MANAGEMENT’S REVIEW FINANCIAL STATEMENTS SIGNATURES COMPANY INFORMATION
1 January 2023 - 31 December 2023
The present Annual Report is presented and approved
at the Annual General Meeting
Date: 22 / 4 - 2024
(Chairman of the meeting)
ANNUAL
REPORT
2023
Part of the solution
MANAGEMENT’S REVIEW FINANCIAL STATEMENTS SIGNATURES COMPANY INFORMATION
Printed matter
5041 0004
Aalborg Portland A/S Annual Report 2023 3
MANAGEMENT’S REVIEW FINANCIAL STATEMENTS SIGNATURES COMPANY INFORMATION
Management’s review 4
Letter from management 6
Aalborg Portland in brief 8
Aalborg Portland history 10
Reporting in accordance with Danish accounting legislation 12
Financial highlights 14
Five-year overview 15
Financial review
16
Group chart
17
Risks and uncertainties 18
Financial statements 20
Income statement 21
Statement of comprehensive income 21
Balance sheet 22
Statement of shareholders’ equity 23
Cash flow statement
24
Notes
25
Signatures 42
Statement by the Board of Directors
and the Executive Board 43
Independent auditor’s report 44
Company information 46
Companies in the Group 47
Table of contents
4 Annual Report 2023 Aalborg Portland A/S
MANAGEMENT’S REVIEW FINANCIAL STATEMENTS SIGNATURES COMPANY INFORMATION
Management’s
review
6 Letter from management
8 Aalborg Portland in brief
10 Aalborg Portland history
12 Reporting in accordance with
Danish accounting legislation
14 Financial highlights
15 Five-year overview
16 Financial review
17 Group chart
18 Risks and uncertainties
IN THIS CHAPTER
Aalborg Portland A/S Annual Report 2023 5
MANAGEMENT’S REVIEW FINANCIAL STATEMENTS SIGNATURES COMPANY INFORMATION
Aalborg Portland A/S Annual Report 2023 5
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6 Annual Report 2023 Aalborg Portland A/S
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Letter from management
During 2023, geopolitical tensions and uncertainty
intensified with war continuing in Ukraine and
most recently, a regional conflict in the Middle
East. The general macroeconomic situation was
and remains uncertain with increased interest
rates and high industrial inflation. This has mate-
rialised in a historic slowdown in the building and
construction sector in Denmark and across our
export markets in Europe.
In 2023, the Danish concrete market was down to
the levels post the financial crisis in 2008. This had
a direct impact on cement sales which was only
partially mitigated by deliveries to the Femernbelt
tunnel, the largest infrastructure project in Denmark
to date. The same trend was seen in export markets
across Europe, resulting in a general decline in ce-
ment sales of 20% compared to 2022. Despite these
challenging conditions, Aalborg Portland managed
to deliver strong financial results.
Strong financial results
Despite seeing a general decline in activity levels
across all markets, we managed to secure net sa-
les of EUR 368.6m (-1.4%). Earnings before depreci-
ation and amortisation (EBITDA) were EUR 135.9m
(+20.6%) which had a positive effect on cash flow
from operating activities (CFFO) ending at EUR
106.9m (-3.0%) despite being negatively impacted
by capital development. The free cash flow after
investing activities (FCF) was EUR 78.3m (+5.5%),
and net interest-bearing debt (NIBD) amounted to
EUR -112.8m (-30.0%).
In the beginning of the year, we saw a decline in
energy costs and decided to reduce our selling
prices on basic products to a lower level. The vola-
tility on energy markets continues to have a huge
impact on our business and we will continuously
monitor and maintain a focus on this transition in
the years to come.
Revenue realised in 2023 is in line with expectati-
ons. Earnings (EBIT) were stronger than expectati-
ons, mainly due to cost optimisations. We consider
the result for the year satisfactory.
CO
2
reductions
In 2023, Aalborg Portland’s scope 1 CO
2
emissions
decreased by 276,000 tonnes (14%). Since 2021,
emissions have dropped by a total of 545,000 tonnes
of CO
2
(24%), surpassing our expectations. These re-
ductions demonstrate our commitment to achieving
a 73% reduction of our CO
2
footprint by 2030.
Aalborg Portland A/S Annual Report 2023 7
MANAGEMENT’S REVIEW FINANCIAL STATEMENTS SIGNATURES COMPANY INFORMATION
Continued phase-out of fossil fuels
The first track in our climate plan is to phase out
traditional fossil fuels such as coal, oil and petcoke.
Throughout 2023, we worked to optimise our fuel
portfolio to increase the share of alternative fuels
which constitutes non-recyclable waste materials
from other industries such as refuse-derived fuels
(RDF) and biogenic byproducts. In 2023, we increa-
sed the share of alternative fuels from 30% to 40%
in line with our ambitions for the year.
A stronger and more sustainable product portfolio
The second track in our climate plan is to develop
and market new and more sustainable cement pro-
ducts. During 2023, we reported several improve-
ments to our products’ CO
2
footprints to the benefit
of our customers and the climate.
Looking back, we can also celebrate that our
low-carbon cement type, FUTURECEM®, now
constitutes more than 35% of the market for
ready-mixed concrete in Denmark, which is a
remarkable result.
Going into the new year, we were also pleased
to inform our customers that in 2024 we will be
ready to offer a new white cement product named
D-Carb® which will have a 15% lower CO
2
footprint
compared to our existing white cement.
Historic day in the name of Carbon Capture
The third track in our climate plan is to launch a
large-scale Carbon Capture and Storage (CCS) fa-
cility. Last year, we announced a number of positive
stories including the news that Aalborg Portland
has joined the Greenport Scandinavia consortium,
which is one of the most ambitious projects in
Northern Europe. The goal is to establish a hub at
the Port of Hirtshals for import and shipment of
captured CO
2
.
We also announced that Aalborg Portland and Fide-
lis New Energy had signed a letter of intent related
to deliveries of more than 400,000 tonnes of CO
2
from Aalborg Portland to the Norne Carbon Storage
in Aalborg through a direct pipeline connection.
Both initiatives play an important role in creating a
large-scale CCS facility at our cement plant by 2030.
The 27 November 2023 marked a historic day in
Aalborg Portland’s 135-year history. On that day,
His Majesty The King of Denmark inaugurated a
new pilot facility for carbon capture at Aalborg
Portland. The inauguration was attended by many
distinguished guests and partners including the
European Commissioner for Energy and the Danish
Minister for Climate, Energy and Utilities. The car-
bon capture pilot facility is operating at our plant
as part of the EU Horizon 2020-project ConsenCUS.
Our progress on ESG
In addition to our progress on decarbonising our
operations, we have launched many new initiatives
across the entire ESG agenda.
These include graduate, talent and leadership
development programs, leadership conferences, en-
gagement surveys, and various social events. It also
includes new initiatives on health and safety, as well
as activities to reinforce our bond to local commu-
nities. We hope you will take a closer look at our ESG
Report 2023 to learn more about our many initiatives.
Events after the balance sheet date
No events have occurred subsequent to the ba-
lance sheet date through to this date which would
influence the evaluation of this annual report.
Expectations to 2024
Overall, sales volumes are expected to decline
further in Denmark and in our export markets as a
consequence of the global economic situation.
The macroeconomic scenario continues to be
characterised by strong uncertainty, with risks of
economic downturns linked to geopolitical tensi-
ons and continued restrictive financial conditions.
For the year 2024, the Company expects to achieve
revenue of approximately EUR 350m and earnings
(EBIT) in the range of EUR 90m-95m.
These expectations are based on known and
generally expected economic conditions for global
growth and do not consider any intensified geopo-
litical tensions, any deterioration in the structural
conditions of competition, or any new increases in
energy and logistical costs.
As the expectations described above are based on a
number of preconditions and assumptions that are
beyond management’s control, the actual earnings
may deviate significantly from the expectations
expressed in this annual report.
Søren Holm Christensen, CEO
Henrik Jeppesen, CFO
Peter Birkegaard, Managing Director
8 Annual Report 2023 Aalborg Portland A/S
MANAGEMENT’S REVIEW FINANCIAL STATEMENTS SIGNATURES COMPANY INFORMATION
Aalborg Portland in brief
1889
FOUNDED
Aalborg Portland was founded
in 1889 and is the only cement
manufacturer in Denmark
AT A GLANCE
850
PEOPLE
Aalborg Portland directly employs more
than 350 people in addition to which around
500 people are employed elsewhere as
contractors and subcontractors
18
COUNTRIES
Aalborg Portland has been part of
Cementir Group since 2004. Cementir
is a multinational Group operating in
18 countries
3.0
MILLION TONNES CEMENT
Aalborg Portland was founded in 1889 and is the
only cement manufacturer in Denmark, with
its cement plant situated in Rørdal, at the east
end of Aalborg. 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 has an annual
production capacity around 3
million tonnes of cement
Aalborg Portland A/S Annual Report 2023 9
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, boa-
sting 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 Denmark and abroad, making national and
global transport of the finished cement products possible.
Aalborg Portland employs around 360 people, with an addi-
tional 500 contractors and subcontractors working on-site
daily or nearby to support the plant’s many activities. Aal-
borg Portland is therefore one of the largest contributors to
the industrial workforce of the North Denmark Region.
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 ho-
mes, commercial buildings, public schools and hospitals,
our cement was also used for many iconic national and
international projects.
These iconic projects include Denmark’s 18-kilometre-long
Great Belt Bridge, London’s Olympic City and New York’s
famous Manhattan 432 Park Avenue skyscraper. For more in-
formation 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 multina-
tional 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 of the Euronext STAR Milan segment.
For more information on Cementir Group, see
www.cementirholding.com, and for Aalborg Portland Hol-
ding, see www.aalborgportlandholding.com.
Aalborg Portland history
1889
1930
1936
1975
Aalborg Portland founded in 1889
by Consul Hans Holm and Engineer
Frederik Læssøe Smidth.
The American rotary kiln, invented by
Aalborg Portland’s Poul Larsen, built
for the first time in Europe, as two new
rotary kilns are installed at the Rørdal
factory. The production capacity is
significantly upgraded.
Aalborg Portland starts burning white
cement clinker for white cement.
1899
10 Annual Report 2023 Aalborg Portland A/S
MANAGEMENT’S REVIEW FINANCIAL STATEMENTS SIGNATURES COMPANY INFORMATION
Engineer and director Gunnar Larsen
builds a civil airport to quickly get back
and forth to his home in Gl. Rye. Larsen
offers Aalborg Municipality to start
flights to Copenhagen, which would
later become the basis for Denmark’s
first domestic flight route.
Aalborg Portland was prepared to stop the
production of white cement due to the ener-
gy crisis. However, orders suddenly began to
pour in because all other cement factories
had decided not to produce white cement.
This contributed to the company becoming
world-renowned for its white cement.
1990
2019
2023
Aalborg Portland builds a heat recovery
plant to deliver district heating to Aal-
borg Municipality. Today, up to a third of
the homes in Aalborg get their heating
from Aalborg Portland.
Aalborg Portland is acquired by the Italian
cement group, Cementir Group.
Aalborg Portland celebrates its 130th
anniversary and presents its first
2030 roadmap for decarbonisation
towards 2030.
Aalborg Portland updates its 2030
roadmap with an ambition to lower
emissions by 73%.
His Majesty the King of Denmark
inaugurates Aalborg Portland’s new pilot
plant for carbon capture.
2004
2022
Aalborg Portland A/S Annual Report 2023 11
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12 Annual Report 2023 Aalborg Portland A/S
MANAGEMENT’S REVIEW FINANCIAL STATEMENTS SIGNATURES COMPANY INFORMATION
Reporting in accordance with Danish accounting legislation
Regarding the mandatory statement on corporate social
responsibility, cf. section 99(a) of the Danish Financial
Statements Act, reference is made to “Sustainability
Report 2023” published by the Group’s owners Cementir
Holding N.V., Netherlands. The statement is available at
sustainability-report-and-documents.
Senior Management 2023
Total members 3
Underrepresented gender in % 0
Target in per cent 33.3
Target year 2026
Other Management levels 2023
Total members 12
Underrepresented gender in % 16.7
Target in per cent 30.8
Target year 2027
In Aalborg Portland, diversity is not limited to geography
but is approached broadly based on a wide range of
qualification and competence requirements. Diversity is
also important in terms of seniority, educational backg-
round, age, gender, ethnicity, religion, sexual orientation,
and disability. The Company acknowledges that diversity
depends on inclusion but also that both diversity and
inclusion challenges are unique for each of the Group’s
teams and locations. Therefore, efforts are made
at all locations to increase diversity, and locally in
Denmark, work continues in relation to e.g. conscious/
unconscious bias in connection with employment and
recruitments.
In accordance with the Danish rules for large compa-
nies with operations relating to i.a. the extraction of
mineral deposits, cf. section 99(c) of the Danish Finan-
cial Statements Act, the Group explains its payments
to authorities in a note to the consolidated financial
statements. The payments relate in particular to direct
and indirect taxes.
In accordance with the Danish rules for large companies,
cf. section 99(d) of the Danish Financial Statements
Act, the Parent Company of Aalborg Portland, Aalborg
Portland Holding, has issued a Policy on Data Ethics.
The policy addresses the data ethics principles applied
by the Aalborg Portland Holding Group, and describes
the approach to data processing covering all data
types. This includes e.g. the use of new technologies
and responsible use of data, including personal data
protection (GDPR). Data Ethics is an integral part of
the compliance programme of the Aalborg Portland
Holding Group and Group Management has the overall
responsibility for compliance with the Policy on Data
Ethics. Implementation of the data ethics policy at the
operational level is anchored in Group IT. In 2023, the
Aalborg Portland Holding Group continued the work on
data ethics issues in accordance with the policy. The
policy is reviewed on a yearly basis and no changes
were made in 2023. The policy is available at https://
Aalborg Portland A/S Annual Report 2023 13
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14 Annual Report 2023 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
2023
2022
2022
2023 2023
2022
2023
20222022
2021 20212021
2019 20192019
2021 20212021
2019 20192019
2020 20202020
2020 2020
20232023
2020
374.0
368.6
17%
74.2
78.3 15%
112.7
135.9
37%-86.8
92.3 43%
287.1 13%57.3
57.2
82.2268.8 15%
258.8
13%
-80.8
92.4 34%-8.9
106.4
43%
42%-112.8
-87.8
368.6 15%78.3
135.9 42%-112.8
Aalborg Portland A/S Annual Report 2023 15
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Five-year overview
For definition of financial ratios, see page 41.
Euro ’000
2019 2020 2021 2022 2023
INCOME STATEMENT
Revenue 258.8 268.8 287.1 374.0 368.6
Earnings before depreciation/amortisation. impairment losses. provisions. interest and tax (EBITDA) 92.4 106.4 92.3 112.7 135.9
EBITDA ratio 35.7% 39.6% 32.1% 30.1% 36.9%
Earnings before interest and tax (EBIT) 67.0 80.3 65.6 85.5 108.0
EBIT ratio 25.9% 29.9% 22.9% 22.9% 29.3%
Earnings before tax (EBT) 66.4 78.6 63.6 82.5 108.9
Profit for the year 52.6 61.6 46.4 65.7 85.1
CASH FLOWS
Cash flows from operating activities (CFFO) 72.9 100.2 78.8 110.3 106.9
Cash flows from investing activities (CFFI) * -15.7 -18.0 -21.5 -36.1 -28.6
Free cash flow (FCF) 57.2 82.2 57.3 74.2 78.3
Hereof investments in intangible assets and property. plant and equipment (excl. assets acquired in acquisitions) -16.3 -18.1 -22.5 0.0 0.0
BALANCE SHEET
Total assets 440.9 495.0 467.5 538.0 571.0
Shareholders’ equity 150.2 212.8 198.6 199.2 240.0
Net interest-bearing debt (NIBD) -8.9 -87.8 -80.8 -86.8 -112.8
Working capital (WC) -3.1 -7.1 -15.6 -27.0 -9.9
FINANCIAL RATIOS
Including non-controlling interests’ share
Return on equity 15% 13% 17% 15% 15%
Equity ratio 34% 43% 43% 37% 42%
Return on capital employed (ROCE) 11% 11% 10% 10% 11%
NIBD/EBITDA factor -0.1 -0.8 -0.8 -0.8 -0.8
Number of employees at 31 December 341 333 350 352 360
16 Annual Report 2023 Aalborg Portland A/S
MANAGEMENT’S REVIEW FINANCIAL STATEMENTS SIGNATURES COMPANY INFORMATION
Financial review
PROFIT AND LOSS ACCOUNT
Revenue in 2023 amounted to EUR 368.6m (2022: EUR 374.0m).
Sales in Denmark decreased while the European export markets were on par
with 2022.
Operating profit before depreciation (EBITDA ratio) reached 36.9% (2022:
30.1%). Satisfactory improvement of financial results in line with our long-
term strategic ambitions to strengthen our financial position and robust-
ness to be able to finance the big investments which are required to ensure
our sustainable transition.
Earnings before interest and tax (EBIT) amounted to EUR 108.0m (2022: EUR
85.5m).
Tax on profit for the year amounted to EUR 23.9m (2022: EUR 16.7m), net
profit for the year being EUR 85.1m (2022: EUR 65.7m).
CASH FLOWS
Cash flow from operating activities (CFFO) was EUR 106.9m for 2023 (2022:
EUR 110.3m).
Cash flow from investment activities (CFFI) amounted to EUR -28.6m (2022:
EUR -36.1m).
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 in addition to having long-
term mortgage loans of EUR 120m with an average life of 8 years.
BALANCE SHEET
Non-current assets amounted to EUR 203.1m at 31 December 2023 (2022:
EUR 193.5m), of which EUR 158.3m (2022: EUR 148.7m) was related to pro-
perty, plant and equipment and EUR 19.5m (2022: EUR 17.1m) was related to
right-of-use assets.
Current assets amounted to EUR 367.9m (2022: EUR 344.6m) and were
mainly related to inventories and receivables.
SHAREHOLDERS’ EQUITY
Shareholders’ equity amounted to EUR 240.0m at the end of 2023 against
EUR 199.3m the year before. The increase in shareholders’ equity was due to
the profit for the year less the dividend paid to Aalborg Portland Holding A/S.
Equity ratio was 42% at the end of 2023 (37% in 2022).
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 targets. Keeping down working capital saves interest expenses and
frees up resources for investment, etc. Furthermore, as stated, low working
capital contributes to improving the return on capital employed (ROCE).
Working capital at end 2023 amounted to EUR -9.9m (EUR -27.0m in 2022).
SUBSIDIARIES
Poland
The Polish market declined in 2023 due to the macroeconomic situation and
the competitive landscape intensified resulting in a 28% decline of our sales
volume. Despite the negative volume development, we were able to partly
mitigate the financial impact and our EBIT declined by 10% compared to
2022, with the main saving deriving from our logistical set-up.
Iceland
The Icelandic market remained strong during 2023. However, we lost market
share due to increased competition from other importers, resulting in a 15%
decline of our sales volume compared to 2022. The decline in sales volume
had a negative impact on EBIT, as we were unable to compensate for the
lost volume. The subsidiary’s EBIT declined by 55% compared to 2022,
however still ended up at an acceptable level.
France
For 2023, France was expected to continue to see challenging market
conditi ons and negative developments from the previous year due to the
macro-economic situation, causing competition to intensify. Sales volumes
declined by 18% compared to 2022, but profitability increased, mainly due to
price management, resulting in an increase of EBIT compared to 2022.
Belgium
Benelux was expected to continue to see a declining level of activity and
increasing competition in 2023 due to the macroeconomic situation. Sales
volumes declined 16% compared to 2022, but profitability improved due to
optimised logistical costs and price management, resulting in a 16% increase
in EBIT compared to 2022.
Aalborg Portland A/S Annual Report 2023 17
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 France S.A.S.
100%
Aalborg Portland Belgium S.A.
100%*
*One share owned by Aalborg Portland Holding A/S
Group chart
18 Annual Report 2023 Aalborg Portland A/S
MANAGEMENT’S REVIEW FINANCIAL STATEMENTS SIGNATURES COMPANY INFORMATION
Risks and uncertainties
INTERNAL CONTROL AND RISK MANAGEMENT SYSTEM
Aalborg Portland is integrated with the Cementir Group’s Internal Control
and Risk Management System, defined as the set of tools, organisational
structure, procedures and company rules to guarantee, through an adequate
process of identification, measurement, management and monitoring of the
main risks, correct and consistent business management with objectives
set in terms of:
• compliance with laws and regulations;
• safeguarding of corporate assets;
• operating activity effectiveness and efficiency;
• reporting accuracy and completeness.
The Internal Control and Risk Management System adopts a ”top-down”
and ”risk-based” approach that starts from the definition of the Cementir
Group’s Industrial Plan. It ensures that the main risks are identified, asses-
sed and monitored taking into account each business unit, to create a fully
integrated risk management process. Risks are assessed with quantitative
and qualitative tools considering both the probability of occurrence and the
impacts that would be generated in a given time horizon if the risk were
to occur. It also ensures that all necessary measures are taken to control
risks that could threaten the Group’s assets, its ability to generate profits or
achieve its objectives.
Roles and responsibilities in risk management have been defined starting
from the Company’s Board of Directors, which defines strategy, policy and
risk appetite, supported by the Audit Committee and the Sustainability
Committee. In addition, management teams from the Group companies
are involved, with responsibility for risk management within their area of
expertise.
Below is a summary of the people and bodies involved and their
responsibilities:
• The Board of Directors plays the central role, defining the Company’s
risk appetite, the nature and level of risk. In addition, it carries out an
assessment of the risks related to climate change ensuring the constant
compatibility of management and strategic objectives.
• The Cementir Group’s Audit Committee and the Sustainability Committee
(corporate bodies relevant in the risk definition process) support the
Board of Directors, subject to a favourable opinion, in the definition and
management of risks;
• CEO & Chairman: implements the general guidelines of the Board of
Directors, ensuring the identification, management and monitoring of the
main risks;
• Risk owners, or the first level of control, are primarily responsible for
internal control and risk management activities;
• Finally, Risk Management and Internal Audit are the main responsible for
the internal control and risk management system (second and third level
of control). They are responsible for verifying that the Internal Control
and Risk Management System is functioning and adequate with respect
to the size and operations of the Group, verifying, in particular, that the
Management has identified the main risks, that they have been evaluated
in a consistent manner and that the appropriate mitigation actions have
been defined and implemented.
The Cementir Group’s Internal Control and Risk Management System is
integrated into the Group’s organisational, administrative, accounting and
governance structure and has been prepared on the basis of the principles
laid down by the Enterprise Risk Management - Integrated Framework, an
international standard developed by the Committee of Sponsoring Organi-
zations of the Treadway Commission (COSO Report), also ensuring greater
detail in the identification of the risks of the companies and Group and
integration with the results of the Audit activities. The methodology followed
involves an iterative process consisting of the following steps:
• Risk identification: the process starts with the definition of the Industrial
Plan and focuses on the main risks that could compromise the achieve-
ment of the Group’s objectives;
• Risk assessment: for each identified risk, management gives an inherent
risk assessment (in the absence of controls/mitigation actions), in terms
of probability and impact during the horizon of the Industrial Plan, using a
5-level assessment system (scoring):
› Impact: scale from 1 (Negligible) to 5 (Extreme);
› Probability: scale from 1 (Rare) to 5 (More than Likely)
• With regard to impact, three parameters are considered: economic (quan-
titative), operational (qualitative), reputational (qualitative). Management
at Region and Group level assesses the potential impacts and likelihood
of major risks that could have a material adverse effect on the company’s
current or future operations. For sustainability and climate-related risks,
the time horizon was extended to a long-term view for the analysis of the
various threats that could jeopardise the success of the “10-year Roadmap
to Sustainability”. For more details, see the 2023 Non-Financial Statement;
• Identification and assessment of the adequacy of the existing principals:
for each identified risk, all the controls/actions currently in place for risk
mitigation are identified with the management;
• Residual Risk Assessment: taking into account the individual controls
for each risk and the relative adequacy, the residual risk is calculated by
applying a uniform calculation methodology to all Group companies;
• Identification of further actions: in the event that the residual risk is
higher than the predefined level of risk appetite, further actions are
agreed with management to mitigate the risk and contain it within
acceptable levels. The initiatives are taken promptly and within budget
limits, to effectively contribute to risk mitigation;
• Risk mitigation: mitigation strategies are defined with specific action
plans for key risks;
• Reporting: reports are prepared at the company and Group level, showing
the main risks and initiatives taken by management to reduce the risks to
acceptable levels;
• Monitoring: the following are reviewed periodically: existing risk as-
sessments, assessment parameters, and new risks can be identified if
necessary.
The model, as described, subject to further and future updates, aims to
provide support for the decision-making and operational processes of the
company management, so as to reduce the possibility that specific events
could compromise the Group’s ordinary operations or the achievement of its
strategic objectives.
To this end, the risk appetite level adopted in relation to strategic risks is
consistent with the vision of creating value, while always respecting the
environment and promoting integration with local communities. In relation
Aalborg Portland A/S Annual Report 2023 19
MANAGEMENT’S REVIEW FINANCIAL STATEMENTS SIGNATURES COMPANY INFORMATION
to operational risks, the risk appetite level is defined
on the basis of the effectiveness and efficiency
targets set by the management.
Provisions for compliance and financial repor-
ting are different. The Group does not accept an
assumption of non-compliance risk for laws and
regulations (including those relating to safety), and
of possible alterations to the integrity of financial
reporting.
The Cementir Group’s Internal Control and Risk
Management System is integrated with the Group’s
Sustainability Strategy. Starting from 2021 the
Cementir Group launched a project to implement
the recommendations of the TCFD (Task Force on
Climate-Related Financial Disclosure) committing
to be transparent on risks and opportunities related
to climate change. The identification, assessment
and effective management of risks and opportuni-
ties related to climate change are fully integrated
into the Group’s risk management process. To
promote and improve its climate change disclosure,
in 2022, the Group engaged Standard & Poor’s
(S&P) to assess physical and transitional climate
risks and develop scenario analyses to support the
implementation of the TCFD guidelines. The ana-
lysis carried out by S&P showed that the Cementir
Group scored 100% on the overall assessment of
the eleven recommendations of the TCFD, which
represents a complete and transparent level of
disclosure achieved. Furthermore, the Group is in-
tegrating the guidelines published by the European
Union “EU Taxonomy Regulation”, which together
with the TCFD constitute the reference frameworks.
For more details, see the paragraph ”Main risks to
which the group is exposed”.
In relation to accounting and financial reporting, the
existing Internal Control System ensures its accura-
cy and completeness through constantly updated
administrative and accounting procedures.
Furthermore, as part of the compliance activities
with the COSO structure, during the year, the Inter-
nal Audit function carries out audit activities on the
aforementioned procedures to ascertain that the
provided key controls are being correctly applied by
the involved company structures. The assessment
of the internal control system on financial reporting
provided for by Cementir Group procedures was
carried out based on this activity.
On the basis of the activity carried out by the Inter-
nal Audit department and the related results, the
Audit Committee assessed the Internal Control and
Risk Management System as adequate, effective
and appropriate for dealing with business, operatio-
nal, environmental, financial and compliance risks.
Starting from October 2023, the Group has launched
the strategic initiative for the digitalization of Risk
Management aims to enhance organizational resili-
ence by leveraging advanced technology solutions,
streamlining data-driven risk assessments, and
implementing real-time monitoring capabilities,
fostering a proactive and agile approach to risk
mitigation across all business functions. The digi-
talization of Risk Management will commence with
the updating of the model during 2024, ensuring our
risk management practices are at the forefront of
industry standards.
20 Annual Report 2023 Aalborg Portland A/S
MANAGEMENT’S REVIEW FINANCIAL STATEMENTS SIGNATURES COMPANY INFORMATION
Financial
statements
21 Income statement
21 Statement of
comprehensive income
22 Balance sheet
23 Statement of
shareholders’ equity
24 Cash flow statement
25 Notes
IN THIS CHAPTER
Aalborg Portland A/S Annual Report 2023 21
MANAGEMENT’S REVIEW FINANCIAL STATEMENTS SIGNATURES COMPANY INFORMATION
Euro ’000
NOTE
2023 2022
Revenue
1
Cost of sales
2+3+4+9
Gross profit 174,657 157,914
Sales and distribution costs
4+15
Administrative expenses
4+5
Profit or loss from ordinary operating activities 110.619 84.752
Other operating income
6
Other operating costs
6
Earnings before interest and tax (EBIT) 107,964 85,450
Financial income
7
Financial expenses
7
Earnings before tax (EBT) 108,928 82,452
Tax on profit for the year
8
Profit for the year 85,075 65,743
Attributable to:
Non-controlling interests 0 0
Shareholders in Aalborg Portland A/S 85,075 65,743
To be distributed as follows:
Proposed dividends 80,000 45,000
Retained earnings 5,075 20,743
Euro ’000
NOTE
2023 2022
Profit for the year 85,075 65,743
Items that can be reclassified to the income statement:
Exchange rate adjustments on translation of foreign currency -406 3
Changes in fair value of financial instruments 1,063 -1,074
Tax 0 2
Other comprehensive income after tax 657 -1,069
Total comprehensive income 85,732 64,674
Income statement Statement of comprehensive income
22 Annual Report 2023 Aalborg Portland A/S
MANAGEMENT’S REVIEW FINANCIAL STATEMENTS SIGNATURES COMPANY INFORMATION
Balance sheet
Euro ’000
NOTE
2023 2022
ASSETS
Goodwill 2,332 2,337
Other intangible assets 14,199 17,278
Intangible assets in development 1,067 277
Intangible assets
10
Land and buildings 18,851 20,398
Plant and machinery 100,553 109,648
Property, plant and equipment in development 38,866 18,659
Right-of-use assets 19,522 17,088
Property, plant and equipment
11
Investments in subsidiaries 7,614 7,631
Other non-current assets 140 141
Other non-current assets
12
Total non-current assets 203,144 193,457
Inventories
14
Trade receivables
15
Amounts owed by Group enterprises 288.037 257.473
Amounts owed by related parties 13 0
Other receivables
15
Prepayments
15
Receivables 292,650 282,899
Cash and cash equivalents 827 1,868
Total current assets 367,928 344,577
TOTAL ASSETS 571,072 538,034
Euro ’000
NOTE
2023 2022
EQUITY AND LIABILITIES
Shareholder's equity
Share capital 13,404 13,404
Hedge reserve -2 -1,065
Retained earnings 146,586 141,917
Proposed dividends 80,000 45,000
Total shareholders' equity 239,988 199,256
Liabilities
Deferred tax liabilities
13
Provisions
16
Credit institutions, etc.
17+19
Non-current liabilities 148,119 157,810
Credit institutions, etc.
17+19
Trade payables 81,284 109,388
Amounts owed to Group enterprises 39,137 18,648
Provisions
16
Joint taxation contribution payables 25,694 16,892
Other payables
18
Current liabilities 182,965 180,968
Total liabilities 331,084 338,778
TOTAL EQUITY AND LIABILITIES 571,072 538,034
Aalborg Portland A/S Annual Report 2023 23
MANAGEMENT’S REVIEW FINANCIAL STATEMENTS SIGNATURES COMPANY INFORMATION
Statement of shareholders’ equity
Euro ’000
NOTE
Share capital Hedge reserve Retained earnings Proposed dividends Total equity
Shareholders’ equity at 1 January 2023 13,404 -1,065 141,917 45,000 199,256
Effect of translation to presentation currency 0 0 -406 0 -406
Changes in fair value of financial instruments 0 1,063 0 1,063
Profit for the year (total comprehensive income) 0 0 5,075 80,000 85,075
Extraordinary paid dividend 0 0 0 -45,000 -45,000
Shareholders’ equity at 31 December 2023 13,404 -2 146,586 80,000 239,988
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
Extraordinary 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
The share capital in 2023 and 2022 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.
24 Annual Report 2023 Aalborg Portland A/S
MANAGEMENT’S REVIEW FINANCIAL STATEMENTS SIGNATURES COMPANY INFORMATION
Cash flow statement
Euro ’000
NOTE
2023 2022
Profit for the period 85,075 65,743
Reversal of amortisation and depreciation 27,781 27,043
Reversal of revaluation / impairment losses 0 0
Net financial income / expense -963 2,999
Gains/losses on disposals 0 42
Income taxes 23,853 16,709
Change in provisions (current and non-current) 23 -17
Operating cash flows before changes in working capital 135,769 112,519
Increase / decrease inventories -14,641 -14,218
Increase / decrease trade receivables 26,632 -12,027
Increase / decrease trade payables -29,091 37,706
Change in non-current/current other assets/liabilities 3,246 5,608
Change in current and deferred taxes -102 9
Operating cash flows 121,813 129,597
Dividends received 1,012 1,281
Interests received 6,906 787
Interests paid -7,513 -3,026
Other income collected/expenses paid -477 -1,729
Income taxes paid -14,880 -16,572
Cash flow from operating activities 106,861 110,338
Investments in intangible assets -1,067 -8,884
Investments in property, plant and equipment and investment property -29,831 -27,167
Proceeds from sale of property, plant and equipment 107 -42
Other variances investment assets 2,180 -24
Cash from investing activities -28,611 -36,117
Euro ’000
NOTE
2023 2022
Proceeds from loans and borrowings 0 50,240
Repayment of borrowings -12,371 -17,351
Payment of lease liabilities -7,208 -6,920
Change in current financial liabilities 1,281 -1,389
Movement in cashpool -16,014 -35,012
Dividend distributed -45,030 -64,018
Other variances of equity 55 16
Cash flow from financing activities -79,287 -74,434
Net change in cash and cash equivalent -1,037 -213
Cash and cash equivalent exchange rate effect -4 1
Cash and cash equivalent opening balance 1,868 2,080
Cash and cash equivalent closing 827 1,868
Aalborg Portland A/S Annual Report 2023 25
MANAGEMENT’S REVIEW FINANCIAL STATEMENTS SIGNATURES COMPANY INFORMATION
Notes
1. Revenue
Euro ’000
NOTE
2023 2022
Split by product
Sale of cement 347,187 362,145
Other sales* 21,370 11,860
368,557 374,005
Split by geography
Denmark 253,436 239,554
Other Europe 113,232 132,481
Other 1,889 1,970
368,557 374,005
All revenue derives from contracts.
*Other sales mainly include sale of heat etc.
2. Cost of sales
Cost of sales amounts to EUR 193.9m (2022: EUR 216.1m). Hereof direct staff costs amount to EUR 21.9m (2022: EUR
20.6m) and use of raw materials amounts to EUR 27.9m (2022: EUR 34.9m).
3. Research and development costs
Euro ’000
NOTE
2023 2022
Research and development costs paid 2,211 2,106
2,211 2,106
4. Staff costs
Euro ’000
NOTE
2023 2022
Wages and salaries and other remuneration 30,228 29,182
Pension costs, defined contribution scheme 2,678 2,228
Social security costs 421 479
33,327 31,889
Number of employees at 31 December 360 352
Average number of full-time employees 357 354
Remuneration of the Board of Directors, the Management and other senior executives
Salaries and remunerations 1,915 1,703
Pension contributions 143 118
2,058 1,821
Hereof Board of Directors and Management 1,184 1,102
Remuneration of the Board of Directors represents EUR 99k in 2023 (2022: 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
2023 2022
Total fees to PwC are specified as follows:
Statutory audit 127 100
Other services 00
127 100
26 Annual Report 2023 Aalborg Portland A/S
MANAGEMENT’S REVIEW FINANCIAL STATEMENTS SIGNATURES COMPANY INFORMATION
6. Other operating income and other operating costs
Euro ’000
NOTE
2023 2022
Other operating income
Rent income 303 740
Profit on sale of property, plant and equipment 0 -42
Other income 10 0
313 698
7. Financial income and expenses
Euro ’000
NOTE
2023 2022
Financial income
Interest, cash funds etc. 14 12
Interest, Group enterprises 6,955 887
Dividends received from subsidiaries 1,012 1,281
Exchange rate adjustments 2,260 2,295
10,241 4,475
Interest on financial assets measured at amortised cost 6,969 899
Financial expenses
Interest, credit institutions etc. 6,604 2,229
Interest, Group enterprises 1,521 1,162
Exchange rate adjustments 1,152 4,082
9,277 7,473
Interest on financial obligations measured at amortised cost 8,125 3,391
8. Income tax
Euro ’000
NOTE
2023 2022
Income tax
Current tax on the profit for the year/joint taxation contribution 25,932 17,148
Deferred tax adjustment -1,825 785
Other adjustments, including previous years -254 -1,224
23,853 16,709
Taxes paid 14,880 16,572
Euro ’000
NOTE
2023 2022
Reconciliation of tax rate
Tax according to Danish tax rate 22,0% 24,144 18,319
Dividends received from subsidiaries and profits from sales -223 -282
Non-taxable income and non-deductible expenses 185 -104
Other, including adjustments previous years -253 -1,224
23,853 16,709
Applicable tax rate for the year 21.9% 20,3%
Income tax recognised directly as other comprehensive income 0 0
Total income tax 23,853 16,709
Aalborg Portland A/S Annual Report 2023 27
MANAGEMENT’S REVIEW FINANCIAL STATEMENTS SIGNATURES COMPANY INFORMATION
9. Environmental taxes
Euro ’000
NOTE
2023 2022
The Company has paid the following direct environmental taxes:
Sulphur 447 595
NOx 1,720 1,928
Electricity 150 178
Waste 149 156
Energy 83 89
Raw materials 944 1,008
Diesel and fuel oil 11
3,494 3,955
10. Intangible assets
Euro ’000
Goodwill
Other
intangible
assets
Intangible
assets in
development Total
Cost at 1 January 2023 2,337 37,186 277 39,800
Exchange rate adjustments -8 -81 -1 -90
Additions 0 0 1,067 1,067
Other adjustments/reclassifications 0 -1,904 -276 -2,180
Cost at 31 December 2023 2,329 35,201 1,067 38,597
Amortisation and impairment at 1 January 2023 0 19,908 0 19,908
Exchange rate adjustments -3 -44 0 -47
Amortisation for the year 0 1,136 0 1,136
Other adjustments/reclassifications 0 2 0 2
Amortisation and impairment at 31 December 2023 -3 21,002 0 20,999
Carrying amount at 31 December 2023 2,332 14,199 1,067 17,598
10. Intangible assets (continued)
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
Amortisation during the year is included in the following items:
Cost of sales 42 40
Sales and distribution costs 506 522
Administrative expenses 588 745
1,136 1,307
Other intangible assets include software licenses (SAP R/3), quarry rights, CO
2
quotas, customer rights 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 (2022: EUR 0.0m).
Internally generated intangible assets, mainly regarding SAP implementation, amount to EUR 0.1m (2022: EUR 0.3m).
Goodwill is related to cement activity. Due to strong cash flow there is no indication of impairment.
28 Annual Report 2023 Aalborg Portland A/S
MANAGEMENT’S REVIEW FINANCIAL STATEMENTS SIGNATURES COMPANY INFORMATION
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 2023 112,748 514,413 18,659 39,876 685,696
Exchange rate adjustments -247 -1,133 -46 -87 -1,513
Additions 0 5,710 24,121 9,307 39,138
Disposals -107 -27 0 -344 -478
Reclassifications 0 3,868 -3,868 0 0
Cost at 31 December 2023 112,394 522,831 38,866 48,752 722,843
Depreciation and impair-
ment at 1 January 2023
92,350 404,765 0 22,788 519,903
Exchange rate adjustments -202 -894 0 -51 -1,147
Reversed depreciation on
disposals
0 -27 0 -321 -348
Depreciation for the year 1,395 18,434 0 6,814 26,643
Other adjustments/
reclassifications
00 0 00
Depreciation and impairment
at 31 December 2023
93,543 422,278 0 29,230 545,051
Carrying amount at
31 December 2023
18,851 100,553 38,866 19,522 177,792
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 2022 112,749 484,575 21,325 37,169 655,818
Exchange rate adjustments -1 6 -1 0 4
Change in accounting policy,
leases
00 03636
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
00 01313
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
Aalborg Portland A/S Annual Report 2023 29
MANAGEMENT’S REVIEW FINANCIAL STATEMENTS SIGNATURES COMPANY INFORMATION
11. Property, plant and equipment (continued)
Euro ’000
NOTE
2023 2022
Depreciation during the year is included in the following items:
Cost of sales 20,091 19,351
Sales and distribution costs 6,133 5,983
Administrative expenses 419 402
26,643 25,736
Amounts recognised in the income statement regarding leases:
Depreciation, plant and machinery 6,814 6,582
Interest on lease liabilities 477 365
Short-term leases 83 131
Lease of low value assets 0 0
7,374 7,078
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 2023 7,631 141 7,772
Exchange rate adjustments -17 -1 -18
Cost at 31 December 2023 7,614 140 7,754
Carrying amount at 31 December 2023 7,614 140 7,754
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
Other non-current assets mainly relate to deposits and loans in both years.
30 Annual Report 2023 Aalborg Portland A/S
MANAGEMENT’S REVIEW FINANCIAL STATEMENTS SIGNATURES COMPANY INFORMATION
13. Deferred tax assets and deferred tax liabilities
Euro ’000
NOTE
2023 2022
Change in deferred tax in the year
Deferred tax at 1 January 24,824 24,070
Exchange rate adjustments -55 0
Adjustments, previous years via income statement 1,956 -30
Adjustment on hedge accounting 0 -2
Movements via income statement -1,825 786
Deferred tax liabilities at 31 December, net 24,900 24,824
Deferred tax is presented in the balance sheet as follows:
Deferred tax liabilities 24,900 24,824
Deferred tax liabilities at 31 December, net 24,900 24,824
14. Inventories
Euro ’000
NOTE
2023 2022
Raw materials and consumables 39,731 39,889
Work in progress 20,660 11,034
Finished goods 14,060 8,887
Inventories at 31 December 74,451 59,810
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 1.5m (2022: EUR 2.0m). Write-down recognised in the income
statement is EUR 0.1 (2022: EUR 0.1m).
15. Trade receivables, other receivables and prepayments
Euro ’000
NOTE
2023 2022
Development in provisions for impairment on trade receivables:
Provision for impairment losses at 1 January 0 5
Provision for impairment in the year 0 0
Realised in the year 0 -5
Provision for impairment at 31 December 0 0
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.
Aalborg Portland A/S Annual Report 2023 31
MANAGEMENT’S REVIEW FINANCIAL STATEMENTS SIGNATURES COMPANY INFORMATION
16. Provisions
Euro ’000
NOTE
2023 2022
Provisions at 1 January 3,654 3,669
Exchange rate adjustment -9 0
Additions in the year 114 151
Additions from acquisition of shares in CCB 1 1
Used in the year -74 -167
Reversal -10 0
Provisions at 31 December 3,676 3,654
Recognised in the balance sheet as follows:
Stated as non-current liabilities 3,629 3,570
Stated as current liabilities 47 84
3,676 3,654
Maturities for other provisions are expected to be:
Falling due within one year 47 85
Falling due between one and five years 537 336
Falling due after more than five years 3,092 3,233
3,676 3,654
Provisions mainly include re-establishment of chalk, gravel and clay pits at EUR 1.9m (2022: EUR 1.8m), demolition
liabilities for buildings and terminal on rented land at EUR 1.8m (2022: EUR 1.8m) while other provisions amount to EUR
0.0m (2022: EUR 0.1m).
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 2024.
17. Credit institutions and other borrowings
Bank borrowings and credits in the Company at 31 December:
Euro ’000
Year of
maturity
Fixed/
variable
Carrying
amount
2023
Carrying
amount
2022
Mortgage loan 2037 Variable 120,241 134,352
Lease liability 2024-2036 Variable 20,342 17,724
140,583 152,076
Fair value of the mortgage loan amounts to EUR 120.2m (2022: EUR 134.4m). Other fair values do not significally
deviate from the carrying amount.
The fair value corresponds to the nominal outstanding debt.
32 Annual Report 2023 Aalborg Portland A/S
MANAGEMENT’S REVIEW FINANCIAL STATEMENTS SIGNATURES COMPANY INFORMATION
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 2023:
Mortgage loan 106,147 14,094 120,241 44,772
Lease liability 13,443 6,899 20,342 1,732
119,590 20,993 140,583 46,504
Specification of contractual cash flows
incl. interest:
Mortgage loan 130,894 19,694 150,588 56,088
Lease liability 13,851 7,145 20,996 1,835
144,745 26,839 171,584 57,923
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
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
2023 2022
Euro ’000
Carrying
amount of
mortgaged
assets
Debt
regarding
mortgaged
assets
Carrying
amount of
mortgaged
assets
Debt
regarding
mortgaged
assets
Property, plant and machinery 101,132 120,241 120,057 134,870
101,132 120,241 120,057 134,870
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 2023, contractual liabilities are EUR 0.0m (2022: 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 31.8m at 31
December 2023 (2022: EUR 6.9m). Any subsequent corrections of the taxable income subject to joint taxation could
cause a higher liability of the Company.
Aalborg Portland A/S Annual Report 2023 33
MANAGEMENT’S REVIEW FINANCIAL STATEMENTS SIGNATURES COMPANY INFORMATION
Contractual obligations
Euro ’000
NOTE
2023 2022
Guarantees
Performance guarantees 7,054 555
7,054 555
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
2023 2022
Transactions with Aalborg Portland Holding A/S.:
Intra-group management and administration agreements
and royalties
574 1,635
Financial items, net 5,350 403
Trade and financial receivables 281,864 245,202
Trade and financial payables 34,834 8,460
Transactions with other related parties:
Sale of cement and micro silica 121,260 117,126
Intercompany purchase of cement and other variable costs, net 53,344 73,218
Intercompany management, administration agreements and
shared service
2,724 3,013
Financial items, net 83 129
Trade and financial receivables 6,186 12,271
Trade and financial payables 4,303 10,188
Remunerations to the Board of Directors and the Management are presented in note 4. No losses on loans to or re-
ceivables from related parties were recognised, nor provisions made for such in 2023 or 2022. All transactions were
made on terms equivalent to arm’s length principles.
34 Annual Report 2023 Aalborg Portland A/S
MANAGEMENT’S REVIEW FINANCIAL STATEMENTS SIGNATURES COMPANY INFORMATION
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 our 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-exchange-
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 0.6m (NOK amounts to EUR 1.2m,
GBP amounts to EUR 2.3.m, PLN amounts to EUR 1.9m, USD amounts to EUR
-4.8m and SEK amounts to 0.0m), (2022: NOK amounted to EUR 0,1m, GBP
amounted to EUR 1.2m, PLN amounted to EUR 2.4m, USD amounted to EUR
-4.6m and SEK amounted to 0.0m).
Risks relating to net financing
The Company’s most important net positions at 31 December 2023 relate to
USD, SEK and NOK. If these currencies had been 10% down at 31 December
2023, the Company’s equity would have been affected negative by an ex-
change rate adjustment of EUR -0.3m (2022: negative impact of EUR -0.4m).
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
2023 would have been reduced by EUR 1.5m (2022: EUR 1.3m), 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 2023.
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 2023 or 31 December 2022.
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 2023 is EUR -120.2m (deposit),
100% thereof financed by floating rate loans. NIBD at 31 December 2022
represented EUR -134.4m (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 (2022: EUR 1.2m) and on
equity of EUR 0.9m (2022: EUR 0.8m). A declining interest level would have
had a corresponding positive impact on result and equity.
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
Aalborg Portland A/S Annual Report 2023 35
MANAGEMENT’S REVIEW FINANCIAL STATEMENTS SIGNATURES COMPANY INFORMATION
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 2023 nor in 2022 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 cust-
omers 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
warnings 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
2023 2022
Payment:
Up to 30 days 0.6 1.5
Between 30 and 90 days 0.0 0.7
More than 90 days 0.0 0.0
0.6 2.2
The historical loss percentage in the income statement is 0.0%. The Com-
pany’s trade receivables at 31 December 2023 and 31 December 2022 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 2023.
Fair value measurement
Financial instruments measured at fair value are measured on a recurring
basis and categorised into the following levels of the fair value hierarchy:
• Level 1: Observable market prices for identical instruments
• Level 2: Valuation techniques primarily based on observable prices or
traded prices for comparable instruments
• Level 3: Valuation techniques primarily based on unobservable prices
Securities and investments measured at fair value through profit/loss are
either measured at quoted prices in an active market for the same type of
instrument (level 1) or at fair value based on available data (level 3).
Hedging instruments are not traded on an active market based on quoted
prices. Measured instead of using a valuation technique, where all signifi-
cant inputs are based on observable market data; such as exchange rates,
interest rates, credit risk and volatilities (level 2).
There have been no transfers between the levels in 2023 or 2022.
36 Annual Report 2023 Aalborg Portland A/S
MANAGEMENT’S REVIEW FINANCIAL STATEMENTS SIGNATURES COMPANY INFORMATION
Specification of financial assets and obligations
Euro ’000
Carrying
value
2023
Fair value
2023
Carrying
value
2022
Fair value
2022
Loans and receivables 292.,791 292,791 283,040 283,040
Financial obligations measured at amortised cost 276,831 277,102 293,408 293,421
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.
Aalborg Portland A/S Annual Report 2023 37
MANAGEMENT’S REVIEW FINANCIAL STATEMENTS SIGNATURES COMPANY INFORMATION
25. Accounting policies
The Annual Report 2023 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 11 March 2024, the Board of Directors and the Management approved the
annual report for 2023 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 22 April 2024.
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 compa-
red 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, CO2 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 included
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
38 Annual Report 2023 Aalborg Portland A/S
MANAGEMENT’S REVIEW FINANCIAL STATEMENTS SIGNATURES COMPANY INFORMATION
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.
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:
• 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.
Aalborg Portland A/S Annual Report 2023 39
MANAGEMENT’S REVIEW FINANCIAL STATEMENTS SIGNATURES COMPANY INFORMATION
CO
2
quotas
On initial recognition, granted and acquired CO2 quotas are measured at cost.
The basis for amortisation of CO2 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 CO2 quotas, a liability
corresponding to the fair value of the CO2 quotas, which the company has to
settle, is recognised.
On disposal of CO2 quotas, the difference between carrying amount and the
selling price of excess CO2 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
40 Annual Report 2023 Aalborg Portland A/S
MANAGEMENT’S REVIEW FINANCIAL STATEMENTS SIGNATURES COMPANY INFORMATION
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 recognized 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, invest-
ment 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 expec-
ted 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.
Carrying amounts of trade receivables includes receivables subject to
factoring arrangement. Trade receivables are recognised net factored trade
receivables.
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.
Aalborg Portland A/S Annual Report 2023 41
MANAGEMENT’S REVIEW FINANCIAL STATEMENTS SIGNATURES COMPANY INFORMATION
Provisions are measured as the best estimate of the expenses required to
settle the obligation at the balance sheet date.
Financial liabilities
Amounts owed to credit institutions are recognised when raising the loan
at fair value less transaction costs. Subsequent measurement is made at
amortised cost so that the difference between the proceeds and the 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 2023, have been released. The adopted, non-effective
standards and interpretations are implemented as they become mandatory
for the Company.
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.
42 Annual Report 2023 Aalborg Portland A/S
MANAGEMENT’S REVIEW FINANCIAL STATEMENTS SIGNATURES COMPANY INFORMATION
Signatures
43 Statement by the
Board of Directors and
the Executive Board
44 Independent auditor’s report
IN THIS CHAPTER
Aalborg Portland A/S Annual Report 2023 43
MANAGEMENT’S REVIEW FINANCIAL STATEMENTS SIGNATURES COMPANY INFORMATION
BOARD OF DIRECTORS
EXECUTIVE BOARD
Statement by the Board of Directors
and the Executive Board
44 Annual Report 2023 Aalborg Portland A/S
MANAGEMENT’S REVIEW FINANCIAL STATEMENTS SIGNATURES COMPANY INFORMATION
Independent auditor’s report
Aalborg Portland A/S Annual Report 2023 45
MANAGEMENT’S REVIEW FINANCIAL STATEMENTS SIGNATURES COMPANY INFORMATION
CVR No 33 77 12 31
Company
information
47 Companies in the Group
IN THIS CHAPTER
46 Annual Report 2023 Aalborg Portland A/S
MANAGEMENT’S REVIEW FINANCIAL STATEMENTS SIGNATURES COMPANY INFORMATION
Aalborg Portland A/S Annual Report 2023 47
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
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
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
22 April 2024 at Rørdalsvej 44, 9220
Aalborg Øst
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 France S.A.S. France EUR 10 100,0%
Aalborg Portland Belgium S.A. Belgium EUR 500 100,0%
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
Jean-Fabien Criquioche, Managing Director
Aalborg Portland A/S
Rørdalsvej 44
9220 Aalborg Øst
Denmark
CVR No 36428112
www.aalborgportland.dk
Images
©LM Byg/BIG HQ (p. 1)
©Thomas Borberg/Ritzau Scanpix (p. 5)
©Mogens Holmgaard (p. 6, 13)
All other images by Aalborg Portland
unless otherwise stated
Publication
22 April 2024