)Revenue GrowthIncome StatementWe are pleased to report nearly 10.8% revenue growth this year, building on the exceptional performance achieved last year. This was driven by organic growth of 6.3% as well as acquisitions of 4.6%. 2023/24 was a transformativeyear, highlighted by the strategic acquisitions of Nautilus Labs platform and the VDR business of MacGregor alongside key investments in integration, seing the stage for future growth and scalability.RevenueIn 2023/24, total revenue for Danelec Group amounted to DKK 330.3 million compared to DKK 298.0 million in 2022/23, corresponding to a reported growth of 10.8%. This strong result reflects our sustained momentum and rearms our ability to drive growth across all segments of the business. Achieving this level of growth, particularly following an already robust year, underscores the eectiveness of our strategic initiatives and positions us well for continued success in the future.Direct ProfitDirect profit (Gross profit before Own work capitalized and Other external costs) for the Group amounted to DKK 205.5 million in 2023/24 compared to DKK 180.0 million in 2022/23. The direct margin reached 62.2%, an increase of 1.8% from 2022/23, reflecting our strategic investments in eciency. These improvements were achieved despite the significant costs related to acquisitions, integration, and transformation, all of which are key to supporting our continued growth.Sta CostsSta costs increased by DKK 17.0 million to DKK 88.8 million in 2023/24 (26.9% of revenue) from DKK 71.8 million in 2022/23 (24.1% of revenue). Increase from acquisition of activities related to Nautilus Labs and MacGregor VDR business as well as organic increase in FTE’s to support growth. Danelec had 112 FTE (full-time equivalent) employees by the end of 2023/24, which is 33% more than 2022/23.Development CostsTotal R&D spend amounted to DKK 49.2 million in 2023/24. Capitalised development costs for 2023/24were DKK 28.6 million or 8.7% of net revenue compared to 8.0% in 2022/23. The capitalised costs primarily related to continuous development of our VDR and ship-to-shore IoT data solution to support our continued growth.DKK million 2023/24 2022/23Revenue 330.3 298.0Own work capitalised 13.5 12.0Cost of sales -124.8 -118.0Other external costs -65.2 -38.1Gross profit 153.9 153.8Sta costs -88.8 -71.8EBITDA 65.1 82.1Depreciation and amortisation -29.9 -26.4Operation profit/loss 35.2 55.7Financial ratiosDirect margin 62.2% 60.4%Gross margin 46.6% 51.6%Profit margin 10.6% 18.7%Danelec R&D has employees that works across our locations in Denmark, Norway, Poland and US. To enable continued market leadership and growth the Group is investing significant resources in the development of new products and solutions.EBITDA before Special ItemsEBITDA before special items saw a slight decrease to DKK 81.1 million from DKK 88.3 million last year, reflecting our strategic decision to invest in talent and infrastructure to position the business for future growth. Despite this, revenue increased by 10.8%, with improved margins, demonstrating the strong underlying performance and potential for scalability in the years ahead.EBITDAIn 2023/24, EBITDA reached DKK 65.1 million, reflecting the company's focus on strategic investments for future growth and scalability. While this compares to DKK 82.1 million in 2022/23, the current year has been a pivotal period of transformation, driven by strong revenue growth. Special items of DKK 16.0 million were allocated towards acquisitions, integration, and transformation eorts, positioning the company for continued expansion and long-term success. This year marks a significant step in our journey, with these initiatives laying the foundation for enhanced growth and operational eciency.Depreciation and AmortisationIn 2023/24, depreciation and amortisation totalled DKK 29.9 million, up from DKK 26.4 million in 2022/23.Net FinancialsNet financials were an expense of DKK 10.3 million, compared to an expense of DKK 6.1 million in 2022/23. The increase was mainly due to increasing interest rate level on loan facilities in connection to acquisitions. Balance Sheet and Cash FlowTangible and Intangible AssetsAt 30 June 2024, total assets amounted to DKK 292.9 million, compared to DKK 276.1 million at 30 June 2023. Total non-current assets amounted to DKK 171.7 million compared to DKK 145.7 million at 30 June 2023, an increase of DKK 26.0 million.Total current assets amounted to DKK 121.2 million at30 June 2024, compared to DKK 130.4 million at 30 June 2023.EquityTotal equity amounted to DKK 94.2 million comparedto DKK 87.9 million at the beginning of the year. The increase is related to the positive results.Debt to Credit InstitutionsDebt to credit institutions amounted to DKK 109.6 million at 30 June 2024, and comprise loan facilities in Spar Nord related to the acquisition of Danelec Norway AS in December 2021.Cash FlowIn 2023/24, net cash flow from operating activities was DKK 50.0 million up DKK 8.1 million from 2022/23. In 2023/24, the operating cash flow was impacted by the strong results.Cash flow from investment activities amounted to DKK -49.7 million compared to DKK -27.6 million in 2022/23 impacted by transformative acquisitions.Net cash flow for the year amounted to DKK 0.3 million compared to DKK 1.0 million for 2022/23.Financial Expectations for 2023/24The financial expectations outlined in the 2022/23 Annual Report have largely been met in 2023/24. Revenue was aligned with the anticipated levels from last year’s forecast, with a 10.8% growth. While EBITDA came in slightly below expectations, this was primarily due to our strategic decision to invest in talent and infrastructure to position the business for future growth, as well as strategic acquisitions and associated costs, which position us well for future growth and expansion.Outlook 2024/25Danelec will continue to invest in operations and products and keep a strong focus on innovating for both existing and new markets, the outcome of these investments is expected to show results by the years to come. Despite regulatory requirements related to sha power limitation are decreasing demands, we expect an organic growth of 10%. With continued investment in R&D, we expect to continue our development costs around 13-15% of the revenue. EBITDA margin is expected to increase to 20-25%, driven by the full-year impact from acquisitions, ongoing investments in eciency and scalability as well as excluding transaction costs.Events Aer the Balance Sheet DateNo significant events have occurred aer the financial year-end which could significantly aect the Group’s financial position.Danelec Achieves DNV Cyber Security Type Approval for DM100 VDR PlatformDanelec has become the first Voyage Data Recorder (VDR) manufacturer to receive new DNV Cyber Security Type Approval for IACS UR E27, for its advanced DM100 VDR platform.The approval confirms that the DM100 VDR and DM100 (S-)VDR G2 meet stringent cybersecurity standards, ensuring robust protection against cyber threats. Compliant with DNV rules for classification – Ships Pt.6 Ch.5 Sec.21 Cyber security, Danelec VDRs are designed to safeguard sensitive data and ensure data integrity.Danelec and DanPilot to Unveil Groundbreaking Remote Piloting TechnologyThe new remote piloting solution reduces the need for a pilot’s physical presence on ships, optimizing safety and logistics while reducing environmental impact. And, because pilots no longer need to climb aboard to do their job, ships can maintain their planned speed, helping them to reduce fuel costs and to beer meet scheduled ETA and ETD.Danelec Wins SMART4SEA Technology Award for Danelec Fleet Insights In an era where the maritime industry faces pressing challenges such as increased pressure to reduce escalating emissions, growing safety incidents, and the imperative need for digital transformation, Danelec stands out as a forerunner of change with its Danelec Fleet Insights platform.Danelec Acquires Nautilus Labs Technology Platform to Gain Deeper Insights Within Sustainability and Safety Combining Danelec’s onboard data capturing ship performance capabilities with the strong AI-based analytics platform of New York-based maritime technology company Nautilus Labs, Danelec will be able to oer a comprehensive turn-key solution to accelerate the maritime industry’s transition to high-quality, high-frequency data both supporting and accelerating the green agenda.Danelec with Strategic Acquisition of MacGregorVDR Business – Strengthens its Position in Maritime SafetyWith the acquisition of MacGregor’s Voyage Data Recorder business (VDR) including the Maritime Data Engine (MDE) Soware, Danish Danelec further establishes itself as a global leader in the market for VDRs in the maritime industry.Danelec introduces The Agnostic Platform to Enable the Maritime Digital TransformationBy integrating the power of Danelec’s data capturing capabilities, Kyma’s ship performance solutions, and the powerful AI-based technology platform of Nautilus Labs, we have launched an entirely new platform. Together, we provide an agnostic and integrated platform enabling the maritime ecosystem to bridge the gap between the systems that served our needs of the past and a solution that can scale to serve the needs of our future.Client Large Ship OwnerTechnology Danelec Voyage InsightsObjective Enhance voyage eciency and optimize fleet operations using AI-driven insights and digital twin technology.Case Fleet 10 container vessels operating in the trade between Asia, the Middle East, and India.Challenge A large ship owner, facing rising fuel costs and strictenvironmental regulations, partnered with Danelec to transform fleet operations. Seeking to cut costs and optimize global voyages, they turned to Danelecfor its innovative maritime technology. The ship owner’s container fleet operates globally with strict port arrival times. Vessels use varied hardware, sensors, and systems, complicating standardized data collection and analysis. They required an adaptable solution to improve voyage planning and reduce their CO2 footprint.Solution Danelec provided the ship owner with a managed service layer utilizing Danelec’s AI-based analytics platform featuring digital twin technology for each vessel. This sophisticated system constructs virtual models of the vessels to simulate and analyze real-world operating conditions. The solution harnesses data from high-frequency sensors installed aboard the vessels, as well as manually inpued data from daily noon reports. Key Aspects of the Solution• Daily Recommendations: Tailored advice on optimal sha speeds and routes is sent directly to the vessel’s master and shore operations teams.• Weather Adaptations: Updates and notices are provided if adverse weather is encountered, ensuring safety and minimal disruption.• Post-Voyage Analysis: Counterfactual reports are shared with the ship owner, providing in-depth analysis that compares actual voyage outcomes with hypothetical scenarios based on dierent operational decisions. These reports highlight the service's benefits, with a particular focus on fuel savings and emission reductions.Key Outcomes and Tangible SavingsThe implementation of this AI-driven system has yielded significant measurable benefits, including:• Fuel Eciency and Cost Savings: Over the course of nine months, the ship owner has achieved an avg. fuel saving of 8-10% per voyage, an accumulated fuel saving of 695 metric tons, translating to approximately $430,000 in cost savings, significantly reducing operational expenses.• Emission Reduction: The optimized vessel operations have reduced emissions by an estimated 2,165MT CO2, aligning the ship owner’s operations with its environmental sustainability goals.• Operational Excellence: Continuous adaptation and optimization of fleet operations have not only resulted in substantial economic benefits but have also positioned the ship owner as an innovation leader in the maritime industry.“By leveraging our AI-powered digital twin technology, we’ve transformed the way this fleet operates—unlocking real-time fuel savings, reducing emissions, and turning data into actionable insights. It’s a clear example of how smart maritime solutions can drive both operational eciency and environmental leadership.”– Claus Borum CTO/EVP Ship Performance, DanelecClientOil MajorTechnology Danelec Boil-O GasObjective Enhance voyage eciency to reduce fuel, emissions, and cost.Case Fleet M-Type, Electronically controlled,Gas Injection LNG vessel.BackgroundAn M-Type, Electronically controlled, Gas Injection LNG vessel leveraging Danelec’s Boil-o Gas Optimization on a nine-day voyage from Indonesia to South Korea achieved significant reductions in LNG consumption and CO2 emissions, resulting in substantial cost savings and environmental benefits. The optimization process allowed the vessel to maintain stringent temperature and pressure requirements while ensuring an ecient voyage.ChallengeA major oil company was seeking to optimize its maritime operations to improve eciency and reduce its carbon footprint. The company's fleet of LNG carriers is equipped with a wide range of hardware, sensors, and systems, creating a complex and varied data landscape. This diversity makes it challenging to standardize data collection and analysis across all vessels. The company requires a highly adaptable solution capable of interfacing with dierent equipment to streamline operations. Key objectives include enhancing voyage planning, optimizing fuel consumption, and minimizing emissions while ensuring strict adherence to estimated times of arrival(ETAs) at ports. SolutionDanelec’s advanced machine learning and thermodynamics models provide actionable insights that significantly reduce LNG consumption, maintenance costs, and CO2 emissions, achieving 4.7% performance within temperature and pressure targets. Our unique collaboration platform allows charterers and vessel owners to dynamically optimize their operations, ensuring adherence to ETAs and terminal requirements while achieving unprecedented eciency levels.Utilizing Danelec’s advanced machine learning and thermodynamic models, the vessel received daily operational recommendations that optimized its speed and gas handling procedures. This proactive approach resulted in the vessel operating below the industry average for boil-o gas rates, which not only conserved energy but also minimized environmental impact.The optimized operational parameters led to a remarkable reduction in the vessel’s fuel use and emissions. This shi underscores Danelec’s commitment to promoting sustainability and supporting the maritime industry’s transition toward greener practices.Key Outcomes and Tangible SavingsThe implementation of Danelec’s Boil-o Gas solution resulted in large savings on fuel, emissions, and ultimately cost: • Fuel Eciency and Cost Savings: in just nine days, the carrier saved 102 MT of LNG, translating into a total of $153,000 in cost savings.• Emission Reduction: In just one voyage, the optimized operation of this single vessel led to a reduction in emissions of 280MT of CO2.Respecting the PlanetThe upcoming decade is pivotal for mitigating the adverse eects of global warming, with a consensus within the scientific community regarding the necessity to reduce global carbon emissions by 50% by 2030. We anticipate that carbon and other externalities will increasingly be factored into pricing structures. Consequently, businesses that eectively minimize these externalities or innovate to establish new business models with inherently lower externalities will emerge as the leaders of the future.-60%GHG-scope 1-3 intensity reduction by 2030 vs 2021 baselineBest Place to Work for EveryoneStriving to be the premier workplace for all individuals is essential. Addressing inequality and advocating for equitable working conditions represent significant global challenges. Concurrently, aracting and retaining top talent is a substantial opportunity and a critical factor for success, particularly for technology-driven and sustainable enterprises, where the competition for skilled professionals is notably intense.40%>30Underrepresented groups Minimum ind BoD & MgmteNPS scoreCreating Secure and Responsible CompaniesCybercrime is increasingly prevalent, making it essential to safeguard against its potentially severe repercussions to ensure the continuity of business operations. The probability of cyber aacks has increased, and the associated costs increase as digitalization permeates all areas of the organization.Cyber related initiatives not publicity communicated given sensitivities The maritime industry, responsible for moving more than 90% of 6global trade, is undergoing a seismic shi. New regulations, rising consumer expectations, and growing pressure from environmental standards have elevated the urgency of adopting Environmental, Social, and Governance (ESG) practices. Once considered a “nice-to-have,” sustainability is now a business-critical imperative.Digital Transformation as a Catalyst for Decarbonization and EciencyThe International Maritime Organization (IMO) has set ambitious targets to reduce greenhouse gas (GHG) emissions by 20-30% by 2030, 70-80% by 2040, and ultimately achieve net-zero emissions by 2050. The maritime industry, responsible for approximately 3% of global emissions, must now accelerate eorts to meet these goals. 6 Informa Engage survey for Wärtsila7 Inmarsat Thetius Digital Decarbonisation Report 2022While cleaner energy solutions, such as net-zero propulsion systems, are the long-term objective, digitalization oers an immediate and cost-eective path to reducing emissions.Research suggests that more than 70% of the decarbonization required by 2050 can be achieved 7through digital optimization alone. By leveraging high-frequency, high-quality data, shipping companies can optimize fuel consumption, reduce emissions, and enhance operational eciency. Digital tools such as voyage planning, speed optimization, and fleet-wide maintenance management are already proving their value, enabling ships to operate more eciently while minimizing environmental impact.For example, real-time data from voyage simulations can help ships cruise at optimal speeds, cuing fuel consumption and reducing emissions per ton-mile. Maintenance optimization, driven by predictive analytics and condition-based monitoring, minimizes unplanned downtime, ensuring ships remain operational and productive. The result is a more ecient, cost-eective, and sustainable operation.However, the integration of onboard sensor data into everyday operations is key to unlocking the full potential of digitalization and turning it into a catalystfor decarbonization and eciency. This real-time, high-quality data is no longer optional but essential for shipping companies aiming to meet both regulatory and commercial demands in a rapidly evolving maritime landscape.At Danelec, we are commied to this mission. We believe digitalization is the key to unlocking solutionsfor sustainability, productivity, and transparency. Currently, 69% of shipping companies are exploring 8digital tools to meet the growing demand for more ecient operations and stricter compliance. To make this shi successful, a foundation of high-frequency, high-quality data is essential—allowing shipowners to optimize fuel usage, reduce emissions, and adhere to new reporting standards for CO2, SO2, and other pollutants.The Power of Digitalization in DecarbonizationDigital solutions are already proving their value by enabling shipping companies to cut emissions, oen at a fraction of the cost of alternative methods. Enhancements in voyage planning, speed optimization, and maintenance optimization are reducing ineciencies and allowing for more precisecontrol over fuel consumption. For example, voyage simulations, based on high-frequent data, enable ships to cruise at optimal speeds, saving fuel and reducing emissions per ton-mile. Similarly, fleet-widemaintenance optimization eliminates downtime, helping to ensure that ships spend less time idling and more time moving cargo eciently.Beyond operational improvements, digital connectivity is facilitating novel solutions within remote pilotage services, further reducing the need for on-site personnel and associated transport emissions. These innovations are not only good for the environment but also lead to substantial cost savings. Building a Strong Business Case for DigitalizationThe economic and environmental advantages of digital transformation are undeniable. By reducing fuel consumption and streamlining operations, shipping companies can meet regulatory requirements, satisfy growing customer expectations, and enhance their boom line. In fact,digital optimization is likely to be the key to long-term survival for many operators, particularly as newenvironmental regulations and market pressures continue to tighten.Although clean energy solutions—such as net-zero propulsion systems—are already being deployed in inshore and coastal shipping, deep-sea liners face more complex decarbonization challenges. For these segments, digital technologies provide the most immediate opportunity for progress. The integration of high frequent, high quality data and AI-driven insights help companies to reduce their environmental footprint.Without embracing digital optimization, shipping companies risk missing a critical step toward decarbonization, potentially jeopardizing their ability to stay competitive and survive the shi to cleaner energy.Sustainability Targets: Aligning with Global StandardsAt Danelec, we are dedicated to driving this transformation forward, both for our clients and within our own operations. In collaboration with our lead investor, Verdane, we have established ambitious sustainability goals in line with the UN’s 2030 Sustainable Development Goals (SDGs). These targets reflect our commitment to not only delivering sustainable solutions to the maritime sector but also practicing responsible business internally. By seing a high bar for ourselves, we aim to contribute to the broader eort of reducing GHG emissions and creating a more sustainable future for maritime trade. 330315000 298007000 184345000 182453000 13528000 11967000 10443000 9148000 124802000 118010000 61897000 68498000 65167000 38121000 53848000 32090000 153874000 153843000 79043000 91013000 88797000 71750000 54013000 43652000 65077000 82093000 25030000 47361000 29917000 26401000 16169000 16006000 35160000 55692000 8861000 31355000 0 0 9282000 0 514000 960000 42000 439000 10816000 7013000 9088000 6891000 24858000 49638000 9097000 24904000 7456000 10877000 655000 5429000 17402000 38762000 8442000 19474000 51555000 35527000 41754000 31267000 8628000 2187000 8548000 2131000 63189000 71692000 0 0 15803000 19509000 14684000 14927000 149532000 128915000 64986000 48325000 4258000 4224000 3161000 3672000 4258000 4224000 3161000 3672000 0 0 106780000 106594000 12791000 7642000 4839000 1488000 5118000 4938000 5118000 4938000 17909000 12580000 116737000 113020000 171699000 145719000 184884000 165017000 7507000 12158000 0 0 189000 641000 0 0 32152000 27205000 28770000 26350000 39848000 40004000 28770000 26350000 0 9544000 13836000 15013000 2063000 2781000 1225000 722000 1664000 4908000 621000 1038000 65849000 72387000 46451000 35416000 15548000 18030000 9179000 8737000 121245000 130421000 84400000 70503000 292944000 276140000 269284000 235520000 10774000 10734000 10774000 10734000 0 0 44021000 36031000 -4163000 -4011000 0 0 75595000 81193000 6622000 29169000 12000000 0 12000000 0 94206000 87916000 73417000 75934000 20530000 13404000 11125000 9999000 8767000 7048000 893000 893000 104007000 104349000 104007000 104349000 133304000 124801000 116025000 115241000 5555000 5555000 5555000 5555000 26565000 21144000 18451000 14641000 1730000 0 35875000 0 3914000 7763000 3973000 7763000 21045000 25077000 10375000 12860000 6625000 3884000 5613000 3526000 65434000 63423000 79842000 44345000 198738000 188224000 195867000 159586000 292944000 276140000 269284000 235520000 10734000 -4011000 81193000 0 0 0 -11000000 0 -11000000 40000 0 0 0 40000 0 0 5402000 12000000 0 152000 0 0 152000 10774000 -4163000 75595000 12000000 10734000 36031000 29169000 0 75934000 0 0 1000 0 1000 0 0 -11000000 0 -11000000 40000 0 0 0 40000 0 0 -3558000 12000000 8442000 0 7990000 -7990000 0 0 10774000 44021000 6622000 12000000 73417000 29917000 26401000 22218000 15142000 -4252000 -29107000 65285000 51198000 514000 555000 7915000 6173000 7891000 3656000 49993000 41924000 36468000 23755000 2000000 4234000 11197000 0 Change in pension funds Change in pension funds 0 407000 -49665000 -27582000 342000 5330000 -11274000 8029000 11000000 0 Paid extraordinary dividend Paid extraordinary dividend 40000 0 -28000 -13359000 300000 983000 17920000 -2782000 -873000 15548000 18030000 1 SPECIAL ITEMSSpecial items include significant income and expenses that have a special character in relation to the Group’s earnings generating activity such as the costs of comprehensive structuring of processes and basic structural adjustments, as well as any disposal gains and losses associated with them, and which are of considerable importance over time. Special items also include other significant amounts of a non-recurring nature, which, according to management’s assessment, are not part of the Group’s primary operations. As reported in the management review, the profit for the period is aected by circumstances that dier from what management considers as part of the primary operations. Special items for the year included the following costs: GROUP PARENT COMPANYDKK’000 2023/24 2022/23 2023/24 2022/23IncomeEU funding repayment - 324 - -Total income - 324 - -CostsRestructuring - 25 - 25Integration and transformation 8,593 4,308 4,233 3,065Business set-ups and acquisitions 7,388 1,592 7,388 1,592Total costs 15,981 5,925 11,621 4,682Net loss from special items 15,981 6,249 11,621 4,682Recognised in the income statement as follows: Revenue - 324 - -Other external costs 15,318 4,236 11,621 3,696Sta costs 663 1,689 - 986Net loss from special items 15,981 6,249 11,621 4,682 GROUP PARENT COMPANYDKK’000 2023/24 2022/23 2023/24 2022/232 STAFF COSTSWages and salaries 74,054 61,110 45,950 37,705Pensions 6,057 5,360 3,773 2,491Other social security costs 8,686 5,280 4,290 3,45688,797 71,750 54,013 43,652Executive Board and Board of Directors (Parent Company) 3,125 2,666 3,125 2,666 112 84 57 45 Share-based payments In January 2021, an incentive scheme was established comprising both the Board of Directors, the Executive Board and other executives to maintain the management. When an option has vested, the option holder may subscribe for one new share in Dolphin Bidco A/S at an exercise price of DKK 147. As it is the Company’s practice to sele the schemes by way of shares (equity-seled share-based payment arrangements), no costs have been recognised in 2022/23 or 2023/24. GROUP PARENT COMPANYDKK’000 2023/24 2022/23 2023/24 2022/233 DEPRECIATION, AMORTISATION, AND IMPAIRMENTAmortisation of completed development projects 16,021 14,796 13,246 13,269Amortisation of soware 1,404 1,752 1,404 1,752Amortisation of customer relationships 2,013 - -Amortisation of goodwill 8,503 8,503 - -Depreciation on fixtures and fiings, tools and equipment 1,976 1,350 1,519 98529,917 26,401 16,169 16,006 4 OTHER FINANCIAL INCOMEInterest income from group enterprises 306 301 - 301Other interest income 208 253 42 138Exchange rate adjustments - 406 - -514 960 42 439 5 OTHER FINANCIAL COST Interest expenses to group enterprises - - 292 -Other interest expenses 7,915 6,398 7,883 6,276Exchange rate adjustments 2,901 615 913 61510,816 7,013 9,088 6,891 6 TAX ON NET PROFIT/LOSS FOR THE YEARCurrent tax on profit for the year 330 4,512 - 4,439Change in deferred tax for the year 7,126 4,396 655 990Change in deferred tax assets for the year - 1,969 - -7,456 10,877 655 5,429 0 0 5402000 38762000 -3558000 19474000 12000000 0 19474000 GROUPCompleted Development 8 INTANGIBLE ASSETSCustomer development projects in DKK’000 Goodwillrelationshipsprojects Sowareprogress TotalCost at 1 July 2023 85,027 - 152,659 7,885 19,509 265,080Additions - - - 7,844 28,624 36,468Additions through business combinations - 12,370 - - - 12,370Transfers - - 32,461 - -32,461 -Exchange rate adjustments - - 175 1 131 307Cost at 30 June 2024 85,027 12,370 185,295 15,730 15,803 314,225Amortisation and impairment at 1 July 2023 -13,335 - -117,132 -5,698 - -136,165Amortisation -8,503 -2,013 -16,527 -1,404 - -28,447Exchange rate adjustments - - -81 - - -81Amortisation and impairment at 30 June 2024 -21,838 -2,013 -133,740 -7,102 - -164,693Carrying amount at 30 June 2024 63,189 10,357 51,555 8,628 15,803 149,532Amortised over 10 years 2-10 years 4-7 years 3-10 yearsDevelopment projects in progress relates to development of soware solutions to improve safety, cost and performance of marine operations such as Voyage Data Recorders (VDR), Sha Power Meters, IoT infrastructure and Ship Performance Monitoring Solutions.The relating expenses primarily consist of internal expenses such as payroll costs, recorded through an internal project module, external consultancy costs and other direct related costs. Completed projects relates to products launched before 30June 2024 generating revenue.PARENT COMPANYCompleted Development development projects in DKK’000projects Sowareprogress TotalCost at 1 July 2023 146,499 7,829 14,927 169,255Additions - 7,822 23,996 31,818Transfers 24,239 - -24,239 -Cost at 30 June 2024 170,738 15,651 14,684 201,073Amortisation and impairment at 1 July 2023 -115,232 -5,698 - -120,930Amortisation -13,752 -1,405 - -15,157Amortisation and impairment at 30 June 2024 -128,984 -7,1 03 - -136,087Amortisation at 30 June 2024 41,754 8,548 14,684 64,986Amortised over 4-7 years 3-10 years GROUP PARENT COMPANYDKK’000 2023/24 2022/23 2023/24 2022/239 FIXTURES AND FITTINGS, TOOLS AND EQUIPMENTCost 1 July 13,282 10,093 8,794 5,457Additions 2,000 4,273 1,007 3,888Disposals - -551 - -551Exchange rate adjustments 127 -533 - -Cost 30 June 15,409 13,282 9,801 8,794Depreciation and write-down 1 July -9,058 -8,740 -5,122 -4,688Depreciation -1,976 -1,305 -1,518 -940Reversal of depreciation and writedown of disposals - 506 - 506Exchange rate adjustments -117 481 - -Depreciation and write-down 30 June -11,151 -9,058 -6,640 -5,122Carrying amount at 30 June 4,258 4,224 3,161 3,672 10 INVESTMENTS IN GROUP ENTERPRISESCost at 1 July 106,594 106,594Additions 186 -Carrying amount at 30 June 106,780 106,594Of which the carrying amount of non-depreciated increases in value is 85,027 85,027Voting rights Name and registered oce Currency Equity Net profitand ownershipDanelec Norway AS, Ulset, Norway NOK’000 56,740 39,550 100%Danelec GmbH, Hamburg, Germany EUR’000 - - 100%The financial information disclosed is from the companies most recent annual report covering the period 1 July 2022 - 30June 2023. The first annual report for Danelec GmbH covering the period 18 April 2023 - 31 December 2023 has not yet been reported. GROUP PARENT COMPANYDKK’000 2023/24 2022/23 2023/24 2022/2311 PREPAYMENTS AND ACCRUED INCOMEPrepaid expenses 1,265 1,834 621 1,038Accrued income 399 3,074 - -1,664 4,908 621 1,038Prepayments include accrual of expenses relating to subsequent years and accrued income related to current year not yet invoiced. 12 SHARE CAPITALThe share capital consists of A-shares, each with a nominal value of DKK 2,000,000, B-shares, each with a nominal value of DKK 2,000,000, C-shares, each with a nominal value of DKK 1,600,000, D-shares, each with a nominal value of DKK 134,000 and E-shares each with a nominal value of DKK 5,000,000. 13 PROVISIONS FOR DEFERRED TAXDeferred tax at 1 July 13,404 9,008 9,999 9,008Deferred tax adjustment for the year 7,126 4,396 1,126 991Deferred tax at 30 June 20,530 13,404 11,125 9,999 14 OTHER PROVISIONS Pension liabilities 7,874 6,155 - -Warranty provision 893 893 893 8938,767 7,048 893 893 15 DEBT TO CREDIT INSTITUTIONSDue within 1 year 5,555 5,555 5,555 5,555Due within 1-5 years 104,007 104,349 104,007 104,349Due aer 5 years - - - -109,562 109,904 109,562 109,904 16 PREPAYMENTS AND DEFERRED INCOME Received funding 1,836 2,342 1,836 2,342Deferred income 4,789 1,542 3,777 1,1846,625 3,884 5,613 3,526 GROUPDKK’000 2023/24 2022/2317 OTHER NON-CASH ADJUSTMENTSOther financial income -514 -960Other financial costs 10,816 7,013Tax on net profit/loss for the year 7,456 10,877Other adjustments 4,460 -1,78822,218 15,14218 CHANGE IN WORKING CAPITAL Change in inventories 3,663 -11,305Change in receivables -8,336 -34,758Change in trade payables and other payables 421 16,956-4,252 -29,107 19 CONTINGENCIESLease commitments The Group has entered into operating lease commitments. Total future lease payments amounts to DKK 403.6 thousand within 1 year and DKK 182.8 thousand between 1-3 years. Rent obligations The Group has entered into rental agreements amounting to DKK 27.0 million in the notice of termination period, hereof DKK 8.0 million aer 5years. Joint taxation With Dolphin HoldCo A/S, company reg. no 41087811 as administration company, the Parent Company is subject to the Danish scheme of joint taxation and unlimitedly, jointly, and severally liable, along with the other jointly taxed companies, for the total corporation tax and for any obligations to withhold tax on interest, royalties, and dividends. 20 CHARGES AND SECURITY For bank facilities in Spar Nord, the Group has issued a leer of indemnity, DKK 40 million that includes all non-current assets e.g. goodwill, property, plant and equipment and also inventories and other receivables. In addition, a mortgage ban has been given for assets. The Group has pledged the share capital in Danelec Norway AS, NOK 2 million for all balances with Spar Nord, including Danelec Electronics A/S and Dolphin BidCo A/S. Key figures and ratios stated in the consolidated financial statements have been calculated as follows:Direct Margin Direct profit (as defined below) as a percentage of Revenue Gross margin Gross profit as a percentage of RevenueProfit margin Operating profit/loss as a percentage of RevenueCurrent ratio Current assets as a percentage of Current liabilitiesSolvency ratio Equity end of year as a percentage of Total assets end of yearReturn on equity Average equity as a percentage of Net profit/loss for the yearRevenue growth, reported Absolute revenue growth as a percentage of Revenue in comparative periodOrganic growth is a measure of growth excluding the impact of acquisitions, Revenue growth, organicdivestments and foreign exchange rate adjutsments from year-on-year comparisonsSpecial items As defined in note 1Direct profit Revenue minus cost of salesEBITDA Earnings before interest, tax, depreciation, amortisation and impairment lossesEBIT Earnings before interest and tax (operating profit) 21 RELATED PARTIESControlling interests Dolphin BidCo A/S, Hørmarken 2, 3520 Farum, Denmark Majority shareholderDolphin HoldCo A/S, Hørmarken 2, 3520 Farum, Denmark Danelec Norway AS, Åsamyrane 88B, 5116 Ulset, Norway SubsidiaryDanelec GmbH, Lademannbogen 29, 22339 Hamburg, Germany Subsidiary Transactions with related parties GROUP PARENT COMPANYDKK’000 2023/24 2022/23 2023/24 2022/23Income statementSales to subsidiaries - - 875 42Dividend received - - 9,282 -Interest income 306 183 - 301Interest expense - - 292 -Balance sheetTrade receivables from subsidiaries - - 30 119Loans to group enterprises - 9,544 13,839 15,013Loans from group enterprises 1,730 - 35,875 -Paid dividend 11,000 - 11,000 -Apart from the distribution of dividends, there have been no transactions with the capital owners. Remuneration of the Executive Board and Board of Directors is disclosed in note 2 Sta costs. Consolidated financial statements Danelec Electronics A/S is part of the consolidated financial statements of Dolphin HoldCo A/S, Hørmarken 2, 3520 Farum, Denmark. 22 ACCOUNTING POLICIES The Annual Report for Danelec Group for 2023/24 has been prepared in accordance with the Danish Financial Statements Act applying to reporting class C enterprises (medium sized enterprises).The financial statements for 2023/24 are presented in DKK thousand.Consolidated Financial Statements ControlThe consolidated financial statements comprise Parent Company Danelec Electronics A/S and groupenterprises controlled by Danelec Electronics A/S.Control means the power to exercise decisive influence over a group enterprise’s financial and operating decisions. Moreover, the possibility of yielding a return from the investment is required.In assessing whether the Parent Company controls an entity, de facto control is also taken into consideration.The existence of potential voting rights that may currently be exercised or converted into additional voting rights is considered when assessing whether an entity may become empowered to exercise decisive influence over another entity’s financial and operating decisions.Preparation of the Consolidated Financial Statements The consolidated financial statements are preparedas a consolidation of the Parent Company’s and theindividual group enterprises financial statements, which are prepared according to the Group’s accounting policies. On consolidation, intra-group income and expenses, shareholdings, intra-group balances and dividends as well as realised and unrealised gains on intra-group transactions are eliminated. Unrealised gains on transactions with associates are eliminated in proportion to the Group’s interest in the entity. Unrealised losses are eliminated in the same way as unrealised gains unless they do not reflect impairment.The group enterprise’s financial statement items are included 100% in the consolidated financial statements. Business Combinations and Goodwill Newly acquired entities are recognized in the consolidated financial statements from the acquisition date. Entities sold or otherwise disposedof are recognized in the consolidated financial statements up to the date of disposal. Comparativefigures are not restated to reflect newly acquired entities. The acquisition date is the date when the Group actually obtains control of the acquiree.The purchase method is applied to acquisitions of new businesses over which the Group obtains control. The acquired businesses’ identified assets, liabilities and contingent liabilities are measured at fair value at the acquisition date. Identifiable intangible assets are recognized if they are separable or arise from a contractual right. Deferredtax on revaluations is recognized.Positive dierences (goodwill) between, on the one hand, the consideration for the acquiree, the value of non-controlling interests in the acquired entity and the fair value of any previously acquired equity investments and, on the other hand, the fair value of the assets, liabilities and contingent liabilities acquired are recognized as goodwill in intangible assets. Goodwill is amortised on a straight line basisin the income statement based on an individual assessment of the economic life of the asset.Upon acquisition, goodwill is allocated to the cash-generating units, which subsequently form the basis for impairment testing. Goodwill and fair value adjustments in connection with the acquisition of a foreign entity with a functional currency dierent from the Group’s presentation currency are accounted for as assets and liabilities belonging to the foreign entity and are, on initial recognition, translated into the foreign entity’s functional currency using the exchange rate at the transactiondate.The purchase consideration for an entity consists of the fair value of the agreed consideration in the form of assets transferred, liabilities assumed and equity instruments issued. If part of the purchase consideration is contingent on future events or compliance with agreed terms, such part of the purchase consideration is recognized at fair value at the acquisition date. Subsequent adjustments of contingent purchase considerations are recognized in the income statement.Expenses incurred to acquire entities are recognizedin the income statement in the year in which they are incurred.If uncertainties regarding the identification or measurement of acquired assets, liabilities or contingent liabilities or the determination of the purchase consideration exist at the acquisition date, initial recognition will take place based on provisional values. If it turns out subsequently that the identification or measurement of the purchase consideration, acquired assets, liabilities or contingent liabilities was incorrect on initial recognition, the statement will be adjusted retrospectively, including goodwill, until 12 months aer the acquisition, and comparative figures will Recognition and Measurement in generalIncome is recognized in the income statement concurrently with its realisation, including the recognition of value adjustments of financial assets and liabilities. Likewise, all costs are recognized in the income statement, including depreciations amortisations, writedowns for impairment, provisions, and reversals due to changes in estimated amounts previously recognized in the income statement.Assets are recognized in the statement of financial position when it seems probable that future economic benefits will flow to the Group and the value of the asset can be reliably measured.Liabilities are recognized in the statement of financial position when it is seems probable that future economic benefits will flow out of the Group and the value of the liability can be reliably measured. Assets and liabilities are measured at cost at the initial recognition. Hereaer, assets and liabilities are measured as described below for each individual accounting item.Upon recognition and measurement, allowances aremade for such predictable losses and risks which may arise prior to the presentation of the annual report and concern maers that exist on reporting date.Foreign Currency Translation Transactions in foreign currency are translated by using the exchange rate prevailing at the date of the transaction. Dierences in the rate of exchange arising between the rate at the date of transaction and the rate at the date of payment are recognized in the profit and loss account as an item under net financials. If currency positions are considered to hedge future cash flows, the value adjustments are recognized directly in equity in a fair value reserve.Receivables, payables, and other foreign currency monetary items are translated using the closing rate. The dierence between the closing rate and the rate at the time of the occurrence or initial recognition in the latest financial statements of the receivable or payable is recognized in the income statement under financial income and expenses. Fixed assets acquired and paid for in foreign currency are measured at the exchange rate prevailing at the date of the transaction.Income Statement Revenue Revenue is recognized in the income statement if delivery and passing of risk to the buyer have taken place before the end of the year and if the income can be determined reliably and inflow is anticipated. Recognition of revenue is exclusive of VAT and taxes and less any discounts relating directly to sales.Own Work Capitalised Own work capitalised include sta costs incurred during the financial year and recognised in the cost of proprietary intangible assets.Cost of Sales Cost of sales comprises costs all costs related to products and services which have been sold less discounts and changes in inventories.Other External Costs Other external costs comprise costs incurred for distribution, sales, advertising, administration, premises, loss on receivables, and operational leasing costs. Other external costs also include research and development costs that do not qualifyfor capitalisation.Sta costsSta costs include salaries and wages, including holiday allowances, pensions, and other social security costs, etc., for sta members. Sta costs are less government reimbursements.Depreciation, Amortisation, and Impairment Depreciation, amortisation, and impairment comprise depreciation on, amortisation of, and writedown for impairment of intangible and tangibleassets, respectively.Income from Investments in Group Enterprises Dividends from investments in group enterprises are recognized in the income statement of the Parent Company in the year the dividends are declared. Financial Income and Expenses Financial income and expenses are recognized in the income statement with the amounts concerning the financial year. Financial income and expenses comprise interest income and expenses, financial expenses from financial leasing, realised and unrealised capital gains and losses relating to securities, debt and transactions in foreign currency, amortisation of financial assets and liabilities as well as surcharges and reimbursements under the advance tax scheme, etc.Tax on Net Profit/Loss for the Year Tax for the year comprises the current income tax for the year and changes in deferred tax and is recognized in the income statement with the share aributable to the net profit or loss for the year and directly in equity with the share aributable to entries directly in equity.The Parent Company is subject to Danish rules on compulsory joint taxation of Danish group enterprises. The current Danish income tax is allocated among the jointly taxed companies Balance Sheet Intangible assets Goodwill and Customer relationships are measured at cost less accumulated amortisation. Goodwill and Customer relationships are amortised on a straight-line basis over the expected useful life based upon management experience with the business. For strategic acquisitions of businesses with a strong market position and technologies that are complementary to Danelec useful life is considered 10 years for goodwill and 2-10 years for Customer relationships.Costs of development projects comprise salaries, amortisation and other expenses directly or indirectly aributable to the Group’s development activities.Clearly defined and identifiable development projects are recognized as intangible assets provided that they are proven to be technically practicable, that sucient resources and a potential market or development opportunity exist, and insofar as the intention is to produce, market or utilise the project. It is, however, a condition that the cost can be reliably calculated and that a sucientlyhigh degree of certainty indicates that future earnings will cover the costs of production, sales, and administration. Other development costs are recognized in the income statement concurrently with their realisation.Capitalised development costs are measured at cost less accumulated amortisation or at a lower recoverable amount.Aer completion of the development work, capitalised development costs are amortised on a straight-line basis over the estimated useful economic life. The amortisation period is usually 4-7 years. Soware is measured at cost less accumulated amortisation and less any accumulated impairment losses or at a lower value in use. The amortisation period is 3-10 years.If the price (fair value) subsequently rises, write down for impairment must be wholly or partly reversed in the income statement.Property, Plant and Equipment Property, plant and equipment are measured at cost less accrued depreciation and writedown for impairment.The cost comprises acquisition cost and costs directly associated with the acquisition until the timewhen the asset is ready for use. The cost of a total asset is divided into separate components. These components are depreciated separately, the useful lives of each individual components diering.Depreciation is done on a straight-line basis according to an assessment of the expected usefullife: Fixtures and fiings, tools and equipment 3-5 years.Minor assets with an expected useful life of less than 1 year are recognized as costs in the income statement in the year of acquisition.Investments in Group Enterprises Investments in group enterprises are measured at cost. If there is indication of impairment, impairmenttesting is carried out. Where the carrying amount exceeds the recoverable amount it is wrien down to the recoverable amount.Leases Leases are regarded as operating leases. Payments in connection with operating leases and other lease agreements are recognized in the income statement for the term of the contract. The Group’s total liabilities concerning operating leases and lease agreements are recognized under contingencies,etc.Impairment Loss relating to Non-Current Assets The carrying amount of both intangible and tangiblefixed assets are subject to annual impairment tests in order to disclose any indications of impairment beyond those expressed by amortisation and depreciation respectively.If indications of impairment are disclosed, impairment tests are carried out for each individual asset or group of assets, respectively. Writedown for impairment is done to the recoverable amount if this value is lower than the carrying amount.The recoverable amount is the higher value of value in use and selling price less expected selling cost. The value in use is calculated as the present value of the expected net cash flows from the use of the asset or the asset group and expected net cash flows from the sale of the asset or the asset group aer the end of their useful life.Previously recognized impairment losses are reversed when conditions for impairment no longer exist.Inventories Inventories are measured at cost according to the FIFO method. In cases when the net realisable value of the inventories is lower than the cost, the laer is wrien down for impairment to this lower value.Costs of goods for resale, raw materials, and consumables comprise acquisition costs plus delivery costs.Indirect production costs comprise indirect materials and wages, maintenance and depreciationof machinery, factory buildings, and equipment usedin the production process, and costs for factory administration and factory management. Borrowing expenses are not recognized in cost. The net realisable value for inventories is recognized as the market price less costs of completion and selling costs. The net realisable value is determined with due consideration of negotiability, obsolescence, and the development of expected market prices.Receivables Receivables are measured at amortised cost, which usually corresponds to face value. In order to meet expected losses, they are wrien down for impairment to the net realisable value.Prepayments and Accrued Income Prepayments and accrued income recognized underassets comprise incurred costs concerning the following financial year.Cash and Cash Equivalents Cash and cash equivalents comprise cash at bank and on hand.Equity Reserve for Development Costs The reserve for development costs comprises recognized development costs less related deferredtax liabilities.The reserve cannot be used as dividends or for covering losses. The reserve is reduced or dissolvedif the recognized development costs are amortised or abandoned. This is done by direct transfer to the distributable reserves of the equity.Dividend Dividend expected to be distributed for the year is recognized as a separate item under equity. Proposed dividend is recognized as a liability at the time of approval by the annual general meeting (time of declaration).Income Tax and Deferred Tax Current tax liabilities and current tax receivable are recognized in the statement of financial position with the amount calculated on the basis of the expected taxable income for the year adjusted for tax on previous years’ taxable income and prepaid taxes. Tax receivables and tax liabilities are oset to the extent that a legal right of set-o exists and the items are expected to be seled net or simultaneously.According to the rules of joint taxation, the Parent Company is unlimitedly, jointly, and severally liable to pay the Danish tax authorities the total income tax, including withholding tax on interest, royalties, and dividends, arising from the jointly taxed group ofcompanies.Deferred tax is measured on the basis of temporary dierences in assets and liabilities with a focus on the statement of financial position. Deferred tax is measured at net realisable value.Deferred tax is measured based on the tax rules andtax rates applying under the legislation prevailing in the respective countries on the reporting date when the deferred tax is expected to be released ascurrent tax. Changes in deferred tax due to changedtax rates are recognized in the income statement, except for items included directly in the equity.Deferred tax assets, including the tax value of tax losses allowed for carryforward, are recognized at the value at which they are expected to be realisable, either by selement against tax of future earnings or by set-o in deferred tax liabilities within the same legal tax unit. Any deferred net tax assets are measured at net realisable value. Other Provisions Provisions are recognized when - in consequence of an event occurred before or on the balance sheet date - the Group has a legal or constructive obligation and it is probable that economic benefits must be given up to sele the obligation.Other provisions include pension liabilities and warranty obligations.Liabilities with respect to defined contribution-based pension plans, where the Group makes payments to independent pension companies, are recognized in the income statement under Sta costs.Warranty obligations with respect of repair work within the warranty period of 3 years. Provisions are measured and recognized based on experience with guarantee work.Liabilities other than Provisions Financial liabilities other than provisions related to borrowings are recognized at the received proceeds less transaction costs incurred. In subsequent periods, the financial liabilities are recognized at amortised cost, corresponding to the capitalised value when using the eective interest rate. The dierence between the proceeds and the nominal value is recognized in the income statement during the term of the loan.Other liabilities concerning payables to suppliers, group enterprises, and other payables are measuredat amortised cost which usually corresponds to the nominal value.Cash Flow Statement The cash flow statement shows the Group’s cash flows for the year, divided in cash flows deriving from operating activities, investment activities and financing activities, respectively, the changes in the liabilities, and cash and cash equivalents at the beginning and the end of the year, respectively.The eect on cash flows derived from the acquisition and sale of enterprises appears separately under cash flows from investment activities. In the statement of cash flows, cash flows derived from acquirees are recognized as of the date of acquisition, and cash flows derived from sold enterprises are recognized until the date of sale.Cash Flows from Operating Activities Cash flows from operating activities are calculated as the Group’s share of the profit adjusted for noncash operating items, changes in the working capital, and corporate income tax paid. Dividend income from equity investments are recognized under “Interest income and dividend received”.Cash Flows from Investment Activities Cash flows from investment activities comprise payments in connection with the acquisition and sale of enterprises and activities as well as the acquisition and sale of intangible assets, property, plant, and equipment, and investments, respectively.Cash Flows from Financing Activities Cash flows from financing activities include changes in the size or the composition of the Group’s share capital and costs aached to it, as well as raising loans, repayments of interest-bearing payables and payment of dividend to shareholders. The Board of Directors and the Managing Director have today considered and approved the Annual Report of Danelec Electronics A/S for the financial year 1 July 2023 - 30 June 2024.The Annual Report has been 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 financial position of the Group and the Parent Company as of 30 June 2024 as well as of the results of the Group and the Parent Company operations and the Group’s cash flows for the financial year 1 July 2023 - 30 June 2024.Moreover, in our opinion, the Management’s Report gives a true and fair view of the development in the operations and financial maers, the results for the year and the Group’s and the Parent Company’s financial position.The Annual Report is submied for the approval of the Annual General Meeting. Farum Casper Jensen Peter Lund Hans Oosen Arne Handeland Henrik Leerberg To the Shareholders of Danelec Electronics A/S Opinion We have audited the consolidated financial statements and the parent financial statements of Danelec Electronics A/S for the financial year 1 July 2023 - 30 June 2024, which comprise the income statement, balance sheet, statement of changes in equity and notes, including a summary of significant accounting policies, for the Group as well as the Parent, and the consolidated cash flow statement. The consolidated financial statements and the parent financial statements are prepared in accordance with the Danish Financial Statements Act.In our opinion, the consolidated financial statementsand the parent financial statements give a true and fair view of the Group’s and the Parent’s financial position at and of the results of their operations and the consolidated cash flows for the financial year 1 July 2023 - 30 June 2024 in accordance with the Danish Financial Statements Act. Basis for OpinionWe conducted our audit in accordance with International Standards on Auditing (ISAs) and 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 financial statements“ section of this auditor’s report. We are independent of the Group in accordance with the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sucient and appropriate to provide a basis for our opinion. Management’s Responsibilities for the Consolidated Financial Statements and the Parent Financial StatementsManagement is responsible for the preparation of consolidated financial statements and parent financial statements that give a true and fair view in accordance with the Danish Financial Statements Act, and for such internal control as Management determines is necessary to enable the preparation of consolidated financial statements and parent financial statements that are free from material misstatement, whether due to fraud orerror.In preparing the consolidated financial statements and the parent financial statements, Management is responsible for assessing the Group’s and the Entity’s ability to continue as a going concern, for disclosing, as applicable, maers related to going concern, and for using the going concern basis of accounting in preparing the consolidated financial statements and the parent financial statements unless Management either intends to liquidate the Entity or to cease operations, or has no realistic alternative but to do so. Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements and the Parent Financial StatementsOur objectives are to obtain reasonable assurance about whether the consolidated financial statements and the parent financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements and parent 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 financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sucient 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 eectiveness of theGroup’s and the Entity’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 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 Entity’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw aention in our auditor’s report to the related disclosures in the consolidated financial statements and the parent 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 Entity to cease to continue as a going concern.• Evaluate the overall presentation, structure and content of the consolidated financial statements and the parent financial statements, including the disclosures in the notes, and whether the consolidated financial statements and the parent financial statements represent the underlying transactions and events in a manner that gives a true and fair view.• Obtain sucient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.We communicate with those charged with governance regarding, among other maers, 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 the Management CommentaryManagement is responsible for the management commentary. Our opinion on the consolidated financial statements and the parent financial statements does not cover the 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 financial statements, our responsibility is to read the management commentary and, in doing so, consider whether the management commentary is materially inconsistent with the consolidated financial statements and the parent financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.Moreover, it is our responsibility to consider whether the management commentary provides the information required under the Danish Financial Statements Act.Based on the work we have performed, we conclude that the management commentary is in accordance with the consolidated financial statements and the parent 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 the management commentary. Copenhagen Deloie State Authorised Public Accountants 33963556 Mads Haugegaard Albrechtsen State Authorised Public Accountant mne45846 Hørmarken 2 3520 Farum +45 4594 4300 www.danelec.com 18630877 Weidekampsgade 6 2300 København S Annual report Auditor's report on audited financial statements ParsePort XBRL Converter 2023-07-01 2024-06-30 2022-07-01 2023-06-30 2024-10-29 Danelec Electronics A/S Reporting class C, medium-size enterprise 2024-10-24 33963556 Deloitte Statsautoriseret Revisionspartnerselskab Weidekampsgade 6 2300 København S Opinion Basis for Opinion 2024-10-24 62112000 55153000 30769000 18643000