FOSS Analytical A/S

ANNUAL

REPORT

2025

Approved at General Meeting March 11, 2026

Chairman of the

General Meeting

P

eter Foss

FOSS

Analytical A/S - CVR no 73399815

Nils Foss Allé 1, 3400 Hillerød, Denmark

Contents Page

Statement by Management on the annual report 1

Independent Auditor’s Report 2

Management Commentary 4

Income Statement 8

Balance Sheet 9

Statement of Changes in Equity 11

Notes to the Annual Report 12

Accounting Principles 19

1

Statement by Management on the annual report

The Board of Directors and the Executive Board have today considered and approved the annual report of

FOSS Analytical A/S for the financial year 1 January to 31 December 2025.

The annual report is presented in accordance with the Danish Financial Statements Act.

In our opinion, the financial statements give a true and fair view of the Company’s financial position at 31

December 2025 and financial performance for the financial year 1 January to 31 December 2025.

We believe that the management commentary contains a fair review of the affairs and conditions referred to

therein.

We recommend the annual report for adoption at the Annual General Meeting.

Hillerød, 11 March,

2026

Executive Board

Kim Vejlby Hansen

Chief Executive Officer

Jesper Sabroe

Chief Financial Officer

Board of Directors

Peter Alexander Foss

Chairman

Kim Vejlby Hansen

Jesper Sabroe

Anja Zoega Willumsen

Julia la Cour Krups

Karina Nørgaard Gadegaard

2

Independent Auditor’s Report

To the Shareholder of FOSS Analytical A/S

Opinion

In our opinion, the Financial Statements give a true and fair view of the financial position of the Company at

31 December 2025, and of the results of the Company’s operations for the financial year 1 January - 31

December 2025 in accordance with the Danish Financial Statements Act.

We have audited the Financial Statements of FOSS Analytical A/S for the financial year 1 January - 31 Decem-

ber 2025, which comprise income statement, balance sheet, statement of changes in equity and notes, includ-

ing 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 require-

ments 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 State-

ments 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 accord-

ance 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 con-

tinue 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 liqui-

date 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

3

accordance with ISAs and the additional requirements applicable in Denmark will always detect a material

misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,

individually or in the aggregate, they could reasonably be expected to influence the economic decisions of

users taken on the basis of these Financial Statements.

As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark,

we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the Financial Statements, whether due to

fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evi-

dence 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 esti-

mates 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 re-

quired 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.

• Plan and perform the audit to obtain sufficient appropriate audit evidence regarding the consolidated

financial information of the entities or business units as a basis for forming an opinion on the Financial

Statements. We are responsible for the direction, supervision and review of the audit work performed.

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.

Hellerup, 11 March 2026

PricewaterhouseCoopers

Statsautoriseret Revisionspartnerselskab

CVR No 33 77 12 31

Martin Lunden

Christopher Kowalczyk

St

ate Authorized Public Accountant

State Authorized Public Accountant

m

ne32209 mne47863

4

Management Commentary

Financial Highlights

2025

2024 2023 2022

2021

TDKK TDKK TDKK TDKK TDKK

Key Figures

Income Statement

Revenue 1.931.732 1.809.393 1.760.406 1.782.702 1.660.314

Operating Profit 614.650 519.881 507.295 475.858 479.039

Net financial items -30.968 -23.144 -16.330 -11.378 -123

Profit for the year 473.293 402.148 393.857 363.467 366.798

Balance Sheet

Total assets 990.330 874.036 830.270 777.625 703.445

Equity 512.846 434.811 437.212 405.890 409.282

Investments in tangible assets 36.220 10.175 12.285 5.137 11.692

Number of employees, average 676 648 600 591 577

Ratios %

Operating profit margin 31,8% 28,7% 28,8% 26,7% 28,9%

Return on investments 62,1% 59,5% 61,1% 61,2% 68,1%

Solvency ratio 51,8% 49,7% 52,7% 52,2% 58,2%

Return on equity 99,9% 92,2% 93,4% 89,2% 92,5%

Please refer to the financial highlights section under accounting policies for the definitions of the ratios.

5

Management Commentary

The FOSS mission

FOSS contribute to the sustainable use of our planet’s agricultural resources and thus to the nutrition and

health of the people of the world.

FOSS provide analytics beyond measure to add value to our customers by improving quality and optimising

food and agricultural production.

Main Activity

FOSS creates solutions that secure and improve food quality and optimize production. From raw material to

finished product. Our analysis instruments refine measurements into information management that enables

businesses to run intelligent data-driven productions with less waste and bigger yields.

Controlling cost and quality across all sectors and value chains, we help food and agricultural producers limit

the number of human errors, scale their business faster and reduce labour costs. We call these analytics

beyond measure.

We cover these food and agricultural industries: Dairy, Feed & Forage, Grain, Flour Milling & Oilseed Pro-

cessing, Laboratories, Meat, Raw Milk Testing and Wine & Beer.

FOSS Analytical A/S is 100% owned by FOSS A/S which is part of the N. Foss & Co. A/S consolidated group

accounts (Ultimate Parent Company). FOSS Analytical A/S develops and produces its products in Denmark and

markets them worldwide through affiliated companies, independent distributors and directly. To support it’s

main activities, FOSS Analytical A/S owns 100% of Softlow (Hungary).

Research & Development Activities

The effort within Research & Development for generating new products and further development of existing

products constitutes an important part of the FOSS values. A number of product improvements are constantly

being developed whilst the product development constantly results in introduction of new products to both

new as well as existing customer segments.

Making sustainability a better business while improving food quality

FOSS creates solutions that secure and improve food quality and optimize production. From raw material to

finished product. The analysis instruments refine measurements into information management that enables

business to run intelligent data-driven productions with less waste and bigger yields.

Our world-leading analytical solutions makes a tangible difference for the food and agricultural industry and

its use of the world’s valuable natural resources – while at the same time improving product quality and saving

time and money.

FOSS takes what used to be complex, time consuming, and expensive and makes it fast, dedicated, and easy-

to-use. Our innovation renders elements such as manual registration, laboratory experts and the use of chem-

icals unnecessary, and replaces it with intelligent solutions that give you data to act on and the power to

control, optimise and run a business based solely on high quality insights and cutting-edge innovation. This

has made us a crucial companion in the development of the new food and protein sources of the future.

External Environment

Our policy is based on an environmental proper operation and external environment is a natural part of the

targets in the Company related to product quality and production. FOSS Analytical A/S currently does not have,

nor in recent times has it had, court cases related to environmental matters.

6

Collaborating to improve sustainability performance

In addition to the sustainable benefits of our solutions FOSS believe in acting ethically and responsibly. FOSS

is an active member of the UN Global Compact. As a member, we are committed to aligning strategies and

operations with universal principles on human rights, labor, the environment and anti-corruption. Each year

we produce a Communication on Progress (COP) report showing the practical actions we have taken to imple-

ment the Ten Principles in our company.

FOSS is also a member of the SEDEX initiative, the world's largest collaborative platform for sharing responsible

sourcing data on supply chains, used by more than 60,000 members. As a member our production facilities

are audited by a 3

rd

party to assess performance against the SEDEX best practice criteria in the areas of health

& safety, labor, the environment and business integrity. We also support the Sustainable Development goals

and report on how we contribute to goals 2,3, 8, and 12.

For more information on sustainability and information requires by Danish Financial Statements Act 99b, please

refer to the ESG section in the Management review in the Annual Report 2025 for the parent FOSS A/S

(https://www2.fossanalytics.com/FOSS-Annual-Report-2025).

Data ethics statement

FOSS is a responsible employer and a trusted partner to our customers and business partners. We do our

utmost to ensure that data is used in a safe and responsible manner.

We have taken a strategic approach to data ethics and have established an initial global Data Ethics Policy re-

garding use of data and new technologies.

The Data Ethics Policy is about responsible and sustainable use of data and new technologies and complements

e.g., the principles of transparency and data minimization in FOSS’ Global Data Protection Policy as well as

rules on integrity and confidentiality. The policy also supplements policies on handling of personal data, use

of cookies etc.

The FOSS Data Ethics Policy has been prepared as an overall framework and it applies to the FOSS Group.

FOSS will continue its proactive work with data ethics based on the four principles set out in the Data Ethics

Policy. For more information on sustainability and information requires by Danish Financial Statements Act

99b, please refer to the ESG section in the Management review in the Annual Report 2025 for the parent FOSS

A/S (https://www2.fossanalytics.com/FOSS-Annual-Report-2025).

Knowledge

Development, production and marketing of high technology analytical solutions demand highly skilled employ-

ees. In order to preserve the Company’s ability to satisfy our global customers’ demand for dedicated analytical

solutions it is a prerequisite that we maintain the extensive specialist knowledge and other competencies,

which are deeply rooted in the organization. This is ensured through continued maintenance, education and

recruiting of competent and dynamic employees on all levels. Considerable resources are used in order to

make this possible. In addition, focus on employer branding to attract and retain talent and experts is high.

Risk

Operating Risk

The main operating risk for the Company is concerning the ability to be strongly positioned in the market and

at the cutting edge of the technological development for end-to-end solutions that secure and improve food

quality. This risk is influenced by broader macroeconomic factors such as a potential global economic slowdown

and shifts in global food demand. The Company mitigates these risks through continuous innovation, close

collaboration with customers, a broad product portfolio across multiple food segments and regions, and an

ongoing focus on operational efficiency and commercial agility.

The Company has entered longer-term contracts with key suppliers for delivery of components that are a part

of production in the aim of securing a stable supply and a higher predictability in price development.

7

In recent years our offering to the market contains more digital offerings as well as more online and interface

connections within our IT infrastructure. It is our aim to continuously reduce our risk of being compromised

and thus significant resources for improving the Group’s IT infrastructure and security are being invested.

Financial risk

The financial risk is primarily related to changes in currency exchange rates. Currencies with possible highest

impact is USD, AUD and CNY.

Credit risk

The main credit risk for the Company derives from ordinary customer transactions with restrictive guidelines

for trade with new customers and customers located in zones of particular high credit risk while trade with

known and credit rated customers are completed on accommodative conditions. These conditions have his-

torically resulted in very few losses on debtors.

Development in activities and financial conditions

Revenue increased by 6.8% to DKK 1,932 million (DKK 1,809 million in 2024), in line with management’s

expectations of 6-8% growth.

Gross profit amounts to DKK 1,291 million (DKK 1,139 million in 2024).

Operating profit amounts to DKK 615 million (DKK 520 million in 2024), corresponding to an operating profit

margin of 31.8% (including non‑recurring costs), compared to 28.7% in 2024.

Profit before tax amounts to DKK 601 million (DKK 513 million in 2024), corresponding to an increase of

17.1%. The increase surpassed the expected 6–8% and is attributable to an improved gross margin from a

favorable product mix, enhanced operational performance, and sustained profitability efforts.

Profit for the year increased by 18.5% to DKK 477 million (DKK 402 million in 2024).

The average number of employees in 2025 was 676 (648 in 2024).

Uncertainty relating to recognition and measurement

There are no significant uncertainties related to the annual report according to the management.

Unusual circumstances

The annual report is not impacted by any unusual circumstances.

Expected development

Investments in sales and distribution activities as well as product development activities will continue in 2026.

Management expects this to strengthen FOSS Analytical A/S’ market position and contribute to fulfil the growth

strategy for the Company in supplying high quality solutions for the increasing demand of food quality.

It is the expectation that the Company will see increasing revenue and profit before tax on 7% to 9% in the

coming year.

Subsequent events

No events have occurred after the balance sheet date to this date, which would influence the evaluation of

this annual report.

8

Income Statement

No t e s

2025

2024

TDKK TDKK

Revenue 1 1.931.732 1.809.393

Change in inventories of finished goods and work in progress

W

ork on account recognized in assets 60.737 54.041

Other operating income 48.300 46.996

Expenses for raw materials and consumables -503.893 -540.454

Other external expenses -242.470 -232.833

Gross Profit 1.291.284 1.139.104

Staff expenses 2 -650.291 -593.084

Earnings Before Depreciation, Interest and tax 640.993 546.020

Depreciation, amortization and impairment losses 3 -26.343 -26.139

Operating Profit 614.650 519.881

Result from group enterprises 16.864 16.219

Other financial income 4 8.163 4.977

Other financial expenses 5 -39.131 -28.121

Profit before tax 600.546 512.955

Tax on profit for the year 6 -127.253 -110.807

Profit for the year 7 473.293 402.148

-3.121

1.961

9

Balance Sheet

Assets

No t e s

2025 2024

TDKK TDKK

Software and patents 103.922 102.540

Intangible assets 8 103.922 102.540

Plant and machinery 5.414 3.282

Other fixtures, fittings, tools and equipment 40.245 15.112

Leasehold improvements 315 478

Tangible assets 9 45.974 18.872

Investment in group enterprise 10 46.882 23.129

Deposits 11 311 303

Fixed asset investment 47.193 23.432

Fixed assets 197.089 144.844

Inventories 12 301.535 262.512

Trade receivables 71.914 71.425

Receivables from group enterprises 379.918 365.620

Other short-term receivables 13 16.683 11.174

Prepayments 14 8.132 5.359

Receivables 476.647 453.578

Cash and cash equivalents 15.059 13.102

Current assets 793.241 729.192

Assets 990.330 874.036

10

Balance Sheet

Liabilities

No t e s 2025 2024

TDKK TDKK

Contributed capital 15 20.500 20.500

Retained earnings 19.053 12.163

Proposed dividend for the year 473.293 402.148

Equity 512.846 434.811

Provision for deferred tax 16 16.541 22.019

Other provisions 17 6.428 7.623

Provisions 22.969 29.642

Non-current liabilities - 9.099

Non-current liabilities other than provisions 18 - 9.099

Prepayments received from customers 3.614 7.361

Trade payables 136.053 96.541

Payables to group enterprises 114.990 135.552

Income tax payable 130.310 103.917

Other payables 60.193 47.115

Deferred income 19 9.355 9.996

Current liabilities other than provisions 454.515 400.483

Liabilities other than provisions 454.515 409.583

Equity and Liabilities 990.330 874.036

Contingent assets and liabilities 20

Related parties 21

Ownership and group relationship 22

Fee to auditors appointed at the annual general meeting 23

Subsequent events 24

11

Statement of Changes in Equity

Changes in Equity 2025

Contributed

Capital

Retained

Earnings

Proposed

dividend for

the year

Total

TDKK TDKK TDKK TDKK

Equity beginning of year 20.500 12.163 402.148 434.811

Dividend paid - - -402.148 -402.148

Exchange rate adjustment - 6.900 - 6.900

Other adjustment - -10 - -10

Profit for the year - - 473.293 473.293

Equity end of year 20.500 19.053 473.293 512.846

Changes in Equity 2024

Contributed

Capital

Retained

Earnings

Proposed

dividend for

the year

Total

TDKK TDKK TDKK TDKK

Equity beginning of year 20.500 22.855 393.857 437.212

Dividend paid - - -393.857 -393.857

Exchange rate adjustment - -7.352 - -7.352

Other adjustment - -3.340 - -3.340

Profit for the year - - 402.148 402.148

Equity end of year 20.500 12.163 402.148 434.811

12

Notes to the Annual Report

2025

2024

TDKK TDKK

1 Revenue

Geographical segments

EU countries 646.584 588.759

Other countries 1.285.148 1.220.634

1.931.732 1.809.393

Segments

Instruments 1.423.951 1.338.547

Other activities 507.781 470.846

1.931.732 1.809.393

2 Staff Expenses

Wages and salaries 628.142 573.929

Pensions 14.995 13.149

Other social security expenses 7.154 6.007

650.291 593.084

Transferred to work in progress and finished goods -60.737 -54.041

589.555 539.043

Hereof salaries and wages for Executive Board and Board of Directors

Executive Board & Bosard of Directors -9.759 -8.323

-9.759 -8.323

Average number of employees 676 648

3 Depreciation, amortisation and impairment losses

Software and patents 17.228 -15.527

Plant and machinery 2.367 -2.256

Other fixtures, fittings, tools and equipment 6.586 -8.152

Leasehold improvements 162 -204

26.343 -26.139

13

Notes to the Annual Report

2025 2024

TDKK TDKK

4 Other financial income

Interest received 153 9

60

Interest received from affiliated companies 8.010 2.846

Other f inancial income -0 1.171

8.163 4.977

5 Other financial expenses

Interest paid -402 -840

Interest paid to affiliated companies -9.513 -13.127

Exchange rate adjustment -29.216 -14.154

-39.131 -28.121

6 Tax on profit for the year

Corporation tax for the year -131.516 -104.439

Tax for previous year -1.217 2.240

Deferred tax previous year 185 -

Deferred tax for the year 5.295 -8.608

Tax for the year -127.253 -

110.807

Provision for deferred tax

Deferred tax beginning of the year 22.019 18.471

Adjustments previous year -183 -5.061

Adjustments in Profit & Loss -5.295 8.608

Provision for deferred tax end of year 16.541 22.019

7 Proposed distribution of profit

Proposed dividend for the financial year 473.293 402.148

Profit for the year 473.293 402.148

14

Notes to the Annual Report

8

Intangible Assets

Software and

patents

TDKK

Cost beginning of year 170.209

Additions for the year 18.610

Cost end of year 188.819

Amortization and impairment losses 1 January 67.669

Amortization for the year 17.228

Amortization and impairment losses 31 December 84.897

Carrying amount end of year 103.922

Amortized over period of 3-7 years

9

Tangible assets

Plant and

machinery

Other fixtures,

fittings, tools

a

nd equipment

Leasehold

improvements

TDKK TDKK TDKK

Cost beginning of year 36.945 105.338 1.748

Additions for the year 4.499 31.721 -

Disposals for the year -422 -37 -

Cost end of year 41.022 137.022 1.748

Depreciation beginning of year 33.663 90.228 1.271

Depreciation for the year 2.367 6.586 162

Depreciation of sold assets for the year -422 -37 -

Depreciation end of year 35.608 96.777 1.433

Carrying amount end of year 5.414 40.245 315

Depreciated over period of 3-5 years 3-5 years

During the rental

period

15

Notes to the Annual Report

2025

2024

TDKK TDKK

10 Investment in group enterprise

Cost beginning of year 101.763 101.763

Cost end of year 101.763 101.763

Impairment losses beginning of year -78.634 -84.160

Exchange rate adjustment 6.900 -7.352

Net profit for the year 16.863 16.219

Other adjustments -10 -3.340

Impairment losses end of year -54.881 -78.634

Carrying amount end of year 46.882 23.129

Investment in group enterprises

Ownership Share Capital Equity Result for the year

TDKK TDKK

Softflow Hungary Kft., Pecs, Hungary 100% 4,020 MHUF 105.767 5.045

11 Deposits

Deposits

TDKK

Cost beginning of year 303

Additions for the year 8

Cost end of year 311

Carrying amount end of year 311

16

Notes to the Annual Report

2025

2024

TDKK TDKK

12 Inventories

Raw materials and consumables 129.465 93.563

Work in progress 59.190 55.412

Manufactured goods and goods for resale 112.880 113.537

301.535 262.512

13 Other short-term receivables

VAT 11.908 7.333

Other receivables 4.775 3.841

16.683 11.174

14 Prepayments

Other prepayments

8.132

5.359

8.132 5.359

15 Contributed Capital

Contributed capital is composed as follows:

41,000 units of shares of DKK 500 20.500 20.500

16 Provision for deferred tax liabilities

Fixed assets 13.339 20.140

Inventories 4.702 4.992

Provisions -263 -1.159

Prepayments and accruals -1.237 -1.953

16.541 22.019

There has not been any capital changes for the last 5 years.

17

Notes to the Annual Report

2025 2024

TDKK TDKK

17 Other provisions

Provisions for warranty 6.428 7.623

6.428 7.623

18 Non-current liabilities other than provisions

All long term debt falls due between 1 and 5 years - 9.099

- 9.099

19 Deferred income

Service contracts 5.623 7.887

Other 3.732 2.109

9.355 9.996

20 Contingent assets and liabilities

Le as e co mmit men t s 1.388 2.244

1.388 2.244

Guarantees etc.:

Purchase obligations under longterm

agreements do not exceed

115.934 73.832

Security concerning credit cards

1.445

The parent company and its Danish subsidiaries are a part of a Danish joint taxation of which N. FOSS & Co. A/S

is the administrative entity. The company is liable f or potential obligations f or withholding taxes on interest,

r

oyalties and dividends and from January 1st, 2013 for company taxes within the joint taxation according to

the company taxation law.

18

Notes to the Annual Report

21 Related parties

22 Ownership and group relationship

All shares are owned by:

FOSS A/S, Hillerød, De nma rk

23

24 Subsequent events

No events have occured after the balance sheet date to this date, which would influence the evaluation of

this annual report.

In accordance with The Danish Financial Statements Act § 71 it shall be stated that, the C ompa n y 's annual report is included in the

consolidated financial statement of FOSS A/S, Hillerød, De nma r k (CVR no. 59388517) and the ultimative parent company N. Foss &

Co. A/S, Hillerød, Denmark (CVR no. 87974618).

In accordance with section 96(3) of the Danish Financial Statements Act, the company does not provide a specification of fees to the

auditor appointed by the general meeting, as this information is disclosed in the consolidated financial statements of FOSS A/S.

Fee to auditors appointed at the annual general meeting

FOSS A/S and N. FOSS & Co. A/S are related parties and have controlling interest in the Company.

FOSS Analytical A/S has disclosed all transactions with related parties during the financial year in accordance with the Danish Financial

Statement Act.

Sales of goods for the year 2025 amounted to TDKK 1.568.347.

Purchase of services for the year amounted to TDKK 135.910.

Intercompany balances at 31 December 2025 amount to receiv able TDKK 415.011 and paybale TDKK 150.083. These balances

accrue interest at market terms.

Transactions with key ma na g e men t personnel have been executed in the form or remuneration. Detailed disclosure are provided in

Note 2.

19

Accounting Principles

Basis of preparation

This annual report has been prepared in accordance with the provisions of the Danish Financial Statements

Act governing reporting class C enterprises (large).

Referring to section 112 (2) of the Danish Financial Statements Act, no consolidated financial statements have

been prepared, as the Company is included in FOSS A/S consolidated financial Statements.

The accounting policies for these financial statements are consistent with those applied last year.

The annual report is prepared in thousands DKK.

The Company has made certain reclassifications to the income statement for the comparative period. These

reclassifications had no impact on the net income for the year or on equity.

Recognition and measurement

Assets are recognized in the balance sheet when it is probable as a result of a prior event that future economic

benefits will flow to the Company, and the value of the assets can be measured reliably.

Liabilities are recognized in the balance sheet when the Company has a legal or constructive obligation as a

result of a prior event, and it is probable that future economic benefits will flow out of the Company, and the

value of the liabilities can be measured reliably.

On initial recognition, assets and liabilities are measured at cost. Measurement subsequent to initial recognition

is affected as described below for each financial statement item.

Anticipated risks and losses that arise before the time of presentation of the annual report and that confirm

or invalidate affairs and conditions existing at the balance sheet date are considered at recognition and meas-

urement.

Income is recognized in the income statement when earned, whereas costs are recognized by the amounts

attributable to this financial year.

Foreign currency translation

On initial recognition, foreign currency transactions are translated applying the exchange rate at the transac-

tion date. Receivables, payables and other monetary items denominated in foreign currencies that have not

been settled at the balance sheet date are translated using the exchange rate at the balance sheet date.

Exchange differences that arise between the rate at the transaction date and the one in effect at the payment

date or the rate at the balance sheet date are recognized in the income statement as financial income or

financial expenses. Property, plant and equipment, intangible assets, inventories and other non-monetary

assets that have been purchased in foreign currencies are translated using historical rates.

When recognizing associates that are independent entities, the income statements are translated at average

exchange rates for the months that do not significantly deviate from the rates at the transaction date. Balance

sheet items are translated using the exchange rates at the balance sheet date.

20

Income statement

Revenue

Revenue from the sale of manufactured goods and goods for resale is recognized in the income statement

when delivery is made, and risk has passed to the buyer.

Revenue from service agreements is recognized on a straight-line basis over the contract period, as the service

obligation is delivered evenly over time. Invoiced amounts relating to future periods are recognized as deferred

income.

Revenue is recognized net of VAT, duties and sales discounts and measured at fair value of the consideration

fixed.

Other operating income

Other operating income and expenses comprise income and expenses of a secondary nature viewed in relation

to the Company’s primary activities, including subsidies, rental income, license income, etc.

Expenses for raw materials and consumables

Expenses for raw materials and consumables comprises costs of sales for the financial year measured at cost,

adjusted for ordinary inventory write-downs.

Other external expenses

Other external expenses comprise expenses for distribution, sale, marketing, administration, premises, bad

debts, etc.

Other external expenses also include research costs, costs of development projects that do not meet the

criteria for recognition in the balance sheet, and amortization of recognized development projects.

Staff costs

Staff costs comprise salaries and wages as well as social security costs, pension contributions, etc. for the

Company’s staff.

Other financial income and expenses

These items comprise interest income and expenses, realized and unrealized capital gains and losses on pay-

ables and transactions in foreign currencies as well as tax surcharge and tax relief under the Danish Tax

Prepayment Scheme.

Income taxes

Tax for the year, which consists of current tax for the year and changes in deferred tax, is recognized in the

income statement by the portion attributable to the profit for the year and recognized directly in equity by the

portion attributable to entries directly in equity. The portion of the tax taken to the income statement, which

relates to extraordinary profit/loss for the year, is allocated to this entry whereas the remaining portion is

taken to the year’s profit/loss from ordinary activities.

The current tax payable or receivable is recognized in the balance sheet, stated as tax calculated on this year’s

taxable income, adjusted for prepaid tax.

Deferred tax is recognized on all temporary differences between the carrying amount and tax-based value of

assets and liabilities, for which the tax-based value of assets is calculated based on the planned use of each

asset.

Deferred tax is measured based on the tax regulations and tax rates that will be in effect, using the laws at

the balance sheet date, when the deferred tax is estimated to be triggered as current tax. Changes in deferred

tax resulting from changed tax rates are recognized in the income statement.

21

Deferred tax assets, including the tax base of tax loss carry forwards, are recognized in the balance sheet at

their estimated realizable value within 3-5 years, either as a set-off against deferred tax liabilities or as net tax

assets.

Deferred tax relating to re-taxation of previously deducted losses of foreign subsidiaries is recognized based

on a specific assessment of the purpose of the individual subsidiary.

Balance Sheet

Intangible assets

Intangible assets comprise acquired intellectual property rights in form of of patents and licenses.

Acquired intellectual property rights in the form of patents and licenses are measured at cost less accumulated

amortization and impairment losses. Patents are amortized over their remaining duration, and licenses are

amortized over the term of the agreement, but over no more than 7 years.

Intangible assets are written down to the lower of recoverable amount and carrying amount.

Profits and losses from the sale of intangible assets are calculated as the difference between selling price less

selling costs and the carrying amount at the time of sale. Profits or losses are recognized in the income

statement as an adjustment to amortization and impairment losses, or under other operating income if the

selling price exceeds original cost.

Tangible Assets

Property, plant and equipment

Plant and machinery as well as other fixtures and fittings, tools and equipment are measured at cost less

accumulated depreciation and impairment losses. Land is not depreciated.

Cost comprises the acquisition price, costs directly attributable to the acquisition, and preparation costs of the

asset until the time when it is ready to be put into operation.

The basis of depreciation is cost less estimated residual value after the end of useful life. Straight-line depre-

ciation is made on the basis of the following estimated useful lives of the assets:

Plant and machinery 3-5 years

Other fixtures and fittings, tools and equipment 3-5 years

Leasehold improvements through the rental period

Property, plant and equipment are written down to the lower of recoverable amount and carrying amount.

Profits and losses from the sale of property, plant and equipment are calculated as the difference between

selling price less selling costs and carrying amount at the time of sale. Profits or losses are recognized in the

income statement as adjustment to depreciation and impairment losses, or under other operating income if

the selling price exceeds original cost.

Investments in subsidiaries and associates

Investments in subsidiaries and associates are recognized and measured under the equity method. This means

that investments are measured at the pro rata share of the enterprises’ equity plus or less unamortized posi-

tive, or negative, goodwill and plus or less unrealized intra-group profits or losses.

The Parent's share of the enterprises' profits or losses after elimination of unrealized intra-group profits and

losses and less or plus amortization of positive, or negative, goodwill is recognized in the income statement.

22

Subsidiaries and associates with a negative equity value are measured at zero value, and any receivables from

these enterprises are written down by the Parent’s share of such negative equity if it is deemed irrecoverable.

If the negative equity exceeds the amount receivable, the remaining amount is recognized under provisions if

the Parent has a legal or constructive obligation to cover the liabilities of the relevant enterprise.

Upon distribution of profit or loss, net revaluation of investments in subsidiaries and associates is transferred

to reserve for net revaluation according to the equity method under equity.

Inventories

Inventories are measured at the lower of cost using the FIFO method and net realizable value.

Cost of goods for resale, raw materials and consumables consists of purchase price plus delivery costs. Cost

of manufactured goods and work in progress consists of costs of raw materials, consumables and direct labor

costs as well as indirect production costs.

Indirect production costs comprise indirect materials and labor costs, costs of maintenance of and depreciation

and impairment losses on machinery, factory buildings and equipment applied for the manufacturing process

as well as costs of factory administration and management. Financing costs are not included in cost.

The net realizable value of inventories is calculated as the estimated selling price less completion costs and

costs incurred to execute sale.

Receivables

Receivables are measured at amortized cost, usually equalling nominal value less provisions for bad debts.

Prepayments

Prepayments comprise incurred costs relating to subsequent financial years. Prepayments are measured at

cost.

Dividend

The proposed dividend for the financial year is disclosed as a separate item in equity.

Other provisions

Other provisions comprise anticipated warranty commitments.

Other provisions are recognized and measured as the best estimate of the expenses required to settle the

liabilities at the balance sheet date. Provisions that are estimated to mature more than one year after the

balance sheet date are measured at their discounted value.

Warranty commitments comprise commitments to remedy defects and deficiencies within the guarantee pe-

riod.

Provision for negative equity value of subsidiaries are measured at the amount exceeding any receivables from

the subsidiaries.

Lease commitments

Lease payments on operating leases are recognized on a straight-line basis in the income statement over the

term of the lease.

Other financial liabilities

Other financial liabilities are recognized at amortized cost which usually corresponds to nominal value.

23

Deferred income

Def

erred income comprises received income for recognition in subsequent financial years. Deferred income is

measured at cost.

Cash flow statement

Cash flow statement has not been prepared for the Company, with reference to section 86 (4) in the Danish

Financial Statements, as the cash flow is included in the cash flow statement of FOSS A/S consolidated financial

statements.

Financial highlights

The financial ratios have been calculated as follows:

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