Årsrapport 33771231 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab Strandvejen 44 2900 Hellerup 2024-10-01 2023-10-01 2025-09-30 2024-09-30 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab 33771231 Regnskabsklasse C, mellemstor virksomhed Revisionspåtegning true 39452863 2023-09-30 39452863 2022-09-30 39452863 2021-09-30 39452863 2025-09-30 39452863 2024-09-30 39452863 2024-10-01 fsa:ContributedCapitalMember 39452863 2024-10-01 fsa:ReserveForDevelopmentExpenditureMember 39452863 2024-10-01 fsa:RetainedEarningsMember 39452863 2024-10-01 39452863 2025-09-30 fsa:ContributedCapitalMember 39452863 2025-09-30 fsa:ReserveForDevelopmentExpenditureMember 39452863 2025-09-30 fsa:RetainedEarningsMember 39452863 2024-10-01 fsa:CompletedDevelopmentProjectsMember 39452863 2024-10-01 fsa:AcquiredLicencesMember 39452863 2025-09-30 fsa:CompletedDevelopmentProjectsMember 39452863 2025-09-30 fsa:AcquiredLicencesMember 39452863 2024-10-01 fsa:FixturesFittingsToolsAndEquipmentMember 39452863 2025-09-30 fsa:FixturesFittingsToolsAndEquipmentMember 39452863 2024-10-01 fsa:InvestmentsInGroupEnterprisesMember 39452863 2023-10-01 fsa:InvestmentsInGroupEnterprisesMember 39452863 2025-09-30 fsa:InvestmentsInGroupEnterprisesMember 39452863 2024-09-30 fsa:InvestmentsInGroupEnterprisesMember 39452863 2025-09-30 relatedEntityIdentifier_sub_1 fsa:SubsidiaryMember 39452863 2025-09-30 fsa:LongtermDebtToOtherCreditInstitutionsMember 39452863 2024-09-30 fsa:LongtermDebtToOtherCreditInstitutionsMember 39452863 2024-10-01 2025-09-30 39452863 2024-10-01 2025-09-30 2 39452863 2024-10-01 2025-09-30 memberOfBoardIdentifier_executive_board_1 39452863 2024-10-01 2025-09-30 memberOfBoardIdentifier_executive_board_2 39452863 2024-10-01 2025-09-30 memberOfBoardIdentifier_board_of_director_1 39452863 2024-10-01 2025-09-30 memberOfBoardIdentifier_board_of_director_2 39452863 2024-10-01 2025-09-30 memberOfBoardIdentifier_board_of_director_3 39452863 2024-10-01 2025-09-30 1 39452863 2022-10-01 2023-09-30 39452863 2021-10-01 2022-09-30 39452863 2020-10-01 2021-09-30 39452863 2023-10-01 2024-09-30 39452863 2024-10-01 2025-09-30 fsa:ContributedCapitalMember 39452863 2024-10-01 2025-09-30 fsa:ReserveForDevelopmentExpenditureMember 39452863 2024-10-01 2025-09-30 fsa:RetainedEarningsMember 39452863 2024-10-01 2025-09-30 fsa:CompletedDevelopmentProjectsMember 39452863 2024-10-01 2025-09-30 fsa:AcquiredLicencesMember 39452863 2024-10-01 2025-09-30 fsa:FixturesFittingsToolsAndEquipmentMember 39452863 2024-10-01 2025-09-30 fsa:InvestmentsInGroupEnterprisesMember 39452863 2023-10-01 2024-09-30 fsa:InvestmentsInGroupEnterprisesMember 39452863 2024-10-01 2025-09-30 relatedEntityIdentifier_sub_1 fsa:SubsidiaryMember iso4217:DKK pure xbrli:pure

Capnor Connery BidCo A/S

c/o Conscia A/S Kirkebjerg Parkvej 9, 2,
DK-2100 København Ø

Annual Report for
1 October 2024 - 30 September 2025

CVR No. 39 45 28 63

The Annual Report was presented and adopted at the Annual General Meeting of the company on 27/02/2026

2026-02-27

Jacob Bryde Christensen

Chairman of the general meeting

Contents
Management’s statement and Auditor’s report
Management’s statement 1
Independent Auditor’s report 2
Management’s review
Company information 4
Financial Highlights 5
Management's review 6
Financial Statements
Income statement 1 October 2024 - 30 September 2025 7
Balance sheet 30 September 2025 8
Statement of changes in equity 10
Notes to the Financial Statements 11
Management’s statement
1
The Executive Board and Board of Directors have today considered and adopted the Annual Report of Capnor Connery BidCo A/S for the financial year 1 October 2024 - 30 September 2025.
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 30 September 2025 of the Company and of the results of the Company operations for the period 1 October 2024 - 30 September 2025.
In our opinion, Management's Review includes a true and fair account of the matters addressed in the Review.
We recommend that the Annual Report be adopted at the Annual General Meeting.
København Ø , 27 February 2026 2026-02-27
Executive Board
Erik Gunnar Bertman Jacob Bryde Christensen
Board of Directors
Morten Marc Hübbe Jacob Gustav Brandt Aditya Desaraju
Chairman
Independent Auditor’s report
2
To the shareholder of Capnor Connery BidCo A/S
Opinion
In our opinion, the Financial Statements give a true and fair view of the financial position of the Company at 30 September 2025 and of the results of the Company’s operations for the financial year 1 October 2024 - 30 September 2025 in accordance with the Danish Financial Statements Act.
We have audited the Financial Statements of Capnor Connery BidCo A/S for the financial year 1 October 2024 - 30 September 2025, 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.
Statement on Management’s Review
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.
Management’s responsibilities for the Financial Statements
Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the Danish Financial Statements Act, and for such internal control as Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the Financial Statements, Management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting in preparing the Financial Statements unless Management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the Financial Statements
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.
Independent Auditor’s report
3
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.
Hellerup , 27 February 2026 2026-02-27
PricewaterhouseCoopers
Statsautoriseret Revisionspartnerselskab
CVR No 33 77 12 31
Jacob Dannefer Mohamad Chaouki Ayoub
State Authorised Public Accountant State Authorised Public Accountant
mne47886 mne51526
Company information
4
The Company Capnor Connery BidCo A/S
c/o Conscia A/S Kirkebjerg Parkvej 9, 2
DK- 2100 København Ø
CVR No: 39 45 28 63
Financial period: 1 October 2024 - 30 September 2025
Incorporated: 3 April 2018
Financial year: 8th financial year
Municipality of reg. office: Brøndby
Board of Directors Morten Marc Hübbe, chairman
Jacob Gustav Brandt
Aditya Desaraju
Executive Board Erik Gunnar Bertman
Jacob Bryde Christensen
Auditors PricewaterhouseCoopers
Statsautoriseret Revisionspartnerselskab
Strandvejen 44
DK- 2900 Hellerup
Financial Highlights
5
Seen over a 5-year period, the development of the Company is described by the following financial highlights:
(TDKK) 2024/25 2023/24 2022/23 2021/22 2020/21
Key figures
Profit/loss
Gross profit/loss 13,811 -31,323 22,506 - 22,593 2,651
Profit/loss of primary operations -22,726 -66,623 - 8,652 - 54,984 - 24,729
Profit/loss of financial income and expenses -165,053 -156,365 - 115,327 - 77,530 - 50,714
Net profit/loss for the year -186,996 -206,324 - 109,771 - 121,053 - 58,716
Balance sheet
Balance sheet total 8,207,036 3,442,798 3,491,462 3,374,692 3,330,438
Investment in property, plant and equipment 1,154 409 781 115 1,278
Equity 1,449,569 1,072,267 1,278,591 1,388,362 1,490,070
Number of employees 22 23 18 19 14
Ratios
Return on assets - 0.3 % - 1.9 % - 0.2 % - 1.6 % - 0.7 %
Solvency ratio 17.7 % 31.1 % 36.6 % 41.1 % 44.7 %
Return on equity - 14.8 % - 17.6 % - 8.2 % - 8.4 % - 3.9 %
Explanation of financial ratios are disclosed in accounting polices - note 16.
Management's review
6
Key activities
The principal activities of Capnor Connery BidCo A/S consist of owning capital shares in affiliated companies, including other related business, cf. the board's assessment.
Development in the year
The income statement of the Company for 2024/25 shows a loss of TDKK 186,996, and at 30 September 2025 the balance sheet of the Company shows a positive equity of TDKK 1,449,569. The result is mainly impacted by M&A activities.
Management considers the results very satisfactory and in line with the expectations.
The past year and follow-up on development expectations from last year
Conscia enters the 2025/26 financial year well-positioned in attractive and resilient markets, supported by several structural growth drivers. These include heightened cybersecurity demands, the ongoing transition to hyper-converged infrastructure and software-defined networking, accelerated cloud adoption, and increased awareness of the financial impact of network disruptions.
For 2024/25 the company realized a EBITDA loss at 13 mDKK, which is in line with the expectations of 10 to 15 m DKK in last years annual report. For 2025/26, the company expects to deliver a EBITDA loss in the range of 10 to 15 MDKK which is in same range as 2024/25 but can be impacted of the company's M&A activity.
Special risks - operating risks and financial risks
The company is exposed to uncertainties and risk factors, which may affect some or all its activities and are described below.
Foreign exchange risks
Exchange rate fluctuations related to the translation of the results and inter-Group balance of foreign subsidiaries at the balance sheet date constitute a risk. The Company does not hedge this type of risk. Consequently, in the short term, the Company may be affected by exchange rate fluctuations related to the translation of the results and inter-Group balance of subsidiaries into DKK
Interest rate risks
The Company is exposed to fluctuations in interest rates. The Company monitors interest rate developments and takes advice from advisors on how best to mitigate the impact of changes in interest rates.
Uncertainty relating to recognition and measurement
There has been no uncertainty regarding recognition and measurement in the Annual Report.
Subsequent events
No events materially affecting the assessment of the Annual Report have occurred after the balance sheet date.
Income statement 1 October 2024 - 30 September 2025
7
(TDKK) Note 2024/25 2023/24
Gross profit/loss 13,811 - 31,323
Staff expenses 2 - 26,743 - 22,063
Amortisation, depreciation and impairment losses of intangible assets and property, plant and equipment 3 - 9,794 - 13,237
Profit/loss before financial income and expenses - 22,726 - 66,623
Financial income 4 281,061 110,115
Financial expenses 5 - 446,114 - 266,480
Profit/loss before tax - 187,779 - 222,988
Tax on profit/loss for the year 6 783 16,664
Net profit/loss for the year 7 - 186,996 - 206,324
Balance sheet 30 September 2025
8
Assets
(TDKK) Note 2024/25 2023/24
Completed development projects 9,149 11,588
Acquired licenses 77,334 47,333
Intangible assets 8 86,483 58,921
Other fixtures and fittings, tools and equipment 1,474 611
Property, plant and equipment 9 1,474 611
Investments in subsidiaries 10 3,621,392 2,139,691
Corporation tax receivable from group enterprises 17,649 19,393
Fixed asset investments 3,639,041 2,159,084
Fixed assets 3,726,998 2,218,616
Trade receivables 0 32
Receivables from group enterprises 4,452,798 1,195,362
Other receivables 2,242 7,146
Deferred tax asset 12 0 2,992
Corporation tax receivable from group enterprises 19,393 13,345
Prepayments 11 5,605 5,305
Receivables 4,480,038 1,224,182
Current assets 4,480,038 1,224,182
Assets 8,207,036 3,442,798
Balance sheet 30 September 2025
9
Liabilities and equity
(TDKK) Note 2024/25 2023/24
Share capital 1,717 1,717
Reserve for development costs 7,135 9,038
Retained earnings 1,440,717 1,061,512
Equity 1,449,569 1,072,267
Provision for deferred tax 12 13,875 0
Provisions 13,875 0
Credit institutions 6,187,064 1,748,888
Long-term debt 13 6,187,064 1,748,888
Credit institutions 13 222,371 262,687
Trade payables 15,112 5,884
Payables to group enterprises 289,238 309,296
Other payables 29,807 43,776
Short-term debt 556,528 621,643
Debt 6,743,592 2,370,531
Liabilities and equity 8,207,036 3,442,798
Contingent assets, liabilities and other financial obligations 14
Related parties 15
Subsequent events 16
Accounting Policies 17
Statement of changes in equity
10
(TDKK) Share capital Reserve for development costs Retained earnings Total
Equity at 1 October 1,717 9,038 1,061,512 1,072,267
Contribution from group 0 0 564,298 564,298
Development costs for the year 0 120 - 120 0
Depreciation, amortisation and impairment for the year 0 - 2,023 2,023 0
Net profit/loss for the year 0 0 - 186,996 - 186,996
Equity at 30 September 1,717 7,135 1,440,717 1,449,569
Notes to the Financial Statements
11
1. Expenses for raw materials and consumables
(TDKK) 2024/25 2023/24
Other expenses 8,739 0
8,739 0
2. Staff expenses
(TDKK) 2024/25 2023/24
Wages and salaries 24,570 20,124
Pensions 2,228 1,813
Other social security expenses - 55 126
26,743 22,063
Average number of employees 22 23
Remuneration to the Executive Board has not been disclosed in accordance with section 98 B(3) of the Danish Financial Statements Act.
3. Amortisation, depreciation and impairment losses of intangible assets and property, plant and equipment
(TDKK) 2024/25 2023/24
Amortisation of intangible assets 9,503 12,625
Depreciation of property, plant and equipment 291 612
9,794 13,237
4. Financial income
(TDKK) 2024/25 2023/24
Interest from group enterprises 278,903 110,052
Other financial income 59 63
Exchange adjustments 2,099 0
281,061 110,115
Notes to the Financial Statements
12
5. Financial expenses
(TDKK) 2024/25 2023/24
Interest to group enterprises 25,918 23,465
Other financial expenses 420,196 241,342
Exchange adjustments, expenses 0 1,673
446,114 266,480
6. Income tax expense
(TDKK) 2024/25 2023/24
Current tax for the year - 17,650 - 19,393
Deferred tax for the year 16,867 2,129
Adjustment of tax concerning previous years 0 600
- 783 - 16,664
7. Profit allocation
(TDKK) 2024/25 2023/24
Retained earnings - 186,996 - 206,324
-186,996 -206,324
8. Intangible fixed assets
(TDKK) Completed develop­ment projects Acquired licenses
Cost at 1 October 12,053 86,420
Additions for the year 154 36,911
Cost at 30 September 12,207 123,331
Impairment losses and amortisation at 1 October 465 39,087
Amortisation for the year 2,593 6,910
Impairment losses and amortisation at 30 September 3,058 45,997
Carrying amount at 30 September 9,149 77,334
Amortised over 1-5 years 1-5 years
Notes to the Financial Statements
13
9. Property, plant and equipment
(TDKK) Other fixtures and fittings, tools and equipment
Cost at 1 October 2,583
Additions for the year 1,154
Cost at 30 September 3,737
Impairment losses and depreciation at 1 October 1,972
Depreciation for the year 291
Impairment losses and depreciation at 30 September 2,263
Carrying amount at 30 September 1,474
Amortised over 3-5 years
10. Investments in subsidiaries
(TDKK) 2024/25 2023/24
Cost at 1 October 2,139,691 2,139,691
Additions for the year 1,481,701 0
Cost at 30 September 3,621,392 2,139,691
Carrying amount at 30 September 3,621,392 2,139,691
Investments in subsidiaries are specified as follows:
Name Place of registered office Share capital Owner­ship
AX IV CON ApS Denmark, Brøndby 3.386 100 %
11. Prepayments
Prepayments comprise prepaid expenses concerning rent, insurance premiums, subscriptions and interest.
Notes to the Financial Statements
14
12. Provision for deferred tax
(TDKK) 2024/25 2023/24
Deferred tax liabilities at 1 October -2,992 -5,121
Amounts recognised in the income statement for the year 16,867 2,129
Deferred tax liabilities at 30 September 13,875 -2,992
13. Long-term debt
(TDKK) 2024/25 2023/24
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:
Credit institutions
After 5 years 0 0
Between 1 and 5 years 6,187,064 1,748,888
Long-term part 6,187,064 1,748,888
Within 1 year 222,371 262,687
6,409,435 2,011,575
14. Contingent assets, liabilities and other financial obligations
Guarantee obligations
Capnor Connery BidCo A/S has provided three bank guarantees, one to De Lage Landen, Holland and two to HelseSør-Øst RHF, Norway.
Other contingent liabilities
The Company and its Danish subsidiaries are jointly taxed with the Danish companies of Capnor Connery HoldCo A/S. The total amount of corporation tax payable is disclosed in the Annual Report of Capnor Connery HoldCo A/S, which is the management company of the joint taxation purposes. Moreover, the Danish group companies are jointly and severally liable for Danish withholding taxes by way of dividend tax, tax on royalty pay- ments and tax on unearned income. Any subsequent adjustments of corporation taxes and withholding taxes may increase the Company’s liability.
Notes to the Financial Statements
15
15. Related parties and disclosure of consolidated financial statements
Transactions
For the financial year 2024/25, the following transactions were undertaken:
Management fee: A net total of tDKK 54,575 invoiced to subsidiaries:
tDKK 20,743, invoiced to the subsidiary Conscia Denmark A/S,
tDKK 7,360 invoiced to the subsidiary Conscia Sverige AB,
tDKK 9,842 invoiced to the subsidiary Conscia Norge AS,
tDKK 12,370 invoiced to the subsidiary Conscia Nederland B.V.,
tDKK 5,409 invoiced to the subsidiary NIL Podatkovne komunikacije, d.o.o.,
tDKK 4,171 invoiced to the subsidiary Conscia Deutschland GmbH
tDKK 5,358 invoiced to the subsidiary ITGL Limited and
tDKK -10,678 invoiced from Capnor Connery Holdco
Intercompany interest: As at 30 September 2025, net tDKK 252,984 has been invoiced to subsidiaries.
Intercompany balances: As at 30 September 2025, loans granted by the company to subsidiaries amounted to tDKK 4,452,800. These balances accrue interest at rates between 8% and 10%, consistent with the Group’s external financing terms.
Consolidated Financial Statements
The Company is included in the Group Annual Report of the Parent Company of the largest group:
Name Place of registered office
Capnor Connery HoldCo A/S (ultimate parent) Brøndby, Denmark
16. Subsequent events
No events materially affecting the assessment of the Annual Report have occurred after the balance sheet date.
Notes to the Financial Statements
16
17. Accounting policies
The Annual Report of Capnor Connery BidCo A/S for 2024/25 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 2024/25 are presented in TDKK.
Consolidated financial statements
With reference to section 112 of the Danish Financial Statements Act and to the consolidated financial statements for 2024/25 of Capnor Connery HoldCo A/S, the Company has not prepared consolidated financial statements.
Cash flow statement
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 Capnor Connery HoldCo A/S, the Company has not prepared a cash flow statement.
Recognition and measurement
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.
Income statement
Revenue
Revenue is measured at the consideration received and is recognised exclusive of VAT and net of discounts relating to sales.
Expenses for raw materials and consumables
Expenses for raw materials and consumables comprise the raw materials and consumables consumed to achieve revenue for the year.
Other external expenses
Other external expenses comprise administration.
Gross profit/loss
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, other operating income, expenses for raw materials and consumables and other external expenses.
Notes to the Financial Statements
17
17. Accounting policies (continued)
Staff expenses
Staff costs include wages and salaries including compensated absence and pensions as well as other social security contributions etc. made to the entity's employees.
Amortisation, depreciation and impairment losses
Amortisation, depreciation and impairment losses comprise amortisation, depreciation and impairment of intangible assets and property, plant and equipment.
Other operating income and expenses
Other operating income and other operating expenses comprise items of a secondary nature to the main activities of the Company, including gains and losses on the sale of intangible assets and property, plant and equipment.
Income from investments in subsidiaries
Dividends from subsidiaries are recognised as income in the income statement when adopted at the General Meeting of the subsidiary. However, dividends relating to earnings in the subsidiary before it was acquired by the Parent Company are set off against the cost of the subsidiary.
Financial income and expenses
Financial income and expenses comprise interest, financial expenses in respect of finance leases, realised and unrealised exchange adjustments, price adjustment of securities, amortisation of mortgage loans as well as extra payments and repayment under the on-account taxation scheme.
Tax on profit/loss for the year
Tax for the year consists of current tax for the year and deferred tax for the year. The tax attributable to the profit for year is recognised in the income statement, whereas the tax attributable to equity transactions is recognised directly in equity.
Any changes in deferred tax due to changes to tax rates are recognised in the income statement.
The Company is jointly taxed with Capnor Connery HoldCo A/S. The tax effect of the joint taxation is allocated to Danish enterprises in proportion to their taxable incomes.
Balance sheet
Intangible fixed assets
Development projects
Costs of development projects comprise salaries, amortisation and other expenses directly or indirectly attributable to the Company’s development activities.
Development projects that are clearly defined and identifiable and in respect of which technical feasibility, sufficient resources and a potential future market or development opportunity in the enterprise can be demonstrated, and where it is the intention to manufacture, market or use the project, are recognised as intangible assets. This applies if sufficient certainty exists that the value in use of future earnings can cover cost of sales, distribution and administrative expenses involved as well as the development costs.
Development projects that do not meet the criteria for recognition in the balance sheet are recognised as expenses in the income statement as incurred.
Notes to the Financial Statements
18
17. Accounting policies (continued)
Capitalised development costs are measured at cost less accumulated amortisation and impairment losses or at a lower recoverable amount. An amount corresponding to the recognised development costs is allocated to the equity item 'Reserve for development costs'. The reserve comprises only development costs recognised in financial years beginning on or after 1 January 2016. The reserve is reduced by amortisation of and impairment losses on the development projects on a continuing basis.
As of the date of completion, capitalised development costs are amortised on a straight-line basis over the period of the expected economic benefit from the development work. The amortisation period is year.
Other intangible fixed assets
are measured at cost less accumulated amortisation and less any accumulated impairment losses or at a lower value in use.
Property, plant and equipment
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:
Other fixtures and fittings, tools and equipment 3-5 years
The fixed assets’ residual values are determined at nil.
Depreciation period and residual value are reassessed annually.
Impairment of fixed assets
The carrying amounts of intangible assets and property, plant and equipment and investments are reviewed on an annual basis to determine whether there is any indication of impairment other than that expressed by amortisation and depreciation.
The recoverable amount of the asset is calculated as the higher of net selling price and value in use. Where a recoverable amount cannot be determined for the individual asset, the assets are assessed in the smallest group of assets for which a reliable recoverable amount can be determined based on a total assessment.
Goodwill, head office buildings and other assets for which a separate value in use cannot be determined as the asset does not on an individual basis generate future cash flows are reviewed for impairment together with the group of assets to which they are attributable.
Investments in subsidiaries
Investments in subsidiaries are measured at cost. Where cost exceeds the recoverable amount, write-down is made to this lower value.
Receivables
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.
Prepayments
Prepayments comprise prepaid expenses concerning rent, insurance premiums, subscriptions and interest.
Notes to the Financial Statements
19
17. Accounting policies (continued)
Deferred tax assets and liabilities
Deferred tax assets, including the tax base of tax loss carry-forwards, 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.
Deferred tax assets and liabilities are offset within the same legal tax entity.
Current tax receivables and liabilities
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.
Financial liabilities
Loans, such as loans from credit institutions, are recognised initially at the proceeds received net of transaction expenses incurred. Subsequently, the loans are measured at amortised cost; the difference between the proceeds and the nominal value is recognised as an interest expense in the income statement over the loan period.
Other debts are measured at amortised cost, substantially corresponding to nominal value.
Financial Highlights
Explanation of financial ratios
Return on assets Profit/loss of primary operations 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