at the Annual General Meeting
Date: 22 / 4 - 2024
_______________________________
(Chairman of the meeting)
Aalborg Portland Holding A/S
P.O. Box 165, Rørdalsvej 44, 9220 Aalborg Øst
CVR No 14 24 44 41
Annual Report 2023
The present Annual Report is presented and approved
1 January 2023 - 31 December 2023
Contents
1
Management’s review
Profile ................................................................... 2
Financial highlights .............................................. 4
Management’s review .......................................... 5
Financial review ................................................... 11
Risks and uncertainties ......................................... 13
Financial statements (Group)
Income statement ................................................ 17
Statement of comprehensive income ................... 18
Cash flow statement ............................................ 19
Balance sheet ...................................................... 20
Statement of shareholders’ equity ........................ 22
Notes ................................................................... 23
Financial statements (Parent company)
Income statement ................................................ 57
Statement of comprehensive income ................... 57
Cash flow statement ............................................ 58
Balance sheet ...................................................... 59
Statement of shareholders’ equity ........................ 61
Notes ................................................................... 62
Signatures
Statement by the Board of Directors
and the Executive Board ...................................... 71
Independent auditor’s report ................................ 72
The Group
Management ........................................................ 74
Companies in the Group ....................................... 75
Addresses ............................................................. 76
Profile
2
Aalborg Portland Holding Group
Aalborg Portland Holding A/S has its head office in Aalborg, Denmark and is the parent company of the Aalborg Portland
Holding Group, which is part of the Cementir Group.
Aalborg Portland Holding A/S and the Group are consolidated in the group financial statements of Cementir Holding N.V.,
the Netherlands, and Caltagirone S.p.A., Italy (the ultimate parent company).
Cementir Holding N.V. has its registered head office in Amsterdam and a secondary office in Rome. It is listed on the Ital-
ian Stock Exchange in Milan (code CEM) and is part of the listed Caltagirone Group.
www.cementirholding.com
Products
Nordic & Baltic
A leading cement producer in the Nordic region
Aalborg Portland produces grey and white cement at its plant in Aalborg. The products are sold in Denmark and neighbour-
ing countries.
1,535,000 491,000
tonnes of grey cement tonnes of white cement
Leading supplier of ready-mixed concrete in the Nordic region
Unicon is a the market leader within ready-mixed concrete in the Nordic region. Production takes place at 68 plants in Den-
mark, Norway and Sweden. Quarrying and the sale of aggregates (mainly granite and gravel) from eight sites in Denmark
and Sweden.
1,632,000 2,675,000
m
3
of ready-mixed concrete tonnes of aggregates
Belgium & France
One of the largest producers of cement, ready-mixed concrete and aggregates in Belgium
CCB is a leader in the manufacture of cement that meets specific implementation criteria: conventional construction and ma-
sonry work, work of high aesthetic quality, structures in harsh environments and oil well drilling.
CCB has eight ready-mixed concrete plants in Belgium and four in France. Quarrying and sale of aggregates (mainly gravel
and stone) from three sites in Belgium.
1,866,000 800,000 4,851,000
tonnes of grey cement m
3
of ready-mixed concrete tonnes of aggregates
Profile
3
North America
USA
World-leading producer of white cement
Production at two plants in the USA and imports of white cement for distribution across North America.
574,000
tonnes of white cement
Türkiye
Extensive activities in Türkiye
Cimentas is among the largest cement groups in Türkiye with production at four sites in the country. Cimentas also has 21
ready-mixed concrete plants and quarrying and sells aggregates from three sites. Recydia AS processes and recycles waste
in Türkiye.
4,421,000 1,834,000 1,874,000
tonnes of grey cement m
3
of ready-mixed concrete tonnes of aggregates
Egypt
World-leading producer of white cement
Production plant in Egypt. White cement is sold in a number of markets worldwide.
556,000
tonnes of white cement
Asia Pacific
China and Malaysia
World-leading producer of white cement
Production at plants in China and Malaysia. White cement is sold in a number of markets worldwide.
1,107,000
tonnes of white cement
Financial highlights
4
Financial ratios
EBITDA ratio Earnings before depreciation/amortisation, interest and tax (EBITDA)
Revenue
EBIT ratio Earnings before interest and tax (EBIT)
Revenue
ROCE NOPAT
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
Return 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
2019 2020 2021 2022 2023
CONSOLIDATED INCOME STATEMENT
Revenue 1.214,2 1.225,2 1.360,2 1.723,3 1.695,0
Earnings before depreciation/amortisation, impairment
losses, provisions, interest and tax (EBITDA) 255,2 278,3 329,1 347,3 422,5
EBITDA ratio 21,0% 22,7% 24,2% 20,2% 24,9%
Earnings before interest and tax (EBIT) 146,9 174,5 219,2 217,8 290,5
EBIT ratio 12,1% 14,2% 16,1% 12,6% 17,1%
Earnings before tax (EBT) 132,4 162,1 208,5 253,3 305,3
Profit for the year 95,1 124,9 150,9 196,3 231,1
CASH FLOWS
Cash flows from operating activities (CFFO) 209,1 250,9 249,6 294,4 317,8
Cash flows from investing activities (CFFI) * -28,8 -77,3 -82,1 -100,9 -97,4
Free cash flow (FCF) 180,3 173,6 167,5 193,5 220,4
* Hereof investments in intangible assest and property, -61,5 -57,1 -81,5 -105,1
-114,0
plant and equipment (excl. assets acquired at acquisition
of enterprises)
BALANCE SHEET
Total assets 1.909,9 1.841,2 1.895,0 2.302,3 2.357,2
Consolidated shareholders' equity 1.020,9 1.040,3 1.127,9 1.392,3 1.480,1
Net interest-bearing debt (NIBD) 138,8 0,8 -123,0 -228,1 -307,6
Working capital (WC) 93,9 76,2 64,6 54,8 77,3
FINANCIAL RATIOS
Including non-controlling interests' share
Return on equity 10% 12% 14% 16% 16%
Equity ratio 53% 56% 60% 60% 63%
Return on capital employed (ROCE) 8% 10% 13% 13% 16%
NIBD/EBITDA factor 0,5 0,0 -0,4 -0,7 -0,7
Number of employees at 31 December 2.969 2.951 3.042 3.046 3.005
Number of employees in Denmark 727 702 770 783 758
The financial ratios have been calculated in accordance with the definitions below:
Management’s review
5
The Aalborg Portland Holding Group continued its positive developments during 2023 despite increasing uncertainty in a
macroeconomic scenario resulting from growing geopolitical tensions and increasingly restrictive monetary conditions.
The Group demonstrated significant resilience, setting new records thanks to an ever more diversified geographical and
product mix. With the exception of Türkiye and China, the general weakness in volumes was offset by operational effi-
ciency improvements.
The Group is committed to achieving carbon neutrality by 2050, defining sustainability objectives consistent with those of
the United Nations to promote the circular economy, reduce the impact on the environment, give value to people and com-
munities, and promote health and safety in the workplace.
In the three-year period 2024-2026, the Group expects to invest approximately EUR 100 million in sustainability projects
including for preliminary studies for CCS in Denmark and Belgium; a kiln upgrade at the Belgian plant to increase the use
of alternative fuels from currently 40% to more than 70%; the transition to natural gas at some of the Group's plants; the
preparation of structures necessary for the production of FUTURECEM
®
in Denmark, increased use of alternative fuels in
Türkiye and other projects to reduce the climate impact of transport, procurement, logistics and optimising the usage of
water resources in the production process.
The Aalborg Portland Holding Group recorded highly satisfactory earnings for 2023 that were significantly above the full-year guid-
ance. The Group had guided for consolidated revenue of more than EUR 1.8bn and for EBITDA of from EUR 330m to 340m. Actual
revenue amounted to EUR 1,695m and EBITDA was EUR 423m, mainly due to strong performances in Türkiye, Belgium and the
Nordic & Baltic regions.
The Group’s earnings before depreciation and amortisation (EBITDA) were EUR 423m, 22% higher than in 2022 when EBITDA was
EUR 347m. The Group’s EBITDA ratio was 24.9%, up from 20.2% in 2022. Earnings were positively affected by a value adjustment
of EUR 8m relating to investment properties in Türkiye (2022: EUR 16m) and a EUR 7m gain from the sale of land in the Nordic &
Baltic region. Adjusted for this, EBITDA was EUR 417m, 23.9% higher than in 2022.
In the Nordic & Baltic region, the Group experienced a decline in activity related to the global macroeconomic situation,
which impacted all business areas, including the sale of cement, ready-mixed concrete and aggregates. Revenue was EUR
645m against EUR 736m in the previous year, corresponding to a decline of 12%. Regional earnings before depreciation
and amortisation (EBITDA) were EUR 181m, 9% up on 2022 when EBITDA was EUR 166m. The increase in 2023 was
positively impacted by a EUR 7m gain from the sale of land. Adjusted for this one-off, the increase compared to 2022 was
5%. Net earnings for cement were positively impacted by cost optimisation related to energy, fuels and raw materials. In the
business segment for ready-mixed concrete and aggregates in the three Nordic countries, the net result declined signifi-
cantly year on year, mainly as a result of the macroeconomic situation which caused a decline in the construction sector.
The Belgian cement group Compagnie des Ciments Belges (CCB) contributed revenue of EUR 360m in 2023, against EUR
334m in the previous year for an increase of 8%. EBITDA was EUR 98m, up by 28% from EUR 76m in 2022. The improve-
ments in the Belgian and French markets were the result of cost optimisation for major input factors combined with price
management. Volumes sold in 2023 declined compared to 2022 within all business segments.
In Türkiye, the Cimentas Group reported strong developments in all business areas, particularly due to the increased de-
mand for cement resulting from the two major earthquakes that hit Türkiye in 2023. Türkiye remains a high inflation econ-
omy, which had a significant impact on the financial performance for the year. However cost increases on major input fac-
tors were off-set by the positive impact of price management. Revenue was EUR 329m against EUR 275m the previous
year, an increase of 21%. EBITDA was EUR 63m against EUR 31m the previous year. The increase was related to the
positive market developments, but adversely impacted by value adjustments relating to investment properties in Türkiye,
which amounted to EUR 8m in 2023 against EUR 16m in the previous year.
In the USA, the Group maintained its position as market leader in white cement through its ownership interest in Lehigh
White Cement Company (LWCC). Volumes sold in 2023 declined by 14% compared to 2022 due to macroeconomic devel-
opments during the year. Revenue in 2023 was EUR 183m against EUR 196m the previous year, while EBITDA was EUR
26m against EUR 29m in 2022.
In Egypt, revenue declined by 12% in 2023 to EUR 50m, while EBITDA was EUR 13m against EUR 12m in 2022. Cost opti-
misation and price management offset part of the decline in revenue.
Asia Pacific delivered revenue from white cement of EUR 121m against EUR 125m in the previous year. EBITDA was EUR
27m against EUR 23m in 2022.
The Group’s earnings before interest and tax (EBIT) were EUR 291m, up by 33% from EUR 218m in 2022.
Management’s review
6
Net financial income amounted to EUR 14m in 2023 against an income of EUR 35m the previous year. The change was mainly re-
lated to exchange rate adjustments.
Profit before tax was EUR 305m compared with EUR 253m in 2022, for an increase of 21%.
Group investments amounted to approximately EUR 152m (2022: EUR 123m), of which approximately EUR 48m (2022: EUR 26m)
was due to the application of IFRS 16.
Solid balance sheet and strong cash flows from operations
A healthy economy and strong financial base provide opportunities for long-term value-adding and sustainable investments.
In 2023, a constant focus on high operating efficiency and management of working capital led to positive cash flows from operations
(CFFO) of EUR 321m against EUR 294m the previous year.
The cash flows funded the year’s investments of EUR 113m (2022: EUR 101m), which were predominantly for operating efficiency
improvements, including not least a number of energy-efficiency and environmental projects. The Group had a free cash flow of EUR
208m (2022: EUR 194m).
At 31 December 2023, the Group had net interest-bearing assets of EUR 308m against net interest-bearing assets of EUR 228m the
previous year, an increase of EUR 80m in 2023.
Shareholders’ equity was EUR 1,480m at 31 December 2023. The equity ratio was thus 63%, an increase of 3% compared to the
previous year. The return on equity was 16% in 2023 same level in as the previous year. The return on capital employed (ROCE)
was 16%, an increase of 3% compared to the previous year.
2024-2026 Industrial Plan update
The Board of Directors approved the Group’s Industrial Plan update for the three-year period 2024-2026 and the 2024 budget. Fol-
lowing on from the previous plan and in accordance with the Group's sustainable growth strategy, the new Industrial Plan is based
on five strategic priorities:
Sustainability
The Group is committed to achieving carbon neutrality by 2050, defining sustainability objectives consistent with those of the United
Nations to promote the circular economy, reduce the impact on the environment, give value to people and communities, and 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 the objective of reducing 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, has been confirmed. 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 the clinker content in cement, greater use of less polluting or
alternative fuels, the optimisation of thermal efficiency. The 2030 Plan assumes the implementation of carbon capture and storage
(CCS) technology both in Denmark, where the Group has started a second pilot project financed in part by the Danish Innovation
Fund, and in Belgium.
In the three-year period 2024-2026, the Group expects to invest approximately EUR 100 million in sustainability projects including:
preliminary studies for CCS in Denmark and Belgium; a kiln upgrade at the Belgian plant to increase the use of alternative fuels from
currently 40% to more than 70%; the transition to natural gas at some of the Group's plants; the preparation of structures necessary
for the production of FUTURECEM
®
in Denmark, an increase in the use of alternative fuels in Türkiye and other projects to reduce
the climate impact of transport, procurement, logistics and for optimising the usage of water resources in the production process.
Innovation
The Group will continue to increase the production of new low carbon cements and other sustainable and high added value products
such as FUTURECEM
®
, which allows for a reduction of the clinker content in cement and thereby reducing CO
2
emissions by ap-
proximately 30%. In addition to the aforementioned pilot projects for Carbon Capture, Usage and Storage, with the participation of
leading industrial and technology partners, other initiatives include the adoption of artificial intelligence solutions in the production,
commercial and supply chain sectors.
Management’s review
7
Improve competitive strength
The Group will continue to implement a series of actions to further improve the profitability and operational efficiency of manufactur-
ing and logistics processes, with process digitisation initiatives, preventive and predictive intelligent maintenance, advanced produc-
tion control systems, intelligent logistics, warehouse management and integrated digital sales planning.
Growth and positioning
The Group will continue to invest to strengthen vertical integration and its competitive position in the Nordic & Baltic, Belgium and
Türkiye regions, as well as consolidating its global leadership in white cement with targeted actions in strategic markets. The Group
will also be ready to seize potential external growth opportunities in the core business.
Valuing people
The Group's objective will be to further promote the culture of health and safety, further improving the results achieved through the
initiatives envisaged by the Zero Accidents program. It also intends to promote diversity and inclusion, the development of human
capital and the valorisation of skills and evaluation and remuneration policies to improve individual performance and that of the entire
organisation.
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
Nordic & Baltic
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 68 ready-mixed concrete facilities in the Nordic countries and eight raw material quarries (aggregates) in Denmark and
Sweden. The Nordic & Baltic region accounts for 42% of the Group’s total revenue.
The financial year 2023 was strongly affected by macroeconomic challenges and uncertainties, resulting in elevated interest rates
and high industrial inflation. This has resulted in a historic slowdown of the building and construction sector across all markets of the
Nordic & Baltic region.
Despite these challenging market conditions, the region managed to deliver strong financial results.
Revenue decreased by 11% due to a significant decline in volumes sold. Despite the reduction in activity levels within all business
areas compared to 2022, earnings improved by 6% due to price management combined with cost optimisation related to energy,
fuels and raw materials.
The sale of white cement in the subsidiaries in France, Belgium and Poland were also challenged by declining activity due to the
macroeconomic situation. However, all units managed to retain their market positions for sales of Aalborg-manufactured white ce-
ment and improved profitability due to price management and optimisation of logistics costs.
In the ready-mixed concrete segment, the Group retained its market position in the Nordic region and the facilities are continuously
being upgraded. Despite the challenging market conditions throughout 2023, the Group managed to navigate the challenges of the
year and to deliver satisfactory results. The Group retained its market share compared to 2022. Cost reductions were initiated in
2022 as well as 2023 and the business model was made more scalable to be ready to adapt to fluctuations in the market. Sustaina-
bility initiatives remain a focus area, and the Group is supporting reduced CO
2
emissions from the construction industry by introduc-
ing new products with up to 50% fewer emissions than conventional concrete. Furthermore, the transition to a greener fleet contin-
ues, and in 2023 the Group introduced the world’s first electric tractor and concrete semitrailer combination.
Belgium & France
Compagnie des Ciments Belges SA (CCB) is located in south-west Belgium. CCB’s cement factory in Gaurain is the largest in the
region and its quarry has approved reserves for more than 80 years’ production. The company has a significant market share in Bel-
gium and substantial exports to both France and the Netherlands. CCB is not only active in cement but has a considerable aggre-
gates business with two major quarries and a network of 14 ready-mix concrete plants in Belgium and northern France.
The region accounts for 21% of the Group's total revenue. Despite the challenging market conditions which resulted in a decline in
volumes sold, the company reported a strong financial performance, improving both revenue and EBITDA – revenue by 8% and
EBITDA by 28% compared to 2022.
Management’s review
8
CCB successfully retained its strong market position backed by the quality of its products and services. A strong financial perfor-
mance is essential in order for the company to finance the substantial investments linked to its ambitious sustainability programme,
which includes the introduction of new products and investing in kilns in order to reduce the consumption of fossil fuels and conse-
quently CO
2
emissions. The company has taken the first steps in the construction of a wind farm, which when completed will gener-
ate 30% of the electricity needed.
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 eastern Türkiye. Cimentas has a combined annual capacity of 5.4m
tonnes. The revenue generated in this region accounts for 19% of the Group's total revenue.
In 2023, the sale of grey cement and clinker amounted to 4.4m tonnes, for a 16% year-on-year increase. The year was significantly
impacted by the two major earthquakes in Türkiye, which resulted in a higher sales volume compared to the previous year.
Türkiye has experienced high inflation during the past year and the financial performance of Cimentas was also affected by high
inflation. Despite such an inflationary macroeconomic environment and high costs associated with raw materials, energy, and logis-
tics, Cimentas managed to increase its EBITDA by 108% year on year.
In addition to cement production, Cimentas has 21 concrete factories, and sales of ready-mixed concrete amounted to 1.8m m
3
in
2023 compared to 1.7m m
3
in 2022. Cimentas also commenced operations with aggregates, increasing sales by 0.2m tonnes to
1.9m tonnes 2023 and strengthening its vertically integrated position comprising cement, ready-mixed concrete and aggregates.
Furthermore, the company has waste management and renewable energy operations in Türkiye. These operations should be seen
in the context of the steadily growing use of alternative fuels in the production of cement and hence its sustainability initiatives. The
waste management activities in the UK were divested during the final quarter of the year.
Cimentas continuously works on its sustainability targets and plans to invest in solar power plants, RDF plants, and Waste Heat Re-
covery systems at its cement factories. These investments will reduce its carbon footprint and improve its competitiveness.
The consumption of cement rose substantially following the earthquakes in 2023. From a regional perspective, residential units in the
areas affected are being rebuilt quickly, particularly in the Mediterranean and Eastern Anatolia regions. The earthquakes raised cru-
cial awareness regarding the importance of designing earthquake-resistant buildings, which is expected to have a positive impact on
sales volumes in all regions in 2024.
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 produc-
tion facilities in Denmark, the USA, Malaysia, China and Egypt, the Group has a total annual capacity of approx. 3.3m tonnes.
Sales of white cement (excluding intercompany supplies) account for 25% of the Group’s total sales of cement. Sales of white ce-
ment were down 5% from 2022, mainly due to the slowdown in Nordic & Baltic (-22%) and North America (-14%), but partially offset
by an increase in Asia Pacific (+18%).
In North America, the Group produces white cement in Pennsylvania and Texas, imports cement products from its other units and
distributes products throughout North America. The Group is the market leader in white cement with annual sales of 0.6m tonnes.
The decline in sales of white cement had a negative impact on EBITDA, which decreased by 9%.
The Group’s factory in Egypt is the world's largest production plant for white cement. Volumes sold during 2023 were at the same
level as in 2022, while EBITDA increased by 6%, mainly due to price management which more than absorbed inflationary price in-
creases in raw materials, fuels, etc.
In 2023, Asia Pacific, which has Asia's largest plant for production of white cement, reported an 18% increase in sales, while earn-
ings increased by 19%.
The Group’s trading company in Spartan Hive further developed its strong position as a trading partner of raw materials and fuels for
companies within the Group as well as external customers and reported a 6% earnings increase over 2022.
Reporting in accordance with Danish accounting legislation
Regarding the mandatory statement on corporate social responsibility, cf. section 99(a) of the Danish Financial Statements Act, ref-
erence is made to “Sustainability Report 2023” published by the Group's owners Cementir Holding N.V., Netherlands. The statement
is available at https://www.cementirholding.com/en/sustainability/sustainability-report-and-documents.
Managem
ent’s review
9
I
n 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 continues to apply its policy on gender
equality in recruitment and promotions in that the key consideration when filling any position in the organisation remains to identify
the best qualified person for that position.
The sector in which the Group operates is historically characterised by a predominantly male workforce. 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 pursuance of our policy on gender equality and the achieve-
ment of our gender distribution targets in the Danish subsidiaries.
2
023
Senior Management
Total members 7
Underrepresented gender in % 14,3
Target in per cent 28,5
Target year 2026
Broadening the scope from parent company to Group level, the figures for Other Management Levels reveal a higher number of fe-
male employees, amounting to 17 %, which in terms of diversity is considered a step in the right direction.
In accordance with the Danish rules for large companies with operations relating to i.a. the 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 applying to large companies, cf. section 99(d) of the Danish Financial Statements Act, Aalborg
Portland Holding has issued a 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. the use of new technologies and
responsible use of data, including personal data protection (GDPR). Data Ethics is an integral part of the compliance programme of
Aalborg Portland Holding and Group Management has the overall responsibility for compliance with the Policy on Data Ethics. Imple-
mentation of the data ethics policy at the operational level is anchored in Group IT. In 2023, Aalborg Portland Holding continued the
work on data ethics issues in accordance with the policy. The policy is reviewed on a yearly basis and no changes were made in
2023. The policy is available at https://aalborgportlandholding.com/en/data-ethics.
Subsequent events after the reporting date
On 8 February 2024, the Parent Company’s Board of Directors approved the update of the 2024-2026 Industrial Plan, see the press
release at www.cementirholding.com in the Investors, Press Releases section.
The Group’s new Industrial Plan envisages the achievement of the following targets by 2026, excluding the impact of IAS 29 and non-
recurring items:
Management’s review
10
Revenue of up to approximately EUR 2 billion, with a compounded annual growth rate (CAGR) of 5-6%. Over the period of
the Plan, a moderate increase is expected in sales volumes of cement, ready mixed concrete and aggregates, with more market
growth in 2024 in all geographical areas with the exception of China, which is expected to remain stable over the three-year
period. Prices are expected to be stable or slightly higher on average.
EBITDA of approximately EUR 425 million, with a compounded annual growth rate (CAGR) of 1.2%. A non-homogeneous
trend is expected in the different geographical areas and, in particular, normalisation of Turkey's contribution. Among the Plan's
assumptions, we highlight: capacity optimisation with the restart of the second kiln in Egypt and the upgrade of kiln 4 in Belgium;
the increase in fuel and electricity costs, and an average yearly CO
2
shortage of approximately 250,000 tonnes which includes a
step up in 2026 due to the reduction in the free allocation of emission allowances at the European plants. The EBITDA margin
will stand at a lower level than that recorded in 2022-2023.
Average annual investments of approximately EUR 80 million for the development of production capacity, maintenance of
plant efficiency, health and safety and digitalisation.
Additional cumulative investments in sustainability of EUR 100 million for projects enabling a reduction of CO
2
emissions
in line with the Group’s objectives.
Net cash position of around EUR 600 million by year-end 2026, resulting from cash generation of over EUR 500 million before
dividend distribution.
Finally, the Plan assumes the distribution of an increased dividend, corresponding to a payout ratio of 20% to 25%.
In February 2024, CDP reaffirmed its A– rating of Cementir Holding’s commitment to climate change for the third straight year, which
is a ranking above the European average (B) and the cement & concrete sector average (B). CDP also reaffirmed its A– rating of
Cementir’s commitment to CDP Water Security for the second straight year, which is a ranking above the sector (B) and European
average (C).
No other significant events have occurred since the end of the financial year.
Expectations for 2024
The macroeconomic scenario continues to be characterised by strong uncertainty, with risks of economic downturns linked to geopo-
litical tensions and still restrictive financial conditions.
For the year 2024, the Group expects to achieve consolidated revenue of approximately EUR 1.8 billion, EBITDA of approximately
EUR 385 million and a net cash position of around EUR 300 million by the end of the period.
Planned investments amount to approximately EUR 135 million (EUR 104.2 million in 2023), of which around EUR 48 million for
sustainability projects. Research and development expenses are expected to remain stable compared to 2023, as is the average
number of employees. The Group does not envisage the need for new external financing, given the cash generation and the net cash
position expected by year end.
These forward-looking indications do not include: i) the impacts of the application of IAS 29; ii) any non-recurring items; iii) the impact
of a potential worsening of the geopolitical situation or other extraordinary events.
The foregoing solely reflects the views of the company's management, and does not constitute a guarantee, promise, operational
suggestion or even investment advice. Therefore, it should not be taken as a forecast of future market trends or of any financial in-
struments concerned.
Financial review
11
Profit and loss
The Group’s volume sales of cement amounted to 10.7m tonnes in 2023, which was 2% below the volume in 2022. Sales included
2.7m tonnes of white cement, a reduction of 5%, which spans moderate growth in Asia Pacific, flat developments in Egypt and de-
creases in Nordic & Baltic and North America. Sales of grey cement amounted to 8.0m tonnes, at the same level as in the previous
year. Sales increased in Türkiye while the Nordic & Baltic region and Belgium & France both saw declining sales.
Sales volumes of ready-mixed concrete amounted to 4.3m m
3
in 2023, down 11% from the previous year. Sales increased in Türkiye
(7%) while decreases were reported in Nordic & Baltic (26%) and Belgium & France (10%).
Sales of aggregates (mainly granite and gravel) amounted to 9.4m tonnes against 10.5m tonnes in the previous year, for a decrease
of 10%. Sales increased in Türkiye (11%) while we saw declines in the Nordic & Baltic region (17%) and in Belgium & France (13%).
The Group's revenue in 2023 amounted to EUR 1,694.5m against EUR 1,723.3m for the previous year, for a 2% increase. The de-
velopment was comprised of increases in Türkiye (8%) and Asia Pacific (9%), a stable performance in Egypt and declining revenues
in Nordic & Baltic (11%), Belgium & France (8%) and North America (14%).
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 2022: Nordic & Baltic EUR +17.4m, Türkiye EUR +10.7m (incl. non-recurring
income, see 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 affected by non-recurring income
of EUR 16.3m relating to a value adjustment of investment property in Türkiye. Adjusted for this, the Group’s EBITDA amounted to
EUR 331.0m, for an 8% increase over 2022 when the EBITDA was EUR 306.1m.
The operating ratio (EBITDA ratio) increased by 4.7 percentage points from 20.2% in 2022 to 24.9% in 2023. Adjusted for the non-
recurring income mentioned, the EBITDA ratio was up by 5 percentage points to 24.2%.
Earnings before interest and tax (EBIT) increased by EUR 72.7m to EUR 290.5m (2022: EUR 217.8m).
Net financial income amounted to EUR 14.0m in 2023 against EUR 34.6m in the previous year.
Earnings before tax were EUR 305.3m against EUR 253.3m in 2022. Tax on profit for the year amounted to EUR 74.2m against
EUR 57.0m in the previous year.
This net profit for the year was EUR 231.1m against EUR 196.3m in 2022.
Cash flows
The Group constantly focuses on optimising both cash flows and working capital.
Cash flow from operations (CFFO) amounted to EUR 319.9m for 2023, against EUR 294.4 m in 2022.
The Group’s capital expenditure on property, plant and equipment amounted to EUR 114.0m, which is predominantly related to im-
provements in operating efficiency and various energy-efficiency and environmental projects.
The free cash flow after investing activities (FCF) amounted to EUR 220.3m in 2023, against EUR 193.5m in the previous year.
The dividend paid to Cementir Holding amounted to EUR 90.3m (2022: EUR 70.1m).
Financial position and liquidity
The Group had net interest-bearing assets of EUR 307.6m at year-end 2023 against net-interest bearing assets of EUR 228.1m the
previous year.
Long-term financing comprised mortgage-credit loans of EUR 120.7m (2022: EUR 134.9m).
The Group’s liquidity reserve consists of Cementir Holding's unrestricted cash and undrawn credit facilities. In addition, the Aalborg
Portland Holding Group has a separate uncommitted credit facility.
Financial review
12
Balance sheet
Non-current assets amounted to EUR 1,383.1m at 31 December 2023 (2022: EUR 1.386,4m).
Current assets amounted to EUR 974.1m, 7% more than at 31 December 2022 (EUR 915.9m). The increase was due to cash funds
rising by EUR 69.2m and inventories and receivables decreasing by EUR 11.0m.
The Group’s working capital (trade receivables and inventories less trade payables) amounted to EUR 77.3m at end-2023 against
EUR 54.8m at end-2022, an increase of EUR 22.5m or 41%.
Shareholders’ equity
Total shareholders’ equity amounted to EUR 1,480.1m at 31 December 2023, against EUR 1,392.3m at 31 December 2022. Share-
holders’ equity was negatively affected by exchange rate adjustments of approx. EUR 49.8m in foreign entities. These adjustments
primarily related to the Turkish lira (TRY) and the Egyptian Pound (EGP).
The equity ratio was 63% at 31 December 2023 (60% at the end of 2022). Return on equity was 16% in 2023, unchanged from 16%
in the previous year.
Return on capital employed
In 2023, 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 positively influenced
both by the increased earnings and the reduction in capital employed. ROCE was 15.5% in 2023 against 12.9% in 2022.
Risks and uncertainties
13
Internal Control and Risk Management System
Aalborg Portland Holding Group is integrated with the Cementir Group's Internal Control and Risk Management System, defined as
the set of tools, organisational structure, procedures and company rules to guarantee, through an adequate process of identification,
measurement, management and monitoring of the main risks, correct and consistent business management with objectives set in
terms of:
compliance with laws and regulations;
safeguarding of corporate assets;
operating activity effectiveness and efficiency;
reporting accuracy and completeness.
The Internal Control and Risk Management System adopts a "top-down" and "risk-based" approach that starts from the definition of
the Cementir Group's Industrial Plan. It ensures that the main risks are identified, assessed and monitored taking into account each
business unit, to create a fully integrated risk management process. Risks are assessed with quantitative and qualitative tools con-
sidering both the probability of occurrence and the impacts that would be generated in a given time horizon if the risk were to occur.
It also ensures that all necessary measures are taken to control risks that could threaten the Group's assets, its ability to generate
profits or achieve its objectives.
Roles and responsibilities in risk management have been defined starting from the Company's Board of Directors, which defines
strategy, policy and risk appetite, supported by the Audit Committee and the Sustainability Committee. In addition, management
teams from the Group companies are involved, with responsibility for risk management within their area of expertise.
Below is a summary of the people and bodies involved and their responsibilities:
The Board of Directors plays the central role, defining the Group's risk appetite, the nature and level of risk. In addition, it
carries out an assessment of the risks related to climate change ensuring the constant compatibility of management and
strategic objectives.
The Audit Committee and the Sustainability Committee (corporate bodies relevant in the risk definition process) support
the Board of Directors, subject to a favourable opinion, in the definition and management of risks;
CEO & Chairman: implements the general guidelines of the Board of Directors, ensuring the identification, management
and monitoring of the main risks;
Risk owners, or the first level of control, are primarily responsible for internal control and risk management activities;
Finally, Risk Management and Internal Audit are the main responsible for the internal control and risk management sys-
tem (second and third level of control). They are responsible for verifying that the Internal Control and Risk Management
System is functioning and adequate with respect to the size and operations of the Group, verifying, in particular, that the
Management has identified the main risks, that they have been evaluated in a consistent manner and that the appropriate
mitigation actions have been defined and implemented.
The Cementir Group's Internal Control and Risk Management System is integrated into the Group's organisational, administrative,
accounting and governance structure and has been prepared on the basis of the principles laid down by the Enterprise Risk Man-
agement - Integrated Framework, an international standard developed by the Committee of Sponsoring Organizations of the Tread-
way Commission (COSO Report), also ensuring greater detail in the identification of the risks of the companies and Group and inte-
gration with the results of the Audit activities. The methodology followed involves an iterative process consisting of the following
steps:
Risk identification: the process starts with the definition of the Industrial Plan and focuses on the main risks that could com-
promise the achievement of the Group's objectives;
Risk assessment: for each identified risk, management gives an inherent risk assessment (in the absence of controls/miti-
gation actions), in terms of probability and impact during the horizon of the Industrial Plan, using a 5-level assessment sys-
tem (scoring):
o Impact: scale from 1 (Negligible) to 5 (Extreme);
o Probability: scale from 1 (Rare) to 5 (More than Likely)
Risks and uncertainties
14
With regard to impact, three parameters are considered: economic (quantitative), operational (qualitative), reputational
(qualitative). Management at Region and Group level assesses the potential impacts and likelihood of major risks that could
have a material adverse effect on the company's current or future operations. For sustainability and climate-related risks,
the time horizon was extended to a long-term view for the analysis of the various threats that could jeopardise the success
of the “10-year Roadmap to Sustainability”. For more details, see the 2023 Non-Financial Statement;
Identification and assessment of the adequacy of the existing principals: for each identified risk, all the controls/actions cur-
rently in place for risk mitigation are identified with the management;
Residual Risk Assessment: taking into account the individual controls for each risk and the relative adequacy, the residual
risk is calculated by applying a uniform calculation methodology to all Group companies;
Identification of further actions: in the event that the residual risk is higher than the predefined level of risk appetite, further
actions are agreed with management to mitigate the risk and contain it within acceptable levels. The initiatives are taken
promptly and within budget limits, to effectively contribute to risk mitigation;
Risk mitigation: mitigation strategies are defined with specific action plans for key risks;
Reporting: reports are prepared at the company and Group level, showing the main risks and initiatives taken by manage-
ment to reduce the risks to acceptable levels;
Monitoring: the following are reviewed periodically: existing risk assessments, assessment parameters, and new risks can
be identified if necessary.
The model, as described, subject to further and future updates, aims to provide support for the decision-making and operational pro-
cesses of the company management, so as to reduce the possibility that specific events could compromise the Group's ordinary
operations or the achievement of its strategic objectives.
To this end, the risk appetite level adopted in relation to strategic risks is consistent with the vision of creating value, while always
respecting the environment and promoting integration with local communities. In relation to operational risks, the risk appetite level is
defined on the basis of the effectiveness and efficiency targets set by the management.
Provisions for compliance and financial reporting are different. The Group does not accept an assumption of non-compliance risk for
laws and regulations (including those relating to safety), and of possible alterations to the integrity of financial reporting.
The Cementir Group's Internal Control and Risk Management System is integrated with the Group's Sustainability Strategy. Starting
from 2021 the Cementir Group launched a project to implement the recommendations of the TCFD (Task Force on Climate-Related
Financial Disclosure) committing to be transparent on risks and opportunities related to climate change. The identification, assess-
ment and effective management of risks and opportunities related to climate change are fully integrated into the Group's risk man-
agement process. To promote and improve its climate change disclosure, in 2022, the Group engaged Standard & Poor's (S&P) to
assess physical and transitional climate risks and develop scenario analyses to support the implementation of the TCFD guidelines.
The analysis carried out by S&P showed that the Cementir Group scored 100% on the overall assessment of the eleven recommen-
dations of the TCFD, which represents a complete and transparent level of disclosure achieved. Furthermore, the Group is integrat-
ing the guidelines published by the European Union “EU Taxonomy Regulation”, which together with the TCFD constitute the refer-
ence frameworks. For more details, see the paragraph "Main risks to which the group is exposed".
In relation to accounting and financial reporting, the existing Internal Control System ensures its accuracy and completeness through
constantly updated administrative and accounting procedures.
Furthermore, as part of the compliance activities with the COSO structure, during the year, the Internal Audit function carries out
audit activities on the aforementioned procedures to ascertain that the provided key controls are being correctly applied by the in-
volved company structures. The assessment of the internal control system on financial reporting provided for by Cementir Group
procedures was carried out based on this activity.
On the basis of the activity carried out by the Internal Audit department and the related results, the Audit Committee assessed the
Internal Control and Risk Management System as adequate, effective and appropriate for dealing with business, operational, envi-
ronmental, financial and compliance risks.
Starting from October 2023, the Group has launched the strategic initiative for the digitalization of Risk Management aims to en-
hance organizational resilience by leveraging advanced technology solutions, streamlining data-driven risk assessments, and imple-
menting real-time monitoring capabilities, fostering a proactive and agile approach to risk mitigation across all business functions.
Risks and uncertainties
15
The digitalization of Risk Management will commence with the updating of the model during 2024, ensuring our risk management
practices are at the forefront of industry standards.
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 Estimation on uncertainties and judgements
31 Accounting policies
16
Consolidated income statement
EUR '000
2023 2022
Notes
1 Revenue 1,695,044 1,723,258
2+3+4 Cost of sales 1,051,199 1,100,504
Gross profit 643,845 622,754
4+17 Sales and distribution costs 271,950 328,603
4+5 Administrative expenses 103,764 102,394
6 Other operating income 29,866 28,073
6 Other operating costs 7,482 2,084
Earnings before interest and tax (EBIT) 290,515 217,746
14 Share of profit after tax, joint ventures 772 972
7 Financial income 70,783 83,211
7 Financial expenses 56,780 48,626
Earnings before tax (EBT) 305,290 253,303
8 Tax on profit for the year 74,169 57,011
Profit for the year 231,121 196,292
Attributable to:
Non-controlling interests 12,791 21,077
Shareholders in Aalborg Portland Holding A/S 218,330 175,215
17
Consolidated statement of comprehensive income
EUR '000
2023 2022
Notes
Profit for the year 231,121 196,292
Other comprehensive income
Items that cannot be reclassified to the income statement:
18+19 Actuarial gains/losses on defined benefit pension schemes 1,301 5,146
8 Tax 0 4
Items that can be reclassified to the income statement:
Exchange rate adjustments on translation of foreign entities -40,930 15,561
Changes in fair value of financial instruments -812 5,501
8 Tax -352 -560
-42,094 20,502
Other comprehensive income after tax -40,793 25,652
Total comprehensive income 190,328 221,944
Attributable to:
Non-controlling interests -6,659 33,413
Shareholders in Aalborg Portland Holding A/S 196,987 188,531
18
Consolidated Cash flow statement
EUR '000
2023 2022
Notes
Profit for the period 231,121 196,292
Effect of hyperinflation 21,009 13,251
Reversal of amortisation and depreciation 118,947 113,658
Reversal of revaluation / impairment losses -9,556 -15,499
Share of net profits of equity-accounted investees -772 -972
Net financial income / expense -17,942 -14,185
Gains/losses on disposals -13,974 -3,311
Income taxes 77,625 52,479
Change in employee benefits -1,655 -596
Change in provisions (current and non-current) -1,191 4,657
Operating cash flows before changes in working capital 403,612 345,774
Increase / decrease inventories -25,018 -37,406
Increase / decrease trade receivables 2,855 -36,407
Increase / decrease trade payables -10,438 80,139
Change in non-current/current other assets/liabilities 14,353 14,958
Change in current and deferred taxes -3,169 -8,203
Operating cash flows 382,195 358,855
Dividends received 114 194
Interests received 14,125 2,813
Interests paid -11,986 -9,861
Other financial income collected/financial expenses paid -3,251 -8,568
Income taxes paid -61,280 -49,008
Cash flow from operating activities 319,917 294,425
Investments in intangible assets -10,680 -14,641
Investments in property, plant and equipment and investment property -103,365 -90,428
10 Acquisitions in businesses -5,908 -2
Proceeds from sale of intangible assets 571 184
Proceeds from sale of property, plant and equipment 17,935 6,332
Proceeds from sale of equity investments and other non-current securities 1,803 0
Other variances investment assets 0 -2,370
Cash from investing activities -99,644 -100,925
21 Proceeds from loans and borrowings 14,544 61,287
21 Repayment of borrowings -21,049 -24,560
21 Payment of leases -27,544 -26,468
Change in current financial assets -4,434 -105,619
Dividend distributed -93,334 -73,033
Transactions with non-controlling interests -2,159 -571
13 Other variances of equity 0 -1,142
Cash flow from financing activities -133,976 -170,106
Net change in cash and cash equivalent 86,297 23,394
Cash and cash equivalent exchange rate effect -17,106 -114
Cash and cash equivalent opening balance 301,833 278,553
Cash and cash equivalent closing 371,024 301,833
19
Consolidated balance sheet
EUR '000
ASSETS 2023 2022
Notes
Goodwill 187,634 190,060
Other intangible assets 183,952 201,760
Intangible assets in development 1,565 1,004
9 Intangible assets 373,151 392,824
Land and buildings 363,441 370,688
Plant and machinery 366,463 396,617
Property, plant and equipment in development 95,150 56,283
Right-of-use assets 80,385 70,945
11 Property, plant and equipment 905,439 894,533
12 Investment properties 70,316 68,957
13+14 Investments in joint ventures 6,529 5,559
13 Other non-current assets 1,020 3,251
13+15 Deferred tax assets 26,679 21,252
Other non-current assets 34,228 30,062
Total non-current assets 1,383,134 1,386,376
16 Inventories 230,762 218,610
17 Trade receivables 163,121 193,982
Amounts owed by Group enterprises 3 0
Amounts owed by related enterprises 141,567 133,435
Derivative financial instruments (positive fair value) 4,766 9,960
Income tax receivable 3,724 3,057
17 Other receivables 52,779 51,087
17 Prepayments 6,367 3,970
Receivables 372,327 395,491
Cash and cash equivalents 371,024 301,833
Total current assets 974,113 915,934
TOTAL ASSETS 2,357,247 2,302,310
20
Consolidated balance sheet
EUR '000
EQUITY AND LIABILITIE
S
2023 2022
Notes
Shareholder's equity
Share capital 40,333 40,333
Foreign currency translation reserve -326,687 -305,196
Hedge reserve 8,989 9,820
Retained earnings 1,590,856 1,458,375
Aalborg Portland Holding A/S' share of shareholders' equity 1,313,491 1,203,332
Non-controlling interests' share of shareholders' equity 166,595 188,963
Total shareholders' equity 1,480,086 1,392,295
Liabilities
18 Pensions and similar liabilities 20,203 24,080
15 Deferred tax liabilities 158,691 157,792
19 Provisions 25,115 32,382
20+21+24 Credit institutions, etc. 160,831 164,859
Derivative financial instruments (negative fair value) 0 13,455
22 Deferred income 11 884
Non-current liabilities 364,851 393,452
20+21+24 Credit institutions, etc. 40,649 52,240
Trade payables 318,171 356,467
Amounts owed to Group enterprises 36,937 25,032
Derivative financial instruments (negative fair value) 10,208 504
Income tax payable 18,176 6,671
19 Provisions 3,809 4,054
Joint taxation contribution payables 11,335 7,837
23 Other payables 72,157 62,423
22 Deferred income 868 1,335
Current liabilities 512,310 516,563
Total liabilities 877,161 910,015
TOTAL EQUITY AND LIABILITIES 2,357,247 2,302,310
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 2023
-305,196
Shareholders' equity at 1 January 2023
-305,196
Comprehensive income in 2023
Profit for the year
Other comprehensive income
Exchange rate adjustments in translation of
foreign entities and hyperinflation
-21,491
-21,491
-19,439
-40,930
Changes in fair value of financial
instruments
-804
-804
-8
-812
Actuarial gains/losses on defined benefit
pension schemes
-15
Tax on other comprehensive income
-27
-337
-364
-352
Total comprehensive income
-21,491
-831
-6,659
Transactions with owners
Dividend distributed
-90,349
-90,349
-3,624
-93,973
Transactions with non-controlling interests
-12,085
-8,564
Total comprehensive income
-86,828
-86,828
-15,709
-102,537
Shareholders' equity at 31 December
2023
-326,687
Foreign
Aalborg
Non-
currency
Portland
controlling
translation
Hedge
Retained
Holding A/S'
interests'
Share capital
reserve
reserve
earnings
total share
total share
Total equity
Shareholders' equity at 1 January 2022
-422,070
Effect of hyperinflation on opening
Shareholders' equity at 1 January 2022
-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
Actuarial gains/losses on defined benefit
Tax on other comprehensive income
-1,102
-674
-556
Total comprehensive income
Dividend distributed
-70,110
-70,110
-2,923
-73,033
Non-controlling interests on acquisition of
subsidiary
Transactions with non-controlling interests
-561
-561
-10
-571
Balance on intra-group acquisition of shares
in Spartan Hive and Aalborg Portland Digital
Total comprehensive income
-70,671
-70,671
-2,933
-73,604
Shareholders' equity at 31 December
-305,196
The share capital in 2023 and 2022 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 2023 were EUR 90.2m (2022: EUR 70.1m).
All shares are fully issued and paid up. One share of DKK 1,000 holds one vote.
22
Notes
EUR '000
1 Revenue 2023 2022
Split by product
Sale of grey cement 625,321 562,643
Sale of white cement 432,697 464,408
Sale of ready-mixed concrete 487,765 519,808
Other sales* 149,261 176,399
1,695,044 1,723,258
Split by geography
Europe Other 1,112,228 1,137,750
China/Malaysia 78,357 74,807
USA 191,817 205,656
Türkiye/Egypt 242,386 216,400
Other 70,256 88,645
1,695,044 1,723,258
2 Cost of sales
3 Research and development costs
Research and development costs paid 2,211 2,107
2,211 2,107
4 Staff costs
Wages and salaries and other remuneration 157,097 151,914
Pension costs, defined benefit scheme 4,717 3,070
Pension costs, defined contribution scheme 11,325 10,815
Social security costs 17,809 17,455
190,948 183,254
Number of employees at 31 December 3,005 3,046
Average number of full-time employees 3,057 3,076
Salaries and remunerations 6,124 5,857
Pension contributions 687 681
6,811 6,538
Hereof Board of Directors and Management 645 575
5 Fees to the auditors appointed by the Annual General Meeting
Total fees to Auditors are specified as follows:
Statutory audit 1,054 1,052
Other assurance engagements 0-1
Tax and VAT advisory services 238 112
Other services 910
1,301 1,173
Hereof fees to PwC 1,035 838
Fees to other auditors 266 335
Hereof 117 employees at 31 December 2023 and 120 average full-time employees are included in the pro rata consolidated
company.
Cost of sales amounts to EUR 1,051.2m (2022: EUR 1,100.5m). Hereof direct staff costs amount to EUR 108.5m (2022:
EUR 103.5m) and use of raw materials amounts to EUR 261.9m (2022: EUR 328.6m).
Remuneration of the Board of Directors represents EUR 75k in 2023 (2022: EUR 75k).
Remuneration of the Board of Directors, the Management and other
senior executives
23
Notes
EUR '000
6 Other operating income and other operating costs 2023 2022
Other operating income
Rent income 873 1,283
Profit on sale of property, plant and equipment 12,140 2,635
Value adjustment, investment property 7,670 16,331
Sale of scrap, spare parts and consumables 25 339
Other income 9,158 7,485
29,866 28,073
Other operating costs
Loss on sale of property, plant and equipment 805 434
Other costs 6,677 1,650
7,482 2,084
7 Financial income and expenses
Financial income
Interest, cash funds, etc. 11,455 2,833
Interest, Group enterprises 3,303 231
Financial income on derivatives 1,745 606
CO2 Financial income 27 0
Exchange rate adjustments 54,253 79,541
70,783 83,211
Interest on financial assets measured at amortised cost 14,758 3,064
Financial expenses
Interest, credit institutions, etc. 10,446 10,151
Interest, Group enterprises 1,841 444
Losses on derivatives 2,210 5,551
Ineffective part of hedge -1,469 579
Exchange rate adjustments 12,412 16,596
Other financial expenses 31,340 15,305
56,780 48,626
Interest on financial obligations measured at amortised cost 12,287 10,595
8 Income tax
Income tax
Current tax on the profit for the year/joint taxation contribution 79,129 50,012
Deferred tax adjustment -4,141 5,479
Other adjustments, including previous years -819 1,520
74,169 57,011
Taxes paid 61,280 49,008
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.
24
Notes
EUR '000
8 Income tax (continued) 2023 2022
Reconciliation of tax rate
Tax according to Danish tax rate 22.0% 67,145 55,727
Difference in the tax rates applied by non-Danish subsidiaries relative to 22.0% 6,198 1,212
Non-taxable income and non-deductible expenses 4,627 1,856
Non-taxable profit shares in joint ventures -167 -210
Expired tax loss regarding this and previous years -438 485
Other, including adjustments previous years -6,277 -1,849
Change of tax rates 3,081 -210
74,169 57,011
Applicable tax rate for the year 24% 23%
Income tax recognised directly as other comprehensive income 352 556
Total income tax 74,521 57,567
Payments to authorities
EURk Quarry * Taxes ** Royalty Licenses Total
Aalborg Portland A/S, Denmark 1,136 14,880 0 0 16,016
Unicon A/S, Denmark 59 3,688 0 0 3,747
Unicon AS, Norway 1 730 0 0 731
Kudsk & Dahl A/S, Denmark 203 38 0 0 241
AB Sydsten, Sweden 0 978 0 0 978
Cimentas AS, Türkiye 1,716 0 512 0 2,228
Compagnie des Ciments Belges S.A., Belgium 1,056 21,591 2,194 0 24,841
Compagnie des Ciments France S.A., France 0 6,193 0 0 6,193
A
alborg Portland Malaysia Sdn. Bhd., Malaysi
a
0 488 199 0 687
Sinai White Cement Company Co. S.A.E, Egy
p
0 2,610 191 0 2,801
Aalborg Portland (Anqing) Co. Ltd., China 89 3,555 0 0 3,644
4,260 54,751 3,096 0 62,107
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 2023:
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 2023, 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.
25
Notes
EUR '000
9 Intangible assets
Goodwill
Other
intangible
assets
Intangible
assets in
development Total
Cost at 1 January 2023 190,439 328,357 1,004 519,800
Exchange rate adjustments -28,679 -9,161 0 -37,840
Additions 0 7,174 4,917 12,091
Disposals 0 -1,283 0 -1,283
Effect of hyperinflation, IAS29 26,106 3,559 0 29,665
Other adjustments/reclassifications 0 -5,096 -4,356 -9,452
Cost at 31 December 2023 187,866 323,550 1,565 512,981
Amortisation and impairment at 1 January 2023 379 126,597 0 126,976
Exchange rate adjustments -147 -3,613 0 -3,760
Reversed amortisation on disposals 0 -689 0 -689
Amortisation for the year 0 15,436 0 15,436
Effect of huperinflation, IAS29 0 1,867 0 1,867
Other adjustments/reclassifications 0000
Amortisation and impairment at 31 December 2023 232 139,598 0 139,830
Carrying amount at 31 December 2023 187,634 183,952 1,565 373,151
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 4,649 2 -1,942
Additions 0 13,195 2,997 16,192
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
2023 2022
Amortisation during the year is included in the following items:
Cost of sales 1,436 699
Sales and distribution costs 1,954 1,926
Administrative expenses 12,046 13,387
15,436 16,012
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 0.1m (2022: EUR 0.3m).
26
Notes
EUR '000
9 Intangible assets (continued)
2023
Discount
rates after
tax
Terminal
growth rates
A
verage
increase of
revenue
2024 to
terminal
period
A
verage
EBITDA ratio
2024 to
terminal
period
Nordic & Baltic 7-8% 1% 2-6% 6-13%
China and Malaysia 7-9% 3% 3-4% 17-29%
USA 9% 2% 5% 15%
Egypt 25% 3% 10% 25%
Türkiye 21% 5% 29% 17%
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%
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 21-25% 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 2023
based on value in use as in previous years.
Budgets and business plans for the period 2024-2026 are based on specific future business measures, assessing risks in
the key parameters and incorporating these in expected future free cash flows. Projections after 2024 are based on general
expectations. The value for the period after 2026 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 2024-2026 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 2026. The production capacity exceeds the growth expectations to production
volumes.
Goodwill
As a result of the impairment test conducted in 2023 by considering the current conditions and generally accepted appraisal
techniques on 31 December 2023, 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.
At 31 December 2023, Nordic & Baltic, Türkiye, Egypt, USA and Malaysia/China account for EUR 36.9m (2022: EUR
38.5m), EUR 118.8m (2022: EUR 117.9m), EUR 1.1m (2022: EUR 1.5m), EUR 27.8m (2022: EUR 28.8m) and EUR 3.0m
(2022: 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.
27
Notes
EUR '000
9 Intangible assets (continued)
10 Acquisiton of enterprises
Acquisition of Casa Bayan Sdn Bhd
Carrying
amount at
the date of
acquisition
Purchase
price
allocation at
date of
ac
q
uisition
Fair Value
at the date
of
acquisition
Intangible assets with a finite useful life 15 0 15
Property, plant and equipment 162 5,714 5,876
Current tax assets 22 0 22
Other current assets 18 0 18
Cash and cash equivalents 0 0 0
Non-current provisions -22 0 -22
Income taxes tax liabilities -1 0 -1
Identifiable net assets acquired (A) 194 5,714 5,908
Acquisition fee (B) 5,908
Goodwill (B) - (A) 0
Consideration paid as at 31 December 2023 -5,908
Cash on the date of acquisition 0
Net cash flow as at 31 December 2023 deriving from the acquisition -5,908
Sale of subsidiary NWM Holding Limited to Opes MRF 2013 Limited
The net cash flow deriving from the acquisition is shown in the table below:
On 8 November 2023, Recydia AS announced that it had reached an agreement to sell its entire shareholding in NWM
Holding Limited to Opes MRF 2013 Limited, one of the UK's leading waste companies. The consideration for the sale was
EUR 1.5 million. The transaction entailed the deconsolidation by the Cementir Group of NWH Holding Limited and its
subsidiaries Neales Waste Management Limited and Quercia Limited, with the related deconsolidation impact on the income
statement, including the reversal to the income statement of the translation reserve recognised for the translation of these
companies' reporting packages into Euro. The impacts of the deconsolidation are deemed not to be significant for the
financial statements as a whole, as the related operations are non-core for the group.
On 13 October 2023, Aalborg Portland Holding A/S entered into a contract to acquire the entire share capital of Casa Bayan
Sdn Bhd (“Casa Bayan”), a company that owns a quarry in Malaysia. The above-mentioned contract was finalised on 13
October 2023. The consideration paid for the acquisition amounted to EUR 5.9 million (MYR 30 million). The consideration
was paid through cash.
For the period between the date of acquisition and 31 December 2023, in light of the fact that the company is substantially
dormant at present, no significant impact on the group's results has been recognised.
The assets acquired and liabilities assumed were measured for their recognition at fair value and, in addition to the value of
the latter, a higher value of the Quarry of approximately EUR 5.7 million was recognised, determined as shown in the table
below:
At the date of preparation of this document, activities to determine the fair value of the assets acquired and liabilities
assumed, as well as the residual value allocated to goodwill, are still in progress and, in accordance with IFRS 3 in terms of
disclosure, the company may complete the valuation process within twelve months after the effective date of the acquisition.
Provisional amounts of acquired assets and liabilities may be retroactively adjusted to reflect their fair value at the acquisitio
n
date, resulting in a restatement of goodwill.
The input assumptions stated in the table above were applied to estimates and forecasts determined by on the basis of past
experience and expected developments in the markets in which the Group operates. The Group constantly monitors
circumstances and events that could lead to impairment losses based on developments in the current economic climate.
The above tests did not identity any impairment at 31 December 2023.
Taking into considaration the above reported key assumptions management performed sensitivity analyses assuming the
following:
◦Nordic & Baltic +/- 0,4%
◦North America +/- 0,4%
◦Türkiye +/- 2%
◦Egypt +/- 0,4%
◦Asia Pacific +/1 0,4%
● A reduction of both annual increase and EBITDA ratio by 10% at the same conditions, would not result in the
recognition of any impairment loss for all the aforesaid CGUs.
● A hypothetical variation in the discount rate (WACC). Specifically, a possible reasonable variation in WACC, at
the same conditions, would not result in the recognition of any impairment loss for all the CGUs listed above. The applie
d
changes of the assumption, based on the peculiarities of the CGU and the macroeconomic environment where they
operate, are as follows:
● A reduction of the growth rate for a percentage equal to -1%, at the same conditions, would not result in the
recognition of any impairment loss for all the aforesaid CGUs.
28
Notes
EUR '000
11 Property, plant and equipment
Land and
buildings
Plant and
machinery
Property,
plant and
equipment in
development
Right-of-use
assets
Total
Cost at 1 January 2023 675,741 1,489,484 56,324 150,854 2,372,403
Exchange rate adjustments -70,052 -191,462 -1,486 -5,326 -268,326
Additions 9,820 22,777 69,024 42,281 143,902
Disposals -4,853 -7,291 -172 -14,155 -26,471
Effect of hyperinflation, IAS29 56,994 172,258 84 779 230,115
Other adjustments/reclassifications -2,898 12,476 -28,598 766 -18,254
Cost at 31 December 2023 664,752 1,498,242 95,176 175,199 2,433,369
305,053 1,092,867 41 79,909 1,477,870
Exchange rate adjustments -37,905 -166,187 -15 -2,798 -206,905
Reversed depreciation on disposals -4,802 -6,349 0 -12,666 -23,817
Depreciation for the year 13,693 70,305 0 29,717 113,715
Effect of hyperinflation, IAS29 31,724 149,454 0 655 181,833
Other adjustments/reclassifications -6,452 -8,311 0 -3 -14,766
301,311 1,131,779 26 94,814 1,527,930
Carrying amount at 31 December 2023 363,441 366,463 95,150 80,385 905,439
2023 2022
Depreciation, land and buildings 3,199 3,019
Depreciation, plant and machinery 29,337 26,569
Interest on lease liabilities 2,535 2,137
Short-term leases 3,872 3,932
Lease of low value assets 119 165
Total amounts recognised in the income statement regarding leases 39,062 35,822
Depreciation and impairment at 1 January
2023
Depreciation and impairment at 31
December 2023
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.
29
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 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
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
2023 2022
Depreciation during the year is included in the following items:
Cost of sales 84,419 78,190
Sales and distribution costs 23,873 23,519
Administrative expenses 5,423 5,383
113,715 107,092
At 31 December 2023, and 2022, there is no indication of impairment on tangible assets. At 31 December 2022 there was
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
2022
Depreciation and impairment at 31
December 2022
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.
30
Notes
EUR '000
12 Investment properties 2023 2022
Fair value at 1 January 68,957 45,349
Exchange rate adjustments -26,796 -10,747
Disposals -3,118 -2,624
Unrealised fair value adjustment (other operating income) 7,670 16,331
Effect of hyperinflation, IAS29 23,603 20,648
Fair value at 31 December 70,316 68,957
13 Other non-current assets
Cost at 1 January 2023 216 3,251 21,252 24,719
Exchange rate adjustments 0 -1,025 -1,492 -2,517
Additions 0 16 2,667 2,683
Disposals 0 -1,267 -118 -1,385
Decrease 0 0 -2,028 -2,028
Fair value adjustment 0 0 179 179
Effect of hyperinflation, IAS29 0 45 6,230 6,275
Change offset in provision for deferred tax 0 0 -11 -11
Cost at 31 December 2023 216 1,020 26,679 27,915
Adjustments at 1 January 2023 5,343 0 0 5,343
Exchange rate adjustments 312 0 0 312
Profit shares 772 0 0 772
Dividends for the year -114 0 0 -114
Adjustments at 31 December 2023 6,313 0 0 6,313
Carrying amount at 31 December 2023 6,529 1,020 26,679 34,228
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
Additions from acquisition of interests in Ege Kirmatas 0000
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
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.
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.
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.
Other
non-current
assets
31
Notes
EUR '000
13 Other non-current assets (continued)
Investments in subsidiaries with significant non-controlling interests
2023 2022 2023 2022
Revenue 54,208 58,272 46,037 75,422
Profit for the period
- attributable to owners of the parent 2,882 733 340 3,054
- attributable to non-controlling interests 1,235 314 394 3,358
4,117 1,047 734 6,412
Other comprehensive income (expense) -4,026 180 254 509
Total comprehensive income (expense) 91 1,227 988 6,921
Assets
Non-current assets 25,179 25,705 22,230 22,154
Current assets 45,212 48,362 24,705 30,295
70,391 74,067 46,935 52,449
Liabilities
Non-current liabilities 2,754 2,564 12,712 12,169
Current liabilities 11,187 12,406 10,890 12,829
13,941 14,970 23,602 24,998
Net assets
- attributable to owners of the parents 39,520 41,370 11,048 12,957
- attributable to non-controlling interests 16,930 17,727 12,285 14,494
56,450 59,097 23,333 27,451
Cash flow from operation 5,686 4,542 5,102 10,424
Dividends paid to non-controlling interests 808 0 2,728 2,858
2023 2022 2023 2022
Revenue 50,255 57,113 159,621 176,228
Profit for the period
- attributable to owners of the parent 15,565 23,138 6,627 8,267
- attributable to non-controlling interests 6,323 9,400 3,850 4,804
21,888 32,538 10,477 13,071
Other comprehensive income (expense) -21,974 -38,987 -4,585 6,395
Total comprehensive income (expense) -86 -6,449 5,892 19,466
Assets
Non-current assets 18,440 22,986 171,078 176,138
Current assets 100,071 94,918 133,588 123,494
118,511 117,904 304,666 299,632
Liabilities
Non-current liabilities 10,374 9,750 27,697 21,628
Current liabilities 17,650 17,477 30,170 32,941
28,024 27,227 57,867 54,569
Net assets
- attributable to owners of the parents 64,245 64,481 156,076 155,002
- attributable to non-controlling interests 26,242 26,196 90,723 90,061
90,487 90,677 246,799 245,063
Cash flow from operation 18,228 1,466 25,035 24,493
Lehigh White Cement
Company
Aalborg Portland Malaysia
Group Sydsten Group
Sinai White Portland Cement
Co S.A.E.
32
Notes
EUR '000
14 Investments in joint ventures 2023 2022
Summary of financial information from joint ventures:
Revenue 40,856 41,143
Profit for the year 1,536 1,826
Total assets 28,508 25,831
Total liabilities 13,752 19,098
Share of profit for the year after tax 772 972
Significant joint ventures
15 Deferred tax assets and deferred tax liabilities 2023 2022
Change in deferred tax in the year
Deferred tax at 1 January 136,540 107,550
Exchange rate adjustments -12,552 -4,158
Changes of tax rate, via income statement -2 281
Adjustments, previous years via income statement 1,952 665
Additions from acquisition of interests 451 -25
Movements via income statement -20,994 2,002
The year's movements in comprehensive income 362 758
Effect of hyperinflation, IAS29 25,999 29,367
Other adjustments 256 100
Deferred tax liabilities at 31 December, net 132,012 136,540
Deferred tax is presented in the balance sheet as follows:
Deferred tax liabilities 158,691 157,792
Deferred tax assets 26,679 21,252
Deferred tax liabilities at 31 December, net 132,012 136,540
2023 2022 2023 2022
Intangible assets 14,868 15,388 26,836 28,689
Property, plant and equipment 26,186 8,950 79,850 89,265
Investment properties 0 0 13,175 6,828
Other non-current assets -1,806 -2,461 5,145 2,184
Current assets 532 299 10,877 9,111
Provisions 1,936 1,703 -357 -662
Non-current and current liabilities 450 167 -104 -446
Reinvestment allowance 200 819 0 0
Tax loss carry-forwards 4,924 6,553 4,285 3,622
Effect of hyperinflation -20,611 -10,166 18,984 19,201
Deferred tax at 31 December 26,679 21,252 158,691 157,792
For a list of joint ventures, reference is made to page 75.
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.
33
Notes
EUR '000
16 Inventories 2023 2022
Raw materials and consumables 120,900 116,758
Work in progress 57,541 52,017
Finished goods 51,728 48,419
Prepayments of goods 593 1,416
Inventories at 31 December 230,762 218,610
17 Trade receivables, other receivables and prepayments
Development in provisions for impairment on trade receivables:
Provision for impairment losses at 1 January 3,996 1,682
Exchange rate adjustments -522 -433
Provision for impairment in the year 162 3,034
Additions from acquisition of interests in Ege 0 0
Realised in the year -194 -287
Reversed 00
Provision for impairment at 31 December 3,442 3,996
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 35.1m (2022: EUR 32.5m).
Impairment and write-offs included in PL amount to EUR 0.0m (2022: EUR 1.2m)
Write-down of inventories of spare parts amounts to EUR 5.5m (2022: EUR 5.5m). Reversal of write-downs recognised in
the income statement is EUR 0.0m (2022: EUR 0.0m).
34
Notes
EUR '000
18 Provisions for pensions and similar commitments
2023 2022
Present value of defined benefit schemes 54,640 56,625
Market value of the assets comprised by the schemes 35,081 32,938
Long-term incentive plan obligations 644 393
Net liability recognised in the balance sheet 20,203 24,080
Present value of defined benefit schemes at 1 January 56,625 61,288
Adjustment to prior years -13 0
Exchange rate adjustment -1,885 -1,325
Actuarial gains/losses recognised in other comprehensive income -1,147 -4,412
Costs 3,256 2,769
Net interest 1,770 620
Payments -3,966 -2,315
Present value of defined benefit schemes at 31 December 54,640 56,625
Market value of the assets comprised by the schemes at 1 January 32,938 31,275
Exchange rate adjustment -272 -221
Payments 1,252 790
Net interest 1,053 289
Actuarial gains/losses recognised in other comprehensive income 110 805
Market value of the assets comprised by the schemes at 31 December 35,081 32,938
Stated as liabilities (provision for pension) 19,559 23,687
Amounts taken to the income statement
Pension costs are included in:
Cost of sales 6,929 6,363
Sales and distribution costs 2,768 2,625
Administrative expenses 6,345 4,896
16,042 13,884
0-4% 0-4%
1-2% 1-2%
00
In the statement of consolidated shareholders' equity the following
accumulated actuarial gains/losses are recognised
In 2023, the Group expects payment of EUR 6.6m 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 20.2m underfunded at 31 December 2023
(2022: EUR 24.1m) 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.
The actuarial result for the year at EUR -1.3m (2022: EUR -5.2m) is recognised in the statement of comprehensive income.
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.
35
Notes
EUR '000
19 Provisions 2023 2022
Provisions at 1 January 36,436 30,531
Exchange rate adjustment -2,048 -1,066
Additions in the year 1,057 8,137
Additions from acquisition of interests in LWCC 23 0
Actuarial gains/losses recognised in other comprehensive income -44 71
Used in the year -6,208 -954
Reversal -292 -283
Provisions at 31 December 28,924 36,436
Recognised in the balance sheet as follows:
Stated as non-current liabilities 25,115 32,382
Stated as current liabilities 3,809 4,054
28,924 36,436
Maturities for other provisions are expected to be:
Falling due within one year 3,811 4,054
Falling due between one and five years 4,517 7,754
Falling due after more than five years 20,596 24,628
28,924 36,436
20 Credit institutions and other borrowings
2023 2022
Mortgage loan 2033 Variable 120,678 134,870
Bank borrowings and credits 2022 Variable 0 0
Lease liability 2022-2098 Variable 81,238 71,001
Financial payable Group enterprises 2022 Fixed 33,846 21,892
235,762 227,763
31 December 2023:
Mortgage loan 106,584 14,094 120,678 53,721
Lease liability 54,685 26,553 81,238 8,151
Financial payable Group enterprises 0 33,846 33,846 0
161,269 74,493 235,762 61,872
Specification of contractual cash flows incl. interest:
Mortgage loan 130,894 19,694 150,588 56,088
Lease liability 58,613 29,008 87,621 8,184
Financial payable Group enterprises 0 34,344 34,344 0
189,507 83,046 272,553 64,272
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 18.4m (2022: EUR 19.7m), demolition
liabilities for buildings and terminal on rented land at EUR 2.7m (2022: EUR 6.9m), warranties and claims at EUR 0.8m
(2022: EUR 0.6m) as well as other provisions at EUR 7.0m (2022: EUR 9.2m).
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 120.7m (2022: EUR 134.9m). Other fair values do not significantly deviate from
the carrying amount.
36
Notes
EUR '000
20 Credit institutions and other borrowings (continued)
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 18,815 153,130 60,155
Lease liability 47,841 27,998 75,839 9,191
Financial payable Group enterprises 0 22,214 22,214 0
182,156 69,027 251,183 69,346
21 Change in liabilities from financing
Liabilities from financing at 1 January 2023 118,493 50,836 71,001 13,959 254,289
Proceeds from loans and borrowings 0 14,544 0 14,544
Repayment of borrowings -12,089 -8,960 0 0 -21,049
Payment of leases 0 0 -27,544 0 -27,544
Total changes from financing cash flows -12,089 5,584 -27,544 0 -34,049
Exchange rate effect -257 -5,586 -2,098 -29 -7,970
Fair value adjustments 0 0 0 -3,182 -3,182
Non-cash movements 0 0 39,879 -540 39,339
106,147 50,834 81,238 10,208 248,427
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
Please see note 11 for further information regarding leases
22 Deferred income
Expected recognition of deferred income: 2023 2022
Within one year 868 1,335
Between one and five years 11 884
879 2,219
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
2023
Liabilities from financing at 31 December
2022
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
37
Notes
EUR '000
23 Other payables
24 Charges and securities
Property, plant and equipment 101,132 120,678 120,165 134,870
101,132 120,678 120,165 134,870
25 Contingent liabilities, contractual obligations and contingent assets
Contingent liabilities
Contractual obligations
2023 2022
Guarantees
Performance guarantees 8,691 1,961
Other guarantees, etc. 11,258 8,952
19,949 10,913
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.
2023 2022
A
t 31 December 2023, the Group has contractual obligations, including aquisition of raw materials etc. of EUR 0.3m. In 2022
the Group had contractual obligations of EUR 1.3m.
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.
38
Notes
EUR '000
26 Related party transactions
2023 2022
Transactions with Cementir Holding N.V.:
- Revenue 214 214
- Intra-group management and administration agreements and royalties 8,838 8,518
- Financial items, net -1,605 -208
- Financial receivables 224 0
- Financial payables 33,846 21,892
- Trade payables 136 1,768
- Tax receivables 00
- Tax payables 11,335 7,837
Transactions with joint ventures:
Transactions with other related parties (companies in the parent Group)
- Financial receivables 141,313 133,405
- Financial payables 2,891 1,339
- Trade payables 01
- Financial items, net 3,067 -5
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 2023 or 2022.
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, The Netherlands
- Caltagirone S.p.A., Via Barberini, 28, 00187 Rome, Italy
39
Notes
40
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 2.8m (CNY amounts to EUR 0.2m, USD amounts to EUR -2.5m, SEK amounts to EUR 0.1m, PLN amounts to EUR 2.3m
and NOK amounts to EUR 2.8m) (2022: EUR 4.4m (CNY amounted to EUR 1.5m, USD amounted to EUR -3.6m, SEK
amounted to EUR 2.1m, PLN amounted to EUR 2.4m and NOK amounts to EUR 2.0m)). 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
41
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.
2023:
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
Risks relating to net financing
The Group's most important currency risks arising from receivables and payables in foreign currencies at 31 December 2023
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 negativ exchange rate adjustment of EUR 0.8m (2022: positive
EUR 4.3m). 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 2023 would have been reduced by EUR
58.1m (2022: EUR 58.1m), 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 2023.
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 2023 or at 31 December 2022.
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 2023 came in at EUR 149.9m, 81% thereof fi-
nanced by floating rate loans. At 31 December 2022 loans were EUR 160.5m (accounting for 84% floating rate loans and 16%
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
tax of EUR 1.2m (2022: EUR 1.0m) and on equity of EUR 0.9m (2022: EUR 0.8m). A declining interest level would have had a
corresponding positive impact on result and equity.
Notes
42
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.
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 2023 nor in 2022 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
43
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 35.1m at 31 December 2023 (2022: EUR 32.9m).
Trade receivables at 31 December 2023 include receivables of EUR 3.8m (2022: EUR 3.9m), which, based on an individual
assessment, have been written down to EUR 0.0m (2022: 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
taken into account.
Provision for impairment on trade receivables and loss percentages are specified as follows:
Provision for impairment and loss percentages are specified as follows:
Notes
44
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 2023 (31 December 2022:
-0.7).
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 2023 or 2022.
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.
Notes
45
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 2022.
28 Türkiye - hyperinflated economy: Impacts of the application of IAS 29
As of April 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 those already being accounted for in the prior year, 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 2023 was recognised in a separate income statement item under financial
income and expenses. The related tax effect of non-monetary assets and liabilities 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 euro, the Cementir Group's presentation currency, apply-
ing the exchange rate at the end of the period instead of the average exchange rate for the period, in line with IAS 21's re-
quirement 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 2022: 891%
From 1 January 2023 to 31 December 2023: 65%
In 2023, the application of IAS 29 resulted in the recognition of a net financial income (pre-tax) of EUR 3.9m.
Below are the effects of IAS 29 on the main items of the Income Statement for 2023, differentiating for the latter 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
46
EUR ‘000
IAS 29
effect
IAS 21
effect
Total
Effect
Revenue 64,435 -64,746
-311
Cost of sales -60,202 36,949 -23,254
Gross profit 4,233 -27,797 -23,564
Sales and distribution costs -5,727 3,593 -2,135
Administration expenses -2,185 1,371 -815
Other operating income -720 6,329 5,609
Other operating costs -10,934 11,020 85
Earnings before interest and tax (EBIT) -15,335 -5,485 -20,820
Financial expenses -3,544 -91 -3,635
Earnings before tax (EBT) -18,879 -5,576 -24,455
Tax on profit for the year -18,420 21,872 3,452
Profit for the year -37,299 16,296 -21,003
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 2022 and 2023 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
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
Notes
47
loss on the disposal of the assets. The depreciation periods are stated in the section "Accounting policies" in note 30, 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 2023 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 11 March 2024, the Board of Directors and the Management approved the annual report for 2023 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 22 April 2024.
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
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.
Notes
48
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.
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
Notes
49
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.
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.
Notes
50
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.
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,
Notes
51
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
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.
Notes
52
The basis of depreciation is calculated based on 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 incremental
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.
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-
Notes
53
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.
Carrying amounts of trade receivables includes receivables subject to factoring arrangement. Trade receivables are recog-
nised net factored trade receivables.
Write-downs are made to counter losses on the basis of expected losses using the simplified expected credit loss model.
Notes
54
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.
The capitalised remaining lease liability of finance leases is also recognised in financial liabilities, measured at amortised cost.
Notes
55
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 2023. 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 Estimation on uncertainties and judgements
18 Accounting policies
56
Income statement
EUR '000
2023 2022
Notes
1 Revenue 109,427 120,002
2+3 Cost of Sales 79 46
Gross profit 109,348 119,956
2 Sales and distribution costs 00
2+3 Administrative expenses 23,322 21,842
Other operating income 00
Earnings before interest and tax (EBIT) 86,026 98,114
4 Financial income 9,527 7,235
4 Financial expenses 9,524 16,944
Earnings before tax (EBT) 86,029 88,405
5 Tax on profit/loss for the year 737 2,346
Profit/loss for the year 85,292 86,059
To be distributed as follows:
Retained earnings 85,292 86,059
Statement of comprehensive income
EUR '000
2023 2022
Notes
Profit/loss for the year 85,292 86,059
Total comprehensive incom
e
85,292 86,059
57
Cash flow statement
EUR '000
2023 2022
Notes
Profit or loss for the period 85,292 86,059
Reversal of amortisation and depreciation 178 169
Net financial income / expense -79,780 -88,707
Gains/losses on disposals -6,800 0
Income taxes 737 2,346
Operating cash flows before changes in working capital -373 -133
Increase / decrease trade receivables -2,626 -809
Increase / decrease trade payables 152 -3,806
Change in non-current/current other assets/liabilities -384 2
Change in current and deferred taxes 1,814 -3
Operating cash flows -1,417 -4,749
Dividends received 79,777 98,416
Interests received 7,963 5,741
Interests paid -7,992 -969
Other income collected/expenses paid -456 -13,091
Income taxes paid -7,652 -3,692
Cash flow from operating activities 70,223 81,656
Investments in equity investments and other non-current securities -33,167 0
Proceeds from sale of property, plant and equipment 6,800 0
Change in current financial assets 344 0
Cash from investing activities -26,023 0
Change in non-current financial liabilities -11,929 5,266
Change in current financial assets/liabilities 87,919 18,976
Increase/paying-off shareholders' equity -89 0
Dividend distributed -90,210 -70,008
Other variances of equity 493 25
Cash flow from financing activities -13,816 -45,741
Net change in cash and cash equivalent 30,384 35,915
Cash and cash equivalent exchange rate effect -184 14
Cash and cash equivalent opening balance 80,082 44,154
Cash and cash equivalent closing 110,282 80,083
58
Balance sheet
EUR '000
ASSETS 2023 2022
Notes
Other intangible assets 71 80
6 Intangible assets 71 80
Land and buildings 847
Right-of-use assets 224 291
7 Property, plant and equipment 232 338
8 Other non-current assets 671,366 640,158
8+9 Deferred tax assets 00
Other non-current assets 671,366 640,158
Total non-current assets 671,669 640,576
Amounts owed by Group enterprises 127,288 104,765
Amounts owed by related parties 8,982 50,999
Derivative financial instruments (positive fair value) 3,513 6,812
Joint taxation contribution receivable 29,094 20,891
10 Other receivables 777 59
10 Prepayments 93 77
Receivables 169,747 183,603
Cash and cash equivalents 110,282 80,083
Total current assets 280,029 263,686
TOTAL ASSET
S
951,698 904,262
59
Balance sheet
EUR '000
EQUITY AND LIABILITIE
S
2023 2022
Notes Shareholder's equit
y
Share capital 40,333 40,333
Hedge reserve 7,729 9,717
Retained earnings 551,467 558,103
Total shareholders' equity 599,529 608,153
Liabilities
8 Deferred tax liabilities 31 33
11 Credit institutions, etc. 102 168
Derivative financial instruments (negative fair value) 0 13,455
Deferred income 031
Non-current liabilities 133 13,687
11 Credit institutions, etc. 123 125
Trade payables 129 145
Amounts owed to Group enterprises 337,956 280,295
Derivative financial instruments (negative fair value) 8,616 0
Income tax payable 4,093 733
12 Other payables 1,088 996
Deferred income 31 128
Current liabilities 352,036 282,422
Total liabilities 352,169 296,109
TOTAL EQUITY AND LIABILITIE
S
951,698 904,262
60
Statement of shareholders' equity
EUR '000
Share capital
Hedge
reserve
Retained
earnings Total equity
40,333 9,717 558,103 608,153
0 -21 -1,719 -1,740
0 -1,967 0 -1,967
0 0 -90,209 -90,209
0 0 85,292 85,292
40,333 7,729 551,467 599,529
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
The share capital in 2023 and 2022 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 2022
5 shares at DKK 3m each
Dividends distributed to shareholders in 2023 were EUR 90.2m (2022: EUR 70.0m).
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 2023
Shareholders' equity at 31 December 2023
Shareholders' equity at 1 January 2022
Payment of dividend
Changes in fair value of financial instruments
61
Notes
EUR '000
1 Revenue 2023 2022
Dividend received 79,777 98,416
29,650 21,586
109,427 120,002
2 Staff costs
Wages and salaries and other remuneration 4,179 3,991
Pension costs, defined contribution scheme 316 266
Social security costs 18 18
4,513 4,275
Number of employees at 31 December 27 27
Average number of full-time employees 27 27
Salaries and remunerations 614 546
Pension contributions 30 29
644 575
Hereof Board of Directors and Management 507 387
3 Fees to the auditors appointed by the Annual General Meeting
Total fees to Auditors are specified as follows:
Statutory audit 31 25
Other services 310
34 35
Hereof fees to PwC 34 35
Fees to other auditors 88 40
4 Financial income and expenses
Financial income
Interest, cash funds, etc. 1,135 266
Interest, Group enterprises 6,828 5,474
Financial income on derivatives 1,495 128
Exchange rate adjustments 69 1,367
9,527 7,235
Interest on financial assets measured at amortised cost 7,963 5,740
Financial expenses
Interest, credit institutions, etc. 39 126
Interest, Group enterprises 7,953 847
Losses on derivatives 655 4,845
Ineffective part of hedge 0 578
Exchange rate adjustments 825 98
Other financial expenses 52 10,450
9,524 16,944
Interest on financial obligations measured at amortised cost 7,992 973
Remuneration of the Board of Directors represents EUR 75k in 2023 (2022: 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 0.05m (2022: EUR 10.5) 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
62
Notes
EUR '000
5 Income tax 2023 2022
Income tax
Current tax on the profit for the year/joint taxation contribution 1,019 1,986
Deferred tax adjustment -1 730
Other adjustments, including previous years -281 -370
737 2,346
Taxes paid -7,652 -3,692
Reconciliation of tax rate
Tax according to Danish tax rate 22.0% 18,926 19,450
Dividends received from subsidiaries and profits from sales -17,969 -17,527
Other, including adjustments previous years -220 423
737 2,346
Applicable tax rate for the yea
r
1% 3%
Total income ta
x
737 2,346
6 Intangible assets
Other
intangible
assets Total
Cost at 1 January 2023 245 245
Exchange rate adjustments -1 -1
Cost at 31 December 2023 244 244
Amortisation and impairment at 1 January 2023 165 165
Amortisation for the year 88
Amortisation and impairment at 31 December 202
3
173 173
Carrying amount at 31 December 2023 71 71
Other
intangible
assets Total
Cost at 1 January 2022 245 245
Exchange rate adjustments 00
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 2022 165 165
Carrying amount at 31 December 2022 80 80
2023 2022
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.
63
Notes
EUR '000
7 Property, plant and equipmen
t
Land and
buildings
Right-of-use
assets
Total
Cost at 1 January 2023 80 629 709
Exchange rate adjustments 0 -1 -1
Additions 06969
Disposals 0 -118 -118
Cost at 31 December 2023 80 579 659
Depreciation and impairment at 1 January 2023 33 338 371
Exchange rate adjustments 0 -1 -1
Reversed depreciation on disposals 0 -114 -114
Depreciation for the year 39 132 171
Depreciation and impairment at 31 December 2023 72 355 427
Carrying amount at 31 December 2023 8 224 232
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
2023 2022
Depreciation during the year is included in the following items:
Administrative expenses 171 161
171 161
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.
64
Notes
EUR '000
8 Other non-current assets
Cost at 1 January 2023 818,173 0 818,173
Exchange rate adjustments -2,327 0 -2,327
Additions 14,435 0 14,435
Change offset in provision for deferred tax 0 0 0
Cost at 31 December 2023 849,012 0 849,012
Impairment at 1 January 2023 -178,015 0 -178,015
Exchange rate adjustments 369 0 369
Impairment 000
Impairment at 31 December 2023 -177,646 0 -177,646
Carrying amount at 31 December 2023 671,366 0 671,366
Cost at 1 January 2022 808,448 698 809,146
Exchange rate adjustments -699 0 -699
Additions 10,424 0 10,424
Disposals 000
Change offset in provision for deferred tax 0 -698 -698
Cost at 31 December 2022 818,173 0 818,173
Adjustments at 1 January 2022 -167,593 0 -167,593
Exchange rate adjustments 2 0 2
Impairment -10,424 0 -10,424
Adjustments at 31 December 2022 -178,015 0 -178,015
Carrying amount at 31 December 2022 640,158 0 640,158
9 Deferred tax assets and deferred tax liabilities 2023 2022
Change in deferred tax in the yea
r
Deferred tax at 1 January -33 698
Adjustments, previous years via income statement 1 -726
Movements via income statement 1-5
Deferred tax assets at 31 December, net -31 -33
Deferred tax is presented in the balance sheet as follows:
Deferred tax liabilities 31 33
Deferred tax assets 00
Deferred tax assets at 31 December, net -31 -33
2023 2022 2023 2022
Intangible assets 0 0 13 13
Property, plant and equipment 0 0 -2 3
Current assets 0 0 20 17
Non-current and current liabilities 0000
Deferred tax at 31 December 0 0 31 33
Deferred tax assets Deferred tax liabilities
Investments
in
subsidiaries
Deferred tax
assets Total
Investments
in
subsidiaries
Deferred tax
assets Total
65
Notes
EUR '000
10 Other receivables and prepayments
11 Credit institutions and other borrowings
Bank borrowings and credits in the Parent Company at 31 December:
2023 2022
Bank borrowings and credits 2023 Variable 0 0
Lease liability 2027 Variable 225 293
Financial payable Group enterprises 2023 Fixed 0 0
225 293
31 December 2023:
Lease liability 102 123 225 0
102 123 225 0
Specification of contractual cash flows incl. interest:
Lease liability 102 123 225 0
102 123 225 0
31 December 2022:
Finance leases 168 125 293 0
168 125 293 0
Specification of contractual cash flows incl. interest:
Bank borrowings and credits 0000
Finance leases 168 125 293 0
168 125 293 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.
66
Notes
EUR '000
13 Contingent liabilities, contractual obligations and contingent assets
Contingent liabilities
14 Related party transactions
Transactions with Cementir Holding N.V.: 2023 2022
- Intra-group management and administration agreements and royalties 0 0
- Financial items, net 00
- Payables 00
- Non-current financing -20,546 -15,999
Transactions with other related parties:
- Intercompany management, administration agreements and shared service 4,929 5,312
- Financial items, net -1,915 -5,795
- Trade and financial receivables 127,288 104,756
- Trade and financial payables 337,956 280,294
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 31.8m at 31 December 2023 (2022: EUR 6.9m). 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 2023, contractual liabilities are EUR 0.0m (2022: EUR 0.0m).
No losses on loans to or receivables from related parties were recognised, nor provisions made for such in 2023 or 2022.
- 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:
67
Notes
68
15 Financial risks and financial instruments
The Parent Company's most predominant currency exposure regarding the operating results arises from USD and NOK. A
10% drop in these exchange rates compared to EUR/DKK would, viewed separately, decrease EBITDA by EUR 0.3m. NOK
amounts to EUR 0.2m and USD amounts to EUR 0.1m (2022: EUR 0.9m. NOK amounted to EUR 0.4m and USD amounted to
EUR 0.5m).
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 2023 or at 31 December 2022.
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.
2023:
2022:
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 2023 and 31 December 2022 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
Notes
69
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 2023 or 2022.
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
Notes
70
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
71
Statement by the Board of Directors and the Executive Board
Executive Board
Board of Directors
Signatures
72
Independent auditor’s report
Signatures
73
CVR No 33 77 12 31
Management
74
Bo
ard of Directors
Bjarne Moltke Hansen, Chairman
Alessandro Caltagirone, Vice Chairman
Azzurra Caltagirone
Francesco Caltagirone Jr
Francesco Gaetano Caltagirone
Marco Maria Bianconi
Claudio Criscuoli
Executive Board
Francesco Caltagirone Jr, CEO
Henrik Jeppesen, Executive Officer, CFO
Nordic & Baltic
Søren Holm Christensen, CEO
Aalborg Portland A/S
Søren Holm Christensen, CEO
Henrik Jeppesen, CFO
Unicon A/S
Søren Holm Christensen, CEO
Henrik Jeppesen, CFO
Belgium/France
Eddy Fostier, General Manager
North America
Alessandro Civera, Managing Director
Türkiye
Cenker Mirzaoğlu, CEO
Egypt
Alberto Barbieri, Managing Director
Asia Pacific
Aalborg Portland Malaysia Sdn. Bhd.
Fabrizio Piero Carraro, Managing Director
Aalborg Portland (Anqing) Co. Ltd.
Yan Xing Wu, Managing Director
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. Italy EUR 300,000 100.0%
Aalborg Portland Digital S.R.L. Italy EUR 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 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 Norway NOK 13,289
100.0%
AB Sydsten Sweden SEK 15,000
50.0% 50.0%
ÅGAB 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%
North America
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%
Türkiy
e
Aalborg Portland España S.L.U. Spain EUR 3 100.0%
Cimentas AS Türkiye TRY 87,112 96.7%
3.3%
Cimbeton AS Türkiye TR
Y
1,770 50.3%
49.7%
Destek AS Türkiye TR
Y
50 100.0%
Kars Cimento AS Türkiye TR
Y
513,162 41.6%
58.4%
Recydia AS Türkiye TR
Y
759,544 23.7%
Sureko AS Türkiye TR
Y
43,444 100.0%
Ege Kirmatas AS Türkiye TRY 4,200
100.0%
Recydia AS Türkiye TRY 759,544
76.3%
Egypt
Sinai White Portland Cement Co. S.A.E.
Egypt EGP 350,000 71.1% 28.9%
Asia Pacific
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%
Casa Bayan Sdn. Bhd. Malaysia MYR 250,000
100.0%
* 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
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
Annual General Meeting
22 April 2024 at
Rørdalsvej 44, 9220 Aalborg Øst
Nominal share
capital (in 000)
75
Addresses
76
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
Henrik Jeppesen, Executive Officer,
CFO
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
Peter Birkegaard, Managing Director
Bjarne Moltke Hansen,
Chairman of the Board of Directors
Executive Board:
Søren Holm Christensen,
CEO
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 Director
Aalborg Portland Belgium S.A.
Evergemsesteenweg 195
9032 Ghent
Belgium
Tel. +32 472 86 47 29
Maurizio Romeo, Director
Jean-Fabien Criquioche,
Managing Director
Unicon
Unicon A/S (Denmark)
Ulvehavevej 61
7100 Vejle
Denmark
Tel. +45 70 10 05 90
Casper Mathiasen, Managing Director
Bjarne Moltke Hansen,
Chairman of the Board of Directors
Executive Board:
Søren Holm Christensen,
CEO
Henrik Jeppesen, CFO
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 58 340 4830
Wojciech Falkowski, Managing Director
Kudsk & Dahl A/S
Vojensvej 7
6500 Vojens
Denmark
Tel. +45 74 54 12 92
Casper Mathiasen, Managing Director
Belgium/France
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
North America
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
Addresses
77
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
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
Egypt
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
Asia Pacific
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