Borg Automotive A/S
Funder Dalgårdsvej 12
DK-8600 Silkeborg
CV
R: 87 32 24 16
Bo
rg Automotive A/S
CVR: 87 32 24 16
Funder Dalgårdsvej 12
8600 Silkeborg
Denmark
Appro
ved at the Annual General Meeting,
10 April 2025
Chairman
Jesper Møberg
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
BALANCE SHEET ................................................................................................................................................................................. 15
CASH FLOW STATEMENT ................................................................................................................................................................... 17
EQUITY STATEMENT .......................................................................................................................................................................... 18
NOTES TO THE FINANCIAL STATEMENTS ....................................................................................................................................... 20
3
CORPORATE INFORMATION
Borg Automotive A/S
Funder Dalgårdsvej 12
8600 Silkeborg
Denmark
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
STATEMENT BY MANAGEMENT
The Board of Directors and the Executive Management have today discussed and approved the annual report of Borg Automotive
A/S for 2024.
The annual report has been prepared in accordance with International Financial Reporting Standards as adopted by the EU and
additional requirements of the Danish Financial Statements Act.
It is our opinion that the consolidated financial statements and the parent company financial statements give a true and fair
view of the financial position of the Group and the Parent Company at 31 December 2024 and of the results of the Group's and
the Parent Company's operations and cash flows for the financial year 1 January – 31 December 2024.
Further, in our opinion, the Management's review gives a fair review of the development in the Group's and the Parent Company's
activities and financial matters, results of operations, cash flows and financial position as well as a description of material risks
and uncertainties that the Group and the Parent Company face.
We recommend that the annual report be approved at the annual general meeting.
Silkeborg, 6 March 2025
Executive Management
Kim Kruse Andersen
CEO
Board of Directors
Jens Bjerg Sørensen Kurt Bering Sørensen
Chairman of the Board Vice Chairman of the Board
Søren Ulrik Toft-Jensen Carsten Thygesen
Jørgen Dencker Wisborg
5
INDEPENDENT AUDITOR’S REPORT
To the shareholders of Borg Automotive A/S
Opinion
In our opinion, the Consolidated Financial Statements and the Parent Company Financial Statements give a true and fair view
of the Group’s and the Parent Company’s financial position at 31 December 2024 and of the results of the Group’s and the
Parent Company’s operations and cash flows for the financial year 1 January to 31 December 2024 in accordance with IFRS
Accounting Standards as adopted by the EU and further requirements in the Danish Financial Statements Act.
We have audited the Consolidated Financial Statements and the Parent Company Financial Statements of Borg Automotive A/S
for the financial year 1 January - 31 December 2024, which comprise income statement and statement of comprehensive
income, balance sheet, statement of changes in equity, cash flow statement and notes, including material accounting policy
information, for both the Group and the Parent Company (“financial statements”).
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional requirements
applicable in Denmark. Our responsibilities under those standards and requirements are further described in the Auditor’s
Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Group in accordance
with the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (IESBA
Code) and the additional ethical requirements applicable in Denmark, and we have fulfilled our other ethical responsibilities in
accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Statement on Management's review
Management is responsible for Management’s Review.
Our opinion on the financial statements does not cover Management’s Review, and we do not express any form of assurance
conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read Management’s Review and, in doing so,
consider whether Management’s Review is materially inconsistent with the financial statements or our knowledge obtained
during the audit, or otherwise appears to be materially misstated.
Moreover, it is our responsibility to consider whether Management’s Review provides the information required under the Danish
Financial Statements Act.
Based on the work we have performed, in our view, Management’s Review is in accordance with the Consolidated Financial
Statements and the Parent Company Financial Statements and has been prepared in accordance with the requirements of the
Danish Financial Statement Act. We did not identify any material misstatement in Management’s Review.
Management's responsibilities for the financial statements
Management is responsible for the preparation of Consolidated Financial Statements and Parent Company Financial Statements
that give a true and fair view in accordance with IFRS Accounting Standards as adopted by the EU and further requirements in
the Danish Financial Statements Act, and for such internal control as Management determines is necessary to enable the
preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, Management is responsible for assessing the Group’s and the Parent Company’s ability
to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting in preparing the financial statements unless Management either intends to liquidate the Group or the Parent
Company or to cease operations, or has no realistic alternative but to do so.
6
INDEPENDENT AUDITOR’S REPORT
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and the additional
requirements applicable in Denmark will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these financial statements.
As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark, we exercise
professional judgment and maintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design
and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for
one resulting from error as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s
and the Parent Company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by Management.
Conclude on the appropriateness of Management’s use of the going concern basis of accounting in preparing the
financial statements and, based on the audit evidence obtained, whether a material uncertainty exists related to events
or conditions that may cast significant doubt on the Group’s and the Parent Company’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to
the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or
conditions may cause the Group and the Parent Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and contents of the financial statements, including the disclosures, and
whether the financial statements represent the underlying transactions and events in a manner that gives a true and
fair view.
Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of
the entities or business units within the group as a basis for forming an opinion on the Consolidated Financial
Statements and the Parent Company Financial Statements. We are responsible for the direction, supervision and review
of the audit work performed for purposes of the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Aarhus, 6 March 2025
PricewaterhouseCoopers
Statsautoriseret Revisionspartnerselskab
CVR no. 33 77 12 31
Claus Lindholm Jacobsen Henrik Trangeled Kristensen
State Authorised Public Accountant State Authorised Public Accountant
mne-no. 23328 mne-no. 23333
FINANCIAL HIGHLIGHTS AND KEY RATIOS
2024 2023 2022 2021 2020
Revenue and income
Revenue
1.971.423
1.875.808
1.815.321
1.368.358
870.568
170.543
153.495
179.899
158.057
108.211
Depreciation and amortization
51.850
52.067
53.530
45.972
25.834
Operating profit (EBIT)
118.693
101.428
126.369
112.085
82.377
Net Financial items
-60.468
-3.861
-51.522
-17.227
-3.382
Profit for the year
44.105
81.621
44.316
71.217
61.257
Cash flows for the year
Cash flow from operating activities
28.128
76.475
-149.941
49.153
139.487
Cash flow from investing activities
-57.663
-259.552
-59.300
-17.885
-71.059
Cash flow from financing activities
39.410
179.935
199.723
-16.285
-62.438
Cash flows for the year
22.033
11.976
14.149
23.689
8.804
Invested capital and financing
Investments in property, plant and equipment
58.016
59.066
50.942
24.709
9.867
Net working capital
709.071
652.385
606.603
326.537
124.941
Invested capital
997.986
898.582
818.036
524.630
275.365
Total Assets
1.829.887
1.677.860
1.634.525
1.373.540
779.487
Equity
459.767
410.450
301.428
332.841
324.927
Net interest-bearing debt
-691.061
-635.367
-426.524
-137.776
-5.274
Financial ratios
EBITDA margin (%)
8,7%
8,2%
9,9%
11,6%
12,4%
EBIT margin (%)
6,0%
5,4%
7,0%
8,2%
9,5%
Net margin (%)
2,2%
4,4%
2,4%
5,2%
7,0%
Return on equity (%)
10,1%
22,9%
14,0%
21,7%
18,3%
Return on invested capital (%)
18,0%
17,9%
26,8%
39,5%
40,3%
Solvency (%)
25,1%
24,5%
18,4%
24,2%
41,7%
Financial data
Average number of employees
1.990
1.886
1.969
1.779
1.466
CONSOLIDATED
Comparative figures for 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:
2024 2023 2022 2021 2020
Inventories
968.406
840.906
954.020
714.177
370.070
Trade receivables
305.405
325.184
235.803
213.555
105.532
Other receivables
41.947 45.905 54.174 55.324 18.414
Prepayments
8.179 11.656 5.506 3.769 3.271
Trade payables
-256.398 -181.735 -255.124 -273.028 -79.570
Other payables
-358.468
-389.531
-387.776
-387.260
-292.776
Net working capital
709.071 652.385 606.603 326.537 124.941
Net working capital
709.071
652.385
606.603
326.537
124.941
Intangible assets
47.911
45.796
62.061
79.525
65.150
Property, plant and equipment
258.591
215.976
165.831
132.306
96.797
Provisions
-17.587
-15.575
-16.459
-13.738
-11.523
Invested capital 997.986 898.582 818.036 524.630 275.365
Non-current interest-bearing debt
-62.731
-39.132
-34.510
-48.843
-27.675
Current interest-bearing debt
-25.111
-19.628
-19.845
-22.153
-10.784
Other receivables, interest bearing
72
72
72
72
73
Receivables from parent company
0
0
0
0
24.308
Payables to parent company
-625.324
-588.655
-386.390
-90.541
0
Cash and cash equivalents
22.033
11.976
14.149
23.689
8.804
Net interest-bearing debt -691.061 -635.367 -426.524 -137.776 -5.274
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 Newman A/S
Støvring, Denmark
Nom. DKK 40.000.000
Borg Automotive GmbH
Eisenach, Germany
Nom. EUR 1.022.938
Borg Automotive SAS
Beauvais, France
Nom. EUR 327.000
Borg Automotive Sp. z.o.o.
Zdunska Wola, Polen
Nom. PLN 20.597.580
Car Parts Industries Belgium SRL
Nivelles, Belgium
Nom. EUR 18.550
Borg Automotive Spain S.L.
Pamplona, Spain
Nom. EUR 3.000
Borg Automotive Reman Spain S.L.
Pamplona, Spain
Nom. EUR 3.000
Borg Automotive UK Ltd.
Wednesbury, UK
Nom. GBP 10.600.001
Electro Steer Ltd.
Wednesbury, UK
Nom. GBP 1
Borg Automotive af 21 maj 2024 A/S
Silkeborg, Denmark
Nom. DKK 400.000
Electro Build Tunesia SARL
Monastir, Tunisia
Nom. TND 810.000
10
MANAGEMENT REVIEW
BORG Automotive Group (BA Group or Group) consist of two business segments BA reman and BA Newman. The BA Reman
segment is the original foundation of the Group and is an independent remanufacturer and supplier of automotive parts with
more than 45 years of experience within remanufacturing, covering the product groups starters, alternators, air condition
compressors, brake calipers, EGR valves, steering products, and turbo chargers. BA Reman distributes the products across the
European continent. In 2021 the Group expanded the business with a new segment BA Newman, who 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.
2024 AT A GLANCE
Revenue for the fiscal year for the Group was MDKK 1.971 compared to MDKK 1.876 in 2023, corresponding to an increase of
5%. The profits before tax ended at MDKK 58 against last year of MDKK 98 corresponding to a decrease of 40%. For the parent
company revenue for the fiscal year was MDKK 1.249 compared to MDKK 1.144 in 2023, while profits before tax amounted to
MDKK 46 compared to MDKK 107 in 2023.
For the Group profit for the year amounted to MDKK 44 (2023: MDKK 82), and to MDKK 44 (2023: MDKK 82) 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. Although a lot of good initiatives on both
revenue and cost savings has been made it has not been possible in 2024 to offset the full negative effects of this in the Newman
segment.
Revenue in the Newman segment decreased 2% to MDKK 440 in 2024 (2023: MDKK 450) which is in line with the expected
reduction from leaving the Russian market. Revenue in the Reman segment increased with 7% in 2024 to MDKK 1.249 (2023:
MDKK 1.144), which was mainly the result of a strong development in the aftermarket throughout the year, but challenged in
the second half of 2024, due to increased competitiveness on Brake Calipers coming from China and other European players.
Overall the performance in 2024 are considered satisfactory compared to the expected level.
EXPANDING PRODUCTION CAPACITY THROUGH COLLABORATION
In 2024, BORG Automotive Group took steps to increase production capacity with the acquisition of a new remanufacturing
facility in Tunisia, which increases capacity to meet the future demand for remanufactured products.
A key focus in the process has been aligning the new facility with our existing infrastructure. This involved close collaboration
across IT, Supply Chain, Finance, and the new team in Tunisia.
The alignment ensured a successful migration of users to new devices, updated IT systems across office- and production
environments, and integration of the new facility into key platforms. These efforts exemplify the teamwork that drives BORG,
ensuring the new facility operates as an integral part of the groups international network while maintaining the high OE-quality
standards our customers rely on.
DEVELOPING TALENT AND DRIVING INNOVATION
Hoping to build a better future, Andrii left Ukraine just one day before the Russian invasion travelling to Poland where he began
as a temporary warehouse employee at BORG Automotive Group in Lublin. Despite facing challenges in a new environment, his
determination and willingness to learn quickly stood out. As a graduate of Kharkov’s Aerospace University, we saw more
potential in Andrii and invited him to join the technology department.
In 2024, Andrii designed and built machines that significantly improved production, saving both time and costs while inspiring
his peers. Simultaneously, he pursued and earned a master’s degree in mechanics and mechanical engineering, supported by
BORG Automotive Group.
Andrii’s creativity, intelligence, and collaborative spirit make him an integral part of the team. His journey demonstrates the
results of empowering talent, delivering shared success, and fostering a culture where cooperation and ambition thrive.
OPERATIONAL EFFICIENCIES AND COST SAVINGS
In 2024, the Logistics Team in BORG Automotive Group also focused on enhancing operational efficiency through consolidation
and the centralization of key support processes. A group-wide tender on road freight led to a notable cost reduction of 12%,
while a centralized tender for packaging materials achieved savings of 15% compared to previous years. These efforts underline
our commitment to leveraging synergies and optimizing resources across the group, ensuring a more streamlined and cost-
effective operation.
The inventories within the Group increased with MDKK 128 (15%) during 2024 compared to 2023. This significant increase
mainly relates to the Reman segment, where inventories increased 22% compared to last year. The main reasons for this
increase relates to more expensive products on stock such as AC and racks as well as adjustment of production. The inventories
are further negatively impacted by increase in spare parts to ensure the delivery service combined with an increased use of
consignment stocks at some of the strategic partners.
11
At year-end 2024, total assets for the Group amounted to MDKK 1.830 against MDKK 1.678 in 2023, while total equity ended
at MDKK 460 against MDKK 410 at year-end 2023. The average number of employees increased from 1.886 in 2023 to 1.990
in 2024. For the parent company assets amounted to MDKK 1.578 at year-end compared to MDKK 1.534 in 2023, while equity
was MDKK 460 against MDKK 410 last year.
The cash flow from operating activities for 2024 amounted to MDKK 28 (2023: MDKK 76), while the investing activities
amounted to MDKK -58 (2023: MDKK -260), of which MDKK 30 related to the purchase of the plot in Poland for the new
Distribution Center. The financing activities in 2024 accounted for a total of MDKK 39 (2023: MDKK 180).
Overall, the development in 2024 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 2025
The market upon which BA Group operates are 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.
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 large product range
as well as broader and more present geographical coverage brings in new customers while also adding new product groups to
existing customers which combined with a service level 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 a
suitable plot has been obtained in 2024 near the current production facility in Zduńska Wola on which building of a new central
warehouse will commence in 2025 and is expected to be finished by the end of 2026.
BA Group expects a sales volume in 2025 on a higher level than in 2024 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 2.100 – 2.300 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.
12
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 2024 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 2024 at:
https://www.schouw.dk/en/responsibility/corporate-governance
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.
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 2024 at:
https://www.schouw.dk/en/responsibility/corporate-governance
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.
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.
13
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 and USD to DKK. To reduce the currency risk, hedging of cash flows are carried out to cover
the exposure of trading between PLN 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, with 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. The credit risk within the Group are based on this largest within the BA Newman segment.
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 2024 2023 2024 2023
Revenue 3 1.971.423 1.875.808 1.249.377 1.144.098
Cost of sales
4,5,7,8
-1.496.990
-1.409.781
-1.081.301
-961.662
Gross profit 474.433 466.027 168.076 182.436
Other operating income
9
5.625
448
48.894
59.161
Distribution expenses
5,8
-245.309
-249.664
-79.228
-74.687
Administrative expenses
5,6,8
-115.340
-114.026
-81.557
-67.237
Other operating expenses
9
-716
-1.357
-32.115
-31.704
Operating profit (EBIT) 118.693 101.428 24.070 67.969
Income from subsidiaries
16
0
0
39.505
3.613
Financial income
10
5.776
30.097
40.952
68.054
Financial expenses
11
-66.244
-33.958
-58.424
-32.875
Profit before tax 58.225 97.567 46.103 106.761
Tax for the year
12
-14.120
-15.946
-1.998
-25.140
Profit for the year 44.105 81.621 44.105 81.621
STATEMENT OF COMPREHENSIVE INCOME
Items that may be reclassified subsequently to the income
statement:
Exchange differences on translation of foreign operations
9.309
25.907
9.309
25.907
Value adjustment of hedging instruments during the year
16.476
31.246
11.699
32.566
Hedging instruments transferred to financials
3.922
-5.183
4.526
-5.583
Hedging instruments transferred to cost of sales
-25.650
-24.148
-25.026
-24.844
Tax on other comprehensive income
12
1.155
-421
1.936
-471
Value adjustment of subsidiaries
16
0
0
2.768
-174
Other comprehensive income after tax
5.212
27.401
5.212
27.401
Profit for the year
44.105
81.621
44.105
81.621
Total comprehensive income 49.317 109.022 49.317 109.022
Attributable to:
Shareholders of Borg Automotive A/S
49.317
109.022
49.317
109.022
CONSOLIDATED PARENT COMPANY
14
BALANCE SHEET
ASSETS
Note 2024 2023 2024 2023
Completed development projects
0
0
0
0
Development projects in progress
415
2.853
415
2.852
Customer relations
13.355
15.553
8.399
9.892
Brands
0
5.000
0
0
Know-how
29.910
19.032
16.313
19.032
IT projects
3.795
2.646
3.669
2.339
Other intangible assets
436
712
0
0
Intangible assets 13 47.911 45.796 28.796 34.115
Land and buildings
181.400
143.492
58.516
57.057
Plant and machinery
43.305
41.094
0
0
Other fixtures, tools and equipment 20.401 23.267 4.212 4.823
Assets under construction, etc. 13.485 8.123 824 0
Property, plant and equipment 14 258.591 215.976 63.552 61.880
Investment in subsidiaries 16 0 0 569.787 525.263
Deferred tax 18 91.017 96.299 27.833 31.400
Right of use assets 15 44.907 44.326 2.239 1.970
Receivables from related parties
21,23 0 0 271.402 594.408
Other receivables
13.214
12.359
0
0
Other non-current assets 149.138 152.984 871.261 1.153.041
Total non-current assets 455.640 414.756 963.609 1.249.036
Inventories 19 968.406 840.906 74.439 56.085
Trade receivables 29 305.405 325.184 169.738 192.831
Receivables from related parties
21,23 0 0 350.123 14.118
Corporate income tax 20 3.105 23.816 0 0
Joint taxation contribution 20 25.172 3.661 10.511 0
Other receivables
41.947
45.905
2.901
16.267
Prepayments 8.179 11.656 4.894 4.948
Cash and cash equivalents
22.033
11.976
1.544
725
Total current assets 1.374.247 1.263.104 614.150 284.974
Total assets 1.829.887 1.677.860 1.577.759 1.534.010
CONSOLIDATED
PARENT COMPANY
15
BALANCE SHEET
EQUITY AND LIABILITIES
Note 2024 2023 2024 2023
Share capital
22
1.000
1.000
1.000
1.000
Hedge transaction reserve
3.013
7.110
1.034
7.899
Net revaluation reserve per equity method
0 0 300.925 256.800
Exchange adjustment reserve 9.095 -214 0 0
Retained earnings 446.659 402.554 156.808 144.751
Proposed dividend 0 0 0 0
Total Equity
459.767
410.450
459.767
410.450
Deferred tax
18
8.320
3.520
0
0
Other payables
24
64.420
72.166
47.119
54.315
Payables to related parties 21,23 0 0 60.513 52.462
Interest bearing debt
15,23
62.731
39.132
31.928
704
Provisions
25
13.499
17.123
10.711
13.757
Total non-current liabilities
148.970
131.941
150.271
121.238
Current portion of non-current interest bearing debt
15,23
25.111
19.628
2.293
941
Payables to related parties
21,23
625.324
588.655
750.125
749.743
Trade payables
256.398
181.735
26.057
29.271
Other payables
24
294.048
317.365
175.277
207.153
Corporation tax payable
20
2.682
2.702
13
10
Joint taxation contribution
20
0
9.809
0
2.691
Provisions
25
17.587
15.575
13.956
12.513
Total current liabilities
1.221.150
1.135.469
967.721
1.002.322
Total liabilities
1.370.120
1.267.410
1.117.992
1.123.560
Total equity and liabilities
1.829.887
1.677.860
1.577.759
1.534.010
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 2024 2023 2024 2023
Profit before tax 58.225 97.567 46.103 106.761
Adjustment for operating items of a non-cash nature,
etc.:
Depreciation and impairment losses
8
51.850
52.067
9.341
8.720
Other non-cash operating items, net -2.508 -3.709 -53 14
Provisions -2.895 3.020 -1.603 -1.909
Income from subsidiaries
16
0
0
-39.505
-3.613
Financial income
10
-5.776
-30.097
-40.952
-68.054
Financial expenses
11
66.244
33.958
58.424
32.875
Cash flows from operating activities before changes
in working capital
165.140 152.806 31.755 74.794
Changes in working capital
27
-72.729
-4.191
-90.676
-85.461
Cash flows from operating activities after changes in
working capital
92.411 148.615 -58.921 -10.667
Interest income received
1.746
1.062
99
94
Interest expenses paid
-52.714
-26.068
-47.021
-23.822
Cash flow from ordinary activities 41.443 123.609 -105.843 -34.395
Income tax paid
20
-13.315
-47.134
-9.694
-14.582
Cash flows from operating activities 28.128 76.475 -115.537 -48.977
Purchase of intangible assets
26
-158
-1.286
-158
-1.147
Purchase of property, plant and equipment
26
-57.772
-52.092
-3.781
-34.895
Sale of property, plant and equipment
699
326
242
5
Acqusition of business
17
375
-206.500
-400
-206.500
Dividend received from subsidiaries
16
0
0
7.457
5.212
Change in financial assets
-807
0
0
0
Cash flows from investing activities -57.663 -259.552 3.360 -237.325
Repayment of non-current liabilities
23
-1.210
-308
-770
0
Repayment of lease liabilities
23
-23.300
-22.127
-1.535
-2.630
Proceeds from incurring non current financial liabilities
33.034
0
33.034
0
Change in net payables/receivables to group companies
23
30.886
202.370
82.250
288.734
Shareholders:
Dividend paid
0
0
0
0
Cash flows from financing activities 39.410 179.935 112.979 286.104
Cash flows for the year
9.875
-3.142
802
-198
Cash at the beginning of the year
11.976
14.149
725
804
Value adjustment of cash and cash equivalents
23
182
969
17
119
Cash at the end of the year 22.033 11.976 1.544 725
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 2024 1.000 7.110 -214 402.554 0 410.450
Profit and other comprehensive income in 2024:
Exchange rate adjustment of foreign
subsidiaries
0 0 9.309 0 0 9.309
Value adjustment of hedging instruments
recognised during the year
16.476 0 0 0 16.476
Hedging instruments transferred to financials
0 3.922 0 0 0 3.922
Hedging instruments transferred to cost of
sales
0 -25.650 0 0 0 -25.650
Tax on hedging instruments
0
1.155
0
0
0
1.155
Profit for the year
0
0
0
44.105
0
44.105
Total recognised comprehensive income
0 -4.097 9.309 44.105 0 49.317
Transactions with the owners:
Dividend distributed 0 0 0 0 0 0
Transactions with the owners for the
period
0 0 0 0 0 0
Equity at 31 December 2024 1.000 3.013 9.095 446.659 0 459.767
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
0 0 25.907 0 0 25.907
Value adjustment of hedging instruments
recognised during the year
31.246 0 0 0 31.246
Hedging instruments transferred to financials
0 -5.183 0 0 0 -5.183
Hedging instruments transferred to cost of
sales
0 -24.148 0 0 0 -24.148
Tax on hedging instruments
0
-421
0
0
0
-421
Profit for the year
0
0
0
81.621
0
81.621
Total recognised comprehensive income
0 1.494 25.907 81.621 0 109.022
Transactions with the owners
Dividend distributed
0
0
0
0
0
0
Transactions with the owners for the
period
0 0 0 0 0 0
Equity at 31 December 2023 1.000 7.110 -214 402.554 0 410.450
18
EQUITY STATEMENT
PARENT COMPANY
Share capital
Hedge
transaction
reserve
Net revaluation
reserve per
equity method
Retained
earnings
Proposed
dividend Total Equity
Equity at 1 January 2024 1.000 7.899 256.800 144.751 0 410.450
Profit and other comprehensive income in 2024:
Exchange rate adjustment of foreign
subsidiaries
0 0 9.309 0 0 9.309
Value adjustment of hedging
instruments recognised during the year
0 11.699 0 0 0 11.699
Hedging instruments transferred to
financials
0 4.526 0 0 0 4.526
Hedging instruments transferred to cost
of sales
0 -25.026 0 0 0 -25.026
Tax on equity adjustements
0
1.936
0
0
0
1.936
Value adjustment of hedging
instruments in subsidiary
0 0 2.768 0 0 2.768
Profit for the year
0
0
32.048
12.057
0
44.105
Total recognised comprehensive
income
0 -6.865 44.125 12.057 0 49.317
Transactions with the owners:
Dividend distributed
0
0
0
0
0
0
Transactions with the owners for the
period
0 0 0 0 0 0
Equity at 31 December 2024
1.000
1.034
300.925
156.808
0
459.767
Share capital
Hedge
transaction
reserve
Net revaluation
reserve per
equity method
Retained
earnings
Proposed
dividend Total Equity
Equity at 1 January 2023
1.000 6.231 232.666 61.531 0 301.428
Profit and other comprehensive income in 2023:
Exchange rate adjustment of foreign
subsidiaries
0 0 25.907 0 0 25.907
Value adjustment of hedging
instruments recognised during the year
0 32.566 0 0 0 32.566
Hedging instruments transferred to
financials
0 -5.583 0 0 0 -5.583
Hedging instruments transferred to cost
of sales
0 -24.844 0 0 0 -24.844
Tax on equity adjustements
0
-471
0
0
0
-471
Value adjustment of hedging
instruments in subsidiary
0 0 -174 0 0 -174
Profit for the year
0
0
-1.599
83.220
0
81.621
Total recognised comprehensive
income
0 1.668 24.134 83.220 0 109.022
Transactions with the owners:
Dividend distributed
0
0
0
0
0
0
Transactions with the owners for the
period
0 0 0 0 0 0
Equity at 31 December 2023 1.000 7.899 256.800 144.751 0 410.450
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 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 2024 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 2024. 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 1, IFRS 16, IAS 7 and IFRS 7
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 21 - Lack of Exchangeability
Amendments to the Classification and Measurement of Financial Instruments – Amendments to IFRS 9 and IFRS 7
IFRS 18, ‘Presentation and Disclosure in Financial Statements’
The new and amended Standards and Interpretations are not mandatory for the financial reporting for 2024. 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
2025.
Basis of consolidation
The consolidated financial statements comprise Borg Automotive A/S and its subsidiaries at 31 December 2024.
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
companies are eliminated. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the year are
22
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 and 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: 3-18 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: 2-40 years
Cars: 3-13 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.
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.
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.
27
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
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.
28
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 and France. 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
2024 2023 2024 2023
Denmark
81.907
72.078
48.451
50.804
Europe, other than Denmark
1.883.135
1.802.990
1.200.926
1.093.294
Central America
142
0
0
0
Asia
6.239
740
0
0
Total revenue
1.971.423 1.875.808 1.249.377 1.144.098
Reman
1.531.385
1.426.061
1.249.377
1.144.098
Newman
440.038
449.747
0
0
Total revenue
1.971.423 1.875.808 1.249.377 1.144.098
4
COST OF SALES
2024 2023 2024 2023
Cost of goods sold
1.017.759 1.029.776 1.023.566 927.992
Inventory impairments
3.285 12.041 166 208
Reversed inventory impairments
-5.647 -21.545 -178 -636
The Reman segment cover the remanufacturing and sales of finished goods, while the Newman segment cover the trading business
related to the sales of externally purchased finished goods.
CONSOLIDATED
PARENT COMPANY
30
5
STAFF COST
2024 2023 2024 2023
Wages and salaries
381.328 326.299 64.438 58.669
Defined contribution pension plans
9.860 8.848 6.524 5.933
Other social security costs
56.475 51.418 840 845
Short term-incentive plans
2.559 3.914 2.019 3.328
Total staff costs
450.222 390.479 73.821 68.775
Staff costs are recognised as follows:
Cost of sales
290.285 236.506 9.125 8.114
Distribution
111.905 107.816 29.720 30.365
Administration
48.032 46.157 34.976 30.296
Staff costs recognised in the income statement
450.222 390.479 73.821 68.775
Average number of employees
1.990 1.886 87 84
REMUNERATION TO THE BOARD OF DIRECTORS, EXECUTIVE MANAGEMENT AND KEY MANAGEMENT PERSONNEL
2024 2023 2024 2023
Board of Directors and Executive Management
5.298 5.882 5.298 5.882
Remuneration to Key Management Personnel (Group
Directors)
2024 2023 2024 2023
Salaries
13.750 13.782 10.044 10.903
Pensions
1.031 1.047 919 949
Short term-incentive plans
2.559 3.889 2.019 3.328
Total Remuneration
17.340 18.718 12.982 15.180
Headcount of Group Directors at year-end
7 7 5 5
Executive Management consist of one member, therefore remuneration of the Board of Directors and Executive Management are
disclosed collectively with reference to section 98b paragraph 3 of the Danish Financial Statements Act.
CONSOLIDATED
Remuneration to Key Management Personnel as in accordance with IAS 24, comprise the Group Directors covering Executive
Management and Key Management.
CONSOLIDATED
PARENT COMPANY
CONSOLIDATED
PARENT COMPANY
PARENT COMPANY
31
5
STAFF COST
(Continued)
Share-based payment: Share option programme
Outstanding share options
Executive
Management Others Total
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
Granted in 2023
20.000
20.000
40.000
Used from 2020 grant
0
-8.000
-8.000
Total outstanding options at 31 December 2023
72.000 82.000 154.000
Exercised (from 2020 grant)
-12.000
-8.000
-20.000
Lapsed (from 2021 grant)
-10.000
-10.000
Lapsed (from 2022 grant)
-12.000
-12.000
Total outstanding options at 31 December 2024
60.000 52.000 112.000
In 2024, 20.000 options were exercised at an average price of 521,97 DKK.
The assumptions for determining the fair value of unexercised share options at the date of allocation as follows:
On the date of allocation:
2024 grant 2023 grant 2022 grant 2021 grant
Expected volatility no grant 25,03% 24,82% 31,58%
Expected option life no grant 47 mth. 49 mth. 49 mth.
Expected dividend per share no grant 15 DKK 14 DKK 14 DKK
Risk free interest rate no grant 2,66% -0,17% -0,54%
Other information on option programme:
Exercise price in DKK (1) no grant 577,53 527,07 678,19
Fair value in DKK per option (2) no grant 96,55 68,35 125,37
Total fair value in '000 (2) no grant 3.862 3.281 5.767
Can be exercised from no grant March 2026 March 2025 March 2024
Can be exercised until no grant March 2027 March 2026 March 2025
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 Borg Group has been covered by the parent company Schouw & Co.´s share option programme,
which in its original form was terminated in 2024 as a share-based programme.
32
6 FEES TO AUDITORS APPOINTED BY THE GENERAL MEETING
2024 2023
Statutory audit
1.980 2.110
Other assurance engagements
600 570
Tax consultancy
128 127
Fees for other services
85 141
Total fees
2.793 2.948
7
RESEARCH AND DEVELOPMENT COSTS
2024 2023 2024 2023
Research & Development costs expensed and development costs
incurred are shown below:
Research and development costs incurred
15.032 14.006 16.827 15.524
Amortisation and impairment of recognised development costs
441 368 0 0
Research and development costs expensed and recognised in
the income statements
15.473 14.374 16.827 15.524
2024 2023 2024 2023
Amortisation of intangible assets
11.818 17.639 5.614 6.118
Depreciation of property plant and equipment
20.152 16.045 2.167 33
Depreciation of lease assets
19.699 18.322 1.560 2.569
Impairment of property plant and equipment
181 61 0 0
Total depreciation, amortisation and impairment losses
51.850 52.067 9.341 8.720
Depreciation/amortisation and impairment is recognised in the
income statement as follows:
Cost of sales
26.543 22.386 206 178
Distribution
17.373 21.832 4.979 4.982
Administration
7.934 7.849 4.156 3.560
Total depreciation, amortisation and impairment losses
51.850 52.067 9.341 8.720
8
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
DEPRECIATION, AMORTISATION AND
IMPAIRMENT LOSSES
33
9 OTHER OPERATING INCOME AND EXPENSES 2024 2023 2.024 2023
Gains on the disposal of property, plant and equipment and
intangible assets
161 83 56 99
Charged to Group companies (i.e. management services)
0 0 48.783 38.932
Sales of customer
0 0 0 19.895
Other operating income
5.464 365 55 235
Total other operating income
5.625 448 48.894 59.161
Losses on the disposal of property, plant and equipment and
intangible assets
22 89 3 17
Storage compensation
0 0 32.112 31.687
Other operating expenses
694 1.268 0 0
Total other operating expenses
716 1.357 32.115 31.704
10
FINANCIAL INCOME
2024 2023 2024 2023
Interest
0 559 0 0
Interests from group loans and cash pool
1.060 838 40.424 44.632
Interest income on financial assets measured at amortised
cost
1.060 1.397 40.424 44.632
Fair value adjustments of hedging transactions transferred from
equity
0 5.583 0 5.583
Other interests
1.291 0 57 23
Exchange rate adjustments
3.425 23.117 471 17.816
Total financial income
5.776 30.097 40.952 68.054
11
FINANCIAL EXPENSES
2024 2023 2024 2023
Interest expense
4.194 654 1.097 23
Interests from lease liabilities
1.910 1.092 73 50
Interests from group loans and cash pool
46.443 24.657 49.054 26.302
Interest expenses from financial liabilities measured at
amortised cost
52.547 26.403 50.224 26.375
Fair value adjustments of hedgingtransactions transferred from
equity
3.922 399 4.526 0
Fair value adjustments of financial assets measured through
profit or loss
824 0 0 0
Amortisation of Earn-out purchase obligation
0 4.440 0 4.440
Adjustment of Earn-out obligation
0 2.060 0 2.060
Exchange rate adjustments
8.951 656 3.674 0
Total financial expenses
66.244 33.958 58.424 32.875
CONSOLIDATED
PARENT COMPANY
34
12
TAX ON PROFIT FOR THE YEAR
2024 2023 2024 2023
Tax for the year is composed as follows:
Tax on profit for the year
14.120
15.946
1.998
25.140
Tax on comprehensive income
-1.155
421
-1.936
471
Total tax
12.965 16.367 62 25.611
Tax on profit for the year has been calculated as follows:
Current tax
4.224
19.389
-3.505
22.395
Deferred tax
9.435
-5.129
5.503
2.745
Adjustment of prior-year tax charge - current tax
-2.464
0
0
0
Adjustment of prior-year tax charge - deferred tax
2.925
1.686
0
0
Total tax recognised in the income statement
14.120 15.946 1.998 25.140
Effective tax rate:
Calculated 22.0% tax of the profit for the year
12.810 21.465 10.143 23.487
Adjustment of tax related to subsidiaries and PEs
1.899 -544 -8.694 -798
Non-deductible costs and non-taxable income
2.830 4.139 549 2.557
Adjustment of prior-year tax charge
461 1.686 0 -106
Adjustment of deferred tax asset
-3.880 -10.800 0 0
Recognised tax income
14.120 15.946 1.998 25.140
Effective tax rate
24,3%
16,3%
4,3%
23,5%
Tax recognised in comprehensive income:
2024
Before tax
Tax
After tax
Exchange rate adjustment of foreign subsidiaries -9.309 0 -9.309
Value adjustment of hedging instruments during the year -16.476 3.625 -12.851
Hedging instruments transferred to financials -3.922 863 -3.059
Hedging instruments transferred to cost of sales 25.650 -5.643 20.007
Tax on items recognised in comprehensive income -4.057 -1.155 -5.212
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 financials 5.183 -1.140 4.043
Hedging instruments transferred to cost of sales 24.148 -5.313 18.835
Tax on items recognised in comprehensive income -27.822 421 -27.401
2024
Before tax Tax After tax
Exchange rate adjustment of foreign subsidiaries -9.309 0 -9.309
Value adjustment of hedging instruments during the year -11.699 2.574 -9.125
Hedging instruments transferred to financials -4.526 996 -3.530
Hedging instruments transferred to cost of sales 25.026 -5.506 19.520
Other comprehensive income from subsidiaries -2.768 0 -2.768
Tax on items recognised in comprehensive income -3.276 -1.936 -5.212
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
CONSOLIDATED
PARENT COMPANY
CONSOLIDATED
PARENT COMPANY
35
13
INTANGIBLE ASSETS
2024
Completed
development
projects
Development
projects in
progress
Customer
relations Brands
Know-
how
IT
projects
Other
intangible
assets Total
Cost at 1 January
18.490 2.853 22.177 35.500 27.189 22.120 2.429 130.758
Foreign exchange adjustment
0
0
20
0
107
55
17
199
Additions
0
295
0
0
0
0
0
295
Additions on company acquisitions
0
0
0
0
13.490
7
3
13.500
Transferred/reclassified
0
-2.733
0
0
0
2.733
0
0
Cost at 31 December
18.490 415 22.197 35.500 40.786 24.915 2.449 144.752
Amortisation and impairment at 1
January
18.490 0 6.624 30.500 8.157 19.474 1.717 84.962
Foreign exchange adjustment
0
0
3
0
0
51
7
61
Amortisation
0
0
2.215
5.000
2.719
1.595
289
11.818
Amortisation and impairment at 31
December
18.490 0 8.842 35.500 10.876 21.120 2.013 96.841
Carrying amount at 31 December
0 415 13.355 0 29.910 3.795 436 47.911
Amortized over (years)
3 10-15 3-20 10-15 3-5 1-10
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
CONSOLIDATED
Management have not identified issues, which indicate need for impairment regarding intangible assets.
36
13
INTANGIBLE ASSETS
(Continued)
2024
Completed
development
projects
Development
projects in
progress
Customer
relations Brands
Know-
how
IT
projects
Other
intangible
assets Total
Cost at 1 January
18.490 2.852 14.930 0 27.189 19.336 1.238 84.035
Additions
0
295
0
0
0
0
0
295
Transferred/reclassified
0
-2.732
0
0
0
2.732
0
0
Cost at 31 December
18.490 415 14.930 0 27.189 22.068 1.238 84.330
Amortisation and impairment at 1
January
18.490 0 5.038 0 8.157 16.997 1.238 49.920
Amortisation
0
0
1.493
0
2.719
1.402
0
5.614
Amortisation and impairment at 31
December
18.490 0 6.531 0 10.876 18.399 1.238 55.534
Carrying amount at 31 December
0 415 8.399 0 16.313 3.669 0 28.796
Amortized over (years)
3 10-15 10-15 3-5 3
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
PARENT COMPANY
Management have not identified issues, which indicate need for impairment regarding intangible assets.
37
14
PROPERTY, PLANT AND EQUIPMENT
2024
Land and
buildings
Plant and
machinery
Other fixtures,
tools and
equipment
Assets under
construction Total
Cost at 1 January
158.068 68.124 44.338 8.307 278.837
Foreign exchange adjustment
1.281
1.355
608
164
3.408
Additions
32.977
3.167
2.026
19.846
58.016
Additions on company acqusitions
2.788
454
20
0
3.262
Disposals
0
-167
-1.385
0
-1.552
Transferred/reclassified
5.501
5.920
3.041
-14.462
0
Cost at 31 December
200.615 78.853 48.648 13.855 341.971
Depreciation and impairment at 1 January
14.576 27.030 21.071 184 62.861
Foreign exchange adjustment
217
678
345
5
1.245
Impairment
0
0
0
181
181
Depreciation
4.422
7.968
7.762
0
20.152
Depreciation and impairment of disposed assets
0
-128
-931
0
-1.059
Depreciation and impairment at 31 December
19.215 35.548 28.247 370 83.380
Carrying amount at 31 December
181.400 43.305 20.401 13.485 258.591
Depreciated over (years)
5-40
3-18
3-18
Legal obligation at 31 December for the purchase of
property, plant and equipment
74 1.684 0 0 1.758
Interest recognised during the period
0
0
0
0
0
Average interest used
0,00%
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 to leased assets/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 and impairment of disposed assets
3.560
6.582
5.903
0
16.045
Transferred/reclassified
-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
3-18
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%
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)
2024
Land and
buildings
Plant and
machinery
Other fixtures,
tools and
equipment
Assets under
construction Total
Cost at 1 January
57.057 39 4.886 0 61.982
Additions
2.564
0
637
824
4.025
Disposals
0
0
-335
0
-335
Cost at 31 December
59.621 39 5.188 824 65.672
Depreciation and impairment at 1 January
0 39 63 0 102
Depreciation
1.105
0
1.062
0
2.167
Disposals
0
0
-149
0
-149
Depreciation and impairment at 31 December
1.105 39 976 0 2.120
Carrying amount at 31 December
58.516 0 4.212 824 63.552
Depreciated over (years)
40
5
5
Legal obligation at 31 December for the purchase of
property, plant and equipment
0 0 0 0 0
Interest recognised during the period
0
0
0
0
0
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)
40
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%
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
2024
Buildings Cars
Production
equipment Other assets Total
Cost at 1 January
87.326 9.099 2.308 700 99.433
Foreign exchange adjustment
1.732
54
42
1
1.829
Additions
8.242
7.633
0
208
16.083
Additions on company acqusitions
0
5.255
0
0
5.255
Disposals
-2.385
-4.359
-1.242
-68
-8.054
Re-measure / modification of lease assets
-1.148
0
0
0
-1.148
Cost at 31 December
93.767 17.682 1.108 841 113.398
Amortisation and impairment at 1 January
47.795 5.039 1.709 564 55.107
Foreign exchange adjustment
1.147
10
21
0
1.178
Amortisation
15.561
3.605
320
213
19.699
Amortisation and impairment of disposed assets
-2.385
-3.824
-1.225
-59
-7.493
Amortisation and impairment at 31 December
62.118 4.830 825 718 68.491
Carrying amount at 31 December
31.649 12.852 283 123 44.907
Depreciated over (years)
2-40
3-13
3-5
3-5
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
CONSOLIDATED
40
15 RIGHT OF USE ASSETS
(Continued)
2024
Buildings Cars
Production
equipment Other assets Total
Cost at 1 January
2.386 4.320 0 0 6.706
Additions
0
1.868
0
0
1.868
Disposals
-2.386
-1.793
0
0
-4.179
Cost at 31 December
0 4.395 0 0 4.395
Amortisation and impairment at 1 January
2.297 2.439 0 0 4.736
Amortisation
88
1.472
0
0
1.560
Disposals
-2.385
-1.755
0
0
-4.140
Amortisation and impairment at 31 December
0 2.156 0 0 2.156
Carrying amount at 31 December
0 2.239 0 0 2.239
Depreciated over (years)
2
3
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
Adjusted cost at 1 January
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
LEASE LIABILITIES
Lease liabilities expiring within the following
periods from the balance sheet date:
2024 2023 2024 2023
Within 1 year
23.847
19.234
1.029
941
Between 1 and 5 years
31.717
39.095
913
704
Total lease liability, non-discounted 55.564 58.329 1.942 1.645
Lease liabilities are recognised in the balance sheet as follows:
Non-current liabilities
31.716
39.095
913
704
Current liabilities
23.847
19.234
1.029
941
Total lease liabilities 55.563 58.329 1.942 1.645
Repayment of lease debt
23.300
22.127
1.535
2.630
Recognised interests on lease contracts
1.910
1.092
73
50
Lease payments in the year 25.210 23.219 1.608 2.680
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 425 20 0 445 326 37 0 363
Due for payment within >1-5 years 865 0 0 865 81 0 0 81
Total commitments 1.290 20 0 1.310 407 37 0 444
Recognised in the income statement
251 20 0 271 372 608 0 980
Service*
Small
value
assets
Short term
leases Total Service*
Small
value
assets
Short
term
leases Total
Due for payment within 1 year 98 20 0 118 218 20 0 238
Total commitments 98 20 0 118 218 20 0 238
Recognised in the income statement
98 20 0 118 230 34 0 264
Other leasing information
0-1 years 1-5 years > 5 years
Total
cash flow
Total cash-flow impact
2.470 7.138 0 9.608
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 14.232, and a total amount of TDKK 1.495 have impacted cash flow in 2024.
The sublease 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
2024 2023
42
16
INVESTMENTS IN SUBSIDIARIES (Parent company)
2024 2023
Cost at 1 January
268.463 268.463
Additions
400 0
Cost at 31 December
268.863 268.463
Adjustments at 1 January
256.800 232.667
Foreign exchange adjustments
9.309 25.907
Share of profit/(loss) after tax for the year
39.505 3.613
Other value adjustments
2.767 -175
Dividends paid
-7.457 -5.212
Adjustments at 31 December
300.924 256.800
Carrying amount at 31 December
569.787 525.263
Name Registered Office
Ownership
interest
2024
Ownership
interest
2023
Borg Automotive Sp. z.o.o. 100% 100%
Borg Automotive UK Ltd. 100% 100%
Electro Steer UK Ltd. 100% 100%
Car Parts Industries Belgium SRL 100% 100%
Borg Automotive Spain S.L. 100% 100%
Borg Automotive Reman Spain S.L. 100% 100%
Borg Automotive Newman A/S 100% 100%
Borg Automotive GmbH Germany, Eisenach 100% 100%
Borg Automotive SAS France, Beauvais 100% 100%
Borg Automotive af 21 maj 2024 A/S Denmark, Silkeborg 100% 0%
Electro Rebuild Tunisia SARL Tunisia, Monastir 100% 0%
All subsidiaries are Limited Liability Companies.
Poland, Zdunska Wola
UK, Birmingham
Belgium, Nivelles
Denmark, Støvring
UK, Birmingham
Spain, Pamplona
Spain, Pamplona
43
17
ACQUISITION OF BUSINESSES
No acqusitions was made in 2023.
The assets and liabilitites recognised as a result of the
acquisition are as follows:
2024 2023 2024 2023
Know-how 13.490 0 0 0
Other intangible assets 10 0 0 0
Property, plant and equipmet 3.262 0 0 0
Lease assets 5.255 0 0 0
Inventories 2.665 0 0 0
Tax asset 266 0 0 0
Cash 487 0 400 0
Interest-bearing debt -5.254 0 0 0
Provisions -377 0 0 0
Trade payables -18.723 0 0 0
Tax payable -879 0 0 0
Other provisions -90 0 0 0
Net assets acquired
112 0 400 0
Acquisition of business (Newman Group) 0 206.500 0 206.500
Of which cash and cash equivalents -487 0 0 0
Total cash acquisition costs
-375 206.500 400 206.500
The company was acquired at a purchase price of KDKK 112 (KEUR 15).
In 2024, the acquistion of ERT has effected Group revenue with TDKK 347 and profit for the year with TDKK 363, based on a closing
date of 30 November 2024. Full-year revenue and results if the acqusition had taken place on January 1st would have been 480
TDKK and TDKK -359.
Effective 1 December 2024, BORG Automotive Group acquired 100% of the issued share capital of Electro Build Tunisia SARL (ERT).
The company owns one production plant located in Monastir, Tunisia and have more than 40 years of experience with
remanufacturing alternators and starters.
CONSOLIDATED
PARENT COMPANY
Transaction costs incurred in connection with the acquisition of ERT amount to TDKK 238, of which TDKK 163 has been recognised as
an administrative expense in 2024.
The acquisition of Newman Group in 2021, entailed a contingent consideration which was made as a final payment of MDKK 206,5 in
2023.
44
18 DEFERRED TAX
2024 2023 2024 2023
Defered tax at 1 January 92.779 86.785 31.400 34.616
Foreign exchange adjustment
857 1.286 0 0
Addition on acqusition
266 0 0
Deferred tax for the year recognised in profit for the year
-12.360 5.129 -5.503 -2.745
Deferred tax for the year recognised in equity 1.155 -421 1.936 -471
Deferred tax at 31 December, net
82.697 92.779 27.833 31.400
Deferred tax is recognised as follows in the balance sheet:
Deferred tax asset
91.017 96.299 27.833 31.400
Deferred tax liability
-8.320 -3.520 0 0
Net deferred tax at 31 December
82.697 92.779 27.833 31.400
Deferred tax pertains to:
Intangible assets
-53 1.534 -5.223 -5.339
Property, plant and equipment
2.719 4.029 -1.333 -1.368
Receivables
-2.114 -1.994 0 0
Inventories
12.489 8.143 0 0
Other current assets
268 0 0 0
Equity
-851 -2.006 -293 -2.229
Provisions
114 -1 0 0
Liabilities other than provisions
53.445 66.446 34.682 40.336
Tax losses
16.680 16.628 0 0
Total deferred tax (net liability)
82.697 92.779 27.833 31.400
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 5,4 (2023: MDKK 9,1) related to the subsidiary Borg Automotive UK Ltd. have not been
recognised in the balance sheet. The unrecognised tax loss may be carried forward for an unlimited period.
CONSOLIDATED PARENT COMPANY
45
18
DEFERRED TAX
(Continued)
2024
1 Jan.
Foreign
exchange
adjustment
Additions on
acquisition
Recognised in
profit for the
year
Recognised in
equity 31 Dec.
Intangible assets
1.534 0 0 -1.587 0 -53
Property, plant and equipment
4.029 0 0 -1.310 0 2.719
Receivables
-1.994 -2 0 -118 0 -2.114
Inventories
8.143 100 0 4.246 0 12.489
Other current assets
0 2 266 0 0 268
Equity, Hedging
-2.006 0 0 0 1.155 -851
Provisions
-1 0 0 115 0 114
Liabilities other than provisions
66.446 154 0 -13.155 0 53.445
Tax losses
16.628 603 0 -551 0 16.680
Deferred tax at 31 December, net
92.779 857 266 -12.360 1.155 82.697
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
2024
1 Jan.
Foreign
exchange
adjustment
Additions on
acquisition
Recognised in
profit for the
year
Recognised in
equity 31 Dec.
Intangible assets
-5.339 0 0 116 0 -5.223
Property, plant and equipment
-1.368 0 0 35 0 -1.333
Equity, Hedging
-2.229 0 0 0 1.936 -293
Liabilities other than provisions
40.336 0 0 -5.654 0 34.682
Deferred tax at 31 December, net
31.400 0 0 -5.503 1.936 27.833
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
PARENT COMPANY
CONSOLIDATED
46
19 INVENTORIES
2024 2023 2024 2023
Raw materials and consumables
441.545 393.883 19.711 13.275
Finished goods and goods for resale
526.861 447.023 54.728 42.810
Total inventories
968.406 840.906 74.439 56.085
Inventory values are presented at lower of cost and net realisable value.
Cost of inventories for which impairment losses have been
recognised
184.020 276.851 545 432
Accumulated impairment losses on inventories -77.792 -66.896 -272 -299
Net sales value 106.228 209.955 273 133
20 CORPORATE INCOME TAX
2024 2023 2024 2023
Income tax payable at 1 Janaury
14.966 -10.604 -2.701 5.112
Exchange adjustments
-47 -489 0 0
Current tax for the year
-4.224 -19.389 3.505 -22.395
Adjustment related to prior years - current tax
2.464 -1.686 0 0
Addition on acqusitions
-879 0 0 0
Corporate income tax paid during the year
25.872 30.627 8 0
Joint taxation contribution paid during the year
-12.557 16.507 9.686 14.582
Income tax at 31 December
25.595 14.966 10.498 -2.701
Which is distributed as follows:
Corporate income tax, receivable
3.105 23.816 0 0
Joint taxation contribution, receivable
25.172 3.661 10.511 0
Corporate income tax, payable
-2.682 -2.702 -13 -10
Joint taxation contribution, payable
0 -9.809 0 -2.691
Income tax at 31 December
25.595 14.966 10.498 -2.701
Defered tax:
The Group has applied the temporary exception 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 was enacted in Denmark in December 2023 and has been effective for the Group’s financial year beginning
1 January 2024. It implies that Borg Automotive Group 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 jurisdictions have
enacted local top-up tax rules, the top-up tax will be paid locally. The top-up tax will be included in the Borg Automotive Group’s
annual report.
The assessment based on these numbers indicates that the jurisdictions of Borg Automotive Group should not be exposed to top-up
tax of the Pillar Two legislation in 2024, mainly because the effective tax rate in each of the jurisdictions amounts to 15% or higher.
CONSOLIDATED PARENT COMPANY
During 2024, TDKK 6.824 (2023: TDKK 4.901) was recognised in inventory as write-down of inventory to net realisable value at Group
level. The adjustment of TDKK 1.923 (2023: TDKK -5.124) is recognised in cost of sales as a cost.
In the Parent Company, TDKK 1.923 (2023: TDKK -5.124) was recognised during 2024 as a cost for inventories carried at net
realisable value. A cost was offset in cost sales (TDKK 823) and a cost was recognised as part of result in shares in subsidiaries (TDKK
1.100).
CONSOLIDATED PARENT COMPANY
For the first three years, safe-harbour rules are in force. The safe-harbour rules imply that one out of three simplified tests should be
passed to fall outside the Pillar Two legislation. These tests are based on numbers reported for the Groups annual report and country-
by-country reporting for 2024.
47
21 RECEIVABLES AND PAYABLES WITH RELATED
PARTIES
2024 2023 2024 2023
Receivables from related parties, interest-bearing, non-current
0 0 271.402 594.408
Receivables from related parties, interest-bearing, current
0 0 338.759 0
Receivables from related parties, current
0 0 11.364 14.118
Payables to related parties, interest-bearing, non-current
0 0 -60.513 -52.462
Payables to related parties, interest-bearing, current
-625.324 -588.655 -648.098 -596.123
Payables to related parties, current
0 0 -102.027 -153.620
-625.324 -588.655 -189.113 -193.679
Recognised as follows in assets:
Receivables from related parties, non-current 0 0 271.402 594.408
Receivables from related parties, current 0 0 350.123 14.118
Payables to related parties, non-current 0 0 -60.513 -52.462
Payables to related parties, current -625.324 -588.655 -750.125 -749.743
-625.324 -588.655 -189.113 -193.679
22 SHARE CAPITAL
2024 2023
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 2024 2023 2024 2023
Debt recognised in the balance sheet:
Credit institutions
0 37 0 0
Mortgage debt
31.015 0 31.015 0
Lease liabilities
31.716 39.095 913 704
Payables to related parties
0 0 60.513 52.462
Non-current interest bearing debt
62.731 39.132 92.441 53.166
Current portion of non-current interest-bearing debt
25.111 19.628 2.293 941
Payables to related parties
625.324 588.655 648.098 596.123
Current interest-bearing debt
650.435 608.283 650.391 597.064
Total interest-bearing debt
713.166 647.415 742.832 650.230
Fair-value of interest-bearing debt
713.166 647.415 742.832 650.230
Weighted average effective rate of interest for the year was (%)
7,3% 5,0% 7,0% 4,9%
Weighted average effective rate of interest for the balance sheet
date was (%)
7,7% 6,8% 7,5% 5,8%
Interest-bearing debt per currency:
DKK
223.250 535.126 207.977 514.516
EUR
143.261 63.639 211.318 115.689
PLN 342.564 36.006 321.893 14.116
GBP
-842 9.923 -5 4.249
USD
-2.027 2.721 -14 1.660
NOK
1.663 0 1.663 0
TND
5.297 0 0 0
Total interest-bearing debt 713.166 647.415 742.832 650.230
PARENT COMPANY
CONSOLIDATED
BA Group net-borrowings are mainly in DKK, EUR and PLN 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
2024
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
11.976 9.388 487 182 0 0 22.033
Interest-bearing liabilities
Non-current credit institutions
-37 38 0 -1 0 0 0
Non-current morgage debt
0 -33.034 0 0 0 2.019 -31.015
Non-current lease liabilities
-39.095 0 -3.678 -496 11.553 0 -31.716
Current part of non-current, credit
institutions
-394 402 0 -8 0 0 0
Current part of non-current mortgage debt
0
770
0
0
0
-2.034
-1.264
Current part of non-current lease debt
-19.234 23.300 -1.576 -284 -26.053 0 -23.847
Current debt to group companies
-588.655 -30.886 0 -5.783 0 0 -625.324
Net interest-bearing debt
-635.367 -30.022 -4.767 -6.390 -14.500 -15 -691.061
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
CONSOLIDATED
Non-cash changes
Non-cash changes
50
23
INTEREST-BEARING DEBT
(Continued)
Development in Net interest-bearing debt
2024
1 Jan.
Cash flow
Acquisi-
tions
Currency
exchange
movements Leasing Other
31 Dec.
Interest-bearing assets
Non-current receivables from related parties 594.408 -21.186 0 772 0 -302.592 271.402
Current receivables from related parties 0 -2.929 0 5.720 0 335.968 338.759
Cash 725 802 0 17 0 0 1.544
Interest-bearing liabilities
Non-current morgage debt 0 -33.034 0 0 0 2.019 -31.015
Non-current lease liabilities -704 0 0 0 -209 0 -913
Non-current payables to related parties -52.462 -11.838 0 -31 0 3.818 -60.513
Current part of non-current mortgage debt 0 770 0 0 0 -2.034 -1.264
Current part of non-current lease debt -941 1.535 0 0 -1.623 0 -1.029
Current payables to related parties -596.123 -46.297 0 -5.678 0 0 -648.098
Net interest-bearing debt -55.097 -112.177 0 800 -1.832 37.179 -131.127
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
PARENT COMPANY
Non-cash changes
Non-cash changes
51
24
OTHER PAYABLES
2024 2023 2024 2023
Core liability, specification below
62.421
69.268
47.119
54.315
Employee related debt
1.908
2.898
0
0
Other payables
91
0
0
0
Other payables, non-current 64.420 72.166 47.119 54.315
Core liability, specification below
187.588
207.803
141.358
162.944
Employee related debt
35.063
36.738
4.215
5.838
Hedging instruments
0
1.412
0
0
Customer bonus
39.098
44.728
22.721
26.567
VAT
5.685
10.905
3.770
8.938
Other payables
26.614
15.779
3.213
2.866
Other payables, current
294.048 317.365 175.277 207.153
Total other payables 358.468 389.531 222.396 261.468
CORE LIABILITY
2024 2023 2024 2023
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
718.202
639.372
548.688
486.003
Estimated value of cores
-468.193 -362.302 -360.211 -268.744
Net core liability accrued for in the balance sheet
250.009 277.071 188.477 217.259
CONSOLIDATED
PARENT COMPANY
52
25
PROVISIONS
2024 2023 2024 2023
At 1 January
32.697
29.411
26.269
28.179
Utilized during the year
-15.575
-16.460
-12.513
-15.357
Additions
13.963
19.746
10.910
13.447
At 31 December
31.085 32.697 24.666 26.269
Recognised in the balance sheet as follows:
Non-current liabilities
13.499 17.123 10.711 13.757
Current liabilities
17.587 15.575 13.956 12.513
Provisions 31 December
31.086 32.698 24.667 26.270
Recognised in the income statement:
Cost of sales
13.963
19.746
10.910
13.447
Provisions recognised in the income statement
13.963 19.746 10.910 13.447
The historical return rate of warranty units in 2024 was on average 10,5 months, compared to 12,6 months in 2023.
26
ADJUSTMENT FOR NON-CASH TRANSACTIONS
2024 2023 2024 2023
Purchase of intangible assets
-295 -1.287 -295 -1.148
Of which had not been paid at the balance sheet date/adjustment
for the year
137 1 137 1
Amount paid in relation to intangible assets
-158 -1.286 -158 -1.147
Purchase of property, plant and equipment
-58.016
-59.066
-4.025
-41.275
Of which had not been paid at the balance sheet date/adjustment
for the year
244 6974 244 6380
Amount paid in relation to purchase of property, plant and
equipment
-57.772 -52.092 -3.781 -34.895
Incurring financial liabilities
42.714
26.588
34.902
1.620
Of which lease debt
-9.680 -26.588 -1.868 -1.620
Proceeds from incurring financial liabilities
33.034 0 33.034 0
27 CHANGES IN WORKING CAPITAL
2024 2023 2024 2023
Change in inventories
-115.023 152.433 -18.353 357
Change in receivables and other receivables
14.719 -76.930 33.984 -85.077
Change in trade payables and other payables
27.575 -79.694 -106.307 -741
Changes in working capital in total -72.729 -4.191 -90.676 -85.461
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
2024
Carrying
amount Fair value 0-1 years 1-5 years > 5 years
Total cash
flow
Trade receivables
305.405
305.405
305.405
0
0
305.405
Other receivables
54.331
54.331
41.947
13.142
0
55.089
Cash in hand and in bank
22.033
22.033
22.033
0
0
22.033
Receivables measured at amortised cost 381.769 381.769 369.385 13.142 0 382.527
Derivative financial assets (level 2)
3.863 3.863 3.863 0 0 3.863
Financial derivaties used for hedging purposes 3.863 3.863 3.863 0 0 3.863
Total financial assets 385.632 385.632 373.248 13.142 0 386.390
Interest bearing debt
32.279
32.279
1.310
4.410
27.721
33.441
Lease liabilities
55.563
55.563
25.755
33.372
0
59.128
Payables to related parties
625.324
625.324
625.324
0
0
625.324
Trade payables
256.398
256.398
256.398
0
0
256.398
Other payables
358.468
358.468
294.048
64.420
0
358.468
Financial liabilities measured at amortised cost 1.328.032 1.328.032 1.202.835 102.203 27.721 1.332.759
Derivative financial liabilities (level 2)
0 0 0 0 0 0
Financial derivaties used for hedging purposes 0 0 0 0 0 0
Total financial liabilities 1.328.032 1.328.032 1.202.835 102.203 27.721 1.332.759
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 2024 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 and 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
(Continued)
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
PARENT COMPANY
2024
Carrying
amount Fair value 0-1 years 1-5 years > 5 years
Total cash
flow
Trade receivables
169.738
169.738
169.738
0
0
169.738
Receivables from related parties
621.525
621.525
11.364
362.093
407.837
781.294
Other receivables
2.901
2.901
2.901
0
0
2.901
Cash in hand and in bank
1.544
1.544
1.544
0
0
1.544
Receivables measured at amortised cost 795.708 795.708 185.547 362.093 407.837 955.477
Derivative financial assets (level 2)
1.327 1.327 1.327 0 0 1.327
Financial derivaties used for hedging purposes 1.327 1.327 1.327 0 0 1.327
Total financial assets 797.035 797.035 186.874 362.093 407.837 956.804
Lease liabilities
1.942
1.942
1.085
938
0
2.023
Payables to related parties
810.638
810.638
750.125
13.243
76.365
839.733
Trade payables
26.057
26.057
26.057
0
0
26.057
Other payables
222.396
175.277
175.277
47.119
0
222.396
Financial liabilities measured at amortised cost 1.061.033 1.013.914 952.544 61.300 76.365 1.090.209
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 1.061.033 1.013.914 952.544 61.300 76.365 1.090.209
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
(Continued)
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
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
2024
2023
Revenue +5% 40.144 35.461
Profit for the year/Equity +5% 23.969 21.405
The opposite effect will impact revenue and profit for the year/equity per a 5% decrease in the raw material prices.
PARENT COMPANY
Change 2024 2023
Revenue +5% 32.051 28.462
Profit for the year/Equity +5% 20.318 18.236
The opposite effect will impact revenue and profit for the year/equity per a 5% decrease in the raw material prices.
FOREIGN CURRENCY RISK
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.
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 finished goods from China. Consequently
there is an inherent risk of exchange rate fluctuations impacting both profits and the financial position in DKK.
57
29
FINANCIAL RISKS
(Continued)
CONSOLIDATED
Currency
Securities and
cash/
equivalents Receivables Debt
Net position
before
hedging
Hedged by
financial
instruments
Net position
after hedging
EUR / DKK 803 444.006 -796.996 -352.187 0 -352.187
EUR / GBP
8.854
18.873
-5.536
22.191
0
22.191
EUR / PLN
77
27.745
-37.282
-9.460
0
-9.460
EUR / TND
0
0
-17.963
-17.963
0
-17.963
PLN / DKK
2.204
342.394
-406.504
-61.906
80.279
18.373
GBP / DKK
371
33.474
-17.290
16.555
0
16.555
GBP / EUR
0
11.109
-157
10.952
0
10.952
USD /DKK
3.547
0
-24.696
-21.149
14.296
-6.853
NOK / DKK
0
1.828
-5.962
-4.134
0
-4.134
USD / PLN
47
5
-27.643
-27.591
0
-27.591
USD / EUR
1
0
-37.754
-37.753
0
-37.753
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
Sensitivity of currency risk
Change 2024 2023
PLN/DKK
+ 5%
-717
-6.804
GBP/EUR
+ 5%
-427
-428
GBP/DKK
+ 5%
-646
-60
EUR /GBP
+ 5%
-865
-456
EUR/TND
+ 5%
701
0
USD/PLN
+ 5%
1.076
203
USD /EUR
+ 5%
1.472
813
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.
The group's foreign exchange risks recognised in the balance sheet at 31 December 2023:
The Group's significant foreign exchange risks recognised in the balance sheet at 31 December 2024:
Below for both BA Group and the parent company is illustrated the most significant foreign exchange exposures at year-end:
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 the NEwman business. 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. 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.
58
29
FINANCIAL RISKS
(Continued)
Currency
Securities and
cash/
equivalents Receivables Debt
Net position
before
hedging
Hedged by
financial
instruments
Net position
after hedging
EUR / DKK 2 419.107 -684.927 -265.818 0 -265.818
GBP / DKK
8
32.546
-17.290
15.264
0
15.264
NOK / DKK
0
1.828
-5.962
-4.134
0
-4.134
PLN / DKK
1.439
342.394
-406.155
-62.322
80.279
17.957
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
Sensitivity of currency risk
Change
2024
2023
PLN/ DKK +5% -700 -6.758
GBP/ DKK +5% -595 17
INTEREST RATE RISK
CONSOLIDATED
Change
2024
2023
Profit for the year
+1%
-5.489
-5.104
Equity
+1%
-5.489
-5.104
The opposite effect will impact revenue and profit for the year/equity per a 5% decrease in the interest rates.
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 and mortgage
debt. As of 31 December 2024 interest-bearing assets amounted to TDKK 22.105 (2023: TDKK 12.048) and interest-bearing debt of TDKK
713.166 (2023: TDKK 647.415).
PARENT COMPANY
The Parent Company's significant foreign exchange risks recognised in the balance sheet at 31 December 2024:
The Parent Company´s foreign exchange risks recognised in the balance sheet at 31 December 2023:
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:
The interest rate risk is not hedged, but the risk and threat is considered medium, primarily as a result of the financing of the activities in
Poland.
59
29
FINANCIAL RISKS
(Continued)
PARENT COMPANY
Change
2024
2023
Profit for the year
+1%
1.023
430
Equity
+1%
5.310
4.657
CREDIT RISK
Trade receivables can be specified as follows:
2024 2023 2024 2023
Not overdue
243.871
263.174
154.993
167.388
Due below 30 days
26.855
43.334
13.650
24.381
Due between 31 and 90 days
12.329
11.327
724
216
Due above 90 days
30.188
14.816
371
1.018
Trade receivables before allowance 313.243 332.651 169.738 193.003
Impairment -7.838 -7.467 0 -172
Total trade receivables 305.405 325.184 169.738 192.831
97,5% 97,8% 100,0% 99,9%
Impairment rate
2,5% 2,2% 0,0% 0,1%
Impairment losses on trade receivables 2024 2023 2024 2023
Impairment losses at 1 January -7.467 -7.295 -172 0
Exchange rate adjsutement -9 0 0 0
Impairment losses during the year -730 0 212 -159
Realised loss 368 -172 -40 -13
Impairment losses at 31 December -7.838 -7.467 0 -172
The overall credit risk of the BA Group is considered to be low.
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
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 7.838 (consolidated) relates primarily to trade receivables due above 30 and 90 days with the Newman business.
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.
60
29
FINANCIAL RISKS
(Continued)
LIQUIDY RISK
CAPITAL STRUCTURE
30
DERIVATIVE FINANCIAL INSTRUMENTS
CONSOLIDATED
Currency Period 2024 2023 2024 2023 2024 2023
PLN/EUR 0-1 year 230.000 150.000 4,4112 4,6333 1.326 10.547
DKK/NOK 0-1 year 0 9.000 0,0000 0,6323 0 -420
USD/EUR 0-1 year 10.000 7.000 0,9070 0,9122 2.536 -1.012
Tax -849 -2.005
Total before tax 3.013 7.110
PARENT COMPANY
Currency Period 2024 2023 2024 2023 2024 2023
PLN/EUR 0-1 year 230.000 150.000 4,4112 4,6333 1.326 10.547
DKK/NOK 0-1 year 0 9.000 0,0000 0,6323 0 -420
Tax -292 -2.228
Total before tax 1.034 7.899
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.
Contractual value in currency Average price
Gains and losses recognized in
the equity
Gains and losses recognized in
the equityContractual 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 2024 the Groups liquidity reserve consist of both cash at hand, deposits at credit institutions, mortgage debt and cash pool
accounts which amount to TDKK 50.605, of which TDKK 28.699 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.
61
31
CONTINGENT LIABILITIES AND GUARANTEES
2024 2023 2024 2023
Guarantees
As security for the engagement with mortgage institutions, mortgage
deeds have been issued with a total value at year-end of 33.710 0 33.710 0
The value of the related assets amounts to the following 58.516 0 58.516 0
Debt to the mortgage-institution at year-end amounted to 32.279 0 32.279 0
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: 8.094 7.719 8.094 7.719
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: 2.013 2.012 0 0
2024 2023 2024 2023
The following amount was drawn on the credit facilties as mentioned
above at year-end 654.023 606.046 648.098 596.123
Contractual commitments
BA Group have commited to the purchase of assets in the next year
of the following amounts: 1.758 3.666 0 2.876
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: 525 2.625 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’s source of financing is primarily composed of a syndicated banking facility, which in December 2020 was
refinanced with a total facility framework of DKK 3.275 million. The facility expires 10th of January 2026, and has an outstanding of
DKK 1.223 million.
In April 2019 and November 2023, Schouw & Co. issued Schuldschein transactions of EUR 136 million, and EUR 225 million. The
amount outstanding on the Schuldscheins is EUR 252 million (DKK 1.879 million) with expiries in April 2026, November 2026,
November 2028 and November 2030.
In December 2021, a loan was established for a total of DKK 400 million with Nordic Investment Bank for specific capacity and
development investments. The loan has an outstanding of DKK 356 million and expires in December 2028
In 2022 and 2023, Schouw & Co. established a number of term loans. Of these loans only one loan remains with an outstanding
amount of DKK 350 million and expiry in January 2025.
In June 2024, Schouw & Co. issued a bond in the Norwegian bond market with a nominal value of NOK 1.300 million. The bond was
further supplemented with an additional NOK 500 million in September 2024 to a total of NOK 1.800 million (DKK 1.161 million). To
eliminate any currency risk, the nominal amount and all future interest payments is swapped to DKK.
The company, like other major subsidiaries in Schouw & Co., co-guarantees the aforementioned facilities totaling DKK 7.020 million,
where of DKK 4.969 million is utilized per 31/12-2024. In addition, a smaller facility totaling DKK 43 million is guaranteed, where of
DKK 34 million is utilized.
CONSOLIDATED
PARENT COMPANY
62
31
CONTINGENT LIABILITIES AND GUARANTEES
(Continued)
Joint taxation liability
32
RELATED PARTIES
2024 2023 2024 2023
Sale of goods to subsidiaries
0
0
252.608
240.035
Purchase of goods from subsidiaries
0
0
1.084.156
978.097
Sales of services to subsidiaries
0
0
48.783
27.659
Purchase of services from subsidiaires
0
0
12.892
7.929
Sales of fixed assets to suibsidiaries
0
0
31
0
Sales of customer and core liability, net from subsidiaires
0
0
0
5.083
Purchase of research and development from subsidiaries
0
0
16.827
15.524
Royalty income from subsidiaries
0
0
2.888
7.409
Royalty expenses to subsidiaries
0
0
10.140
0
Storage financing
0
0
32.112
31.687
Interests paid to subsidiaries
0
0
3.213
2.553
Interests paid to parent company
46.435
24.322
45.841
23.750
Interests received from subsidiaries
0
0
40.407
2.799
Interests received from parent company
1.024
502
17
71
Management fee paid to parent company
2.000
1.950
2.000
1.950
Dividend paid to parent company
0
0
0
0
Dividend received from subsidiaries
0
0
7.457
5.212
Receivables from subsidiaries
0
0
621.525
608.526
Payables to subsidiaires
0
0
162.540
206.082
Payables to parent company
625.324
588.655
648.098
596.123
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
Annual reportAuditor's report on audited financial statementsParsePort XBRL Converter2024-01-012024-12-312023-01-012023-12-31549300MDSIE3MD0RSU02Reporting class C, medium-size enterpriseOpinionBasis for Opinionmne23328mne23333549300MDSIE3MD0RSU022024-01-012024-12-31cmn:ConsolidatedMember549300MDSIE3MD0RSU022024-01-012024-12-31549300MDSIE3MD0RSU022023-01-012023-12-31549300MDSIE3MD0RSU022024-01-012024-12-31ifrs-full:SeparateMember549300MDSIE3MD0RSU022023-01-012023-12-31ifrs-full:SeparateMember549300MDSIE3MD0RSU022024-12-31549300MDSIE3MD0RSU022023-12-31549300MDSIE3MD0RSU022024-12-31ifrs-full:SeparateMember549300MDSIE3MD0RSU022023-12-31ifrs-full:SeparateMember549300MDSIE3MD0RSU022022-12-31549300MDSIE3MD0RSU022023-12-31ifrs-full:IssuedCapitalMember549300MDSIE3MD0RSU022024-01-012024-12-31ifrs-full:IssuedCapitalMember549300MDSIE3MD0RSU022024-12-31ifrs-full:IssuedCapitalMember549300MDSIE3MD0RSU022023-12-31ifrs-full:ReserveOfCashFlowHedgesMember549300MDSIE3MD0RSU022024-01-012024-12-31ifrs-full:ReserveOfCashFlowHedgesMember549300MDSIE3MD0RSU022024-12-31ifrs-full:ReserveOfCashFlowHedgesMember549300MDSIE3MD0RSU022023-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember549300MDSIE3MD0RSU022024-01-012024-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember549300MDSIE3MD0RSU022024-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember549300MDSIE3MD0RSU022023-12-31ifrs-full:RetainedEarningsMember549300MDSIE3MD0RSU022024-01-012024-12-31ifrs-full:RetainedEarningsMember549300MDSIE3MD0RSU022024-12-31ifrs-full:RetainedEarningsMember549300MDSIE3MD0RSU022023-12-31BOR:DividendsProposedOrDeclaredBeforeFinancialStatementsAuthorisedForIssueButNotRecognisedAsDistributionToOwnersRecognisedInEquityMember549300MDSIE3MD0RSU022024-01-012024-12-31BOR:DividendsProposedOrDeclaredBeforeFinancialStatementsAuthorisedForIssueButNotRecognisedAsDistributionToOwnersRecognisedInEquityMember549300MDSIE3MD0RSU022024-12-31BOR:DividendsProposedOrDeclaredBeforeFinancialStatementsAuthorisedForIssueButNotRecognisedAsDistributionToOwnersRecognisedInEquityMember549300MDSIE3MD0RSU022022-12-31ifrs-full:IssuedCapitalMemberifrs-full:PreviouslyStatedMember549300MDSIE3MD0RSU022023-01-012023-12-31ifrs-full:IssuedCapitalMember549300MDSIE3MD0RSU022022-12-31ifrs-full:ReserveOfCashFlowHedgesMemberifrs-full:PreviouslyStatedMember549300MDSIE3MD0RSU022023-01-012023-12-31ifrs-full:ReserveOfCashFlowHedgesMember549300MDSIE3MD0RSU022022-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMemberifrs-full:PreviouslyStatedMember549300MDSIE3MD0RSU022023-01-012023-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember549300MDSIE3MD0RSU022022-12-31ifrs-full:RetainedEarningsMemberifrs-full:PreviouslyStatedMember549300MDSIE3MD0RSU022023-01-012023-12-31ifrs-full:RetainedEarningsMember549300MDSIE3MD0RSU022022-12-31BOR:DividendsProposedOrDeclaredBeforeFinancialStatementsAuthorisedForIssueButNotRecognisedAsDistributionToOwnersRecognisedInEquityMemberifrs-full:PreviouslyStatedMember549300MDSIE3MD0RSU022023-01-012023-12-31BOR:DividendsProposedOrDeclaredBeforeFinancialStatementsAuthorisedForIssueButNotRecognisedAsDistributionToOwnersRecognisedInEquityMember549300MDSIE3MD0RSU022022-12-31ifrs-full:PreviouslyStatedMember549300MDSIE3MD0RSU022024-01-012024-12-31cmn:ConsolidatedMember1549300MDSIE3MD0RSU022024-01-012024-12-31cmn:ConsolidatedMember1549300MDSIE3MD0RSU022024-01-012024-12-31cmn:ConsolidatedMember2549300MDSIE3MD0RSU022024-01-012024-12-31cmn:ConsolidatedMember3549300MDSIE3MD0RSU022024-01-012024-12-31cmn:ConsolidatedMember4549300MDSIE3MD0RSU022024-01-012024-12-31cmn:ConsolidatedMember5549300MDSIE3MD0RSU022024-01-012024-12-31cmn:ConsolidatedMember1549300MDSIE3MD0RSU022024-01-012024-12-31cmn:ConsolidatedMember2549300MDSIE3MD0RSU022024-12-31cmn:ConsolidatedMember549300MDSIE3MD0RSU022023-01-012023-12-31cmn:ConsolidatedMemberiso4217:DKKxbrli:pure