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2025-01-01 2025-12-31 2024-01-01 2024-12-31 BDO Statsautoriseret Revisionspartnerselskab Havneholmen 2, 6. sal 2450 Copenhagen SV Nordea Vesterbrogade 8 1620 Copenhagen V Today the Board of Directors and Executive Board have discussed and approved the Annual Report of AlfaPeople ApS for the fi­nan­ci­al year 1 January  - 31 December 2025. The Annual Report is presented in accor­dance with the Da­nish Fi­nan­ci­al State­ments Act. In our opinion the Con­so­li­da­ted Fi­nan­ci­al Sta­te­ments and the Pa­rent Com­pa­ny Fi­nan­ci­al Sta­te­ments give a true and fair view of Group's and the Company's assets, liabilities and financial position at 31 December 2025 and of the results of Group's and the Company's operations as well as the consolidated cash flows of the Group for the fi­nan­ci­al year 1 January  - 31 December 2025. The Management Commentary includes in our opinion a fair presentation of the matters dealt with in the Commentary. We recommend the Annual Report be approved at the Annual General Meeting. Copenhagen 2026-08-02 Michael Gaardboe Felipe Alejandro Palma Roeschmann Michael Gaardboe Pernille Mærsk Gaardboe Anne Sophie Mærsk Gaardboe Maja Helene Mærsk Gaardboe Felipe Ignacio De Vidts Sabelle Michael John Stronach Hernández José Renato Ribeiro Miraglia To the Shareholders of AlfaPeople ApS Konklusion We ha­ve au­di­ted the Con­so­li­da­ted Fi­nan­ci­al Sta­te­ments and the Pa­rent Com­pa­ny Fi­nan­ci­al Sta­te­ments of AlfaPeople ApS for the fi­nan­ci­al year 1 January - 31 December 2025, which comprise income statement, Balance Sheet, sta­te­ment of chan­ges in e­qui­ty, no­tes and a summary of significant accounting policies for both the Group and the Parent Company, as well as consolidated statement of cash flows for the Group. The Con­so­li­da­ted Fi­nan­ci­al Sta­te­ments and the Pa­rent Com­pa­ny Fi­nan­ci­al Sta­te­ments are pre­pared in accordance with the Da­nish Fi­nan­ci­al State­ments Act.   In our o­pi­ni­on, the Con­so­li­da­ted Fi­nan­ci­al Sta­te­ments and the Pa­rent Com­pa­ny Fi­nan­ci­al Sta­te­ments give a true and fair view of the assets, liabilities and financial position of the Gro­up or the Com­pa­ny at 31 December 2025 and of the results of the Group and the Pa­rent Com­pa­ny's operations as well as the consolidated cash flows of the Group for the fi­nan­ci­al year 1 January - 31 December 2025 in accordance with the Da­nish Fi­nan­ci­al State­ments Act.   Basis for OpinionGrundlag for konklusion We conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the “Auditor’s Responsibilities for the Audit of the Con­so­li­da­ted Fi­nan­ci­al Sta­te­ments and the Pa­rent Com­pa­ny Fi­nan­ci­al Sta­te­ments” section of our report. We are independent of the Gro­up in accordance with the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (including International Independence Standards) (IESBA Code), together with the ethical requirements that are relevant to our audit of the Financial Statements in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We be­lie­ve that the e­vi­den­ce we ha­ve ob­tai­ned is suf­fi­ci­ent and ap­prop­ria­te to pro­vi­de a ba­sis for our con­clu­si­on.   Grundlag for konklusion Ma­na­ge­ment's Re­spon­si­bi­li­ti­es for the Con­so­li­da­ted Fi­nan­ci­al Sta­te­ments and the Pa­rent Com­pa­ny Fi­nan­ci­al Sta­te­ments Management is responsible for the preparation of Con­so­li­da­ted Fi­nan­ci­al Sta­te­ments and the Pa­rent Com­pa­ny Fi­nan­ci­al Sta­te­ments that give a true and fair view in accordance with the Da­nish Fi­nan­ci­al State­ments Act and for such Internal control as Ma­na­ge­ment determines is necessary to enable the preparation of Con­so­li­da­ted Fi­nan­ci­al Sta­te­ments and the Pa­rent Com­pa­ny Fi­nan­ci­al Sta­te­ments that are free from material misstatement, whether due to fraud or error.   In preparing the Con­so­li­da­ted Fi­nan­ci­al Sta­te­ments and the Pa­rent Com­pa­ny Fi­nan­ci­al Sta­te­ments, Ma­na­ge­ment is responsible for assessing the Gro­up's and the Pa­rent Com­pa­ny's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting in preparing the Con­so­li­da­ted Fi­nan­ci­al Sta­te­ments and the Pa­rent Com­pa­ny Fi­nan­ci­al Sta­te­ments unless Management either intends to liquidate the Gro­up or the Com­pa­ny or to cease operations, or has no realistic alternative but to do so.   Our objectives are to obtain reasonable assurance about whether the Con­so­li­da­ted Fi­nan­ci­al Sta­te­ments and the Pa­rent Com­pa­ny Fi­nan­ci­al Sta­te­ments as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Con­so­li­da­ted Fi­nan­ci­al Sta­te­ments and the Pa­rent Com­pa­ny Fi­nan­ci­al Sta­te­ments.   As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:   Identify and assess the risks of material misstatement of the Con­so­li­da­ted Fi­nan­ci­al Sta­te­ments and the Pa­rent Com­pa­ny Fi­nan­ci­al Sta­te­ments, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.   Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Gro­up's and the Pa­rent Com­pa­ny's internal control.   Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Ma­na­ge­ment.   Conclude on the appropriateness of Ma­na­ge­ment’s use of the going concern basis of accounting in preparing the Con­so­li­da­ted Fi­nan­ci­al Sta­te­ments and the Pa­rent Com­pa­ny Fi­nan­ci­al Sta­te­ments and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Gro­up's and the Pa­rent Com­pa­ny's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the Con­so­li­da­ted Fi­nan­ci­al Sta­te­ments and the Pa­rent Com­pa­ny Fi­nan­ci­al Sta­te­ments or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Gro­up and the Pa­rent Com­pa­ny to cease to continue as a going concern.   Evaluate the overall presentation, structure and contents of the Con­so­li­da­ted Fi­nan­ci­al Sta­te­ments and the Pa­rent Com­pa­ny Fi­nan­ci­al Sta­te­ments, including the disclosures, and whether the Con­so­li­da­ted Fi­nan­ci­al Sta­te­ments and the Pa­rent Com­pa­ny Fi­nan­ci­al Sta­te­ments represent the underlying transactions and events in a manner that gives a true and fair view.   Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the group as a basis for forming an opinion on the  Group Fi­nan­ci­al Sta­te­ments and the Pa­rent Com­pa­ny Fi­nan­ci­al Sta­te­ments. We are responsible for the direction, supervision and review of the audit work performed for purposes of the group audit. We remain solely responsible for our audit opinion.   We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.   Statement on Management Commentary Management is responsible for Ma­na­ge­ment Com­men­ta­ry.   Our opinion on the Con­so­li­da­ted Fi­nan­ci­al Sta­te­ments and the Pa­rent Com­pa­ny Fi­nan­ci­al Sta­te­ments does not cover Ma­na­ge­ment Com­men­ta­ry, and we do not express any form of assurance conclusion thereon.   In connection with our audit of the Con­so­li­da­ted Fi­nan­ci­al Sta­te­ments and the Pa­rent Com­pa­ny Fi­nan­ci­al Sta­te­ments, our responsibility is to read Ma­na­ge­ment Com­men­ta­ry and, in doing so, consider whether Ma­na­ge­ment Com­men­ta­ry is materially inconsistent with the Con­so­li­da­ted Fi­nan­ci­al Sta­te­ments and the Pa­rent Com­pa­ny Fi­nan­ci­al Sta­te­ments or our knowledge obtained during the audit, or otherwise appears to be materially misstated.   Moreover, it is our responsibility to consider whether Ma­na­ge­ment Com­men­ta­ry provides the information required under the Danish Financial Statements Act.   Based on the work we have performed, we conclude that Ma­na­ge­ment Com­men­ta­ry is in accordance with the Con­so­li­da­ted Fi­nan­ci­al Sta­te­ments and the Pa­rent Com­pa­ny Fi­nan­ci­al Sta­te­ments and has been prepared in accordance with the requirements of the Danish Financial Statements Act. We did not identify any material misstatement of Ma­na­ge­ment Com­men­ta­ry.   Copenhagen 2026-08-02 BDO Statsautoriseret Revisionspartnerselskab 45719375 BDO Statsautoriseret Revisionspartnerselskab 45719375 Morten Christensen Ming Tang Den uafhængige revisors erklæring State Authorised Public Accountant State Authorised Public Accountant mne35626 mne49833 319540000 271356000 212888000 33349000 41340000 34671000 23799000 20276000 Operating profit/loss before depreciation and amortisation (EBITDA) Operating profit/loss before depreciation and amortisation (EBITDA) Operating profit/loss before depreciation and amortisation (EBITDA) Operating profit/loss before depreciation and amortisation (EBITDA) Operating profit/loss before depreciation and amortisation (EBITDA) 29813000 19774000 15234000 -6457000 -2756000 -1216000 10984000 9705000 10968000 154470000 116862000 109843000 56667000 36074000 31762000 -910000 -2407000 -4520000 -1964000 -1885000 6.1 9.1 9.3 7.3 7.2 12.6 43.7 23.7 28.6 48.9 * The 2023 figure is impacted by approx. DKK 3.7m arising from the contribution of former affiliated entities that have become fully owned subsidiaries in 2023.    The ratios stated in the list of key figures and ratios have been calculated as follows:   Operating margin: Operating profit/loss x 100           Net revenue Return on equity: Profit/loss after tax x 100        Average equity Principal activities AlfaPeople is an international consulting and software group focused on digital transformation. The Group's principal activities comprise consulting services, software development, and the sale, implementation and support of Microsoft ERP, CRM, Azure, Power Platform and AI-related software and services. The Group also develops and commercialises proprietary intellectual property and industry-specific software solutions. The Group operates across Europe, North America and Latin America and sezrves a predominantly enterprise and international customer base. Domain expertise, delivery capability and long-term customer relationships are key competitive strengths. As a knowledge-based business, AlfaPeople's long-term success depends on the skills, integrity and engagement of its employees, the responsible use of technology and data, and trusted relationships with customers, business partners and other stakeholders Development in activities and financial and economic position Financial development Group revenue for 2025 amounted to DKK 418.6 million, representing growth of 5% compared with 2024. Management considers the revenue development satisfactory, particularly in light of uncertainty arising from changing market conditions. The development reflects continued demand for the Group's Microsoft-based solutions and services, although customer investment decisions and project timing continue to affect short-term visibility. Group EBITDA amounted to DKK 33.3 million compared with DKK 41.4 million in 2024. The decrease was primarily attributable to planned investments in new offerings, including AI-enabled solutions, higher employee-related costs and increased direct costs related to delivery capacity and development activities. The development also reflected regional performance differences and organisational adjustments, particularly in Europe and North America. Management considers these investments necessary to support the Group’s future service portfolio and long-term competitiveness, while maintaining focus on profitability, cost discipline and execution. The Group's balance sheet remained broadly stable compared with 2024. Equity amounted to DKK 59.2 million, corresponding to an equity ratio of approximately 35%. Management considers the Group's capital base satisfactory. Working capital and liquidity are monitored closely, with particular focus on trade receivables, project billing, collection discipline and short-term obligations.   Market and regional development The Group operated in a market increasingly influenced by AI-enabled solutions. This development creates short-term uncertainty but also long-term opportunities for customers seeking efficiency gains, automation and business process redesign. Management remains cautiously optimistic about the Group's long-term positioning while maintaining a prudent approach to investment and execution. Latin America continued to be a core contributor and delivered revenue growth in 2025. EBITDA decreased compared with 2024, partly reflecting continued investment in new offerings and market development. The region remains an important platform for future growth, supported by a strong position within Microsoft Dynamics and continued customer demand. In North America, revenue remained broadly in line with 2024, while EBITDA decreased. Management initiated measures to improve performance and restore profitability, including greater focus on commercial execution, cost discipline and the use of Group capabilities. In Europe, revenue increased compared with 2024, while EBITDA remained below Management's expectations. The development was affected by organisational adjustments and profitability challenges in parts of the region. Management remains focused on improving profitability through stronger operational discipline and selective growth initiatives.   Profit/loss for the year compared to the expected development Group EBITDA amounted to DKK 33.3 million in line with EBITDA expected range shown in previous Financial Statements. The amount was primarily attributable to planned investments in new offerings (such as AI), and regional performance..   Significant events after the end of the financial year No events materially affecting the Group's or the Parent Company's financial position have occurred after the end of the financial year.   Financial risk Principal risks and uncertainties The Group is exposed to normal commercial and operational risks related to customer investment cycles, the timing of larger projects, delivery execution, employee retention, credit risk on customer receivables and currency fluctuations. The market transition towards AI-enabled solutions creates both opportunities and uncertainty, including customer adoption rates, pricing models and required investment levels. Management monitors regional performance and risk exposure through the Group's reporting and consolidation processes, with local management responsible for statutory and operational reporting in each region. Foreign exchange risk Due to its international presence, the Group is exposed to foreign exchange risks arising from operations in Europe, North America and Latin America. Revenue, costs, assets and liabilities are generated and held in local currencies including BRL, CLP, COP, MXN, USD, EUR and CHF. Exchange-rate fluctuations may therefore affect reported earnings and the value of net assets when foreign subsidiaries are translated into Danish kroner. The Group seeks to mitigate transactional foreign exchange risk by maintaining a natural hedge between local revenue streams and operating expenses in the same currencies. Developments in key currencies are monitored as part of the Group's financial management processes. The Group does not currently use significant financial hedging instruments. Credit risk Credit risk is primarily related to trade receivables arising from consulting services, software licences and implementation projects for enterprise and international customers. The Group evaluates the creditworthiness of significant customers and manages exposure through commercial procedures, contractual arrangements and ongoing monitoring of outstanding balances and payment behaviour. Management considers the overall credit risk profile diversified across a broad customer portfolio and geographic markets.   Liquidity and cash-flow risk Liquidity risk is managed through continuous monitoring of operating cash flows, working capital development and available financing facilities. The Group aims to maintain sufficient liquidity resources and financial flexibility to support operations, strategic investments and future growth. Particular attention is given to project-related working capital, contract assets and trade receivables. Management regularly reviews the Group's liquidity position, financing arrangements and forecast cash flows and considers the current funding structure adequate to support planned activities.   Research and development activities The Group develops and commercialises proprietary intellectual property and industry-specific software solutions. During 2025, development activities included continued investment in new offerings, digital competencies and AI-enabled solutions. These activities support the Group's future service portfolio and its ability to help customers automate and redesign business processes. The Group has material intangible assets related to development projects and goodwill. Management has assessed the carrying amounts based on expected future earnings and the continued strategic relevance of the underlying assets.   Future expectations For the financial year 2026, Management expects Revenues in the range of DKK 440-460 million, EBITDA in the range of DKK 25-35 million and a profit for 2026 around DKK 10 - 15 million. The outlook reflects a cautious but positive view of the Group's development and assumes continued focus on profitability, cost discipline and careful prioritisation of investments. It is based on continued demand for the Group's services, stable contribution from Latin America, gradual improvement in profitability in Europe and North America, and continued development of AI-related offerings. The outlook is subject to uncertainty relating to customer investment decisions, project timing, currency movements, employee availability and the pace of adoption of AI-enabled solutions.   Treasury shares 20252024 DKK '000DKK '000The amount of own shares comprise of: AlfaPeople Europe, 68 units in the denomination of 1.000 DKK '0006868AlfaPeople Nordic, 237.975 units in the denomination of 1 DKK '000238238AlfaPeople Switzerland, 80 units in the denomination of 100 CHF88 314314 Own shares in % of share capital: AlfaPeople Europe ApS13,513,5AlfaPeople Nordic A/S26,626,6AlfaPeople Switzerland AG8,08,0 48,148,1 314000 314000 48.1 48.1 Corporate social responsibility (CSR) report This report has been prepared for the Group under section 99 a (old) of the Danish Financial Statements Act. It addresses environmental and climate matters, social and staff matters, human rights, and anti-corruption and bribery. Business model, material non-financial risks and governance AlfaPeople's business model is based on providing digital-transformation consulting, implementation, software and support services across Europe, North America and Latin America. The Group's most significant non-financial risks are information security and responsible data handling, attraction and retention of skilled employees, respect for human rights and responsible labour practices in the value chain, responsible use of artificial intelligence, and prevention of corruption and unethical business conduct. These risks are monitored through management oversight, internal procedures, employee awareness initiatives, contractual requirements and ongoing dialogue with customers and business partners. Environmental and climate matters The Group has not adopted a standalone environmental and climate policy. As a professional services and software business, its direct environmental impact is primarily associated with energy consumption in offices, employee travel and the use of information-technology infrastructure and equipment. Management currently addresses these impacts through efficient and digital ways of working, virtual collaboration and reduced business travel where commercially and operationally feasible. During 2025, the Group continued to use virtual delivery models and cross-border digital collaboration in client engagements and internal operations. Management will continue to assess whether a standalone environmental and climate policy should be adopted as the Group grows and sustainability-reporting expectations develop. Social and staff matters The Group has not adopted a standalone policy for social and staff matters. Its people-related practices focus on providing an attractive, inclusive and flexible working environment that supports employee wellbeing, professional growth and long-term engagement. The approach is implemented through professional development, certification programmes, onboarding, mentoring, leadership development and participation in international communities of practice. During 2025, the Group continued to invest in skills within Microsoft technologies, cloud services, data solutions and artificial intelligence, while strengthening platforms and initiatives for knowledge management and collaboration. Management will continue to assess whether a standalone policy should be adopted as the Group grows and organisational complexity increases. Human rights The Group has not adopted a standalone human rights policy because, given the nature of its consulting and technology activities, Management considers the risk of material human-rights violations within its own operations to be limited. The Group respects internationally recognised human rights and expects corresponding standards of conduct from employees, suppliers and business partners. The Group promotes responsible business conduct through relationships with customers, suppliers and other business partners and performs ongoing assessments of significant commercial relationships where considered relevant. No material incidents relating to human-rights violations were identified during 2025. The Group remains committed to fair working conditions, equal opportunities and respect for fundamental human rights throughout its operations and business relationships. Management will continue to assess whether a standalone policy should be adopted as international activities develop.   Anti-corruption and bribery The Group has not adopted a standalone anti-corruption and bribery policy. It applies a zero-tolerance approach supported by management oversight, internal procedures and expectations regarding employee and business-partner conduct. Given the Group's international presence and activities across multiple jurisdictions, Management continuously monitors compliance-related risks and seeks to maintain a culture of integrity and accountability. Management will continue to assess whether a standalone anti-corruption and bribery policy should be adopted as the Group grows and its international activities develop. Non-financial performance indicators and future focus The Group monitors non-financial indicators relating to employee development, certifications, talent retention, organisational capability and information security. These indicators are used internally to support management decisions and identify areas for continuous improvement. Looking ahead, AlfaPeople intends to strengthen responsible business conduct, employee development, data ethics and the responsible use of artificial intelligence. The Group will continue integrating ESG considerations into operations and strategic decisions to support long-term value creation for customers, employees, shareholders and society.   Report of data ethics The Group has not adopted a standalone data ethics policy. Data and technology are fundamental to AlfaPeople's business model, and the Group is committed to managing data responsibly and securely in accordance with applicable laws, contractual requirements and stakeholder expectations. The Group's approach includes protection of personal data, information security, confidentiality, transparency in data processing, and responsible development and use of artificial intelligence and digital technologies. During 2025, the Group continued investing in digital competencies and AI-enabled solutions and regards responsible AI adoption as important to future value creation. Management considers high standards of data ethics and information security essential to maintaining customer trust and long-term business relationships. Management currently considers a separate policy unnecessary because data processing is not a separate revenue-generating activity and automated decision-making, profiling and resale of personal data are not considered material parts of the business model. Management will continue to reassess this position as the Group's digital platforms and data use evolve.   418563000 397450000 7707000 8423000 11604000 457000 0 50000 101457000 80446000 0 2576000 37245000 35343000 1210000 2413000 291465000 282118000 6497000 3484000 257822000 240533000 3038000 2954000 7624000 5412000 430000 884000 291000 143000 3273000 157000 25728000 36030000 -244000 -511000 0 0 16284000 24793000 269000 5514000 336000 278000 9737000 4708000 1771000 2500000 16260000 36836000 14605000 22060000 8705000 11130000 0 6000 7555000 25706000 14605000 22054000 15730000 15281000 1545000 1965000 11600000 13161000 0 0 567000 0 567000 0 27897000 28442000 2112000 1965000 4173000 5102000 29000 20000 4173000 5102000 29000 20000 0 0 100279000 89395000 1333000 1369000 0 0 1333000 1369000 100279000 89395000 33403000 34913000 102420000 91380000 64630000 55834000 0 417000 17455000 27996000 0 0 3388000 8096000 13577000 24669000 2782000 1721000 0 0 11612000 4485000 7762000 1896000 4871000 3830000 1227000 331000 9883000 7331000 0 0 114621000 109293000 22566000 27313000 17595000 26102000 1272000 1574000 132216000 135395000 23838000 28887000 165619000 170308000 126258000 120267000 409000 409000 409000 409000 0 0 66231000 49947000 0 0 1545000 1965000 58731000 50522000 17997000 19774000 0 10000000 0 10000000 59140000 60931000 86182000 82095000 1972000 4592000 52000 52000 1972000 4592000 52000 52000 2175000 3164000 0 0 5000000 12457000 5000000 11667000 1433000 1386000 0 0 8608000 28557000 5000000 11667000 8589000 9508000 6811000 6927000 6669000 3149000 0 0 24543000 19975000 736000 233000 0 0 21797000 17204000 8184000 7701000 0 0 1157000 1310000 1157000 1310000 95899000 76228000 35024000 26453000 104507000 104785000 40024000 38120000 165619000 170308000 126258000 120267000 Group DKK '000Sha­re ca­pi­talRetained earningsProposed dividendTotal Equity at 1 January 202540953.08810.00063.497Change of equity due to correction of errors-2.566-2.566Adjusted equity at 1 January 202540950.52210.00060.931 Proposed profit allocation according to note 8 7.5557.555 Transactions with ownersDividend paid -10.000-10.000 Other legal bindingsForeign exchange adjustments 654 654 Equity at 31 December 202540958.731059.140 Parent Company DKK '000Sha­re ca­pi­talRevaluation reserve, equity methodReserve for development costsRetained earningsProposed dividendTotal Equity at 1 January 202540952.5131.96519.77410.00084.661Change of equity due to correction of errors-2.566-2.566Adjusted equity at 1 January 202540949.9471.96519.77410.00082.095 Proposed profit allocation, according note 8 16.284 -1.67914.605 Transactions with ownersDividend paid -10.000-10.000 Other legal bindingsCapitalized development costs -420420 0Foreign exchange adjustments -518 -518 Equity at 31 December 202540966.2311.54517.997086.182 409000 53088000 10000000 -2566000 7555000 -10000000 654000 409000 58731000 0 409000 52513000 1965000 19774000 10000000 -2566000 16284000 -1679000 -10000000 -420000 420000 -518000 409000 66231000 1545000 17997000 0 25706000 6992000 5172000 -2652000 -403000 0 0 -3681000 11130000 520000 0 0 -10277000 -4267000 77000 20106000 -5161000 24573000 26244000 -5154000 -18882000 152000 0 -910000 -2425000 2667000 402000 0 -237000 1033000 0 -2212000 -21142000 -11550000 11550000 -942000 0 -10000000 -10000000 -29949000 9683000 -7588000 14785000 16594000 7262000 0 -5453000 9006000 16594000 1 | Net revenue Segment details (geography) Revenue, EU97.93187.710 7.7078.423 Revenue, NA30.05429.027 00 Revenue, LATAM290.578280.713 00 418.563397.450 7.7078.423 Segment details (activities) Service287.409284.229 05.460 License125.049108.363 00 Other6.1054.858 7.7072.963 418.563397.450 7.7078.423 2 | Fee to statutory auditor Total fee BDO 1.7541.681 308300 1.7541.681 308300 Specification of fee Statutory audit 1.7001.360 173165 Other services 54321 135135 1.7541.681 308300 1700000 1360000 173000 165000 54000 321000 135000 135000 3 | Staff costs Ave­ra­ge num­ber of full ti­me em­ploy­ees642575 23 Wages and salaries 208.085201.108 2.6602.697 Pensions 8.4997.708 306209 Social security costs 25.69023.368 2833 Other staff costs 15.5488.349 4415 257.822240.533 3.0382.954 Remuneration of Management and Board of Directors 4.4734.131 1.8002.906 4.4734.131 1.8002.906 The parent company passes on a part of the wages and salaries incurred during the year to its subsidiaries. 642 575 2 3 208085000 201108000 2660000 2697000 8499000 7708000 306000 209000 25690000 23368000 28000 33000 15548000 8349000 44000 15000 257822000 240533000 3038000 2954000 Remuneration of Management and Board of Directors 4.4734.131 1.8002.906 4.4734.131 1.8002.906 4473000 4131000 1800000 2906000 4 | Income from investments in subsidiaries Income from investments in subsidiaries 00 16.28427.359 00 16.28427.359 5 | Other financial income Interest income from group enterprises 246125 246125 Other interest income 235.389 90153 2695.514 336278 246000 125000 246000 125000 23000 5389000 90000 153000 269000 5514000 336000 278000 6 | Other financial expenses Interest expenses to group enterprises 1.2350 3921.038 Other interest expenses 8.5024.610 1.3791.462 9.7374.610 1.7712.500 1235000 0 392000 1038000 8502000 4610000 1379000 1462000 9737000 4610000 1771000 2500000 8705000 11314000 0 0 0 2382000 0 6000 8 | Proposed distribution of profit Proposed dividend for the year 010.000 010.000 Allocation to reserve for net revaluation under the equity method 00 16.28424.793 Retained earnings 7.55515.706 -1.679-12.739 7.55525.706 14.60522.054 0 10000000 0 10000000 0 0 16284000 24793000 7555000 15706000 -1679000 -12739000 7555000 25706000 14605000 22054000 9 | Intangible assets Group DKK '000Development projects completed, including patents and similar rights originating from development projectsGoodwillDevelopment projects in progress and prepayments for intangible assets Cost at 1 January 2025 24.96727.1490 Exchange adjustment at closing rate -50400 Additions 4.5880567 Cost at 31 December 2025 29.05127.149567 Amortisation at 1 January 2025 9.68614.1400 Exchange adjustment at closing rate -1861190 Amortisation for the year 3.8211.2900 Amortisation at 31 December 2025 13.32115.5490 Carrying amount at 31 December 202515.73011.600567 Development projects comprise in all material aspects Own IP products (localization packages and vertical solutions), which are developed and sold by the Group as part of the normal business cycle in several countries. Parent Company DKK '000Development projects completed, including patents and similar rights originating from development projectsDevelopment projects in progress and prepayments for intangible assets Cost at 1 January 2025 2.3540 Additions 0567 Cost at 31 December 2025 2.354567 Amortisation at 1 January 2025 3880 Amortisation for the year 4210 Amortisation at 31 December 2025 8090 Carrying amount at 31 December 20251.545567 24967000 27149000 0 -504000 0 0 4588000 0 567000 29051000 27149000 567000 9686000 14140000 0 -186000 119000 0 3821000 1290000 0 13321000 15549000 0 15730000 11600000 567000 2354000 0 0 567000 2354000 567000 388000 0 421000 0 809000 0 1545000 567000 10 | Property, plant and equipment Group DKK '000Other plant, fixtures and equipment Cost at 1 January 2025 15.521Exchange adjustment at closing rate -268Additions 910Disposals -2.667Cost at 31 December 2025 13.496  Depreciation and impairment losses at 1 January 2025 10.429Exchange adjustment -325Reversal of depreciation of assets disposed of the year -2.653Depreciation for the year 1.872Depreciation and impairment losses at 31 December 2025 9.323 Carrying amount at 31 December 20254.173Parent Company DKK '000Other plant, fixtures and equipment Cost at 1 January 2025 32Additions 18Disposals -15Cost at 31 December 2025 35  Depreciation and impairment losses at 1 January 2025 13Reversal of depreciation of assets disposed of -15Depreciation for the year 8Depreciation and impairment losses at 31 December 2025 6 Carrying amount at 31 December 202529 15521000 -268000 910000 2667000 13496000 10429000 -325000 2653000 1872000 9323000 4173000 32000 18000 15000 35000 13000 15000 8000 6000 29000 11 | Financial non-current assets Group DKK '000Investments in subsidiariesRent deposit and other receivables Cost at 1 January 2025 01.369 Exchange adjustment at closing rate 0-36 Cost at 31 December 2025 01.333   Carrying amount at 31 December 202501.333 Parent Company DKK '000Investments in subsidiaries Cost at 1 January 2025 50.848Cost at 31 December 2025 50.848 Revaluation at 1 January 2025 41.604Exchange adjustment 860Dividend -5.204Profit/loss for the year 16.518Revaluation and impairment losses for the year -2.566 -797Revaluation at 31 December 2025 50.415 Impairment losses and amortisation of goodwill at 1 January 2025 493Amortisation of goodwill 491Impairment losses and amortisation of goodwill at 31 December 2025 984 Carrying amount at 31 December 2025100.279 Investments in subsidiaries (DKK '000) Name and domicileEquityProfit/loss for the yearOwnership AlfaPeople Europe ApS, Denmark 18.724265100 % AlfaPeople Andino S.A., Colombia 20.886-2.603100 % AlfaPeople Centroamerica S.A., Costa Rica -13.563-9.797100 % AlfaPeople Mexico S.As DE. C.V., Mexico -239-183100 % AlfaPeople Inc. , USA -2.700-33100 % AlfaPeople Chile Spa, Chile 28.3294.651100 % AlfaPeople Brasil Consultoria De Info., Brazil 13.5741.329100 % Alfapeople Canada, Canada 4.654-108100 % Alfapeople Paraguay, Paraguay  1.4595.890100 % Subsidiarys in AlfaPeople Europe, Denmark: AlfaPeople GmbH, Germany -12.304-1.107100 % AlfaPeople AG, Switzerland 4.658-323100 % AlfaPeople Nordic, Denmark 12.4944.964100 %   Subsidiaries in AlfaPeople Centroamerica S.A. Costa Rica  AlfaPeople Ecuador S.A. , Ecuador 2.715584100 % AlfaPeople Guatemala S.A., Guatemala 1.9494.023100 % 0 1369000 0 -36000 0 1333000 0 1333000 50848000 50848000 41604000 860000 -5204000 16518000 -2566000 -797000 50415000 493000 491000 984000 100279000 12 | Deferred tax assets Provision for deferred tax comprises deferred tax on contract work in progress, intangible and tangible fixed assets. Group Parent Company 20252024 20252024 DKK '000DKK '000 DKK '000DKK '000 Deferred tax assets, beginning of year 1.7212.123 00 Deferred tax of the year, income statement 2.195-402 00 Deferred tax assets 31 December3.9161.721 00 The deferred tax assets are based on the expectation of a positive fiscal profit in the next 2-4 years, whereby the deferred tax assets are expected to be fully utilized. The deferred tax assets are based on the expectation of a positive fiscal profit in the next 2-4 years, whereby the deferred tax assets are expected to be fully utilized. 13 | Prepayments Prepayments contains prepaid cost, mainly insurance and rent, which is related to the following fiscal year. Costs 9.8837.331 00 9.8837.331 00 14 | Receivables falling due after more than one year Deferred tax 2.0891.291 00 Receivables from group enterprises 3.3883.388 00 5.4774.679 00 15 | Provision for deferred tax Provision for deferred tax comprises deferred tax on contract work in progress, intangible and tangible fixed assets. Deferred tax, beginning of year 2.02646 5246 Deferred tax of the year, income statement -541.980 06 Total1.9722.026 5252 16 | Long-term liabilities Group 31/12 2025RepaymentDebt outstanding31/12 2024DKK '000total liabilitiesnext yearafter 5 yearstotal liabilities Covid-19 Loan 3.1841.00904.163Bank debt 12.5807.580020.966Other non-current liabilities 00011.550Frozen holiday pay 1.43301.4331.386 17.1978.5891.43338.065 Parent Company 31/12 2025RepaymentDebt outstanding31/12 2024DKK '000total liabilitiesnext yearafter 5 yearstotal liabilities Bank debt 11.8116.811018.594 11.8116.811018.594 1433 0 17 | Deferred income Accruals recognised as liabilities include payments received regarding income for the following fiscal year. Joint liabilitiesThe Company is jointly and severally liable together with the Parent Company and the other group companies in the joint taxable group for tax on the group’s joint taxable income and for certain possible withholding taxes, such as dividend tax, etc. Tax payable on the Group’s joint taxable income is stated in the annual report of Gaardboe ApS, which serves as management Company for the joint taxation. Group Parent Company 2025 2025 DKK '000 DKK '000 Lease commitment The total lease commitment as of the balance sheet date amount to: 1.996 0 The total lease commitment expires between 4-36 months. Other financial commitments The total other financial commitments as of the balance sheet date amount to: 1.939 0 19 | Charges and securities The Group has provided floating charge amounting to DKK ('000) 10.000 for outstanding credit amount. At the balance date AlfaPeople ApS have a debt of DKK ('000) 11.667. The charging amount of the assets provided as security is total DKK ('000) 23.838. 20 | Related parties The Company did not carry out any material transactions that were not concluded on market conditions. According to section 98c, subsection 6 of the Danish Financial Statements Act information is given only on transactions that were not performed on common market conditions. 21 | Consolidated Financial Statements The company is included in the consolidated financial statement of Gaardboe ApS the parent company,  Høje Sandbjergvej 16, Gl Holte, 2840 Holte, CVR-no 30 08 28 85.   The Annual Report of AlfaPeople ApS for 2025 has been presented in accor­dance with the pro­vi­sions of the Da­nish lar­ge-si­ze Fi­nan­ci­al State­ments Act for en­ter­pri­ses in re­por­ting class C.  Regnskabsklasse C, stor virksomhed1trueThe Annual Report is prepared consistently with the accounting principles applied last year.   Regnskabsklasse C, stor virksomhed true Change resulting from l misstatement prior year During 2025, management identified a prior period misstatement relating to deferred tax balances recognized in previous years. The deferred tax asset had lapsed in an earlier reporting period and should therefore not have been recognized. The total adjustment amounts to DKK 2,566 thousand. In accordance with the applicable accounting standards, the misstatement has been corrected retrospectively and recognized as an adjustment to opening equity. Group The correction resulted in a reduction of opening retained earnings of DKK 2,566 thousand as of 1 January 2025, with a corresponding reduction of deferred tax assets. Comparative figures for 2024 have been restated accordingly. The restatement reduced deferred tax assets by DKK 2,566 thousand and increased income tax expense for 2024 by DKK 2,566 thousand. The correction has no impact on profit or loss for 2025. Parent Company For the parent company, the correction has been recognized as an adjustment to the opening reserve for net revaluation under the equity method, with a corresponding adjustment to investments in group undertakings as of 1 January 2025. Comparative figures for 2024 have been restated accordingly. The restatement reduced income from investments in group undertakings by DKK 2,566 thousand and reduced the reserve for net revaluation under the equity method by DKK 2,566 thousand. The correction has no impact on profit or loss for 2025.   During 2025, management identified a prior period misstatement relating to deferred tax balances recognized in previous years. The deferred tax asset had lapsed in an earlier reporting period and should therefore not have been recognized. The total adjustment amounts to DKK 2,566 thousand. In accordance with the applicable accounting standards, the misstatement has been corrected retrospectively and recognized as an adjustment to opening equity. Group The correction resulted in a reduction of opening retained earnings of DKK 2,566 thousand as of 1 January 2025, with a corresponding reduction of deferred tax assets. Comparative figures for 2024 have been restated accordingly. The restatement reduced deferred tax assets by DKK 2,566 thousand and increased income tax expense for 2024 by DKK 2,566 thousand. The correction has no impact on profit or loss for 2025. Parent Company For the parent company, the correction has been recognized as an adjustment to the opening reserve for net revaluation under the equity method, with a corresponding adjustment to investments in group undertakings as of 1 January 2025. Comparative figures for 2024 have been restated accordingly. The restatement reduced income from investments in group undertakings by DKK 2,566 thousand and reduced the reserve for net revaluation under the equity method by DKK 2,566 thousand. The correction has no impact on profit or loss for 2025.   The consolidated financial statements include the parent company AlfaPeople ApS and its subsidiaries in which AlfaPeople ApS direct­ly or indirect­ly holds more than 50% of the voting rights or in any other way has a control­ling influ­ence. Enter­prises in which the group holds be­tween 20% and 50% of the voting rights and exer­cises signi­ficant, but not con­trol­ling influ­ence, are con­sidered asso­ciates, see the group structure.   The consolidated financial statements conso­lidate the financial statements of the parent company and the subsidiaries by com­bining uniform accounts items. Intercompany income and expenses, shareholdings, internal balances and dividend, and realised and unrea­lised gains and losses arising from transactions between the consolidated enterprises are fully eliminated in the consolidation.   New acquired or established enterprises are recognized in the consolidated financial statements from the time of acquisition. Sold or wound up enterprises are recognised in the consolidated income statement up to the time of disposal. Comparative figures are not adjusted for new acquired, sold or wound up enterprises.   Acquired enterprises are recognised in the consolidated financial statements under the acquisition method, reassessing all identified assets and liabilities to fair value at the acquisitons date. The fair value is calculated based on acquisitions made in an active market, alternatively calculated using generally accepted valuation methods. Upon calculation of the fair value of properties used in the business a discounted cash flow model is applied based on discounted cash flow of future earnings. Operating equipment is recognesed at fair value based on an assesor's opinion, built on an overall assessment of the production equipment.   Investments in subsidiary enterprises are set off by the proportional share of the subsidiaries’ market value of net assets and liabilities at the acquisition date.   Positive differences between acquisition value and market value of acquired and identified assets and liabilities are recognised in intangible fixed assets as goodwill and amortised systematically in the Income statement under an individual assessment of the useful life. Negative differences are recognised in the income statement upon acquisition.  Minority interests The accounting items of the subsidiaries are recognised in full in the consolidated financial statements. The minority interests’ proportional share of the results and equity of the subsidiaries is stated as separate items in the allocation of profit/loss and in individual main items under equity.   Net revenue Net revenue from sale of services ect. is recognised in the Income Statement if supply and risk transfer to purchaser has taken place before the end of the year and if the income can be measured reliably and is expected to be received. Net revenue is recognised exclusive of VAT, duties and less discounts related to the sale.   Recognition in net revenue is made as and when the production progresses, the net revenue being equal to the sales value of the work performed for the year (the production method). This method is applied when the total costs and expenses regarding the contract and the degree of completion at the balance sheet date can be reliably assessed, and it is likely that the financial benefits will flow to the company.    When the result of contract work cannot be assessed reliably, revenue is only recognised corresponding to related costs to the extent that it is likely that they will be recovered.    Sale of services is generally recognised on the basis of a measurable degree of completion, using straight-line recognition of services delivered over time in a regular pattern. Where the degree of completion is not measurable or the sales value or the total costs of completion are uncertain, revenue is recognised by the amount that the enterprise as a maximum believes to have a right to claim and is expected to be received for services delivered at the Balance Sheet date.   Net revenue is recognised exclusive of VAT and less duties and discounts related to the sale.   Costs of raw materials and consumables Raw materials and consumables comprises the costs of raw materials and consumables used to reach the revenue for the year. Additionally, decrease or increase of inventories of raw materials and consumables for the year is included, as well as normal impairment of inventories of raw materials and consumables.   Other operating income Other operating income includes items of a secondary nature in relation to the Group’s and the Company’s activities, including profit from sale of intangible and tangible fixed assets. In addition, profit from sale of intangible and tangible fixed assets as well as business interruption and conflict compensations are included. Compensations are recognised when the income is deemed to be realisable.   Other external expenses Other external expenses include cost of sales, advertising, administration, buildings, bad debts, operational lease expenses, etc.    Staff costs Staff costs comprise wages and salaries, including holiday pay and pensions and other costs for social security etc. for the company’s employees. Repayments from public authorities are deducted from staff costs.   Other operating expenses Other operating expenses include items of a secondary nature in relation to the enterprises' principal activities, including loss from sale of intangible and tangible fixed assets.   Income from investments in subsidiaries The income statement of the parent company recognises the proportional share of the results of each subsidiary after full elimination of intercompany profits/losses and deduction of amortisation of goodwill.   Financial income and expenses Financial income and expenses include interest income and expenses, financial expenses of finance leases, realised and unrealised gains and losses arising from investments in financial assets, debt and transactions in foreign curren­cies, amortisation of financial assets and liabi­lities as well as charges and allowances under the tax-on-account scheme etc. Financial income and expenses are recognised in the income statement by the amounts that relate to the financial year.   Interest and other costs of borrowing for financing of manufacture of current assets and fixed assets are not recognised in the cost price.   Tax The tax for the year, which consists of the current tax for the year and changes in deferred tax, is recognised in the income statement by the portion that may be attributed to the profit for the year, and is recognised directly in the equity by the portion that may be attributed to entries directly to the equity. The company is jointly taxed with Danish group companies. The current corporation tax is distributed between the jointly taxed companies in proportion to their taxable income, and with full distribution with refund regarding taxable losses. The jointly taxed companies are included in the tax-on-account scheme.   Intangible fixed assets Acquired goodwill is measured at cost less accumulated amortisation. Goodwill is amortised on a straight-line basis over the expected useful life which is estimated to between 5 to 10 years. The period of amortisation is determined based on an assessment of the acquired company’s position in the market and earnings profile, and the segment-specific conditions.   Development costs comprise costs, including wages and salaries, and amortisation, which directly or indirectly can be related to the company's development actitivites and which fullfil the criteria for recognition.    Development costs comprise costs, including wages and salaries, and amortisation, which directly or indirectly can be related to the com­pany’s development activities and which fulfil the criteria for recognition.   Intangible fixed assets are generally written down to the lower of recoverable value and carrying amount.   Intangible fixed assets are generally written down to the lower of recoverable value and carrying amount.   Property, plant and equipment Other plants, fixtures and equipment are measured at cost less accumulated depreciation and impairment losses.    The depreciation base is cost less estimated residual value after end of useful life.   The cost includes the acquisition price and costs incurred directly in connection with the acqui­sition until the time when the asset is ready to be used. As regards self-manufactured assets, the cost price includes cost of materials, components, subcontractors, direct payroll and indirect production costs.   Straight-line depreciation is provided on the basis of an assessment of the expected useful lives of the assets and their residual value:   Useful lifeOther plant, fixtures and equipment 3 - 5 years0 % Profit or loss on sale of property, plant and equipment is stated as the difference between the sales price less selling costs and the carrying amount at the date of sale. Profit or loss is recognised in the Income Statement as other operating income or other operating expenses.   Financial non-current assets Investments are measured in the company's balan­ce sheet under the equity method.   Investments in are measured in the balance sheet at the proportional share of the enterprises’ carrying equity value, calculated in accordance with the parent company’s accounting policies with deduction or addition of unrealised intercompany profits or losses and with addition or deduction of the residual value of positive or negative goodwill.   In relation to material assets and liabilities recognised in group enterprise but are not represented in the parent, the following accounting policies have been applied.   Land and buildings, plants and machines, as well as other fixtures, fittings, tools and equipment are measured at cost with deduction of accumulated depreciations. Land is not depreciated. Investment properties are measured at fair value corresponding to the open market value of the property, where changes to the fair value are recognised in the Income Statement. Inventories are measured at cost according to the FIFO principle with deductions of any depreciations at a lower net realisation value. Receivables and payables are measured at amortised cost.   Received dividend is deducted in the carrying amount of the equity investment.   The combination method is applied when acquiring enterprises within the Group, where the combination is regarded as completed from the earliest financial period included in the Financial Statements, and by using the carrying amounts of the assets and liabilities acquired.   The difference between the acquisition cost and carrying amounts is recognised directly in equity.   Net revaluation of investments in subsidiaries and associates is transferred under the equity to reserve for net revaluation under the equity value method to the extent that the carrying amount exceeds the acquisition value. The acquisition method is used on purchase of subsidiaries, see description above under consolidated financial statements.    Profit and loss at disposal of investments in sub­si­dia­ri­es are determined as the difference between the net selling price and the carrying amount of the disposed investment at the time of sale, including non-depreciated excess values and goodwill. Profit and loss are recognised in the Income Statement under income from investments.   Sub­si­dia­ri­es with a negative carrying equity value are measured to DKK 0 and any amounts due from these enter­prises are written down by the company's share of the negative equity to the extent that it is deemed to be irrecoverable. If the carrying negative equity value exceeds receiv­ables, the residual amount is recognised under provision for liabilities to the extent that the companies has a legal or actual liability to cover the sub­si­dia­ri­es deficit.   Impairment of fixed assets The carrying amount of in­tan­gib­le fi­xed and pro­per­ty, plant and equip­ment to­get­her with fi­xed as­sets, which are not mea­su­red at fair va­lue, are valued on an annual basis for indications of impairment other than that reflected by amortisation and depreciation.    In the event of impairment indications, an impairment test is made for each asset or group of assets, respectively. If the net realisable value is lower than the carrying amount, the assets are written down to the lower value.   The recoverable amount is calculated at the higher of net selling price and capital value. The capital value is determined as the fair value of the expected net cash flows from the use of the asset or group of assets and the expected net cash flows from sale of the asset or group of assets after the end of its useful life.  Deposits Deposits include rental deposits which are recognised and measured at amortised cost. Deposits are not depreciated.   Receivables Receivables are measured at amortised cost which usually corresponds to nominal value. The value is reduced by impairment losses to meet expected losses.   Write-off is performed to provide for losses when an objective indication has been assessed to have incurred that a receivable or a portfolio of receivables are impaired. If there is an objective indication that an individual receivable is impaired, the write-off is performed at individual level.   Receivables for which there are no objective indication of impairment at individual level are assessed at portfolio level for objective indication of impairment. The portfolios are primarily based on the debtors’ registered office and credit rating in accordance with the Company’s policy for credit risk management. The objective indicators, which are applied for portfolios, are determined based on the historical loss experiences.   Write-off is determined as the difference between the carrying amount of receivables and the present value of the expected cash flows, including realisable value of any received collaterals. The effective interest rate is used as discount rate for the single receivable or portfolio.   Contract work in progress Work in progress on contract is measured at the sales value of the work performed. The sales value is measured on the basis of the degree of completion on the balance sheet date and the total anticipated revenue related to the specific piece of work in progress.   The specific piece of work in progress is recognised in the Balance Sheet as receivables or payables, depending on the net value of the selling price less progress invoicing and progress payments.   Costs relating to sales work and obtaining of contracts are recognised in the Income Statement as and when they are incurred.   Accruals, assets Accruals recognised as assets include costs incur­red relating to the subsequent financial year.   Tax payable and deferred tax Current tax liabilities and receivable current tax are recognised in the balance sheet as the calculated tax on the taxable income for the year, ad­justed for tax on the taxable income for previous years and taxes paid on account.   Deferred tax is measured on the temporary dif­ferences between the carrying amount and the tax value of assets and liabilities.   Deferred tax assets, including the tax value of tax loss carry-forwards, are measured at the ex­pected realisable value of the asset, either by set-off against tax on future earnings or by set-off against deferred tax liabilities within the same legal tax entity.   Deferred tax is measured on the basis of the tax rules and tax rates that under the legislation in force on the balance sheet date would be ap­pli­cable when the deferred tax is expected to crystallise as current tax. Any changes in the deferred tax resulting from changes in tax rates, are recognised in the income statement, except from items recognised directly in equity.   Liabilities Financial liabilities are recognised at the time of borrowing by the amount of proceeds received less borrowing costs. In subsequent periods, the financial liabilities are measured at amortised cost equal to the capitalised value when using the effective interest, the difference between the proceeds and the nominal value being recog­nised in the income statement over the term of loan. Other liabilities whcich include debt to suppliers, subsidairies and assoiciates and other debt are measured at amortied cost which usually correspondes to the nominal value.    Accruals, liabilities Accruals recognised as liabilities include payments received regarding income in subsequent years.   Foreign currency translation Transactions in foreign currencies are translated at the rate of exchange on the transaction date. Exchange differences arising between the rate on the transaction date and the rate on the payment date are recognised in the income statement as a financial income or expense. If the foreign exchange position is considered to hedge future cash flows, the unrealised exchange afjustments are recognised directly in the equity.  Receivables, payables and other monetary items in foreign currencies that are not settled on the balance sheet date are translated at the exchange rate on the balance sheet date. The difference between the exchange rate on the balance sheet date and the exchange rate at the time of occurrence of the receivables or payables is recognised in the income statement as financial income or expenses. Fixed assets acquired in foreign currencies are translated at the rate of exchange on the transaction date.   On recognition of foreign subsidiaries that are not independent entities, but integrated entities, monetary items are translated at the exchange rate on the balance sheet date. The items of the income statement are translated at the average rate for the year.   The income statements of foreign subsidiaries and associates fulfilling the criteria for being independent entities are translated at an average exchange rate for the month and balance sheet items are translated at the rate of exchange on the balance sheet date. Exchange differences arising from translation of the equity of foreign subsidiaries at the beginning of the year to the rates of the balance sheet date and from translation of income statements from average rate to the rates of the balance sheet date are recognised directly in the equity.   Exchange adjustment of intercompany accounts with foreign subsidiaries that are deemed to be an addition to or deduction from the equity of independent subsidiaries are recognised directly in the equity.   Exchange rate differences recognised in Equity are accumulated in a fair value reserve for currency translation of foreign entities and are transferred to the Income Statement when object of the currency translation is realised or ends. An exception is exchange rate differences arising from translation of Equity interests, which are recognised at Equity value, where the whole value adjustment, including exchange rate differences, are included in the reserve for net valuation according to the Equity value method.   Cash Flow Statement   With reference to Section 86(4) of the Danish Financial Statements Act, the Company has not prepared a cash flow statement. A cash flow statement has been prepared for the Group.   The cash flow statement shows the Company’s cash flows for the year for operating activities, investing activities and financing activities in the year, the change in cash and cash equivalents of the year and cash and cash equivalents at beginning and end of the year.   Cash flows from operating activities:Cash flows from operating activities are computed as the results for the year adjusted for non-cash operating items, changes in net working capital and corporation tax paid.   Cash flows from investing activities:Cash flows from investing activities include payments in connection with purchase and sale of intangible and tangible fixed asset and fixed asset investments.   Cash flows from financing activities:Cash flows from financing activities include changes in the size or composition of share capital and related costs, and borrowings and repayment of interest-bearing debt and payment of dividend to shareholders.   Cash and cash equivalents:Cash and cash equivalents include cash at bank and in hand and short-term securities, for which there is only negligible risk of changes in value, and which are readily negotiable for cash at bank and in hand.   With reference to Section 86(4) of the Danish Financial Statements Act, the Company has not prepared a cash flow statement. A cash flow statement has been prepared for the Group.