Aalborg Portland Holding A/S
P.O. Box 165, Rørdalsvej 44, 9220 Aalborg Øst
CVR No 14 24 44 41
Annual Report 2022
1 January 2022 - 31 December 2022
Contents
1
Management’s review
Profile ........................................................... 2
Financial highlights ....................................... 3
Management’s review .................................. 4
Financial review ............................................ 10
Risk management ........................................ 12
Financial statements (Group)
Income statement ......................................... 16
Statement of comprehensive income ........... 17
Cash flow statement ..................................... 18
Balance sheet ............................................... 19
Statement of shareholders’ equity ................ 21
Notes ............................................................ 22
Financial statements (Parent company)
Income statement ......................................... 56
Statement of comprehensive income ........... 56
Cash flow statement ..................................... 57
Balance sheet ............................................... 58
Statement of shareholders’ equity ................ 60
Notes ............................................................ 61
Signatures
Statement by the Board of Directors
and the Executive Board .............................. 70
Independent auditor’s report ........................ 71
The Group
Management ................................................ 73
Companies in the Group ............................... 74
Addresses ..................................................... 75
Profile
2
Part of the Cementir Group
Aalborg Portland Holding A/S, Denmark, has its head office in Aalborg, Denmark and is the parent company
in the Aalborg Portland Holding Group, which is part of the Cementir Group.
Aalborg Portland Holding A/S and the Group are included in the Group financial statements for Cementir
Holding N.V., the Netherlands, and Caltagirone S.p.A., Italy.
Cementir Holding N.V. has its registered head office in Amsterdam and its secondary office in Rome. It is listed
on the Italian Stock Exchange in Milan (code CEM) and is part of the listed Caltagirone Group.
www.cementirholding.com.
Nordic & Baltic Belgium Overseas
Türkiye
A leading
cement
producer in the
Nordic region
Leading supplier
of ready-mixed
concrete in the
Nordic region
One of the largest
producers of ce-
ment, ready-mixed
concrete and ag-
gregates in Bel-
gium
World-leading pro-
ducer of
white cement
Extensive
activities in Tü-
rkiye
Aalborg Portland
produces grey and
white cement at its
plant in Aalborg.
The products are
sold in Denmark
and neighbouring
countries.
1,889,000
tonnes of grey ce-
ment
589,000
tonnes of white ce-
ment
Unicon is market
leader within ready-
mixed concrete in
the Nordic region.
Production takes
place at 65 plants in
Denmark, Norway
and Sweden.
Quarrying and sale
of aggregates
(mainly granite and
gravel) from 9 sites
in Denmark and
Sweden.
2,195,000
m
3
of ready-mixed
concrete
3,217,000
tonnes of aggre-
g
ates
CCB is a leader in
the manufacture of
cement that meet
specific implementa-
tion criteria: conven-
tional construction
and masonry work,
work of high aes-
thetic quality, struc-
tures in harsh envi-
ronments and oil
well drilling.
CCB has nine
ready-mixed con-
crete plants in Bel-
gium and five in
France.
2,030,000
tonnes of grey ce-
ment
886,000
m
3
of ready-mixed
concrete
5,549,000
tonnes of aggre-
gates
Production at plants
in the USA, Egypt,
Malaysia and China.
White cement is
sold in a number of
markets worldwide.
2,243,000
tonnes of white ce-
ment
Cimentas is among
the largest cement
groups in Türkiye with
production at several
sites in the country.
Cimentas also has 19
ready-mixed concrete
plants.
Recydia AS pro-
cesses and recycles
waste in Türkiye and
UK.
4,086,000
tonnes of grey cement
1,718,000
m
3
of ready-mixed
concrete
1,696,000
tonnes of aggregates
Financial highlights
3
Financial r
atios
EBITDA ratio Earnings before depreciation/amortisation, interest and tax (EBITDA)
Revenue
EBIT ratio Earnings before interest and tax (EBIT)
Revenue
ROCE NOPA
T
Average capital employed
NOPAT Net Operating Profit After Tax
Earnings before interest and tax (EBIT) x (1 – effective tax rate)
Capital employed Intangible assets + tangible assets + working capital
Equity ratio Shareholders' equity
Total assets
Re
turn on equity Profit
Average shareholders' equity
Net interest-bearing
debt (NIBD) Interest-bearing liabilities less interest-bearing assets
Working capital Inventories, trade receivables and trade payables.
EURm
2018 2019 2020 2021 2022
CONSOLIDATED INCOME STATEMENT
Revenue 1.193,4 1.214,2 1.225,2 1.360,2 1.723,3
Earnings before depreciation/amortisation, impairment
losses, provisions, interest and tax (EBITDA) 235,9 255,2 278,3 329,1 347,3
EBITDA ratio 19,8% 21,0% 22,7% 24,2% 20,2%
Earnings before interest and tax (EBIT) 152,8 146,9 174,5 219,2 217,8
EBIT ratio 12,8% 12,1% 14,2% 16,1% 12,6%
Earnings before tax (EBT) 175,2 132,4 162,1 208,5 253,3
Profit for the year 142,8 95,1 124,9 150,9 196,3
CASH FLOWS
Cash flows from operating activities (CFFO) 140,9 209,1 250,9 249,6 294,4
Cash flows from investing activities (CFFI) * -172,9 -28,8 -77,3 -82,1 -100,9
Free cash flow (FCF) -31,9 180,3 173,6 167,6 193,5
* Hereof investments in intangible assest and property, -66,2 -61,5 -57,1 -81,5
-105,1
p
lant and equipment (excl. assets acquired at acquisition
o
f enterpris es)
BALANCE SHEET
Total assets 1.828,8 1.909,9 1.841,2 1.895,0 2.302,3
Consolidated shareholders' equity 927,6 1.020,9 1.040,3 1.127,9 1.392,3
Net interest-bearing debt (NIBD) 195,3 138,8 0,8 -123,0 -228,1
Working capital (WC) 103,4 93,9 76,2 64,6 54,8
FINANCIAL RATIOS
Including non-controlling interests' share
Return on equity 17% 10% 12% 14% 16%
Equity ratio 51% 53% 57% 60% 60%
Return on capital employed (ROCE) 10% 8% 10% 13% 13%
NIBD/EBITDA factor 0,8 0,5 0,0 (0,4) -0,7
Number of employees at 31 December 3.012 2.969 2.951 3.042 3.046
Number of employees in Denmark 720 727 702 770 783
Lehigh White Cement Company, USA (LWCC) is consolidated from 1 April 2018.
The financial ratios have been calculated in accordance with the definitions below:
IFRS 16, Leases, was adopted 1 January 2019. Throughout the report, no figures prior to 1 January 2019 have been restated.
Management’s review
4
Continued investment in increased sustainability
The Aalborg Portland Holding Group continues to plan and implement environmental improvements, reflecting
the high priority placed upon sustainability by society. At the same time, keen competition means that renewal
and development remain essential in order to maintain sales and competitiveness.
Overall, the Group experienced good growth and satisfactory sales among its business entities around the
world, but also sharply rising energy and logistical costs, particularly in the Nordic region.
Profits in 2022 for the Aalborg Portland Holding Group on the whole lived up to expectations. Revenue reached EUR
1,723m against EUR 1,360m the previous year, corresponding to an increase of EUR 363m or 27%.
The Group’s earnings before depreciation and amortisation (EBITDA) were EUR 347m, 6% higher than in 2021 when
EBITDA was EUR 329m. The Group’s EBITDA ratio was 20.2% against 24.2% the previous year. Earnings were posi-
tively influenced by a value adjustment of EUR 16m relating to investment properties in Türkiye. Normalised for this,
EBITDA was EUR 331m, 8% higher than in 2021.
In the Nordic & Baltic region, the Group experienced a decline in activity related to the global macroeconomic
situation. Revenue was EUR 736m against EUR 617m the previous year, corresponding to growth of 19%.
Sales of cement, ready-mixed concrete and aggregates all increased. Regional earnings before depreciation
and amortisation (EBITDA) were EUR 166m, 12% up on 2021 when EBITDA was EUR 148m. Net earnings for
cement were significantly impacted by volatile market prices for raw materials, energy and logistics costs. Price
increases have been implemented from the beginning of 2022, while input costs had already increased in 2021,
which had a negative impact on 2021 earnings. A satisfactory result was reported for ready-mixed concrete and
aggregates in the three Nordic countries on par with the previous year.
The Belgian cement group Compagnie des Ciments Belges (CCB) contributed with a revenue of EUR 334m in
2022, against EUR 275m the previous year, an increase of 22%. EBITDA was EUR 76m, 12% higher than in
2021 when EBITDA was EUR 69m. The improvement in the Belgian and French markets was mainly due to the
adjustment of sales prices related to significant price increases on input factors, which had a negative impact
on 2022 earnings. Volumes sold in 2022 were on level with 2021.
The Turkish cement group Cimentas continued to experience difficult market conditions due to political uncer-
tainty, the devaluation of the Turkish lira and tough price competition, which had a negative impact on earnings.
Revenue was EUR 275m against EUR 173m the previous year, an increase of 59%. EBITDA was EUR 31m
against EUR 44m the previous year. The decrease was partly due to market conditions and partly to a value
adjustment relating to investment properties in Türkiye, which was EUR 16m in 2022 against EUR 23m in the
previous year.
In the USA, the Group maintained its market leadership in white cement through its ownership interest in
Lehigh White Cement Company (LWCC). Volume sold in 2022 was on a level with 2021. Revenue in 2022 was
EUR 196m against EUR 155m the previous year, and EBITDA was EUR 29m against EUR 24m in 2021.
In Egypt, revenue increased in 2022 by 13% to EUR 57m, and EBITDA was EUR 12m against EUR 11m in
2021.
Finally, China and Malaysia delivered revenue from white cement of EUR 125m against EUR 108m the previ-
ous year. EBITDA was EUR 23m against EUR 27m in 2021.
The Group’s earnings before interest and tax (EBIT) were EUR 218m, 1% lower than in 2021 when EBIT was EUR
219m.
Net financial income amounted to EUR 35m in 2022 against an expense of EUR 12m the previous year.
This brought earnings before tax of EUR 253m, compared with EUR 208m in 2021, an increase of 21%.
Management’s review
5
Solid balance sheet and strong cash flow from operations
A healthy economy and strong financial base provide opportunities for long-term value-adding and sustainable invest-
ments.
In 2022, constant focus on high operating efficiency and management of working capital led to a positive cash flow from
operation cash (CFFO) of EUR 294m against EUR 250m the previous year.
The cash flow was able to fund the year’s investments of EUR 101m, which were predominantly used for operating effi-
ciency improvements and not least a number of energy-efficiency and environmental projects. The Group had a free
cash flow of EUR 194m.
At 31 December 2022, the Group had net interest-bearing assets of EUR 228m against net interest-bearing assets of
EUR 123m the previous year, an increase of EUR 105m in 2022.
Shareholders’ equity was EUR 1,392m at 31 December 2022. The equity ratio was thus 60%, same level as the previ-
ous year. The return on equity was 16% in 2022, while the return on capital employed (ROCE) was 13%. Same level as
the previous year.
Sustainable production of sustainable products
The Aalborg Portland Holding Group has a long-standing tradition of social and not least environmental responsibility in
the countries where it operates. There is an ongoing focus on a number of projects that support society’s sustainability
goals. The Group is committed to contributing significantly to society’s climate goals and therefore invests substantial
resources in ongoing environmental improvements.
Society’s heightened sustainability awareness is reflected in growing interest and demand among customers for prod-
ucts manufactured with sustainability in mind. The Group’s long-standing focus in this regard provides its products with
a prominent place in customers’ deliberations.
The Group has an effective, well managed and highly prioritised development structure aimed at delivering increasingly
sustainable processes, fuels and products.
With 1990 as the baseline, the Group has targeted a 30% cut in CO
2
emission per tonne of cement by 2030. Emissions
will be reduced to less than 500 kg per tonne of grey cement in line with the EU’s taxonomy for sustainable invest-
ments. In the longer term - the period to 2050 – the Group’s vision is to reduce CO
2
emissions to zero. Achieving this
ambition will require large-scale storage of CO
2
.
For the next three years (2023-2025), EUR 86m has been allocated for investments to strengthen sustainability. In the
years ahead, areas of focus will include the following:
After obtaining a global patent for a completely new technology, obtaining CE marking and inclusion in the Dan-
ish standard for cement, sales of the Group's product series Futurecem
TM
began in 2021. Futurecem
TM
is man-
ufactured with up to 30% lower CO
2
emissions than previous products.
Interest and demand among builders for sustainable cement increased significantly in 2022 and is a testament
to an increasingly widespread ambition and strategic interest in transitioning construction towards greater sus-
tainability. As a result, Futurecem
TM
is clearly attracting growing attention. Applications for Futurecem
TM
will
include ready-mixed concrete and precast concrete elements for an ambitious sustainable building project,
UN17 Village, consisting of more than 500 apartments in Copenhagen’s Ørestaden district. When completed in
2024, the project will be known as the world's first housing development to apply 17 UN sustainable develop-
ment goals to a single building.
Further development of Futurecem™ is under way. The objective now is to reduce CO
2
emissions by up to
50% against the present level.
Development of new, advanced and more sustainable products based on white cement and the Group’s pa-
tented Futurecem™ technology.
Management’s review
6
New investments aimed at increasing the input of alternative fuels and biomass by up to 80% in grey cement
production at the Group’s factories. As part of a major refurbishment to a kiln installation at the cement plant in
Belgium, the use of alternative fuels and biomass will be increased from the current 40% to over 70%. This will
lead to lower CO
2
emissions and reduce the use of fossil fuels.
The use of fossil fuels, such as coal and petroleum coke, in the production of white cement will be reduced by
increasing the share of alternative fuels for heating our cement kilns.
Investment in a wind farm with a capacity of 8.4 MW at the Aalborg cement plant. This will enable 80% of elec-
tricity consumption to be met by renewable energy sources.
The goal of supplying CO
2
-neutral district heating to the city of Aalborg, meeting the heating needs of 30,000
households, was achieved in 2020. This corresponds to an annual CO
2
reduction of 150,000 tonnes. New in-
vestments in the utilisation of heat from factory production will more than double the supply of district heating
and thereby further contribute to the city’s climate ambition, which includes phasing out fossil fuels at the city’s
power plant by 2028. Potentially, at least 75,000 households can receive surplus heat from the Aalborg cement
factory.
The spotlight is on CO
2
reduction across the value chain. This includes the recycling of crushed concrete in
concrete products, road distribution of concrete by Denmark’s first electric vehicles, and launch of concretes
with up to a 25% lower CO
2
footprint under the UNI-Green brand.
Unicon, Denmark’s largest producer of ready-mixed concrete, introduced the world’s first serially produced electric truck
mixer in 2021. The launch not only marked a new milestone in the conversion of the Unicon fleet, which already in-
cludes Denmark’s only hybrid and HVO-powered truck mixers, but was also a major step for the entire industry towards
more sustainable buildings. During 2023, Unicon will continue to expand its fleet of electric truck mixers for the Danish
market.
As mentioned, the Group is exploring and assessing several options for utilising a wider array of energy sources as well
as collecting and storing CO
2
from its production processes. In close collaboration with Aalborg University and a num-
ber of companies, a study has begun into the options for collection and storage of CO
2
and for conversion to fuel at Aal-
borg Portland in Denmark. The so-called GreenCem project, supported by the Energy Technology Development and
Demonstration Program (EUDP), will clarify the necessary technical solutions and economic prerequisites. The Aalborg
Portland Holding Group may also become the world’s first cement producer – as yet on an experimental basis - to col-
lect, transport and store CO
2
underground. The Group is part of the consortium behind Project Greensand 2, which is
seeking funding for a pilot project to store CO
2
underground and under the North Sea.
The Aalborg Portland Holding Group is part of Cementir Holding N.V., which publishes an annual Sustainability Report.
The report is available at https://www.cementirholding.com/en/sustainability/sustainability-report-and-documents.
The Cementir Group confirmed its rating under the Carbon Disclosure Project (CDP). CDP have in 2022 confirmed the
“A-“ rating achieved in 2021 and improved the rating on Water management from “B” to “A-“, reflecting the quality of
reporting for the Aalborg Portland Holding Group. This must be seen against an average rating of "B" for the European
and global cement industry.
Nordic & Baltic
In market and income terms, the Nordic & Baltic region expanded its strong, vertically integrated position within cement,
ready-mixed concrete and aggregates. Aalborg Portland is Europe’s largest cement plant with seven kiln lines, its own
unique port facility, raw material resources (chalk) in close proximity, and a product distribution network consisting of
nine terminals in Denmark and northern Europe. The region also commands 65 ready-mixed concrete facilities in the
Nordic countries and nine raw material quarries (aggregates) in Denmark and Sweden.
The Nordic & Baltic region accounts for 43% of the Group’s total revenue. In 2022, markets in Denmark and Sweden
were impacted by the decline in the global macro economy, which resulted in declining activity in the construction of
residential as well as industrial buildings, while in Norway we continued to see modest growth in activity primarily re-
lated to infrastructure projects. Revenue increased by 19% due to price adjustments related to significant cost price
increases on all major input factors like raw materials, energy and logistics costs. Despite the reduction in activity levels
compared to 2021, earnings improved by 12% due to price adjustments implemented in 2022, while cost price in-
creases started in 2021 and had a negative impact on financial performance in 2021.
Management’s review
7
The sales subsidiaries in France, Belgium and Poland managed to maintain their market position for sales of Aalborg-
manufactured white cement in a market environment with declining activity.
In the ready-mixed concrete segment, the Group is investing to consolidate its market position in the Nordic region and
the facilities are being continuously upgraded. Despite challenging market conditions throughout 2022, affected by high
volatility and lower demand driven by record-high inflation, the ready-mixed segment delivered one of the best results in
its history. The Group has realised an increase in market share compared to 2021. Cost reductions were initiated in
2022 and the business model adjusted to be more scalable so it is ready to follow fluctuations in the market. Sustaina-
bility initiatives continue to be a focus area, and the Group is supporting reduced CO
2
emissions from the construction
industry by continuously improving the concrete composition, while the first fully electric concrete truck mixer was deliv-
ered in 2021 and the fleet will be continuously updated in the coming years.
Benelux & France
Compagnie des Ciments Belges S.A. (CCB) is situated in southwest Belgium. CCB’s cement factory in Guarain is the
largest in the region and has raw material reserves for 80 years’ production. The company has a significant market
share in Belgium and substantial exports to both France and the Netherlands. CCB also has extensive production of
aggregates, mainly gravel and stone, at two sites with substantial reserves. Furthermore, CCB is a leading supplier of
ready-mixed concrete in Belgium with nine plants, and it also has five plants in northern France.
The region accounts for 20% of the Group's total revenue. The company continued to develop positively with an in-
crease in revenue as well as EBITDA – revenue increased by 22% and EBITDA by 12% in 2022.
Despite the decline in the global economy, a high level of activity was successfully maintained at all plants. As a conse-
quence, the company retained a strong market position based on high product quality and constant focus on customer
needs. The company continued the deployment of the 2030 sustainability roadmap based on investments in production
technology, which will reduce CO
2
emissions, and a new product portfolio that will continuously reduce the CO
2
footprint
of cement and ready-mixed concrete.
Türkiye
Cimentas is among the largest cement groups in western Türkiye with production at two plants strategically located in
Izmir and Edirne, and a further two cement plants in Kars and Elazig in the east of the country. Combined capacity is
5.4m tonnes. The revenue for this region accounts for 16% of the Group's total revenue.
In 2022, sales of grey cement and clinker amounted to 4.1m tonnes, a decline of 9% compared to the previous year.
The year was significantly impacted by difficult market conditions related to the declining global economy, which re-
sulted in a decline in construction activity.
Financial performance in Türkiye was significantly affected by high inflation. While revenue increased by 59%, inflation
related to raw materials, energy and logistics costs significantly impacted the result and EBITDA declined by 30% com-
pared to the previous year.
In addition to cement production, Cimentas has 21 concrete factories, and sales of ready-mixed concrete amounted to
1.7m m
3
in 2022 against 1.9m m
3
in 2021. Cimentas commenced operations with aggregates during 2021 and 2022
sales increased to 1.7m tonnes from 1.2m tonnes in 2021, thereby strengthening its vertically integrated position com-
prising cement, ready-mixed concrete and aggregates.
In addition, the company has municipal waste management operations and renewable energy operations in the UK and
Türkiye. These operations must be seen in the context of the steadily increasing use of alternative fuels in the produc-
tion of cement.
Management’s review
8
Global leader in white cement
The Aalborg Portland Holding Group is the leading global supplier of white cement with a market share of approx. 15%.
With its production facilities in Denmark, the USA, Malaysia, China and Egypt, the Group has a total capacity of approx.
3.3m tonnes.
Revenue from white cement (excluding supplies from Denmark) accounts for 22% of the Group’s total. Revenue grew
by 20% in 2022 and EBITDA increased by 3% against 2021.
In North America, the Group has white cement production in Pennsylvania and Texas, imports from its other units and
distribution throughout North America. The Group is the market leader in white cement with annual sales of 669,000
tonnes. Sales of white cement were at the same level as 2021, while EBITDA increased by 9%.
The Group’s factory in Egypt is the world's largest production plant for white cement. Growth was achieved in both
sales and earnings in 2022.
In 2022, the Group’s factory in China, which is Asia's largest plant for the production of white cement, reported a de-
cline in sales of 6%, while earnings declined by 18%, significantly affected by Covid-19 restrictions and increased logis-
tics costs.
In 2022, the Group’s company in Malaysia maintained its position as the largest supplier of white cement in Southeast
Asia and Australia with rising revenue but slightly lower earnings than the previous year due to increasing energy costs.
Reporting in accordance with Danish accounting legislation
Regarding the mandatory statement on corporate social responsibility, cf. section 99(a) of the Danish Financial State-
ments Act, reference is made to “Sustainability Report 2022” published by the Group's owner Cementir Holding N.V.,
Netherlands. The statement is available at https://www.cementirholding.com/en/sustainability/sustainability-governance.
In relation to the provisions in Denmark on the gender composition of management in large companies, cf. section
139(a) of the Danish Companies Act and section 99(b) of the Danish Financial Statements Act, the Group's policy on
gender equality in recruitment and promotions continues, as the crucial consideration remains to find the best qualified
persons for all positions in the organisation.
In order to achieve a balanced composition of management the Group wishes to increase the proportion of female
managers, and the work to attract female candidates for senior positions will continue in order to pursue our policy on
gender equality and achieve our goals in the Danish subsidiaries. As the number of employees in the Group's parent
company (Aalborg Portland Holding A/S) is less than 50, no goals or policies have been formulated for the proportion of
women at management level here.
The Board of Directors of the Group's parent company has one female and six male AGM-elected members. No
change in board members was relevant in 2022. The goal is to have at least two female members elected by the gen-
eral meeting by the end of 2023.
The Board of Directors of the Group’s subsidiary Aalborg Portland A/S has three male AGM-elected members, and
therefore the goal is not met. No change of board members was relevant in 2022, the aim of Aalborg Portland A/S is to
have at least one female AGM-elected member before the end of 2023.
The Board of Directors of the Group’s subsidiary Unicon A/S has three male AGM-elected members, so the goal has
not been met. No change of board members was relevant in 2022, and the aim of Unicon A/S is to have at least one
female AGM-elected member before the end of 2023.
In accordance with the Danish rules for large companies with operations relating to i.a. extraction of mineral deposits,
cf. section 99(c) of the Danish Financial Statements Act, the Group explains its payments to authorities in a note to the
consolidated financial statements. The payments relate in particular to direct and indirect taxes.
In accordance with the Danish rules for large companies, cf. section 99(d) of the Danish Financial Statements Act, Aal-
borg Portland Holding has issued its Policy on Data Ethics. The policy addresses the data ethics principles applied by
Aalborg Portland Holding and describes the approach to data processing covering all data types. This includes e.g. use
of new technologies and responsible use of data, including personal data protection (GDPR). Data Ethics is an
Management’s review
9
integrated part of the compliance programme of Aalborg Portland Holding and Group Management is overall responsi-
ble for the compliance of Data Ethic Policies. Implementation of the Data Ethics Policy at an operational level is an-
chored with Group IT. In 2022, Aalborg Portland Holding continued the work with data ethics issues in accordance with
the policy. The policy is reviewed on a yearly basis and no changes have been made during 2022. The policy is availa-
ble at https://aalborgportlandholding.com/en/data-ethics.
Expectations for 2023
The macroeconomic climate is characterised by considerable uncertainty due to the war in Ukraine, high inflation, in-
creasing interest rates and their possible repercussions on the real economy. According to their latest forecasts, inter-
national institutions expect global growth to weaken this year due to high energy prices, the weakness of household
disposable income and more restrictive financial conditions.
The Group has defined specific sustainability objectives in line with the United Nations’ Sustainable Development Goals
to promote the circular economy, reduce environmental impact, provide value to people and communities and to pro-
mote health and safety in the workplace. These ESG targets are embedded in the Group’s strategic objectives and
management’s incentive schemes.
The Roadmap to 2030 has been updated and includes objectives to further reduce Scope 1 CO
2 emissions to 460 kg
per tonne of grey cement, an emissions level lower than the limits imposed by the EU Taxonomy. For white cement, a
niche product for specific applications, the plan is to reduce emissions to 738 kg per tonne by 2030.
The levers to achieve these new objectives include the reduction of clinker content in cement, greater use of less pollut-
ing or alternative fuels, and the optimisation of thermal efficiency. Part of the reduction in CO
2 emissions will be
achieved through new Carbon Capture and Storage (CCS) technology at its Aalborg plant in Denmark, where the
Group has started a pilot project partly financed by the Danish Innovation Fund.
In the three-year period 2023-2025, the Group expects to invest approximately EUR 86m in sustainability projects in-
cluding: the upgrade of a new kiln at the Belgian plant to increase the use of alternative fuels from the current 40% to
over 70%; increasing alternative fuel usage in Türkiye and natural gas in other Group plants; other projects to reduce
the climate impact of transport, procurement, logistics and the optimisation of water resources in the production pro-
cess.
The Group will continue to increase the production of new, low carbon cements and other sustainable products with
high added value such as Futurecem
TM
, which makes it possible to reduce the clinker content in cement and therefore
to reduce CO
2 emissions by approximately 30%. Some pilot projects are also being undertaken in carbon capture, us-
age and storage, with the participation of leading industrial and technological partners.
The Group will continue to implement a series of measures to increase the efficiency of manufacturing and logistics
processes, making the entire production structure leaner, more dynamic and efficient through process digitisation initia-
tives, intelligent preventive and predictive maintenance, advanced production control systems, intelligent logistics,
warehouse management and integrated digital sales planning.
The Group will continue to invest in strengthening vertical integration and its competitive position in the Nordic & Baltic,
Belgian and Türkiye business regions, as well as consolidating its global leadership in white cement with targeted ac-
tions in strategic markets. The Group will also be ready to seize potential external growth opportunities in its core busi-
ness.
The Group's commitment will be focused on health and safety through the initiatives envisaged by the Zero Accidents
programme, on the development of human capital and the enhancement of skills through an integrated system of eval-
uation and growth of people to improve individual and the entire organisation’s performance.
For the year 2023, the Group expects to achieve consolidated revenue of over EUR 1.8bn (2022: EUR 1.7bn) and an
EBITDA between EUR 330m and 340m.
This forward-looking indication does not include the impact of the application of IAS 29 or non-recurring items, and
does not take into account any resurgence of the Covid-19 pandemic or any worsening of the geopolitical situation in
the coming months.
Financial review
10
Profit and loss
The Group’s volume sales of cement amounted to 10.8m tonnes in 2022, which was 3% below the previous year.
These sales included 2.8m tonnes of white cement, a reduction of 5%, which spans moderate growth in Malaysia, neu-
tral development in the USA and decreases in Denmark, Egypt and China. Sales of grey cement amounted to 8.0m
tonnes, a 2% reduction compared to the previous year. Sales were stable in the Nordic & Baltic region and Benelux &
France, while Türkiye saw declining sales.
Sales volumes of ready-mixed concrete amounted to 4.8m m
3
in 2022, 6% below the previous year. Sales decreased in
Türkiye (9%), Sweden (13%), Denmark (5%) and Benelux & France (5%), while an increase was realised in Norway
(3%).
Sales of aggregates (mainly granite and gravel) amounted to 10.5m tonnes against 11.1m tonnes the previous year, a
decrease of 5%. Sales decreased in the Nordic region (27%) and in Benelux & France (5%), while they increased in
Türkiye (39%).
The Group's revenue in 2022 amounted to EUR 1,723.3m against EUR 1,360.2m the previous year, an increase of
27%. The rise primarily related to operations in Nordic & Baltic (19%), Türkiye (59%), Egypt (13%), China (5%), Malay-
sia (29%), Benelux & France (22%) and USA (26%).
Earnings before interest, depreciation and amortisation (EBITDA) increased by EUR 18.2m or 5% to EUR 347.3m
(EUR 329.1m). The following regions achieved higher earnings than in 2021: Nordic & Baltic EUR +17.4m, Türkiye
EUR +10.7m (incl. non-recurring income, cf. below), Benelux & France EUR +7.9m, USA EUR +5.1m and Egypt EUR
+0.9m. Earnings were down on the previous year in the following regions: Malaysia EUR -0.5m and China EUR -3.7m.
EBITDA was positively influenced by non-recurring income of EUR 16.3m relating to a value adjustment of investment
property in Türkiye. After normalising for this, the Group’s EBITDA amounted to EUR 331.0m, 8% higher than in 2021
when the EBITDA was EUR 306.1m.
The operating ratio (EBITDA ratio) declined by 4.0 percentage points from 24.2% in 2021 to 20.2% in 2022. Adjusted
for the non-recurring income mentioned, the EBITDA ratio decreased by 3.3 percentage points to 19.2%.
Earnings before interest and tax (EBIT) declined by EUR 1.4m to EUR 217.8m (EUR 219.2m).
Net financial income amounted to EUR 34.6m in 2022 against an expense of EUR 11.6m the previous year.
Earnings before tax were EUR 253.3m against EUR 208.5m in 2021. Tax on profit for the year amounted to EUR
57.0m against EUR 57.6m the previous year.
This net profit for the year was EUR 196.3m against EUR 150.9m in 2021.
Cash flows
The Group constantly focuses on optimising both cash flows and working capital.
Cash flow from operations (CFFO) amounted to EUR 294.4m for 2022, against EUR 249.6 m in 2021.
The Group’s capital expenditure on property, plant and equipment amounted to EUR 100.9m, which is predominantly
related to improvements in operating efficiency and various energy-efficiency and environmental projects.
The free cash flow after investments (FCF) amounted to EUR 193.5m in 2022, against EUR 167.6m the previous year.
The dividend paid to Cementir Holding amounted to EUR 70.1m (2021: EUR 26.0m).
Financial position and liquidity
The Group had net interest-bearing assets of EUR 228.1m at year-end 2022 against net-interest bearing assets of EUR
123.0m the previous year.
Financial review
11
Long-term financing comprised mortgage-credit loans of EUR 134.0m.
The Group’s liquidity reserve consists of unrestricted cash and undrawn credit facilities signed by Cementir Holding. In
addition, the Aalborg Portland Holding Group has a separate uncommitted credit facility.
Balance sheet
Non-current assets amounted to EUR 1,386.4m at 31 December 2022.
Current assets amounted to EUR 915.9m, 29% more than at 31 December 2021 (EUR 708.9m). The increase was due
to cash funds rising by EUR 23.2m and inventories and receivables increasing by EUR 145.4m.
The Group’s working capital (trade receivables and inventories less trade payables) amounted to EUR 54.8m at end-
2022 against EUR 64.6m the previous year, a decrease of EUR 9.8m or 15%.
Shareholders’ equity
Total shareholders’ equity amounted to EUR 1,392.3m at 31 December 2022, against EUR 1,127.9m at 31 December
2021. Shareholders’ equity was positively influenced by exchange rate adjustments of approx. EUR 131.6m in foreign
entities. These adjustments primarily related to the weakening of the Turkish lira (TRY) and the Egyptian Pound (EGP).
The equity ratio was 60% at 31 December 2022 (60% at the end of 2021). Return on equity was 13% in 2022, un-
changed from 13% the previous year.
Return on capital employed
In 2022, as in previous years, intensive efforts were made to increase capital efficiency across the Group.
Return on capital employed (ROCE), which expresses the Group’s ability to generate a satisfactory profit, was posi-
tively influenced both by the increased earnings and the reduction in capital employed. ROCE was 13.0% in 2022
against 12.4% in 2021.
Risk Management
12
Like any other company, the Aalborg Portland Holding Group (the Company) is affected by risks and uncertainties relat-
ing to its business activities, and so it works continuously on strengthening risk management. The Group employs a
holistic risk management approach in which the most critical risks are:
Market conditions
Framework conditions
Environmental impacts
Organisation
Financial risks
The Group continuously monitors and addresses both risks and opportunities in its market areas with a view to achiev-
ing its strategic objectives.
Monitoring and control
The Group’s risk management is based on a standardised risk process. The assessment of the individual risk factors is
based on the likelihood of the risks occurring and their potential impact on earnings, operations and reputation in this
event.
The risk management process is embedded in the management of the business units. The business units together with
the corporate and service functions are responsible for identifying, analysing and managing risks and for reporting on
progress and initiating control measures. Risk owners are appointed specifically for the most significant risks. The indi-
vidual unit managements are responsible for the integration of risk assessments into all major decisions.
The individual risk reports received from the business units are consolidated at Group level. The combined risk report is
included in Group management’s monitoring and risk management processes. Group management is responsible for
ensuring that the overall level of risk for the Group as a whole is of an acceptable level and that risk management pro-
cedures are implemented.
Group management reports periodically or as needed to the Board of Directors, which determines the overall policies
and framework for day-to-day management.
Risk Management
13
Market conditions
Competition
Loss of major customers and projects may pose a significant risk in relation to the achievement of the Group's objec-
tives. The Group continuously monitors its markets and takes ongoing actions to adapt to and meet the competitive en-
vironment and market changes.
Raw materials and energy prices
The Group uses large quantities of energy in cement manufacture and is therefore sensitive to long-lasting price
changes. In order to mitigate this risk, the purchase of energy can partly be hedged by establishing contracts for terms
of up to 24 months.
Access to essential raw materials is ensured through ownership of deposits, extraction licences, long-term contracts
and diversity in terms of suppliers. Furthermore, the market for raw materials is considered production-critical and is
carefully monitored. A small number of raw materials are subject to particular uncertainty as regards long-term security
of supply, and the Group works proactively to find appropriate solutions to this issue.
Framework conditions
Legislation and other regulations
The Group is subject
to regulatory changes by the authorities and organisations in a variety of areas. Non-compliance
with recommendations and regulations is often subject to substantial fines and constitutes a potential risk to overall
Group earnings. The Group is committed to conforming with all aspects of competitive legislation, environmental legis-
lation and internal rules regarding fraud. The Group trains relevant personnel in compliance with current requirements
on an ongoing basis.
Political risks
The Group operates globally, including in emerging and growth markets with special political risks. This can have mate-
rial consequences both for production conditions and sales. The Group pursues active dialogue at all levels with politi-
cians, authorities and interest groups to create a good basis for continued operation and to enable the Group's opera-
tions to be adjusted when appropriate.
Taxes and levies
The Group’s production is subject to substantial taxation, particularly in Denmark. Tax represents a material area of risk
for the Group as it impacts directly on competitiveness and sales potential. It is particularly difficult to compete on price
with cement producers from neighbouring countries that do not have high tax levels like Denmark.
CO
2
quotas
The future granting of CO
2
quotas to the Group’s production units may have a substantial financial impact. The Group
is therefore focused on complying with all requirements relating to the granting of such quotas. The Group also closely
monitors EU and national political issues concerning CO
2
quotas in relation to the Group’s expected development in the
EU area.
Environmental impacts
The Group's business units and management are very conscious of their environmental role and strive to recognise,
manage and counteract relevant risks in this regard. The manufacture of the Group's products consumes raw materials
and energy, but the environmental and climate characteristics of these products are very favourable.
Risk Management
14
It is the stated policy of the Group to contribute constructively and significantly to achieving society's climate goals, and
through the development of its products and production the Group therefore constantly strives to ensure a more envi-
ronmentally friendly and sustainable cement manufacturing process.
Organisation
Employees and management
The Group's continued success is dependent on the retention of experienced employees and managers and on the
recruitment of new skilled employees and managers to the Group's business units and support functions. Accordingly,
the Group attaches importance to providing attractive jobs with good development opportunities for employees and
managers.
IT systems
IT systems are used in all parts of the Group’s activities, including production, sales and finance. Operational disruption
and loss of data and communications would impact the Group negatively. Consequently, IT security and business conti-
nuity are accorded high priority, especially in connection with the implementation of new systems.
Financial risks
Financial risks, including currency risks, which are of material significance for the Group, are described in the notes to
the financial statements.
Income statement
Statement of comprehensive income
Cash flow statement
Consolidated balance sheet
Consolidated statement of shareholders' equity
Notes:
1 Revenue
2 Cost of sales
3 Research and development costs
4 Staff costs
5 Fees to the auditors appointed by the Annual General Meeting
6 Other operating income and other operating costs
7 Financial income and expenses
8 Income tax
9 Intangible assets
10 Acquisiton of enterprises
11 Property, plant and equipment
12 Investment properties
13 Other non-current assets
14 Investments in joint ventures
15 Deferred tax assets and deferred tax liabilities
16 Inventories
17 Trade receivables, other receivables and prepayments
18 Provisions for pensions and similar commitments
19 Provisions
20 Credit institutions and other borrowings
21 Change in liabilities from financing
22 Deferred income
23 Other payables
24 Charges and securities
25 Contingent liabilities, contractual obligations and contingent assets
26 Related party transactions
27 Financial risks and financial instruments
28 Türkiye - hyperinflated economy: Impacts of the application of IAS 29
29 Post-balance sheet events
30 Critical accounting policies as well as account estimated and judgements
31 Accounting policies
15
Consolidated income statement
EUR '000
2022
2021
Notes
16
1
Revenue
2+3+4
Cost of sales
Gross profit
4+17
Sales and distribution costs
4+5
Administrative expenses
6
Other operating income
6
Other operating costs
Earnings before interest and tax (EBIT)
14
Share of profit after tax, joint ventures
7
Financial income
7
Financial expenses
Earnings before tax (EBT)
8
Tax on profit for the year
Profit for the year
Attributable to:
Non-controlling interests
Shareholders in Aalborg Portland Holding A/S
Consolidated statement of comprehensive income
EUR '000
17
2022
2021
Notes
Profit for the year
Other comprehensive income
Items that cannot be reclassified to the income statement:
18+19
Actuarial gains/losses on defined benefit pension schemes
8
Tax
Items that can be reclassified to the income statement:
Exchange rate adjustments on translation of foreign entities
-37,095
Changes in fair value of financial instruments
8
Tax
-560
-719
-36,016
Other comprehensive income after tax
-33,135
Total comprehensive income
Attributable to:
Non-controlling interests
Shareholders in Aalborg Portland Holding A/S
Consolidated Cash flow statement
EUR '000
2022
2021
Notes
18
Profit for the period
Effect of hyperinflation
Reversal of amortisation and depreciation
Reversal of revaluation / impairment losses
-15,499
-23,057
Share of net profits of equity-accounted investees
-972
-818
Net financial income / expense
-14,185
Gains/losses on disposals
-3,311
-2,046
Income taxes
Change in employee benefits
-596
-76
Change in provisions (current and non-current)
Operating cash flows before changes in working capital
Increase / decrease inventories
-37,406
-39,935
Increase / decrease trade receivables
-36,407
-38,081
Increase / decrease trade payables
Change in non-current/current other assets/liabilities
-299
Change in current and deferred taxes
-8,203
-7,573
Operating cash flows
Dividends received
Interests received
Interests paid
-9,861
-3,974
Other financial income collected/financial expenses paid
-8,568
-3,931
Income taxes paid
-49,008
-47,587
Cash flow from operating activities
Investments in intangible assets
-14,641
-2,471
Investments in property, plant and equipment and investment property
-90,428
-79,036
10
Acquisitions in businesses
-2
-5,093
Proceeds from sale of intangible assets
Proceeds from sale of property, plant and equipment
Other variances investment assets
-2,370
Cash from investing activities
-100,925
-82,062
21
Proceeds from loans and borrowings
21
Repayment of borrowings
-24,560
-129,981
21
Payment of leases
-26,468
-2,516
Change in current financial assets
-105,619
Dividend distributed
-73,033
-28,683
Transactions with non-controlling interests
-571
-1,478
13
Other variances of equity
-1,142
-13,016
Cash flow from financing activities
-170,106
-137,663
Net change in cash and cash equivalent
Cash and cash equivalent exchange rate effect
-114
Cash and cash equivalent opening balance
Cash and cash equivalent closing
Consolidated balance sheet
EUR '000
19
ASSETS
2022
2021
Notes
Goodwill
Other intangible assets
Intangible assets in development
9
Intangible assets
Land and buildings
Plant and machinery
Property, plant and equipment in development
Right-of-use assets
11
Property, plant and equipment
12
Investment properties
13+14
Investments in joint ventures
13
Other non-current assets
13+15
Deferred tax assets
Other non-current assets
Total non-current assets
16
Inventories
17
Trade receivables
Amounts owed by related enterprises
Derivative financial instruments (positive fair value)
Income tax receivable
17
Other receivables
17
Prepayments
Receivables
Cash and cash equivalents
Total current assets
TOTAL ASSETS
Consolidated balance sheet
EUR '000
20
EQUITY AND LIABILITIES
2022
2021
Notes
Shareholder's equity
Share capital
Foreign currency translation reserve
-305,196
-422,070
Hedge reserve
Retained earnings
Aalborg Portland Holding A/S' share of shareholders' equity
Non-controlling interests' share of shareholders' equity
Total shareholders' equity
Liabilities
18
Pensions and similar liabilities
15
Deferred tax liabilities
19
Provisions
20+21+24
Credit institutions, etc.
Derivative financial instruments (negative fair value)
22
Deferred income
Non-current liabilities
20+21+24
Credit institutions, etc.
Trade payables
Amounts owed to Group enterprises
Derivative financial instruments (negative fair value)
Income tax payable
19
Provisions
Joint taxation contribution payables
23
Other payables
22
Deferred income
Current liabilities
Total liabilities
TOTAL EQUITY AND LIABILITIES
21
Consolidated statement of shareholders' equity
EUR '000
Share capital
Foreign
currency
translation
reserve
Hedge
reserve
Retained
earnings
Aalborg
Portland
Holding A/S'
total share
Non-
controlling
interests'
total share
Total equity
Shareholders' equity at 1 January
-422,070
Effect of hyperinflation on opening
Shareholders' equity at 1 January
-309,191
Comprehensive income in 2022
Profit for the year
Other comprehensive income
Exchange rate adjustments in translation
of foreign entities and hyperinflation
Changes in fair value of financial
instruments
Actuarial gains/losses on defined benefit
pension schemes
Tax on other comprehensive income
-1,102
-674
-556
Total comprehensive income
Transactions with owners
Dividend distributed
-70,110
-70,110
-2,923
-73,033
Transactions with non-controlling
interests
-561
-561
-10
-571
Total comprehensive income
-70,671
-70,671
-2,933
-73,604
Shareholders' equity at 31 December
2022
-305,196
Foreign
currency
translation
Hedge
Retained
Aalborg
Portland
Holding A/S'
Non-
controlling
interests'
Share capital
reserve
reserve
earnings
total share
total share
Total equity
Shareholders' equity at 1 January
-389,088
Comprehensive income in 2021
Profit for the year
Other comprehensive income
Exchange rate adjustments in translation
of foreign entities
-32,982
-32,982
-4,113
-37,095
Changes in fair value of financial
instruments
Actuarial gains/losses on defined benefit
pension schemes
Tax on other comprehensive income
-692
-640
-27
-667
Total comprehensive income
-32,982
Transactions with owners
Dividend distributed
-25,997
-25,997
-2,686
-28,683
Transactions with non-controlling
interests (capital increase)
-724
-724
-754
-1,478
Balance on intra-group acquisition of
shares in Spartan Hive and Aalborg
Portland Digital
Total comprehensive income
-26,721
-26,721
-3,440
-30,161
Shareholders' equity at 31 December
2021
-422,070
The share capital in 2022 and 2021 consists of:
1 share at DKK 150m
1 share at DKK 60m
2 shares at DKK 30m each
1 share at DKK 15m
5 shares at DKK 3m each
Dividends distributed to shareholders in 2022 were EUR 70.1m (2021: EUR 26.0m).
All shares are fully issued and paid up. One share of DKK 1,000 holds one vote.
Notes
EUR '000
1 Revenue 2022 2021
Split by produc
t
Sale of grey cement 562,643 393,396
Sale of white cement 464,408 385,046
Sale of ready-mixed concrete 519,808 439,259
Other sales* 176,399 142,481
1,723,258 1,360,182
Split by geograph
y
Europe Other 1,137,750 906,161
China/Malaysia 74,807 71,327
USA 205,656 160,665
Türkiye/Egypt 216,400 165,865
Other 88,645 56,164
1,723,258 1,360,182
2 Cost of sales
3 Research and development costs
Research and development costs paid 2,107 2,474
2,107 2,474
4 Staff costs
Wages and salaries and other remuneration 151,914 138,687
Pension costs, defined benefit scheme 3,070 3,010
Pension costs, defined contribution scheme 10,815 10,397
Social security costs 17,455 16,141
183,254 168,235
Number of employees at 31 December 3,046 3,042
Average number of full-time employees 3,076 2,990
Salaries and remunerations 6,484 6,504
Pension contributions 191 163
6,675 6,667
Hereof Board of Directors and Management 575 600
5 Fees to the auditors appointed by the Annual General Meetin
g
Total fees to PwC are specified as follows:
Statutory audit 1,052 1,052
Other assurance engagements -1 1
Tax and VAT advisory services 112 91
Other services 10 -53
1,173 1,091
Hereof fees to PwC 838 783
Fees to other auditors 335 20
* Other sales include concrete pipes, gravel, heat, waste processing, etc.
All revenue derives from contracts.
Hereof 115 employees at 31 December 2022 and 122 average full-time employees are included in the pro rata consolidated
company.
Cost of sales amounts to EUR 1,100.5m (2021: EUR 814.7m). Hereof direct staff costs amount to EUR 103.5m (2021: EUR
99.7m) and use of raw materials amounts to EUR 328.6m (2021: EUR 247.5m).
Remuneration of the Board of Directors represents EUR 75k in 2022 (2021: EUR 75k).
Remuneration of the Board of Directors, the Management and other
senior executives
22
Notes
EUR '000
6 Other operating income and other operating cost
s
2022 2021
Other operating income
Rent income 1,283 1,073
Profit on sale of property, plant and equipment 2,635 2,167
Value adjustment, investment property 16,331 23,420
Sale of scrap, spare parts and consumables 339 565
Other income 7,485 7,313
28,073 34,538
Other operating costs
Loss on sale of property, plant and equipment 434 120
Other costs 1,650 938
2,084 1,058
7 Financial income and expenses
Financial income
Interest, cash funds, etc. 2,833 1,572
Interest, Group enterprises 231 9,005
Financial income on derivatives 606 139
Exchange rate adjustments 79,541 8,642
83,211 19,358
Interest on financial assets measured at amortised cost 3,064 10,577
Financial expenses
Interest, credit institutions, etc. 10,151 3,355
Interest, Group enterprises 444 715
Losses on derivatives 5,551 2,683
Ineffective part of hedge 579 -290
Exchange rate adjustments 16,596 22,580
Other financial expenses 15,305 1,866
48,626 30,909
Interest on financial obligations measured at amortised cost 10,595 4,070
8 Income ta
x
Income ta
x
Current tax on the profit for the year/joint taxation contribution 50,012 44,540
Deferred tax adjustment 5,479 1,368
Other adjustments, including previous years 1,520 11,644
57,011 57,552
Taxes paid 49,008 47,587
Other income include sale of energy projects and other income.
According to legislation, the Parent Company is the administrative company of the compulsory Danish joint taxation.
23
Notes
EUR '000
8 Income tax (continued) 2022 2021
Reconciliation of tax rate
Tax according to Danish tax rate 22.0% 55,727 70,185
Difference in the tax rates applied by non-Danish subsidiaries relative to 22.0% 1,212 2,711
Non-taxable income and non-deductible expenses 1,856 -26,916
Non-taxable profit shares in joint ventures -210 -181
Expired tax loss regarding this and previous years 485 -2,603
Other, including adjustments previous years -1,849 14,409
Change of tax rates -210 -53
57,011 57,552
Applicable tax rate for the yea
r
23
%
28
%
Income tax recognised directly as other comprehensive incom
e
556 667
Total income ta
x
57,567 58,219
Payments to authoritie
s
EURk Quarry * Taxes ** Royalty Licenses Total
Aalborg Portland A/S, Denmark 1,329 16,572 0 0 17,901
Unicon A/S, Denmark 69 5,947 0 0 6,016
Unicon AS, Norway 0 859 0 0 859
Kudsk & Dahl A/S, Denmark 233 360 0 0 593
AB Sydsten, Sweden 99 1,176 0 0 1,275
Cimentas AS, Türkiye 530 0 590 0 1,120
Compagnie des Ciments Belges S.A., Belgium 783 15,973 347 0 17,103
Compagnie des Ciments France S.A., France 0 325 0 0 325
A
alborg Portland Malaysia Sdn. Bhd., Malaysia 0 416 265 0 681
Sinai White Cement Company Co. S.A.E, Egy
p
0 2,315 196 0 2,511
Aalborg Portland (Anqing) Co. Ltd., China 199 4,672 0 0 4,871
3,242 48,615 1,398 0 53,255
The table above does not cover the full tax payment of the Aalborg Portland Holding Group, as this is purely provided in
accordance with Section 99(c) of the Danish Financial Statements Act covering the cement production companies which are
in scope in the specific reporting.
Taxes include payments during 2022, however, it included over/under payments from previous years.
* Includes payments in relation to use of minerals in the production and other related fees.
All above payments are to central government in each country.
** Taxes include direct and indirect taxes on the Company's income, manufacturing or profit apart from direct and
indirect taxes on consumption.
In accordance with Danish regulations governing payments to authorities in large companies, cf. Section 99(c) of the Danish
Financial Statements Act, the Aalborg Portland Holding Group has made the following payments to authorities in 2022:
24
Notes
EUR '000
9 Intangible assets
Goodwill
Other
intangible
assets
Intangible
assets in
development Total
Cost at 1 January 2022 100,284 298,571 3,027 401,882
Exchange rate adjustments -6,593 4,833 2 -1,758
Additions 0 13,011 2,997 16,008
Disposals -2,368 -1,054 0 -3,422
Effect of hyperinflation, IAS29 99,116 7,332 0 106,448
Other adjustments/reclassifications 0 5,664 -5,022 642
Cost at 31 December 2022 190,439 328,357 1,004 519,800
Amortisation and impairment at 1 January 2022 0 108,334 0 108,334
Exchange rate adjustments 0 315 0 315
Reversed amortisation on disposals 379 -1,049 0 -670
Amortisation for the year 0 16,012 0 16,012
Effect of huperinflation, IAS29 0 3,556 0 3,556
Other adjustments/reclassifications 0 -571 0 -571
Amortisation and impairment at 31 December 2022 379 126,597 0 126,976
Carrying amount at 31 December 2022 190,060 201,760 1,004 392,824
Goodwill
Other
intangible
assets
Intangible
assets in
development Total
Cost at 1 January 2021 112,949 280,015 3,412 396,376
Exchange rate adjustments -12,730 7,721 5 -5,004
Additions from acquisition of interests 65 5,639 0 5,704
Additions 0 693 2,688 3,381
Disposals 0 -2 0 -2
Other adjustments/reclassifications 0 4,505 -3,078 1,427
Cost at 31 December 2021 100,284 298,571 3,027 401,882
Amortisation and impairment at 1 January 2021 0 88,660 0 88,660
Exchange rate adjustments 0 1,460 0 1,460
Additions from acquisition of shares in CCB 0404
Amortisation for the year 0 16,467 0 16,467
Other adjustments/reclassifications 0 1,743 0 1,743
Amortisation and impairment at 31 December 2021 0 108,334 0 108,334
Carrying amount at 31 December 2021 100,284 190,237 3,027 293,548
2022 2021
Amortisation during the year is included in the following items:
Cost of sales 699 250
Sales and distribution costs 1,926 1,884
Administrative expenses 13,387 14,333
16,012 16,467
Intangible assets
Intangible assets in development are mainly related to process optimisation projects. No impairment indications are
identified.
Goodwill is not amortised.
Other intangible assets include software licenses, quarry rights, CO
2
quotas, development projects incl. process optimisation
and licenses for removal of waste, trademarks and customer lists. All items under other intangible assets have definite useful
lives.
Internally generated intangible assets, mainly regarding SAP implementation, amount to EUR 0.3m (2021: EUR 0.5m).
25
Notes
EUR '000
9 Intangible assets (continued)
2022
Discount
rates after tax
Terminal
growth rates
A
verage
increase of
revenue
2023 to
terminal
period
A
verage
EBITDA ratio
2023 to
terminal
period
Nordic & Baltic 5-8% 1% 3-4% 6-14%
China and Malaysia 8-10% 3% 3-4% 13-25%
USA 8% 1% 4% 19%
Egypt 20% 3% 13% 18%
Türkiye and UK 20% 5% 24% 11%
2021
Discount
rates after tax
Terminal
growth rates
A
verage
increase of
revenue
2022 to
terminal
period
A
verage
EBITDA ratio
2022 to
terminal
period
Nordic & Baltic 4-6% 1% 3-6% 6-16%
China and Malaysia 7-8% 3% 4-8% 16-27%
USA 6% 1% 4% 15%
Egypt 12% 3% 9% 20%
Türkiye and UK 5-17% 2-6% 4-25% 7-21%
The discount rates applied in calculating the recoverable amounts are after tax, and reflect the interest rate plus specific
risks in the individual geographic segments. The discount rate of Egypt and Türkiye is 15-18% due to the high risk-free
interest caused by the political situation in the countries.
The Aalborg Portland Holding Group performed impairment test on the carrying amount of goodwill at 31 December 2022
based on value in use as in previous years.
Budgets and business plans for the period 2023-2025 are based on specific future business measures, assessing risks in
the key parameters and incorporating these in expected future free cash flows. Projections after 2023 are based on general
expectations. The value for the period after 2025 takes into account the general growth expectations for the cement and
ready-mix industry.
Growth rates are not expected to exceed the average long-term growth rate for the Group's individual geographical
segments.
The key assumptions from the impairment tests of goodwill are as follows:
Expected future free cash flow is based on budgets and business plans for the period 2023-2025 and projections for
subsequent years. Key parameters include production capacity (based on current capacity), trend in revenue, EBIT margin
and growth expectations for the years after 2025. The production capacity exceeds the growth expectations to production
volumes.
Goodwill
As a result of the impairment test conducted by considering the current conditions and generally accepted appraisal
techniques on 31 December 2022, the recoverable amount of goodwill is determined under the registered value, and an
impairment of GBP 2.7m equivalent to EUR 3.1m is found.
A
t 31 December 2022, Nordic & Baltic, Türkiye, Egypt, USA and Malaysia/China account for EUR 38.5m (2021: EUR 39.8m),
EUR 117.9m (2021: EUR 27.8m), EUR 1.5m (2021: EUR 2.1m), EUR 28.8m (2021: EUR 27.2m) and EUR 3.3m (2021: EUR
3.3m) respectively, of the consolidated goodwill.
Impairment tests are performed in the 4th quarter each year, based on the budgets and business plans approved by the
Board of Directors. The impairment test for cash-generating units compares the recoverable amount, equivalent to the
present value of expected future free cash flow, with the carrying amount of the individual cash-generating units.
The impairment tests are in addition to this based on the prospects for the future mentioned in the Mangement's review,
which includes comments on the development in 2022.
26
Notes
EUR '000
9 Intangible assets (continued)
10 Acquisiton of enterprise
s
Acquisition of Ege Kirmatas A
S
capital of Ege Kirmatas AS which operates in the aggregate sector.
The transaction is classified as a business combination and has been treated in accordance with IFRS 3. At the reporting
date, the calculation of the fair value of the assets acquired and the liabilities assumed as well as the price adjustment
procedure had been completed; the acquisition amount was EUR 3.9m, fully paid at the reporting date.
The following table shows the fair values of the net assets acquired at the acquisition date:
EUR '000
Provisional
amounts at
23.11.2021 Adjustments
Fair value at
23.11.2021
1 4,191 4,192
133 0 133
303
000
341 0 341
404
106 0 106
-4 0 -4
-50 0 -50
-35 0 -35
-6 -838 -844
493 3,353 3,846
Goodwill 48
3,894
Trade payables
Current tax liabilities
Other current liabilities
Deferred tax liabilities
Net assets acquired
Price paid for the acquisition
On 23 November 2021 - through the subsidiary Cimentas AS - the Group finalised the acquisition of 100% of the share
Intangible asset defined file
Property, plant and equipment
Non current other asset
Inventories
Trade receivables
Other current asset
Cash and cash equivalents
Based on the impairment tests performed at 31 December 2022, Management has concluded that there is no impairment of
goodwill. The impairment tests in general show headroom and for USA no reasonably possible changes in key assumptions
will lead to impairment.
For Türkiye the sensitivity computed for revenue shows a mimimum average increase of 20% until terminal period compared
to expected average increase of 12%, and expected average EBITDA ratio can also be reduced with approx. 24%.
For USA the sensitivity computed for revenue shows a mimimum average decrease of 7.8% until terminal period compared
to expected average increase of 3.6%, and expected average EBITDA ratio can also be reduced with approx. 6%.
Discount rates before tax are slightly higher than discount rates after tax.
27
Notes
EUR '000
11 Property, plant and equipmen
t
Land and
buildings
Plant and
machinery
Property,
plant and
equipment in
development
Right-of-use
assets
Total
Cost at 1 January 2022 550,878 1,112,796 50,524 135,325 1,849,523
Exchange rate adjustments -11,061 -35,280 -1,256 -708 -48,305
Additions 6,840 28,418 55,689 26,193 117,140
Disposals -2,498 -23,642 0 -13,544 -39,684
Effect of hyperinflation, IAS29 123,325 366,184 207 3,560 493,276
Other adjustments/reclassifications 8,257 41,008 -48,840 28 453
Cost at 31 December 2022 675,741 1,489,484 56,324 150,854 2,372,403
230,600 745,374 53 61,940 1,037,967
Exchange rate adjustments -5,655 -24,270 -12 -354 -30,291
Reversed depreciation on disposals -2,414 -23,508 0 -12,361 -38,283
Depreciation for the year 15,373 62,131 0 29,588 107,092
Effect of hyperinflation, IAS29 66,257 333,141 0 1,065 400,463
Other adjustments/reclassifications 892 -1 0 31 922
305,053 1,092,867 41 79,909 1,477,870
Carrying amount at 31 December 2022 370,688 396,617 56,283 70,945 894,533
2022 2021
Depreciation, land and buildings 3,019 2,689
Depreciation, plant and machinery 26,569 24,002
Interest on lease liabilities 2,137 1,818
Short-term leases 3,932 3,202
Lease of low value assets 165 156
Total amounts recognised in the income statement regarding lease
s
35,822 31,867
Depreciation and impairment at 1 January
2022
Depreciation and impairment at 31
December 2022
Variable lease payments may depend on an index, a rate or other elements. Variable lease payments that depend on an
index or a rate are included in the initial measurement of the lease liability using the index/rate at the lease commencement
date. Variable lease payments not based on an index or a rate are recognised as in expense in the income statement as
incurred.
28
Notes
EUR '000
11 Property, plant and equipment (continued
)
Land and
buildings
Plant and
machinery
Property,
plant and
equipment in
development
Right-of-use
assets
Total
Cost at 1 January 2021 549,652 1,089,957 39,208 123,042 1,801,859
Exchange rate adjustments -5,558 -27,972 104 85 -33,341
0 421 49 0 470
Additions 4,591 32,479 39,248 19,377 95,695
Disposals -562 -8,138 -114 -7,269 -16,083
Reclassifications 2,755 26,049 -27,971 90 923
Cost at 31 December 2021 550,878 1,112,796 50,524 135,325 1,849,523
218,876 727,053 88 40,851 986,868
Exchange rate adjustments -2,229 -26,197 -35 175 -28,286
Reversed depreciation on disposals -376 -7,703 0 -5,915 -13,994
Depreciation for the year 13,586 51,866 0 26,719 92,171
0 291 0 0 291
Other adjustments/reclassifications 743 64 0 110 917
230,600 745,374 53 61,940 1,037,967
Carrying amount at 31 December 2021 320,278 367,422 50,471 73,385 811,556
2022 2021
Depreciation during the year is included in the following items:
Cost of sales 78,190 65,246
Sales and distribution costs 23,519 22,451
Administrative expenses 5,383 4,474
107,092 92,171
At 31 December 2022 there is no indication of impairment on tangible assets.
No changes are made in significant accounting estimates regarding property, plant and equipment.
Depreciation and impairment at 1 January
2021
Depreciation and impairment at 31
December 2021
Additions from acquisition on interest in Ege
Additions from acquisition on interest in Ege
The Group is not exposed to any significant future cash outflows that are not reflected in the measurement of lease liabilities.
Residual value guarantees that are expected to be paid are included in the initial measurement of the lease liability.
Reference is made to note 20.
At 31 December 2021 there is no indication of impairment on tangible assets.
29
Notes
EUR '000
12 Investment properties 2022 2021
Fair value at 1 January 45,349 50,261
Exchange rate adjustments -10,747 -27,056
Disposals -2,624 -1,276
Unrealised fair value adjustment (other operating income) 16,331 23,420
Effect of hyperinflation, IAS29 20,648 0
Fair value at 31 December 68,957 45,349
13 Other non-current assets
Cost at 1 January 2022 216 4,022 26,560 30,798
Exchange rate adjustments 0 -920 -560 -1,480
Additions 0 384 10,266 10,650
Disposals 0 -333 0 -333
Decrease 0 0 -4,192 -4,192
Fair value adjustment 0 0 96 96
Effect of hyperinflation, IAS29 0 98 -10,186 -10,088
Change offset in provision for deferred tax 0 0 -732 -732
Cost at 31 December 2022 216 3,251 21,252 24,719
Adjustments at 1 January 2022 4,772 0 0 4,772
Exchange rate adjustments -207 0 0 -207
Profit shares 972 0 0 972
Dividends for the year -194 0 0 -194
Adjustments at 31 December 2022 5,343 0 0 5,343
Carrying amount at 31 December 2022 5,559 3,251 21,252 30,062
Cost at 1 January 2021 144 5,375 26,952 32,471
Exchange rate adjustments 0 -1,415 -2,688 -4,103
Additions 0 58 3,894 3,952
Additions from acquisition of interests in Ege 72 -3,467 0 -3,395
Disposals 0 3,471 0 3,471
Decrease 0 0 -1,671 -1,671
Fair Value Adjustment 0 0 10 10
Change offset in provision for deferred tax 0 0 63 63
Cost at 31 December 2021 216 4,022 26,560 30,798
Adjustments at 1 January 2021 4,164 0 0 4,164
Exchange rate adjustments -54 0 0 -54
Profit shares 807 0 0 807
Dividends for the year -145 0 0 -145
Adjustments at 31 December 2021 4,772 0 0 4,772
Carrying amount at 31 December 2021 4,988 4,022 26,560 35,570
Investment properties mainly comprise a number of commercial lands in Türkiye that is not in the Group's use and owned for
capital appreciation. No rental income is generated from lands.
Other
non-current
assets
Deferred tax
assets Total
Investments
in joint
ventures
The fair value measurement for investment property has been categorised as a Level 2 fair value based on valuation
techniques including unobservable inputs.
The fair value of investment property is market value approach in which representative samples are selected in the
neighbourhoods of the specified property, which provide recent sales transactions.
Then the average price of the samples is compared with the relevant investment property. Finally, a measuring of the fair
value of the investment property is performed, based on location and other factors.
Other non-current assets mainly relate to VAT receivable and deposits.
Other non-current assets mainly relate to VAT receivable and deposits.
Investments
in joint
ventures
Deferred tax
assets Total
Other
non-current
assets
The fair value of investment properties was determined by external, independent property valuers, having appropriate
recognised professional qualifications and recent experience in the location and category of the property being valued.
30
Notes
EUR '000
13 Other non-current assets (continued
)
Investments in subsidiaries with significant non-controlling interest
s
2022 2021 2022 2021
Revenue 58,272 45,103 75,422 74,723
Profit for the period
- attributable to owners of the parent 733 852 3,054 3,311
- attributable to non-controlling interests 314 365 3,358 3,622
1,047 1,217 6,412 6,933
Other comprehensive income (expense) 180 2,401 509 -551
Total comprehensive income (expense) 1,227 3,618 6,921 6,382
Asset
s
Non-current assets 25,705 25,536 22,154 24,410
Current assets 48,362 45,608 30,295 32,065
74,067 71,144 52,449 56,475
Liabilities
Non-current liabilities 2,564 2,361 12,169 15,447
Current liabilities 12,406 10,892 12,829 14,972
14,970 13,253 24,998 30,419
Net assets
- attributable to owners of the parents 41,370 40,520 12,957 12,156
- attributable to non-controlling interests 17,727 17,371 14,494 13,900
59,097 57,891 27,451 26,056
Cash flow from operation 4,542 4,242 10,424 9,664
Dividends paid to non-controlling interests 0 0 2,858 2,575
2022 2021 2022 2021
Revenue 57,113 50,730 176,228 138,938
Profit for the period
- attributable to owners of the parent 23,138 3,858 8,267 6,307
- attributable to non-controlling interests 9,400 1,567 4,804 3,665
32,538 5,425 13,071 9,972
Other comprehensive income (expense) -38,987 7,219 6,395 7,805
Total comprehensive income (expense
)
-6,449 12,644 19,466 17,777
Asset
s
Non-current assets 22,986 36,772 176,138 172,064
Current assets 94,918 85,632 123,494 96,030
117,904 122,404 299,632 268,094
Liabilities
Non-current liabilities 9,750 7,870 21,628 21,582
Current liabilities 17,477 17,407 32,941 27,882
27,227 25,277 54,569 49,464
Net assets
- attributable to owners of the parents 64,481 69,068 155,002 138,283
- attributable to non-controlling interests 26,196 28,059 90,061 80,347
90,677 97,127 245,063 218,630
Cash flow from operation 1,466 14,240 24,493 21,768
Lehigh White Cement
Company
Aalborg Portland Malaysia
Group Sydsten Group
Sinai White Portland Cement
Co S.A.E.
31
Notes
EUR '000
14 Investments in joint venture
s
2022 2021
Summary of financial information from joint ventures:
Revenue 41,143 43,547
Profit for the year 1,826 1,840
Total assets 25,831 21,566
Total liabilities 19,098 10,108
Share of profit for the year after tax 897 623
Significant joint venture
s
15 Deferred tax assets and deferred tax liabilities 2022 2021
Change in deferred tax in the yea
r
Deferred tax at 1 January 107,550 103,088
Exchange rate adjustments -4,158 533
Changes of tax rate, via income statement 281 -53
Adjustments, previous years via income statement 665 1,225
Additions from acquisition of interests -25 1,134
Movements via income statement 2,002 186
The year's movements in comprehensive income 758 668
Effect of hyperinflation, IAS29 29,367 0
Other adjustments 100 769
Deferred tax liabilities at 31 December, net 136,540 107,550
Deferred tax is presented in the balance sheet as follows:
Deferred tax liabilities 157,792 134,110
Deferred tax assets 21,252 26,560
Deferred tax liabilities at 31 December, net 136,540 107,550
2022 2021 2022 2021
Intangible assets 15,388 14,478 28,689 28,541
Property, plant and equipment 8,950 1,759 89,265 92,226
Investment properties 0 3 6,828 4,410
Other non-current assets -2,461 -2,536 2,184 3,027
Current assets 299 378 9,111 6,290
Provisions 1,703 1,669 -662 -2,274
Non-current and current liabilities 167 1,693 -446 -332
Reinvestment allowance 819 0 0 0
Tax loss carry-forwards 6,553 9,116 3,622 2,222
Effect of hyperinflation -10,166 0 19,201 0
Deferred tax at 31 December 21,252 26,560 157,792 134,110
For a list of joint ventures, reference is made to page 74.
The joint ventures have no major contingent liabilities and the Group's maximum liabilities to the joint ventures do not exceed
the equity value of the joint venture.
The group no longer owns any significant joint ventures.
Deferred tax assets Deferred tax liabilities
Tax loss carry-forwards mainly relate to Cimentas Group, CCB Group and US Group. As a result of expected future earnings
there is a reasonable probability that the losses will be realised in a foreseeable future.
The Mutual Agreed Procedures (“MAP”) covering 2008-2012 between the Danish and the Italian tax authorities regarding a
transfer pricing case on royalty payments involving the Group was settled in 2021. The Tax Authorities in Denmark and Italy
reached a split decision, where the Italian tax authorities gave an adjustment of 64%, which means that royalties were
reduced to approx. 1/3 of the original amount. With regards to the transfer case for the following years 2013-2021 a mutual
agreement has been made with the Danish and the Italian tax authorities to apply a sales-based calculation of 0.25% of the
net sales only, which is at the level accepted between the Danish and Italian Tax Authorities for FYs 2008-2012. For the
Danish entities a tax adjustment of EUR 10.2m has been included in the Financial Statement 2021.
32
Notes
EUR '000
16 Inventories 2022 2021
Raw materials and consumables 116,758 97,354
Work in progress 52,017 41,995
Finished goods 48,419 40,287
Prepayments of goods 1,416 654
Inventories at 31 Decembe
r
218,610 180,290
17 Trade receivables, other receivables and prepayment
s
Development in provisions for impairment on trade receivables:
Provision for impairment losses at 1 January 1,682 2,249
Exchange rate adjustments -433 607
Provision for impairment in the year 3,034 289
Additions from acquisition of interests in Ege 0 4
Realised in the year -287 -1,401
Reversed 0 -66
Provision for impairment at 31 Decembe
r
3,996 1,682
The carrying amount essentially corresponds to fair value.
Other receivables include energy taxes and VAT, etc.
Prepayments comprise prepaid rent and insurance, etc.
All trade receivables are due within one year.
As was the case last year, there are no significant inventories of cement and aggregates carried at net realisable value.
Collateral has been received regarding trade receivables, in total EUR 32.5m (2021: EUR 21.4m).
Impairment and write-offs included in PL amount to EUR 1.2m (2021: EUR 0.6m)
Write-down of inventories of spare parts amounts to EUR 5.5m (2021: EUR 4.7m). Reversal of write-downs recognised in the
income statement is EUR 0.0m (2021: EUR 0.0m).
33
Notes
EUR '000
18 Provisions for pensions and similar commitment
s
2022 2021
Present value of defined benefit schemes 56,625 61,288
Market value of the assets comprised by the schemes 32,938 31,275
Long-term incentive plan obligations 393 265
Net liability recognised in the balance shee
t
24,080 30,278
Present value of defined benefit schemes at 1 January 61,288 63,735
Adjustment to prior years 0 978
Exchange rate adjustment -1,325 -1,193
Actuarial gains/losses recognised in other comprehensive income -4,412 -1,992
Costs 2,769 2,892
Net interest 620 447
Payments -2,315 -3,579
Present value of defined benefit schemes at 31 Decembe
r
56,625 61,288
Market value of the assets comprised by the schemes at 1 January 31,275 30,839
Exchange rate adjustment -221 197
Payments 790 -633
Net interest 289 184
Actuarial gains/losses recognised in other comprehensive income 805 688
Market value of the assets comprised by the schemes at 31 Decembe
r
32,938 31,275
Stated as liabilities (provision for pension
)
23,687 30,013
Amounts taken to the income statemen
t
Pension costs are included in:
Cost of sales 6,363 6,168
Sales and distribution costs 2,625 2,495
Administrative expenses 4,896 4,744
13,884 13,407
0-4% 0-4%
1-2% 1-2%
0 -12,096
The actuarial result for the year at EUR -5.2m (2021: EUR -2.8m) is recognised in the statement of comprehensive income.
In the statement of consolidated shareholders' equity the following
accumulated actuarial gains/losses are recognised
In 2022, the Group expects payment of EUR 2.8m to the defined benefit schemes.
The most significant actuarial assumptions at the balance sheet date are as follows:
All pension schemes incumbent on the Danish Group enterprises are contribution plans. The pension liabilities of certain
foreign subsidiaries are also funded through insurance plans. Foreign subsidiaries, primarily in Türkiye, Sweden, Norway,
Malaysia, Belgium and France, whose pension liabilities are not - or only partially - funded through insurance plans state the
unfunded liabilities on an actuarial basis at the present value at the balance sheet date. These pension liabilities are partly
covered by assets in pension funds. The Group’s defined benefit plans were EUR 24.1m underfunded at 31 December 2022
(2021: EUR 30.3m) for which a provision has been made as pension liabilities.
All assets comprised by the schemes are managed by pension providers in collective pool schemes.
The assets of the pension scheme are attributable to Belgium and Norway. In Norway the assets are mainly invested in listed
securities.
The actuarial change of the year is mainly due to changes in experience adjustments and other financial assumptions.
The main part of the provision for pension and similar commitments fall due after 5 years.
Discounting rate applied
Expected return on tied-up assets
Compared to the consolidated financial statements a probable change of the actuarial assumptions is not deemed to cause
significant effect on the liabilities, and therefore a sensitivity analysis has not been prepared.
34
Notes
EUR '000
19 Provisions 2022 2021
Provisions at 1 January 30,531 29,896
Exchange rate adjustment -1,066 -1,487
Additions in the year 8,137 4,308
Actuarial gains/losses recognised in other comprehensive income 71 -149
Used in the year -954 -1,555
Reversal -283 -482
Provisions at 31 Decembe
r
36,436 30,531
Recognised in the balance sheet as follows:
Stated as non-current liabilities 32,382 27,609
Stated as current liabilities 4,054 2,922
36,436 30,531
Maturities for other provisions are expected to be:
Falling due within one year 4,054 2,922
Falling due between one and five years 7,754 8,064
Falling due after more than five years 24,628 19,545
36,436 30,531
20 Credit institutions and other borrowings
2022 2021
Mortgage loan 2033 Variable 134,870 98,192
Bank borrowings and credits 2022 Variable 0 0
Lease liability 2022-2098 Variable 71,001 74,708
Financial payable Group enterprises 2022 Fixed 21,892 29,977
227,763 202,877
31 December 2022:
Mortgage loan 120,518 14,352 134,870 59,147
Lease liability 46,365 24,636 71,001 9,191
Financial payable Group enterprises 0 21,892 21,892 0
166,883 60,880 227,763 68,338
Specification of contractual cash flows incl. interest:
Mortgage loan 134,315 18,815 153,160 60,155
Lease liability 47,841 27,998 75,839 9,191
Financial payable Group enterprises 0 22,214 22,214 0
182,156 69,027 251,213 69,346
The Group's debt to credit institutions and lease obligations have been recognised and fall due as follows:
Provisions mainly include re-establishment of chalk, gravel and clay pits at EUR 19.7m (2021: EUR 17.9m), demolition
liabilities for buildings and terminal on rented land at EUR 6.9m (2021: EUR 4.0m), warranties and claims at EUR 0.6m
(2021: EUR 0.6m) as well as other provisions at EUR 9.2m (2021: EUR 8.0m).
Additions in the year include liabilities regarding warranties and claims, re-establishment of chalk, gravel and clay pits,
demolition liabilities, litigations and other provisions.
Use in the year mainly relates to re-establishment, warranties and claims and reorganistion liabilities.
Carrying
amount
Carrying
amount
Fixed/
variable
Costs for re-establishment of chalk, gravel and clay pits are mainly paid when finishing an excavation or when moving out
from leases. No considerable payments are expected in 2023.
Provisions for liabilities due after more than five years mainly include liabilities regarding re-establishment of chalk, gravel
and clay pits and demolition liabilities for buildings and terminals with no decision made regarding closure.
Current
borrowings
(0-1 year)
Total
Maturity
> 5 years
Year of
maturity
Non-current
borrowings
(>1 year)
Fair value of mortgage loan amounts to EUR 134.9m (2021: EUR 98.5m). Other fair values do not significantly deviate from
the carrying amount.
35
Notes
EUR '000
20 Credit institutions and other borrowings (continued
)
31 December 2021:
Mortgage loan 85,602 12,590 98,192 49,001
Lease liability 49,882 24,826 74,708 9,518
Financial payable Group enterprises 0 29,977 29,977 0
135,484 67,393 202,877 58,519
Specification of contractual cash flows incl. interest:
Mortgage loan 101,086 13,384 114,470 48,972
Lease liability 50,999 26,180 77,179 9,518
Financial payable Group enterprises 0 30,323 30,323 0
152,085 69,887 221,972 58,490
21 Change in liabilities from financing
Liabilities from financing at 1 January 2022 85,602 47,658 74,707 8,970 216,937
Proceeds from loans and borrowings 50,240 11,047 0 0 61,287
Repayment of borrowings -17,361 -7,199 0 0 -24,560
Payment of leases 0 0 -26,468 0 -26,468
Total changes from financing cash flows 32,879 3,848 -26,468 0 10,259
Exchange rate effect 12 -670 -373 1 -1,030
Fair value adjustments 0 0 0 4,988 4,988
Non-cash movements 0 0 23,135 23,135
118,493 50,836 71,001 13,959 254,289
Liabilities from financing at 1 January 2021 192,787 25,278 82,949 1,584 302,598
Proceeds from loans and borrowings 0 25,196 0 0 25,196
Repayment of borrowings -107,274 0 0 2 -107,272
Payment of leases 0 0 -25,225 0 -25,225
Total changes from financing cash flows -107,274 25,196 -25,225 2 -107,301
Exchange rate effect 89 -2,816 -143 1 -2,869
Fair value adjustments 0 0 0 7,383 7,383
Non-cash movements 0 0 17,126 0 17,126
85,602 47,658 74,707 8,970 216,937
Please see note 11 for further information regarding leases
22 Deferred income
Expected recognition of deferred income: 2022 2021
Within one year 1,335 969
Between one and five years 884 1,829
2,219 2,798
According to the leases there are no contingent rentals.
The carrying amount of leases is presented in note 11.
Liabilities from financing at 31 December
2022
Liabilities from financing at 31 December
2021
Lease liability
Derivative
financial
instruments Total
Payment of interest is estimated and based on the present market conditions.
The maturity analysis is based on all undiscounted cash flows including estimated payment of interest.
Maturity of derivatives is disclosed in note 27.
Non-current
borrowings
(>1 year)
Current
borrowings
(0-1 year) Total
Maturity
> 5 years
Current credit
institutions Lease liability
Derivative
financial
instruments Total
Deferred income relates to income from business agreement, etc., which is expected to be recognised as follows:
Current credit
instiutions
Non-current
credit
institutions
Non-current
credit
institutions
36
Notes
EUR '000
23 Other payables
24 Charges and securities
Property, plant and equipment 120,165 134,870 108,952 98,192
120,165 134,870 108,952 98,192
25 Contingent liabilities, contractual obligations and contingent asset
s
Contingent liabilities
Contractual obligations
2022 2021
Guarantees
Performance guarantees 1,961 2,087
Other guarantees, etc. 8,952 9,008
10,913 11,095
Carrying
amount of
mortgaged
assets
Debt
regarding
mortgaged
assets
Carrying
amount of
mortgaged
assets
Debt
regarding
mortgaged
assets
Other current payables include holiday pay liabilities, taxes and public indirect taxes, interest payable and dividends payable
to non-controlling interests.
2022 2021
At 31 December 2022, the Group has contractual obligations, including aquisition of raw materials etc. of EUR 1.3m. In 2021
the Group had contractual obligations of EUR 2.1m.
Regarding contractual obligations related to acquisition of non-current assets reference is made to note 11.
Other guarantees relate to guarantees given to suppliers of goods and services, mainly in Türkiye.
The Group is involved in a few disputes, lawsuits, etc. of various scopes, including a few tax disputes in some countries. No
significant liabilities are considered to be incumbent on the Group in that respect, and the outcome of the disputes is not
expected to have significant impact on the Group's financial position beyond what has been recognised in the balance sheet.
37
Notes
EUR '000
26 Related party transaction
s
2022 2021
Transactions with Cementir Holding N.V.:
- Revenue 214 211
- Intra-group management and administration agreements and royalties 8,518 10,291
- Financial items, net -208 -292
- Financial receivables 0 57,440
- Financial payables 21,892 29,977
- Trade payables 1,768 6,000
- Tax receivables 065
- Tax payables 7,837 4,925
Transactions with joint ventures:
Transactions with other related parties (companies in the parent Group)
- Financial receivables 133,405 0
- Financial payables 1,339 0
- Trade payables 10
- Financial items, net -5 8,555
Remuneration of the Board of Directors and the Management is presented in note 4.
No losses on loans to or receivables from related parties were recognised, nor provisions made for such in 2022 or 2021.
Related parties with significant influence in the Aalborg Portland Holding Group:
- Cementir España S.L., Calle General Yagüe, Num. 13, 28020 Madrid, Spain
Related parties with significant influence in the Aalborg Portland Holding Group comprise the enterprises' Board of Directors
and Management together with family related to these persons. Furthermore, related parties comprise enterprises in which
the above-mentioned persons have significant interests.
Furthermore, related parties include joint ventures, cf. page 74.
- Cementir Holding N.V., Zuidplein 36, 1077 XV Amsterdam, Netherlands
- Caltagirone S.p.A., Via Barberini, 28, 00187 Rome, Italy
38
Notes
39
27 Financial risks and financial instruments
Risk management policy
As a result of its international operations, investments and financing, the Group is exposed to a number of financial risks, in-
cluding market risks, liquidity and credit risks.
Market risks Liquidity risks Credit risks
Risks that the fair value of or fu-
ture cash flows from a financial
instrument will fluctuate due to
rechanges in market prices.
Risks that the Group will en-
counter difficulties in meeting
obligations associated with fi-
nancial liabilities.
Risks that a counterparty of a fi-
nancial instrument is unable to
fulfil its obligations and thereby
inflict a loss to the Group.
The Group's Finance & Treasury is in charge of the overall risk management in accordance with the principles adopted by the
Board of Directors.
The Group policy is not to engage in any active speculation in financial risks. The Group's financial management is thereby
solely directed towards the management and reduction of financial risks arising directly from the Group's commercial opera-
tions, investments and financing.
Market risks
Currency risks Interest rate risks Raw material price risks
Arise due to purchase and sale
transactions as well as financial
assets and liabilities in curren-
cies other than the functional
currency of the individual Group
business.
Refer to the influence of chang-
es in market interest rates on fu-
ture cash flow relating to the
Group’s interest-bearing assets
and liabilities and the fair value
of these.
Refer to the influence of chang-
es in raw material prices, which
are not related to currency risks
or interest rate risks.
Currency risks
Hedging is assessed and taken out in close co-operation with the parent company.
For the hedging of currency risks, the Group analyses realised and expected cash flows broken down by currencies. The
Group does not hedge the currency risk between EUR/DKK due to the Danish fixed-exchange-rate policy aimed at the EUR.
Risks relating to purchases and sales
The ready-mixed concrete activities of the Group are less exposed to changes in exchange rates, as the main part of both in-
come and costs are settled in local currency. The Overseas cement activities of the Group enjoy a high degree of exports, and
the settlement thereof is made in various sales currencies, and therefore, these units are affected by changes in exchange
rates. The Turkish cement operations are mainly based on transactions in local currency. Revenue from the Group's Nordic &
Baltic activities and the purchases by this segment are denominated in several currencies. Accordingly, these activities are al-
so exposed to changes in exchange rates.
The Group's currency risks are primarily hedged by the settlement of income and costs in the same currency and by use of de-
rivative financial instruments. Investments in Group enterprises are not hedged.
The Group's most predominant currency exposure regarding the results arises from sales and purchases in CNY, USD, SEK,
PLN and NOK. A 10% drop in these exchange rates compared to EUR/DKK would, viewed separately, reduce the result by
EUR 4.4m (CNY amounts to EUR 1.5m, USD amounts to EUR -3.6m, SEK amounts to EUR 2.1m, PLN amounts to EUR 2.4m
and NOK amounts to EUR 2.0m) (2021: EUR 11.8m (CNY amounted to EUR 2.4m, USD amounted to EUR 3.5m, SEK
amounted to EUR 1.6m, PLN amounted to EUR 1.6m and NOK amounts to EUR 2.7m)). The sensitivity surrounding Group
equity is not materially different from the impact on the operating results for the year.
The Group entered into a swap agreement (hedge accounting) with a termination date in 2024, where both currency risk and
interest risk have been hedged. Related to the interest risk the Group has agreed to pay a fixed rate of 0.43% + a spread of
Notes
40
3.63% and the Group will receive EURIBOR + a spread of 2.88% each 30 April and 31 October until maturity. The effective
part of the hedge is equal to all future cash flow payments and nominal installments.
The fair value liability is included in a separate line item in the balance sheet "Derivative financial instruments”.
The ineffective part is recognised as financial income.
2022:
Change in fair Ineffective part
Fair value value recognised recognised in income
Notional amount < 1 year 1-5 years > 5 years Strike liability in hedge reserve statement
EURm
Swap USD/EUR 75.8 9.9 65.9 0.0
1.00 EUR/
1.235 USD
-6.6 8.3 0.6
Maturity
2021:
Change in fair Ineffective part
Fair value value recognised recognised in income
Notional amount < 1 year 1-5 years > 5 years Strike liability in hedge reserve statement
EURm
Swap USD/EUR 88.4 11.1 77.3 0.0
1.00 EUR/
1.235 USD
-7.1 2.0 0.3
Maturity
Risks relating to net financing
The Group's most important currency risks arising from receivables and payables in foreign currencies at 31 December 2022
relate to the following currencies: EUR, USD, GBP, TRY, NOK and SEK. If these currencies (apart from EUR) had been 10%
down at 31 December, Group equity would be affected by a positive exchange rate adjustment of EUR 4.3m (2021: positive
EUR 2.7m). An increase of currencies would have had a similar negative effect on equity.
Translation risks relating to net investments in subsidiaries
The Group income statement and equity are affected by changes in the exchange rates as the closing results of the foreign
Group enterprises are translated into Danish kroner at the consolidation.
Hedging of currency risk is not performed for net assets (equity) in foreign subsidiaries. Gains and losses relating to net assets
in foreign subsidiaries are accounted directly in equity.
With regard to investments in foreign enterprises, Group equity at 31 December 2022 would have been reduced by EUR
58.1m (2021: EUR 54.9m), if the NOK, SEK, USD, CNY, MYR, EGP, PLN, ISK and TRY exchange rates had been 10% down
on the actual exchange rates. Other currency risks arising from investments in foreign entities are immaterial.
Assumptions of sensitivity analysis
The sensitivities are stated on the assumption of unchanged sales and price levels and interest levels, and on the assumption
of recognised assets and liabilities at 31 December 2022.
Forward contracts regarding future transactions
Apart from the above the Group does not comply with the conditions for taking out hedge accounting of future cash flows from
the sale of goods. In terms of the hedging of future investments, the Group assesses in each case whether these comply with
the conditions for hedge accounting.
No Group forward contracts at 31 December 2022 or at 31 December 2021.
Interest rate risk
Owing to the Group's investment and financing activities the Group has exposure to interest rate changes in both Denmark and
abroad. The primary interest-rate exposure is related to fluctuations in CIBOR, LIBOR and EURIBOR.
The Group has floating and fixed loans. The Group's loans at 31 December 2022 came in at EUR 156.8m, 86% thereof fi-
nanced by floating rate loans. At 31 December 2021 loans were EUR 128.2m (accounting for 77% floating rate loans and 33%
fixed rate loans).
With regard to the Group's floating rate loans and cash equivalents, an annual 1% increase in the interest level in proportion to
the actual interest rates would, other things being equal, have had an adverse hypothetical negative impact on the profit before
Notes
41
tax of EUR 1.0m (2021: EUR 1.0m) and on equity of EUR 0.8m (2021: EUR 0.8m). A declining interest level would have had a
corresponding positive impact on result and equity.
The Group's cash is placed on demand or time deposits with a maturity of up to 3 months.
The sensitivities stated are based on average financial assets and liabilities for the year.
Raw material price risks
The Group uses a number of raw materials in the manufacture of the Group's products, which expose the Group to a price risk,
i.a. especially different fuels and electricity. The Group enters into fixed price contracts for some raw materials.
2022
EURm
Total
Market value - swap contracts
-1.0
2021
EURm
Total
Market value - swap contracts
2.0
Open swap contracts at 31 December:
Liquidity risks
According to the Group borrowing policy, the Group will ensure the highest possible flexibility by maintaining a capital structure
with a strong equity financing. At Group level, there are on-going assessments and management of liquidity risk by maintaining
adequate cash reserves/loan facilities based on follow-up on and forecast of cash flow compared with the maturity/repayment
profiles related to the Group's financial instruments.
The Aalborg Portland Holding Group is included in the Cementir Group's overall management of financial risks.
The Group's liquidity reserve consists of non-tied-up cash and undrawn credit facilities signed by Cementir Holding. In addition
to this, the Aalborg Portland Holding Group has a separate uncommitted credit facility. The Management is of the opinion that
the Group has sufficient liquidity at its disposal to carry through planned investments and operating activities and to take the
proper action in case of unforeseen liquidity shortfalls.
Neither in 2022 nor in 2021 the Group has defaulted or breached any loan agreements (covenants).
Regarding maturities of the Group debt, reference is made to note 20.
Based on the Group's expectations for the future operation and the Group's present cash funds, no other significant liquidity
risks have been identified.
Credit risks
The Group's credit risks arise primarily from receivables related to customers, other receivables and cash.
As a consequence of the Group’s credit risk policy, credit rating of all major customers and other trading partners is performed
before contract formation and hereafter continuously. An efficient credit control is important to the Group in the present market.
Management of the credit risks is based on internal credit limits, which are based on the customer's and the counterparties'
creditworthiness, based on both internal and external credit ratings as well as the Group’s experience with the counterparty. If
no satisfactory guarantee is obtained when credit rating the customer/counterparty, payment in advance or separate guarantee
for the sale, e.g. a bank guarantee, will be required.
Due to the market situation, the Nordic companies of the Group have in recent years increased the resources used on follow-
up on customers, which contributes to early warnings of possible risks. As part of the Group’s risk management, the credit ex-
posure of customers and counterparties is monitored daily, weekly or monthly based on individual assessments. Historically
the Group has had relatively small losses due to customers’ or counterparties’ inability to pay.
The credit risk limit of financial assets corresponds to the values recognised on the balance sheet.
No individual customer or co-operator poses any material risk to the Group.
The credit rating of trade receivables is analysed on the basis of the business areas off the Group:
Notes
42
EURm 2022 2021
26.3 22.3
36.3 32.3
34.9 29.5
Turkey 43.7 31.1
0.3 1.3
Belgium 47.3 45.8
Italy 1.3 7.0
190.1 169.3
Overseas
The credit rating of trade receivables is analysed on the basis of the business areas
of the Group:
Aalborg Portland
Unicon
England
Receivables from Aalborg Portland activities are attributable to Danish customers and export customers characterised as me-
dium-sized and major customers. The Group is familiar with the Danish customers, who have not been granted long credit
lines. Experience shows that export customers pose a low credit risk.
Regarding the Unicon activities the Group's customers primarily consist of contractors, builders and others, customers posing
a higher credit risk.
Overseas activities are attributable to minor local customers and medium-sized to major customers on a global scale. Credits
are granted in accordance with usual, local trading terms. Credit rating is applied to some types of customers, but experience
shows that customers in Overseas pose a low credit risk.
In Türkiye, there are both dealers and end-users (contractors and other customers) within both the ready-mixed concrete, ce-
ment and waste business. All customers are generally required to provide security for deliveries unless the management has
assessed that there are no significant risks associated with selling to that customer. The waste business sales are only to large
customers. Received collaterals amount to EUR 32.9m at 31 December 2022 (2021: EUR 21.4m).
Trade receivables at 31 December 2022 include receivables of EUR 3.9m (2021: EUR 1,8m), which, based on an individual
assessment, have been written down to EUR 0.0m (2021: EUR 0.0m). The write-downs were generally motivated by the cus-
tomers' bankruptcy or anticipated bankruptcy. When calculating individual write-downs the collaterals received have been tak-
en into account.
Provision for impairment on trade receivables and loss percentages are specified as follows:
EUR '000
Loss per-
centage
Trade recei-
vable
Provision for
impairment
Total
Neither past due 0.0%
174,649
1,793
172,856
Due 1-30 days 0.1%
16,196
10
16,186
Due 31-60 days 0.1%
3,872
4
3,868
Due 61-90 days 1.4%
852
12
840
Due above 90 days 168.9%
2,264
2,031
233
1.6%
197,833
3.851
193,982
Provision for impairment and loss percentages are specified as follows:
Türkiye/Egypt Other Total
EUR '000 % EUR '000 % EUR '000 % EUR '000 % EUR '000 % EUR '000
Neither past due 0
0.0%
0
0.0%
0
0.0%
1,793
4.0%
0
0.0%
1,793
Due 1-30 days 0
0.0%
0
0.0%
0
0.0%
10
0.5%
0
0.0%
10
Due 31-60 days 4
0.3%
0
0.0%
0
0.0%
0
0.0%
0
0.0%
4
Due 61-90 days 12
3.9%
0
0.0%
0
0.0%
0
0.0%
0
0.0%
12
Due above 90 days 619
78.5%
0
0.0%
61
9.2%
1,351
100.0%
0
0.0%
2,031
635
0.6%
0
0.0%
61
0.3%
3,154
6.4%
0
0.0%
3,850
Europe China/Malaysia USA
Notes
43
EUR'000
Loss
percentage
in PL
Trade
receivables
Expected
loss based
on historical
loss per-
centages
Europe
0.1%
116,394
166
China/Malaysia
0.0%
8,541
0
USA
0.1%
23,883
5
Türkiye/Egypt
0.3%
49,015
8
Other
0.0%
0
0
197,833
179
Provision for impairment is higher than expected loss as there has been made a separate assessment of the trade receivables
due above 90 days.
The receivables written down are included at their net amounts in the above-mentioned tables.
Management of capital structure
Group capital management is assessed and adjusted in close co-operation with the parent company. The Aalborg Portland
Holding Group is included in the Cementir Group's overall capital management.
It is the Group's policy that the capital structure and financial gearing of the Group shall at all times reflect the Group's activities
and risk profile, afford sufficient financial latitude to ensure the Group's creditworthiness, and provide flexibility and room for in-
vestments or acquisitions based on the Group strategy.
The distribution of dividends takes place considering the appropriate level of equity and sufficient availability of loan capital to
facilitate the Group's ongoing expansion.
The Group financial gearing between net interest-bearing debt and EBITDA is -0.7 at 31 December 2022 (31 December 2021:
-0.4).
Fair value measurement
Financial instruments measured at fair value are measured on a recurring basis and categorised into the following levels of the
fair value hierarchy:
Level 1: Observable market prices for identical instruments
Level 2: Valuation techniques primarily based on observable prices or traded prices for comparable instruments
Level 3: Valuation techniques primarily based on unobservable prices
Securities and investments measured at fair value through profit/loss are either measured at quoted prices in an active market
for the same type of instrument (level 1) or at fair value based on available data (level 3).
Hedging instruments are not traded on an active market based on quoted prices. Measured instead of using a valuation tech-
nique, where all significant inputs are based on observable market data; such as exchange rates, interest rates, credit risk and
volatilities (level 2).
There have been no transfers between the levels in 2022 or 2021.
Notes
44
Specification of financial assets and obligations
Specification of financial assets and obligations
Carrying Carrying
value F air value value Fair value
EUR '000
2022 2022 2021 2021
Financial assets measured at fair value through the
income statement 0 0 0 0
Derivatives used as hedging instruments, level 2 9,960 9,960 3,938 3,938
Loans and receivables 684,307 684,307 520,853 520,853
Financial obligations measured at fair value through the
income statement 0 0 0 0
Derivatives used as hedging instruments, level 2 13,959 13,959 8,970 8,970
Financial obligations measured at amortised cost 656,779 656,779 539,355 539,798
Methods and assumptions on determination of fair values
In general, fair value corresponds to the carrying value, except for mortgage loans.
Financial instruments related to sale and procurement of goods, etc. with a short credit period are measured at fair value cor-
responding to the carrying value.
Derivative financial instruments are computed on generally accepted valuation methods based on relevant exchange rates.
The methods used are unchanged compared to 2021.
28 Türkiye - hyperinflated economy: Impacts of the application of IAS 29
As of June 2022, the Turkish economy is considered hyperinflationary according to the criteria set out in “IAS 29 - Financial
Reporting in Hyperinflationary Economies”. For the purpose of preparing these Consolidated Financial Statements and in ac-
cordance with IAS 29, certain items in the balance sheets of the investee companies in Türkiye have been remeasured by ap-
plying the general consumer price index to historical data, in order to reflect the changes in the purchasing power of the Turk-
ish Lira at the balance sheet date of these companies.
Bearing in mind that the Cementir Group acquired control of the Turkish companies in September 2001, and that they applied
hyperinflation until 31 December 2004, the re-measurement of the non-monetary balance sheet data of these companies' fi-
nancial statements was carried out by applying inflation indices from that date.
The accounting effects of this adjustment, in addition to already being reflected in the opening balance sheet as of 1 January
2022, incorporate the changes for the period. In particular, the effect related to the re-measurement of non-monetary assets
and liabilities, equity items, and income statement items recognised in 2022 was recognised in a separate income statement
item under financial income and expenses. The related tax effect of non-cash assets was recognised in taxes for the period.
To take into account the impact of hyperinflation also on the local currency exchange rate, profit and loss account balances
expressed in hyperinflationary currencies have been converted into EUR, the Cementir Group's presentation currency, apply-
ing the final exchange rate instead of the average exchange rate for the period, in line with IAS 21's requirement to report
these amounts at current values.
The cumulative levels of the general consumer price indices are as follows:
From 1 January 2005 to 31 December 2021: 503%
From 1 January 2022 to 31 December 2022: 64%
In 2022, the application of IAS 29 resulted in the recognition of a net financial income (pre-tax) of EUR 20.1m.
Below are the effects of IAS 29 on the Balance Sheet as at 31 December 2022 and the impact of hyperinflation on the main
items of the Income Statement for 2022, in this last case differentiating between the revaluation based on general consumer
price indices and the application of the final exchange rate, rather than the average exchange rate for the period, as required
by IAS 21 for hyperinflationary economies:
Notes
45
EUR ‘000
Cumulative hyperin-
flation at 01.01.2022
Hyperinflation
effect of the
period
Exchange
rate effect
Cumulative hyperin-
flation effect at
31.12.2022
Total assets 128,546 105,815 -30,464
203,897
Total liabilities 12,502 9,642 -2,963 19,181
Equity 116,044 96,173 -27,501 184,716
EUR ‘000
IAS 29
effect
IAS 21
effect
Total
Effect
Revenue 32,515 -30,381
2,134
Cost of sales -48,286 24,917 -23,369
Gross profit -15,771 -5,464 -21,235
Sales and distribution costs -4,011 1,629 -2,382
Administration expenses -1,250 508 -742
Other operating income -316 -2,620 -2,936
Other operating costs -5,910 4,083 -1,827
Earnings before interest and tax (EBIT) -27,258 -1,864 -29,122
Financial expenses 19,072 1,327 20,399
Earnings before tax (EBT) -8,186 -537 -8,723
Tax on profit for the year -3,790 -738 -4,528
Profit for the year -11,976 -1,275 -13,251
29 Post-balance sheet events
There have been no post-balance sheet events material to this Annual Report which have not been recognised or mentioned.
30 Estimation on uncertainties and judgements
Estimation on uncertainties
The accounting polices require that when calculating the carrying value of certain assets and liabilities estimates are made of
how future events influence the value of recognised assets and liabilities at the balance sheet date. Estimates that have a ma-
terial influence on the amounts recognised in the annual report.
The estimates applied are based on assumptions deemed reasonable by the Management, but given the nature of things, are
uncertain. Thus, the Group is exposed to risks and uncertainties that may result in variances between actual and estimated re-
sults.
The development in the world economy and in the financial markets in 2021 and 2022 has resulted in considerable changes
compared to previous years in respect of some uncertainty in a number of key assumptions within i.a. credit risk, interest level,
sales volumes, volatility, etc.
The Management deems that the accounting policies do not include critical aspects.
The following items of the Aalborg Portland Holding Group are subject to major accounting estimates and judgements:
Goodwill
The annual impairment test of goodwill involves an estimate over how the part of the Group to which the goodwill is allocated
(cash-generating units) may generate sufficient, positive, future net cash flows in order to support the value of goodwill and
Notes
46
other net assets in the cash-generating unit. The Group's thorough budgeting and estimating support the assessments and
minimise the risk. The degree of uncertainty is reflected in the chosen discount rate and is mainly related to Türkiye and USA.
The impairment test has been further described in note 9.
Non-current assets
Non-current assets are measured at cost less accumulated depreciation and impairment. Depreciation is provided on a
straight-line basis over the expected useful lives of the assets considering the residual value of the assets. The anticipated
useful life and residual value are determined on the basis of past experience and the anticipated future use of the asset in
question. The anticipated future use and scrap values may prove impossible to realise, prompting a need for write-down or a
loss on the disposal of the assets. The depreciation periods are stated in the section "Accounting policies" in note 31, and non-
current assets are stated in notes 9 and 11.
Investment properties
The fair value measurement of investment property is based on estimates. Reference is made to note 12 for a further descrip-
tion hereof.
Accounting judgements
Accounting judgements are made when applying accounting policies. Accounting judgements are the judgements made, that
can have a significant impact on the amounts recognised in the financial statements.
AB Sydsten
Based on the absolute size of ownership and the distribution of shareholdings, including votes and relationships, the Group
management considers the Group's ownership and rights to be sufficient to exercise control on the basis that the Group holds
50% of the shares and have casting vote.
Provisions and contingent liabilities
Assessment of provisions and contingent liabilities are largely based on estimates and judgements. Description of provisions
and contingent liabilities is given in notes 19 and 25.
31 Accounting policies
The Annual Report 2022 of the Aalborg Portland Holding Group is prepared in accordance with International Financial Report-
ing Standards as adopted by the EU and additional Danish disclosure requirements, according to large class C.
The Aalborg Portland Holding Group's official statutory annual report is presented in EUR.
The accounting policies set out below have been used consistently in respect of the financial year. For standards implemented
prospectively, comparative information is not restated.
On 9 March 2023, the Board of Directors and the Management approved the annual report for 2022 for the Aalborg Portland
Holding Group. The annual report is submitted to the shareholders of Aalborg Portland Holding A/S for approval at the Annual
General Meeting on 20 April 2023.
Consolidated financial statements
The consolidated financial statements comprise the parent company, Aalborg Portland Holding A/S, and subsidiaries, in which
Aalborg Portland Holding A/S exercises a controlling influence.
The Group exercises a controlling influence in an enterprise, if the Group is exposed to or has the right to variable returns from
its involvement with the enterprise, and has the ability to affect those returns through its power over the enterprise.
Enterprises, in which the Group directly or indirectly holds more than 20% and less than 50% of the voting rights and another
entity has controlling influence, are considered as associates. However, this is based on an assessment of the ability of exer-
cising influence.
When assessing whether the Group exercises a controlling or significant influence, it is to be considered whether potential vot-
ing rights exercisable at the balance sheet date are real and have substance as well as de facto control.
If the enterprises meet the criteria for joint control, they are considered as investments in joint arrangements. Joint arrange-
ments are activities or enterprises, in which the Group exercises joint control through cooperation agreements with one or more
Notes
47
parties. Joint control implies that decisions about the relevant activities require unanimous consent of the parties with joint con-
trol.
Joint arrangements are classified as joint ventures or joint operations. Joints operations are activities where participants are
entitled to a proportionate share of the individual assets and liabilities in the arrangement, while joint ventures are activities
where participants alone have the right to a proportionate share of net assets in the arrangement.
In joint operations, assets, liabilities, income and expenses as well as cash flows are included pro rata line by line in the con-
solidated financial statements in accordance with the rights and obligations.
Business combinations
Enterprises acquired are recognised in the consolidated financial statements from the date of acquisition which is the date at
which Aalborg Portland Holding actually gains control of the enterprise acquired. The comparative figures are not restated for
acquisitions.
For business combinations any remaining positive balance (goodwill) is recognised as goodwill under intangible assets be-
tween on the one side the consideration, the value of the non-controlling interests of the enterprise acquired and the fair value
of possible previously acquired equity investments and on the other side the fair value of the identifiable assets, liabilities and
contingent liabilities acquired. Goodwill is not amortised but impairment tested annually as a minimum. The first impairment
test is performed before the end of the acquisition year. Upon acquisition, goodwill is allocated to the cash-generating units
which subsequently form the basis for the impairment test. Goodwill and fair value adjustments in connection with the acquisi-
tion of a foreign entity with a different functional currency from the presentation currency of the Aalborg Portland Holding
Group's financial statements are treated as assets and liabilities belonging to the foreign entity and translated into the foreign
entity's functional currency at the exchange rate ruling at the transaction date.
If any bargain purchase gain is recognised, the assets and liabilities undertake a review to ensure they are complete and the
measurement appropriately reflects consideration of all available information. Bargain purchase gain is recognised as other
operating income in income statement.
The consideration transferred by a business consists of the fair value of the agreed consideration in the form of assets trans-
ferred, liabilities assumed and equity instruments issued. Costs attributable to business combinations are recognised directly in
profit or loss as administrative expenses when incurred.
The book value method is applied to transfers between Group companies (common controlled transactions), according to
which assets and liabilities are transferred at their carrying amount at the date where control is obtained. The difference be-
tween the carrying value of net assets acquired and consideration is recognised directly in equity.
When enterprises are sold, the difference between the selling price and the net assets plus cumulative translation differences
and unamortised goodwill is recognised in the income statement as a separate item in finance income and finance costs.
Non-controlling interests
On initial recognition, non-controlling interests are measured at fair value or at the proportionate share of the fair value of the
acquired business's identifiable assets, liabilities and contingent liabilities. In the first scenario, goodwill in relation to the non-
controlling interests' ownership share in the acquired enterprise is thus recognised, while, in the latter scenario, goodwill in rela-
tion to non-controlling interests is not recognised. Measurement of non-controlling interests is chosen transaction by transac-
tion and stated in the notes in connection with the description of acquired enterprises.
The effect of transactions with non-controlling interests is taken directly to shareholders’ equity. Therefore, no gains or losses
are stated in the income statement, and there is no change of the carrying amount of net assets (including goodwill).
Foreign currency translation
For each of the reporting enterprises in the Group, a functional currency is determined. Transactions denominated in other cur-
rencies than the functional currency are considered transactions denominated in foreign currencies.
Transactions in foreign currencies are on initial recognition translated at the functional currency at the exchange rate of the
date of transaction.
Financial assets and liabilities in foreign currencies are translated at the exchange rates at the balance sheet date. Any foreign
exchange variances between the rates at the transaction date and the payment date or the balance sheet date, respectively,
are stated in the income statement as financial items.
Non-financial assets and liabilities in foreign currencies are stated at the rate of exchange at the date of transaction.
Notes
48
On recognition in the consolidated financial statements of foreign enterprises and associates as well as foreign joint ventures
with a functional currency different from the Group’s presentation currency, the income statements are translated at the aver-
age exchange rates and the balance sheet items are translated at the exchange rates at the balance sheet date. The calcula-
tion differences arising from the translation of the income statements of companies abroad at average exchange rates and of
their balance sheet items at the rate of exchange on the balance sheet date are taken directly to other comprehensive income.
On full or partial disposal of wholly-owned foreign operations resulting in a loss of control or on repayment of balances which
constitute part of the net investment in the foreign operation, the share of the cumulative amount of the exchange differences
that is recognised in other comprehensive income relating hereto is reclassified from other comprehensive income to profit for
the year together with gain or loss on disposal.
On the disposal of partially owned foreign subsidiaries resulting in a loss of control, the share of the translation reserve in other
comprehensive income attributable to non-controlling interests is not transferred to profit or loss.
An average exchange rate is used if it does not significantly deviate from the exchange rate ruling at the transaction date.
The assets and liabilities of a foreign company acquired are translated at the exchange rate at the date of transaction (acquisi-
tion date).
Derivative financial instruments
Derivatives are initially recognised in the balance sheet at fair value and subsequently measured at fair value. Fair value of de-
rivatives is included in other receivables or other liabilities, respectively. Fair value changes of derivatives used for cash flow
hedging are recognised in other comprehensive income. Any ineffective portions of the cash flow hedges are recognised as a
financial item. Upon settlement of the cash flow hedges, the fair value is transferred from other comprehensive income into the
line item of the hedged item.
Any changes in the fair value of derivatives not used for hedge accounting are recognised in the income statement as financial
items.
Certain contracts contain conditions that correspond to derivatives. In case the embedded derivatives deviate significantly from
the overall contract, they are recognised and measured as separate instruments at fair value. That is unless the contract con-
cerned as a whole is recognised and measured at fair value.
Income statement
Revenue
Revenue is recognised in the income statement according to IFRS 15 when delivered and the control has been transferred to
the buyer prior to the year end, the income can be measured reliably and payment has been received or is expected to be re-
ceived.
Revenue is measured at fair value of the consideration agreed excl. VAT charged on account of third party. All kinds of dis-
counts are recognised in revenue.
Trade receivables recognised as services delivered are invoiced to the customer and are not adjusted for any financing com-
ponents as credit terms are short – typically between 20 to 45 days – and the financing component therefore insignificant.
No special obligations in relation to warranties or return obligations compared to the industry.
Cost of sales
Cost of sales comprises costs incurred to generate revenue for the year and development costs which do not meet the criteria
for capitalisation. This includes raw materials, consumables, CO
2
quotas, direct labour costs and indirect production costs such
as maintenance and operation of production plant as well as production plant depreciation, administration and plant manage-
ment.
Sales and distribution costs
Sales and distribution costs comprise direct distribution and marketing costs, salaries for the sales and marketing functions as
well as other indirect costs, including depreciation and amortisation.
Administrative expenses
Administrative expenses comprise the costs of administrative staff and management and other indirect expenses, as well as
depreciation and amortisation.
Notes
49
Other operating income and costs
Other operating income and costs comprise items of a secondary nature in relation to the activities of the Group, including cer-
tain grants, rentals, fees, fair value adjustments of investment property, bargain purchase gain, etc.
Gains and losses from the disposal of property, plant and equipment which cannot be considered part of the disposal of a
complete activity are included in other operating income and costs.
Profit/loss from investments in joint ventures
The proportionate share of the profit/loss after tax in joint ventures is recognised in the consolidated income statement after
elimination of the proportionate share of intra-group profits/losses.
Financial items
Interest income and expenses comprise interest, exchange rate gains and losses regarding transactions denominated in for-
eign currencies and write-down on securities, amortisation of financial assets and liabilities as well as surcharges and refunds
under the on-account tax scheme, etc. realised and unrealised gains and losses on derivative financial instruments that are not
qualified as hedge accounting are also included.
Tax
Tax for the year comprises current tax and changes in deferred tax.
Current tax comprises tax payable calculated on the basis of the expected taxable income for the year, using the applicable tax
rates for the financial year and any adjustment of tax for previous years.
Tax related to other comprehensive income is recognised in other comprehensive income.
Deferred tax is recognised and measured according to the balance sheet liability method on all temporary differences between
the carrying amounts for financial reporting purposes and the amounts used for taxation purposes, except differences relating
to goodwill not deductible for tax purposes.
Measurement of deferred tax is based on the tax rules and tax rates applicable in the respective countries at the balance sheet
date, which is expected to be valid, when the deferred tax will be reversed as current tax. The effect of changes in the tax rates
is stated in the income statement unless it relates to items previously entered directly in Shareholders’ equity.
Deferred tax assets, including the value of tax loss carry-forwards, are recognised under financial assets at the expected value
of their utilisation; either as a set-off against tax on future income or as a set-off against deferred tax liabilities in the same legal
tax entity and jurisdiction.
Uncertain tax positions are measured at the amount estimated to be required to settle such potential future obligations. We
measure these uncertain tax positions on a yearly basis through dialog with key stakeholders in the main Group entities. The
measurement addresses the accounting for income taxes when tax treatments involve uncertainty that affects the application
of IAS 12 and IFRIC 23. We will determine whether to consider each uncertain tax treatment separately or together with one or
more other uncertain tax treatments. The approach that better predicts the resolution of the uncertainty will be followed. Uncer-
tain tax positions are measured at the most likely outcome method.
Aalborg Portland Holding A/S is covered by the Danish rules on compulsory joint taxation of the Group's Danish companies.
Enterprises are included in the joint taxation from the date of consolidation into the consolidated financial statements and up to
the date when they exit the consolidation.
Aalborg Portland Holding A/S is the administrative company for the joint taxation and consequently settles all income tax pay-
ments with the tax authorities.
The current Danish income tax is allocated by payment of joint taxation contributions between the jointly taxed companies in
proportion to their taxable income. Companies with tax losses receive joint tax contributions from companies who have used
this loss to reduce their own taxable income.
Balance sheet
Intangible assets
Goodwill
On initial recognition, goodwill is recognised in the balance sheet at cost as described under “Business combinations”. Subse-
quently goodwill is measured at cost less accumulated impairment. Goodwill is not amortised.
Notes
50
The carrying amount of goodwill is allocated to the Group’s cash-generating units at the acquisition date. Determination of
cash-generating units follows the management structure and internal financial control.
Development projects
Development projects that are clearly defined and identifiable, where the technical feasibility, sufficient resources and a poten-
tial future market or development opportunities in the Company is demonstrated, and where the Company intends to complete,
market or use the individual project, are recognised as intangible assets provided that the cost can be measured reliably and
that there is sufficient assurance that future earnings or the net selling price can cover production costs, selling and administra-
tive expenses and development costs. Other development costs are recognised in the income statement as incurred.
Development projects are measured at cost less accumulated amortisation and impairment. Cost comprises wages and sala-
ries, amortisation and other costs attributable to the Group's development activities.
Following the completion of the development work, development costs are amortised on a straight-line basis over the estimat-
ed useful life from the date when the asset is available for use. The amortisation period is up to 5 years.
Other intangible assets
Other intangible assets, including intangible assets acquired in business combinations, are measured at cost less accumulated
amortisation and impairment losses.
Amortisation is made on a straight-line basis over the lower of the useful life and the contract period.
The expected useful lives are:
Software applications, up to 10 years.
Customer lists up to 25 years.
Patents, licences and other intangible assets, up to 20 years.
Leasehold improvements, up to 5 years.
CO
2
quotas
On initial recognition, granted and acquired CO
2
quotas are measured at cost.
The basis for amortisation of CO
2
quotas is stated as cost less scrap value. The scrap value depends on whether the company
expects to utilise the quotas or sell them. Amortisation is based on a portfolio view on a straight-line basis.
If the actual emission exceeds the granted and acquired CO
2
quotas, a liability corresponding to the fair value of the CO
2
quo-
tas, which the company has to settle, is recognised.
On disposal of CO
2
quotas the difference between carrying amount and the selling price of excess CO
2
quotas is recognised in
the income statement at the date of disposal.
Property, plant and equipment
Property, plant and equipment are measured at cost less accumulated depreciation and impairment.
The cost of self-constructed assets comprises direct and indirect costs of materials, components, sub-suppliers, and wages
and salaries as well as borrowing costs from specific or general lending directly relating to the construction of the individual as-
set.
Deemed costs for dismantling and disposal of the asset and re-establishment are added to cost if the deemed costs are recog-
nised as a provision. The cost of total assets is split into separate components, which are depreciated separately if the useful
lives of the individual components differ.
Subsequent costs, e.g. in connection with replacement of components of property, plant and equipment, are recognised in the
carrying amount of the asset if it is probable that the costs will result in future economic benefits for the Group. The carrying
amount of the replaced components are derecognised in the balance sheet and recognised as an expense in the income
statement. All costs incurred for ordinary repairs and maintenance are recognised in the income statement as incurred.
Depreciation is charged on a straight-line basis during the estimated useful life of the asset concerned until it reaches the esti-
mated scrap value.
Estimated useful lives are as follows:
Buildings and improvements of land, 5-50 years
Notes
51
Main machinery, 25 years
Other plant and machinery, 3-20 years
Newly acquired assets and assets of own construction are depreciated from the time they come into use. Land is not depreci-
ated, unless it is used for raw material extraction after individual assessment.
The basis of depreciation is calculated on the basis of the scrap value less impairment losses. The scrap value is determined
at the acquisition date and reassessed annually. If the scrap value exceeds the carrying amount, depreciation is discontinued.
When changing the depreciation period or the scrap value, the effect on the depreciation is recognised prospectively as a
change in accounting estimates.
Depreciation is recognised in the income statement as production costs, sales and distribution costs and administrative ex-
penses to the extent that depreciation is not included in the cost of self-constructed assets.
Lease assets and lease liabilities
Aalborg Portland Holding Group mainly leases land, building, railcars, silos, trucks, vehicles and ships. When entering into a
contract, it is assessed whether the contract is a lease or contains a lease component. A lease is defined as a contract or part
of a contract that conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
When assessing whether a contract contains a lease component, it must be considered whether, during the period of use, the
lessee has the right to essentially all economic benefits from the use of the identified asset and the right to direct the use of the
identified asset.
A right-of-use asset and a lease liability is recognised at the commencement date.
Aalborg Portland Holding Group leases silos, trucks, vehicles and ships including a service component in the payments to the
lessor. This service is separated from the lease payment when measuring the lease liability. If it is not possible to separate
lease components and non-lease components, it is considered a single lease component.
Lease liabilities recognised as "Credit institutions and interest-bearing liabilities" are initially measured at the present value of
the lease payments that are not paid at commencement date. The lease payments are discounted using the interest rate im-
plicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined, we have used the incremen-
tal borrowing rate.
The lease payments consist of fixed and variable lease payments that depend on an index or a rate, guaranteed residual val-
ues, purchase options and extension options, if the Group finds it reasonably certain to exercise the option and termination
penalties, if the lease term reflects our exercising an option to terminate the lease. The lease liability is subsequently adjusted
as follows, if:
The value of the index or rate on which the lease payments are based is changed.
The exercise of options is changed in order to extend or terminate the lease due to significant events or a significant
change in circumstances within the Company's control.
The lease term is changed if the option is exercised in order to extend or terminate the lease.
Estimated residual value guarantee is changed.
The contract is renegotiated or modified.
Any subsequent adjustment of the future lease liability is recognised as an adjustment to the right-of-use asset. If the carrying
amount of the right-of-use asset is EUR 0, a negative adjustment to the right-of-use asset is, however, recognised in the in-
come statement.
The right-of-use asset is initially measured at cost comprising amount of initial measurement of the lease liability plus any initial
direct costs and any estimated costs of dismantling and removal of the asset at the end of the lease term which the Company
is under an obligation to incur and any prepaid lease payments and less any lease incentives received.
The right-of-use asset is depreciated over the shorter of the lease term and the useful life of the right-of-use asset.
Short-term leases with a maximum lease term of 12 months and leases for low value assets are not recognised in the balance
sheet.
Notes
52
Investment properties
Properties are classified as investment properties when they are held for the purpose of obtaining rental income and/or capital
gains. On initial recognition, investment properties are measured at cost, comprising purchase price and costs directly attribut-
able to the acquisition. Subsequently, investment properties are measured at fair value. Changes in the fair value are recog-
nised in profit or loss as value adjustment of investment properties under other operating income/costs in the financial year in
which the change arises.
Realised gains and losses on the disposal of investment properties are determined as the difference between the carrying
amount and the sales price and are also recognised under other operating income/costs.
If investment properties are reclassified to own property, fair value at this date is considered new cost price.
Investments in joint ventures
Investments in jointly managed enterprises (joint ventures) are measured according to the equity method, and the investments
are recognised in the balance sheet as the proportionate share of the equity value of the entities stated in accordance with the
Group's accounting policies, adding or deducting the proportionate share of unrealised intra-group profits and losses, and add-
ing carrying amount of goodwill.
Joint ventures with negative equity value are measured at zero. If the Group has a legal or constructive obligation to cover a
deficit in the joint ventures, the remaining amount is recognised under liabilities.
Other non-current assets
Other non-current assets mainly relate to deposits and loans which are measured at amortised cost. Amortisation for the year
is stated in the income statement.
Impairment of non-current assets
Goodwill is subject to annual impairment tests, initially before the end of the acquisition year.
The carrying amount of goodwill is tested together with the other non-current assets of the cash-generating unit or group of
cash-generating units to which goodwill is allocated. The assets of the cash-generating units are written down to the recovera-
ble amount in profit or loss if the carrying amount is higher. The recoverable amount of a cash-generating unit is generally de-
termined as the present value of the expected future net cash flows from the entity or activity (cash-generating unit) to which
goodwill is allocated. However, impairment losses on goodwill are recognised as other operating costs in the income state-
ment.
The carrying amount of other non-current assets, except for goodwill, investment properties and financial assets measured at
fair value, is tested annually for indications of impairment. When there is an indication that assets may be impaired, the recov-
erable amount of the asset is determined. The recoverable amount is the higher of an asset's fair value less expected costs to
sell and its value in use. Value in use is the present value of the future cash flows expected to be derived from an asset or the
cash-generating unit to which the asset belongs.
An impairment loss is recognised if the carrying amount of an asset or a cash-generating unit, respectively, exceeds the re-
coverable amount of the asset or the cash-generating unit.
Amortisation and depreciation of intangible assets and property, plant and equipment are recognised in the same item as the
related amortisation and depreciation. However, impairment losses on goodwill are recognised in a separate line item in the in-
come statement.
Inventories
Raw materials and consumables are measured at cost. Cost is computed according to the weighted average cost method.
The cost of goods for resale and raw materials and consumables comprises purchase price plus delivery costs.
The cost of work in progress and finished goods comprise direct production costs with addition of indirect production costs. In-
direct production costs include operating costs, maintenance and depreciation of production plant and plant management.
If the net realisable value is lower than cost, write-down is made to this lower value.
Receivables
Receivables are measured at amortised cost.
Notes
53
Write-downs are made to counter losses on the basis of expected losses using the simplified expected credit loss model.
Receivables are monitored on an ongoing basis in accordance with the company's risk policy. Impairment losses are calculat-
ed on the basis of the expected loss ratio broken down by geographic markets. Loss rates are determined on the basis of his-
torical data for losses adjusted for estimates of the effect of expected changes in relevant parameters, such as general eco-
nomic development, interest rate level, unemployment, etc. in the relevant markets. The total loss is recognised in the income
statement on the basis of the expected losses during the entire period of the receivable.
Equity
Dividends are recognised as debt at the time of approval at the annual general meeting (time of declaration). Dividends which
are proposed for distribution are therefore stated separately in the shareholders’ equity.
Reserves relating to foreign exchange adjustments in the consolidated financial statements comprise currency translation dif-
ferences arising from the translation of the financial statements of foreign entities from their functional currencies to the presen-
tation currency of the Aalborg Portland Holding Group (EUR) and foreign exchange adjustments of assets and liabilities con-
sidered to be part of the Group's net investment in foreign operations.
On full or partial realisation of net investments, exchange differences are recognised in the income statement.
Pensions, defined contribution schemes
In contribution pension schemes the employer is obliged to pay a specific contribution (e.g. a fixed sum or a fixed percentage
of the pay). In a contribution scheme the risk in respect of future developments in interest rate, inflation, mortality and invalidity
is not borne by the Group.
Payments by the Group into defined contribution schemes are stated in the income statement for the period to which they ap-
ply and any outstanding payments are stated in the balance sheet as Other payables.
Pensions, defined benefit schemes
In benefit pension schemes the employer is obliged to pay a specific benefit (e.g. a retirement pension as a fixed sum or a
fixed percentage of final pay). In a benefit scheme the Group bears the risk with regard to future development in interest rate,
inflation, mortality and invalidity.
An annual actuarial valuation is carried out to determine the present value of the future benefits which the employees have ob-
tained under defined benefit schemes. The present value is calculated on the basis of assumptions for future developments in
wage/salary level, interest rates, inflation, pension age and mortality. The present value is calculated only for benefits to which
the employees have already earned the right during their employment with the Group. The actuarial present value less the fair
value of any plan assets is recognised in the balance sheet under retirement benefit obligations.
The pension costs of the year are recognised in income statement based on actuarial estimates at the beginning of the year.
Differences between the calculated growth in pension assets and liabilities and the realised values stated at the end of the year
are classified as actuarial gains or losses and are recognised in other comprehensive income.
If a pension plan constitutes a net asset, the asset is only recognised if it represents future refunds from the plan or will lead to
reduced future payments to the plan.
Long-term employee benefits are recognised based on an actuarial calculation. All actuarial gains and losses are recognised in
the income statement immediately. Other long-term employee benefits include i.a. anniversary bonuses.
Provisions
Provisions are recognised when, as a result of past events, the Group has a legal or a constructive obligation and it is probable
that there may be an outflow of resources embodying economic benefits to settle the obligation.
When the Group has a legal obligation to dismantle or remove an asset or restore the site on which the asset is located, a pro-
vision is recognised corresponding to the present value of expected future costs. The present value of costs is recognised in
the income statement for the tangible assets concerned and is amortised together with these assets over the useful lives or ac-
cording to the production method.
Provisions are measured as the best estimate of the expenses required to settle the obligation at the balance sheet date.
Financial liabilities
Amounts owed to credit institutions are recognised when raising the loan at fair value less transaction costs. Subsequent
measurement is made at amortised cost so that the difference between the proceeds and the nominal value is recognised in
the income statement during the term of the loan.
Notes
54
The capitalised remaining lease liability of finance leases is also recognised in financial liabilities, measured at amortised cost.
Other financial liabilities are measured at amortised cost.
Deferred income
Deferred income is measured at cost.
Cash flow statement
The cash flow statement is presented according to the indirect method and shows the composition of the cash flow divided into
operating, investing and financing activities, respectively, and the cash funds at the beginning and end of the year.
In the statement of working capital/loans a distinction is made between interest-bearing and non-interest-bearing items plus
cash funds.
Cash funds consist of cash in hand and bank deposits.
Loans represent total interest-bearing debt items less interest-bearing receivables.
All other non-interest-bearing receivables and debt items are regarded as working capital.
Cash flows from operating activities are stated as Profit for the year (EAT) adjusted for non-cash operating items, changes in
working capital, financial items and paid tax.
Cash flows from investing activities comprise payments made in connection with the acquisition and disposal of enterprises
and activities and the acquisition and disposal of non-current assets.
Cash flows from financing activities comprise payments to and contributions from owners as well as the raising and repayment
of loans.
Segment reporting
The Aalborg Portland Holding Group is not a listed company and therefore no segment reporting is made according to IFRS 8.
Forthcoming requirements
IASB has issued several new or amended accounting standards, which are not effective for the financial year 2022. Generally,
we expect to implement all new or amended accounting standards and interpretations when they become mandatory and have
been endorsed by the EU.
Income statement
Statement of comprehensive income
Cash flow statement
Balance sheet
Statement of shareholders' equity
Notes:
1 Revenue
2 Staff costs
3 Fees to the auditors appointed by the Annual General Meeting
4 Financial income and expenses
5 Income tax
6 Intangible assets
7 Property, plant and equipment
8 Other non-current assets
9 Deferred tax assets and deferred tax liabilities
10 Other receivables and prepayments
11 Credit institutions and other borrowings
12 Other payables
13 Contingent liabilities, contractual obligations and contingent assets
14 Related party transactions
15 Financial risks and financial instruments
16 Post-balance sheet events
17 Critical accounting policies as well as account estimated and judgements
18 Accounting policies
55
Income statement
EUR '000
2022 2021
Notes
1 Revenue 120,002 128,174
2+3+4 Cost of Sales 46 47
Gross profit 119,956 128,127
2 Sales and distribution costs 0 7,844
2+3 Administrative expenses 21,842 15,315
Other operating income 02
Earnings before interest and tax (EBIT) 98,114 104,970
4 Financial income 7,235 6,995
4 Financial expenses 16,944 69,106
Earnings before tax (EBT) 88,405 42,859
5 Tax on profit/loss for the year 2,346 6,731
Profit/loss for the year 86,059 36,128
To be distributed as follows:
Retained earnings 86,059 36,128
Statement of comprehensive income
EUR '000
2022 2021
Notes
Profit/loss for the year 86,059 36,128
Total comprehensive incom
e
86,059 36,128
56
Cash flow statement
EUR '000
2022 2021
Notes
Profit or loss for the period 86,059 36,128
Reversal of amortisation and depreciation 169 146
Reversal of revaluation / impairment losses 0 65,594
Net financial income / expense -88,707 -109,225
Income taxes 2,346 6,731
Operating cash flows before changes in working capital -133 -626
Increase / decrease trade receivables -809 -696
Increase / decrease trade payables -3,806 1,449
Change in non-current/current other assets/liabilities 2 5,970
Change in current and deferred taxes -3 -5,945
Operating cash flows -4,749 152
Dividends received 98,416 105,741
Interests received 5,741 5,869
Interests paid -969 -516
Other income collected/expenses paid -13,091 -2,092
Income taxes paid -3,692 -4,336
Cash flow from operating activities 81,656 104,818
Other variances investment assets 0 -18
Cash from investing activities 0 -18
Change in non-current financial liabilities 5,266 -59,188
Change in current financial assets/liabilities 18,976 -24,817
Dividend distributed -70,008 -25,937
Other variances of equity 25 -163
Cash flow from financing activities -45,741 -110,105
Net change in cash and cash equivalent 35,915 -5,305
Cash and cash equivalent exchange rate effect 14 29
Cash and cash equivalent opening balance 44,154 49,430
Cash and cash equivalent closing 80,083 44,154
57
Balance sheet
EUR '000
ASSETS 2022 2021
Notes
Other intangible assets 80 88
6 Intangible assets 80 88
Land and buildings 47 63
Right-of-use assets 291 394
7 Property, plant and equipment 338 457
8 Other non-current assets 640,158 640,855
8+9 Deferred tax assets 0 698
Other non-current assets 640,158 641,553
Total non-current assets 640,576 642,098
Amounts owed by Group enterprises 104,765 116,010
Amounts owed by related parties 50,999 15,999
Derivative financial instruments (positive fair value) 6,812 1,545
Joint taxation contribution receivable 20,891 24,108
10 Other receivables 59 0
10 Prepayments 77 64
Receivables 183,603 157,726
Cash and cash equivalents 80,083 44,154
Total current assets 263,686 201,880
TOTAL ASSET
S
904,262 843,978
58
Balance sheet
EUR '000
EQUITY AND LIABILITIES 2022 2021
Notes Shareholder's equit
y
Share capital 40,333 40,333
Hedge reserve 9,717 1,391
Retained earnings 558,103 542,715
Total shareholders' equity 608,153 584,439
Liabilities
8 Deferred tax liabilities 33 0
11 Credit institutions, etc. 168 266
Derivative financial instruments (negative fair value) 13,455 8,621
Deferred income 31 160
Non-current liabilities 13,687 9,047
11 Credit institutions, etc. 125 130
Trade payables 145 123
Amounts owed to Group enterprises 280,295 243,164
Income tax payable 733 6,027
12 Other payables 996 920
Deferred income 128 128
Current liabilities 282,422 250,492
Total liabilities 296,109 259,539
TOTAL EQUITY AND LIABILITIE
S
904,262 843,978
59
Statement of shareholders' equit
y
EUR '000
Share capital
Hedge
reserve
Retained
earnings Total equity
40,333 1,391 542,715 584,439
0 3 -663 -660
0 8,323 0 8,323
0 0 -70,008 -70,008
0 0 86,059 86,059
40,333 9,717 558,103 608,153
Share capital
Hedge
reserve
Retained
earnings Total equity
40,333 -592 531,930 571,671
0 0 594 594
0 1,983 0 1,983
0 0 -25,937 -25,937
0 0 36,128 36,128
40,333 1,391 542,715 584,439
The share capital in 2022 and 2021 consists of:
1 share at DKK 150m
1 share at DKK 60m
2 shares at DKK 30m each
1 share at DKK 15m
Effect of translation to presentation currency
Profit for the year (total comprehensive income)
Shareholders' equity at 31 December 2021
5 shares at DKK 3m each
Dividends distributed to shareholders in 2022 were EUR 70.0m (2021: EUR 26.0m).
All shares are fully issued and paid up. One share of DKK 1,000 holds one vote.
Changes in fair value of financial instruments
Payment of dividend
Effect of translation to presentation currency
Profit for the year (total comprehensive income)
Shareholders' equity at 1 January 2022
Shareholders' equity at 31 December 2022
Shareholders' equity at 1 January 2021
Payment of dividend
Changes in fair value of financial instruments
60
Notes
EUR '000
1 Revenue 2022 2021
Dividend received 98,416 105,741
21,586 22,433
120,002 128,174
2 Staff costs
Wages and salaries and other remuneration 3,991 2,054
Pension costs, defined contribution scheme 266 166
Social security costs 18 4
4,275 2,224
Number of employees at 31 December 27 27
Average number of full-time employees 27 10
Salaries and remunerations 699 376
Pension contributions 51 23
750 399
Hereof Board of Directors and Management 387 399
3 Fees to the auditors appointed by the Annual General Meetin
g
Total fees to KPMG and PwC are specified as follows:
Statutory audit 25 2
Other services 10 -35
35 -33
Hereof fees to PwC 22 22
Fees to other auditors 40 23
4 Financial income and expenses
Financial income
Interest, cash funds, etc. 266 2
Interest, Group enterprises 5,474 5,867
Financial income on derivatives 128 128
Exchange rate adjustments 1,367 998
7,235 6,995
Interest on financial assets measured at amortised cost 5,740 5,869
Financial expenses
Interest, credit institutions, etc. 126 144
Interest, Group enterprises 847 375
Losses on derivatives 4,845 2,606
Ineffective part of hedge 578 -290
Exchange rate adjustments 98 178
Other financial expenses 10,450 66,093
16,944 69,106
Interest on financial obligations measured at amortised cost 973 519
Remuneration of the Board of Directors represents EUR 75k in 2022 (2021: EUR 75k).
Remuneration of the Board of Directors, the Management and other
senior executives
Pension schemes in Aalborg Portland Holding A/S are defined contribution schemes, which do not entail any obligations
beyond payment of contributions.
Consultancy services provided to subsidiaries
Other financial expenses of EUR 10.5m (2021: EUR 66.1m) include the impairment of the investment in Cimentas Group
deriving from the difference between the expected future cash flow and the carrying amount of the investment, reference is
made to note 7.
Pension schemes
61
Notes
EUR '000
5 Income ta
x
2022 2021
Income ta
x
Current tax on the profit for the year/joint taxation contribution 1,986 2,356
Deferred tax adjustment 730 -99
Other adjustments, including previous years -370 4,474
2,346 6,731
Taxes paid -3,692 -4,336
Reconciliation of tax rate
Tax according to Danish tax rate 22.0% 19,450 23,860
Dividends received from subsidiaries and profits from sales -17,527 -23,263
Other, including adjustments previous years 423 6,134
2,346 6,731
Applicable tax rate for the yea
r
3
%
16
%
Total income ta
x
2,346 6,731
6 Intangible assets
Other
intangible
assets Total
Cost at 1 January 2022 245 245
Cost at 31 December 2022 245 245
Amortisation and impairment at 1 January 2022 157 157
Amortisation for the year 88
Amortisation and impairment at 31 December 202
2
165 165
Carrying amount at 31 December 2022 80 80
Other
intangible
assets Total
Cost at 1 January 2021 244 244
Exchange rate adjustments 11
Cost at 31 December 2021 245 245
Amortisation and impairment at 1 January 2021 149 149
Amortisation for the year 88
Amortisation and impairment at 31 December 2021 157 157
Carrying amount at 31 December 2021 88 88
2022 2021
Amortisation during the year is included in the following items:
Administrative expenses 88
88
Other intangible assets include patents.
According to legislation, the Parent Company is the administrative company of the compulsory Danish joint taxation.
62
Notes
EUR '000
7 Property, plant and equipmen
t
Land and
buildings
Right-of-use
assets
Total
Cost at 1 January 2022 80 638 718
Additions 06969
Disposals 0 -78 -78
Cost at 31 December 2022 80 629 709
Depreciation and impairment at 1 January 2022 17 244 261
Reversed depreciation on disposals 0 -51 -51
Depreciation for the year 16 145 161
Depreciation and impairment at 31 December 2022 33 338 371
Carrying amount at 31 December 2022 47 291 338
Land and
buildings
Right-of-use
assets
Total
Cost at 1 January 2021 80 539 619
Additions 03737
Reclassifications 06262
Cost at 31 December 2021 80 638 718
Depreciation and impairment at 1 January 2021 1 79 80
Depreciation for the year 16 122 138
Other adjustments/reclassifications 0 43 43
Depreciation and impairment at 31 December 2021 17 244 261
Carrying amount at 31 December 2021 63 394 457
2022 2021
Depreciation during the year is included in the following items:
Administrative expenses 161 138
161 138
Variable lease payments may depend on an index, a rate or other elements. Variable lease payments that depend on an
index or a rate are included in the initial measurement of the lease liability using the index/rate at the lease commencement
The Company is not exposed to any significant future cash outflows that are not reflected in the measurement of lease
liabilities. Residual value guarantees that are expected to be paid are included in the initial measurement of the lease
liability. Reference is made to note 11.
63
Notes
EUR '000
8 Other non-current assets
Cost at 1 January 2022 808,448 698 809,146
Exchange rate adjustments -699 0 -699
Additions 10,424 0 10,424
Change offset in provision for deferred tax 0 -698 -698
Cost at 31 December 2022 818,173 0 818,173
Impairment at 1 January 2022 -167,593 0 -167,593
Exchange rate adjustments 2 0 2
Impairment -10,424 0 -10,424
Impairment at 31 December 2022 -178,015 0 -178,015
Carrying amount at 31 December 2022 640,158 0 640,158
Cost at 1 January 2021 807,653 599 808,252
Exchange rate adjustments 795 0 795
Additions 0 103 103
Disposals 0-2-2
Change offset in provision for deferred tax 0 -2 -2
Cost at 31 December 2021 808,448 698 809,146
Adjustments at 1 January 2021 -101,931 0 -101,931
Exchange rate adjustments -68 0 -68
Impairment -65,594 0 -65,594
Adjustments at 31 December 2021 -167,593 0 -167,593
Carrying amount at 31 December 2021 640,855 698 641,553
9 Deferred tax assets and deferred tax liabilities 2022 2021
Change in deferred tax in the yea
r
Deferred tax at 1 January 698 599
Adjustments, previous years via income statement -726 -2
Movements via income statement -5 101
Deferred tax assets at 31 December, net -33 698
Deferred tax is presented in the balance sheet as follows:
Deferred tax liabilities 33 0
Deferred tax assets 0 698
Deferred tax assets at 31 December, net -33 698
2022 2021 2022 2021
Intangible assets 0 -11 13 0
Property, plant and equipment 0 -3 3 0
Current assets 0 -14 17 0
Non-current and current liabilities 0 726 0 0
Deferred tax at 31 December 0 698 33 0
Deferred tax assets Deferred tax liabilities
Investments
in
subsidiaries
Deferred tax
assets Total
Impairment test has been performed in relation to goodwill, which has indicated an impairment of EUR 10.4m, which has
been booked as an impairment loss.
The impairment test of Cimentas Group is further supported by the stock market price.
At 31 December 2021 the impairment test performed on the Cimentas Group investment outlined that the expected future
cash flow is lower than the carrying amount of the investment with an amount of EUR 65.6m, which has been booked as an
impairment loss.
The main reason to the impairment is due to the devaluation of the Turkish lira in 2021 and continued uncertainty about
economic policy and development.
Investments
in
subsidiaries
Deferred tax
assets Total
64
Notes
EUR '000
10 Other receivables and prepayment
s
11 Credit institutions and other borrowings
Bank borrowings and credits in the Parent Company at 31 December:
2022 2021
Bank borrowings and credits 2022 Variable 0 0
Lease liability 2026 Variable 293 396
Financial payable Group enterprises 2022 Fixed 0 0
293 396
31 December 2022:
Lease liability 168 125 293 0
168 125 293 0
Specification of contractual cash flows incl. interest:
Lease liability 168 125 293 0
168 125 293 0
31 December 2021:
Finance leases 266 130 396 0
266 130 396 0
Specification of contractual cash flows incl. interest:
Bank borrowings and credits 0 19 19 0
Finance leases 266 130 396 0
266 149 415 0
12 Other payables
Maturity
>5 yearsTotal
Current
borrowings
(0-1 year)
Non-current
borrowings
(>1 year)
Other current payables include holiday pay liabilities, taxes and public indirect taxes.
Other financial liabilities are due within 1 year.
Year of
maturity
Fixed/
variable
Carrying
amount
Carrying
amount
Fair values do not significantly deviate from the carrying amount.
The maturity analysis is based on all undiscounted cash flows including estimated payment of interest.
Payment of interest is estimated and based on the present market conditions.
The Parent Company's debt to credit institutions has been recognised and falls due as follows:
Non-current
borrowings
(>1 year)
Current
borrowings
(0-1 year)
Total
Maturity
>5 years
Fair values correspond to the nominal outstanding debt.
Other receivables include VAT and other receivables.
Prepayments comprise insurance.
65
Notes
EUR '000
13 Contingent liabilities, contractual obligations and contingent asset
s
Contingent liabilities
14 Related party transaction
s
Transactions with Cementir Holding N.V.: 2022 2021
- Intra-group management and administration agreements and royalties 0 7,844
- Financial items, net 0 -373
- Payables 0 2,218
- Non-current financing -15,999 15,999
Transactions with other related parties:
- Intercompany management, administration agreements and shared service 5,312 9,872
- Financial items, net -5,795 5,865
- Trade and financial receivables 104,756 115,985
- Trade and financial payables 280,294 240,945
The Parent Company is taxed jointly with other Danish companies in the Aalborg Portland Holding Group. As an
administrative company, the Parent Company is jointly and unlimited liable with the other companies in the joint taxation of
Danish taxes at source and income taxes within the joint taxation group. Payable income taxes in the joint taxation group
amounted to EUR 6.9m at 31 December 2022 (2021: EUR 3.2m). Any subsequent corrections of the taxable income subject
to joint taxation could cause a higher liability of the Parent Company.
Related parties within Aalborg Portland Holding A/S comprise the enterprises' Board of Directors and Management together
with family related to these persons.
Furthermore, related parties comprise enterprises in which the above-mentioned persons have significant interests.
Additionally, related parties include subsidiaries, joint ventures and joint operation cf. page 74, where the Parent Company
has significant influence or exercises control or joint control.
The Parent Company is involved in a few disputes, lawsuits, etc., of various scopes, including a few tax disputes in some
countries. No significant liabilities are considered to be incumbent on the Parent Company in that respect, and the outcome
of the disputes is not expected to have significant impact on the Parent Company's financial position beyond what has been
recognised in the balance sheet.
In 2022, contractual liabilities are EUR 0.0m (2021: EUR 0.0m).
No losses on loans to or receivables from related parties were recognised, nor provisions made for such in 2022 or 2021.
- Cementir España S.L., Calle General Yagüe, Num. 13, 28020 Madrid, Spain
- Cementir Holding N.V., Zuidplein, 36, 1077 XV Amsterdam, Netherlands
- Caltagirone S.p.A., Via Barberini, 28, 00187 Rome, Italy
Remuneration of the Board of Directors and the Management is presented in note 2.
Related parties with significant influence in Aalborg Portland Holding A/S:
66
Notes
67
15 Financial risks and financial instruments
The Parent Company's most predominant currency exposure regarding the operating results arises from NOK and USD. A
10% drop in these exchange rates compared to EUR/DKK would, viewed separately, decrease EBITDA by EUR 0.1m. NOK
amounts to EUR 0.0m and USD amounts to EUR 0.1m (2021: EUR 0.1m. NOK amounted to EUR 0.0m and USD amounted to
EUR 0.1m).
Currency risks
Forward contracts regarding future transactions
The Group does not comply with the conditions for taking out hedge accounting of future cash flows from the sale of goods. In
terms of the hedging of future investments, the Group assesses in each case whether these comply with the conditions for
hedge accounting.
There have been no currency forward contracts at 31 December 2022 or at 31 December 2021.
The Parent Company entered into a swap agreement (hedge accounting) with a termination date in 2024, where both currency
risk and interest risk have been hedged. Related to the interest risk the Group has agreed to pay a fixed rate of 0.43% + a
spread of 3.63% and the Group will receive EURIBOR + a spread of 2.88% each 30 April and 31 October until maturity. The
effective part of the hedge is equal to all future cash flow payments and nominal installments.
The fair value liability is included in a separate line item in the balance sheet "Derivative financial instruments”.
The ineffective part is recognised as financial income.
2022:
2021:
Interest rate risk
The Parent Company is included in the cash pool for the Group.
Liquidity risks
Aalborg Portland Holding A/S has access to funding through the Cementir Holding facility which includes certain covenants.
The Parent Company acts as account holder of the Group's cash pool scheme and as bank in proportion to other intra-group
loans. The purpose of the cash pool scheme is to optimise cash management and the use of liquidity in the participating com-
panies.
Credit risks
Receivables from the Parent Company’s activities are attributable to Danish and foreign Group companies. The Parent Com-
pany is familiar with customers, who have not been granted long credit lines.
The Parent Company's trade receivables at 31 December 2022 and 31 December 2021 include no write-downs. Historically
there have not been any write-downs.
Regarding management of capital structure, reference is made to note 27 in the consolidated financial statements.
Fair value measurement
Financial instruments measured at fair value are measured on a recurring basis and categorised into the following levels of the
fair value hierarchy:
Level 1: Observable market prices for identical instruments
Change in fair Ineffective part
Fair value value recognised recognised in income
Notional amount < 1 year 1-5 years > 5 years Strike liability in hedge reserve statement
EURm
Swap USD/EUR 75.8 9.9 65.9 0.0
1.00 EUR/
1.235 USD
-6.6 8.3 0.6
Maturity
Change in fair Ineffective part
Fair value value recognised recognised in income
Notional amount < 1 year 1-5 years > 5 years Strike liability in hedge reserve statement
EURm
Swap USD/EUR 85.9 10.1 75.8 0.0
1.00 EUR/
1.235 USD
-7.1 2.0 0.3
Maturity
Notes
68
Level 2: Valuation techniques primarily based on observable prices or traded prices for comparable instruments
Level 3: Valuation techniques primarily based on unobservable prices
Securities and investments measured at fair value through profit/loss are either measured at quoted prices in an active market
for the same type of instrument (level 1) or at fair value based on available data (level 3).
Hedging instruments are not traded on an active market based on quoted prices. Measured instead of using a valuation tech-
nique, where all significant inputs are based on observable market data; such as exchange rates, interest rates, credit risk and
volatilities (level 2).
There have been no transfers between the levels in 2022 or 2021.
Specification of financial assets and obligations
Methods and assumptions on determination of fair values
In general, fair value corresponds to the carrying value, except for mortgage loans.
Financial instruments related to sale and procurement of goods, etc. with a short credit period are measured at fair value corre-
sponding to the carrying value.
Derivative financial instruments are computed on generally accepted valuation methods based on relevant exchange rates.
The methods used are unchanged compared to 2021.
16 Post-balance sheet events
There have been no post-balance sheet events material to this Annual Report which have not been recognised or mentioned.
17 Estimation on uncertainties and judgements
Investments in subsidiaries are tested for impairment based on performed impairment tests of goodwill as described in note 9
in the consolidated financial statements. Uncertainty is mainly related to Türkiye.
18 Accounting policies
Parent Company
The Parent Company’s financial statements are prepared in accordance with International Financial Reporting Standards as
adopted by the EU and additional Danish disclosure requirements for annual reports, according to large class C.
Compared to the accounting policies applied in the consolidated financial statements (see note 31 to the consolidated financial
statements), the Parent Company’s accounting policies only deviate in the following items:
Revenues
Dividends received from investments in subsidiaries and joint ventures are recognised as revenue in the Parent Company’s
income statement in the financial year in which the dividends are declared. To the extent that the distributed dividend exceeds
Carrying Carrying
value Fair value value Fair value
EUR '000 2022 2022 2021 2021
Financial assets measured at fair value through the
income statement 0 0 0 0
Derivatives used as hedging instruments, level 2 0 0 0 0
Loans and receivables 104,824 104,824 116,010 116,010
Financial obligations measured at fair value through the
income statement 0 0 0 0
Derivatives used as hedging instruments, level 2 13,455 13,455 8,621 8,621
Financial obligations measured at amortised cost 281,436 281,436 244,207 244,207
Notes
69
the total comprehensive income of enterprises for the period when the decision to pay interim dividend is made, impairment
test is carried out.
Investments in subsidiaries
Investments in subsidiaries are measured at cost. In case of indication of impairment, impairment test is carried out as de-
scribed in the accounting policies of the Group. If the carrying value exceeds the recoverable amount, write-down is made to
this lower value.
On disposal of investments in subsidiaries, the difference between the sales price and the carrying amount (cost of the shares
based on a weighted average) is recognised in the income statement at the date of disposal.
Signatures
70
Statement by the Board of Directors and the Executive Board
Executive Board
Board of Directors
Francesco Caltagirone Jr Marco Maria Bianconi
�
�
Signatures
71
Ind
ependent auditor’s report
Signatures
72
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 ma-
terial misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasona-
ble 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 reasona-
bly be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark, we exer-
cise professional judgment and maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or erro
r,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and ap-
propriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error as fraud may involve collusion, forgery, intentional omissions, misrepresen-
tations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appro-
priate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s
and the Parent Company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and re-
lated disclosures made by Managemen
t.
Conclude on the appropriateness of Management’s use of the going concern basis of accounting in preparing the
financial statements and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Group’s and the Parent Company’s ability to continue
as
a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s
report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However,
future events or conditions may cause the Group and the Parent Company to cease to continue as a going con-
cern
.
Evaluate the overall presentation, structure and contents of the financial statements, including the disclosures, and
whether the financial statements represent the underlying transactions and events in a manner that gives a true
and fair view.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities
within the Group to express an opinion on the Consolidated Financial Statements. We are responsible for the direc-
tion, supervision and performance of the group audit. We remain solely responsible for our audit opinio
n.
W
e 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.
Sta
te Authorised Public Accountant
e
Management
73
Board of Directors
Bjarne Moltke Hansen, Chairman
Alessandro Caltagirone, Vice Chairman
Azzurra Caltagirone
Francesco Caltagirone Jr
Francesco Gaetano Caltagirone
Marco Maria Bianconi
Claudio Criscuoli
Ex
ecutive Board
Francesco Caltagirone Jr, CEO
Henning Bæk, Executive Vice President
Nordic & Baltic
Søren Holm Christensen, CEO
Aalborg Portland
Søren Holm Christensen, CEO
Michael Lundgaard Thomsen, CCO
Henrik Jeppesen, CFO
Unicon
Søren Holm Christensen, CEO
Henrik Jeppesen, CFO
Belgium
Eddy Fostier, General Manager
Türkiye
Cenker Mirzaoğlu, CEO
Ov
erseas
Alberto Barbieri, Managing Director, Egypt
Alessandro Civera, Managing Director, USA
Fabrizio Piero Carraro, Managing Director, Malaysia
Yan Xing Wu, Managing Director, China
Owners
Aalborg Portland Holding A/S is 75% owned by
Cementir España S.L., Spain and 25% owned by
Globo Cem S.L., Spain.
Aalborg Portland Holding A/S is included in the
Group financial statements for Cementir Holding
N.V., the Netherlands, and Caltagirone S.p.A.,
Italy.
Direct
holding
*** Minorities
Aalborg Portland Holding A/S
Denmark
DKK 300,000 -
Spartan Hive S.p.A. Ital
y
EU
R
300,000 100.0%
A
alborg Portland Digital S.R.L. Ital
y
EU
R
500,000 100.0%
Aalborg Portland
Aalborg Portland A/S Denmark DKK 100,000 100.0%
Aalborg Portland Íslandi ehf. Iceland ISK 303,000 100.0%
Aalborg Portland Polska Sp. z o.o. Poland PLN 100 100.0%
Aalborg Portland OOO * Russia RUB 14,700 99.9%
Aalborg Portland France S.A.S. France EUR 10 100.0%
Aalborg Portland Belgium S.A. Belgium EUR 500 100.0%
Unicon
Unicon A/S Denmark DKK 150,000 100.0%
Unicon AS Norwa
y
NOK 13,289 100.0%
A
B Sydsten Sweden SEK 15,000
50
.
0%
50
.
0%
Å
GAB Syd AB ** Sweden SEK 500
40.0%
Skåne Grus AB Sweden SEK 1,000
60.0% 40.0%
Ecol-Unicon Sp. z o.o. ** Poland PLN 1,000 49.0%
Kudsk & Dahl A/S Denmark DKK 10,000 100.0%
Belgium
Compagnie des Ciments Belges S.A. (CCB) Belgium EUR 179,344 100.0%
Société des Carrières du Tournaisis S.A. (S.C.T.) **** Belgium EUR 12,297 65.0%
Recybel S.A. Belgium EUR 99 25.5%
Mixers at your Service NV Belgium EUR 976 18.0%
France EUR 34,363 100.0%
Overseas
Sinai White Portland Cement Co. S.A.E. Egypt EGP 350,000 71.1% 28.9%
Aalborg Portland Malaysia Sdn. Bhd. Malaysia MYR
95,400
70.0% 30.0%
Aalborg Resources Sdn. Bhd. Malaysia MYR 2,544 100.0%
Aalborg Portland (Australia) Pty. Ltd. Australia AUD 1 100.0%
Aalborg Portland (Anqing) Co. Ltd. China CNY 265,200 100.0%
Aalborg Portland U.S. Inc. USA USD 1 100.0%
Aalborg Cement Company Inc. USA USD 1 100.0%
Gaetano Cacciatore, LLC USA USD N/A 100.0%
White Cement Company LLC USA USD N/A 100.0%
Lehigh White Cement Company, LLC USA USD N/A 63.3% 36.7%
Vianini Pipe, Inc. USA USD 4,483 100.0%
Türkiye
Aalborg Portland España S.L.U. Spain EUR 3 100.0%
Cimentas AS
Türkiye TRY 87,112 96.9% 3.1%
Cimbeton AS Türkiye TRY 1,770 50.3%
49.7%
Destek AS Türkiye TRY 50 100.0%
Kars Cimento AS Türkiye TRY 513,162 41.5%
58.5%
Recydia AS Türkiye TRY 759,544 91.1%
Sureko AS Türkiye TRY 43,444 100.0%
NWM Holdings Ltd England GBP 5,000 100.0%
Neales Waste Management Ltd England GBP 100 100.0%
Quercia Ltd. England GBP 5,000 100.0%
Ege Kirmatas AS Türkiye TRY 4,200 100.0%
Recydia AS Türkiye TRY 759,544 8.9%
* Aalborg Portland OOO has not had any sales since 2017. The company is dormant, and Management has decided to wind up the company.
** Joint ventures. Others are Group enterprises.
*** Ownershare is stated as direct holding of the superjacent enterprise.
**** Pro rata consolidated.
Compagnie des Ciments Belges France S.A. (CCBF)
Companies in the Group
Annual General Meeting
20 April 2023 at
Islands Brygge 43, Copenhagen.
The Company
P.O. Box 165, 9100 Aalborg
Tel. +45 98 16 77 77
E-mail: cement@aalborgportland.com
Internet: www.aalborgportlandholding.com
CVR No 14 24 44 41
Nominal share
capital (in 000)
74
Addresses
75
Aalborg Portland Holding Group
Aalborg Portland Holding A/S
P.O. Box 165, 9100 Aalborg
Rørdalsvej 44, 9220 Aalborg Øst
Denmark
Tel. +45 98 16 77 77
Bjarne Moltke Hansen,
Chairman of the Board of Directors
Executive Board:
Francesco Caltagirone Jr, CEO
Henning Bæk,
Executive Vice President
Spartan Hive S.p.A.
200, Corso di Francia
00191 Rome
Italy
Tel. +39 06 324931
Pasquale Vetrano, CEO
Aalborg Portland Digital SRL
200, Corso di Francia
00191 Rome
Italy
Tel. +39 06 324931
Paolo Zugaro, CEO
Aalborg Portland
Aalborg Portland A/S
P.O. Box 165, 9100 Aalborg
Rørdalsvej 44, 9220 Aalborg Øst
Denmark
Tel. +45 98 16 77 77
E-mail:
cement@aalborgportland.com
Internet: www.aalborgportland.dk
Bjarne Moltke Hansen,
Chairman of the Board of Directors
Executive Board:
Søren Holm Christensen,
CEO, Nordic & Baltic
Michael Lundgaard Thomsen, CCO
Henrik Jeppesen,
CFO
Aalborg Portland Polska Sp. z o.o.
Ul. Targowa 24
03-733 Warsaw
Poland
Tel.
+48 22 460 88 70+1
Tomasz Stasiak, Managing Director
Aalborg Portland Íslandi ehf.
Bæjarlind 4
201 Kópavogi
Iceland
Tel. +354 545 4800
Magnús Eyjólfsson, Managing Director
Aalborg Portland France S.A.S.
Avenue Bachelar Port de Commerce
17300 Rochefort
Postal address:
BP 10255
17305 Rochefort Cedex
France
Tel. +33 671 388 249
Jean-Fabien Criquioche, Managing Direc-
tor
Aalborg Portland Belgium S.A.
Evergemsesteenweg 195
9032 Ghent
Belgium
Tel. +32 472 86 47 29
Frank Brandt, General Manager
Unicon
Unicon A/S (head office)
Islands Brygge 43
P.O. Box 1978
2300 Copenhagen S
Denmark
Tel. +45 70 10 05 90
Bjarne Moltke Hansen,
Chairman of the Board of Directors
Executive Board:
Søren Holm Christensen,
CEO, Nordic & Baltic
Henrik Jeppesen,
CFO
Unicon (Denmark)
Islands Brygge 43
2300 Copenhagen S
Denmark
Tel. +45 70 10 05 90
Casper Mathiasen, Managing Director
Unicon AS (Norway)
Tevlingveien 23
1081 Oslo
Postal address:
P.O. Box 553 Sentrum
0105 Oslo
Norway
Tel. +47 67 55 54 44
Eric Staurset, Managing Director
AB Sydsten
Stenyxegatan 7
213 76 Malmö
Sweden
Tel. +46 40 31 1900
Per Smidfelt, Managing Director
Ecol-Unicon Sp. z o.o.
Registered office:
ul. Równa 2
80-067 Gdańsk
Headquarters:
ul. Marynarki Polskiej 163
80-868 Gdańsk
Poland
Tel. +48 58 306 5678
Wojciech Falkowski, Managing Director
Kudsk & Dahl A/S
Vojensvej 7
6500 Vojens
Denmark
Tel. +45 74 54 12 92
Casper Mathiasen, Managing Director
Belgium
Compagnie des Ciments Belges S.A.
(CCB)
Grand’Route, 260
7530 Gaurain-Ramecroix
Belgium
Tel. +32 69 25 25 11
Eddy Fostier, General Manager
Société des Carrières du Tournaisis
S.A.
Grand’Route, 19
7530 Gaurain-Ramecroix
Belgium
Tel. +32 69 25 14 73
Eddy Fostier,Director
Compagnie des Ciments Belges
France S.A.
23 rue Paul Dubrule
59810 Lesquin
France
Tel. +33 3 20 05 78 57
Eddy Fostier, General Manager
Addresses
76
Türkiye
Cimentas İzmir Çimento
Fabrikası Türk A.Ş.
Isiklar Mahallesi
Eski Kemalpaşa Cad. No:4B
35070 Bornova Izmir
Türkiye
Tel. +90 232 472 10 50
Cenker Mirzaoğlu, CEO
Recydia Atık Yönetimi Yenilenebilir
Enerji Üretimi Nakliye ve Lojistik
Hizmetleri Sanayi ve Ticaret Anonim
Şirketi
Egemenlik Neighbourhood
Eski Kemalpaşa
Street No: 5 Işıkkent Bornova
İzmir
Türkiye
Tel. +90 232 472 23 50
Enrico Friz, CEO
Overseas
Sinai White Portland Cement Co.
S.A.E.
604 (A), El-Safa Street
New Maadi
Cairo
Egypt
Tel. +202 2754 2761-3
Alberto Barbieri, Managing Director
Aalborg Portland Malaysia Sdn. Bhd.
Lot 75244, Pinji Estate, Lahat
P.O. Box 428
30750 Ipoh
Perak
Malaysia
Tel. +60 5 382 0388
Fabrizio Piero Carraro, Managing Director
Aalborg Portland (Anqing) Co. Ltd.
Guanbing, Yangqiao Town of Anqing
246000 Anqing, Anhui
PR China
Tel. + 86 556 536 7733
Yan Xing Wu, Managing Director
Lehigh White Cement Company, LLC
1601 Forum Place
Suite 1110
West Palm Beach, FL 33401
USA
Tel. +1 561 812 7450
Alessandro Civera, Managing Director
Gaetano Cacciatore, LLC
1601 Forum Place
Suite 1110
West Palm Beach, FL 33401
USA
Tel. +1 561 812 7450
Alessandro Civera, Manager
Vianini Pipe, Inc.
81 County Line Road
Branchburg NJ 08876
USA
Tel. +1 908 534 4021
Michael Grapsy, Managing Director