Approved at the Annual General Meeting,
Conductor
Borg Automotive A/S
Funder Dalgårdsvej 12
DK-8600 Silkeborg
CVR: 87 32 24 16
2
CONTENT
CORPORATE INFORMATION ............................................................................................................................................................... 3
STATEMENT BY MANAGEMENT .......................................................................................................................................................... 4
INDEPENDENT AUDITOR’S REPORT ................................................................................................................................................... 5
FINANCIAL HIGHLIGHTS AND KEY RATIOS ...................................................................................................................................... 7
GROUP STRUCTURE ............................................................................................................................................................................. 9
MANAGEMENT REVIEW ..................................................................................................................................................................... 10
INCOME STATEMENT AND STATEMENT OF COMPREHENSIVE INCOME ...................................................................................... 14
NOTES TO THE FINANCIAL STATEMENTS ....................................................................................................................................... 20
3
CORPORATE INFORMATION
Phone: +45 86 80 11 77
Web: www.borgautomotive.com
CVR no.: 87 32 24 16
Registered in: Denmark, Silkeborg
Financial year: 1 January – 31 December
Board of Directors
Jens Bjerg Sørensen, Chairman
Kurt Bering Sørensen, Vice Chairman
Søren Ulrik Toft-Jensen
Carsten Thygesen
Jørgen Dencker Wisborg
Executive Management
Kim Kruse Andersen, CEO
Auditors
PricewaterhouseCoopers
Statsautoriseret Revisionspartnerselskab
Nobelparken
Jens Chr. Skous Vej 1
8000 Aarhus C
CVR-nr.: 33 77 12 31
4
Executive Management
Board of Directors
5
INDEPENDENT AUDITOR’S REPORT
6
INDEPENDENT AUDITOR’S REPORT
CVR no. 33 77 12 31
mne-no. 23328 mne-no. 23333
FINANCIAL HIGHLIGHTS AND KEY RATIOS
2023 2022 2021 2020 2019
Revenue and income
Revenue
1.875.808
1.815.321
1.368.358
870.568
917.678
EBITDA
153.495
179.899
158.057
108.211
110.000
Depreciation and amortization
52.067
53.530
45.972
25.834
25.308
Operating profit (EBIT)
101.428
126.369
112.085
82.377
84.692
Net Financial items
-3.861
-51.522
-17.227
-3.382
-985
Profit for the year
81.621
44.316
71.217
61.257
60.364
Cash flows for the year
Cash flow from operating activities
76.475
-149.941
49.153
139.487
84.728
Cash flow from investing activities
-259.552
-59.300
-17.885
-71.059
-26.684
Cash flow from financing activities
179.935
199.723
-16.285
-62.438
-60.092
Cash flows for the year
11.976
14.149
23.689
8.804
3.029
Invested capital and financing
Investments in property, plant and equipment
59.066
50.942
24.709
9.867
20.537
Net working capital
652.385
606.603
326.537
124.941
156.034
Invested capital
898.582
818.036
524.630
275.365
261.572
Total Assets
1.677.860
1.634.525
1.373.540
779.487
749.261
Equity
410.450
301.428
332.841
324.927
344.179
Net interest-bearing debt
-635.367
-426.524
-137.776
-5.274
-1.591
Financial ratios
EBITDA margin (%)
8,2%
9,9%
11,6%
12,4%
12,0%
EBIT margin (%)
5,4%
7,0%
8,2%
9,5%
9,2%
Net margin (%)
4,4%
2,4%
5,2%
7,0%
6,6%
Return on equity (%)
22,9%
14,0%
21,7%
18,3%
17,5%
Return on invested capital (%)
17,9%
26,8%
39,5%
40,3%
43,7%
Solvency (%)
24,5%
18,4%
24,2%
41,7%
45,9%
Financial data
Average number of employees
2.018
2.111
2.002
1.466
1.615
CONSOLIDATED
Comparative figures for 2019-2020 have not been adjusted related to the changed accounting policies regarding the IFRIC agenda decision
concerning configuration or customisation costs in a cloud computing arrangement.
7
FINANCIAL HIGHLIGHTS AND KEY RATIOS
(continued)
The ratios included in financial highlights are
defined and calculated as follows:
EBITDA margin (%)
EBIT margin (%)
Net margin (%)
Return on equity (%)
Return on invested capital (%)
Solvency (%)
Additionally the following alternative performance measures are applied and calculated in the following manner:
2023 2022 2021 2020 2019
Inventories
840.906
954.020
714.177
370.070
369.421
Trade receivables
325.184
235.803
213.555
105.532
112.043
Other receivables
45.905 54.174 55.324 18.414 19.169
Prepayments
11.656 5.506 3.769 3.271 3.938
Trade payables
-181.735 -255.124 -273.028 -79.570 -53.473
Paybles to related parties, non-interest bearing
0 0 0 0 0
Other payables
-389.531
-387.776
-387.260
-292.776
-295.064
Net working capital
652.385 606.603 326.537 124.941 156.034
Net working capital
652.385
606.603
326.537
124.941
156.034
Intangible assets
45.796
62.061
79.525
65.150
21.328
Property, plant and equipment
215.976
165.831
132.306
96.797
97.170
Provisions
-15.575
-16.459
-13.738
-11.523
-12.960
Invested capital 898.582 818.036 524.630 275.365 261.572
Non-current interest-bearing debt
-39.132
-34.510
-48.843
-27.675
-25.983
Current interest-bearing debt
-19.628
-19.845
-22.153
-10.784
-10.921
Other receivables, interest bearing
72
72
72
73
327
Receivables from parent company
0
0
0
24.308
31.957
Payables to parent company
-588.655
-386.390
-90.541
0
0
Cash and cash equivalents
11.976
14.149
23.689
8.804
3.029
Net interest-bearing debt -635.367 -426.524 -137.776 -5.274 -1.591
Average equity and average invested capital is calculated as a simple average of equity or invested capital beginnning of the year and
equity or invested capital end of year.
Equity x 100
Total assets
Revenue
Profit for the year x 100
Average equity
EBITDA x 100
Average invested capital
EBITDA x 100
Revenue
EBIT x 100
Revenue
Profit for the year x 100
8
9
GROUP STRUCTURE
BORG Automotive Group legal structure is illustrated below:
All shares in subsidiaries are owned 100%.
Aktieselskabet Schouw & Co. owns 100% of the shares in Borg Automotive A/S.
Borg Automotive A/S
Silkeborg, Danmark
Nom. DKK 1.000.000
Borg Automotive Sp. z.o.o.
Zdunska Wola, Polen
Nom. PLN 20.597.580
Borg Automotive UK Ltd.
Wednesbury, UK
Nom. GBP 10.600.001
Electro Steer Ltd.
Wednesbury, UK
Nom. GBP 1
Car Parts Industries Belgium SPRL
Nivelles, Belgium
Nom. EUR 18.550
Borg Automotive Spain S.L.U.
Pamplona, Spain
Nom. EUR 3.000
Borg Automotive Reman Spain S.L.U.
Pamplona, Spain
Nom. EUR 3.000
SBS Automotive A/S
Støvring, Denmark
Nom. DKK 40.000.000
SBS Deutschland GmbH
Eisenach, Germany
Nom. EUR 1.022.938
SBS France SAS
Beauvais, France
Nom. EUR 327.000
10
MANAGEMENT REVIEW
BORG Automotive Group (BA Group or Group) is an independent remanufacturer and supplier of automotive parts, covering in
remanufacturing the product groups starters, alternators, air condition compressors, brake calipers, EGR valves, steering
products, and turbo chargers. Borg Automotive Group also supplies spare parts for the automotive business with distribution
facilities in Denmark, Germany, France, and Poland, with products sold throughout Europe by sales teams in Denmark, Germany
and France.
2023 AT A GLANCE
Revenue for the fiscal year for the Group was MDKK 1.876 compared to MDKK 1.815 in 2022, corresponding to an increase of
3%. The profits before tax ended at MDKK 98 against last year of MDKK 75 corresponding to an increase of 30%. For the parent
company revenue for the fiscal year was MDKK 1.144 compared to MDKK 1.082 in 2022, while profits before tax amounted to
MDKK 107 compared to MDKK 57 in 2022.
For the Group profit for the year amounted to MDKK 82 (2022: MDKK 44), and to MDKK 82 (2022: MDKK 44) for the parent
company. Profit for the year for both the Group and parent company are impacted negatively because of the decision to leave
the Russian market which was 20% of the Newman business that was acquired. This combined with high cost prices due to the
strong dollar and high freight costs made it very challenging for the Newman segment.
Revenue in the Newman segment was in 2023 MDKK 450 (2022: MDKK 573) which is a decrease of 22%. This is in line with
the drop from the Russian market. Revenue in the Reman segment has increased with 15% in 2023 where the revenue was
MDKK 1.426 (2022: MDKK 1.243). The Reman segment has seen a strong development in an aftermarket that was soft in first
and second quarter of 2023. Increase in revenue in 2023 was also driven by price increases due to the development in the
global economy.
Overall the performance in 2023 are considered satisfactory compared to the expected level. The result is negatively impacted
by one off cost related to the integration of SBS automotive, but this has partially been offset by a strong performance in the
remanufacturing part of the business.
During 2023 one of the focus areas for the Group has been navigating through an automotive market the stagnated in second
half of 2022 and continued into 2023. The focus has also been on integrating the acquisition of SBS automotive into the
organisation. The strengthening and future proofing of the organisation to be able to meet and resist the current challenges, but
also to have the organisation in place to meet the expected increase in demand for remanufactured auto parts in the coming
years continues. As part of this process focus has been on strengthening the product portfolio and optimizing the production
setup at the production facilities in Poland, UK, and Spain.
The inventories within the Group have decreased with MDKK 113 (12%) during 2023 compared to 2022. This significant
decrease is as expected and relates to both the remanufacturing and trading business. Within the remanufacturing business,
the decrease has been driven mainly by reducing finish good stocks, where on the other hand an increase in raw material due to
increased cost prices has affected negatively.
The construction of the new headquarter in Silkeborg was finalised and by December 2023 the company moved into the new
premises.
At year-end 2023, total assets for the Group amounted to MDKK 1.678 against MDKK 1.635 in 2022, while total equity ended
at MDKK 410 against MDKK 301 at year-end 2022. The average number of employees decreased from 2.111 in 2022 to 2.018
in 2022. For the parent company assets amounted to MDKK 1.534 at year-end compared to MDKK 1.423 in 2022, while equity
was MDKK 410 against MDKK 301 last year.
The cash flow from operating activities for 2023 amounted to MDKK 76 (2022: MDKK -150), while the investing activities
amounted to MDKK -260 (2022: MDKK -59), of which MDKK 207 are related to the purchase of SBS Automotive. The financing
activities in 2023 accounted for a total of MDKK 180 (2022: MDKK 200).
Overall, the development in 2023 shows a healthy and well-developed business with a strong base of both competent
employees and an appropriate production and distribution footprint in Europe.
EVENTS SUBSEQUENT TO THE FINANCIAL YEAR-END
No material events have occurred after the end of the financial year.
OUTLOOK FOR 2024
The market upon which BA Group operates is in these years characterized and affected by considerable customer
consolidations. A consequence of this consolidation is an increase in purchasing power of the customers and a change in the
existing trading patterns in the market. On the positive side of this consolidation is the potential increase in sales to the
consolidated customer groups. With existing broad product portfolio and a strong pipeline in place it is expected that this will
ensure a positive development in sales to both the free aftermarket and the OES customers.
11
The current expectations of a positive development in sales is driven by a strong market position as being Europe’s biggest
independent remanufacture now also having the opportunity to offer trading products to our customers. The larger product
range and broader and more present geographical coverage brings in new customers as well as new products to existing
customers together with a level of service that lives up to a continuously increasing demand on quality, delivery capability and
product range.
The expected future growth in sales levels will potentially entail that the current distribution centre in Zduńska Wola, Poland
within the coming few years will reach its maximum capacity without expandability options at the current site. Based on this an
option to buy a suitable plot has been obtained in 2023 near the current production facility in Zduńska Wola. In 2024 BA Group
will have a continued focus on capacity levels and invest in extended capacity when deemed necessary.
BA Group expects a sales volume in 2024 on a higher level than in 2023 and based on this both revenue and earnings before
tax is expected to increase. It is expected that revenue will be in the range of MDKK 1.900-2.100 and the earnings before
interests, tax, depreciations and amortisation (EBITDA) are expected to be in the range of MDKK 170-200.
EMPLOYEE DEVELOPMENT AND APPRAISAL
An essential prerequisite for the continued development of BA Group is the employees, which entails a focus on both attracting
new and competent employees, but also a very keen and determined focus to retain, develop, and motivate the existing
workforce to ensure that the necessary skills and capabilities are present. Important elements to support this goal include
delegation of responsibility and competencies, establishment of cross-organisational solutions, compulsory annual employee
appraisals, and employee surveys.
ENVIRONMENTAL MANAGEMENT
BA Group makes continuous efforts to mitigate the environmental impact of the business activities. The largest environmental
impact identified relates to the consumption of energy, raw materials, and the derived materials waste at the production
facilities. Group policy is always to comply with applicable local legislation, rules, and regulations and commits to progress at
the established initiatives within environment as well as health and safety.
In addition to the internal focus BA Group is also determined to contribute to ensure environmental management as well as
promote responsible behaviour throughout the value chain. Since the Group is an international supplier of auto parts, it is
imperative that all environmental and quality requirements are channelled to the Group´s partners and suppliers to ensure the
same high levels of quality, environment, safety, and ethics.
QUALITY MANAGEMENT
BA Group’s quality system is based on the standard ISO 9001a. In addition to this platform the Group has a close cooperation
with several customers who challenge the existing production setup as well as the quality management. This collaboration is
considered to have a very positive impact on the current and future quality of the products within the portfolio and is a valuable
and important aspect of the Group’s ability to continuously update, renew, and improve the product quality.
RESEARCH AND DEVELOPMENT ACTIVITIES
The Group is continuously developing new methods, processes, and products as well as customer specific amendments to the
existing portfolio. The development activities have during 2023 taken place in the subsidiaries in Poland, UK, and Spain.
In Poland remanufacturing of products within hybrid technology has been in focus to secure necessary skills and processes for
reverse engineering of future products and technologies. Several products are in a screening process with customers for
potentially being incorporated into BA's future product portfolio.
CORPORATE RESPONSIBILITY
BA Group is dedicated to being a responsible employer and a good corporate citizen. Our Code of Conduct (COC) represents
how suppliers are expected to act when doing business with the Group. A continuous focus is on updating the COC to reflect the
expectations both from the community and customers.
Any suspicions related to a breach of the COC are considered very serious and are always acted upon. In severe cases of non-
compliance with the COC, a termination of the business relationship will take place. As part of the Group’s business is the audit
of external suppliers of finished goods and spare parts. Since 2020 compliance with the COC has been part of these supplier
audits.
STATUTORY DESCRIPTION OF CORPORATE SOCIAL RESPONSIBILITY (CSR)
For BA Group’s statutory description of Corporate Social Responsibility, including human rights, social and labour conditions,
climate, environment and anti-corruption, in accordance with §99a in the Financials Statements act, please refer to Schouw &
Co, CVR no: 63 96 58 12, ESG report 2023 at:
The Group continually strives to improve the work environment and aim to strengthen and implement a shared corporate culture
to ensure that all colleagues are treated equally irrespective of location, gender, origin, or employment.
12
GENDER DIVERSITY
BORG Automotive want to increase and safeguard value creation through a focus on relevant diversity in the employee
composition with the presence of the right qualifications and expertise at the management levels.
To ensure relevant diversity at the management levels and in accordance with the requirements in §99b the company have
published a Diversity Policy which is available at: www.borgautomotive-group.com/our-policies . While the policy covers BORG
Automotive Group, the targets set forth in the annex to the policy are only for Borg Automotive A/S.
Borg Automotive A/S
BORG Group
Board of Directors
Other Management Levels
Other Management Levels
No. of members
total
9
No
.
of members women
0
0
2
Under represented gender in
%
%
22%
Target in %
-
Yea
r
-
DATA ETHICS
In BA Group we strive to achieve at high standard of data integrity and transparency for securing the trust of our business
partners and employees. A continuous focus and acknowledgement of the responsibility and co-responsibility are on all links of
the data processing chain to ensure the technical and organization measures which must be in place to support the ethically
responsible data processing.
For BA Group’s statutory description regarding Data ethics in accordance with §99d, paragraph 1 in the Financials Statements
act, please refer to Schouw & Co, CVR no: 63 96 58 12, ESG report 2023 at:
WORKING ENVIRONMENT
In BA Group the number of working hours is always set to comply with local labour legislation. In situations where overtime is
needed, the Group compensate according to the requirements related to all additional payments. No employees shall work more
than the hours set as a maximum by the UN Human Rights.
The Group continuously improves the internal work instructions and workflows to ensure that all phases of the supply chain are
planned and organised to promote a safe, healthy, and responsible working environment. The purpose is to avoid accidents and
to ensure that the physical and mental conditions of the employees will not deteriorate. It is indeed important to the Group to
have healthy employees.
During 2019, Schouw & Co established a whistle-blower-system for all companies within the Schouw & Co. Group, also covering
BA Group. The system provides a secure channel for all employees and business partners for reporting suspected criminal or
unethical matters.
13
OUTSTANDING ENVIRONMENTAL ISSUES
The Group always aims at conducting its business and operating in compliance with all existing environmental rules and
regulations and has set up internal task forces to handle the Group’s environmental affairs.
There are currently no known material environmental issues outstanding within the Group.
SPECIAL BUSINESS RISKS
The general financial risks relevant for the BA Group are described more detailed in note 29 to which reference is made, but
below is included a brief highlight of the special risks to which the Group is exposed.
OPERATIONAL RISKS
The Group is not considered to have special operational risks. The operations are located within a business area with a low
sensitivity to the general conjunctural changes and where the customer portfolio is considered broad and loyal. The risk to which
the Group is exposed relates more to the conjunctural changes within the automotive business.
RAW MATERIALS RISKS RELATED TO PURCHASE OF CORES
A large part of the raw materials (cores) is continuously purchased at prices that may fluctuate depending on market demand,
and with a correlation to significant changes in the metal prices.
FOREIGN CURRENCY RISK
The cross-country activities within the Group entails that both income, cash flow, and equity are affected by changes in
currencies especially PLN to DKK, USD to DKK and NOK to DKK. To reduce the currency risk, hedging of cash flows are carried
out to cover the exposure of trading between PLN, NOK and USD to DKK. The hedging is done based on 12 months rolling
forecast. Reference is made to note 30.
CREDIT RISK
The majority of the Group’s production is delivered to international customers, who has a long history with the Group. Any credit
risk related to the customers and trade receivables are covered by Group policy and with effective management of customer credit
assessments and regular and thorough analyses of customer creditworthiness and external insurance is obtained to reduce risk
accordingly. Furthermore, as part of the remanufacturing business setup, customers pay a core charge (deposit) on top of the
purchase price for the product. The deposit will be repaid if the customer returns a used unit (a core). This setup (depos system)
is an additional safeguard regarding potential losses related to customers, since the depos amount placed within the Group can
be offset in any outstanding balances.
These factors combined with external credit insurance have entailed that no material losses have been recorded in recent years.
CAPITAL STRUCTURE
BA Group is predominately financed by resources of the parent company Schouw & Co. as well as a number of committed and to a
lesser extent uncommitted credit facilities. BA Group, like other major subsidiaries in the Schouw & Co. Group, co-guarantees for
these facilities, see further details in note 31.
Based on the policies set by and for all companies within the Schouw Group the equity ratio for each individual company shall be
within a range which enables an assessment of this company as credit-worthy on a stand-alone basis.
INCOME STATEMENT AND STATEMENT OF COMPREHENSIVE INCOME
INCOME STATEMENT
Note 2023 2022 2023 2022
Revenue
3
1.144.098
1.082.155
Cost of sales
4,5,7,8
-1.409.781
-1.320.014
-961.662
-916.136
Gross profit 466.027 495.307 182.436 166.019
Other operating income
9
59.161
23.133
Distribution expenses
5,8
-249.664
-267.458
-74.687
-84.520
Administrative expenses
5,6,8
-114.026
-102.410
-67.237
-53.129
Other operating expenses
9
-1.357
-208
-31.704
-21.403
Operating profit (EBIT) 101.428 126.369 67.969 30.100
Income from subsidiaries
16
3.613
48.845
Financial income
10
68.054
25.160
Financial expenses
11
-33.958
-53.552
-32.875
-46.882
Profit before tax 97.567 74.847 106.761 57.223
Tax for the year
12
-15.946
-30.531
-25.140
-12.907
Profit for the year 81.621 44.316 81.621 44.316
STATEMENT OF COMPREHENSIVE INCOME
Items that may be reclassified subsequently to the income
statement:
Exchange differences on translation of foreign operations
-7.572
25.907
-7.572
Value adjustment of hedging instruments during the year
32.566
8.681
Hedging instruments transferred to financials
-5.183
-208
-5.583
-208
Hedging instruments transferred to cost of sales
-24.148
-9.023
-24.844
1.763
Tax on other comprehensive income
12
-421
-1.930
-471
-2.252
Value adjustment of subsidiaries
16
-174
-1.141
Other comprehensive income after tax
-729
27.401
-729
Profit for the year
81.621
44.316
Total comprehensive income 109.022 43.587 109.022 43.587
Attributable to:
Shareholders of Borg Automotive A/S
109.022
43.587
CONSOLIDATED PARENT COMPANY
14
BALANCE SHEET
ASSETS
Note 2023 2022 2023 2022
Completed development projects
0
0
Development projects in progress
2.852
3.456
Customer relations
9.892
11.385
Brands
0
0
Know-how
19.032
21.751
IT projects
2.339
2.493
Other intangible assets
0
0
Intangible assets 13 45.796 62.061 34.115 39.085
Land and buildings
57.057
0
Plant and machinery
0
0
Other fixtures, tools and equipment
4.823
17
Assets under construction, etc.
0
20.626
Property, plant and equipment 14 215.976 165.831 61.880 20.643
Investment in subsidiaries 16 0 0 525.263 501.130
Deferred tax 18 96.299 87.890 31.400 34.616
Right of use assets 15 44.326 36.432 1.970 3.555
Receivables from related parties
21,23
594.408
516.365
Other receivables
0
0
Other non-current assets 152.984 134.649 1.153.041 1.055.666
Total non-current assets 414.756 362.541 1.249.036 1.115.394
Inventories 19 840.906 954.020 56.085 56.442
Trade receivables 29 325.184 235.803 192.831 125.831
Receivables from related parties
21,23 0 0 14.118 107.855
Corporate income tax 20 27.477 3.214 0 0
Joint taxation contribution 20 0 5.118 0 5.118
Other receivables
16.267
8.640
Prepayments
4.948
2.470
Cash and cash equivalents
725
804
Total current assets 1.263.104 1.271.984 284.974 307.160
Total assets 1.677.860 1.634.525 1.534.010 1.422.554
CONSOLIDATED PARENT COMPANY
15
BALANCE SHEET
EQUITY AND LIABILITIES
Note 2023 2022 2023 2022
Share capital
22
1.000
1.000
Hedge transaction reserve
7.899
6.231
Net revaluation reserve per equity method
Reserve for development projects
Exchange adjustment reserve -214 -26.121 0 0
Retained earnings 402.554 320.933 144.751 61.531
Proposed dividend
0
0
Total Equity 410.450 301.428 410.450 301.428
Deferred tax
18
0
0
Other payables 24 72.166 74.646 54.315 55.642
Payables to related parties
21,23
52.462
71.137
Interest bearing debt
15,23
704
1.087
Provisions
25
13.757
12.822
Total non-current liabilities 131.941 123.213 121.238 140.688
Current portion of non-current interest bearing debt
15,23 19.628 19.845 941 2.188
Payables to related parties
21,23
749.743
538.861
Trade payables
29.271
21.476
Other payables
24
207.153
402.550
Corporation tax payable
20
10
6
Joint taxation contribution
20
2.691
0
Provisions
25
12.513
15.357
Total current liabilities 1.135.469 1.209.884 1.002.322 980.438
Total liabilities 1.267.410 1.333.097 1.123.560 1.121.126
Total equity and liabilities 1.677.860 1.634.525 1.534.010 1.422.554
Changes in working capital
27
Financial assets and liabilities
28
Financial risks
29
Derivative Financial instruments
30
Contingent liabilities
31
Related parties
32
CONSOLIDATED PARENT COMPANY
16
CASH FLOW STATEMENT
Note 2023 2022 2023 2022
Profit before tax 97.567 74.847 106.761 57.223
Adjustment for operating items of a non-cash nature,
etc.:
Depreciation and impairment losses
8
8.720
9.341
Other non-cash operating items, net -3.709 -954 14 -28
Provisions 3.020 2.431 -1.909 2.087
Income from subsidiaries
16
-3.613
-48.845
Financial income
10
-30.097
-2.030
-68.054
-25.160
Financial expenses
11
32.875
46.882
Cash flows from operating activities before changes
in working capital
Changes in working capital
27
-4.191
-287.400
-85.461
103.536
Cash flows from operating activities after changes in
working capital
Interest income received
94
1.761
Interest expenses paid
-26.068
-7.428
-23.822
-6.194
Cash flow from ordinary activities 123.609 -112.738 -34.395 140.603
Income tax paid
20
-47.134
-37.203
-14.582
-25.878
Cash flows from operating activities 76.475 -149.941 -48.977 114.725
Purchase of intangible assets
26
-1.286
-3.868
-1.147
-3.728
Sale of intangible assets
0
3.531
Purchase of property, plant and equipment
26
-52.092
-48.003
-34.895
-16.623
Sale of property, plant and equipment
5
27
Acqusition of subsidiary
16
-206.500
-206.500
-22
Acqusition of business
17
-7.811
0
0
Dividend received from subsidiaries
16
5.212
7.446
Change in financial assets
0
0
Cash flows from investing activities -259.552 -59.300 -237.325 -9.369
Repayment of non-current liabilities
23
-308
-3.762
0
-3.762
Proceeds from incurring non current financial liabilities
0
0
Repayment of lease liabilities
23
-22.127
-20.043
-2.630
-2.382
Repayment of creditfacilties
23
0
0
Change in net payables/receivables to group companies
23
288.734
-36.009
Shareholders:
Dividend paid
-75.000
0
-75.000
Cash flows from financing activities 179.935 199.723 286.104 -117.153
Cash flows for the year
-3.142
-9.518
-198
-11.797
Cash at the beginning of the year
804
12.602
Value adjustment of cash and cash equivalents
23
-22
119
-1
Cash at the end of the year 11.976 14.149 725 804
CONSOLIDATED PARENT COMPANY
17
EQUITY STATEMENT
CONSOLIDATED
Share
Capital
Hedge
transaction
reserve
Exchange
adjustment
reserve
Retained
earnings
Proposed
dividend Total equity
Equity at 1 January 2023 1.000 5.616 -26.121 320.933 0 301.428
Profit and other comprehensive income in 2023:
Exchange rate adjustment of foreign
subsidiaries
Value adjustment of hedging instruments
recognised during the year
Hedging instruments transferred to financials
Hedging instruments transferred to cost of
sales
Tax on hedging instruments
-421
-421
Profit for the year
Total recognised comprehensive income
Transactions with the owners:
Dividend distributed 0 0 0 0 0 0
Transactions with the owners for the
period
Equity at 31 December 2023 1.000 7.110 -214 402.554 0 410.450
Share
Capital
Hedge
transaction
reserve
Exchange
adjustment
reserve
Retained
earnings
Proposed
dividend Total equity
Equity at 1 January 2022
Profit and other comprehensive income in 2022:
Exchange rate adjustment of foreign
subsidiaries
Value adjustment of hedging instruments
recognised during the year
Hedging instruments transferred to financials
Hedging instruments transferred to cost of
sales
Tax on hedging instruments
-1.930
-1.930
Profit for the year
Total recognised comprehensive income
Transactions with the owners
Dividend distributed
-75.000
-75.000
Transactions with the owners for the
period
Equity at 31 December 2022 1.000 5.616 -26.121 320.933 0 301.428
18
EQUITY STATEMENT
PARENT COMPANY
Share
capital
Hedge
transaction
reserve
Net revaluation
reserve per
quity method
Reserve for
development
projects
Retained
earnings
Proposed
dividend Total Equity
Equity at 1 January 2023 1.000 6.231 232.666 0 61.531 0 301.428
Profit and other comprehensive income in 2023:
Exchange rate adjustment of
foreign subsidiaries
0 0 25.907 0 0 0 25.907
Value adjustment of hedging
instruments recognised during the
year
0 32.566 0 0 0 0 32.566
Hedging instruments transferred
to financials
0 -5.583 0 0 0 0 -5.583
Hedging instruments transferred
to cost of sales
0 -24.844 0 0 0 0 -24.844
Tax on equity adjustements
0
-471
0
0
0
0
-471
Value adjustment of hedging
instruments in subsidiary
0 0 -174 0 0 0 -174
Profit for the year
0
0
-1.599
0
83.220
0
81.621
Total recognised comprehensive
income
0 1.668 24.134 0 83.220 0 109.022
Transactions with the owners:
Dividend distributed
0
0
0
0
0
0
0
Transactions with the owners for
the period
0 0 0 0 0 0 0
Equity at 31 December 2023
1.000
7.899
256.800
0
144.751
0
410.450
Share
capital
Hedge
transaction
reserve
Net revaluation
reserve per
quity method
Reserve for
development
projects
Retained
earnings
Proposed
dividend Total Equity
Equity at 1 January 2022
1.000 -1.753 199.980 228 58.386 75.000 332.841
Profit and other comprehensive income in 2022:
Exchange rate adjustment of
foreign subsidiaries
0 0 -7.572 0 0 0 -7.572
Value adjustment of hedging
instruments recognised during the
year
0 8.681 0 0 0 0 8.681
Hedging instruments transferred
to financials
0 -208 0 0 0 0 -208
Hedging instruments transferred
to cost of sales
0 1.763 0 0 0 0 1.763
Tax on equity adjustements
0
-2.252
0
0
0
0
-2.252
Value adjustment of hedging
instruments in subsidiary
0 0 -1.141 0 0 0 -1.141
Profit for the year
0
0
41.399
-228
3.145
0
44.316
Total recognised comprehensive
income
0 7.984 32.686 -228 3.145 0 43.587
Transactions with the owners:
Dividend distributed
0
0
0
0
0
-75.000
-75.000
Transactions with the owners for
the period
0 0 0 0 0 -75.000 -75.000
Equity at 31 December 2022 1.000 6.231 232.666 0 61.531 0 301.428
19
20
NOTES TO THE FINANCIAL STATEMENTS
CONTENT
1. ACCOUNTING POLICIES ....................................................................................................................................................................... 21
2. SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS ................................................................................ 29
3. REVENUE ................................................................................................................................................................................................ 30
4. COST OF SALES ...................................................................................................................................................................................... 30
5. STAFF COST ........................................................................................................................................................................................... 31
6. FEES TO AUDITORS APPOINTED BY THE GENERAL MEETING........................................................................................................... 33
7. RESEARCH AND DEVELEOPMENT COSTS ............................................................................................................................................ 33
8. DEPRECIATION, AMORTIZATION AND IMPAIRMENT LOSSES .......................................................................................................... 33
9. OTHER OPERATING INCOME AND EXPENSES ..................................................................................................................................... 34
10. FINANCIAL INCOME .............................................................................................................................................................................. 34
11. FINANCIAL EXPENSES .......................................................................................................................................................................... 34
12. TAX ON PROFIT FOR THE YEAR ............................................................................................................................................................ 35
13. INTANGIBLE ASSETS ............................................................................................................................................................................ 36
14. PROPERTY, PLANT AND EQUIPMENT ................................................................................................................................................... 38
15. RIGHT OF USE ASSETS .......................................................................................................................................................................... 40
16. INVESTMENTS IN SUBSIDIARIES (PARENT COMPANY) ..................................................................................................................... 43
17. ACQUISITION OF SUBSIDIARIES AND BUSINESSES.......................................................................................................................... 44
18. DEFERRED TAX ...................................................................................................................................................................................... 45
19. INVENTORIES ........................................................................................................................................................................................ 47
20. CORPORATE INCOME TAX .................................................................................................................................................................... 47
21. RECEIVABLES AND PAYABLES WITH RELATED PARTIES ................................................................................................................... 48
22. SHARE CAPITAL ..................................................................................................................................................................................... 48
23. INTEREST-BEARING DEBT ................................................................................................................................................................... 49
24. OTHER PAYABLES .................................................................................................................................................................................. 52
25. PROVISIONS .......................................................................................................................................................................................... 53
26. ADJUSTMENTS FOR NON-CASH TRANSACTIONS ............................................................................................................................... 53
27. CHANGES IN WORKING CAPITAL......................................................................................................................................................... 53
28. FINANCIAL ASSETS AND LIABILITIES ................................................................................................................................................. 54
29. FINANCIAL RISKS .................................................................................................................................................................................. 57
30. DERIVATIVE FINANCIAL INFORMATION ............................................................................................................................................. 61
31. CONTINGENT LIABILITIES AND GUARANTEES................................................................................................................................... 62
32. RELATED PARTIES ................................................................................................................................................................................. 63
21
NOTES TO THE FINANCIAL STATEMENTS
1. ACCOUNTING POLICIES
Borg Automotive A/S is a limited liability company incorporated and domiciled in Denmark. The annual report for the period 1.
January – 31. December 2023 comprises both the consolidated accounts for Borg Automotive A/S and its subsidiaries (BA Group
or Group) and the annual accounts for the parent company Borg Automotive A/S.
The consolidated financial statements of Borg Automotive A/S and its subsidiaries have been prepared in accordance with
International Financial Reporting Standards (IFRS) as adopted by the European Union and additional Danish disclosure
requirements for annual reports applying for class C entities.
Basis of preparation
The consolidated financial statements and the parent company financial statements are presented in Danish kroner (DKK), which
is the presentation currency for the Group and the functional currency of the parent company. If not stated otherwise, all amounts
rounded to nearest thousands (‘000 or TDKK).
The consolidated financial statements and the parent company financial statements have been prepared on the basis of historical
cost, except for share based remuneration and derivative financial instruments that are measured at fair value.
Going concern
The Board of Directors and Executive Management have in connection to the preparation of the Financial Statements assessed
the Group´s and the Parent Company´s ability to continue as a going concern and thus whether this assumption can be applied.
Based in the knowledge of the Group and Parent Company including the future expectations including budgets, developments in
liquidity, the identified risks and uncertainties connected to the regular business the Board of Directors and Executive
Management considers it fair and justified to apply the going concern principle.
Change in accounting principles and presentation
New and amended standards and interpretations
The Group applied for the first-time certain standards and amendments, which are effective for annual periods beginning on or
after 1 January 2023. The Group has not early adopted any other standard, interpretation or amendment that has been issued
but is not yet effective.
The new and amended standards are:
IAS 8, IAS 1 and IFRS Practice Statement 2 and IAS 12
These amendments had no material impact on the consolidated financial statements of the Group.
The following new or amended IFRS Standards and Interpretations of relevance to the Group have been issued but not yet
adopted by the EU:
Amendments to IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current and Non-current
Amendments to IAS 8 Accounting policies, Changes in Accounting Estimates and Errors: Definition of Accounting
Estimates
The new and amended Standards and Interpretations are not mandatory for the financial reporting for 2023. The Group expects
to adopt the new Standards and Interpretations when they become mandatory. It has been assessed that the implementation of
the new standards will not have any significant effect on the recognition and measurement of the balance sheet at 1 January
2024.
Basis of consolidation
The consolidated financial statements comprise Borg Automotive A/S and its subsidiaries at 31 December 2023.
Subsidiaries are entities controlled by BA Group. Control exists when the Group is exposed, or has rights, to variable returns from
its involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically, the
Group controls an investee if, and only if, the Group has all of the following:
Power over the investee (i.e., existing rights that give it the current ability to direct the relevant activities of the investee)
Exposure, or rights, to variable returns from its involvement with the investee
The ability to use its power over the investee to affect its returns
Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control
of the subsidiary.
The consolidated financial statements have been prepared by aggregating the financial statements of the parent company and
the individual subsidiaries prepared in accordance with the Group’s accounting policies. Intra-group income and expenses,
shareholdings, dividends, balances as well as realised and unrealised gains or losses on transactions between the consolidated
22
companies are eliminated. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the year are
included in the consolidated financial statements from the date the Group gains control until the date the Group ceases to control
the subsidiary.
Business combinations
Newly acquired or newly established companies are recognised in the consolidated financial statements from the date of
acquisition. Comparative figures are not adjusted to reflect acquisitions.
The purchase method is applied on acquisitions if the Parent Company gains control of the company acquired. Assets, liabilities
and contingent liabilities in companies acquired are measured at their fair value at the date of acquisition. Intangible assets are
recognised if they can be separated or if they arise from a contractual right and the fair value can be reliably measured. Deferred
tax on revaluations made is recognised.
Any excess of the consideration paid for the business over the fair value of the acquired assets, liabilities and contingent liabilities
is recognised as goodwill under intangible assets. In the event of uncertainty regarding measurement, goodwill may be adjusted
until 12 months after the acquisition. Goodwill is not amortised but is tested for impairment annually. The first impairment test is
performed before the end of the year of acquisition. On acquisition, goodwill is transferred to the cash-generating units that will
subsequently form the basis for future impairment tests.
Contingent consideration agreed in connection with company acquisitions and paid to the seller if certain conditions are met, are
recognised at fair value and considered part of the total consideration for acquiring the company. Changes in fair value of the
contingent consideration are recognised in the income statement.
Foreign currency translation
The Group’s consolidated financial statements are presented in Danish Kroner (DKK), which is also the Parent Company’s
functional currency. A functional currency is determined for each of the reporting entities in the Group. The functional currency is
the currency in the primary economic environment in which the reporting entity operates. Transactions in other currencies other
than the functional currency are considered transactions in foreign currencies.
On initial recognition, foreign currency transactions are translated applying the exchange rate at the transaction date. Receivables,
payables and other monetary items denominated in foreign currencies that have not been settled at the balance sheet date are
translated using the exchange rate at the balance sheet date. Exchange differences that arise between the exchange rate at the
transaction date and the exchange rate at the payment date, as well as the exchange rate at the balance sheet date are recognised
in the income statement as financial income or financial expenses.
Property, plant and equipment, intangible assets, inventories and other non-monetary assets that have been purchased in foreign
currencies are translated using historical exchange rates.
On consolidation of entities with functional currency different from Danish Kroner (DKK), the income statements are translated at
monthly average exchange rates prevailing at the dates of the transactions and the balance sheets are translated at the exchange
rate prevailing at the balance sheet date. The exchange differences arising on the translation are recognised in other
comprehensive income.
On disposal of a foreign operation, the component of other comprehensive related to that specific foreign operation is recognised
in the income statement.
Derivative financial instruments
The Group uses derivative financial instruments such as forward currency contracts to hedge its foreign currency risks (cash flow
hedges).
Derivative financial instruments are measured at fair value and recognised in the balance sheet under other receivables or other
payables, respectively. The fair value of derivative financial instruments is calculated based on current market data and
recognised valuation methods.
Changes in the fair value of derivative financial instruments that effectively hedge the fair value of a recognised asset or a
recognised liability are recognised in the income statement together with any changes in the value of the hedged asset or hedged
liability. Hedging of future cash flows under agreements are treated as hedging of the fair value of a recognised asset or a
recognised liability.
Changes in the part of the fair value of derivative financial instruments effectively hedging future cash flows are recognised in
other comprehensive income in the reserve for hedging transactions under equity. On realisation of the hedged transaction, any
gains or losses relating to such hedge transactions are transferred from other comprehensive income and recognised in the same
item as the hedged item.
For derivative financial instruments that do not qualify for hedge accounting, changes in fair value are recognised as interest
income or expenses and similar items in the income statement as they occur.
23
Government grants
Government grants are recognised where there is reasonable assurance that the grant will be received and all attached conditions
will be complied with. When the grans relates to an expense item, it is recognised as income on systematic basis over the periods
that the related costs, for which it is intended to compensate, are expensed. When the grant relates to and asset, it is recognised
as income in equal amounts over he expected useful life of the related asset.
When the Group receives grants of non-monetary assets, the asset and the grant are recorded at nominal amounts and released
to profit or loss over the expected useful life of the asset, based on the pattern of consumption of the benefits of the underlying
asset by equal annual instalments.
INCOME STATEMENT
Revenue
Revenue from contracts with customers comprises sales of finished goods and remanufactured products, added the market value
of cores and adjustment of core provisions. Revenue from the sale is recognised at the point in time when the control of products
is transferred to the customer, which is generally upon delivery. For contracts providing the customer with a right of return within
a specified period, the Group considers the timing of recognition.
Revenue from contracts with customers is measured at an amount that reflects the consideration to which the Group expects to
be entitled in exchange for those products. Amounts disclosed as net revenue exclude discounts, VAT and other duties.
The Group considers whether contracts include other promises that constitute separate performance obligations and to which a
portion of the transaction price needs to be allocated. In determining the transaction price, the Group considers the effects of
variable consideration. No element of financing is deemed present, as payment is generally received as cash - on delivery or up
to generally 60-90 days of credit.
Variable consideration:
The Group pays various discounts depending on the nature of the customer and business. Customer discounts comprise off-
invoice discounts, volume- and activity-related discounts. Off-invoice discounts arise from sales transactions where the customer
immediately receives a reduction in the sales price. This also includes cash discounts and incentives for early payments. Volume-
and activity-related discounts is a broad term covering incentives for customers to sustain business with the Group over a longer
time and may be related to a current campaign or a sales target measured in volumes or total value. Examples include discounts
paid as a lump sum, discounts for meeting all or certain sales targets or for exceeding targets, or progressive discounts offered in
step with increasing sales to a customer.
Cost of sales
Cost of sales comprises cost related to generating the revenue for the year. While trading companies recognise the costs of goods
sold, the manufacturing companies recognise production costs corresponding to the year’s revenue, including direct and indirect
costs for raw materials and consumables, wages and salaries, depreciation on leasing assets and on minor rent and leasing
arrangements, amortisation and impairment of intangible assets, depreciation and impairment of production buildings and
equipment and impairment of inventory.
Cost of sales also includes costs and expenses relating to the operation, administration and management of the production sites.
Additionally, is included costs for research and product development that do not meet the criteria for capitalization, as well as
amortisation and impairment of capitalized product development costs.
Distribution costs
Distribution costs comprise expenses incurred in connection with the distribution of goods sold during the year and in connection
with sales campaigns, etc. launched during the year under review, including cost of sales and logistics staff, advertising and
exhibition costs, as well as depreciation/amortisation and impairment losses.
Administrative expenses
Administrative expenses comprise expenses incurred during the year for management and administration, including expenses
for administrative staff, office premises and office expenses, and depreciation and impairment losses. Administrative expenses
also comprise write-downs on receivables.
Employee benefits
Executive Management and selected Key Management in BA Group are covered by the parent company Schouw & Co.’s share
option programme. The costs related to the programme are calculated according to “Black & Scholes” and are expensed as staff
costs linearly over the period of the option and settled to the parent company.
24
Other operating income and expenses
Other operating income and expenses comprise items of a secondary nature relative to the companies’ primary activities and
consist of the following:
Gains and losses on disposal of intangible assets and property, plant and equipment and right of use assets.
Compensation from external parties for e.g. claims or insurance
Income from rental of facilities to external parties
Group internal services and allocations
Profit or loss in subsidiaries (Parent company)
The proportionate share of the profit or loss from individual subsidiaries after tax and after elimination of the proportionate
share of intra-group gains or losses is recognised in the income statement.
Financial income and expenses
Financial income comprises interest income and expenses including interest to group enterprises, net capital gains or losses on
securities, payables and transactions in foreign currencies, amortisation of financial assets, interests related to lease liabilities as
well as tax relief or surcharge under the Danish Tax Prepayment Scheme etc.
Tax for the year
Tax for the year comprise current tax including joint taxation contribution and deferred tax for the year. Tax relating to the result
for the year is recognised in the income statement, while tax expenses or income relating to changes in equity is recognised in
other comprehensive income.
BALANCE SHEET
Completed development projects
Completed development projects comprise specific projects related to the development of new products and processes and are
recognised as intangible assets when they are clearly defined, identifiable, and for which technical feasibility, sufficient resources
and a potential future market or application in the enterprise can be demonstrated. In addition, it is the intention with these
projects to manufacture, market or use the project for future commercial purposes. This applies if cost can be measured reliably
and sufficient certainty exists that future earnings or the net selling price can cover production costs, distribution costs, and
administration costs as well as research and development costs. Within BA Group this is underpinned by a gate process, where
these judgements are made at specific gates. Other development costs which does not fulfil the criteria for capitalization are
recognised in the income statement and incurred as research and development costs under cost of sales.
Development costs comprise salaries, external costs, amortisation and other costs attributable to the projects. Following
completion of the development work, development projects are amortised on a straight-line basis over their estimated useful
lives. The amortisation period is three to five years. The basis of amortisation is calculated net of any impairment losses. The
projects are measured at cost less accumulated amortisation and impairment losses.
IT-projects
IT projects comprises internally developed IT solutions and software for the purpose of supporting business operations.
Development costs comprise salaries, external costs, amortisation and other costs attributable to the projects. Following
completion of the development work, development projects are amortised on a straight-line basis over their estimated useful
lives. The amortisation period is three to five years. The basis of amortisation is calculated net of any impairment losses. The
projects are measured at cost less accumulated amortisation and impairment losses.
Other intangible assets
Other intangible assets comprise customers, know-how and IT licenses.The cost of other intangible assets acquired from an
external party are capitalized at cost at the date of acquisition. Following initial recognition, intangible assets are carried at cost
less any accumulated amortisation and accumulated impairment losses.
Other intangible assets are amortised on a straight-line basis over the expected useful lives of the assets which are as follows:
Customer relations: 10-15 years
Brands: 3-20 years
Know-how: 10-15 years
Other intangible assets: 1-10 years
25
Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal
proceeds and the carrying amount of the asset and are recognised in the statement of profit or loss when the asset is
derecognised.
Intangible assets are assessed for impairment whenever there is an indication that the intangible asset may be impaired. The
amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end
of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits
embodied in the asset are considered to modify the amortisation period or method, as appropriate, and are treated as changes in
accounting estimates. The amortisation expense on intangible assets with finite lives is recognised in the statement of profit or
loss in the expense category that is consistent with the function of the intangible assets.
Property, plant and equipment
Land and buildings, plant and machinery as well as other fixtures, tools and equipment are measured at cost less accumulated
depreciation and impairment.
Cost comprises the acquisition price and any costs directly attributable to the acquisition and preparation of the asset until the
time when it is ready to be put into operation. The total cost of an asset is divided into separate components which are depreciated
separately if their useful lives differ.
Subsequent costs, such as the cost of replacing components of property, plant and equipment, are included in the asset´s
carrying amount when deemed likely that it will result in economic benefit. The replaced components are no longer recognised in
the balance sheet and the carrying amount is transferred to the income statement. All other ordinary repair and maintenance
costs are recognised in the income statement when incurred.
Property, plant and equipment are depreciated on a straight-line basis over the expected useful lives of the asset/components,
which are expected to be as follows:
Buildings: 5-40 years
Plant and machinery: 5-18 years
Other fixtures and fittings, tools and equipment: 3-18 years
Land is not depreciated
The basis for depreciations are calculated with due considerations to the asset´s scrap value, useful life and reduced by any
impairment losses. The residual value is determined at the acquisition date and reassessed annually and adjusted prospectively,
if appropriate. In case of changes to the depreciation period or residual value the effect on depreciations going forward is
recognised as a change in accounting estimates.
Depreciation are recognised in the income statement as production costs, distribution costs or administrative expenses.
Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial
period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. All other borrowing costs are
expensed in the period in which they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection
with the borrowing of funds. Usually borrowing costs do not exist.
Right of use assets
Right of use assets are lease assets arising from lease agreements. Right of use assets are initially measured at cost comprising
the following:
the amount of the initial measurement of lease liability
any lease payments made at or before the commencement date less any lease incentives received
any initial direct costs
restoration costs
The right of use assets are depreciated on a straight-line basis over the shorter period of the assets useful life and the lease term
in the contract. The right of use assets can be adjusted due to modifications to the lease agreement or reassessment of the lease
term.
The depreciation periods are as follows:
Property: 1-7 years
Cars: 1-3 years
Production equipment: 3-5 years
Other right of use assets: 3-5 years
26
Payments associated with short-term leases and leases of low-value assets are recognised on a straight-line basis as an
expense in the income statement. Short-term leases are leases with a term of 12 month or less, while low value assets comprise
assets with a value below TDKK 75.
The Group sublets a share of a leased property which is classified as financial leasing, “Right-of-use-assets”. The future
expected income from this sublet is accounted for in assets as a receivables, non-current and current respectively.
Investments in subsidiaries (Parent company)
Investments in subsidiaries are, at first recognition measured at cost and subsequently at the proportionate share of the
companies' net asset values calculated in accordance with the parent company’s accounting policies with the deduction or
addition of unrealised intra-group gains or losses and with the addition or deduction of goodwill calculated according to the
acquisition method.
Investments in subsidiaries with negative net asset values are measured at cost at DKK 0 (nil). If the parent company has a legal
or contractual obligation to support a provision is recognised.
Net revaluation of investments in subsidiaries is recognised in the reserve for net revaluation under equity according to the equity
method to the extent that the carrying amount exceeds cost.
Subsidiaries acquired or established during the year are initially recognised in the financial statement from the date of acquisition,
while sold or liquidated companies are recognised until the date of disposal.
Impairment of non-current assets
Deferred tax assets are assessed on a yearly basis and are only recognised in case it is deemed likely that they will be utilized.
The carrying amount of development projects in progress is tested for impairment at least annually, and where the carrying
amount exceeds the net present value of the future net cash flows expected to be generated by the development project, the
project is written down to its recoverable amount in the income statement. Finished development projects are tested for
impairment if there is indication of impairment from the annual review.
The carrying amount of other non-current assets are tested annually to determine whether there is any indication of impairment.
If such an amount exists, the recoverable amount of the assets is calculated. The recoverable amount is the higher of the fair
value of the asset less expected costs to sell and the value in use. For the purpose of assessing impairment, assets are grouped
at the lowest levels for which there are separately identifiable cash flows (cash-generating units).
A write-down is recognised when the carrying amount of an asset or a cash-generating unit exceeds the recoverable amount of
the asset or the cash-generating unit. Write-downs are recognised in the income statement as production, distribution or
administration expenses.
Inventories
Inventories are measured at cost in accordance with the FIFO. Where the net realisable is lower than the cost, inventories are
written down to this lower value. The net realisable value of inventories is calculated as the estimated selling price less completion
costs and costs incurred to execute sale and is determined in consideration of marketability, obsolescence and movements in the
expected selling price.
The cost of goods for resale, raw materials and consumables comprise the purchase price and delivery costs.
The cost of finished goods and work in progress comprise of raw materials, consumables, direct labour and indirect production
costs, based on a normal operating activity. Indirect production costs comprise indirect materials and labour as well as
maintenance of and depreciation and impairment of the relating to machines, factory buildings and equipment used in the
manufacturing process as well as costs of factory management and administration. Financing costs are not included in cost.
Provision related to obsolescence is calculated based on 12-months sales forecast and is adjusted when sales forecast and stock
volumes changes.
Receivables
Receivables comprises of trade receivables, receivables from group companies, and other receivables. Receivables are
recognized initially at fair value and subsequently measured at amortized cost less impairment losses.
For trade receivables, BA Group applies the simplified approach related to impairment assessment, which permits the use of
lifetime Expected Credit Loss model (ECL). The ECL model involves a three-stage approach under which financial assets move
through the stages as their credit quality changes. The stages determine how impairment losses are measured and the effective
interest is applied. Provisions are determined based on grouping of trade receivables sharing the same credit risk characteristics
and days past due.
27
Regarding group intercompany loans, impairment losses will be recognized based on 12-month or lifetime ECL depending on
whether a significant increase in credit risk has arisen since initial recognition.
Corporate income tax
Current tax consists of tax payable or receivable including joint taxation contribution and is recognised in the balance sheet as
calculated tax on the taxable income for the year, adjusted for tax on prior years’ taxable income and for tax paid under the on-
account scheme. Receivables and payables regarding the joint taxation is presented separately in the balance sheet.
Borg Automotive A/S is taxed jointly with its parent company and other Danish subsidiaries. The current Danish income tax liability
is allocated among the companies of the tax pool in proportion to their taxable income. Companies that utilize tax losses from
other companies pay a joint contribution to the parent company at an amount corresponding to the tax value of the tax losses
utilized. Companies whose tax losses are utilized by other companies receive joint tax contribution from the parent company
corresponding to the tax value of the utilised losses (full absorption). The jointly taxed companies pay tax under the Danish on-
account tax scheme.
Prepayments
Prepayments include expenses paid in respect of subsequent financial years and are measured at cost.
Cash
Cash comprises cash in hand and short-term bank deposits.
SHAREHOLDERS EQUITY
Dividend
Dividend is recognised as a liability at the time of adoption by the shareholders at the annual general meeting (the date of
declaration). Dividends expected to be declared in respect of the year are stated as a separate line item under equity.
Hedge transaction reserve
The hedge transaction reserve contains the accumulated net change in the fair value of hedging transactions that meet the criteria
for hedging future cash flows and for which the hedged transaction has yet to be realised.
The hedge transaction reserve is dissolved, when the hedged transaction is realised, if the hedged cash flow are no longer
expected realised, or if the hedge is no longer effective.
Reserve for development projects (Parent company)
The reserve for development costs comprise recognized development costs reduced by amortizations and taxes. The reserve
cannot be used to distribute dividend or cover losses. The reserve will be reduced or dissolved if the recognised development
costs are no longer part of the Company´s operations by a transfer directly to the distributable reserves under equity.
Exchange adjustment reserve
The exchange adjustment reserve comprises exchange differences arising on the translation of the financial statements of foreign
enterprises from their functional currencies into Danish kroner including exchange differences on financial instruments
considered to be a part of the net investment or as hedging of the net investment. On realisation, accumulated value adjustments
are taken from equity to financial income and expenses in the income statement.
The exchange adjustment reserve is dissolved upon disposal of the subsidiary, or if the conditions for efficient hedging is no longer
present.
Net revaluation reserve (Parent company)
Net revaluation of investments in subsidiaries are recognised at cost in the reserve for net revaluation according to the equity
method. The reserve cannot be recognised at a negative amount. The reserve is dissolved upon disposal of the subsidiary.
Provisions
Provisions relates to warranty commitments which recognized when, as a consequence of an event occurring before or at the
balance sheet date, the Group has a legal or constructive obligation, the settlement of which is likely to result in an outflow from
the Group of economic benefit.
Financial liabilities
Debt to credit institutions is recognised at the raising of a loan at fair value less transaction costs. In subsequent periods, financial
liabilities are measured at amortised cost, applying the “effective interest rate method”, to the s effect that the difference between
28
the proceeds and the nominal value is recognised in the income statement under financial expenses over the term of the loan. In
addition, the capitalised lease liability is recognised under financial liabilities.
Other liabilities
Other liabilities including core liability (customer rebates) are measured at net realisable value, which normally will be equal to
nominal value.
Contingent consideration agreed in connection with company acquisitions and paid to the seller if certain conditions are met,
are recognized at fair value and considered part of the total consideration for acquiring the company. The liability is determined
by discounting the expected payments, taking into account the probability of the balance of the purchase price to be paid. The
pre-tax discount rate used reflects the general level of interest rates and the specific risk related to the earn-out. The differences
for the financial year In the discount elements are recognized in financial expenses. Changes in the fair value of the earn out
which may not be attributed to the discount element of the earn out is recognised in profit or loss.
Deferred tax
Deferred tax is measured using the balance sheet liability method on temporary differences between the carrying amount and
the tax base of assets and liabilities. However, no deferred tax is recognised on timing differences on non-deductible items for
which timing differences have arisen at the acquisition date without affecting the financial results or taxable income.
Deferred tax is measured based on the tax rules and rates in the respective countries that will apply under the legislation in force
on the balance sheet date when the deferred tax asset is expected to crystallise as current tax. Changes in deferred tax resulting
from changes in tax rates are recognised in the income statement.
Deferred tax assets, including the tax base of tax loss carry-forwards, are recognised under other noncurrent assets at the
expected value of their utilisation, either as a set-off against tax on future income or as a set-off against deferred tax liabilities
within the same legal tax entity and jurisdiction. Deferred tax adjustments are made regarding eliminations of unrealised
intercompany gains and losses.
Deferred tax assets are reviewed annually and recognised only to the extent that it is probable that they will be utilized within the
period of five years.
Fair value measurement
Fair value measurements are based on the principal market. If no principal market exists, the measurement is based on the
most advantageous market, i.e. the market that maximizes the price of the asset or liability less transaction and/or
transportation costs.
All assets and liabilities which are measured at fair value, or whose fair value is disclosed, are classified based on the fair value
hierarchy, see below:
Level 1: Value in an active market for similar assets/liabilities
Level 2: Value based on recognized valuation methods based on observable market information
Level 3: Value based on recognised valuation methods and reasonable estimates (non-observable market information).
Cash flow statement
The cash flow statement shows cash flows for the year distributed on operating, investing and financing activities, net changes
for the year in cash as well as cash and cash equivalents at the beginning and end of the year.
Cash flows from operating activities are calculated according to the indirect method as the profit for the year before tax adjusted
for non-cash operating items, changes in working capital and income taxes paid.
Cash flows from investing activities comprise payments in connection with acquisition and divestment of companies and
operation and the acquisition and disposal of intangible assets, property, plant and equipment.
Cash flows from financing activities comprise payments to and from shareholders and related expenses as well as the raising of
loans, re-payments of interest-bearing debt and repayment of lease liabilities.
29
2. SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS
The preparation of the Group’s consolidated financial statements requires Management to make judgements, estimates and
assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures,
and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that
require a material adjustment to the carrying amount of assets or liabilities affected in future periods. Management continuously
reassesses these estimates and judgements based on several factors in the given circumstances. The following accounting
estimates are considered significant for the financial reporting:
Revenue
Offset in revenue are amounts related to the value of cores when these are later returned to BA Group from the external
customers, as well as an estimate related to the share of outstanding repayment obligations which are not expected to become
an obligation based on the historical rate of return rates from the external customers.
Reference is made to further details of the repayment obligation and value of cores in note 24.
Inventories
The uncertainties of inventories relates both to cores and finished goods.
The uncertainty related to inventories of cores cover both the assessment of core market prices and the valuation related to cores
considered to be obsolete or lack of marketability. Cores repurchased from customers for remanufacturing are valued based on
the historical external purchase prices at the production facilities. The uncertainty related to the core market price is the
difference between the historical prices, which are considered the best indicator available, and significant price developments in
the market.
Cores considered to be obsolete or to have impaired marketability are written down to net realisable value. The assumption
applied regards to the valuation of cores on inventory relates to the principle applied that cores on stock for more than 1 years
expected sales are considered obsolete and thus written down to the scrap price.
Finished goods inventories are written down to net realisable value based on either sales forecast or time of purchase, both based
on the same principles with reference to write-down timing and percentage.
Core liability
The core liability is composed of the core charge (deposit) paid be the customer upon purchase of a unit which is returned to
the customer conditional on and at the same rate as return of the used units (cores). The core charge is offset by the expected
value of the returned cores and the expected core return rate, which constitutes the elements of the core liability. The
uncertainty related to the core liability therefore covers both the estimation of the expected core return rate of cores as well as
the value of the outstanding cores.
Reference is made to further details of the repayment obligation and value of cores in note 24.
Deferred tax assets
Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be available against
which the losses can be utilised. Significant management judgement is required to determine the amount of deferred tax assets
that can be recognised, based upon the likely timing and the level of future taxable profits, together with future tax planning
strategies.
A part of the deferred tax assets are tax losses carried forward, which relate to the subsidiaries in UK, France and Belgium. The
tax loss carried forward do not expire and they may not be used to offset taxable income elsewhere in the Group. The tax value
of tax losses carried forward has been recognised, if it has been considered sufficiently probably that the losses will be utilised
within five years.
Further details on taxes are disclosed in Note 18.
3
REVENUE
2023 2022 2023 2022
Denmark
72.078
88.449
50.804
54.709
Europe, other than Denmark
1.802.990
1.726.248
1.093.294
1.027.446
Asia
740
624
0
0
Total revenue
1.875.808 1.815.321 1.144.098 1.082.155
Reman
1.426.061
1.242.568
1.144.098
1.082.155
Newman
449.747
572.753
0
0
Total revenue
1.875.808 1.815.321 1.144.098 1.082.155
4
COST OF SALES
2023 2022 2023 2022
Cost of goods sold
1.029.776 946.451 927.992 886.830
Inventory impairments
12.041 9.086 208 294
Reversed inventory impairments
-21.545 -3.595 -636 -627
The reman segment cover the remanufacturing and sales of finished goods, while the Newman segment cover the business related to
the sales of externally purchased finished goods.
CONSOLIDATED PARENT COMPANY
30
5
STAFF COST
2023 2022 2023 2022
Wages and salaries
342.268 334.844 58.669 53.482
Defined contribution pension plans
8.848 7.059 5.933 5.151
Other social security costs
51.418 49.461 845 845
Share-based payment
3.914 3.286 3.328 2.932
Total staff costs
406.448 394.650 68.775 62.410
Staff costs are recognised as follows:
Cost of sales
248.051 237.696 8.114 9.298
Distribution
112.240 114.277 30.365 28.778
Administration
46.157 42.677 30.296 24.334
Development projects
0 0 0 0
Staff costs recognised in the income statement
406.448 394.650 68.775 62.410
Average number of employees
REMUNERATION TO THE BOARD OF DIRECTORS, EXECUTIVE MANAGEMENT AND KEY MANAGEMENT PERSONNEL
2023 2022 2023 2022
Board of Directors and Executive Management
5.882 5.961 5.882 5.961
Remuneration to Key Management Personnel (Group Directors) 2023 2022
Salaries
13.782 13.604
Pensions
1.047 950
Short term-incentive plans
3.889 3.285
Total Remuneration
18.718 17.839
Headcount of Group Directors at year-end
7 6
With reference to the Danish Financial Statements Act Paragraph 98b, section 3 remuneration to the Key Management have not been
disclosed separately for the Parent company to ensure that remuneration for one single member is not disclosed.
CONSOLIDATED
Remuneration to Key Management Personnel as in accordance with IAS 24, comprise the Group Directors and covers Executive
Management and Key Management.
CONSOLIDATED PARENT COMPANY
CONSOLIDATED PARENT COMPANY
31
5
STAFF COST (Continued)
Share-based payment: Share option programme
Outstanding share options
Executive
Management Others Total
Granted in 2019
10.000
18.000
28.000
Lapsed (from 2019 grant)
0
-6.000
-6.000
Granted in 2020
12.000
16.000
28.000
Granted in 2021
20.000
26.000
46.000
Granted in 2022
20.000
28.000
48.000
Total outstanding options at 31 December 2022
62.000 82.000 144.000
Granted in 2023
20.000
20.000
40.000
Lapsed from 2019 grant -10.000 -12.000 -22.000
Used from 2020 grant
0
-8.000
-8.000
Total outstanding options at 31 December 2023
72.000 82.000 154.000
In 2023, 8.000 options were exercised at an average price of 512,05 DKK.
The assumptions for determining the fair value of unexercised share options at the date of allocation as follows:
On the date of allocation:
2023 grant 2022 grant 2021 grant 2020 grant
Expected volatility 25,03% 24,82% 31,58% 22,21%
Expected option life 47 mth. 49 mth. 49 mth. 48 mth.
Expected dividend per share 15 DKK 14 DKK 14 DKK 13 DKK
Risk free interest rate 2,66% -0,17% -0,54% -0,97%
Other information on option programme:
Exercise price in DKK (1) 577,53 527,07 678,19 528,40
Fair value in DKK per option (2) 96,55 68,35 125,37 44,10
Total fair value in '000 (2) 3.862 3.281 5.767 4.094
Can be exercised from March 2026 March 2025 March 2024 March 2023
Can be exercised until March 2027 March 2026 March 2025 March 2024
The expected volatility is calculated as 12 months' historical volatility based on average share prices. If the option holders have not
exercised their options at the end of the specified period, the options will lapse without any compensation to the holders. Exercise of
the share options is contingent to the holder being in continuing employment during the above-mentioned periods. If the share option
holder resigns before the vesting date, the holder may in some cases have a right to exercise the share option early during a four-week
period following the next interim report from Schouw & Co. In the event of early exercise, the number of options will be reduced
proportionally.
(2) At the date of allocation
(1) On exercise after 4 years (at the latest possible moments)
Management and Senior Managers in the Group are covered by the parent company Schouw & Co.´s share option programme. The
programme entitles participants to acquire shares in Aktieselskabet Schouw & Co. at a price based on the market price at the allocation
date (2023: DKK 567,60) plus a calculated rate (2023: 2%) from the allocation date to the date of exercise. The exercise price is
adjusted less ordinary dividends, which, however, cannot exceed the accrued premium. The costs related to the programme are
calculated according to “Black & Scholes” and are expensed as staff costs linearly over the period of the option and settled to the
parent company.
32
6 FEES TO AUDITORS APPOINTED BY THE GENERAL MEETING 2023 2022
Audit fees
2.110 1.822
Non-audit fees
570
23
Fees for tax- and VAT-related services
127 151
Fees for other services
141 363
Total fees
2.948 2.359
7
RESEARCH AND DEVELOPMENT COSTS
2023 2022 2023 2022
Research & Development costs expensed and development costs
incurred are shown below:
Research and development costs incurred
14.006 9.923 15.524 11.059
Amortisation and impairment of recognised development costs
368 403 0 0
Research and development costs expensed and recognised in
the income statements
14.374 10.326 15.524 11.059
8 DEPRECIATION, AMORTISATION AND IMPAIRMENT LOSSES 2023 2022 2023 2022
Amortisation of intangible assets
17.639 17.012 6.118 6.871
Depreciation of property plant and equipment
16.045 13.802 33 14
Depreciation of lease assets
18.322 17.105 2.569 2.456
Impairment of intangible assets
0 5.500 0 0
Impairment of property plant and equipment
61 111 0 0
Total depreciation, amortisation and impairment losses
52.067 53.530 8.720 9.341
Depreciation/amortisation and impairment is recognised in the
income statement as follows:
Cost of sales
22.386 18.637 178 526
Distribution
21.832 30.542 4.982 5.048
Administration
7.849 4.351 3.560 3.767
Total depreciation, amortisation and impairment losses
52.067 53.530 8.720 9.341
CONSOLIDATED
With reference to the Danish Financial Statements Act Paragraph 96, section 3 Fees to auditors appointed by the General Meeting
have only been provided for the Group.
CONSOLIDATED PARENT COMPANY
CONSOLIDATED PARENT COMPANY
33
9 OTHER OPERATING INCOME AND EXPENSES 2023 2022 2023 2022
Gains on the disposal of property, plant and equipment and
intangible assets
83 95 99 92
Charged to Group companies (i.e. management services)
0 0 38.932 22.942
Sales of customer
0 0 19.895 0
Other operating income
365 1.043 235 99
Total other operating income
448 1.138 59.161 23.133
Losses on the disposal of property, plant and equipment and
intangible assets
89 53 17 0
Storage compensation
0 0 31.687 21.403
Other operating expenses
1.268 155 0 0
Total other operating expenses
1.357 208 31.704 21.403
10
FINANCIAL INCOME
2023 2022 2023 2022
Interest
559 371 0 0
Interests from group loans and cash pool
838 135 44.632 24.947
Interest income on financial assets measured at amortised cost
1.397 506 44.632 24.947
Fair value adjustments of hedgingtransactions transferred from
equity
5.583 208 5.583 0
Other interests
0 0 23 213
Exchange rate adjustments
23.117 1.316 17.816 0
Total financial income
30.097 2.030 68.054 25.160
11
FINANCIAL EXPENSES
2023 2022 2023 2022
Interest expense
654 397 23 20
Interests from lease liabilities
1.092 1.131 50 47
Interests from group loans and cash pool
24.657 6.413 26.302 7.258
Interest expenses from financial liabilities measured at amortised
cost
26.403 7.941 26.375 7.325
Fair value adjustments of hedgingtransactions transferred from
equity
399 0 0 0
Amortisation of Earn-out purchase obligation
4.440 15.419 4.440 15.419
Adjustment of Earn-out obligation
2.060 20.745 2.060 20.745
Exchange rate adjustments
656 9.447 0 3.393
Total financial expenses
33.958 53.552 32.875 46.882
CONSOLIDATED PARENT COMPANY
34
12 TAX ON PROFIT FOR THE YEAR
2023 2022 2023 2022
Tax for the year is composed as follows:
Tax on profit for the year
15.946
30.531
25.140
12.907
Tax on comprehensive income
421
1.930
471
2.252
Total tax
16.367 32.461 25.611 15.159
Tax on profit for the year has been calculated as follows:
Current tax
19.389
32.886
22.395
11.791
Deferred tax
-5.129
348
2.745
-870
Adjustment of prior-year tax charge
1.686
-2.703
0
1.986
Total tax recognised in the income statement
15.946 30.531 25.140 12.907
Effective tax rate:
Calculated 22.0% tax of the profit for the year
21.465 16.466 22.693 12.589
Adjustment of tax related to subsidiaries and PEs
-544 1.510 -4 -10.749
Non-deductible costs and non-taxable income
4.139 17.764 2.557 9.081
Adjustment of prior-year tax charge
1.686 -2.703 -106 1.986
Adjustment of deferred tax asset
-10.800 -2.506 0 0
Recognised tax income
15.946 30.531 25.140 12.907
Effective tax rate
16,3%
40,8%
23,5%
22,6%
Tax recognised in comprehensive income:
2023
Before tax
Tax
After tax
Exchange rate adjustment of foreign subsidiaries -25.907 0 -25.907
Value adjustment of hedging instruments during the year -31.246 6.874 -24.372
Hedging instruments transferred to cost of sales 24.148 -5.313 18.835
Hedging instruments transferred to financials 5.183 -1.140 4.043
Tax on items recognised in comprehensive income -27.822 421 -27.401
2022
Before tax
Tax
After tax
Exchange rate adjustment of foreign subsidiaries 7.572 0 7.572
Value adjustment of hedging instruments during the year -18.004 3.962 -14.042
Hedging instruments transferred to cost of sales 9.023 -1.986 7.037
Hedging instruments transferred to financials 208 -46 162
Tax on items recognised in comprehensive income -1.201 1.930 729
2023
Before tax
Tax
After tax
Exchange rate adjustment of foreign subsidiaries -25.907 0 -25.907
Value adjustment of hedging instruments during the year -32.566 7.165 -25.401
Hedging instruments transferred to financials 5.583 -1.228 4.355
Hedging instruments transferred to cost of sales 24.844 -5.466 19.378
Other comprehensive income from subsidiaries 174 0 174
Tax on items recognised in comprehensive income -27.872 471 -27.401
2022
Before tax
Tax
After tax
Exchange rate adjustment of foreign subsidiaries 7.572 0 7.572
Value adjustment of hedging instruments during the year -8.681 1.910 -6.771
Hedging instruments transferred to financials 208 -46 162
Hedging instruments transferred to cost of sales -1.763 388 -1.375
Other comprehensive income from subsidiaries 1.141 0 1.141
Tax on items recognised in comprehensive income -1.523 2.252 729
CONSOLIDATED PARENT COMPANY
CONSOLIDATED
PARENT COMPANY
35
13
INTANGIBLE ASSETS
2023
Completed
development
projects
Development
projects in
progress
Customer
relations Brands
Know-
how
IT
projects
Other
intangible
assets Total
Cost at 1 January
18.490 3.457 22.161 35.500 27.189 20.112 2.338 129.247
Foreign exchange adjustment
0
0
16
0
0
152
77
245
Additions
0
1.148
0
0
0
125
14
1.287
Disposals
0
0
0
0
0
-21
0
-21
Transferred/reclassified
0
-1.752
0
0
0
1.752
0
0
Cost at 31 December
18.490 2.853 22.177 35.500 27.189 22.120 2.429 130.758
Amortisation and impairment at 1
January
18.490 0 4.404 20.500 5.438 16.957 1.397 67.186
Foreign exchange adjustment
0
0
3
0
0
132
15
150
Amortisation
0
0
2.217
10.000
2.719
2.398
305
17.639
Amortisation and impairment of
disposed assets
0 0 0 0 0 -13 0 -13
Amortisation and impairment at 31
December
18.490 0 6.624 30.500 8.157 19.474 1.717 84.962
Carrying amount at 31 December
0 2.853 15.553 5.000 19.032 2.646 712 45.796
Amortized over (years)
3 10-15 3-20 10-15 3-5 1-3
2022
Completed
development
projects
Development
projects in
progress
Customer
relations Brands
Know-
how
IT
projects
Other
intangible
assets Total
Cost at 1 January
18.490
839
22.164
35.500
27.189
18.588
1.487
124.257
Foreign exchange adjustment
0
0
-3
0
0
-44
-2
-49
Additions
0
3.703
0
0
0
237
0
3.940
Disposals
0
0
0
0
0
0
-23
-23
Transferred/reclassified
0
-1.085
0
0
0
1.331
876
1.122
Cost at 31 December
18.490 3.457 22.161 35.500 27.189 20.112 2.338 129.247
Amortisation and impairment at 1
January
18.182 0 2.217 5.917 2.719 14.339 1.358 44.732
Foreign exchange adjustment
0
0
0
0
0
-33
-1
-34
Impairment
0
0
0
5.500
0
0
0
5.500
Amortisation
308
0
2.187
9.083
2.719
2.651
64
17.012
Amortisation and impairment of
disposed assets
0 0 0 0 0 0 -24 -24
Amortisation and impairment at 31
December
18.490 0 4.404 20.500 5.438 16.957 1.397 67.186
Carrying amount at 31 December
0 3.457 17.757 15.000 21.751 3.155 941 62.061
Amortized over (years)
3 10-15 3-20 10-15 3-5 3-5
CONSOLIDATED
Management have not identified issues, which indicate need for impairment regarding intangible assets.
36
13 INTANGIBLE ASSETS
(Continued)
2023
Completed
development
projects
Development
projects in
progress
Customer
relations Brands
Know-
how
IT
projects
Other
intangible
assets Total
Cost at 1 January
18.490 3.456 14.930 0 27.189 17.584 1.238 82.887
Additions
0
1.148
0
0
0
0
0
1.148
Transferred/reclassified
0
-1.752
0
0
0
1.752
0
0
Cost at 31 December
18.490 2.852 14.930 0 27.189 19.336 1.238 84.035
Amortisation and impairment at 1
January
18.490 0 3.545 0 5.438 15.091 1.238 43.802
Amortisation
0
0
1.493
0
2.719
1.906
0
6.118
Amortisation and impairment at 31
December
18.490 0 5.038 0 8.157 16.997 1.238 49.920
Carrying amount at 31 December
0 2.852 9.892 0 19.032 2.339 0 34.115
Amortized over (years)
3 10-15 10-15 3-5 3-5
2022
Completed
development
projects
Development
projects in
progress
Customer
relations Brands
Know-
how
IT
projects
Other
intangible
assets Total
Cost at 1 January
18.490 838 18.461 0 27.189 16.402 1.238 82.618
Additions
0
3.703
0
0
0
97
0
3.800
Disposals
0
0
-3.531
0
0
0
0
-3.531
Transferred/reclassified
0
-1.085
0
0
0
1.085
0
0
Cost at 31 December
18.490 3.456 14.930 0 27.189 17.584 1.238 82.887
Amortisation and impairment at 1
January
18.196 0 1.846 0 2.719 12.946 1.224 36.931
Amortisation
308
0
1.699
0
2.719
2.145
0
6.871
Transferred/reclassified
-14
0
0
0
0
0
14
0
Amortisation and impairment at 31
December
18.490 0 3.545 0 5.438 15.091 1.238 43.802
Carrying amount at 31 December
0 3.456 11.385 0 21.751 2.493 0 39.085
Amortized over (years) 3
10-15
10-15
3-5 3-5
PARENT COMPANY
Management have not identified issues, which indicate need for impairment regarding intangible assets.
37
14 PROPERTY, PLANT AND EQUIPMENT
2023
Land and
buildings
Plant and
machinery
Other fixtures,
tools and
equipment
Assets under
construction Total
Cost at 1 January
90.950 53.156 29.469 36.290 209.865
Foreign exchange adjustment
4.831
3.088
1.836
1.256
11.011
Additions
38.092
2.703
6.669
11.602
59.066
Disposals
-4
-534
-389
-178
-1.105
Transferred/reclassified
24.199
9.711
6.753
-40.663
0
Cost at 31 December
158.068 68.124 44.338 8.307 278.837
Depreciation and impairment at 1 January
10.341 19.332 14.250 111 44.034
Foreign exchange adjustment
678
1.304
1.058
12
3.052
Impairment
0
0
0
61
61
Depreciation
3.560
6.582
5.903
0
16.045
Depreciation and impairment of disposed assets
-3
-188
-140
0
-331
Depreciation and impairment at 31 December
14.576 27.030 21.071 184 62.861
Carrying amount at 31 December
143.492 41.094 23.267 8.123 215.976
Depreciated over (years)
5-40
5-18
3-18
Legal obligation at 31 December for the purchase of
property, plant and equipment
2.996 51 619 0 3.666
Interest recognised during the period
2.057
0
0
0
2.057
Average interest used
4,93%
2022
Land and
buildings
Plant and
machinery
Other fixtures,
tools and
equipment
Assets under
construction Total
Cost at 1 January
84.192 35.456 19.161 22.462 161.271
Foreign exchange adjustment
-1.135
-835
-314
-416
-2.700
Additions
1.281
3.692
3.989
41.980
50.942
Disposals
0
-114
-522
0
-636
Transferred to leased assets/reclassified
6.612
14.957
7.155
-27.736
988
Cost at 31 December
90.950 53.156 29.469 36.290 209.865
Depreciation and impairment at 1 January
7.130 12.068 9.767 0 28.965
Foreign exchange adjustment
-153
-342
-205
0
-700
Impairment
0
0
0
111
111
Depreciation
3.364
5.381
5.057
0
13.802
Depreciation and impairment of disposed assets
0
-108
-146
0
-254
Transferred/reclassified
0
2.333
-223
0
2.110
Depreciation and impairment at 31 December
10.341 19.332 14.250 111 44.034
Carrying amount at 31 December
80.609 33.824 15.219 36.179 165.831
Depreciated over (years)
5-40
5-18
3-18
Legal obligation at 31 December for the purchase of
property, plant and equipment
26.556 219 820 27.596
Interest recognised during the period
144
144
Average interest used
1,69%
CONSOLIDATED
No significant changes have been made in accounting estimates regarding property, plant and equipment.
Management have not identified issues, which indicate need for impairment regarding property, plant and equipment.
38
14
PROPERTY, PLANT AND EQUIPMENT
(Continued)
2023
Land and
buildings
Plant and
machinery
Other fixtures,
tools and
equipment
Assets under
construction Total
Cost at 1 January
0 39 109 20.626 20.774
Additions
36.431
0
4.844
0
41.275
Disposals
0
0
-67
0
-67
Transfer
20.626
0
0
-20.626
0
Cost at 31 December
57.057 39 4.886 0 61.982
Depreciation and impairment at 1 January
0 39 92 0 131
Depreciation
0
0
33
0
33
Disposals
0
0
-62
0
-62
Depreciation and impairment at 31 December
0 39 63 0 102
Carrying amount at 31 December
57.057 0 4.823 0 61.880
Depreciated over (years)
30
5
3-5
Legal obligation at 31 December for the purchase of
property, plant and equipment
2.876 0 0 0 2.876
Interest recognised during the period
2.057
0
0
0
2.057
Average interest used
4,93%
2022
Land and
buildings
Plant and
machinery
Other fixtures,
tools and
equipment
Assets under
construction Total
Cost at 1 January
0 39 109 1.263 1.411
Additions
0
0
0
19.363
19.363
Cost at 31 December
0 39 109 20.626 20.774
Depreciation and impairment at 1 January
0 39 78 0 117
Depreciation
0
0
14
0
14
Depreciation and impairment at 31 December
0 39 92 0 131
Carrying amount at 31 December
0 0 17 20.626 20.643
Depreciated over (years)
5
3-5
Legal obligation at 31 December for the purchase of
property, plant and equipment
26.176 0 0 0 26.176
Interest recognised during the period
0
0
0
144
144
Average interest used
1,69%
PARENT COMPANY
No significant changes have been made in accounting estimates regarding property, plant and equipment.
Management have not identified issues, which indicate need for impairment regarding property, plant and equipment.
39
15 RIGHT OF USE ASSETS
2023
Buildings Cars
Production
equipment Other assets Total
Cost at 1 January
63.973 8.919 5.216 694 78.802
Foreign exchange adjustment
2.028
63
278
3
2.372
Additions
22.426
3.738
420
3
26.587
Disposals
-1.101
-3.615
-3.446
0
-8.162
Re-measure / modification of lease assets
0
-6
-160
0
-166
Cost at 31 December
87.326 9.099 2.308 700 99.433
Amortisation and impairment at 1 January
31.958 5.646 4.433 333 42.370
Foreign exchange adjustment
1.532
30
-38
1
1.525
Amortisation
14.628
2.849
615
230
18.322
Amortisation and impairment of disposed assets
-323
-3.486
-3.301
0
-7.110
Amortisation and impairment at 31 December
47.795 5.039 1.709 564 55.107
Carrying amount at 31 December
39.531 4.060 599 136 44.326
Depreciated over (years)
1-7
3
3-5
3-5
2022
Buildings Cars
Production
equipment Other assets Total
Cost at 1 January
59.840 8.311 6.159 694 75.004
Foreign exchange adjustment
-1.385
-32
-133
0
-1.550
Additions
5.518
1.705
119
0
7.342
Disposals
0
-1.065
-929
0
-1.994
Cost at 31 December
63.973 8.919 5.216 694 78.802
Amortisation and impairment at 1 January
19.979 3.752 4.362 2 28.095
Foreign exchange adjustment
-717 -20 -100 1 -836
Amortisation
12.696
2.976
1.103
330
17.105
Amortisation and impairment of disposed assets
0
-1.062
-932
0
-1.994
Amortisation and impairment at 31 December
31.958 5.646 4.433 333 42.370
Carrying amount at 31 December
32.015 3.273 783 361 36.432
CONSOLIDATED
40
15
RIGHT OF USE ASSETS (Continued)
2023
Buildings Cars
Production
equipment Other assets Total
Cost at 1 January
2.933 4.657 0 0 7.590
Additions
0
1.620
0
0
1.620
Disposals
-547
-1.957
0
0
-2.504
Cost at 31 December
2.386 4.320 0 0 6.706
Amortisation and impairment at 1 January
1.150 2.885 0 0 4.035
Amortisation
1.147
1.422
0
0
2.569
Disposals
0
-1.868
0
0
-1.868
Amortisation and impairment at 31 December
2.297 2.439 0 0 4.736
Carrying amount at 31 December
89 1.881 0 0 1.970
Depreciated over (years)
2 3
2022
Buildings Cars
Production
equipment Other assets Total
Cost at 1 January
2.864
3.561
0
0
6.425
Additions
69
1.096
0
0
1.165
Adjusted cost at 1 January
2.933 4.657 0 0 7.590
Amortisation and impairment at 1 January
0 1.579 0 0 1.579
Amortisation
1.150
1.306
0
0
2.456
Amortisation and impairment at 31 December
1.150 2.885 0 0 4.035
Carrying amount at 31 December
1.783 1.772 0 0 3.555
LEASE LIABILITIES
Lease liabilities expiring within the following
periods from the balance sheet date:
2023 2022 2023 2022
Within 1 year
19.234
19.544
941
2.188
Between 1 and 5 years
39.095
31.982
704
1.087
After 5 years
0
2.145
0
0
Total lease liability, non-discounted 58.329 53.671 1.645 3.275
Lease liabilities are recognised in the balance sheet as follows:
Non-current liabilities
39.095
34.127
704
1.087
Current liabilities
19.234
19.544
941
2.188
Total lease liabilities 58.329 53.671 1.645 3.275
Repayment of lease debt
22.127
20.043
2.630
2.382
Recognised interests on lease contracts
1.092
1.131
50
47
Lease payments in the year 23.219 21.174 2.680 2.429
CONSOLIDATED PARENT COMPANY
PARENT COMPANY
41
15
RIGHT OF USE ASSETS (Continued)
Lease agreements not recognised in the balance sheet
Service*
Small
value
assets
Short term
leases Total Service*
Small
value
assets
Short
term
leases Total
Due for payment within 1 year 326 37 0 363 301 31 0 332
Due for payment within >1-5 years 81 0 0 81 67 19 0 86
Due for payment after 5 years 0 0 0 0 0 0 0 0
Total commitments 407 37 0 444 368 50 0 418
Recognised in the income statement
372 608 0 980 489 366 0 855
Service*
Small
value
assets
Short term
leases Total Service*
Small
value
assets
Short
term
leases Total
Due for payment within 1 year 218 20 0 238 205 12 0 217
Due for payment within >1-5 years 0 0 0 0 2 2 0 4
Due for payment after 5 years 0 0 0 0 0 0 0 0
Total commitments 218 20 0 238 207 14 0 221
Recognised in the income statement
230 34 0 264 378 11 0 389
Other leasing information
0-1 years 1-5 years > 5 years
Total
cash flow
Sublease 1.764 6.671 0 8.435
Sale-and lease back 50 0 0 50
Total cash-flow impact 1.814 6.671 0 8.485
BA Group have subleased a part of a Right-of-use assets to an external party. The expected future income related to the sublease
amounts to a total of TDKK 12.588, and a total amount of TDKK 1.705 have impacted cash flow in 2023.
Further BA Group and the parent company have, related to the property sold in Denmark in 2021, entered into a sale-and leaseback
agreement with the external buyer. The lease terminates in January 2024.
The sublease and sale-and lease back arrangement will impact the cash-flows as listed below:
*) Comment: The service (variable) element of lease contracts is the part of the lease commitment that are not included in the lease
obligation in the balance sheet.
CONSOLIDATED
PARENT COMPANY
2023 2022
42
16 INVESTMENTS IN SUBSIDIARIES
2023 2022
Cost at 1 January
268.463 268.441
Additions
0 22
Cost at 31 December
268.463 268.463
Adjustments at 1 January
232.667 199.980
Foreign exchange adjustments
25.907 -7.572
Share of profit/(loss) after tax for the year
3.613 48.845
Other value adjustments
-175 -1.140
Dividends paid
-5.212 -7.446
Adjustments at 31 December
256.800 232.667
Carrying amount at 31 December
525.263 501.130
Name Registered Office
Ownership
interest
2023
Ownership
interest
2022
Borg Automotive Sp. z.o.o. 100% 100%
Borg Automotive UK Ltd. 100% 100%
Electro Steer UK Ltd. 100% 100%
Car Parts Industries Belgium SPRL 100% 100%
Borg Automotive Spain S.L.
Spain, Palermo
100% 100%
Borg Automotive Reman Spain S.L.
Spain, Palermo
100% 100%
SBS Automotive A/S 100% 100%
SBS Deutschland GmbH Germany, Eisenach 100% 100%
SBS France SAS France, Beauvais 100% 100%
All subsidiaries are Limited Liability Companies.
Poland, Zdunska Wola
UK, Birmingham
Belgium, Nivelles
Denmark, Støvring
UK, Birmingham
43
17 ACQUISITION OF SUBSIDIARIES AND BUSINESSES
No new acqusitions was made in 2023.
2023 2022
Acqusition of subsidiary 206.500 0
Acqusition of business 0 7.811
Total cash acquisition costs
206.500 7.811
In 2022 the group paid the remaining earn-out, MDKK 7,8 relating to the acquisition of Turbo Motor Inyección, S.L.U. (TMI) and Turbos
y componentes automoción, S.L.U. (TCA) in 2020.
The acqusition of SBS Group in 2021, entailed a contingent consideration impacting other debt with MDKK 200 end of 2022. In 2023
final payment was made of MDKK 206,5.
The assets and liabilitites recognised as a result of the acqusition are as follows:
44
18 DEFERRED TAX
2023 2022 2023 2022
Defered tax at 1 January 86.785 89.538 34.616 35.998
Foreign exchange adjustment
1.286 -475 0 0
Deferred tax for the year recognised in profit for the year
5.129 -348 -2.745 870
Deferred tax for the year recognised in equity -421 -1.930 -471 -2.252
Deferred tax at 31 December, net
92.779 86.785 31.400 34.616
Deferred tax is recognised as follows in the balance sheet:
Deferred tax asset
96.299 87.890 31.400 34.616
Deferred tax liability
-3.520 -1.105 0 0
Net deferred tax at 31 December
92.779 86.785 31.400 34.616
Deferred tax pertains to:
Intangible assets
1.534 2.010 -5.339 -5.677
Property, plant and equipment
4.029 6.122 -1.368 -12
Receivables
-1.994 -2.231 0 0
Inventories
8.143 11.303 0 0
Other current assets
0 548 0 0
Equity
-2.006 -1.585 -2.229 -1.758
Provisions
-1 1.925 0 0
Liabilities other than provisions
66.446 59.173 40.336 42.063
Tax losses
16.628 9.520 0 0
Total deferred tax (net liability)
92.779 86.785 31.400 34.616
Tax losses carried forward are recognised in the balance sheet only if they are expected to be utilised within a period of 5 (five) years.
This principle entails that an amount of MDKK 9,1 (2022: MDKK 12,9) related to the subsidiary Borg Automotive UK Ltd., The
unrecognised tax loss may be carried forward for an unlimited period.
CONSOLIDATED PARENT COMPANY
45
18 DEFERRED TAX
(Continued)
2023
1 Jan.
Foreign
exchange
adjustment
Additions on
acquisition
Recognised in
profit for the
year
Recognised in
equity 31 Dec.
Intangible assets
2.010 0 0 -476 0 1.534
Property, plant and equipment
6.122 -1 0 -2.092 0 4.029
Receivables
-2.231 -6 0 243 0 -1.994
Inventories
11.303 450 0 -3.610 0 8.143
Other current assets
548 1 0 -549 0 0
Equity, Hedging
-1.585 0 0 0 -421 -2.006
Provisions
1.925 68 0 -1.994 0 -1
Liabilities other than provisions
59.173 733 0 6.540 0 66.446
Tax losses
9.520 41 0 7.067 0 16.628
Deferred tax at 31 December, net
86.785 1.286 0 5.129 -421 92.779
2022
1 Jan.
Foreign
exchange
adjustment
Additions on
acquisition
Recognised in
profit for the
year
Recognised in
equity 31 Dec.
Intangible assets
4.972 0 0 -2.962 0 2.010
Property, plant and equipment
2.279 1 0 3.842 0 6.122
Receivables
0 0 0 -2.231 0 -2.231
Inventories
8.787 -110 0 2.626 0 11.303
Other current assets
1.707 0 0 -1.159 0 548
Equity, Hedging
345 0 0 0 -1.930 -1.585
Provisions
1.988 -41 0 -22 0 1.925
Liabilities other than provisions
55.031 0 0 4.142 0 59.173
Recaptured losses
5.085 -19 0 -5.066 0 0
Tax losses
9.344 -306 0 482 0 9.520
Deferred tax at 31 December, net
89.538 -475 0 -348 -1.930 86.785
2023
1 Jan.
Foreign
exchange
adjustment
Additions on
acquisition
Recognised in
profit for the
year
Recognised in
equity 31 Dec.
Intangible assets
-5.677 0 0 338 0 -5.339
Property, plant and equipment
-12 0 0 -1.356 0 -1.368
Equity, Hedging
-1.758 0 0 0 -471 -2.229
Liabilities other than provisions
42.063 0 0 -1.727 0 40.336
Deferred tax at 31 December, net
34.616 0 0 -2.745 -471 31.400
2022
1 Jan.
Foreign
exchange
adjustment
Additions on
acquisition
Recognised in
profit for the
year
Recognised in
equity 31 Dec.
Intangible assets
-6.529 0 0 852 0 -5.677
Property, plant and equipment
88 0 0 -100 0 -12
Equity, Hedging
494 0 0 0 -2.252 -1.758
Liabilities other than provisions
41.945 0 0 118 0 42.063
Deferred tax at 31 December, net
35.998 0 0 870 -2.252 34.616
PARENT COMPANY
CONSOLIDATED
46
19 INVENTORIES
2023 2022 2023 2022
Raw materials and consumables
393.883 362.848 13.275 14.727
Finished goods and goods for resale
447.023 591.172 42.810 41.715
Total inventories
840.906 954.020 56.085 56.442
Inventory values are presented at lower of cost and net realisable value.
Cost of inventories for which impairment losses have been
recognised
276.851 285.943 432 1.057
Accumulated impairment losses on inventories
-66.896
-73.803
-299
-935
Net sales value 209.955 212.140 133 122
20 CORPORATE INCOME TAX
2023 2022 2023 2022
Income tax payable at 1 Janaury
-10.604 -18.258 5.112 -6.989
Exchange adjustments
-489 -26 0 0
Current tax for the year
-19.389 -32.886 -22.395 -11.791
Adjustment related to prior years
-1.686 3.363 0 -1.986
Corporate income tax paid during the year
30.627 16.048 0 3
Joint taxation contribution paid during the year
16.507 21.155 14.582 25.875
Income tax at 31 December
14.966 -10.604 -2.701 5.112
Which is distributed as follows:
Corporate income tax, receivable
27.477 3.214 0 0
Joint taxation contribution, receivable
0 5.118 0 5.118
Corporate income tax, payable
-6.593 -16.867 -10 -6
Joint taxation contribution, payable
-5.918 -2.069 -2.691 0
Income tax at 31 December
14.966 -10.604 -2.701 5.112
Defered tax:
The Group has applied the temporary excemption issued by IASB in May 2023 from the accounting requirements for deferred taxes in
IAS 12. Accordingly, the Group neither recognizes nor discloses information about deferred tax assets and liabilities to Pillar Two
income taxes.
The Pillar Two legislation enacted in Denmark in December 2023 will be effective for the Danish Group’s financial year beginning 1
January 2024. It implies that the parent company, Aktieselskabet Schouw & Co. will be required to pay top-up tax on profits of its
subsidiaries to the Danish tax authorities if these are locally taxed at an effective tax rate of less than 15 per cent (minimum tax). If
the relevant jurisdiction has enacted local top-up tax rules, the top-up tax will be paid locally.
The Group is in the process of assessing the potential exposure arising from the complex Pillar Two legislation. The assessment is
currently not completed. Hence, quantitative information to indicate potential exposure to Pillar Two income taxes is presently not
known or reasonably estimable. The assessment carried out so far indicates that the most jurisdictions should not be exposed,
because the effective tax rate is 15% or higher. The Group expects to complete the assessment in the first of half of financial year
2024.
CONSOLIDATED PARENT COMPANY
During 2023, TDKK 12.226 (2022: TDKK 10.025) was recognised in inventory as write-down of inventory to net realisable value at
Group level. The adjustment of TDKK 2.201 (2022: TDKK 5.495) is recognised in cost of sales as a cost.
In the Parent Company, TDKK 2.201 (2022: TDKK 5.495) was recognised during 2022 as a cost for inventories carried at net
realisable value. An income was offset in cost sales (TDKK 1.461) or as a cost as part of result in shares in subsidiaries (TDKK 3.662).
CONSOLIDATED PARENT COMPANY
47
21 RECEIVABLES AND PAYABLES WITH RELATED PARTIES
2023 2022 2023 2022
Receivables from related parties, interest-bearing, non-current
0 0 594.408 516.365
Receivables from related parties, interest-bearing, current
0 0 0 106.066
Receivables from related parties, current
0 0 14.118 1.789
Payables to related parties, interest-bearing, non-current
0 0 -52.462 -71.137
Payables to related parties, interest-bearing, current
-588.655 -386.390 -596.123 -389.582
Payables to related parties, current
0 0 -153.620 -149.279
-588.655 -386.390 -193.679 14.222
Recognised as follows in assets:
Receivables from related parties, non-current 0 0 594.408 516.365
Receivables from related parties, current 0 0 14.118 107.855
Payables to related parties, non-current 0 0 -52.462 -71.137
Payables to related parties, current -588.655 -386.390 -749.743 -538.861
-588.655 -386.390 -193.679 14.222
22 SHARE CAPITAL 2023 2022
The share capital consists of 5.000 shares of each DKK 200.
1.000
1.000
Aktieselskabet Schouw & Co.
Chr. Filtenborgs Plads 1, 8000 Aarhus C
Company registration number: 63 96 58 12
The following shareholder is registered to hold 100 % of the shares and voting capital of the company:
CONSOLIDATED PARENT COMPANY
The shares have not been divided into classes. During the last five years, no changes have been made to the share capital.
48
23 INTEREST-BEARING DEBT
2023 2022 2023 2022
Debt recognised in the balance sheet:
Credit institutions
37 383 0 0
Lease liabilities
39.095 34.127 704 1.087
Payables to related parties
0 0 52.462 71.137
Non-current interest bearing debt
39.132 34.510 53.166 72.224
Current portion of non-current interest-bearing debt
19.628 19.845 941 2.188
Payables to related parties
588.655 386.390 596.123 389.582
Current interest-bearing debt
608.283 406.235 597.064 391.770
Total interest-bearing debt
647.415 440.745 650.230 463.994
Fair-value of interest-bearing debt
647.415 440.745 650.230 463.994
Weighted average effective rate of interest for the year was (%)
5,0% 1,9% 4,9% 1,6%
Weighted average effective rate of interest for the balance sheet
date was (%)
6,8% 2,6% 5,8% 3,1%
Interest-bearing debt per currency:
DKK
535.126 289.699 514.516 262.530
EUR
63.639 112.520 115.689 180.939
PLN 36.006 22.696 14.116 14.587
GBP
9.923 12.834 4.249 4.193
USD
2.721 2.995 1.660 1.745
Other
0 1 0 0
Total interest-bearing debt 647.415 440.745 650.230 463.994
PARENT COMPANYCONSOLIDATED
BA Group net-borrowings are mainly in DKK, EUR, PLN and GBP with floating rates. The fair value of the floating rate loans are
approximately the carrying amounts.
49
23 INTEREST-BEARING DEBT (Continued)
Development in Net interest-bearing debt
2023
1 Jan.
Cash flow
Acquisi-
tions
Currency
exchange
movements Leasing Other
31 Dec.
Interest-bearing assets
Non-current receivables
72 0 0 0 0 0 72
Cash
14.149 -3.142 0 969 0 0 11.976
Interest-bearing liabilities
Non-current credit institutions
-383 377 0 -31 0 0 -37
Non-current lease liabilities
-34.127 0 0 -302 -4.666 0 -39.095
Current part of non-current, credit
institutions
-301 -69 0 -24 0 0 -394
Current part of non-current lease debt
-19.544 22.127 0 -526 -21.291 0 -19.234
Current debt to group companies
-386.390 -202.370 0 105 0 0 -588.655
Net interest-bearing debt
-426.524 -183.077 0 191 -25.957 0 -635.367
2022
1 Jan.
Cash flow
Acquisi-
tions
Currency
exchange
movements Leasing Other
31 Dec.
Interest-bearing assets
Non-current receivables
72 0 0 0 0 0 72
Cash
23.689 -9.518 0 -22 0 0 14.149
Interest-bearing liabilities
Non-current credit institutions
0 -684 0 0 0 301 -383
Non-current lease liabilities
-48.843 0 0 616 14.100 -34.127
Current part of non-current mortgage debt
-3.762 3.762 0 0 0 0 0
Current part of non-current, credit
institutions
0 0 0 0 0 -301 -301
Current part of non-current lease debt
-18.391 20.043 0 241 -21.437 -19.544
Current debt to group companies
-90.541 -297.844 0 1.995 0 0 -386.390
Net interest-bearing debt
-137.776 -284.241 0 2.830 -7.337 0 -426.524
CONSOLIDATED
Non-cash changes
Non-cash changes
50
23 INTEREST-BEARING DEBT (Continued)
Development in Net interest-bearing debt
2023
1 Jan.
Cash flow
Acquisi-
tions
Currency
exchange
movements Leasing Other
31 Dec.
Interest-bearing assets
Non-current receivables from related parties 516.365 2.455 0 31.027 0 44.561 594.408
Current receivables from related parties 106.066 -106.066 0 0 0 0 0
Cash 804 -198 0 119 0 0 725
Interest-bearing liabilities
Non-current lease liabilities -1.087 0 0 0 383 0 -704
Non-current payables to related parties -71.137 21.373 0 -145 0 -2.553 -52.462
Current part of non-current lease debt -2.188 2.630 0 0 -1.383 0 -941
Current payables to related parties -389.582 -206.496 0 -45 0 0 -596.123
Net interest-bearing debt 159.241 -286.302 0 30.956 -1.000 42.008 -55.097
2022
1 Jan.
Cash flow
Acquisi-
tions
Currency
exchange
movements Leasing Other
31 Dec.
Interest-bearing assets
Non-current receivables from related parties
246.317 253.337 0 -6.689 0 23.400 516.365
Current receivables from related parties
80.886 25.196 0 -16 0 0 106.066
Cash
12.602 -11.797 0 -1 0 0 804
Interest-bearing liabilities
Non-current lease liabilities -2.527 0 0 0 1.440 0 -1.087
Non-current payables to related parties -77.969 7.868 0 -5 0 -1.031 -71.137
Current part of non-current mortgage debt -3.762 3.762 0 0 0 0 0
Current part of non-current lease debt -1.966 2.382 0 0 -2.604 0 -2.188
Current payables to related parties -140.100 -250.392 0 910 0 0 -389.582
Net interest-bearing debt
113.481 30.356 0 -5.801 -1.164 22.369 159.241
PARENT COMPANY
Non-cash changes
Non-cash changes
51
24
OTHER PAYABLES
2023 2022 2023 2022
Core liability, specification below
69.268
70.105
54.315
55.609
Employee related debt
2.898
4.508
0
0
Other payables
0
33
0
33
Other payables, non-current 72.166 74.646 54.315 55.642
Core liability, specification below
207.803
210.317
162.944
166.826
Employee related debt
36.738
33.343
5.838
7.040
Hedging instruments
1.412
788
0
0
Customer bonus
44.728
51.351
26.567
22.048
VAT
10.905
6.861
8.938
4.053
Contingent considerations (Earn-out)
0
200.000
0
200.000
Other payables
15.779
10.470
2.866
2.583
Other payables, current
317.365 513.130 207.153 402.550
Total other payables 389.531 587.776 261.468 458.192
CORE LIABILITY 2023 2022 2023 2022
BA Group has a repayment obligation in respect of deposits
received from customers conditional on and at the same rate as
customers return of used units (cores).
Repayment obligation at year-end
639.372
643.061
486.003
512.938
Estimated value of cores
-362.302 -362.639 -268.744 -290.503
Net core liability accrued for in the balance sheet
277.071 280.422 217.259 222.435
Contingent consideration
In 2023 the group has paid the remaining earn-out, MDKK 206,5 relating to the acquisition of SBS Automotive A/S and subsidiaries
(SBS Group) in 2021. Of this the MDKK 200 was included as a contingent considertaion in 2022.
CONSOLIDATED PARENT COMPANY
52
25 PROVISIONS 2023 2022 2023 2022
At 1 January
29.411
26.355
28.179
26.092
Utilized during the year
-16.460
-13.738
-15.357
-13.600
Additions
19.746
16.794
13.447
15.687
At 31 December
32.697 29.411 26.269 28.179
Recognised in the balance sheet as follows:
Non-current liabilities
17.123 12.952 13.757 12.822
Current liabilities
15.575 16.459 12.513 15.357
Provisions 31 December
32.698 29.411 26.270 28.179
Recognised in the income statement:
Cost of sales
19.746
16.794
13.447
15.687
Provisions recognised in the income statement
19.746 16.794 13.447 15.687
The historical return rate of warranty units in 2023 was on average 12 months, which is the same level as in 2022.
26 ADJUSTMENT FOR NON-CASH TRANSACTIONS
2023 2022 2023 2022
Purchase of intangible assets
-1.287 -3.940 -1.148 -3.800
Of which had not been paid at the balance sheet date/adjustment
for the year
1 72 1 72
Amount paid in relation to intangible assets
-1.286 -3.868 -1.147 -3.728
Purchase of property, plant and equipment
-59.066
-50.942
-41.275
-19.363
Of which had not been paid at the balance sheet date/adjustment
for the year
6.974 2939 6.380 2740
Amount paid in relation to purchase of property, plant and
equipment
-52.092 -48.003 -34.895 -16.623
Incurring financial liabilities
26.588
7.739
1.620
1.165
Of which lease debt
-26.588 -7.055 -1.620 -1.165
Proceeds from incurring financial liabilities
0 684 0 0
27 CHANGES IN WORKING CAPITAL
2023 2022 2023 2022
Change in inventories
152.433 -249.028 357 -3.070
Change in receivables
-76.930 -14.845 -85.077 -8.386
Change in trade payables and other payables
-79.694 -23.527 -741 114.992
Changes in working capital in total -4.191 -287.400 -85.461 103.536
CONSOLIDATED PARENT COMPANY
CONSOLIDATED PARENT COMPANY
CONSOLIDATED PARENT COMPANY
Provisions made comprise of warranty commitments related to goods sold, since the company has a contractual obligation to provide
warranties up to 24 months. Under these warranties the company either replace or repair goods which do not function according to
promised standards. The statement of expected expiry dates is based on historical data and previous experience related to the
typical receival or return of goods.
53
28 FINANCIAL ASSETS AND LIABILITIES
CONSOLIDATED
2023
Carrying
amount Fair value 0-1 years 1-5 years > 5 years
Total cash
flow
Trade receivables
325.184
325.184
325.184
0
0
325.184
Other receivables
48.067
48.067
35.781
12.286
0
48.067
Cash in hand and in bank
11.976
11.976
11.976
0
0
11.976
Receivables measured at amortised cost 385.227 385.227 372.941 12.286 0 385.227
Derivative financial assets (level 2)
10.127 10.127 10.127 0 0 10.127
Financial derivaties used for hedging purposes 10.127 10.127 10.127 0 0 10.127
Total financial assets 395.354 395.354 383.068 12.286 0 395.354
Interest bearing debt
431
431
394
37
0
431
Lease liabilities
58.329
58.329
19.234
40.622
0
59.856
Payables to related parties
588.655
588.655
588.655
0
0
588.655
Trade payables
181.735
181.735
181.735
0
0
181.735
Other payables
388.518
388.518
316.352
72.166
0
388.518
Financial liabilities measured at amortised cost 1.217.668 1.217.668 1.106.370 112.825 0 1.219.195
Derivative financial liabilities (level 2)
1.013 1.013 1.013 0 0 1.013
Financial derivaties used for hedging purposes 1.013 1.013 1.013 0 0 1.013
Total financial liabilities 1.218.681 1.218.681 1.107.383 112.825 0 1.220.208
Non-contractual items such as accruals and dererred income are excluded from other receivables and other debt.
The maturity profile of financial assets and liabilities is disclosed below according to category and calss distributed on period to
maturity. All interest payments on and repayments of financial asasets and liabilitites are based on contracts.
At 31 December 2023 exchange rate contracts have been applied for hedging of cash flows covering future periods. The hedging
relates to BA Groups purchase of finished goods in USD, sales of finished goods in NOK as well as the internal trade of finished
goods in PLN. All contracts are expected to expire - and thus affect results - in the financial year 2024. Derivatives are disclosed in
note 30.
Due to the short term nature of trade receivables and trade payables as well as other receivables and other debt falling due within
1 year, their carrying amount are considered to be approximately the same as their fair value.
54
28 FINANCIAL ASSETS AND LIABILITIES
CONSOLIDATED
2022
Carrying
amount Fair value 0-1 years 1-5 years > 5 years
Total cash
flow
Trade receivables
235.803
235.803
235.803
0
0
235.803
Other receivables
59.396
59.396
48.790
9.597
1.009
59.396
Cash in hand and in bank
14.149
14.149
14.149
0
0
14.149
Receivables measured at amortised cost 309.348 309.348 298.742 9.597 1.009 309.348
Derivative financial assets (level 2)
7.988 7.988 7.988 0 0 7.988
Financial derivaties used for hedging purposes 7.988 7.988 7.988 0 0 7.988
Total financial assets 317.336 317.336 306.730 9.597 1.009 317.336
Interest bearing debt
684
684
336
417
0
753
Lease liabilities
53.671
53.671
20.326
32.896
2.153
55.375
Payables to related parties
386.390
386.390
386.390
0
0
386.390
Trade payables
255.124
255.124
255.124
0
0
255.124
Other payables
386.988
386.988
312.342
74.646
0
386.988
Financial liabilities measured at amortised cost 1.082.857 1.082.857 974.518 107.959 2.153 1.084.630
Derivative financial liabilities (level 2)
788 788 788 0 0 788
Contingent consideration (level 3)
200.000 200.000 200.000 0 0 200.000
Financial derivaties used for hedging purposes 200.788 200.788 200.788 0 0 200.788
Total financial liabilities 1.283.645 1.283.645 1.175.306 107.959 2.153 1.285.418
PARENT COMPANY
2023
Carrying
amount Fair value 0-1 years 1-5 years > 5 years
Total cash
flow
Trade receivables
192.831
192.831
192.831
0
0
192.831
Receivables from related parties
608.526
608.526
14.118
361.306
483.509
858.933
Other receivables
16.267
16.267
16.267
0
0
16.267
Cash in hand and in bank
725
725
725
0
0
725
Receivables measured at amortised cost 818.349 818.349 223.941 361.306 483.509 1.068.756
Derivative financial assets (level 2)
10.127 10.127 10.127 0 0 10.127
Financial derivaties used for hedging purposes 10.127 10.127 10.127 0 0 10.127
Total financial assets 828.476 828.476 234.068 361.306 483.509 1.078.883
Lease liabilities
1.645
1.645
983
729
0
1.712
Payables to related parties
648.585
648.585
596.123
0
82.932
679.055
Trade payables
29.271
29.271
29.271
0
0
29.271
Other payables
261.468
207.153
207.153
54.315
0
261.468
Financial liabilities measured at amortised cost 940.969 886.654 833.530 55.044 82.932 971.506
Contingent consideration (level 3)
0 0 0 0 0 0
Financial derivaties used for hedging purposes 0 0 0 0 0 0
Total financial liabilities 940.969 886.654 833.530 55.044 82.932 971.506
Non-contractual items such as accruals and dererred income are excluded from other receivables and other debt.
Due to the short term nature of trade receivables and trade payables as well as other receivables and other debt falling due within
1 year, their carrying amount are considered to be approximately the same as their fair value.
55
28
FINANCIAL ASSETS AND LIABILITIES
PARENT COMPANY
2022
Carrying
amount Fair value 0-1 years 1-5 years > 5 years
Total cash
flow
Trade receivables
125.831
125.831
125.831
0
0
125.831
Receivables from related parties
624.220
624.220
129.616
350.921
287.113
767.650
Other receivables
8.640
8.640
8.640
0
0
8.640
Cash in hand and in bank
804
804
804
0
0
804
Receivables measured at amortised cost 759.495 759.495 264.891 350.921 287.113 902.925
Derivative financial assets (level 2)
7.988 7.988 7.988 0 0 7.988
Financial derivaties used for hedging purposes 7.988 7.988 7.988 0 0 7.988
Total financial assets 767.483 767.483 272.879 350.921 287.113 910.913
Lease liabilities
3.275
3.275
2.214
1.093
0
3.307
Payables to related parties
460.719
460.719
389.582
3.307
73.076
465.965
Trade payables
21.476
21.476
21.476
0
0
21.476
Other payables
387.776
358.903
0
55.642
0
55.642
Financial liabilities measured at amortised cost 873.246 844.373 413.272 60.042 73.076 546.390
Contingent consideration (level 3)
200.000 200.000 0 0 0 0
Financial derivaties used for hedging purposes 200.000 200.000 0 0 0 0
Total financial liabilities 1.073.246 1.044.373 413.272 60.042 73.076 546.390
56
29 FINANCIAL RISKS
GROUP RISK MANAGEMENT
RAW MATERIAL PRICE RISK
The raw material risk for the Group is considered medium and the potential impact high on both the Groups results and equity.
The following table shows the groups and parent companies sensitivity to changes in raw material prices of cores:
CONSOLIDATED
Change
2023
2022
Revenue +5% 35.461 32.386
Profit for the year/Equity +5% 21.405 18.876
The opposite effect will impact revenue and profit for the year/equity per a 5% decrease in the raw material prices.
PARENT COMPANY
Change 2023 2022
Revenue +5% 28.462 27.475
Profit for the year/Equity +5% 18.236 16.530
The opposite effect will impact revenue and profit for the year/equity per a 5% decrease in the raw material prices.
FOREIGN CURRENCY RISK
The raw material risk relates to the risk of changes in the market prices of raw materials, the cores, to which BA Group is exposed. The
development in raw material prices not only affect the direct cost of purchasing the cores for production, but also the value of the net
core liability to customers accounted for in the balance sheet.
A reduction in the core market price will result in a short term loss for the Group due to the change in the purchase obligation to the
customers, but will in the longer perspective reduce the cost price of the raw materials thus affecting the result positively. The
opposite is also applicable.
The potential impact on the financial results may be of a significant size, since the price change of the cores can not immediately be
transferred to the sales prices. The development of the prices in the unregulated core market are therefore monitered continously and
closely, since the timing of the core purchases are of the essence, both in regards to the required quantities and prices. The skills and
market knowledge of the core purchasers are thus very crucial to reduce this raw material price risk.
BA Group´s presentation currency is DKK, but a large part of the Groups activities and investments is dominated in other currencies.
The Group is with reference to the high intercompany trading of both cores and finished goods therefore exposed to the exchange rate
risk when trading in PLN, EUR and GBP respectively and as well exposed to the USD when purchasing finsihed goods from China.
Consequently there is an inherent risk of exchange rate fluctuations impacting both profits and the financial position in DKK.
BA Group actively monitors and manages financial risks to which the Group is exposed through its operations, investments and
financing activities. The financial risk management covers all areas of the business such as raw material price risk, foreign exchange
risk, interest rate risk, credit risk, liquidity risk and the capital structure of the Group.
As a main rule, BA Group hedges significant foreign exchange risks regarding in- and out going payments in foreign currencies in
accordance with the Group hedging policy. The sensitivity analysis shows the impact on the income statement and equity from likely
changes in the exchange rates for the currencies where a risk is identified.
57
29
FINANCIAL RISKS
Currency
Securities and
cash/
equivalents Receivables Debt
Net position
before
hedging
Hedged by
financial
instruments
Net position
after hedging
EUR / DKK 171 485.523 -607.578 -121.884 0 -121.884
EUR / GBP
59
21.495
-9.867
11.687
0
11.687
GBP / DKK
400
22.315
-21.183
1.532
0
1.532
PLN / DKK
1.992
320.462
-148.005
174.449
51.432
225.881
USD /DKK
582
0
-17.758
-17.176
27.174
9.998
NOK / DKK
0
1.560
-7.142
-5.582
0
-5.582
USD / PLN
1
0
-5.200
-5.199
0
-5.199
USD / EUR
1
0
-20.852
-20.851
0
-20.851
GBP / EUR
0
10.977
0
10.977
0
10.977
Currency
Securities and
cash/
equivalents Receivables Debt
Net position
before
hedging
Hedged by
financial
instruments
Net position
after hedging
EUR / DKK 5.817 407.210 -678.692 -265.665 0 -265.665
EUR / GBP
70
23.789
-2.997
20.862
0
20.862
EUR / PLN
229
5.962
-2.167
4.024
0
4.024
GBP / DKK
651
23.259
-6.136
17.774
0
17.774
GBP / EUR
0
8.610
0
8.610
0
8.610
PLN / DKK
1.094
394.800
-140.464
255.430
0
255.430
USD/ DKK
442
0
-44.046
-43.604
41.859
-1.745
USD/ EUR
0
0
-25.606
-25.606
0
-25.606
Sensitivity of currency risk
Change
2023
2022
PLN/DKK
+ 5%
-6.804
-9.962
GBP/EUR
+ 5%
-428
0
EUR /GBP
+ 5%
-456
-814
USD /EUR
+ 5%
813
999
The largest currency risk exposures for the BA Group and the Parent Company is the purchase of goods from the subsidiary in Poland
in PLN as well as the purchase of finished goods from China in USD by SBS. As a safeguard to this exposure a “rolling” hedge strategy
is applied by the Group Management, where the expected requirements of PLN and USD on a rolling 12 months basis is hedged.
Further a currency risk exposure exist related to sales of finished goods in NOK.
EUR cash flows are not hedged due to the Danish fixed exchange rate policy against EUR, while the GBP exposure relates mainly to
internal sales of a more limited size and are therefore not hedged.
The parent company also incur the foreign exchange risk related to Intercompany loans with subsidiaries which are in the local
currency of the subsidiaries and the risk relate to the net investments in foreign subsidiaries. This risk is not hedged.
Due to the DKK being fixed to the EUR, significant fluctuations on this exposure are not included in the sensitivity analysis below, since
it is considered immaterial.
To measure currency risk in accordance with IFRS 7, sensitivity is calculated as the change in fair value of future cash flow from
financial instruments as a result of fluctuations in exchange rates at the Balance Sheet date. Below analysis includes the effect on
profit after tax on a 5% increase in the exchange rates, all other things being equal. A 5% decrease are expected to have a
corresponding inverse effect.
The foreign exchange risk is considered low, but the potential impact on profits /(losses) and financial position are considered
medium.
CONSOLIDATED
The group's foreign exchange risks recognised in the balance sheet at 31 December 2022:
The Group's significant foreign exchange risks recognised in the balance sheet at 31 December 2023:
Below for both BA Group and the parent company is illustrated the most significant foreign exchange exposures at year-end:
58
29
FINANCIAL RISKS
Currency
Securities and
cash/
equivalents Receivables Debt
Net position
before
hedging
Hedged by
financial
instruments
Net position
after hedging
EUR / DKK 3 446.747 -541.041 -94.291 0 -94.291
GBP / DKK
3
20.734
-21.183
-446
0
-446
USD /DKK
0
0
-1.660
-1.660
0
-1.660
NOK / DKK
0
1.560
-7.142
-5.582
0
-5.582
PLN / DKK
694
320.462
-147.863
173.293
51.432
224.725
Currency
Securities and
cash/
equivalents Receivables Debt
Net position
before
hedging
Hedged by
financial
instruments
Net position
after hedging
EUR / DKK 4 335.810 -621.498 -285.684 0 -285.684
GBP / DKK 2 20.296 -6.136 14.161 0 14.161
USD / DKK
0
0
-1.745
-1.745
0
-1.745
PLN / DKK
773
394.800
-140.174
255.399
0
255.399
Sensitivity of currency risk
Change
2023
2022
PLN/ DKK +5% -6.758 -9.961
INTEREST RATE RISK
The interest rate risk is not hedged since the risk and threat is considered low.
CONSOLIDATED
Change
2023
2022
Profit for the year
+1%
-5.104
-3.418
Equity
+1%
-5.104
-3.418
The opposite effect will impact revenue and profit for the year/equity per a 5% decrease in the interest rates.
The Parent Company´s foreign exchange risks recognised in the balance sheet at 31 December 2022:
Below analysis includes the effect on profit after tax on a 5% increase in the exchange rates for the Parent company, all other things
being equal. A 5% decrease are expected to have a corresponding inverse effect.
Due to the DKK being fixed to the EUR, significant fluctuations on this exposure are not included in the sensitivity analysis below.
Below tables shows the sensitivity to changes in the interest rates as per Net Interest-bearing debt (NIBD) balance as per 31
December:
BA Groups interest rate risk related to interest-bearing debt and interest-bearing assets. The Groups interest-bearing assets and debt
relates mainly to deposits and borrowings with the parent company (Schouw & Co.) in the form of cash-pool accounts and to a minor
extent to deposits or borrowings with local external banks as well as leasing obligations towards external leasing companies. As of 31
December 2023 interest-bearing assets amounted to TDKK 12.048 (2022: TDKK 14.221) and interest-bearing debt of TDKK 647.415
(2022: TDKK 440.524).
PARENT COMPANY
The Parent Company's significant foreign exchange risks recognised in the balance sheet at 31 December 2023:
59
29
FINANCIAL RISKS
PARENT COMPANY
Change
2023
2022
Profit for the year
+1%
430
-1.242
Equity
+1%
4.657
3.058
CREDIT RISK
Trade receivables can be specified as follows:
2023 2022 2023 2022
Not overdue
296.627
176.170
167.388
100.520
Due below 30 days
31.822
43.249
24.381
25.146
Due between 31 and 90 days
3.167
9.802
216
48
Due above 90 days
1.035
10.644
1.018
117
Trade receivables before allowance 332.651 239.865 193.003 125.831
Impairment
-7.467
-4.062
-172
0
Total trade receivables 325.184 235.803 192.831 125.831
97,8% 98,3% 99,9% 100,0%
Impairment rate
2,2% 1,7% 0,1% 0,0%
Impairment losses on trade receivables 2023 2022 2023 2022
Impairment losses at 1 January
-7.295
-7.692
0
0
Addition from acqusitions
0
0
0
0
Impairment losses during the year 0 554 -159 3
Realised loss -172 3.075 -13 -3
Impairment losses at 31 December -7.467 -4.063 -172 0
The overall credit risk of the BA Group is considered to be low.
BA Group is exposed to credit risks arising from receivables and from balances with banks including derivative financial instruments.
Risks related to receivables are primarily with reference to external customers not fullfilling their contractual obligations. Credit risk
with banks occur when it is uncertain whether the bank is capable of settling its obligations when due towards the Group.
The credit risk in relation to customers (trade receivables) is countered by Group policy, with effective management of customer
credit and thorough regular analyses based on customer type, country, and specific conditions. Generally, customers are creditworthy
and historically only a small and insignificant losses has been realized. Additionally external credit insurance are generally used on all
customers if possible, which together with the possibility to offset outstanding deposits (core liability) on the outstanding amounts
from customers reduces the risk of losses significantly on a large part of the cusotmer base. The risk of losses is therefore considered
low which is illustrated by the very insignificant losses incurred.
Proportion of the total receivables which is
expected to be settled
The risk credit risk related to deposits on the cash pool accounts with Schouw & Co. via Danske bank as well as receviables from the
subsidiaries by the parent company are considered low.
CONSOLIDATED PARENT COMPANY
The impairment of TDKK 7.467 (consolidated) and TDKK 172 (parent company) relates primarily to trade receivables due above 90
days.
The parent company have large receivable intercompany loans with subsidiaries which impact the profit before tax positively and thus
offset the negative impact of changes in interest rates.
CONSOLIDATED PARENT COMPANY
60
29
FINANCIAL RISKS
LIQUIDY RISK
CAPITAL STRUCTURE
30
DERIVATIVE FINANCIAL INSTRUMENTS
CONSOLIDATED
Currency Period 2023 2022 2023 2022 2023 2022
PLN/EUR 0-1 year 150.000 150.000 4,6333 4,9876 10.547 7.988
DKK/NOK 0-1 year 9.000 0 0,6323 0,0000 -420 0
USD/DKK 0-1 year 0 8.000 0,0000 6,9278 0 775
USD/EUR 0-1 year 7.000 4.000 0,9122 0,9742 -1.012 -1.564
Tax -2.005 -1.584
Total before tax 7.110 5.616
PARENT COMPANY
Currency Period 2023 2022 2023 2022 2023 2022
PLN/EUR 0-1 year 150.000 150.000 4,6333 4,9876 10.547 6.231
DKK/NOK 0-1 year 9.000 0 0,6323 0,0000 -420 0
Tax -2.228 1.757
Total before tax 7.899 7.988
Contractual value in
currency Average price
Gains and losses recognized in
the equity
Gains and losses recognized in
the equity
Contractual value in
currency Average price
It is the Management´s opinion that the Group has suffcient financial ressources to settle its oustanding obligations as they become
due, and the liquidity risk of BA Group is considered to be low.
At year-end 2023 the Groups liquidity reserve consist of both cash at hand, deposits at creditinstitutions and cash pool accounts
which amount to TDKK 29.366, of which TDKK 17.390 are cash-pool deposits. Based on the available facilities from the ultimate
parent company Schouw & Co., sufficient liquidity is consired to be in place.
BA Group is predominately financed by resources of the parent company Schouw & Co. as well as a number of committed and to a
lesser extent uncommitted credit facilities.The available facilities are continuously reviewed and the ultimate parent company Schouw
& Co. provides the adequate funds required for the Group to support the BA Group.
Liquidity is managed centrally and is continously monitored and assesed, to ensure that financial ressources are availables in all BA
Group companies at any given time.
The BA Group Management monitors the capital structure of all legal entities within the Group and takes adequate measures to
ensure it is capitalised in the best interest of the Group and its shareholders. The overall objective is to ensure a continued
development and of BA Group which support the Groups strategy and growth ambitions.
BA Group uses forward contracts to hedge specific currency exposure related to the purchase of raw materials (cores) and finished
goods. Hedging contracts are not entered into for speculative purposes, but are only used to reduce the exposure to changes in
exchange rates relates to purchase or sales transactions.
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31
CONTINGENT LIABILITIES AND GUARANTEES
2023 2022 2023 2022
Guarantees
Borg Automotive A/S have issued a mortgage deed, which is in the
possession of the company. The mortgage deed amounts to: 35.000 35.000 35.000 35.000
Borg Automotive A/S have issued a guarantee towards HMRC in UK
related to postponed VAT accounting, a total of TGBP 900. The
guarantee in TDKK amounts to: 7.719 7.557 7.719 7.557
As security for the engagement with an external supplier a
subsidiary in BA Group have issued a bankguarantee of TEUR 270
with a total value at year-end of: 2.012 2.007 0 0
2023 2022 2023 2022
The following amount was drawn on the credit facilties as
mentioned above at year-end 606.046 402.111 596.123 389.582
Contractual commitments
BA Group have commited to the purchase of assets in the next year
of the following amounts: 3.666 27.896 2.876 26.476
A subsidiary in the Group have entered into an agreement with a
third-party regarding packaging operations in Poland. At year-end
the obligation amounts to: 2.625 4.714 0 0
CONSOLIDATED PARENT COMPANY
BA Group is predominately financed by resources of the parent company Schouw & Co. as well as a number of committed and to a
lesser extent uncommitted credit facilities.
The parent company Schouw & Co’s source of financing is primarily composed of a syndicated banking facility, which in December
2020 was refinanced with a total facility framework of MDKK 3.275. The facility is for a three-year period with the possibility of a one-
year extension after years one and two. The first refinancing extension was used in December 2021, and the second was used in
December 2022. In connection with the refinancing of the banking facility, the previous banking consortium, consisting of Danske
Bank, DNB and Nordea, was expanded with the international bank Hong Kong & Shanghai Banking Corporation (HSBC).
In April 2019 and November 2023 Schouw & Co. made a Schuldschein at total MDKK 1.011 (MEUR 136) and MDKK 1.677 (MEUR
225) respectively. The Schuldshein is with with expiry in april 2024, april 2026, November 2026, November 2028 and November
2030.
In addition, Schouw & Co established a 7-year loan in December 2021 of MDKK 400 with Nordic investment Bank directly related to
specific capacity and development costs in Denmark.
In 2022 and 2023 Schouw & Co. have established a line of term loans with Danske Bank, Nordea Bank, DNB, HSBC and Jyske Bank
with a current outstading amount of MDKK 1.800. Of this amount MDKK 400 expires in March 2024 and the remaining MDKK 1.400
falls due in January 2025.
Borg Group, like other major subsidiaries in the Schouw & Co. Group, co-guarantees the aforementioned facilities of MDKK 8.165 of
which MDKK 5.542 has been deducted as of 31 December 2023. In addition to this commitment Schouw a Co. have established a
range of smaller facilities with HSBC of which MDKK 48 was deducted on 31 December 2023, out of a total facility of MDKK 56.
CONSOLIDATED PARENT COMPANY
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31
CONTINGENT LIABILITIES AND GUARANTEES (continued)
Joint taxation liability
32 RELATED PARTIES
2023 2022 2023 2022
Sale of goods to subsidiaries
0
0
240.035
199.505
Purchase of goods from subsidiaries
0
0
978.097
885.809
Sales of services to subsidiaries
0
0
27.659
22.942
Purchase of services from subsidiaires
0
0
7.929
14.927
Sales of customer and core liability, net from subsidiaires
0
0
5.083
619
Sales of inventory to subsidiaries
0
0
0
10.620
Purchase of research and development from subsidiaries
0
0
15.524
11.059
Royalty income from subsidiaries
0
0
7.409
1.277
Storage financing
0
0
31.687
21.403
Interests paid to subsidiaries
0
0
2.553
1.032
Interests paid to parent company
24.322
6.413
23.750
6.226
Interests received from subsidiaries
0
0
2.799
24.932
Interests received from parent company
502
135
71
15
Management fee paid to parent company
1.950
1.875
1.950
1.875
Dividend paid to parent company
0
75.000
0
75.000
Dividend received from subsidiaries
0
0
5.212
7.446
Receivables from subsidiaries
0
0
608.526
624.220
Payables to subsidiaires
0
0
206.082
220.416
Payables to parent company
588.655
386.390
596.123
389.582
Borg Automotive A/S is jointly taxed with the other danish companies of Schouw & Co. Group. According to the joint taxation
provisions of the Danish Corporation Tax Act, the company is therefore liable for income taxes etc. for the jointly taxed companies
and also for obligations, if any, relating to the withholding of tax on interest, royalties and dividends for these companies. Schouw &
Co. serves as the administration company in a Danish joint taxation agreement.
The consolidated financial accounts for Schouw & Co. is publicly available and can be aquired at the following website:
www.schouw.dk
The Parent Company of BA Group, Borg Automotive A/S is owned 100% by Aktieselskabet Schouw & Co.
Additionally members of the Board of Directors, Executive management as well as their familiy members are considered related
parties. Furthermore, related parties are companies in which the above mentioned group of people has significant interests.
Transactions between companies within the BA Group and other entities within the Schouw & Co. Group are included below:
CONSOLIDATED PARENT COMPANY
The consolidated figures of BORG Automotive Group is included in the consolidated financial statements of the ultimate parent
company Aktieselskabet Schouw & Co., Aarhus, Denmark, CVR no: 63 96 58 12.
All companies within the Schouw & Co.Group including BA Group companies are considered related parties.
63