Management’s review / Financial statements / Signatures / Company information
Our world is
built on cement
1 January 2022 - 31 December 2022
ANNUAL
REPORT
2022
The present Annual Report is presented and approved
at the Annual General Meeting
Date: 20 / 4 - 2023
(Chairman of the meeting)
Management’s review / Financial statements / Signatures / Company information
2 Annual Report 2022 Aalborg Portland A/S
This is the Annual Report of Aalborg Portland A/S
for the financial reporting year from 1 January 2022
to 31 December 2022. The Annual Report has been
prepared in accordance with International Financial
Reporting Standards (IFRS) as adopted by the EU and
additional Danish disclosure requirements.
Aalborg Portland’s statutory report on Corporate
Social Responsibility, cf. Section 99a of the Danish
Financial Statements Act, can be found in the Sus-
tainability Report 2022 published by Cementir Hol-
ding N.V. (hereinafter referred to as “the Group”), the
owner of Aalborg Portland Holding A/S. The report is
available on www.cementirholding.com.
In extension hereof, Aalborg Portland has also
published an Environmental, Social and Gover-
nance (ESG) report which can be found on
In accordance with section 99b of the Danish Finan-
cial Statements Act and section 139a of the Danish
Companies Act, the Group has enacted a policy on
diversity, equity and inclusion, promoting a culture of
respect for diversity, work equality, non-discrimination,
and the inclusion of all labour groups. The policy
and related targets for underrepresented genders
in management are described in the Annual Report
2022 published by Aalborg Portland Holding A/S
(CVR No 14244441). The report is available on
Likewise, reference is made to the Annual Report 2022
published by Aalborg Portland Holding A/S in relation
to Aalborg Portland’s payments to authorities, cf. Sec-
tion 99c of the Danish Financial Statements Act, and to
for the Group’s policy on data ethics, cf. Section 99d
of the Danish Financial Statements act.
ABOUT THIS REPORT
Printed matter
5041 0004
Management’s review / Financial statements / Signatures / Company information
Aalborg Portland A/S Annual Report 2022 3
MANAGEMENT’S REVIEW4 16 38 42FINANCIAL STATEMENTS SIGNATURES COMPANY INFORMATION
6 Letter from our CEO
8 Aalborg Portland in brief
10 Financial highlights
11 Five-year overview
12 Financial review
14 Risk management
17 Income statement
17 Statement of comprehensive income
18 Balance sheet
19 Statement of shareholders’ equity
20 Cash flow statement
21 Notes
39 Statement by the Board of Directors
and the Executive Board
40 Independent auditor’s report
43 Companies in the Group
Table of contents
4 Annual Report 2022 Aalborg Portland A/S
Management’s review / Financial statements / Signatures / Company information
Management’s
review
6 Letter from our CEO
8 Aalborg Portland in brief
10 Financial highlights
11 Five-year overview
12 Financial review
14 Risk management
IN THIS CHAPTER
Aalborg Portland A/S Annual Report 2022 5
Management’s review / Financial statements / Signatures / Company information
6 Annual Report 2022 Aalborg Portland A/S
Management’s review / Financial statements / Signatures / Company information
Letter from our CEO
Strong financial performance
The increase in earnings had a positive effect on
cash flow from operating activities (CFFO) which
was EUR 110.3m (+40.0%). The free cash flow after
investments (FCF) was EUR 74.2m (+29.4%), and
the net interest bearing debt (NIBD) amounted to
EUR -86.8m (-7.4%).
2022 was a satisfactory year for Aalborg Portland,
and we have made good progress on our long-
term strategic ambitions while improving finan-
cial results. Our net sales for the year amounted
to EUR 374.0m (+30,3%), and earnings before
depreciation and amortisation (EBITDA) was EUR
112.7m (+22.1%).
Transforming a cement company requires signi-
ficant investments which, in turn, demand strong
financial results. We believe previous years’ work
to strengthen our financial position and robust-
ness will be paramount in an economic downturn,
where big investments will continue to ensure our
sustainable transition.
Continued customer focus in volatile markets
In 2022, we grew the top line by +30.3% compa-
red to 2021 which was driven by prices in a year
with record-high inflation. During the year, we
continued working closely with our customers and
did our best to protect the market. Price increases
have been implemented beginning of 2022 while
input costs already increased during 2021 which
had a negative impact on 2021 earnings. Navigating
market volatility while keeping focus and control
with our net working capital and cost structure will
also be a key priority in the years to come.
New commitments on CO
2
reductions by 2030
In June 2022, Aalborg Portland took leadership by
confirming its goal to achieve net zero emissions
by 2050 while at the same time committing to a
cap on Scope 1 emissions of maximum 600,000 ton-
nes by 2030. This commitment is a massive step for
us. It entails delivering a 73% reduction of Scope
1 emissions by 2030 compared to 2021 levels. Our
plan lays out a clear path on how to decarbonise
a so-called hard-to-abate sector like cement, and
we already accelerated our actions and delivered
double-digit emission reductions within the first
year. In 2022, our Scope 1 emissions fell by 11.9%
compared to 2021, lowering emissions to below
2.0m tonnes.
FUTURECEM® sales growth
In 2021, we launched FUTURECEM®, which has
a lower CO
2
footprint of up to 30% compared to
Management’s review / Financial statements / Signatures / Company information
Aalborg Portland A/S Annual Report 2022 7
traditional grey cements. One major contribution was the ability to
grow our new carbon-reduced cement type FUTURECEM® within the
ready-mixed concrete segment in 2022, obtaining a conversion rate
of almost 20% of the total market. By 2030, we expect FUTURECEM®
to be the main cement in the Danish construction sector.
Two additional product launches
In 2022, we also went to market with two additional carbon-reduced
products: Aalborg SOLID and a new Aalborg WHITE® variant. We target
Aalborg SOLID at large infrastructure projects. It has a lower carbon
footprint of up to 20% compared to its Low-Alkali Sulphate-Resistant
Cement predecessor (from 925 kg to 737 kg per tonnes of cement). The
new cement is approved for use in more “aggressive” environments,
where concrete structures can be exposed to high levels of moisture,
salt, and other chemical influences. Our second product launch was
a new variant of Aalborg WHITE®. This new product variant bears the
same name as its predecessor but carries a carbon footprint which is
5% lower (from 1,110 kg to 1,040 kg per tonnes of cement).
Pilot facility for carbon capture
In 2022, we reached another important milestone in our 2030 plan as
we inaugurated the first pilot facility for carbon capture on 5 Decem-
ber as a part of our cement production. Carbon capture will play an
important role in decarbonising the global cement industry, and we
are proud to be part of multiple mission-driven and ground-
breaking projects. Our ambition is to have a large-scale carbon
capture and storage (CCS) facility operational by 2030 at the latest,
capturing at least 400,000 tonnes of carbon dioxide (CO
2
) per year.
Stronger people, stronger business
Our success hinges on the dedication, competencies and health and
safety of our people. Throughout 2022, we launched three new programs
together with Cementir Group for improved talent and leadership devel-
opment: a global graduate program for talented engineers, a networking
and training program for emerging talents and a leadership development
program for all managers across all levels and functions. The new chal-
lenges of tomorrow require new skills and solutions. Therefore, we will
continue working with all our employees to build better competencies
and stronger teams at all levels of the organisation.
Improved safety performance
Following unsatisfactory safety results in 2021, we focused intensely
on improving our health and safety performance and general aware-
ness in 2022. A strong commitment from our plant personnel, super-
visors and a new safety organisation lowered our lost-time injury rate
(LTIR) significantly compared to previous years. Safety is always first,
and our dedication to improving health, safety and general awareness
will continue in the years to come.
Expectations to 2023
Overall, grey sales volumes in 2023 are expected to decline in Den-
mark and nearby markets as a consequence of the global financial
situation. The outlook for white export sales is similar to grey sales
showing a decrease, mainly driven by the global financial situation.
Earnings (EBIT) are expected to be in the range of EUR 95m-100m
based on cost optimisation programmes and a commenced introduc-
tion of higher sales prices. These increases are intended to counteract
both sharply increased raw material, energy and logistical costs which
negatively impacted earnings in 2022, and significant price increases
on CO
2
quotas and an increased need for quota acquisition in connec-
tion with cement production.
These expectations are based on the known and generally expected
economic conditions for global growth and do not take into ac-
count any intensified geopolitical tensions, any deterioration in the
structural conditions of competition, any increased prevalence or
strength of the Covid-19 pandemic or any new increases in energy and
logistical costs.
As the expectations described here are based on a number of precon-
ditions and assumptions that are beyond management’s control, the
actual earnings may deviate significantly from the expectations.
Søren Holm Christensen
CEO of Aalborg Portland A/S
Management’s review / Financial statements / Signatures / Company information
8 Annual Report 2022 Aalborg Portland A/S
1889
FOUNDED
850
PEOPLE
18
COUNTRIES
3.0
M TONNES CEMENT
73
%
REDUCTION IN CO
2
BY 2030
Aalborg Portland in brief
Aalborg Portland was founded in 1889 and is the only cement manufacturer in Denmark,
with its cement plant situated in Rørdal, east of Aalborg City. Today, Aalborg Portland is
one of Denmark’s largest industrial companies, owning 1,200 hectares of land in the Rørdal
region, which consists of farmland, a chalk quarry, and various uncultivated areas.
Aalborg Portland was founded
in 1889 and is the only cement
manufacturer in Denmark
Aalborg Portland directly employs 350
people in addition to which around 500
people are employed elsewhere as
contractors and subcontractors
Aalborg Portland has been part of
Cementir Group since 2004. Cementir
is a multinational Group operating in
18 countries
Aalborg Portland is boasting an
annual production capacity around
3m tonnes of cement
Aalborg Portland will reach
net zero by 2050 and reduce
Scope 1 emissions by 73% by 2030
compared to 2021 levels
AT A GLANCE
Management’s review / Financial statements / Signatures / Company information
The cement plant consists of six cement kilns: one
grey and five white. It is one of Europe’s largest cement
plants, boasting an annual production capacity around
3 million tonnes of cement: approx. 2 million tonnes
grey and approx. 1 million tonnes white. Along with the
cement plant, Aalborg Portland owns terminals in Den-
mark and abroad, making national and global transport
of the finished cement products possible.
Aalborg Portland employs around 350 people, with
an additional 500 contractors and subcontractors
working on-site daily or nearby to support the plant’s
many activities. Aalborg Portland is, therefore, one
of the largest contributors to the Northern Region of
Denmark’s industrial workforce.
WHAT WE DO AND HOW WE CREATE VALUE
We have supplied cement to people all over the world
for more than 130 years, predominantly in Denmark
and the Nordic and Baltic countries. Besides being
the most used cement in the Danish construction
sector for private homes, commercial buildings,
public schools and hospitals, our cement is also used
in many iconic national and international projects.
These iconic projects include Denmark’s 18-kilo-
metre-long Great Belt Bridge, London’s Olympic
City and New York’s famous Manhattan 432 Park
Avenue skyscraper. For more information on Aalborg
Portland, see www.aalborgportland.dk.
PART OF CEMENTIR GROUP
Aalborg Portland is part of Aalborg Portland Holding,
which Cementir Group acquired in 2004. Cementir is a
multinational Group operating in 18 countries across
the building materials sector, employing around
3,000 people globally. The Group’s annual production
capacity amounts to more than 13 million tonnes of
grey and white cement, around 10 million tonnes of
aggregates and 5 million cubic metres of ready-mixed
concrete. Cementir has been listed on the Milan
Stock Exchange since 1955 and is one of the leading
companies in the Euronext STAR Milan segment.
For more information on Cementir Group, see
www.cementirholding.com, and for Aalborg Portland
Holding, see www.aalborgportlandholding.com.
Aalborg Portland A/S Annual Report 2022 9
10 Annual Report 2022 Aalborg Portland A/S
Management’s review / Financial statements / Signatures / Company information
Financial highlights
Net revenue Return on equityFree cash flow
EBITDA Equity ratioNet interest-bearing debt
EURm %EURm
EURm %EURm
2022 20222022
2022 20222022
2021 20212021
2019 20192019
2021 20212021
2019 20192019
2020 20202020
2018 20182018
2020 20202020
2018 20182018
374.0 15%74.2
112.7 37%-86.8
92.3 43%
287.1 17%57.3
57.1
57.0
82.2268.8 13%
258.8 15%
244.8 13%
-80.8
92.4 34%-8.9
106.4 43%-87.8
79.8 27%17.4
374.0 15%74.2
112.7 37%-86.8
Aalborg Portland A/S Annual Report 2022 11
Management’s review / Financial statements / Signatures / Company information
Five-year overview
For definition of financial ratios, see page 37.
IFRS 16, Leases, was adopted 1 January 2019. No figures prior to 1 January 2019, throughout the report, have been restated.
Euro ’000
2018 2019 2020 2021 2022
INCOME STATEMENT
Revenue 244.8 258.8 268.8 287.1 374.0
Earnings before depreciation/amortisation, impairment losses, provisions, interest and tax (EBITDA) 79.8 92.4 106.4 92.3 112.7
EBITDA ratio 32.6% 35.7% 39.6% 32.1% 30.1%
Earnings before interest and tax (EBIT) 60.3 67.0 80.3 65.6 85.5
EBIT ratio 24.6% 25.9% 29.9% 22.9% 22.9%
Earnings before tax (EBT) 59.3 66.4 78.6 63.6 82.5
Profit for the year 46.5 52.6 61.6 46.4 65.7
CASH FLOWS
Cash flows from operating activities (CFFO) 75.4 72.9 100.2 78.8 110.3
Cash flows from investing activities (CFFI) * -18.4 -15.7 -18.0 -21.5 -36.1
Free cash flow (FCF) 57.0 57.1 82.2 57.3 74.2
Hereof investments in intangible assets and property, plant and equipment (excl. assets acquired at acquisition of enterprises) -18.4 -16.3 -18.1 -22.5 0.0
BALANCE SHEET
Total assets 367.3 440.9 495.0 467.5 538.0
Shareholders’ equity 97.6 150.2 212.8 198.6 199.2
Net interest-bearing debt (NIBD) 17.4 -8.9 -87.8 -80.8 -86.8
Working capital (WC) -12.8 -3.1 -7.1 -15.6 -27.0
FINANCIAL RATIOS
Including non-controlling interests’ share
Return on equity 13% 15% 13% 17% 15%
Equity ratio 27% 34% 43% 43% 37%
NIBD/EBITDA factor 0.2 -0.1 -0.8 -0.8 -0.8
Number of employees at 31 December 328 341 333 350 352
12 Annual Report 2022 Aalborg Portland A/S
Management’s review / Financial statements / Signatures / Company information
Financial review
PROFIT AND LOSS ACCOUNT
Revenue in 2022 amounted to EUR 374.0m (2021: EUR 287.1m).
Sales in Denmark increased while the European export markets were on par
with 2021.
Operating profit before depreciation (EBITDA ratio) reached 30.1% (2021:
32.1%). Raw material, energy and fuel cost increases were partly offset by
increased customer prices, continued focus on Operational Excellence and
cost optimisation programmes.
Earnings before interest and tax (EBIT) amounted to EUR 85.5m (2021: EUR
65.6m).
Tax on profit for the year amounted to EUR 16.7m (2021: EUR 17.2m), net profit
for the year being EUR 65.7m (2021: EUR 46.4m).
CASH FLOWS
Cash flow from operating activities (CFFO) was EUR 110.3m for 2022 (2021:
EUR 78.8m).
Cash flow from investment activities (CFFI) amounted to EUR -36.1m (2021:
EUR -21.5m).
DEBT AND FINANCIAL RESOURCES
Aalborg Portland is part of the cash pool held by the parent company,
Aalborg Portland Holding A/S. Aalborg Portland has access to funding
through the parent company financing facility, and added to this long-term
mortgage loans of EUR 134m with an average life of 9 years.
BALANCE SHEET
Non-current assets amounted to EUR 193.5m at 31 December 2022 (2021:
EUR 181.6m), whereof EUR 148.7m (2021: EUR 140.7m) is related to property,
plant and equipment and EUR 17.1m (2021: EUR 20,8m) is related to right-of-
use assets.
Current assets amounted to EUR 344.6m (2021: EUR 285.9m), which is mainly
related to inventories and receivables.
SHAREHOLDERS’ EQUITY
Shareholders’ equity amounted to EUR 199.3m at the end of 2022 against
EUR 198.6m the year before. The increase in shareholders’ equity is due
to profit for the year reduced by dividend payment to Aalborg Portland
Holding A/S.
Equity ratio was 37% at the end of 2022 (42% in 2021).
WORKING CAPITAL
Working capital, i.e. the capital tied up in debtors and inventories less credi-
tors, was at a low level through focused control and reporting in relation to
agreed goals. Keeping down working capital saves on interest expenses and
frees up resources for investment etc. Furthermore, as stated, low working
capital contributes to an improved return on capital employed (ROCE).
Working capital at end 2022 amounted to EUR -27.0m (EUR -15.6m in 2021).
SUBSIDIARIES
Poland
The Polish market experienced a decline during 2022 with a drop in cement
sales of 7% compared to 2021. Furthermore, export sale realised a decline of
26%. Earnings in 2022 was significantly impacted by the negative develop-
ment in volume and net profit declined with 45% compared to 2021.
Iceland
The Icelandic market showed a positive development during 2022 resulting
in an increase in cement sales of 7% compared to 2021. Earnings followed
the increase in sales and revenues.
France
The French market was significantly impacted by the decline in global
economy and cement sales realised a decline of 16% compared to 2021. The
decline in sale had a corresponding negative impact on earnings for 2022.
Belgium
The Benelux markets were significantly impacted by the decline in global
economy and cement sales realised a decline of 21% compared to 2021. The
decline in sale had a corresponding negative impact on earnings for 2022.
Aalborg Portland A/S Annual Report 2022 13
Management’s review / Financial statements / Signatures / Company information
Cementir Holding N.V.
Aalborg Portland Holding A/S
Aalborg Portland A/S
100%
100%
Aalborg Portland islandi ehf.
100%
Aalborg Portland Polska Sp. Z.o.o.
100%
Aalborg Portland OOO
99.9%*
Aalborg Portland France S.A.S.
100%
Aalborg Portland Belgium S.A.
100%**
GROUP CHART
**One share owned by Aalborg Portland Holding A/S
*Aalborg Portland OOO has not had any sales since 2017. The company
is dormant, and the management has decided to wind up the company.
14 Annual Report 2022 Aalborg Portland A/S
Management’s review / Financial statements / Signatures / Company information
Risk management
Like any other company, Aalborg Portland A/S (the Company) is affected by
risks and uncertainties relating to its business activities and works conti-
nuously on strengthening risk management. Aalborg Portland is part of the
Aalborg Portland Holding Group (the Group). The Group employs a holistic
risk management process in which the most critical risks are:
• Market conditions
• Framework conditions
• Environmental impacts
• Organisation
• Financial risks
The Group continuously monitors and addresses both risks and opportunities
in its market areas with a view to achieving its strategic objectives.
MONITORING AND CONTROL
The Group’s risk management is based on a standardised risk process.
The assessment of the individual risk factors is based on the likelihood of
the risks occurring and their potential impact on earnings, operations and
reputation in this event.
The risk management process is embedded in the management of the
business units. The business units together with the corporate and service
functions are responsible for identifying, analysing and managing risks
and for reporting on progress and initiating control measures. Risk owners
are appointed specifically for the most significant risks. The individual unit
managements are responsible for integration of risk assessments in all
major decisions.
The individual risk reports received from the business units are consolidated
at Group level. The combined risk report is included in Group management’s
monitoring and risk management processes. Group management is re-
sponsible for ensuring that the overall risk for the Group as a whole is of an
acceptable level and that risk management procedures are implemented.
Group management reports periodically or as needed to the Board of
Directors, which determines the overall policies and framework for the day-
to-day management.
Risk reporting
MARKET CONDITIONS
Competition
Loss of major customers and projects may pose a significant risk in relation
to the achievement of the Company’s objectives. The Group continuously
monitors its markets and takes ongoing actions to adapt to and meet the
competitive environment and market changes.
Raw materials and energy prices
The Company uses large quantities of energy in cement manufacturing and
is therefore sensitive to long-lasting price changes. In order to mitigate this
risk, the purchase of energy can partly be hedged by establishing contracts
for terms up to 24 months.
Access to essential raw materials is ensured through ownership of
deposits, extraction licences, long-term contracts and diversity in terms
of suppliers. Furthermore, the market for the raw materials which are
considered production-critical is carefully monitored. A small number of
raw materials are subject to particular uncertainty as regards long-term
security of supply, and the Company is working proactively to find appro-
priate solutions to this issue.
FRAMEWORK CONDITIONS
Legislation and other regulations
The Company is subject to regulatory changes by the authorities and orga-
nisations in a variety of areas. Non-compliance with recommendations and
regulations is often subject to substantial fines and constitutes a potential
risk to overall earnings. The Company is committed to conforming with all
aspects of competitive legislation, environmental legislation and internal
rules regarding fraud. The Group trains relevant personnel in compliance
with current requirements on an ongoing basis.
Political risks
The Group operates globally, including in emerging and growth markets
with special political risks. This can have material consequences both for
production conditions and sales. The Group pursues active dialogue at all
levels with politicians, authorities and interest groups to create a good basis
for continued operation and to enable the Group’s operations to be adjusted
when appropriate.
Taxes and levies
The Company’s production is subject to substantial taxation, particularly
in Denmark. Tax represents a material area of risk for the Company as it
impacts directly on competitiveness and sales potential. It is particularly
difficult to compete on price with cement producers from neighbouring
countries that do not have high tax levels like Denmark.
CO
2
quotas
The future granting of CO
2
quotas to the Group’s production units may have
substantial financial impact. Ongoing focus is therefore placed by the Group
on complying with all requirements relating to the granting of such quotas.
The Group also closely monitors EU and national political issues concerning
CO
2
quotas in relation to the Group’s expected development in the EU area.
BOARD OF
DIRECTORS
EXECUTIVE
BOARD
BUSINESS UNITS
Management’s review / Financial statements / Signatures / Company information
Environmental impacts
The Group’s business units and management are very conscious of their
environmental role and strive to recognise, manage and counteract relevant
risks in this regard. The manufacturing of the Group’s products consumes
raw materials and energy, but the environmental and climate characteris-
tics of these products are very favourable.
It is the stated policy of the Group to contribute constructively and signifi-
cantly to achieving society’s climate goals, and through the development of
its products and production the Group therefore constantly strives to ensure
a more environment-friendly and sustainable cement manufacture.
ORGANISATION
Employees and management
The Company’s continued success is dependent on the retention of expe-
rienced employees and managers and on the recruitment of new skilled
employees and managers to the Group’s business units and support functi-
ons. Accordingly, the Group attaches importance to providing attractive jobs
with good development opportunities for employees and managers.
IT systems
IT systems are used in all parts of the Company’s activities, including pro-
duction, sales and finance. Operational disruption and loss of data and com-
munications would impact the Group negatively. Consequently, IT security
and business continuity are accorded high priority, especially in connection
with implementation of new systems.
FINANCIAL RISKS
Financial risks, including currency risks, which are of material significance
for the Company are described in the notes to the financial statements.
Aalborg Portland A/S Annual Report 2022 15
16 Annual Report 2022 Aalborg Portland A/S
Management’s review / Financial statements / Signatures / Company information
Financial
statements
17 Income statement
17 Statement of comprehensive income
18 Balance sheet
19 Statement of shareholders’ equity
20 Cash flow statement
21 Notes
IN THIS CHAPTER
Aalborg Portland A/S Annual Report 2022 17
Management’s review / Financial statements / Signatures / Company information
Euro ’000
NOTE
2022 2021
Revenue
1
Cost of sales
2+3+4+9
Gross profit 157,914 128,391
Sales and distribution costs
4+15
Administrative expenses
4+5
Other operating income
6
Earnings before interest and tax (EBIT) 85,450 65,615
Financial income
7
Financial expenses
7
Earnings before tax (EBT) 82,452 63,578
Tax on profit for the year
8
Profit for the year 65,743 46,403
Attributable to:
Non-controlling interests 0 0
Shareholders in Aalborg Portland A/S 65,743 46,403
To be distributed as follows:
Proposed dividends 45,000 64,000
Retained earnings 20,743 -17,597
Euro ’000
NOTE
2022 2021
Profit for the year 65,743 46,403
Items that can be reclassified to the income statement:
Exchange rate adjustments on translation of foreign currency 3 99
Changes in fair value of financial instruments -1,074 -286
Tax 2 63
Other comprehensive income after tax -1,069 -124
Total comprehensive income 64,674 46,279
Income statement Statement of comprehensive income
18 Annual Report 2022 Aalborg Portland A/S
Balance sheet
Euro ’000
NOTE
2022 2021
ASSETS
Goodwill 2,337 2,337
Other intangible assets 17,278 9,785
Intangible assets in development 277 190
Intangible assets
10
Land and buildings 20,398 21,923
Plant and machinery 109,648 97,441
Property, plant and equipment in development 18,659 21,325
Right-of-use assets 17,088 20,836
Property, plant and equipment
11
Investments in subsidiaries 7,631 7,631
Other non-current assets 141 141
Other non-current assets
12
Total non-current assets 193,457 181,609
Inventories
14
Trade receivables
15
Amounts owed by Group enterprises 257,473 216,819
Other receivables
15
Prepayments
15
Receivables 282,899 238,210
Cash and cash equivalents 1,868 2,080
Total current assets 344,577 285,882
TOTAL ASSETS 538,034 467,491
Euro ’000
NOTE
2022 2021
EQUITY AND LIABILITIES
Shareholder's equity
Share capital 13,404 13,404
Hedge reserve -1,065 7
Retained earnings 141,917 121,171
Proposed dividends 45,000 64,000
Total shareholders' equity 199,256 198,582
Liabilities
Deferred tax liabilities
13
Provisions
16
Credit institutions, etc.
17+19
Non-current liabilities 157,810 128,425
Credit institutions, etc.
17+19
Trade payables 109,388 69,616
Amounts owed to Group enterprises 18,648 25,634
Derivative financial instruments (negative fair value) 0 171
Provisions
16
Joint taxation contribution payables 16,892 17,510
Other payables
18
Current liabilities 180,968 140,484
Total liabilities 338,778 268,909
TOTAL EQUITY AND LIABILITIES 538,034 467,491
Management’s review / Financial statements / Signatures / Company information
Aalborg Portland A/S Annual Report 2022 19
Statement of shareholders’ equity
Euro ’000
NOTE
Share capital Hedge reserve Retained earnings Proposed dividends Total equity
Shareholders' equity at 1 January 2022 13,404 7 121,171 64,000 198,582
Effect of translation to presentation currency 0 0 3 0 3
Changes in fair value of financial instruments 0 -1,072 0 0 -1,072
Profit for the year (total comprehensive income) 0 0 20,743 45,000 65,743
Ordinary paid dividend 0 0 0 -64,000 -64,000
Shareholders' equity at 31 December 2022 13,404 -1,065 141,917 45,000 199,256
Euro ’000
NOTE
Share capital Hedge reserve Retained earnings Proposed dividends Total equity
Shareholders' equity at 1 January 2021 13,404 230 138,669 60,477 212,780
Effect of translation to presentation currency 0 0 99 0 99
Changes in fair value of financial instruments 0 -223 0 0 -223
Profit for the year (total comprehensive income) 0 0 -17,597 64,000 46,403
Extraordinary paid dividend 0 0 0 -60,477 -60,477
Shareholders' equity at 31 December 2021 13,404 7 121,171 64,000 198,582
Management’s review / Financial statements / Signatures / Company information
The share capital in 2022 and 2021 consists of:
100,000 shares at DKK 1,000
All shares are fully issued and paid up. One share of DKK 1,000 holds one vote.
20 Annual Report 2022
Management’s review / Financial statements / Signatures / Company information
Cash flow statement
Euro ’000
NOTE
2022 2021
Profit for the period 65,743 46,403
Reversal of amortisation and depreciation 27,043 26,414
Reversal of revaluation / impairment losses 0 5
Net financial income / expense 2,999 2,037
Gains/losses on disposals 42 -1,004
Income taxes 16,709 17,175
Change in provisions (current and non-current) -17 237
Operating cash flows before changes in working capital 112,519 91,267
Increase / decrease inventories -14,218 -8,284
Increase / decrease trade receivables -12,027 266
Increase / decrease trade payables 37,706 16,510
Change in non-current/current other assets/liabilities 5,608 -1,626
Change in current and deferred taxes 9 25
Operating cash flows 129,597 98,158
Dividends received 1,281 1,299
Interests received 787 18
Interests paid -3,026 -2,896
Other income collected/expenses paid -1,729 -150
Income taxes paid -16,572 -17,611
Cash flow from operating activities 110,338 78,818
Investments in intangible assets -8,884 -555
Investments in property, plant and equipment and investment property -27,167 -21,966
Proceeds from sale of property, plant and equipment -42 1,004
Other variances investment assets -24 10
Cash from investing activities -36,117 -21,507
Euro ’000
NOTE
2022 2021
Proceeds from loans and borrowings 50,240 0
Repayment of borrowings -17,351 -12,432
Payment of lease liabilities -6,920 -6,651
Change in current financial liabilities -1,389 -10,786
Movement in cashpool -35,012 34,526
Dividend distributed -64,018 -60,369
Other variances of equity 16 -124
Cash flow from financing activities -74,434 -55,836
Net change in cash and cash equivalent -213 1,475
Cash and cash equivalent exchange rate effect 1 1
Cash and cash equivalent opening balance 2,080 604
Cash and cash equivalent closing 1,868 2,080
Aalborg Portland A/S Annual Report 2022 21
Management’s review / Financial statements / Signatures / Company information
Notes
1. Revenue
Euro ’000
NOTE
2022 2021
Split by product
Sale of cement 362,145 276,161
Other sales* 11,860 10,888
374,005 287,049
Split by geography
Denmark 239,554 181,294
Other Europe 132,481 87,691
USA 0 16,315
Other 1,970 1,749
374,005 287,049
All revenue derives from contracts.
*Other sales mainly include sale of heat etc.
2. Cost of sales
Cost of sales amounts to EUR 216.1m (2021: EUR 158.7m). Hereof direct staff costs amount to EUR 20.6m (2021: EUR
20.5m) and use of raw materials amounts to EUR 34.9m (2021: EUR 25.6m).
3. Research and development costs
Euro ’000
NOTE
2022 2021
Research and development costs paid 2,106 2,474
2,106 2,474
4. Staff costs
Euro ’000
NOTE
2022 2021
Wages and salaries and other remuneration 29,182 27,215
Pension costs, defined contribution scheme 2,228 2,282
Social security costs 479 460
31,889 29,957
Number of employees at 31 December 352 350
Average number of full-time employees 354 335
Remuneration of the Board of Directors, the Management and other senior executives
Salaries and remunerations 1,703 1,692
Pension contributions 118 104
1,821 1,796
Hereof Board of Directors and Management 1,102 1,211
Remuneration of the Board of Directors represents EUR 99k in 2022 (2021: EUR 99k).
Pension schemes
Pension schemes in Aalborg Portland A/S are defined contribution schemes, which do not entail any obligations
beyond payment of contributions.
5. Fees to the auditors appointed by the Annual General Meeting
Euro ’000
NOTE
2022 2021
Total fees to PwC are specified as follows:
Statutory audit 100 97
Other services 0 -38
100 59
22 Annual Report 2022 Aalborg Portland A/S
6. Other operating income and other operating costs
Euro ’000
NOTE
2022 2021
Other operating income
Rent income 740 708
Profit on sale of property, plant and equipment -42 1,004
Other income 0 146
698 1,858
7. Financial income and expenses
Euro ’000
NOTE
2022 2021
Financial income
Interest, cash funds etc. 12 1
Interest, Group enterprises 887 92
Dividends received from subsidiaries 1,281 1,299
Exchange rate adjustments 2,295 1,497
4,475 2,889
Interest on financial assets measured at amortised cost 899 93
Financial expenses
Interest, credit institutions etc. 2,229 1,615
Interest, Group enterprises 1,162 1,709
Exchange rate adjustments 4,082 1,602
7,473 4,926
Interest on financial obligations measured at amortised cost 3,391 3,324
8. Income tax
Euro ’000
NOTE
2022 2021
Income tax
Current tax on the profit for the year/joint taxation contribution 17,148 14,211
Deferred tax adjustment 785 -471
Other adjustments, including previous years -1,224 3,435
16,709 17,175
Taxes paid 16,572 17,611
Euro ’000
NOTE
2022 2021
Reconciliation of tax rate
Tax according to Danish tax rate 22.0% 18,319 14,167
Dividends received from subsidiaries and profits from sales -282 -286
Non-taxable income and non-deductible expenses -104 -271
Other, including adjustments previous years -1,224 3,565
16,709 17,175
Applicable tax rate for the year 20.3% 27.0%
Total income tax 16,709 17,175
Management’s review / Financial statements / Signatures / Company information
Aalborg Portland A/S Annual Report 2022 23
9. Environmental taxes
Euro ’000
NOTE
2022 2021
The Company has paid the following direct environmental taxes:
Sulphur 595 1,102
NOx 1,928 1,904
Electricity 178 187
Waste 156 2,035
Energy 89 164
Raw materials 1,008 893
Diesel and fuel oil 1 2
PSO 0 25
3,955 6,312
10. Intangible assets
Euro ’000
Goodwill
Other
intangible
assets
Intangible
assets in
development Total
Cost at 1 January 2022 2,337 28,386 190 30,913
Exchange rate adjustments 0 4 0 4
Additions 0 365 274 639
Other adjustments/reclassifications 0 8,431 -187 8,244
Cost at 31 December 2022 2,337 37,186 277 39,800
Amortisation and impairment at 1 January 2022 0 18,601 0 18,601
Amortisation for the year 0 1,307 0 1,307
Amortisation and impairment at 31 December 2022 0 19,908 0 19,908
Carrying amount at 31 December 2022 2,337 17,278 277 19,892
10. Intangible assets (continued)
Euro ’000
Goodwill
Other
intangible
assets
Intangible
assets in
development Total
Cost at 1 January 2021 2,335 27,630 373 30,338
Exchange rate adjustments 2 16 0 18
Additions 0 475 81 556
Other adjustments/reclassifications 0 265 -264 1
Cost at 31 December 2021 2,337 28,386 190 30,913
Amortisation and impairment at 1 January 2021 0 16,428 0 16,428
Exchange rate adjustments 0 10 0 10
Amortisation for the year 0 2,163 0 2,163
Amortisation and impairment at 31 December 2021 0 18,601 0 18,601
Carrying amount at 31 December 2021 2,337 9,785 190 12,312
Amortisation during the year is included in the following items:
Cost of sales 40 23
Sales and distribution costs 522 522
Administrative expenses 745 1.618
1,307 2,163
Other intangible assets include software licenses (SAP R/3), quarry rights, CO
2
quotas, customers and development projects.
Except goodwill, all intangible assets have definite useful lives. The Management has not identified factors indicating
a need for carrying through impairment test of other intangible assets.
The carrying amount of development projects is EUR 0.0m (2021: EUR 0.0m).
Internally generated intangible assets, mainly regarding SAP implementation, amount to EUR 0.3m (2021: EUR 0.5 m).
Goodwill is related to cement activity. Due to strong cash flow there is no indication of impairment.
Management’s review / Financial statements / Signatures / Company information
24 Annual Report 2022 Aalborg Portland A/S
11. Property, plant and equipment
Euro ’000
Land and
buildings
Plant and
machinery
Property, plant
and equipment in
development
Right-of-use
assets Total
Cost at 1 January 2022 112,749 484,575 21,325 37,169 655,818
Exchange rate adjustments -1 6 -1 0 4
Change in accounting policy,
leases
0 0 0 36 36
Additions 0 12,747 14,420 2,847 30,014
Disposals 0 0 0 -176 -176
Reclassifications 0 17,085 -17,085 0 0
Cost at 31 December 2022 112,748 514,413 18,659 39,876 685,696
Depreciation and impair-
ment at 1 January 2022
90,826 387,134 0 16,333 494,293
Exchange rate adjustments -1 2 0 3 4
Reversed depreciation on
disposals
0 0 0 -143 -143
Depreciation for the year 1,525 17,629 0 6,582 25,736
Other adjustments/
reclassifications
0 0 0 13 13
Depreciation and impairment
at 31 December 2022
92,350 404,765 0 22,788 519,903
Carrying amount at
31 December 2022
20,398 109,648 18,659 17,088 165,793
11. Property, plant and equipment (continued)
Euro ’000
Land and
buildings
Plant and
machinery
Property, plant
and equipment in
development
Right-of-use
assets Total
Cost at 1 January 2021 112,681 466,035 17,604 34,113 630,433
Exchange rate adjustments 68 284 11 11 374
Additions 0 10,082 11,884 3,265 25,231
Disposals 0 0 0 -220 -220
Reclassifications 0 8,174 -8,174 0 0
Cost at 31 December 2021 112,749 484,575 21,325 37,169 655,818
Depreciation and impair-
ment at 1 January 2021
88,969 370,818 0 10,158 469,945
Exchange rate adjustments 55 225 0 6 286
Reversed depreciation on
disposals
0 0 0 -190 -190
Depreciation for the year 1,802 16,091 0 6,359 24,252
Depreciation and impairment
at 31 December 2021
90,826 387,134 0 16,333 494,293
Carrying amount at
31 December 2021
21,923 97,441 21,325 20,836 161,525
Management’s review / Financial statements / Signatures / Company information
Aalborg Portland A/S Annual Report 2022 25
11. Property, plant and equipment (continued)
Euro ’000
NOTE
2022 2021
Depreciation during the year is included in the following items:
Cost of sales 19,351 17,906
Sales and distribution costs 5,983 5,951
Administrative expenses 402 395
25,736 24,252
Amounts recognised in the income statement regarding leases:
Depreciation, plant and machinery 6,582 6,359
Interest on lease liabilities 365 428
Short-term leases 131 70
Lease of low value assets 0 2
7,078 6,859
Residual value guarantees that are expected to be paid are included in the initial measurement of the lease liability.
Reference is made to note 17.
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 com-
mencement date. Variable lease payments not based on an index or a rate are recognised as an expense in the income
statement as incurred.
The Company has not signed essential contracts regarding purchase of property, plant and equipment. No changes are
made in significant accounting estimates regarding property, plant and equipment.
12. Other non-current assets
Euro ’000
Investments in
subsidiaries
Other non-
current assets Total
Cost at 1 January 2022 7,631 141 7,772
Cost at 31 December 2022 7,631 141 7,772
Carrying amount at 31 December 2022 7,631 141 7,772
Cost at 1 January 2021 7,626 141 7,767
Exchange rate adjustments 5 0 5
Cost at 31 December 2021 7,631 141 7,772
Carrying amount at 31 December 2021 7,631 141 7,772
Other non-current assets mainly relate to deposits and loans in both years.
Management’s review / Financial statements / Signatures / Company information
26 Annual Report 2022 Aalborg Portland A/S
13. Deferred tax assets and deferred tax liabilities
Euro ’000
NOTE
2022 2021
Change in deferred tax in the year
Deferred tax at 1 January 24,070 24,331
Exchange rate adjustments 0 15
Adjustments, previous years via income statement -30 259
Adjustment on hedge accounting -2 -63
Movements via income statement 786 -472
Deferred tax liabilities at 31 December, net 24,824 24,070
Deferred tax is presented in the balance sheet as follows:
Deferred tax liabilities 24,824 24,070
Deferred tax liabilities at 31 December, net 24,824 24,070
The Mutual Agreed Procedures (“MAP”) covering 2008-2012 between the Danish and the Italian tax authorities regar-
ding a transfer pricing case on royalty payments involving the Aalborg Portland Holding Group was settled in 2021. The
tax authorities in Denmark and Italy reached a split decision, where the Italian tax authorities gave an adjustment of
64%, which means that royalties were reduced to approx. 1/3 of the original amount. With regards to the transfer case
for the following years 2013-2021 a mutual agreement has been made with the Danish and the Italian tax authorities to
apply a sales-based calculation of 0.25% of the net sales only, which is at the level accepted between the Danish and
Italian tax authorities for FYs 2008-2012. For Aalborg Portland A/S, being part of the joint taxation, this has resulted in a
tax adjustment of EUR 3.6m included in the Financial Statement 2021.
14. Inventories
Euro ’000
NOTE
2022 2021
Raw materials and consumables 39,889 29,693
Work in progress 11,034 7,900
Finished goods 8,887 7,999
Inventories at 31 December 59,810 45,592
As was the case last year, there are no significant inventories of cement and aggregates carried at net realisable
value. Write-down of inventories of spare parts amounts to EUR 2.0m (2021: EUR 1.9m). Write-down recognised in the
income statement is EUR 0.1m (2021: EUR 0.1m).
15. Trade receivables, other receivables and prepayments
Euro ’000
NOTE
2022 2021
Development in provisions for impairment on trade receivables:
Provision for impairment losses at 1 January 5 0
Provision for impairment in the year 0 5
Realised in the year -5 0
Provision for impairment at 31 December 0 5
Other receivables mainly include levies.
Prepayments mainly comprise of ship freight.
Impairment and write-offs included in the income statement amount to EUR 0.0m.
Management’s review / Financial statements / Signatures / Company information
Aalborg Portland A/S Annual Report 2022 27
16. Provisions
Euro ’000
NOTE
2022 2021
Provisions at 1 January 3,669 3,433
Exchange rate adjustment 0 2
Additions in the year 151 234
Additions from acquisition of shares in CCB 1 0
Used in the year -167 0
Provisions at 31 December 3,654 3,669
Recognised in the balance sheet as follows:
Stated as non-current liabilities 3,570 3,502
Stated as current liabilities 84 167
3,654 3,669
Maturities for other provisions are expected to be:
Falling due within one year 85 166
Falling due between one and five years 336 740
Falling due after more than five years 3,233 2,763
3,654 3,669
Provisions mainly include re-establishment of chalk, gravel and clay pits at EUR 1.8m (2021: EUR 1.7m), demolition
liabilities for buildings and terminal on rented land at EUR 1.8m (2021: EUR 1.8m) while other provisions amount to EUR
0.1m (2021: EUR 0.2m).
Movements in the year include adjustment of liabilities regarding re-establishment of chalk and clay pits, demolition
liabilities for buildings and terminals on rented land and other provisions.
Provisions for liabilities due after more than five years include liabilities regarding re-establishment of chalk, gravel
and clay pits and demolition liabilities for buildings and terminals with no decision made regarding closure.
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.
17. Credit institutions and other borrowings
Bank borrowings and credits in the Parent Company at 31 December:
Euro ’000
Year of
maturity
Fixed/
variable
Carrying
amount
2022
Carrying
amount
2021
Mortgage loan 2037 Variable 134,352 98,192
Lease liability 2023-2035 Variable 17,724 21,690
152,076 119,882
Fair value of the mortgage loan amounts to EUR 134m (2021: EUR 98m). Other fair values do not significally deviate
from the carrying amount. The fair value corresponds to the nominal outstanding debt.
Management’s review / Financial statements / Signatures / Company information
28 Annual Report 2022 Aalborg Portland A/S
17. Credit institutions and other borrowings (continued)
The Company’s debt to credit institutions has been recognised and falls due as follows:
Euro ’000
Non-current
borrowings
(>1 year)
Current
borrowings
(0-1 year) Total
Maturity
>5 years
31 December 2022:
Mortgage loan 118,516 15,836 134,352 59,148
Lease liability 10,900 6,824 17,724 2,726
129,416 22,660 152,076 61,874
Specification of contractual cash flows
incl. interest:
Mortgage loan 134,315 18,815 153,130 60,155
Lease liability 11,109 7,059 18,168 2,726
145,424 25,874 171,298 62,881
31 December 2021:
Mortgage loan 85,602 12,590 98,192 49,001
Lease liability 15,251 6,439 21,690 4,076
100,853 19,029 119,882 53,077
Specification of contractual cash flows
incl. interest:
Mortgage loan 89,841 13,277 103,118 36,314
Lease liability 15,586 6,788 22,374 4,076
105,427 20,065 125,492 40,390
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.
Maturity of derivatives is disclosed in note 22.
Other financial liabilities are due within 1 year.
18. Other payables
Other current payables include holiday pay liabilities, taxes and public indirect taxes, interest payable and dividends
payable to non-controlling interests.
19. Charges and securities
2022 2021
Euro ’000
Carrying
amount of
mortgaged
assets
Debt
regarding
mortgaged
assets
Carrying
amount of
mortgaged
assets
Debt
regarding
mortgaged
assets
Property, plant and machinery 120,057 134,870 108,786 98,067
120,057 134,870 108,786 98,067
20. Contingent liabilities, contractual obligations and contingent assets
Contingent liabilities
The 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 Company in that respect, and the out-
come of the disputes is not expected to have significant impact on the Company’s financial position beyond what
has been recognised in the balance sheet.
In 2022, contractual liabilities are EUR 0.0m (2021: EUR 0.0m).
The Company is taxed jointly with other Danish companies in the Aalborg Portland Holding Group. The Company
is jointly and unlimited liable with the other companies in the joint taxation of Danish taxes at source and income
taxes within the joint taxation group. Payable income taxes in the joint taxation group amounted to EUR 6.9m at 31
December 2022 (2021: EUR 6.0m). Any subsequent corrections of the taxable income subject to joint taxation could
cause a higher liability of the Company.
Management’s review / Financial statements / Signatures / Company information
Aalborg Portland A/S Annual Report 2022 29
Contractual obligations
Euro ’000
NOTE
2022 2021
Guarantees
Performance guarantees 555 1,252
555 1,252
Lease expenses recognised in the income statement are in accordance with IFRS 16, reference is made to note 11.
21. Related party transactions
Related parties with significant influence in the Aalborg Portland A/S:
- 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
- Aalborg Portland Holding A/S, Rørdalsvej 44, 9220 Aalborg Øst
Related parties within Aalborg Portland 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.
Euro ’000
NOTE
2022 2021
Transactions with Aalborg Portland Holding A/S.:
Intra-group management and administration agreements
and royalties
1,635 3,404
Financial items, net 403 1,707
Trade and financial receivables 245,202 211,563
Trade and financial payables 8,460 16,176
Transactions with other related parties:
Sale of cement and micro silica 117,126 107,141
Intercompany purchase of cement and other variable costs, net 73,218 54,798
Intercompany management, administration agreements and
shared service
3,013 5,529
Financial items, net 129 90
Trade and financial receivables 12,271 5,256
Trade and financial payables 10,188 9,457
Remunerations to the Board of Directors and the Management are presented in note 4.
No losses on loans to or receivables from related parties were recognised, nor provisions made for such in 2022 or 2021.
All transactions were made on terms equivalent to arm’s length principles.
Management’s review / Financial statements / Signatures / Company information
30 Annual Report 2022 Aalborg Portland A/S
22. Financial risks and financial instruments
Risk management policy
As a result of its international operations, investments and financing, the
Company is exposed to a number of financial risks, including market risks,
liquidity and credit risks.
Market risks Liquidity risks Credit risks
Risks that the fair
value of or future
cash flows from a
financial instrument
will fluctuate due to
changes in market
prices.
Risks that the Com-
pany will encoun-
ter difficulties in
meeting obligations
associated with
financial liabilities.
Risks that a counter-
party of a financial
instrument is unable
to fulfil its obliga-
tions and thereby
inflict a loss to the
Company.
The Group’s Finance & Treasury is in charge of the overall risk management
in accordance with the principles adopted by the Board of Directors and the
Company follows the Group policy. The 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 commercial operations, 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 currencies other
than the functional
currency of the
individual Company
business.
Refer to the influence
of changes in market
interest rates on
future cash flow rela-
ting to the Company’s
interest-bearing
assets and liabilities
and the fair value of
these.
Refer to the influence
of changes 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 Company analyses realised
and expected cash flows broken down by currencies. The Company does not
hedge the currency risk between EUR/DKK due to the Danish fixed-exchan-
ge-rate policy aimed at the EUR.
Risks relating to purchases and sales
Revenue from the Company’s activities and the purchases by this segment
are denominated in several currencies. Accordingly, these activities are also
exposed to changes in exchange rates.
The Company’s currency risks are primarily hedged by the settlement of
income and costs in the same currency and by use of derivative financial
instruments. Investments in Group enterprises are not hedged.
The Company’s most predominant currency exposure regarding the opera-
ting results arises from sales and purchases in EUR, USD, GBP, NOK, SEK
and PLN. A 10% drop in these currencies (apart from EUR) would, viewed
separately, decrease the result by EUR 1.0m (NOK amounts to EUR 0.1m,
GBP amounts to EUR 1.1.m, PLN amounts to EUR 2.4m, USD amounts to EUR
-4.6m and SEK amounts to 0.0m), (2021: NOK amounted to EUR 0.0m, GBP
amounted to EUR 1.0m, PLN amounted to EUR 1.5m, USD amounted to EUR
-1.4m and SEK amounted to 0.0m).
Risks relating to net financing
The Company’s most important net positions at 31 December 2022 relate to
USD, SEK and NOK. If these currencies had been 10% down at 31 Decem-
ber 2022, the Company’s equity would have been affected negative by an
exchange rate adjustment of EUR -0.4m (2021: positive impact of EUR 0.5m).
Rising exchange rates would have had a similar negative impact on equity.
Translation risks relating to net investments in subsidiaries
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, equity at 31 December
2022 would have been reduced by EUR 1.3m (2021: EUR 1.2m), if the PLN, ISK,
EUR and RUB exchange rates had been 10% down on the actual exchange
rates.
Assumptions of sensitivity analysis
The sensitivities are stated on the assumption of unchanged sales and price
levels and interest levels, and on the assumption of recognised assets and
liabilities at 31 December 2022.
Forward contracts regarding future transactions
The Company 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 Company assesses in each case whether
these comply with the conditions for hedge accounting.
There are no forward contracts at 31 December 2022 or 31 December 2021.
Interest rate risk
The Company has exposure to interest rate changes in Denmark. The primary
interest rate exposure is related to fluctuations in CIBOR.
The Company’s preferred financing is floating rate loans. The Company’s net
interest-bearing debt (NIBD) at 31 December 2022 is EUR -134.9m (deposit),
100% thereof financed by floating rate loans. NIBD at 31 December 2021
represented EUR 98.2m (deposit).
With regard to the Company’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 (2021: EUR 1.0m) and on
equity of EUR 0.8m (2021: EUR 0.8m). A declining interest level would have
had a corresponding positive impact on result and equity.
Raw material price risks
The Company uses a number of raw materials in the manufacture of
products, which expose the Company to a price risk, i.a. especially different
Management’s review / Financial statements / Signatures / Company information
Aalborg Portland A/S Annual Report 2022 31
fuels and electricity. The Company enters into annual fixed price contracts
for some raw materials. A material part of the price risk on the Company’s
fuel oil is hedged through swap agreements.
Liquidity risks
Aalborg Portland A/S is included in the Cementir Group’s overall manage-
ment of financial risks.
Aalborg Portland A/S has access to funding through the Cementir Holding
facility and also through Aalborg Portland Holding’s uncommitted facility in
Danske Bank.
The Company is part of the Group’s cash pool scheme. The purpose of the
cash pool scheme is to optimise cash management and the use of liquidity
in the participating companies.
Neither in 2022 nor in 2021 the Company has defaulted or breached any loan
agreements (covenants).
Regarding maturities of the Company’s debt, reference is made to note 17.
Based on the expectations for the future operation and the present cash
funds, no other significant liquidity risks have been identified.
Credit risks
The credit risks arise primarily from receivables related to customers, other
receivables and cash.
As a consequence of the credit risk policy, credit rating of all major custom-
ers and other trading partners is performed before contract formation
and hereafter continuously. An efficient credit control is important in the
present market. Management of the credit risk is based on internal credit
limits, which are based on the customer’s and the counterparties’ credit-
worthiness, based on both internal and external credit ratings as well as the
experience with the counterparty. If no satisfactory guarantee is obtained
when credit rating the customer/counterparty, payment in advance or sepa-
rate guarantee for the sale, e.g. a bank guarantee, will be required.
The Company takes out credit insurances on a large part of export customers.
Due to the market situation, the Company has in recent years increased the
resources used on follow-up on customers, which contributes to early war-
nings of possible risks. As part of the overall risk management, the credit
exposure of customers and counterparties is monitored daily, weekly or
monthly based on individual assessments. Historically the Company 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 Company.
Receivables from the Company’s activities are attributable to Danish
customers and export customers characterised as medium-sized and major
customers. The Company is familiar with the Danish customers, who have
not been granted long credit lines. Experience shows that export customers
pose a low credit risk.
Receivables overdue at 31 December are specified as follows:
Euro ’000
2022 2021
Payment:
Up to 30 days 1.5 0.8
Between 30 and 90 days 0.7 0.2
More than 90 days 0.0 0.0
2.2 1.0
The historical loss percentage in the income statement is 0.0%. The Com-
pany’s trade receivables at 31 December 2022 and 31 December 2021 include
no write-downs.
Management of capital structure
Capital management is assessed and adjusted in close co-operation with
the parent company. Aalborg Portland A/S is included in the Cementir
Group’s overall capital management.
It is the Group’s policy that the capital structure and financial gearing shall
at all times reflect the Group’s activities and risk profile, afford sufficient
financial latitude to ensure the Group’s creditworthiness, and provide flexibi-
lity and room for investments 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 financial gearing between net interest-bearing debt and EBITDA is -0.8
at 31 December 2022.
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).
Management’s review / Financial statements / Signatures / Company information
32 Annual Report 2022 Aalborg Portland A/S
Hedging instruments are not traded on an active market based on quoted prices. Measured instead of using a valu-
ation technique, where all significant inputs are based on observable market data; such as exchange rates, interest
rates, credit risk and volatilities (level 2).
There have been no transfers between the levels in 2022 or 2021.
Specification of financial assets and obligations
Euro ’000
Carrying
value
2022
Fair value
2022
Carrying
value
2021
Fair value
2021
Loans and receivables 283,040 283,040 238,351 238,351
Financial obligations measured at amortised cost 293,408 293,421 223,489 223,932
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 corresponding to the carrying value.
Derivative financial instruments are computed on generally accepted valuation methods based on relevant exchange
rates.
23. Post-balance sheet events
There have been no post-balance sheet events material to this Annual Report which have not been recognised or
mentioned.
24. 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 material 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 Company is exposed to risks and uncertainties that may result in variances between
actual and estimated results.
The development in the world economy and in the financial markets in the last three years has resulted in conside-
rable 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.
Non-current assets
Non-current assets are measured at cost less accumulated depreciation and impairment. Depreciation is provided
on a straight-line basis over the expected useful lives of the assets considering the residual value of the assets. The
anticipated useful life and residual value are determined on the basis of past experience and the anticipated future
use of the asset in question. The anticipated future use and scrap values may prove impossible to realise, prompting
a need for write-down or a loss on the disposal of the assets. The depreciation periods are stated in the section
”Accounting policies” in note 25, and non-current assets are stated in notes 10 and 11.
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.
Provisions and contingent liabilities
Assessment of provisions and contingent liabilities are largely based on estimates and judgements. Description of
provisions and contingent assets and contingent liabilities is given in note 16 and 20.
Management’s review / Financial statements / Signatures / Company information
Aalborg Portland A/S Annual Report 2022 33
25. Accounting policies
The Annual Report 2022 of Aalborg Portland A/S is prepared in accordance
with International Financial Reporting Standards as adopted by the EU and
additional Danish disclosure requirements according to large class C.
Aalborg Portland A/S official statutory annual report is presented in EUR.
The accounting policies set out below have been used consistently in
respect of the financial year. For standards implemented prospectively,
comparative information is not restated.
On 9 March 2023, the Board of Directors and the Management approved the
annual report for 2022 for the Aalborg Portland Group. The annual report is
submitted to the shareholders of Aalborg Portland A/S for approval at the
Annual General Meeting on 20 April 2023.
Foreign currency translation
For each of the reporting enterprises in the Group, a functional currency is
determined. Transactions denominated in other currencies than the functio-
nal 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 enter-
prises 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 average exchange rates and the balance
sheet items are translated at the exchange rates at the balance sheet date.
The calculation differences arising from the translation of the income state-
ments of companies abroad at average exchange rates and of their balance
sheet items at the rate of exchange on the balance sheet date are taken
directly to other comprehensive income.
On full or partial disposal of wholly-owned foreign operations resulting in a
loss of control or on repayment of balances which constitute part of the net
investment in the foreign operation, the share of the cumulative amount of
the exchange differences that is recognised in other comprehensive income
relating hereto is reclassified from other comprehensive income to profit for
the year together with gain or loss on disposal.
On the disposal of partially owned foreign subsidiaries resulting in a loss of
control, the share of the translation reserve in other comprehensive income
attributable to non-controlling interests is not transferred to profit or loss.
An average exchange rate is used if it does not significantly deviate from the
exchange rate ruling at the transaction date.
The assets and liabilities of a foreign company acquired are translated at the
exchange rate at the date of transaction (acquisition date).
Income statement
Revenue
Revenue is recognised in the income statement on delivery and passing of
the risk to the buyer and when the income can be measured reliably and is
expected to be received.
Revenue is measured at fair value of the consideration agreed excl. VAT charged
on account of third party. All kinds of discounts are recognised in Revenue.
Trade receivables recognised as services delivered are invoiced to the cust-
omer and are not adjusted for any financing components 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
management.
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 indire-
ct 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 re-
lation to the activities of the Group, including certain grants, rentals, fees, 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 inclu-
ded in other operating income and costs.
Derivative financial instruments
Derivative financial instruments are recognised at the date a derivative
contract is entered into and measured in the statement of financial position
at fair value. Positive and negative fair values of derivative financial instru-
ments are included as separate line items in the statement of financial
position and set-off of positive and negative values is only made when the
Company has the right and the intention to settle several financial instru-
ments net.
Management’s review / Financial statements / Signatures / Company information
34 Annual Report 2022 Aalborg Portland A/S
The rules for hedge accounting are not applied, and value adjustments of
derivative financial instruments are therefore recognised as finance income
and finance costs.
Financial items
Interest income and expenses comprise interest, exchange rate gains and
losses regarding transactions denominated in foreign currencies and wri-
te-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 compre-
hensive 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 appli-
cable in the respective countries at the balance sheet date, which is expe-
cted 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 defer-
red tax liabilities in the same legal tax entity and jurisdiction.
Uncertain tax positions are measured at the amount estimated to be requi-
red to settle such potential future obligations. We measure these uncertain
tax positions on a yearly basis through dialog with key stakeholders. The me-
asurement 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. Un-
certain tax positions are measured at the most likely outcome method.
Aalborg Portland 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 A/S is jointly taxed with the parent company, Aalborg Port-
land Holding A/S, and all Danish enterprises. 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”. Subsequently goodwill is mea-
sured 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 potential future market or
development opportunities in the Company is demonstrated, and where
the Company intends to complete, market or use the individual project, are
recognised as intangible assets provided that the cost can be measured
reliably and that there is sufficient assurance that future earnings or the net
selling price can cover production costs, selling and administrative expen-
ses 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 salaries, 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 estimated 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:
The expected useful lives are:
• Software applications, up to 10 years.
• Customer list up to 25 years.
• Patents, licences and other intangible assets, up to 20 years.
• Leasehold improvements, up to 5 years.
Management’s review / Financial statements / Signatures / Company information
Aalborg Portland A/S Annual Report 2022 35
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
quotas, which the company has to
settle, is recognised.
On disposal of CO
2
quotas, the difference between carrying amount and the
selling price of 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 asset.
Deemed costs for dismantling and disposal of the asset and re-establish-
ment are added to cost if the deemed costs are recognised as a provision.
The cost of total assets is split into separate components, which are depre-
ciated 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 estimated 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 depreciated, unless it is used for
raw material extraction after individual assessment.
The basis of depreciation is calculated on the basis of the scrap value less
impairment losses. The scrap value is determined at the acquisition date
and reassessed annually. If the scrap value exceeds the carrying amount,
depreciation is discontinued.
When changing the depreciation period or the scrap value, the effect on
the depreciation is recognised prospectively as a change in accounting
estimates.
Depreciation is recognised in the income statement as production costs,
sales and distribution costs and administrative expenses to the extent that
depreciation is not included in the cost of self-constructed assets.
Lease assets and lease liabilities
Aalborg Portland mainly leases land, 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 con-
veys 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 commence-
ment date.
Aalborg Portland leases cars including a service component in the pay-
ments to the lessor. This service is separated from the lease payment when
measuring the lease liability. If it is not possible to separate lease compo-
nents 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 discoun-
ted using the interest rate implicit 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 de-
pend on an index or a rate, guaranteed residual values, purchase options and
extension options, if the Company 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 income 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
Management’s review / Financial statements / Signatures / Company information
36 Annual Report 2022 Aalborg Portland A/S
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.
Investments in subsidiaries
Investments in subsidiaries are measured at cost. In case of indication of
impairment, impairment test is carried out as described 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.
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-cur-
rent assets of the cash-generating unit (CGU) or group of CGUs to which
goodwill is allocated. The assets of the CGUs are written down to the
recoverable amount in profit or loss if the carrying amount is higher. The
recoverable amount of a CGU is generally determined as the present value
of the expected future net cash flows from the entity or activity (CGU) to
which goodwill is allocated. However, impairment losses on goodwill are
recognised as other operating costs in the income statement.
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 recoverable 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 CGU to which
the asset belongs.
An impairment loss is recognised if the carrying amount of an asset or a
CGU, respectively, exceeds the recoverable amount of the asset or the CGU.
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 income 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. Indirect 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.
Write-down is made for bad debt losses when there is an objective indicati-
on of an impairment loss. In such cases, write-down is made individually for
each specific receivable.
Write-down is stated as the difference between the carrying amount and
the present value of the expected cash flow, including the net realisable
value of any received collaterals. The effective interest rate used at the time
of initial recognition is used as the discount rate for the individual receivable
or portfolio.
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 differences arising from
the translation of the financial statements of foreign entities from their
functional currencies to the presentation currency of the Company (EUR)
and foreign exchange adjustments of assets and liabilities considered 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.
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 provision 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 according to the production method.
Provisions are measured as the best estimate of the expenses required to
settle the obligation at the balance sheet date.
Management’s review / Financial statements / Signatures / Company information
Aalborg Portland A/S Annual Report 2022 37
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 nomi-
nal 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.
Other financial liabilities are measured at amortised 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 connec-
tion 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 contributi-
ons from owners as well as the raising and repayment of loans.
Omission of consolidated financial statements
Pursuant to section 112(1) of the Danish Financial Statements Act, no conso-
lidated financial statements have been prepared. The financial statements
of Aalborg Portland A/S and group entities are included in the consolidated
financial statements of Aalborg Portland Holding A/S, Rørdalsvej 44, 9220
Aalborg Øst, Denmark, CVR no. 14 24 44 41.
Segment reporting
Aalborg Portland A/S is not a listed company and therefore no segment
reporting is made according to IFRS 8.
Forthcoming requirements
A number of new financial reporting standards, which are not compulsory
for the Company in 2022, have been released. The adopted, non-effective
standards and interpretations are implemented as they become mandatory
for the Company.
Management’s review / Financial statements / Signatures / Company information
Financial ratios
EBITDA ratio
Earnings before depreciation/amortisation, impair-
ment losses, provisions, interest and tax (EBITDA).
Revenue
EBIT ratio
Earnings before interest and tax (EBIT).
Revenue
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.
38 Annual Report 2022 Aalborg Portland A/S
Management’s review / Financial statements / Signatures / Company information
Signatures
39 Statement by the Board of Directors
and the Executive Board
40 Independent auditor’s report
IN THIS CHAPTER
Aalborg Portland A/S Annual Report 2022 39
Management’s review / Financial statements / Signatures / Company information
BOARD OF DIRECTORS
EXECUTIVE BOARD
Statement from the Board of Directors
and Executive Board
40 Annual Report 2022 Aalborg Portland A/S
Management’s review / Financial statements / Signatures / Company information
Independent auditors’ report
Aalborg Portland A/S Annual Report 2022 41
Management’s review / Financial statements / Signatures / Company information
CVR No 33 77 12 31
42 Annual Report 2022 Aalborg Portland A/S
Management’s review / Financial statements / Signatures / Company information
Company
information
43 Companies in the Group
IN THIS CHAPTER
Aalborg Portland A/S Annual Report 2022 43
Management’s review / Financial statements / Signatures / Company information
THE COMPANY
Tel. +45 98 16 77 77
E-mail: cement@aalborgportland.com
Internet: www.aalborgportland.com
CVR No 36 42 81 12
BOARD OF DIRECTORS
Bjarne Moltke Hansen
Chairman of the Board of Directors
Marco Maria Bianconi,
Vice Chairman
Søren Holm Christensen
Ernst Aage Jensen*
Kim Eli Madsen*
*Elected by the employees
EXECUTIVE BOARD
Søren Holm Christensen
CEO, Aalborg Portland
Michael Lundgaard Thomsen,
COO, Aalborg Portland
Henrik Jeppesen,
CFO, Aalborg Portland Holding
OWNERS
Aalborg Portland A/S is 100% owned by
Aalborg Portland Holding A/S.
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.
ANNUAL GENERAL MEETING
20 April 2023 at Islands Brygge 43,
Copenhagen.
Companies in the Group
Nominal share capital
(in 000)
Direct
holding*
Aalborg Portland A/S
Denmark DKK 100,000 -
Aalborg Portland Íslandi ehf. Iceland ISK 303,000 100.0%
Aalborg Portland Polska Sp. z o.o. Poland PLN 100 100.0%
Aalborg Portland OOO* Russia RUB 14,700 99.9%
Aalborg Portland France S.A.S. France EUR 10 100.0%
Aalborg Portland Belgium S.A. Belgium EUR 500 100.0%
*Aalborg Portland OOO has not had any sales since 2017. The company is dormant, and the management has decided to wind up the company.
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
Frank Brandt, General Manager
Aalborg Portland A/S
Rørdalsvej 44
9220 Aalborg Øst
Denmark
CVR No 36428112
www.aalborgportland.dk
Images
©Hans Christian Jacobsen (p. 6)
©Markus Hasselgaard (p. 9, 13)
©Mogens Holmgaard (p. 38)
All other images by Aalborg Portland
unless otherwise stated
Publication
20 April 2023