21276308 2020-12-31 cmn:TwoYearsAgoMember 21276308 2019-12-31 cmn:ThreeYearsAgoMember 21276308 2018-12-31 cmn:FourYearsAgoMember 21276308 2022-12-31 21276308 2021-12-31 21276308 2022-01-01 fsa:ContributedCapitalMember 21276308 2022-01-01 fsa:ReserveForDevelopmentExpenditureMember 21276308 2022-01-01 fsa:RetainedEarningsMember 21276308 2022-12-31 fsa:ContributedCapitalMember 21276308 2022-12-31 fsa:ReserveForDevelopmentExpenditureMember 21276308 2022-12-31 fsa:RetainedEarningsMember 21276308 2022-01-01 fsa:CompletedDevelopmentProjectsMember 21276308 2022-01-01 fsa:AcquiredLicencesMember 21276308 2022-01-01 fsa:GoodwillMember 21276308 2022-01-01 fsa:DevelopmentProjectsInProgressMember 21276308 2022-12-31 fsa:CompletedDevelopmentProjectsMember 21276308 2022-12-31 fsa:AcquiredLicencesMember 21276308 2022-12-31 fsa:GoodwillMember 21276308 2022-12-31 fsa:DevelopmentProjectsInProgressMember 21276308 2022-01-01 fsa:LandAndBuildingsMember 21276308 2022-01-01 fsa:FixturesFittingsToolsAndEquipmentMember 21276308 2022-01-01 fsa:LeaseholdImprovementsMember 21276308 2022-12-31 fsa:LandAndBuildingsMember 21276308 2022-12-31 fsa:FixturesFittingsToolsAndEquipmentMember 21276308 2022-12-31 fsa:LeaseholdImprovementsMember 21276308 2022-12-31 fsa:LandAndBuildingsMember fsa:LeasedAssetsMember 21276308 2022-12-31 fsa:FixturesFittingsToolsAndEquipmentMember fsa:LeasedAssetsMember 21276308 2022-12-31 fsa:LeaseholdImprovementsMember fsa:LeasedAssetsMember 21276308 2022-01-01 fsa:ReceivablesFromGroupEnterprisesMember 21276308 2022-01-01 fsa:DepositsLongtermInvestmentsAndReceivablesMember 21276308 2022-12-31 fsa:ReceivablesFromGroupEnterprisesMember 21276308 2022-12-31 fsa:DepositsLongtermInvestmentsAndReceivablesMember 21276308 2022-12-31 fsa:LongtermLeaseCommitmentsMember 21276308 2021-12-31 fsa:LongtermLeaseCommitmentsMember 21276308 2022-12-31 fsa:LongtermPayablesToGroupEnterprisesMember 21276308 2021-12-31 fsa:LongtermPayablesToGroupEnterprisesMember 21276308 2022-01-01 2022-12-31 21276308 2022-01-01 2022-12-31 1 21276308 2022-01-01 2022-12-31 memberOfBoardIdentifier_executive_board_1 21276308 2022-01-01 2022-12-31 memberOfBoardIdentifier_board_of_director_1 21276308 2022-01-01 2022-12-31 memberOfBoardIdentifier_board_of_director_2 21276308 2022-01-01 2022-12-31 memberOfBoardIdentifier_board_of_director_3 21276308 2022-01-01 2022-12-31 2 21276308 2020-01-01 2020-12-31 cmn:TwoYearsAgoMember 21276308 2019-01-01 2019-12-31 cmn:ThreeYearsAgoMember 21276308 2018-01-01 2018-12-31 cmn:FourYearsAgoMember 21276308 2021-01-01 2021-12-31 21276308 2022-01-01 2022-12-31 fsa:RetainedEarningsMember 21276308 2021-01-01 2021-12-31 fsa:RetainedEarningsMember 21276308 2022-01-01 2022-12-31 fsa:ContributedCapitalMember 21276308 2022-01-01 2022-12-31 fsa:ReserveForDevelopmentExpenditureMember 21276308 2022-01-01 2022-12-31 fsa:RetainedEarningsMember 21276308 2022-01-01 2022-12-31 fsa:CompletedDevelopmentProjectsMember 21276308 2022-01-01 2022-12-31 fsa:AcquiredLicencesMember 21276308 2022-01-01 2022-12-31 fsa:GoodwillMember 21276308 2022-01-01 2022-12-31 fsa:DevelopmentProjectsInProgressMember 21276308 2022-01-01 2022-12-31 fsa:LandAndBuildingsMember 21276308 2022-01-01 2022-12-31 fsa:FixturesFittingsToolsAndEquipmentMember 21276308 2022-01-01 2022-12-31 fsa:LeaseholdImprovementsMember 21276308 2022-01-01 2022-12-31 fsa:ReceivablesFromGroupEnterprisesMember 21276308 2022-01-01 2022-12-31 fsa:DepositsLongtermInvestmentsAndReceivablesMember iso4217:DKK pure Årsrapport 33771231 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab Strandvejen 44 2900 Hellerup 2022-01-01 2021-01-01 2022-12-31 2021-12-31 21276308 Keylane A/S Kigkurren 10 2300 Copenhagen + 45 70 20 40 90 1998-05-01 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab 33771231 Strandvejen 44 2900 Hellerup Denmark 39 45 39 45 koebenhavn@pwc.dk 2023-06-28 Leonard Adryan de Looff Regnskabsklasse C, mellemstor virksomhed Revisionspåtegning The Executive Board and Board of Directors have today considered and adopted the Financial Statements of Keylane A/S for the financial year 1 January - 31 December 2022. The Annual Report is prepared in accordance with the Danish Financial Statements Act. In our opinion the Financial Statements give a true and fair view of the financial position at 31 December 2022 of the Company and of the results of the Company operations for 2022. In our opinion, Management's Review includes a true and fair account of the matters addressed in the Review. We recommend that the Financial Statements be adopted at the Annual General Meeting. 2023-06-28 Copenhagen Leonard Adryan de Looff CEO Tonny Rabjerg Chairman Michael Nexø Leth Vice chairman Leonard Adryan de Looff To the shareholder of Keylane A/S Opinion In our opinion, the Financial Statements give a true and fair view of the financial position of the Company at 31 December 2022 and of the results of the Company´s operations for the financial year 1 January - 31 December 2022 in accordance with the Danish Financial Statements Act. We have audited the Financial Statements of Keylane A/S for the financial year 1 January - 31 December 2022, which comprise income statement, balance sheet, statement of changes in equity and notes, including a summary of significant accounting policies (”the Financial Statements”). Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the ”Auditor’s responsibilities for the audit of the Financial Statements” section of our report. We are independent of the Company in accordance with the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the Danish Financial Statements Act, and for such internal control as Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the Financial Statements, Management is responsible for assessing the Company´s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting in preparing the Financial Statements unless Management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Our objectives are to obtain reasonable assurance about whether the Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Financial Statements. As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company´s internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management. Conclude on the appropriateness of Management’s use of the going concern basis of accounting in preparing the Financial Statements and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company´s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern. Evaluate the overall presentation, structure and contents of the Financial Statements, including the disclosures, and whether the Financial Statements represent the underlying transactions and events in a manner that gives a true and fair view. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Management is responsible for Management’s Review. Our opinion on the Financial Statements does not cover Management’s Review, and we do not express any form of assurance conclusion thereon. In connection with our audit of the Financial Statements, our responsibility is to read Management’s Review and, in doing so, consider whether Management’s Review is materially inconsistent with the Financial Statements or our knowledge obtained during the audit, or otherwise appears to be materially misstated. Moreover, it is our responsibility to consider whether Management’s Review provides the information required under the Danish Financial Statements Act. Based on the work we have performed, in our view, Management’s Review is in accordance with the Financial Statements and has been prepared in accordance with the requirements of the Danish Financial Statements Act. We did not identify any material misstatement in Management’s Review. Hellerup 2023-06-28 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab Niels Henrik B. Mikkelsen State Authorised Public Accountant mne16675 Martin Birch State Authorised Public Accountant mne42825 -104000 768000 26000 11421000 22416000 8782000 134270000 123282000 100866000 211448000 186252000 162756000 1039000 -1496000 -1329000 146 142 149 -31.5 -22.7 7.4 15.4 8.5 25.1 47.3 63.5 66.2 62.0 -73.6 -31.7 8.9 20.0 9.1 Key activities The key activities of Keylane A/S are listed below:• Sales, delivery, and support of Keylane’s software solutions to the Nordic financial market with particular focus on life, pension, and banking.• Development of key products in Keylane's software portfolio for distribution in all target markets of Keylane.Keylane A/S offers the following standard solutions in the Nordic market that empower the customers to launch a digital platform both with and without legacy migration. Development in the year The income statement of the Company for 2022 shows a loss of TDKK 52.482, and at 31 December 2022 the balance sheet of the Company shows equity of TDKK 45.043.The result of 2022 was not satisfactory, and several issues have had a negative effect:• Sales costs related to several sales projects in Norway and Finland. None of these opportunities have materialized as new sales.• Significant investments and costs related to developing and maintaining the Plexus platform, Keylane’s primary policy administration solution for future sales in the Life & Pension industry. The work on increasing the quality of the platform and improve our deliveries to our customers will continue throughout 2023 and 2024. • Keylane has in recent years made substantial investments in the new service enabled cloud version of the Obex financial planning platform. This will replace several of Obex’s older legacy products. The first implementation of the new platform has during 2021 been under implementation with one of Obex’s biggest customer. • Payments from Keylane B.V. in the Netherlands related to sale of Plexus solutions is received as a percentage of the realized SaaS revenues. Plexus implementation projects often has a duration of at least 2-3 years, and SaaS revenues and payments increases as the customers migrate it’s pension funds/policies. This has the consequence that the return on Keylane A/S’ investments in the Plexus solutions for the Dutch market comes with up to a 2–5-year delay.• Finally 2022 has been effected by one-off costs related to organizational changes. Capital resources Keylane A/S will continue to significantly invest in both the Plexus and the Obex solutions. Keylane A/S is not expected to generate sufficient cash flows from operations in 2023 to support these investments. The parent company, Keylane Group B.V., has therefore issued a letter of support confirming that the Keylane Group will support Keylane A/S financially in this respect.Please refer to note 1. Uncertainty relating to recognition and measurement Calculation of the carrying amount of certain assets and liabilities, essentially development projects, requires assessments, estimates and assumptions concerning future events. The estimates made are based on historical experiences and other factors that Management considers appropriate in the circumstances, but that by their very nature are uncertain and unpredictable.The assumptions may be incomplete or inaccurate, and unexpected events or circumstances may arise. Moreover, the enterprise is subject to risks and uncertainties that may result in actual results differing from these estimates. It may be necessary to change estimates made previously because of changes in the circumstances that formed the basis of the previous estimates or based on new knowledge or subsequent events. Unusual events The financial position on 31 December 2022 of the Company and the results of the activities and cash flows of the Company for the financial year for 2022, have not been significantly affected by any unusual events. Subsequent events No events materially affecting the assessment of the Annual Report have occurred after the balance sheet date. 102326000 115535000 124267000 133890000 34599000 28513000 -56540000 -46868000 482000 1335000 2285000 1004000 -58343000 -46537000 -5861000 -9792000 -52482000 -36745000 -52482000 -36745000 93373000 93975000 36855000 40993000 2210000 5158000 7818000 3213000 140256000 143339000 8410000 11340000 2400000 1816000 74000 116000 10884000 13272000 13768000 9025000 26636000 20638000 179699000 206279000 0 27101000 1923000 1929000 1923000 29030000 153063000 185641000 458000 3571000 386000 1380000 0 0 257000 1552000 14869000 15528000 11767000 5110000 41166000 41166000 73982000 70119000 0 5861000 4691000 2383000 4691000 8244000 6422000 8861000 52930000 40933000 59352000 49794000 3014000 2714000 3589000 3605000 385000 1147000 36812000 8785000 41166000 41166000 -70105000 -13760000 45043000 97525000 4447000 3587000 22366000 30878000 70613000 50716000 129965000 100510000 179699000 206279000 41166000 70119000 -13760000 0 3863000 -3863000 0 0 -52482000 41166000 73982000 -70105000 Keylane A/S will continue to significantly invest in both the Plexus and the Obex solutions. Keylane A/S is not expected to generate sufficient cash flows from operations in 2023 to support these investments. The parent company, Keylane Group B.V., has therefore issued a letter of support confirming that the parent company, if needed, will support Keylane A/S financially till at least 30 June 2024. No events materially affecting the assessment of the Annual Report have occurred after the balance sheet date. 110703000 119557000 8272000 9353000 995000 1089000 4297000 3891000 124267000 133890000 125 144 30760000 24277000 4048000 4176000 -209000 60000 409000 1270000 73000 65000 1508000 0 777000 1004000 2285000 1004000 -5861000 -9652000 0 -140000 -5861000 -9792000 213188000 41158000 29961000 3213000 0 0 0 27676000 23071000 0 0 -23071000 236259000 41158000 29961000 7818000 119213000 165000 24803000 0 23673000 4138000 2948000 0 142886000 4303000 27751000 0 93373000 36855000 2210000 7818000 Development projects in progress relates to the two main products, Plexus and Obex.Development projects are recognised based on time recordings.For each product management have a planned business case. The projects are progressing and it is expected that the projects will be sold to new and current customers. 19760000 10914000 674000 0 1660000 0 19760000 12574000 674000 8420000 9098000 558000 2930000 1076000 42000 11350000 10174000 600000 8410000 0 0 8410000 2400000 74000 27101000 1929000 -27101000 -6000 0 1923000 Selling price of work in progress 6340000 40506000 Payments received on account -6267000 -38082000 73000 2424000 Recognised in the balance sheet as follows: Contract work in progress recognised in assets 458000 3571000 Prepayments received recognised in debt -385000 -1147000 73000 2424000 Prepayments consist of prepaid expenses concerning rent, insurance premiums and subscriptions as well. Deferred tax liabilities at 1 January 5,861,000 15,513,000 Amounts recognised in the income statement for the year -5,861,000 -9,652,000 Deferred tax liabilities at 31 December 0 5,861,000 Other provisions comprise provisions on entered contracts and covers disputes. Provision restorage cost for buildings 765 765 Other provisions 3926 1618 4691 2383 The provisions are expected to mature as follows: Within 1 year 3853 1618 Between 1 and 5 years 765 765 After 5 years 73 0 4691 2383 0 0 6422000 8861000 3014000 2714000 9436000 11575000 0 0 52930000 40933000 0 0 52930000 40933000 Payments due within 1 year are recognised in short-term debt. Other debt is recognised in long-term debt. The debt falls due for payment as specified below: Controlling interest Keylane Group B.V., Varrolaan 60, 3584 BW Utrecht, The Netherlands Majority shareholder Keylane Topholding B.V. (ultimate parent company) Transactions The Company has chosen only to disclose transactions which have not been made on an arm's length basis in accordance with section 98(c)(7) of the Danish Financial Statements Act. Transactions with related parties are in the financial year carried out on arm's length basis. The Company is included in the Group Annual Report for the following companies: Name Place of registered office Keylane Topholding B.V. (ultimate parent company) Varrolaan 603584 BW UtrechtThe Netherlands The Group Annual Report of Keylane Topholding B.V. and Keylane Group B.V. can be obtained at the above addresses. The Annual Report of Keylane A/S for 2022 has been prepared in accordance with the provisions of the Danish Financial Statements Act applying to medium-sized enterprises of reporting class C. The accounting policies applied remain unchanged from last year. The Financial Statements for 2022 are presented in TDKK. 1 With reference to section 86(4) of the Danish Financial Statements Act and to the cash flow statement included in the consolidated financial statements of Keylane B.V., the Company has not prepared a cash flow statement. Revenues are recognised in the income statement as earned. Furthermore, value adjustments of financial assets and liabilities measured at fair value or amortised cost are recognised. Moreover, all expenses incurred to achieve the earnings for the year are recognised in the income statement, including depreciation, amortisation, impairment losses and provisions as well as reversals due to changed accounting estimates of amounts that have previously been recognised in the income statement. Assets are recognised in the balance sheet when it is probable that future economic benefits attributable to the asset will flow to the Company, and the value of the asset can be measured reliably. Liabilities are recognised in the balance sheet when it is probable that future economic benefits will flow out of the Company, and the value of the liability can be measured reliably. Assets and liabilities are initially measured at cost. Subsequently, assets and liabilities are measured as described for each item below. Transactions in foreign currencies are translated at the exchange rates at the dates of transaction. Exchange differences arising due to differences between the transaction date rates and the rates at the dates of payment are recognised in financial income and expenses in the income statement. Where foreign exchange transactions are considered hedging of future cash flows, the value adjustments are recognised directly in equity. Receivables, payables and other monetary items in foreign currencies that have not been settled at the balance sheet date are translated at the exchange rates at the balance sheet date. Any differences between the exchange rates at the balance sheet date and the rates at the time when the receivable or the debt arose are recognised in financial income and expenses in the income statement. Fixed assets acquired in foreign currencies are measured at the transaction date rates. Contract work in progress is recognised at the rate of completion, which means that revenue equals the selling price of the work completed for the year (percentage-of-completion method). This method is applied when total revenues and expenses in respect of the contract and the stage of completion at the balance sheet date can be measured reliably, and it is probable that the economic benefits, including payments, will flow to the Company. The stage of completion is determined on the basis of the ratio between the expenses incurred and the total expected expenses of the contract. Services are recognised at the rate of completion of the service to which the contract relates by using the percentage-of-completion method, which means that revenue equals the selling price of the service completed for the year. This method is applied when total revenues and expenses in respect of the service and the stage of completion at the balance sheet date can be measured reliably, and it is probable that the economic benefits, including payments, will flow to the Company. The stage of completion is determined on the basis of the ratio between the expenses incurred and the total expected expenses of the service. Revenue is measured at the consideration received and is recognised exclusive of VAT and net of discounts relating to sales. Other external expenses comprise indirect production costs and expenses for premises, sales and distribution as well as office expenses, etc. With reference to section 32 of the Danish Financial Statements Act, gross profit/loss is calculated as a summary of revenue, work on own account recognised in assets and other external expenses. Staff expenses comprise wages and salaries as well as payroll expenses. Amortisation, depreciation and impairment losses comprise amortisation, depreciation and impairment of intangible assets and property, plant and equipment. Financial income and expenses are recognised in the income statement at the amounts relating to the financial year. Tax for the year consists of current tax for the year and changes in deferred tax for the year. The tax attributable to the profit for the year is recognised in the income statement, whereas the tax attributable to equity transactions is recognised directly in equity. Intellectual property rights etc. comprise development projects completed and in progress with relatedintellectual property rights, acquired intellectual property rights and prepayments for intangible assets.Development projects on clearly defined and identifiable products and processes, for which the technical rate of utilisation, adequate resources and a potential future market or development opportunity in the enterprise can be established, and where the intention is to manufacture, market or apply the product or process in question, are recognised as intangible assets. Other development costs are recognised as costs in the income statement as incurred. When recognising development projects as intangible assets, an amount equalling the costs incurred is taken to equity under Reserve for development costs that is reduced as the development projects are amortised and written down.The cost of development projects comprises costs such as salaries and amortisation that are directly and indirectly attributable to the development projects.Indirect production costs in the form of indirectly attributable staff costs and amortisation of intangible assets and depreciation of property, plant and equipment used in the development process are recognised in cost based on time spent on each project.Completed development projects are amortised on a straight-line basis using their estimated useful lives which are determined based on a specific assessment of each development project. For development projects, protected by intellectual property rights, the maximum period of amortisation is the remaining duration of the relevant rights. The amortisation periods used are 5-10 years.Intellectual property rights acquired are measured at cost less accumulated amortisation. Patents are amortised over their remaining duration, and licences are amortised over the term of the agreement, but over no more than 5 years.Intellectual property rights etc. are written down to the lower of recoverable amount and carrying amount. Licences are measured at the lower of cost less accumulated amortisation and recoverable amount.Licences are amortised over the licence period; however not exceeding 5 years. Goodwill is the positive difference between cost and value in use of assets and liabilities taken over as part of the acquisition. Goodwill is amortised straight-line over its estimated useful life which is fixed based on the experience gained by Management for each business area. Useful life is determined based on an assessment of whether the enterprises are strategically acquired enterprises with a strong market position and a long-term earnings profile and whether the amount of goodwill includes intangible resources of a temporary nature that cannot be separated and recognised as separate assets. Useful lives are reassessed on an annual basis. The amortisation periods used are 10 years.Goodwill is written down to the lower of recoverable amount and carrying amount. Property, plant and equipment are measured at cost less accumulated depreciation and less any accumulated impairment losses. Cost comprises the cost of acquisition and expenses directly related to the acquisition up until the time when the asset is ready for use. Depreciation based on cost reduced by any residual value is calculated on a straight-line basis over the expected useful lives of the assets, which are: Land and buildings 5 years Other fixtures and fittings, tools and equipment 3-5 years Leasehold improvements The fixed assets’ residual values are determined at nil. 5 years Depreciation period and residual value are reassessed annually. The carrying amounts of intangible assets and property, plant and equipment are reviewed on an annual basis to determine whether there is any indication of impairment other than that expressed by amortisation and depreciation. If so, the asset is written down to its lower recoverable amount. Other fixed asset investments consist of deposits and receivables from group enterprises. Fixed asset investments are measured at amortised cost. Receivables are measured in the balance sheet at the lower of amortised cost and net realisable value, which corresponds to nominal value less provisions for bad debts. Contract work in progress is measured at selling price of the work performed calculated on the basis of the stage of completion. The stage of completion is measured by the proportion that the contract expenses incurred to date bear to the estimated total contract expenses. Where it is probable that total contract expenses will exceed total revenues from a contract, the expected loss is recognised as an expense in the income statement. Where the selling price cannot be measured reliably, the selling price is measured at the lower of expenses incurred and net realisable value. Payments received on account are set off against the selling price. The individual contracts are classified as receivables when the net selling price is positive and as liabilities when the net selling price is negative. Expenses relating to sales work and the winning of contracts are recognised in the income statement as incurred. Prepayments comprise prepaid expenses concerning rent, insurance premiums and subscriptions. Provisions are recognised when - in consequence of an event occurred before or on the balance sheet date - the Company has a legal or constructive obligation and it is probable that economic benefits must be given up to settle the obligation. Other provisions include warranty obligations in respect of repair work within the warranty period of 1-5 years. Provisions are measured and recognised based on experience with guarantee work. Deferred income tax is measured using the balance sheet liability method in respect of temporary differences arising between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes on the basis of the intended use of the asset and settlement of the liability, respectively. Deferred tax assets are measured at the value at which the asset is expected to be realised, either by elimination in tax on future earnings or by set-off against deferred tax liabilities within the same legal tax entity. Current tax liabilities and receivables are recognised in the balance sheet as the expected taxable income for the year adjusted for tax on taxable incomes for prior years and tax paid on account. Extra payments and repayment under the on-account taxation scheme are recognised in the income statement in financial income and expenses. Debts are measured at amortised cost, substantially corresponding to nominal value. Return on assets Profit before financials x 100 / Total assets at year end Solvency ratio Equity at year end x 100 / Total assets at year end Return on equity Net profit for the year x 100 / Average equity