MOVING FORWARD IN POWER AND MOTION
ANNUAL REPORT
HydraSpecma 2024
HydraSpecma A/S · Company reg. ( CVR ) no.: 87552411
The annual report is considered and approved
at the company’s annual general meeting at 10 April 2025
Conductor
Annual report 2024 | 1
Contents
Management's statement and auditor's report
Management’s Statement 2
Independent Auditor’s Report 3
Management’s report
Company information 6
Group overview 7
Key figures and financial ratios 8
Management’s commentary 10
Consolidated financial statements
Statements of income and comprehensive income 16
Balance sheet 17
Cash flow statement 19
Statement of changes in equity 20
Notes 21
Parent company financial statements
Statements of income and comprehensive income 60
Balance sheet 61
Cash flow statement 63
Statement of changes in equity 64
Notes 65
Annual report 2024 | 2
Management's statement and auditor's report
Management’s Statement
The Board of Directors and Executive Board have today considered and adopted the Annual Report of Hy-
draSpecma A/S for the financial year 1 January – 31 December 2024.
The Consolidated Financial Statements and the Parent Company Financial Statements have been prepared
in accordance with IFRS Accounting Standards as adopted by the EU and further requirements in the Danish
Financial Statements Act. Management’s Review has been prepared in accordance with the Danish Financial
Statements Act.
In our opinion, the Consolidated Financial Statements and the Parent Company Financial Statements give a
true and fair view of the financial position at 31 December 2024 of the Group and the Parent Company and of
the results of the Group and Parent Company operations and cash flows for 2024.
In our opinion, Management’s Review includes a true and fair account of the development in the operations
and financial circumstances of the Group and the Parent Company, of the results for the year and of the
financial position of the Group and the Parent Company.
We recommend that the Annual Report be adopted at the Annual General Meeting.
Skjern, 6 March 2025
Executive management:
Morten Kjær Graakjær Henrik Sillesen
Group CEO Group Director - EVP
Board of Directors
Jens Bjerg Sørensen Peter Kjær Kurt Bering Sørensen
Chairman
Jørgen Wisborg Carsten Thygesen
Annual report 2024 | 3
Management's statement and auditor's report
Independent Auditor’s Report
To the Shareholders of HydraSpecma A/S
Opinion
In our opinion, the Consolidated Financial Statements and the Parent Company Financial Statements give a
true and fair view of the Group’s and the Parent Company’s financial position at 31 December 2024 and of the
results of the Group’s and the Parent Company’s operations and cash flows for the financial year 1 January to
31 December 2024 in accordance with IFRS Accounting Standards as adopted by the EU and further require-
ments in the Danish Financial Statements Act.
We have audited the Consolidated Financial Statements and the Parent Company Financial Statements of
HydraSpecma A/S for the financial year 1 January - 31 December 2024, which comprise income statement
and statement of comprehensive income, balance sheet, statement of changes in equity, cash flow statement
and notes, including material accounting policy information, for both the Group and the Parent Company (“fi-
nancial statements”).
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional re-
quirements 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 Group in accordance with the International Ethics Standards Board for Accountants’
International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical require-
ments 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 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 Consol-
idated Financial Statements and the Parent Company Financial Statements and has been prepared in accord-
ance with the requirements of the Danish Financial Statements Act. We did not identify any material misstate-
ment in Management’s Review.
Management’s Responsibilities for the Financial Statements
Management is responsible for the preparation of Consolidated Financial Statements and Parent Company
Financial Statements that give a true and fair view in accordance with IFRS Accounting Standards as adopted
by the EU and further requirements in 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 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 financial statements unless Management
either intends to liquidate the Group or the Parent Company or to cease operations, or has no realistic alter-
native but to do so.
Annual report 2024 | 4
Independent Auditor’s Report
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, indi-
vidually or in the aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of these financial statements.
As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark,
we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
> Identify and assess the risks of material misstatement of the financial statements, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
> Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Group’s and the Parent 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 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 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 condi-
tions 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 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 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
Consolidated 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.
Annual report 2024 | 5
Independent Auditor’s Report
Auditor’s Responsibilities for the Audit of the Financial Statements (continued)
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.
Århus, 6 March 2025
PricewaterhouseCoopers
Statsautoriseret Revisionspartnerselskab
CVR No 33 77 12 31
Claus Lindholm Jacobsen Palle H. Jensen
State Authorised Public Accountant State Authorised Public Accountant
mne23328 mne32115
Annual report 2024 | 6
Management’s report
Company information
HydraSpecma A/S
Bækgårdsvej 36
6900 Skjern, Denmark
Tel.: +45 97 35 05 99
E-mail: HSDK@hydraspecma.com
Website: www.hydraspecma.com
Company reg. (CVR) no.: 87 55 24 11
Founded: 7 June 1978
Municipality of
registered office: Ringkøbing-Skjern
Board of Directors
Jens Bjerg Sørensen, Chairman
Peter Kjær
Kurt Bering Sørensen
Jørgen Wisborg
Carsten Thygesen
Executive Management
Morten Kjær Graakjær, Group CEO
Henrik Sillesen, Group Director - EVP
Auditors
PricewaterhouseCoopers
Statsautoriseret Revisionspartnerselskab
Jens Chr. Skous Vej 1
8000 Aarhus C, Denmark
Date of annual general meeting
Annual General Meeting to be held on 10 April 2025.
Annual report 2024 | 7
Management’s report
Overview of group companies
Subsidiaries
Associates
Passive Companies
HydraSpecma Renewables
(Tianjin) Co.,Ltd., China
100%
HydraSpecma USA Inc.,
USA
100%
Systems (Tianjin) Co., Ltd,
China, 100%
HydraSpecma Hydraulics
India Pvt. Ltd., India, 100%
HydraSpecma Renewables
India Pvt. Ltd, India
100%
Dansk Afgratningsteknik
A/S.,
Denmark, 100%
HydraSpecma Polska Sp.
Z.o.o, Poland
100%
HydraSpecma A/S, Denmark
HydraSpecma Wiro AB,
Sweden
100%
HydraSpecma Component
AB, Sweden
100%
HydraSpecma AB, Sweden
100%
HydraSpecma ASIA Ltd.,
China
100%
HydraSpecma BV,
Netherlands
100%
HydraSpecma Hydraulic U.S
Inc, USA
100%
HydraSpecma Hydraulic
(Shanghai) Co. Ltd, China,
100%
HydraSpecma Renewables
AB, Sweden
100%
HydraSpecma Renewables
inc., USA
100%
HydraSpecma Produc-
tion BV, Netherlands
100%
HydraSpecma Samwon Ltd,
UK
100%
HydraSpecma Do Brasil
Mangueiras Hidraulicas Ltda,
Brazil, 90%
Specma Fastighets AB
100%
HydraSpecma OY, Finland
100%
Young Tech Company Ltd.,
South Korea
30%
NGIN A/S, Denmark
40%
HydraSpecma Norge AS
100%
Micron Specma India
(Pvt.) Ltd., India
25%
Annual report 2024 | 8
Management’s report
Key figures and financial ratios for the group
All amounts in DKK’000 2024 2023 2022 2021 2020
Revenue and income
Revenue 3,031.1 2,971.6 2,536.3 2,315.5 1,977.2
Gross profit 783.1 732.5 669.3 598.3 495.1
EBITDA 338.5 323.2 306.2 286.1 210.8
EBIT 202.8 199.7 211.4 191.0 123.0
Net financials (66.5) (39.7) (13.0) (9.4) (41.2)
Profit for the year 98.1 128.2 157.0 142.8 62.5
Invested capital and financing
Total non-current assets 1,219.6 1,257.7 654.6 691.0 695.4
Total current assets 1,528.3 1,560.2 1,290.5 1,274.6 1,029.1
Total assets 2,747.9 2,817.9 1,945.1 1,965.5 1,724.4
Investments in property, plant and equipment
76.0 165.7 54.8 83.7 98.8
Total equity 1,036.7 980.2 755.1 692.3 574.8
Non-current liabilities 427.3 758.2 461.3 432.1 459.0
Current liabilities 1,283.9 1,079.5 728.7 841.1 690.6
Net interest-bearing debt 957.5 1,099.9 654.8 714.5 696.3
Cash flows
Cash flows from operating activities 286.9 190.7 190.5 75.4 197.1
Cash flows from investing activities (89.2) (646.3) (69.5) (62.3) (113.4)
Cash flows from financing activities (172.7) 502.0 (119.6) (5.0) (92.5)
Cash flows for the year 25.1 46.4 1.4 8.2 (8.8)
Financial data
EBITDA margin 11.2% 10.9% 12.1% 12.4% 10.7%
Profit margin 6.7% 6.7% 8.3% 8.2% 6.2%
ROIC excluding goodwill 13.5% 13.4% 17.6% 17.5% 12.8%
ROIC including goodwill 11.6% 11.5% 16.0% 15.7% 11.1%
Current ratio 119.0% 144.5% 177.1% 151.5% 149.0%
Equity ratio 37.7% 34.8% 38.8% 35.2% 33.3%
Return on equity 9.7% 14.8% 21.7% 22.5% 11.3%
Average number of employees 1,466 1,452 1,274 1,195 1,161
Annual report 2024 | 9
Accounting policies
The key figures and financial ratios provided in the preceding table were calculated as follows:
EBITA
Earnings before Interest, Taxes and
Amortazation
EBITDA margin:
Profit margin
ROIC excluding goodwill:
ROIC including goodwill:
Current ratio:
Equity ratio:
Return on equity:
EBITDA x 100
Revenue
EBIT x 100
Revenue
EBITA
Avg. Invested capital excluding goodwill
EBITA
Avg. Invested capital including goodwill
Current assets x 100
Current debt
Total equity at year end x 100
Total assets
Profit for the year x 100
Average equity
Annual report 2024 | 10
Management commentary
The group main activities
HydraSpecma is a specialised hydraulic, cooling & electric solutions and components company, who deliver
to both aftermarket and OEM-customers with roots in the Nordic countries. HydraSpecma has the markets
largest product assortment from both branded suppliers and own production, and deliver and develop custom-
ized products to hydraulic solutions, electrification, turnkey solutions and systems, central lubrication, mani-
folds, pipes, hoses, and fittings. As well as cooling systems, filtration and lubrication systems, pitch hydraulic
systems and connectors.
HydraSpecma Group is the umbrella for 3 divisions working with customer segments within: Renewables,
Global OEM, and Nordic IAM & OEM. From these divisions, HydraSpecma, serves industries such as Com-
mercial Vehicles, Wind Turbine Generator, Construction Equipment, Marine, Material Handling, Agri-culture,
Forestry, and many others.
Headquartered in Skjern, Denmark, HydraSpecma employs nearly 1,500 people in 11 countries world-wide.
The company is owned by Schouw & Co. and is listed on the Nasdaq Copenhagen.
HydraSpecma divide activities into three divisions, Renewables, Global OEM and Nordic IAM & OEM, operat-
ing in the following business segments:
>
Renewables:
> Global OEM:
Products and systems directly connected to the Renewables in-
dustry, with focus on Wind turbines, Solar and Power-to-X produc-
tion and aftermarket.
High volume hydraulic systems and fluid conveyance solutions for
customers with a global reach and comprehensive quality require-
ments, inside the segments Mobile hydraulics and Power systems,
to customers from the truck, bus, construction equipment, material
handling, marine, mining, defence industry.
> IAM & OEM:
Hydraulic Systems and fluid conveyance solutions for our custom-
ers with primarily a national reach and higher demands in regard to
proximity and availability, both national manufacturers as well as
walk-in customers in our Nordic Store set-up.
Headlines for the Group in 2024
Year 2024
Overall HydraSpecma maintained stable activity during 2024, achieving a 2% revenue growth compared to
the previous year. The Renewables Division performed exceptionally well, achieving nearly 16% growth, driven
by HydraSpecma's success in securing a key position on the right customer platforms throughout the year.
The Global OEM Division faced a challenging 2024 as anticipated, with market activity declining from the high
levels of 2023, which were supported by substantial backlogs from major customers, particularly in the OEM-
Mobile segment. Overall, the division experienced an 7% decrease in activity compared to last year, with a
more significant decline in the OEM-Mobile segment, where the market dropped sharply. HydraSpecma have
not been able to fully offset the decline with new business from existing or new customers. However, the Power
Systems segment within Global OEM achieved strong growth, driven by demand from the Marine and Defence
customer groups. In the Nordic IAM/OEM Division, the Swedish and Finnish markets faced challenges in 2024
due to the market conditions affecting HydraSpecma's customers and a prolonged logistics strike in Finland in
the spring. Similar market trends were observed in Norway and Denmark. In Norway, the impact was mitigated
by a minor acquisition, while in Denmark, high activity levels related to wind installation equipment helped
offset market pressures.
The supply chain improved in 2024, aided by a generally lower market demand, increased supplier capacity,
and a persistent focus on procurement within HydraSpecma.
Annual report 2024 | 11
Management commentary
Investments made in recent years in new facilities, logistics, and automation have significantly enhanced Hy-
draSpecma's agility and efficiency. The benefits of these investments contributing in 2024 to improved opera-
tional performance.
On February 1, 2023, HydraSpecma acquired the wind turbine business of the Swedish industrial company
Ymer Technology. Following the acquisition, HydraSpecma initiated an integration process to merge the ac-
quired activities with its existing wind turbine operations under the newly established Renewables Division.
This included the consolidation of acquired entities in India, China, and Denmark with HydraSpecma’s existing
operations in these regions to optimize efficiency and streamline operations.
The integration of companies within the Renewables Division is progressing as planned. In Denmark, the
integration process has been finalized with HydraSpecma ApS merging into HydraSpecma A/S. In India, op-
erations of the two companies have been successfully consolidated. Additionally, in Q2 2024, HydraSpecma
expanded its production capacity by inaugurating a 2,000 m² extension at its facility in Oragadam, near Chen-
nai, India. In China, the two units in the Tianjin area have been unified under a single management team and
IT platform, streamlining operations.
At the end of Q2 2024, HydraSpecma acquired Agder Slangeservice AS, a retail and mobile service company
based in Kristiansand, Norway, with annual revenue of approximately DKK 10 million. The company, which
has historically focused on selling HydraSpecma products, aligns with the company’s market strategy for Nor-
way. The integration of Agder Slangeservice AS was completed in December 2024, with the company now
fully merged into HydraSpecma Norway AS. HydraSpecma have also acquired the last 40% of the shares in
Dansk Afgratningsteknik A/S in Q4 2024 and are now 100% owner of the company.
P&L 2024
HydraSpecma realised a revenue of DKK 3,031 million for 2024 compared to DKK 2,972 million last year.
EBITDA for the year amounted to DKK 339 million, up from DKK 323 million in 2023. EBITDA 2023 was
affected by adjustments for purchase price allocation (PPA) on DKK 15 million. EBIT for the year was DKK
203 million against DKK 200 million last year.
Financial expenses increased in 2024 compared to 2023, primarily due to the full-year impact of large invest-
ments made in 2023 and a currency loss of nearly DKK 7 million, compared to a currency gain of DKK 2 million
in last year. As a result, profit before tax for 2024 was DKK 136 million, compared to DKK 162 million in 2023.
The profit after tax was DKK 98 million, compared to DKK 128 million in the previous year.
Revenue for 2024 was within the span of both the original guidance. The year’s EBITDA performance was
satisfactory, falling within the upper range of both the original guidance.
Investing activity in 2024
Investment activities during the year included the installation of solar panels at the new facility in Stargard,
Poland, general facility renovations, automation, capacity expansion, and replacement of equipment. Hy-
draSpecma also capitalized significant new development projects for customers.
The investment in new development follows a robust stage-gate model, with activated development projects
continually re-evaluated. As a result, HydraSpecma adjusted activated development costs by over DKK 1
million in 2024 for projects deemed uncertain.
Balance sheet, cash flows and interest-bearing debt in 2024
Working capital decreased from DKK 934 million on 31 December 2023 to DKK 884 million on 31 December
2024. This improvement was driven by a strong focus on inventory management, resulting in a DKK 95 million
reduction in inventory levels.
The company funds ongoing capital needs through the credit facilities of its ultimate parent company Schouw
& Co.
Annual report 2024 | 12
Management commentary
Balance sheet, cash flows and interest-bearing debt in 2024 (continued)
Cash flows from operations for 2024 was DKK 287 million which is an increase of DKK 96 million compared
to last year. The improvement was driven by a strong profitability and positive impact from net working capital,
especially from decrease of inventory.
Return on Invested Capital (ROIC), excluding goodwill, was 13.5% at 31. December 2024, showing a minor
increase from 13.4% last year.
Equity improved by DKK 57 million reaching DKK 1.037 million after a DKK 25 million dividend payment to the
parent company. The return on equity for the year was 9.7%, compared with 14,8% last year.
Events subsequent to the financial year-end
The previous facility in Poland has been sold in January 2025. The profit from the sales will be between DKK
12-13 million, depending on the final costs associated with the sale.
Outlook for 2025
The market outlook remains uncertain across all three divisions. The Renewables Division anticipates a strong
performance in the first half of the year, followed by a slowdown in activity. There is, of course, significant
uncertainty regarding the U.S. market, at the moment, but HydraSpecma do not expect substantial impact in
2025. In the Global OEM Division, the positive momentum in Power Systems is expected to continue. However,
in OEM-Mobile, growth continues to displace forward, with activity projected to soften during the 1
st
quarter
and stabilize in the 2
nd
quarter, even after the start-up of new business with both new and existing customers.
Customer forecasts indicate growth in the 2
nd
half of the year. A similar trend is expected in Nordic IAM/OEM,
which faced challenges in 2024, particularly in Norway, Sweden, and Finland. Overall, total revenue for 2025
is estimated to remain within the same range as 2024.
To optimize the right footprint and to reduce the numbers company structure, the two Chinese units in the
Tianjin area have been unified under same management team and IT platform, and all activity will be merged
in February 2025, which will streamline operation and enhance efficiency. Furthermore, Dansk Afgratning-
steknik A/S will be merged into HydraSpecma A/S in the beginning of 2025.
In response to increased competition from Asia, which is impacting the entire industry, HydraSpecma has
launched several development and operational initiatives to maintain its position as an attractive partner for
Renewables customers. With a more agile production setup in place, HydraSpecma will transfer production
across its group production facilities in 2025 to ensure the right local presence, flexibility, enhanced competi-
tiveness, and improved production efficiency.
As a result, HydraSpecma expects to generate FY 2025 a revenue of DKK 2,9-3.2 billion and EBITDA in the
DKK 330-360 million range including the profit from the sold facility in Poland.
Capital resources
The company is predominately financed by resources of the parent company Schouw & Co. as well as a
number of committed and to a lesser extent uncommitted credit facilities.
The parent company’s source of financing is primarily composed of a syndicated banking facility, which in
December 2020 was refinanced with a total facility framework of DKK 3,275 million. The facility expires 10th
of January 2026 and has an outstanding of DKK 1.223 million.
In April 2019 and in November 2023, Schouw & Co. issued Schuldschein transactions of EUR 136 million, and
EUR 225 million. The amount outstanding on the Schuldscheins is EUR 252 million (DKK 1,879 million) with
expiries in April 2026, November 2026, November 2028 and November 2030.
In December 2021, a loan was established for a total of DKK 400 million with Nordic Investment Bank for
specific capacity and development investments. The loan has an outstanding of DKK 356 million and expires
in December 2028
In 2022 and 2023, Schouw & Co. established a number of term loans. Of these loans only one loan remains
with an outstanding amount of DKK 350 million and expiry in January 2025.
Annual report 2024 | 13
Management commentary
Capital resources (continued)
In June 2024, Schouw & Co. issued a bond in the Norwegian bond market with a nominal value of NOK 1,300
million. The bond was further supplemented with an additional NOK 500 million in September 2024 to a total
of NOK 1,800 million (DKK 1,161 million). To eliminate any currency risk, the nominal amount and all future
interest payments is swapped to DKK.
The company, like other major subsidiaries in Schouw & Co., co-guarantees the aforementioned facilities to-
taling DKK 7.020 million, where of DKK 4,969 million is utilized per 31/12-2024. In addition, a smaller facility
totaling DKK 43 million is guaranteed, where of DKK 34 million is utilized.
Debtor risk
Debtor creditworthiness is carefully monitored on an ongoing basis, and we perform in-depth credit assess-
ments of new customers and ongoing assessments of existing customers based on the risk in recent years.
We have insured some of our customers’ debts in some of our companies. For several years, HydraSpecma
has not recorded any material debtor losses.
Furthermore, debtor insurance regarding existing and new customer portfolios is reviewed on a current basis.
Risk factors
HydraSpecma has prepared a risk assessment of its business and IT-related matters. Based on the risk as-
sessment, the company has prepared action plans for mitigating risks in specific areas.
Financial risks are described in note 24.
Financial risks
As a consequence of its operations, investments and financing, the Group is exposed to changes in the level
of interest and exchange rates. The Parent Company manages the financial risks of the Group centrally and
also coordinates the cash management of the Group, including funding and investment of surplus liquidity.
The Group pursues a Board-approved finance policy operating with a low risk profile so that currency exposure,
interest rate exposure and credit risks arise only based on commercial matters.
Foreign exchange risks
The Group is affected by changes in exchange rates as foreign subsidiaries’ results and equity at year-end
are translated into DKK on the basis of average exchange rates and the exchange rate at the balance sheet
date, respectively. The Group’s currency exposure is primarily covered by an internal cash pool.
IT
HydraSpecma continued the focus on strengthening IT security during 2024, at both user and system levels,
on enhancing communications between group companies, reducing the number of ERP systems and on pre-
paring a joint infrastructure for all group companies. HydraSpecma have started to be NIS2 compliant.
R&D operations
On a regular basis, the company develops products within its main business areas in collaboration with cus-
tomers to provide solutions for new or amended, large or small systems as well as product optimisation solu-
tions to improve customer processes. Some of the solutions are developed for the customers and others are
developed with customers. R&D projects also include purely electronic and hybrid solutions for Power & Mo-
tion involving both hydraulic and electric components. We have a limited own development of products within
cooling, where we have obtained a patent.
Quality assurance
HydraSpecma holds ISO certification to current standards, and all companies are certified to ISO 9001:2015.
The companies that are suppliers to lorries and busses are also certified to IATF 16949.
Quality targets are applied in all parts of the supply chain, and new targets are set every year with defined
responsibilities. The work and follow-up on these targets contribute to ongoing improvements. Quality assur-
ance efforts also include preventive activities.
Annual report 2024 | 14
Management commentary
Knowledge resources
It is an essential prerequisite for the continued development of our business that we are able to attract, retain,
develop and motivate employees who have the necessary skills and capability. Important elements to support
this include the delegation of responsibility and competencies as well as cross-organisational solutions.
Corporate responsibility and risk assessment
HydraSpecma has defined the group’s goals in terms of human rights, social and employee-related matters,
anti-corruption, business ethics as well as climate and the environment in cooperation with the parent company
Schouw & Co.
For HydraSpecma’s statutory reports on corporate responsibility and risk assessment pursuant to section 99a
of the Danish Financial Statements Act, please refer to the statutory report of Schouw & Co. The report is
available on HydraSpecmas website: https://www.hydraspecma.com/store/dk/en/cms/dk-en/our-dna/re-
sponsibility-sustainability.
Social issues and labour conditions
At HydraSpecma, we believe that results are created by people. We are committed to being a responsible
employer providing proper employment conditions, appropriate health and safety standards and a motivational
working environment for our employees.
> Accordingly, we do not accept child labour.
> We have committed to providing a safe and healthy working environment and, to that end, we take the
necessary steps to prevent industrial injuries.
> We respect the freedom of association and the right to collective bargaining.
> We observe applicable laws, rules and agreements on working hours, wages and salaries and holi-
days.
HydraSpecma’s code of conduct can be found on the HydraSpecma website.
https://www.hydraspecma.com/media/3273/hs-web_en_policy_coc-employee_2024-05.pdf.
Human rights
HydraSpecma has business units in a number of countries around the world. Regardless of which country we
are in, we are committed to observing human rights and to treating our employees with dignity and respect.
We support and respect human rights as set out in the UN Universal Declaration of Human Rights and in the
conventions and recommendations of the ILO. All major companies of the HydraSpecma group are certified
to ISO 45001.
HydraSpecma’s code of conduct can be found on the HydraSpecma website.
https://www.hydraspecma.com/media/3273/hs-web_en_policy_coc-employee_2024-05.pdf.
Anti-corruption and business ethics
HydraSpecma endeavours to maintain a high level of integrity and demonstrate ethical conduct. We combat
all forms of corruption, including bribery and facilitation payments.
Environmental matters and climate impact
The companies of the HydraSpecma group are involved in large-scale processing of commodities, and we
recognise the environmental impact of our production processes. Our ESG approach to climate and the envi-
ronment goes hand in hand with appropriate business acumen. We endeavour to protect the environment and
to continually reduce our emissions relative to production output.
In 2024, HydraSpecma earned the EcoVadis Commitment Badge and is now aiming for a Bronze rating in
2025. As part of HydraSpecmas sustainability efforts, HydraSpecma has installed solar panels and heat pumps
at its facility in Poland, enabling carbon-neutral production on an annual basis. Additionally, HydraSpecma has
Annual report 2024 | 15
Environmental matters and climate impact (continued)
applied for permission to install solar panels at its production facility in India, with the goal of achieving carbon-
neutral production there as well.
All major manufacturing companies of the HydraSpecma group are certified to ISO 14001.
Our goals are to:
> reduce the overall environmental footprint of our value chain relative to production output
> reduce our energy consumption and carbon emissions relative to production output
> achieve more efficient use of materials
> reduce waste and increase recycling relative to production output.
HydraSpecma’s Environmental policy can be found on the HydraSpecma website.
https://www.hydraspecma.com/media/3272/hs-web_en_policy_environmental_2024-06.pdf.
Data ethics
At HydraSpecma, we believe that maintaining the highest standards of data integrity and transparency is es-
sential to gaining the trust of our business partners, employees and the general public.
HydraSpecma considers data ethics to be a core value for the way we run our business, and that a culture of
accountability is essential for success in a data-driven world that grows more and more complex with the
increasing use of advanced data.
For HydraSpecma’s statutory report on its data ethics policy pursuant to section 99d of the Danish Financial
Statements Act, please refer to the statutory report of Schouw & Co. in that company’s ESG report The report
is available on HydraSpecmas website: https://www.hydraspecma.com/store/dk/en/cms/dk-en/our-
dna/responsibility-sustainability.
1 January - 31 December
Note
2024 2023
1 Revenue
3.031.073 2.971.625
2 Cost of sales
(2.247.953) (2.239.161)
Gross profit
783.120 732.464
4 Other operating income
2.598 4.554
2 Distribution costs
(418.103) (386.774)
2, 3 Administrative expenses
(164.763) (150.457)
4 Other operating expenses
(85) (122)
EBIT
202.767 199.665
5 Profit after tax in associates
(135) 2.158
6 Financial income
8.247 14.425
7 Financial expenses
(74.747) (54.124)
Profit before tax
136.132 162.124
8 Tax on profit/loss for the year
(38.024) (33.887)
Profit for the year
98.108 128.237
Attributable to:
Parent company shareholders
58.779 103.281
Proposed dividend
40.000 25.000
Non-controlling interests
(671) (44)
Profit for the year
98.108 128.237
Statement of comprehensive income
Items that can be reclassified to the income statement:
Foreign exchange adjustments of foreign subsidiaries
(11.601) (6.004)
Value adjustment of hedging instruments for the year
(856) 5.333
Other comprehensive income from associates
(457) (401)
Other adjustments recognised directly in equity
538 (896)
8 Tax on other comprehensive income
188 (1.173)
Other comprehensive income after tax
(12.188) (3.141)
Profit for the year
98.108 128.237
Total recognised comprehensive income
85.920 125.096
Attributable to:
Parent company shareholders
86.591 125.140
Non-controlling interests
(671) (44)
Total recognised comprehensive income
85.920 125.096
Statements of income and comprehensive income
All amounts in DKK’000
Annual report 2024 | 16
Consolidated balance sheet
at 31 December
Note
Assets
31.12.2024 31.12.2023
Goodwill
293.878 299.546
Finished development projects
15.903 4.328
Development projects in progress
11.166 21.624
Customer relations
116.423 136.830
Brands
5.079 10.472
Know-how
119.819 133.156
IT projects
7.753 13.036
9
Intangible assets
570.021 618.992
Land and buildings
350.914 331.898
Plant and machinery
105.628 93.775
Other fixtures and fittings, tools and equipment
40.177 37.137
Assets under construction, etc.
13.254 21.202
2, 10
Property, plant and equipment
509.973 484.012
5 Equity investments in associates
10.898 11.490
11 Lease assets
118.443 136.683
14 Deferred tax
4.039 1.820
Securities
21 21
13 Receivables
6.244 4.637
Other non-current assets
139.645 154.651
Total non-current assets
1.219.639 1.257.655
12 Inventories
649.182 743.904
13 Receivables
767.940 734.302
18 Income tax receivable
9.727 8.079
22 Cash and cash equivalents
101.425 73.938
Total current assets
1.528.274 1.560.223
Total assets
2.747.913 2.817.878
All amounts in DKK’000
Annual report 2024 | 17
Consolidated balance sheet
at 31 December
Note
Liabilities and equity
31.12.2024 31.12.2023
Share capital
30.000 30.000
Hedge transaction reserve
(443) 225
Exchange-adjustment reserve
(108.968) (96.803)
Retained earnings
1.076.864 1.017.547
Proposed dividend
40.000 25.000
Equity attributable to parent company shareholders
1.037.453 975.969
Non-controlling interests
(763) 4.208
Total equity
1.036.690 980.177
14 Deferred tax
82.034 86.795
15 Provisions
9.670 11.562
16 Credit institutions
135.571 159.813
16 Debt to parent company
200.000 500.000
Non-current liabilities
427.275 758.170
16 Current portion of non-current liabilities
45.226 40.637
16 Credit institutions
94 1.610
16 Debt to parent company
710.198 524.284
17 Trade payables and other payables
500.595 491.724
15 Provisions
16.485 11.600
18 Income tax
11.350 9.676
Current liabilities
1.283.948 1.079.531
Total liabilities
1.711.223 1.837.701
Total equity and liabilities
2.747.913 2.817.878
23 - 31
Notes without reference
All amounts in DKK’000
Annual report 2024 | 18
Consolidated cash flow statement
1 January - 31 December
Note
2024 2023
Profit before tax 136.132 162.124
Adjustment for non-cash operating items etc.:
2
Depreciation, amortisation and impairment losses 135.763 123.492
Other operating items, net 23.268 32.737
Provisions 3.374 (631)
5
Profit after tax in associates 135 (2.158)
6
Financial income (8.247) (14.425)
7
Financial expenses 74.747 54.124
Cash flows from operations before changes in working capital 365.172 355.263
19
Changes in working capital 24.307 (73.371)
Cash flows from operations before interest and tax 389.479 281.892
Interest received 3.451 9.138
Interest paid (63.101) (51.834)
Cash flows from ordinary operations 329.829 239.196
18
Income tax paid (42.902) (48.541)
Cash flows from operating activities 286.927 190.655
20
Purchase of intangible assets (8.518) (7.188)
20
Purchase of property, plant and equipment (75.974) (165.682)
Sale of property, plant and equipment 1.272 4.231
Acquisition of minority interests in subsidiaries (3.869) 0
21
Acquisitions (2.070) (477.642)
Cash flows from investing activities (89.159) (646.281)
Loan financing:
Repayment of non-current liabilities (49.945) (39.064)
Increase/repayment of amounts owed to group companies (96.543) 449.870
Increase/repayment of bank overdrafts (1.204) (8.763)
Shareholders:
Capital contribution 0 150.000
Dividends paid (25.000) (50.000)
Cash flows from financing activities (172.692) 502.043
Cash flows for the year 25.076 46.417
Cash and cash equivalents at 1 January 73.938 28.863
Value adjustment of cash and cash equivalents 2.411 (1.342)
22
Cash and cash equivalents at 31 December 101.425 73.938
All amounts in DKK’000
Annual report 2024 | 19
Consolidated statement of changes in equity
At 31 December
Share
capital
Hedge
transac-
tion
reserve
Exchange-
adjustment
reserve
Retained
earnings
Proposed
dividend Total
Non-
controllin
g
interests Equity
Equity at 1 January 2023 30.000 (3.935) (90.425) 765.162 50.000 750.802 4.279 755.081
Changes in equity in 2023
0 0 (5.977) 0 0 (5.977) (27) (6.004)
0 5.333 0 0 0 5.333 0 5.333
0 0 0 (896) 0 (896) 0 (896)
Tax on changes in equity 0 (1.173) 0 0 0 (1.173) 0 (1.173)
0 0 (401) 0 0 (401) 0 (401)
Profit for the year 0 0 0 103.281 25.000 128.281 (44) 128.237
0 4.160 (6.378) 102.385 25.000 125.167 (71) 125.096
Capital contribution 0 0 0 150.000 0 150.000 0 150.000
Distributed dividends 0 0 0 0 (50.000) (50.000) 0 (50.000)
Total changes in equity in 2023 0 0 0 150.000 (50.000) 100.000 0 100.000
Equity at 31 December 2023 30.000 225 (96.803) 1.017.547 25.000 975.969 4.208 980.177
Changes in equity in 2024
0 0 (11.708) 0 0 (11.708) 107 (11.601)
0 (856) 0 0 0 (856) 0 (856)
Tax on changes in equity 0 188 0 0 0 188 0 188
0 0 (457) 0 0 (457) 0 (457)
0 0 0 538 0 538 (4.407) (3.869)
Profit for the year 0 0 0 58.779 40.000 98.779 (671) 98.108
0 (668) (12.165) 59.317 40.000 86.484 (4.971) 81.513
Distributed dividends 0 0 0 0 (25.000) (25.000) 0 (25.000)
Disposal of minority interests 0 0 0 0 0 0 0 0
Total changes in equity in 2024 0 0 0 0 (25.000) (25.000) 0 (25.000)
Equity at 31 December 2024 30.000 (443) (108.968) 1.076.864 40.000 1.037.453 (763) 1.036.690
The share capital comprises 3,000 shares of DKK 10,000 each.
No special rights are attached to any share.
The share capital is fully paid up.
Total recognised comprehensive
income
Foreign exchange adjustments of
entities with functional currencies
other than Danish kroner
Value adjustment of hedging
instruments for the year
Other adjustments recognised
directly in equity
Value adjustment of hedging
instruments for the year
Foreign exchange adjustments of
entities with functional currencies
other than Danish kroner
Other comprehensive income,
associates
Total recognised comprehensive
income
Other adjustments recognised
directly in equity
Other comprehensive income,
associates
All amounts in DKK’000
Annual report 2024 | 20
Notes to the consolidated financial statements
1 January – 31 December
Note
1 Revenue
Segments:
Global OEM
division
Local
IAM/OEM
division
Renewables
division Total
Nordic region
470.621 888.785 339.122 1.698.528
Rest of Europe
371.145 17.361 217.455 605.961
Rest of world
142.678 12.145 571.761 726.584
Revenue i alt 984.444 918.291 1.128.338 3.031.073
Segments:
Global OEM
division
Local
IAM/OEM
division
Renewables
division Total
Nordic region
511.501 897.057 373.353 1.781.911
Rest of Europe
423.708 20.091 171.751 615.550
Rest of world
127.959 14.661 431.544 574.164
Revenue i alt 1.063.168 931.809 976.648 2.971.625
2
Costs
2024 2023
Cost of sales
Cost of sales for the year includes costs of goods sold in the amount of 1.813.422 1.796.729
Cost of sales for the year includes inventory write-downs in the amount of 30.600 27.183
(6.818) (7.519)
Staff costs
Wages, salaries and fees
495.853 479.768
Defined contribution pension plans
55.950 51.055
Other social security costs
80.094 76.263
Share-based payment
3.435 4.309
Total staff costs recognised in the income statement 635.332 611.395
Staff costs are recognised as follows:
Production
291.218 303.228
Distribution
275.121 238.060
Administration
68.993 65.188
Total staff costs recognised in the income statement 635.332 606.476
Average no. of employees
1.466 1.452
Staff costs include the following amounts for the Executive Management and senior managers: sala-
ries and bonuses (current) of DKK 10,952 thousand (2023: DKK 10,122 thousand), pension contribu-
tions of DKK 1,743 thousand (2023: DKK 1,583 thousand) and share-based payment of DKK 3,435
thousand (2023: DKK 4,309 thousand), totalling DKK 16,130 thousand (2023: DKK 16,014 thousand).
Staff costs also include remuneration of the Board of Directors of DKK 483 thousand (2023: DKK 500
thousand). Total remuneration of Management amounted to DKK 16,613 thousand (DKK 16,514
thousand).
2024
2023
Cost of sales for the year includes reversed inventory write-downs due to
sales in the amount of
All amounts in DKK’000
Annual report 2024 | 21
Notes to the consolidated financial statements
1 January – 31 December
Note
2 Costs (continued)
Share-based payment: Share option programme
Outstanding
options
Execu-
tive
Manage-
ment Other Total
Exercise
price
(DKK) *)
Fair
value
(DKK)
per
option **)
Total fair
value
(DKK
’000) **)
Exercisa-
ble from
Exercisa-
ble until
Granted in 2021 32.000 16.000 48.000 678,19 125,37 6.018 March 24 April 25
Granted in 2022 32.000 16.000 48.000 527,07 68,35 3.281 March 25 April 26
Granted in 2023 32.000 22.000 54.000 577,50 96,55 5.214 March 26 April 27
Total outstanding
options at 31
December 2023
96.000 54.000 150.000
No change in 2024
Total outstanding
options at 31
December 2024
96.000 54.000 150.000
*) On exercise after four years (at the latest possible date)
**) At the date of grant
Expected volatility
Expected term
Expected dividend
per share
Risk-free interest
rate
The expected volatility is calculated on the basis of 12 months’ historical volatility based on average
prices. If the option holders have not exercised their share options within the period specified, the
share options will lapse without any compensation to the holders. Exercise of the share options is
subject to the holders being in continuing employment during the above-mentioned periods. If the
share option holder leaves the Company’s employ before a share option vests, the holder may in
some cases have a right to exercise the share options early during a four-week period following
Schouw & Co.’s next following profit announcement. In the event of early exercise, the number of
share options will be reduced proportionately.
14 kr.
49 mo.
24,82%
2022 grant
no grants
2021 grant
-0,17%
no grants
no grants
no grants
2024 grant
2,66%
The Executive Management and senior managers of the HydraSpecma Group are covered by the
share option programme of the parent company, Schouw & Co. The programme entitles participants
to acquire shares in Aktieselskabet Schouw & Co. at a price based on the officially quoted price at
the date of grant plus a premium from the date of grant until the date of exercise. The exercise price
is adjusted by deduction of ordinary dividends, which cannot exceed the accrued interest. Costs
relating to the option programme are calculated on the basis of the Black & Scholes model and are
expensed under staff costs on a straight-line basis over the option period and settled with the parent
company. There were no grant in 2024.
25,03%
2023 grant
31,58%
-0,54%
14 kr.
49 mo.
15 kr.
47 mo.
All amounts in DKK’000
Annual report 2024 | 22
Notes to the consolidated financial statements
1 January - 31 December
Note
2024 2023
2 Costs (continued)
Depreciation, amortisation and impairment losses
Amortisation of intangible assets 43.403 39.593
Depreciation of property, plant and equipment 49.563 45.779
Depreciation of lease assets 42.797 38.120
Total depreciation, amortisation and impairment losses 135.763 123.492
Depreciation/amortisation and impairment is recognised in the income statement as follows:
Production 52.179 47.701
Distribution 69.720 62.677
Administration 13.864 13.114
Total depreciation, amortisation and impairment losses 135.763 123.492
3 Fees to auditors appointed by the general meeting
Statutory audit fees 1.106 1.452
Fees for tax and VAT-related services 20 37
Non-audit services 364 167
Total fees, auditors appointed by the general meeting 1.490 1.656
Statutory audit fees, other auditors 1.461 1.150
Non-audit services, other auditors 181 21
Fees for tax and VAT-related services, other auditors 35 43
Total fees, other auditors 1.677 1.214
4 Other operating income and expenses
Gains on disposal of property, plant and equipment and intangible assets 488 2.178
Other operating income 2.110 2.376
Total other operating income 2.598 4.554
Loss on disposal of property, plant and equipment and intangible assets 68 122
Other operating expenses 17 0
Total other operating expenses 85 122
All amounts in DKK’000
Annual report 2024 | 23
Notes to the consolidated financial statements
1 January - 31 December
Note
2024 2023
5 Equity investments in associates
Cost at 1 January 6.869 6.869
Cost at 31 December 6.869 6.869
Adjustments at 1 January 4.621 2.865
Foreign exchange adjustments (457) (402)
Share of profit for the year (135) 2.158
Adjustments at 31 December 4.029 4.621
Carrying amount at 31 December 10.898 11.490
The Group has the following associates:
Equity
interest
Equity
interest
Name Registered office
31.12.2024 31.12.2023
Young Tech Company Ltd. Changwon, South Korea 30% 30%
Micron Specma India (Pvt.) Ltd. Rohtak, Haryana, India 25% 25%
NGIN A/S Aarhus, Denmark 40% 40%
2024 2023
6 Financial income
Interest income, group companies 1.717 527
Foreign exchange adjustments 4.796 11.474
Other interest income 1.734 2.424
Total financial income 8.247 14.425
7 Financial expenses
Interest expenses, group companies 49.702 34.238
Foreign exchange adjustments 11.646 9.004
Interest expenses, lease debt 5.146 4.527
Other interest expenses 8.253 6.355
Total financial expenses 74.747 54.124
For lease assets we refer to note 11 and for lease liabilities we refer to note 16.
All amounts in DKK’000
Annual report 2024 | 24
Notes to the consolidated financial statements
1 January - 31 December
Note
2024 2023
8 Tax on profit/loss for the year
Tax on the profit for the year is specified as follows:
Tax on profit/loss for the year 38.024 33.887
Tax on other comprehensive income (188) 1.173
Total tax 37.836 35.060
Tax on the profit for the year has been calculated as follows:
Current tax 41.461 41.004
Deferred tax (4.399) (7.117)
Adjustment of prior-year tax charge 962 0
Total tax recognised in the income statement 38.024 33.887
Specification of the tax on the profit for the year:
Computed 22.00% tax on profit before tax 29.949 35.667
0 (876)
Adjustment of prior-year tax charge 962 0
Tax provisions (for uncertain tax treatment) 2.150 0
Tax loss this year not recognized 2.397 0
Tax in foreign subsidiaries adjusted relative to 22% (70) (1.373)
Tax effect of non-deductible costs and non-taxable income 2.636 469
Total tax recognised in the income statement 38.024 33.887
Effective tax rate 27,9% 20,9%
Before tax Tax After tax
Foreign exchange adjustments of foreign units, etc. (11.708) 0 (11.708)
(856) 188 (668)
Other comprehensive income from associates (457) 0 (457)
(13.021) 188 (12.833)
Before tax Tax After tax
Foreign exchange adjustments of foreign units, etc. (5.977) 0 (5.977)
Hedging instruments for the year 5.333 (1.173) 4.160
Other adjustments recognised directly in equity (896) 0 (896)
Other comprehensive income from associates (401) 0 (401)
(1.941) (1.173) (3.114)
Total tax on items recognised in other comprehensive
income
Total tax on items recognised in other comprehensive
income
Non-capitalised tax asset
2023
2024
Value adjustment of hedging instruments transferred to
revenue
Tax on items recognised in other comprehensive
income
Tax on items recognised in other comprehensive
income
All amounts in DKK’000
Annual report 2024 | 25
Notes to the consolidated financial statements
at 31 December
Note
9 Intangible assets
Goodwill
Finished
develop-
ment
projects
Develop-
ment
projects
in
progress
Custo-
mer
relations Brands
Know-
how
IT
projects Total
Cost at 1 January 299.546 8.913 21.624 214.838 52.323 154.888 54.202 806.334
Foreign exchange
adjustments
(5.668) 0 0 (6.002) (1.626) (4.813) (484) (18.593)
Additions 0 0 7.964 0 0 0 554 8.518
Transferred/
reclassified
0 18.422 (18.422) 0 0 0 17 17
Cost at 31
December
293.878 27.335 11.166 208.836 50.697 150.075 54.289 796.276
Amortisation and
impairment at 1
January
0 (4.585) 0 (78.008) (41.851) (21.732) (41.166) (187.342)
Foreign exchange
adjustments
0 0 0 2.194 1.315 705 293 4.507
Amortisation 0 (6.847) 0 (16.599) (5.082) (9.229) (5.646) (43.403)
Transferred/
reclassified
0 0 0 0 0 0 (17) (17)
Amortisation and
impairment at 31
December
0 (11.432) 0 (92.413) (45.618) (30.256) (46.536) (226.255)
Carrying amount
at 31 December
293.878 15.903 11.166 116.423 5.079 119.819 7.753 570.021
Amortised over 3 years
10-15
years 10 years
10-15
years
3-10
years
31.12.2024
All amounts in DKK’000
Annual report 2024 | 26
Notes to the consolidated financial statements
at 31 December
Note
9 Intangible assets (continued)
Goodwill
Finished
develop-
ment
projects
Develop-
ment
projects
in
progress
Custo-
mer
relations Brands
Know-
how
IT
projects Total
Cost at 1 January 132.720 0 0 97.841 52.087 16.516 49.724 348.888
Foreign exchange
adjustments
(5.250) 396 792 (1.139) 236 (1.744) 2.579 (4.130)
Additions 0 0 6.617 0 0 0 571 7.188
Additions on com-
pany acquisitions
172.076 8.517 14.215 118.136 0 140.116 996 454.056
Transferred/
reclassified
0 0 0 0 0 0 332 332
Cost at 31
December
299.546 8.913 21.624 214.838 52.323 154.888 54.202 806.334
Amortisation and
impairment at 1
January
0 0 0 (60.212) (36.455) (11.568) (37.628) (145.863)
Foreign exchange
adjustments
0 0 0 (761) (336) (382) (75) (1.554)
Amortisation 0 (4.585) 0 (17.035) (5.060) (9.782) (3.131) (39.593)
Transferred/
reclassified
0 0 0 0 0 0 (332) (332)
Amortisation and
impairment at 31
December
0 (4.585) 0 (78.008) (41.851) (21.732) (41.166) (187.342)
Carrying amount
at 31 December
299.546 4.328 21.624 136.830 10.472 133.156 13.036 618.992
Amortised over
3 years
10-15
years 10 years
10-15
years
3-10
years
31.12.2023
All amounts in DKK’000
Annual report 2024 | 27
Notes to the consolidated financial statements
at 31 December
Note
9 Intangible assets (continued)
Revenue
growth
WACC
after tax
WACC
before tax
2024 8,0% 8,0% 9,9%
2023 5,0% 8,0% 9,8%
The Management of HydraSpecma Group has tested the value in use of the carrying amount against
goodwill in the companies the group. In the tests performed, the Management has estimated the
expected free cash flow for a five-year budget and forecast period of the years 2025-2029. The free
cash flow after tax has been applied to a discounted cash flow model (the “value in use” principle) for
the purpose of assessing each CGU value which subsequently is compared against the carrying
amount recognised in HydraSpecma Group consolidated financial statements. As of 31 December
2024, HydraSpecma Group has recognised goodwill at a total value of DKKm 294 compared with
DKK 300 million in 2023, where DKK 163 million are allocated to the acquired companies from Ymer
Technology AB, and the rest are allocated to Specma.
HydraSpecma had other recognised intangible assets of DKK 276,1 million at 31 December 2024.
During the year, there were additions of Customer relations, Know-how and Development projects in
connection with acquisitions and IT projects. There are no indications of impairment of other
intangible assets.
The discount rate (WACC) was estimated on the basis of available market data and an assessment
of the risk profile of the entity. Specifically, a risk-free interest rate based on the current yield of a 10-
year government bond in the relevant geography plus an estimated market-risk premium are used to
estimate the required rate of return on equity. An estimated risk premium is added, depending on geo-
graphy. The required rate of return on debt is based on an estimated credit assessment of the entity
and the current interest rate level. The required rates of return on debt and equity, as set out below,
are weighted using a capital structure based on a group of company peers.
Assumptions
The impairment test performed at 31 December 2024 did not result in a write-down.
Sensitivity analyses were performed as part of the tests to determine if reduced cash flows or a
higher WACC would produce evidence of impairment. The sensitivity analyses showed that likely
changes in basic assumptions would not produce evidence of impairment.
All amounts in DKK’000
Annual report 2024 | 28
Notes to the consolidated financial statements
at 31 December
Note
10 Property, plant and equipment
Land and
buildings
Plant and
machinery
Other
fixtures and
fittings, tools
and
equipment
Assets
under
construction Total
Cost at 1 January 422.293 261.668 116.170 21.202 821.333
Foreign exchange adjustments 126 (2.448) (1.135) (184) (3.641)
0 0 1.284 0 1.284
Additions 26.354 28.570 14.596 6.454 75.974
Disposals (1.476) (1.768) (4.502) 0 (7.746)
Transferred/reclassified 4.513 6.000 3.755 (14.218) 50
Cost at 31 December 451.810 292.022 130.168 13.254 887.254
(90.395) (167.893) (79.033) 0 (337.321)
Foreign exchange adjustments (35) 2.000 808 0 2.773
1.469 1.352 4.059 0 6.880
Depreciation (11.935) (22.643) (14.985) 0 (49.563)
Transferred/reclassified 0 790 (840) 0 (50)
(100.896) (186.394) (89.991) 0 (377.281)
350.914 105.628 40.177 13.254 509.973
Depreciated over
10-50 years 5-10 years 3-7 years
0 0
31.12.2024
Liability at 31 December re.
purchase of property, machinery
and equipment
Carrying amount at 31
December
Depreciation and impairment at
1 January
Depreciation and impairment of
assets disposed of
Depreciation and impairment at
31 December
Additions on company
acquisitions
All amounts in DKK’000
Annual report 2024 | 29
Notes to the consolidated financial statements
at 31 December
Note
10 Property, plant and equipment (continued)
Land and
buildings
Plant and
machinery
Other
fixtures and
fittings, tools
and
equipment
Assets
under
construction Total
Cost at 1 January 288.495 221.528 101.210 30.451 641.684
Foreign exchange adjustments 7.983 3.235 596 1.097 12.911
1.344 4.999 2.810 0 9.153
Additions 3.145 31.805 17.049 113.683 165.682
Disposals (287) (1.565) (6.245) 0 (8.097)
Transferred/reclassified 121.613 1.666 750 (124.029) 0
Cost at 31 December 422.293 261.668 116.170 21.202 821.333
(81.862) (141.950) (71.463) 0 (295.275)
Foreign exchange adjustments 88 (1.394) (448) 0 (1.754)
52 397 5.038 0 5.487
Depreciation (8.673) (24.849) (12.257) 0 (45.779)
Transferred/reclassified 0 (97) 97 0 0
(90.395) (167.893) (79.033) 0 (337.321)
331.898 93.775 37.137 21.202 484.012
Depreciated over
10-50 years 5-10 years 3-7 years
4.807 1.529
Depreciation and impairment at
1 January
Depreciation and impairment of
assets disposed of
Depreciation and impairment at
31 December
Carrying amount at 31
December
Additions on company
acquisitions
31.12.2023
Liability at 31 December re.
purchase of property, machinery
and equipment
All amounts in DKK’000
Annual report 2024 | 30
Notes to the consolidated financial statements
at 31 December
Note
11 Lease assets
Property
Other fix-
tures and
fittings, tools
and equip-
ment Total
Cost at 1 January 234.206 18.543 252.749
Foreign exchange adjustments (1.171) (216) (1.387)
Additions 6.717 11.325 18.042
Disposals 0 (5.418) (5.418)
Modifications 7.920 (692) 7.228
Cost at 31 December 247.672 23.542 271.214
Depreciation and impairment at 1 January (106.681) (9.385) (116.066)
Foreign exchange adjustments 835 103 938
Depreciation and impairment of assets disposed of 0 5.154 5.154
Depreciation (36.670) (6.127) (42.797)
Depreciation and impairment at 31 December (142.516) (10.255) (152.771)
Carrying amount at 31 December 105.156 13.287 118.443
Depreciated over
5-10 years 2-7 years
Services
Low-value
leases
Leases with
terms of less
than 1 year
Total
Less than 1 year 531 908 0 1.439
1-5 years 538 1.434 0 1.972
More than 5 years 0 0 0 0
Total
1.069 2.342 0 3.411
Lease liabilities recognised in the balance sheet are detailed in note 16.
Services
Low-value
leases
Leases with
terms of less
than 1 year
Total
Expense for the year 348 1.696 0 2.044
Liability at 31 December for leases entered into 0
Lease payments amount to DKK 49.027 thousand (2023: DKK 44,922 thousand)
For lease interests we refer to note 7 and for lease liabilities we refer to note 16.
31.12.2024
31.12.2024
Lease liabilities not recognised in the balance
sheet
Recorded in the income statement
All amounts in DKK’000
Annual report 2024 | 31
Notes to the consolidated financial statements
at 31 December
Note
11 Lease assets (comtinued)
Property
Other fix-
tures and
fittings, tools
and equip-
ment
Total
Cost at 1 January 167.280 18.701 185.981
Foreign exchange adjustments (1.078) 154 (924)
Additions 59.933 5.770 65.703
Disposals (11.688) (6.759) (18.447)
Modifications 19.759 677 20.436
Cost at 31 December 234.206 18.543 252.749
Depreciation and impairment at 1 January (84.007) (11.532) (95.539)
Foreign exchange adjustments 450 (36) 414
Depreciation and impairment of assets disposed of 10.434 6.745 17.179
Depreciation (33.558) (4.562) (38.120)
Depreciation and impairment at 31 December (106.681) (9.385) (116.066)
Carrying amount at 31 December 127.525 9.158 136.683
Depreciated over
5-10 years 2-7 years
Services
Low-value
leases
Leases with
terms of less
than 1 year
Total
Less than 1 year 345 2.153 0 2.498
1-5 years 375 1.481 0 1.856
More than 5 years 0 0 0 0
Total
720 3.634 0 4.354
Recorded in the income statement
Services
Low-value
leases
Leases with
terms of less
than 1 year
Total
Expense for the year 355 3.230 0 3.585
31.12.2024 31.12.2023
12 Inventories
Raw materials and consumables 143.797 152.026
Work in progress 27.304 35.610
Finished goods and goods for resale 478.081 556.268
Total inventories 649.182 743.904
Cost of inventories for which impairment losses have been recognised 166.984 140.918
Accumulated impairment losses on inventories (115.216) (100.268)
Net sales value 51.768 40.650
31.12.2023
31.12.2023
Lease liabilities not recognised in the balance
sheet
All amounts in DKK’000
Annual report 2024 | 32
Notes to the consolidated financial statements
at 31 December
Note
31.12.2024 31.12.2023
13 Receivables
Receivables (non-current) 6.244 4.637
Trade receivables 692.140 638.354
Other receivables 25.637 23.661
Receivable from parent company 32.122 52.548
Prepaid expenses 18.041 19.739
Total receivables 774.184 738.939
Impairment losses on receivables:
Impairment losses 1 January (4.198) (4.843)
Foreign exchange adjustments (18) (9)
Impairment losses for the year 44 101
Realised loss 425 553
Total impairment losses (3.747) (4.198)
Trade receivables are specified as follows:
31.12.2024 1-30 days 31-90 days >90 days Total
Trade receivables 602.524 66.970 12.751 13.642 695.887
0 (584) (2.500) (663) (3.747)
Trade receivables, net 602.524 66.386 10.251 12.979 692.140
Proportion of total receivables expected to be settled
99,5%
0,0% 0,9% 19,6% 4,9% 0,5%
31.12.2023 1-30 days 31-90 days >90 days Total
Trade receivables 555.593 61.344 13.629 11.986 642.552
0 (403) (1.197) (2.598) (4.198)
Trade receivables, net 555.593 60.941 12.432 9.388 638.354
Proportion of total receivables expected to be settled
99,3%
Impairment rate
0,0% 0,7% 8,8% 21,7% 0,7%
Due between (days)
Impairment losses on trade
receivables
Not fallen due
Impairment rate
Due between (days)
No significant trade receivables are impaired at the balance sheet date, and 99,5% of receivables are
expected to be settled. There is a constant follow-up on overdue debtors.
No collateral has been received for trade receivables.
Not fallen due
Impairment losses on trade
receivables
Impairment losses on receivables have been calculated according the credit loss-model under IFRS
9. As the Group’s principal customers are well-capitalised global enterprises, receivables have not
historically been subject to significant impairment losses.
All amounts in DKK’000
Annual report 2024 | 33
Notes to the consolidated financial statements
at 31 December
Note
31.12.2024 31.12.2023
14
Deferred tax
Deferred tax at 1 January 84.975 24.599
Foreign exchange adjustments (2.393) (159)
Additions on acquisitions 0 66.479
Deferred tax for the year recognised in profit/loss for the year (4.399) (7.117)
Deferred tax for the year recognised in equity (188) 1.173
Deferred tax at 31 December, net 77.995 84.975
Deferred tax Deferred tax is recognised as follows in the statement of financial position:
Deferred tax (asset) (4.039) (1.820)
Deferred tax (liability) 82.034 86.795
Deferred tax at 31 December, net 77.995 84.975
Deferred tax pertains to:
Intangible assets 59.404 68.789
Property, plant and equipment 8.723 8.173
Current assets (3.318) (3.557)
Equity 14.586 12.939
Other liabilities (1.400) (1.369)
Deferred tax at 31 December, net 77.995 84.975
Tax losses with an aggregate value for tax purposes of DKK 4,643 thousand (2023: DKK 3,282
thousand) have not been recognised because it is considered unlikely that the deferred tax assets
will be realised. The tax loss can be carried forward indefinitely.
The group assesses that Pillar II regulation will have no impact on HydraSpecma, and no tax
liabilities related to this have therefore been recognised.
Capitalised deferred tax is expected to be utilised by being set off against future positive taxable
income.
All amounts in DKK’000
Annual report 2024 | 34
Notes to the consolidated financial statements
at 31 December
Note
14 Deferred tax (continued)
Change in deferred tax
Balance at
1 January
Foreign
exchange
adjustments
Additions on
acquisitions
Recognised
in the profit
for the year
Recognised
in equity
Balance at
31
December
Intangible assets 68.789 (1.927) 0 (7.458) 0 59.404
Property, plant and
equipment
8.173 (283) 0 833 0 8.723
Receivables 295 11 0 (646) 0 (340)
Inventories (4.318) 113 0 723 0 (3.482)
Other assets 466 (16) 0 54 0 504
Equity 12.939 (336) 0 2.171 (188) 14.586
Provisions
0 0 0 0 0 0
Other liabilities (1.369) 45 0 (76) 0 (1.400)
Total change in
deferred tax
84.975 (2.393) 0 (4.399) (188) 77.995
Balance at
1 January
Foreign
exchange
adjustments
Additions on
acquisitions
Recognised
in the profit
for the year
Recognised
in equity
Balance at
31
December
Intangible assets 12.776 (81) 65.924 (9.830) 0 68.789
Property, plant and
equipment
7.710 0 555 (92) 0 8.173
Receivables (952) 10 0 1.237 0 295
Inventories (3.356) (8) 0 (954) 0 (4.318)
Other assets 201 2 0 263 0 466
Equity 10.065 14 0 1.687 1.173 12.939
Provisions
(151) 0 0 151 0 0
Other liabilities (1.694) (96) 0 421 0 (1.369)
Total change in
deferred tax
24.599 (159) 66.479 (7.117) 1.173 84.975
31.12.2024
31.12.2023
All amounts in DKK’000
Annual report 2024 | 35
Notes to the consolidated financial statements
at 31 December
Note
31.12.2024 31.12.2023
15 Provisions
Provisions at 1 January 23.162 23.573
Foreign exchange adjustments (390) 38
Used for the year (11.501) (12.981)
Reversed for the year (135) (1.694)
Provided for the year 15.019 14.226
Provisions at 31 December 26.155 23.162
Expected due dates:
Non-current 9.670 11.562
Current 16.485 11.600
Provisions at 31 December 26.155 23.162
31.12.2024 31.12.2023
16 Interest-bearing debt
Debt recognised in the balance sheet:
Mortgage debt (non-current) 53.176 55.631
Lease debt (non-current) 82.395 104.182
Debt to parent company (non-current) 200.000 500.000
Total recognised as non-current interest-bearing debt 335.571 659.813
Mortgage debt (current) 2.450 2.129
Lease debt (current) 42.776 38.508
Credit institutions (current) 94 1.610
Debt to parent company (current) 710.198 524.284
Recognised in current interest-bearing debt 755.518 566.531
Total interest-bearing debt 1.091.089 1.226.344
Fair value of interest-bearing debt 1.091.139 1.226.383
For lease interests we refer to note 7 and for lease assets we refer to note 11.
Provisions include contractual guarantees of 1-5 years.
All amounts in DKK’000
Annual report 2024 | 36
Notes to the consolidated financial statements
at 31 December
Note
16 Interest-bearing debt (continued)
Maturity profile of interest-bearing debt
31.12.2024 31.12.2023 31.12.2024 31.12.2023 31.12.2024 31.12.2023
Overdraft facilities
without planned
repayment
710.292 525.894 0 0 710.292 525.894
Less than 1 year 59.656 63.595 14.430 22.958 45.226 40.637
1-5 years 320.415 650.247 29.121 43.993 291.294 606.254
More than 5 years 50.594 60.926 6.317 7.367 44.277 53.559
Total 1.140.957 1.300.662 49.868 74.318 1.091.089 1.226.344
Spot rate used for floating rate loans in the table above.
Whereoff leasing amounts to:
Less than 1 year 46.673 43.017 3.897 4.509 42.776 38.508
1-5 years 77.024 105.114 4.168 6.829 72.856 98.285
More than 5 years 1.573 5.988 34 91 1.539 5.897
Total 125.270 154.119 8.099 11.429 117.171 142.690
Interest rate risk
Fixed rate
Floating
rate Total Fixed rate Floating rate Total
Interest-bearing
debt
0 1.091.089 1.091.089 0 1.226.344 1.226.344
Net exposure 0 1.091.089 1.091.089 0 1.226.344 1.226.344
31.12.2024 31.12.2023
17 Trade payables and other payables
Trade payables 362.346 350.607
Customer prepayments 134 73
Other debt 138.115 141.044
Total trade payables and other payables 500.595 491.724
Substantially all trade payables and other payables fall due within one year.
Carrying amount
The Group hedges parts of the interest rate risk on its debt subject to a case-by-case assessment. In
addition to expectations for interest rate developments, such assessment includes the amount of the
total floating rate debt relative to equity. Hedging normally consists of interest rate swaps and interest
rate caps. All interest rate swaps and rate caps are used to hedge underlying loans/credit facilities.
There were no interest rate swaps at 31 December 2024.
A +/- 1% change in the interest rate level would increase/reduce financial expenses by approx. DKK
10.9 million.
Principal repayment Interest
31.12.2024 31.12.2023
All amounts in DKK’000
Annual report 2024 | 37
Notes to the consolidated financial statements
1 January - 31 December
Note 31.12.2024 31.12.2023
18 Income tax
Income tax payable at 1 January 1.597 8.129
Foreign exchange adjustments 505 (199)
Additions on company acquisitions 0 1.204
Adjustment related to prior years 962 0
Current tax for the year 41.461 41.004
Income tax paid during the year (42.902) (48.541)
Income tax at 31 December 1.623 1.597
which is specified as follows:
Income tax receivable (9.727) (8.079)
Income tax payable 11.350 9.676
Income tax at 31 December 1.623 1.597
19 Changes in working capital
Change in inventories 70.855 (17.591)
Change in receivables (56.244) 8.929
Change in trade payables and other payables 9.696 (64.709)
Total changes in working capital 24.307 (73.371)
20 Adjustment for non-cash transactions
Purchase of intangible assets, see note 9 8.518 7.188
Paid relating to purchase of intangible assets 8.518 7.188
Purchase of property, plant and equipment, see note 10 75.974 165.682
Paid relating to purchase property plant and equipment 75.974 165.682
Financial liabilities incurred 18.042 65.703
of which lease debt (18.042) (65.703)
Proceeds from incurring financial liabilities 0 0
All amounts in DKK’000
Annual report 2024 | 38
Notes to the consolidated financial statements
at 31 December
Note
2024 2023
21 Acquisition of subsidiaries and operations
Specification of acquired assets and liabilities at the acquisition date:
Intangible assets 0 281.980
Property, plant and equipment 1.284 9.153
Other financial assets 0 3.051
Inventories 3.870 92.683
Receivables 1.091 77.107
Cash and cash equivalents 808 39.574
Trade payables (2.850) (51.731)
Other debt (1.325) (40.198)
Deferred tax 0 (66.479)
Net assets acquired 2.878 345.140
Goodwill 0 172.076
Consideration 2.878 517.216
Of which cash and cash equivalents (808) (39.574)
Cash consideration 2.070 477.642
22 Cash and cash equivalents
Cash and cash equivalents 101.425 73.938
Total cash and cash equivalents 101.425 73.938
23 Categories of financial assets and liabilities
Financial assets
Non-current assets
Other investments and securities (other shareholdings)
21 21
Available-for-sale financial assets *)
21 21
Other receivables
6.244 4.637
Other receivables at amortised cost
6.244 4.637
Current assets
Trade receivables
692.140 638.354
Other receivables
25.637 23.369
Receivable from parent company
32.122 52.548
Cash and cash equivalents
101.425 73.938
Receivables
851.324 788.209
Other receivables (derivative financial instruments)
0 292
Trading portfolio **)
0 292
On 21. June 2024, the Group acquired 100% of Agder Slangeservice AS' business in order to
strengthen the Group’s position in the IAM market in Norway.
All amounts in DKK’000
Annual report 2024 | 39
Notes to the consolidated financial statements
at 31 December
Note
2024 2023
23 Categories of financial assets and liabilities (continued)
Financial liabilities
Non-current liabilities
Debt to mortgage-credit institutions
53.176 55.631
Other credit institutions
82.395 104.182
Debt to parent company
200.000 500.000
Financial liabilities at amortised cost
335.571 659.813
Current liabilities
Debt to mortgage-credit institutions
2.450 2.129
Debt to parent company
710.198 524.284
Other credit institutions
42.870 40.118
Trade payables and other debt
440.989 491.724
Financial liabilities at amortised cost
1.196.507 1.058.255
Other debt (derivative financial instruments)
564 0
Trading portfolio **)
564 0
*) Unlisted shares, stated at estimated value (level 3)
24 Financial risk
The Company’s risk management policy
Interest rate risks are described in greater detail in note 16.
Currency risk
A 5% depreciation of currencies in which group companies have significant exposure, based on the
companies’ functional currency, would impact profit for the year by about DKK 2,220 thousand (2023:
DKK 4,649 thousand). The amounts are based on the group companies’ balance sheet items at 31
December 2024.
Set out in the table below is the Group's overall foreign exchange position at 31 December,
determined by aggregating the gross currency risks of the individual group companies.
It is the Group’s policy to hedge significant transaction risks related to future income streams not
naturally covered through purchases and sales. As a general rule, currency risks are hedged by way
of forward contracts with a duration of up to 12 months. The market value of currency hedges was a
liability of DKK 564 thousand (2023: An asset of DKK 292 thousand).
**) Financial instruments valued by external credit institutions using generally accepted valuation
techniques on the basis of observable data (level 2).
Due to the nature of its operations, investments and financing, the Group is exposed to changes in
exchange rates and interest rates. The Group's policy is to not actively speculate in financial risk.
Accordingly, the Group’s financial management exclusively involves the management of financial risk
relating to its operations and investments.
Due to the currency peg to the Euro, no real currency risk is considered to exist between DKK and
EUR, and this is therefore omitted from the table below.
All amounts in DKK’000
Annual report 2024 | 40
Notes to the consolidated financial statements
at 31 December
Note
24 Financial risk (continued)
The Group’s currency risks in the balance sheet at 31 December 2024 translated to DKK
Currency
Securities
and cash
Cash and
receivables Liabilities
Position
before
hedging
Hedged
using
financial
instruments
Position
after
hedging
USD/DKK 0 7.142 (11.493) (4.351) 0 (4.351)
SEK/DKK 0 113.192 (75.802) 37.390 0 37.390
NOK/DKK 0 4.968 0 4.968 0 4.968
CHF/SEK 0 0 (1) (1) 0 (1)
EUR/GBP 0 16.702 (12.583) 4.119 0 4.119
USD/GBP 0 15.911 (540) 15.371 0 15.371
DKK/SEK 0 365 (5.163) (4.798) 0 (4.798)
GBP/DKK 0 0 (1.000) (1.000) 0 (1.000)
USD/CNY 0 12.730 (11.407) 1.323 0 1.323
USD/SEK 0 6.084 (10.638) (4.554) 0 (4.554)
EUR/SEK 0 172.262 (113.835) 58.427 0 58.427
EUR/CNY 0 7.723 (31.696) (23.973) 0 (23.973)
EUR/INR 0 83 (38.077) (37.994) 0 (37.994)
CNY/INR 0 0 (502) (502) 0 (502)
EUR/PLN 0 40.982 (35.183) 5.799 0 5.799
DKK/CNY 0 1 (1.747) (1.746) 0 (1.746)
DKK/PLN 0 0 (16) (16) 0 (16)
USD/PLN 0 0 (103) (103) 0 (103)
SEK/BRL 0 306 (24.611) (24.305) 0 (24.305)
SEK/PLN 0 0 (1.587) (1.587) 0 (1.587)
PLN/SEK 0 1.002 (75) 927 0 927
USD/EUR 0 2.029 0 2.029 0 2.029
GBP/SEK 0 413 (2.392) (1.979) 0 (1.979)
NOK/SEK 0 3.456 0 3.456 0 3.456
SEK/NOK 0 0 (1.942) (1.942) 0 (1.942)
CNY/DKK 0 11.669 (2.255) 9.414 (9.412) 2
CNY/SEK 0 21.551 (244) 21.307 0 21.307
CAD/DKK 0 0 (1.867) (1.867) 0 (1.867)
All amounts in DKK’000
Annual report 2024 | 41
Notes to the consolidated financial statements
at 31 December
Note
24 Financial risk (continued)
The Group’s currency risks in the balance sheet at 31 December 2023 translated to DKK
Currency
Securities
and cash
Cash and
receivables Liabilities
Position
before
hedging
Hedged
using
financial
instruments
Position
after
hedging
USD/DKK 0 2.352 (41.796) (39.444) 0 (39.444)
DKK/USD 0 0 (17.159) (17.159) 0 (17.159)
SEK/DKK 0 116.822 (77.378) 39.444 0 39.444
NOK/DKK 0 443 0 443 0 443
EUR/GBP 0 25.977 (17.735) 8.242 0 8.242
USD/GBP 0 19.579 (412) 19.167 0 19.167
DKK/SEK 0 263 (84.594) (84.331) 0 (84.331)
USD/CNY 0 12.128 (480) 11.648 0 11.648
USD/SEK 0 4.350 (10.977) (6.627) 0 (6.627)
EUR/SEK 0 159.194 (92.742) 66.452 0 66.452
EUR/CNY 0 12.496 (25.650) (13.154) 0 (13.154)
EUR/INR 0 0 (35.581) (35.581) 0 (35.581)
CNY/INR 0 101 (1.532) (1.431) 0 (1.431)
EUR/PLN 0 42.564 (50.790) (8.226) 0 (8.226)
DKK/CNY 0 0 (1.591) (1.591) 0 (1.591)
SEK/BRL 0 0 (28.438) (28.438) 0 (28.438)
PLN/SEK 0 983 0 983 0 983
USD/EUR 0 1.751 0 1.751 0 1.751
GBP/SEK 0 0 (1.386) (1.386) 0 (1.386)
NOK/SEK 0 0 1.574 1.574 0 1.574
CNY/DKK 0 10.521 0 10.521 (9.469) 1.052
Other 0 2.027 (8.396) (6.369) 0 (6.369)
Credit risk
Provisions for bad debts are detailed in note 13.
Capital management
It is the Group’s policy as a general rule to distribute the profit for the year after tax, in due
consideration of changes to the balance sheet and special liquidity requirements with respect to
investments. Dividend payments must be made in due consideration of the target level of equity.
The Group’s credit risk is primarily related to trade receivables. The Group seeks to avoid significant
exposure to individual customers or business partners. The Group’s policy for undertaking credit
risks involves an ongoing credit assessment of all major customers.
The Group regularly assesses the need for adjustment of the capital structure to weigh up the higher
required rate of return against the increased uncertainty related to debt financing. The ratio of equity
to total liabilities was 37.7% at 31 December 2024 (2023: 34.8%).
All amounts in DKK’000
Annual report 2024 | 42
Notes to the consolidated financial statements
at 31 December
Note
24 Financial risk (continued)
Liquidity risk
Maturity profiles etc. are detailed in note 16.
At 31 December, the Group’s cash resources consisted of:
31.12.2024 31.12.2023
Available operating credits 1.031.546 675.928
Drawn operating credits (710.292) (525.894)
Amount in the cash pool scheme 32.122 52.548
Cash and cash equivalents 101.425 73.938
454.801 276.520
25 NIBD
Change in NIBD for the year:
1 January Cash flows Acquisitions
For. ex.
adjustments
Other
31
December
Interest-bearing assets:
Current
receivables, group
companies
52.548 (20.426) 0 0 0 32.122
Cash and cash
equivalents
73.938 25.073 808 2.414 (808) 101.425
Interest-bearing liabilities:
Debt to mortgage-
credit institutions
(non-current)
55.631 0 0 0 (2.455) 53.176
Lease debt
(non-current)
104.182 0 0 2.250 (24.037) 82.395
Non-current debt
to group
companies
500.000 0 0 0 (300.000) 200.000
Current portion of
non-current
liabilities
2.129 (2.134) 0 0 2.455 2.450
Lease debt
(current)
38.508 (47.811) 0 0 52.079 42.776
Current debt to
group companies
524.284 (116.969) 0 2.883 300.000 710.198
Credit institutions
(current)
1.610 (1.204) 0 (312) 0 94
NIBD 1.099.858 (172.765) (808) 2.407 28.850 957.542
To ensure that the Group always has the necessary capital resources to capitalise on any
opportunities for investment that may arise and to be able to settle liabilities, the Group has entered
into a number of agreements.
Non-cash items
As a result of their short-term nature, the fair value of trade receivables, other receivables, trade
payables and other payables are deemed to correspond to the carrying amount.
All amounts in DKK’000
Annual report 2024 | 43
Notes to the consolidated financial statements
at 31 December
Note
26 Operating leases and rent commitments
Property Machinery Cars Total
Falling due within 0-1 years 217 691 0 908
Falling due within 1-5 years 0 1.434 0 1.434
Falling due after 5 years 0 0 0 0
Total 217 2.125 0 2.342
Property Machinery Cars Total
Falling due within 0-1 years 390 1.174 589 2.153
Falling due within 1-5 years 0 1.481 0 1.481
Falling due after 5 years 0 0 0 0
Total 390 2.655 589 3.634
27 Contingent liabilities and guarantees
Contingent liabilities
31.12.2024
Lease liabilities are measured at net present value. Operating lease liabilities comprise minor assets
and leases with terms of less than one year.
The Company is jointly taxed with the other Danish companies of the Schouw & Co. Group. As a
group company, the Company is jointly and severally liable with the other Danish group companies
for Danish income tax and withholding tax on dividends, interest and royalties within the joint tax pool.
The net liability of the jointly taxed entities to SKAT is specified in the consolidated financial state-
ments of the management company. Any subsequent corrections in income subject to joint taxation,
withholding taxes on dividends, etc. may result in the Company’s tax liability increasing.
31.12.2023
All amounts in DKK’000
Annual report 2024 | 44
Notes to the consolidated financial statements
at 31 December
Note
27 Contingent liabilities and guarantees (continued)
Guarantees
31.12.2024 31.12.2023
The following assets have been provided as security to credit institutions:
Land and buildings with a carrying amount of 63.572 64.126
Plant and machinery with a carrying amount of 0 0
5.038 2.810
28
Related party disclosures
Management's remuneration and share option programmes are set out in note 2.
The above assets have been provided as security for the Group’s debt to credit and mortgage-credit
institutions of DKK 60,590 thousand (2023: DKK 60,609 thousand)
HydraSpecma is predominately financed by resources of the parent company Schouw & Co. as well
as a number of committed and to a lesser extent uncommitted credit facilities.
The parent company’s source of financing is primarily composed of a syndicated banking facility,
which in December 2020 was refinanced with a total facility framework of DKK 3,275 million. The
facility expires 10th of January 2026 and has an outstanding of DKK 1.223 million.
In April 2019 and in November 2023, Schouw & Co. issued Schuldschein transactions of EUR 136
million, and EUR 225 million. The amount outstanding on the Schuldscheins is EUR 252 million (DKK
1,879 million) with expiries in April 2026, November 2026, November 2028 and November 2030.
In December 2021, a loan was established for a total of DKK 400 million with Nordic Investment Bank
for specific capacity and development investments. The loan has an outstanding of DKK 356 million
and expires in December 2028.
In 2022 and 2023, Schouw & Co. established a number of term loans. Of these loans only one loan
remains with an outstanding amount of DKK 350 million and expiry in January 2025.
In June 2024, Schouw & Co. issued a bond in the Norwegian bond market with a nominal value of
NOK 1,300 million. The bond was further supplemented with an additional NOK 500 million in
September 2024 to a total of NOK 1,800 million (DKK 1,161 million). To eliminate any currency risk,
the nominal amount and all future interest payments is swapped to DKK.
HydraSpecma, like other major subsidiaries in Schouw & Co., co-guarantees the aforementioned
facilities totaling DKK 7.020 million, where of DKK 4,969 million is utilized per 31/12-2024. In addition,
a smaller facility totaling DKK 43 million is guaranteed, where of DKK 34 million is utilized.
Other fixtures and fittings, tools & equipm. with a carrying amount of
The Group’s principal shareholder, Aktieselskabet Schouw & Co., is a related party exercising
control. Other related parties are group enterprises over which HydraSpecma exercises control and
the Board of Directors, the Executive Management and senior managers.
All amounts in DKK’000
Annual report 2024 | 45
Notes to the consolidated financial statements
at 31 December
Note
28
Related party disclosures (continued)
The Group’s transactions with related parties
31.12.2024 31.12.2023
Parent company:
Management fee
2.500 1.950
Interest expenses
49.702 34.238
Payment to Schouw & Co. for share option programme
3.435 4.309
Interest income
1.717 527
29
Pillar Two
30
Events after the balance sheet date
31
New financial reporting regulations
The assessment based on these numbers indicates that the jurisdictions of the HydraSpecma Group
should not be exposed to top-up tax of the Pillar Two legislation in 2024, mainly because the effective
tax rate in each of the jurisdictions amounts to 15% or higher.
The Group has applied the temporary exception issued by IASB in May 2023 from the accounting
requirements for deferred taxes in IAS 12. Accordingly, the group neither recognizes nor discloses
information about deferred tax assets and liabilities to Pillar Two income taxes.
Other than as set out elsewhere in this annual report, HydraSpecma A/S is not aware of events
occuring after 31 December 2024 which are expected to have a material effect on the Group's
financial position or outlook.
IAS 21 Currency translation: Translation of currencies that cannot freely be translated at an official
exchange rate.
The Group’s receivables from the parent company at 31 December are detailed in note 13. The
Group’s debt to parent company is detailed in note 16.
The following adopted standards and interpretations that have become effective 1 January 2024 have
been implemented in the financial year 2023.
IAS 1 Presentation of financial statements clarifying the definition of current liabilities.
The Pillar Two legislation was enacted in Denmark in December 2023 and has been effective for the
Group's financial year beginning 1 January 2024. It implies that the HydraSpecma Group will be
required to pay top-up tax on profits of its subsidiaries to the Danish tax authorities if these are taxed
locally at an effective tax rate of less than 15 percent minimum tax. If the relevant juridictions have
enacted local top-up tax rules, the top-up tax will be paid locally. The top-up tax will be included in the
HydraSpecma Group's annual report.
For the first three years, safe-harbour rules are in force. The safe-harbour rules imply that one out of
three simplified tests should be passed to fall outside the Pillar Two legislation. These tests are
based on numbers reported for the group annual report and country-by-country reporting for 2024.
IFRS 16 (Leases): Amendments to IFRS 16 specifying rules for the recognition of sale and leaseback
agreements and the calculation of the present value of lease liabilities.
IAS 7 Statement of cash flows and IFRS 7 Financial instruments: New disclosure requirements for
supplier finance arrangements (reverse factoring).
All amounts in DKK’000
Annual report 2024 | 46
Annual Report 2024 | 47
Notes to the financial statements
32 Accounting policies
HydraSpecma A/S is a public limited company domiciled in Denmark. The financial part of the annual
report for the period 1 January – 31 December 2024 includes both the consolidated financial statements
of HydraSpecma A/S and its subsidiaries (the Group) and the financial statements of the parent com-
pany.
The consolidated financial statements of HydraSpecma A/S for the year ended 31 December 2024 have
been prepared in accordance with the International Financial Reporting Standards as adopted by the
EU and other disclosure requirements pursuant to the Danish Financial Statements Act.
The parent company financial statements have been prepared in accordance with the International Fi-
nancial Reporting Standards as adopted by the EU and additional Danish disclosure requirements for
annual reports of reporting class C enterprises (large).
The Board of Directors and the Executive Management have on 20 February 2025 reviewed and ap-
proved the annual report of HydraSpecma A/S for the 2024 financial year. The annual report will be
presented to HydraSpecma A/S’s shareholders for approval at the annual general meeting to be held
on 10 April 2025.
Basis of preparation
The consolidated financial statements are presented in DKK rounded to the nearest thousand.
The consolidated financial statements are prepared on the basis of the historical cost principle.
The accounting policies described below have been consistently applied for the financial year and for
the comparative figures. For standards implemented prospectively, comparative figures are not restated.
New financial reporting standards
HydraSpecma A/S implemented amendments to IAS 1, IAS 8 and IAS 12 in 2024. Noneof the imple-
mented amendments had a material effect on recognition or measurement for HydraSpecma A/S.
Description of accounting policies
Significant accounting estimates
In preparing the financial statements, management makes a number of assessments, estimates and
assumptions necessary for calculating the carrying amount of certain assets and liabilities. The esti-
mates and assumptions applied are based on factors such as historical experience and other factors
that management considers reasonable under the circumstances, but which are inherently uncertain
and unpredictable. Such assumptions may be incomplete or inaccurate, and unexpected events or cir-
cumstances may arise. Due to the risks and uncertainties the Group is subject to, actual outcomes may
deviate from estimates made. It may be necessary to revise previous estimates as a result of changes
to the assumptions on which such estimates were based or due to new information or subsequent
events. Management has identified three areas of particular materiality for the financial reporting:
> Trade receivables amount to DKK 692 million. Management applies estimates when assessing
whether receivables at the balance sheet date are recoverable. Historically, the item has not
materially affected the income statement. Management regularly reviews the need for write-
downs and beliveves that its trade receivables are not subject to significant credit risk.
> Customer relations and know-how amount to a total of DKK 236 million. The item is tested for
impairment at least annually based on expectations for future customer relations and based on
expectations for the future utilisation of know-how.
> Inventories amount to DKK 649 million. When assessing its inventories, HydraSpecma applies
a general model whereby items are automatically written down when they have been in stock
for a certain period of time, combined with an individual assessment of newly sourced goods.
The company reviews the automatic model on a regular basis, and in management’s best esti-
mate, it provides an appropriate and fair view of the net realizable value of inventories.
Annual Report 2024 | 48
Notes to the financial statements
32 Accounting policies
Significant accounting estimates (continued)
> Acquisitions are accounted for by recognising the acquired enterprise’s assets, liabilities and
contingent liabilities at fair value. The principal assets are generally intangible assets, including
goodwill, as well as inventories and property, plant and equipment. The intangible assets most
often identified are the value of customers, brands and know-how. Intangible assets are valued
at the present value of expected future cash flows related to the asset. Depending on the nature
of the item, the determination of the fair value of the acquired company’s assets, liabilities and
contingent liabilities may be subject to uncertainty and may subsequently be adjusted.
> Valued at DKK 294 million, goodwill represents a significant amount in the balance sheet, and
the value of goodwill is subject to the future earnings of the underlying cash-generating units.
Management performs impairment tests at least once a year. See note 9 to the consolidated
financial statements.
> In connection with the acquisition of HydraSpecma Renewable AB in 2023, intangible assets of
DKK 454,1 million including goodwill were identified. With the exception of the goodwill identi-
fied, deferred tax was calculated on the acquired assets.
Consolidated financial statements
The consolidated financial statements comprise the parent company, HydraSpecma A/S, and subsidi-
aries in which HydraSpecma A/S exercises control.
Control is the power to govern a subsidiary’s financial and operating policies. Control also requires an
ability to make a financial return on the investment.
In assessing whether HydraSpecma A/S exercises control or significant influence, potential voting rights
exercisable at the balance sheet date are taken into account.
Enterprises in which HydraSpecma A/S exercises significant influence, but not control, over operating
and financial policy decisions are classified as associates. Significant influence exists when the Group,
directly or indirectly, holds or has the disposal of more than 20%, but less than 50%, of the voting rights.
A group overview is included in the Management’s review.
The consolidated financial statements are prepared by aggregating the financial statements of the par-
ent company and the individual subsidiaries prepared in accordance with the Group’s accounting poli-
cies. Intra-group income and expenses, shareholdings, intra-group balances and dividends and realised
and unrealised gains and losses on transactions between the consolidated companies are eliminated.
Unrealised gains on transactions with associates are eliminated in proportion to the Group’s interest in
the enterprise. Unrealised losses are eliminated in the same way as unrealised gains, to the extent that
they do not reflect impairment.
Financial statement items of subsidiaries are recognised 100% in the consolidated financial statements.
Non-controlling interests’ shares of profit/loss for the year and of equity in subsidiaries that are not wholly
owned are included in the consolidated profit/loss and equity, but are presented separately.
Annual Report 2024 | 49
Notes to the financial statements
32 Accounting policies
Business combinations
Newly acquired or newly established companies are recognised in the consolidated financial statements
from the date of acquisition. Enterprises divested or wound up are recognised in the consolidated finan-
cial statements until the date of disposal. Comparative figures are not adjusted to reflect acquisitions or
divestments.
The acquisition date is the date on which the Group effectively assumes control of the acquired busi-
ness.
The acquisition method is applied to acquisitions if the Group gains control of the company acquired.
Identified assets, liabilities and contingent liabilities in companies acquired are measured at their fair
value at the date of acquisition. Identifiable intangible assets are recognised if they are separable or
arise from a contractual right. Deferred tax on revaluations made is recognised.
Any excess of the consideration, the value of non-controlling interests in the acquired enterprise and the
fair value of any previously acquired investments over the fair value of the identifiable assets, liabilities
and contingent liabilities acquired (goodwill) is recognised as goodwill under intangible assets. Goodwill
is not amortised, but is tested for impairment annually. The first impairment test is performed before the
end of the year of acquisition.
On acquisition, goodwill is transferred to the cash-generating units that will subsequently form the basis
of future impairment tests. Any goodwill arising and any fair value adjustments made on the acquisition
of an entity whose functional currency is not the same as the Group’s presentation currency are treated
as assets or liabilities of an entity and initially translated to the acquired entity’s functional currency at
the exchange rate ruling at the transaction date.
Any negative difference (negative goodwill) is recognised in profit/loss at the acquisition date.
The consideration for an enterprise consists of the fair value of the agreed consideration in the form of
assets transferred, liabilities assumed and equity instruments issued. If part of the consideration is con-
tingent on future events occurring or on agreed conditions being met, that part of the consideration is
recognised at fair value at the acquisition date. Subsequent adjustment of contingent consideration is
recognised in the income statement.
Expenses incurred in connection with an acquisition are recognised in the income statement in the year
in which they are incurred.
If uncertainties exist at the acquisition date regarding identification or measurement of acquired assets,
liabilities or contingent liabilities or the determination of the consideration, initial recognition will be based
on preliminary values. If the identification or measurement of the consideration, acquired assets, liabili-
ties or contingent liabilities on initial recognition subsequently proves to have been incorrect, the calcu-
lation, including goodwill, is adjusted retrospectively until 12 months after the acquisition, and compar-
ative figures are restated. Subsequently, goodwill is not adjusted. Changes to estimates of contingent
consideration are recognised in profit/loss for the year.
Gains or losses on the sale or winding-up of subsidiaries and associates are stated as the difference
between the sales sum or the proceeds from the winding-up and the carrying amount of net assets,
including goodwill, at the date of disposal and costs to sell or wind up.
Non-controlling interests
On initial recognition, non-controlling interests are recognised either at the fair value of their interest or
at their pro-rata share of the fair value of the acquired company’s identifiable assets, liabilities and con-
tingent liabilities.
Accordingly, for the former option, goodwill is recognised relating to non-controlling interests in the ac-
quired business, while for the latter option, goodwill relating to non-controlling interests is not recognised.
The method of measuring non-controlling interests is determined on a case-by-case basis and disclosed
in the presentation of acquired businesses in the notes to the financial statements.
Annual Report 2024 | 50
Notes to the financial statements
32 Accounting policies
Foreign currency translation
A functional currency is determined for each of the reporting enterprises of the Group. The functional
currency is the currency in the primary economic environment in which the reporting entity operates.
Transactions in currencies other than the functional currency are transactions in foreign currencies.
On initial recognition, transactions in foreign currencies are translated to the functional currency at the
exchange rate ruling on the transaction date. Exchange differences arising between the exchange rate
at the transaction date and the exchange rate at the date of payment are recognised in the income
statement under financial income or financial expenses.
Receivables, payables and other monetary items denominated in foreign currency are translated to the
functional currency at the exchange rates at the balance sheet date. The difference between the ex-
change rate at the balance sheet date and the exchange rate at the date when the receivable or payable
arose or was recognised in the most recent financial statements is recognised in the income statement
under financial income or financial expenses.
On consolidation of enterprises with functional currencies other than Danish kroner, the income state-
ments and other comprehensive income are translated at the exchange rates at the transaction date,
and the balance sheets are translated at the exchange rates ruling at the balance sheet date. An aver-
age exchange rate for the month is used as the exchange rate at the transaction date to the extent that
this does not significantly distort the presentation of the transaction.
Exchange differences arising on translation of the opening equity of such enterprises at the exchange
rates at the balance sheet date and on translation of other comprehensive income from the exchange
rates ruling at the transaction date to the exchange rates at the balance sheet date are recognised in
other comprehensive income as a separate translation reserve under equity. Foreign exchange adjust-
ments are distributed between the parent company’s and the non-controlling interests’ shares of equity.
Foreign exchange adjustment of balances that are considered part of the overall investment in a sub-
sidiary with a functional currency other than Danish kroner is recognised in the consolidated financial
statements in other comprehensive income as a separate translation reserve under equity.
Similarly, exchange gains and losses on the part of loans and derivative financial instruments entered
into as hedges of the net investment in such enterprises, and effectively hedging against similar ex-
change gains or losses on the net investment in the enterprise, are recognised in other comprehensive
income as a separate translation reserve under equity.
On consolidation of associates and joint ventures with functional currencies other than Danish kroner,
the share of the results is translated at average exchange rates, and the share of equity including good-
will is translated at the exchange rates ruling at the balance sheet date.
Exchange differences arising on translation of the opening equity of associates and joint ventures at
exchange rates ruling at the balance sheet date and on translation of the share of the results for the
year from average exchange rates to the exchange rates ruling at the balance sheet date are recognised
in other comprehensive income as a separate translation reserve under equity.
On disposal of all or parts of wholly owned entities with functional currencies other than Danish kroner
and where control is relinquished, accumulated foreign exchange adjustments which are recognised in
other comprehensive income and are attributable to the entity are reclassified from other comprehensive
income to the income statement together with any gains or losses on disposal.
On disposal of partially owned subsidiaries with functional currencies other than Danish kroner and
where control is relinquished, the part of the translation reserve relating to non-controlling interests is
not transferred to the income statement.
On disposal of parts of subsidiaries with functional currencies other than Danish kroner without control
being relinquished, a proportionate share of the translation reserve is transferred from the parent com-
pany shareholders’ to the non-controlling shareholders’ share of equity.
Annual Report 2024 | 51
Notes to the financial statements
32 Accounting policies
Foreign currency translation (continued)
On disposal of parts of associates and joint ventures, the proportionate share of the accumulated foreign
exchange adjustments which are recognised in other comprehensive income are reclassified to the in-
come statement together with any gains or losses on disposal.
Repayment of balances considered to be a part of the net investment is not in itself deemed to be a
disposal of part of the enterprise.
Derivative financial instruments
Derivative financial instruments are recognized from the trading date and are measured in the balance
sheet at fair value. Positive and negative fair values of derivative financial instruments, and offsets of
positive and negative values are only made when the company has the right and intention to settle
several financial instruments net.
Fair value hedges
Changes in the fair value of derivative financial instruments designated as and qualifying as effective
hedges of the fair value of a recognised asset or a recognised liability are recognised in the income
statement together with any changes in the value of the hedged asset or hedged liability as regards
the hedged portion. Hedges of future cash flows under a fixed agreement, other than currency
hedges, are treated as fair value hedges.
The portion of the value adjustment of a derivative financial instrument that is not part of a hedge is
presented under financial items.
Cash flow hedges
Changes in the portion of the fair value of derivative financial instruments designated as and qualifying
as a hedge of future cash flows and effectively hedging changes in future cash flows are recognised in
other comprehensive income as a separate hedging reserve under equity until the hedged cash flows
affect profit/loss. At that time, any gains or losses relating to such hedge transactions are reclassified
from other comprehensive income and recognised in the same item as the hedged item.
If the hedging instrument no longer qualifies for hedge accounting, the hedge is discontinued. The ac-
cumulated value change recognised in other comprehensive income is reclassified to the income state-
ment when the hedged cash flows affect profit or loss or are no longer likely to occur.
The portion of the value adjustment of a derivative financial instrument that is not part of a hedge is
presented under financial items.
Hedges of net investments
Changes in the fair value of derivative financial instruments used as hedges of net investments in sub-
sidiaries, associates and joint ventures with functional currencies other than Danish kroner, and which
effectively hedge against changes in foreign exchange rates in such enterprises, are in the consoli-
dated financial statements recognised in other comprehensive income as a separate translation re-
serve under equity. The portion of the value adjustment of a derivative financial instrument that is not
part of a hedge is presented under financial items.
Other derivative financial instruments
For derivative financial instruments that do not qualify for hedge accounting, changes in fair value are
recognised in the income statement under financial items as they occur.
Annual Report 2024 | 52
Notes to the financial statements
32 Accounting policies
Income statement
Revenue
Sales of finished goods and goods for resale comprise components and accessories for hydraulics,
industrial hoses and related areas such as the supply of assembled goods, system solutions and the
manufacturing of hydraulic aluminium blocks, and are recognised in revenue when control of the indi-
vidual identifiable performance obligation in the sales contract passes to the customer, which according
to the terms of sale is at the date of delivery. Although a sales agreement regarding sales of finished
goods and goods for resale often contains more than one performance obligation, such obligations are
treated as one combined performance obligation because delivery typically takes place at one point in
time.
Revenue is measured at the fair value of the agreed consideration net of VAT and taxes charged on
behalf of third parties. All discounts granted are recognised in revenue. Fair value equals the agreed
price. Where the terms of payment exceed 12 months, the value is discounted to net present value. The
standard terms of payment are current month plus 1-3 months.
The part of the total consideration that is variable, for example in the form of discounts, bonus payments,
penalty payments, etc., is recognised in revenue when it is reasonably certain that it will not subse-
quently be reversed due to, for example, non-achievement of targets and the like.
Rental income
Rental income comprises the letting of part of the Company’s buildings to other enterprises under oper-
ating leases. Rent is accrued and recognised as income on a straight-line basis over the term of the
lease in accordance with the contract.
Government grants
Government grants are recognised in the income statement when it is more likely than not that the
Company will receive the grant. Government grants to cover costs are recognised in profit/loss as the
grant is earned, typically as costs are incurred. Government grants to cover costs are recognised in the
income statement under the items in which the costs are recognised. Accordingly, the principle of off-
setting applies in the recognition of government grants to cover costs. Other government grants are
recognised in other operating income.
Cost of sales
Cost of sales comprises costs incurred to achieve the year’s revenue. Enterprises engaged in trading
recognise cost of sales and enterprises engaged in manufacturing recognise production costs incurred
to achieve the year’s revenue. This includes direct and indirect costs of raw materials and consumables,
wages and salaries, leases and depreciation and impairment of plant and machinery and amortisation
and impairment of development projects.
Distribution costs
Distribution costs comprise expenses incurred in connection with the distribution of goods sold during
the year and in connection with sales campaigns, etc. run during the year, including costs of sales staff,
advertising and exhibition, as well as depreciation/amortisation and impairment.
Administrative expenses
Administrative expenses comprise expenses incurred during the year for management and administra-
tion of the Group, including costs of administrative staff, management, office premises and office ex-
penses, and depreciation and impairment. Administrative expenses also comprise impairment of trade
receivables.
Other operating income and expenses
Other operating income and expenses comprise items of a secondary nature relative to the companies’
activities, including gains and losses on current sales and replacement of intangible assets and property,
plant and equipment. Gains and losses on the sale of intangible assets and property, plant and equip-
ment are computed as the difference between the selling price less costs to sell and the carrying amount
at the date of disposal.
Annual Report 2024 | 53
Notes to the financial statements
32 Accounting policies
Profit/loss from investments in subsidiaries and associates
The proportionate share of subsidiaries’ profits or losses after tax is recognised in the parent company’s
income statement after full elimination of intra-group gains/losses.
The proportionate share of associates’ profits or losses after tax is recognised in the income statement
of both the Group and the parent company after elimination of the proportionate share of intra-group
profits/losses.
Financial income and expenses
Financial income and expenses include interest and capital gains and losses on transactions in foreign
currency and impairment losses on securities. Also included are amortisation of financial assets and
liabilities, including finance lease liabilities, surcharges and refunds under the on-account tax scheme.
and changes in fair values of derivative financial instruments that do not qualify for hedge accounting.
Borrowing costs from general borrowing or loans that are directly attributable to the acquisition, con-
struction or development of qualifying assets are attributed to the cost of the specific individual asset.
Tax on profit/loss for the year
The Company is subject to the Danish rules on compulsory joint taxation of the Danish companies of
the Schouw Group. Danish subsidiaries are included in the joint taxation from the date at which they are
included in the consolidation until the date when they cease to be consolidated.
The parent company, Aktieselskabet Schouw & Co., is the designated management company of the tax
pool and handles the settlement of all income tax payments with the tax authorities.
The current Danish income tax liability is allocated among the companies of the tax pool in proportion
to their taxable income by payment of joint taxation contributions. In this connection, companies with
negative taxable incomes will receive joint taxation contributions from companies that have been able
to utilise such losses to reduce their own taxable profits.
Tax for the year comprises current tax and changes in deferred tax for the year. In addition, tax for the
year comprises changes to prior-year tax and changes in assessed provisions for uncertain tax posi-
tions. Tax for the year is recognised in profit/loss for the year, in other comprehensive income or directly
in equity, depending on where the transaction to which the tax relates is recognised.
To the extent the Group benefits from a deduction in the determination of taxable income in Denmark
or abroad due to share-based incentive programmes, the tax effect of such programmes is recognised
in tax on profit/loss for the year. If the overall tax deduction exceeds the overall accounting cost, the tax
effect of the excess tax deduction is recognised directly in equity.
Balance sheet
Intangible assets
Goodwill is initially measured in the balance sheet at cost. Subsequently, goodwill is measured at cost
less accumulated impairment. Goodwill is not amortised. The carrying amount of goodwill is allocated
to the Group’s cash-generating units at the date of acquisition. The determination of cashgenerating
units is based on the management structure and the in-house financial management.
Intangible assets such as customer relations, know-how and brands, acquired in connection with busi-
ness combinations are measured at cost less accumulated amortisation and impairment. Other intangi-
ble assets comprise IT solutions. Intangible assets are amortised on a straight-line basis over the ex-
pected useful lives of the assets, which are as follows:
Customer relations: 10-15 years
Know-how: 10-15 years
Brands: 10 years
Other intangible assets:
Goodwill is not amortised, but is tested for impairment once a year.
Annual Report 2024 | 54
Notes to the financial statements
32 Accounting policies
Development projects, patents, licences, etc.
Development costs comprise salaries, amortisation and depreciation and other costs attributable to the
company’s development activities.
Clearly defined development projects are recognised as intangible assets where the technical feasibility
of the project, the availability of adequate resources and a potential future market or application oppor-
tunity in the company can be demonstrated and where the intention is to manufacture, market or use
the project if the cost can be measured reliably and it is probable that the future earnings or the net
selling prices can cover production and selling expenses, administrative expenses as well as the devel-
opment costs. Other development costs are recognised in the income statement as incurred.
Recognised development costs are measured at cost less accumulated amortization and impairment.
On completion of the development work, the development project is amortised on a straight-line basis
over the estimated useful life. The usual amortization period is three to seven years. The basis of amor-
tisation is calculated less any impairment.
Development costs are amortised on a straight-line basis over the expected useful lives of the assets,
which are as follows:
Development projects: 3 years
Property, plant and equipment
Land and buildings, plant and machinery and fixtures and fittings, tools and equipment are measured at
cost less accumulated depreciation and impairment.
Cost comprises the acquisition price and any costs directly attributable to the acquisition until the date
when the asset is ready for use. For assets produced in-house, cost comprises direct and indirect costs
of materials, components, third-party suppliers and labour as well as borrowing costs relating to specific
and general borrowing directly related to the construction of the individual asset. Cost is increased by
the present value of estimated liabilities for the removal and disposal of the asset and restoration of the
site on which the asset was used.
Subsequent costs, such as the cost of replacing components of property, plant and equipment, are
included in the asset’s carrying amount when it is probable that the costs will result in future economic
benefits for the Group. The replaced components are derecognised in the balance sheet and the carry-
ing amount is transferred to the income statement. All other ordinary repair and maintenance costs are
recognised in the income statement when incurred.
The cost of a total asset is divided into separate components that are depreciated separately if such
components have different useful lives. Property, plant and equipment are depreciated on a straight-line
basis over the expected useful lives of the assets/components, which are as follows:
Buildings 10-50 years
Plant and machinery 5-10 years
Other fixtures and fittings, tools and equipment 3-7 years
Land is not depreciated
The basis of depreciation is calculated in due consideration of the asset’s residual value, reduced by
any impairment losses. The depreciation period and the residual value are determined at the acquisition
date and reviewed annually. Where the residual value exceeds the carrying amount, the property ceases
to be depreciated.
If the depreciation period or the residual value is changed, the effect on depreciation going forward is
recognised as a change in accounting estimates.
Annual Report 2024 | 55
Notes to the financial statements
32 Accounting policies
Property, plant and equipment (continued)
Depreciation is recognised in the income statement as production costs, distribution costs and adminis-
trative expenses, respectively, to the extent that deprecation is not included in the cost of goods pro-
duced inhouse.
Leases
A lease asset and a lease liability are recognised in the balance sheet when, under a lease for a specific
identifiable asset, the lease asset is made available to the Group during the term of the lease and when
the Group obtains substantially all of the economic benefits from the use of the identified asset and the
right to direct the use of the identified asset.
On initial recognition, lease liabilities are measured at the present value of future lease payments, dis-
counted using an alternative borrowing rate. The following lease payments are recognised as part of the
lease liability:
> Fixed payments
> Variable payments changing in accordance with changes in an index or an interest rate based
on the applicable index or rate.
> Amounts payable under a residual value guarantee.
> The exercise price of buy options that Management is highly likely to exercise.
> Payments under extension options that the Group is highly likely to exercise.
> Penalties related to termination options, unless the Group is highly likely not to exercise the
option.
The lease liability is measured at amortised cost under the effective interest method. The lease liability
is remeasured if there is a change in the underlying contractual cash flows due to changes in an index
or an interest rate, if there is a change in the Group’s estimate of a residual value guarantee or if the
Group changes its assessment as to whether it reasonably expects to exercise an extension or termi-
nation option.
On initial recognition, the lease asset is measured at cost, corresponding to the value of the lease liability
adjusted for prepaid lease payments, plus direct costs incurred and estimated costs of dismantling or
restoring the underlying asset or similar and less any discounts or other types of incentive payments
received from the lessor.
Subsequently, the asset is measured at cost less accumulated depreciation and impairment. The lease
asset is depreciated over the shorter of the lease term and the useful life of the lease asset. Depreciation
is recognised in the income statement on a straight-line basis.
The lease asset is adjusted for changes in the lease liability resulting from changes in the lease terms
or changes in the contractual cash flows according to changes in an index or an interest rate.
Lease assets are depreciated on a straight-line basis over the expected lease term, which is as follows:
Operating equipment 2-7 years
Properties 5-10 years
Lease assets are presented separately from lease liabilities in the balance sheet.
The group has decided not to recognise either lease assets of low value or short-term leases in the
balance sheet. Instead, lease payments on such leases are recognised on a straight-line basis in the
income statement.
Annual Report 2024 | 56
Notes to the financial statements
32 Accounting policies
Investments in subsidiaries and associates
Investments in subsidiaries and associates are measured in the parent company financial statements
according to the equity method.
On initial recognition, investments in subsidiaries and associates are measured at cost, i.e. with the
addition of transaction costs. Cost is allocated in accordance with the acquisition method of accounting.
See the description of business combinations.
Investments in subsidiaries and associates (continued)
Cost is adjusted to reflect shares of profits after tax calculated in accordance with the Group’s accounting
policies with the deduction or addition of unrealised intra-group gains and losses.
Dividends received are deducted from the carrying amount.
Any value added and goodwill relative to the equity value of the underlying business is recognised in
accordance with the Group’s accounting policies.
In the consolidated financial statements, investments in associates are measured according to the eq-
uity method, at the proportionate share of the associates’ equity value calculated in accordance with the
Group’s accounting policies minus or plus the proportionate share of unrealised intra-group profits and
losses and plus values added on acquisition, including goodwill.
Acquisitions of investments in associates are accounted for according to the acquisition method of ac-
counting. See the description of business combinations.
Impairment testing of non-current assets
Goodwill and intangible assets with indefinite useful lives are tested annually for impairment, initially
before the end of the year of acquisition.
The carrying amount of goodwill is tested for impairment together with the other non-current assets in
the cash-generating unit or group of cash-generating units to which goodwill has been allocated and is
written down to recoverable amount through profit or loss if the carrying amount is higher. The recover-
able amount is generally calculated as the net present value of expected future cash flows from the
enterprise or activity (cash-generating unit) to which the goodwill relates.
The carrying amounts of other non-current assets are tested annually for any indication of impairment.
If such an indication exists, the recoverable amount of the asset is calculated. The recoverable amount
is the higher of an asset’s fair value less expected costs to sell and its value in use.
Value in use is calculated as the present value of expected future cash flows from an asset or the cash-
generating unit to which the asset belongs.
An impairment loss is recognised where the carrying amount of an asset or a cash-generating unit ex-
ceeds the recoverable amount of the asset or cash-generating unit. Impairment losses are recognised
in profit/loss as production costs, distribution costs or administrative expenses. Goodwill impairment is
recognised as a separate line item in the income statement.
Impairment of goodwill is not reversed. Impairment of other assets is reversed to the extent that changes
have occurred to the assumptions and estimates leading to the impairment. Impairment losses are only
reversed to the extent that the new carrying amount of an asset does not exceed the carrying amount
the asset would have had after depreciation/amortisation, had the asset not been impaired.
Other securities
Holdings of securities which do not enable the Company to exercise control or significant influence are
measured at fair value.
Annual Report 2024 | 57
Notes to the financial statements
32 Accounting policies
Inventories
Inventories are measured at the lower of cost in accordance with the FIFO method and net realisable
value.
The cost of goods for resale, raw materials and consumables comprises the purchase price plus delivery
costs.
The cost of finished goods and work in progress comprises the cost of raw materials, consumables,
direct labour, indirect production costs and borrowing costs relating to specific and general borrowing
directly related to the production of the individual item of inventory. Indirect production costs include
indirect materials and labour as well as maintenance and depreciation of the machinery, factory build-
ings and equipment used in the manufacturing process as well as costs of production administration
and management.
The net realisable value of inventories is calculated as the sales amount less costs of completion and
costs necessary to make the sale and is determined taking into account marketability, obsolescence
and development in the expected selling price.
Receivables
Receivables are measured at amortised cost.
Provisions for bad debts are made in accordance with the simplified expected credit loss-model, under
which total losses are recognised immediately in the income statement at the same time as the receiv-
able is recognised in the balance sheet in the amount of the lifetime expected credit loss on the receiv-
able.
Interest on credit-impaired receivables is recognised as income based on the written-down value using
the effective interest rate for the individual receivable or portfolio.
Prepaid expenses
Prepaid expenses are measured at cost.
Equity
The hedging reserve comprises the accumulated net change in the fair value of hedging transactions
that qualify as hedges of future cash flows and for which the hedged transaction has yet to be realised.
The translation reserve in the consolidated financial statements comprises the parent company share-
holders’ share of foreign exchange differences arising on translation into Danish kroner of the financial
statements of entities with functional currencies other than Danish kroner.
Reserve for net revaluation according to the equity method
Reserve for net revaluation according to the equity method comprises net revaluation of investments in
subsidiaries and associates relative to cost.
The reserve may be eliminated against losses, realisation of investments or changes in accounting es-
timates. The reserve cannot be negative.
Dividend
Proposed dividend is recognised as a liability at the time of adoption by the shareholders at the annual
general meeting (the date of declaration). Dividends expected to be declared in respect of the year are
stated as a separate line item under equity.
Employee obligations
Pension obligations and similar long-term liabilities
The Group has set up pension plans and similar arrangements with the majority of the Group’s employ-
ees.
Liabilities relating to defined contribution plans are recognised in the income statement in the period in
which the benefits vest, and payments due are recognised in the balance sheet under other debt.
Annual Report 2024 | 58
Notes to the financial statements
32 Accounting policies
Share option programme
Share option programmes under which employees can purchase shares at an agreed price are meas-
ured at fair value at the grant date, and any changes to their value are recognised in the income state-
ment under staff costs over the vesting period. The balancing item is recognised in liabilities until pay-
ment is made to the parent company.
On initial recognition of the share options, the number of options expected to vest is estimated. Subse-
quently, adjustment is made for changes to the estimated number of vested options, to the effect that
the total amount recognised is based on the actual number of vested options.
The fair value of options granted is estimated using a valuation model that takes into account the terms
and conditions of the options granted.
Income tax and deferred tax
Current tax liabilities and current tax receivables are recognised in the balance sheet as calculated tax
on the taxable income for the year, adjusted for tax on prior years’ taxable income and for tax paid under
the on-account tax scheme.
Deferred tax is measured in accordance with the balance sheet liability method on all temporary differ-
ences between the carrying amount and the tax base of assets and liabilities. However, deferred tax is
not recognised on temporary differences relating to goodwill not deductible for tax purposes and other
items where temporary differences have arisen at the date of acquisition without affecting either
profit/loss for the year or taxable income.
In cases where the tax base may be computed according to alternative tax rules, deferred tax is meas-
ured on the basis of the intended use of the asset or settlement of the liability.
Deferred tax assets, including the tax base of tax loss carry-forwards, are recognised at the expected
value of their utilisation, either as a set-off against tax on future income or as a set-off against deferred
tax liabilities within the same legal tax entity and jurisdiction.
Deferred tax assets are reviewed annually and recognised only to the extent that it is probable that they
will be utilised.
Deferred tax assets and tax liabilities are offset if the Group has a legally enforceable right to set off
current tax liabilities and tax assets and intends either to settle current tax liabilities and tax assets on a
net basis or to realise the assets and settle the liabilities simultaneously.
Deferred tax is adjusted for eliminations and unrealised intra-group gains and losses.
Deferred tax is measured based on the tax rules and rates in the respective countries that will apply
under the legislation in force at the balance sheet date when the deferred tax asset is expected to
crystallise as current tax. Changes in deferred tax resulting from changes in tax rates are recognised in
profit/loss for the year and in comprehensive income for the year.
Provisions
Provisions are recognised when, as a consequence of an event occurring before or at the balance sheet
date, the Group has a legal or constructive obligation, the settlement of which is likely to result in an
outflow of economic benefits, and the amount can be reliably measured. Provisions are measured as
Management’s best estimate of the amount expected to be required to settle the liability.
Warranty commitments are recognised as the sale of goods and services is effected, based on the level
of incurred warranty costs in prior financial years.
A provision for onerous contracts is recognised when the unavoidable costs under a contract exceed
the expected benefits to the Group from the contract.
Annual Report 2024 | 59
Notes to the financial statements
32 Accounting policies
Financial liabilities
Debt to credit institutions etc. is recognised at the raising of a loan at fair value less transaction costs
incurred. Subsequently, financial liabilities are measured at amortised cost, applying the effective inter-
est method, to the effect that the difference between the proceeds and the nominal value is recognised
in profit/loss under financial expenses over the term of the loan.
In addition, the capitalised residual lease liability under finance leases is recognised in financial liabili-
ties, measured at amortised cost.
Other financial liabilities are measured at amortised cost.
Other payables
Other payables comprise debt to public authorities, holiday pay, etc. and are measured at amortised
cost, which usually corresponds to nominal value.
Cash flow statement
The cash flow statement presents cash flows for the year from operating, investing and financing activ-
ities, changes for the year in cash and cash equivalents and cash and cash equivalents at the beginning
and end of the year.
Cash flows from acquisitions and divestments of enterprises are shown separately under cash flows
from investing activities. Cash flows from acquired businesses are recognised in the cash flow statement
from the date of acquisition. Cash flows from divested businesses are recognised until the date of dis-
posal.
Cash flows from operating activities are calculated according to the indirect method as profit or loss after
tax adjusted for non-cash operating items, changes in working capital, interest received and paid, in-
cluding the interest component of recognised lease liabilities, dividends received and income tax paid.
Cash flows from investing activities comprise payments made in connection with the acquisition and
divestment of enterprises and operations and the acquisition and sale of intangible assets, property,
plant and equipment and financial assets.
Cash flows from financing activities comprise changes in the size or the composition of the share capital
and related costs as well as the raising of loans, repayment of interest-bearing debt and lease liabilities,
purchase and sale of treasury shares and payment of dividends to shareholders.
Cash and cash equivalents comprise cash.
Cash flows in currencies other than the functional currency are translated at average exchange rates
unless these differ significantly from the exchange rate ruling at the transaction date.
Financial ratios
Financial ratios are calculated in accordance with the definitions of financial ratios on page 9 of the
annual report.
1 January - 31 December
Note
2024 2023
1 Revenue
797.275 792.063
2 Cost of sales
(571.742) (569.948)
Gross profit
225.533 222.115
4 Other operating income
93.424 31.464
2 Distribution costs
(147.130) (107.983)
2, 3 Administrative expenses
(76.530) (69.165)
EBIT
95.297 76.431
5 Recognition of share of profit in subsidiaries
46.644 75.978
6 Profit after tax in associates
(271) 0
7 Financial income
6.906 13.309
8 Financial expenses
(34.374) (26.031)
Profit before tax
114.202 139.687
9 Tax on profit/loss for the year
(15.422) (11.404)
Profit for the year
98.780 128.283
Proposed distribution of profit:
Reserve for net revaluation according to the equity method
46.644 75.978
Proposed dividend
40.000 25.000
Retained earnings
12.136 27.305
Profit for the year
98.780 128.283
Statement of comprehensive income
Items that can be reclassified to the income statement:
Value adjustment of hedging instruments for the year
(856) 5.333
Other adjustments
(11.628) (7.276)
9 Tax on profit/loss for the year
188 (1.173)
Other comprehensive income after tax
(12.296) (3.116)
Profit for the year
98.780 128.283
Total recognised comprehensive income
86.484 125.167
Parent company income statement and statement of
comprehensive income
All amounts in DKK’000
Annual report 2024 | 60
Parent company balance sheet
at 31 December
Note
Assets
31.12.2024 31.12.2023
Goodwill 3.365 0
IT projects 0 0
2, 10 Intangible assets 3.365 0
Land and buildings 111.872 89.536
Plant and machinery 14.483 15.522
Other fixtures and fittings, tools and equipment 9.495 7.210
Assets under construction, etc. 0 3.257
2, 11 Property, plant and equipment 135.850 115.525
5 Investments in subsidiaries 1.301.417 1.192.986
12 Lease assets 5.317 2.676
Equity investments in associates 1.578 1.849
Securities 21 21
14 Receivables 116.923 116.822
Other non-current assets 1.425.256 1.314.354
Total non-current assets 1.564.471 1.429.879
13 Inventories 138.250 171.036
14 Receivables 266.573 328.056
19 Income tax receivable 323 2.152
22 Cash and cash equivalents 481 144
Total current assets 405.627 501.388
Total assets 1.970.098 1.931.267
All amounts in DKK’000
Annual report 2024 | 61
Parent company balance sheet
at 31 December
Note
Liabilities and equity
31.12.2024 31.12.2023
Share capital 30.000 30.000
Hedge transaction reserve (378) 290
Reserve for net revaluation according to the equity method 239.228 204.212
Retained earnings 728.603 716.467
Proposed dividend 40.000 25.000
Total equity 1.037.453 975.969
15 Deferred tax 2.385 2.632
17 Credit institutions 56.595 57.160
17 Debt to subsidiaries 5.255 17.752
17 Debt to parent company 200.000 500.000
Non-current liabilities 264.235 577.544
17 Current portion of non-current liabilities 4.530 3.330
17 Credit institutions 94 117
17 Debt to subsidiaries and parent companies 510.841 209.643
16 Provisions 10.159 10.174
18 Trade payables and other payables 142.786 154.490
Current liabilities 668.410 377.754
Total liabilities 932.645 955.298
Total equity and liabilities 1.970.098 1.931.267
23-31 Notes without reference
All amounts in DKK’000
Annual report 2024 | 62
Parent company cash flow statement
1 January - 31 December
Note 2024 2023
Profit before tax 114.202 139.687
Adjustment for operating items of a non-cash nature, etc.
2 Depreciation, amortisation and impairment losses 16.171 15.559
Other operating items, net 4.427 6.759
5 Share of profits/losses of subsidiaries (46.644) (75.978)
6 Profit after tax in associates 271 0
Provisions (15) (2.807)
Financial income (6.906) (13.309)
Financial expenses 34.374 26.031
Cash flows from operations before changes in working capital 115.880 95.942
20 Changes in working capital (12.425) (12.384)
Cash flows from operations 103.455 83.558
Interest received 342 4.391
Interest paid (30.667) (25.091)
Cash flows from ordinary operations 73.130 62.858
19 Income tax paid (13.069) (15.178)
Cash flows from operating activities 60.061 47.680
21 Purchase of property, plant and equipment (33.878) (13.284)
5 Acquisitions (83.415) (527.216)
Sale of property, plant and equipment 0 414
Cash flows from investing activities (117.293) (540.086)
Loan financing:
Repayment of non-current liabilities (1.848) (1.972)
Increase/repayment of amounts owed to group companies 76.948 393.223
Increase/repayment of bank overdrafts 298 (228)
Repayment of lease debt (2.312) (2.320)
Shareholders:
Capital contribution 0 150.000
Dividends paid (25.000) (50.000)
Cash flows from financing activities 48.086 488.703
Cash flows for the year (9.146) (3.703)
Additions - by mergers 1 January 9.483 0
Cash and cash equivalents at 1 January 144 3.847
22 Cash and cash equivalents at 31 December 481 144
All amounts in DKK’000
Annual report 2024 | 63
Statement of changes in equity
at 31 December
Share
capital
Hedge
transaction
reserve
Reserve for
net revalua-
tion accord-
ing to the
equity
method
Retained
earnings
Proposed
dividend Equity
Equity at 1 January 2023 30.000 (3.870) 134.612 540.060 50.000 750.802
Ændring i anvendt regnskabspraksis 0 0 0 0 0 0
Ny egenkapital 1 January 2023 30.000 (3.870) 134.612 540.060 50.000 750.802
Changes in equity in 2023
Value adjustment of hedging instruments for the
year
0 5.333 0 0 0 5.333
Tax on changes in equity 0 (1.173) 0 0 0 (1.173)
Other adjustments of equity 0 0 (6.378) (898) 0 (7.276)
Profit for the year 0 0 75.978 27.305 25.000 128.283
Total recognised comprehensive income 0 4.160 69.600 26.407 25.000 125.167
Capital contribution 0 0 0 150.000 0 150.000
Distributed dividends 0 0 0 0 (50.000) (50.000)
Total changes in equity in 2023 0 0 0 150.000 (50.000) 100.000
Equity at 31 December 2023 30.000 290 204.212 716.467 25.000 975.969
Changes in equity in 2024
Value adjustment of hedging instruments for the
year
0 (856) 0 0 0 (856)
Tax on changes in equity 0 188 0 0 0 188
Other adjustments of equity 0 0 (11.628) 0 0 (11.628)
Profit for the year 0 0 46.644 12.136 40.000 98.780
Total recognised comprehensive income 0 (668) 35.016 12.136 40.000 86.484
Distributed dividends 0 0 0 0 (25.000) (25.000)
Total changes in equity in 2024 0 0 0 0 (25.000) (25.000)
Equity at 31 December 2024 30.000 (378) 239.228 728.603 40.000 1.037.453
The share capital comprises 3,000 shares of DKK 10,000 each.
No special rights are attached to any share.
The share capital is fully paid up.
All amounts in DKK’000
Annual report 2024 | 64
Notes to the parent company financial statements
1 January - 31 December
Note
1 Revenue
Segments:
Local
IAM/OEM
division
Renewables
division Total
Nordic region
384.262 174.375 558.637
Rest of Europe
6.579 85.492 92.071
Rest of world
2.059 144.508 146.567
Total revenue 392.900 404.375 797.275
Segments:
Local
IAM/OEM
division
Renewables
division Total
Nordic region
370.558 204.183 574.741
Rest of Europe
6.019 87.005 93.024
Rest of world
4.966 119.332 124.298
Total revenue 381.543 410.520 792.063
2
Costs
2024 2023
Cost of sales
Cost of sales for the year includes costs of goods sold in the amount of 485.302 497.207
Cost of sales for the year includes inventory write-downs in the amount of 8.911 8.257
(3.909) (3.782)
Staff costs
Wages, salaries and fees 179.862 134.442
Defined contribution pension plans 18.671 13.638
Other social security costs 3.918 3.425
Share-based payment 3.435 4.309
Total staff costs recognised in the income statement 205.886 155.814
Staff costs are recognised as follows:
Production 63.838 52.012
Distribution 110.896 78.096
Administration 31.152 25.706
Total staff costs recognised in the income statement 205.886 155.814
Average no. of employees 310 252
Modtaget lønkompensation 362 0
Employee shares
The internal management and segment reporting was changed in 2024. The comparative figures
have been restated accordingly.
Cost of sales for the year includes reversed inventory write-downs due to
sales in the amount of
2023
2024
Share option programme
The terms and conditions of the grant of employee shares are described in note 2 to the consolidated
financial statements.
The terms and conditions of the share option programme are described in note 2 to the consolidated
financial statements.
All amounts in DKK’000
Annual report 2024 | 65
Notes to the parent company financial statements
1 January - 31 December
Note
2 Costs (continued)
Management remuneration
Depreciation, amortisation and impairment losses
2024 2023
Depreciation of property, plant and equipment 13.884 14.172
Depreciation of lease assets 2.299 1.427
Total depreciation, amortisation and impairment losses 16.183 15.599
Depreciation/amortisation and impairment is recognised in the income statement as follows:
Production 6.222 7.716
Distribution 7.472 6.033
Administration 2.489 1.850
Total depreciation, amortisation and impairment losses 16.183 15.599
3 Fees to auditors appointed by the general meeting
Statutory audit fees 514 485
Fees for tax and VAT-related services 20 37
Non-audit services 404 167
Total fees, auditors appointed by the general meeting 938 689
Statutory audit fees, other auditors 52 0
Total fees, other auditors 52 0
4 Other operating income and expenses
Gains on disposal of property, plant and equipment and intangible assets 12 40
Invoiced to subsidiaries 93.412 31.424
Total other operating income 93.424 31.464
For more information on salaries and bonuses, pensions and share-based payment to the Executive
Management and senior managers of HydraSpecma A/S, see note 2 to the consolidated financial
statements.
All amounts in DKK’000
Annual report 2024 | 66
Notes to the parent company financial statements
at 31 December
Note
31.12.2024 31.12.2023
5 Investments in subsidiaries
Cost at 1 January 993.244 565.944
Additions 83.415 427.300
Disposals for the year (10.000) 0
Cost at 31 December 1.066.659 993.244
Adjustments at 1 January 199.742 130.142
Foreign exchange adjustments (11.628) (6.378)
Share of profit for the year 46.644 75.978
Adjustments at 31 December 234.758 199.742
Carrying amount at 31 December 1.301.417 1.192.986
Equity
interest
Equity
interest
31.12.2024 31.12.2023
HydraSpecma Hydraulics India Private Ltd. India 100% 100%
HydraSpecma Hydraulic Systems (Tianjin) Co., Ltd. China 100% 100%
HydraSpecma USA Inc. USA 100% 100%
HydraSpecma AB Sweden 100% 100%
HydraSpecma Component AB Sweden 100% 100%
HydraSpecma OY Finland 100% 100%
HydraSpecma Norge AS Norway 100% 100%
HydraSpecma Renewables AB Sweden 100% 100%
Dansk Afgratningsteknik A/S Skjern, Denmark 100% 60%
6 Investments in associates
Cost at 1 January 1.600 1.600
Cost at 31 December 1.600 1.600
Adjustments at 1 January 249 249
Share of profit for the year (271) 0
Adjustments at 31 December (22) 249
Carrying amount at 31 December 1.578 1.849
The Group has investments in the following associates:
Equity
interest
Equity
interest
Name
31.12.2024 31.12.2023
NGIN A/S
Aarhus,
Denmark
40% 40%
Registered
office
Registered
office
All amounts in DKK’000
Annual report 2024 | 67
Notes to the parent company financial statements
at 31 December
Note
2024 2023
7 Financial income
Interest income, group companies 6.261 9.611
Foreign exchange adjustments 379 3.404
Other interest income 266 294
Total financial income 6.906 13.309
8 Financial expenses
Interest expenses, group companies 28.717 23.572
Foreign exchange adjustments 2.886 0
Interest expenses, lease debt 251 75
Other interest expenses 2.520 2.384
Total financial expenses 34.374 26.031
For lease assets we refer to note 12 and for lease liabilities we refer to note 17.
9 Tax on profit/loss for the year
Tax on the profit for the year is specified as follows:
Tax on profit/loss for the year 15.422 11.404
Tax on other comprehensive income (188) 1.173
Total tax 15.234 12.577
Tax on the profit for the year has been calculated as follows:
Current tax 15.276 9.805
Deferred tax 72 1.599
Adjustment of prior-year tax charge 74 0
Total tax recognised in the income statement 15.422 11.404
Specification of the tax on the profit for the year:
Computed 22,0% tax on profit before tax 14.922 14.016
441 (2.612)
Tax effect on adjustment of taxes regarding prior year 59 0
Total tax recognised in the income statement 15.422 11.404
Effective tax rate 13,5% 8,2%
Tax effect of non-deductible costs and non-taxable income
All amounts in DKK’000
Annual report 2024 | 68
Notes to the parent company financial statements
1 January - 31 December
Note
9 Tax on profit/loss for the year (continued)
Before tax Tax After tax
Hedging instruments for the year (856) 188 (668)
(856) 188 (668)
Before tax Tax After tax
Hedging instruments for the year 5.333 (1.173) 4.160
5.333 (1.173) 4.160
10 Intangible assets
Goodwill IT projects Total
Cost at 1 January 0 26.360 26.360
Additions - by mergers 3.365 0 3.365
Cost at 31 December 3.365 26.360 29.725
Amortisation and impairment at 1 January 0 (26.360) (26.360)
Amortisation and impairment at 31 December 0 (26.360) (26.360)
Carrying amount at 31 December 3.365 0 3.365
Amortised over 3-5 years
IT projects Total
Cost at 1 January 26.360 26.360
Cost at 31 December 26.360 26.360
Amortisation and impairment at 1 January (26.360) (26.360)
Amortisation and impairment at 31 December (26.360) (26.360)
Carrying amount at 31 December 0 0
Amortised over 3-5 years
Total tax on items recognised in other comprehensive
income
Total tax on items recognised in other comprehensive
income
Tax on items recognised in other comprehensive
income
Tax on items recognised in other comprehensive
income
2023
2024
31.12.2024
31.12.2023
All amounts in DKK’000
Annual report 2024 | 69
Notes to the parent company financial statements
at 31 December
Note
11 Property, plant and equipment
Land and
buildings
Plant and
machinery
Other
fixtures and
fittings, tools
and
equipment
Assets
under
construction Total
Cost at 1 January 155.515 73.959 35.614 3.257 268.345
Additions 24.468 2.533 6.877 0 33.878
Additions - by mergers 0 0 331 0 331
Disposals (1.469) (625) (1.361) 0 (3.455)
Transferred/reclassified 3.257 0 0 (3.257) 0
Cost at 31 December 181.771 75.867 41.461 0 299.099
(65.979) (58.437) (28.404) 0 (152.820)
1.469 625 1.361 0 3.455
Depreciation (5.389) (3.572) (4.923) 0 (13.884)
(69.899) (61.384) (31.966) 0 (163.249)
111.872 14.483 9.495 0 135.850
Depreciated over 25-50 years 5-10 years 3-7 years
Land and
buildings
Plant and
machinery
Other
fixtures and
fittings, tools
and
equipment
Assets
under
construction Total
Cost at 1 January 151.264 72.157 34.898 0 258.319
Additions 4.251 2.131 3.645 3.257 13.284
Disposals 0 (329) (2.929) 0 (3.258)
Cost at 31 December 155.515 73.959 35.614 3.257 268.345
(61.260) (52.820) (27.452) 0 (141.532)
0 36 2.848 0 2.884
Depreciation (4.719) (5.653) (3.800) 0 (14.172)
(65.979) (58.437) (28.404) 0 (152.820)
89.536 15.522 7.210 3.257 115.525
Depreciated over 25-50 years 5-10 years 3-7 years
Depreciation and impairment at
1 January
Carrying amount at 31
December
Depreciation and impairment of
assets disposed of
Depreciation and impairment at
31 December
Carrying amount at 31
December
31.12.2023
Depreciation and impairment at
1 January
Depreciation and impairment of
assets disposed of
Depreciation and impairment at
31 December
31.12.2024
All amounts in DKK’000
Annual report 2024 | 70
Notes to the parent company financial statements
at 31 December
Note
12 Lease assets
Property
Other fix-
tures and
fittings, tools
and equip-
ment Total
Cost at 1 January 0 5.536 5.536
Additions 0 1.498 1.498
Additions - by mergers 3.464 0 3.464
Disposals 0 (1.599) (1.599)
Modifications 0 8 8
Cost at 31 December 3.464 5.443 8.907
Depreciation and impairment at 1 January 0 (2.860) (2.860)
Depreciation and impairment of assets disposed of 0 1.569 1.569
Depreciation (848) (1.451) (2.299)
Depreciation and impairment at 31 December (848) (2.742) (3.590)
Carrying amount at 31 December 2.616 2.701 5.317
Depreciated over 5 years 3-5 years
For lease interests we refer to note 8 and for lease liabilities we refer to note 17.
Services
Low-value
leases
Leases with
terms of less
than 1 year
Total
Less than 1 year 175 217 0 392
1-5 years 250 0 0 250
More than 5 years 0 0 0 0
Total
425 217 0 642
Lease liabilities recognised in the balance sheet are detailed in note 17.
Recorded in the income statement
Services
Low-value
leases
Leases with
terms of less
than 1 year
Total
Expense for the year 114 0 808 922
Lease payments amount to DKK 2,643 thousand (2023: DKK 1,880 thousand)
Lease liabilities not recognised in the balance
sheet
31.12.2024
31.12.2024
All amounts in DKK’000
Annual report 2024 | 71
Notes to the parent company financial statements
at 31 December
Note
12 Lease assets (continued)
Lease
assets Total
Cost at 1 January 7.481 7.481
Additions 1.507 1.507
Disposals (3.472) (3.472)
Modifications 20 20
Cost at 31 December 5.536 5.536
Depreciation and impairment at 1 January (4.905) (4.905)
Depreciation and impairment of assets disposed of 3.472 3.472
Depreciation (1.427) (1.427)
Depreciation and impairment at 31 December (2.860) (2.860)
Carrying amount at 31 December 2.676 2.676
Depreciated over 3-5 years
Services
Low-value
leases
Leases with
terms of less
than 1 year
Total
Less than 1 year 141 0 390 531
1-5 years 184 0 0 184
More than 5 years 0 0 0 0
Total
325 0 390 715
Services
Low-value
leases
Leases with
terms of less
than 1 year
Total
Expense for the year 143 0 1.017 1.160
13 Inventories 31.12.2024 31.12.2023
Raw materials and consumables 3.047 4.276
Work in progress 5.221 13.311
Finished goods and goods for resale 129.982 153.449
Total inventories 138.250 171.036
Cost of inventories for which impairment losses have been recognised 63.260 60.063
Accumulated impairment losses on inventories (46.857) (44.671)
Net sales value 16.403 15.392
Lease liabilities not recognised in the balance
sheet
31.12.2023
31.12.2023
Recorded in the income
statement
All amounts in DKK’000
Annual report 2024 | 72
Notes to the parent company financial statements
at 31 December
Note
14 Receivables 31.12.2024 31.12.2023
Receivable from subsidiaries (non-current) 116.923 116.822
Trade receivables 174.499 179.486
Other receivables 2.164 1.621
Receivable from subsidiaries 82.406 142.113
Receivable from parent company 2.782 1.093
Prepaid expenses 4.722 3.743
Total receivables 383.496 444.878
Impairment losses on receivables:
Impairment losses 1 January (2.500) (1.500)
Impairment losses for the year (264) (1.661)
Realised loss 264 661
Total impairment losses (2.500) (2.500)
Trade receivables are specified as follows:
31.12.2024
Not fallen
due 1-30 days 31-90 days >90 days Total
Total receivables 148.598 24.303 3.975 123 176.999
0 0 (2.377) (123) (2.500)
Trade receivables, net 148.598 24.303 1.598 0 174.499
Proportion of total receivables expected to be settled 98,6%
Impairment rate 0,0% 0,0% 59,8% 100,0% 1,4%
31.12.2023
Not fallen
due 1-30 days 31-90 days >90 days Total
Total receivables 142.829 33.644 3.760 1.753 181.986
0 0 (747) (1.753) (2.500)
Trade receivables, net 142.829 33.644 3.013 0 179.486
Proportion of total receivables expected to be settled 98,6%
Impairment rate 0,0% 0,0% 19,9% 100,0% 1,4%
Impairment losses on trade
receivables
Due between (days)
Due between (days)
Impairment losses on trade
receivables
All amounts in DKK’000
Annual report 2024 | 73
Notes to the parent company financial statements
at 31 December
Note 31.12.2024 31.12.2023
15
Deferred tax
Deferred tax at 1 January 2.632 1.292
Additions - by mergers (131) 0
Deferred tax for the year recognised in profit/loss for the year 72 1.599
Deferred tax for the year recognised in equity (188) (259)
Deferred tax at 31 December, net 2.385 2.632
Deferred tax is recognised as follows in the statement of financial position:
Deferred tax (aktiv) 0 0
Deferred tax (liability) 2.385 2.632
Deferred tax at 31 December, net 2.385 2.632
Deferred tax pertains to:
Property, plant and equipment 5.146 4.977
Current assets (1.211) (1.009)
Provisions (2.235) (2.238)
Other liabilities 685 902
Deferred tax at 31 December, net 2.385 2.632
Change in deferred tax
Balance at
1 January Adjustments
Recognised
in the profit
for the year
Recognised
in equity
Balance at
31
December
Property, plant and equipment 4.977 (78) 247 0 5.146
Inventories (1.475) 0 (240) 0 (1.715)
Other current assets 466 35 3 0 504
Provisions (2.238) 0 3 0 (2.235)
Other liabilities 902 (88) 59 (188) 685
2.632 (131) 72 (188) 2.385
Balance at
1 January Adjustments
Recognised
in the profit
for the year
Recognised
in equity
Balance at
31
December
Property, plant and equipment 4.778 0 199 0 4.977
Inventories (1.993) 0 518 0 (1.475)
Other current assets 201 0 265 0 466
Provisions (2.856) 0 618 0 (2.238)
Other liabilities 1.162 0 (1) (259) 902
1.292 0 1.599 (259) 2.632
Total change in deferred tax
31.12.2024
31.12.2023
Total change in deferred tax
All amounts in DKK’000
Annual report 2024 | 74
Notes to the parent company financial statements
at 31 December
Note 31.12.2024 31.12.2023
16 Provisions
Provisions at 1 January 10.174 12.981
Used for the year (6.211) (8.072)
Provided for the year 6.196 5.265
Provisions at 31 December 10.159 10.174
Expected due dates:
Current 10.159 10.174
Provisions at 31 December 10.159 10.174
Note 31.12.2024 31.12.2023
17 Interest-bearing debt
Debt recognised in the balance sheet:
Mortgagedebt (non-current) 53.176 55.631
Mortgage debt (current) 2.450 2.129
Lease debt (non-current) 3.419 1.529
Lease debt (current) 2.080 1.201
Debt to subsidiary (non current) 5.255 17.752
Credit institutions (current) 94 117
Debt to parent company (non-current) 200.000 500.000
Debt to parent company (current) 502.144 202.441
Debt to subsidiaries (current) 8.697 7.202
Total interest-bearing debt 777.315 788.002
Fair value of interest-bearing debt 777.365 788.041
For lease interests we refer to note 8 and for lease assets we refer to note 12.
Provisions include contractual guarantees of 1-5 years
All amounts in DKK’000
Annual report 2024 | 75
Notes to the parent company financial statements
at 31 December
Note
17 Interest-bearing debt (continued)
Maturity profile of interest-bearing debt
31.12.2024 31.12.2023 31.12.2024 31.12.2023 31.12.2024 31.12.2023
Overdraft facilities
without planned
repayment
8.791 7.319 0 0 8.791 7.319
Less than 1 year 15.064 21.779 10.534 18.449 4.530 3.330
1-5 years 745.042 766.902 24.956 37.164 720.086 729.738
More than 5 years 50.191 54.891 6.283 7.276 43.908 47.615
Total 819.088 850.891 41.773 62.889 777.315 788.002
Spot rate used for floating rate loans in the table above.
Whereoff leasing amounts to:
Less than 1 year 2.327 1.268 247 67 2.080 1.201
1-5 years 3.768 1.586 349 57 3.419 1.529
More than 5 years 0 0 0 0 0 0
Total 6.095 2.854 596 124 5.499 2.730
Interest rate risk
Fixed rate
Floating
rate Total Fixed rate Floating rate Total
Interest-bearing
debt
0 777.365 777.365 0 788.041 788.041
Hedging 0 0 0 0 0 0
Net exposure 0 777.365 777.365 0 788.041 788.041
31.12.2023
The Group hedges parts of the interest rate risk on its debt subject to a case-by-case assessment. In
addition to expectations for interest rate developments, such assessment includes the amount of the
total floating rate debt relative to equity. Hedging normally consists of interest rate swaps and rate
caps. All interest rate swaps and rate caps are used to hedge underlying loans/credit facilities. There
were no interest rate swaps at 31 December 2024.
Principal repayment
A +/- 1% change in the interest rate level would increase/reduce financial expenses by approx. DKK
7.8 million.
Interest Carrying amount
31.12.2024
All amounts in DKK’000
Annual report 2024 | 76
Notes to the parent company financial statements
at 31 December
Note
31.12.2024 31.12.2023
18 Trade payables and other payables
Trade payables 109.075 120.651
Debt to subsidiaries – non-interest-bearing 8.592 5.954
Other debt 25.119 27.885
Total trade payables and other payables 142.786 154.490
Substantially all trade payables and other payables fall due within one year.
19 Income tax
Tilgodehavende selskabsskat 1 January (2.152) 1.789
Additions by mergers (378) 0
Current tax for the year 15.276 9.805
Taxes due recognised in equity 0 1.432
Income tax paid during the year (13.069) (15.178)
Income tax at 31 December (323) (2.152)
which is specified as follows:
Income tax receivable (323) (2.152)
Income tax at 31 December (323) (2.152)
20 Changes in working capital
Change in inventories 27.784 12.343
Change in receivables (24.760) (27.966)
Change in trade payables and other payables (15.449) 3.239
Total changes in working capital (12.425) (12.384)
21 Adjustment for non-cash transactions
Purchase of property, plant and equipment, see note 11 33.878 13.284
Paid relating to purchase property plant and equipment 33.878 13.284
Financial liabilities incurred 1.506 1.527
of which lease debt (1.506) (1.527)
Proceeds from incurring financial liabilities 0 0
22
Cash and cash equivalents
Cash and cash equivalents 481 144
Total cash and cash equivalents 481 144
All amounts in DKK’000
Annual report 2024 | 77
Notes to the parent company financial statements
at 31 December
Note
31.12.2024 31.12.2023
23 Categories of financial assets and liabilities
Financial assets
Non-current assets
Other investments and securities (other shareholdings)
21 21
Available-for-sale financial assets *)
21 21
Current assets
Trade receivables
174.499 179.486
Other receivables
204.275 261.649
Cash and cash equivalents
481 144
Receivables
379.255 441.279
Financial liabilities
Non-current liabilities
Debt to mortgage-credit institutions
53.176 55.631
Other credit institutions
3.419 1.529
Debt to subsidiaries
5.255 17.752
Debt to parent company
200.000 500.000
Financial liabilities at amortised cost
261.850 574.912
Current liabilities
Debt to mortgage-credit institutions
2.450 2.129
Other credit institutions
2.174 1.318
Debt to parent company
502.144 202.441
Debt to subsidiaries
8.697 7.202
Trade payables and other debt
133.630 148.536
Financial liabilities at amortised cost
649.095 361.626
Other debt (derivative financial instruments)
564 0
Trading portfolio **)
564 0
*) Unlisted shares, stated at estimated value (level 3)
**) Financial instruments valued by external credit institutions using generally accepted valuation
techniques on the basis of observable data (level 2).
All amounts in DKK’000
Annual report 2024 | 78
Notes to the parent company financial statements
at 31 December
Note
24 Financial risk
The Company’s risk management policy
Interest rate risks are described in greater detail in note 17.
Currency risk
Currency
Cash and
receivables Liabilities
Position
before
hedging
Hedged
using
financial
instruments
Position
after
hedging
USD/DKK 7.142 (11.493) (4.351) 0 (4.351)
GBP/DKK 0 (1.000) (1.000) 0 (1.000)
SEK/DKK 113.192 (75.802) 37.390 0 37.390
NOK/DKK 4.968 0 4.968 0 4.968
CNY/DKK 11.669 (2.255) 9.414 (9.412) 2
CAD/DKK 0 (1.867) (1.867) 0 (1.867)
It is the Company’s policy to hedge significant transaction risks related to future income streams not
naturally covered through purchases and sales. As a general rule, currency risks are hedged by way
of forward contracts with a duration of up to 12 months. The market value of currency hedges was a
debt of 564 DKK thousand (2023: An asset of DKK 292 thousand).
Due to the nature of its operations, investments and financing, the Company is exposed to changes
in exchange rates and interest rates. It is company policy to not actively speculate in financial
instruments. Accordingly, the Company’s financial management exclusively involves the
management of financial risk relating to its operations and investments.
Set out in the table below is the Company’s overall foreign exchange position at 31 December,
determined by aggregating the gross currency risks of the individual group companies.
A 5% depreciation of currencies in which the Company has significant exposure, based on the
Company’s functional currency, would impact profit for the year by about DKK 1,757 thousand (2023:
DKK 60 thousand). The amounts are based on balance sheet items at 31 December 2024.
The parent company’s currency risks in the balance sheet at 31 December 2024 translated to
DKK
Due to the currency peg to the Euro, no real currency risk is considered to exist between DKK and
EUR, and this is omitted from the table above.
All amounts in DKK’000
Annual report 2024 | 79
Notes to the parent company financial statements
at 31 December
Note
24 Financial risk (continued)
Currency
Cash and
receivables Liabilities
Position
before
hedging
Hedged
using
financial
instruments
Position
after
hedging
USD/DKK 1.420 (41.796) (40.376) 0 (40.376)
GBP/DKK 0 (714) (714) 0 (714)
SEK/DKK 116.822 (77.378) 39.444 0 39.444
NOK/DKK 443 0 443 0 443
CNY / DKK 10.521 0 10.521 (9.469) 1.052
CAD/DKK 0 (1.044) (1.044) 0 (1.044)
Credit risk
Capital management
Liquidity risk
31.12.2024 31.12.2023
At 31 December, the Group’s cash resources consisted of:
Available operating credits 580.183 255.428
Drawn operating credits (510.935) (209.760)
Amount in the cash pool scheme 2.782 1.093
Cash and cash equivalents 481 144
72.511 46.905
It is the Group’s policy as a general rule to distribute the profit for the year after tax, in due considerati-
on of changes to the balance sheet and special liquidity requirements with respect to investments.
Dividend payments must be made in due consideration of the target level of equity.
The Company’s credit risk is primarily related to trade receivables. The Company seeks to avoid signi-
ficant exposure to individual customers or business partners. The Company’s policy for undertaking
credit risks involves regular credit assessments of all major customers.
The Company regularly assesses the need for adjustment of the capital structure to weigh up the
higher required rate of return against the increased uncertainty related to debt financing. The ratio of
equity to total liabilities was 52,7% at 31 December 2024 (2023: 50,6%).
To ensure that the Company always has the necessary cash resources to capitalise on any invest-
ment opportunities that may arise and to be able to settle liabilities, the Company has entered into
several agreements with recognised financial institutions, under which they provide credit lines to the
Company.
The parent company’s currency risks in the balance sheet at 31 December 2023 translated to
DKK
All amounts in DKK’000
Annual report 2024 | 80
Notes to the parent company financial statements
at 31 December
Note
25 NIBD
Change in NIBD for the year:
Non-cash items
1 January Cash flows
For. ex.
adjustments Other
31
December
Interest-bearing assets:
197.915 (74.513) (3.697) 0 119.705
Cash and cash equivalents 144 337 0 0 481
Interest-bearing liabilities:
55.631 (2.455) 0 0 53.176
500.000 (300.000) 0 0 200.000
2.129 321 0 0 2.450
227.395 288.701 0 0 516.096
Credit institutions (current) 117 (23) 0 0 94
Lease debt 2.730 1.263 0 1.506 5.499
NIBD 589.943 61.983 3.697 1.506 657.129
26 Operating lease liabilities and rent commitments
Operating leases and rent commitments: Property Cars Total
Falling due within 0-1 years 0 0 0
Total 0 0 0
Operating leases and rent commitments: Property Cars Total
Falling due within 0-1 years 390 0 390
Total 390 0 390
27 Contingent liabilities and guarantees
Contingent liabilities
Current receivables, group
companies
Debt to mortgage-credit
institutions (non-current)
Non-current debt to group
companies
Current portion of non-current
liabilities
31.12.2024
31.12.2023
The Company is jointly taxed with the other Danish companies of the Schouw & Co. Group. As a
group company, the Company is jointly and severally liable with the other Danish group companies
for Danish income tax and withholding tax on dividends, interest and royalties within the joint tax pool.
The net liability of the jointly taxed entities to SKAT is specified in the consolidated financial
statements of the management company. Any subsequent corrections in income subject to joint
taxation, withholding taxes on dividends, etc. may result in the Company’s tax liability increasing.
Lease liabilities are measured at net present value. Operating lease liabilities comprise minor assets
and leases with terms of less than one year.
Current debt to group
companies
All amounts in DKK’000
Annual report 2024 | 81
Notes to the parent company financial statements
at 31 December
Note
27 Contingent liabilities and guarantees (continued)
Guarantees
31.12.2024 31.12.2023
The following assets have been provided as security to credit institutions:
Land and buildings with a carrying amount of 63.572 64.126
The above assets have been provided as security for the Group’s debt to credit and mortgage-credit
institutions of DKK 55,626 thousand (2023: DKK 57,760 thousand).
HydraSpecma is predominately financed by resources of the parent company Schouw & Co. as well
as a number of committed and to a lesser extent uncommitted credit facilities.
The parent company’s source of financing is primarily composed of a syndicated banking facility,
which in December 2020 was refinanced with a total facility framework of DKK 3,275 million. The
facility expires 10th of January 2026 and has an outstanding of DKK 1.223 million.
In April 2019 and in November 2023, Schouw & Co. issued Schuldschein transactions of EUR 136
million, and EUR 225 million. The amount outstanding on the Schuldscheins is EUR 252 million (DKK
1,879 million) with expiries in April 2026, November 2026, November 2028 and November 2030.
In December 2021, a loan was established for a total of DKK 400 million with Nordic Investment Bank
for specific capacity and development investments. The loan has an outstanding of DKK 356 million
and expires in December 2028.
In 2022 and 2023, Schouw & Co. established a number of term loans. Of these loans only one loan
remains with an outstanding amount of DKK 350 million and expiry in January 2025.
HydraSpecma, like other major subsidiaries in Schouw & Co., co-guarantees the aforementioned
facilities totaling DKK 7.020 million, where of DKK 4,969 million is utilized per 31/12-2024. In addition,
a smaller facility totaling DKK 43 million is guaranteed, where of DKK 34 million is utilized.
In June 2024, Schouw & Co. issued a bond in the Norwegian bond market with a nominal value of
NOK 1,300 million. The bond was further supplemented with an additional NOK 500 million in
September 2024 to a total of NOK 1,800 million (DKK 1,161 million). To eliminate any currency risk,
the nominal amount and all future interest payments is swapped to DKK.
All amounts in DKK’000
Annual report 2024 | 82
Notes to the parent company financial statements
at 31 December
Note
28 Related party disclosures
Related parties are described in note 27 to the consolidated financial statements.
In addition, the parent company had the following transactions with group companies:
2024 2023
Subsidiaries:
Divestments
64.438 53.004
Acquisitions
7.654 8.032
Management fee - income
90.535 28.566
Royalty fee - income
2.877 2.858
Interest income
6.261 9.611
Interest expenses
820 942
Parent company:
Management fee - expense
2.500 1.950
Interest expenses
27.897 22.630
Payment to Schouw & Co. for share option programme
3.435 4.309
29 Pillar Two
30 Accounting policies
See note 32 to the consolidated financial statements.
31 New financial reporting regulations
See note 31 to the consolidated financial statements.
The Pillar Two legislation was enacted in Denmark in December 2023 and has been effective for the
Group's financial year beginning 1 January 2024. It implies that the HydraSpecma Group will be
required to pay top-up tax on profits of its subsidiaries to the Danish tax authorities if these are taxed
locally at an effective tax rate of less than 15 percent minimum tax. If the relevant juridictions have
enacted local top-up tax rules, the top-up tax will be paid locally. The top-up tax will be included in the
HydraSpecma Group's annual report.
For the first three years, safe-harbour rules are in force. The safe-harbour rules imply that one out of
three simplified tests should be passed to fall outside the Pillar Two legislation. These tests are
based on numbers reported for the group annual report and country-by-country reporting for 2024.
The parent company’s receivables from group companies at 31 December are detailed in note 14.
The parent company’s debt to group companies is detailed in notes 17 and 18.
The assessment based on these numbers indicates that the jurisdictions of the HydraSpecma Group
should not be exposed to top-up tax of the Pillar Two legislation in 2024, mainly because the effective
tax rate in each of the jurisdictions amounts to 15% or higher.
The Group has applied the temporary exception issued by IASB in May 2023 from the accounting
requirements for deferred taxes in IAS 12. Accordingly, the group neither recognizes nor discloses
information about deferred tax assets and liabilities to Pillar Two income taxes.
All amounts in DKK’000
Annual report 2024 | 83
© HydraSpecma · Annual report 2024 · 03.2025
HydraSpecma A/S
Bækgårdsvej 36
6900 Skjern
+4597350599
HSDK@hydraspecma.com
hydraspecma.com
Annual reportAuditor's report on audited financial statementsParsePort XBRL Converter2024-01-012024-12-312023-01-012023-12-315493003X6V92B0BSLH27Regnskabsklasse C, stor virksomhedOpinionBasis for Opinion5493003X6V92B0BSLH272024-01-012024-12-31cmn:ConsolidatedMember5493003X6V92B0BSLH272024-01-012024-12-315493003X6V92B0BSLH272023-01-012023-12-315493003X6V92B0BSLH272024-12-315493003X6V92B0BSLH272023-12-315493003X6V92B0BSLH272022-12-315493003X6V92B0BSLH272022-12-31ifrs-full:IssuedCapitalMember5493003X6V92B0BSLH272023-01-012023-12-31ifrs-full:IssuedCapitalMember5493003X6V92B0BSLH272023-12-31ifrs-full:IssuedCapitalMember5493003X6V92B0BSLH272022-12-31ifrs-full:ReserveOfCashFlowHedgesMember5493003X6V92B0BSLH272023-01-012023-12-31ifrs-full:ReserveOfCashFlowHedgesMember5493003X6V92B0BSLH272023-12-31ifrs-full:ReserveOfCashFlowHedgesMember5493003X6V92B0BSLH272022-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember5493003X6V92B0BSLH272023-01-012023-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember5493003X6V92B0BSLH272023-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember5493003X6V92B0BSLH272022-12-31ifrs-full:RetainedEarningsMember5493003X6V92B0BSLH272023-01-012023-12-31ifrs-full:RetainedEarningsMember5493003X6V92B0BSLH272023-12-31ifrs-full:RetainedEarningsMember5493003X6V92B0BSLH272022-12-31HYD:DividendsProposedOrDeclaredBeforeFinancialStatementsAuthorisedForIssueButNotRecognisedAsDistributionToOwnersRecognisedInEquityMember5493003X6V92B0BSLH272023-01-012023-12-31HYD:DividendsProposedOrDeclaredBeforeFinancialStatementsAuthorisedForIssueButNotRecognisedAsDistributionToOwnersRecognisedInEquityMember5493003X6V92B0BSLH272023-12-31HYD:DividendsProposedOrDeclaredBeforeFinancialStatementsAuthorisedForIssueButNotRecognisedAsDistributionToOwnersRecognisedInEquityMember5493003X6V92B0BSLH272022-12-31ifrs-full:EquityAttributableToOwnersOfParentMember5493003X6V92B0BSLH272023-01-012023-12-31ifrs-full:EquityAttributableToOwnersOfParentMember5493003X6V92B0BSLH272023-12-31ifrs-full:EquityAttributableToOwnersOfParentMember5493003X6V92B0BSLH272022-12-31ifrs-full:NoncontrollingInterestsMember5493003X6V92B0BSLH272023-01-012023-12-31ifrs-full:NoncontrollingInterestsMember5493003X6V92B0BSLH272023-12-31ifrs-full:NoncontrollingInterestsMember5493003X6V92B0BSLH272024-01-012024-12-31ifrs-full:IssuedCapitalMember5493003X6V92B0BSLH272024-12-31ifrs-full:IssuedCapitalMember5493003X6V92B0BSLH272024-01-012024-12-31ifrs-full:ReserveOfCashFlowHedgesMember5493003X6V92B0BSLH272024-12-31ifrs-full:ReserveOfCashFlowHedgesMember5493003X6V92B0BSLH272024-01-012024-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember5493003X6V92B0BSLH272024-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember5493003X6V92B0BSLH272024-01-012024-12-31ifrs-full:RetainedEarningsMember5493003X6V92B0BSLH272024-12-31ifrs-full:RetainedEarningsMember5493003X6V92B0BSLH272024-01-012024-12-31HYD:DividendsProposedOrDeclaredBeforeFinancialStatementsAuthorisedForIssueButNotRecognisedAsDistributionToOwnersRecognisedInEquityMember5493003X6V92B0BSLH272024-12-31HYD:DividendsProposedOrDeclaredBeforeFinancialStatementsAuthorisedForIssueButNotRecognisedAsDistributionToOwnersRecognisedInEquityMember5493003X6V92B0BSLH272024-01-012024-12-31ifrs-full:EquityAttributableToOwnersOfParentMember5493003X6V92B0BSLH272024-12-31ifrs-full:EquityAttributableToOwnersOfParentMember5493003X6V92B0BSLH272024-01-012024-12-31ifrs-full:NoncontrollingInterestsMember5493003X6V92B0BSLH272024-12-31ifrs-full:NoncontrollingInterestsMember5493003X6V92B0BSLH272024-01-012024-12-31cmn:ConsolidatedMember15493003X6V92B0BSLH272024-01-012024-12-31cmn:ConsolidatedMember25493003X6V92B0BSLH272024-01-012024-12-31cmn:ConsolidatedMember15493003X6V92B0BSLH272024-01-012024-12-31cmn:ConsolidatedMember25493003X6V92B0BSLH272024-01-012024-12-31cmn:ConsolidatedMember35493003X6V92B0BSLH272024-01-012024-12-31cmn:ConsolidatedMember45493003X6V92B0BSLH272024-01-012024-12-31cmn:ConsolidatedMember55493003X6V92B0BSLH272024-01-012024-12-31cmn:ConsolidatedMember15493003X6V92B0BSLH272024-01-012024-12-31cmn:ConsolidatedMember2iso4217:EUR