Strengthening
the ecosystem.
Accelerating
construction.
Annual report 2024
CVR No 20 75 01 70
The Annual Report was
presented and adopted at
the Annual General Meeting
of the Company on:
Chairman of the AGM
Together, we eliminate
downtime to build the
most useful industry
for the world
Our purpose
Our approach is human,
collaborative and based on
openness and co-creation. We
are driven by a design thinking
approach, being empathetic,
iterative and always striving for
an ecosystem-wide impact.
Downtime is the core of all
problems in the construction
industry. We address it through
five key areas, looking at
downtime through the lens of
machines, humans, companies,
our industry as a whole and
society at large. Eliminating
Downtime is the contribution
made to create an impact
beyond the industry because it
exists in the world, for the world.
Construction is a very big
player in the world, and we have
at least the same aspirations so
that the industry can consciously
create an impact for the world.
By doing so, we deliberately
balance an inwards focus with
an outwards outlook because
long-term relevance for any
ambitious company will also be
measured in the contribution
outside of the industry.
We are builders and doers
by heart and committed to
turn every relevant idea into a
catalyst for change.
Being useful is the core DNA of
our company. We always strive to
walk on two legs, driving a highly
commercial and impact-focused
agenda at the same time.
Trackunit’s platform-driven
approach to construction
accelerated in 2024 with the
introduction of operating data
platform IrisX. It’s a new era for
business and we’re co-creating
with our customers to create
fresh, ecosystem value.
Management report Financial report
Our story
Connecting construction
Platform-driven growth
Five year overview
CEO letter
01. The big picture
What we do
Autonomy. Responsibility. Flexibility.
The wheel keeps turning
Data. Insight. Impact.
Platform for the future
Accelerating momentum
Breaking new ground
Bridging connectivity
02. We are Trackunit
Environment
Societal
Governance
03. ESG
Financial review
04. Financial review
Financial statements
Notes
05. Consolidated financial statements
Financial statements
Notes
06. Parent financial statements
Management statements
Independent auditor's report
07. Statements
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We are Trackunit Financial review StatementsParent company financial statementsESG Consolidated financial statementsThe big picture
The big picture
01
"Trackunit is facilitating innovative solutions for construction that
will light the path to greater operational efficiency enabling
better sustainability decisions. That will lead to an even more
progressive role for construction in society as the industry-wide
battle against downtime gathers momentum."
Søren Brogaard, CEO at Trackunit
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We are Trackunit Financial review StatementsParent company financial statementsESG Consolidated financial statements
The big picture
The big picture
1998 2003-15 2016-21 2022 2023 2024
Our story
↓
Trackunit is the global leader in brand-agnostic,
SaaS-based loT solutions connecting off-highway
vehicles and equipment in construction with a data-
driven approach predicated on delivering actionable
insights across a connected and secure ecosystem.
M-Tec A/S
established.
Trackunit brand established.
Trackunit subsidiaries
established across Western
Europe.
Trackunit acquired by
investment group of Goldman
Sachs and GRO
Entry into the North American
market.
Trackunit Iris platform launched
to market.
Acquires Dreyer & Trimm, and
Satrak.
Eliminate Downtime movement
launched.
Trackunit Kin and bluetooth
Network introduced to market.
Entry into APJ market.
Trackunit acquired by Hg
Capital.
Trackunit acquires Industrial
IoT division of ZTR.
Circa DKK 1 billion net revenue.
Launches 5G, second-genera-
tion Spot connecting high-val-
ue, non-powered assets to
ecosystem.
Stages first-ever Trackunit NEXT
event.
Trackunit Kin wins Rental
Awards Editor’s Choice 2022.
Posts net revenue of DKK 1.2b.
Acquires German ConTech
Flexcavo, US deployment
specialist OEMSi.
Launches Emissions Reporting
solutions; new-gen Access
Management.
Initial launch of Marketplace
and Platform SDK to facilitate
ecosystem co-creation and
empower partners
Posts year-on-year (YoY) net revenue rise
of 10% to DKK 1.29b.
Annual recurring software revenue (ARR) DKK 812.6m
More than 3 million assets connected.
Launches IrisX, the first operating data platform
specifically tailored to the construction industry.
Consolidates market-leading, thought leadership
position on sustainability with publication of
'Constructing a better future' paper.
Introduces Trackunit Pass, new-gen Raw, Specialty
Equipment, and Network Solutions to market.
5
We are Trackunit Financial review StatementsParent company financial statementsESG Consolidated financial statements
The big picture
The big picture
Connecting
construction
17 120+ 1,200+ 26k
Global
hubs
Countries in the
global ecosystem
IrisX Platform
integrations
Monthly
active users
↓
Trackunit is present in more than 120 countries, has a Bluetooth Network
covering circa 100,000 jobsites around the globe and connects more than 3 million
assets, connecting construction like never before. We also have more than 1,200 IrisX
integrations on the Trackunit platform, enabling our customers to leverage AI-
powered actionable insights that directly impact their businesses, help to develop
the ecosystem and strengthen the relentless, industry-led battle against downtime.
6
We are Trackunit Financial review StatementsParent company financial statementsESG Consolidated financial statements
The big picture
The big picture
Platform-driven
growth
812m 1.67m 1.29b 374m
33%
39%
35%
38%
Annual recurring software
revenue (ARR) in DKK
Number of
subscriptions
Net revenue
in DKK
EBITDA
in DKK
2024
Compound Annual Growth Rate (CAGR) 2020-2024
↓
Our platform-driven approach to construction
accelerated in 2024 with the introduction of operating
data platform IrisX. That means we are now able to deliver
even more co-creation opportunities for real customer
impact in a secure, growing ecosystem. We’re building
scale for our customers and are ready for the next step.
60%
30%
0%
EBITDA as %
of revenue
Share of recurring
revenue (as % of
net revenue)
29% 95%
7
We are Trackunit Financial review StatementsParent company financial statementsESG Consolidated financial statements
The big picture
The big picture
' DKK
Recurring revenue % of total revenue (non IFRS measure)
,% .% .% .% .%
ARR - Annual recurring software revenue (non IFRS measure)
, , , , ,
No of subscriptions - End of year (non IFRS measure)
,, ,, ,, ,, ,
Net revenue ,, ,, , , ,
Adjusted Earnings before special items, depreciation, amortisation and impairment (Adj. EBITDA)
, , , , ,
Earnings before special items, depreciation, amortisation and impairment (EBITDA) , , , , ,
Earnings from financial items, net (,) (,) (,)
Profit for the period , , (,) (,) ,
Investments in PPE , , , , ,
Total assets ,, ,, ,, ,, ,
Equity ,, ,, ,, ,, ,
Average number of employees
Ratios
Return on equity (%) . . (.) (.) .
Equity ratio (%) .% .% .% .% .%
Five year overview
Non IFRS measure are unaudited.
Adjusted EBITDA = EBITDA before nonrecurring items – Non IFRS measure are unaudited. Management considers items totaling DKK.m ( DKK.m) as non-recurring. This includes costs for
sharebased payments of DKK.m and longer term growth initiatives of DKK.m. However, for External Financial Reporting these items have been expensed as ordinary.
The key figures and financial ratios
have been prepared on a consolidat-
ed basis. The financial ratios have
been calculated in accordance with
the recommendations of the
Association of Danish Financial
Analysts.
• Equity ratio is calculated as the
equity divided by total assets.
• Return on equity is calculated as
the profit or loss for the year
before tax divided by the average
equity.
The additional key figures (non IFRS
measures) have been prepared on a
consolidated basis. The additional
key figures are calculated in
accordance with customs within the
industry.
• Recurring revenue % of total
revenue is calculated as the
revenue recognized over time in
percentage of the total revenue.
• Annual recurring revenue is
calculated as the recurring
revenue in the last month of the
reporting period times 12.
The acquisition of the Industrial IOT
division from ZTR Control Systems,
LLC, ZTR Holdings LLC and Trac Rail
Inc. (ZTR IIOT) was completed on
18th of November 2021 and consoli-
dated from this date.
8
We are Trackunit Financial review StatementsParent company financial statementsESG Consolidated financial statements
The big pictureThe big picture
The big picture
' USD
Recurring revenue % of total revenue (non IFRS measure)
.% .% .% .% .%
ARR - Annual recurring software revenue (non IFRS measure)
, , , , ,
No of subscriptions - End of year (non IFRS measure)
,, ,, ,, ,, ,
Net revenue , , , , ,
Adjusted Earnings before special items, depreciation, amortisation and impairment (Adj. EBITDA)
, , , , ,
Earnings before special items, depreciation, amortisation and impairment (EBITDA) , , , , ,
Earnings from financial items, net (,) (,) (,)
Profit for the period , , (,) (,) ,
Investments in PPE ,
Total assets , , , , ,
Equity , , , , ,
Average number of employees
Ratios
Return on equity (%) . . (.) (.) .
Equity ratio (%) .% .% .% .% .%
Non IFRS measure are unaudited.
Adjusted EBITDA = EBITDA before nonrecurring items – Non IFRS measure are unaudited. Management considers items totaling USD5.0m (2023 USD6.6m) as non-recurring. This includes costs for
sharebased payments of USD2.7m and longer term growth initiatives of USD2.3m. However, for External Financial Reporting these items have been expensed as ordinary.
The key figures are translated from
DKK to USD as follows:
• Assets, liabilities, and equity are
translated at the closing rate at
the date of the balance sheet.
• Income and expenses are
translated at average exchange
rate for the year; except for
annual recurring revenue which is
translated at average exchange
rate for the last month of the year.
2020-2024
3.7
Subscriptions
3.7
EBITDA
2.5
Employee number
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We are Trackunit Financial review StatementsParent company financial statementsESG Consolidated financial statements
The big pictureThe big picture
The big picture
Accelerating
the ecosystem
When change happens, it often happens fast. And yet
the paradox of rapid change is that business often
continues to function the way it always has until the new
reality creates a case that is compelling. That is, at least
to some extent, how 2024 played out.
At Trackunit, we entered the year fully aware that we
were on the cusp of a seismic evolution. Gartner’s late
2023 report had already highlighted the global rise of
Industry Cloud Platforms (ICPs), predicting their
profound impact in the years to come.
What it described was more than just a trend — it was
the foundation of a new operational paradigm. And as
we too were already grappling with the implications of
generative AI for construction, we knew that, by
leveraging the technology, we could elevate our
well-established, platform-driven approach to a new level
that would be even more useful to our customers.
In 2024, that vision became reality.
↓
A global, business transformation gathered
pace in 2024 rippling through the ecosystem of
real-time operating data in construction, top to
bottom. Welcome to a new era of fresh customer
value and co-creation.
10
We are Trackunit Financial review StatementsParent company financial statementsESG Consolidated financial statements
The big picture
site comparison of external rental assets to internal
assets to optimize usage and minimize costs.
All these revenue-generating examples show this
collaborative approach isn’t just a feature of IrisX; it
defines it. And our long-standing customers now have the
ability to act much more quickly.
That’s because by offering instant insights in a carefully
stewarded environment, Trackunit is facilitating fresh
solutions for construction that will, in turn, light the path
to greater operational efficiency for customers as well as
enabling better sustainability decisions. That, in time,
will lead to an even more progressive role for construc-
tion in society as the industry-wide battle against
downtime gathers momentum.
New responsibility
This breakthrough has placed a new responsibility on
Trackunit. We are not just a technology provider; we are
partners in facilitating our customers to adapt to and
leverage change that offers them a real competitive
advantage. It is our job to ensure that advantage is fully
realized in a safe cyber-secure environment.
Thankfully, we have the people to make it happen. Our
triple-focus model fosters a holistic approach to challeng-
es by emphasizing individual impact, collective team
strength, and their subsequent alignment with Trackunit’s
purpose and strategy that drives progress at every level.
This living, breathing dynamic fosters an environment
where our teams can thrive and create additional
solutions for customers like Trackunit Pass, Network
Solutions, Specialty Equipment and the new-generation
Raw which all entered the market in 2024 in addition to
IrisX. The triple focus is underpinned by the company-wide
Mindful Leadership program, which emphasizes compas-
sion, awareness, inclusivity, and long-term sustainability.
That’s reflected in a Net Promoter Score (NPS) of 62
among our people — a remarkable accomplishment that
places Trackunit in the top 5% of SaaS companies
worldwide. To put this in perspective, the average NPS
among SaaS companies hovers around 20. And that
foundation puts our teams in a great position to focus on
cementing the trust of our partners.
This customer-centered philosophy has also been crucial
as we navigate the AI revolution. In 2024, we implemented
regular training programs to ensure that our teams are
equipped to understand and leverage AI in their work so
that they can turn that into tangible customer value. This
holistic, collaborative approach has been instrumental in
maintaining a leading position in a fast-changing industry.
The numbers speak for themselves. Despite an uncertain
macroeconomic environment, particularly in Europe,
Trackunit delivered in line with expectations for the year.
The construction equipment market has faced head-
winds in 2024, with OEM sales impacted by post-COVID
overproduction and dealer inventory saturation. While
global infrastructure investment signals longer-term
recovery, we expect stabilization in OEM production
volumes by late 2025, aligning with industry forecasts.
We achieved 17% year-on-year growth in annual recurring
software revenue of USD 119.5 million, pivoting our
business model away from a reliance on underlying core
IoT towards multiple, software-led revenue streams with
stronger margin potential. Notably, that has included five
big construction partners signing up to IrisX.
That’s helped deliver an EBITDA of USD 54m, thanks in no
small part to our incredible customers. And that
software-led transition should by 2030 establish a
minimum 40% cash EBITDA position showcasing our
ability to adapt and grow in uncertain times.
Our technological ecosystem also continues to expand.
Trackunit now operates a Bluetooth Network Solution that
covers circa 100,000 jobsites globally. This network is
closing critical connectivity gaps, bringing everything from
heavy equipment to powered tools under a single umbrella.
Milestones
With more than 2 billion data points flowing through our
ecosystem daily and more than 3 million connected
assets worldwide, the scale and impact of our work are
growing exponentially.
But we’re not stopping there. Our ambitions for mutually
growing the off-highway ecosystem with our partners
are far-reaching and as AI evolves and integrates with
edge technologies, we have milestones that are not
distant aspirations — they are the logical destination.
With that, I invite you to explore our 2024 Annual Report.
It reflects not just the achievements of the past year but
the promise of what lies ahead. We continue to remain
steadfast in our constant commitment to eliminate
downtime. Thank you for being part of this journey.
Together, we can create an even better industry.
Søren Brogaard, CEO
Breaking new ground
In the Summer of 2024, we unveiled IrisX, Trackunit’s
cutting-edge operating data platform. IrisX is more than
an incremental improvement; it breaks new ground for
construction and our customers. It is, in effect, the
construction sector’s first ICP.
IrisX exponentially accelerates the customer journey
from insights to impact building on the data insights
delivered by our foundational platform Iris. It does so
with unprecedented speed, precision, and efficiency,
enabling customers to differentiate themselves in the
market and establish a unique position.
IrisX is more than a product – it is the cornerstone of a
new ecosystem that is able to build on the platform of
trust and collaboration that we have already established
with our customers.
The results of that are twofold: it consolidates Trackunit’s
unique leadership position in the ecosystem while
simultaneously empowering our partners to build
vertically-integrated solutions on top of the platform,
strengthening this spirit of co-creation.
That ecosystem has enormous room to grow. We
currently have something like 30% IoT penetration of
fleets but that will double by 2030. With a future market
growth of 13-15% per annum, we’ve put Trackunit in a
strong position through IrisX to take advantage of that
likely trajectory, while circumventing the often challeng-
ing macro environment that prevailed in 2024.
For our customers, that will translate into real business
difference. For an OEM, that could mean leveraging
remote diagnostics to reduce downtime. A rental could
turn data into actionable insights via automated
notifications targeting maintenance, emissions and
efficiencies. And a contractor could create a cross-job
11
We are Trackunit Financial review StatementsParent company financial statementsESG Consolidated financial statements
The big picture
We are Trackunit
02
“Trackunit serves as stewards of the ecosystem with a responsibil-
ity to empower customers and partners with best-in-class
solutions and unrivalled data-driven insights to navigate new
digital frontiers together.”
Evan Barnes, Chief Operating Officer at Trackunit
12
We are Trackunit
Financial review StatementsParent company financial statementsESG Consolidated financial statementsThe big picture
We are Trackunit
What we do
We enable our customers to grow
through powerful, actionable insights
that deliver impact through the organic
growth of a dynamic, evolving eco-
system of co-creation and innovation.
Trackunit collects machine and equipment data to
proactively deliver actionable, business-critical insights.
Underpinned by our software-first, platform-driven
approach, we empower customers with data-driven
intelligence across all of their visible assets to improve
their fleet and machine health & utilization, operator
safety and fuel management.
We are global and we are local. With offices in Europe,
North America and Asia, we deliver industry-leading
solutions with teams at the ready to help customers on
every step of their digital journey towards business
efficiency and competitive advantage.
From deployment and installation, to customer care and
software integration with a deliberate, platform-driven
approach, we offer tiered customer subscriptions and
add-on applications that enable quick and easy access
to meaningful data.
We are a purpose-driven organization with highly-en-
gaged employees and are on a mission to tackle
long-standing challenges with digital innovation to help
eliminate downtime in construction. This mission is not
only to help the industry to recover from budget and
schedule overruns, but also to re-establish the reputation
of the industry for innovation and leadership.
13
We are Trackunit
Financial review StatementsParent company financial statementsESG Consolidated financial statementsThe big picture
We are Trackunit
Autonomy. Responsibility.
Flexibility.
At Trackunit, our actions are guided by the triple-focus
model. It’s the platform for every one of our team to drive
their own development, take ownership and to align their
actions with their team and the company mission.
Just as we are part of an ecosystem that drives construc-
tion towards a better future through data sharing,
transparency and connectivity, our impact conversa-
tions foster an environment within Trackunit that we
believe creates the optimum conditions for creativity,
innovation and work health.
If our employee Net Promoter Score (NPS) of 62 is
anything to go by, then it evidently works. That places
Trackunit in the top 5% of SaaS companies worldwide and
way above the average NPS in our sector of around 20.
We’ve taken a very deliberate hybrid approach to the
workplace at Trackunit giving autonomy to the teams to
decide how they work best. We believe by fostering
flexibility and responsibility, we are able to ensure a
highly empowered, engaged and inclusive organization
globally.
Our regular Peakon evaluations show autonomy and
flexibility not only trend high, they are also strengthen-
ing with each corresponding round. Both respectively
scored 75 in the October 2024 survey, up two and six
points from January 2024 and significantly above
industry benchmarks of circa 60. We also trended well
above the industry benchmark for meaningful work and
freedom of opinion indicating we have a work environ-
ment that encourages discussion and initiative.
While we can’t draw a definitive parallel between those
scores and programs like Mindful Leadership; Trackunit
Inclusivity, Diversity and Equity (TIDE); and the mental
health partnership with the Lighthouse Club, the
consolidation of these initiatives through 2024 has no
doubt helped underpin engagement within the company.
We're also addressing gender imbalances with the
number of female applicants for positions in 2024
consolidating at 33%. Though a little short of our target,
we’re striving to make the company a place that is
attractive to everyone using our Develop Diverse tool to
ensure our language in, for example, recruitment
campaigns is as inclusive as possible.
This human-centered philosophy has also governed our
approach to the AI revolution with regular training aimed
at making sure every one of the team has the tools to
contribute within that framework and help us to maintain
our leadership position in a fast-changing industry.
It adds up to a compelling set up that we assess and
revise consistently in an effort to make it even better.
When you have a singular purpose like eliminating
downtime, laser-focus is key. And that’s why the health
and engagement of our teams is paramount to
everything we do.
↓
Trackunit’s triple-focus approach to the workplace
empowers our people to shape how they can best make their
contribution to our mission. It’s at the very heart of our DNA.
"At Trackunit, we have
great flexibility at
work, allowing us to
balance work and
personal life, always
thriving to do the best
as one team."
Giang Phuong Nguyen,
Senior Software Engineer
14
We are Trackunit
Financial review StatementsParent company financial statementsESG Consolidated financial statementsThe big picture
We are Trackunit
The wheel
keeps turning
↓
If you really want to understand what drives Trackunit,
our eliminate downtime wheel encapsulates it perfectly.
Together with our industry colleagues, we’ll keep rolling.
We've never wavered from our central purpose of
eliminating downtime at Trackunit, and our commitment
to this ultimate goal remains steadfast.
That’s why the eliminate downtime wheel is at the core of
everything we do. We believe only an industry-wide led
drive to end downtime can succeed and when that
happens, it will not only benefit Trackunit as an organiza-
tion, it will also benefit construction and benefit society.
That’s the essence of the ecosystem that has gradually
evolved in the segment of construction and which we’ve
strengthened in 2024 with the introduction of our
operating data platform IrisX.
With harmonized data continuing to be the lifeblood of
the ecosystem via our Iris platform founded in 2016, it
means we are putting in the hands of our customers the
digital tools they need to improve their business, sharpen
their processes and make their contribution to the effort
to end downtime faster than ever before.
This isn’t utopia. This is an inevitable outcome of the
digitilization journey in which we are all engaged, and
which will step-by-step break down the obstacles that
hinder construction.
When that happens, depictions of the industry as harsh
and polluted will no longer rule. Instead, with digitiliza-
tion embedded into everything we do, emissions
reduced, an improved safety record, and a smarter, more
diverse workforce in place, we will once again restore the
reputation of construction as a force for good in the
world.
We’ll be remembered for the schools, the hospitals and
the roads we build, the innovative ways we make our
houses better and greener, and the joined-up city-plan-
ning that puts safety, efficiency and health at the center
of everything we do.
This is what drives the wheel. And as we integrate AI, the
momentum will become unstoppable. Let’s roll.
Machine Human
Company
Industry
Society
Eliminate
Downtime
The Eliminate Downtime
model is the essential DNA
of Trackunit enabling an
ecosystem that is intent on
addressing inefficiency in
construction, connecting
stakeholders and
addressing society's
challenges together.
15
We are Trackunit
Financial review StatementsParent company financial statementsESG Consolidated financial statementsThe big picture
We are Trackunit
Data. Insight.
Impact.
The case for data in construction is not just compelling, it is
overwhelming. Businesses — be it OEMs, contractors,
rentals or dealers — hunger for it and grapple daily with
turning it into insights that impact the way they do business.
But it’s not easy. In fact, in an industry as fragmented as
construction, it’s extremely complex. Turning data into
meaningful insight takes time, resource and an extraordi-
nary amount of number crunching.
At Trackunit, that’s what we do. Our Iris platform is the
engine dealing with more than two billion data points
daily, harmonizing those numbers into insights that
unlock new ways of doing business and give our
customers competitive edge.
Our teams work with purpose and discipline to unlock
impact for customers. It means that we not only gather
the data, we share that data through the ecosystem in a
way that is useful and productive for business and for
society.
By streamlining the process, we’re playing our part in
the industry-wide battle to eliminate downtime and drive
construction forward. That’s an end to budget overruns,
delays, and pollution-heavy processes, and opening up
a path towards a better safety record, more diversity
and the gradual reduction of emissions attributable to
the industry.
It’s not just about being successful - it’s about being
useful. And being useful in a sustainable way is the only
way forward.
Let's keep the momentum. Together, we can end
downtime.
↓
Data becomes insight only when it is filtered and harmonized.
And competitive edge only comes when insight delivers impact. It’s this
fundamental relationship that underpins our role in the ecosystem.
16
We are Trackunit
Financial review StatementsParent company financial statementsESG Consolidated financial statementsThe big picture
We are Trackunit
Platform for
the future
We have often talked about the expansion of the
construction ecosystem. It’s a depiction that still stands
in 2024, but it’s perhaps more accurate to say a new
ecosystem is emerging.
That’s because with the advent of IrisX, everything on the
road from data to insight to impact has accelerated
exponentially.
The fundamentals remain the same. The Iris platform
continues to deliver high-quality, harmonized data to
customers to underpin the ecosystem, delivering a
step-by-step reduction in the complexity that character-
izes construction.
But IrisX adds the new factor of pace to the engine.
Imagine what mobile technology did for communica-
tions. That’s what the emergence of the ICP era is doing
for business. It’s a super fuel that is accelerating
everything.
↓
A transformation in the way we do
business in 2024 has led to a new type of
ecosystem that blends the steady engine
reliability of our foundation platform Iris with
the super-charged impact of IrisX.
Drive business impact through:
• Informed aftermarket visibility on equipment
usage for commercial efforts
• Improve R&D efforts by providing real-time
machine performance data
• Over-the-air connection for aftermarket
services e.g. tech applications
• Improved profitability on lower-priced
machines
Boost bottom-line performances by:
• Up to a 20% improvement in aftermarket sales
• Up to a 5% reduction in equipment R&D costs
• Up to a 10% increase in sales and marketing
performance
Improve operations and efficiencies through:
• Depot optimization driving higher fleet
availability and revenue
• Digital workflows connecting teams across
locations
• Theft/loss prevention and improved recovery
rates
• Limiting downtime with predictive
maintenance efforts
Reduce downtime and project costs by:
• Up to 5% through identifying under-utilized
equipment Predictive maintenance initiatives
• Improving core sales by up to 20%
• Up to 15% through improving aftermarket
services
• Improving safety through digital access
control and operator integration
OEMs and Dealers
Fleet owners – Rental and Contractors
Operating
Data Platform
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Dealer
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We are Trackunit
Financial review StatementsParent company financial statementsESG Consolidated financial statementsThe big picture
In effect, we’ve created an environment where our
partners can take their insights from Iris and build their
own digital solutions leveraging IrisX. That’s not only
creating the conditions for niche products that will
evolve their own mini ecosystem, but also for an organic,
truly democratic ecosystem that aggregates all these
mini ecosystems together.
While Trackunit continues to guard and protect the
fundamental data architecture in its role as custodian of
a sometimes frontier-like environment, we facilitate the
conditions for our partners to leverage insights at pace
and co-create with us.
Contractors, OEMs, dealers and rentals can all tailor the
platform to unlock new business models that connect
their equipment, people, processes and stakeholders.
Not only will that deliver efficiency gains at the ground
level in a sometimes challenging macro-environment, it
will also have the inevitable impact of eliminating
downtime as on-the-ground changes aggregate to a
wider industry shift across the spectrum.
There is also an opportunity for software companies,
system integrators and startups to connect with the
ecosystem and offer new value.
We’ve seen that in action. And as connectivity grows,
and speed embeds, those intuitive, automated-led
actions will only become more and more frequent. It’s
changing the dynamics that underpin the ecosystem
and is changing off-highway construction for the better.
Ecosystem
Edge Connectivity
& Management
Trackunit Apps
& APIs
Trackunit Iris Operating
Data Platform
Entire ecosystem
connected via the
single platform
Flexible service
offerings and
platform extensions
Single scalable, secure and
open platform powering the
entire ecosystem with the
industry's leading data lake
Ecosystem partners
OEMs
System integrators
Rental
Industry associations
Contractor
Data Intelligence: Advanced analytics, Generative AI, and Automation engines
Data Orchestration: Data harmonization, processing, and storage
Edge connectivity with
global coverage, deep data
origination and local on-site
BLE network connectivity
Machines People Documentation
Third-party
data
Tools
Parts &
attachments
Software Applications Operating Data Platform
Data Ingest: IoT Connectivity, rd Party Data and OTA Control
Trackunit On
Trackunit Go Trackunit IrisX IoT Hub & APIs
Trackunit Iris
Dealers
Business impact from the edge to cloud
Trackunit Manager
Data Lake GenAI & ML
Analytics &
Insights
Integrations
& Connectors
Apps & Extensions Automation Studio
18
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Financial review StatementsParent company financial statementsESG Consolidated financial statementsThe big picture
We are Trackunit
Accelerating
momentum
Strategy
↓
As the world of business becomes more
complicated, we’re simplifying our strategy
to make sure we’re laser-focused on
delivering value to our customers.
We have been on a strategic mission to help our
customers unlock value and in 2024, we delivered. That
enables us to help build industry momentum collabora-
tively to solve long-standing downtime challenges that
will change the face of construction and incubate the
progress that works for everyone.
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19
We are Trackunit
Financial review StatementsParent company financial statementsESG Consolidated financial statementsThe big picture
01. 02. 03.
Expand breadth and
depth of data captured
Iris is the engine of Trackunit, capturing some
two billion data points daily. It takes that data
and harmonizes it to make it actionable and
insightful. And the more data we capture, the
more impactful we can be, consolidating our
core geographical scope in North America,
Europe, and Asia-Pacific-Japan.
We also in 2024 introduced TU700, the latest
version of Trackunit Raw that brings new
machine data to the forefront, enhances
machine integration, and delivers insights
through advanced Edge onboard processing
unlocking more value for customers.
We collect data across all asset classes and
every type of machine from highly complex,
specialty equipment all the way down to
handheld powered tools. That’s when we deliver
impact because with that vast data lake in place,
we have the evidence and the tools to harmonize
that data into real, actionable insights.
As a result, we are closing the connectivity gaps
to realize our goal of 100% connectivity across
all asset classes. That’s the fundamentals. And
from there, we look to drive impact for our
customers and enable them to onboard new
data sources easily and quickly.
Grow
platform value
We are a software-first organization that uses
our proven Iris platform to give our construction
partners the ability to create their own value.
They are able to develop their own proprietary
apps and digital solutions to fill niche gaps in
the market and help build the ecosystem
organically and in a way that is scalable.
Value also comes in the form of new innovative
products and services. Specialty Solutions has
brought complex machinery into the connectivi-
ty paradigm, Network Solutions does the same
for handheld powered tools, and the new-gener-
ation Trackunit Raw has in tandem with
Trackunit Pass, elevated our access-manage-
ment solution to help customers unlock
equipment sharing opportunities.
That’s underpinned by more than 3 million
connected assets across all classes closing
connectivity gaps and giving customers the
tools to eliminate downtime.
Accelerate
time to impact
It’s not enough to build great products. Impact
only happens if they are easy to use. Iris
platform value can be easily consumed via our
leading standard software solutions or more
advanced IrisX offering & API suite, accelerating
speed to insight and time to value for our
customers.
Customers can access a secure, ring-fenced
environment that enables them to build their
own proprietary apps at pace. Software
projects that would have taken 18-24 months
can now be finished in 30 days when businesses
integrate fully with IrisX.
They can also get products and insights
delivered easily through integrations and by
deploying applications via Marketplace for both
internal and external use. It’s useful, fast and
impactful, creating a new kind of ecosystem for
customer success and easy co-creation.
20
We are Trackunit
Financial review StatementsParent company financial statementsESG Consolidated financial statementsThe big picture
Successful businesses don’t thrive by standing still. And
German contractor Kemna has since it was founded in
1867 demonstrated an ability to shift with the times and
innovation to emerge as one of the major players in the
local construction market.
That was a fundamental driver that led the road
construction, asphalter and raw material extractor to
enter into a partnership with Trackunit in 2018, primarily
with a focus on location and better utilization of its
equipment including a strong bottom-line consideration
of becoming more efficient.
Germany’s Kemna has an ethos steeped in promoting more
sustainable solutions in its projects. It is little wonder then that
Trackunit’s emissions reporting software has become a key part
of its armoury in becoming a more efficient user of resources.
How Kemna arrived at
‘one mouse click’ away
from key emissions data
Customer case story: Kemna
Germany
Eliminating waste
“Back in 2018, we were paying for machines and then
quite often they weren’t getting used,” says Georg
Spoden, Kemna’s head of construction operations. “We
immediately saw how we could utilize Trackunit Raw to
get much better at the usage and renting of machines,
eliminating waste and improving our bottom line too.”
From there, the relationship has blossomed. From an
initial trial period with four machines fitted with Raw
devices, that has evolved into nearly 700 road
construction machines fitted. That has enabled
Pinneberg-headquartered Kemna to not only grasp
its maintenance needs more completely it has, says
Spoden’s colleague Guenay Karak, mitigated against
theft of its equipment.
“There has been occasions where we have been able to
intervene before our machines were taken out of the
country,” says the digital construction process expert.
“One time we got a notification that one of our wheel
loaders was approaching a border and we managed to
get the police onto it before it was gone.”
So far, so good then you might say and that’s where the
relationship might have stayed. But Kemna, which
employs more than 2,000 people, wanted more. In fact,
it was so interested in seeing what else that it could get
from the data that when Trackunit invited the company
to its Danish headquarters in November 2021, it came
armed with a targeted list that had a particularly heavy
focus on emissions.
“Kemna needs to get certifications for a whole variety of
reasons such as our mixing plants,” says Spoden. “We
already had some basic data to work on like our fuel usage,
but we wanted to know if there was the potential for more.
Hard data
“We were working in an environment where, if we wanted
to win some of the bigger state- and government-man-
dated projects, we had to show what we were able to do
through hard data and demonstrate what we were doing
to get emissions down,” says Kemna’s construction chief.
Indeed, it’s perhaps not an exaggeration that Kemna’s
feedback played a part in propelling Trackunit down a
path that was eventually to lead to the release of its
emissions reporting software in late 2023. And it was no
surprise either that Kemna became an early adopter.
“It’s difficult to overstate just how much more accurate
and better this has made us at being able to dig into the
detail of all our machines and improve the way we meet
our CSRD requirements,” says Spoden. “It’s enabled us
to have an overall picture of our sustainability in one
mouse click that strengthens our position when it comes
to getting important certificates and subsequently to be
a serious contender for bigger projects.”
For the future, Spoden is excited by what could come
next from Trackunit and he anticipates the general trend
towards ever stricter environmental criteria to drive the
market down the line.
“We expect benchmarking on emissions to become really
important over the coming years and our capability to
build this simply cannot be understated,” says Spoden.
“We are happy with our relationship with Trackunit and
look forward to seeing even more innovation down the line.”
21
We are Trackunit
Financial review StatementsParent company financial statementsESG Consolidated financial statementsThe big picture
We are Trackunit
Breaking
new ground
We have a boundless ambition at Trackunit to make great
products that build connectivity, and are useful for our custom-
ers and society as a whole. In 2024, we took that to a whole new
level with the introduction of our operating data platform IrisX.
IrisX is no ordinary product. It’s a purpose-built platform that
among other things, leverages generative-AI and machine
learning to give customers a competitive edge that will
eventually leave classic, business models trailing.
IrisX builds on our well-established, proven Iris platform that
has since 2016 amassed a huge data lake, to effectively
change the game. That's because it leverages a massive leap
in technology over the last 12-18 months.
In effect, IrisX is an industry cloud platform (ICP), a new way of
doing business that looks set to transform the way we create
value over the next few years. It is distinct from the generic Cloud
in a number of ways, but the most important is its vertically-inte-
grated structure that creates the perfect conditions for scaling
up, and its specific application only to a given industry.
That is exactly what IrisX offers construction. Our partners
can leverage the insights generated from the Iris platform to
build their own apps and extensions filling niches within
construction and effectively plugging connectivity gaps.
And because it is tailored, it means our partners can
immediately begin building solutions in a safe, secure
environment that lets them decide what data they wish to
share with the market. They also avoid the significant
challenges of digital transformation, such as high upfront
investment and a scarcity of resource in the knowledge they
can leverage IrisX for insights that are immediately impactful.
We are already getting significant traction and, as the
implications of new developments in the technology like
composite AI become clearer, that process will only
consolidate as the benefits of being on board become
overwhelming.
Elsewhere, this was another powerful year for connectivity as
the introduction of a number of new products including
Network Solution, Specialty Equipment and the latest version
of Trackunit Raw interlock with existing products like Kin and
Sites to overcome gaps and reduce complexity in construction.
Trackunit’s Bluetooth-enabled Network now offers global
coverage on circa 100,000 jobsites and we connect more
than 3 million visible assets through the off-highway
segment from handheld powered tools to the most complex,
large machines.
Trackunit Pass also made its market debut entry in 2024,
significantly enhancing our access management solution
with added layers of security for machine operators,
unlocking new business models for users and integrating
seamlessly with Trackunit Raw.
It adds up to an incredible year for Trackunit with IrisX set to be
at the heart of everything we will go on to do over the next few
years. We’re working hard to make it even better.
↓
Our platform-driven, software-first approach has
been a decade in the making, but this was the year we
took that to a new level thanks to our operating data
platform IrisX. But we didn’t stop there with new product
releases also gaining market traction.
22
We are Trackunit
Financial review StatementsParent company financial statementsESG Consolidated financial statementsThe big picture
We are Trackunit
Bridging connectivity
Every product solution we deliver to
the market helps plug the connectivity
gap and eliminate downtime. And
with that fundamental principle
underpinning everything we do, the
foundations for a truly connected
ecosystem are firmly in place.
↓
Explore our products
on the next pages
23
We are Trackunit
Financial review StatementsParent company financial statementsESG Consolidated financial statementsThe big picture
Software Enabling Devices Software Enabling Devices
Trackunit
IrisX
Trackunit
Iris
Trackunit’s IrisX strengthens
construction through a generative AI-led
operating data platform that is
vertically integrated and specifically
focused on construction. IrisX is the
commercial gateway to fully leverage
Iris, building on its robust foundation
with advanced tools for co-creation and
vertical integration, enabling customers
to transform insights into impact with
speed and precision, ensuring an
accelerated digital experience.
ISO-certified, it integrates seamlessly
across tech stacks, empowering users to
reduce downtime, optimize assets, and
streamline operations. IrisX exemplifies
innovation, helping companies scale
their digital capabilities efficiently and
sustainably.
Trackunit Iris has been the engine of
our platform-driven approach since its
inception in 2016 and will continue that
role underpinning everything we look to
achieve with IrisX over the coming years.
Designed to be safe, secure, and
scalable, Iris is also ISO 27001 certified
and delivers impactful insights via our
customer-facing Marketplace and its
extensive API suite.
With circa 3 million connected assets
and more than 2 billion data points
harmonized daily, Iris's ability to
aggregate mixed-fleet data on a single
platform, provides a single source of
data to foster new businesses and
accelerate connectivity.
24
We are Trackunit
Financial review StatementsParent company financial statementsESG Consolidated financial statementsThe big picture
Software Enabling Devices Software Enabling Devices Software Enabling Devices Software Enabling Devices
Trackunit
Manager
Trackunit
Go
Trackunit
On
Trackunit
Network
Trackunit Manager is the purpose-built fleet
management solution for construction, connecting,
collecting, and presenting real-time mixed-fleet and
site-data to customers on a single interface. It is total
overview. Total control. And complete focus.
Trackunit Manager allows customers to solve daily
pain points by (1) monitoring machines at all times
and preventing unauthorized access, (2) Receiving
intelligent notifications about location, maintenance,
and damages, (3) Remotely diagnosing machines by
using live data, and (4) pinpointing and addressing
irregularities in fleet-wide and site performance.
Trackunit Go allows seamless communication
between the operator, service technician and site
administrator, delivered via a mobile interface
regardless of location. Because the data is at their
fingertips, Go enables on-the-spot reporting, remote
diagnostics, and on-site, management-of-fleet
capabilities. For users, it is a complete tool for fleet
management at their disposal.
Trackunit On is the mobile application with the
capability to unlock machines and connect people
to equipment. It creates an on-site interface
allowing operators to conduct checklists and inspec-
tions, report and log machine issues, and improve
job-site safety. It is the perfect conduit for our
access-management software release allowing
users to know exactly what is happening on their
jobsite via a smartphone.
Trackunit Network is an industrial-grade Blue-
tooth-enabled network that is live across circa
100,000 jobsites worldwide delivering customers
best-in-class coverage. It is enhancing connectivity
across construction from expensive, specialty
equipment right down to handheld powered tools.
As well as enabling location and tracking, it is
helping to put an end to blind spots on the jobsite
by gradually reducing the reliance on mobile
devices minimalizing risk and enhancing safety.
25
We are Trackunit
Financial review StatementsParent company financial statementsESG Consolidated financial statementsThe big picture
Software Enabling Devices Software Enabling Devices Software Enabling Devices Software Enabling Devices
Trackunit
Specialty Equipment
Emissions
Reporting
Access
Management
Trackunit
Sites
Trackunit Specialty Equipment is a fleet-management
tool that gives fleet managers complete coverage of
their specialty equipment like generators, pumps,
chillers, heaters and compressors. A fast-growing
sector in construction, it plugs a gap in the
connectivity paradigm through its adaptability to
difficult and remote terrains including disaster
recovery, event management and 24x7 projects.
Dovetailing with Trackunit’s deployment and
installation services, it is a complete solution aimed
at delivering uptime to all our customers.
Emissions Reporting is the game-changing software
that puts ownership of emissions firmly in the hand
of every machine operator and which will eventually
end the practice of ‘guesstimating’. With a
‘no-machine-left-behind’ mantra, it makes data
instantly accessible delivering far more accurate
CO2 numbers and puts the off-highway sector into
a position to meet UN 2030 emissions targets.
Our second-generation, access-management solution
enhances fleet-owner control by opening up the road
to standardized digital access control by negating the
need for ‘no permission’ keys while simultaneously
making construction sites safer. It also digitalizes
workflows and gives site operators full overview of
everything related to access that happens under their
watch. With the introduction of Trackunit Pass this
year (see page 27), it is in a constant state of evolution
towards the complete solution.
Trackunit Sites automatically detects jobsites and
rental depots to deliver up-to-the minute site-level
intelligence accelerating project completion and
enhancing efficiency. Fleet managers can apply the
power of advanced telematics to their full roster of
jobsites and depots leading to value-driven insights
that help eliminate downtime.
26
We are Trackunit
Financial review StatementsParent company financial statementsESG Consolidated financial statementsThe big picture
Software Enabling Devices
Trackunit
Raw
Market bestseller Trackunit Raw is a
compact cellular IoT device delivering
stable, secure, and reliable connectivity
in all weathers. Significantly upgraded
to the TU-700 model in 2024, the latest
version unlocks innovation by
leveraging insights from new machine
data, enhancing machine integration,
through advanced Edge onboard
processing. Built-in Bluetooth
technology also creates a local
network, serving as a gateway for
non-cellular IoT devices such as Kin and
third-party Bluetooth tags.
Trackunit
Beam
Trackunit
Kin
Trackunit
Pass
Trackunit
Spot
Trackunit Beam solutions help you
grow and build new digital processes
to bridge the connections between
equipment, fleets, and sites for every
project phase. It is designed to
withstand the rigors of harsh site
environments and is industry-certi-
fied and ratified.
Trackunit Kin is a Bluetooth 5.2 IoT
device that leverages our Bluetooth-en-
abled network across all asset classes.
It is simple yet powerful, enabling
activation requiring less than a minute
with a vastly extended ecosystem
reach. Connecting to either the
Trackunit Go app or a Trackunit Raw
gateway, Kin-enabled equipment can
be located up to a 400-meter range
enabling operators to guard against
theft and eliminate downtime through
the real-time localization of smaller
tools and equipment.
The next-generation Trackunit Pass
solution significantly enhances our
access management capabilities by
unlocking new business models for our
customers such as scaling equipment
access control and rental pooling. It also
adds additional layers of security with
card, PIN code or smartphone access
options for site and fleet managers
meaning the jobsite should become
safer over time. It also complements the
latest version of Trackunit Raw, enabling
users to leverage the access manage-
ment engine to extend machine life and
boost performance.
The second-generation Trackunit Spot
is a 5G-ready solution that is easy to
install and has transformed the
non-powered construction equipment
sector. A ‘slap-and-track’ device, it
bridges the gap between Trackunit Raw
and Trackunit Kin and has helped
complete the circle on the connectivity
loop.
27
We are Trackunit
Financial review StatementsParent company financial statementsESG Consolidated financial statementsThe big picture
Software Enabling Devices
Software Enabling Devices
Software Enabling Devices Software Enabling Devices
Global OEM Hilti has step-by-step strengthened its partnership
with Trackunit over the last few years putting in place the
building blocks for yet more collaboration in the future.
Hilti’s partnership with
Trackunit sets platform
for future collaboration
Customer case story: Global OEM Hilti
Global
Hilti’s partnership with contech Trackunit strengthened
significantly in 2024 on the back of an agreement to add
more than 1 million Hilti ON!Track tags to Trackunit’s
Marketplace allowing customers of both companies to
track their Hilti tagged equipment.
In a landmark deal struck in 2023, Hilti is also able to
leverage construction’s largest network of trackable
devices via Trackunit’s global network of Bluetooth
gateways as part of its strategy to strengthen its
connectivity and deliver to its customers.
It has, says Hilti’s Frederik Kraus, been quite the success.
Outstanding
“Obviously we had the big go-to-market at the end of
2023 and it’s been outstanding — it exceeded our
expectations,” says Hilti’s ON!Track marketing product
manager. “We knew there was a need for this solution
because we are at a section of the industry where we get
a feel for the temperature and the need in the market. It’s
why we entered into a partnership with Trackunit in the
first place.”
Indeed, Trackunit and Hilti have been in strategic
partnership since 2022 when Hilti joined the ‘Works with
Trackunit’ program initially to focus on the management
of its customers’ on road vehicles inventory and heavy
equipment fleets. But the agreement in 2023 has
significantly enhanced the OEM’s tool visibility across
other asset classes.
“It made a difference almost immediately,” says Kraus.
“In your warehouse environment, everything is very
controlled, but it’s once equipment leaves when things
might not go exactly to plan.
“With all of Trackunit’s on-site devices and with its
Bluetooth-enabled network, we now provide transparen-
cy where equipment is, and where it last was,” he says.
“Those tracking and location services alone have been
key to strengthening our asset management solution
ON!Track and ultimately giving our customers a
significantly improved better experience.
“It has meant that we’ve been able to streamline
processes by cutting back on time-consuming manual
processes to track equipment and allows us to free up
people to focus on delivering value at a time when labor
shortages in construction have been well-documented,”
says Kraus. “We’ve also been able to expand our
coverage and this is accelerating the move towards digit-
ilization as this connectivity becomes more embedded.”
Partnership
For the future, Kraus envisages a step-by-step process of
building the partnership with Trackunit.
“The next big step is utilization,” he says. “We already
know in the larger equipment spaces it’s very common to
have transparency on utilization patterns and that's also
trickling down to lighter assets as well.”
Kraus says safety on the jobsite has been a center piece of
customers interest ever since. He adds that there has been
a sharp rise in interest in emissions reporting capabilities.
“We’re seeing with larger projects in particular that
having good emissions reporting solutions is becoming
an important KPI,” he says. “It’s a very dynamic and
evolving environment and as our partnership develops,
we’re very interested in leveraging insights that can
foster more efficient management of assets.
“There has from day one really been a huge learning
opportunity and that’s something both of our organiza-
tions would like to leverage,” says Kraus. “It's definitely
building the foundation for future collaboration.”
28
We are Trackunit
Financial review StatementsParent company financial statementsESG Consolidated financial statementsThe big picture
↓
Trackunit has continued to
develop its ESG platform through
2024 with a clear, forward-moving
direction on emissions and energy,
diversity and inclusion, and
compliance and security. It’s part
of an ongoing, rigorous
reinforcement of the company
vision and strategy allied to
practice, bolstering Trackunit’s
reputation as a responsible and
progressive ESG partner.
↓
Environment
↓
Societal
↓
Governance
ESG
03
29
We are Trackunit Financial review StatementsParent company financial statements
ESG
Consolidated financial statementsThe big picture
Environment
↓
30
We are Trackunit Financial review StatementsParent company financial statements
ESG
Consolidated financial statementsThe big picture
Environment
↓
At Trackunit, we are fully
committed to cutting back
on our emissions and
playing our part in the
industry-wide challenge
of making construction
cleaner.
31
We are Trackunit Financial review StatementsParent company financial statements
ESG
Consolidated financial statementsThe big picture
Environment
↓
Federico Rio,
Senior Vice President
of OEM Sales
32
We are Trackunit Financial review StatementsParent company financial statements
ESG
Consolidated financial statementsThe big picture
Societal
↓
33
We are Trackunit Financial review StatementsParent company financial statements
ESG
Consolidated financial statementsThe big picture
Societal
↓
Trackunit's Mindful
Leadership program fosters
a more compassionate
working environment that
empowers teams to deliver
their best.
34
We are Trackunit Financial review StatementsParent company financial statements
ESG
Consolidated financial statementsThe big picture
Societal
↓
Prior Reporting (Jan 2024) Current Reporting (Oct 2024) Technology companies benchmark
35
We are Trackunit Financial review StatementsParent company financial statements
ESG
Consolidated financial statementsThe big picture
60%
30%
0%
Employees
Nationalities
459
44+
36
We are Trackunit Financial review StatementsParent company financial statements
ESG
Consolidated financial statementsThe big picture
↓
37
We are Trackunit Financial review StatementsParent company financial statements
ESG
Consolidated financial statementsThe big picture
Governance
↓
Kenn Hougaard Gudbergsen,
Director of Customer
Success, EMEA
38
We are Trackunit Financial review StatementsParent company financial statements
ESG
Consolidated financial statementsThe big picture
Trackunit provides a safe
and fair workplace for its
employees, and gives our
partners the confidence to
share data in a secure,
industry-certified
environment.
39
We are Trackunit Financial review StatementsParent company financial statements
ESG
Consolidated financial statementsThe big picture
Governance
↓
Aastha Gupta,
Customer Support Specialist
40
We are Trackunit Financial review StatementsParent company financial statements
ESG
Consolidated financial statementsThe big picture
"Despite an uncertain macro environment, we have steadily in-
creased our net revenue to DKK 1.3 billion in 2024, demonstrating
a robustness in our business model that positions Trackunit well
for further growth to 2030."
Peter Vekslund, Chief Financial Officer at Trackunit
Financial review
04
41
We are Trackunit
Financial review
StatementsParent company financial statementsESG Consolidated financial statementsThe big picture
Financial review
2024 has been a year with focus on stable growth and
continuing innovation.
The income statement shows an increase in revenue by
10% and an EBITDA of DKK374 million, an increase of
42% comparing to last year. The increase is due to
increasing revenue, increasing margin and operating
expenses on level with last year despite higher revenue.
Management considers items totaling DKK34.4m (2023
DKK45.1m) as non-recurring. This includes costs for
sharebased payments of DKK18.7m and longer term
growth initiatives of DKK15.7m. However, for External
Financial Reporting these items have been expensed as
ordinary.
Profit for the period is DKK188m. Profit for the period are
further impacted by significant amortization of
intangible assets primarily related to the acquisition of
the IIOT division of ZTR. The financial result for 2024 is in
line with expectations. In the financial statement for
2023, Trackunit expected revenue to be in the range of
DKK1.2-1.4bn and EBITDA in the range of DKK300-400m.
The financial result for 2024 is considered satisfactory.
Further, Trackunit added net 51 employees and the group
now employs more than 450 people globally.
Significant changes in operations
and financial matters
There are no other significant changes in operations and
financial matters that have affected recognition and
measurement of the Groups results and financial status.
Unusual conditions that affect recognition and
measurement
There are no unusual factors that have affected
recognition and measurement of the Groups results
and financial status.
Outlook
Management is positive going into 2025 and by
delivering on the corporate strategy, revenue for 2025 is
expected in the range of DKK1.3-1.5bn and EBITDA in the
range DKK350-450m.
Significant assumptions and uncertainties
There are no material conditions and uncertainties that
affect the Group’s results and balance sheet.
Risk factors
Activities in foreign countries and hereby earnings,
exchange rates and interest rates of various currencies
affect cash flows and equity. Adjustment of investments
in subsidiaries and associates that are independent
entities, are recognized directly in equity. Currency risks
related to sales in transactional currencies different from
DKK are not hedged while overall cashflow in different
currencies are to some degree aligned (natural hedge).
Development activities
The development activities primarily include develop-
ment of next generation Trackunit services, which
includes continued development of software features
to IrisX and Trackunit Manager. The Trackunit product
Roadmap is publically available at https://trackunit.
com/product-portal/.
Significant events after the balance sheet date
In January 2025 the Group completed a reorganization
making 40 employees redundant. The purpose of the
reorganization is to ensure we are better equipped to
deliver on our purpose of Eliminating Downtime and thus
we will continue to add people in 2025. The reorganization
does not have any impact on the financial figures for 2024.
After the balance sheet date Goldman Sachs Alterna-
tives have acquired the majority share in Trackunit ApS’s
ultimate UK parent company, Galaxy UK Topco Limited.
As part of this transaction the current majority share-
holder Hg will reinvest in Galaxy UK Topco Limited and
continue as a key shareholder alongside with Goldman
Sachs Alternatives. The acquisition does not have any
impact on the financial statement for 2024 except for the
M&A cost booked as special non recurring items.
No further significant event have occurred after the
balance sheet date.
Developments in activities
and financial affairs 2024
42
We are Trackunit
Financial review
StatementsParent company financial statementsESG Consolidated financial statementsThe big picture
Consolidated
financial statements
05
Note 1 Critical accounting estimates and judgements
Note 2 Revenue from contracts with customers
Note 3 Sta costs
Note 4 Share-based payment
Note 5 Audit fees
Note 6 Special non-recurring items
Note 7 Financial income and expenses
Note 8 Income tax
Note 9 Distribution of profit/loss
Note 10 Intangible assets
Note 11 Property, plant and equipment
Note 12 Leases as lessee
Statement of profit and loss
Statement of comprehensive income
Balance sheet
Statement of changes in equity
Cash flow statement
Note 13 Inventories
Note 14 Trade receivables
Note 15 Financial assets and liabilities
Note 16 Share capital
Note 17 Related parties
Note 18 Commitments and contingent liabilities
Note 19 Business combinations
Note 20 Financial risk management
Note 21 Events after the balance sheet date
Note 22 Changes in net working capital
Note 23 Group companies
Note 24 Basis of preparation
43
We are Trackunit Financial review StatementsParent company financial statementsESGThe big picture
Consolidated financial statementsConsolidated financial statements
' DKK Notes
Revenue from contracts with customers 1,286,441 1,168,020
Cost of providing services (397,033 ) (435,971 )
Gross Profit 889,409 732,049
External costs (126,462 ) (108,751 )
Other operating expenses 12 (28 )
Employee costs (389,261 ) (359,200 )
Earnings before depreciation, amortization and
impairment (EBITDA), and before special items 373,697 264,070
Special non-recurring items (21,716 ) (53,491 )
Depreciation, amortization costs and impairment loss of
property, plant and equipment and intangible assets , , (145,523 ) (159,118 )
Earnings before interest and tax (EBIT) 206,458 51,462
Finance income 13,039 12,490
Finance costs , (12,293 ) (12,472 )
Earnings before tax (EBT) 207,204 51,480
Income tax expense (18,951 ) (17,819 )
Profit/(Loss) for the period 188,253 33,661
' DKK Notes
Profit/(loss) for the period 188,253 33,661
Other comprehensive income
Items that may be reclassified to profit or loss
Exchange differences regarding subsidiaries in another currency 31,021 (19,318 )
Other comprehensive income for the period, net of tax 31,021 (19,318 )
Total comprehensive income for the period 219,274 14,343
Statement of profit and loss
1 January – 31 December
Statement of comprehensive income
1 January – 31 December
Consolidated
44
We are Trackunit Financial review StatementsParent company financial statementsESGThe big picture
Consolidated financial statements
Balance sheet – 31 December
Assets
Balance sheet – 31 December
Equity and liabilities
' DKK Notes
Non-current assets
Intangible assets 1,800,714 1,889,279
Property, plant and equipment 7,563 9,867
Right-of-use assets 21,947 30,339
Deferred tax assets 86,667 46,525
Connected devices 148,824 177,655
Deposits 2,419 2,344
Total non-current assets 2,068,134 2,156,009
Current assets
Inventories 60,655 37,469
Trade receivables , 171,267 176,587
Receivables from group enterprises 393,677 389,210
Connected devices 210,982 208,460
Other financial assets at amortised cost 25,237 21,892
Other current assets 29,374 26,072
Cash and cash equivalents 280,842 158,596
Total current assets 1,172,034 1,018,286
Total assets 3,240,168 3,174,295
' DKK Notes
Equity
Share capital 500 500
Share premium 1,140,938 1,140,938
Other reserves 32,468 1,447
Retained earnings 469,170 262,212
Total equity 1,643,076 1,405,097
Lease liabilities , 10,675 20,561
Deferred tax liabilities 135,688 169,462
Deferred revenue 589,090 553,459
Total non-current liabilities 735,453 743,482
Lease liabilities , 12,102 10,597
Trade and other payables 106,644 125,841
Payables to group enterprises 111,997 329,674
Current income tax liabilities 68,317 41,855
Deferred revenue 562,579 517,750
Total current liabilities 861,639 1,025,717
Total liabilities 1,597,092 1,769,199
Total equity and liabilities 3,240,168 3,174,295
Consolidated
45
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Consolidated financial statements
Statement of changes in equity
1 January – 31 December
' DKK
Share
capital
Share
premium
Other reserves –
Foreign currency
translation
Retained
earnings
Total
equity
Balance at January 500 1,140,938 1,447 262,212 1,405,097
Profit for the period 0 0 0 188,253 188,253
Other comprehensive income 0 0 31,021 0 31,021
Total comprehensive income for the period 0 0 31,021 188,253 219,274
Transactions with owners in their capacity as owners
Share-based payment 0 0 0 18,705 18,705
Balance at December 500 1,140,938 32,468 469,170 1,643,076
' DKK
Share
capital
Share
premium
Other reserves –
Foreign currency
translation
Retained
earnings
Total
equity
Balance at January 500 1,140,938 20,765 217,225 1,379,428
Profit for the period 0 0 0 33,661 33,661
Other comprehensive income 0 0 (19,318 ) 0 (19,318 )
Total comprehensive income for the period 0 0 (19,318 ) 33,661 14,343
Transactions with owners in their capacity as owners
Share-based payment 0 0 0 11,326 11,326
Balance at December 500 1,140,938 1,447 262,212 1,405,097
Notes
Critical accounting estimates and judgements
Share-based payment
Related parties
Commitments and contingent liabilities
Business combinations
Financial risk management
Events after the balance sheet date
Group companies
Basis of preparation
Consolidated
46
We are Trackunit Financial review StatementsParent company financial statementsESGThe big picture
Consolidated financial statements
Cash flow statement
1 January – 31 December
' DKK Notes
Earnings before interest and tax (EBIT) 206,458 51,462
Depreciations and amortizations 145,523 159,118
Non-cash items 18,693 11,354
Change in net working capital 45,530 172,945
Cash flows from primary operating activities 416,203 394,878
Received interests 27,171 11,896
Paid interests (18,400 ) (21,113 )
Paid income taxes (61,150 ) (20,460 )
Cash flow from operating activities 363,824 365,201
Purchase of property, plant and equipment (3,614 ) (6,486 )
Sale of property, plant and equipment 0 22,188
Purchase of intangible assets (18,684 ) (17,843 )
Change in deposits (63 ) 936
Business acquisitions (net of cash acquired) 0 (19,038 )
Cash flow from investing activities (22,361 ) (20,243 )
' DKK Notes
Repayments to credit institutions 0 (22,327 )
Other financing to/from Group enterprises (201,063 ) (200,901 )
Lease principal payments (11,432 ) (10,754 )
Cash flow from financing activities (212,492 ) (233,982 )
Net cash flow for the year 128,970 110,977
Cash and cash equivalents, beginning of the period 158,596 37,418
Unrealized exchange rate gains and losses (6,725 ) 10,202
Cash and cash equivalents, end of the year 280,842 158,596
The cash flow statement cannot be derived from
the published financial information only.
Cash and cash equivalents 280,842 158,596
Consolidated
47
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Consolidated financial statements
1. Critical accounting estimates and judgements
The preparation of the Group’s consolidated financial
statements requires management to make judgements,
estimates and assumptions that affect the reported
amounts of revenues, expenses, assets and liabilities, the
accompanying disclosures, and the disclosure of
contingent liabilities at the date of the consolidated
financial statements. Estimates and assumptions are
continually evaluated and are based on management’s
experience and other factors, including expectations of
future events that are believed to be reasonable under
the circumstances. Uncertainty about these assumptions
and estimates could result in outcomes that require a
material adjustment to the carrying amount of assets or
liabilities affected in future periods.
In particular, the Group has identified a number of areas
where significant judgements, estimates and assump-
tions are required. Further information on each of these
areas and how they impact the various accounting
policies are described and highlighted separately with
the associated accounting policy note within the related
qualitative and quantitative note, as described below.
Revenue recognition
Revenue is recognized when promised goods or services
are transferred to customers in an amount that reflects
the consideration to which we expect to be entitled in
exchange for those goods or services.
The Group determine revenue recognition through the
following steps:
1. identification of the contract, or contracts, with a
customer;
2. identification of the performance obligations in the
contract;
3. determination of the transaction price;
4. allocation of the transaction price to the performance
obligations in the contract; and
5. recognition of revenue when, or as, we satisfy a
performance obligation.
The Group offer subscriptions to access our Cloud and
IoT platforms. Customers subscribe to one or more
Applications which includes data that is primarily
provided by various proprietary connected device
access points, including connectivity sensors. Our Cloud
and IoT platforms and the related connected device
access points are highly interdependent and interrelated
and represent a combined performance obligation.
The combined performance obligation is satisfied over
time, as we continually provide access to and fulfill our
obligation to the customer over the subscription term.
Accordingly, the fixed consideration related to the
combined performance obligation is recognized on a
straight-line basis over the contract term, beginning on
the date that access to the Cloud and IoT platforms or
specified application and connected device is provided.
Connected Devices
The Group capitalize connected devices associated with
subscription contracts. These contract fulfillment costs
are directly related to customers, and the costs are
amortized over a period of benefit of three years. The
Group determined the period of benefit by taking into
consideration the expected life of the connected device,
the connected device’s warranty period, past experienc-
es with customers, the duration of our relationships with
our customers and other available information.
Acquisition of enterprises and activities
In connection with acquisition of enterprises and
activities the fair value of identifiable assets, liabilities
and contingent liabilities is measured. Estimation of fair
value mainly applies to intangible and tangible assets,
inventories, and deferred tax hereof. The estimation of
fair value is related to Management estimates which are
based on the expected future earnings of the assets. For
a significant portion of the assets and liabilities there is
no active market that can be used for determining the
fair value. This applies particularly to intangible assets
acquired such as customer relations and trademarks.
The estimation of fair value is based on an estimate and
may therefore be subject to uncertainty and may
subsequently be adjusted up to one year after the end of
the year of the acquisition.
Impairment of goodwill and customer relations
Determining whether goodwill and customer relations
are impaired requires an estimation of the value in use of
the cash generating units to which goodwill and
customer relations have been allocated. The value in use
calculation requires the directors to estimate the future
cash flows expected to arise from the cash-generating
unit and a suitable discount rate to calculate present
value. Where the actual future cash flows are less than
expected, a material impairment loss may arise. The key
assumptions used in the impairment tests of goodwill
and customer relations are disclosed in note 10.
Deferred tax
Management’s judgement is required to determine the
amount of deferred tax assets that can be recognized,
based upon the likely timing and the level of future
taxable profits. Judgement is based on factors such as
historical profits and approved budgets.
Consolidated
48
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Consolidated financial statements
2. Revenue from contracts with customers
Revenue Recognition
The Group generates revenue from subscriptions to
access its cloud-hosted platform whereby the
customer is charged a subscription fee for access for a
specified term. Subscription agreements contain
multiple service elements for one or more of Trackunit’s
cloud-based Applications via mobile app(s) or website
that enable data collection and provide access to the
cellular network, one or more wireless gateways and
other devices (collectively, “connected devices” or “IoT
devices”), support services delivered over the term of
the arrangement and warranty coverage. The Group’s
arrangements are generally sold as non-cancelable
subscriptions and have contract terms typically for
three to five years in length. The Group determines
revenue recognition through the following steps:
Identification of the contract, or contracts,
with a customer
A contract with a customer exists when
• The Group, enters into an enforceable contract with a
customer that defines each party’s rights regarding
the goods or services to be transferred and identifies
the payment terms related to these goods or services,
• The contract has commercial substance, and
• The Group determines that collection of substantial-
ly all consideration for goods or services that are
transferred is probable based on the customer’s
intent and ability to pay the promised consideration.
Identification of the performance obligations in the
contract
Performance obligations promised in a contract are
identified based on the goods or services that will be
transferred to the customer that are both capable of
being distinct, whereby the customer can benefit from
the goods or services either on their own or together with
other resources that are readily available from third
parties or from Trackunit, and are distinct in the context
of the contract, whereby the transfer of the goods or
services is separately identifiable from other promises in
the contract. To the extent a contract includes multiple
promised goods or services, Trackunit applies judgment
to determine whether promised goods or services are
capable of being distinct in the context of the contract. If
these criteria are not met, the promised goods or
services are accounted for as a combined performance
obligation. Trackunit has determined that its integrated
solution represents a combined performance obligation
as the cloud-based Applications and connected devices,
individually, are not distinct within the context of
customer contracts because they are highly interde-
pendent and interrelated.
Trackunit has certain accessories sold in connection
with its integrated sensor solution, which have been
determined to be separate performance obligations.
Also, consultancy services and installation of the IoT
devices, are considered to be separate performance
obligations.
Determination of the transaction price
The transaction price is determined based on the
consideration to which Trackunit will be entitled in
exchange for transferring goods or services to the
customer. Such amounts are stated within the
customer contracts.
Allocation of the transaction price to the performance
obligations in the contract
If the contract contains a single performance
obligation, the entire transaction price is allocated to
the single performance obligation. Contracts that
contain multiple performance obligations require an
allocation of the transaction price to each perfor-
mance obligation based on a relative standalone
selling price (SSP) basis. The Group determines SSP
based on the price at which the performance
obligation is sold separately. If the SSP is not observa-
ble through past transactions, Trackunit estimates the
SSP taking into consideration available information,
such as market conditions and internally approved
pricing guidelines related to the performance
obligations.
Recognition of revenue when or as Trackunit satisfies a
performance obligation
Trackunit satisfies, substantially all of its performance
obligations over time. Specifically, the combined
cloud-based application and connected device
performance obligation and related support services
and warranty coverage represent stand-ready
performance obligations provided throughout the term
the customer has access to the platform. Revenue
recognition commences ratably when control of the
services is transferred to the customers, in an amount
that reflects the consideration that Trackunit expects
to receive in exchange for those services over the
contractual term. Other revenue is earned through the
sale of replacement devices, as well as related
shipping and handling fees and professional services
fees for consulting or installation services.
Deferred Revenue
Deferred revenue represents amounts billed to
customers or payments received from customers for
which revenue has not yet been recognized. Deferred
revenue consists of prepayments made by customers
for future periods. A portion of customer contracts is
paid in advance for the full, multi-year term. Addition-
ally, Trackunit enables its customers to prepay all, or
part, of their contractual obligations monthly,
quarterly, or annually. As a result, the deferred
revenue balance does not represent the total contract
value of all multi-year, non-cancelable subscription
agreements. The current portion of deferred revenue
represents the amount that is expected to be recog-
nized within one year of the consolidated balance
sheet date.
§ Accounting policy
Consolidated
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Consolidated financial statements
2. Revenue from contracts with customers
(continued)
§ Accounting policy (continued)
Cost of Revenue
Cost of revenue consists primarily of the
amortization of the cost of capitalized connected
devices, software hosting-related costs as well as
connectivity cost for telecom services.
Costs to Obtain and Fulfill a Contract
For typical sales arrangements, Trackunit
capitalizes the cost of connected devices sold to
customers upon shipment and the capitalized
cost is recorded as connected devices on
Trackunit’s consolidated balance sheet.
Connected devices are amortized over a period
of benefit of three years. Trackunit determined
the period of benefit by taking into consideration
the expected life of the connected device, the
connected device’s warranty period, past
experiences with customers, the duration of
Trackunit’s relationships with its customers, and
other available information. Amortization of
these costs is included in cost of revenue on the
consolidated statements of operations and
comprehensive loss.
' DKK EMEA NA APJ Total
Timing of revenue recognition
At a point in time , , ,
Over time , , , ,,
Total revenue , , , ,,
' DKK EMEA NA APJ Total
Timing of revenue recognition
At a point in time , , , ,
Over time , , , ,,
Total revenue , , , ,,
Liabilities related to contracts with customers
The group has recognized the following assets and liabilities related to contracts with customers:
Revenue recognized in relation
to deferred revenue
The following table shows how much of the revenue
recognized in the current reporting period relates to
carried-forward contract liabilities and how much relates
to performance obligations that were satisfied in a prior
year.
' DKK
Non-current constract liabilities – deferred revenue , ,
Current contract liabilities – deferred revenue , ,
,, ,,
' DKK
Deferred revenue
beginning of period ,, ,
Acquired deferred
revenue
Revenue recognized
that was included in
deferred revenue at the
beginning of the period (,) (,)
Revenue recognized
and billed in the period (,) (,)
Deferred revenue
invoiced in the period ,, ,,
Deferred revenue end
of period ,, ,,
Consolidated
50
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Consolidated financial statements
3. Sta costs
§ Accounting policy
Salary costs comprise of salaries, social security
contributions, pension contributions and other
staff-related costs. Staff costs are recognized in
the financial year during which the employees
performed the related work.
' DKK
Wages and salaries , ,
Termination benefits
Social security costs , ,
Pension costs, defined contribution plans , ,
Other employee costs , ,
Total staff cost , ,
Average number of full time employees 459 408
Segment split of staff cost
EMEA , ,
NA , ,
APJ , ,
Total staff cost , ,
' DKK
Salaries and other short-term employee benefits , ,
Post-employment benefits ,
Total staff cost for Key Management , ,
Compensation to the Board of Directors and Executive Management
Compensation to the Board of Directors
Compensation to the Executive Management , ,
, ,
Key management compensation
Key management includes Board of Directors, Executive
management as well as executive management in key
affiliates. The compensation paid or payables to key
management for employee services is shown below:
Consolidated
51
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Consolidated financial statements
4. Share-based payment
§ Accounting policy
The group operates an equity-settled, share-based
compensation plan, under which the entity
receives services from employees as consideration
for equity instruments (warrants) of the group.
The fair value of the employee services received
in exchange for the grant of the warrants is
recognized as an expense. The total amount to
be expensed is determined by reference to the
fair value of the warrants granted including any
market performance conditions excluding the
impact of any service and non-market perfor-
mance vesting conditions and including the
impact of any non-vesting conditions.
The fair value of warrants is determined using a
Black Scholes valuation model.
The total expense is recognized over the vesting
period, which is the period over which all the
specified vesting conditions are to be satisfied.
At the end of each reporting period, the group
revises its estimates of the number
of warrants that are expected to vest based on
the non-market vesting conditions and service
conditions. It recognizes the impact of the
revision to original estimates, if any, in the
income statement, with a corresponding
adjustment to equity.
Outstanding warrants January ,, ,,
Granted during the year , ,
Forefeited during the year (,) (,)
Outstanding warrants December ,, ,,
To attract and retain employees Trackunit has estab-
lished an incentive program for all non-executive
employees in 2022. The purpose is to share the value
creation eventually to be realized at the time of an exit
with employees and support retention until then.
The warrant program is an equity settled program
established in March 2022. The vesting period is
expected to be 4 years starting from the grant date. The
program comprises a total of 2,629,180 warrants on 31
December 2024 (2023: 2,087,160). Each warrant gives the
holder the right to share capital of DKK 0.01 nominal
value in the ultimate parent company Galaxy UK Topco
Ltd.
The total number of warrants granted in 2024 was
679,420 (2023 684,660). The total fair value of the
program is DKK35.8m (2023 DKK17.1m).
The valuation is determined using a Black Scholes
valuation model and is based on the following
assumptions:
• Vesting period: 4 years
• Expected volatility: 59% - based on peer group
analysis
• Risk free interest rate: 2,0%
Total expenses arising from the incentive program are
DKK18.7m (2023 DKK11.3m) and is recognized as staff
cost.
Consolidated
52
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Consolidated financial statements
5. Audit fees 6. Special non-recurring items
Group elected auditor - PwC
Non-group elected auditors
' DKK
Statutory audit ,
Tax advisory services
Other services
Total audit fees , ,
' DKK
Statutory audit
Tax advisory services ,
Other services
Total audit fees , ,
' DKK
Consultancy ,
Restructuring , ,
M&A , ,
Total special non-recurring items , ,
§ Accounting policy
Special non-recurring items consist of costs and
income of a one-off nature in relation to the
Group's primary activities. Special items relate to
M&A activities, restructuring costs, consultancy
cost for systems implementations, costs regarding
integration and significant non-recurring items
including cost related to change of members to
the board and executive management.
M&A – includes external cost for lawyers, advisors and
auditors related to M&A activities, as well as cost
regarding integration (end of life products and termina-
tion of office lease etc.)
Restructuring – includes costs relating to integration of
Flexcavo into Trackunit.
Also, management considers items totaling DKK34.4m
(2023 DKK45.1m) as non-recurring. This includes costs
for share-based payments of DKK18.7m and longer term
growth initiatives of DKK15.7m. However, for External
Financial Reporting these items have been expensed as
ordinary.
Consolidated
53
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Consolidated financial statements
7. Financial income and expenses 8. Income tax
§ Accounting policy § Accounting policy
Financial income and expenses comprise interest
income and expense, realized and unrealized
exchange gains and losses on transactions in foreign
currencies, amortization of financial assets and
liabilities as well as surcharges and refunds under the
on-account tax scheme. Financial income and
expenses are recognized at the amounts relating to
the financial year.
The tax expense for the period comprises current and
deferred tax. Tax is recognized in profit and loss,
except to the extent that it relates to items recognized
in other comprehensive income or directly in equity. In
this case, the tax is also recognized in other compre-
hensive income or directly in equity, respectively.
The current income tax charge is calculated based on
the tax laws enacted or substantively enacted at the
balance sheet date in the countries where the
Company and its subsidiaries operate and generate
taxable income. Management periodically evaluates
positions taken in tax returns with respect to situations
in which applicable tax regulation is subject to
interpretation. It establishes provisions, where
appropriate, based on amounts expected to be paid to
the tax authorities.
' DKK
Interest income, banks , ,
Exchange rate adjustments ,
Interest received from group enterprises ,
Other interest income
Total financial income , ,
Interest expenses, mortgage debt and borrowings
Interest and finance charges for lease liabilities , ,
Exchange rate adjustments ,
Interest paid from Group enterprises ,
Other financial expenses, including bank fees , ,
Total financial cost , ,
Consolidated
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Consolidated financial statements
8. Income tax
(continued)
' DKK
Current tax on profits for the year , ,
Current tax on profits for prior years
Total current tax , ,
Origination and reversal of temporary differences (,) (,)
Total deferred tax (,) (,)
Income tax expenses for the period , ,
Profit before tax , ,
Computed % (,) (,)
Tax effects of:
Effect of income/expenses that is exempt from taxation (,) (,)
Effect of not recognized tax assets
Effect of different tax rates of subsidiaries operating in other jurisdictions (,) (,)
Effect of opening balance adjustment to deferred tax , ,
Effect of tax on profit for prior years () ()
Other ()
Tax charge (,) (,)
Income tax expenses for the period (,) (,)
§ Accounting policy
Deferred income tax is recognized on temporary
differences arising between the tax bases of assets
and liabilities and their carrying amounts in the
Consolidated Financial Statements. However, deferred
tax liabilities are not recognized if they arise from the
initial recognition of goodwill. Deferred income tax is
not accounted for if it arises from the initial recogni-
tion of an asset or liability in a transaction other than
a business combination that, at the time of the
transaction, affects neither accounting nor taxable
profit or loss. Deferred income tax is determined using
tax rates (and laws) that have been enacted or
substantively enacted by the balance sheet date and
are expected to apply when the related deferred
income tax asset is realized, or the deferred income tax
liability is settled.
Deferred income tax assets are recognized only to the
extent that it is probable that future taxable profit will
be available, against which the temporary differences
can be utilized.
Deferred income tax liabilities are provided on taxable
temporary differences arising from investments in
subsidiaries, except for deferred income tax liability
where the timing of the reversal of the temporary
difference is controlled by the Group and it is
probable that the temporary difference will not reverse
in the foreseeable future.
Deferred income tax assets are recognized on
deductible temporary differences arising from
investments in subsidiaries, only to the extent that it is
probable that the temporary difference will reverse in
the future and that there is sufficient taxable profit
available, against which the temporary difference can
be utilized.
Deferred income tax assets and liabilities are offset
when there is a legally enforceable right to offset
current tax assets against current tax liabilities and
when the deferred income tax assets and liabilities
relate to income taxes levied by the same taxation
authority on either the same taxable entity or different
taxable entities where there is an intention to settle the
balances on a net basis.
Consolidated
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Consolidated financial statements
8. Income tax
(continued)
' DKK
Deferred tax assets
Deferred tax at January , ,
Deferred tax prior period , ,
Deferred tax recognized in the income statement (,) ,
Reclassifications (,)
Currency exchange , (,)
Deferred tax at December , ,
Deferred tax relates to:
Intangible assets (,) (,)
Property, plant and equipment
Current assets , ,
Provisions
Other liabilities , ()
, ,
' DKK
Deferred tax liabilities
Deferred tax at January , ,
Addition on acquisition of subsidiaries ,
Deferred tax prior period (,)
Deferred tax recognized in the income statement (,) (,)
Currency exchange (,) ()
Deferred tax at December , ,
Deferred tax relates to:
Intangible assets , ,
Property, plant and equipment () ()
Current assets (,) (,)
Other liabilities () ,
, ,
Tax loss carry forwards are recognized to the extent that they are expected to be used in the future. If the result of
expected future earnings gives a reasonable probability that the losses will be realized in the foreseeable future, the
deferred tax assets have been recognized.
Of the deferred tax liability DKK104.2m is expected to be recovered after more than 12 months.
Consolidated
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9. Distribution of profit/loss 10. Intangible assets
' DKK
Proposed dividend for the year
Retained earnings , ,
, ,
§ Accounting policy
Goodwill
Goodwill arises on the acquisition of subsidiaries
and represents the excess of the consideration
transferred over the group’s interest in net fair value
of the net identifiable assets, liabilities, and
contingent liabilities of the acquiree.
For the purpose of impairment testing, goodwill
acquired in a business combination is allocated to
each of the CGUs, or groups of CGUs, which is
expected to benefit from the synergies of the
combination. Each unit or group of units to which the
goodwill is allocated represents the lowest level
within the entity at which the goodwill is monitored
for internal management purposes.
Goodwill impairment reviews are undertaken
annually or more frequently if events or changes in
circumstances indicate a potential impairment. The
carrying value of goodwill is compared to the
recoverable amount, which is the higher of value in
use and the fair value less costs of disposal. Any
impairment is recognized immediately as an expense
and is not subsequently reversed.
Trademarks, customer relations, technology
platform and order backlog
Separately acquired trademarks, customer relations,
technology platform and order backlog acquired at
the acquisition of subsidiaries are shown at
historical cost and fair value, respectively. Trade-
marks, customer relations, technology platform and
order backlog have a finite useful life and are carried
at cost less accumulated amortization. Amortization
is calculated using the straight-line method to
allocate the cost over their estimated useful lives as
follows:
• Trademarks 2-15 years
• Customer relations 6-18 years
• Technology platform 3-4 years
• Order backlog 3 years
Software
Externally acquired software is recognized as
intangible assets if the costs are expected to
generate future economic benefits. Externally
acquired software is recorded at historical cost.
Costs associated with maintaining software
programs are recognized as an expense as incurred.
Amortization is based on the straight-line method
over the expected useful lives of 5 years.
The amortization begins when the software is at a
stage where its commercial potentials can be utilized
in the manner intended by Management.
Consolidated
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10. Intangible assets
(continued)
§ Accounting policy (continued)
Development projects
Research expenses are recognized as an expense as
they are incurred. Development costs are recognized
as intangible assets if the costs are expected to
generate future economic benefits, and the criteria
below are met.
Development costs that are directly attributable to the
design and testing of identifiable and unique software
controlled by the group are recognized as intangible
assets where the following criteria are met:
• it is technically feasible to complete the software so
that it will be available for use
• management intends to complete the software and
use or sell it
• there is an ability to use or sell the software
• it can be demonstrated how the software will
generate probable future economic benefits
• adequate technical, financial, and other resources
to complete the development and to use or sell the
software are available, and
• the expenditure attributable to the software during
its development can be reliably measured.
Directly attributable costs that are capitalized as part
of the software include employee costs and an
appropriate portion of relevant overheads.
Capitalized development costs are recorded as
intangible assets and amortized from the point when
the development project is at a stage where its
commercial potential can be utilized in the manner
intended by Management.
Amortization is based on the straight-line method over
the expected useful lives of 3-5 years.
Research expenditure and development expenditure
that do not meet the criteria above are recognized as
an expense in the income statement as incurred.
Development costs previously recognized as an
expense are not recognized as an asset in a subse-
quent period.
Impairment of non-financial assets
Intangible assets that have an indefinite useful life
(Goodwill) are not subject to amortization and are
tested annually for impairment, or more frequently if
events or changes in circumstances indicate that they
might be impaired. Assets that are subject to
amortization are reviewed whenever events or
changes in circumstances indicate that the carrying
amount may not be recoverable. An impairment loss is
recognized for the amount by which the asset’s
carrying amount exceeds its recoverable amount. The
recoverable amount is the higher of an asset’s fair
value less cost of disposal and value in use. For the
purposes of assessing impairment, assets are grouped
at the lowest levels for which there are largely
independent cash inflows from other assets or groups
of assets (cash-generating units). Prior impairment of
non-financial assets (other than goodwill) is reviewed
for possible reversal at each reporting date.
Consolidated
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' DKK Goodwill Trademarks
Customer
relations Software
Software
order book
Technology
platform
Completed
development
projects
Development
projects
in progress Total
Cost:
At January ,, , , , , , , , ,,
Exchange differences , () (,) () (,) ,
Additions during the year , ,
Disposals () (,) (,)
Reclassifications , (,)
As at December ,, , , , , , , , ,,
Amortization and impairment:
At January , , , , , , ,
Exchange differences () () (,) (,)
Amortization charge , , , , , ,
Disposals () (,) (,)
As at December , , , , , , ,
Carrying amount December ,, , , , , , ,,
10. Intangible assets
(continued)
Consolidated
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' DKK Goodwill Trademarks
Customer
relations Software
Software
order book
Technology
platform
Completed
development
projects
Development
projects
in progress Total
Cost:
At January ,, , , , , , , , ,,
Exchange differences (,) () (,) () () (,)
Addition acquisition of subsidiary , , , ,
Additions during the year , , ,
Disposals (,) (,) () (,)
Reclassifications , (,)
As at December ,, , , , , , , , ,,
Amortization and impairment:
At January , , , , , , ,
Exchange differences () () ()
Amortization charge , , , , , ,
Disposals (,) (,) (,)
As at December , , , , , , ,
Carrying amount December ,, , , , , , , ,,
10. Intangible assets
(continued)
Research and development cost included in the income statement amounts to DKK16.7m (2023: DKK34.8m).
Consolidated
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10. Intangible assets
(continued)
Impairment test for goodwill
Impairment test was performed at the end of 2024. The
impairment test was based on the cash-generating units
(CGU's) to which goodwill can be allocated. The basis
for determining the recoverable amount is value-in-use
for the CGU's. Acquired companies and/or activities are
integrated into the Trackunit business as quickly as
possible, in order to obtain optimum synergies. Conse-
quently, soon after an acquisition, it is no longer
possible to allocate goodwill to individual acquisitions.
Trackunit as a group is evaluated to be one cash-gener-
ating unit (Trackunit). This is also sustained by our
business model where all subsidiaries are sales compa-
nies with access to the same software portfolio. No
special software is made for one subsidiary alone. We
act as one company.
The impairment test compares the recoverable amount,
equivalent to the present value of the expected future
cash flows, with the invested capital of the individual
CGU. The expected future cash flow is based on the
budget for 2025 and business plans for 2026-2027.
Budget and business plans are approved by group
management and the board of directors. Primary
variables are sales, EBIT, and investments.
The construction industry is one of the least digitalized
industries and the market for connectivity will continue
to expand for many years. Therefore, expected growth
rates on revenue are high. Trackunit is expecting growth
rates up to 23% during the budget and strategy period.
The growth rate beyond the budget and forecast periods
(the terminal period) are considered to be 2%. All growth
rates are based on management expectation to the
underlying market growth and further supported by
historic performance. Revenue and EBIT margin is in line
with the overall business plan and forecasted in a
detailed model including volume of new subscriptions,
churn, price mix, license mix and expectations to the
development in gross profit margins. Sales expectations
and EBIT margin used in the impairment test are
therefore considered reasonable taking the initiatives in
the business plan and general market outlook into
consideration. Investments are assumed to be level with
depreciations and amortizations in the terminal period.
The pre-tax discount rate used to calculate the recovera-
ble amount is 12,0%.
Determination of fair value is considered a level 3
measurement due to application of a discount compared
to the observable multiples.
The performed impairment test did not show any need
for impairment. Therefore, impairment will not be
required. In relation to sensitivity analysis, a simultane-
ous 1 percentage point increase in WACC and 1
percentage point decrease in the terminal period growth
rate does not lead to an impairment charge.
Further, the majority of the booked value of goodwill can
all be allocated to the acquisition made in 2021. As there
have been no significant changes in the business model
and profit is in line with expectations the booked value
therefore indicated the market value at the balance date
and no impairment is needed.
Impairment test for customer relations
Customer relations are amortized and tested if there are
indications of impairment. Customer relations are
amortized over 6-18 years. Customer relations valuation
is performed at the time of the acquisition and based on
a multi-period excess earnings method (MEEM),
considering the customers present at that time.
Management has analyzed whether the main prerequi-
sites of the MEEM calculation are still present. Further
the majority of the booked value of customer relations
can be allocated to the acquisition made in 2021. As
there have been no significant changes to the customer
base since the acquisition impairment will not be
required.
Consolidated
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11. Property, plant and equipment
§ Accounting policy
Tangible assets are mainly comprised of plant
and machinery and other equipment, which are
measured at cost less accumulated deprecia-
tion, and any impairment losses. The cost
comprises the acquisition cost and other directly
attributable expenses of preparing the asset for
its intended use.
Depreciation is calculated using the straight-line
method to allocate the cost or revalued amounts
of the assets, net of their residual values, over
their estimated useful lives as follows:
• Plant and Machinery 3-7 years
• Other equipment 3 years
The assets’ residual values and useful lives are
reviewed, and adjusted if appropriate, at the end
of each reporting period.
Gains and losses on disposals are determined by
comparing the proceeds with the carrying
amount. These are included in profit or loss.
An asset is impaired to its recoverable amount if
the asset’s carrying amount is greater than its
estimated recoverable amount. The impairment
loss is recognized in profit and loss when the
impairment is identified.
' DKK
Plant and
machinery
Other
equipment Total
Cost:
At January , , ,
Exchange differences () () ()
Additions during the year , ,
Disposals during the year () (,) (,)
As at December , , ,
Amortization and impairment:
At January , , ,
Exchange differences () () ()
Depreciation for the year , , ,
Depreciation of disposed assets () (,) (,)
As at December , , ,
Carrying amount December , , ,
' DKK
Plant and
machinery
Other
equipment Total
Cost:
At January , , ,
Exchange differences () () ()
Addition on acquisition of subsidiary , ,
Additions during the year , , ,
Disposals during the year (,) (,) (,)
As at December , , ,
Amortization and impairment:
At January , , ,
Exchange differences () ()
Depreciation for the year , , ,
Depreciation of disposed assets (,) (,) (,)
As at December , , ,
Carrying amount December , , ,
Consolidated
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12. Lease as lessee
§ Accounting policy
The lessee is required to recognize all leases as a
lease liability and a lease asset in the balance sheet
with two exceptions: short-term leases (less than 12
months) and leases relating to low-value assets. It
must furthermore be considered whether the
agreement is a lease or a service arrangement.
The group leases various vehicles, offices, and other
equipment. From 1 January 2019, leases are recog-
nized as a right-of-use asset and a corresponding
liability at the date the leased asset is available for
use by the group. In general, all lease contracts are
recognized as a lease liability and a lease asset in the
balance sheet with two exceptions: short-term leases
(less than 12 months) and leases relating to low-value
assets (< USD5.000).
When determining the present value of lease assets
and lease liabilities the Group makes estimations
regarding amortization period based on lease terms
and internal interest.
Cars
Lease contracts could be separated between a leasing
contract and a service arrangement. The group has
decided not to separate lease and non-lease
components and instead recognize each car as one
contract.
Assets and liabilities arising from a lease are initially
measured on a present value basis. To find the present
value of a lease contract several factors must be
determined. Leasing period and fixed payments
appears in the lease contract which means only
interest rate must be determined. Here the group’s
incremental borrowing rate to obtain an asset of
similar value is used (4,5%).
Variable lease payments as extra miles beyond the
lease contract, damages, bridge tolls etc. are not
measured as a lease liability and a lease asset in the
balance sheet. Instead, these costs are recognized in
the profit and loss when they occur.
Offices
Assets and liabilities arising from a lease are initially
measured on a present value basis. To find the present
value of a lease contract several factors must be
determined. Fixed payments appear in the lease
contract. The leasing period for all offices is set at the
same date as the headquarters in Aalborg office
expires even though different terms of condition may
occur. The group’s incremental borrowing rate to
obtain an asset of similar value of 4,5% has been
applied.
Other equipment
Assets and liabilities arising from a lease are initially
measured on a present value basis. To find the present
value of a lease contract several factors must be
determined. Leasing period and fixed payments
appears in the lease contract which means only
interest rate must be determined. Here the group’s
incremental borrowing rate to obtain an asset of
similar value is used (4,5%).
This note provices information for leases where the group
is a lessee.
The following amounts relating to leases are
recognized in the balance sheet:
' DKK
Right-of-use assets
Premises , ,
Vehicles , ,
Other
, ,
Lease liabilities
Current , ,
Non-current , ,
, ,
Overview of the lease liabilities are included in note 20.
Consolidated
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12. Lease as lessee
(continued)
13. Inventories
Amounts recognized in the statement of profit or loss.
The following amounts relating to leases are
recognized in the statement of profit or loss:
' DKK
Depreciation charge of right-of-use assets
Premises , ,
Vehicles , ,
Other
, ,
Interest expense (included in finance cost) , ,
Expense relating to short-term leases (included in cost of goods sold and
administrative expenses)
Expense relating to leases of low-value assets that are not shown above as
short-term leases (included in administrative expenses)
Expense relating to variable lease payments not included in lease liabilities
(included in administrative expenses)
Total cash outflow for leases , ,
Additions to right-of-use assets (mainly due to new agreements on premises) , ,
§ Accounting policy
Inventories are stated at the lower of cost and
net realizable value. Cost is determined using the
first-in, first-out (FIFO) method. The cost of raw
materials and consumables comprises purchase
price and other direct costs. Finished goods are
recognized at manufacturing cost including
materials consumed and labor costs plus
allowance for production overheads including
operating costs, maintenance, and depreciation
of production plant. It excludes borrowing costs.
Net realizable value is the estimated selling price
in the ordinary course of business, less applica-
ble variable selling expenses.
' DKK
Raw materials and
supplies , ,
Finished goods , ,
Total inventories , ,
Less: provision for
inventory reserves (,) (,)
Total net inventories , ,
Inventories recognized
as an expense and
included in ‘Cost of
providing services’ , ,
Hereof Inventory write
down recognized as an
expense , ,
Consolidated
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14. Trade receivables
§ Accounting policy
Receivables are measured at amortized cost.
Receivables are written down for expected credit
losses based on the simplified approach to
providing for expected credit losses, which
requires expected lifetime losses to be recog-
nized from initial recognition of receivables.
Impairment losses are calculated as the
difference between the carrying amount and
present value of expected cash flows, including
the expected realizable value of any collateral
provided. The discount rate is the effective
interest rate used at the time of initial recogni-
tion of the receivable.
' DKK Current
- days
past due
- days
past due
- days
past due
More than
days past due Total
December
Gross carrying amount , , , , , ,
Loss allowance (,) () () () (,) (,)
Trade receivables , , , , ,
Expected loss rate % % % % % %
December
Gross carrying amount , , , , , ,
Loss allowance (,) () () () (,) (,)
Trade receivables , , , , , ,
Expected loss rate % % % % % %
' DKK
Movement on the Group provision for impairment
of trade receivables are as follows:
Opening balances , ,
Change in provision , ,
Write-offs during the year (,) ()
At December , ,
According to IFRS 9 a provision matrix for the group is
applied. The provision matrix is based on historical loss
rate and management’s expectations for future losses.
The historical loss rate is calculated based on the 2023
data. The matrix provision is applied after adjusting for
any specific provisions and is based on the Groups
expectations to the industry in which it operates.
Consolidated
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15. Financial assets and liabilities
§ Accounting policy
Financial assets
Classification
The group classifies its financial assets in the following
measurement category; those to be measured at
amortized cost. The classification depends on the
purpose for which the financial assets were acquired.
Management determines the classification of its
financial assets at initial recognition.
Amortized cost
The group classifies its financial assets as at
amortized cost only if both of the following criteria
are met:
• the assets are held within a business model whose
objective is to collect the contractual cash flows,
and
• the contractual terms give rise to cash flows that
are solely payments of principal and interest.
Recognition and Measurement
Regular purchases and sales of financial assets are
recognized on the trade date - the date on which the
Group commits to purchase or sell the asset.
Investments are initially recognized at fair value, plus
transaction costs for all financial assets not carried
at fair value through profit or loss. Financial assets
are derecognized when the rights to receive cash
flows from the investments have expired or have
been transferred and the Group has transferred
substantially all risks and rewards of ownership.
Financial liabilities and equity instruments
Classification
Debt and equity instruments issued by a group
entity are classified as either financial liabilities or
as equity in accordance with the substance of the
contractual arrangements and the definitions of a
financial liability and an equity instrument.
Financial liabilities
Financial liabilities are initially measured at fair
value less transaction costs incurred. Subsequently,
the loans are measured at amortized cost. Amortized
cost is calculated as original cost less installments
plus/less the accumulated amortization of the
difference between cost and nominal value. Losses
and gains on loans are thus allocated over the term
so that the effective interest rate is recognized in the
income statement over the loan period. Financial
liabilities are derecognized when settled.
Deferred revenue
Deferred revenue are prepayments received from
customers, comprising of payments received
regarding income in subsequent years.
' DKK
Financial assets at amortised cost:
Trade receivables , ,
Receivables from group enterprises , ,
Other financial assets at amortised costs , ,
Cash and cash equivalents , ,
Other current assets , ,
Total , ,
Financial liabilities at amortised cost:
Lease liabilities , ,
Trade and other payables , ,
Payables to group enterprises , ,
Financial liabilities at fair value:
Derivative financial instruments:
Fair value through other comprehensive income
Total , ,
Fair values are approximately the same as the carrying amounts.
Consolidated
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16. Share capital 17. Related parties 18. Commitments and
contingent liabilities
§ Accounting policy
Equity instruments
An equity instrument is any contract that
evidences a residual interest in the assets of an
entity after deducting all its liabilities. Equity
instruments issued by a group entity are
recognized at the proceeds received, net of
direct issue costs.
Other reserves include:
• Foreign currency translation - movements in
other comprehensive income from retransla-
tion of foreign operations.
• Other undistributable reserve - movement in
share warrants
• Reserve for hedging - movements in other
comprehensive income from fair value
adjustments of cash flow hedging
The share capital comprises 500,000 shares of a
nominal value of DKK1 each.
All shares are fully issued and paid. One share holds one
vote.
Dividends
The dividends paid in 2024 were DKK0 (2023: DKK0).
Capital management
The group’s objectives when managing capital are to
safeguard the group’s ability to continue as a going
concern, in order to provide returns for shareholders and
benefits for other stakeholders and to maintain an
optimal capital structure to reduce cost of capital.
The management and the owners monitor the share and
capital structure to ensure that Trackunit ApS’ capital
resources support the strategic goals.
Consistent with others in the industry, the group
monitors capital based on the gearing ratio. This ratio is
calculated as net debt divided by total capital. Net debt
is calculated as total borrowings (including ‘current and
non-current borrowings’ as shown in the consolidated
balance sheet) less cash and cash equivalents. Total
capital is calculated as ‘equity’ as shown in the
consolidated balance sheet plus net debt.
During 2024, the group’s strategy was to maintain the
gearing ratio below 10%. The gearing ratio on 31
December 2024 was -18.6% (2023: -10,0%).
The group is owned by Galaxy Bidco ApS, who own 100%
of the shares.
Galaxy UK Topco Limited is the ultimate parent of the
Trackunit Group. The majority shareholder of Galaxy UK
Topco Limited is Hg Genesis 9 Nominees Limited. The
directors of Hg Genesis 9 Nominees Limited deem there
not to be an ultimate controlling party as none of the limit-
ed partners in the limited partnerships managed by Hg
Pooled Management Limited has an ownership of more
than 25% of the issued share capital of the company.
Trackunit ApS Group is included in the consolidated
annual report for Galaxy Holdco ApS and the consolidat-
ed annual report for Galaxy UK Topco Limited.
Transactions with parent companies have been
management fee, financing, and interest.
Trackunit’s interests in subsidiaries are shown in note 23,
Group companies. No transactions were carried out
during the year with subsidiaries except for intra-group
transactions eliminated in the consolidated financial
statements.
The disclosure of “Key management compensation” is
presented in note 3. No other transactions were carried
out during the year with Key management.
The disclosure of shares issued during the period is
presented in note 16.
Transactions with related parties have all been at
arm's-length.
Subject to customary legal provisions, the Group and
subsidiaries act as guarantors of loans for the Group
entity Galaxy Bidco ApS.
The Danish companies are jointly and severally liable for
tax on the Group's jointly taxed income. The jointly taxed
amount is stated in the financial statement of the
management company for the joint taxation, Galaxy
Holdco ApS. The Group's Danish companies are also
jointly and severally liable for withholding taxes, royalty
taxes and interest taxes. Any subsequent adjustments to
corporation and withholding taxes may result in the
company's liability amounting to a larger amount.
Consolidated
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19. Business combinations
§ Accounting policy
The acquisition method of accounting is used to
account for all business combinations, regardless of
whether equity instruments or other assets are
acquired. The consideration transferred for the
acquisition of a subsidiary comprises the:
• fair values of the assets transferred
• liabilities incurred to the former owners of the
acquired business
• equity interests issued by the group
• fair value of any asset or liability resulting from a
contingent consideration arrangement, and
• fair value of any pre-existing equity interest in the
subsidiary.
Identifiable assets acquired and liabilities and
contingent liabilities assumed in a business combina-
tion are, with limited exceptions, measured initially at
their fair values at the acquisition date. The group
recognizes any non-controlling interest in the acquired
entity on an acquisition-by-acquisition basis either at
fair value or at the non-controlling interest’s propor-
tionate share of the acquired entity’s net identifiable
assets.
Acquisition-related costs are expensed as incurred.
The excess of the
• consideration transferred,
• amount of any non-controlling interest in the
acquired entity, and
• acquisition-date fair value of any previous equity
interest in the acquired entity
over the fair value of the net identifiable assets
acquired is recorded as goodwill. If those amounts are
less than the fair value of the net identifiable assets of
the business acquired, the difference is recognized
directly in profit or loss as a bargain purchase.
Where settlement of any part of cash consideration is
deferred, the amounts payable in the future are
discounted to their present value as at the date of
exchange. The discount rate used is the entity’s
incremental borrowing rate, being the rate at which a
similar borrowing could be obtained from an independ-
ent financier under comparable terms and conditions.
Contingent consideration is classified either as equity
or a financial liability. Amounts classified as a
financial liability are subsequently remeasured to fair
value with changes in fair value recognized in profit or
loss.
If the business combination is achieved in stages, the
acquisition date carrying value of the acquirer’s
previously held equity interest in the acquiree is
re-measured to fair value at the acquisition date. Any
gains or losses arising from such remeasurement are
recognized in profit or loss.
Acquisition in 2024
There have been no acquisitions in 2024
Acquisition in 2023
On January 1 2023 Trackunit acquired the German
Con-Tech company Flexcavo GmbH. Flexcavo offers a
unique software solution to the contractor segment
within Machine telematics which therefore provides a
perfect fit for the Trackunit product suite.
On September 29 2023 Trackunit acquired the North
American field service expert OEM Solutions LLC.. OEMSI is
a deployment specialist operating across North America
with a network of certified technicians. The acquisition
enables Trackunit to respond to the increasing customer
demands for scaled installation services and give the
opportunity to offer customers a complete service
throughout the life cycle of connected equipment.
Overview of the fair value of the assets and liabilities
acquired is shown in the financial statement for 2023.
Consolidated
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20. Financial risk management
Financial risk factors
The group’s activities expose it to a variety of financial
risks: market risk (currency and interest risk), credit risk
and liquidity risk. The group’s overall risk management
program focuses on the unpredictability of financial
markets and seeks to minimize potential adverse effects
on the group’s financial performance.
The Financial risks of the group are managed centrally.
The overall risk management guidelines and policies
have been approved by the board of directors. The
board provides principles for overall risk management,
as well as policies covering specific areas, such as
foreign exchange risk, interest rate risk, credit risk, use of
derivative financial instruments and non-derivative
financial instruments, and investment of excess liquidity.
Market risk
Foreign exchange risk
The group operates internationally and is exposed to
foreign exchange risk arising from various currency
exposures. Foreign exchange risk arises from future
commercial transactions, recognized assets and
liabilities and net investments in foreign operations.
Increases or decreases in the exchange rate of such
foreign currencies against the functional currency, the
DKK, can affect the group’s results and cash position
negatively or positively.
Management has set up a policy to require group
companies to manage their foreign exchange risk
against their functional currency. Foreign exchange risk
arises when future commercial transactions or recog-
nized assets or liabilities are denominated in a currency
that is not the entity’s functional currency.
The Groups sales, cost of goods sold, and expenses are
mainly incurred in DKK, EUR, USD, CAD, or GBP. The
Group has transactions in other currencies, but the
foreign exchange risks related to this are not considered
material. The group's debt is denominated in EUR, GBP,
and USD. All loan facilities are placed on a higher level in
the Group.
The group is primarily exposed to changes in DKK/GBP,
DKK/USD and DKK/CAD exchange rate.
Sensitivity analysis - foreign exchange risk
The following table details the group's sensitivity to a
10% decrease in USD, GBP and CAD exchange rates. The
analysis includes impact to the profit and loss and total
equity by translating the profit and loss accounts and
balance sheet with USD, GBP and CAD exchange rates
10% lower than actual balance sheet ending rates. All
other variables are held constant.
' DKK
Net profit
Equity
Net profit
Equity
USD (,) (,) (,) (,)
GBP () ,
CAD (,) (,) (,) (,)
Interest rate risk
The Groups interest rate risk arises from long-term
borrowings related to acquisition facilities. Borrowings
issued at variable rates expose the group to cash flow
interest rate risk. A group hedging policy, to mitigate the
interest risk, is being developed.
All Senior Loan facilities were settled in connection with
the acquisition by Hg, and the new loan facilities have
been placed at a higher level in the Group. Therefore, no
sensitivity analysis is needed for 2024 and 2023.
Credit risks
Credit risk is managed on Group basis. Standard terms
and conditions apply for the Group and changes are
subject to central approval. Intercompany is not
considered a credit risk.
Credit risk arises from cash and cash equivalents and
deposits with banks and financial institutions, as well as
credit exposure to customers, including outstanding
receivables. For banks and financial institutions, only
independently rated parties with a minimum rating of ‘A’
are accepted. For customers individual risk limits are set
based on internal or external ratings.
The maximum exposure corresponds to the carrying
amount.
Liquidity risk
Cash flow forecasting is performed by group finance.
Group finance monitors rolling forecasts of the group’s
liquidity requirements to ensure it has sufficient cash to
meet operational needs while always maintaining
sufficient headroom on its undrawn committed borrow-
ing facilities so that the group does not breach borrow-
ing limits or covenants (where applicable) or any of its
borrowing facilities. Such forecasting takes into
consideration the group’s debt financing plans, covenant
compliance and compliance with internal balance sheet
ratio targets.
Contractual maturities for financial liabilities
The table below analyses the group’s non-derivative and
derivative financial liabilities into relevant maturity
groupings based on the remaining period at the balance
sheet date to the contractual maturity date. The
amounts disclosed in the table are the contractual
undiscounted cash flows.
Consolidated
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Consolidated financial statements
20. Financial risk management
(continued)
21. Events after the balance sheet date
' DKK
Less than
year
to
years
More than
years Total
December
Lease liabilities , , ,
Trade and other payables , ,
, , ,
December
Lease liabilities , , ,
Trade and other payables , ,
, , ,
In January 2025 the Group completed a reorganization
making 40 employees redundant. The purpose of the
reorganization is to ensure we are better equipped to
deliver on our purpose of Eliminating Downtime and thus
we will continue to add people in 2025. The reorganiza-
tion does not have any impact on the financial figures
for 2024.
After the balance sheet date Goldman Sachs Alterna-
tives have acquired the majority share in Trackunit ApS’s
ultimate UK parent company, Galaxy UK Topco Limited.
As part of this transaction the current majority share-
holder Hg will reinvest in Galaxy UK Topco Limited and
continue as a key shareholder alongside with Goldman
Sachs Alternatives. The acquisition does not have any
impact on the financial statement for 2024 except for the
M&A cost booked as special non recurring items.
No further significant event have occurred after the
balance sheet date.
Consolidated
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22. Changes in net working capital 23. Group companies
' DKK
Changes in inventories (,) ,
Changes in trade receivables and other receivables , (,)
Change in trade and other payabæes and deferred revenue , ,
, ,
Name and registered office Country Direct Group holding
Trackunit Pty Ltd Australia %
Trackunit KK Japan %
Trackunit Asia Pacific Pte Ltd Singapore %
Trackunit AB Sweden %
Trackunit AS Norway %
Trackunit America ApS Denmark %
– Trackunit Inc USA %
– Trackunit Canada Inc Canada %
Trackunit SAS France %
Trackunit Ltd United Kingdom %
Trackunit GmbH Germany %
– Flexcavo GmbH Germany %
Trackunit BV Netherlands %
Consolidated
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Consolidated financial statements
24. Basis of preparation
This note provides a list of the significant accounting
policies adopted in the preparation of these consolidat-
ed financial statements to the extent they have not
already been disclosed in the other notes. These policies
have been consistently applied throughout the financial
year presented, unless otherwise stated.
General
The Consolidated Financial Statements for Trackunit ApS
have been prepared in accordance with IFRS Accounting
Standards (IFRS) as issued by the International Account-
ing Standards Board (IASB) and as adopted by the
European Union as well as additional Danish disclosure
requirements applying to entities of reporting class C.
The annual report is prepared according to standards and
interpretations effective for the financial year beginning
on 1 January 2024. No standards or interpretations other
than those mentioned below have been adopted early.
General information on recognition and
measurement
The Financial Statements have been prepared under the
historical cost method, except for the measurement of
certain financial instruments at fair value.
Implementation of new standards, amendments, and
interpretations
The group has applied the following standards and
amendments for the first time for its annual reporting
period commencing 1 January 2024:
• Classification of Liabilities as Current or Non-current
and Non-current liabilities with covenants – Amend-
ments to IAS 1
The amendments listed above did not have any impact on
the amounts recognized in prior periods and are not
expected to significantly affect the current or future periods.
New standards, amendments and interpretations
adopted but not yet effective
Certain new accounting standards and interpretations have
been published that are not mandatory for 31 December
2024 reporting periods and have not been early adopted by
the group. These standards are not expected to have a
material impact on the entity in the current or future
reporting periods and on foreseeable future transactions.
Basis of consolidation
Subsidiaries
Subsidiaries are all entities over which the group has
control. The group controls an entity when the group is
exposed to, or has rights to, variable returns from its
involvement with the entity and has the ability to affect
those returns through its power over the entity. Subsidiar-
ies are fully consolidated from the date on which control
is transferred to the group. They are deconsolidated from
the date that control ceases.
Intercompany transactions, balances, and unrealized
gains on transactions between group companies are
eliminated. Unrealized losses are also eliminated unless the
transaction provides evidence of an impairment of the
transferred asset. The accounting policies of subsidiaries
have been changed where necessary to ensure consisten-
cy with the policies adopted by the group.
Foreign currency translation
Functional and presentation currency
Items in the financial statements of each of the reporting
companies of the Group are measured in the currency of
the primary economic environment in which the company
operates (the functional currency).
The financial statements are presented in Danish Kroner
(DKK), which is Trackunit ApS’ functional and presenta-
tion currency. The financial statements have been
rounded to the nearest thousand.
Transactions and balances
Foreign currency transactions are translated into the
functional currency using the exchange rates at the dates of
the transactions or valuation where items are re-measured.
Foreign exchange gains and losses resulting from the
settlement of such transactions and from the translation at
year-end exchange rates of monetary assets and liabilities
denominated in foreign currencies are recognized in profit and
loss, except when deferred in other comprehensive income as
qualifying cash flow hedges and qualifying net investment
hedges. Foreign exchange gains and losses are presented in
the income statement within “finance income or costs”.
Group companies
The results and financial position of all the group entities
that have a functional currency different from the
presentation currency are translated into the presenta-
tion currency as follows:
• Assets and liabilities for each balance sheet presented
are translated at the closing rate at the date of that
balance sheet.
• Income and expenses for each statement of profit and
loss are translated at average exchange rates; and
• All resulting exchange differences are recognized in
other comprehensive income.
Goodwill and fair value adjustments arising from the
acquisition of a foreign entity are treated as assets and
liabilities of the foreign entity and translated at the
closing rate. Exchange differences arising are recognized
in other comprehensive income.
Statement of cash flow
The Statement of Cash Flows is presented using the
indirect method. The Statement of Cash Flows shows
cash flows used in operating activities, cash flows used in
investing activities, cash flows from financing activities,
and the group's cash and cash equivalents at the
beginning and end of the year.
Cash flows used in operating activities is comprised of
net profit or loss for the year adjusted for non-cash items,
such as share based payment expense, fair value
revaluations of shareholder warrants, depreciations, paid
financial items, corporate tax paid, and change in
working capital. Cash flows used in investing activities
are comprised of payments relating to property, plant,
and equipment.
Cash flows from financing activities are comprised of
proceeds from borrowings, such as interest-bearing
convertible loans, and proceeds from share issuances
and related transaction costs.
Cash and cash equivalents
In the consolidated statement of cash flows, cash and
cash equivalents includes cash in hand and other
short-term highly liquid investments with original
maturities of three months or less.
Consolidated
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Consolidated financial statements
Parent company
financial statements
05
Note 1 Sta costs
Note 2 Share-based payment
Note 3 Depreciation, amortization and impairment of
intangible assets and property, plant and equipment
Note 4 Other operating expenses
Note 5 Financial income and expenses
Note 6 Tax on profit/loss for the year
Note 7 Intangible assets
Note 8 Property, plant and equipment
Note 9 Investments in subsidiaries
Note 10 Other fixed investments
Statement of profit and loss
Balance sheet
Statement of changes in equity
Note 11 Inventories
Note 12 Prepayments
Note 13 Share capital
Note 14 Distribution of profit/loss
Note 15 Provision for deferred tax
Note 16 Long-term debt
Note 17 Deferred revenue
Note 18 Contingent assets, liabilities,
and financial obligations
Note 19 Events after the balance sheet date
Note 20 Related parties
Note 21 Accounting policies
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' DKK Notes
Net revenue , ,
Cost of goods sold (,) (,)
Gross profit/(loss) , ,
External costs (,) (,)
Staff expenses (,) (,)
Earnings before depreciations, interest and tax (EBITDA) , ,
Depreciation, amortization costs and impairment loss of
property, plant and equipment and intangible assets (,) (,)
Other operating expenses (,) (,)
Earnings before interest and tax (EBIT) , ,
Finance income , ,
Finance costs (,) (,)
Earnings before tax (EBT) , ,
Income tax expense (,) (,)
Profit/(loss) for the year , ,
Statement of profit and loss
1 January – 31 December
Parent
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Balance sheet – 31 December
Assets
' DKK Notes
Completed development projects , ,
Acquired licenses
Goodwill , ,
Trademarks , ,
Customer relations , ,
Development projects in progress , ,
Intangible assets , ,
Land and buildings , ,
Other fixtures and fittings, tools and equipment , ,
Leasehold improvements
Property, plant and equipment , ,
Investments in subsidaries ,, ,,
Deposits , ,
Fixed assets investments ,, ,,
Total non-current assets ,, ,,
' DKK Notes
Inventories , ,
Trade receivables , ,
Receivables from group enterprises , ,
Connected device costs , ,
Other receivables , ,
Prepayments , ,
Receivables , ,
Cash and cash equivalents , ,
Total current assets , ,
Total assets ,, ,,
Parent
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Balance sheet – 31 December
Equity and liabilities
' DKK Notes
Share capital
Reserve for development cost , ,
Retained earnings ,, ,,
Total equity ,, ,,
Provision for deferred tax , ,
Provision , ,
Lease obligations , ,
Deferred income , , ,
Total non-current liabilities , ,
' DKK Notes
Lease obligations , ,
Trade payables , ,
Payables to group enterprises ,
Corporation tax payables to group enterprises , ,
Other payables , ,
Deferred income , , ,
Total current liabilities , ,
Total liabilities , ,
Total equity and liabilities ,, ,,
Share-based payment
Contingent assets, liabilities and financial obligations
Events after the balance sheet date
Related parties
Significant accounting policies
Parent
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Statement of changes in equity
1 January – 31 December
' DKK
Share
capital
Reserve for
development
costs
Retained
earnings
Total
equity
Balance at January , ,, ,,
Development costs for the year , (,)
Amortisation for the year (,) ,
Net profit/loss for the year , ,
Balance at December , ,, ,,
' DKK
Share
capital
Reserve for
development
costs
Retained
earnings
Total
equity
Balance at January , ,, ,,
Development costs for the year , (,)
Amortisation for the year (,) ,
Net profit/loss for the year , ,
Balance at December , ,, ,,
Parent
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1. Sta costs 2. Share-based payment
' DKK
Wages and salaries , ,
Pensions , ,
Other social security costs ,
Other employee costs , ,
Total staff cost , ,
Including remuneration to the Executive Management and Board of Directors of:
Executive Management , ,
Board of Directors
, ,
Average number of full time employees
Outstanding warrants January , ,
Granted during the year , ,
Forefeited during the year (,) (,)
Outstanding warrants December ,, ,
To attract and retain employees Trackunit has estab-
lished an incentive program for all non-executive
employees in 2022. The purpose is to share the value
creation eventually to be realized at the time of an exit
with employees and support retention until then.
The warrant program is an equity settled program
established in March 2022. The vesting period is
expected to be 4 years starting from the grant date. The
program comprises a total of 1,282,740 warrants on 31
December 2024 (2023: 940,120). Each warrant gives the
holder the right to share capital of DKK 0.01 nominal
value in the ultimate parent company Galaxy UK Topco
Ltd.
The total number of warrants granted in 2024 was
405,820. The total fair value of the program is DKK17.3m.
The valuation is determined using a Black Scholes
valuation model and is based on the following
assumptions:
• Vesting period: 4 years
• Expected volatility: 59% - based on peer group
analysis
• Risk free interest rate: 2,0%
Total expenses arising from the incentive program in
2024 are DKK9.3m (2023 DKK 5.0m).
Parent
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3. Depreciation, amortization and impairment of intangible
assets and property, plant and equipment
5. Financial income and expenses
4. Other operating expenses
' DKK
Amortization of intangible assets , ,
Depreciation of property, plant and equipment , ,
, ,
' DKK
M&A activities , ,
Restructuring ,
Consultancy ,
Other expenses ,
, ,
' DKK
Financial income
Exchange rate adjustments , ,
Interest received from Group enterprises , ,
Other financial income , ,
, ,
Financial cost
Interest expenses, bank debt
Interest and finance charges for lease liabilities
Interest paid from Group enterprises , ,
Other financial expenses, including bank fees ,
, ,
Parent
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6. Tax on profit/loss
for the year
7. Intangible assets
' DKK
Current tax for the year , ,
Deferred tax for
the year (,) (,)
, ,
' DKK Goodwill Trademarks
Customer
relations Software
Completed
development
projects
Development
projects
in progress Total
Cost:
At January , , , , , , ,
Additions during the year , ,
Disposals () (,) (,)
Reclassifications , (,)
As at December , , , , , , ,
Amortization and impairment:
At January , , , , , ,
Disposals () (,) (,)
Amortization charge , , , , ,
As at December , , , , , ,
Carrying amount December , , , , , ,
Completed development projects relate to development of products and services that are ready for sale.
Parent
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8. Property, plant and equipment 9. Investments in subsidiaries
' DKK
Land and
buildings
Other fixtures
and fittings, tools
and equipment
Leasehold
improvements
Cost:
At January , , ,
Additions during the year , ,
Disposals during the year (,)
As at December , , ,
Amortization and impairment:
At January , , ,
Depreciation for the year , ,
Depreciation of disposed assets (,)
As at December , , ,
Carrying amount December , ,
Including assets under finance
leases amounting to ,
' DKK
Costs at January ,, ,,
Costs of December ,, ,,
Name and registered office Country Direct Group holding
Trackunit Pty Ltd Australia %
Trackunit KK Japan %
Trackunit Asia Pacific Pte Ltd Singapore %
Trackunit AB Sweden %
Trackunit AS Norway %
Trackunit America ApS Denmark %
– Trackunit Inc USA %
– Trackunit Canada Inc Canada %
Trackunit SAS France %
Trackunit Ltd United Kingdom %
Trackunit GmbH Germany %
– Flexcavo GmbH Germany %
Trackunit BV Netherlands %
Investment in subsidiaries is specified as follows:
Parent
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10. Other fixed investments
' DKK
Costs at January , ,
Additions for the year
Disposals for the year ()
Cost of December , ,
Carrying amount at December , ,
11. Inventories
' DKK
Raw materials and consumables , ,
Finished goods and goods for resale
, ,
12. Prepayments
Prepayments amounts to DKK30.4m for 2024 (2023: DKK27.4m) and consist of prepaid expenses concerning rent,
insurance premiums and subscriptions.
13. Share capital
The share capital consists of 500,000 shares of a nominal value of DKK 1. No shares carry any special rights
14. Distribution of profit/loss
' DKK
Retained earnings , ,
, ,
15. Provision for deferred tax
' DKK
Provision for deferred tax at January , ,
Amounts recognized in the income statement for the year (,) (,)
Amounts recognized prior year
Provision for deferred tax at December , ,
Parent
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16. Long-term debt
17. Deferred revenue
19. Events after the balance sheet date
20. Related parties
18. Contingent assets, liabilities, and financial obligations
' DKK
Less than
year
to
years
More than
years Total
December
Lease obligations , , ,
Other payables , ,
Deferred income , , ,
, , ,
December
Lease obligations , , ,
Other payables , ,
Deferred income , , ,
, , ,
Deferred revenue consists of payments received in respect of subsequent income years. The total deferred revenue
amounts to DKK322.9m in 2024 (2023: DKK271.3m)
In January 2025 the Group completed a reorganization making 40 employees redundant. The purpose of the
reorganization is to ensure we are better equipped to deliver on our purpose of Eliminating Downtime and thus we
will continue to add people in 2025. The reorganization does not have any impact on the financial figures for 2024.
After the balance sheet date Goldman Sachs Alternatives have acquired the majority share in Trackunit ApS’s
ultimate UK parent company, Galaxy UK Topco Limited. As part of this transaction the current majority shareholder
Hg will reinvest in Galaxy UK Topco Limited and continue as a key shareholder alongside with Goldman Sachs
Alternatives. The acquisition does not have any impact on the financial statement for 2024 except for the M&A cost
booked as special non recurring items.
No further significant event have occurred after the balance sheet date.
Transactions with related parties have been at arm's-length.
Refer to the consolidated financial statement regarding the company's ownership structure.
The Danish group companies are jointly and severally liable for tax on the Danish jointly taxed incomes etc. of the
Danish Group. The total amount of corporation tax payable is disclosed in the Annual Report of Galaxy Holdco ApS,
which is the administration company of the jointly taxation purpose. Moreover, the Danish group companies are jointly
and severally liable for Danish withholding taxes by way of dividend tax, tax on royalty payments and tax on unearned
income. Any subsequent adjustments of corporation taxes and withholding taxes may increase the Company’s liability.
Payments due within 1 year are recognized in short-term debt. Other debt is recognized in long-term debt.
The debt falls due for payment as specified below:
Parent
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21. Accounting policies
The Annual Report of Trackunit ApS for 2024 has been
prepared in accordance with the provisions of the
Danish Financial Statements Act applying to reporting
class C (Large).
Recognition and measurement of financial instruments
are made in accordance with International Financial
Reporting Standards (IFRS), cf. the Danish Financial
Statements Act, §37 section 5.
Additionally, revenue is measured in accordance with
International Financial Reporting Standards (IFRS 15),
and leasing is measured in accordance International
Financial Reporting Standards (IFRS 16).
The accounting policies are unchanged compared with
last year.
The Financial Statements for 2024 are presented in
000’ DKK.
Cash flow statement
With reference to section 86(4) of the Danish Financial
Statements Act and to the cash flow statement
included in the consolidated financial statements of
Trackunit ApS, the Company has not prepared a cash
flow statement.
Recognition and measurement
Revenues are recognized in the income statement as
earned. Furthermore, value adjustments of financial
assets and liabilities measured at fair value or
amortized cost are recognized. Moreover, all expenses
incurred to achieve the earnings for the year are
recognized in the income statement, including
depreciation, amortization, impairment losses and
provisions as well as reversals due to changed
accounting estimates of amounts that have previously
been recognized in the income statement.
Assets are recognized in the balance sheet when it is
probable that future economic benefits attributable to
the asset will flow to the Company, and the value of
the asset can be measured reliably.
Liabilities are recognized in the balance sheet when it
is probable that future economic benefits will flow out
of the Company, and the value of the liability can be
measured reliably.
Assets and liabilities are initially measured in cost.
Subsequently, assets and liabilities are measured as
described for each item below.
Leases as lessor
The lessee is required to recognize all leases as a lease
liability and a lease asset in the balance sheet with
two exceptions: short-term leases (less than 12 months)
and leases relating to low-value assets. It must
furthermore be considered whether the agreement is a
lease or a service arrangement.
The company leases various vehicles, offices, and
other equipment. From 1 January 2019, leases are
recognized as a right-of-use asset and a correspond-
ing liability at the date the leased asset is available for
use by the group. In general, all lease contracts are
recognized as a lease liability and a lease asset in the
balance sheet with two exceptions: short-term leases
(less than 12 months) and leases relating to low-value
assets (< USD 5.000).
Cars
Lease contracts could be separated between a leasing
contract and a service arrangement. The group has
decided not to separate lease and non-lease compo-
nents and instead recognize each car as one contract
according to IFRS 16.15.
Assets and liabilities arising from a lease are initially
measured on a present value basis. To find the present
value of a lease contract several factors must be
determined. Leasing period and fixed payments
appears in the lease contract which means only
interest rate must be determined. Here the group’s
incremental borrowing rate to obtain an asset of
similar value is used. In accordance with the Senior
facilities agreement the interest rate for cars is 4.5%.
Variable lease payments as extra miles beyond the
lease contract, damages, bridge tolls etc. are not
measured as a lease liability and a lease asset in the
balance sheet. Instead, these costs are recognized in
the profit and loss when they occur.
Offices
Assets and liabilities arising from a lease are initially
measured on a present value basis. To find the present
value of a lease contract several factors must be
determined. Fixed payments appear in the lease
contract. The leasing period for all offices is set on the
same date as the HQ office expires even though
different terms of condition may occur. To find the
group’s incremental borrowing rate to obtain an asset
of similar value, the interest rate is set at 4.5% for
Offices in accordance with the Senior facilities
agreement.
Other equipment
Assets and liabilities arising from a lease are initially
measured on a present value basis. To find the present
value of a lease contract several factors must be
determined. Leasing period and fixed payments
appears in the lease contract which means only
interest rate must be determined. Here the group’s
§ Accounting policy
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21. Accounting policies
(continued)
§ Accounting policy (continued)
incremental borrowing rate to obtain an asset of
similar value is used. In accordance with the Senior
facilities agreement the interest rate for other
equipment is 4.5%.
Translation policies
Transactions in foreign currencies are translated at the
exchange rates at the dates of transaction. Gains and
losses arising due to differences between the transac-
tion date rates and the rates at the dates of payment
are recognized in financial income and expenses in the
income statement.
Receivables, payables, and other monetary items in
foreign currencies that have not been settled at the
balance sheet date are translated at the exchange
rates at the balance sheet date. Any differences
between the exchange rates at the balance sheet date
and the transaction date rates are recognized in
financial income and expenses in the income state-
ment; however, see the section on hedge accounting.
Income statements of foreign subsidiaries that are
separate legal entities are translated at transaction
date rates or approximated average exchange rates.
Balance sheet items are translated at the exchange
rates at the balance sheet date. Exchange adjustments
arising from the translation of the opening equity and
exchange adjustments arising from the translation of
the income statements at the exchange rates at the
balance sheet date are recognized directly in equity.
Derivative financial instruments
Derivative financial instruments are initially recognized
in the balance sheet at cost and are subsequently
re-measured at their fair values. Positive and negative
fair values of derivative financial instruments are
classified as “Other receivables” and “Other paya-
bles”, respectively.
Changes in the fair values of derivative financial
instruments are recognized in the income statement
unless the derivative financial instrument is designated
and qualified as hedge accounting, see below.
Hedge accounting
Changes in the fair values of financial instruments that
are designated and qualify as fair value hedges of a
recognized asset, or a recognized liability are
recognized in the income statement as are any
changes in the fair value of the hedged asset or the
hedged liability related to the hedged risk.
Changes in the fair values of derivative financial
instruments that are designated and qualify as hedges
of expected future transactions are recognized in
retained earnings under equity as regards the effective
portion of the hedge. The ineffective portion is
recognized in the income statement. If the hedged
transaction results in an asset or a liability, the
amount deferred in equity is transferred from equity
and recognized in the cost of the asset or the liability,
respectively. If the hedged transaction results in an
income or an expense, the amount deferred in equity is
transferred from equity to the income statement in the
period in which the hedged transaction is recognized.
The amount is recognized in the same item as the
hedged transaction.
Changes in the fair values of financial instruments that
are designated and qualify as hedges of net invest-
ments in independent foreign subsidiaries or associ-
ates are recognized directly in equity as regards the
effective portion of the hedge, whereas the ineffective
portion is recognized in the income statement.
Revenue
Revenue Recognition
Revenue is recognized when promised goods or
services are transferred to customers in an amount
that reflects the consideration to which we expect to
be entitled in exchange for those goods or services.
We determine revenue recognition through the
following steps:
1. identification of the contract, or contracts, with a
customer;
2. identification of the performance obligations in the
contract;
3. determination of the transaction price;
4. allocation of the transaction price to the perfor-
mance obligations in the contract; and
5. recognition of revenue when, or as, we satisfy a
performance obligation.
We offer subscriptions to access our Cloud and IoT
platforms. Customers subscribe to one or more
Applications which includes data that is primarily
provided by various proprietary connected device
access points, including connectivity sensors. Our
Cloud and IoT platforms and the related connected
device access points are highly interdependent and
interrelated and represent a combined performance
obligation.
Deferred Revenue
Deferred revenue represents amounts billed to
customers or payments received from customers for
which revenue has not yet been recognized. Deferred
revenue consists of prepayments made by customers
for future periods. A portion of customer contracts is
paid in advance for the full, multi-year term. Addition-
ally, the Group enables its customers to prepay all, or
part, of their contractual obligations monthly,
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21. Accounting policies
(continued)
§ Accounting policy (continued)
quarterly, or annually. As a result, the deferred
revenue balance does not represent the total contract
value of all multi-year, non-cancelable subscription
agreements. The current portion of deferred revenue
represents the amount that is expected to be recog-
nized within one year of the consolidated balance
sheet date.
Connected Devices
Trackunit capitalize connected devices associated with
subscription contracts. These costs are directly related
to the customer. These contract fulfillment costs are
amortized over a period of benefit of three years.
Trackunit determined the period of benefit by taking
into consideration the expected life of the connected
device, the connected device’s warranty period, past
experiences with customers, the duration of our
relationships with our customers and other available
information.
Other external expenses
Other external expenses comprise expenses for
premises, sales, and distribution as well as office
expenses, etc.
Gross profit/loss
With reference to section 32 of the Danish Financial
Statements Act, gross profit/loss is calculated as a
summary of revenue, other operating income,
expenses for raw materials and consumables and
other external expenses.
Staff expenses
Staff expenses comprise wages and salaries as well as
payroll expenses.
Amortization, depreciation, and impairment losses
Amortization, depreciation, and impairment losses
comprise amortization, depreciation and impairment
of intangible assets and property, plant, and equip-
ment.
Other operating income and expenses
Other operating income and other operating expenses
comprise items of a secondary nature to the main
activities of the Company, including gains and losses
on the sale of intangible assets and property, plant,
and equipment.
Financial income and expenses
Financial income and expenses are recognized in the
income statement as the amounts relating to the
financial year.
Tax on profit/loss for the year
Tax for the year consists of current tax for the year and
changes in deferred tax for the year. The tax attributa-
ble to the profit for the year is recognized in the
income statement, whereas the tax attributable to
equity transactions is recognized directly in equity.
The Company is jointly taxed with wholly owned
Danish and foreign subsidiaries. The tax effect of the
joint taxation is allocated to enterprises in proportion
to their taxable incomes.
Intangible assets
Development projects, patents, and licenses
Costs of development projects comprise salaries,
amortization, and other expenses directly or indirectly
attributable to the Company’s development activities.
Development projects that are clearly defined and
identifiable and in respect of which technical
feasibility, sufficient resources and a potential future
market or development opportunity in the enterprise
can be demonstrated, and where it is the intention to
manufacture, market or use the project, are recognized
as intangible assets. This applies if sufficient certainty
exists that the value in use of future earnings can cover
the cost of sales, distribution and administrative
expenses involved as well as the development costs.
Development projects that do not meet the criteria for
recognition in the balance sheet are recognized as
expenses in the income statement as incurred.
Capitalized development costs are measured at cost
less accumulated amortization and impairment losses
or at a lower recoverable amount. An amount
corresponding to the recognized development costs is
allocated to the equity item “Reserve for development
costs”. The reserve comprises only development costs
recognized in financial years beginning on or after 1
January 2016. The reserve is reduced by amortization
of and impairment losses on the development projects
on a continuing basis.
As of the date of completion, capitalized development
costs are amortized on a straight-line basis over the
period of the expected economic benefit from the
development work. The amortization period is 3-5
years.
Licenses are measured at cost less accumulated
amortization and less any accumulated impairment
losses or at a lower value in use.
Software licenses are amortized over the period of the
agreement, which is 3-5 years.
Goodwill
Goodwill is amortized on a straight-line basis over the
estimated useful life of 10 years determined based on
Management’s experience with the individual business
areas.
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21. Accounting policies
(continued)
§ Accounting policy (continued)
Property, plant and equipment
Property, plant and equipment are measured at cost
less accumulated depreciation and less if any
accumulated impairment losses.
Cost comprises the cost of acquisition and expenses
directly related to the acquisition up until the time
when the asset is ready for use.
Depreciation based on cost reduced by any residual
value is calculated on a straight-line basis over the
expected useful lives of the assets, which are:
• Other buildings 4 years
• Plant and machinery 3-7 years
• Other fixtures and fittings, tools
and equipment 3-5 years
The depreciation period and residual value are
reassessed annually.
Assets with a useful life less than 1 year are expensed
in the year of acquisition.
Impairment of fixed assets
The carrying amounts of intangible assets and
property, plant and equipment are reviewed on an
annual basis to determine whether there is any
indication of impairment other than that expressed by
amortization and depreciation.
If so, the asset is written down to its lower recoverable
amount.
Investments in subsidiaries
Investments in subsidiaries are recognized and
measured at cost. If the cost exceeds the recoverable
amount, it is written down.
Dividends from subsidiaries are recognized as income
in the financial year in which the dividend is declared.
Other fixed asset investments
Other fixed asset investments consist of deposits.
Inventories
Inventories are measured at the lower of cost under the
FIFO method and net realizable value.
The net realizable value of inventories is calculated at
the amount expected to be generated by sale of the
inventories in the process of normal operations with
deduction of selling expenses. The net realizable value
is determined allowing for marketability, obsolescence,
and development in expected selling price.
The cost of goods for resale, raw materials and
consumables equals landed cost.
The cost of finished goods and work in progress
comprises the cost of raw materials, consumables, and
direct labor with addition to indirect production costs.
Indirect production costs comprise the cost of indirect
materials and labor as well as maintenance and
depreciation of the machinery, factory buildings and
equipment used in the manufacturing process as well
as costs of factory administration and management.
Receivables
Receivables are recognized in the balance sheet at
amortized cost, which substantially corresponds to
nominal value. Provisions for estimated bad debts are
made.
Prepayments
Prepayments comprise prepaid expenses concerning
rent, insurance premiums and subscriptions.
Equity - Dividend
The dividend distribution proposed by Management for
the year is disclosed as a separate equity item.
Deferred tax assets and liabilities
Deferred income tax is measured using the balance
sheet liability method in respect of temporary
differences arising between the tax bases of assets
and liabilities and their carrying amounts for financial
reporting purposes based on the intended use of the
asset and settlement of the liability, respectively.
Deferred tax assets are measured at the value at which
the asset is expected to be realized, either by elimina-
tion in tax on future earnings or by set-off against
deferred tax liabilities within the same legal tax entity.
Deferred tax is measured based on the tax rules and
tax rates that will be effective under the legislation at
the balance sheet date when the deferred tax is
expected to crystallize as current tax. Any changes in
deferred tax due to changes to tax rates are
recognized in the income statement or in equity if the
deferred tax relates to items recognized in equity.
Current tax receivables and liabilities
Current tax liabilities and receivables are recognized in
the balance sheet as the expected taxable income for
the year adjusted for tax on taxable incomes for prior
years and tax paid on account. Extra payments and
repayment under the on-account taxation scheme are
recognized in the income statement in financial income
and expenses.
Financial debts
Loans, such as loans from credit institutions, are
recognized initially at the proceeds received in net of
transaction expenses incurred. Subsequently, the
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21. Accounting policies
(continued)
§ Accounting policy (continued)
loans are measured at amortized cost; the
difference between the proceeds and the
nominal value is recognized as an interest
expense in the income statement over the loan
period.
Mortgage loans are measured at amortized cost,
which for cash loans corresponds to the
remaining loan. Amortized cost of debenture
loans corresponds to the remaining loan
calculated as the underlying cash value of the
loan at the date of raising the loan adjusted for
depreciation of the price adjustment of the loan
made over the term of the loan at the date of
raising the loan.
Other debts are measured at amortized cost,
substantially corresponding to nominal value.
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Statements
07
“In our supercharged, switched-on, modern-day working environ-
ment, it’s important to make sure we’re taking every step to look
after one another. This is not about ticking the boxes. It’s about
making sure we are a lean and healthy organization where people
are able to give their best.”
Lærke Ullerup, Chief Product & Marketing Officer at Trackunit
89
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CVR No 33 77 12 31
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Trackunit ApS
CVR No 20 75 01 70
Gasværksvej 24, 4.
9000 Aalborg