Annual Report
2024
Brødrene A & O Johansen A/S
Rørvang 3, DK-2620 Albertslund, Denmark
CVR no. 58 21 06 17
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The customer
is at the centre of
everything that
we do at AO and
has been at the
core ever since we
were founded
Tradesmen
B2B
Construction
B2B
AO
employee
Consumers
B2C
Business
model
AO's omni-channel business model secures a
coherent customer experience for all customers
across touchpoints.
AO works with more than 1,000 suppliers and is continuously expanding our
range of products to target more customers and suppor t one-stop-shopping.
The automated central warehouse in Albertslund and the logistics centre in
Horsens are corner stones in AO. 90% of all products are picked automatically,
thus ensuring both high ser vice quality and efficiency.
AO's product range and service are promoted across a number of different sales
channels that support the individual customer's preference.
AO is providing the best of two worlds via value-added digital ser vices and close
customer relations through our local stores.
Moder n wholesaling is a matter of offering the right products at the right prices
and making customers’ lives as simple and as flexible as possible. The AO365
concept is one such example. With AO365, customers hold a digital key to all AO
stores, - securing both convenience and flexibility for the individual customer.
AO's employees are a key ressource in ensuring that the business model works.
The knowledge and experience with the team is a significant value-add for the
entire value chain.
1.
Suppliers
More than 1,000 suppliers
provide the widest product
range in the wholesale
business
3.
Sales
channels
Omnichannel business
with 54 physical stores
in Denmark and sixe in
Sweden enabling 9,000
daily customer interactions.
Digital share of sales makes
up 53% of revenue. B2C
customers are served out
of more than 20 unique
webshops
2.
Central
warehouse
Automated warehouse
solution ready to serve
growth. 600,000 SKUs
available for sale
4.
Services
As a true omnichannel
business AO offers a
wide range of ser vices
from selfservice through
AO365 to advanced
project advice via our
compentency centres
In brief Performance Corporate governance Sustainability statements
Strateg y
Financial statementsAnnual Report 2024
13
Contents
In brief
4 Our purpose
5 At a glance
6 Performance highlights
7 ESG highlights
8 Letter from the CEO
9 Highlights of the year
10 Five year summary
11 Outlook for 2025
Strategy
13 Business model
14 Industry and market trends
15 Corporate strategy
17 Strategic ambitions
Follow us
→
Business model
13
Sustainability Statements
40
Performance
19 Financial results
21 Q4 financials
22 B2B performance
23 B2C performance
Corporate governance
25 Risk management
29 Corporate governance
31 Board of Directors
36 Executive Board
37 Shareholder information
Sustainability statements
41 Executive Summary
49 General
63 Environment
85 Social
100 Governance
108 Appendix
Financial statements
118 Consolidated financial
statements
170 Parent company financial
statements
Statements
201 Management’s statement
202 Independent auditor’s report
206 Independent auditor’s limited
assurance report on the
Sustainability Statement
Company information
209 Company information
Management's review Financial statements
Performance Corporate governance Sustainability statementsStrategy Financial statementsIn briefAnnual Report 2024
In brief
4 Our purpose
5 At a glance
6 Performance highlights
7 ESG highlights
8 Letter from the CEO
9 Highlights of the year
10 Five year summary
11 Outlook for 2025
Annual Report 2024
Our purpose
AO was founded in 1914 with the purpose of creating value for our
customers. The purpose is at least as relevant now as it was 110
years ago.
In AO, we lend a hand. We are determined to contribute to making
our customers' lives easier. No matter the market conditions or the
current mega trends, walking an extra mile for the customer will
always be the AO way. AO is proud to be part of the customer team!
In brief
Performance Corporate governance Sustainability statementsStrategy Financial statements
Annual Report 2024
B2B
85.2%
Serving the construction
industry and professional
tradesmen
B2B
80.4%
Serving the construction
industry and professional
tradesmen
B2C
14.8%
Serving private DIY
consumers
B2C
19.6%
Serving private DIY
consumers
2024
Q4
At a glance
DK East
30
DK West
25
Sweden
6
Our long-term ambitions
Beat the market by
2%
year by year
EBITDA margin of
10%
8,800
daily customer interactions in our stores
Denmark 10
Norway 5
Sweden 4
Germany 2
Europe 2
Stores
Solvency
40%+
and capital structure
(gearing 1.0 - 2.5)
Segments
23 B2C Webshops
In brief
Performance Corporate governance Sustainability statementsStrategy Financial statements
Annual Report 2024
4,098 946
328618
2020 2020
20202020
4,800 1,119
417702
2021 2021
20212021
5,375 1,310
492819
2022 2022
20222022
5,261 1,234
405829
2023 2023
20232023
5,429 1,266
366900
2024 2024
20242024
5.5
8.0%
23.1%
15.1%
6.1
8.7%
23.3%
14.6%
6.0
9.1%
24.4%
15.2%
5.8
7.7 %
23.5%
15.8%
5.6
6.7%
23.3%
16.6%
Performance highlights
Revenue
(MDKK)
Gross profit
(MDKK)
EBITDA
(MDKK)
Cost of doing
business (MDKK)
Gross proft
Gross profit margin
EBITDA
Margin
Cost of doing business
Cost of doing business ratio
Net revenue
Revenue per employee
In brief
Performance Corporate governance Sustainability statementsStrategy Financial statements
Annual Report 2024
Scope 3 results
overview*
t CO
2
e
17%
Asia
1%
Other countries
82%
of our purchases
originates from Europe
72%
Cat 11 - Use of Sold
Products
24%
Cat 1 - Purchased
G&S
2%
Cat 4 - Upstream
transportation
2%
Other categories
2025
Target
-50%
2020
Baseline
1,835
tonnes CO
2
1,794
tonnes CO
2
1,692
tonnes CO
2
1,563
tonnes CO
2
965
tonnes CO
2
2021 2022 2023 2024
918
tonnes CO
2
A restatement has been made in the numbers for the periods 2020-2023 since scope 3-emissions related to the scope 1 & 2 was
included by mistake. The updated numbers for each year, only including scope 1 & 2, is found in the figure.
■ Fuel for company vehicles ■ Fuel for forklifts ■ Gas for heating ■ Electricity ■ District Heating ■ Electricity for company vehicles
ESG highlights
The carbon emissions for scope 1 and 2 for
AO Denmark activities:
Scope 3 distribution on group level mapped for 2024:
Use of sold products is the main contributor to our scope3 emissions
Purchasing patterns:
In brief
Performance Corporate governance Sustainability statementsStrategy Financial statements
Annual Report 2024
AO is undergoing a significant
transformation. Our revenues in
2025 are expected to be almost
50% higher than in 2020.
While part of this growth will
come from acquisitions, the
majority of AO's growth journey
stems from our commitment to
winning today and tomorrow, as
well as our continuous focus on
improving daily operations.
We anticipated that 2024 would be a challenging year,
and our expectations proved right. Geopolitical and
economic uncertainty hampered demand.
Lower market activity led to fierce competition. In
addition, we saw changed business dynamics with a
significant customer consolidation and even minor
projects going into price negotiations, which increased
the pressure on margins.
Given the challenging market, we are satisfied with AO
landing an EBITDA at DKK 366m (6.7%). Having said
that, 2024 earnings did not come close to our long-
term ambitions.
Even a challenging year can be well spent, and we are
satisfied with the strategic steps taken in 2024. AO has
a state-of-the-art central warehouse solution and an
omnichannel setup that enable us to focus on growth.
In 2024 we took important, strategic steps to grow our
business.
Letter from the CEO
Navigating challenges through
strategic initiatives
We acquired Workwear Group, which will strengthen
our sales of workwear both within B2C and B2B. We
acquired Svenska VA-Grossisten, which gave us a stra-
tegic foothold in the Stockholm area, and through the
acquisition of Designkupp located near Oslo we tripled
our B2C sales in Norway.
Ever since our establishment in 1914, we have been
lending a hand to our customers, and we will continue
to do so in 2025.
It has probably never been more important than now
to lend a hand – especially to mid- and small-sized
installers. New regulatory and green transition makes
it more complicated than ever to stay competitive as a
small installer.
A successful wholesale company cannot stay competi-
tive without offering a range of digital services and solu-
tions to its customers. We are happy to see that our work
with a digital agenda for more than a decade has formed
an organisation that welcomes new technologies.
AO also welcomes the increased focus on ESG, and you
will find that the number of pages in this Annual Report
has increased significantly compared to last year. The
many pages of ESG/CSRD reporting may be difficult to
digest, but it is very important for us to describe how AO
operates regarding ESG.
We expect 2025 to show modest organic growth. This –
combined with the growth from the companies acquired
in 2024 – leads us to expect a revenue growth of 7-12%
in 2025 and an EBITDA of DKK 410-450m.
Finally, I personally would like to welcome our new
colleagues into the AO family and to thank all AO
employees for their loyalty, dedication and hard
work in 2024.
Best regards
Niels A. Johansen, CEO
Niels A. Johansen CEO
In brief
Performance Corporate governance Sustainability statementsStrategy Financial statements
Annual Report 2024
Highlights of the year
The lowered demand in the
second half of 2023 continued
in the first half of 2024. During
the second half of 2024 demand
increased gradually as expected.
Fierce competition continued to
put pressure on margins. AO took
strategic steps to prepare for
the future and continued to gain
market shares in a competitive
market.
At the beginning of 2024, AO acquired 8,800 m
2
of land and 4,000 m
2
of warehouse capacity in
Albertslund. In 2025, the buildings at the site
will be converted into a partly automated ware-
house of 70,000 m
2
to achieve future growth and
efficiency.
New and refurbished flagship stores opened in
Esbjerg, Odense and Hillerød. In 2024, a range
of EA articles was introduced into these flagship
stores as well as six other stores.Customer visits
increased by 10%.
Three acquisitions were completed in 2024, each
with strategic importance for the future growth.
A strategic foothold was established in the
Stockholm area, the business in Norway tripled,
and in Denmark AO became market leader in B2C
sales of workwear.
AO continued to gain market shares in 2024 and
is in a good position to continue doing so in the
future.
AO continued to reduce its scope 1 and 2 CO
2
emissions. Compared to 2020, AO Denmark
reduced its scope 1 and 2 CO emissions by
47% and is well underway to reach its target of
reducing these emissions by 50% by 2025.
The share of digital sales continued to increase.
The digital share of B2B sales increased to 46%,
and on group basis, a record high 53% of all
sales were digital.
Strategic steps
preparing for the future
In brief
Performance Corporate governance Sustainability statementsStrategy Financial statements
Annual Report 2024
Five year summary
(mDKK) 2024 2023 2022 2021 2020
Key figures
Revenue 5,429.3 5,261.0 5,375.0 4,800.5 4,098.3
Gross margin 1,266.3 1,234.3 1,310.3 1,119.3 945.7
Earnings before interest, taxes, depreciation and
amortisation (EBITDA) 366.0 405.3 491.6 417.2 328.2
Operating profit or loss (EBIT) 246.1 292.2 383.6 316.7 223.8
Financial income and expenses, net (36.0) (30.4) (6.1) 9.4 (3.0)
Profit or loss before tax (EBT) 210.1 261.8 377.4 326.1 220.8
Tax on profit or loss for the year (46.7) (55.7) (83.0) (72.3) (47. 9)
Net profit or loss for the year 163.4 206.1 294.5 253.8 172.9
Non-current assets 2,231.1 1,805.9 1,727.3 1,472.7 1,320.0
Current assets 1,556.3 1,436.5 1,591.0 1,235.9 1,063.2
Total assets 3,787.4 3,242.4 3,318.3 2,708.5 2,383.2
Share capital 28.0 28.0 28.0 28.0 28.0
Equity 1,536.3 1,475.3 1,4 07.5 1,239.9 1,030.2
Non-current liabilities 831.6 535.2 539.5 295.9 330.6
Current liabilities 1,419.5 1,231.9 1,371.4 1,172.7 1,022.4
Cash flow from operating activities 199.2 346.4 215.8 308.1 375.4
Cash flow from investing activities (465.4) (130.2) (333.3) (212.7) (66.3)
Of which investments in property, plant and
equipment, net (116.2) (94.8) (164.5) (170.5) (37. 3)
Cash flow from financing activities 232.1 (161.7) 15.5 (91.6) (256.2)
Cash flow for the year (34.1) 54.5 (102.0) 3.7 52.8
2024 2023 2022 2021 2020
Financial ratios
Gross profit margin 23.3% 23.5% 24.4% 23.3% 23.1%
EBITDA margin 6.7% 7.7% 9.1% 8.7% 8.0%
Profit margin 4.5% 5.6% 7.1% 6.6% 5.5%
Return on capital employed 7.0% 8.9% 12.7% 12.4% 9.5%
Return on equity 10.9% 14.3% 22.2% 22.4% 18.2%
Net gearing 2.7 1.3 1.1 0.5 0.8
Solvency ratio 40.6% 45.5% 42.4% 45.8% 43.2%
Book value* 54.9 52.7 50.3 44.3 36.8
Share price at the end of the year** 78.6 70.3 83.1 136.0 60.4
Price Earnings Basic (P/E Basic) 13.1 9.3 7.7 14.6 9.4
Dividend per DKK 1 share ** 3.0 3.75 5.25 4.5 1.5
Earnings per share (EPS Basic), DKK ** 6.0 7.6 10.8 9.3 6.4
Diluted earnings per share (EPS-D), DKK ** 6.0 7.6 10.8 9.3 6.4
Number of employees (FTE average) 968 912 889 784 741
Number of employees excluding temporary
workers (FTE average) 899 841 822 705 678
Number of employees at year-end (FTE) 981 833 850 734 686
Basic EPS and diluted EPS have been calculated in accordance with IAS 33. Other financial ratios have been prepared in accordance with the CFA
Society Denmark's 'Recommendations and Financial Ratios'. See definition of key figures on page 168
* Financial ratios for the respective periods have been restated retroactively for the share split.
** Comparative figures related to shares have been restated to reflect share split in 2022.
In brief
Performance Corporate governance Sustainability statementsStrategy Financial statements
Annual Report 2024

Outlook for 2025
Sensitivity to the outlook for 2025:
Geopolitical and macroeconomic tensions bring higher uncertainty to estimates than normally.
Continued change in the geopolitical and macroeconomic climate, supply disruptions and devel-
opments in raw material prices and interest rates may impact outlook for 2025.
Organic growth and gross margins are sensitive to revenue mix from ReMoVe versus projects and
to price pressure driven by competition.
Follow-up on previously announced outlook for 2024
Revenue ended at DKK 5,429m. AO delivered a growth
in revenue of 3%.
It's AO's ambition to reach an annual growth which is at
least 2% higher than the market growth.
An EBITDA for the year of DKK 366m corresponding to
6.7% of net sales for the year, and profit before tax of
DKK 210m, corresponding to 3.9% of net sales of DKK
5,429m are in line with the latest outlook announced as
at 23 October 2024 of net sales of DKK 5,300 – 5,500m,
an EBITDA of DKK 340 – 370m and a profit before tax in
the range of DKK 200 – 230m.
2025 outlook
AO is in a good position to grow the business. Partly due
to the current momentum in AO and partly due to the
acquired companies in 2024.
The market activity is expected to show a moderate
growth of 2-5% in 2025.
AO momentum and the full year effect from acquired
companies is expected to bring a total growth of 7-12%.
The competition and pressure on gross profit margins
is expected to remain fierce. As house buildings and
project activities are expected to increase, and as
interest levels are expected to remain stable, it is
though expected that customer demand and wholesale
supply will gradually get more balanced.
AO will continue its investments in digital solutions,
logistics and stores. The investment level in 2025 is
expected to be approximately DKK 200m. Half of it
relates to a further investment in the central warehouse
to facilitate the longer-term growth.
Based on the above estimates and assumptions, AO
expects a revenue of DKK 5,800-6,100m, an EBITDA in
the range of DKK 410-450m, and an EBT in the range of
DKK 235-275m.
The 2025 guidance is as follows
2024
Revenue, (mDKK)
5,429
EBITDA, (mDKK)
366
EBT, (mDKK)
210
Outlook 2025
5,800 – 6,100
Growth 6.8% to 12.4%
410 – 450
EBITDA margin 7.1% to 7.4%
235 – 275
EBT margin 4.1% to 4.5%
In brief
Performance Corporate governance Sustainability statementsStrategy Financial statements
Annual Report 2024

Strategy
13 Business model
14 Industry and market trends
15 Corporate strategy
17 Strategic ambitions
Annual Report 2024

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The customer
is at the centre of
everything that
we do at AO and
has been at the
core ever since we
were founded
Tradesmen
B2B
Construction
B2B
AO
employee
Consumers
B2C
Business
model
SBM-1 AO's omni-channel business model
secures a coherent customer experience for
all customers across touchpoints.
AO works with more than 1,000 suppliers and is continuously expanding our
range of products to target more customers and support one-stop-shopping. The
automated central warehouse in Albertslund and the logistics centre in Horsens
are corner stones in AO. 90% of all products are picked automatically, thus
ensuring both high service quality and efficiency.
AO's product range and service are promoted across a number of different sales
channels that support the individual customer's preference.
AO is providing the best of two worlds via value-added digital services and close
customer relations through our local stores.
Modern wholesaling is about offering the right products at the right prices, deliv-
ering them at the right time, and making customers' lives as simple and flexible
as possible. The AO365 concept is a prime example. With AO365, customers have
a digital key to all AO stores, ensuring both convenience and flexibility for each
individual customer. AO's employees are a key resource to the success of our
business model. Their knowledge and experience bring significant value to the
entire value chain.
1.
Suppliers
More than 1,000 suppliers
provide the widest product
range in the wholesale
business
3.
Sales
channels
Omnichannel business
with 55 physical stores
in Denmark and six in
Sweden enabling 8,800
daily customer interactions.
Digital share of sales makes
up 53% of revenue. B2C
customers are served out
of more than 20 unique
webshops
2.
Central
warehouse
Automated warehouse
solution ready to serve
growth. 600,000 SKUs
available for sale
4.
Services
As a true omnichannel
business AO offers a
wide range of services
from selfservice through
AO365 to advanced
project advice via our
competency centres
In brief Performance Corporate governance Sustainability statements
Strategy
Financial statements

Annual Report 2024
Industry and
market trends
AO's strategy is shaped by the prevailing
megatrends that exert influence on the current
market landscape. These trends present both
challenges and significant opportunities for
AO's business development.
The dominant themes within these market trends
revolve around the green transition, climate changes,
and the escalating pace of digitalisation.
These trends have been categorised into five
megatrends that steer our strategic focus areas.
Green transition
The green transition megatrend symbolises a
global shift toward sustainability and eco-con-
scious practices across industries. It encom-
passes CO
2
reductions, renewable energy
adoption, resource efficiency, and circular
economy principles. Consumers increasingly
support certified products and services due to
environmental certified construction projects
and legislative requirements, driving market
demand. The recent years have shown that
energy prices are a major driver behind green
transition demand.
AO has a wide range of products that directly
service the green transition. In addition, AO
aims to be the wholesale company with the
best and most accurate data on the environ-
mental impact of our products enabling our
customers to make informed choices in their
purchases.
Digitalisation & AI
AI amplifies and transforms digitalisation in
multiple ways by making digital systems more
intelligent, adaptive, and efficient. AI provides
great opportunities for efficiency gains and
utilises complex and large datasets to develop
new and more personalised services. AO has
been at the forefront of digitalisation and will
continue to be so regarding AI. Providing our
customers with tailored user experience, accu-
rate data on the products – including ESG data
is a key point in being the best partner for our
customers.
Consolidation
Installers are increasingly joining forces either
by mergers or by joining purchasing organisa-
tions. The consolidation is happening within
and across installer segments. Larger groups
of installers seek to use their purchasing power
to get better terms as well as their larger flexi-
bility to serve a broader range of customers.
AO has good and long experience in working
with various purchasing organisations and is in
a good position to service these organisations
via our omni-channel offerings.
Climate change
As part of the climate change adaptation in
both Denmark and Sweden there is a need for
investments in the water infrastructure. In both
countries Sewage & Drainage as well as Water
Supply in general are due for an overhaul. There
will be more focus on storing, retaining, and
recycling rainwater, including cleaning surface
water. The recycling of rainwater after cleaning
can be used in connection with increased
biodiversity, especially in cities, where there
will be a focus on more urban trees, green
roofs and walls, and roof terraces. Storing and
retaining surface water during cloudbursts and
storm floods can prevent flooding of buildings
and equipment.
AO is in a good position to deliver into these
projects.
Electrification
The electrification agenda is a pivotal shift
toward cleaner energy sources, driving inno-
vation and sustainability. It encompasses
electrifying transportation, revolutionising
industries, and advancing renewable energy
infrastructure.
AO plays a part in the electrification agenda by
supplying electrical components, cables, EV
chargers, and solar panels.
In brief Performance Corporate governance Sustainability statements
Strategy
Financial statements

Annual Report 2024
The Group’s strategy is to serve the professional market via AO in Denmark
and Sweden and to serve the private markets in Denmark, Norway and
Sweden via our portfolio of differentiated webshops run on a common
platform.
In the professional market, It is AO’s ambition to be the preferred supplier
of technical installation materials for tradesmen and large construction
customers. As a rule of thumb, the ReMoVe market represents about 70%,
while project sales represent about 30%.
Corporate
strategy
At AO, the customer is at the heart of everything we do and
develop. We want to create value for our professional and
private customers. That’s something we aim to do every
single day, and why we say: “We lend a hand”. It builds on
AO's genuine and heartfelt interest in understanding the
present and future needs of our customers and being able
to support them.
We lend
a hand
Part of the team
AO is as much a sparring partner as a wholesaler.
And we are proud to be part of the team when the
tradesmen renovate, modernise and maintain
Denmark. It is our strategy to remain the leader
in the ReMoVe business by continuing the
development of the value creation in our omni-
channel offerings.
Towards common goals
AO's projects department creates a
secure framework for large construction
projects. We are not only focused
on the offer, but also on ensuring
that your project gets done better,
cheaper and faster. It is our strategy
to become one of the best partners to
construction customers, by developing
new digital support services.
It pays to start in
the right place
AO has the industry's most complete B2C offer
within simple home improvements and DIY. We
are close to the customers with all the inspi-
ration, advice and service they need. It is our
strategy to remain the online leader in DIY, by
continuing to offer new product ranges and solu-
tions, and thus making DIY easier.
Actively contributing to
a sustainable world
AO wants to be the leading green wholesaler
to the construction industry and make
it easy for all installers to comply with
climate requirements, and to ensure
a minimal environmental impact. AO
wishes to help promote a sustainable
world by supporting and contributing
to a sustainable construction sector.
In brief Performance Corporate governance Sustainability statements
Strategy
Financial statements

Annual Report 2024
“
Our strategy is to continue to innovate and develop our omni-channel offer-
ings – a hybrid business strategy, embracing the human touch in physical
and digital touchpoints and securing efficiency, flexibility and scalability via
digitalised stores and harvesting the best of two worlds. We will continue to
expand our product range and utilise it across target groups.
We aim to increase the business in Sweden too as we see a strong potential
for organic growth.
The larger construction projects are served via our Group projects depart-
ment with competencies targeting the special needs of the construction
industry. We will increase both the digital, logistics and advisory services,
and we will make it easy to comply with the increasing sustainability needs
and requirements.
In the private DIY market, it's AO’s ambition to be the leading online trading
platform for the sale of technical home improvement materials in Denmark
and one of the leading online platforms in Sweden and Norway.
We will continue to evaluate opportunities within M&A in both B2B and B2C.
At AO, we believe that everyone has a duty to manage available resources
and opportunities in a responsible way, ensuring the best possible condi-
tions for the next generation to build on. That is why we take responsibility
through our climate goals: to reduce CO
2
by 50% by 2025 in compliance with
GHG Protocol scope 1 and 2, and to make AO scope 1 & 2 carbon neutral by
2030.
At AO, the customer is at
the heart of everything
we do and develop. We
want to create value for
our professional and
private customers. That's
something we aim to do
every single day, and why
we say: "We lend a hand".
In brief Performance Corporate governance Sustainability statements
Strategy
Financial statements

Annual Report 2024
Strategic ambitions
Profitable growth
· It is a strategic priority for AO to maintain and expand the industry's best
B2B opportunities and the market's best B2C opportunities.
· The pressure on profit margins is estimated to remain high in the future,
but AO will pursue a profitable growth via an ambitious and data-driven
purchasing and pricing strategy.
· AO has the widest installer coverage with increasing cross-sell across
product categories. New growth opportunities await in new business
segments and in AO Sweden.
· AO´s omni-channel strategy secures both digital efficiency and close
customer relations
· It´s AO´s ambition to beat the market with a minimum of 2% each year via
organic and acquisitive growth
High efficiency
· It is AO’s ambition to continue to optimise internal and external
processes, so that we use our skills for the complex tasks that make a
difference for our customers and automate simple manual tasks.
· AI has been heralded as the most important technology of our time.
We believe in a proactive approach to the use of artificial intelligence
across AO.
· AO has made substantial investments in optimising efficiency and
increasing capacity at the central warehouse in Albertslund and the
Logistics Centre West in Horsens. We will continue to exploit these
synergies.
· It's our ambition to have the highest efficiency in the market and to
reach an EBITDA margin of 10%.
Solid foundation
· AO must attract and retain the industry's best employees with high agility,
professionalism and well-being.
· At AO, we have the best team in the industry. An organisation rounded out by
AO's culture and with the industry's most loyal and experienced employees.
The most important thing for AO's future competitiveness is the employees.
· IT plays a decisive role in AO's transformational power. It is crucial that AO has
an IT landscape that is agile, scalable and future-proof, so that we can use as
many resources as possible on development rather than operation.
· AO has a strong balance sheet and a robust capital structure, enabling AO
to resist headwind and to seize opportunities. AO has a gearing target of an
interest-bearing debt in the range 1.0-2.5 times EBITDA.
In brief Performance Corporate governance Sustainability statements
Strategy
Financial statements

Annual Report 2024
19 Financial results
21 Q4 financials
22 B2B performance
23 B2C performance
Performance
Annual Report 2024

Financial results
Financial results
Growth for the year driven
by organic development and
strategic acquisitions
Revenue
Organic revenue development was -1.0% (-3.3%) and
revenue for 2024 was DKK 5,429m (DKK 5,261m) in line
with latest outlook from the Q3 report. On an organic
level revenue, development improved over the year with
organic growth of 3.0% in the second half of the year.
Gross profit
Gross profit ended at DKK 1,266m (DKK 1,234m) corre-
sponding to a gross profit margin of 23.3% (23.5%).
Included in gross profit is a one-time gain of DKK 14m
related to the sale of real estate. Gross profit has been
impacted negatively by price pressure and an unfavour-
able product mix. Acquired businesses and a higher
proportion of B2C sales have had positive impact on the
gross profit margin.
External costs and staff costs
In total, external operating costs and staff costs made
up 16.6% of revenue (15.8%). Cost of doing business
has increased due to cost and salary inflation as well
as increased administrative burdens increasing FTEs. A
shift towards lower average revenue per sale transac-
tion has increased the cost of doing business mea-
sured in relation to revenue. Additionally, the acquired
business carries an underlying higher rate of costs
measured in percentage of revenue.
In 2024 we achieved an EBITDA of DKK 366m (DKK
405m) in line with guidance. Organic growth was
-1.0% (-3.3%) and gross profit margin ended at 23.3%
(23.5%). Revenue development and earnings improved
over the year.
In brief
Performance
Corporate governance Sustainability statementsStrategy Financial statements

Annual Report 2024
Year end FTEs were 981 (833). Organic increase in FTEs
was 42 while acquired businesses contribute 106 new
FTEs.
EBITDA
EBITDA ended at DKK 366m (DKK 405m), corresponding
to an EBITDA margin of 6.7% (7.7%). Margins were under
pressure from cost inflation and lower basket sizes.
EBITDA margins have increased in the B2C business
where a new scale has been reached after the acqui-
sitions during 2024. The results of the segments are
presented in the following pages.
Financials
Net financials amounted to DKK -36m (DKK -30m).
Interest rates came down during 2024, and the average
debt level increased compared to last year.
Earnings before tax (EBT)
EBT ended at DKK 210m (DKK 262m).
Income tax
Income tax amounted to DKK -47m (DKK -56m), corre-
sponding to an effective tax rate of 22.2% (21.3%).
Earnings after tax (EAT)
EAT ended at DKK 163m (DKK 206m).
Equity
At the end of the year equity amounted to DKK 1,536m
(DKK 1,475m). Thus, the solvency ratio at year-end was
40.6% (45.5%) and the target of maintaining a solvency
of 40%+ was achieved.
Cash flows
Average net working capital for the year was 6.3%
(5.8%) of revenue. Net working capital at the end of the
year was 7.1% (5.6%) of revenue.
Cash flow from operating activities totalled DKK 199m
(DKK 346m).
Change in receivables was DKK -65m (DKK +85m) driven
by the Q4 activity as well as timing of payments.
Change in inventories contributed with a cash flow of
DKK -2m (DKK +100m).
Change in trade payables contributed with a cash flow
of DKK -12m (DKK -191m)
Cash flow from investing activities totalled DKK -465m
(DKK -130m) impacted by the acquisitions of Svenska
VA-Grossisten, Designkupp and Workwear Group.
Cash flow from financing activities was DKK +232m
(DKK -162m) reflecting a high level of dividend payouts
as well as new loan facilities in relation to the acquisi-
tions.
Net interest bearing debt amounted to DKK 993m (DKK
522m) at year end after a year with three acquisitions.
Financial gearing was 2.7 times EBITDA (1.3 times). AO
has a target gearing between 1.0 and 2.5 times EBITDA.
In brief
Performance
Corporate governance Sustainability statementsStrategy Financial statements

Annual Report 2024
Q4 financials
After a slow start, the 2024 the market gradually improved
over the year. On an organic level the growth in Q4 was 4.1%,
and including acquisitions the growth was 13.9%. Number of
customer visits in AO’s store network was at record high levels
underlining the importance of local presence.
Revenue
Organic revenue development was +4.1% (-7.8%) with
additional growth from acquisitions. Q4 Revenue was
DKK 1,550m (DKK 1,361m) marking the first quarter with
a quarterly revenue of more than DKK 1,500m.
Gross profit
Gross profit of DKK 374m (DKK 318m) corresponds to a
profit margin of 24.1% (23.4%). Due to acquisitions the
quarter showed a positive segment mix on the gross
profit margin of 0.6%.
External expenses and staff costs
Driven by acquisitions external expenses and staff cost
in Q4 increased to DKK 251m (DKK 223m) corresponding
to a cost of doing business ratio of 16.2% (16.4%). On
an organic level the cost of doing business ratio was
reduced to 15.7% (16.4%).
EBITDA
EBITDA ended at DKK 123m (DKK 95m), corresponding
to an EBITDA margin of 7.9% (7.0%). In Q4 margins
improved but are still under pressure.
Earnings before tax (EBT)
EBT of the quarter ended at DKK 80m (DKK 58m).
MDKK Q4 2024 Q4 2023
Revenue 1,550.4 1,361.4
Cost of sales (1,176.8) (1,043.6)
Gross profit 373.6 317.8
Other operating income 0.4 0.4
Gross margin 374.0 318.2
External expenses (92.2) (90.1)
Staff costs (158.7) (132.7)
Earnings before interest, taxes, depreciation and amortisation (EBITDA) 123.1 95.4
Depreciation and amortisation (32.5) (29.6)
Operating profit or loss (EBIT) 90.6 65.8
Financial income 5.4 0.7
Financial expenses (16.0) (8.6)
Profit or loss before tax (EBT) 80.0 57.9
Tax on profit or loss for the year (18.5) (11.5)
Net profit or loss for the year 61.5 46.4
In brief
Performance
Corporate governance Sustainability statementsStrategy Financial statements

Annual Report 2024
B2B performance
B2B
The B2B business services the professional tradesmen as well as
large construction companies out of our omni-channel business
model. In Denmark, AO is the wholesaler with the broadest product
range serving more trades than our competitors. The B2B segment
has roughly 70% of its revenue within repair and maintenance and
30% within projects. In the B2B segment AO has continued to gain
market shares on an organic level in 2024 and in Q4.
Growth for the year and Q4 was positively affected
by the acquisition of Svenska VA-Grossisten.
Revenue
Segment revenue was DKK 4,623m (DKK 4,659m) for
the year and DKK 1,246m (DKK 1,173m) for the quarter.
Revenue development has improved over the year
ending in organic growth of 4.6% in Q4.
Gross profit
Gross profit of DKK 1,012m (DKK 1,070m) corresponds
to a profit margin of 21.9% (23.0%) for the year due to
margin pressure. Gross profit margin recovered partly in
Q4 and ended at 22.2% (22.7%).
Direct expenses
Cost inflation as well as new hires have contributed
to an increase in direct expenses which ended at DKK
508m (DKK 486m).
EBITDA
Segment EBITDA ended at DKK 507m (DKK 585m).
Distribution of sales channels
MDKK 2024 2023 Q4 2024 Q4 2023
Revenue 4,623.5 4,658.6 1,246.3 1,173.0
Cost of goods sold (3,438.7) ( 3,427.4) (927.0) (864.9)
Product margin 1,184.8 1,231.1 319.3 308.0
Distribution (173.0) (160.7) (42.9) (41.5)
Gross profit 1,011.8 1,070.4 276.4 266.5
Direct expenses (504.7) (485.9) (128.2) (122.4)
EBITDA before indirect expenses 507.1 584.5 148.2 144.1
Key figures
Gross margin % 21.9% 23.0% 22.2% 22.7%
EBITDA % 11.0% 12.5% 11.9% 12.3%
Physical
54%
Digital
46%
In brief
Performance
Corporate governance Sustainability statementsStrategy Financial statements

Annual Report 2024
B2C performance
B2C
AO is the market leader within online DIY sales in Denmark. With
the acquisitions during the year AO has become the leading player
within online DIY bathroom sales in Norway and within workwear
in Denmark. The addition of the two new B2C companies has
increased the number of websites significantly and B2C made up
almost 20% of Group revenue in Q4.
Revenue
Segment revenue was DKK 805m (DKK 603m) for the
year and DKK 304m (DKK 189m) for the quarter. On an
organic level, the B2C segment recorded growth in all
quarters of 2024 despite record-breaking sales during
'Black Week' in 2023.
Gross profit
Gross profit of DKK 240m (DKK 164m) corresponds to a
profit margin of 29.8% (27.2%). The acquired companies
bring higher gross profit margins than the organic busi-
ness. On an organic level, margins increased slightly.
Direct expenses
In 2024, direct expenses increased to DKK 168m (DKK
133m), but driven by the higher activity, the ratio of cost
of doing business decreased to 20.9% (22.1%).
EBITDA
Segment EBITDA ended at DKK 72m (DKK 31m) for the
year. New top line scale to the B2C business improved
the earnings. Segment EBITDA margin grew to 12.1%
(6.1%) in Q4.
Number of households serviced
MDKK 2024 2023 Q4 2024 Q4 2023
Revenue 805.8 602.5 304.1 188.5
Cost of goods sold (504.7) (387.8) (182.7) (119.9)
Product margin 301.1 214.6 121.4 68.5
Distribution (60.8) (50.7) (23.6) (16.7)
Gross profit 240.3 163.9 97.8 51.8
Direct expenses (168.1) (133.2) (61.1) (40.3)
EBITDA before indirect expenses 72.2 30.7 36.7 11.5
Key figures
Gross margin % 29.8% 27.2 % 32.2% 27.5%
EBITDA % 9.0% 5.1% 12.1% 6.1%
448,1702023
460,7002024
In brief
Performance
Corporate governance Sustainability statementsStrategy Financial statements

Annual Report 2024
Corporate governance
25 Risk management
29 Corporate governance
31 Board of Directors
36 Executive Board
37 Shareholder information
Annual Report 2024

Risk management
The identification and management of
business risks form part of the annual
strategic plan for the Group, which is
approved by the Board of Directors.
The Executive Board and the Board of
Directors also establish the framework for
determination of credit risk, currency risk,
interest rate risk and liquidity risk.
Risk management is an integral part of the business management at AO.
We prioritise having the necessary competencies within the business areas
in which we operate. A yearly reassessment of risks and methods for risk
identification and management is conducted. To define risk appetite and
assess risks, risks are mapped in a classical risk model based on probability
(frequency) and financial impact.
Risk identification
The focus of the risk management process is to identify and evaluate opera-
tional and strategic risks for AO in the short, medium, and long term. These
risks are defined as events or developments that have a significant negative
impact on AO's ability to:
· achieve profit goals
· execute on the strategy
· maintain a 'license to operate'.
Both gross risks (inherent risk) and net risks (residual risk) are considered.
Gross risks are defined as the product of the consequence and probability
of a risk, assuming that no risk mitigation measures are in place. Net risks
are the product of the remaining risk after risk-reducing measures. Net risks
should align with AO's risk appetite.
Risk assessment
The significance of risks is assessed as a combination of the probability of
the risk materialising and the consequences if it does. The probability is
evaluated based on the frequency with which AO expects the risk to occur,
while the consequences are assessed on various parameters:
· impact on results (direct or indirect financial effect)
· impact on reputation
· compliance (license to operate, including personal safety).
Risk Management
The purpose of identifying, assessing, and subsequently managing risks is
to reduce net risk to an acceptable level in accordance with the decided level
of risk appetite. In the risk management system, we employ four strategies
to handle risks:
· avoid – cease or make changes to activities that pose risks.
· transfer – shift risk to a third party.
· mitigate – seek to minimise identified risks to an acceptable level.
· accept – monitor risk and create contingency plans if the risk occurs.
Dynamic risk adaption
Mitigation
Devise and
implement stra
tegies to reduce
the impact of
risks.
Reporting
Communication
of identified
risks and results
from analysis to
stakeholders.
Analysis
Evaluation of risk
nature, proba-
bility, and impact
across various
business aspects.
Identification
Systematic
recognition of
potential risks
within AO's
operations.
Ongoing key risk reassessment Tracking
In brief Performance
Corporate governance
Sustainability statementsStrategy Financial statements

Annual Report 2024
A
B
C
D
E
F
G
H
Probability of occurence
Severity of Impact
Low High
High
Net risks
Changes to previously
identified risks
The risk of 'New entrants in the market' has been
expanded to a broader risk of "Market and competition
dynamics".
The people risk related to the inability to attract or
retain key employees is no longer identified as a top
risk for AO.
Management and HR initiatives have reduced
the risk and AO is able to attract key talent in the market.
A
Market and competition dynamics
B
Geopolitical and macroeconomic uncertainty
C
Credit Management
D
Global supply chain
E
Environmental & products master data
F
IT risks
G
Cyberattack
H
Dependency on service providers
Risk map
In brief Performance
Corporate governance
Sustainability statementsStrategy Financial statements

Annual Report 2024
A
Market and competition
dynamics
B
Geopolitical and
macroeconomic uncertainty
C
Credit
Management
D
Global supply chain
Description
Risk of new competitors entering into or expanding
in the Danish market. Continued and accelerating
consolidation amongst customer groups.
New risk
Risk of market decline due to geopolitical or macro-
economic uncertainties.
The risk is unchanged
Risk of losses associated with extending credit to
customers.
The risk is unchanged
Risk of product unavailability due to supply chain
uncertainties.
Impact assessment has been reduced
Impact
The risk of increased consolidation in the Danish
market creating stronger competitors and customers
with higher bargaining power could mean that AO
loses competitive advantages and is unable to meet
the goal of gaining market share or maintaining profit
margins.
Probability:
High
Impact:
High
Geopolitical uncertainties can lead to macroe-
conomic downturns involving inflation, rising
interest rates, increasing energy costs, etc. This
could impact the construction industry overall and
decrease market demand.
Probability:
High
Impact:
Medium
Customer credits are an established part of the
wholesale industry, and the majority of the group's
sales are conducted on credit. The risk increases
during downturns in the construction industry,
where the likelihood of sudden bankruptcies
among the customer base rises.
Probability:
Medium
Impact:
Medium
In the event that AO cannot supply the products
customers need, there is a risk of losing customers
to competitors, ultimately affecting revenue and
earnings.
Probability:
High
Impact:
Medium
Risk response
Mitigation
To minimise the potential impact, AO aims to continue
making it as easy and transparent as possible for
customers to trade with AO. Emphasis on streamlining
the supply chain and overhead costs is intended to
ensure that AO can remain competitive in terms of
pricing, even compared to larger competitors.
Acceptance
AO acknowledges that the risk cannot be entirely
avoided and actively monitors the actions of existing
and potential new competitors.
Acceptance
AO acknowledges that the risk cannot be entirely
avoided and actively works to monitor market
developments. In budgets and forecasts, AO estab-
lishes the foundation for business initiatives. AO
aims to have a scalable business with lower over-
head costs than competitors, which can mitigate
the impact.
Mitigation
AO has established a credit policy and continu-
ously monitors customers' outstanding balances.
Accounts with overdue balances are closed,
reducing the risk of further losses.
Transfer
AO insures larger customer engagements through
credit insurance, providing coverage against signif-
icant individual losses.
Acceptance
There is an acceptance of a certain level of risk in
customer credits.
Mitigation
AO collaborates closely with its key suppliers,
gaining an understanding of their supply situations.
In dialogue with the sales and procurement organ-
isation, min/max inventory levels are established,
and shortages are monitored. Where possible,
efforts are made to have alternative products and
suppliers for essential items. During crisis periods,
buffer stocks are built up to ensure AO can fulfil
customer orders.
High
Medium
In brief Performance
Corporate governance
Sustainability statementsStrategy Financial statements

Annual Report 2024
E
Environmental &
products master data
F
IT risks
G
Cyberattack
H
Dependency on
service providers
Description
Risk of not being able to adhere to regulatory and
customer driven demands for detailed data on envi-
ronmental impact of the products sold.
New risk
Risk of breakdowns in business-critical systems,
including the failure to fully leverage IT integra-
tions.
The risk is unchanged
Risk of IT breakdown due to a cyberattack.
The risk is unchanged
Risk of dicontinued service from key service
providers causing business disruptions.
New risk
Impact
Inadequate product documentation can reduce
transparency in the assortment, making it harder
for customers to assess a product's environmental
impact. This may lead to lost business opportunities
as customers' expectations are not met. Additionally,
the required data collection from suppliers can be
challenging and requires significant effort in data
registration and validation.
Probability:
Medium
Impact:
Medium
Frequent but short-term IT outages resulting in
operational losses, leading to an inability to main-
tain the desired efficiency and service level for AO's
customers. There is a risk that the lack of optimisa-
tion in operations could result in productivity loss.
Probability:
Medium
Impact:
High
Business disruption due to compromised data,
denial-of-service attacks, ransomware, etc. are
among the consequences of a cyberattack. The
duration of such a business disruption can be
lenghty and have significant impact on AO's
ability to conduct business.
Probability:
High
Impact:
Medium
Sudden discontinued service from key service
providers could disrupt AO's ability to deliver
goods timely or negatively impact the efficiency
of the logistics. A lack of ability to live up to AO's
commitments towards customers could result in
loss of business affecting revenue and earnings.
Probability:
Medium
Impact:
High
Risk response
Mitigation
AO works primarily with major suppliers and a profes-
sionel collaboration is established in order to get high
quality product documentation. Every effort is being
made to get EPDs (Environmental Product Documenta-
tion) on the products as well as information relevant
for certified construction projects such as Swan-la-
beled construction and DGNB.
AO is educating its own work force to support
customers in their efforts towards legal and regulatory
compliance. Master Data Governance plays an integral
part in ensuring availability of documentation.
Mitigation
AO collaborates closely with its key partners and
works on expanding a robust IT organisation to
support AO's activities.
Mitigation
AO has established an IT Security Council reporting
to AO's management, which provides guidelines for
AO's IT security. Business Continuity Plans are in
place to mitigate the impact.
Transfer
AO has obtained insurance coverage against
cyberattacks, thus reducing but not eliminating the
potential impact.
Mitigation
AO has a close collaboration with its key service
providers. On an ongoing basis AO coordinates
future demands for services with its suppliers in
order to ensure that needs are met. Alternative
suppliers are identified for key services.
High
Medium
In brief Performance
Corporate governance
Sustainability statementsStrategy Financial statements

Annual Report 2024
Group Management
Corporate governance
The Board of Directors/Audit Committee and the Executive Board
have overall responsibility for the Group’s internal controls and risk
management in connection with the financial reporting process,
including compliance with applicable legislation and other regulations
in relation to financial reporting.
AO has established internal control and risk manage-
ment systems to ensure that financial reporting
is carried out in accordance with IFRS and other
accounting regulations applicable to listed Danish
companies. In addition, the systems increase the
certainty that the internal and external financial
reporting provides a true and fair presentation that is
free from material misstatement.
The Audit Committee monitors the control and risk
management systems in the Group on an ongoing
basis. In this context, risks that may affect the Group’s
financial reporting process are likewise assessed on an
ongoing basis. The risk assessment is based on signifi-
cant items and other business-critical areas.
Recommendations on corporate governance
All recommendations have been analysed and consid-
ered by the Board of Directors and the Executive Board
of Brødrene A & O Johansen A/S, and the Board of Direc-
tors is of the opinion that the management of Brødrene
A & O Johansen A/S complies with the most important
recommendations in the report.
The company has opted to implement another approach
to five areas in 2024, which is two fewer than in 2023.
Two-tier governance structure
Shareholders
Board of Directiors
Audit
Committee
Normination
Committee
Excutive Board
Organisation
Remuneration
Committee
In brief Performance
Corporate governance
Sustainability statementsStrategy Financial statements

Annual Report 2024
A summary of the areas where the Group has chosen
to follow a different practice is provided below:
· Given the company’s ownership structure, the Board
reserves the right to reject takeover bids in certain
cases without submission to shareholders.
· The Chief Executive Officer is responsible for the
general management of the company while also
serving as a member of the Board.
· 3 out of 5 of the Directors elected by the Annual
General Meeting are not independent as they have
been members for more than 12 years.
· 2 out of 4 of the members of the Audit Committee are
not independent. This committee is made up solely of
members of the company’s Board of Directors, which
is why there is no requirement for independence. The
chair of the Audit Committee is independent.
Brødrene A & O Johansen A/S has prepared a full report
on corporate governance for the 2024 financial year
under Section 107b of the Danish Financial Statements
Act. This can be viewed or downloaded at:
→ Corporate Governance 2024
https://ao.dk/globalassets/download/regnskabsdata/2024/
statutory-report-on-corporate-governance-2024.pdf
In brief Performance
Corporate governance
Sustainability statementsStrategy Financial statements

Annual Report 2024
Board of Directors
GOV-1 Brødrene A & O Johansen A/S’ Board of Directors
comprises a total of eight members who have been elected to
protect the interests of the shareholders as best as possible
and to ensure an appropriate and balanced development of the
company both in the short and the long term.
The Board of Directors oversees the overall and stra-
tegic management of the company.
· Five members are elected by the General Meeting.
The holders of Class B shares have the right to elect
one Board member whereas the holders of Class A
shares elect the remaining Board members. The elec-
tion of Board members representing each individual
share class is determined by a simple majority of
votes. The Board members are elected for a period of
one year after which they may be re-elected.
· //Gov-1
In Denmark, the Company’s employees elect three
Board members according to the current provisions
of the Danish Companies Act. Staff-elected Board
members are elected for a term of four years. In addi-
tion, the Company’s employees also elect an equiva-
lent number of alternates who are elected for a similar
term.//
Staff-elected Board members have good knowledge of
the Company’s activities and contribute in a construc-
tive way to the decisions of the Board, and they have
the same rights, duties, and responsibilities as Board
members elected by the General Meeting.
The Board of Directors holds meetings 6-7 times a year.
In 2024 additional meetings were held in relation to the
three acquisitions.
Audit Committee
The purpose of the Audit Committee's work is to make
an independent assessment of whether the Company's
financial reporting, internal control, risk management
and statutory audit are appropriate in relation to the
Company's and the Group's size and complexity. In
2024, the Board member elected by the Class B share-
holders was appointed Chair of the Audit Committee.
The Audit Committee has the following tasks:
· to monitor and report on the financial reporting
process,
· to monitor and report on the sustainability reporting
proces,
· to monitor the efficiency of the Company's internal
control, internal audit, if any, and risk management
systems,
· to monitor the statutory audit of the financial state-
ments and sustainability reports,
· to monitor and review the independence of the
auditor, including reviewing and approving the
nature and extent of the external auditor's non-audit
services,
· to recommend the appointment of auditors including
sustainability auditors,
Meetings
The Audit Committee consists of four members who
are appointed from and among the Board of Directors.
The Audit Committee hold meetings 4-5 times a year. In
2024, additional meetings were held in relation to the
implementation of new sustainablity reporting.
Nomination Committee
The Board of Directors has set up a Nomination
Committee consisting of two members responsible for
performing the following preparatory tasks:
· describing the required qualifications for a given
member of the Board of Directors and the Execu-
tive Management, the estimated time required for
performing the duties of this member of the Board
of Directors and the competencies, knowledge and
experience that are or should be represented in the
two management bodies,
· on an annual basis evaluating the Board of Directors
and the Executive Management’s structure, size,
composition, and results and preparing recommen-
dations for the Board of Directors for any changes,
· in cooperation with the chairperson handling the
annual evaluation of the Board of Directors and
assessing the individual management members’
competencies, knowledge, experience, and succes-
sion as well as reporting on it to the Board of Direc-
tors,
· handling the recruitment of new members to the
Board of Directors and the Executive Management
and nominating candidates for the Board of Directors'
approval,
· ensuring that a succession plan for the Executive
Management is in place,
· supervising Executive Managements’ policy for the
engagement of executive employees, and
· supervising the preparation of a diversity policy for
the Board of Directors’ approval.
In brief Performance
Corporate governance
Sustainability statementsStrategy Financial statements

Annual Report 2024
Remuneration committee
The Remuneration Committee is made up of two
members who are appointed from among the Board of
Directors. The committee is responsible for:
· preparing a draft remuneration policy for the Board
of Directors’ approval prior to the presentation at the
general meeting,
· providing a proposal to the Board of Directors on
the remuneration of the members of the executive
management,
· providing a proposal to the Board of Directors on the
remuneration of the Board of Directors prior to the
presentation at the General Meeting,
· ensuring that the management’s actual remuneration
complies with the Company’s remuneration policy
and the evaluation of the individual member’s perfor-
mance, and
· assisting in the preparation of the annual remunera-
tion report for the Board of Directors’ approval prior
to the presentation for the General Meeting's advi-
sory vote.
Board member Board Meetings
Audit
Committee
Remuneration
Comittee
Nomination
Comittee
Henning Dyremose
 
Erik Holm  
Peter Gath  
Niels A. Johansen

Ann Fogelgren
 
René Alberg

Leif Hummel

Marlene L. Jakobsen

Meeting participation in 2024 % 96.9% 100% 100% 100%
* During the year, two Board meetings were held on short notice. In each case, the Board was represented by seven of the eight members,
and the member who could not attend was briefed and consulted beforehand.
Participation in Board meetings in 2024
Board evaluation procedure
The Board of Directors annually assess and evaluate
the competence, knowledge, and experience of the
individual members of the Board of Directors and the
Executive Management and report their findings to the
Board of Directors.
In 2024, the Board of Directors conducted an evaluation
of the Board of Directors and its individual members. As
in 2023, this year's evaluation was conducted thorugh
a questionnaire provided to each individual member of
the Board of Directors by an external service provider.
The evaluation included, effectiveness, performance,
and composition of the Board of Directors. The evalu-
ation concluded that the Board of Directors is working
well, forwarded material is of high quality, the Board
of Directors has the right competencies, and that there
is a high degree of satisfaction with the cooperation
between the Board of Directors and Executive Manage-
ment.
Proposals for the Annual General Meeting
The Annual General Meeting will be held completely
electronically at 1 p.m. on March 21 2025.
1. Allocation of profits
The net profit for the year amounts to DKK 163.4m. The
Board of Directors proposes to distribute a dividend of
DKK 3.0 per DKK 1 share, corresponding to around 50%
of the profit after tax for the year and 300% of the share
capital.
2. Approval of remuneration policy
The Board of Directors proposes that the Annual
General Meeting approves the amended remuneration
policy adopted by the Board of Directors. The full text
of the revised remuneration policy is attached to the
notice to attend the Annual General Meeting.
3. Authorisation to acquire own shares
The Board of Directors proposes that it be authorised
by the General Meeting during the period until 1 May
2026 to let the Company acquire own shares equiva-
lent to a total of 10% of the Company’s share capital
at the time of being granted authorisation, provided
that the Company’s total holding of own shares at no
point exceeds 10% of the Company’s share capital. The
consideration must not deviate by more than 10% from
the official price quoted at Nasdaq Copenhagen at the
time of acquisition.
4. Authorisation of the Chair
The Board of Directors proposes that the Chair of the
Annual General Meeting (with the right of substitution)
be authorised to register the resolutions passed by
the Annual General Meeting with the Danish Business
Authority and to make such alterations as the Danish
Business Authority may require for registration or
approval.
In brief Performance
Corporate governance
Sustainability statementsStrategy Financial statements

Annual Report 2024
Members of the Board of Directors
GOV-1
Henning
Baunbæk Dyremose
Erik
Holm
Chair
Born: 1945
Joined: 1997, Chair since 2007
Nationality: Danish
Deputy Chair of the Audit Committee, Chair of the Remuneration and Nomination Committees
Elected by Class A shareholders
As Henning Dyremose has been a member of the Board of Directors for more than 12 years, he cannot,
according to the ‘Danish Recommendations on Corporate Governance’, be characterised as being inde-
pendent of special interests.
Deputy Chair
Born: 1960
Joined: 2009
Nationality: Danish
Member of the Audit Committee, Deputy Chair of the Remuneration and Nomination Committees
Elected by Class A shareholders
As Erik Holm has been a member of the Board of Directors for more than 12 years, he cannot, according
to the ‘Danish Recommendations on Corporate Governance’, be characterised as being independent of
special interests.
Qualifications
Broad leadership experience in business, finance and politics
Experience as managing director of a wholesale company with the same customers as Brødrene A & O
Johansen A/S
Former Minister of Finance
Qualifications
Experience as managing director of a wholesale company with the same customers as Brødrene A & O
Johansen A/S
Broad leadership experience in sales, finance, and logistics, both in Denmark and internationally
Experience of Board work in other listed companies
Managerial Posts
Chair of the Board of AO Invest A/S
CEO of Henning Dyremose ApS; HD Invest, Virum ApS; HCE Invest, Virum ApS; CD Invest, Virum ApS and
Elly Dyremose ApS
Managerial Posts
Chair of the Boards of CR EL & TEKNIK A/S, Norr11 Holding ApS, Norr11 International ApS, Hotel Kold-
ingfjord A/S
Deputy Chairman of the Boards of SP Group A/S, Arvid Nilssons Fond and AO Invest A/S
Member of the Boards of Miluda Invest ApS, Dragsholm Slot P/S, Hotelselskabet af 8. februar 2018 K/S
and Tokyo Topco Limited (Sticks 'n' Sushi)
CEO of Erik Holm Holding ApS, JU-CH Holding Aps and Lullula ApS
Share ownership
59,770 (59,770) Class B shares. No trades in AO shares in 2024.
Share ownership
0 (0) Class B shares. No trades in AO shares in 2024.
In brief Performance
Corporate governance
Sustainability statementsStrategy Financial statements

Annual Report 2024
Ann
Fogelgren
Peter
Gath
Niels
A. Johansen
Member
Born: 1974
Joined: 2023
Nationality: Swedish
Member of the Audit Committee
Elected by Class A shareholders
According to the ‘Danish Recommendations on Corporate Governance’ Ann Fogel-
gren is considered to be independent of special interests.
Member
Born: 1965
Joined: 2023
Nationality: Danish
Chair of the Audit Committee
Elected by Class B shareholders
According to the ‘Danish Recommendations on Corporate Governance’ Peter Gath
is considered to be independent of special interests.
Member
Born: 1939
Joined: 1979
Nationality: Danish
Elected by Class A shareholders
As Niels A. Johansen has been a member of the Board of Directors for more than
12 years, he cannot, according to the ‘Danish Recommendations on Corporate
Governance’, be characterised as being independent of special interests.
Qualifications
PhD in Information Systems from Copenhagen Business School in 2005
Chief Information Officer of GN Store Nord A/S
Former CIO posts at a number of large Danish companies
Former CDO
In depth knowledge of strategic IT solutions and AI technology
Qualifications
State-authorised public accountant in 1996
Cand.jur. (Master of Law) in 1991
Certified Sustainablility Auditor in 2024
Former long term Audit Partner at KPMG and EY and former Chair of FSR (The
Institute of State-Authorised Public Accountants in Denmark)
Former external auditor for Brødrene A & O Johansen A/S
Qualifications
Long-time managerial experience as CEO
In-depth knowledge of the wholesale industry of installation materials in
Denmark and the rest of Europe
Managerial Posts
Member of the Board of AO Invest A/S
Managerial Posts
Chair of the Board of FSRs Studie- & Understøttelsesfond and Fonden Johannes
Hages Hus
Member of the Board of AO Invest A/S, Milde-Fonden, Lyn Mildé A/S, Konsolidator
A/S and Board Office A/S
CFO of St. Jørgen Holding ApS and CEO of Strategia Finans ApS
Managerial Posts
Chair of the Board of Directors of Avenir Invest ApS.
Niels A. Johansen is the CEO and member of the Board of Directors of a consol-
idated company and the Chair of the Board of Directors of three consolidated
companies
Share ownership
28,270 (28,270) Class A shares and 2,810,400 (2,810,400) Class B shares. No
trades in AO shares in 2024.
Share ownership
7,000 (7,000) Class B shares. No trades in AO shares in 2024.
Share ownership
0 (0) Class B shares. No trades in AO shares in 2024.
Members of the Board of Directors
GOV-1
In brief Performance
Corporate governance
Sustainability statementsStrategy Financial statements

Annual Report 2024
René
Alberg
Leif
Hummel
Marlene
L. Jakobsen
Employee-elected member
Elected in 2022, term expires in 2026
Born: 1971
Joined: 2006
Nationality: Danish
Product Manager
Employee-elected member
Elected in 2022, term expires in 2026
Born: 1963
Joined: 2022
Nationality: Danish
Facility Manager
Employee-elected member
Elected in 2022, term expires in 2026
Born: 1983
Joined 2022
Nationality: Danish
Store Manager
Share ownership
500 (500) Class B shares. No trades in AO shares in 2024.
Share ownership
5,200 (5,200) Class B shares. No trades in AO shares in 2024.
Share ownership
364 (294) Class B shares. Acquired 70 Class B shares in 2024.
Members of the Board of Directors
GOV-1
In brief Performance
Corporate governance
Sustainability statementsStrategy Financial statements

Annual Report 2024
Executive Board
GOV-1
Niels
A. Johansen
Per
Toelstang
Stefan
Funch Jensen
Lili
Johansen
CEO
Born: 1939
Chair of the Board of Directors of
Avenir Invest ApS.
Niels A. Johansen is the CEO and member of the Board of
Directors of a consolidated company and the Chair of the
Board of Directors of three consolidated companies
Holds 28,270 (28,270) Class A shares and 2,810,400
(2,810,400) Class B shares either directly or indirectly
CFO, Deputy CEO
Born: 1966
CEO of
MP Toelstang Holding ApS, Toelstang Invest ApS,
Ridersclub ApS
Chair of the Board of Directors of
Høvegaard ApS
Member of the Board of Directors of
Kohberg Bakery Group A/S
Holds 20,000 (20,000) Class B shares either directly or
indirectly
CTO
Born: 1974
Holds 0 (0) Class B shares either directly
or indirectly
CHRO
Born: 1957
Member of the Board of Directors of
Avenir Invest ApS.
Holds 28,110 (28,110) Class A shares and 360,000
(360,000) Class B shares either directly or indirectly
AO Management Team
Jeanette Roed Berthelsen
CSO, HVAC & Projects
Torben Christiansen
CSO, Construction
Lars Kestner
CSO, Electricals
Gitte Lindeskov
CIO
Ian Schlottmann
CPO
Sebastian Sigvaldason
Logistics Director
In brief Performance
Corporate governance
Sustainability statementsStrategy Financial statements

Annual Report 2024
Shareholder information
Dividend
The Board of Directors proposes that a dividend of DKK
3.00 per DKK 1 share be distributed for 2024 corre-
sponding to a payout ratio of 51.4%. The proposal is
in line with the capital allocation policy which states a
payout ratio of 33% - 50%.
Shareholders, capital, and voting rights
AO has two classes of shares. Class A shares cannot be
negotiated without the approval of the Board, whereas
Class B shares are freely negotiable. In addition, the B
share class carries special rights in the form of payment
of cumulative dividends.
The Company’s nominal share capital is DKK 28,000k.
Of which DKK 5,640k are Class A shares and DKK
22,360k are Class B shares. Each class A share of DKK
100 carries 1,000 votes, whereas each Class B share
of DKK 1 carries 1 vote. In addition to the difference in
the number of votes, the two share classes differ in the
following respects:
The Class A shares are non-negotiable instruments,
whereas the Class B shares are listed on Nasdaq Copen-
hagen under ID code DK0061686714.
The holders of Class B shares have a preferential cumu-
lative dividend right of 6%. This means that no dividend
will be paid for Class A shares until the Class B shares
have achieved a cumulative dividend of 6%.
In the event of liquidation, Class B shares take prece-
dence over Class A shares.
Changes to the Company’s Articles of Association
require that two thirds of cast votes and two thirds
of the represented capital at a general meeting are in
favour of the change.
The Company’s Board of Directors consists of eight
members who do not have to be shareholders. Five
members are elected by the Annual General Meeting,
and three members are elected by the staff. Holders
of Class B shares are entitled to appoint and elect one
Board member, while holders of Class A shares elect
the remaining Board members elected by the Annual
General Meeting.
A share B share
Shares 56,400 22,360,000
Nominal value per share (DKK) 100 1
Nominal value (DKK) 5,640,000 22,360,000
Votes per share 1,000 1
Treasury shares 823,900
Stock Exchange Nasdaq Copenhagen
Ticker: AOJ B
ISIN: DK0061686714
Share price year-end (DKK) 78.6
Market Cap year-end (MDKK) 443.3 1,757.5
AO shares
Dividend payments
MDKK 2024 2023 2022 2021 2020
Dividend 84.0 105.0 147.0 126.0 42.0
Payout ratio 51% 50% 50% 50% 24%
In brief Performance
Corporate governance
Sustainability statementsStrategy Financial statements

Annual Report 2024
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
Jan
DKK Shares
Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
40
50
60
70
80
90
100
By making factual, relevant, and reliable information
available to shareholders and other stakeholders, the
management of Brødrene A & O Johansen A/S aims
at giving the share market the best possible basis for
pricing the Company’s shares fairly.
Brødrene A & O Johansen A/S’s Investor Relations
activities are designed to ensure that the disclosure of
information is in accordance with the current disclosure
requirements established by Nasdaq Copenhagen A/S.
Brødrene A & O Johansen A/S’s financial communication
with stakeholders takes place mainly through company
announcements, quarterly webcasts, and investor
meetings.
Brødrene A & O Johansen A/S does not comment on
any information relating to financial results or expec-
tations in the period between the end of an accounting
period and the date on which results are published.
The Company’s management will refrain from holding
investor meetings and the like in this period. The
Company will also be reluctant to arrange meetings
in periods where it is dealing with matters that could
result in decisions that are to be announced to the
public.
Investor relations policy
Financial calendar
27/2 2025 Annual Report
21/3 2025 Annual General Meeting
30/4 2025 Quarterly Report Q1 2025
14/8 2025 Quarterly Report Q2 2025
29/10 2025 Quarterly Report Q3 2025
Analysts
The AO share is covered by the following
financial institutions:
· SEB
Investor contacts
CEO Niels A. Johansen
CFO, Deputy CEO Per Toelstang
Head of IR Nicolaj Harmundal Petersen
IR@AO.dk
Number
of Class A
shares
(DKK 100)
Number
of Class B
shares
(DKK 1)
Number of
shares –
nominal value Capital, % Votes, %
Avenir Invest ApS 56,220 208,000 5,830,000 20.82% 71.65%
Niels A. Johansen 160 2,706,400 2,722,400 9.72% 3.64%
Other registered
shares 20 16,860,371 16,862,371 60.22% 21.43%
Unregistered shares 0 1,761,329 1,761,329 6.29% 2.24%
Total, excluding
treasury shares 56,400 21,536,100 27,176,100 97.0 6% 98.95%
Treasury shares 0 823,900 823,900 2.94% 1.05%
Total 56,400 22,360,000 28,000,000 100.00% 100.00%
Total volume Closing price
AO share price 2024
In brief Performance
Corporate governance
Sustainability statementsStrategy Financial statements

Annual Report 2024
This statutory statement on data ethics of Brødrene
A&O Johansen A/S is part of the Management’s review
in the Annual Report for 2024 and covers the accounting
period from 1 January to 31 December 2024.
Brødrene A & O Johansen A/S is the only Danish
company in the group covered by the rules. Therefore,
this statement only applies to Brødrene A & O Johansen
A/S (hereinafter referred to as ‘AO’).
Statement on Data Ethics
It is important for AO that customers and other business
partners can trust AO’s processing of data. AO has
therefore chosen to focus on data ethics, so that it is
constantly ensured that data is processed ethically for
the common good of both customers and AO.
Consequently, the Board of Directors has adopted a
data ethics policy; a policy that determines AO's posi-
tion on and handling of data ethics issues. The policy is
based on a series of data ethics principles about
· Management's dedication to data ethics
· Responsible processing of data in accordance with
rules and society's perception
· Ensure transparency of processing operations
· Avoid discrimination and exclusion
· Support privacy and information security
· Training of employees.
It is AO’s goal that all employees are aware of the data
ethics values that underlie AO’s work with data. There-
fore, there is continuous awareness-raising about the
data ethics policy, and all employees are required to
complete a data ethics training programme. AO makes
extensive use of data to optimise business processes
and develop its operations. AO has therefore estab-
lished a data ethics working group to address data
ethics issues. The purpose of the data ethics working
group includes making recommendations on specific
data ethics challenges and ensuring compliance with
AO’s data ethics policy.
AO has, for a number of years, been highly focused
on protecting data – including personal data – from
unauthorised disclosure. This protection includes,
among other things, deletion, data minimisation, and
safeguarding through technical and organisational
measures. In the autumn of 2024, AO has therefore
been certified according to a standard for information
security (ISO27001) and a standard for data protection
(ISO27701). Compliance with these standards ensures
that all data is secured in a reasonable manner and that
the outside world can trust AO’s use of data.
The data ethics working group has also ensured that AO’s
use of artificial intelligence (AI) on data has been mapped
within AO. In the summer of 2024, AO’s IT Security Council
conducted a mapping of where AI is used in AO. At the end
of 2024, the data ethics working group has been author-
ised to assess data ethics issues before AI-based projects
are put into operation. These assessments will, among
other things, focus on legality, reasonableness, and bias.
In 2025, the data ethics working group will therefore
focus on AI-based projects and continuously assess
whether there is a need to adjust the use of AI within AO.
Data ethics
Statutory Statement on Data Ethics, cf. Section
99d of the Danish Financial Statements Act
In brief Performance
Corporate governance
Sustainability statementsStrategy Financial statements

Annual Report 2024
Sustainability
statement
41 Executive Summary
49 General
63 Environment
85 Social
100 Governance
108 Appendix
AO now exclusively uses electric
company vehicles, with charging
already installed or to be installed
at every store
Annual Report 2024

Contents
Executive Summary
General
Environment
Social
Governance
Appendix
AO is committed to participate in creating a positive
change in the construction and installation industry by
helping our customers achieving sustainable growth.
This can be done by setting a good example, by working
with the value chain to reduce negative ESG impacts,
and most importantly, by making it easy for the AO's
customers to comply with sustainability demands and
progress in their own sustainability efforts.
In 2024 AO has taken significant steps towards inte-
grating ESG further into its business strategy. AO aims
to be the Everyday Green Partner for its customers by
delivering products and services enabling the customer
to deal with sustainability requirements and make a
positive impact.
Executive Summary
AO’s Sustainability
Statement for 2024
The employees are the core of AO, and they are crucial to
the company’s success and results. AO is committed to
being a socially responsible business and providing the
best possible working conditions for our employees.In
2025 AO will be focusing on further increasing the overall
employee satisfaction.
Finally, 2024 was a busy year with 3 new companies
joining the AO family introducing new opportunities to
make a positive impact in the industry.
AO believes that we all have a common responsibility to manage
resources and opportunities in a responsible way to ensure the best
possible conditions for the next generation to build upon.
Highlights of 2024 include:
→ AO's 1.5° near-term 2030 target and our net zero
target by 2045 has been validated by Science
Based Targets initiative (SBTi).
→ The goal is to reduce scope 1 and 2 CO
2
-emis-
sions for AO Denmarks activities by 50% in 2025
compared with 2020 is well on track.
→ Fossil fuels across Denmark, Sweden, and
Norway has almost been eliminated with the only
exceptions of gas heating in a few locations and
a few heavy vehicles that cannot be electrified
yet.
→ All gas forklifts have been replaced by electric
forklifts
→ 47% of AO's employees have worked for AO for
more than 5 years
→ AO's whistleblower scheme has been expanded
to include external stakeholders
→ Finally, AO has strengthened its position as the
Everyday Green Partner by increasing the efforts
to meet customers’ demands for environmental
data and services for sustainability certified
construction projects. This will continue to be a
key priority in the years to come.
In brief Performance Corporate governance
Sustainability statements
Strategy Financial statements

Annual Report 2024
Contents
Executive Summary
General
Environment
Social
Governance
Appendix
ESG timeline
1998
· AO developed and implemented
its first environmental policy
2000
63% of waste
sorted for
recycling
2010
· First annual CSR report
2020
· First scope 1 & 2 CO
2
-baseline
year for AO Denmark
2023
· AO Denmark reduced CO
2
-emissions by
30%
in one year due to massive phasing out of fossil fuels.
· New solar roofs were introduced in our Central
Warehouse in Albertslund covering appr. 15% of
electrical usage.
2024
· Science Based climate targets validated by SBTi
· Full implementation of CSRD in the sustainability statement
· All passenger cars are changed to pure electric.
· All gas heating except for three locations is changed to district
heating or heating pumps
· AO Sweden’s ISO-certifications covered both environmental, quality
and health & safety management (ISO 14001, 9001 and 45001)
· AO Denmark’s ISO-certifications covered both environmental and
quality management (ISO 14001 and 9001)
1999
· ISO 14001 certification for
headquarters and central
warehouse
2008
· Logistics center in Horsens
receives ISO 14001-certification
2012
80% of waste
sorted for
recycling
2021
· First annual ESG report
· Whistleblower scheme was
introduced in AO
2022
· First Taxonomy reporting
· Creation of a climate and
sustainability department
· First CO
2
goal for AO Denmark
activities in scope 1 & 2: 50%
reduction in 2025 by phasing
out fossil fuels across AO
In brief Performance Corporate governance
Sustainability statements
Strategy Financial statements

Annual Report 2024
Contents
Executive Summary
General
Environment
Social
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In line with our commitment to create a positive
change in the construction and installation industry,
AO helps the customers achieving sustainable growth.
AO believe it can be done by setting a good example
and by working with the value chain to reduce nega-
tive ESG impacts, and most importantly, by making
it easy for the customers to choose the more sustain-
able path forward. ESG is now fully incorporated in our
strategy and represents a cornerstone in the strategic
vision. At AO sustainability is seen as a way to help
customers reach their objectives more effectively and
responsibly.
Sustainability is an
integrated part of our
strategic vision and
business strategy
We lend
a hand
Part of the team
AO is as much a sparring partner as a wholesaler.
And we are proud to be part of the team when the
tradesmen renovate, modernise and maintain
Denmark. It is our strategy to remain the leader
in the ReMoVe business by continuing the
development of the value creation in our omni-
channel offerings.
Towards common goals
AO's projects department creates a
secure framework for large construction
projects. We are not only focused
on the offer, but also on ensuring
that your project gets done better,
cheaper and faster. It is our strategy
to become one of the best partners to
construction customers, by developing
new digital support services.
It pays to start in
the right place
AO has the industry's most complete B2C offer
within simple home improvements and DIY. We
are close to the customers with all the inspi-
ration, advice and service they need. It is our
strategy to remain the onlineleader in DIY, by
continuing to offer new product ranges and solu-
tions, and thus making DIY easier.
Actively contributing to
a sustainable world
AO wants to be the leading green wholesaler
to the construction industry and make
it easy for all installers to comply with
climate requirements, and to ensure
a minimal environmental impact. AO
wishes to help promote a sustainable
world by supporting and contributing
to a sustainable construction sector.
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Near-term target
AO is committed to reducing absolute
Scope 1 and 2 GHG emissions by 80% by
2030, using 2022 as the base year. Addi-
tionally, AO commits to a 42% reduction
in absolute Scope 3 GHG emissions within
the same timeframe.
Net-zero target
AO commits to reach net-zero
greenhouse gas emissions across
the value chain by 2045.
The Science Based Targets initiative
(SBTi) is a globally recognised
organisation that validates corporate
climate targets based on the latest
climate science.
By having AO's targets validated by SBTi, AO demonstrates that
our climate ambitions align with the necessary efforts to limit
global warming to 1.5°C. This validation ensures that AO's near-
term and net-zero goals are credible and in line with interna-
tional climate action standards.
AO's targets represent a significant step forward in setting new
benchmarks for climate ambition.
AO’s climate targets have been validated by the SBTi
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Progress on AO's Science Based Targets
initiative validated CO
2
-reduction targets
81% Cat 11 - Use of Sold Products
16% Cat 1 - Purchased G&S
2% Cat 4 - Upstream Transportation
& Distribution
1% Other categories
82% Cat 11 - Use of Sold Products
15% Cat 1 - Purchased G&S
2% Cat 4 - Upstream Transportation
& Distribution
1% Other categories
72% Cat 11 - Use of Sold Products
24% Cat 1 - Purchased G&S
2% Cat 4 - Upstream Transportation
& Distribution
2 % Other categories
2022
1,040,228
tCO
2
e total
987, 33 4
t CO
2
e total
666,121
t CO
2
e total
2023 2024
100% -5% -36%
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Goal for waste
sorting
90%
We are making significant progress in reaching
AO's goal of sorting 90% of all waste
Waste sorting is the area where
our employees have the greatest
environmental impact.
Stores in Sweden
91%
Stores in Denmark
66%
Warehouses
92%
2021 2022 2023 20242021 2022 2023 20242021 2022 2023 2024
To strengthen our efforts, we have implemented a waste
sorting scheme across AO, leading to a significant
improvement — particularly in our stores, where the
potential is highest. In the coming years, we will further
enhance waste sorting across AO, working towards our
long-term goal of achieving a 90% sorting rate.
* Data consists of existing facilities excluding acquired facilities in 2024. / ** Sorting is defined as sorted waste excluding residual waste and landfill
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The employees are the core of our business
of AO's employees has
worked for AO for more than
5 years
47%
of AO Group staff are
trainees. It is important to
AO to ensure the right mix of
skills and to help trainees get
a good start in their career
5%
There is room and opportunities
in AO throughout life
Seniority levels in
the workplace
34%
0-2 years
19%
3-5 years
16%
6-10 years
31%
More than 10 years
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AO believes that goals and best practices should set
the standard across all aspects of the business. AO is
committed to maintaining structured processes and
continuous improvement in quality, environmental
management, and occupational health and safety
through internationally recognised ISO certifications.
In Denmark, AO currently hold ISO 9001 and ISO 14001
certifications. AO is actively working towards ISO 45001
certification in Denmark, which AO expect to achieve in
2025. This will further strengthen AO's commitment to
a safe and healthy work environment for all employees.
AO's operations in Sweden are certified according to
ISO 9001 (quality management), ISO 14001 (environ-
mental management), and ISO 45001 (occupational
health and safety).
ISO certifications also play a key role in tender
processes, where they serve as a recognised framework
Governance
Achieving progress through
ISO management systems
I
S
O
9
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,
1
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0
1
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a
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a
g
e
m
e
n
t
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y
s
t
e
m
ISO 9001 and ISO 14001 certifications
for structured processes and continuous improvement.
Looking ahead to 2025, AO's goal is to ensure that
all parts of the AO Group, including recently acquired
businesses, are included in our ISO certifications, rein-
forcing AO's dedication to systematic management and
long-term progress.
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General
General
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General basis for preparation
The sustainability statement covers the AO Group's
operations, including all subsidiaries and the latest
businesses acquired by the Group in 2024. The format
is similar to that of the financial statement.
In the event of acquisitions or divestments, the Sustain-
ability Statement is following the same principles as the
Financial Statements.
Value Chain Coverage
The sustainability statement explicitly includes impacts
of upstream, own operations and downstream aspects
of AO's value chain, reflecting the company's role as
a construction wholesaler. The upstream value chain
encompasses the whole lifecycle of the upstream
activities including extraction of raw materials, trans-
portation and production and their associated impacts,
risks, and opportunities (IROs), while the downstream
value chain covers all impacts of our customers and end
users including transportation, usage and disposal. The
specific IRO’s for both upstream, own operations and
downstream will be mentioned in the beginning of each
ESRS-section in the sustainability statement.
AO sustainability statement covers the whole upstream
and downstream value chain informed by AO’s double
Basis of preparation
materiality assessment and an ESG-survey conducted
as AO’s due diligence process.
· Upstream: AO evaluates the sustainability perfor-
mance of its suppliers through shared information
and ongoing collaboration. Key IROs identified are
based on desktop research of the impacts of the
various parts of our value chain and knowledge
about the environmental impact on the products we
purchase.
· Downstream: AO assesses the IRO’s related to the
use and disposal of its products by customers using
desktop research about the impact of our industry
as well as specific knowledge on the impact of the
products we sell.
Furthermore, AO has close corporation with suppliers
and customers as well as knowledge on the impact
of its activities including the products AO sell, which
informs AO's assessments.
The value chain coverage is in accordance with any
specific requirements related to the value chain in other
ESRS and the IRO’s for each ESRS can be found in the
beginning of each ESRS section. AO has no associates
or joint ventures. AO has not used the option to omit a
specific piece of information corresponding to intellec-
tual property, know-how or the results of innovation.
AO has not used exemption from disclosure of
impending developments or matters in the course of
negotiation.
Disclosures in relation to specific circumstances
Time horizons
In the process of stating AO's impacts, risks and oppor-
tunities for the Group's double materiality assessment
and material topics, the definition in ESRS 1 section
6.4 for time horizon has been used. If estimation has
been made with a time horizon deviating from the used
definition, it will be clearly stated.
The time horizons applied for the sustainability state-
ment:
· Short-term (within reporting year): Immediate oper-
ational adjustments and mitigation strategies for
identified high-risk sites.
· Medium-term (end of reporting year to 5 years):
Integration of formal climate scenario analyses and
adaptation of business strategies accordingly.
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· Long-term (5+ years): Ongoing evaluation and
adjustment of AO's business model to align with
evolving climate-related trends and regulations.
Sources of estimation and outcome uncertainty
In AO's calculations based on data and estimates from
its business and value chain, the basis and accuracy of
the calculation will be stated, regarding quantitative
measurement techniques and monetary amounts along
with uncertainty of estimations of the future.
Preparation of ESG performance data requires Manage-
ment to make estimates in some areas, which affect the
reported data. Management forms its estimates based
on historical experience, independent advice, in-house
specialists and other information believed to be
reasonable under the circumstances. AO has identified
following metrics subject to uncertainty and estimates:
- Scope 3 emissions (Page 71)
No changes in reporting or reporting errors
There are no changes or errors in the sustainability
statement compared to last year as this is the first year
of reporting a full sustainability statement.
Segment information
There are no material ESRS sectors for AO and no group,
products, services or customer accounts for more than
10% of our revenue.
List of disclosure requirements
incorporated by reference
· Strategy, Business Model, and Value Chain
SBM-1 - Strategy, page 13-17
· Headcount of employees by geographical areas
SBM-1 - Social, page 99
· Composition and diversity of administra-
tive, management and supervisory bodies
GOV-1 - Corporate governance, page 31-36
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Responsible for approving
ESG strategy and CSR policy
Responsible for strategy
and risk management
Responsible for development
of strategy, risk identification
and implementation
E
S G
FinanceHR
AO's task
force for Green
Transition
ESG Council
Executive BoardBoard of Directors
Sustainability
governance
Group sustainability
AO manages and controls our business in a responsible
manner ensuring honesty and integrity in the way AO
does business.
The sustainability in AO is governed by the ESG Council,
which consists of the Executive Board and the head of
Climate & Sustainability (1 female and 4 males).
AO's permanent taskforce for the green transition in AO
reports to the head of Climate & Sustainability.
Strategy and implementation of ESG initiatives as well
as material IROs are discussed at monthly meetings in
the ESG Council.
These meetings provide the possibility to inform and
address views from affected stakeholders on sustain-
ability-related impacts. The ESG Council reports to
the Board of Directors multiple times a year. When
presenting initiatives, no trade-offs has been identified
during the assessment.
The ESG Council leverages the expertise of subject
matter experts with in-depth knowledge of sustaina-
bility matters within the organisation.
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Governance structure
You can read more about AO's Board composition and
governance structure in the Corporate Governance
section on page 29, where you can also find informa-
tion on the experience and background of the Board of
Directors and Executive Board cf. DR ESRS GOV-1.
The role of the administrative,
management and supervisory bodies
Clear policies and guidelines for how to conduct and do
business are important for AO. Management and other
administrative roles and leaders are expected to set a
good example. AO’s policies and guides for business
conduct are built upon many years of experience doing
business in the wholesale industry. This experience is
based on management in sales, finance, logistics, and
IT. In addition, valuable knowledge is acquired through
the Board of Directors’ experience with global stan
dards. The acquired experience is important to follow,
maintain and keep relevant, both for AO and its busi-
ness partners.
Sustainability targets
Environmental targets on decarbonisation reductions
in AO's own operations, environmental information and
impact on products sold and circularity improvement
targets have been approved by the ESG-Council and
Board of Directors.
Governance of the sustainability targets transpires
throughout the organisation from procurement to sales
and service, by assigning ownership to the permanent
taskforce. This results in a matrix-based governance
model.ESG-related topics are being monitored monthly
by the ESG Council and regular risk assessments with
ESG topics have been established and included, along
with internal controls and documentation of ESG related
data.
A transition plan is endorsed by AO's management and
supervisory bodies, with focus on energy efficiency
and transition to renewable energy, both within AO's
operations and across its value chain.
The foundation for AO’s environmental efforts is the
ISO 14001 environmental management system, where
AO's policies and procedures to support the climate and
environmental policy are audited every year.
AO's most significant climate and environmental impact
lies within the value chain, meaning a crucial part of the
task is collaborating with customers and suppliers to
drive change in the industry.
As the Everyday Green Partner, AO assists the
customers in their green transition by offering environ-
mental data, products, and services that support more
sustainable constructions and societies.
AO submitted a target to reduce absolute Scope 1 and 2
GHG emissions by 80% by 2030 from a 2022 base year
and reach net-zero greenhouse gas emissions across the
value chain by 2045, which was validated by SBTi.
AO’s waste targets are not based on any significant
assumptions but inspired by legislation and driven by
AO’s environmental ambitions.
AO informs its executive team and board of directors
about sustainability matters through robust govern-
ance mechanisms, business ethics training, whistle-
blower systems, audits, transparent communication,
and proactive supplier management. These measures
enable the company to address sustainability issues
effectively and maintain high ethical standards.
Sustainability matters addressed by AO in 2024
In 2024, the ESG Council prioritised discussions on
key sustainability impacts, risks, and opportunities
aligned with AO's sustainability objectives and compli-
ance frameworks. The Council’s efforts focused on four
primary areas:
1. Climate action and resource management
The Council reviewed initiatives to transition AO’s opera-
tions away from fossil fuels, with specific projects initiated
at selected sites to support renewable energy adoption.
Waste management improvements were also discussed,
with strategies to enhance waste sorting across locations,
aiming to embed best practices and improve transparency
to support AO’s environmental goals.
2. Sustainable partnerships and innovation
Recognising the importance of circular economy princi-
ples, the Council has approved a new research initiative
to focus on circular economy opportunities for AO.
Additionally, opportunities to invest in biodiversity and
sustainable procurement were explored. The Council
evaluated Power Purchase Agreements (PPAs) as part
of its green energy procurement strategy, deciding to
re-evaluate long-term financial instruments in this area
in the future.
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3. Sustainability strategy and reporting
The ESG Council played an instrumental role in guiding
AO’s strategic roadmap for sustainability, involving
departments across the green transition taskforce,
finance, and HR to build a flexible, sustainable strategy
that aligns with AO’s ESG vision. To ensure compliance,
the ESG Council also addressed ISO 14001 environ-
mental certification requirements, aligning audits to
drive consistency in environmental and quality manage-
ment across all business units.
4. Environmental awareness
AO increased the visibility of its environmental commit-
ments to raise awareness of environmental impacts
both internally and externally. These discussions are
an attempt to pursue a proactive approach to sustain-
ability, embedding compliance, and driving long-term
value creation in line with stakeholder expectations and
regulatory requirements.
Integration of sustainability-related
performance in incentive schemes
The incentive schemes and remuneration policies
related to the Executive Board are currently not linked
to sustainability or climate-related targets. Inclusion
of sustainability and climate-related targets in future
incentive schemes will be evaluated.
Risk management and internal controls
over sustainability reporting
In the reporting of the sustainability statement AO is
exposed to risk of human error and incomplete data,
as the process of data collection consist of data from
multiple external sources and manual collection and
handling of data. To best mitigate the risks, automated
data collection processes have been established,
where possible, and data is thoroughly analysed and
reviewed.
The business environment is becoming increasingly
volatile, with economic fluctuations and societal
changes occurring at a faster pace. In this context,
managing risks and identifying potential threats to AO’s
business are crucial components of AO's governance.
The most significant risks to the company are regularly
monitored, and if deemed material, they are disclosed
in company announcements, as well as in interim and
annual reports.
In recent years, the nature of business risks has
evolved, with digital risks and cyber threats becoming
more prominent due to the rapid growth of globalisation
and digitalisation. This has heightened the need for
robust contingency plans to ensure that the company is
prepared for potential incidents, such as cyberattacks
or data breaches.
AO monitors these emerging risks on a regular basis
and implement contingency measures to safeguard
its operations. By staying vigilant and adaptable, AO
ensures that the company is well-prepared to address
current threats and protect the long-term sustainability
of the business. AO’s commitment to risk management
reflects its broader dedication to responsible business
conduct and maintaining the trust of stakeholders.
Strategy, business model and value chain
The integration of the three newly acquired businesses
in 2024 has not changed the significance of the type
of products and services AO offers or the markets and
customer groups AO focuses on. AO's sustainabili-
ty-related goals and strategy remain the same after the
integration.
Please read more about AO's strategy, business model
and value chain in the Strategy section in page 13-17.
Strategy
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AO's customers are its most
important stakeholders. AO is
customer-driven, guided by the
principle 'Customer is King' in
everything it does. AO strives to
be the main and preferred partner
for its customers and continuously
aims to deliver first class service,
by understanding their needs.
Employees
AO's employees are key to its
success. AO is committed to
provide the employees a mean-
ingful and engaging workplace
with room for growth and develop-
ment in a safe and healthy envi-
ronment for its employees.
AO engages with its employees
through different channels,
by sending updates on the
business through the intranet,
developments conversation with
managers, the Worker Councils
and employee surveys. AO also
has a whistleblower system for
employees to raise concerns and
awareness of any issues.
Suppliers
AO relies on strong partner-
ships and open dialogue with its
suppliers to operate effectively
and profitably. Ongoing supplier
relationships are crucial for AO
to meet its targets, as its main
ESG-impacts are closely linked
to the production and use of the
products it sells.
Environment
The environment is directly
affected by the actual and poten-
tial negative impacts of AO's
business activities. From the
extraction of raw materials to the
energy consumed during product
use and the challenges of waste
disposal for outdated or damaged
items, every stage of the lifecycle
has environmental consequences.
AO recognise its responsibility to
minimise these impacts and adopt
sustainable practices that protect
the planet for future generations.
Shareholders
AO is listed on Nasdaq Copen-
hagen, an international market-
place for Danish Securities.It
requires regular engagement with
shareholders, analysts and others
interested in Ao's business. This
is managed through the investor
relations department, which
participates in conference calls,
briefings, and general dialogue,
to ensure clear financial commu-
nication.
Interests and views
of stakeholders
The administrative, manage-
ment and supervisory bodies are
informed about the relevant views
and interests of affected stake-
holders when assessing various
sustainability initiatives.
Significant decisions are
presented to and discussed by the
Executive Board and, where appro-
priate, the Board of Directors.
These meetings also provide the
possibility to inform and address
views from affected stakeholders
on sustainability-related impacts,
when relevant.
Stakeholders
Customers Employees Suppliers Environment Shareholders Interests and views
of stakeholders
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Material impact risks and opportunities
Impact, risk or
opportunity
Actual
or potential
Positive
or negative
Value
chain Time horizon
E1 Climate change
E1 Climate
change
adaptation
Climate change adaptation plays a significant role in three of AO's vital product categories: VA (water
supply and drainage), VAGA, and VVS (heating, plumbing and sanitary ware). By offering products in these
categories, AO actively contribute to assisting communities in adapting to the growing impact of extreme
weather events such as floods, droughts, and rising sea levels. Thus, climate change adaptation is highly
relevant in the downstream segment of AO's value chain.
Opportunity Actual Positive Downstream Long term
E1 Climate
Change
mitigation
Our direct CO
2
footprint is limited (scope 1 and 2). The majority of AO's overall CO
2
footprint lies in indirect
emissions (scope 3), including emissions from the manufacturing of AO's products sold to customers,
transportation of goods from manufacturers to AO and to customers, as well as emissions from customers'
use and disposal of AO's goods.
Impact Actual Negative Upstream, own
operations and
downstream
Medium term
E1 Energy Our direct CO
2
footprint is limited (scope 1 and 2). The majority of AO's overall CO
2
footprint comes from
indirect emissions (scope 3), including emissions from the manufacturing of AO's purchases, transporta-
tion of goods from manufacturers to AO and to customers, as well as emissions from customers' use and
disposal of AO goods.
Impact Actual Negative Upstream, own
operations and
downstream
Medium term
E2 Pollution
E2 Substances
of very high
concern
The relationship with Substances of Very High Concern (SVHCs) is essentially indirect and is largely
connected to upstream and downstream activities. This includes substances like certain heavy metals,
carcinogens, mutagens, or persistent organic pollutants that may originate from suppliers' manufacturing
processes or may be components within the products AO acquire and distribute to customers. In addition,
our product line includes a multitude of chemicals commonly used in the construction industry. Among
these are substances categorized as SVHCs due to their considerable health and environmental impacts.
The handling, utilisation, and eventual disposal of these substances can result in their release into the
environment, impacting both ecosystems and potentially human health.
Impact actual Negative Upstream and
downstream
Medium term
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Material impact risks and opportunities - continued
Impact, risk or
opportunity
Actual
or potential
Positive
or negative
Value
chain Time horizon
E5 Resource use and circular economy
E5 Resource
inflows,
including
resource use
Resource inflows have implications for resource use, both within the operations and along the broader
value chain. Although we do not produce our own materials, our operations rely on virgin resources for
packaging and distribution. Additionally, products we source are possibly manufactured using raw mate-
rials extracted from mines or natural areas. This extraction process can have substantial environmental
impacts.
Impact Actual Negative Upstream and
own operations
Medium term
E5 Resources
outflows related
to products and
services
As a technical installation wholesale company, the resource outflows are significantly tied to the products
and services, spanning across their life cycle from distribution to end-of-life. Upon product distribution,
resource outflows primarily encompass packaging materials. The packaging used to protect and trans-
port our products, such as cardboard, plastic wrap, and pallets, can become waste after delivery. At the
customer's end, the products, once transformed into buildings or other construction projects, embody
significant resource outflows. Construction waste, which includes unused materials and by-products of the
building process, represents a substantial portion of this outflow. When the products reach the end of their
life cycle, incorrect treatment can cause loss of valuable resources, which can be avoided by repurposing
or recycling.
Impact Actual Negative Downstream
and own oper-
ations
Medium term
E5 Waste Impact on waste generation and management is significant and can be categorised into three main
areas: upstream activities, operations, and downstream activities. Upstream, suppliers in the extraction,
processing, and manufacturing of raw materials contribute to waste generation. For example, the mining
and refining of metals or the manufacturing of construction materials often result in a substantial amount
of waste, including unused raw materials, by-products, and packaging materials. In the operations, waste
is generated primarily through the warehouses, shops and packaging materials and unsold or expired
products. The facilities also generate typical office waste, such as paper, plastics, and electronic waste.
Downstream, the products AO distributed can contribute to waste at the end of their life cycle. Construction
materials and other products that are not fully used or recycled can end up as waste in landfills or other
disposal sites.
Impact Actual Negative Downstream
and own oper-
ations
Medium term
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Material impact risks and opportunities - continued
Impact, risk or
opportunity
Actual
or potential
Positive
or negative
Value
chain Time horizon
S1 Own workforce
S1 Working
conditions
Secure employment
In general AO utilises temporary workers to address fluctuations in activity driven by market devel-
opment. In the recent market downturn AO has not made significant redundancies but in a recession
scenario that would be an inherent risk. In relation to M&A activities realisation of synergies could result
in redundancies on a limited scale.
Impact Actual Negative Own
operations
Medium term
Working time
Pressure on specific groups of employees at peak times both in stores and in the administration can lead
to stress both in the warehouse and in the administration and support functions.
Impact Actual Negative Own
operations
Medium term
Health and safety
Occupational health and safety remain a priority, particularly in high-risk areas like warehouses and
stores (heavy lifting, truck driving etc.). Additionally, offensive language, bullying, and stress is a high
priority and are not tolerated.
Risk Potential Negative Own
operations
Medium term
S1 Equal
treatment and
opportunities
for all
Training and skills development
AO is committed to providing equal opportunities for all employees to enhance their skills and compe-
tencies. This is facilitated through annual employee development interviews and an educational system
accessible via the intranet. Additionally, AO invests in training and education programmes specifically
designed for AO trainees, fostering the development of future talent within the organisation. These efforts
reflect a strong commitment to employee growth and career advancement.
Opportunity Potential Positive Own
operations
Medium term
Diversity
AO is focused on promoting from within for middle management, managerial, and director roles, this
approach can inadvertently limit diversity in skills and experience. The current workforce shows a not fully
balanced gender distribution, with a predominance of men in the organisation.
These factors suggest an opportunity to broaden recruitment efforts to increase gender balance.
Risk and
opportunity
Potential Negative and
positive
Own
operations
Medium term
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Material impact risks and opportunities - continued
Impact, risk or
opportunity
Actual
or potential
Positive
or negative
Value
chain Time horizon
G1 Business Conduct
G1 Corporate
culture When doing business with complex international business value chains with more than 1,000 suppliers
there is an inherent potential negative impact from corruption, bribery, harassment or an informal
economy if not properly addressed and managed through a sound and stable corporate culture.
Risk Potential Negative Upstream,
own operations
and down-
stream
Short term
G1 Protection of
whistleblowers
Whistleblowers can be subject to negative consequences if the organisation does not implement
adequate protection. A lack of whistleblower protection can lead to negative impacts on the workforce and
lack of knowledge of incidents. A lack of whistleblower channels in the value chain increases the risk of
AO to be linked with incidents outside of AOs sphere of control.
Risk Potential Negative Upstream,
own operations
and down-
stream
Short term
G1 Corruption
and bribery
In general AO operate in countries with little tradition of corruption and bribery. We have a policy for
corruption and bribery and provide training for our employees to make them able to detect and prevent
corruption and bribery. Cases of corruption and bribery could lead to reputational damage for AO.
Risk Potential Negative Own operations Short term
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E2: Substances of very high concern
E5: Waste
S1: Working conditions
S1: Equal treatment and opportunities for all
G1: Corporate culture
G1: Protection of whistleblowers
G1: Corruption and bribery
E1: Climate change adaptation
E1: Climate change mitigation
E1: Energy
E5: Ressource inflows
E5: Resource outflows
Financial impact on AO
Impact on the environment & people
IMPACT MATERIAL
NON-MATERIAL
DOUBLE MATERIAL
FINANCIAL MATERIAL
Double Materiality Assessment
In 2023, AO started working towards CSRD readiness
and compliance by completing the first Double Materi-
ality Assessment (DMA) and GAP analysis. The process
included engagement with multiple internal and
external stakeholders. In 2024 to ensure compliance,
AO has performed a review of the double materiality
assessment and GAP analysis along with the data
collection, risk assessment and internal controls.
During AO's review assistance from specialised
consultants has been used.
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The process of AO double materiality assessment
followed the requirements of the European Sustain
ability Reporting Standards ESRS1 and 2.
The Board of directors has approved the Double Mate-
riality Assessment, the given threshold for materiality,
and the list of material topics.
Scope
AO identified and assessed impacts, risks and oppor-
tunities for its own operations and its value chain for
all topics, focusing on both upstream and downstream
activities. The value chain assessment was mainly
based on direct suppliers and AO's own internal know
ledge combined with data from external consultants
and supplier information.
Impact and financial assessment included both positive
and negative impacts, which were considered actual
and/or potential for our business related to environ-
ment, social and governance matters. AO's assessment
was based on ESRS, and guidelines provided in 2024, to
ensure alignment and compliance to CSRD. As AO's busi-
ness develops, the company will continue to review its
double materiality assessment (DMA) and activities with
impacts, risks, and opportunities to keep a relevant and
actual assessment on the most material topics to AO.
Stakeholder engagement
In completing the DMA, AO engaged internal stake-
holders from the start to secure understanding, provide
ownership and benefit from the knowledge of the stake-
holders. External consultation was included to support
the process and ensure understanding of the require-
ments. While working on the DMA, AO approached
external business partners and stakeholders to better
understand how their business could impact AO and
how the business decisions and activities could affect
their business.
AO maintains a continuous engagement with our busi-
ness partners and stakeholders to improve our busi-
ness, collaboration, and commitment to agreements.
Materiality scoring Process
For actual impacts AO used the three parameters
‘Scale,’ ‘Scope,’ and ‘Irremediability’ for a combined
scoring of Severity. For potential impacts, an additional
parameter ‘Likelihood’ was added, as per the ESRS
guidance.
Assessment of actual impact: See table below
Two parameters, ‘Size of the potential financial impact’
and ‘Likelihood’ were used to score financial risk and
opportunity. The measurement for “Size of the potential
financial impact” has been based on the same scale as
the used for AO risk assessment. Likelihood was scored
on the same basis as for impacts.
Methodology and
scoring
Environment Social Governance
Scale The extent of the impact on the rele-
vant individuals/economy/en
vironment - whether low or high.
The extent of the impact on the right
to life/health/basic life needs -
whether low or high.
The extent of the impact on the right
to life/health/basic life needs -
whether low or high.
Scope
How widespread the impact would
be from immediate to global level
How widespread the impact would
be on a population or employees
How widespread the impact would
be on a population or employees
Irremediability How difficult it would be to undo
the damage based on time, effort,
and costs
How difficult it would be to undo
the damage based on time, effort,
and costs
How difficult it would be to undo
the damage based on time, effort,
and costs
Likelihood Assessment of likelihood on a scale
from 'rare' to 'certain'.
Assessment of likelihood on a scale
from 'rare' to 'certain'.
Assessment of likelihood from 'rare'
to 'certain'.
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Material topics based on the DMA
The outcome of the DMA scoring shows that the
following five out of the ten ESRS topics are material to
AO:
· E1 Climate change
· E2 Pollution
· E5 Resource use and circular economy
· S1 Own workforce
· G1 Business conduct
The outcome of the DMA is consistent with current
sustainability strategy. For each material topic AO has
identified impacts, risks and opportunities (IROs) and
assessed whether each subtopic was material or not. The
material topics and subtopics are further specified and
presented in the following sections, with more informa-
tion on why AO find them material and how they are incor-
porated as part of our organisation and daily activities.
Non-material topics based on DMA
The outcome of the DMA scoring shows that the following
six out of the ten ESRS topics are not material to AO due to
the nature of our business as a wholesale company:
· E2: Pollution of air, Water & soil, Living organ-
isms and food resources, Substances of concern,
Microplastics
· E3: Water, Marine resources
· E4: Direct impact drivers of biodiversity loss, Impacts
on the state of species, Impacts on the extent and
condition of ecosystems, Impacts and dependencies
on ecosystem services
· S1: Other work-related rights
· S2: Working conditions, Equal treatment and opportu-
nities for all, Other work-related rights
· S4: Information-related impacts, Personal safety,
Social inclusion
Topics reviewed as immaterial in early assessment iand
not included in the full Double Materiality Assessment:
· S3: Economic, social and cultural rights
· S3: Civil and political rights
· S3: Rights of indigenous peoples
· G1: Animal welfare
· G1: Political engagement and lobbying activities
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Environment
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E1 Climate change
Impact, risks and opportunities
Through the company's double materiality assessment
AO identified which climate related impacts, risk and
opportunities that are material for AO and its value
chain. To identify these climate related impacts, AO
has conducted an analysis of its GHG emission calcula-
tions as well as a flood risk assessment of its physical
locations. When conducting the flood risk assessment,
no full scenario analysis has been conducted, but AO
has made an analysis based on external expertise and
relevant flood risk tools.
AO has yet to conduct any substantial financial assess-
ment that will provide data on Climate change regarding
how the impacts, risks and opportunities can affect AO on
a monetary basis. The process to identify these financial
effects will be conducted when AO has more mature data.
AO has found that in terms of its own operations, AO has
a limited area of opportunity where it is possible for the
company to have any climate change adaptation strat-
egies and implementations. AO has around 60 physical
locations and based on its assessment of the physical
locations, only a few AO stores are situated in areas
associated with climate-related hazards like flood risk.
AO has a product portfolio where climate change adap-
tation plays a significant role in creating an opportunity.
Through three of AO's product categories: VA, VAGA,
and VVS. AO offers products in categories that actively
contributes to assisting communities in adapting to
the growing impact of extreme weather events such
as floods and rising sea levels. Climate change adap-
tation measures are already needed today, due to the
climate-related hazards AO is experiencing.
Furthermore, AO is exposed to risks such as supply
chain disruptions and increasing prices due to extreme
weather events brought on by climate change. If AO's
suppliers and sub suppliers are not able to adapt to
climate change, it could become a potential financial
risk for AO.
As AO is a wholesaler selling goods to craftsmen and
installers, with a very limited own in-house production,
AO's direct CO
2
footprint is limited. This assessment is
based on the GHG-emissions calculations. AO’s scope
3 accounted for 99% of our total emissions, whereas
Scope 1 and 2 only accounted for 1% total.
AO’s main CO
2
footprint lies in scope 3 activities in the
upstream and downstream value chain from the manu-
facturing of AO's purchases, transportation of goods
from manufacturers to AO and to customers, as well as
emissions from customers' use of sold goods.
Even though AO’s scope 1 & 2 CO
2
footprint is small, AO
still considers emissions in scope 1 and 2 material, as
AO has direct influence on the emissions and due to the
fact that CO
2
causes harm on a global scale and is hard
to redeem once the damage is done.
AO’s direct energy consumption is limited to its daily
operational activities. This includes energy required for
running the offices, warehouses, and the energy source
consumed by our own vehicles. The indirect energy
usage, however, forms a substantial part of AO's total
energy footprint. Primarily this involves the energy
usage of sold products and secondarily the energy
consumed during the production of the materials AO
distribute, sourced from various manufacturers. Addi-
tionally, significant energy is used in the transportation
of these materials from factories to AO's warehouses
and to its customers.
Resilience analysis
AO has identified the following material climate-related
risks impacting the operations:
Physical Risk: Two of the retail sites is in an area with
a high risk of flooding. This constitutes a climate-re-
lated physical risk due to the potential for property and
damage and operational disruptions. The flooding risk
is not considered a safety concern for employees and
customers at the locations. The financial consequences
of these flooding events are very limited as the nearest
store is less than 30 km away and the downtime is
limited.
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Transition Risk: Changes in climate-related regulations,
market preferences, and technological advancements
may affect the business operations. However, given the
diverse supply chain with numerous suppliers across
each product group, AO consider the transition risk
to be manageable. The ease of substituting suppliers
allows AO to adapt swiftly to regulatory and market
changes.
The scope of the resilience analysis is focused on:
Assessing the vulnerability of the physical locations to
climate-related events, specifically flooding as well as
evaluating the flexibility and robustness of the supply
chain in the face of climate-related disruptions.
The analysis of the physical risks was conducted
internally in late 2023 by mapping the locations against
climate risk zones. AO has not conducted a formal anal-
ysis of the supply chain meaning that the assessment
is based on a high-level assessment of the supplier
landscape.
AO has not employed a formal climate scenario anal-
ysis as outlined in ESRS 2 IRO-1. AO recognises the
importance of global supply chain risks, but due to the
diverse number of suppliers, AO is not currently plan-
ning to do a scenario analysis.
AO expects a gradual shift towards a lower-carbon
economy, impacting energy consumption patterns and
technological advancements. Anticipated increases
in renewable energy adoption may affect operational
costs and supply chain dynamics. Technological inno-
vations may offer new opportunities for efficiency and
sustainability in our operations.
The shift will have a limited financial impact on the own
operations, but a shift in macroeconomic trends could
present business opportunities for AO. AO has business
areas supporting both climate mitigation and climate
change investments.
The time horizons applied and their alignment with the
climate and business:
· Short-Term (within reporting year): Immediate oper-
ational adjustments and mitigation strategies for
identified high-risk sites.
· Medium-term (end of reporting year to 5 years):
Integration of formal climate scenario analyses and
adaptation of business strategies accordingly.
· Long-term (5+ years): Ongoing evaluation and adjust-
ment of the business model to align with evolving
climate-related trends and regulations.
The primary uncertainty in the resilience analysis lies in
the lack of rigid methodology behind the assessments.
Additionally, timing and severity of climate-related
events and regulatory changes is an uncertainty. While
AO has identified assets at risk, incorporating these
insights into the strategic planning and investment
decisions is an evolving process also taking into consid-
eration the limited amount of assets at risk.
AO has identified Global supply chain risks as one of
the key risks for the Group. It is being evaluated whether
and how to integrate climate change resilience into the
strategy.
AO is assessing its ability to adjust or adapt its strategy
and business model to climate change in both short,
medium, and long term as follows:
Strategic Flexibility: AO's diversified supply chain and
flexible sourcing strategies position AO well to adapt to
climate-related changes over the short, medium, and
long term.
Access to finance: AO is committed to maintaining
strong relationships with financial partners to secure
ongoing access to capital at affordable rates.
Asset management: AO can redeploy, upgrade, or
decommission assets as needed to respond to climate
risks, which is currently very limited.
Product and service shifts: The business model allows
for adjustments in our product and service offerings to
meet changing market demands.
Workforce reskilling: AO is prepared to invest in
reskilling the workforce to support new operational
needs arising from climate adaptation strategies.
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Transition plan for Climate change
mitigation & adaption
AO believe that we all have a responsibility to manage
the resources in a manner beneficial to both current and
future generations, respecting people, and the planet.
The biggest difference AO can make is by simplifying
the process for the customers to make more sustainable
choices, hence considering a sustainable business
model as the prerequisite for commercial success.
As a wholesaler in the construction and installation
industry, with various business units and products, AO
has a complex value chain with an upstream that spans
across the globe. However, AO’s own operations and
downstream is limited to primarily Denmark, Sweden
and Norway.
AO takes responsibility over own activities by reducing
climate and environmental impacts in its business,
regardless of their significance across the value chain.
By obtaining a better understanding of AO's impact,
risks and opportunities regarding climate change AO
has now continued with a transition plan to address
climate change mitigation, with clear objectives.
The Science Based Targets initiative (SBTi) has vali-
dated that the science-based greenhouse gas emis-
sions reduction target(s) submitted by Brødrene A&O
Johansen A/S conform to the SBTi Criteria and Recom-
mendations (Version 5.2). SBTi has validated that AO's
near-term target is in line with the 1.5°C trajectory. The
official near-term science-based target language:
Brødrene A&O Johansen A/S commits to reduce abso-
lute scope 1 and 2 GHG emissions 80% by 2030 from
a 2022 base year. Brødrene A&O Johansen A/S also
commits to reduce absolute scope 3 GHG emissions
42% within the same timeframe. The SBTi has also vali-
dated AO’s net-zero target. The official net-zero science-
based target language is: Brødrene A&O Johansen A/S
commits to reach net-zero greenhouse gas emissions
across the value chain by 2045.
The assessment does not show any potential locked in
GHG emissions from AO's key assets and product, and
is thereby not considered a risk, which could prevent AO
from achieving the GHG reduction targets.
AO’s transition plan is endorsed by AO's management
and supervisory bodies, embedding climate objectives
within AO's corporate governance. This ensures a
coordinated approach across all levels of the organisa-
tion, with financial planning that reflects the company's
priorities, ensuring that resources are allocated to
support its transition goals and annual reporting to
track progress against our targets.
AO is well underway with this transition plan being
implemented throughout the Group and will annually
report on progress, maintaining transparency with
stakeholders. This includes detailing actions taken to
reduce emissions, challenges faced, and adjustments
to the strategy as needed to stay on track with targets
aligning with the Science Based Target initiative.
Policies
Building on the transition plan, AOs climate and envi-
ronmental policy establish a structured framework to
drive sustainable progress across its entire value chain.
The scope of AO’s climate & environmental policy is
covering the entire value chain across all geographies
and all identified stakeholders. The ESG Council is
responsible for the implementation of the policy. The
environmental and climate policy solely covers climate
change mitigation and adaptation, energy efficiency,
pollution, waste management, circular economy.
Transition plan for Climate change
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Climate change mitigation:
· Reducing CO
2
emissions in scope 1, 2, and 3 in
accordance with the Science Based Targets initiative
(SBTi)-validated goals.
· Phasing out fossil fuels in heating, company vehicles
and forklifts to meet the CO
2
targets for scope 1 and 2.
· Increasing the share of more sustainable products
when sourcing from suppliers to benefit customers.
Through prioritisation and dialogue, AO aim to shift
customer focus towards more sustainable products.
· Inspiring partners and the industry to support a
sustainable value chain, also leveraging AO's influ-
ence in industry associations.
Climate change adaptation:
· Addressing the consequences of climate change by
adapting locations to the climate.
· Providing goods and solutions that assist customers
and local communities with necessary climate
adaptation.
Energy efficiency and renewable energy deployment:
· Reducing the annual energy consumption and
increasing the share of renewable energy by
installing solar panels.
· Investing in energy-efficient solutions and promoting
energy and CO
2
saving initiatives among both our
customers and suppliers.
Recognising the significant impact of scope 3 emis-
sions, AO has initiated a comprehensive ESG survey
for suppliers, aiming to gain a better understanding of
their business practices regarding ESG. AO will consider
introducing supplier’s carbon reduction information
during procurement and contracting to source more
energy-efficient products. AO wants to cooperate
with its suppliers and encourage practices across the
value chain that increase use of recycled material and
encourage them on their transition from conventional
electricity to renewables etc. AO will especially engage
in collaboration with suppliers of ceramics-, plastics
and metals-based products to reduce CO
2
-emissions in
accordance with the net zero target. This effort is essen-
tial for addressing emissions from purchased goods and
services, and the use phase of sold products, which
constitute most of AO's indirect emissions.
Actions and Targets
AO has not yet implemented a strategy as to how the
company intend to eliminate its residual GHG emissions
in relation to the SBTi- aligned net zero target. However,
in the fall of 2024 students from Aalborg University’s
Sustainable Cities Master’s program have investigated
credible beyond value chain mitigation measures, and
AO will at a later stage decide on whether to engage in
further studies.
AO is currently investigating the possibility to introduce
nature-based solutions to the sites.
The ability to implement the actions requires resources;
however, these are not significant or extraordinary in
nature, especially when compared to resource-intensive
industries such as large-scale production companies.
AO continuously look for opportunities to reduce the
emissions and has identified areas of investments and
costs related to actions taken in line with the transition
plan taken in 2024. Investments related to buildings
and company cars have been made. The financial
amount of the actions taken in 2024 can be found in the
Taxonomy section on page 80.
AO will continue to invest in emission reductions to
reach the emission targets. This includes both capital
and operational expenditures aimed at reducing emis-
sions and enhancing efficiency.
There are no other targets than the above mentioned
related to manage the IRO’s in ESRS E1. Other relevant
environmental targets are referenced in other chapters
of the report.
AO’s actions so far has led to a substantial reduction in
the carbon footprint, with a 27% decline in Scope 1 and
2 CO
2
emissions compared to the 2022 baseline. AO’s
targets are aligned with the GHG protocol and validated
by Science Based Target initiative. The accounting of
CO
2
-emissions is conducted for both scope 1, 2 and 3
for the value chain. AO monitor the GHG-emissions in
scope 1, 2 and 3 every year in alignment with the SBTi
guidelines, and follow the accounting guidelines for
calculations for all categories. AO accounts for all scope
3-categories besides from excluded categories: 8, 10,
14 and 15 and the target is furthermore not derived
using a sectoral decarbonisation pathway.
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Aside from calculating AO's GHG inventory and carbon
reduction potentials, some of the main levers of GHG
emissions in Scope 3 have been identified. As shown
in the Scope 3 calculations, the two largest emission
categories are the use of sold products and purchased
goods & services. Reducing emissions, therefore,
requires AO to engage with suppliers and customers to
drive behavioral change. The materials with the highest
emissions include ceramics, plastic, and metals.
AO is well underway with the current actions to reduce
carbon emissions in Scope 1 and 2 to zero CO
2
e, and by
engaging with suppliers and downstream costumers,
there is potential for a substantial reduction in Scope 3.
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Achieved and expected GHG emission reductions UoM 2024
Achieved GHG emission reductions % 36.0%
Expected GHG emission reductions by 2030
Scope 1 & 2 vs 2022 base year % 80.0%
Scope 3 vs 2022 base year % 42.0%
Expected GHG emission reductions by 2045
Scope 1, 2 & 3 vs 2022 base year 90.0%
Energy consumption mix 2024 2023
Fuel consumption from coal and coal products (MWh) 0 0
Fuel consumption from crude oil and petroleum products (MWh) 1,089.6 2,056.5
Fuel consumption from natural gas (MWh) 641.7 1,128.5
Fuel consumption from other fossil sources (MWh) 0 0
Consumption of purchased or acquired electricity, heat, steam, and
cooling from fossil sources (MWh) 11,283.8 12,042.7
Total fossil energy consumption (MWh) 13,015.1 15,227.7
Share of fossil sources in total energy consumption (%) 97.9% 99.9%
Consumption from nuclear sources (MWh) 0 0
Share of consumption from nuclear sources in total energy consumption (%) 0% 0%
Fuel consumption for renewable sources, including biomass (also
comprising industrial and municipal waste of biologic origin, biogas,
renewable hydrogen, etc.) (MWh) 0 0
Consumption of purchased or acquired electricity, heat, steam, and
cooling from renewable sources (MWh) 0 0
The consumption of self-generated non-fuel renewable energy (MWh) 280.0 8.0
Total renewable energy consumption (MWh) 280.0 8.0
Share of renewable sources in total energy consumption (%) 2.1% 0.1%
Total energy consumption (MWh) 13,295.0 15,235.7
§ Accounting policy
Energy consumption and mix
Non-renewable sources (fossil fuel)
Energy from non-renewable sources covers fuel
consumption related to the Group’s leasing
car fleet, natural gas consumption, electricity
consumption and district heating related to the
heating of office buildings, AO stores and office
activities.
For conversion from litre and m
3
consumption to
megawatt-hours, Energistyrelsen and Danmarks
statistik conversion factors have been used.
Renewable sources
Energy from renewable sources covers electricity
generated, related to office activities
Energy consumption and mix
Energy efficiency and the transition to renewable
energy are central to AO’s climate strategy, both within
the operations and across the value chain. Internally,
AO focuses on reducing energy consumption by imple-
menting energy-efficient technologies and installing
solar panels to increase the share of renewable energy
in the operations. Additionally, AO is committed to
phasing out conventional fossil fuels in heating,
company vehicles, and forklifts, directly supporting
AO's Science Based Targets for scope 1 and 2.
Externally, AO prioritises enabling customers to make
more energy-efficient choices. By sourcing and offering
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a broader range of energy-saving products, AO actively
guide customers towards solutions that lower energy
use and reduce CO
2
emissions during the use phase.
Through targeted dialogue with suppliers, AO will
investigate the development and adoption of renewable
energy technologies, particularly in industries reliant
on ceramics, plastics, and metals. These efforts align
with AO's ambition to reach our net-zero target.
GHG emissions
The methodologies, assumptions and emissions factors
used to calculate the AO group emissions are provided in
the accounting policies together with the presented data.
The acquisition of Svenska VA-Grossisten, DesignKupp,
and Workwear Group has led to an increase in the share
of fossil fuel cars and non-renewable energy within the
total AO Group's energy consumption, despite improve-
ments made during the year. However, AO was still able
to reduce its total emissions in 2024 compared to 2023.
The primary reason for the total reduction in 2024 vs
2023 comes from cat 11 - Use of sold products, mainly
driven by a reduction of CO
2
e from electricity usage.
2024 2023
Baseline
2022 % vs LY
% vs
Baseline 2030 2045
Annual %
target/
Baseline
Gross scope 1 GHG emissions
Actual total GHG emission 420 861 1,602 -51.2% -73.8% 320 160 -10.0%
Actual total GHG emission
Gross location-based Scope 2 GHG emissions 1,941 2,389 3,093 -18.8% -37.2 % 619 309 -10.0%
Gross market-based Scope 2 GHG emissions 4,712 4,796 5,451 -1.8% -13.6% 1,090 545 -10.0%
Significant scope 3 GHG emissions
Category
1. Purchased Goods & Services 160,179 149,060 171,917 7.5% -6.8%
2. Capital Goods 2 1 2 97.5% 8.6%
3. Fuel & Energy related Emissions 246 287 436 -14.3% -43.6%
4. Upstream Transportation & Distribution 16,337 16,989 18,797 -3.8% -13.1%
5. Waste generated in Operations 374 316 703 18.4% -46.8%
6. Business Travel 63 83 89 -24.1% -29.0%
7. Employee Commuting 753 689 642 9.3% 17.3%
9. Downstream Transportation & Distribution 4,141 3,559 6,221 16.4% -33.4%
11. Use of Sold Products 480,877 813,478 838,255 -40.9% -42.6%
12. End-of-life Treatment of Sold Products 3,146 2,870 3,162 9.6% -0.5%
13. Downstream leased Assets 3 2 4 9.3% -37. 9%
Significant scope 3 GHG emissions 666,121 9 8 7, 334 1,040,228 -32.5% -36.0% 603,332 -5.3%
Total GHG emissions
Total GHG emissions location based 668,482 990,278 1,035,275 -32.5% -35.4% 66,850 -3.2%
Total GHG emissions market based 671,253 992,685 1,037,633 -32.4% -35.3% 67,127 -3.2%
GHG intensity based on net revenue UoM 2024 2023 2022
GHG intensity (location based) t CO
2
e per DKK million 123.1 188.3 194.4
GHG intensity (market based) t CO
2
e per DKK million 123.6 188.7 194.8
§ Accounting policy
GHG intensity (scope 1, 2 & 3)
GHG intensity has been calculated as gross
scope 1, scope 2 location-based/market-based,
and gross scope 3 CO
2
emissions divided
by reported net revenue in DKK million.
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Direct GHG emissions (scope 1)
Scope 1 emissions are reported based on the Greenhouse
Gas (GHG) Protocol and cover all direct emissions of green-
house gases from AO. The direct carbon emissions from
various fuels are determined based on the fuel quantities
and the relevant emission factor.
Indirect GHG emissions (scope 2)
Scope 2 emissions are reported based on the GHG Protocol
and include indirect GHG emissions from the generation of
electricity and heat purchased and consumed by AO. Scope
2 emissions are primarily calculated as the power volumes
purchased multiplied by the emission factor for electricity.
For district heating local emission factors from each district
heating area are not used. Location-based emissions are
calculated based on average country-specific emission
factors. Market-based emissions consider renewable power
purchased and assume that regular power is delivered as
residual power.
Indirect GHG emissions (scope 3)
Scope 3 emissions are reported based on the GHG Protocol,
where the scope 3 inventory is split into 15 subcategories
(C1-C15):
· Category 1. Purchased goods for resale’s emissions
were calculated using a physical data approach, where
products were categorized based on weight and custom
codes to estimate material composition and assign GWP
emission factors. This covered 88% of the purchased
goods list, with extrapolations applied to remaining
§ Accounting policies for GHG emissions scope 1, 2 & 3
Scope 3
category ID Scope 3 category Justification
8 Upstream leased assets The fuel and electricity consumption of leased items are accounted for in Scope 1-2
and Scope 3.3. Double accounting is avoided. The life cycle emissions associated
with manufacturing or constructing leased assets are optional. SBT asks to exclude
optional GHG activities from the Scope 3 GHG boundary.
10 Processing of Sold Products AO does not sell products that (may) require further processing.
14 Franchises AO does not operate a franchising business model.
15 Investments AO does not have any investments that fall under the definition of this category.
items. For products lacking weight data, weight and
emissions were estimated using averages from the other
product categories. For remaining products and services
not meant for resale, a spend-based approach was
applied, using AO’s financial data across entities and
emission factors from the EEIO database, adjusted for
inflation and currency conversion.
· Category 2 includes GHG emissions from capital goods
procurement. CO
2
e emissions were calculated using a
spend-based approach and relevant emission factors
were applied.
· Category 3 includes the indirect emissions of fuels, elec-
tricity and district heating. They were calculated using
data from scope 1 and 2. When location-specific emis-
sion factors were unavailable for Denmark, proxy factors
were applied. The indirect share of the market-based
emission factors was determined using the DK grid mix
emission factor split.
· Category 4 includes transportation emissions from
suppliers, goods transportation between stores, ware-
houses, and direct deliveries to customers. For deliveries
from AO to own facilities or customers CO
2
-reports was
provided by the transportation-companies. For emis-
sions deriving from delivery to AO these reports were
not available. Therefore, the calculations were based on:
Product origin, weight, and units and they were used to
group suppliers by country and region. A transport split
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was applied based on whether the region is within the
EU. Transport distances were estimated using
seadistance.org, with emissions calculated based on
assumed distances and product weights. Where country
of origin was not available emissions were extrapolated
based on averages from the known data sources.
· Category 5 includes emissions from waste disposal,
based on data provided on waste type from our waste
handling partners. Relevant emission factors was multi-
plied by the waste amount.
· Category 6 includes emissions from business travel,
calculated using a spend-based approach. Travel
spending was categorized into domestic, foreign, and
client-related travel, with a statistical ratio applied as
a proxy for other locations. Emissions were calculated
using spend-based factors for air and land travel, while
hotel stay emissions were estimated using an average
hotel rate and a global emission factor per night.
· Category 7 includes emissions from employee
commuting, calculated based on average travel distance,
transport mode, and the number of employees, including
temporary workers. The transport split was derived from
national statistics, with commuting distances adjusted
for round trips and annual working days. Emission
factors were applied except for foot and bike travel,
which were set to zero.
· Category 9 includes customer product pick-ups in 2024.
The average shopping travel distance in Denmark (14.7
km/day) was used. Emissions were calculated without
considering product weight.
· Category 11 includes emissions from the use of sold
products. As no use-phase data was provided, esti-
mates were made using product category information
and purchased units. Electricity-consuming products
were identified, sorted by relevance, and assessed for
wattage, lifespan, and daily usage. Where data was
insufficient, an extrapolation was applied.
· Category 12 includes emissions from the end-of-life
treatment of sold products. Products were sorted by
weight, with the most relevant categories covering 80%
of the total. Material and waste type assumptions were
made, and a waste ratio was applied to the full product
list. Waste treatment methods were based on statistical
data, with emissions per kg of waste calculated.
· Category 13 includes emissions from the operation of
assets owned and leased to third parties. CO
2
e emis-
sions were calculated using a spend-based approach,
with emission factors adjusted for inflation.
· The subcategories 8, 10, 14 and 15 are not relevant for
AO and was therefore excluded.
· The metrics for the scope 3 calculations, will have some
level of uncertainty, as some of the data is based on
extrapolations.
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The carbon emissions for scope 1 and 2
2025
Target
-50%
2020
Baseline
1,835
tonnes CO
2
1,794
tonnes CO
2
1,692
tonnes CO
2
1,563
tonnes CO
2
965
tonnes CO
2
2021 2022 2023 2024
918
tonnes CO
2
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Update on the original AO Denmark
CO
2
-targets for scope 1 & 2
As part of AO’s ongoing commitment to sustainability
and reducing the environmental impact, we have set
ambitious climate targets both for AO Denmark and the
AO Group as a whole.
AO Denmark Targets
Since 2020, AO Denmark has committed to reducing its
Scope 1 and 2 carbon emissions by 50% by 2025, with a
longer-term goal of achieving zero emissions in scope 1
& 2 by 2030. These targets were designed to align with
AO Denmark’s operational focus and are outlined in
previous annual reports.
Due to the progress being made in phasing out fossil
fuels in heating, forklifts and company vehicles AO has
achieved a reduction in 2024 compared to the base
year of 47.4%. Based on this positive development, it is
expected that the 2025 goal of reducing 50% compared
to 2020 for AO Denmark activities will be achieved.
New group-level Climate targets aligned
with Science-Based Targets (SBTi)
In 2023, AO took a significant step forward by calcu-
lating our scope 1, 2, and 3 emissions across the entire
AO Group. Validation from the Science-Based Targets
initiative (SBTi) for the new, more comprehensive
climate targets were received. These targets commit the
AO Group to reduce scope 1 and 2 emissions by 80% in
2030, while reducing scope 3 emissions by 42% in the
same timeframe and achieving net-zero emissions by
2045. These new goals reflect our broader, long-term
climate strategy and are in line with global standards
and the EU’s sustainability regulations, including the
Corporate Sustainability Reporting Directive (CSRD).
Maintaining AO Denmark’s Targets
While the new SBTi-aligned goals are now the primary
focus for the AO Group, it is important to retain the
original climate targets for AO Denmark. These goals
remain relevant and demonstrate our ability to achieve
short-term climate objectives, particularly for inves-
tors and stakeholders who value seeing measurable
progress. AO is committed to transparent reporting on
both sets of targets until 2025 to ensure clarity and to
highlight progress across both the Danish operations
and the wider AO Group. After 2025 the reporting will
focus solely on the SBTi-related scope 1, 2 & 3 progress
on group level.
Navigating the difference in targets
Maintaining both the AO Denmark-specific targets
and the Group-level SBTi targets may initially appear
complex. However, these two sets of goals serve
different purposes. AO Denmark’s targets reflect the
historical commitment and focus on operational perfor-
mance within Denmark, while the Group-level SBTi
A restatement for the years 2020-2023 has been made excluding scope 3 emissions
related to Scope 1 & 2 which were included in previous years reporting. Corrected
Scope 1 & 2 emissions can be seen in the figure above.
■ Fuel for company vehicles ■ Fuel for forklifts ■ Gas for heating
■ Electricity ■ District Heating ■ Electricity for company vehicles
targets represent the broader climate ambitions across
all operations. Both are important in demonstrating the
overall sustainability strategy and progress.
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E2 Pollution
Impact, risks and opportunities
AO’s material impact on pollution is related to
substances of very high concern (SVHC), that AO sells to
its customers, and it is both relevant for upstream and
downstream activities. No part of AO's business value
chain is excluded if it relates to the harmful substances
that are in the company's products.
AO has conducted an analysis of the harmful
substances sold by AO across its operations including
all sites and business activities. In addition the amount
of items with harmful substances stored in each of AO's
warehouses and stores has been ascertained. The phys-
ical risks of pollution in emergency situations are not
considered material due to the limited amounts stored
in AO's warehouses. However, all AO's locations follow
all regulatory requirements regarding hazardous items
and fire regulation sas a part of our ISO 14001 certified
management system.
Products handled by AO and registered on the SVHC
list will only affect the immediate surroundings and will
not cause significant harm to others besides the people
who use the chemicals. However, some of the chemi-
cals that are under SVHC have the potential to cause
more lasting damage, where irremediability (part of the
severity assessment) scores high in the assessment.
There is also a high likelihood that the customers in
the downstream value chain will be exposed to these
substances when they use them.
Due to the limited number of products sold and the
well-regulated area, no subtopic concerning pollu-
tion was considered financial material based on AO’s
benchmark for financial materiality used throughout the
assessment across all ESRS’s.
The decision process regarding IRO’s is similar to the
IRO assessment process across ESRS’s and will be
evaluated yearly based on potential changes in the
upstream supply chain, AO’s own operations and
downstream effects of products sold. Opportunities to
minimise the negative impact of products containing
harmful substances will be part of AO’s work with
customers to reduce the number of such goods. This
effort is also integrated into the ISO 14001 manage-
ment system.
Input parameters for current the material sub-topic are
safety data sheets used for analysis and the REACH
restriction lists and the SCIP-database under the
European Chemical Agency (ECHA). Input parameters
for reassessment of non-material topics will be scale,
scope, irremediability and likelihood of potential pollu-
tion throughout the value chain.
Process for analysing SVHC
Based on safety data sheets AO has conducted an anal-
ysis of all chemicals sold. The analysis was performed
by internal and external specialists.
Based on the safety data sheet information all chem-
icals were divided into categories based on REACH
restriction lists. All new chemicals are analysed to
assess which restriction lists (if any) the substances
are categorised into. Articles with SVHC-substances are
monitored through the registration of goods that are
listed in the SCIP-database by the European Chemicals
Agency (ECHA). The reported quantities of chemicals
and articles containing SVHC substances reflect the
total weight in kilograms of the products, regardless
of the proportion of SVHC substances within them. The
disclosure is not validated by an external body.
The information and communication provided on these
substances to customers follows the CLP-regulation.
Policies on substances of very high concern
AO’s Climate and Environmental policy as well as
Corporate Social Responsibility Policy address the issue
of harmful substances. The responsibility for imple-
menting the policies lies with the Procurement Director.
Reducing harmful substances in the chemicals AO sells
relates to both upstream and downstream activities. In
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the policies and ISO 14001 management system, it is
addressed how to address harmful substances in the
following way:
Climate and environmental policy:
· Annually analyse and reduce the amount of environ-
mentally harmful substances by engaging in dialogue
with suppliers on how to replace or phase them out,
particularly in products sold to private consumers
and substances of very high concern (SVHC). Our goal
is to phase out SVHCs completely by 2030 for the
benefit of both people and the environment.
· Increasing the share of sustainable products when
purchasing from suppliers to benefit our customers.
Through prioritisation and dialogue, AO aim to shift
customer focus towards sustainable products.
Corporate social responsibility policy:
· AO reduces environmentally harmful substances for
the benefit of both people and the environment.
As AO's work with monitoring harmful substances both
in terms of reduction of harmful substances as well as
handling emergency situations is a part of the certified
ISO 14001-manangement system, the following part of
AO's climate and environmental policy is also relevant:
AO's environmental management certification aims
to support AO and its employees in the climate and
environmental efforts. Therefore, the entire AO, from
top management to stores, is certified in the ISO 14001
environmental management system, which includes:
· Actively involving employees in environmental efforts.
· Including environmental topics on the agenda of
internal sales, board, and management meetings.
· Measuring departments on environmental perfor-
mance, just as they are measured on other outcomes.
· Ensuring that initiatives with environmental impact
are planned, implemented, and evaluated in collabo-
ration with AO's responsible environmental unit.
· Assisting AO's customers in making green choices
when shopping with us.
AO's environmental policy should be viewed in conjunc-
tion with its social responsibility policy, where reducing
AO's climate and environmental impact is central to
AO's efforts. The scope of AO’s climate & environmen
tal policy is covering the whole value chain across all
geographies and all identified stakeholders. The CTO
is responsible for the implementation of the policy. The
environmental and climate policy solely covers climate
change mitigation and adaptation, energy efficiency,
pollution, waste management, circular economy.
AO has consulted stakeholders by interviewing
customers about their view on AO’s customer-related
work with sustainability including harmful substances.
We have not consulted neighbours regarding the matter,
but as harmful substances are a well-regulated field, we
are following regulation on the matter including require-
ment to warehouse setup.
Targets and actions
AO’s target is linked to AO's policies, and it is to elimi-
nate all SVHC-substances in products AO sell by 2030
and reduce substances of concern, where viable substi-
tutes are available. AO's policy states that the company
will do that by annually analysing and reducing the
amount of environmentally harmful substances by
engaging in dialogue with suppliers on how AO can
replace or phase out these substances — particularly
in products sold to private consumers and substances
of very high concern (SVHC). As 2030 is a short time
frame, the interim target is to decrease the number of
chemical products each year.
No official methodology has been used to set the
targets as it is not applicable and therefore there are
no significant assumptions used to set the targets. The
targets are related to the EU’s chemicals strategy for
sustainability towards a toxic-free environment and the
scientific evidence proposed in the strategy.
AO do not have any targets related to air, water, and soil
pollution reduction activities, as these topics are not
material for AO.
Process for analysing and monitoring SVHC
AO plans to tracks the effectiveness of our actions
yearly by reanalysing the substances in chemicals using
specialised software and track the amounts sold of SVHC
substances as well as substances of other REACH restric-
tion lists. The baseline for the calculation will be 2024,
as the target has been set during 2024.
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AO has consulted stakeholders by customer interview
during the fall of 2023 about their view on AO’s cus-
tomer-related work with sustainability including
harmful substances. They were not a part of the target
setting process.
The target relates directly to the climate and environ-
mental policy as stated above. AO follow regulation
updates using software and updates its list of relevant
regulation each year.
§ Accounting policy
Substances of very high concern
Total weight in tonnage (in tonnes) and percentage
of SVHC as part of substances or articles (ingredi-
ents in final product) sold in AO.
The volume of SVHC is presented as total weight
(in tonnes) of all substances or articles containing
SVHC, not the total weight of the actual SVHC
ingredient.
The weight of a substance or article is included if
the SVHC concentration is more then 0.1% of its
volume.
2024
Substances of very high concern UoM SCIP SVHC
Amount of substances of very high concern that leave facilities as part of products
Weight
tonnes 679.8 9.6
Percentage of net revenue made with products and services that are or that contain
substances of very high concern % 5.8% 0.04%
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To assess the materiality of AO's ressource use and
impact on the circular economy, general knowledge
about the construction industry was used, based on
year-long involvement in the industry and continuous
knowledge expansion about the industry’s negative
impacts through desk research as well as external and
internal knowledge sharing.
To understand trends in the construction industry
and circular economy, and to understand what can be
expected in the future, AO is keeping itself updated on
legislation on relevant topics on international level.
This can minimise certain risks, like incompliance, and
highlight opportunities like market trends.
Most of the materiality assessment was based on
general data regarding the construction industry, while
calculation and analysis of waste and packaging is
based on product-specific supplier data.
AO’s activities are not classified as a polluting
company, as defined by the Danish Environmental
Protection Act, where local negative impacts are absent
or negligible and therefore there are no affected stake-
holders. Due to AO’s stakeholders participating in the
production of some of the most problematic materials,
affected stakeholders can be expected in some of the
value chain. Due to the complexity of the value chain
and no direct influence on the initial stages of product
production, the affected stakeholders are difficult to
identify and negative impacts on them difficult to miti-
gate. AO will work towards stronger risks assessments
including stakeholder management in the future.
AO’s material impacts in the construction industry
come from the products it buys and sells, which require
a significant amount of resources—both the materials
themselves and the energy, water, and other resources
needed for raw material extraction, production, pack-
aging, and distribution. For own activities, most of the
resources are used for production of energy for elec-
tricity and heating of own facilities, and production of
procured packaging. While identifying IROs relevant for
resource use and circular economy, all types of resource
inflows and outflows were considered, including energy
and water consumption in own operations as well as
in upstream and downstream activities. Water was
deemed non-material (see Non-material topics based
on DMA). Energy consumption is covered in chapter E1.
Policy
The scope of AO’s climate & environmental policy is
covering the whole value chain across all geographies
and all identified stakeholders. Due to the nature of AO’s
business, where most of the material impacts are a conse-
quence of the activities in AO’s upstream value chain,
the Climate and Environmental Policy primarily concerns
downstream and upstream activities with AO’s direct
influence. However, reduction of waste is the first step
toward reducing material impacts of downstream opera-
tions. The activities to reduce the material impact of AO’s
own activities, require AO’s employees to learn new daily
habits, such as correct waste sorting. The ESG Council
is responsible for the implementation of the policy. The
environmental and climate policy solely covers climate
change mitigation and adaptation, energy efficiency,
pollution, waste management, circular economy.
The Climate and Environmental Policy is accessible on
the company's intranet and on AO’s website. The policy
is accessible to stakeholders and the public. All AO
employees must complete an online course regarding
AO’s work with environment and climate. AO finds
it important that all employees receive information
about the focus area in the policy. All AO employees
are encouraged to contact the AO's sustainability team
regarding questions, help or ideas.
AO is focusing on reducing residual waste amounts,
and is contributing to minimise use of virgin resources.
In Q4 2024, AO began a take-back scheme project to
scale-up take-back efforts of suppliers and contribute
to the use of recycled and secondary materials in their
manufacturing processes.
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Actions
To support correct waste management, AO established
a waste sorting solution and is continuously adjusting
the solution to optimise it depending on the location.
AO’s employees must also undergo a course in correct
sorting and are kept updated when new knowledge
about specific waste fractions is obtained. AO expects
the knowledge about correct waste sorting to spread
and contribute to higher waste sorting rates as well as a
higher actual recycling rate at all AO’s locations. Waste
data is uploaded monthly and made available to all AO’s
employees. Here, waste data is visualised, indicating
which of AO Denmark’s locations are reaching or
exceeding the targets, and which locations are lagging.
This gives an insight into which locations need help,
and which locations can be used as an inspiration for
good practices.
As mentioned above, AO began a take-back scheme
project in Q4 2024, to reduce reliance on virgin
resources and increase the use of secondary and
recycled resources directly in AO’s value chain. This
project has already shown potential for scaling up take-
back efforts, not only for products, but also packaging.
Further dialogue with relevant suppliers is needed to
fully explore the potential and develop and implement
specific take-back schemes. In the same quarter,
another project was initiated, where returned goods
will be mapped, including the reason for return, process
for return and further handling of the returned goods.
This is the first step in identifying opportunities for
achieving higher levels of waste hierarchy for this group
of products.
Both of the above mentioned projects are meant to
contribute to the development of circular strategy,
which will cover downstream, upstream and AO’s own
activities and will focus on value retention, waste
prevention and high actual recycling rates, as well as
procurement of products with recycled materials.
Most of the mentioned and planned actions are meant
to be a continuous effort unless their positive effect is
not proven. In that case, new actions and initiatives will
be implemented by AO. AO has not previously reported
en these actions and therefore the progress in relation
to previous reporting periods is not possible.
Targets
Regarding circular economy, one target is specified in
the Climate and Environmental Policy:
- 90% of waste is sorted for further treatment by 2030
and residual waste should be no more than 10 % of all
waste produced by AO. This relates to recycling in the
waste hierarchy.
AO plans to track the effectiveness of our actions yearly
by analysing the amount of waste that is sorted for
further treatment and amount of residual waste. The
baseline for the calculation will be 2024, as the target
has been set during 2024.
Danish legislation does not set any specific targets that
companies must reach. AO’s waste sorting targets are
not based on any significant assumptions but inspired
by legislation and driven by AO’s environmental ambi-
tions. In 2025, AO will strive to set more relevant goals
for the future, including upstream, downstream and
AO’s own activities.
Resources inflows
Due to the extent of AO’s product range and conse-
quently its wide-reaching and complex value chain, AO
has not executed an analysis of its full resource inflows.
Regarding own operations, AO is in the process of
mapping its packaging consumption in line with the
extended producer responsibility for packaging. These
are the resource inflows that are within AO’s full control.
AO has no knowledge of the resource inflows derived
from property, plant and equipment used in own opera-
tions. As water usage is not a part of AO’s main opera-
tions, it is not considered material.
Resources outflows and waste
AO’s primary activities are procurement and sales of
products and AO does not contribute to the products’
design. Furthermore, AO’s own production activities,
VAGA, represents a negligible share of AO’s revenue.
Consequently other areas, such as waste, are being
prioritised as more important at the moment.
As a wholesaler in the construction industry, AO
generates waste, often due to breakage, cutoffs, and
incorrect orders. However, cardboard packaging is AO’s
largest material waste stream, accounting for 35% of its
total waste. The second-largest material waste stream
is wood, at around 30%, followed by incinerated waste,
which makes up about 14%. Steel, other metals, and
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ceramics each account for approximately 3% of AO’s
total waste. Other material waste streams do not exceed
1.5% of annual waste.
AO’s waste data is collected through various waste
management companies that sort and weigh all our
waste and provide detailed data reporting. Waste is
generally reported based on invoices received from
waste recipients, supplemented with plant-specific
measurement methods for commercial facilities,
including construction activities. Waste is weighed
using verified weights and sorted by type, every month,
by our waste partners. The table below shows waste
amounts across all AO’s locations in Denmark, Sweden
and Norway, including the newly acquired companies.
Waste data for the three new companies is included
from the time they became part of the AO Group.
Waste UoM Hazardous Non-hazardous
Diverted from
disposal
Preparation for reuse Weight tonnes 0 0
Recycling Weight tonnes 3 1,390
Other recovery operations Weight tonnes 3 209
Directed to
disposal
Incineration Weight tonnes 0 82
Landfill Weight tonnes 0 21
Other disposal operations Weight tonnes 0 0
AO Denmark generates about 88 % of all waste
generated by AO Group and has, together with AO
Sweden, the most versatile waste streams in the
group (described above). Other members of AO Group
generate primarily paper and wood waste, most of
which is recycled. Waste recycling is not yet fully imple-
mented in some of the smaller Group entities leading
to higher disposal rates. In the coming years, AO will
intensify collaboration with these locations to ensure
high waste sorting rates across the group.
Waste UoM 2024
Total amount of waste
generated
Weight
tonnes 1,708
Non-recycled waste
Weight
tonnes 315
Percentage of non-recycled
waste % 18.4%
§ Accounting policy
Waste weight
Waste treatment volumes are reported in absolute
tonnage (in tonnes) of waste collected from AOs
location during the reporting period. All data is
third-party data. Data is actual data from the
whole AO Group.
Non-recycled waste
Total weight in tonnage (in kg) and percentage of
waste that has not been recycled.
Small projects encouraging
reduction of waste
NEXT
Whenever AO has materials and products that are
still intact and useful but not eligible for sale, such
as screws that have expired and are in old pack-
aging, AO sends them to a vocational school that
can use them for training and education of future
carpenters, rather than disposing of the screws.
RED project
The 'RED' project, initiated by our customer Finn L.
& Davidsen, receives monthly donations from AO.
We provide slow-moving stock items and returned
products with cosmetic damage, which are handed
out to DIY enthusiasts once a year.
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Executive Summary
General
Environment
E1 Climate Change
E2 Pollution
E5 Resource use and circular economy
Taxonomy
Social
Governance
Appendix
EU Taxonomy
Under the EU Taxonomy Regulation, listed
companies employing more than 500 people
must disclose the share of their revenue,
expenses and capital employed in 2024 that are
defined as environmentally sustainable under
the Taxonomy Regulation.
For the 2024 financial year, reporting is required
in relation to “Countering climate change”,
“Adapting to climate change”, "Water", "Pollu-
tion", "Circular Economy", and "Biodiversity and
ecosystems".
AO is an environmentally aware and climate
conscious company. As stated previously, AO’s
direct carbon footprint is limited, as we are a
wholesaler and conduct neither major produc-
tion nor other activities that could potentially
harm our environment and climate. That is why
reporting on the environmental sustainability
of our activities as defined in the EU Taxonomy
Regulation is limited and does not present a
complete view of our environmental and climate
efforts, as they extend beyond our own activi-
ties. See section “Environment and climate” for
more information about our activities.
We have conducted an analysis of our activities
to identify if any of our activities are eligible
as defined in the Annexes 1-2 of the Climate
delegated act or in the Annexes 1-4 of the Envi-
ronmental delegated act in the EU Taxonomy
Regulation. The aim of this has been to identify
whether AO has any reportable turnover, invest-
ments or expenses to be included in our report
for 2024.
Wholesale trading is not included as a separate
activity in the EU Taxonomy Regulation. Hence
AO only has sub-activities that are covered by
the Regulation.
Identified areas with eligible economic activ-
ities during the reporting period were further
assessed for alignment. However, AO does not
claim alignment for 2024 due to insufficient
documentation in the relevant areas.
Reporting in accordance with the taxonomy
According to the classification system in the EU
Taxonomy, AO is required to submit a report in
relation to activity “CCM 6.5 Transport by motor-
bikes, passenger cars and commercial vehicles”,
"CCM 7.6 Installation, maintenance and repair
of renewable energy technologies” and activity
“CCM 7.7 Acquisition and ownership of build-
ings”. All three activities are deemed to have the
potential to contribute to the environmental and
climate objective “Adapting to climate change”.
We have compared the three identified activities
"CCM 6.5 Transport by motorbikes, passenger
cars and commercial vehicles”, "CCM 7.6 Instal-
lation, maintenance and repair of renewable
energy technologies” and "CCM 7.7 Acquisition
and ownership of buildings” with technical
screening criteria according to the Delegated
Regulation 2021/2139 and have identified 0% of
our revenue, 56% of our investments, and 27 %
of our total maintenance expenses to be eligible
according to the classification system, cf. below
in the taxonomy form for turnover, capital
expenditure (CapEx) and operating expenses
(OpEx). None of the turnover, investments or
operating expenses have been assessed as
being environmentally sustainable activities.
As yet, no capital expenditure plan for upgrading
our investments to become environmentally
sustainable in the longer term has been made.
This is illustrated below in the mandatory tables
in accordance with Delegated Regulation (EU)
2021/852.
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Appendix
Taxonomy form for turnover
Substantial Contribution Criteria DNSH criteria ('Does Not Significantly Harm')
Economic Activities (1)
Code (2)
Absolute turnover (3)
mDKK
Proportion of
Turnover (4)
Climate Change
Mitigation (5)*
Climate Change
Adaptation (6)
Water (7)
Pollution (8)
Circular Economy (9)
Biodiversity and
ecosystems (10)
Climate Change
Mitigation (11)
Climate Change
Adaptation (12)
Water (13)
Pollution (14)
Circular Economy (15)
Biodiversity (16)
Minimum Safeguards
(17)
Taxonomy aligned
or eligible propor-
tion of total turnover,
year N (18)**
Category (enabling
activity) (20)
Category(transitional
activity)(21)
A. Taxonomy-eligible activities 2023
A.1. Environmentally sustainable activities (Taxonomy-aligned)
Turnover of environmentally sustain-
able activities
(Taxonomy-aligned) (A.1)
0 0% 0% 0% 0% 0% 0% 0% N/A N/A N/A N/A N/A N/A N/A 0% 0% 0%
Of which Enabling
Of which Transitional
A.2 Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
Turnover of Taxonomy-eligible but not
environmentally
sustainable activities (not Taxono-
my-aligned activities) (A.2)
0 0% 0%
A. Turnover of Taxonomy eligbile activi-
ties (A.1+A.2)
0 0% 0%
B. Taxonomy-non-eligible activities
Turnover of Taxonomy-non-eligible
activities
5,429.3 100% 100%
Total Turnover (A+B) 5,429.3 100% 100%
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Appendix
Taxonomy form for capital expenditure (CapEx)
Substantial Contribution Criteria DNSH criteria ('Does Not Significantly Harm')
Economic Activities (1)
Code (2)
Absolute CapEx (3)
mDKK
Proportion of
CapEx (4)
Climate Change
Mitigation (5)*
Climate Change
Adaptation (6)
Water (7)
Pollution (8)
Circular Economy (9)
Biodiversity and
ecosystems (10)
Climate Change
Mitigation (11)
Climate Change
Adaptation (12)
Water (13)
Pollution (14)
Circular Economy (15)
Biodiversity (16)
Minimum Safeguards
(17)
Taxonomy aligned
or eligible propor-
tion of total CapEx,
year N (18)**
Category (enabling
activity) (20)
Category(transitional
activity)(21)
A. Taxonomy-eligible activities 2023
A.1. Environmentally sustainable activities (Taxonomy-aligned)
CapEx of environmentally sustainable
activities
(Taxonomy-aligned) (A.1)
0 0% 0% 0% 0% 0% 0% 0% N/A N/A N/A N/A N/A N/A N/A 0% 0% 0%
Of which Enabling
Of which Transitional
A.2 Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
Acquisition and ownership of buildings CC M 7.7 84.5 49% 33%
Installation, maintenance and repair of
renewable energy technologies
CCM 7.6 2.7 2%
Transport by motorbikes, passenger
cars and light commercial vehicles
CCM 6.5 9.5 6% 18%
CapEx of Taxonomy-eligible but not
environmentally sustainable activities
(not Taxonomy-aligned activities) (A.2)
96.7 56% 51%
A. CapEx of Taxonomy eligible activi-
ties (A.1+A.2)
96.7 56% 51%
B. Taxonomy-non-eligible activities
CapEx of Taxonomy-non-eligible
activities
75.1 44% 49%
Total CapEx (A+B) 171.8 100% 100%
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Appendix
Taxonomy form for operating expenditure (OpEx)
Substantial Contribution Criteria DNSH criteria ('Does Not Significantly Harm')
Economic Activities (1)
Code (2)
Absolute OpEx (3)
mDKK
Proportion of
OpEx (4)
Climate Change
Mitigation (5)*
Climate Change
Adaptation (6)
Water (7)
Pollution (8)
Circular Economy (9)
Biodiversity and
ecosystems (10)
Climate Change
Mitigation (11)
Climate Change
Adaptation (12)
Water (13)
Pollution (14)
Circular Economy (15)
Biodiversity (16)
Minimum Safeguards
(17)
Taxonomy aligned
or eligible propor-2023
tion of total OpEx,
year N (18)**
Category (enabling
activity) (20)
Category(transitional
activity)(21)
A. Taxonomy-eligible activities
8% 2023
A.1. Environmentally sustainable activities (Taxonomy-aligned)
OpEx of environmentally sustainable
activities
(Taxonomy-aligned) (A.1)
0 0% 0% 0% 0% 0% 0% 0% N/A N/A N/A N/A N/A N/A N/A 0% 0% 0%
Of which Enabling
Of which Transitional
A.2 Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
Acquisition and ownership of buildings
(OpEx B)
CCM 7.7 14.0 24% 23%
Installation, maintenance and repair of
renewable energy technologies
CCM 7.6 0 0%
Transport by motorbikes, passenger cars
and light commercial vehicles (OpEx C)
CCM 6.5 1.4 2% 4%3
OpEx of Taxonomy-eligible but not
environmentally sustainable activities
(not Taxonomy-aligned activities) (A.2)
15.3 27% 27%
A. OpEx of Taxonomy eligible activities
(A.1+A.2)
15.3 27% 27%
B. Taxonomy-non-eligible activities
OpEx of Taxonomy-non-eligible activities 41.9 73% 73%
Total OpEx (A+B) 57. 2 100% 100%
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Appendix
Accounting policies
All KPIs have been calculated on Group level in
accordance with Commission Delegated Regu-
lation (EU) 2021/2178 of 6 July 2021 supple-
menting Regulation (EU) 220/852 of the Euro-
pean Parliament and of the Council, Annex 1.
Our accounting policies below are described in
detail to allow a better understanding of how the
proportion of our taxonomy-aligned and taxono-
my-eligible activities has been calculated.
Turnover
Turnover is calculated on the same basis as the
turnover in the financial statements. No turn-
over has been identified for activity "CCM 6.5
Transport by motorbikes, passenger cars and
commercial vehicles", "CCM 7.6 Installation,
maintenance and repair of renewable energy
technologies” and activity "CCM 7.7 Acquisition
and ownership of buildings".
CapEx
Capital expenditure for activity "CCM 6.5 Trans-
port by motorbikes, passenger cars and commer-
cial vehicles” is calculated on the basis of Annex
1, section 1.1.2 and includes the purchase and
lease of company cars and other vehicles. This
is viewed in relation to the total investments in
"Intangible assets" (excluding goodwill), "Prop-
erty, plant and equipment" and "Right-of-use
assets", cf. notes 3.1-3.3 of AO’s Annual Report
for 2024.
Capital expenditure for activity "CCM 7.6 Instal-
lation, maintenance and repair of renewable
energy technologies” is calculated on the
basis of Annex 1, section 1.1.2 and includes
the purchase and lease of solar panels. This is
viewed in relation to the total investments in
"Intangible assets" (excluding goodwill), "Prop-
erty, plant and equipment" and "Right -of-use
assets", cf. notes 3.1-3.3 of AO’s Annual Report
for 2024.
Capital expenditure for activity "CCM 7.7 Acquisi-
tion and ownership of buildings” is calculated on
the basis of Annex 1, section 1.1.2 and includes
all acquisitions and property leases. This is
viewed in relation to the total investments in
"Intangible assets" (excluding goodwill), "Prop-
erty, plant and equipment" and "Right -of-use
assets", cf. notes 3.1-3.3 of AO’s Annual Report
for 2024.
OpEx
Operating expenses for activity "CCM 6.5
Transport by motorbikes, passenger cars and
commercial vehicles" are calculated on the basis
of Annex 1, section 1.1.3. and include all direct
maintenance expenses associated with the
Group’s company cars and other vehicles.
The proportion of operating expenses is calcu-
lated as direct maintenance expenses viewed
in relation to the Group's total maintenance
expenses.
Operating Expenses for activity "CCM 7.6 Instal-
lation, maintenance and repair of renewable
energy technologies” are calculated on the basis
of Annex 1, section 1.1.3. and include all direct
installation and maintenance expenses associ-
ated with the operative administration of own
and leased property.
The proportion of maintenance expenses is
calculated as direct maintenance expenses
viewed in relation to the Group's total mainte-
nance expenses.
Operating Expenses for activity "CCM 7.7 Acqui-
sition and ownership of buildings“ are calcu-
lated on the basis of Annex 1, section 1.1.3. and
include all direct maintenance expenses asso-
ciated with the operative administration of own
and leased property.
The proportion of maintenance expenses is
calculated as direct maintenance expenses
viewed in relation to the Group's total mainte-
nance expenses.
Through cross checking with the Annual Report
for 2024, it has been ensured that there is no
duplication of the components included in the
calculation of revenue, capital expenditure and
operating expenses.
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Social
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Appendix
S1 Own workforce
Working and social conditions are an integrated part of AO’s CSR
(Corporate Social Responsibility) policy.
The employees are the core of AO, and they are crucial to the
company’s success and results. AO is committed to being a
socially responsible business and ensuring that every employee
is satisfied and has the best working conditions.
AO has identified the following key social employee-related
topics as part of our assessment of material sustainability
factors:
· Employee retention and job satisfaction
· Sick leave and workplace accidents
· Skill enhancement and further training
Risks relate to economic downturns and business acquisitions,
which may lead to workforce reductions. To a lesser extent,
risks relate to the potential loss of talented employees and the
challenge of recruiting and developing the necessary resources
and expertise.
Own Workforce
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The employees are the core of AO, and they are crucial
to the company’s success and results.
Through targeted activities in working environment and
employee development, AO strives to create long-term
opportunities. AO focuses on building a dynamic and
flexible workforce capable of adapting to changes and
supporting the company’s ambitions of being an attrac-
tive, inclusive, and socially responsible workplace.
AO’s CHRO is responsible for the implementation of
all HR policies applying to the entire AO Group, unless
anything else is stated.
The measurement of the metrics related to characteris-
tics of own employees is based on the AO Group and is
not validated by an external body other than the assur-
ance provider, unless anything else is stated.
Health and safety
AO actively works to create a safe and healthy work
environment that enhances the company's reputation.
Through strategic workforce planning, compliance
with policies, health programmes, and continuous
evaluations via job satisfaction surveys and workplace
assessments, areas for improvement are identified
to reduce risks associated with work-related stress
and physical safety. AO has implemented preventive
measures, including flexible working arrangements and
mental health initiatives, to help employees achieve a
good work-life balance.
Inclusion through diversity initiatives
Diversity is regarded as a strength that contributes
to innovation and AO’s long-term success. Efforts are
made to ensure equal opportunities for all employees,
regardless of background, to foster a workplace where
all employees feel valued and respected.
Skill enhancement and further training
To minimise risks associated with the loss of key
competencies and ensure long-term competitiveness,
AO offers ongoing talent development, skill enhance-
ment, and further training. This includes both internal
and external training options allowing employees
to pursue professional and personal growth. These
initiatives not only support individual employee
development but also strengthen the company's overall
competencies and resilience.
Risk identification and prevention
AO proactively addresses potential challenges as they are
identified. Implemented measures to mitigate identified
risks include enhanced well-being initiatives, flexible
work arrangements, health programmes, and a clearly
defined code of conduct through guidelines and policies,
such as Ethics & Compliance, which are regularly updated
based on employee feedback and business needs.
Goals and systems
To support AO’s efforts and sustainability goals, a struc-
tured approach to data collection through integrated HR
systems has been established. Using modern systems,
data on employee well-being, retention, sick leave,
workplace accidents, etc., are collected. Systematic data
collection allows the company to precisely identify areas
with potential for improvement and respond quickly to
risks and changes. This ensures that AO’s social efforts
are part of the company’s daily operations.
For instance, AO uses data from job satisfaction surveys
and workplace assessments to improve the work envi-
ronment by identifying stress factors and implementing
specific improvement measures. By analysing retention
data, AO can tailor its development programmes to
ensure that employees have the necessary skills and
motivation to stay with the company long-term.
By working in a structured and data-driven way, AO
ensures that its social sustainability initiatives are effec-
tive and yield long-term results for both employees and
the company. This contributes to creating a sustainable
and inclusive workplace that meets both employee needs
and company goals.
HR activities are managed by a central HR function headed
by AO’s CHRO. The HR function is tasked with the manage-
ment of the material impacts affecting AO’s own workforce.
S1 Own workforce
Impact, risks and opportunities
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Forward-looking efforts
AO prioritises employee well-being, retention, and
development, and will continue to strengthen its
efforts in the identified areas to ensure a workplace
that promotes both well-being and motivation among
employees.
AO is dedicated to advancing its initiatives and
achieving its ambitious social goals so that the
company can maintain a supportive and diverse work
environment that contributes to the sustainable devel-
opment of all employees, the company, and society.
AO takes pride in a strong corporate culture, reflected
in low employee turnover and a commitment to ensuring
health and safety of everyone.
Data collection
AO's HR-related data collection and analysis is designed
to create an accurate, targeted, and ongoing assess-
ment of conditions within the company. AO uses a
combination of quantitative and qualitative methods to
gain a comprehensive understanding of employee well-
being, work environment, diversity, and skill enhance-
ment. This methodology outlines the key practices and
sources for collecting and maintaining employee data.
Data sources and collection
As part of the hiring process, all contract employees,
including trainees, must complete a form with the
personal information necessary for employment. The
collected information is entered into AO’s HR database,
which serves as the central data warehouse for all
employee-related data. The database is continuously
updated with changes, such as start and end dates,
working hours, transfers, management levels, or
contract status.
Additional data sources include direct input from
managers or employees, for instance, in cases of
workplace accidents or extended illness. Data is also
collected through job satisfaction surveys. Data entry
is primarily manual, based on input from managers or employees,
and data is regularly updated throughout the employment period.
Analytical approach
Economic factors and project-based work are considered when
analysing variations in workforce numbers over the reporting
period. Overall workforce planning is done by senior management
based on strategic goals, economic conditions, and the compa-
ny’s vision. Actual figures are periodically compared with budg-
eted targets, including data on any third-party personnel
The HR department monitors the implementation of improve-
ments and adjustments by conducting assessments with the
employees involved and affected. This process ensures that
the changes have achieved the desired outcomes and identifies
whether additional actions are required to meet expectations.
Actions and targets
AO does not have any key actions for 2024 or specific targets, but
is working on actions and setting targets for 2025.
Policies
Policy for Corporate Social Responsibility AO continuously enhances the company’s work environment through regular
monitoring and use of KPIs. AO tracks productivity, employee satisfaction,
and retention rates using annual reports to assess progress. These insights
guide necessary adjustments to AO’s strategies and policies, ensuring AO
remains responsive to both employee needs and business requirements.
To further ensure a safe and dynamic workplace, AO conducts regular assess-
ments of human rights impacts across its operations. These comprehensive
assessments involve employee interviews, policy reviews, and consultations
with stakeholders and experts. The insights gained are used to develop
action plans that mitigate potential risks.
By focusing on these key areas, AO aims to create a dynamic, inclusive, and
sustainable work environment where all employees feel valued, protected,
and supported. Maintaining high standards in reporting and monitoring
enables AO to contribute to the well-being and professional development of
its workforce, ensuring that AO remains a responsible and forward-thinking
employer.
Policy on Respect for Human Rights
Senior Policy
Ethics & Compliance
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Employee retention and job satisfaction
Employee well-being and retention are fundamental
to AO’s success as a company. AO recognises that an
engaged and satisfied workforce not only increases
productivity but also fosters a strong corporate culture
and creates a positive work environment. AO’s approach
to well-being includes both physical and mental health,
balanced working hours, and meaningful opportunities
for personal and professional development.
To ensure retention, AO is focused on building a sustain-
able culture where employees feel valued and respected.
Retention
AO recognises that low employee turnover creates
continuity and forms the foundation for strong team-
work. Therefore, AO has implemented a range of
initiatives aimed at enhancing employee engagement
and creating a work environment where all employees
thrive and feel valued.
AO’s retention strategy includes flexible working
conditions, competitive salary packages with an annual
individual salary review for salaried employees, health
benefits, and extensive opportunities for skill enhance-
ment and further training.
AO continuously evaluates the effectiveness of these
initiatives and adjust them based on employee feed-
back and market developments.
Employee turnover UoM 2024
Number of employees
who have left undertaking Headcount 130
Percentage of employee
turnover % 12.6%
AO’s goal is to remain an attractive workplace where
talented employees choose to stay and contribute to
the group’s success and sustainability.
Working conditions
9
years
3
1
%
1
6
%
1
9
%
3
4
%
M
o
r
e
t
h
a
n
1
0
y
e
a
r
s
6
-
1
0
y
e
a
r
s
3
-
5
y
e
a
r
s
0
-
2
y
e
a
r
s
§ Accounting policy
Employee turnover
The rate of employee turnover is calculated
as the number of employees who left volun-
tarily or due to dismissal, retirement, or
death in service during the reporting period
to the headcount at the end of the reporting
period.
Seniority amongst
our employees is
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Conditions of employment
All AO employees have employment contracts that
clearly state their rights and obligations. Salaried
employees and workers paid by the hour are covered by
collective agreements. Managers’ employment terms are
governed by the National Salaried Employees Act and
are aligned with the collective agreement for salaried
employees regarding parental leave, additional vacation
days, and child sickness leave. All employees are enti-
tled to five weeks of paid vacation according to national
law, and to legally permitted absences due to, for
example, illness, parental leave, adoption, or compul-
sory military service in accordance with national law.
AO pays a fair wage to their employees in line with
national legislation, market trends and agreements
with trade unions.
All employees are covered by social protection, through
public programs in both Denmark, Sweden and Norway.
AO respects employees' rights to organise and to
engage in collective bargaining.
Collective bargaining
agreements UoM 2024
Percentage of total
employees covered by collec-
tive bargaining agreements % 88.7%
Percentage of own employees
covered by collective
bargaining agreements - by
country with significant
employment (in the EEA) % 100.0%
To foster trust and open communication regarding
working conditions, AO has made the company guide-
lines and policies accessible to all employees on the
company intranet and in the employee handbook.
Additionally, AO has implemented an e-learning portal,
'AO Campus', where all new employees complete
mandatory e-learning courses, including the "Ethics and
Compliance' course, which helps protect and safeguard
employees against discrimination, harassment, and
unsafe working conditions.
AO has established a whistleblower system, an effec-
tive grievance and feedback mechanism that is exter-
nally managed, allowing employees to report issues
without fear of retaliation. Through the company’s
'Learning Universe' on the intranet, employees are
informed about the company's training strategy and
their opportunities to develop their skills and compe-
tencies through courses and continuing training and
education.
In AO’s occupational health and safety organisation, a
key focus is on safety protocols to minimise risks and
prevent injuries.
By focusing on these elements, AO is committed to
providing a socially responsible and supportive work
environment that not only promotes employee well-
being throughout their careers but also enhances the
company’s overall performance and reputation.
Health services
All employees can enrol in a health insurance plan
that provides quick and professional assistance for
treatment or diagnosis of discomfort, illness, or injury.
In addition, an EarlyCare programme is offered, where
employees who are on sick leave or at risk of taking sick
leave can receive support for treatment.
Job satisfaction
AO puts value in sharing knowledge and information
with its employees.
With a focus on improving working conditions and
ensuring high job satisfaction, AO conducts regular
job satisfaction surveys where employees can provide
feedback to the company. These surveys are followed
§ Accounting policy
Collectives bargaining agreements
Data consists of full-time, part-time and temporary
employees (students + maternity substitute), at
the end of the reporting period.
The split between employees covered and not
covered by collective bargaining agreements, is
determined by the position of the employee. All
managers with staff responsibility are not covered.
No assumptions are made.
Metric for the employees covered by country is for
employees located in Sweden. Non-employees are
covered under Danish legislation, market trends
and agreements with trade unions, through the
external bureau the non-employees are employed
with.
The social protection through the public programs
cover sickness, unemployment, employment
injury and acquired disability, parental leave and
retirement.
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by action plans, and based on them, improved mea-
sures are implemented to meet employees' needs and
preferences.
By combining job satisfaction initiatives with a clear
code of conduct and employee involvement, AO fosters
a workplace community built on trust, respect, and
engagement. This supports AO’s goal of creating a
workplace where everyone feels valued and motivated
to contribute to the company’s success.
Flexible work arrangements
The company offers flexible working hours and the
option to work from home to support a healthy work-
life balance. The flexibility policy is outlined in the
employee handbook and available on the company
intranet.
In cases of long-term illness, the goal is to bring the
employee back to work in a safe, swift, and considerate
way. Employees are offered a gradual return-to-work
plan with hours adapted to their individual recovery,
ensuring they can return to work with confidence.
To support employees approaching retirement, AO has a
senior policy that allows employees to plan their retire-
ment well in advance. This ensures that their roles can
be individually tailored to accommodate abilities and
preferences in the later stages of their careers.
Employee involvement
AO continuously promotes employee involvement and
transparency through regular updates via the company
intranet, kick-off meetings, team, and department
meetings, as well as virtual presentations covering
topics such as company performance (financial review).
IT security, training opportunities and e-learning
courses.
AO actively involves employees in shaping and
improving company processes, often through project-
based initiatives and evaluations of new systems.
AO’s goals and results are communicated in part
through mandatory reports, ensuring the maintenance
of stakeholder trust. This strengthens the shared
understanding of the company’s goals and reinforces its
culture, which brings the organisation closer together.
AO assesses the effectiveness of its engagement with
its own workforces through regular job satisfaction
surveys, direct communication channels, and work-
place assessments (APVs), i.e. also with regard to
previous remedies provided and Works Council.
Family-related leave UoM Female Male Total
Percentage of employees entitled to take family-related leave % 100% 100% 100%
Total of entitled employees that took family-related leave by
gender No. 17 36 53
Percentage of entitled employees that took family-related leave
by gender % 6.0% 4.8% 5.2%
§ Accounting policy
Family-related leave
Data consists of full-time, part-time, temporary
employees (students + maternity substitutes), at
the end of the reporting period.
Data collection is done in HR systems and is
reviewed and approved by employee managers.
Additional data registration is done in government
systems required by law.
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Works Council
AO has not entered into an agreement with its
employees to set up a European Works Council.
According to the Danish rules for works councils, which
are set out in the Cooperation Agreement between the
Confederation of Danish Employers and the Danish
Confederation of Trade Unions (now merged into the
Danish Trade Union Confederation), companies with
more than 35 employees must establish a works
council.
AO has therefore set up a Works Council, which meets
every two months. The Works Council consists of six
management representatives and six employee repre-
sentatives, the latter being elected by the employees.
Employee representatives are elected from among
employees within the Danish parent company, without
managerial responsibilities for a term of two years.
Minutes of Works Council meetings are made available
to Danish employees through AO’s intranet.
Workers'
representatives UoM DK SWE
Percentage of
employees in each
country with signifi-
cant employment (in
the EEA) covered by
workers' represent-
atives % 100% 100%
The Works Council ensures mutual information-sharing
and dialogue about workplace matters, both actual and
potential impacts, so that management and employees
can achieve a common understanding, thereby
promoting a positive workplace culture and efficient
operations. Employees can contact their workers’ repre-
sentatives and ask them to bring up issues at the Work
Council meetings.
Employees who may be particularly vulnerable to
impacts and/or who are marginalised will usually
contact AO’s HR department regarding special needs –
either directly or through their immediate manager. The
HR department will strive to find acceptable solutions
to any problems.
Employee representatives in the Board of Directors
AO’s Board of Directors consists of eight members,
three of whom are employee representatives elected by
the employees for a term of four years. The employee
representatives ensure that employees have a direct
voice in the top management of the company. The
employee representatives are, among other things,
involved in identifying and assessing actual and poten-
tial impact on AO’s workforce. Thus, AO’s employees
can influence decisions that directly affect their work
environment, working conditions, setting targets and
the company's future development.
Approximately six ordinary board meetings are held
each year.
Employee code of conduct
AO’s code of conduct, including guidelines and policies
for employees, defines and establishes the expected
behaviour in both internal and external situations. As
part of their onboarding, all new employees are required
to complete a mandatory online course with information
about AO’s culture.
The e-learning course on ethics and compliance clari-
fies expectations regarding employees’ ethical behav-
iour and actions.
All employees are expected to act in accordance with this
code of conduct, respecting AO’s principles and commit-
ments regarding health and safety, discrimination,
anti-corruption and bribery, environment, data protec-
tion, etc. Managers are responsible for ensuring the
implementation and adherence to the code of conduct.
§ Accounting policy
Workers’ representatives
Data consists of full-time, part-time and temporary
employees (students + maternity substitutes), at
the end of the reporting period.
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Sick leave and workplace accidents
Ensuring a safe and healthy work environment is
one of AO's top priorities. Low absence rates and the
prevention of workplace accidents are essential for AO
employees' well-being and the overall efficiency of the
company.
AO is continually working on developing preventive
measures, which include safety training, ergonomic
improvements, health programmes and regular risk
assessments. Through systematic follow-up and
analysis of the causes of absence and accidents, AO can
identify areas for improvement and implement targeted
actions. In this way, AO can promote a work environ-
ment where safety and health are central, and where all
employees thrive and feel secure.
Sick leave management
AO places a strong focus on sick leave management,
with a policy aimed at supporting an early and proac-
tive approach to help retain employees who are on sick
leave and, to the largest extent possible, support their
return to work as quickly as possible.
Through the company’s EarlyCare programme, the
organisation and/or an employee who is on sick leave
or at risk of taking sick leave can contact EarlyCare
and speak with Health Guides who can offer treatment
assistance. Early intervention can minimise the risk
of illness developing into a long-term absence. The
employee is provided with a personal Health Guide who
closely follows and supports them through consultations
and offers additional treatment options if needed. The
Health Guide supports the person throughout the entire
process. The goal is to help the employee return to work
in a safe, quick, and successful manner.
In addition, employees have the option to enrol in the
company’s health insurance, which gives them quick
and professional access to treatment or assessment if
they experience discomfort, illness, or injury. This insur-
ance also covers the employee's child or children, and
employees can opt to extend the insurance to their spouse,
partner, or registered partner at a favourable rate.
AO conducts regular workplace assessments (APVs),
which allow employees to provide feedback on their
physical and psychological working conditions. Action
plans are developed based on the feedback, enabling
ongoing improvements and the implementation of both
existing and new safety protocols to protect employees
from injury and stress.
Health and safety
AO has implemented ergonomic workstations and
robotic technology in its warehouses to reduce physical
strain. In other company functions, ergonomic work-
spaces have been introduced to prevent work-related
ailments.
Workplace accidents
AO prioritises employee safety and protection, in
part through AO's occupational health and safety
committee, which continuously works to prevent
accidents by updating and establishing new standards
and policies to safeguard employees. The committee
actively addresses safety challenges in the workplace,
especially in high-risk areas such as logistics and
stores. It provides safety briefings to management and
conducts regular audits in departments and stores to
identify and address potential safety risks.
The health and safety committee implements regular
safety training for all employees, including refresher
courses, to maintain awareness of best practices. Interac-
tive workshops and hands-on exercises are held to ensure
proper equipment use and risk management. Procedures
are updated regularly to keep employees informed and
equipped with the necessary knowledge to work safely.
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§ Accounting policy
Health and safety management system
Data consists of full-time, part-time, temporary
employees (students + maternity substitutes) and
non-employees (substitutes) in storage facilities,
end of the reporting period.
Health and safety incidents
Data consists of full-time, part-time, temporary
employees (students + maternity substitutes) and
non-employees (substitutes) in storage facilities,
end of the reporting period.
Incidents are recorded with specific information
required for formal registration to the labor and
welfare authority
Days lost is exclusive non-employees (substitutes)
in storage facilities
Accidents in the workplace are reported through the
health and safety committee, which receives informa-
tion about incidents and reports them to the public
authorities via a safety management system.
AO’s goal is to establish a zero-accident culture, partly
through risk assessments of work processes to identify
potential hazards and initiate preventive actions. This
approach enhances employee awareness, engagement,
and accountability, fostering a culture of safe be-
haviour. The target for 2025 is to reduce our rate of
recordable work-related accidents by 20% compared
to 2024, consisting of our own employees and non-em-
ployees combined.
Health and safety incidents UoM DK SWE 2024
Number of fatalities in own workforce as result of work-related injuries and work-re-
lated ill health No. 0 0 0
Number of fatalities as result of work-related injuries and work-related ill health of
other workers working on undertaking's sites No. 0 0 0
Number of recordable work-related accidents for own workforce No. 20 0 20
Number of recordable work-related accidents for non-employees No. 4 0 4
Rate of recordable work-related accidents for own workforce Rate 12.3 0,0 12.3
Rate of recordable work-related accidents for non-employees Rate 30.6 0,0 30.6
Number of cases of recordable work-related ill health of employees No. 0 0
Number of days lost to work-related injuries and fatalities from work-related acci-
dents, work-related ill health and fatalities from ill health related to employees No. 48 0 48
Health and safety
management system UoM 2024
Percentage of people in
its own workforce who
are covered by health
and safety management
system based on legal
requirements and (or)
recognised standards or
guidelines % 100%
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Equal treatment and
opportunities for all
Skill enhancement and further training
AO’s strategy for skill enhancement is an investment in
our employees and in the company’s future success and
sustainability.
Enhancing skills and providing further training and
education are crucial for AO to remain competitive and
adapt to ever-changing market needs. AO’s employees
are central to its success, and the company invests
in their professional development to enhance both
individual and organisational competencies. AO encour-
ages ongoing learning as an integral part of its culture
and offers a wide range of educational opportunities.
Skill enhancement is considered an opportunity for AO
to increase our employees’ skills and knowledge.
AO invests in training programmes and courses that
allow employees to develop their skills, expand their
competencies, and grow professionally. For example,
AO offers a course in pipe-laying techniques with the
possibility of advancing to a training course on the
construction of sewerage systems, specialised IT
courses, and continuing education such as a graduate
diplomas. Unskilled warehouse workers are offered a
skills assessment, enabling them to pursue a training
programme in warehouse and terminal operations and
thereby become skilled workers.
As part of AO’s social responsibility and commitment
to the future workforce, AO prioritises hiring trainees
across all company functions. Through the company’s
trainee programme, AO provides young people with
hands-on learning, professional development, and
mentorship programmes that help them build the skills
and experience needed for a successful career. This
initiative is part of AO’s social responsibility and an
important step toward supporting the future workforce,
while also creating a talent pipeline for the company.
AO views it as its duty to contribute to youth employ-
ment and development and work actively to foster a
supportive learning culture. By participating in the
training of young people, AO supports both its own
business goals and society’s need for a skilled work-
force, creating value for all involved.
To prepare managers for their roles and promote AO’s
values, managers are offered a company-tailored lead-
ership programme at academy level, developed with a
global and societal focus, closely following trends and
values in leadership and management.
Due to the company’s size, many employees advance or
change roles within AO over the course of their careers -
both horisontally and vertically.
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§ Accounting policy
Development and training
Data consists of full-time, part-time and temporary
employees (students + maternity substitutes), at
the end of the reporting period.
Performance and career
development reviews
All employee performance and development
reviews is registered, allowing tracking of the total
of completed, ongoing and planned reviews.
Training hours
Data is combined from 2 data sources.
First source: AO internal education system with
mandatory and voluntary training courses.
Second source: Manual tracking of external educa-
tion and courses.
The total hours from both sources is used to calcu-
late the average training hours.
Development and training UoM Female Male Total
Percentage of employees that participated in regular perfor-
mance and career development reviews % 18.2% 19.6% 19.2%
Average number of training hours per person for employees Avg. 5.0 9.0 7.9
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Diversity and Inclusion
AO recognises that diversity contributes to creating
a dynamic and innovative workplace. Through the
company’s ethics and compliance policies, AO actively
promotes diversity with a focus on respecting human
rights. AO strives to foster an inclusive environment at
all levels, attracting and retaining talented employees
from diverse backgrounds and cultures. The company
offers equal opportunities regardless of ethnicity, race,
religion, age, gender, disability, sexual orientation,
political views, or social status. In addition, AO has a
policy for increasing the underrepresented gender at
the company’s other management levels.
AO views an inclusive environment as key to achieving
long-term success and works continuously to ensure
that its workplace reflects these values.
Human rights
AO complies with and upholds fundamental inter-
national human rights standards, including the UN
Universal Declaration of Human Rights, the core prin-
ciples on human rights as described in the UN Guiding
Principles on Business and Human Rights, the EU
Convention on Human Rights, and the basic conventions
adopted by the International Labour Organization (ILO),
which is an agency of the UN dealing with labour issues.
AO’s policy for respect for human rights specifically
addresses the right to freely associate, organise, and
engage in collective bargaining. AO does not tolerate
forced labour, child labour, or discrimination. All
employees are required to complete a training course
about discrimination, part of the full ethics and compli-
ance course. AO’s policies do not address trafficking
in human beings as AO complies with national and local
rights and EU legislation.
AO’s policy for respect for human rights and supplier
code of conduct, which are part of AO’s broader sustain-
ability strategy set out by the ESG Council, apply to
all employees and business partners, ensuring that
respect for human rights is upheld naturally throughout
the company.
Discrimination, human rights etc. UoM 2024
Number of incidents of discrimination No. 0
Number of complaints filed through channels for people in own workforce to raise concerns No. 0
Number of complaints filed to National Contact Points for OECD Multinational Enterprises No. 0
Amount of fines, penalties, and compensation for damages as result of incidents of discrimina-
tion, including harassment and complaints filed Amount 0
Number of severe human rights issues and incidents connected to own workforce No. 0
Number of severe human rights issues and incidents connected to own workforce that are
cases of non respect of UN Guiding Principles and OECD Guidelines for Multinational Enter-
prises No. 0
Amount of fines, penalties, and compensation for severe human rights issues and incidents
connected to own workforce No. 0
§ Accounting policy
Discrimination, human rights etc.
Data consists of full-time, part-time, temporary
employees (students + maternity substitutes) and
non-employees (substitutes) in storage facilities,
at the end of the reporting period.
Data collection is from AO's whistleblower system,
formal complaints given to own manager or to HR.
All formal complaints are registered regardless of
channel. Incidents can only be counted if a formal
complaint has been made through the whistle-
blower system, through the employees' own
manager or through HR.
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Equal treatment
AO has developed policies and set clear goals to
support diversity in recruitment and career develop-
ment. AO strives to ensure a diverse and supportive
workplace where equal treatment and opportunities
are central to its values.
§ Accounting policy
Workers’ representatives
Data consists of full-time, part-time and temporary
emplyees (students + maternity substitutes), at
the end of the reporting period.
§ Accounting policy
Gender distribution at top management
Data consists of members of the Executive Board
and the Group Management. Diversity split and
number of members is disclosed at the end of the
reporting period.
Gender distribution at top management UoM Female Male Total
Gender distribution in number of employees (head count) at top
management level Headcount 3 7 10
Gender distribution in percentage of employees at top manage-
ment level % 30.0% 70.0% 100%
AO is focused on creating a work environment that
promotes respect, continuous professional growth,
and engagement for all employees, regardless of
background, gender, or personal circumstances. This
is key to attracting and retaining talented employees.
Pay-gap UoM 2024
Gender-pay gap (male vs
female) % 20.4%
Remuneration UoM 2024
Annual total remuneration
ratio Ratio 23.2
Non-employees UoM 2024
Number of non-employees in
own workforce FTE 65
Number of non-employees in
own workforce - self-employed
people FTE 0
Number of non-employees
in own workforce - people
provided by undertakings
primarily engaged in employ-
ment activities FTE 0
Age groups UoM 2024
Distribution of employees
(head count) under 30 years old Headcount 182
Distribution of employees
(head count) between 30 and
50 years old Headcount 436
Distribution of employees
(head count) over 50 years old Headcount 411
The gender pay gap reflects historical sector factors in the
industry in which AO operates, where more men histori-
cally have pursued careers within the construction sector
and make up the majority of the talent pool, which is
evident in our leadership levels and throughout the organ-
isation. Many of AO’s diversity initiatives aim to balance
gender representation in leadership and throughout the
organisation and achieve pay equity for equal qualifica-
tions and jobs. Although AO practices equal pay for equal
work, the overall figures are affected by the gender imbal-
ance in the sector. Without these sector-specific impacts,
our gender pay data reflects equality.
§ Accounting policy
Full time equivalent (FTE)
The total number of hours worked divided by the
standard number of hours for a full-time employee.
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§ Accounting policy
Pay-gap
Data consists of full-time, part-time, temporary
employees (students + maternity substitutes), for the
whole reporting period. Data used for the calculation
is a "full salary package" i.e. salary, bonus, holiday
pay, pension, benefits. Calculation is based on the
difference of average pay levels between female and
male employees, expressed as percentage of the
average pay level of male employees (data includes
all employees ’ gross hourly pay level).
Remuneration ratio
Data consists of full-time, part-time, temporary
employees (students + maternity substitutes), for the
whole reporting period. Calculation is based on the
highest paid individual to the median annual total
remuneration for all employees (excluding the high-
est-paid individual). Data used for the calculation is a
"full salary package" i.e. salary, bonus, holiday pay,
pension, benefits.
Non-employees
Data consists of non-employees (substitutes) in storage
facilities, at the end of the reporting period.
Age groups
Data consists of full-time, part-time, temporary
employees (students + maternity substitutes), at the
end of the reporting period.
Employees UoM Female Male Total
Number of employees (head count) Headcount 285 744 1,029
Number of employees (FTE) FTE 249 732 981
Permanent employees UoM Female Male Total
Number of employees (head count) Headcount 268 701 969
Number of employees (FTE) FTE 232 689 921
Temporary employees UoM Female Male Total
Number of employees (head count) Headcount 17 43 60
Number of employees (FTE) FTE 17 43 60
Employees by country UoM Female Male Total
Denmark Headcount 274 697 971
Norway Headcount 3 5 8
Sweden Headcount 8 42 50
*This table covers S1-6 and SBM-1
§ Accounting policy
Employees
Data consists of full-time, part-time and temporary
employees (students + maternity substitutes), at the
end of the reporting period.
Permanent employees
Data consists of full-time and part-time employees, at
the end of the reporting period.
Temporary employees
Data consists of students and maternity substitutes, at
the end of the reporting period.
Employees by countries
Data consists of full-time, part-time and temporary
employees (students + maternity substitutes), at the
end of the reporting period.
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Governance
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AO is committed to conducting its business responsibly
and fairly, with a strong emphasis on partnerships. As
a major player in the Danish construction industry, AO’s
operations span over 400,000 products sourced from
more than 1,000 suppliers, creating both opportunities
and potential risks. Ensuring that the company main-
tains the highest standards of business conduct and
governance is central to AO’s corporate culture, particu-
larly in managing the complexities of international
business value chains.
The company has procedures and systems in place for
reporting misconduct.
In a large and complex business network, there are
inherent risks such as corruption, bribery, harassment,
and participation in an informal economy if not properly
managed. AO actively promotes a culture of integri-
ty and honesty throughout its business, with clear
guidelines and regular training on ethical behaviour.
This includes stringent anti-corruption policies and a
zero-tolerance stance toward unethical conduct. By
setting high standards within AO, it is ensured that both
employees and business partners adhere to best prac-
tices, reducing the risk of improper business practices
infiltrating AO’s operations. The AO culture is promoted
on the company’s internal e-learning environment.
A whistleblower system for both external and internal
has been implemented. Without adequate whistle-
blower protection, individuals may hesitate to report
misconduct due to fear of retaliation. A lack of trust
in whistleblower systems can lead to unreported
incidents, both internally and across the company’s
value chain, increasing the risk of legal violations and
reputational harm. AO is committed to safeguarding
whistleblowers by implementing robust and anonymous
reporting mechanisms. AO ensures that whistleblowers
are protected from any negative consequences, thereby
fostering a culture of openness and accountability.
Extending these practices to AO’s value chain also
strengthens its oversight of suppliers and partners,
allowing AO to detect and address any potential issues
early.
Imposing long payment terms on smaller suppliers
could potentially destabilise their financial health. AO
is committed to fair and responsible supplier relations.
AO prioritises timely payments and equitable terms.
By maintaining fair payment practices, AO not only
supports the sustainability of its suppliers but also
preserve its reputation as a trusted and reliable partner.
AO enforces strict anti-corruption policies and regularly
audits its business practices to ensure compliance with all
relevant laws and ethical standards. Employees and part-
ners are trained on recognising and preventing corrupt
practices, and AO’s systems are designed to prevent
unethical behaviour at all levels of the organisation. By
promoting transparency and ensuring that all decisions
are free from undue influence, AO protects both its repu-
tation and the integrity of its business operations.
AO commits to a culture of honesty, transparency, and
accountability to reduce risks and enhance its relation-
ships with stakeholders, from suppliers to customers
and employees.
Effective governance leads to long-term business
sustainability. By ensuring ethical business conduct,
timely supplier payments, and strong whistleblower
protection, AO creates a more resilient and trustworthy
organisation. These measures also position AO as a
preferred partner in the market, attracting like-minded
businesses and customers who value integrity and
responsible corporate practices.
AO’s approach to business conduct and governance is
centred on maintaining the highest ethical standards,
fostering transparency, and protecting its business
relationships. By mitigating risks related to corruption,
supplier relations, and whistleblower protection, AO
G1 Business Conduct
Impact, risks and opportunities
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upholds its reputation as a fair and responsible player
in the industry, while seizing opportunities to build
stronger, more sustainable partnerships.
Maintaining clear communication about the compa-
ny’s business conduct and corporate culture is key to
AO’s success. AO’s policies not only provide a strong
foundation for how AO operates but also create a
tangible set of guidelines for AO’s employees to follow.
A well-defined code of conduct, backed by mechanisms
for reporting and investigating concerns, is crucial in
fostering transparency and accountability throughout
the organisation.
AO places emphasis on keeping its policies relevant
and up to date, ensuring they remain aligned with
international standards, including UN conventions. AO’s
corporate culture is built on integrity and responsibility,
and it is vital that all employees understand how AO
conducts business and the expectations surrounding
ethical behaviour. By providing clear guidance on these
policies, AO helps employees navigate challenges and
contribute to maintaining AO's reputation as an honest
and responsible business.
In addition to other mandatory courses on, for example,
corruption and bribery, environmental policies, etc,
all new employees are required to complete a training
course on business conduct in AO. The training courses
are expected to be completed during the beginning of
the employment.
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Business practice and ethics
At AO, ethical business practices are at the heart of how
the company operates. To ensure that AO’s business
conduct aligns with its values and those of its partners,
AO has developed a Supplier Code of Conduct. This Code
is a key part of the commercial agreements between AO
and its suppliers, serving as a framework to align expec-
tations regarding business practices and ethics.
The Supplier Code of Conduct outlines essential
provisions for compliance with internationally recog-
nised standards on workers’ rights, human rights,
environmental protection, and the prevention of bribery
and corruption. AO holds both its suppliers and their
subcontractors accountable to these high standards.
In 2024, AO recorded no breaches or instances of
non-compliance with its Supplier Code of Conduct,
reflecting the commitment of our partners to uphold
these values.
The Supplier Code of Conduct has been approved by the
Board of Directors and can be accessed here:
The Supplier Code of Conduct 2024
https://ao.dk/globalassets/download/regnskabsdata
/2024/2024-supplier-code-of-conduct.pdf
In addition to these provisions, while no separate
goals or activities were completed specifically in 2024
regarding workers’ rights, human rights, or anti-corrup-
tion, AO remains observant. AO continues to monitor
and assess its practices to identify areas for further
action as needed.
In the fall of 2023, AO initiated an ESG Supplier Survey
to screen all its suppliers. This screening is part of
AO’s ongoing effort to strengthen risk management
and enhance its due diligence processes, ensuring that
sustainability and ethical standards are integrated into
every aspect of its operations.
AO believes that strong partnerships with our
customers and suppliers provide the foundation for
focusing on sustainable solutions across its entire
value chain. At AO, the customer is paramount, and this
commitment extends to offering products that meet
high environmental standards. In 2024, AO increased
the percentage of products with ecolabels or prod-
ucts that have undergone life cycle analysis from our
suppliers. This allows AO to support its customers in
making more sustainable choices by prioritising certi-
fied products and engaging with them on these matters.
Looking ahead, AO aims to pass on sustainability
awareness from its suppliers to its customers through
information sharing and expertise training for its staff.
AO also seeks to inspire and encourage its partners to
adopt sustainable solutions. AO will continue to advo-
cate for sustainability through industry associations,
employers’ associations, and in collaboration with
public authorities, contributing to a more sustainable
future in the construction industry.
Tax policy
Taxes play an important role in society and the devel-
opment of the countries in which AO operates. AO
contributes to this by taking on its share of social
responsibility regarding common welfare and sustaina-
bility through tax.
AO pursues a responsible and transparent tax practice
and does not support tax evasion, contribute to tax
speculation, or misuse of tax laws. AO complies with
applicable tax laws and pays the correct taxes and
duties at the appropriate time in the countries in which
AO operates.
AO provides full transparency and openness to both tax
authorities and the company's other stakeholders. The
company has zero tolerance for tax evasion or abuse.
Corporate culture
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Executive Summary
General
Environment
Social
Governance
G1 Business Conduct
Appendix
It must always be possible to explain and defend tax
dispositions.
AO expects its customers, suppliers, and other partners
to have the same view on tax payment as the company.
AO’s tax policy can be viewed here:
Tax Policy 2024
https://ao.dk/globalassets/download/regnskabsdata
/2024/2024-tax-policy-_final.v2.pdf
Payment Practices
AO is committed to fair and transparent payment prac-
tices for all suppliers, regardless of their size including
SMEs. AO ensures that all suppliers, whether SMEs or
large companiesand across all categories, are treated
equally with respect to payment terms, maintaining
consistent conditions. AO’s payment system is struc-
§ Accounting Policy
Standard payment terms
The Groups standard payment terms are "Current
month plus 60 days." unless other payment terms
are agreed with the supplier.
Payment practices
Payments to suppliers are made twice a week in
accordance with agreed payment terms.
tured to process payments twice a week, with devia-
tions from this schedule occurring only in rare cases.
While AO does not disclose specific details of its
standard payment terms, AO upholds equal treatment
in all supplier transactions. On average, AO can calcu-
late the number of days before payments are processed
through its system, further ensuring timely and reliable
payments to its partners. This approach strengthens
AO’s relationships with suppliers and reinforces its
commitment to responsible business practices.
Payment practices UoM 2024
Average number of days to
pay invoice Days 1.5
Percentage of payments
aligned with standard
payment terms % 94.9%
Number of outstanding
legal proceedings for late
payments No. 0
AO accept reverse factoring as a payment option. This
allows the supplier to be paid within a few days from
delivery.
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Sustainability statements
Strategy Financial statements
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Annual Report 2024
Contents
Executive Summary
General
Environment
Social
Governance
G1 Business Conduct
Appendix
AO has chosen to establish a whistleblower scheme
that allows its employees as well as external stake-
holders to report serious violations or suspicion thereof
in a confidential matter.
Employees are informed about the whistleblower
system and where to access it. Other stakeholders may
access the system through the Group’s websites.
Information about AO’s policy on and usage of the
whistleblower system is available on AO’s intranet and
the Group’s websites. No formal training is conducted or
required to use the reporting system.
The scheme is administered by an independent third
party to secure the anonymity and confidentiality of the
reporting person.
Incidents will be managed by the independent third
party and forwarded to AO where they will be processed
and investigated in accordance with AO’s whistleblower
procedure which is available on AO’s intranet and
various websites.
Zero whistleblower reports have been received in 2024.
Protection of whistleblowers
Once a year, the Board of Directors will assess whether
the scheme is working as intended. In 2024, it was
decided to extend the scheme to include external
stakeholders.
The whistleblower system is an integral part of AO to
prevent, detect and address allegations and incidents
of corruption and bribery.
AO’s whistleblower policy can be viewed here:
Whistleblower Policy 2024
https://ao.dk/om-ao/whistleblower
In brief Performance Corporate governance
Sustainability statements
Strategy Financial statements

Annual Report 2024
Contents
Executive Summary
General
Environment
Social
Governance
G1 Business Conduct
Appendix
82%
of our purchases
originates from Europe
17%
Asia
1%
Other countries
Purchase patterns
of our purchases originates
from Europe
82%
AO complies with applicable legislation and interna-
tional conventions on corporate governance, including
workers’ rights, human rights, environment, bribery,
and corruption, in the countries in which AO operates.
AO maintains a zero-tolerance approach to violations of
these conditions or breaches of rights.
Rules on anti-corruption and bribery are covered by
the company’s own rules and ethical guidelines. In the
company’s view, the countries in which AO does busi-
ness are all well-regulated in respect of these areas.
AO is aware that its dealings with suppliers pose
the most significant risk of infringement or violation
in these areas, primarily due to direct and indirect
purchasing from countries where local legislation is not
followed or enforced to the same degree.
AO regularly monitors purchasing patterns and the
origin of its goods to ascertain the risk of non-compli-
ance with AO’s Supplier Code of Conduct.
Given the current distribution of its purchases, AO is of
the opinion that the company is only at a limited risk of
being indirectly involved in violations of workers’ rights,
human rights and rules on anti-corruption and bribery,
given that AO operates only in well-regulated countries
and that 82% of the company’s purchases originate
(2023: 83%) from Europe.
Corruption and bribery
§ Accounting policy
Purchase origins
Purchase pattern is calcu-
lated as: Total volume of
purchase of goods deter-
mined by country of origin
as informed by suppliers.
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Sustainability statements
Strategy Financial statements

Annual Report 2024
Contents
Executive Summary
General
Environment
Social
Governance
G1 Business Conduct
Appendix
Incidents of corruption or bribery UoM 2024
Number of convictions for violation of anti-corrup-
tion and anti- bribery laws No. 0
Amount of fines for violation of anti-corruption and
anti- bribery laws No. 0
Any actions taken to address breaches in proce-
dures and standards of anti-corruption and
anti-bribery. No. 0
In 2024, AO decided to implement a mandatory online
corruption and bribery course for all employees. The
purpose is to give every employee the necessary know-
ledge on how to act in difficult situations or who to ask
for guidance if there is any confusion or uncertainty. It is
the target that all employees undergo the training within
3 months after joining AO.
No specific process has been established for reporting
on results from investigations of incidents.
Prevention and detection of
corruption and bribery UoM 2024
The percentage of functions-at-risk
covered by training programmes
(Corruption and Bribery) - Passed % 92.0%
Not started / In progress % 8.0%
AO takes business conduct seriously and does not
tolerate violations in relation to corruption and bribery.
§ Accounting policy
Incidents of corruption or bribery
Number of incidents is based on reported inci-
dents that has led to conviction for a violation,
the monetary amount for violation fines and if any
actions was taken.
If any actions are necessary, further details will be
presented.
Functions-at-risk
Functions-at-risk consists of purchasing depart-
ment, sales management & IT management.
Completion rate is stated as of the end of the
period.
In brief Performance Corporate governance
Sustainability statements
Strategy Financial statements

Annual Report 2024
Contents
Appendix
PHOTO
Executive Summary
General
Environment
Social
Governance
Appendix
Appendix
In brief Strategy Performance Financial statements
Sustainability statements
Corporate governance

Annual Report 2024
Contents
Cross-cutting standards
ESRS 2 General disclosures Section/ report Page
BP-1 General basis for preparation of sustainability statements SUS 50
BP-2 Disclosures in relation to specific circumstances SUS 50-51
Datapoints that derive from other EU legislation SUS 112-115
GOV-1
The role of the administrative, management and
supervisory bodies MR 31
GOV-2
Information provided to and sustainability matters
addressed by the undertaking’s administrative,
management and supervisory bodies SUS 53-54
GOV-3
Integration of sustainability-related performance in
incentive schemes SUS 54
GOV-4 Statement on sustainability due diligence SUS 111
GOV-5
Risk management and internal controls over sustainability
reporting SUS 54
SBM-1 Strategy, business model and value chain FS 13
SBM-2 Interests and views of stakeholders SUS 55
SBM-3
Material impacts, risks and opportunities and their
interaction with strategy and business model SUS 56-59
IRO-1
Description of the process to identify and assess material
impacts, risks and opportunities SUS 60-62
IRO-2
Disclosure requirements in ESRS covered by the
undertaking’s sustainability statement SUS 109-111
Environmental standards
ESRS E1 Climate change Section/ report Page
ESRS 2
GOV-3
Integration of sustainability-related performance in
incentive schemes SUS 54
E1-1 Transition plan for climate change mitigation SUS 66-68
ESRS 2
SBM-3
Material impacts, risks and opportunities and their
interaction with strategy and business model SUS 57
ESRS 2
IRO-1
Description of the processes to identify and assess
material climate-related impacts, risks and opportunities SUS 64-65
E1-2
Disclosure Requirement E1-2 – Policies related to climate
change mitigation and adaptation SUS 67-68
E1-3
Disclosure Requirement E1-3 – Actions and resources in
relation to climate change policies SUS 67
E1-4
Targets related to climate change mitigation and
adaptation SUS 67
E1-5 Energy consumption and mix SUS 69
E1-6 Gross Scopes 1, 2, 3 and Total GHG emissions SUS 70
E1-7
GHG removals and GHG mitigation projects financed
through carbon credits - -
E1-8 Internal carbon pricing - -
E1-9
Anticipated financial effects from material physical and
transition risks and potential - -
Executive Summary
General
Environment
Social
Governance
Appendix
In brief Performance Corporate governance
Sustainability statements
Strategy Financial statements

Annual Report 2024
Contents
Social standards
ESRS S1 Own workforce Page
ESRS 2
SBM-2 Interests and views of stakeholders SUS 55, 88
ESRS 2
SBM-3
Material impacts, risks and opportunities and their interaction with
strategy and business model SUS
58,
87-88
S1-1 Policies related to own workforce SUS 88
S1-2
Processes for engaging with own workforce and workers’
representatives about impacts SUS 91-92
S1-3
Processes to remediate negative impacts and channels for own
workforce to raise concerns SUS 90
S1-4
Taking action on material impacts on own workforce, and approaches to
managing material risks and pursuing material opportunities related to
own workforce, and effectiveness of those actions SUS 88
S1-5
Targets related to managing material negative impacts, advancing
positive impacts, and managing material risks and opportunities SUS 88
S1-6 Characteristics of the undertaking’s employees SUS 98-99
S1-7 Characteristics of non-employees in the undertaking’s own workforce SUS 98
S1-8 Collective bargaining coverage and social dialogue SUS 90
S1-9 Diversity metrics SUS 97-99
S1-10 Adequate wages SUS 90
S1-11 Social protection SUS 93-94
S1-12 Persons with disabilities - -
S1-13 Training and skills development metrics SUS 96
S1-14 Health and safety metrics SUS 94
S1-15 Work-life balance metrics SUS 91
S1-16 Remuneration metrics (pay gap and total remuneration) SUS 98
S1-17 Incidents, complaints and severe human rights impacts SUS 97
Environmental standards
ESRS E2 Pollution Section/ report Page
ESRS 2
IRO-1
Description of the processes to identify and assess
material pollution-related impacts, risks and opportunities SUS 56, 74
E2-1 Policies related to pollution SUS 74-75
E2-2 Actions and resources related to pollution SUS 75
E2-3 Targets related to pollution SUS 75
E2-4 Pollution of air, water and soil - -
E2-5
Substances of concern and substances of very high
concern SUS 75-76
E2-6
Anticipated financial effects from pollution-related
impacts, risks and opportunities - -
Environmental standards
ESRS E5 Resource use and circular economy Section/ report Page
ESRS 2
IRO-1
Description of the processes to identify and assess
material resource use and circular economy-related
impacts, risks and opportunities SUS 57, 77
E5-1 Policies related to resource use and circular economy SUS 77
E5-2
Actions and resources related to resource use and circular
economy SUS 78
E5-3 Targets related to resource use and circular economy SUS 78
E5-4 Resource inflows SUS 78
E5-5 Resource outflows SUS 78-79
E5-6
Anticipated financial effects from resource use and
circular economy-related impacts, risks and opportunities - -
Executive Summary
General
Environment
Social
Governance
Appendix
In brief Performance Corporate governance
Sustainability statements
Strategy Financial statements

Annual Report 2024
Contents
Executive Summary
General
Environment
Social
Governance
Appendix
Executive Summary
General
Environment
Social
Governance
Appendix
Governance standards
ESRS G1 Business conduct Section/ report Page
ESRS 2
GOV-1
The role of the administrative, supervisory and
management bodies MR 31
ESRS 2
IRO-1
Description of the processes to identify and assess
material impacts, risks and opportunities SUS 61-62
G1-1 Business conduct policies and corporate culture SUS 103
G1-2 Management of relationships with suppliers - -
G1-3 Prevention and detection of corruption and bribery SUS 106-107
G1-4 Incidents of corruption or bribery SUS 107
G1-5 Political influence and lobbying activities - -
G1-6 Payment practices SUS 104
Statement on sustainability due diligence
Core elements of due diligence Section/ report Page
1
Embedding due diligence in governance,strategy and
business model General 50-54
2
Engaging with affected stakeholders in all key steps
of the due diligence General
50,
52-55,
61
3 Identifying and assessing adverse impacts
General
Environment
Social
Governance
56-62,
66, 74,
77, 87,
101
4 Taking actions to address those adverse impacts Environment 67, 78
5
Tracking the effectiveness of these efforts and
communicating
Environment
Social 67, 75,
78, 88
In brief Performance Corporate governance
Sustainability statements
Strategy Financial statements

Annual Report 2024
Contents
Executive Summary
General
Environment
Social
Governance
Appendix
Executive Summary
General
Environment
Social
Governance
Appendix
EU legislation data points
Disclosure
requirement Datapoint Sustainability statements
SFDR
reference
Pillar 3
reference
Benchmark
regulation
reference
EU Climate
Law
reference Section Page
ESRS 2
GOV-1 21 (d) Board's gender diversity MR 33-35
ESRS 2
GOV-1 21 (e) Percentage of board members who are independent MR 33-35
ESRS 2
GOV-4 30 Statement on due diligence SUS 111
ESRS 2
SBM-1 40 (d) i Involvement in activities related to fossil fuel activities Not relevant -
ESRS 2
SBM-1 40 (d) ii Involvement in activities related to chemical production Not relevant -
ESRS 2
SBM-1 40 (d) iii Involvement in activities related to controversial weapons Not relevant -
ESRS 2
SBM-1 40 (d) iv
Involvement in activities related to cultivation and production of
tobacco Not relevant -
ESRS E1-1 14 Transition plan to reach climate neutrality by 2050 SUS 66-67
ESRS E1-1 16 (g) Undertakings excluded from Paris-aligned Benchmarks Not relevant -
ESRS E1-4 34 GHG emission reduction targets SUS 69-70
ESRS E1-5 38
Energy consumption from fossil sources disaggregated by sources (only
high climate impact sectors) Not relevant -
ESRS E1-5 37 Energy consumption and mix SUS 69
ESRS E1-5 40-43
Energy intensity associated with activities in high climate impact
sectors Not relevant -
ESRS E1-6 44 Gross Scope 1, 2, 3 and Total GHG emissions SUS 70
ESRS E1-6 53-55 Gross GHG emissions intensity SUS 70
In brief Performance Corporate governance
Sustainability statements
Strategy Financial statements

Annual Report 2024
Contents
Executive Summary
General
Environment
Social
Governance
Appendix
Executive Summary
General
Environment
Social
Governance
Appendix
Disclosure
requirement Datapoint Sustainability statements
SFDR
reference
Pillar 3
reference
Benchmark
regulation
reference
EU Climate
Law
reference Section Page
ESRS E1-7 56 GHG removals and carbon credits Not material -
ESRS E1-9 66 Exposure of the benchmark portfolio to climate-related physical risks Not material -
ESRS E1-9
66 (a);
66(c)
Disaggregation of monetary amounts by acute and chronic physical
risk; Location of significant assets at material physical risk Not material -
ESRS E1-9 67 (c)
Breakdown of the carrying value of its real estate assets by energy-effi-
ciency classes Not material -
ESRS E1-9 69 Degree of exposure of the portfolio to climate-related opportunities Not material -
ESRS E2-4 28
Amount of each pollutant listed in Annex II of the E-PRTR Regulation
emitted to air, water and soil Not material -
ESRS E3-1 9 Water and marine resources Not material -
ESRS E3-1 13 Dedicated policy Not material -
ESRS E3-1 14 Sustainable oceans and seas Not material -
ESRS E3-4 28 (c) Total water recycled and reused Not material -
ESRS E3-4 29 Total water consumption in m
3
per net revenue on own operations Not material -
ESRS 2
SBM-3 - E4 16 (a) i Not material -
ESRS 2
SBM-3 - E4 16 (b) Not material -
ESRS 2
SBM-3 - E4 16 (c) Not material -
ESRS E4-2 24 (b) Sustainable land / agriculture practices or policies Not material -
ESRS E4-2 24 (c) Sustainable oceans / seas practices or policies Not material -
ESRS E4-2 24 (d) Policies to address deforestation Not material -
ESRS E5-5 37 (d) Non-recycled waste SUS 79
EU legislation data points – continued
In brief Performance Corporate governance
Sustainability statements
Strategy Financial statements

Annual Report 2024
Contents
Executive Summary
General
Environment
Social
Governance
Appendix
Disclosure
requirement Datapoint Sustainability statements
SFDR
reference
Pillar 3
reference
Benchmark
regulation
reference
EU Climate
Law
reference Section Page
ESRS E5-5 39 Hazardous waste and radioactive waste SUS 79
ESRS 2
SBM-3 - S1 14 (f) Risk of incidents of forced labour Not relevant -
ESRS 2
SBM-3 - S1 14 (g) Risk of incidents of child labour Not relevant -
ESRS S1-1 20 Human rights policy commitments SUS 97
ESRS S1-1 21
Due diligence policies on issues addressed by the fundamental Interna-
tional Labor Organisation Conventions 1 to 8 87-88
ESRS S1-1 22 Processes and measures for preventing trafficking in human beings SUS 97
ESRS S1-1 23 Workplace accident prevention policy or management system SUS
87,
93-94
ESRS S1-3 32 (c) Grievance/complaints handling mechanisms SUS 93-94
ESRS S1-14
88 (b) and
(c) Number of fatalities and number and rate of work-related accidents SUS 94
ESRS S1-14 88 (e) Number of days lost to injuries, accidents, fatalities or illness SUS 94
ESRS S1-16 97 (a) Unadjusted gender pay gap SUS 98
ESRS S1-16 97 (b) Excessive CEO pay ratio SUS 98
ESRS S1-17 103 (a) Incidents of discrimination SUS 97
ESRS S1-17 104 (a) Non-respect of UNGPs on Business and Human Rights and OECD Not relevant -
ESRS 2
SBM-3 - S2 11 (b) Significant risk of child labour or forced labour in the value chain Not material -
ESRS S2-1 17 Human rights policy commitments Not material -
ESRS S2-1 18 Policies related to value chain workers Not material -
EU legislation data points – continued
In brief Performance Corporate governance
Sustainability statements
Strategy Financial statements

Annual Report 2024
Contents
Executive Summary
General
Environment
Social
Governance
Appendix
Disclosure
requirement Datapoint Sustainability statements
SFDR
reference
Pillar 3
reference
Benchmark
regulation
reference
EU Climate
Law
reference Section Page
ESRS S2-1 19
Non-respect of UNGPs on Business and Human Rights principles and
OECD guidelines Not material -
ESRS S2-1 19
Due diligence policies on issues addressed by the fundamental Interna-
tional Labor Organisation Conventions 1 to 8 Not material -
ESRS S2-4 36
Human rights issues and incidents connected to its upstream and
downstream value chain Not material -
ESRS S3-1 16 Human rights policy commitments Not material -
ESRS S3-1 17
Non-respect of UNGPs on Business and Human Rights, ILO principles or
and OECD guidelines Not material -
ESRS S3-4 36 Human rights issues and incidents Not material -
ESRS S4-1 16 Policies related to consumers and end-users Not material -
ESRS S4-1 17
Non-respect of UNGPs on Business and Human Rights and OECD
guidelines Not material -
ESRS S4-4 35 Human rights issues and incidents Not material -
ESRS G1-1 §10 (b) United Nations Convention against Corruption Not material -
ESRS G1-1 §10 (d) Protection of whistle- blowers SUS 105
ESRS G1-4 §24 (a) Fines for violation of anti-corruption and anti-bribery laws SUS 107
ESRS G1-4 §24 (b) Standards of anti- corruption and anti-bribery SUS 106-107
EU legislation data points – continued
In brief Performance Corporate governance
Sustainability statements
Strategy Financial statements

Annual Report 2024
Financial
statements
118 Consolidated financial statements
170 Parent company financial statements
200 Statements
Annual Report 2024

Consolidated
financial statements
Financial statements
Sustainability statementsCorporate governancePerformanceStrategyIn brief
Annual Report 2024

Contents
Consolidated financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Parent company financial statements
Primary statements
Income statement
Statement of comprehensive income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
1 Basis of preparation
1.1 Accounting policies
1.2 Significant estimated uncertainties and
assumptions
2 Income statement
2.1 Segment information
2.2 Cost of sales
2.3 Other operating income
2.4 External expenses
2.5 Staff costs
2.6 Depreciation and amortisation
2.7 Tax on profit or loss for the year
3 Invested Capital
3.1 Intangible assets
3.2 Property, plant and equipment
3.3 Right-of-use assets and lease liabilities
3.4 Inventories
3.5 Trade receivables
3.6 Earnings per share
3.7 Corporation tax receivable/payable
3.8 Deferred tax
3.9 Other payables
4 Capital Structure and financing
4.1 Equity
4.2 Financing activities
4.3 Financial risks
4.4 Financial income
4.5 Financial expenses
5 Other notes
5.1 Business combinations
5.2 Contingent liabilities, security, etc.
5.3 Share based remuneration
5.4 Related parties
5.5 Subsequent events
5.6 New accounting regulation
Consolidated financial statements
Financial statements
Sustainability statementsCorporate governancePerformanceStrategyIn brief
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Annual Report 2024
Contents
Consolidated financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Parent company financial statements
Income statement
For 1 January – 31 December
DKK millions Note 2024 2023
Revenue 2.1 5,429.3 5,261.0
Cost of sales 2.2 (4,179.4) (4,028.7)
Gross profit 1,249.9 1,232.3
Other operating income 2.3 16.4 2.0
Gross margin 1,266.3 1,234.3
External expenses 2.4 (331.1) (310.7)
Staff costs 2.5 (569.2) (518.3)
Earnings before interest, taxes, depreciation
and amortisation (EBITDA) 366.0 405.3
Depreciation and amortisation 2.6 (119.9) (113.1)
Operating profit or loss (EBIT) 246.1 292.2
Financial income 4.4 12.3 3.3
Financial expenses 4.5 (48.3) (33.7)
Profit or loss before tax (EBT) 210.1 261.8
Tax on profit or loss for the year 2.7 (46.7) (55.7)
Net profit or loss for the year 163.4 206.1
Earnings per share 3.6
Earnings per share (EPS) 6.0 7.6
Diluted earnings per share (EPS-D) 6.0 7.6
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Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Parent company financial statements
Statement of comprehensive income
For 1 January – 31 December
DKK millions Note 2024 2023
Other comprehensive income
Net profit or loss for the year 163.4 206.1
Items which will be reclassified to the income statement
Foreign currency translation adjustment relating
to foreign entities (4.1) 1.0
Tax on other comprehensive income 0 0
Other comprehensive income after tax (4.1) 1.0
Total comprehensive income 159.4 207.1
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Parent company financial statements
Balance sheet as at 31 December
Assets
DKK millions Note 2024 2023
Non-current assets
Intangible assets 3.1
Goodwill 757.5 508.5
Intellectual property rights 63.9 44.6
Software 106.6 82.9
928.0 636.1
Property, plant and equipment 3.2
Land and buildings 941.9 832.3
Leasehold improvements 15.2 15.5
Fixtures and operating equipment 254.7 222.0
Right-of-use assets 3.3 91.1 99.8
1,302.9 1,169.6
Other non-current assets
Other investments 0.2 0.2
0.2 0.2
Total non-current assets 2,231.1 1,805.9
DKK millions Note 2024 2023
Current assets
Inventories 2.2, 3.4 814.5 757.4
Trade receivables 3.5 608.2 542.8
Joint tax contribution 16.4 0
Other receivables 36.5 20.6
Prepayments and accrued income 25.3 26.2
Cash and short-term deposits 55.4 89.5
Total current assets 1,556.3 1,436.5
Total assets 3,787.4 3,242.4
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Parent company financial statements
Balance sheet as at 31 December
Equity and liabilities
DKK millions Note 2024 2023
Equity 4.1
Share capital 28.0 28.0
Reserve for foreign currency translation adjustments (11.7) (7.6)
Retained earnings 1,436.0 1,349.9
Proposed dividend for the financial year 84.0 105.0
Total equity 1,536.3 1,475.3
Non-current liabilities
Deferred tax 3.8 83.2 70.1
Credit institutions 4.2 643.6 398.7
Lease liabilities 3.3, 4.2 93.7 66.4
Other non-current liabilities 11.1 0
Total non-current liabilities 831.6 535.2
DKK millions Note 2024 2023
Current liabilities
Credit institutions 4.2 278.9 109.3
Lease liabilities 3.3, 4.2 31.8 36.8
Trade payables 4.2, 4.3 1,036.8 1,006.6
Joint tax contribution 0 8.4
Corporation tax payable 3.7 8.2 3.1
Provisions for liabilities 3.9 0.5 0.5
Other payables 3.9 63.3 67.2
Total current liabilities 1,419.5 1,231.9
Total liabilities 2,251.1 1,767.1
Total equity and liabilities 3,787.4 3,242.4
Segment information 2.1
Contingent liabilities, security, etc. 5.2
Notes without reference 5.3-5.6
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Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Parent company financial statements
Cash flow statement
DKK millions Note 2024 2023
Cash flow from operating activities
Operating profit or loss (EBIT) 246.1 292.2
Depreciation and amortisation 2.6 119.9 113.1
Other non-cash operating items, net 3.5 3.4
Cash flow from operations before change in working capital 369.5 408.7
Change in inventories (2.4) 99.7
Change in receivables (65.0) 84.6
Change in trade payables and other current payables (11.7) (191.0)
Change in working capital (79.1) (6.7)
Cash flow from operations 290.4 402.0
Financial income received 12.3 3.3
Financial expenses paid (48.3) (33.7)
Corporation tax paid (55.2) (25.2)
Cash flow from operating activities 199.2 346.4
DKK millions Note 2024 2023
Cash flow from investing activities
Purchase of intangible assets (44.1) (33.9)
Purchase of property, plant and equipment (116.2) (94.8)
Sale of other non-current assets 0 0
Acquisition of enterprise 5.1 (305.1) (1.5)
Cash flow from investing activities (465.4) (130.2)
Cash flow from financing activities
Change of debt to credit institutions 16.0 (76.4)
Raising of loans from credit institutions 359.7 92.7
Repayment of lease liabilities (41.7) (35.3)
Dividends paid (101.9) (142.7)
Cash flow from financing activities 232.1 (161.7)
Cashflow for the year (34.1) 54.5
Cash and short-term deposits at beginning of year 89.5 35.0
Cash and short-term deposits at end of year 55.4 89.5
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Parent company financial statements
Consolidated statement of changes in equity
DKK millions
Share
capital
Foreign
currency
translation
adjustment
Proposed
dividend for
the year
Retained
earnings Total equity
Equity at 1 January 2024 28.0 (7.6) 105.0 1,349.9 1,475.3
Net profit for the year 0 0 84.0 79.4 163.4
Foreign currency translation adjustment 0 (4.1) 0 0 (4.1)
Total comprehensive income 0 (4.1) 84.0 79.4 159.4
Dividend distribution 0 0 (101.9) 0 (101.9)
Dividend, treasury shares 0 0 (3.1) 3.1 0
Sharebased remuneration 0 0 0 3.5 3.5
Total transactions with owners 0 0 (105.0) 6.6 (98.4)
Equity at 31 December 2024 28.0 (11.7) 84.0 1,436.0 1,536.3
Equity at 1 January 2023 28.0 (8.6) 147.0 1,241.1 1,407.5
Net profit for the year 0 0 105.0 101.1 206.1
Foreign currency translation adjustment 0 1.0 0 0 1.0
Total comprehensive income 0 1.0 105.0 101.1 207.1
Dividend distribution 0 0 (142.7) 0 (142.7)
Dividend, treasury shares 0 0 (4.3) 4.3 0
Sharebased remuneration 0 0 0 3.4 3.4
Total transactions with owners 0 0 (147.0) 7.7 (139.3)
Equity at 31 December 2023 28.0 (7.6) 105.0 1,349.9 1,475.3
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Basis of preparation
Income statement
Invested capital
Capital structure and financing
Other notes
Parent company financial statements
Basis of preparation
Section 1
1.1 Accounting policies
1.2 Significant estimated uncertainties and judgements
Financial statements
Sustainability statementsCorporate governancePerformanceStrategyIn brief

Annual Report 2024
Contents
Consolidated financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Basis of preparation
Income statement
Invested capital
Capital structure and financing
Other notes
Parent company financial statements
Section 1
1.1 Accounting policies
Brødrene A & O Johansen A/S is a limited company domi-
ciled in Denmark. The financial part of the annual report for
the period 1 January to 31 December 2024 comprises both
the consolidated financial statements of Brødrene A & O
Johansen A/S and its subsidiaries (the Group) and separate
annual financial statements for the parent company.
The consolidated financial statements of Brødrene A & O
Johansen A/S for 2024 are presented in accordance with
International Financial Reporting Standards (IFRS) as
adopted by the EU and additional disclosure requirements
in the Danish Financial Statements Act.
On 27 February 2025, the Board of Directors and the Exec-
utive Board discussed and approved the annual report for
2023 for Brødrene A & O Johansen A/S. The annual report
will be presented to the shareholders of Brødrene A & O
Johansen A/S for approval at the annual general meeting on
21 March 2025.
Basis of preparation
The annual report is presented in Danish kroner, rounded
to the nearest DKK 1,000,000. In previuous years amounts
were rounded to the nearest DKK 1,000 so comparison
figures have been restated.
The annual report has been prepared in accordance with
the historical cost principle except financial instruments
presented at fair value.
The accounting policies as described below have been
applied consistently throughout the financial year and
to the comparative figures. For standards implemented
prospectively, the comparative figures will not be restated.
Changes in accounting policies
Effective as of 1 January 2024, Brødrene A & O Johansen
A/S has implemented:
· Classification of Liabilities as Current or Non-current and
Non-current liabilities with covenants – Amendments to
IAS1;
· Lease Liability in a Sale and Leaseback – Amendments to
IFRS 16; and
· Supplier Finance Arrangements – Amendments to IAS 7
and IFRS 7
The changed standards have had no effect on recognition
and measurement in the annual report.
iXBRL reporting
The annual report is published in the European Single
Electronic Format (ESEF), xHTML, that can be opened by all
standard web browsers. The annual report has been tagged
using inline eXtensible Business Reporting Language
(iXBRL) in accordance with the ESEF taxonomy. The
annual report has been submitted in a XHTML document
along with specific technical files all included in the file
5299004B6ZEGVCR9ZR75-2024-12-31- en.zip.
Consolidated financial statements
The consolidated financial statements consist of the parent
company Brødrene A & O Johansen A/S and subsidiaries
in which Brødrene A & O Johansen A/S has a controlling
influence.
The Group has a controlling influence over a company if the
Group is exposed or entitled to variable returns from its
involvement in the company and has the ability to influence
these returns through its control over the company.
In assessing whether the Group exercises a controlling
influence, account is taken of de facto control and potential
voting rights, which are real and have substance at the
balance sheet date.
The consolidated financial statements have been prepared
as a summary of the parent company’s and the individual
subsidiaries’ financial statements, prepared according to
the Group’s accounting policies, with intra-group income
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Basis of preparation
Income statement
Invested capital
Capital structure and financing
Other notes
Parent company financial statements
Section 1
and expenses, shareholdings, internal balances and divi-
dends, as well as realised and unrealised gains on transac-
tions between the consolidated companies, all eliminated.
Business combinations
Newly acquired or newly established companies are
recognised in the consolidated financial statements as of
the date of acquisition. Companies sold or liquidated are
recognised in the consolidated financial statements as of
the date of disposal. Comparative figures are not corrected
for newly acquired companies. Discontinued activities are
presented separately.
The acquisition method is applied when the Group acquires
control over the newly acquired company. The acquired
companies’ identifiable assets, liabilities, and contingent
liabilities are measured at fair value at the acquisition date.
Identifiable intangible assets are recognised if they can be
segregated or arise from a contractual right. Deferred tax is
recognised on the revaluations made.
The acquisition date is the point at which control is actually
gained over the acquired company.
Positive differences (goodwill) between the purchase price
and the fair value of acquired identifiable assets, and the
liabilities and contingent liabilities, are recognised as
goodwill under intangible assets. Goodwill is not amortised
but is tested for impairment at least annually. The first
impairment test is performed before the end of the year of
acquisition.
Upon acquisition, goodwill is allocated to cash-generating
units, which subsequently form the basis for impairment
testing. Negative differences (negative goodwill) are recog-
nised in profit/(loss) for the year as at the acquisition date.
The purchase price for a company consists of the fair value
of the agreed price. If parts of the purchase price are
contingent on future events, this part of the price is recog-
nised at fair value as at the acquisition date and is classi-
fied as either a financial liability or equity according to its
content. A contingent purchase price, which is classified as
a financial liability, is regularly remeasured at fair value and
adjusted directly in the income statement.
Costs attributable to business combinations are recognised
in profit/(loss) for the year when incurred.
If, at the time of acquisition, there is uncertainty about the
measurement of the acquired identifiable assets, liabilities,
and contingent liabilities, initial recognition takes place on
the basis of preliminarily calculated fair values. If subse-
quently it turns out that identifiable assets, liabilities, and
contingent liabilities had a different fair value at the time of
acquisition than first assumed, goodwill is adjusted for up
to 12 months after the acquisition. The effect of the adjust-
ments is recognised in opening equity and the comparative
figures are adjusted.
Gains or losses on the disposal or liquidation of subsidi-
aries are calculated as the difference between the sales
price or the settlement amount, and the carrying amount of
net assets including goodwill at the time of sale and costs
of the sale or liquidation.
Foreign currency translation
A functional currency is set for each of the reporting
companies in the Group. The functional currency is the
currency used in the primary economic environment in
which each reporting company operates. Transactions in
currencies other than the functional currency are foreign
currency transactions. The functional currency of the parent
company is DKK.
Foreign currency transactions are initially translated into
the functional currency at the exchange rate on the trans-
action date.
Receivables, payables, and other monetary items denom-
inated in foreign currencies are translated into the func-
tional currency at the exchange rate at the balance sheet
date. The difference between the exchange rate at the
balance sheet date and the exchange rate at the time of the
occurrence or recognition of the receivable or payable in the
1.1 Accounting policies (continued)
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Basis of preparation
Income statement
Invested capital
Capital structure and financing
Other notes
Parent company financial statements
Section 1
latest annual report is recognised in the income statement
under financial items.
When recognised in the consolidated financial statements
of companies with a functional currency other than Danish
kroner, the income statements are translated at the
exchange rate on the transaction date, and the balance
sheet items are translated at the exchange rates at the
balance sheet date. The average rate for the individual
month in question is used for the exchange rate on the
transaction date to the extent that this does not give a
significantly different picture.
Exchange rate differences arising from the translation of
the equity of these companies at the beginning of the year
at the exchange rates at the balance sheet date and when
translating income statements from average exchange rates
to the exchange rates at the balance sheet date are recog-
nised in other comprehensive income on a separate provi-
sion for exchange rate adjustments under equity.
Exchange rate adjustments of outstanding balances which
are considered part of the total net investment in compa-
nies with a functional currency other than Danish kroner
are recognised in the consolidated financial statements in
other comprehensive income on a separate provision for
exchange rate adjustments under equity.
Description of accounting policies in notes
Descriptions of accounting policies in the notes form part
of the overall description of accounting policies. These
descriptions are found in the following notes:
2.1 Segment information
2.2 Cost of sales
2.4 External expenses
2.5 Staff costs
4.4 Financial income
4.5 Financial expenses
2.7 Tax on profit or loss for the year
3.1 Intangible assets
3.2 Property, plant and equipment
3.3 Right-of-use assets and lease liabilities
3.4 Inventories
3.5 Trade receivables
3.7 Corporation tax receivable/payable
3.8 Deferred tax
4.2 Financing activities
4.3 Financial risks
Accounting policy
Prepayments
Prepayments recognised under assets consist of costs paid
for subsequent financial years and are measured at cost
price.
Equity
Dividend
Proposed dividend is recognised as a liability at the time of
adoption at the annual general meeting. Dividend that is
expected to be paid for the year is shown as a separate item
under equity.
Treasury shares
Acquisition and disposal amounts and dividends for
treasury shares are recognised directly in retained earnings
under equity. Gains and losses on sales are thus not recog-
nised in the income statement.
Proceeds from the sale of treasury shares in connection
with the exercise of share options are recognised directly
in equity.
Reserve for foreign currency translation adjustments
The reserve for foreign currency translation adjustments
consists of exchange rate differences arising on translation
of the financial statements of foreign companies from their
functional currency to DKK.
1.1 Accounting policies (continued)
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Basis of preparation
Income statement
Invested capital
Capital structure and financing
Other notes
Parent company financial statements
Section 1
Accruals and deferred income
Accrued expenses recognised under liabilities consist of
deferred income and are measured at their cost price.
Cash flow statement
The cash flow statement shows cash flows from operating,
investing, and financing activities for the year, the change
in cash and cash equivalents for the year, and cash and
cash equivalents at the beginning and end of the year.
The liquidity effect of business acquisitions and sales is
shown separately under cash flow from investing activities.
Cash flow from acquired companies is recognised in the cash
flow statement from the date of acquisition, and cash flows
from sold companies are recognised up to the point of sale.
Cash flow from operating activities
Cash flows from operating activities are calculated as
profit/(loss) before tax adjusted for non-cash operating
items, changes in working capital, interest received and
paid, and corporate taxes paid.
Cash flow from investing activities
Cash flows from investing activities include payments in
connection with: the purchase and sale of companies and
activities; the purchase and sale of intangible, tangible, and
other non-current assets; and the purchase and sale of secu-
rities that are not included as cash and cash equi valents.
The conclusion of finance leases is considered a non-cash
transaction.
Cash flow from financing activities
Cash flows from financing activities include changes in
the size or composition of share capital and related costs,
as well as the raising of loans, the repayment of inter-
est-bearing debt, the purchase and sale of treasury shares,
and the payment of dividends to shareholders.
Cash flows from assets held under finance leases are recog-
nised as the payment of interest and repayment of debt.
Cash and cash equivalents
Cash and cash equivalents consist of cash and short-term
deposits.
Financial ratios
Financial ratios have been prepared in accordance with IAS
33 and the CFA Society Denmark’s ‘Recommendations and
Financial Ratios’.
When presenting figures, parentheses are used to indicate
negative results and deductions.
1.1 Accounting policies (continued)
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Basis of preparation
Income statement
Invested capital
Capital structure and financing
Other notes
Parent company financial statements
Section 1
1.2 Significant estimated uncertainties and judgements
When calculating the carrying amount of certain assets and
liabilities, estimates are made of how future events affect
the value of these assets and liabilities at the balance sheet
date.
The estimates and assumptions may have a significant
effect on the financial reporting and can be categorised as
significant accounting judgements or significant accounting
estimates and assumptions.
The estimates made are based on historical experience and
other factors that the management considers reasonable
in the circumstances, but which are inherently uncertain
and unpredictable. The assumptions may be incomplete or
inaccurate, and unexpected events or circumstances may
arise. Furthermore, the company is subject to risks and
uncertainties that may cause actual results to differ from
those estimates.
It may be necessary to change previous estimates due to
changes in the circumstances underlying them or due to
new knowledge or subsequent events.
Significant accounting judgements,
estimates and assumptions
Significant accounting estimates and judgements include
assumptions and estimates of the future and other
uncertainty, that could potentially affect the company
within the next 12 months. Estimates that are material to
the financial reporting are made, inter alia, by valuing the
impairment testing of goodwill, receivables, and invento-
ries and by calculating depreciation and impairment.
The following estimates and accompanying assessments
are deemed material for the preparation of the financial
statements:
· Impairment testing for goodwill and other intangible
assets
· Valuation of receivables
· Inventory valuation
· Valuations in connection with business combinations
These estimates and assessments are described in the
following notes:
Note 3.1 Intangible assets
Note 3.4 Inventories
Note 3.5 Trade receivables
Note 5.1 Business combinations
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Basis of preparation
Income statement
Invested capital
Capital structure and financing
Other notes
Parent company financial statements
Income statement
Section 2
2.1 Segment information
2.2 Cost of sales
2.3 Other operating income
2.4 External expenses
2.5 Staff costs
2.6 Depreciation and amortisation
2.7 Tax on profit or loss for the year
Financial statements
Sustainability statementsCorporate governancePerformanceStrategyIn brief

Annual Report 2024
Contents
Consolidated financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Basis of preparation
Income statement
Invested capital
Capital structure and financing
Other notes
Parent company financial statements
Section 2
The Group has activities within the professional B2B segment and the private B2C segment.
The same products are sold to the two segments. The customer base and pricing structure differ signifi-
cantly which is why B2B and B2C have been identified as separate operating segments.
Geographical information
The Group operates primarily in Denmark. International revenue amounts to DKK 549.3m (2023: DKK
377.1m) just above 10% of the total Group's revenue relates to foreign countries. DKK 443.0m (2023:
DKK 338.0m) or 8.2% of the Groups revenue comes from Sweden.
Less than 10% of the book value of the assets of the Group is related to assets outside of Denmark.
Sales channels
Digital as well as physical sales channels are used in connection with the Group's sales. Digtal sales
channels are defined as sales through websites and apps. For 2024 sales through digital sales chan-
nels amount to DKK 2,891.1m (2023: DKK 2,599.2m) while sales through physical sales channels
amount to DKK 2,538.2m (2023: DKK 2,661.8m). In the B2C segment, all sales are considered digital.
Major customers
Just as in 2023, the Group has not traded with any individual customer representing more than 10% of
the Group's total revenue for 2024.
2.1 Segment information
DKK millions B2B B2C Total2024Revenue 4,623.5 805.8 5,429.3Cost of goods sold (3,438.7) (504.7) (3,943.4)Product margin 1,184.8 301.1 1,485.9Distribution (173.0) (60.8) (233.8)Gross margin 1,011.8 240.3 1,252.1Direct expenses (504.7) (168.1) (672.8)EBITDA before indirect expenses 507.1 72.2 579.3Sale of property 14.2Indirect expenses (227.5)EBITDA 366.0Depreciation and amortisation (119.9)EBIT 246.1Financial income and expenses (36.0)EBT 210.1Key figures B2B B2C TotalGross margin % 21.9 % 29.8 % 23.1 %EBITDA (before indirect expenses) % 11.0 % 9.0 % 10.7 %EBITDA % 6.7 %
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Basis of preparation
Income statement
Invested capital
Capital structure and financing
Other notes
Parent company financial statements
Section 2
Accounting policy
Revenue
Revenue consists of the sale of goods that is recognised in the income statement. Revenue is recog-
nised when the control of the individual identifiable delivery obligation is transferred to the customer,
and if the income can be calculated reliably and is expected to be received. Control is transferred
at delivery of the products sold. The recognised revenue is measured at the fair value of the agreed
consideration excluding VAT and taxes, and after the deduction of discounts made in connection with
the sale.
Revenue consists of contracts with a single delivery obligation, and where the individual components
of the transaction price are separately identifiable. There are no material differences in relation to sales
channels or operating segments.
Discounts are deducted from the consideration based on an estimate of the total discounts during the
measurement period.
Customer bonus due to customers is calculated at the time of sale and deducted from the recognised
revenue. Subsequent adjustments to customer bonus is also recognised as revenue.
In the B2C segment sales are mostly done without credit while the Group offers market-conform
payment terms to customers.
Segment information
The Group has activities within the professional B2B segment and the private B2C segment. The two
segments share the same chief operating decision maker but are identified as separate operating
segments in the internal management reporting with separate budgets. Direct expenses are allocated
based on the section of the Group that bears the salaries or the external expenses.
2.1 Segment information (continued)
DKK millions B2B B2C Total2023Revenue 4,658.5 602.5 5,261.0Cost of goods sold (3,427. 4) (38 7.8) (3,815.3)Product margin 1,231.1 214.6 1,445.7Distribution (160.7) (50.7) (211.4)Gross margin 1,070.4 163.9 1,234.3Direct expenses (485.9) (133.2) (619.1)EBITDA before indirect expenses 584.5 30.7 615.2Indirect expenses (209.9)EBITDA 405.3Depreciation and amortisation (113.1)EBIT 292.2Financial income and expenses (30.4)EBT 261.8Key figures B2B B2C TotalGross margin % 23.0 % 27.2 % 23.5 %EBITDA (before indirect expenses) % 12.5 % 5.1 % 11.7 %EBITDA % 7.7 %
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Basis of preparation
Income statement
Invested capital
Capital structure and financing
Other notes
Parent company financial statements
Section 2
2.3 Other operating income
The item includes property rental income. In 2024 other operating income includes a one-time gain of
DKK 14.2m from sale of a property.
2.4 External expenses
DKK millions 2024 2023Remuneration for the auditor elected by the annual general meeting:Total remuneration may be specified as follows:Statutory audit (1.7) (1.4)Tax and VAT related advisory services (0.1) 0Assurance engagements (0.9) 0Other services (0.1) (0.5)Total (2.8) (1.9)
Other assurance engagements' primarily included statutory limited assurance over the sustainability
statements and to a limited degree assurance services related to WEEE declaration. Tax and VAT related
advisory services related to minor advice on general tax and VAT matters. Other services primarily
related to ESG-related advice and advice in connection with mergers within the Group.
Accounting policy
External expenses
External expenses include costs for internal transport, administration, advertising and exhibition
costs, etc., including costs for the operation of real estate and losses to debtors.
2.2 Cost of sales
DKK millions 2024 2023Cost of goods purchased during the year (3,996.0) (3,676.6)Distribution costs (233.8) (211.4)(4,229.8) (3,888.0)Change in inventories:Inventory at the beginning of the year 757.4 866.0Change in inventory during the year (1.3) 10.0Inventory writedown, net 8.0 22.2Inventory at the end of the year 814.5 757.4Change in inventory for the year 50.4 (140.8)Cost of sales for the year (4,179.4) (4,028.8)
Accounting policy
Cost of sales
Cost of sales consists of the cost price of goods sold during the financial year, as well as distribution
costs, which are variable in direct relation to revenue.
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Basis of preparation
Income statement
Invested capital
Capital structure and financing
Other notes
Parent company financial statements
Section 2
The Group only has defined contribution plans.
The increase in FTE's for the Group relates to the acquisitions of Svenska VA-Grossisten, Designkupp
and Workwear Group in 2024.
Accounting policy
Staff costs
Staff costs include salaries and wages to employees, costs related to defined pension contribution
plans, social security costs and other staff expenses such as training and education expenses.
Employee benefits
The Group has entered into agreements to provide defined contribution pension schemes for the
majority of the Group’s employees.
Liabilities relating to defined contribution pension schemes for which the Group regularly pays fixed
pension contributions to independent pension companies are recognised in the income statement
during the period in which they are earned, and payments due are recognised in the balance sheet
under other liabilities.
Restricted stock units are measured at fair value at the date of issue and are recognised in the income
statement under staff costs. The counter item is recognised directly in equity. The fair value of the
granted share options is calculated using the option price model (Black & Scholes).
2.5 Staff costs
DKK millions 2024 2023Wages and salaries (465.3) (417. 3)Pension contributions (41.1) ( 37.7 )Share-based remuneration (3.5) (3.4)Other social security costs (12.0) (9.7)Other staff expenses (3.7) (3.3)Staff costs excl. temporary employees (525.6) (471.4)Wages temporary employees (43.6) (46.9)Staff costs total (569.2) (518.3)Wages and salaries include remuneration for:Board of Directors (3.8) (3.8)Board of Directors total (3.8) (3.8)Executive Board (25.4) (21.6)Share-based remuneration (1.2) (1.4)Pension contributions (1.6) (2.6)Benefits (0.6) (0.8)Executive Board total (28.8) (26.4)Board of Directors and Executive Board total (32.6) (30.2)Average number of full-time employees, incl. temporary employees 968 912Average number of full-time employees 899 841
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Basis of preparation
Income statement
Invested capital
Capital structure and financing
Other notes
Parent company financial statements
Section 2
2.6 Depreciation and amortisation
DKK millions 2024 2023Intangible assets (26.0) (18.7)Property, plant and equipment (52.7) (59.3)Right-of-use assets, external (41.4) (35.3)Gains/losses from the disposal of assets 0.2 0.3Total (119.9) (113.1)
2.7 Tax on profit or loss for the year
DKK millions 2024 2023Current tax for the year (35.7) (49.8)Adjustment related to previous years (0.6) (0.4)Addition from acquisition 0 0(36.3) (50.1)Adjustment of deferred tax for the year (10.2) (6.4)Adjustment of deferred tax for previous years (0.2) 0.8Total (46.7) (55.7)
Tax on profit/loss for the year can be explained as follows:
Calculated tax on profit/loss before tax 45.4 57.0Tax effect of:Non-taxable income (0.8) (0.9)Other non-deductible costs 0.6 0.3Adjustment of tax for previous years 1.6 (0.8)46.7 55.7Effective tax rate 22.2% 21.3%Taxes paid during the financial year (55.2) (25.2)
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Basis of preparation
Income statement
Invested capital
Capital structure and financing
Other notes
Parent company financial statements
Section 2
Accounting policy
Tax on profit/(loss) for the year
Brødrene A & O Johansen A/S is taxed jointly with all Danish subsidiaries as well as with the parent
company Avenir Invest ApS. The full liability is shown in the financial statements of Avenir Invest ApS.
The current Danish corporation tax is distributed by settling joint tax contributions between the jointly
taxed companies in proportion to their taxable income. In connection with this, companies with a tax
loss receive a joint tax contribution from companies that have been able to use these losses to reduce
their own taxable profits. (Full distribution). The jointly taxed companies are included in the Danish Tax
Prepayment Scheme.
Tax for the year, which consists of the current tax for the year and changes in deferred tax, is recognised
in the income statement for tax attributed to profit/(loss) for the year, and in equity for tax attributable
to items directly in equity.
2.7 Tax on profit or loss for the year (continued)
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Basis of preparation
Income statement
Invested capital
Capital structure and financing
Other notes
Parent company financial statements
Invested capital
Section 3
3.1 Intangible assets
3.2 Property, plant and equipment
3.3 Right-of-use assets and lease liabilities
3.4 Inventories
3.5 Trade receivables
3.6 Earnings per share
3.7 Corporation tax receivable/payable
3.8 Deferred tax
3.9 Other payables
Financial statements
Sustainability statementsCorporate governancePerformanceStrategyIn brief

Annual Report 2024
Contents
Consolidated financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Basis of preparation
Income statement
Invested capital
Capital structure and financing
Other notes
Parent company financial statements
Section 3
3.1 Intangible assets
Intellectual property DKK millions Goodwillrights SoftwareCost at 1 January 2024 508.5 70.1 330.4Foreign currency translation adjustment 0 0 0Additions from acquisitions 249.0 22.8 2.2Additions during the year 0 0 44.1Disposals during the year 0 0 (41.4)Cost at 31 December 2024 757.5 92.9 335.2Amortisation and depreciation at 1 January 2024 0 (25.5) (247.5)Foreign currency translation adjustment 0 0 0Amortisation and depreciation for the year 0 (3.5) (22.5)Disposals during the year 0 0 41.4Amortisation and depreciation at 31 December 2024 0 (29.0) (228.6)Carrying amount at 31 December 2024 757.5 63.9 106.6
Intellectual property DKK millions Goodwillrights SoftwareCost at 1 January 2023 499.7 70.1 348.5Foreign currency translation adjustment 0 0 0Additions from acquisitions 0 0 0Additions during the year 8.8 0 33.9Disposals during the year 0 0 (52.0)Cost at 31 December 2023 508.5 70.1 330.4Amortisation and depreciation at 1 January 2023 0 (22.0) (284.3)Foreign currency translation adjustment 0 (0) 0Amortisation and depreciation for the year 0 (3.5) (15.2)Disposals during the year 0 0 52.0Amortisation and depreciation at 31 December 2023 0 (25.5) (247.5)Carrying amount at 31 December 2023 508.5 44.6 82.9
In 2024, additions to goodwill derive from the acquisition of Svenska VA-Grossisten, DesignKupp and
Workwear Group.
Apart from goodwill, all intangible assets are considered to have definite useful lives. No significant
changes have been made in estimates relating to intangible assets. Intellectual property rights relate
to trademarks and domain names related to Billig VVS, Greenline, LampeGuru EA Værktøj, VVSKupp
and Billig Arbejdstøj.
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Basis of preparation
Income statement
Invested capital
Capital structure and financing
Other notes
Parent company financial statements
Section 3Section 3
Goodwill
At 31 December 2024, Management performed an impairment test of goodwill. Separate cash-gener-
ating untis (CGUs) were tested for impairment including an sensitivity analysis for future cash flows.
The carrying amount of goodwill and key assumptions may be specified per CGU in the following way:
Pre-tax Terminal DKK millions Goodwill 2023 GoodwillWACCgrowth rateB2B Denmark 151.6 197.1 10% 1.5%B2B Sweden 47.0 101.3 10% 1.5%B2C 309.9 459.1 10% 2.5%
The applied pre-tax WACC has been reduced to 10% from 12% in 2023 due to decreasing risk-free
interest rates. Terminal growth rates are unchanged for all CGUs.
Goodwill has been allocated to the two operating segments B2B and B2C, which is reflected above. In
addition, goodwill in the B2B segment is futher allocated into Danish and Swedish goodwill in order to
reflect the CGUs.
The recoverable amount is based on the value in use, which is determined by means of expected net cash
flows on the basis of budgets for 2025 and forecasts for 2026-2029 approved by Management, and an
adjusted discount rate of 7.8% (after tax). The applied discount rate reflects the specific risks related to
the Group, including geography, capital structure, etc. The applied terminal growth rate is not expected
to exceed the long-term average growth rate of the markets in which the company operates.
The applied 5-year growth rate and growth in terminal values are not expected to exceed the long-
term average growth rate of the Group's operating segements. For both operating segments profit
margins and market shares are expected to reflect the financial targets of outgrowing the market by 2
percentage points and increasing the EBITDA margin.
By comparing the budgets for the respective Group companies and the expected market development it
has been concluded that the recoverable amount will be consideraby higher than the carrying amount.
Development costs
Development costs are included in "Software". The net value of capitalised development costs may be
illustrated as follows:
DKK millions 2024 2023Work in Work in Consolidated Completedprogress CompletedprogressCost at 1 January 162.2 36.8 133.9 22.3Additions during the year 0 47.5 18.6 24.2Transfer 47.9 (52.1) 9.7 (9.7)Disposal (43.1) 0 0 0Cost at 31 December 167.0 32.2 162.2 36.8Amortisation and depreciation at 1 January (118.3) 0 (103.3) 0Amortisation and depreciation for the year (23.1) 0 (15.0) 0Transfer (12.4) 0 0 0Amortisation and depreciation related to disposals 40.7 0 0 0Amortisation and depreciation at 31 December (113.1) 0 (118.3) 0Carrying amount at 31 December 53.9 32.2 43.9 36.8
3.1 Intangible assets (continued)
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Basis of preparation
Income statement
Invested capital
Capital structure and financing
Other notes
Parent company financial statements
Section 3Section 3
3.1 Intangible assets (continued)
Accounting policy
Intangible assets
Goodwill is initially recognised in the balance sheet at cost price as described under ‘Business combi-
nations’. Goodwill is subsequently measured at cost price less accumulated impairment losses. Good-
will is not amortised.
The carrying amount of goodwill is allocated to the Group’s cash-generating units at the acquisition
date. The determination of cash-generating units follows the management structure and internal finan-
cial management.
Rights are measured at cost price less accumulated amortisation and impairment losses. Rights are
amortised on a straight-line basis over their expected useful life, for a maximum of 20 years.
Software is measured at cost price less accumulated amortisation and impairment losses. Software is
amortised on a straight-line basis over its expected useful life, for a maximum of 10 years.
Impairment of non-current assets
Goodwill and intangible assets with indefinite useful lives are tested annually for impairment, the first
time before the end of the year of acquisition.
The carrying amount of goodwill is tested for impairment together with the other non-current assets in
the cash-generating unit to which goodwill is allocated and is written down over the income statement
if the carrying amount is higher than the recoverable amount.
The recoverable amount is generally calculated as the present value of the expected future net cash
flow from the activity to which goodwill is linked. The impairment of goodwill is recognised in a sepa-
rate item in the income statement.
The carrying amount of the other non-current assets is assessed annually to determine whether there
is any indication of impairment. When such an indication is present, the asset’s recoverable amount is
calculated. The recoverable amount is the asset’s fair value less the expected cost of disposal or net
present value. The net present value is calculated as the present value of expected future cash flows
from the asset or the cash-generating unit which the asset is part of.
An impairment loss is recognised when the carrying amount exceeds the asset’s recoverable amount.
Impairment losses are recognised in the income statement under depreciation.
Impairment losses on goodwill are not reversed. Impairment losses on other assets are reversed to
the extent that changes have occurred in the assumptions and estimates that led to the impairment.
Impairment losses are reversed only to the extent that the new carrying amount does not exceed the
carrying amount after depreciation if an impairment loss has not been recognised for the asset.
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Basis of preparation
Income statement
Invested capital
Capital structure and financing
Other notes
Parent company financial statements
Section 3
Key accounting judgments and estimates
Impairment testing for goodwill and other intangible assets
Impairment testing of goodwill requires significant judgement and estimation, as it involves assessing
whether the carrying value of goodwill remains recoverable based on future economic benefits. Since
goodwill is not amortized but tested annually for impairment, management must evaluate whether
the associated cash-generating units (CGUs) will generate sufficient future cash flows to support the
recorded value of goodwill.
A key judgement lies in defining CGUs and determining how goodwill is allocated to them. This alloca-
tion impacts the impairment assessment, as a CGU’s performance is the basis for determining whether
goodwill remains recoverable. Estimating future cash flows requires assumptions about revenue
growth, profitability, cost structures, and market conditions over a multi-year period, often influenced
by broader economic factors and industry-specific risks.
Another significant estimate is the discount rate applied to projected cash flows, which reflects both
the time value of money and the risk associated with achieving forecasted performance. Given the
inherent uncertainty in long-term projections, small changes in key assumptions, such as future earn-
ings growth, discount rates, or terminal values, can significantly impact the impairment outcome.
Management reviews these estimates annually, adjusting them based on changes in market conditions,
operational performance, and economic forecasts. However, due to the forward-looking nature of
impairment testing, there is always an element of uncertainty, and deviations from projected outcomes
may lead to future impairments.
3.1 Intangible assets (continued)
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Basis of preparation
Income statement
Invested capital
Capital structure and financing
Other notes
Parent company financial statements
Section 3Section 3
3.2 Property, plant and equipment
Leasehold Fixtures and Land and improve- operating DKK millionsbuildingsmentsequipmentCost at 1 January 2024 1,077.5 31.5 603.8Foreign currency translation adjustment (0.7) 0 (0.2)Additions from acquisitions 39.9 0 44.9Additions during the year 87. 2 3.8 25.2Disposals during the year (9.3) (6.2) (45.9)Cost at 31 December 2024 1,194.6 29.1 627.8Amortisation and depreciation at 1 January 2024 (245.2) (16.0) (381.8)Foreign currency translation adjustment 0.2 0 0.2Amortisation and depreciation for the year (11.8) (4.0) (36.8)Disposals during the year 4.1 6.1 45.3Amortisation and depreciation at 31 December 2024 (252.7) (13.9) (373.1)Carrying amount at 31 December 2024 941.9 15.2 254.7
Leasehold Fixtures and Land and improve- operating DKK millionsbuildingsmentsequipmentCost at 1 January 2023 1,032.7 25.8 578.2Foreign currency translation adjustment 0 0 (0.1)Additions during the year 57. 8 5.7 33.0Disposals during the year (13.0) 0 (7.2)Cost at 31 December 2023 1,07 7.5 31.5 603.8Amortisation and depreciation at 1 January 2023 (236.8) (12.2) (353.4)Foreign currency translation adjustment 0 0 0.1Amortisation and depreciation for the year (21.4) (3.8) (34.1)Disposals during the year 13.0 0 5.5Amortisation and depreciation at 31 December 2023 (245.2) (16.0) (381.8)Carrying amount at 31 December 2023 832.3 15.5 222.0
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Basis of preparation
Income statement
Invested capital
Capital structure and financing
Other notes
Parent company financial statements
Section 3Section 3
3.2 Property, plant and equipment (continued)
Specification of land and buildingsYear of Building acqui-area Carrying Mortgage Address Usesition(sqm)amountloansAdministration and central warehouseRørvang 1-9, DK-2620 Albertslund Administration 8,140Rørvang 1-9, DK-2620 Albertslund Central warehouse 29,687Rørvang 11, DK-2620 Albertslund Central warehouse 3,992Herstedvang 9-13, DK-2620 Albertslund Central warehouse 3,694Herstedvang 6, DK-2620 Albertslund Central warehouse 5,674Ølstrupvej 2A, DK-6971 Spjald Central warehouse 6,611Mossvej 2, DK-8700 Horsens Central warehouse 19,167Administration and central warehouse total 76,965 568.8 313.2StoresØstbanegade 169, DK-2100 Østerbro Store 1990 478Rørvang 1-9, DK-2620 Albertslund Store 1990 1,907Gl. Køge Landevej 362, DK-2650 Hvidovre Store 1999 619Håndværkervænget 18-20, DK-2670 Greve Store 1995 713Englandsvej 360, DK-2770 Kastrup Store 1996 437Kokkedal Industripark 42A, DK-2980 Hørsholm Store 2014 702Industrivej 16, DK-3000 Helsingør Store 2013 736Herredsvejen 12, DK-3400 Hillerød Store 2013 751Sigrunsvej 1, DK-3400 Hillerød Store 2024 1,494Centervej 44, DK-3600 Fr.sund Store 2020 700Sandemandsvej 10, DK-3700 Rønne Store 2003 768Københavnsvej 205, DK-4000 Roskilde Store 2022 1,448Industriparken 1, DK-4100 Ringsted Store 2022 864Japanvej 16, DK-4200 Slagelse Store 2014 700Tækkemandsvej 3, DK-4300 Holbæk Store 2000 1,307
Specification of land and buildings (continued)Year of Building acqui-area Carrying Mortgage Address Usesition(sqm)amountloansStores (continued)Valdemarshaab 15, DK-4600 Køge Store 2014 862Holsted Park 6, DK-4700 Næstved Store 2000 1,185Herningvej 23, DK-4800 Nykøbing F Store 2013 700Middelfartsvej 8, DK-5000 Odense Store 2000 1,111Ove Gjeddes Vej 18, DK-5220 Odense SØ Store 2017 800Mandal Alle 5, DK-5500 Middelfart Store 2022 1,343Mønten 5, DK-6000 Kolding Store 1990 1,359Næstmark 21, DK-6200 Aabenraa Store 2005 987Kattegatvej 1, DK-6705 Esbjerg Store 2013 800Ibæk Strandvej 8, DK-7100 Vejle Store 2022 1,564Ibæk Strandvej 12, DK-7100 Vejle Store 2014 702Søren Frichs Vej 24, DK-8000 Århus Store 2004 1,089Tomsagervej 3-7, DK-8000 Århus Store 2022 1,596Jens Juuls Vej 7, DK-8260 Viby Store 2014 700Lillehøjvej 42, DK-8600 Silkeborg Store 2018 800Allégade 40, DK-8700 Horsens Store 1990 1,500Toldbodgade 24, DK-8930 Randers Store 2004 1,337Brodalsvägen 15, SE-433 38 Partille Store and warehouse 2003 1,660Bronsyxegatan 6A, SE-213 75 Malmö Store and warehouse 2000 1,350Total stores 35,069 364.5 129.4Buildings under construction 8.6Land and buildings 112,034 941.9 442.6
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Basis of preparation
Income statement
Invested capital
Capital structure and financing
Other notes
Parent company financial statements
Section 3Section 3
3.2 Property, plant and equipment (continued)
Accounting policy
Property, plant and equipment, including leases
Land and buildings, leasehold improvements, operating equipment, and fixtures and fittings are meas-
ured at their cost price less accumulated depreciation and impairment losses.
The cost price consists of the acquisition price and costs directly related to the acquisition until the
time when the asset is ready for use. The cost price of a total asset is divided into separate compo-
nents, which are depreciated separately if the useful life of the individual component is different.
Subsequent costs, such as when replacing components of a tangible asset, are recognised in the
carrying amount of the asset in question when it is probable that the holding will result in future
economic benefits for the Group. All other general repair and maintenance costs are recognised in the
income statement as they are incurred.
The assets are depreciated on a straight-line basis over their expected useful lives, based on the
following assessment of the expected life of assets:
Buildings: up to 50 years
Installations: 10 years
Leasehold improvements: Maximum 5 years
Fixtures and operating equipment: Normally 5 years.
15 years for mini-load storage systems and high bay systems.
Land is not depreciated.
The basis for depreciation is calculated by taking into account the asset’s scrap value and is reduced
by any impairment losses. The depreciation period and the scrap value are determined at the time of
acquisition and are reviewed annually. If the scrap value exceeds the carrying amount, depreciation
ceases.
Gains and losses on the disposal of property, plant, and equipment are calculated as the difference
between the sale price less selling costs and the carrying amount at the time of sale.
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Basis of preparation
Income statement
Invested capital
Capital structure and financing
Other notes
Parent company financial statements
Section 3Section 3
3.3 Right-of-use assets and lease liabilities
Fixtures and Land and operating Right-of-use assetsbuildingsequipment TotalBalance at 1 January 2024 59.1 40.7 99.8Foreign currency translation adjustment (0.2) (0.2) (0.4)Additions during the year 2.3 25.4 27.7Disposals during the year (0.6) (0.8) (1.4)Remeasurement of lease liability 5.9 0.9 6.8Amortisation and depreciation for the year (24.3) (17.1) (41.4)Carrying amount at 31 December 2024 42.2 48.9 91.1
Fixtures and Land and operating Right-of-use assetsbuildingsequipment TotalBalance at 1 January 2023 65.6 15.1 80.7Foreign currency translation adjustment 0.2 0 0.2Additions during the year 13.1 43.6 56.7Disposals during the year (0.3) (5.8) (6.1)Remeasurement of lease liability 3.3 0.4 3.7Amortisation and depreciation for the year (22.8) (12.6) (35.3)Carrying amount at 31 December 2023 59.1 40.7 99.8
Lease liabilities 2024 2023Maturity of lease liabilities0-1 year 38.4 39.71-5 years 80.1 60.7>5 years 11.9 10.4Total un-discounted lease liabilities at 31 December 130.4 110.8Short-term lease liabilities, less than 1 year 31.8 36.8Long-term lease liabilities, more than 1 year 93.7 66.4Lease liabilities recognised in the balance sheet 125.5 103.2Amounts recognised in the income statementInterest expenses on lease liabilities (1.6) (1.6)Expenses related to low value leasing arrangements (0.3) (0.2)Expenses related to short term leasing arrangements (1.0) (1.6)Depreciation related to right-of-use assets (38.3) (35.3)Total (41.2) (38.7)
In relation to leases, including low-value and short-term leasing arrangements, the Group has paid
DKK 37.0m towards leasing contracts in 2024 (2023: DKK 34.5m). Hereof interest payments related to
leasing liablilities amount to DKK 3.0m (2023: DKK 1.6m) and instalments on leasing liabilities amount
to DKK 41.3m (2023: DKK 35.2m)
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Basis of preparation
Income statement
Invested capital
Capital structure and financing
Other notes
Parent company financial statements
Section 3Section 3
3.3 Right-of-use assets and lease liabilities (continued)
Accounting policy
Leases
Right-of-use assets and lease liabilities are recognised in the balance sheet at the time when a lease
for a specific identifiable asset is made available to the Group for the lease term and when the Group
obtains the right to most of the financial benefits from the use of the identified asset and the right to
decide the use of the identified asset.
On initial recognition, lease liabilities are measured at the present value of future lease payments using
the incremental borrowing rate as the discount factor. The following lease payments are recognised as
part of the lease liability:
· Fixed payments.
· Changes in variable lease payments which fluctuate with changes in an index or interest rate based
on the current index or interest rate.
· Amounts payable under a residual value guarantee.
· The exercise price of call options reasonably certain to be exercised by the Group.
· Payments made in periods covered by an option to extend the lease which the Group is reasonably
certain to exercise.
· Penalties related to a termination option, unless the Group is reasonably certain not to exercise the
option.
Lease liabilities are measured at amortised cost using the effective interest rate method. A remeasure-
ment is made when changes in the cash flow as a result of changes in an index or interest rate is iden-
tified, if the estimate of a residual guarantee is changed or if the Group is changing the assessment of
whether it is reasonably certain to exercise an extension or termination option, or a call option.
Initially right-of-use assets are recognised at cost which is equal to the lease liabilities adjusted for
prepaid lease payments and estimated cost of demolition, repairs etc less received discounts or other
types of incentive payments from lessor.
Subsequently, right-of-use assets are measured at cost less accumulated depreciation. Right-of-use
assets are depreciated over the shorter of the lease term and the useful life of the right-of-use asset.
The depreciation is recognised on a straight-line basis in the income statement.
Adjustments are made to the right-of-use asset in case of changes in the lease liability due to changes
in the conditions of the leases or changes in the cash flow from fluctuations in an index or an interest
rate.
The right-of-use assets are amortised on a straight-line basis over their expected lease periods which
constitute:
Operating equipment 3 – 10 years
Warehouse properties with associated administration 3 – 10 years
Stores 3 – 10 years.
Right-of-use assets and leasing liabilities are presented separately in the Group’s balance sheet.
The Group has chosen not to recognise leases with a term of less than 12 months or a present value of
less than DKK 30,000. Instead lease payments are recognised on a straight-line basis in the income
statement.
Furthermore, the Group has chosen to determine a discount rate on a portfolio of lease agreements
with uniform characteristics.
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Basis of preparation
Income statement
Invested capital
Capital structure and financing
Other notes
Parent company financial statements
Section 3
3.4 Inventories
DKK millions 2024 2023Carrying amount of inventories recognised at net selling price 47.5 42.4
Accounting policy
Inventories
Inventories are measured at cost price, which is calculated on the basis of average prices. If the net
realisable value is lower than the cost price, an impairment loss is made to the net realisable value.
The cost price includes the acquisition price plus the cost of repatriation.
The net realisable value is calculated as the expected sale price less costs to execute the sale and is
determined on the basis of marketability, obsolescence, and expected development in the sales price.
The value of inventories accounted for at fair value is specified in note 3.4 of the annual report.
Key accounting judgments and estimates
Inventories
The estimated uncertainty of inventories relates primarily to slow-moving goods and thus to impair-
ment to the net realisable value.
Impairment requirements are continuously assessed on inventories based on historical sales and the
assessment of future sales.
Supplier bonus
Reporting from suppliers as well as AO’s own records are used when assessing the supplier bonus
that is due to AO. Estimates are used when reporting from suppliers have not been received or when
the reporting from suppliers do not reconcile with AO’s records. Ongoing retrospective reviews are
performed to ensure that supplier bonus is included correctly in the financial statements.
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Basis of preparation
Income statement
Invested capital
Capital structure and financing
Other notes
Parent company financial statements
Section 3
3.5 Trade receivables
Trade receivables consist of sale of goods to business customers which, in essence, have the same
risk profile. Provisions for bad debts are made in accordance with the simplified expected credit loss
model, taking into account AO's credit policy and debt collection procedure. AO has taken up credit
insurance on customers with large balances.
Historically, the Group has incurred no losses on receivables from subsidiaries, and is not expected to
going forward.
Calculated on the basis of a weighted loss ratio, the Group's expected credit losses on trade receiv-
ables are as follows:
Receivable Expected DKK millions Loss ratioamountloss Total2024Not yet due 0.4 % 576.7 (2.4) 574.3Due within 1-30 days 1.2 % 23.3 (0.3) 23.0Due within 31-60 days 28.9 % 3.2 (0.9) 2.3Due in more than 60 days 7 7.7 % 38.6 (30.0) 8.6Total at 31 December 2024 641.8 (33.6) 608.22023Not yet due 0.5 % 512.4 (2.8) 509.6Due within 1-30 days 3.0 % 23.6 (0.7) 22.9Due within 31-60 days 14.8 % 2.8 (0.4) 2.4Due in more than 60 days 83.2 % 47.2 (39.2) 7.9Total at 31 December 2023 586.0 (43.2) 542.8
* Expected losses are shown including VAT.
DKK millions 2024 2023Provision for losses on receivables:Provision for losses on receivables at 1 January excl. VAT 35.0 37.6Realised loss during the year - use of previous provision (15.1) (8.3)Adjustment of provisions for losses 7.1 5.7Provision for losses on receivables at 31 December 27.0 35.0Recognised previously written-off receivables (0.3) (0.3)Losses recognised in the year and not previously provided for 0 0Operating effect, net from loss and provision for losses on receivables 6.8 5.4
Accounting policy
Receivables
Receivables are measured at their amortised cost price. Impairment to counter losses is conducted
according to the simplified expected credit loss model, after which the total loss is recognised immedi-
ately in the income statement at the same time as the receivable is recognised in the balance sheet on
the basis of the expected loss over the total life of the receivable. Intra-group receivables are measured
at the amortised cost price.
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Basis of preparation
Income statement
Invested capital
Capital structure and financing
Other notes
Parent company financial statements
Section 3
3.5 Trade receivables (continued)
Key accounting judgments and estimates
Receivables
Estimates are used when assessing the probability of receivables. Due to the financial situation in
society, the risk of losses on doubtful receivables remains high, which has been taken into account
when assessing new customers, by way of impairment losses at the balance sheet date, and in the
day-to-day governance and control of the receivables as described in note 4.3.
Customer bonus
Estimates are used in relation to the determination of the bonus levels reached on bonus agreements
with a duration of more than one year. The applied estimates are reviewed on an ongoing basis to
ensure a correct valuation of bonus due to customers.
3.6 Earnings per share
DKK millions 2024 2023Net profit or loss for the year 163.4 206.1Average number of shares in circulation 28,000,000 28,000,000Average number of own shares (823,900) (823,900)Average number of shares in circulation 27,176,100 27,176,100The average dilution effect of outstanding RSU's 93,977 54,053Diluted average number of outstanding share options 27,270,077 27, 230,153Earnings per share (EPS) of DKK 1 (DKK) 6.0 7.6Diluted earnings per share (EPS-D) of DKK 1 (DKK) 6.0 7.6
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Basis of preparation
Income statement
Invested capital
Capital structure and financing
Other notes
Parent company financial statements
Section 3
3.8 Deferred tax
DKK millions 2024 2023Deferred tax at 1 January 70.1 64.6Foreign currency translation adjustment 0.3 (0.1)Merger / acquisition of enterprise 3.6 0Change in deferred tax for the year 9.4 6.3Change in deferred tax relating to previous years (0.2) (0.7)Deferred tax at 31 December 83.2 70.1
Deferred tax relates to:
Intangible assets 31.8 27.7Property, plant and equipment 57.7 51.4Receivables/inventory (4.2) (7.6)Liabilities (2.1) (1.5)Tax deficit 0 0Deferred tax at the end of the year 83.2 70.1
3.7 Corporation tax receivable/payable
DKK millions 2024 2023Corporation tax paid on account during the year 8.5 7.3Tax on taxable profit for the year (14.4) (8.6)Tax payable relating to previous years (2.3) (1.8)Total corporation tax receivable/payable (8.2) (3.1)
Accounting policy
Corporation tax
Current tax liabilities and receivables are recognised in the balance sheet as calculated tax on taxable
income for the year, adjusted for tax on previous years’ taxable income and tax paid on account.
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Basis of preparation
Income statement
Invested capital
Capital structure and financing
Other notes
Parent company financial statements
Section 3
Accounting policy
Deferred tax
Deferred tax is measured according to the balance sheet liability method of all temporary differences
between the net asset value and tax value of assets and liabilities. However, deferred tax is not recog-
nised on temporary differences relating to non-deductible goodwill and other items where temporary
differences - other than business acquisitions - have arisen at the time of acquisition without affecting
profit/(loss) or taxable income.
Deferred tax is measured based on the tax rules and at the tax rate that will apply as per the legislation
on the balance sheet date when the tax liability is expected to be triggered as current tax. Changes in
deferred tax as a result of changes in the tax rate are recognised in the income statement.
Deferred tax assets are recognised under non-current assets at the value that is expected to be real-
ised, either by set-off against deferred tax liabilities or by offsetting tax on future earnings.
Deferred tax assets are assessed annually and recognised only to the extent that it is probable that
they will be utilised.
3.8 Deferred tax (continued) 3.9 Other payables
DKK millions 2024 2023Holiday allowance 23.5 19.7Salary-related items 16.0 21.0VAT and taxes 18.4 16.9Frozen holiday allowance 1.4 0Earn out liability 9.7 0Other payables 5.4 9.7Total 74.4 67.2
At the end of 2024, provisions for liabilities were DKK 0.5m (2023: DKK 0.5m). Of other payables DKK
11.1m is classified as non-current on the balance sheet while DKK 63.3m is classified as current.
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Basis of preparation
Income statement
Invested capital
Capital structure and financing
Other notes
Parent company financial statements
Capital structure
and financing
Section 4
4.1 Equity
4.2 Financing activities
4.3 Financial risks
4.4 Financial income
4.5 Financial expenses
Financial statements
Sustainability statementsCorporate governancePerformanceStrategyIn brief
Annual Report 2024

Annual Report 2024
Contents
Consolidated financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Basis of preparation
Income statement
Invested capital
Capital structure and financing
Other notes
Parent company financial statements
Section 4
4.1 Equity
Capital management
The Group regularly assesses the need for adapting the capital structure with a view to balancing a
higher required rate of return on equity with the increased uncertainty associated with loan capital. At
the end of 2024, the equity share of total equity and liabilities amounted to 40.6% (2023: 45.5%). The
target is to obtain an equity ratio of a minimum of 40%. The financial gearing as at December 31 2024
was 2.7 (2023: 1.3). The Group target is to maintain a financial gearing within the range of 1.0 and 2.5.
Capital is managed for the Group as a whole.
The share capital consists of the following classes:
k DKKClass A share capital: 56,400 shares of DKK 100 each 5,640Class B share capital: 22,360,000 shares of DKK 1 each 22,360Total share capital 28,000
Of the Company's share capital of DKK 28,000k DKK 5,640k is in the form of Class A-shares and DKK
22,360k is in the form of Class B-shares. Each Class A-share of DKK 100 carries 1,000 votes whereas
each Class B-share of DKK 1 carries one vote. In addition to the the difference in the number of voting
rights, the two share classes differ in the following respects:
The Class A-shares are non-negotiable securities. The Class B-shares are listed on Nasdaq Copen-
hagen. The Class B-share capital has a preferential dividend right of 6%. In case of liquidation, Class
B-shares take precedence over Class A-shares. As at December 31 2024, there are no outstanding obli-
gations related to preferential dividends to Class B-shares.
An alteration to the Company's Articles of Association requires that two thirds of cast votes and two
thirds of the represented capital at a general meeting are in favour of the alteration.
Holders of Class B-shares are entitled to appoint and elect one member of the Board of Directors, while
holders of Class A shares elect the remaining Board members.
Nomimal value Number of shares(DKK thousands) % of share capitalTreasury shares 2024 2023 2024 2023 2024 20231 January 823,900 823,900 824 824 2.9% 2.9%Holding at 31 December 823,900 823,900 824 824 2.9% 2.9%
There have been no transactions with treasury shares in 2024. According to the authorisation of the
annual general meeting, Brødrene A & O Johansen A/S is allowed to acquire treasury shares up to a total
holding of 10% of the share capital.
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Basis of preparation
Income statement
Invested capital
Capital structure and financing
Other notes
Parent company financial statements
Section 4
4.2 Financing activities
DKK millions 2024 2023Mortgage loans - floating interest rate - 5 years 442.6 421.2Bank loans - floating short-term interest rate 479.8 86.9Lease liabilities - floating interest rate 125.5 103.21,047.9 611.2
Payables relating to financing activities:
Beginning-of-year 611.2 57 7.5Repayment of debt to credit institutions, net 16.0 (76.4)Raising of loans from credit institutions 359.7 92.7Debt from acquisition 38.7 0Addition, lease liabilities, net 64.0 52.7Repayment, lease liabilities (41.7) (35.3)Year-end 1,0 47.9 611.2
According to the leases there are no contingent rents. The contractual cash flows appear from note 4.3.
4.1 Equity (continued)
Dividend
The payment of dividends to the Company's shareholders has no tax implication for Brødrene A & O
Johansen A/S. Proposed dividend for 2024 amounts to TDKK 84,000 corresponding to DKK 3.0 per
share.
Other reserves
Reserve for net revaluation according to the equity method contains value adjustments related to
investments in subsidiaries. Included in reserve for development costs is an amount corresponding to
capitalised intangible assets meeting the criteria for being defined as a development project.
Reserve for net revaluation according to the equity method and reserve for development costs are
unavailable for distribution to shareholders.
Reserve for foreign currency translation adjustment
The reserve for foreign currency translation adjustments includes all translation adjustments that arise
as a result of the translation of the financial statements of entities using a functional currency other
than Danish kroner. There are no translation adjustments in connection with assets and liabilities
constituting a part of the Group's net investment in such entities.
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Basis of preparation
Income statement
Invested capital
Capital structure and financing
Other notes
Parent company financial statements
Section 4
Accounting policy
Financial liabilities
Debt to mortgage-credit institutions and credit institutions is recognised at the time of borrowing at the
value of the proceeds received less transaction costs incurred. In subsequent periods, the financial
liabilities are measured at amortised cost corresponding to the capitalised value using the effective
interest rate, so that the difference between the proceeds and the nominal value is recognised in the
income statement over the loan period.
Other payables, which include debt to suppliers, are measured at their amortised cost price, and other
liabilities at net realisable value.
4.2 Financing activities (continued)
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Basis of preparation
Income statement
Invested capital
Capital structure and financing
Other notes
Parent company financial statements
Section 4
4.3 Financial risks
The Group's risk management policies
As a result of its operations, investments and financing, the Group is exposed to changes in exchange
rates and interest-rate levels. It is Group policy not to engage in any active speculation in financial
risks. The Group's financial management therefore only concentrates on the management of the finan-
cial risks that are directly linked to the Group's operations and financing. Financial risks are managed
centrally by the Group's finance function.
The overall framework for the financial risk management is defined in the Group's finance policy, which
has been approved by the Board of Directors. The finance policy covers the Group's finance policy
as well as its policy relating to credit risks associated with financial counterparties and contains a
description of the approved risk framework. Management monitors the Group's risk concentration on
customers, currencies and other areas on a regular basis.
Currency risks
The Group's currency risk in connection with Danish operations is limited as revenue is generated in
Danish kroner, and goods are primarily purchased in DKK or EUR.
The Group's foreign operations are not much affected by currency fluctuations, as income and
expenses are largely paid in local currency. Consolidated results will be affected by exchange differ-
ences arising on translation of foreign operations' results and on translation of net assets.
The Group uses derivative financial instruments to a very limited extent. The derivative financial instru-
ments consist of forward exchange contracts for the purchase of EUR. At 31 December 2024 there were
no forward exchange contracts, and therefore no further information is provided.
The Group had no significant currency risks relating to receivables or payables in foreign currencies at
31 December 2024, and the consolidated results would therefore not be affected to any major extent by
changes in exchange rates at 31 December 2024.
The Group has the following currency exposure at 31 December:
2024 2023DKK millions EUR OTHER* TOTAL EUR OTHER* TOTALTrade payables 47.1 49.6 96.7 49.4 40.6 90.0Payables to credit institutions 6.6 (19.5) (12.9) (28.1) (74.8) (102.9)Net exposure 53.7 30.1 83.8 21.3 (34.2) (12.9)Risk in exchange rate fluctuation 1% 10% 1% 10%Estimated effect on income statement and equity 0.5 3.0 3.5 0.2 (3.4) (3.2)
* Mainly SEK and NOK
The Group's currency exposure related to financial instruments is primarily a result of the Group's
financing activities .
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Basis of preparation
Income statement
Invested capital
Capital structure and financing
Other notes
Parent company financial statements
Section 4
4.3 Financial risks (continued)
Interest rate risks
As a result of its investing and financing activities, the Group has a risk exposure relating to fluctua-
tions in the interest-rate level in Denmark. The main interest rate exposure is related to fluctuations in
CIBOR.
In 2024, the Group's interest-bearing debt, determined as payables to credit institutions and lease
liabilities less negotiable securities and cash increased by DKK 470.9m to DKK 992.6m at the end of the
year.
Based on the debt, a decrease of one percentage point in the general interest-rate level would result
in a decrease in the Group's annual interest expenses before tax of approximately DKK 10.1m (2023:
approximately DKK 6.1m).
Liquidity risks
In connection with borrowing, it is the Group's policy to ensure the greatest possible flexibility by
spreading the loans on different maturity/renegotiation dates and on different lenders to ensure the
best possible terms. The Group's cash resources comprise cash and short-term deposits, securities and
undrawn credit facilities. It is the Group's aim to have sufficient cash resources in order to make appro-
priate decisions also in connection with unforeseen liquidity fluctuations.
The Group's payables fall due as follows:
Carrying Contractual Less than 1 to More than DKK millionsamountcash flows1 year5 years5 years2024Mortgage loans 442.6 5 67.9 38.1 153.4 376.4Bank loans 479.8 479.8 254.0 225.8 0Lease liabilities 125.5 220.3 60.7 99.0 60.7Trade payables 1,036.8 1,036.8 1,036.8 0 0Total at 31 December 2,084.8 2,304.8 1,389.5 478.2 437.1
2023
Mortgage loans 421.2 582.4 37.4 149.0 396.0Bank loans 86.9 86.9 86.9 0 0Lease liabilities 103.2 110.8 39.7 60.7 10.4Trade payables 1,006.6 1,006.6 1,006.6 0 0Total at 31 December 1,617.9 1,786.7 1,170.6 209.7 406.4
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Basis of preparation
Income statement
Invested capital
Capital structure and financing
Other notes
Parent company financial statements
Section 4
Assumptions regarding the maturity analysis:
· The maturity analysis is based on all undiscounted cash flows, including estimated interest payments
according to contractual basis.
· Interest payments are estimated on the basis of current market conditions.
Based on the Group's expectations for future operations and the Group's current cash resources, no
material liquidity risks have been identified. Agreements containing Supply Chain Finance programmes
have been concluded. The Supply Chain Finance programmes typically has a credit time of two months
longer than comparable financial liabilities. At the balance sheet date liabilities related to Supply
Chain Finance programmes amount to DKK 235.5m (2023: DKK 204.2m) of which DKK 224.9m has
been settled from the third-party finance provider. In the balance sheet the Supply Chain Finance
programmes are classified as trade payables.
Group loans and committed credit facilities are not subject to any special terms or conditions (cove-
nants).
Credit risks
The Group's credit risks relate to receivables and cash and short-term deposits. The maximum credit
risk associated with financial assets corresponds to the values recognised in the balance sheet.
The Group has no material risks relating to individual customers or business partners. Credit rating is
based on an individual assessment of customers and business partners and their respective financial
situation. The management of the credit risk is based on internal credit limits determined according to
the customers' credit rating. As a result of the current market conditions, the Group has amended its
credit limits for a number of customers. If the credit rating of a customer is assessed as being insuffi-
cient, the terms of payment are amended or security is provided.
The Group's credit exposure to customers is monitored on an ongoing basis as part of the Group's risk
management. Of the DKK 608.2m in trade receivables DKK 198.5m are credit-insured thus the maximum
credit risk is was DKK 409.7m at the balance sheet date.
In general, no security has been received for overdue or impaired receivables.
Categories of financial instruments, and methods and assumptions for determining fair values
The carrying amount and fair value of financial instruments are identical with the exception of loans
measured at amortised cost, and where the carrying amount at 31 December 2024 amounts to DKK
1,047.9m (2023: DKK 611.2m) incl. lease liabilities at the end of the year.
The methods and assumptions applied in determining fair values of financial instruments are
presented below for each class of financial instrument. The methods used have not been changed
compared to last year.
The fair value of mortgage debt is determined on the basis of the underlying bonds. Short-term float-
ing-rate bank loans are measured at nominal value.
Trade receivables, cash and short-term deposits, and trade payables are subject to a short credit
period and are considered to have a fair value that corresponds to the carrying amount. No further fair
value information for financial assets is given when the carrying amount is assumed to be a proper
measure of the fair value of the assets.
4.3 Financial risks (continued)
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Basis of preparation
Income statement
Invested capital
Capital structure and financing
Other notes
Parent company financial statements
Section 4
4.3 Financial risks (continued)
Accounting policy
Financial instruments
Derivative financial instruments are recognised on the trade date and measured at fair value in the
balance sheet. Positive and negative fair values of derivative financial instruments are included in
other receivables and other payables, respectively, and the offsetting of positive and negative values
is only made when the company is entitled to and intends to settle several financial instruments net.
Fair values of derivative financial instruments are calculated on the basis of current market data and
recognised valuation methods.
Hedge accounting is only used in connection with currency futures.
4.4 Financial income
DKK millions 2024 2023Interest income from current assets 11.8 3.3Foreign exchange gains, net 0.5 0Total 12.3 3.3
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Basis of preparation
Income statement
Invested capital
Capital structure and financing
Other notes
Parent company financial statements
Section 4
4.5 Financial expenses
DKK millions 2024 2023Interest expenses on liabilities (44.3) (25.5)Expenses, lease liabilities, external (3.3) (1.6)Other interest expenses (0.7) (0.4)Foreign exchange losses, net 0 (6.2)Total (48.3) (33.7)
Accounting policy
Financial income and expenses
Financial income and expenses include interest and realised and unrealised capital gains and losses,
as well as write-downs on securities and debt, the amortisation of financial assets and liabilities,
including supplements and reimbursements under the advance tax scheme, etc.
Borrowing costs from general or specific loans attributable to the construction period of qualifying
assets are recognised at the cost price of the relevant assets.
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Basis of preparation
Income statement
Invested capital
Capital structure and financing
Other notes
Parent company financial statements
Other notes
Section 5
5.1 Business combinations
5.2 Contingent liabilities, security, etc.
5.3 Share based remuneration
5.4 Related parties
5.5 Subsequent events
5.6 New accounting regulation
Financial statements
Sustainability statementsCorporate governancePerformanceStrategyIn brief

Annual Report 2024
Contents
Consolidated financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Basis of preparation
Income statement
Invested capital
Capital structure and financing
Other notes
Parent company financial statements
Section 5
5.1 Business combinations
Svenska VA-Grossisten AB
On May 1 2024 the Group gained 100% control of the Swedish company Svenska VA-Grossisten AB by
acquiring all the shares in the company.
With the acquisition AO expands its operation to the capital area of Sweden and will be a foundation for
geographic expansion of AO Sweden. Svenska VA-Grossisten is a specialist wholesaler within water and
drainage products based in the Stockholm area of Sweden.
In Svenska VA-Grossistens first financial year that ended 31 December 2023 a revenue of DKK 57m and
an EBITDA of DKK 9m was achieved. Had Svenska VA-Grossisten been a part of the Group for the full
year 2024 it would have contributed with a revenue of DKK 74.3m and an EBITDA of DKK 10.8m.
Svenska VA-Grossisten will be a part of AO Sweden and of the B2B segment in AO.
Transaction costs in relation to the acquisition were DKK 0.2m.
The earn out liability is related to future financial performance in the Stockholm area. The earn out
agreement is expeted to be paid in full and the full amount is therefore recognised in the balance sheet
as per 31 December 2024.
The fair value of acquired assets, liabilities and contingent liabilities, and aqusition price for Svenska
VA-Grossisten has been calculated and can be specified as follows:
DKK millions 2024Property, plant and equipment 2.9Inventories 4.3Trade receivables 8.3Other receivables 2.1Cash 6.7Interest-bearing debt including lease liabilities (1.9)Trade payables (8.9)Other payables (4.6)Acquired net assets 8.9Goodwill 53.5Price of acquisition 62.3
Cash paid on acquisition 52.7Cash acquired (6.7)Net cash effect 2024 from aquisition 46.1Earn out liability recognised in balance 9.6
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Basis of preparation
Income statement
Invested capital
Capital structure and financing
Other notes
Parent company financial statements
Section 5
5.1 Business combinations (continued)
Designkupp AS
On June 30 2024 the Group gained 100% control of the Norwegian company Designkupp AS by
acquiring all the shares in the company.
With the acquisition AO gains a leading position in the Norwegian online market for bathroom and
home improvement products. Designkupp operates VVSKupp.no, the leading online store for bathroom
products in Norway.
In the financial year that ended December 31 2023 Designkupp had a revenue of DKK 82m and an
EBITDA of DKK 3m. Had DesignKupp been a part of the Group for the full year 2024 it would have
contributed with a revenue of DKK 75.1m and an EBITDA of DKK 1.4m.
Designkupp will together with AO's existing webshops in Norway form the Norwegian part of AO's B2C
segment.
Transaction costs in relation to the acquisition were DKK 0.4m.
The fair value of acquired assets, liabilities and contingent liabilities, and aqusition price for
Designkupp has been calculated and can be specified as follows:
DKK millions 2024Property, plant and equipment 0.4Inventories 4.4Trade receivables 0.8Other receivables 0.1Cash 4.0Interest-bearing debt including lease liabilities 0Trade payables (6.4)Other payables (1.7)Acquired net assets 1.6Goodwill 43.0Rights 3.4Price of acquisition 48.0
Cash paid on acquisition 48.0Cash acquired (4.0)Net cash effect 2024 from aquisition 44.0
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Basis of preparation
Income statement
Invested capital
Capital structure and financing
Other notes
Parent company financial statements
Section 5
5.1 Business combinations (continued)
Workwear Group ApS
On August 13 2024 the Group gained 100% control of the Danish company Workwear Group ApS by
acquiring all the shares in the company.
With the acquisition AO gains control of a leading player within onlines sales of workwear in Scandi-
navia. Workwear Group operates 10 webshops selling Workwear to B2C customers as well as to compa-
nies. Workwear Group operates out of a modern automated warehouse in Jutland which will be a part of
the Groups future logistics set up.
In the financial year that ended December 31 2023 Workwear Group had a revenue of DKK 240m and an
EBITDA of DKK 22m. Had Workwear Group been a part of the Group for the full year 2024 it would have
contributed with a revenue of DKK 267.3m and an EBITDA of DKK 22.5m.
Transaction costs in relation to the acquisition were DKK 0.7m.
Workwear Group will significantly expand the Groups offering within workwear to B2B and B2C
customers.
The fair value of acquired assets, liabilities and contingent liabilities, and aqusition price for Workwear
Group has been calculated and can be specified as follows:
DKK millions 2024Property, plant and equipment 84.0Inventories 46.2Trade receivables 4.2Deferred tax (2.7)Interest-bearing debt including lease liabilities (68.1)Trade payables (12.5)Other payables (7.1)Acquired net assets 44.0Goodwill 151.6Rights 19.4Price of acquisition 215.0
Cash paid on acquisition 215.0Net cash effect 2024 from aquisition 215.0
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Basis of preparation
Income statement
Invested capital
Capital structure and financing
Other notes
Parent company financial statements
Section 5
5.2 Contingent liabilities, security, etc.
Land and buildings with a total carrying amount of DKK 763.6m (2023: DKK 672.3m) are provided as
security for the Group's payables to mortgage credit institutions and finance lease liabilities.
As a normal part of doing business AO can be invovled in disputes or legal proceedings. The outcome
of pending legal actions is not expected to have any material impact on the financial position of the
Group.
The parent company is jointly taxed with AO Invest A/S and the ultimate Danish parent company Avenir
Invest ApS, which is the administration company for joint taxation purposes. The company and there-
fore the Group is unlimited, jointly and severally liable with other jointly taxed companies towards the
Danish tax authorities for the total corporation tax. Payable corporation taxes within the joint taxation
group amounted to DKK -16.4m at 31 December 2024 (2023: DKK 8.4m).
Any adjustment to the taxable income subject to joint taxation might entail an increase in the Compa-
ny's liability. Group companies are not subject to withholding tax on dividends.
5.3 Share based remuneration
In order to motivate and retain members of the Executive Board and other managers in the Group,
Brødrene A & O Johansen A/S has introduced an incentive programme based on the shares of the
company. The programme is designed to align the interests of the participants of the share programme
with the interests of the shareholders. The intention is to promote long-term value creation in the Group.
In 2024 no new Restricted Stock Units (RSUs) have been granted (2023: 56,935).
The RSUs are measured at fair value at the time of the grant using a Black & Scholes model. The fair value
is recognised as staff costs and equity on a straight line basis over the vesting period of 36 months.
The RSUs can only be settled in shares and no subsequent measurement of the fair value is performed.
The vesting conditions for all RSUs are related to continued employment with the Group.
Restricted Out-Released Granted Out -Fair value Stock Units standing during during standing at the time Vesting 2024RSUs Jan 1the yearthe yearRSUs Dec 31of the grantdateExecutive BoardGrant 2022 44,370 0 0 44,370 4.4 March 2025Executive Board total 44,370 0 0 44,370 4.4
Other employeesGrant 2022 18,468 0 0 18,468 1.8 March 2025January Grant 2023 56,935 0 0 56,935 4,42026Other employees total 75,403 0 0 75,403 6.2Total 119,773 0 0 119,773 10.6
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Basis of preparation
Income statement
Invested capital
Capital structure and financing
Other notes
Parent company financial statements
Section 5
5.4 Related parties
The Group's related parties comprise the parent company Avenir Invest ApS (Axeltorv 2, DK-1607
Copenhagen V, Denmark), the Board of Directors, the Executive Board and management employees.
Avenir Invest ApS has control over the company through its ownership of the majority of the voting
rights. During the year, no transactions were carried out with Avenir Invest ApS apart from payment of
dividends and corporate tax.
During the year, no significant transactions were carried out with the Board of Directors, the Executive
Board, management employees or major shareholders apart from normal management remuneration,
cf. note 2.5, and dividend payments.
5.5 Subsequent events
No events have occurred after 31 December 2024 that are considered to have a material effect on the
annual report for 2024.
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Basis of preparation
Income statement
Invested capital
Capital structure and financing
Other notes
Parent company financial statements
Section 5
5.6 New accounting regulation
At the time of publication of this annual report, IASB has issued the following new and amended finan-
cial reporting standards and interpretations that are not compulsory for Brødrene A & O Johansen A/S in
preparing the annual report for 2024:
· Amendments to IAS 21 - Lack of Exchangeability (effective for annual periods beginning on or
after 1 January 2025)
· Amendments to the Classification and Measurement of Financial Instruments – Amendments to
IFRS 9 and IFRS 7 (effective for annual periods beginning on or after 1 January 2026)
· IFRS 19 Subsidiaries without Public Accountability: Disclosures (effective for annual periods
beginning on or after 1 January 2027)
· IFRS 18 Presentation and Disclosure in Financial Statements (effective for annual periods
beginning on or after 1 January 2027)
None of the standards and interpretations mentioned above have been adopted by the EU.
The adopted standards and interpretations that have not yet come into effect will be implemented
as they become compulsory for Brødrene A & O Johansen A/S. It has been assessed that none of the
above-mentioned standards and interpretations apart from IFRS 18 will affect recognition and meas-
urement for Brødrene A & O Johansen A/S.
Management is currently assessing the detailed implications of applying the new IFRS 18 standard
on the group’s consolidated financial statements. Line items presented on the primary might change
and there may be a change in the definition of operating profit. The group does not expect significant
changes in the information currently disclosed in the notes; however, the way in which the information
is grouped might change. From a cash flow statement perspective, there will be changes to how interest
received and interest paid are presented. Interest paid will be presented as financing cash flows and
interest received as investing cash flows, which is a change from current presentation as part of oper-
ating cash flows.
Financial ratio definitions as recommended by CFA Society Denmark
Gross profit margin (Gross margin / Revenue) * 100
Profit margin (Operating profit or loss (EBIT) / Revenue) * 100
Return on capital employed (EBIT / Average total assets) * 100
Return on equity (Net profit or loss for the year / Average equity) * 100
Net gearing (Net interest bearing debt (NIBD) / EBITDA)
Solvency ratio (Equity / Total assets) * 100
Price Earnings Basic (P/E Basic) Share price at the end of the year / Earnings per share
Earnings per share (EPS Basic), DKK Profit after tax / Average number of shares in circulation
Diluted earnings per share (EPS-D), DKK Profit after tax / Diluted average number of outstanding
share options
Book value Equity at the end of the year / Average number of shares in
circulation
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Parent company
financial statements
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Parent company financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Primary statements
Income statement
Statement of comprehensive income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
1 Basis of preparation
1.1 Accounting policies
1.2 Significant estimated uncertainties
and assumptions
2 Income statement
2.1 Cost of sales
2.2 Other operating income
2.3 External expenses
2.4 Staff costs
2.5 Depreciation and amortisation
2.6 Tax on profit or loss for the year
3 Invested Capital
3.1 Intangible assets
3.2 Property, plant and equipment
3.3 Right-of-use assets and lease liabilities
3.4 Investments in subsidiaries
3.5 Inventories
3.6 Trade receivables
3.7 Deferred tax
3.8 Other payables
4 Capital Structure and financing
4.1 Equity
4.2 Financing activities
4.3 Financial risks
4.4 Financial income
4.5 Financial expenses
5 Other notes
5.1 Contingent liabilities, security, etc.
5.2 Related parties
5.3 Subsequent events
Parent company financial statements
Financial statements
Sustainability statementsCorporate governancePerformanceStrategyIn brief

Annual Report 2024
Contents
Consolidated financial statements
Parent company financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Income statement
For 1 January – 31 December
DKK millions Note 2024 2023
Revenue 4,9 07.7 4,993.4
Cost of sales 2.1 (3,824.3) (3,838.8)
Gross profit 1,083.4 1,154.6
Other operating income 2.2 1.3 1.5
Gross margin 1,084.7 1,156.1
External expenses 2.3 (284.8) (291.1)
Staff costs 2.4 (520.4) (495.1)
Earnings before interest, taxes, depreciation
and amortisation (EBITDA) 279.5 369.9
Depreciation and amortisation 2.5 (153.5) (144.7)
Operating profit or loss (EBIT) 126.0 225.2
Subsidiaries' profit after tax 3.4 80.7 46.4
Financial income 4.4 17.3 3.7
Financial expenses 4.5 (36.4) (26.0)
Profit or loss before tax (EBT) 187.6 249.2
Tax on profit or loss for the year 2.6 (24.2) (43.1)
Net profit or loss for the year 163.4 206.1
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Parent company financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Statement of comprehensive income
For 1 January – 31 December
DKK millions Note 2024 2023
Other comprehensive income
Net profit or loss for the year 163.4 206.1
Items which will be reclassified to the income statement
Foreign currency translation adjustment relating
to foreign entities (4.1) 1.0
Tax on other comprehensive income 0 0
Other comprehensive income after tax (4.1) 1.0
Total comprehensive income 159.4 207.1
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Parent company financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Balance sheet as at 31 December
Assets
DKK millions Note 2024 2023
Non-current assets
Intangible assets 3.1
Goodwill 464.8 464.8
Intellectual property rights 40.7 44.2
Software 104.6 82.9
610.1 591.9
Property, plant and equipment 3.2
Land and buildings 146.7 138.9
Leasehold improvements 16.2 16.5
Fixtures and operating equipment 208.0 219.8
Right-of-use assets 3.3 168.7 196.0
539.6 571.1
Other non-current assets
Investments in subsidiaries 3.4 675.1 349.4
Other investments 0.2 0.3
675.3 349.7
Total non-current assets 1,825.1 1,512.7
DKK millions Note 2024 2023
Current assets
Inventories 2.1, 3.5 721.0 723.9
Trade receivables 3.6 571.6 517.2
Receivables from subsidiaries 3.6 167.5 139.9
Joint tax contribution 26.3 0
Other receivables 31.4 16.2
Prepayments and accrued income 22.3 22.9
Cash and short-term deposits 26.8 46.8
Total current assets 1,566.8 1,466.8
Total assets 3,391.9 2,979.5
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Parent company financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Balance sheet as at 31 December
Equity and liabilities
DKK millions Note 2024 2023
Equity 4.1
Share capital 28.0 28.0
Reserve according to the equity method 284.4 221.8
Reserve for development costs 67. 2 62.9
Reserve for foreign currency translation adjustments 0
Retained earnings 1,072.7 1,057.6
Proposed dividend for the financial year 84.0 105.0
Total equity 1,536.3 1,475.3
Non-current liabilities
Deferred tax 3.7 40.0 32.4
Credit institutions 4.2 306.1 84.4
Lease liabilities 3.3, 4.2 114.9 119.1
Other non-current liabilities 0
Total non-current liabilities 461.0 235.8
DKK millions Note 2024 2023
Current liabilities
Credit institutions 4.2 263.8 95.2
Lease liabilities 3.3, 4.2 57.2 80.2
Trade payables 4.2 979.3 976.9
Amounts owed to subsidiaries 48.3 53.1
Joint tax contribution 0 3.7
Corporation tax payable 0 0
Provisions for liabilities 0.5 0.5
Other payables 3.8 45.6 58.9
Total current liabilities 1,394.6 1,268.4
Total liabilities 1,855.6 1,504.2
Total equity and liabilities 3,391.9 2,979.5
Contingent liabilities, security, etc. 5.1
Notes without reference 5.2 - 5.3
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Parent company financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Cash flow statement
DKK millions Note 2024 2023
Cash flow from operating activities
Operating profit or loss (EBIT) 126.0 225.2
Depreciation and amortisation 2.5 153.5 144.7
Other non-cash operating items, net 3.5 3.4
Cash flow from operations before change in working capital 283.0 373.3
Change in inventories 2.9 101.5
Change in receivables (69.1) 87.9
Change in trade payables and other current payables (9.9) (191.4)
Change in working capital (76.1) (2.1)
Cash flow from operations 206.9 371.3
Financial income received 17.3 3.7
Financial expenses paid (36.4) (26.0)
Corporation tax paid (46.5) (17.5)
Cash flow from operating activities 141.4 331.4
DKK millions Note 2024 2023
Cash flow from investing activities
Purchase of intangible assets (44.1) (33.9)
Purchase of property, plant and equipment (35.9) (40.1)
Change in receivables from subsidiaries (32.5) (51.7)
Dividends received 14.0 34.8
Sale of other non-current assets 0 0
Acquisition of enterprise (263.0) (1.5)
Sale of enterprise 0 0
Cash flow from investing activities (361.5) (92.3)
Cash flow from financing activities
Repayment of debt to credit institutions 70.5 (61.7)
Raising of loans from credit institutions 319.8 92.7
Repayment of lease liabilities (88.4) (80.9)
Dividends paid (101.9) (142.7)
Cash flow from financing activities 200.0 (192.5)
Cashflow for the year (20.0) 46.5
Cash and short-term deposits at beginning of year 46.8 0.3
Cash and short-term deposits at end of year 26.8 46.8
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Parent company financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
DKK millions
Share
capital
Equity
method
Reserve for
development
costs
Proposed
dividend for
the year
Retained
earnings Total equity
Equity at 1 January 2024 28.0 221.8 62.9 105.0 1,057.6 1,475.3
Net profit for the year 0 80.7 84.0 (1.3) 163.4
Movement for the year 0 0 4.3 0 (4.3) 0
Foreign currency translation adjustment 0 (4.1) 0 0 0 (4.1)
Total comprehensive income 0 76.6 4.3 84.0 (5.5) 159.4
Dividend distribution 0 0 0 (101.9) 0 (101.9)
Dividend treasury shares 0 0 0 (3.1) 3.1 0
Dividend received 0 (14.0) 0 0 14.0 0
Sharebased remuneration 0 0 0 0 3.5 3.5
Total transactions with owners 0 (14.0) 0 (105.0) 20.6 (98.4)
Equity at 31 December 2024 28.0 284.4 67.2 84.0 1,072.7 1,536.3
Equity at 1 January 2023 28.0 209.3 41.2 147.0 982.0 1,407.5
Net profit for the year 0 46.4 0 105.0 54.7 206.1
Movement for the year 0 0 21.6 0 (21.6) 0
Foreign currency translation adjustment 0 1.0 0 0 0 1.0
Total comprehensive income 0 47.3 21.6 105.0 33.1 207.1
Dividend distribution 0 0 0 (142.7) 0 (142.7)
Dividend treasury shares 0 0 0 (4.3) 4.3 0
Dividend received 0 (34.8) 0 0 34.8 0
Sharebased remuneration 0 0 0 0 3.4 3.4
Total transactions with owners 0 (34.8) 0 (147.0) 42.5 (139.3)
Equity at 31 December 2023 28.0 221.8 62.9 105.0 1,057.6 1,475.3
Company statement of changes in equity
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Parent company financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Basis of preparation
Income statement
Invested capital
Capital structure and financing
Other notes
Basis of preparation
Section 1
1.1 Accounting policies
1.2 Significant estimated uncertainties and assumptions
Financial statements
Sustainability statementsCorporate governancePerformanceStrategyIn brief

Annual Report 2024
Contents
Consolidated financial statements
Parent company financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Basis of preparation
Income statement
Invested capital
Capital structure and financing
Other notes
Section 1
1.1 Accounting policies
The financial statements of the parent company Brødrene
A & O Johansen A/S for 2024 are presented in accordance
with International Financial Reporting Standards (IFRS) as
adopted by the EU and additional disclosure requirements
in the Danish Financial Statements Act.
The accounting policies of the parent company remain
unchanged from last year. Significant accounting policies
are identical to those applied by the AO Group except for
those mentioned below. A general description of accounting
policies can be found in note 1.1 of the consolidated finan-
cial statements.
Result of investments in subsidiaries
In the parent company’s income statement, the propor-
tionate share of the individual subsidiaries’ profit/(loss)
after tax is recognised after the full elimination of internal
gains/losses.
Investments in subsidiaries in the parent
company’s financial statements
Investments in subsidiaries are measured according to the
equity method.
Investments in subsidiaries are measured at the propor-
tionate share of the companies’ net worth calculated
according to the Group’s accounting policies with the
addition or deduction of unrealised intra-group profits
and losses, and the addition or deduction of the remaining
value of positive or negative goodwill calculated according
to the acquisition method.
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Parent company financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Basis of preparation
Income statement
Invested capital
Capital structure and financing
Other notes
Section 1
1.2 Significant estimated uncertainties
and assumptions
When calculating the carrying amount of certain assets and
liabilities, estimates are made of how future events affect
the value of these assets and liabilities at the balance sheet
date.
The estimates and assumptions may have a significant
effect on the financial reporting and can be categorised as
significant accounting judgements or significant accounting
estimates and assumptions.
The estimates made are based on historical experience and
other factors that the management considers reasonable
in the circumstances, but which are inherently uncertain
and unpredictable. The assumptions may be incomplete or
inaccurate, and unexpected events or circumstances may
arise. Furthermore, the company is subject to risks and
uncertainties that may cause actual results to differ from
those estimates.
It may be necessary to change previous estimates due to
changes in the circumstances underlying them or due to
new knowledge or subsequent events.
Significant accounting judgements, estimates and
assumptions
Significant accounting estimates and judgements include
assumptions and estimates of the future and other uncer-
tainty, that could potentially affect the company within the
next 12 months. Estimates that are material to the financial
reporting are made, inter alia, by valuing the impairment
testing of goodwill, receivables, and inventories and by
calculating depreciation and impairment.
The following estimates and accompanying assessments
are deemed material for the preparation of the financial
statements:
· Impairment testing for goodwill and other intangible
assets
· Valuation of receivables
· Inventory valuation
These estimates and assessments are described in the
following notes:
Note 3.1 Intangible assets
Note 3.5 Inventories
Note 3.6 Trade receivables
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Parent company financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Basis of preparation
Income statement
Invested capital
Capital structure and financing
Other notes
Income statement
Section 2
2.1 Cost of sales
2.2 Other operating income
2.3 External expenses
2.4 Staff costs
2.5 Depreciation and amortisation
2.6 Tax on profit or loss for the year
Financial statements
Sustainability statementsCorporate governancePerformanceStrategyIn brief

Annual Report 2024
Contents
Consolidated financial statements
Parent company financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Basis of preparation
Income statement
Invested capital
Capital structure and financing
Other notes
Section 2
2.2 Other operating income
The item includes property rental income.
2.3 External expenses
DKK millions 2024 2023
Remuneration for the auditor elected by the annual general meeting:
Total remuneration may be specified as follows:
Statutory audit (1.3) (1.2)
Tax and VAT related advisory services (0.1) 0
Other assurance engagements (0.9) 0
Other services (0.1) (0.4)
Total (2.4) (1.6)
Other assurance engagements' primarily included statutory limited assurance over the sustainability
statements and to a limited degree assurance services related to WEEE declaration. Tax and VAT related
advisory services related to minor advice on general tax and VAT matters. Other services primarily
related to ESG-related advice.
2.1 Cost of sales
DKK millions 2024 2023
Cost of goods purchased during the year (3,599.1) (3,502.6)
Distribution costs (203.6) (193.7)
(3,802.7) (3,696.3)
Change in inventories:
Inventory at the beginning of the year 723.9 834.2
Change in cost during the year 13.9 9.9
Inventory writedown, net 4.7 22.3
Inventory at the end of the year 721.0 723.9
Change in inventory for the year (21.6) (142.6)
Cost of sales for the year (3,824.3) (3,838.8)
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Parent company financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Basis of preparation
Income statement
Invested capital
Capital structure and financing
Other notes
Section 2
2.4 Staff costs
DKK millions 2024 2023
Wages and salaries (427.7 ) (400.7)
Pension contributions (37.4) (36.3)
Share-based remuneration (3.5) (3.4)
Other social security costs (5.8) (5.9)
Other staff expenses (3.3) (3.2)
Staff costs excl. temporary employees (477.7) (449.4)
Wages temporary employees (42.7) (45.6)
Staff costs total (520.4) (495.1)
Wages and salaries include remuneration for:
Board of Directors (2.6) (2.6)
Board of Directors total (2.6) (2.6)
Executive Board (25.4) (21.6)
Share-based remuneration (1.2) (1.4)
Pension contributions (1.6) (2.6)
Benefits (0.6) (0.8)
Executive Board total (28.8) (26.4)
Board of Directors and Executive Board total (31.4) (29.0)
Average number of full-time employees incl. temporary employees 884 879
Average number of full-time employees 815 808
The Company only has defined contribution plans.
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Parent company financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Basis of preparation
Income statement
Invested capital
Capital structure and financing
Other notes
Section 2
2.5 Depreciation and amortisation
DKK millions 2024 2023
Intangible assets (25.8) (18.7)
Property, plant and equipment (39.7) (45.4)
Right-of-use assets, external (38.6) (32.9)
Right-of-use assets, subsidiaries (49.8) (48.0)
Gains/losses from the disposal of assets 0.4 0.3
Total (153.5) (144.7)
2.6 Tax on profit or loss for the year
DKK millions 2024 2023
Current tax for the year (16.1) (39.5)
Adjustment related to previous years (0.5) (0.3)
Addition from acquisition 0 0
(16.6) (39.8)
Adjustment of deferred tax for the year (7. 3) (4.1)
Adjustment of deferred tax for previous years (0.3) 0.8
Total (24.2) (43.1)
Tax on profit/loss for the year can be explained as follows:
Calculated tax on profit/loss before tax, not incl. subsidiaries' profits 23.5 44.6
Tax effect of:
Non-taxable income (0.7) (0.9)
Other non-deductible costs 0.6 0.3
Adjustment of tax for previous years 0.8 (0.9)
24.2 43.1
Effective tax rate 22.2% 21.3%
Taxes paid during the financial year (46.5) (17.5)
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Parent company financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Basis of preparation
Income statement
Invested capital
Capital structure and financing
Other notes
Invested capital
Section 3
3.1 Intangible assets
3.2 Property, plant and equipment
3.3 Right-of-use assets and lease liabilities
3.4 Investments in subsidiaries
3.5 Inventories
3.6 Trade receivables
3.7 Deferred tax
3.8 Other payables
Financial statements
Sustainability statementsCorporate governancePerformanceStrategyIn brief

Annual Report 2024
Contents
Consolidated financial statements
Parent company financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Basis of preparation
Income statement
Invested capital
Capital structure and financing
Other notes
Section 3
3.1 Intangible assets
DKK millions Goodwill
Intellectual
property
rights Software
Cost at 1 January 2024 464.8 68.5 330.4
Foreign currency translation adjustment 0 0 0
Additions from acquisitions 0 0 0
Additions during the year 0 0 44.1
Disposals during the year 0 0 (41.4)
Cost at 31 December 2024 464.8 68.5 333.1
Amortisation and depreciation at 1 January 2024 0 (24.3) (247.5)
Foreign currency translation adjustment 0 0 0
Amortisation and depreciation for the year 0 (3.5) (22.4)
Disposals during the year 0 0 41.4
Amortisation and depreciation at 31 December 2024 0 (27. 8) (228.4)
Carrying amount at 31 December 2024 464.8 40.7 104.6
DKK millions Goodwill
Intellectual
property
rights Software
Cost at 1 January 2023 456.0 68.5 344.8
Foreign currency translation adjustment 0 0 0
Additions from acquisitions 0 0 0
Additions during the year 8.8 0 33.9
Disposals during the year 0 0 (48.3)
Cost at 31 December 2023 464.8 68.5 330.4
Amortisation and depreciation at 1 January 2023 0 (20.8) (280.6)
Foreign currency translation adjustment 0 0 0
Amortisation and depreciation for the year 0 (3.5) (15.2)
Disposals during the year 0 0 48.3
Amortisation and depreciation at 31 December 2023 0 (24.3) (247.5)
Carrying amount at 31 December 2023 464.8 44.2 82.9
In 2024 additions to goodwill derive from the acquisitions of DesignKupp and Workwear Group.
Apart from goodwill, all intangible assets are considered to have definite useful lives. No significant
changes have been made in estimates relating to intangible assets. Intellectual property rights relate
to Billig VVS', Greenline's, LampeGuru's and EA Værktøj's trademarks, domain names, etc.
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Parent company financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Basis of preparation
Income statement
Invested capital
Capital structure and financing
Other notes
Section 3
3.1 Intangible assets (continued)
Development costs
Development costs are included in "Software". The net value of capitalised development costs may be
illustrated as follows:
DKK millions 2024 2023
Company Completed
Work in
progress Completed
Work in
progress
Cost at 1 January 162.2 36.8 133.9 22.3
Additions during the year 0 47.5 18.6 24.2
Transfer 47.9 (52.1) 9.7 (9.7)
Disposals (43.1) 0 0 0
Cost at 31 December 167.0 32.2 162.2 36.8
Amortisation and depreciation at 1 January (118.3) 0 (103.3) 0
Amortisation and depreciation for the year (23.1) 0 (15.0) 0
Transfer (12.3) 0 0 0
Amortisation and depreciation related to
disposals 40.7 0 0 0
Amortisation and depreciation
at 31 December (113.1) 0 (118.3) 0
Carrying amount at 31 December 53.9 32.2 43.9 36.8
Accounting policy
Impairment testing for goodwill and other intangible assets
In the annual impairment tests of intangible assets, including goodwill and rights, estimates are made
of how the parts of the business (cash-generating units) to which goodwill and rights are attributed will
be able to generate sufficient positive net cash flows in the future to support the value of the goodwill
and rights.
Due to the nature of the business, expected cash flows must be estimated for many years to come,
leading to some uncertainty. This uncertainty is reflected by the chosen discount rate.
Impairment testing has been described in note 3.1 of the consolidated financial statements.
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Parent company financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Basis of preparation
Income statement
Invested capital
Capital structure and financing
Other notes
Section 3
3.2 Property, plant and equipment
DKK millions
Land and
buildings
Leasehold
improve-
ments
Fixtures and
operating
equipment
Cost at 1 January 2024 195.2 34.2 588.9
Foreign currency translation adjustment 0 0 0
Additions from acquisitions 0 0 0
Additions during the year 10.2 3.8 21.9
Disposals during the year (0.1) (6.2) (45.6)
Cost at 31 December 2024 205.3 31.8 565.2
Amortisation and depreciation at 1 January 2024 (56.4) (17.7 ) (369.2)
Foreign currency translation adjustment 0 0 0
Amortisation and depreciation for the year (2.4) (4.0) (33.2)
Disposals during the year 0.2 6.2 45.2
Amortisation and depreciation at 31 December 2024 (58.6) (15.6) (357.2)
Carrying amount at 31 December 2024 146.7 16.2 208.0
DKK millions
Land and
buildings
Leasehold
improve-
ments
Fixtures and
operating
equipment
Cost at 1 January 2023 190.6 28.8 563.5
Foreign currency translation adjustment 0 0 0
Additions from acquisitions 0 0 0
Additions during the year 4.7 5.7 31.4
Disposals during the year 0 (0.3) (6.0)
Cost at 31 December 2023 195.2 34.2 588.9
Amortisation and depreciation at 1 January 2023 (48.3) (14.2) (339.8)
Foreign currency translation adjustment 0 0 0
Amortisation and depreciation for the year (8.0) (3.8) (33.6)
Disposals during the year 0 0.3 4.3
Amortisation and depreciation at 31 December 2023 (56.4) (17.7 ) (369.2)
Carrying amount at 31 December 2023 138.9 16.5 219.8
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Parent company financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Basis of preparation
Income statement
Invested capital
Capital structure and financing
Other notes
Section 3
3.3 Right-of-use assets and lease liabilities
Right-of-use assets
Land and
buildings
Fixtures and
operating
equipment Total
Balance at 1 January 2024 157.1 38.9 196.0
Foreign currency translation adjustment 0 0 0
Additions during the year 30.5 23.8 54.3
Disposals during the year (1.2) (0.8) (2.0)
Remeasurement of lease liability 8.0 0.8 8.8
Amortisation and depreciation for the year (72.3) (16.1) (88.4)
Carrying amount at 31 December 2024 122.1 46.6 168.7
Right-of-use assets
Land and
buildings
Fixtures and
operating
equipment Total
Balance at 1 January 2023 190.7 14.6 205.3
Foreign currency translation adjustment 0 0 0
Additions during the year 39.2 41.6 80.9
Disposals during the year (6.7) (5.8) (12.4)
Remeasurement of lease liability 2.8 0.4 3.2
Amortisation and depreciation for the year (69.0) (11.9) (80.9)
Carrying amount at 31 December 2023 157.1 38.9 196.0
Lease liabilities 2024 2023
Maturity of lease liabilities
0-1 year 57. 9 86.7
1-5 years 98.1 103.5
>5 years 30.9 30.5
Total un-discounted lease liabilities at 31 December 186.8 220.8
Short-term lease liabilities, less than 1 year 57.8 80.2
Long-term lease liabilities, more than 1 year 114.3 119.1
Lease liabilities recognised in the balance sheet 172.1 199.3
Amounts recognised in the income statement
Interest expenses on lease liabilities (5.1) (2.8)
Expenses related to low value leasing arrangements (0.2) (0.2)
Expenses related to short term leasing arrangements (1.0) (1.6)
Depreciation related to right-of-use assets (85.2) (80.9)
Total (91.5) (85.5)
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Parent company financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Basis of preparation
Income statement
Invested capital
Capital structure and financing
Other notes
Section 3
3.4 Investments in subsidiaries
DKK millions 2024 2023
Cost at 1 January 127.6 127.6
Additions during the year 263.1 0
Disposal due to merger 0 0
Cost at 31 December 390.7 127.6
Value adjustment at 1 January 221.8 209.3
Disposal due to merger 0 0
Dividends (14.0) (34.8)
Forign currency translation adjustments (4.1) 1.0
Subsidiaries' results 80.7 46.4
Value adjustment at 31 December 284.4 221.8
Carrying amount at 31 December 675.1 349.4
2024 2023
Name Registered office
Ownership
interest
Ownership
interest
AO Invest A/S Albertslund 100% 100%
AO Sverige AB Sweden 100% 100%
VVSochBAD Sverige AB Sweden 100% 100%
Billig VVS AS Norway 100% 100%
LampeGuru AS Norway 100% 100%
Designkupp AS Norway 100% 0%
Workwear Group ApS Denmark 100% 0%
3.5 Inventories
DKK millions 2024 2023
Carrying amount of inventories recognised at net selling price 32.3 41.8
Accounting policy
Inventories
The estimated uncertainty of inventories relates primarily to slow-moving goods and thus to impair-
ment to the net realisable value.
Impairment requirements are continuously assessed on inventories based on historical sales and the
assessment of future sales.
Key accounting judgments and estimates
Supplier bonus
Reporting from suppliers as well as AO’s own records are used when assessing the supplier bonus
that is due to AO. Estimates are used when reporting from suppliers have not been received or when
the reporting from suppliers do not reconcile with AO’s records. Ongoing retrospective reviews are
performed to ensure that supplier bonus is included correctly in the financial statements.
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Parent company financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Basis of preparation
Income statement
Invested capital
Capital structure and financing
Other notes
Section 3
3.6 Trade receivables
Trade receivables consist of sale of goods to business customers which, in essence, have the same
risk profile. Provisions for bad debts are made in accordance with the simplified expected credit loss
model, taking into account AO's credit policy and debt collection procedure. AO has taken up credit
insurance on customers with large balances.
Historically, the Company has incurred no losses on receivables from subsidiaries, and is not expected
to going forward.
Calculated on the basis of a weighted loss ratio, the expected credit losses on trade receivables are as
follows:
DKK millions Loss ratio
Receivable
amount
Expected
loss Total
2024
Not yet due 0.4% 547.2 (2.4) 544.7
Due within 1-30 days 1.8% 15.4 (0.3) 15.2
Due within 31-60 days 34.8% 2.7 (0.9) 1.7
Due in more than 60 days 73.0% 37.1 (27.1) 10.0
Total at 31 December 2024 602.4 (30.7) 571.6
2023
Not yet due 0.6 % 491.2 (2.7) 488.5
Due within 1-30 days 3.6 % 19.8 (0.7) 19.1
Due within 31-60 days 15.6 % 2.6 (0.4) 2.2
Due in more than 60 days 83.5 % 44.9 (37.5) 7.4
Total at 31 December 2023 558.5 (41.3) 517.2
* Expected losses are shown including VAT.
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Parent company financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Basis of preparation
Income statement
Invested capital
Capital structure and financing
Other notes
Section 3
3.6 Trade receivables (continued)
DKK millions 2024 2023
Provision for losses on receivables:
Provision for losses on receivables at 1 January excl. VAT 33.5 36.2
Realised loss during the year - use of previous provision (14.5) (8.3)
Adjustment of provisions for losses 5.7 5.6
Provision for losses on receivables at 31 December 24.7 33.5
Recognised previously written-off receivables (0.3) (0.3)
Losses recognised in the year and not previously provided for 0 0
Operating effect, net from loss and provision for losses on receivables 5.4 5.3
Accounting policy
Receivables
Estimates are used when assessing the probability of receivables. Due to the financial situation in
society, the risk of losses on doubtful receivables remains high, which has been taken into account
when assessing new customers, by way of impairment losses at the balance sheet date, and in the
day-to-day governance and control of the receivables.
Customer bonus
Estimates are used in relation to the determination of the bonus levels reached on bonus agreements
with a duration of more than one year. The applied estimates are reviewed on an ongoing basis to
ensure a correct valuation of bonus due to customers.
3.7 Deferred tax
DKK millions 2024 2023
Deferred tax at 1 January 32.4 29.1
Foreign currency translation adjustment 0 0
Merger / acquisition of enterprise 0 0
Change in deferred tax for the year 7.3 4.1
Change in deferred tax relating to previous years (0.3) (0.8)
Deferred tax at 31 December 40.0 32.4
Deferred tax relates to:
Intangible assets 31.7 27.7
Property, plant and equipment 14.4 13.6
Receivables (4.1) (7.5)
Liabilities (2.0) (1.4)
Tax deficit 0 0
Deferred tax at the end of the year 40.0 32.4
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Parent company financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Basis of preparation
Income statement
Invested capital
Capital structure and financing
Other notes
Section 3
3.8 Other payables
DKK millions 2024 2023
Holiday allowance 19.7 18.0
Salary-related items 12.1 18.6
VAT and taxes 10.7 13.0
Other payables 3.1 9.3
Total 45.6 58.9
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Parent company financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Basis of preparation
Income statement
Invested capital
Capital structure and financing
Other notes
Capital structure
and financing
Section 4
4.1 Equity
4.2 Financing activities
4.3 Financial risks
4.4 Financial income
4.5 Financial expenses
Financial statements
Sustainability statementsCorporate governancePerformanceStrategyIn brief

Annual Report 2024
Contents
Consolidated financial statements
Parent company financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Basis of preparation
Income statement
Invested capital
Capital structure and financing
Other notes
Section 4
4.1 Equity
Share capital
The share capital consists of the following classes:
k DKK
Class A-share capital:
56,400 shares of DKK 100 each 5,640
Class B-share capital:
22,360,000 shares of DKK 1 each 22,360
Total share capital 28,000
Of the Company's share capital of DKK 28,000k DKK 5,640k is in the form of Class A-shares and DKK
22,360k is in the form of Class B-shares. Each A-share of DKK 100 carries 1,000 votes whereas each
Class B-share of DKK 1 carries one vote. In addition to the the difference in the number of voting rights,
the two share classes differ in the following respects:
The Class A-shares are non-negotiable securities. The Class B-shares are listed on Nasdaq Copen-
hagen. The Class B-share capital has a preferential dividend right of 6%. In case of liquidation, Class
B-shares take precedence over Class A-shares. As at December 31 2024 there are no outstanding obli-
gations related to preferential dividends to Class B-shares.
An alteration to the Company's Articles of Association requires that two thirds of cast votes and two
thirds of the represented capital at a general meeting are in favour of the alteration.
Holders of Class B-shares are entitled to appoint and elect one member of the Board of Directors, while
holders of Class A-shares elect the remaining Board members.
Number of shares
Nomimal value
(DKK thousands) % of share capital
Treasury shares 2024 2023 2024 2023 2024 2023
1 January 823,900 823,900 824 824 2.9% 2.9%
Holding at
31 December 823,900 823,900 824 824 2.9% 2.9%
There have been no transactions with treasury shares in 2024. According to the authorisation of the
annual general meeting, Brødrene A & O Johansen A/S is allowed to acquire treasury shares up to a total
holding of 10% of the share capital.
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Parent company financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Basis of preparation
Income statement
Invested capital
Capital structure and financing
Other notes
Section 4
4.1 Equity (continued)
Dividend
The payment of dividends to the Company's shareholders has no tax implication for Brødrene A & O
Johansen A/S. Proposed dividend for 2024 amounts to TDKK 84,000 corresponding to DKK 3.0 per
share.
Other reserves
Reserve for net revaluation according to the equity method contains value adjustments related to
investments in subsidiaries. Included in reserve for development costs is an amount corresponding to
capitalised intangible assets meeting the criteria for being defined as a development project.
Reserve for net revaluation according to the equity method and reserve for development costs are
unavailable for distribution to shareholders.
4.2 Financing activities
DKK millions 2024 2023
Mortgage loans - floating interest rate - 5 years 85.7 90.1
Bank loans - floating short-term interest rate 484.2 89.6
Lease liabilities - floating interest rate 172.1 199.3
742.0 378.9
Payables relating to financing activities:
Beginning-of-year 378.9 358.9
Repayment of debt to credit institutions 390.3 (61.7)
Raising of loans from credit institutions 0 92.7
Addition, lease liabilities, net 61.2 69.8
Repayment, lease liabilities (88.4) (80.9)
Year-end 742.0 378.9
According to the leases there are no contingent rents. The contractual cash flows appear from note 4.3.
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Parent company financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Basis of preparation
Income statement
Invested capital
Capital structure and financing
Other notes
Section 4
4.3 Financial risks
The companys payables fall due as follows:
DKK millions
Carrying
amount
Contractual
cash flows
Less than
1 year
1 to
5 years
More than
5 years
2024
Mortgage loans 85.7 109.9 7. 8 30.9 71.3
Bank loans 484.2 484.2 258.4 225.8 0
Lease liabilities 172.1 186.8 57. 9 98.1 30.9
Trade payables 979.3 979.3 979.3 0 0
Intra-group balances 48.3 48.3 0 48.3 0
31 December 1,769.6 1,808.5 1,303.3 403.1 102.1
2023
Mortgage loans 90.1 124.0 8.2 32.3 83.6
Bank loans 89.6 89.6 89.6 0 0
Lease liabilities 199.3 220.8 86.7 103.5 30.5
Trade payables 976.9 976.9 976.9 0 0
Intra-group balances 53.1 53.1 0 53.1 0
31 December 1,408.8 1,464.3 1,161.2 188.9 114.1
4.4 Financial income
DKK millions 2024 2023
Interest income from current assets 10.2 2.9
Interest income from subsidiaries 5.9 0.8
Foreign exchange gains, net 1.3 0
Total 17. 4 3.7
4.5 Financial expenses
DKK millions 2024 2023
Interest expenses on liabilities (31.3) (17.3)
Expenses, lease liabilities, external (2.4) (1.6)
Expenses, lease liabilities, subsidiaries (2.6) (1.3)
Other interest expenses (0.1) (0.1)
Foreign exchange losses, net 0 (5.8)
Total (36.4) (26.0)
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Parent company financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Basis of preparation
Income statement
Invested capital
Capital structure and financing
Other notes
Other notes
Section 5
5.1 Contingent liabilities, security, etc.
5.2 Related parties
5.3 Subsequent events
Financial statements
Sustainability statementsCorporate governancePerformanceStrategyIn brief

Annual Report 2024
Contents
Consolidated financial statements
Parent company financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Basis of preparation
Income statement
Invested capital
Capital structure and financing
Other notes
Section 5
5.1 Contingent liabilities, security, etc.
Land and buildings with a total carrying amount of DKK 106.1m (2023: DKK 102.3m) are provided as
security for the Company's payables to mortgage credit institutions and finance lease liabilities.
As a normal part of doing business AO can be invovled in disputes or legal proceedings. The outcome
of pending legal actions is not expected to have any material impact on the financial position of the
Company.
The company is jointly taxed with AO Invest A/S and the ultimate Danish parent company Avenir Invest
ApS, which is the administration company for joint taxation purposes. The company is unlimited, jointly
and severally liable with other jointly taxed companies towards the Danish tax authorities for the total
corporation tax. Payable corporation taxes within the joint taxation group amounted to DKK -16.4m at
31 December 2024 (2023: DKK 8.4m).
Any adjustment to the taxable income subject to joint taxation might entail an increase in the Compa-
ny's liability. Group companies are not subject to withholding tax on dividends. Transactions appear
from note 5.2.
The company manages cash pooling for the Group entities and is jointly and severally liable for this. At
31 December 2024, the cash-pool arrangement amounts to DKK 43.9m (2023: DKK 89.1m).
5.2 Related parties
The Company's related parties comprise the parent company Avenir Invest ApS (Axeltorv 2, DK-1607
Copenhagen V, Denmark), the Board of Directors, the Executive Board and management employees.
Avenir Invest ApS has control over the company through its ownership of the majority of the voting
rights. During the year, no transactions were carried out with Avenir Invest ApS apart from payment of
dividends and corporate tax.
During the year, no significant transactions were carried out with the Board of Directors, the Executive
Board, management employees or major shareholders apart from normal management remuneration,
cf. note 2.4, and dividend payments.
In addition, related parties are the Company's subsidiaries to whom letters of subordination have been
submitted. Trading with subsidiaries comprises the following:
DKK millions 2024 2023
Sale of goods 114.1 109.8
Rental expenses 53.1 48.5
Management fee 5.1 4.0
Transactions with subsidiaries are eliminated in the consolidated financial statements in accordance
with the accounting policies.
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Contents
Consolidated financial statements
Parent company financial statements
Income statement
Statement of comprehensive Income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Basis of preparation
Income statement
Invested capital
Capital structure and financing
Other notes
Section 5
The Company's balances with subsidiaries at 31 December can be seen in the balance sheet. Balances
with subsidiaries comprise ordinary trading balances related to the sale of goods. Ordinary trading
balances attract no interest and are subject to the same terms of trade as other customers of the
Company. Balances with subsidiaries also comprise the construction and conversion of buildings.
Return on balances appears from notes 4.4 and 4.5.
The Company has entered into building leases with AO Invest A/S, cf. note 3.3.
As the Company is jointly taxed with other Danish Group entities, it is liable to pay taxes of DKK -26.3m
(2023: DKK 3.7m).
5.3 Subsequent events
No events have occurred after 31 December 2024 that are considered to have a material effect on the
annual report for 2024.
5.2 Related parties (continued)
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Statements
201 Management’s statement
202 Independent auditor’s report
206 Independent auditor’s limited assurance report
on the Sustainability Statement
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Management’s statement
The Board of Directors and the Executive Board have today
considered and adopted the annual report of Brødrene A & O
Johansen A/S for the financial year 1 January - 31 December
2024.
The Consolidated Financial Statements and the Parent
Company Financial Statements have been prepared in
accordance with IFRS Accounting Standards as adopted
by the EU and further requirements in the Danish Financial
Statements Act. Management’s Review has been prepared
in accordance with the Danish Financial Statements Act.
In our opinion, the Consolidated Financial Statements and
the Parent Company Financial Statements give a true and
fair view of the financial position at 31 December 2024 of
the Group and the Parent Company and of the results of the
Group and Parent Company operations and cash flows for
2024.
In our opinion, Management’s Review includes a fair review
of the development in the operations and financial circum-
stances of the Group and the Parent Company, of the results
for the year and of the financial position of the Group and the
Parent Company as well as a description of the most signifi-
cant risks and elements of uncertainty, which the Group and
the Parent Company are facing.
Additionally, the sustainability statement, which is part of
Management’s Review, has been prepared, in all material
respects, in accordance with paragraph 99 a of the Danish
Financial Statements Act. This includes compliance with
the European Sustainability Reporting Standards (ESRS)
including that the process undertaken by Management
to identify the reported information (the “Process”) is in
accordance with the description set out in the section titled
Double Materiality Assessment. Furthermore, disclosures
within the sustainability statement are, in all material
respects, in accordance with the EU Taxonomy Regulation.
The year 2024 marks the initial implementation of paragraph
99 a of the Danish Financial Statements Act concerning
compliance with ESRS. As such, more clear guidance and
practice are anticipated in various areas, which are expected
to be issued in the coming years. Furthermore, the sustaina-
bility statement includes forward-looking statements based
on disclosed assumptions about events that may occur in
the future and possible future actions by the Group. Actual
outcomes are likely to be different since anticipated events
frequently do not occur as expected.
In our opinion, the annual report for the financial year 1
January – 31 December 2024, file name 5299004B6ZEG-
VCR9ZR75-2024-12-31-en.zip, is prepared, in all material
respects, in compliance with the ESEF Regulation.
We recommend that the Annual Report be adopted at the
Annual General Meeting.
Albertslund, 27 February 2025
Executive Board
Niels A. Johansen Per Toelstang
CEO CFO/Deputy CEO
Stefan Funch Jensen Lili Johansen
CTO CHRO
Board of Directors
Henning Dyremose Erik Holm
Chair Deputy Chair
René Alberg Ann Fogelgren Peter Gath
Leif Hummel Marlene L. Jakobsen Niels A. Johansen
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Independent auditor’s report
Report on the audit of
theFinancial Statements
Our opinion
In our opinion, the Consolidated Financial Statements
and the Parent Company Financial Statements give
a true and fair view of the Group’s and the Parent
Company’s financial position at 31 December 2024 and
of the results of the Group’s and the Parent Company’s
operations and cash flows for the financial year 1
January to 31 December 2024 in accordance with IFRS
Accounting Standards as adopted by the EU and further
requirements in the Danish Financial Statements Act.
Our opinion is consistent with our Auditor’s Long-
form Report to the Audit Committee and the Board of
Directors.
What we have audited
The Consolidated Financial Statements and Parent
Company Financial Statements of Brødrene A & O
Johansen A/S for the financial year 1 January to 31
December 2024 comprise income statement and
statement of comprehensive income, balance sheet,
statement of changes in equity, cash flow statement
and notes, including material accounting policy
information for the Group as well as for the Parent
Company. Collectively referred to as the “Financial
Statements”.
Basis for opinion
We conducted our audit in accordance with
International Standards on Auditing (ISAs) and the
additional requirements applicable in Denmark.
Our responsibilities under those standards and
requirements are further described in the Auditor’s
responsibilities for the audit of the Financial Statements
section of our report.
We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our
opinion.
Independence
We are independent of the Group in accordance with the
International Ethics Standards Board for Accountants’
International Code of Ethics for Professional
Accountants (IESBA Code) and the additional ethical
requirements applicable in Denmark. We have also
fulfilled our other ethical responsibilities in accordance
with these requirements and the IESBA Code.
To the best of our knowledge and belief, prohibited
non-audit services referred to in Article 5(1) of
Regulation (EU) No 537/2014 were not provided.
Appointment
We were first appointed auditors of Brødrene A &
O Johansen A/S on 19 March 2021 for the financial
year 2021. We have been reappointed annually
by shareholder resolution for a total period of
uninterrupted engagement of 4 years including the
financial year 2024.
Key audit matters
Key audit matters are those matters that, in our
professional judgement, were of most significance in
our audit of the Financial Statements for 2024. These
matters were addressed in the context of our audit of
the Financial Statements as a whole, and in forming
our opinion thereon, and we do not provide a separate
opinion on these matters.
To the shareholders of Brødrene A & O Johansen A/S
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Key audit matter How our audit addressed the key audit matter
Recognition of revenue
Revenue is measured at fair value of the
consideration agreed exclusive of VAT and
duties and after deduction of discounts and
customer bonus.
We focused on revenue recognition
because revenue is the most significant
financial statement line item, consists of a
large number of IT-dependent transactions
and is based on many individual contracts.
We refer to note 2.1 of the Financial State-
ments.
We carried out risk assessment procedures
to gain an understanding of relevant IT
systems, business procedures and controls
for revenue recognition, including customer
bonus. For relevant controls we assessed
whether they were designed and imple-
mented to effectively address the risk of
material misstatement.
For selected controls, which we planned to
rely on in our audit, we tested whether they
had been carried out on a consistent basis.
We analysed revenue transactions and iden-
tified transactions that did not follow the
usual or expected transaction pattern. On a
sample basis we tested the transactions to
the underlying contractual basis.
We performed analytical procedures over
revenue and discussed significant fluc-
tuations with management and obtained
corroborating evidence of material fluctua-
tions, where deemed necessary.
We reviewed Management's calculation of
customer bonus and on sample basis tested
it to the underlying contracts as well as to
subsequent and historical settlements.
Measurement of inventories and calculation
of supplier bonus receivable
I Inventories are measured at the lower of
cost and net realisable value.
The measurement of inventories contains
significant accounting estimates related
to their net realisable value and expected
supplier bonus. Additionally, inventories
acquired through business combinations
require assessment of the fair value at the
date of take-over.
The calculation of supplier bonus is based
on individual and complex contracts as well
as estimates of the total purchases for the
year made through international procure-
ment cooperations.
We focused on the measurement of inven-
tories as inventories represent a significant
line item in the Financial Statements and
since technical obsolescence of inventories
and changes in consumption patterns may
lead to significant write-downs. Further,
because the assessment of the fair value
of inventories acquired through business
combinations is subject to management’s
estimate and uncertainty.
We focused on the calculation of supplier
bonus receivables as recognition is based
on comprehensive contracts and significant
data volumes as well as estimates of the
total purchases for the year made through
international procurement cooperation.
We refer to notes 2.2 and 3.4 of the Finan-
cial Statements.
We carried out risk assessment procedures
to gain an understanding of relevant IT
systems, business procedures and controls
for inventories and supplier bonuses. For
relevant controls, we assessed whether
they were designed and implemented to
effectively address the risk of material
misstatement.
For selected controls, which we planned to
rely on in our audit, we tested whether they
had been carried out on a consistent basis.
We assessed management’s estimate of the
fair value of inventories acquired through
business combinations, and reviewed the
underlying method, assumptions and data.
We compared cost prices with underlying
documentation and reviewed Management's
method, assumptions and data for its esti-
mate of the net realisable value of the indi-
vidual goods, including look back analysis of
historical inventory write-downs.
On a sample basis, we tested Manage-
ment's calculation of supplier bonus to the
underlying contractual basis, as well as
management’s look back analysis of histor-
ical settlements and confirmations from
counterparties.
In addition, we reviewed Management's
assumptions and data for its estimates of
the total purchases made through inter-
national procurement cooperations and
expected final settlements.
Statement on Management’s Review
Management is responsible for Management’s Review.
Our opinion on the Financial Statements does not
cover Management’s Review, and we do not as part of
the audit express any form of assurance conclusion
thereon.
In connection with our audit of the Financial State-
ments, our responsibility is to read Management’s
Review and, in doing so, consider whether Manage-
ment’s Review is materially inconsistent with the Finan-
cial Statements or our knowledge obtained in the audit,
or otherwise appears to be materially misstated.
Moreover, we considered whether Management’s
Review includes the disclosures required by the Danish
Financial Statements Act. This does not include the
requirements in paragraph 99 a related to the sustain-
ability statement covered by the separate auditor’s
limited assurance report hereon.
Based on the work we have performed, in our view,
Management’s Review is in accordance with the Consol-
idated Financial Statements and the Parent Company
Financial Statements and has been prepared in accord-
ance with the requirements of the Danish Financial
Statements Act, except for the requirements in para-
graph 99 a related to the sustainability statement, cf.
above. We did not identify any material misstatement in
Management’s Review.
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Management’s responsibilities for
the Financial Statements
Management is responsible for the preparation of
consolidated financial statements and parent company
financial statements that give a true and fair view in
accordance with IFRS Accounting Standards as adopted
by the EU and further requirements in the Danish
Financial Statements Act, and for such internal control
as Management determines is necessary to enable the
preparation of financial statements that are free from
material misstatement, whether due to fraud or error.
In preparing the Financial Statements, Manage-
ment is responsible for assessing the Group’s and
the Parent Company’s ability to continue as a going
concern, disclosing, as applicable, matters related
to going concern and using the going concern basis
of accounting unless Management either intends to
liquidate the Group or the Parent Company or to cease
operations, or has no realistic alternative but to do so.
Auditor’s responsibilities for the audit
of the Financial Statements
Our objectives are to obtain reasonable assurance
about whether the Financial Statements as a whole
are free from material misstatement, whether due to
fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit
conducted in accordance with ISAs and the additional
requirements applicable in Denmark will always detect
a material misstatement when it exists. Misstate-
ments can arise from fraud or error and are considered
material if, individually or in the aggregate, they could
reasonably be expected to influence the economic
decisions of users taken on the basis of these Financial
Statements.
As part of an audit in accordance with ISAs and the
additional requirements applicable in Denmark, we
exercise professional judgement and maintain profes-
sional scepticism throughout the audit. We also:
· Identify and assess the risks of material misstate-
ment of the Financial Statements, whether due to
fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis
for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collu-
sion, forgery, intentional omissions, misrepresenta-
tions, or the override of internal control.
· Obtain an understanding of internal control relevant
to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for
the purpose of expressing an opinion on the effec-
tiveness of the Group’s and the Parent Company’s
internal control.
· Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting esti-
mates and related disclosures made by Management.
· Conclude on the appropriateness of Management’s
use of the going concern basis of accounting and
based on the audit evidence obtained, whether
a material uncertainty exists related to events or
conditions that may cast significant doubt on the
Group’s and the Parent Company’s ability to continue
as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention
in our auditor’s report to the related disclosures in
the Financial Statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions
are based on the audit evidence obtained up to the
date of our auditor’s report. However, future events
or conditions may cause the Group or the Parent
Company to cease to continue as a going concern.
· Evaluate the overall presentation, structure and
content of the Financial Statements, including the
disclosures, and whether the Financial Statements
represent the underlying transactions and events in a
manner that gives a true and fair view.
· Plan and perform the group audit to obtain sufficient
appropriate audit evidence regarding the financial
information of the entities or business units within
the group as a basis for forming an opinion on the
Consolidated Financial Statements and the Parent
Company Financial Statements. We are responsible
for the direction, supervision and review of the audit
work performed for purposes of the group audit. We
remain solely responsible for our audit opinion.
We communicate with those charged with governance
regarding, among other matters, the planned scope
and timing of the audit and significant audit findings,
including any significant deficiencies in internal control
that we identify during our audit.
We also provide those charged with governance with
a statement that we have complied with relevant
ethical requirements regarding independence, and
to communicate with them all relationships and other
matters that may reasonably be thought to bear on our
independence and, where applicable, actions taken to
eliminate threats or safeguards applied.
From the matters communicated with those charged
with governance, we determine those matters that were
of most significance in the audit of the Financial State-
ments of the current period and are therefore the key
audit matters. We describe these matters in our audi-
tor’s report unless law or regulation precludes public
disclosure about the matter.
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Report on compliance with the
ESEF Regulation
As part of our audit of the Financial Statements we
performed procedures to express an opinion on whether
the annual report of Brødrene A & O Johansen A/S for
the financial year 1 January to 31 December 2024 with
the filename 5299004B6ZEGVCR9ZR75-2024-12-31-en.
zip is prepared, in all material respects, in compli-
ance with the Commission Delegated Regulation (EU)
2019/815 on the European Single Electronic Format
(ESEF Regulation) which includes requirements related
to the preparation of the annual report in XHTML format
and iXBRL tagging of the Consolidated Financial State-
ments including notes.
Management is responsible for preparing an annual
report that complies with the ESEF Regulation. This
responsibility includes:
· The preparing of the annual report in XHTML format;
· The selection and application of appropriate iXBRL
tags, including extensions to the ESEF taxonomy and
the anchoring thereof to elements in the taxonomy,
for all financial information required to be tagged
using judgement where necessary;
· Ensuring consistency between iXBRL tagged data and
the Consolidated Financial Statements presented in
human-readable format; and
· For such internal control as Management determines
necessary to enable the preparation of an annual
report that is compliant with the ESEF Regulation.
Our responsibility is to obtain reasonable assurance on
whether the annual report is prepared, in all material
respects, in compliance with the ESEF Regulation based
on the evidence we have obtained, and to issue a report
that includes our opinion. The nature, timing and extent
of procedures selected depend on the auditor’s judge-
ment, including the assessment of the risks of material
departures from the requirements set out in the ESEF
Regulation, whether due to fraud or error. The proce-
dures include:
· Testing whether the annual report is prepared in
XHTML format;
· Obtaining an understanding of the company’s iXBRL
tagging process and of internal control over the
tagging process;
· Evaluating the completeness of the iXBRL tagging
of the Consolidated Financial Statements including
notes;
· Evaluating the appropriateness of the company’s use
of iXBRL elements selected from the ESEF taxonomy
and the creation of extension elements where no
suitable element in the ESEF taxonomy has been
identified;
· Evaluating the use of anchoring of extension
elements to elements in the ESEF taxonomy; and
· Reconciling the iXBRL tagged data with the audited
Consolidated Financial Statements.
In our opinion, the annual report of Brødrene A & O
Johansen A/S for the financial year 1 January to 31
December 2024 with the file name 5299004B6ZEG-
VCR9ZR75-2024-12-31-en.zip is prepared, in all material
respects, in compliance with the ESEF Regulation.
Hellerup, 27 February 2025
PricewaterhouseCoopers,
Statsautoriseret Revisionspartnerselskab,
CVR no 3377 1231
Anders Stig Lauritsen Daniel Sitch
State Authorised Public Accountant State Authorised Public Accountant
mne32800 mne47889
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Independent auditor’s limited assurance
report on the Sustainability Statement
To the stakeholders of Brødrene A & O Johansen A/S
Limited assurance conclusion
We have conducted a limited assurance engagement on
the sustainability statement of Brødrene A & O Johansen
A/S (the “Group”) included in the Management’s review
(the “Sustainability Statement”), page 40 – 115, for the
financial year 1 January – 31 December 2024.
Based on the procedures we have performed and
the evidence we have obtained, nothing has come
to our attention that causes us to believe that the
Sustainability Statement is not prepared, in all mate-
rial respects, in accordance with the Danish Financial
Statements Act paragraph 99 a, including:
· compliance with the European Sustainability
Reporting Standards (ESRS), including that the
process carried out by the management to iden-
tify the information reported in the Sustainability
Statement (the “Process”) is in accordance with the
description set out in the section titled ‘Double Mate-
riality Assessment’; and
· compliance of the disclosures in the section titled ‘EU
Taxonomy’ of the Sustainability Statement with Article 8
of EU Regulation 2020/852 (the “Taxonomy Regulation”).
Basis for conclusion
We conducted our limited assurance engagement in
accordance with International Standard on Assur-
ance Engagements (ISAE) 3000 (Revised), Assurance
engagements other than audits or reviews of historical
financial information (“ISAE 3000 (Revised)”) and the
additional requirements applicable in Denmark.
The procedures in a limited assurance engagement vary
in nature and timing from, and are less in extent than
for, a reasonable assurance engagement. Consequently,
the level of assurance obtained in a limited assurance
engagement is substantially lower than the assurance
that would have been obtained had a reasonable assur-
ance engagement been performed.
We believe that the evidence we have obtained is
sufficient and appropriate to provide a basis for our
conclusion. Our responsibilities under this standard are
further described in the Auditor’s responsibilities for
the assurance engagement section of our report.
Our independence and quality management
We are independent of the Group in accordance with the
International Ethics Standards Board for Accountants’
International Code of Ethics for Professional Account-
ants (IESBA Code) and the additional ethical require-
ments applicable in Denmark. We have also fulfilled our
other ethical responsibilities in accordance with these
requirements and the IESBA Code.
Our firm applies International Standard on Quality
Management 1, which requires the firm to design,
implement and operate a system of quality management
including policies or procedures regarding compliance
with ethical requirements, professional standards and
applicable legal and regulatory requirements.
Management’s responsibilities for
the Sustainability Statement
Management is responsible for designing and imple-
menting a process to identify the information reported
in the Sustainability Statement in accordance with the
ESRS and for disclosing this Process as included in the
section titled ‘Double Materiality Assessment’ of the
Sustainability Statement. This responsibility includes:
· understanding the context in which the Group’s’
activities and business relationships take place and
developing an understanding of its affected stake-
holders;
· the identification of the actual and potential impacts
(both negative and positive) related to sustainability
matters, as well as risks and opportunities that
affect, or could reasonably be expected to affect, the
Group’s’ financial position, financial performance,
cash flows, access to finance or cost of capital over
the short-, medium-, or long-term;
· the assessment of the materiality of the identified
impacts, risks and opportunities related to sustaina-
bility matters by selecting and applying appropriate
thresholds; and
· making assumptions that are reasonable in the
circumstances.
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Management is further responsible for the preparation
of the Sustainability Statement, which includes the
information identified by the Process, in accordance
with the Danish Financial Statements Act paragraph
99a, including:
· compliance with the ESRS;
· preparing the disclosures in the section titled ‘EU
taxonomy’ within the Sustainability Statement, in
compliance with Article 8 of the Taxonomy Regulation;
· designing, implementing and maintaining such
internal control that management determines is
necessary to enable the preparation of the Sustain-
ability Statement that is free from material misstate-
ment, whether due to fraud or error; and
· the selection and application of appropriate sustaina-
bility reporting methods and making assumptions and
estimates that are reasonable in the circumstances.
Inherent limitations in preparing
the Sustainability Statement
In reporting forward-looking information in accordance
with ESRS, management is required to prepare the
forward-looking information on the basis of disclosed
assumptions about events that may occur in the future
and possible future actions by the Group. Actual
outcomes are likely to be different since anticipated
events frequently do not occur as expected.
Auditor’s responsibilities for the
assurance engagement
Our responsibility is to plan and perform the assur-
ance engagement to obtain limited assurance about
whether the Sustainability Statement is free from
material misstatement, whether due to fraud or error,
and to issue a limited assurance report that includes
our conclusion. Misstatements can arise from fraud or
error and are considered material if, individually or in
the aggregate, they could reasonably be expected to
influence decisions of users taken on the basis of the
Sustainability Statement as a whole.
As part of a limited assurance engagement in accord-
ance with ISAE 3000 (Revised) we exercise professional
judgement and maintain professional scepticism
throughout the engagement.
Our responsibilities in respect of the Process include:
· Obtaining an understanding of the Process, but not
for the purpose of providing a conclusion on the
effectiveness of the Process, including the outcome
of the Process;
· Considering whether the information identified
addresses the applicable disclosure requirements of
the ESRS; and
· Designing and performing procedures to evaluate
whether the Process is consistent with the Group’s
description of its Process, as disclosed in the section
titled 'Double materiality assessment'.
Our other responsibilities in respect of the Sustaina-
bility Statement include:
· Identifying where material misstatements are likely
to arise, whether due to fraud or error; and
· Designing and performing procedures responsive to
disclosures in the Sustainability Statement where
material misstatements are likely to arise. The risk
of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of
internal control.
Summary of the work performed
A limited assurance engagement involves performing
procedures to obtain evidence about the Sustainability
Statement. The nature, timing and extent of procedures
selected depend on professional judgement, including
the identification of disclosures where material
misstatements are likely to arise, whether due to fraud
or error, in the Sustainability Statement.
In conducting our limited assurance engagement, with
respect to the Process, we:
· Obtained an understanding of the Process by
performing inquiries to understand the sources of the
information used by management; and reviewing the
Group’s internal documentation of its Process; and
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Hellerup, 27 February 2025
PricewaterhouseCoopers
Statsautoriseret Revisionspartnerselskab
CVR no 33 77 12 31
Anders Stig Lauritsen Daniel Sitch
State Authorised Public Accountant State Authorised Public Accountant
mne32800 mne47889
· Evaluated whether the evidence obtained from our
procedures about the Process implemented by the
Group was consistent with the description of the
Process set out in the section titled 'Double materi-
ality assessment'.
In conducting our limited assurance engagement, with
respect to the Sustainability Statement, we:
· Obtained an understanding of the Group’s reporting
processes relevant to the preparation of its Sustain-
ability Statement including the consolidation
processes by obtaining an understanding of the
Group’s control environment, processes and infor-
mation systems relevant to the preparation of the
Sustainability Statement but not evaluating the
design of particular control activities, obtaining
evidence about their implementation or testing their
operating effectiveness;
· Evaluated whether the information identified by the
Process is included in the Sustainability Statement;
· Evaluated whether the structure and the presentation
of the Sustainability Statement are in accordance
with the ESRS;
· Performed inquiries of relevant personnel and
analytical procedures on selected information in the
Sustainability Statement;
· Performed substantive assurance procedures on
selected information in the Sustainability Statement;
· Where applicable, compared disclosures in the
Sustainability Statement with the corresponding
disclosures in the financial statements and manage-
ment’s review;
· Evaluated the methods, assumptions and data for
developing estimates and forward-looking informa-
tion; and
· Obtained an understanding of the Group’s process
to identify taxonomy-eligible and taxonomy-aligned
economic activities and the corresponding disclo-
sures in the Sustainability Statement.
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Company information
Brødrene A. & O
. Johansen A/
S Rørvang 3
DK-2620 Albertslund
Phone: +45 70 28 00 00
Website: www.ao.dk
CVR number: 58 21 06 17
LEI code 5299004B6ZEGVCR9ZR75
ID code: DK0060803831
Founded: 1914
Registered Office: Albertslund
Board of Directors
Henning Dyremose, Chair
Erik Holm, Deputy Chair
René Alberg
Ann Fogelgren
Peter Gath
Leif Hummel
Marlene L. Jakobsen
Niels A. Johansen
Executive Board
Niels A. Johansen, Chief Executive Officer
Stefan Funch Jensen, Chief Transformation Officer
Lili Johansen, Chief Human Resources Officer
Per Toelstang, Chief Financial Officer/
Deputy Chief Executive Officer
Auditors
PricewaterhouseCoopers
Statsautoriseret Revisionspartnerselskab
Annual General Meeting
The Annual General Meeting will be held on 21
March 2025.
Company information
In brief Performance Corporate governance Sustainability statementsStrategy
Financial statements
Annual Report 2024

Brødrene A & O Johansen A/S
Rørvang 3, DK-2620 Albertslund, Denmark
CVR no. 58 21 06 17
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