1
CVR no. 38 47 34 92
Date of the Annual General Meeting: 17 March 2025
Chairman of the Annual General Meeting: Henrik Holm
2
Present in 12 locations
958 aircraft on contract
10 repair and
warehouse facilities
unique customers 20,000 wheels and
brakes in stock
+640
Customers in more
than 100 countries
19,200 m
2
warehouse
17 years of operation
Close to 400 employees
Since its foundation in 2008, TP Aerospace has
grown from a small start-up in Copenhagen,
Denmark to the globally leading aftermarket
supplier of aircraft wheels and brakes. The com-
pany was built on a vision to bring simplicity to a
highly complex niche within the aviation industry,
and this is still the case today.
We have evolved to become a one-stop-shop for
aircraft wheels and brakes, supporting a recur-
ring and growing customer base of airlines, les-
sors, maintenance facilities, brokers and others.
At our 12 locations around the world, we
employ close to 400 employees, most of whom
are employed within one of our 10 repair and
warehouse facilities. In total, our repair facili-
ties conduct repairs and overhauls on more than
42,000 wheels and brakes every year to sup-
port our customers all over the world.
+740,000
landings supported
ABOUT TP AEROSPACE
3
Programs
Provides commercial aircraft operators worldwide with a simple
alternative to component management. Through our integrated wheel and
brake programs, we offer long-term and all-inclusive solutions designed
to simplify wheel and brake maintenance and repair activities and
accommodate our customers’ short and long-term requirements. Our fully
integrated forward exchange programs offer a plug’n’play cost-per-landing
concept where the customer pays a xed rate per landing or a xed fee
per event. We also offer MRO service programs where asset ownership
remains with the airline.
Components
Provides operators, maintenance facilities, brokers, and lessors with
unmatched access to critical wheel and brake components. With the
world’s largest inventory of ready-to-go aircraft wheels and brakes in
the aftermarket, we support a recurring and growing customer base on
an outright sale and ad-hoc exchange basis, catering to both routine and
AOG* deliveries worldwide. Components is also a critical enabler and
sourcing channel of Used Serviceable Material (USM) for Programs.
Distribution
Provides airlines, maintenance facilities, lessors and brokers with easy
access to new wheel and brake piece parts and assemblies across all major
commercial platforms. Through close partnerships with the Original
Equipment Manufacturers (OEMs), we ensure availability of most part
numbers across platforms at a competitive price and with minimal lead
time. Distribution is also a key supplier to support our own maintenance
operations.
TP Aerospace operates three distinct business divisions that each deliver a particular service or product to the market.
While having some inherent differences, the three divisions are complementary with distinct synergies, primarily because they
share an extensive customer base, as well as an unmatched supplier and logistics network leveraging customer access.
Sourcing Inventory
Customers
In-house MRO
Sourcing Inventory Customers
BUSINESS MODEL
*Aircraft on Ground, or AOG, is an aviation term indicating that a maintenance issue is serious enough to prevent an aircraft from ying.
Acquiring and tting parts is time sensitive as the aircraft must return to service as quickly as possible to prevent delays or cancellations.
4
CPH (HQ)
Copenhagen, DK
2008
71 employees (+2)*
EMA
East Midlands, UK
2018
21 employees (+0)*
HAM
Hamburg, DE
2010
96 employees (-5)*
BRQ
Brno, CZ
2023
26 employees (+5)*
MCO
Orlando, US
2015
55 employees (-4)*
OUR GLOBAL TEAM
* ( ) indicates change in employee count from 2023
LAS
Las Vegas, US
2011
14 employees (+2)*
SIN
Singapore, SG
2013
46 employees (+1)*
BKK
Bangkok, TH
2019
8 employees (+0)*
KUL
Kuala Lumpur, MY
2020
12 employees (+1)*
SZX
Shenzhen, CN
2019
Representative ofce
MEL
Melbourne, AU
2016
27 employees (+1)*
BNE
Brisbane, AU
2023
8 employees (+0)*
5
2 / STRATEGY & BUSINESS
Market & strategic priorities .....................18
Fueling growth from the core ....................19
Fueling the operational backbone. . . . . . . . . . . . . . . . 20
Fueling our people & culture ..................... 21
3 / SUSTAINABILITY
Sustainability ..................................... 23
Environment & climate .......................... 25
People
............................................ 26
Governance & ethics ............................ 27
Other sustainability information ................ 28
4 / RISK MANAGEMENT
Risk management ................................ 30
Key risk .......................................... 31
1 / OVERVIEW
Chairman’s insight ................................ 8
Letter from Executive Management ...............9
Key events ........................................10
Financial highlights & key gures ................ 11
Financial review ..................................13
5 / MANAGEMENT
Board of Directors ............................... 35
Executive Management .......................... 37
6 / FINANCIAL STATEMENTS
Consolidated nancial statements ............... 40
Parent company nancial statements ............ 76
Signatures ........................................ 87
7 / OTHER INFORMATION
Denition of key gures ......................... 91
Additional management duties of the Board .... 92
Company details ..................................97
TABLE OF
CONTENTS
Page 10
Get an overview of our
milestones and key
events achieved in 2024.
Read about our market
and strategic priorities
as we continue to secure
our market position.
8
We consider ourselves the global
aftermarket leader of wheels and
brakes with a revenue of close to
USD 200m in 2024. Our position as
a global leader is further amplied
by our diversied global presence
across Europe, the Americas, Asia
Pacic, and Australia, as well as our
unmatched value proposition as a
one-stop-shop within aircraft wheels
and brakes, which has driven our
growth over the past 16 years.
Organic growth above market
levels
Since the pandemic, TP Aerospace
has achieved remarkable and
above-market growth. From 2019 to
2024, TP Aerospace’s growth rate
was ~10%, outpacing the market’s
growth of ~4%. We take great pride
in serving an increasing number
of customers, which we see as a
testament to the value we provide
every day.
In 2024, our focus was on enhancing
and improving the efciency of our
core operations. This led to a more
modest growth rate compared
to previous years, allowing us to
further optimize our processes.
For 2024, we achieved revenue of
181m, reecting a growth of 1%.
Despite the limited top line growth
in 2024, our uninterrupted focus on
asset optimizations and operational
efciency improvements resulted in
an EBITDA of USD 74.1m compared
to USD 63.7m in 2023, as well as a
free cash ow before interest paid
of USD 14.0m compared to USD
14.7m in 2023.
With these operational
improvements and results,
we embark on a new year in a
strong position to pursue new
opportunities in 2025.
Developing the commercial
platform
While our focus remains tirelessly
on our core business, TP Aerospace
is simultaneously navigating a
transformation journey ensuring
that we remain at the forefront
of our industry in the years to
come. Over the past couple of
years, we have actively developed
the commercial platform that has
secured above-market growth and
will continue to do so in the future;
this has, amongst other things,
entailed substantial investments
in maintenance capacity with both
new repair facility additions as
well as improvements of existing
sites, digitalization and automation
of processes, better planning
capabilities and increased the
organizational bench strength.
With the addition and further
development of the Distribution
business division, TP Aerospace is
uniquely positioned as the only true
global wheel and brake specialist
in the aftermarket, which drives
a competitive advantage across
sourcing, operations, logistics and
our different value propositions
toward our customers.
As we continue to develop our
commercial platform, both TP
Aerospace and our customers are
increasingly beneting from the
inherent synergies between our
three business divisions linked to
inventory access and niche expertise
as well as maintenance operations.
Commitment to sustainable
business
We remain committed to the
sustainability agenda. Notably our
commitment to the principles of
the UN Global Compact as well as
the Science Based Target initiative
remains unchanged.
Generally, across our own activities,
we did show signicant efciency
improvements in 2024, resulting in
19.4% increase in energy efciency.
However, with the ramp-up of our
new facility in the Czech Republic
in particular, our scope 1 and scope
2 emissions increased by 15%
in 2024. It is a key focus area for
TP Aerospace going forward to
succeed in transitioning to green
energy sources to ensure that
we reduce the climate footprint
of our operations and meet
our commitments towards our
stakeholders.
CHAIRMAN’S INSIGHT
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
Flemming Jensen, Chairman
9
We started 2024 on an exciting
note as we moved into our new
headquarters in Copenhagen.
This was a signicant milestone
that marks the beginning of a new
journey for TP Aerospace
– a journey that we are venturing
into after years of growth and
commitment to our people,
customers and partnerships.
This new beginning reects our
dedication to fostering innovation
and enhancing our operational
efciency and is a testament to the
growth we have experienced over
the last few years.
The remainder of 2024 was
characterized by continuous
investments in strengthening and
improving our processes across
operational as well as commercial
areas. This was with the aim of
continuing to secure strong and
effortless services and support for
our customers now and in the future.
Catering to controlled demand
Compared to previous years’ growth
wave in the wake of the global
pandemic, growth slowed down
in 2024. This was partly driven by
fewer than expected new signings in
Programs in the rst part of the year
but mainly as a result of our focus on
managing the balance between cash
conversion and top line growth.
Overall activity levels were high
across our main regions in 2024,
although some markets faced lower-
than-expected demand. Notably,
the lower activity level among our
long-term contract customers in the
Oceania region contributed to the
lower growth in 2024.
In other regions, we continued to
meet increasing demands from
the market, and we have worked
proactively during the last couple of
years to increase our maintenance
capacity to cater to this. Throughout
2024, our focus was especially on
opening and continuous ramp-up of
our new European agship facility
in the Czech Republic, and we are
proud that we ended the year in a
strong position and with available
capacity to absorb further growth in
the coming years.
Commercially we ended the year
on a positive track going into 2025
with a number of new contract
signings, as well as signicant
contract extensions, which were
signed particularly towards the end
of the year. This included, amongst
others, MJets in Malaysia, Qantas
is the US and Marabu in Estonia.
We look forward to catering to
these new customers and seeing
these agreements materialize in the
coming year.
Meeting complexity with strong
planning
Throughout 2024, we have focused
intensely on enhancing planning
activities across all business areas.
By leveraging comprehensive data,
including ight cycle information
from customers, sales forecasts,
core unit burn rates, and piece part
consumption in our repair facilities,
the aim has been to ensure more
accurate forecasting and planning of
parts needs.
While we have seen improvements
in 2024 compared to previous years,
the industry is still facing challenges
related to supply disruptions leading
to longer lead times from OEMs and
delays in materials. Strong planning
capabilities are paramount in
mitigating these challenges.
Requirements from authorities,
as well as the growth of our
global footprint, have increased
our operational complexity.
Complexity is further driven by the
growing interdependencies and
synergies between our business
units, which means that we must
cater to the demands of both
internal and external stakeholders
simultaneously. By utilizing the
extensive data we have available
through our long experience and
expertise in wheels and brakes, we
have built advanced models that are
essential to maintaining efciency
and meeting our operational
goals of securing a high delivery
performance to customers across all
three business units.
The work is not yet done, but we
have built a strong foundation in
2024, which we will continue to
develop and harvest from.
We look ahead to 2025 with
excitement and look forward to
further building and harvesting
the benets of our strong tools,
processes and not least the strong
team of people that make up TP
Aerospace.
Happy reading.
Nikolaj Lei Jacobsen, CEO
Felix Ammann, COO
Tinneke Torpe, CFO
Nicolai Hertz, CCO
LETTER FROM EXECUTIVE
MANAGEMENT
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
10
GRAND OPENING IN
BRNO
In May, we had the pleasure of welcoming
customers and partners to the grand opening
of our new agship MRO facility. With a total
of 10,000 m2, the facility in Brno, Czech
Republic is the largest facility in our global
network.
SECOND MRO IN AUSTRALIA
PASSED FINAL CASA AUDIT
Our new facility in Brisbane, Australia passed the nal
audit in January and received approval from the Civil
Aviation Safety Authority (CASA). The rst wheel was
released to service on February 6
th
.
NEW HEADQUARTERS IN CPH
In the beginning of the year, we moved into a new
headquarters in Denmark. This was partly a result of
our strategic decision to consolidate our European
warehouse in the Czech Republic which enabled the move
into a modern and more strategically located ofce in
Copenhagen.
NEW PLATFORMS IN OUR
PORTFOLIO
During the year, we inducted new platforms, such as the A380
and the A220, into our repair facilities through new Programs
contracts. The ability to expand our capabilities is key to our value
proposition to the market.
KEY
EVENTS
FURTHER ROLL-OUT
AND DEVELOPMENT OF
PROCONTROL
In 2024, we successfully onboarded our APAC
Programs customers onto our customized customer
portal, PROControl. This, together with the further
development of the portal itself, ensures that we
continue to work for full transparency and continuous
operational alignment between TP Aerospace and our
customers.
10
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
11
FINANCIAL HIGHLIGHTS
& KEY FIGURES
continued
Income statement (USDm)
2024 2023 2022 2021 2020
Revenue 181.0 179.7 147.0 88.8 67.7
Revenue growth (%) 0.8% 22.2% 65.5% 31.3% -43.3%
Gross prot 114.5 101.9 85.1 53.1 40.4
Gross prot margin (%) 63.3% 56.7% 57.9% 59.8% 59.8%
EBITDA before special items 74.1 63.7 60.2 31.3 21.4
Proforma EBITDA before special items 73.5 63.7 56.6 33.7 23.2
EBITDA margin before special items (%) 40.9% 35.5% 40.9% 35.2% 31.6%
Proforma EBITDA margin before special items (%) 40.6% 35.5% 38.5% 37.9% 34.3%
EBITA before special items 24.1 19.7 22.8 7.7 1.2
Proforma EBITA before special items 23.4 19.7 19.2 10.1 3.0
EBITA margin before special items (%) 13.3% 10.9% 15.5% 8.7% 1.8%
Proforma EBITA margin before special items (%) 12.9% 10.9% 13.1% 11.4% 4.5%
EBIT before special items
(Operating prot before special items)
23.2 18.8 21.5 6.5 0.4
Proforma EBIT before special items 22.5 18.8 17.9 8.9 2.2
EBIT margin before special items (%)
(Operating prot before special items margin)
12.8% 10.5% 14.6% 7.4% 0.6%
Proforma EBIT margin before special items (%) 12.4% 10.5% 12.2% 10.1% 3.2%
Special items 3.3 6.0 2.1 2.0 6.8
EBIT after special items
(Operating prot after special items)
19.9 12.8 19.4 4.5 -6.4
EBIT margin after special items (%)
(Operating prot after special items margin)
11.0% 7.2% 13.2% 5.1% -9.5%
Net nancials -4.6 -8.4 -5.1 -2.5 -7.5
Prot before tax 15.3 4.5 14.3 2.0 -13.9
Net prot for the period 9.7 2.0 11.7 1.5 -11.4
Net prot for the period (%) 5.3% 1.1% 8.0% 1.7% -16.8%
Employees
2024 2023 2022 2021 2020
Number of FTEs (end of year) 380 382 331 245 228
Average number of FTEs 379 375 281 234 260
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
12
Balance sheet (USDm)
2024 2023 2022 2021 2020
Non-current assets
128.2 126.3 117.3 107.2 116.0
Additions to tangible assets 53.9 55.1 51.3 27.4 30.2
Total assets 228.7 223.4 228.1 189.9 198.1
Equity 115.0 105.4 103.3 91.9 90.2
Net interest-bearing debt 69.0 75.6 79.7 69.3 76.7
Invested capital 141.4 138.5 138.9 116.1 122.1
Net working capital 73.1 69.6 80.3 64.8 62.1
Total aircraft components 131.8 126.9 124.0 103.4 112.2
Cash ow (USDm)
2024 2023 2022 2021 2020
Cash ow from operating activities 15.3 19.6 4.8 14.5 -2.7
Cash ow from investing activities -6.5 -12.8 -14.4 -6.2 -9.5
Cash ow from nancing activities -8.1 -7.3 10.6 -7.7 11.5
Net cash ow 0.8 -0.5 1.0 0.7 -0.6
Free cash ow 8.9 6.8 -9.6 8.4 -12.1
Free cash ow before interest paid 14.0 14.7 -3.5 12.3 -6.4
FINANCIAL HIGHLIGHTS
& KEY FIGURES
Financial Raos
2024 2023 2022 2021 2020
Return on invested capital excluding goodwill (ROIC) (%) 52.9% 45.9% 47.2% 26.3% 17.7%
Net interest-bearing debt to EBITDA 0.9x 1.2x 1.3x 2.2x 3.6x
Equity ratio (%) 50.3% 47.2% 45.3% 48.4% 45.5%
Return on Equity (ROE) (%) 8.8% 1.9% 12.0% 1.7% -12.6%
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
13
TP Aerospace delivered a
satisfactory nancial performance
in 2024 with neutral development
in top line but solid growth in gross
prot and earnings before interest,
tax, depreciation, and amortization.
This was driven by increasing ight
activity but also a more stabilized
growth in demand for wheels
and brakes after the pandemic
recovery years, combined with a
diversied customer base and broad
geographical reach in all business
divisions. The improved earnings
also reected positive impacts from
various initiatives rolled out during
2023 and 2024. The number of
aircraft on contract ended at 958
aircraft, here of 823 aircraft were on
Programs contracts and 135 aircraft
were on MRO services contracts by
the end of 2024.
While prioritizing investments
in aircraft components to secure
asset availability in all divisions as
well as continued development of
the new sites in Brno in the Czech
Republic and Brisbane in Australia,
TP Aerospace still generated a
satisfactory free cash ow of USD
8.9m, thereby laying the foundation
for growth in 2025. Free cash ow
before interest paid reached USD
14.0m, a smaller decline of 0.7m
compared to USD 14.7m in 2023.
Income Statement
Revenue
Overall, 2024 revenue of USD
181.0m increased with USD 1.3m
compared to revenue of USD
179.7m in 2023. The revenue
development reected continued
growth in air trafc demand, aircraft
utilization and the global eet size
from 2023 to 2024, but also a more
stabilized growth in demand post
the pandemic recovery years in
2022 and 2023.
Programs
The 2024 revenue of USD 95.6m
in the Programs division increased
by 4.8% from USD 91.2m in 2023,
hereof USD 46.9m was realized in
the rst half of the year and USD
48.7m in the second half of the year.
Besides the impact from customers’
higher ight activity in 2024, the
main drivers behind the revenue
development were additional
aircraft and new platforms added by
existing Programs customers as well
as the signing of several programs
with new customers, offset by the
unfavorable impact from contract
termination from a few larger
customers. TP Aerospace continued
to benet from a diversied
range of aircraft platforms and a
geographically diversied portfolio
of larger and smaller customers,
with 63% of total contracted aircraft
being passenger operators and 37%
being cargo operators.
The 2024 revenue from the
Passenger segment grew by 2.7%
to USD 61.4m. This reected a
normalization of activities amongst
TP Aerospace’s customers post-
pandemic with several customers
expanding their eet, but also the
contract termination from a few
larger passenger operators. Revenue
from the Cargo segment increased
by 8.9% to USD 34.2m reecting
customers expanding their eet as
well as several new signings during
2024.
Within the Programs division, EMEA
increased by 7.9% and Americas
by 5.5% while APAC decreased
with 8.8% from 2023 to 2024. The
improved performance in EMEA
was driven by both the Passenger
segment with ACMI
1
operators
and the Cargo segment. Americas
predominantly grew within the
Passenger segment, reecting
favorable market development
for these operators with increase
in revenue passenger kilometers
(RPKs) in 2024 driven by strong
domestic travel and resurgence in
international travel. Overall, the
aircraft eet in the North American
market continued to grow and from
2023 has surpassed the 2019 level.
Compared to 2023, revenue from
existing customers improved by
USD 5.8m, an increase of 6.5%,
whereas new customers signed
during the year contributed USD
1.1m of the revenue, a drop of USD
1.4m compared to the revenue
share from new customers in 2023.
Activity with existing customers was
positively impacted by customers
expanding their activities as well as
the improved market situation with
higher ight activity. Revenue share
from new customers was impacted
by signings occurring later in the
year.
The Programs division ended
the year with 823 aircraft on
contract, a net decrease of 56
aircraft compared to 2023. Existing
customers added 53 new aircraft
to the portfolio, while a further
38 aircraft were added by new
customers. These additions were
offset by the unfavorable impact
of 121 aircraft coming off contract
due to various airline restructurings
and ordinary contract adjustments.
Of the 121 aircraft, 23 aircraft
were related to airlines which
ceased operations and closed their
activities, while 2 aircraft were
related to customers adjusting the
number of aircraft due to phase-
outs while the customer remained
on contract with TP Aerospace.
In comparison, 2023 included
95 aircraft additions by existing
customers and 63 aircraft additions
from new customers, offset by 179
aircraft coming off contract.
FINANCIAL REVIEW
continued
1. Aircraft, Crew, Maintenance, Insurance.
Revenue (USDm)
200
150
100
50
0
2020
68
89
147
180
2021 2022 2023 2024
181
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
14
Within our two program types,
revenue from the Flat-Rate
programs improved by 15.4% while
revenue from the For-Less programs
decreased by 12.5%. The increased
revenue for Flat-Rate programs
reected aircraft added by existing
customers as well as several signings
with new customers, both passenger
and cargo operators. The decreased
revenue for For-Less programs
was the result of the loss of a larger
customer mid-year.
Components
The 2024 revenue in the
Components division of USD 59.0m
declined 9.9% compared to 2023
revenue of USD 65.4m but ended
well above 2022 revenue of USD
57.6m, thereby demonstrating
another year of solid revenue
generation in the Components
division.
Different from the previous two
years, 2024 reected a year with a
more stabilized, yet still signicant
demand for used wheels and brakes
in the Components division. Airlines
and aircraft lessors have been
prepared for the wheels and brakes
OEM
2
vendors’, longer lead times
which otherwise has challenged the
global supply chains in the post-
pandemic years. Also, most of the
airlines repair work delayed during
the pandemic has been caught up.
Revenue in the Components division
showed improvements in Americas
and APAC with revenue growth of
13.1% and 3.0%, respectively.
Revenue in the EMEA region, on the
other hand, dropped 25.3%.
In 2024, the share of revenue from
repeat customers
3
totaled 52%
in the Components division, and
aircraft components were sold to
customers in 80 countries, adding six
new countries during the year while
other countries were not serviced
in 2024. In comparison, the revenue
share from repeat customers
constituted 57% in 2023.
Distribution
The 2024 revenue in the
Distribution division of USD 20.5m
increased by USD 2.8m, equal to
15.7% growth compared to 2023
revenue of USD 17.7m. The increase
was especially driven by a strong
traction in sales of Safran and
Goodrich assemblies and piece parts
as well as the Honeywell 737CL
platform for which TP Aerospace
in 2020 was awarded exclusive
distributorship, and the B767
platform for which TP Aerospace
entered a distribution agreement
with Honeywell in 2022.
The Distribution division has
matured well in 2024 with clear
focus on sales planning, as well
as inventory composition and
availability, and these efforts
reected in the revenue generation
with USD 8.8m realized in the rst
half of the year, a growth of 5.6%
compared to 2023, and USD 11.8m
realized in the second half of the
year, a growth of 24.7% compared
to 2023.
Gross prot
Gross prot for 2024 amounted
to USD 114.5m compared to USD
101.9m in 2023. The gross prot
margin of 63.3% was well above
2023 level at 56.7% due to high
margin sales in Components as well
as improved margins across several
programs in the Programs division.
‘
Staff costs and other external
expenses and other income
Staff Costs and Other External
Expenses, net of Other Income,
amounted to USD 40.4m in
2024 compared to USD 38.1m
in 2023, reecting an increase of
USD 2.3m or 5.9%. Most of the
increase was driven by higher staff
costs due to added headcount in
selected Commercial functions
and headcount added for the
operations of the two new sites in
Brno in the Czech Republic and
Brisbane in Australia. Other external
expenses increased due to various
operational initiatives to strengthen
and optimize sales and operational
planning and forecasting capabilities,
processes, and tools to cater for
operations and sales growth in all
three divisions. In addition, 2024
included income from government
support schemes of USD 0.6m which
related to prior years. In comparison,
2023 included bad debt provision of
USD 0.9m which was not repeated
in 2024.
Earnings
Earnings before interest, tax,
depreciation, and amortization
(EBITDA before special items) for
2024 amounted to USD 74.1m,
which was USD 10.4m higher than
the 2023 gure of USD 63.7m. The
EBITDA margin before special items
was 40.9%, a rise of 5.5 percentage
points compared to 2023, mainly
driven by higher gross prot margins
in the Programs and Components
division without similar increase in
xed costs.
Reecting the income from
government support schemes
received in the year where the
related costs were incurred,
Proforma EBITDA before special
items for 2024 amounted to USD
73.5m, while Proforma EBITDA
margin was 40.6% and thus,
compared to Proforma EBITDA for
2023, EBITDA before special items
in 2024 improved with USD 9.7m
while EBITDA margin rose by 5.1
percentage points.
FINANCIAL
REVIEW
2. Original Equipment Manufacturer. 3. Dened as customers who have made purchases in 2024 as well as in 2023.
continued
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
15
Earnings before interest, tax,
amortization and special items
(EBITA before special items) for
2024 amounted to USD 24.1m,
which was an increase of USD 4.4m
compared to USD 19.7m in 2023.
Proforma EBITA before special
items of USD 23.4m showed an
increase of USD 3.8m compared
to 2023. In addition to the change
in EBITDA before special items,
the higher activity in the Programs
division as well as accelerated
depreciation from terminated Flat-
Rate programs drove depreciation of
MRO repair costs up by USD 4.9m
to USD 43.7m compared to USD
38.9m in 2023.
EBITDA before special items
realized for 2024 was in the
expected range which was
communicated in the 2023 annual
report regarding the outlook for
2024.
Earnings before interest, tax and
special items (EBIT before special
items) for 2024 amounted to USD
23.2m compared to USD 18.8m
in 2023. The EBIT margin before
special items was 12.8% compared
to 10.5% in 2023. Proforma EBIT
before special items amounted to
USD 22.5m and Proforma EBIT
margin reached 12.4%.
Special items
Special items amounted to USD
-3.3m compared to USD -6.0m in
2023 and mainly related to one-off
costs from aircraft retrots and
teardowns of aircraft components
in Programs as well as other one-off
items.
Net nancials
Net nancials for 2024 amounted to
USD -4.6m compared to USD -8.4m
in 2023. The lower nancing costs
were driven by lower interest rates
as well as lower net interest bearing
debt (NIBD) throughout 2024 but
was also favorably impacted by
exchange rate development between
the US dollar versus the Euro and
Danish kroner. Average net draw in
the year decreased by USD 3.7m
compared to 2023.
Prot before tax amounted to USD
15.3m compared to USD 4.5m in
2023.
Ta x
Tax on the prot for 2024 was an
expense of USD 5.7m and was
mainly impacted by tax adjustments
in non-DK jurisdictions from prior
years. The effective tax rate equaled
37.0%.
Net prot for the year amounted to
USD 9.7m compared to USD 2.0m
in 2023.
Assets
On 31 December 2024, TP
Aerospace’s total assets amounted
to USD 228.7m, which was an
increase of USD 5.3m from USD
223.4m in 2023. This was driven by
an increase of USD 2.9m in aircraft
components related to the stock-up
of inventories in the Components
and Distribution divisions. By the
end of 2024, aircraft components
amounted to USD 131.8m, of
which USD 61.0m was classied
as property, plant and equipment
under non-current assets (aircraft
components assigned to Programs
activities) and USD 70.8m as
inventory (accounting treatment
is further explained in the section
“Consolidated Financial Statements”
under notes).
continued
FINANCIAL
REVIEW
Proforma EBITDA before special items
80
60
40
20
0
50
40
30
20
10
0
(%)USDm
2020
23
34
64
2021 2022 2023
EBITDA before special items margin
EBITDA before special items
57
2024
74
Proforma EBITA before special items
25
20
15
10
5
0
14
12
10
8
6
4
2
0
(%)USDm
2020
3
10
20
2021 2022 2023
EBITA before special items margin
EBITA before special items
19
2024
23
Proforma EBIT before special items
25
20
15
10
5
0
14
12
10
8
6
4
2
0
(%)USDm
2020
2
23
2021 2022 2023
EBIT before special items margin
EBIT before special items
18
9
2024
19
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
16
FINANCIAL
REVIEW
Net working capital
Net working capital ended at USD
73.1m compared to USD 69.6m
in 2023. The increase was mainly
driven by lower trade payables,
reecting a change in Days
Payable Outstanding (DPO) while
aircraft components classied
as inventory remained almost
at 2023 level, reecting a lightly
improved inventory turn. The
aircraft components owned by TP
Aerospace are all deemed current
based on the composition of parts
and the aircraft platforms for which
they are used.
Equity
Total equity amounted to USD
115.0m as of 31 December 2024
compared to USD 105.4m by the
end of 2023, equal to a change of
USD 9.6m deriving from the 2024
result.
Net interest-bearing debt
As of 31 December 2024, the net
interest-bearing debt amounted
to USD 69.0m or 0.9x EBITDA
before special items, compared to
USD 75.6m or 1.2x EBITDA before
special items as of 31 December
2023.
Return on invested capital
(ROIC)
The return on invested capital
excluding goodwill was equal to
52.9%, compared to 45.9% in 2023.
The improvement in ROIC was
driven by a higher EBITDA before
special items without a similar
increase in average invested capital.
Cash ow
Cash ow from operating activities
amounted to USD 15.3m compared
to USD 19.6m in 2023, while free
cash ow amounted to USD 8.9m
compared to USD 6.8m in 2023.
The cash ow generation during
the year was strong and formed the
basis for further asset investments,
continued development of the
recently established site in Brno in
the Czech Republic, and payment
of the interests and installments
on the interest-bearing debt while
still securing an adequate liquidity
position entering into 2025.
Free cash ow before interest
paid totaled USD 14.0m and thus
reected a smaller decline of USD
0.7m from USD 14.7m in 2023.
Outlook
In line with the last couple of years,
2024 showed a continued positive
development in air trafc demand,
aircraft utilization and aircraft eet
in service, and this trend is expected
to continue in 2025. On this basis,
our expectation is an overall increase
in the market and in the activity
level among our existing customers
as well as with new customers
and thereby higher activity level
in especially the Programs and
Distribution divisions. On this basis,
revenue is expected to reach a level
in the range of USD 190-220m.
With the positive development in
demand and revenue combined
with an improving efciency
and scalability in our operations
globally and the expansion of our
global production footprint well
progressing, our expectations
is to reach an earnings margin
before interest, tax, depreciation,
amortization, and special items
(EBITDA margin before special
items) in the range of 37-42%.
The expectations stated above
are based on the assumptions
that global macroeconomic such
as interest rates and exchange
rates uctuations as well as the
geopolitical situation will not
change signicantly and thereby
change the business conditions for
TP Aerospace, that the ination
will stabilize at a level below 4%
throughout 2025, and that the
exchange rates, especially the US
dollar versus the Euro and Danish
kroner, will remain around the end
2024 level throughout 2025.
Our outlook is subject to risks and
uncertainties as various factors,
many of which are beyond TP
Aerospace’s control, may cause the
actual development and nancial
results to differ materially from
expectations.
NIBD/EBITDA before special items
NIBD
NIBD & NIBD/EBITDA
before special items
80
60
40
20
0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
(X)
USDm
77
69
80
76
2020 2021 2022 2024
2023
69
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
18
During 2024, TP Aerospace
continued to execute its business
strategy designed to secure our
competitiveness and market
position. To achieve our long-term
growth targets, our continued
focus remains on assessing and
improving how we create value for
our customers while ensuring that
the growth is sustainable for our
nancials, our organization, and the
society around us.
Market outlook and attractiveness
The aviation industry is forecasting
solid growth over the coming
years. Our core market, currently
estimated at approximately USD 1.9
billion in value, is expected to grow
at a rate of ~5% per annum from
2025 to 2029. This growth will fuel
increased demand across all three
divisions, though TP Aerospace will
mainly be exposed to the end-to-
end wheel and brake MRO services
market.
On top of attractive overall market
growth, we expect that the following
two trends will drive increased
growth in our specic market:
1. Increasing appetite for
outsourcing; A larger part of the
mid- and large-sized airlines in
our core regions are looking to
outsource maintenance and asset
ownership to keep their operations
focused on their core competence.
This trend is driven by the need
for airlines to enhance operational
efciency, reduce costs, and leverage
specialized expertise from third-
party providers.
2. Focus on nancial transparency
and predictability; Our all-inclusive
programs give the airline cost
transparency and predictability
which is not obtainable with other
maintenance setups. This trend is
particularly important as airlines
seek to manage their budgets more
effectively and avoid unexpected
expenses, ensuring smoother
nancial planning and stability.
Strategic priorities
While our overall strategy provides
for a detailed description of how we
will increase our value and where
to focus our efforts, resources, and
investments, it centers around three
strategic priorities, which you can
read more about on the following
pages:
1. Fueling growth from the core
2. Fueling the operational backbone
3. Fueling our people and culture.
MARKET & STRATEGIC
PRIORITIES
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
19
In 2024, we secured modest
revenue growth compared
to the previous years. During
the same period, however,
our bottom line increased
more than 16%. While some
areas of the business grew
according to expectations,
others fell slightly behind.
This was primarily due to
our focus on balancing
liquidity and growth, as well
as delayed signings of new
programs.
Common to all commercial
divisions is that we are in a
stronger position to cater
to growth and drive the
business to its full potential
than we were at the
beginning of the year.
Steady performance across
all three divisions
TP Aerospace ended 2024
with revenue of USD 181.0m.
While two business areas
performed slightly above last
year, one ended below the
2023 levels.
The Programs division ended
the year with 958 aircraft
on contract and a revenue
of USD 95.6m, which was
revenue growth of 4.8% from
2023. The lower growth
compared to previous years
was primarily driven by fewer
new signings in the rst half
of the year. Due to the very
high growth rate of 25% from
2022 to 2023 leading to
capacity constraints, a more
modest growth was expected
within our Programs offering
in 2024. During the second
half of the year, however, we
secured a number of new
contracts, which we will see
the impact of in 2025.
Again this year, we supported
long-term customers in
growing and expanding
their operations. Within our
existing customer base, 17
customers added a total of
53 additional aircraft to their
existing agreements with TP
Aerospace, which was driven
primarily by eet expansions,
but also new platforms added
to our customers’ eets.
The Components division
ended 2024 approximately
9.9% below 2023 at USD
59.0m. While this was on
par with expectations, the
activity in Components was
controlled by our focus on
cash conversion.
Components activity
remained the strongest
within the European market,
which constituted 45% of the
total Components revenue in
2024, while Asia Pacic and
Americas constituted 27%
and 28% respectively. A key
focus area in 2024 was on
strengthening our sourcing
strategies and processes,
which, combined with our
market insight and global
network, will help secure a
continuous inow of USM
going forward. We further
expanded our sales team in
the US to cater to the market
demand.
The Distribution division had
a successful growth year,
ending 2024 with revenue
at USD 20.5m, which was
16% above 2023. Again, this
year, we supported a large
recurring customer base with
68% of the customers being
repeat customers. The strong
base of repeat customers
combined with a continuous
inow of new customers
creates a strong foundation
for further expanding our
Distribution activity.
carriers, low-cost carriers
as well as a mix of well-
established and new start-up
airlines.
A global footprint
A core element of our
value proposition across
all business divisions is our
global footprint and global
network of repair and
warehouse facilities. This
gives us a unique opportunity
to support customers across
the world with short lead
times as well as local support.
This footprint continues to
be unmatched in the industry
and in 2024, our 12 locations
and three business divisions
enabled us to support more
than +640 unique customers
across 100 countries.
Securing the future position
of Distribution
Since the ofcial inauguration
of Distribution in 2020, the
business division has shown
high organic growth in its rst
four years of operation.
In 2024, one of our most
signicant focus areas was
to further develop our
Distribution strategy and
platform to secure our future
position as a preferred
distribution partner for
manufactures of wheel
and brake piece parts and
assemblies.
A key factor of success for
Distribution is our strong
partnerships with OEMs and
the distribution agreements
we enter with them, enabling
us to distribute their
materials to the market.
Again in 2024, we further
expanded our product
portfolio by securing new
OEM agreements across new
platforms. Thus, we continue
to not only create value
for TP Aerospace and our
customers, but also for our
OEM partners.
FUELING GROWTH
FROM THE CORE
countries
100
customers in
landings supported via
Programs in 2024
+740k
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
20
Securing long-term and sustainable
growth requires a consistent focus
on how we deliver value to our
customers. For TP Aerospace, this
means allocating the necessary
resources to strengthen and
sustain the core operations across
our global network, including
processes, infrastructures, systems
and technologies and production
efciency. This is increasingly
important as we continue to
expand our business, adding more
complexity to our operations.
LEAN leads to new records
We continue to invest in
implementing LEAN methodologies,
tools and ways of working across our
operations. This was a journey that
TP Aerospace embarked on in 2023
with the objective of minimizing
waste of labor and material while
maintaining a high-quality output
and increasing productivity.
While it started out as a pilot project,
we have now succeeded in creating
a global community of LEAN
ambassadors throughout all our
sites, which has led to an increasing
performance culture with a shared
focus on identifying inefciencies
and workow improvements.
We have invested substantially
in improvements to our new and
existing repair facilities over the
past couple of years, some of which
were directly related to our LEAN
commitment. Combined, these
optimizations allowed us to achieve
an output of more than 42,000
wheels and brakes* across our ten
repair facilities.
FUELING THE OPERATIONAL
BACKBONE
* Measured in standard units. A standard unit equals the repair of one narrow-body main wheel.
wheels and brakes
+42,000
Output of
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
21
Building and maintaining a
sustainable business starts with
a robust organization with the
right competencies to deliver
on the strategic direction of
TP Aerospace. We continue to
invest in ensuring that we have
the right organizational set-up
and culture to drive the company
forward.
New headquarters in
Copenhagen
In 2024, we transitioned to
our new headquarters in
Copenhagen after 15 years in
our original building where TP
Aerospace launched operations
in 2008. This move was triggered
by the consolidation of our
European warehouse into a
state-of-the-art facility in the
Czech Republic, thus ending
our warehouse operations in
Copenhagen.
Our new headquarters provides
a more modern, attractive,
and t-for-purpose ofce
environment. This upgrade
reects our commitment
to fostering innovation and
enhancing our operational
efciency of the approximately
70 employees located in
Denmark.
We look forward to welcoming
more customers and business
partners to our new ofce in
2025.
Driving operational efciency
through people
A key focus for TP Aerospace
in 2024 was on increasing our
operational efciency to ensure
scalability to cater to future
growth.
With approximately 80% of our
employees working within an
operational eld, most of our
employees were involved in
driving process improvements
and optimizations during the
year.
From an organizational
perspective, that meant
increased harmonization
and alignment of our global
organization. This included
extensive work on process
alignments across our purchasing
and procurement operations.
Harmonization was further
driven by the expansion of our
team of LEAN practitioners,
who combined constitute
a strong global efciency
community.
Throughout the year, we
reafrmed our ability to attract
new talent and competencies
to our organization. This is,
amongst other things, evident
in the bolstering of our sales
and operations planning team,
where we have welcomed
additional colleagues this year
with specialized competencies
to ensure efcient support to
the global organization across all
three business areas.
We also welcomed new
colleagues in leadership roles
across some of our main regions.
With a strong and experienced
regional leadership presence,
we are in a good position to
further develop our regions while
also ensuring cross-regional
collaboration.
Expanding our commercial
capabilities
In 2024, we made signicant
strides in strengthening our
commercial organization. We
welcomed new and experienced
talents to bolster specic
business areas, ensuring a robust
foundation for future growth.
Our sales organization in the
Americas expanded, enabling
comprehensive coverage of
the US market and enhancing
our market penetration
and customer engagement.
Additionally, we integrated
our sales and business
development teams more
closely, leveraging our market
presence and connections to
maximize opportunities. We
also centralized our Program
Management department under
dedicated leadership to foster
stronger synergies across the
regions and ensure a high quality
and consistent service to our
Programs customers across the
world.
These strategic initiatives were
driven by our commitment to
building a resilient and dynamic
commercial structure, geared to
meet evolving market demands
and deliver sustained success.
They are further designed to
ensure an increasingly cohesive
culture and efcient organization
in the years to come.
FUELING OUR PEOPLE & CULTURE
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
23
Aviation is a key enabler of social, economic,
and cultural development. Being the only
mode of rapid transportation across the
world, our industry is at the center of global
connectivity. But air travel has its impacts,
and our sustainability efforts are focused on
ensuring that we assess, understand, and take
responsibility for our share of those impacts.
While our operations pose a risk to the
environment, environmental concerns are also
increasingly posing a risk to our business. With
growing climate changes, it is necessary that the
industry transitions towards more efcient and
sustainable solutions; to mitigate these risks, we
have made sustainability a part of our day-to-
day business and we take into account having a
responsible growth strategy.
Our sustainability framework focuses on areas
within Environment & Climate, People, and
Governance & Ethics. Within each area, we have
analyzed how our efforts and business model
contribute to the Sustainable Development
Goals (SDGs). Though we contribute to many
SDGs, we have identied ve priority areas that
are relevant to our strategy and business model,
and where we have the potential for the most
positive contribution.
UN Global Compact
Since 2017, we have participated in the UN
Global Compact, the world’s largest voluntary
initiative for responsible business conduct.
Through this participation we committed to
aligning our business strategy and operations
with the ten universally accepted principles
within human rights, including labor rights,
environment, and anti-corruption. Our overall
approach to sustainability continues to be built
on and aligned with the ten principles of the UN
Global Compact.
SUSTAINABILITY
continued
23
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
24
GOVERNANCE & ETHICS
Commitments
Provide full carbon transparency on scope 1
and 2 emissions.
Reduce carbon footprint (scope 1 and 2
emissions).
Measure and take action to reduce scope 3
emissions.
Focus areas
Commitment to sustainable growth, diversity as a quality and
to providing good and safe working conditions for employees
around the world.
Safe and healthy working conditions are a fundamental priority
at TP Aerospace, and our policy is to make safety everyone’s
business. Our employees must always feel safe without
worrying about any negative impact on their physical or mental
health as a result of their work.
TP Aerospace recognizes the value and strength of diversity
and is focusing on inclusivity and equality.
Commitments
Provide equal opportunities for all employees and
candidates.
Securing a safe and injury-free work environment.
Safeguard the human rights of the people within
our sphere of inuence.
1
1
2
2
3
3
SUSTAINABILITY
Focus areas
To take leadership in ethical business conduct and always
uphold a zero tolerance policy towards corruption in our
industry.
High business ethics are at the core of who we are, and we want
to supply high-quality products to a market characterized by
fair competition.
TP Aerospace has zero tolerance towards bribery and
corruption in any form.
Commitments
Always conduct business with integrity.
Always provide employees with adequate training
and knowledge to avoid involvement in illegal
practices.
Provide an open, effective and anonymous
whistleblower scheme.
1
2
3
PEOPLE
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
25
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
26
TP Aerospace is committed to
always being a safe and inclusive
place to work. It is our policy
to build and maintain a work
environment characterized by
respect and empowerment and to
be a place where growth is driven
by the individual’s professional
development and engagement.
At the end of 2024, we had 384
employees across our global
organization.
Human rights in business
Employee rights are human rights,
and our efforts and policies are all
aligned with the requirements of the
UN Guiding Principles on Business
and Human Rights. These guidelines
provide us with a framework
for understanding human rights
in a business context and for
continuously identifying, assessing,
and mitigating potential risks.
It is our policy to always have
procedures and mechanisms in
place to ensure that we do not
negatively impact the people within
our sphere of inuence, and we
continuously assess human rights
risks of the countries in which
we operate. Our human rights
framework is further described and
explained in our Employee Code of
Conduct.
In 2024, our human rights
assessments did not nd any severe
human rights impacts. The primary
risks related to Human Rights
within TP Aerospace revolve around
diversity and occupational health
and safety. Going forward, we will
continue to conduct assessments to
ensure that we adapt to a potential
shift in the risk picture.
Diversity and inclusion
At TP Aerospace, we consider
diversity a quality, and we strive to
always promote diversity and foster
an inclusive work environment, and
we consider gender biases to be
one of the key risks in guaranteeing
equal opportunities for all.
Diversity is especially important
at management levels where most
business-critical decisions are made.
To address and mitigate the risk, we
are proactively working towards
an equal gender composition at all
management levels, and our target is
that the under-represented gender
amounts to at least 40% of all
management levels by end of 2030.
In 2024, there were no changes
to the Board of Directors (top
management), and the share of
women remained unchanged at 14%
(one out of seven).
Other management levels are
dened as Executive Management
and the management layer reporting
to Executive Management. At
Executive Management level, there
were no changes during the year,
and at year end, 25% were women
(one out of four).
At the management level below
Executive Management, there were
some changes during the year, and
at year-end, 35% were women (six
out of 14). Thereby the total share
of women at other management
levels ended at 33%, which is slightly
below last year.
Going forward, our focus remains on
ensuring that the underrepresented
gender is always represented in a
recruiting process. However,
TP Aerospace remains committed
to always promoting and hiring the
individuals best qualied for a role,
irrespective of gender.
Health & Safety
Health and safety remain top
management priorities, and it is
our policy to always provide a safe
working environment for all. The
biggest risks lie within our repair
and warehouse environments where
our employees work with heavy
components and machinery on a
daily basis.
We conducted regular health and
safety assessments at our facilities
to identify potential hazards and
risks within our work environment.
All ndings were documented and
tracked to closure.
We adhere to the principle that
no injury is acceptable, and thus
always aim for an incident free work
environment. There were no serious
injuries at any of our facilities in
2024.
2024
Top management
Total number of members 7
Underrepresented gender % 14%
Target % 40%
Year for meeng target 2030
Other management levels
Total number of members 21
Underrepresented gender % 33%
Target % 40%
Year for meeng target 2030
PEOPLE
UNDERREPRESENTED
GENDER IN
MANAGEMENT
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
27
We are committed to supplying
high-quality products to a market
characterized by fair competition.
At any point in time, it is our policy
to promote high business ethics and
to conduct business in an honest,
transparent, and fair manner.
Corporate governance
For TP Aerospace, strong
governance is the foundation for
fostering a culture of transparency,
ethical behavior and accountability
towards our stakeholders.
Our principles for good governance
are based on our Articles of
Association and governed by
our Board of Directors and our
Executive Management team. We
align our corporate governance
efforts with the “Recommendations
on Corporate Governance” issued
by the Danish Committee on
Corporate Governance. This is
achieved by maintaining an ongoing
dialog with our owners and other
stakeholders, reporting results
monthly, and facilitating an ongoing
strategic development process that
creates value for our stakeholders.
We are further subject to the
guidelines issued by the Danish
private equity association Active
Owners Denmark, of which our
owners, CataCap is a member.
Anti-bribery and corruption
TP Aerospace has a zero-tolerance
policy towards corruption and
bribery in any form. Our policy
is built on the United Nations
Convention against Corruption and
various national laws, including the
UK Bribery Act, and is designed
to secure the highest level of
compliance across our global
operations.
As a result of the highly global and
dynamic nature of our industry,
exposure to corruption is a risk
to our business. To mitigate this,
all employees are subject to our
Employee Code of Conduct,
through which we guide employees
regarding our principles and on
how to avoid involvement in any
unethical and illegal practices.
Through our Anti-bribery &
Corruption Policy, Whistleblower
Policy and Employee Code
of Conduct, we set forth our
commitments, responsibilities and
ethical obligations as a company and
provide guidance to our employees
and anyone else acting on behalf of
TP Aerospace. These further cover
topics such as gifts and hospitality
and the duty to report any concerns
or suspected policy breaches.
To mitigate the potential risk of
non-compliance, we have various
procedures and control mechanisms
in place.
In 2024, we continued our efforts to
widen our employees’ awareness of
bribery and corruption challenges
as well as of relevant legislation.
This included continuous awareness
campaigns of relevant policies and
guidelines as well as mandatory
recurring anti-corruption and
bribery training. We further
developed a Supplier Code of
Conduct, as a measure to ensure
compliance with ethical, legal, and
sustainable practices throughout
our supply chain. At the end of the
year, we had just started the roll-out
of the Supplier Code of Conduct,
and the work continues in 2025.
In 2024, no cases were reported
through the condential and
anonymous whistleblower portal.
We continue to create awareness
of anti-bribery and corruption risks
and to promote and encourage the
proper use of our Whistleblower
scheme.
GOVERNANCE & ETHICS
“
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
28
OTHER SUSTAINABILITY
INFORMATION
Topic
Page
Reference
Section 99A
Business model pp. 3
Policies, actions, risks, KPIs and performance
• Environmental and climate matters
• Social matters
• Respect for human rights incl. labor rights
• Anti-corruption and bribery
pp. 25
pp. 26
pp. 26
pp. 27
Section 99B
Target for the underrepresented gender on the highest management body pp. 26
Section 99D
Data Ethics pp. 27
NON-FINANCIAL DISCLOSURE REQUIREMENTS
AS PER THE DANISH FINANCIAL STATEMENTS ACT
Accounting Principles - Energy
Consumption and GHG reporting
Our own energy consumption comes from our
use of natural gas, gasoline, diesel, electricity
and district heating. Reported consumptions
are based on meter readings and invoices.
Calculation of energy contents are based on
the latest published DEFRA statistics.
Scope 1 and 2 emission conversion factors: A.
Electricity: We use site-specic or actual local
CO2 conversion factors where available, and
if not available, the latest published country
specic factors from the International Energy
Agency. B. Liquid and gaseous fuels: We use
the latest published GHG conversion factors
from DEFRA. C. District heating: We use
site-specic or actual local CO2 conversion
factors where available, and if not available, we
estimate emissions based on emission levels in
the specic country.
Emissions are calculated and reported in
accordance with the Greenhouse Gas (GHG)
Protocol.
All companies within the TP Aerospace Group
are included in the reporting scope. Due to
ongoing development of our data collection
processes, comparison gures from previous
years may include minor adjustments since rst
reported.
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
30
Risk management is fully integrated into the
strategic and operational acytivities in TP
Aerospace, and with procedures in place, we
have a systematic approach to efcient risk
management, allowing us to identify risk early
and proactively work to prevent an increase
in exposure. With our risk management
structure, we ensure proper and efcient
identication, assessment, and mitigation of
risks to reduce the likelihood of unforeseen
events causing harm to TP Aerospace, our
people, our customers, our business model, or
our strategy.
Risk is continuously identied and monitored
by the Executive Management. Identied risks
are assessed based on their potential impact
on our business and the likelihood of the risk
materializing. The most signicant risks are
reported to the Board of Directors. The key
risk areas related to TP Aerospace’s business
are presented in the matrix and described
further on the following pages.
RISK MANAGEMENT
1
1
2
3
4
5
2 3 4 5
G
C
H
I
D
B
P
Q
L
J
K
F
A
R
M
O
N
E
Potential Impact to TP Aerospace
Likelihood of Risk Occuring
Risk Matrix
Commercial
A Component availability
B Market
C Oil prices
IT
D Cybersecurity
Financial
E Liquidity
F Credit
G Currency
H Ination
Sustainability
I Environmental
J Anti-corruption
People
K Qualied employees
L Occupational Health & Safety
Operating
M MRO Capacity
N Supply Chain
O Safety
P Asset Security
Q Quality
R Geopolitics
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
31
continued
Risk
A Component availability
B Market
C Oil prices
D Cybersecurity
E Liquidity
F Credit
Description of risk
Lack of available piece parts, tires and wheels and
brakes in the market.
Risk related to market and competitive trends.
High oil prices have an impact on airlines’ operating
costs and protability.
Disruptions to our IT systems, especially cyber-
attacks, pose a risk to our business and our industry
in general.
The risk of not being able to meet our future cash
ow needs.
The risk of incurring a nancial loss if a customer
or counterparty fails to fulll their contractual
obligations.
Risk control measures
Our strong market position and strengthened sourcing processes enable us to cooperate closely with
key stakeholders in the industry to ensure a sufcient inux of aircraft piece parts & components and
maintain a considerable inventory level at any time.
Diversication is core to our strategy and to mitigating our portfolio and market risk. We have a high
level of geographical diversity while we also secure product diversity through our various offerings and
a contract portfolio spanning widely across passenger and cargo aircraft. We monitor competition and
constantly develop our market offerings to meet market needs and changes to secure our competitive
edge over the competition.
The potential impact for TP Aerospace is considered low due to limited correlation between oil prices
and demand for repair services.
Continuous improvements of procedures pertaining to cybersecurity, i.e., through cybersecurity
awareness training, cyber vulnerability assessments, security testing, and disaster recovery plans. To
mitigate the potential impacts of a cyber-attack, we have disaster recovery procedures in place which
are tested on a recurring basis.
We continuously assess and monitor capital resources and liquidity to meet our existing and future
obligations, including securing required loan and credit facilities, when necessary. Also, we work in a
structured way with cash management to ensure timely collection of receivables from customers and
timely settlement of our obligations to vendors. If any additional liquidity is needed, our owners hold a
strong nancial position.
Our diverse and fragmented customer portfolio together with our credit and collection policies,
including continuous risk assessments, allow us to take the necessary precautions to mitigate this risk.
KEY RISK
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
32
KEY RISK
continued
Risk
G Currency
H Inaon
I Environmental
Risk
J An-corrupon
K Qualied employees
L Occupaonal
Health & Safety
Description of risk
TP Aerospace’s functional currency is USD, and
currency risk from operations is mainly towards
DKK and EUR.
The effect of ination and the increased pressure on
the cost of materials, products, and resources.
With the increasing focus on climate change from
society and authorities, the industry in general is
increasing its requirements for companies to take
action to reduce their carbon footprint and ensure
carbon transparency.
The risk of being involved in or associated with illegal
or unethical acts within our company or value chain,
potentially leading to criminal action against TP
Aerospace or reputational damage.
Risk related to a potential shortage of qualied
employees.
The safety of our employees is our highest priority as
incidents could have serious consequences for our
staff, operations, and TP Aerospace’s reputation. The
biggest safety risk is in our repair shops.
Risk control measures
The typical exposure towards currencies other than USD is not deemed signicant. Contracts with our
customers and key suppliers are usually denominated in USD.
We continuously review and reect our cost base, including ination impact, in our pricing while at the
same time focusing on optimizing our operations to remain competitive.
We work in a structured way with environmental concerns throughout TP Aerospace, and since 2021
we have reported our carbon footprint in accordance with the Greenhouse Gas Protocol, aiming to
create carbon transparency and working actively to reduce our climate footprint. This is also anchored
in our commitment to SBTi.
Through our Anti-Bribery and Corruption Policy, we dene the minimum standards of conduct that
all employees must abide by. Our focus is on creating awareness about our zero-tolerance policy and
training our employees to identify illegal or unethical situations and report potential concerns.
Through various initiatives, we continuously work to raise the skill level of our workforce and
strengthen our employer brand to attract the right talent. The risk is continuously assessed by Executive
Management to ensure that appropriate mitigation efforts are put in place in due time.
Through our safety management system, we manage safety risks in the workplace by conducting regular
risk assessments of the different workstations, implementing new policies and procedures, and by
increasing employees’ awareness of safety risks and appropriate safety behavior.
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
33
KEY RISK
Risk
M Repair capacity
N Supply chain
O Safety
P Asset security
Q Quality
Quality
R Geopolics
Description of risk
The risk of our repair capacity not meeting market
demands or our sales expectations
Disruptions and imbalances in the global supply
chains may lead to material shortages and an
increasing pressure on costs.
Hull losses as well as liability for passenger injuries,
environmental and third-party damage caused by
aircraft accidents related to TP Aerospace.
Damage to our stock could potentially have a critical
nancial impact on our business.
Failing to obtain or maintain the necessary approvals
to stay in operation and/or defects in product quality
Risk of signicant geopolitical escalations resulting in
increased sanctions and trade barriers.
Risk control measures
Over the past two years, we have established two new repair facilities in Australia and Central Europe
as a response to the growing demand. Hence, TP Aerospace now has sufcient capacity across all main
regions to absorb further activity.
We work closely with our suppliers to ensure that we monitor changes in lead times and set our
replenishment levels accordingly. In 2024, signicant investments have been made in further
strengthening of our forecast and planning procedures.
Also, we manage this risk by maintaining a stock of the most relevant part numbers in Distribution to
support customers as well as our own repair activities.
We live up to the highest quality and safety standards of some of the world’s most recognized aviation
authorities, including the FAA and EASA. In 2024, we invested further in safety management system
governed under our EASA approvals.
In case of an incident, our aviation liability insurance provides coverage for nancial damages.
We maintain an appropriate stock level at various facilities worldwide, thereby mitigating the potential
risk of asset damage on our delivery performance. Our assets are generally secured through insurance
taken out with well-established insurance companies.
Policies, procedures, and systems are in place to ensure that our operations and products live up to the
highest quality standards and to continuously assess and improve our quality procedures.
We conduct regular internal and authority audits and report all ndings, as well as any corrective and
preventive measures.
We continuously assess our commercial and operational footprint in light of the geopolitical risks across
the world.
Further, we maintain an agile business model enabling us to react quickly to changing circumstances.
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
35
BOARD OF DIRECTORS
continued
Flemming Jensen
Chairman
Born 1959, Appointed by CataCap
Member since 2017
Peter Lyager
Member & Co-founder
Born 1971, Appointed by Peter Lyager and
Thomas Ibsø through their respective holding
companies
Member since 2022
Flemming holds the position of CEO of
DSB, the Danish Railways, but brings
almost 30 years’ experience from
aviation. He is a trained pilot from the
Royal Danish Air Force and spent almost
10 years as a ghter pilot. He entered
the commercial aviation industry in the
‘80s, rst with Sterling Airways and
later SAS as Captain and Chief Pilot,
respectively. Before joining DSB in
2015, Flemming held the position of
COO of SAS for several years.
Peter is a partner in the Danish private
equity fund CataCap and has a strong
operational background. He holds an
Executive MBA from the Craneld
School of Management. Peter has been
engaged in aviation since 2001 when
he became CFO of FLS Aerospace/
SR Technics UK. Since then, he has
continued to be engaged in the industry
alongside a career as CFO and CEO in
various businesses before co-founding
CataCap in 2012.
Peter held the position of CEO of TP
Aerospace from the company’s start in
2008 until 2021. After completing his
military service with the Royal Danish
Navy, Peter acquired a B.Sc. in Economics
and Business Administration from
Copenhagen Business School and has
since then gathered more than 25 years
of experience from the aviation industry.
Peter stepped down as CEO at the end
of 2021, transitioning to a non-executive
position on the Board of Directors in
March 2022.
Peter Ryttergaard
Deputy Chairman
Born 1970, Appointed by CataCap
Member since 2017
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
36
BOARD OF DIRECTORS
Andrew Hoad
Member
Born 1963, Appointed by CataCap
Member since 2017
Vilhelm Hahn-Petersen
Member
Born 1960, Appointed by CataCap
Member since 2017
Mike Humphreys
Member
Born 1964, Appointed by CataCap
Member since 2018
Nina Fisker Olesen
Member
Born 1991, Appointed by Kirk Kapital
Member Since 2019
Andrew is an aviation veteran, having
been in the industry for more than
half his life. He is particularly strong
within the technical aspects of aviation
and holds a degree in Mechanical
Engineering. Throughout his more than
30 years in the industry, Andrew has
held various positions. Most recently,
he comes from 14 years as Senior Vice
President, Engineering, at Emirates
in Dubai. Andrew is also currently
Chairman of MAAS Aviation and Non-
Executive Director of Aern Ltd.
Vilhelm is a partner in the Danish
private equity fund CataCap and he is
experienced in strategic and operational
management from both Danish and
international business environments.
He holds a master’s degree in Political
Science from Aarhus University and
has several years’ experience from the
aviation industry, rst as CEO of FLS
Aerospace and later as COO of easyJet.
Since obtaining a BSc. in Aeronautics
and Astronautics from the University
of Southampton, Mike has held a
number of senior executive positions
with aircraft maintenance providers
including CEO of FLS Aerospace, EVP of
Component Services at SR Technics and,
most recently, President of Airinmar.
Through more than 30 years’ experience
in the commercial aviation aftermarket,
Mike has obtained strong skills in
strategy and business development.
Nina is Investment Director in the
Danish family-owned investment
company Kirk Kapital. Nina serves
on the Board of Cookie Information,
Ellepot, Globeteam, Mobilhouse,
and TPS Rental Systems. She holds
a master’s degree in Business
Administration, Finance and Accounting
from Copenhagen Business School, and
worked in Nordea Corporate Finance
before joining Kirk Kapital in 2017.
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
37
EXECUTIVE
MANAGEMENT
Nikolaj Lei Jacobsen Born 1983
Nikolaj joined TP Aerospace as CFO in
2018, before transitioning to COO in
2020. In January 2022, he took on the role
of CEO after Peter Lyager.
Nikolaj holds an MSc in Business
Administration from Aarhus University
and is an experienced leader from
various positions in large international
corporations. Nikolaj’s specialties revolve
around corporate strategy and nance.
Tinneke Torpe Born 1976
Tinneke joined TP Aerospace as CFO in
October 2021. Tinneke holds an MSc in
Business Economics and Auditing from
Copenhagen Business School and has
more than 20 years’ experience from
various senior nance positions, both in
Denmark and abroad. Besides her extensive
background within nancial reporting,
controlling, operational nance, risk
management and governance, Tinneke has
vast experience with process optimization
through technology.
Felix Ammann Born 1963
Felix Ammann joined TP Aerospace in
January 2023. Felix has over 30 years
of extensive aviation experience, most
recently from a position as CEO of
RUAG MRO International. Before this,
he spent 27 years in various positions in
SR Technics Switzerland, most recently
as EVP Global Component Services.
He has a strong track record of leading
large operations focusing on all areas
relating to the provision of a high-quality
service to customers.
Nicolai Hertz Born 1967
Nicolai Hertz joined TP Aerospace in
October 2023. He brings almost 30
years of experience from the aviation
industry from both Satair, VAS Aero
Services, ST Aerospace and SAS
Component Group. Prior to joining
TP Aerospace, he was with Satair for
15 years, most recently in the role of
Head of Used Service Material & Senior
Vice President Business Development
/ Strategy. He brings extensive
commercial experience and knowledge
from the MRO aftermarket.
CEO
COO
CFO
CCO
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
39
TABLE OF
CONTENTS
CONSOLIDATED FINANCIAL STATEMENTS
Key gures................................................................................................................................................................................................................................ 40
Prot and loss ......................................................................................................................................................................................................................... 41
Statement of comprehensive income .........................................................................................................................................................................41
Balance sheet ..........................................................................................................................................................................................................................42
Statement of changes in equity ......................................................................................................................................................................................43
Cashow statement ............................................................................................................................................................................................................44
Notes ........................................................................ ................................................................................................................................................................ 45
PARENT COMPANY FINANCIAL STATEMENTS
Prot and loss ......................................................................................................................................................................................................................... 76
Statement of comprehensive income .........................................................................................................................................................................76
Balance sheet .......................................................................................................................................................................................................................... 77
Statement of changes in equity ......................................................................................................................................................................................78
Cashow statement ............................................................................................................................................................................................................ 79
Notes ........................................................................ ................................................................................................................................................................ 80
SIGNATURES
Statement by the Board of Directors and Executive Management ............................................................................................................. 87
Independent Auditors’ Report .......................................................................................................................................................................................88
40
KEY FIGURES
2024
USD’000
2023
USD’000
2022
USD’000
2021
USD’000
2020
USD’000
Financial highlights
Prot and loss accounts
Revenue 181,031 179,661 147,044 88,815 67,665
Gross prot 114,513 101,854 85,077 53,144 40,430
EBIT (Operating prot) before special items 23,176 18,803 21,507 6,544 414
EBIT (Operating prot) after special items 19,919 12,848 19,385 4,524 -6,436
Net nancials -4,571 -8,368 -5,134 -2,523 -7,469
Prot for the period 9,663 2,021 11,695 1,504 -11,370
Balance sheet
Non-current assets 128,237 126,324 117,289 107,215 116,048
Additions to tangible assets 53,953 55,069 51,280 27,351 30,214
Total assets 228,742 223,420 228,128 189,872 198,079
Total equity 114,988 105,423 103,339 91,861 90,163
Cash ow
Net cash ow from operating activities 15,328 19,569 4,751 14,543 -2,677
Net cash ow from investing activities -6,455 -12,774 -14,374 -6,181 -9,466
Cash ow from nancing activities -8,077 -7,269 10,642 -7,711 11,523
FTEs (full me equivalents)
Average number of FTEs 379 375 281 234 260
Financial raos
Gross margin (%) 63.3% 56.7% 57.9% 59.8% 59.8%
EBIT before special items 12.8% 10.5% 14.6% 7.4% 0.6%
EBIT after special items 11.0% 7.2% 13.2% 5.1% -9.5%
Return on equity (%) 8.8% 1.9% 12.0% 1.7% -12.6%
Equity ratio (%) 50.3% 47.2% 45.3% 48.4% 45.5%
For a denition of nancial ratios and special items a reference is made to note 1 - Accounting policies.
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
41
CONSOLIDATED STATEMENT
OF COMPREHENSIVE INCOME
1 JANUARY - 31 DECEMBER
Notes 2024
USD’000
2023
USD’000
Prot for the period 9,663 2,021
Other comprehensive income
Exchange differences on translation of subsidiaries (net) -98 63
Cash ow hedge 23 0 0
Tax on other comprehensive income 0 0
Other comprehensive income for the period, net of tax -98 63
Total comprehensive income for the period 9,565 2,084
CONSOLIDATED STATEMENT
OF PROFIT AND LOSS
1 JANUARY - 31 DECEMBER
Notes 2024
USD’000
2023
USD’000
Revenue 3 181,031 179,661
Cost of sales -66,518 -77,807
Gross prot 114,513 101,854
Other income 4 639 -27
Other external expenses -11,619 -10,857
Staff costs 5 -29,433 -27,238
Depreciation, amortisation and impairment losses 6 -50,924 -44,929
Operang prot before special items 23,176 18,803
Special items 8 -3,257 -5,955
Operang prot aer special items 19,919 12,848
Financial income 9 4,862 2,589
Financial expenses 10 -9,433 -10,957
Prot before tax 15,348 4,480
Tax for the period 11 -5,685 -2,459
Prot for the period 9,663 2,021
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
42
CONSOLIDATED BALANCE
SHEET 31 DECEMBER
CONSOLIDATED BALANCE
SHEET 31 DECEMBER
Notes 2024
USD'000
2023
USD'000
Intangible assets 12 49,498 50,396
Property, plant and equipment 13, 14 77,194 74,507
Deferred tax asset 15 1,545 1,421
Total non-current assets 128,237 126,324
Inventories 16 70,770 69,347
Trade receivables 17 22,846 20,790
Other receivables 2,652 2,794
Prepayments 474 1,198
Cash 3,763 2,967
Total current assets 100,505 97,096
Total assets 228,742 223,420
Note 2024
USD'000
2023
USD'000
Share capital 18 651 651
Share premium 64,441 64,441
Reserve for exchange rate translation -398 -300
Retained earnings 50,294 40,631
Total equity 114,988 105,423
Borrowings 19 69,307 75,024
Lease liabilities 14, 19 5,207 6,861
Provisions 20 2,871 2,756
Total non-current liabilies 77,385 84,641
Borrowings 19 3,483 3,559
Lease liabilities 14, 19 3,719 2,548
Trade payables 12,439 15,989
Tax payables 5,478 2,157
Intergroup borrowings 397 529
Other payables 8,544 7,739
Prepayments from customers 2,309 835
Total current liabilies 36,369 33,356
Total liabilies 113,754 117,997
Total equity and liabilies 228,742 223,420
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
43
CONSOLIDATED STATEMENT
OF CHANGES IN EQUITY
Share capital
USD’000
Share premium
USD’000
Reserve for exchange
rate translation
USD’000
Reserve for cash
ow hedges
USD’000
Retained earnings
USD’000
Total
USD’000
Equity at 31.December 2022 651 64,441 -363 0 38,610 103,339
Prot for the period 01.01.2023 - 31.12.2023 0 0 0 0 2,021 2,021
Cash ow hedges 0 0 0 0 0 0
Exchange rate differences 0 0 63 0 0 63
Total comprehensive income for the period 0 0 63 0 2,021 2,084
Equity at 31 December 2023 651 64,441 -300 0 40,631 105,423
Prot for the period 01.01.2024 - 31.12.2024 0 0 0 0 9,663 9,663
Cash ow hedges 0 0 0 0 0 0
Exchange rate differences 0 0 -98 0 0 -98
Total comprehensive income for the period 0 0 -98 0 9,663 9,565
Equity at 31 December 2024 651 64,441 -398 0 50,294 114,988
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
44
CONSOLIDATED CASH FLOW STATEMENT
1 JANUARY - 31 DECEMBER
Notes 2024
USD’000
2023
USD’000
Operating prot after special items
Depreciation and amortization 28 6,709 5,364
Change in net working capital 26 -3,689 11,340
Cash ow from primary operating activities 22,939 29,552
Interest, net -5,123 -7,937
Tax paid -2,488 -2,046
Cash ow from operang acvies 15,328 19,569
Purchase of property, plant and equipment -6,485 -12,646
Purchase of intangible assets 0 -34
Other non-cash changes 30 -94
Cash ow used for invesng acvies -6,455 -12,774
Proceeds from borrowings 27 0 0
Repayments of borrowings 27 -5,241 -4,954
Intergroup borrowings, net -132 81
Repayments of lease liabilities -2,704 -2,396
Cash ow from nancing acvies -8,077 -7,269
Net cash ow for the year 796 -474
Cash and cash equivalents, beginning of the year 2,967 3,441
Cash and cash equivalents at end of the year 3,763 2,967
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
45
NOTES
Notes
1. Accounting policies
2. Critical accounting estimates and judgements
3. Revenue
4. Other income
5. Staff costs
6. Amortisation, depreciation and impairment losses
7. Audit fees
8. Special items
9. Financial income
10. Financial expenses
11. Tax on prot for the year
12. Intangible assets
13. Property, plant and equipment
14. Leases
15. Deferred tax
Notes
16. Inventories
17. Trade receivables
18. Share capital
19. Borrowings
20. Provisions
21. Related parties
22. Commitments and contingent liabilities
23. Financial risk management
24. Financial assets and liabilities
25. Events after the balance sheet date
26. Changes in net working capital
27. Changes in liabilities arising from nancing activities
28. Depreciations and amortization
29. Exemption from audit of foreign subsidiaries
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
46
1. ACCOUNTING
POLICIES
The consolidated nancial statements include
the parent company TPA Holding I A/S and
subsidiaries in which TPA Holding I A/S directly
or indirectly holds more than 50% of the voting
rights or otherwise has a controlling interest.
The Consolidated nancial statements for
TPA Holding I A/S have been prepared in
accordance with IFRS Accounting Standards
as issued by the International Accounting
Standards Board (IASB) and as adopted by the
European Union as well as additional Danish
disclosure requirements applying to entities of
reporting class C (large).
The accounting policies applied remain
unchanged from last year.
General information on recognition
and measurement
The nancial statements have been prepared
under the historical cost method.
Change in accounting estimates
There has been no changes in accounting
estimates in the nancial year 2024.
New standards implemented
in the nancial year
Management has assessed that new or
amended IFRS Accounting Standards and
interpretations issued by the IASB and
endorsed by the EU effective on or after 1
January 2024 has not had a signicant effect
on the Consolidated nancial statements.
Furthermore, new or amended IFRS
Accounting Standards and interpretations
issued by the IASB that have not yet become
effective are generally not adopted until
they become effective and endorsed by the
EU. Management does not anticipate any
signicant impact on the Consolidated nancial
statements in the period of initial application
from the adoption of these new standards and
amendments, apart from IFRS 18 ‘Presentation
and Disclosure in Financial Statements’ which
replaces IAS 1 effective from 1 January 2027.
The new IFRS 18 is expected to change the
presentation of the Income statement and to
differentiate between earnings from operating
activities, investment activities and nancing
activities. IFRS 18 will also add additional
disclosures but will not change any accounting
policies on recognition and measurement,
hence it will not change reported net results.
New standards not yet effective
There are no IFRSs or IFRIC interpretations
that are not yet effective that is expected to
have a material impact on the Company.
Basis of consolidation
Subsidiaries are all entities over which the
Group has control. The Group controls an
entity when the group is exposed to, or has
rights to, variable returns from its involvement
with the entity and has the ability to affect
those returns through its power to direct
the activities of the entity. Subsidiaries are
fully consolidated from the date on which
control is transferred to the Group. They are
deconsolidated from the date that control
ceases.
On consolidation, elimination is made of
intra-group income and costs, shareholdings,
intra-group balances and dividend and realised
and unrealised prots or losses on transactions
between the consolidated companies.
Non-controlling interests in the results and
equity of subsidiaries are shown separately
in the consolidated statement of prot and
loss, statement of comprehensive income,
statement of changes in equity and balance
sheet respectively.
Foreign currency translation
Functional and presentation currency
Items in the nancial statements of each of
the reporting companies of the Group are
measured in the currency of the primary
economic environment in which the company
operates (the functional currency).
The nancial statements are presented in US
Dollars (USD), due to the Group’s international
activities, which is also the parent company’s
functional currency. The nancial statements
have been rounded to the nearest thousand.
Transacons and balances
Foreign currency transactions are translated
into the functional currency using the exchange
rate at the dates of the transactions. Foreign
exchange gains and losses resulting from the
settlement of such transactions and from the
translation of monetary assets and liabilities
denominated in foreign currencies at year
end exchange rates are generally recognised
in the statement of prot and loss. They are
deferred in equity if they relate to qualifying
cash ow hedges and qualifying net investment
hedges or are attributable to part of the net
investment in a foreign operation.
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
47
Foreign exchange gains and losses that relate
to borrowings are presented in the statement
of prot and loss, within nance costs.
Group companies
The results and nancial position of all the
group entities that have a functional currency
different from the presentation currency are
translated into the presentation currency as
follows:
a) Assets and liabilities for each balance sheet
presented are translated at the closing rate at
the date of that balance sheet;
b) Income and expenses for each income
statement are translated at average exchange
rates; and
c) All resulting exchange differences are
recognised in other comprehensive income.
Goodwill and fair value adjustments arising on
the acquisition of a foreign entity are treated
as assets and liabilities of the foreign entity
and translated at the closing rate. Exchange
differences arising are recognised in other
comprehensive income
Business combinations
The acquisition method of accounting is used
to account for all business combinations,
regardless of whether equity instruments or
other assets are acquired. The consideration
transferred for the acquisition of a subsidiary
comprises the:
• fair values of the assets transferred
• liabilities incurred to the former owners of
the acquired business
• equity interests issued by the group.
Identiable assets, liabilities and contingent
liabilities of acquired businesses are measured
initially at fair values at the acquisition date.
Acquisition-related costs are expensed as
incurred.
The excess of the consideration transferred
over the fair value of the net identiable
assets acquired is recorded as goodwill. If
those amounts are less than the fair value
of the net identiable assets of the business
acquired, the difference is recognised directly
in the statement of prot and loss as a bargain
purchase.
Revenue
In the Components division, revenue consists
of sale of repaired or overhauled wheels and
brakes to different types of aircraft. In the
Distribution division, revenue consists of sale
of piece parts and assemblies to different
type of aircraft. In the Programs division, the
Group delivers repaired or overhauled wheels
or brakes to its customers either as a service
(CFR) or as sale of the repaired or overhauled
wheel or brake (LFL). In the Programs division,
the Group exchanges the core units of the
wheel or brake (core asset) with its customers’
core unit, and the sale therefore consists of the
repair or overhaul of the wheel or brake. Other
revenue consists of leasing out wheels and
brakes to airlines and of maintenance, repair
or overhaul of wheels or brakes for customers
(MRO).
Sale of goods in Components, Distribuon,
LFL business and MRO
Sales is recognized at a point in time, when
control of the wheels or brakes has transferred
to the customer, being when they are delivered
to the customer and there is no unfullled
obligation that could affect the customers’
acceptance of the products. Delivery occurs
when the wheels and brakes are handed over
to the customer at the company’s shop or
when the customer takes delivery from an
in-house stock of parts and thereby accepts
the products in accordance with the sales
contract. In the MRO business, revenue is
recognized when the maintenance, repair or
overhaul is nalized, delivered and invoiced to
the customer.
Distribution revenue consists of sale of factory
new piece parts and assemblies on behalf of
the OEMs, and revenue is recognized when the
piece parts and assemblies are delivered and
invoiced to the customer.
There is no volume discounts or other variable
payments in these contracts and no element
of nancing. Revenue is therefore recognized
with the amount specied in the contract.
Sale of services in the CFR business
The CFR business provides services in the form
of repair and overhaul of wheels and brakes.
Revenue is recognized in the period in which
the services are rendered. In the CFR business,
the service is delivered over the period where
the customer uses the wheels and brakes on its
aircraft. Revenue is recognized based on the
amount of cycles (landings) that the customers
have incurred with the wheels and brakes in
the given period.
Any increases or decreases in estimated cycles
and associated costs are reected in the
statement of prot and loss in the period in
which the circumstances that give rise to the
revision become known by management.
The Group fulls its performance obligations
upon delivery at one point in time or over a
short period of time. The payment terms follow
the industry standards and are individually
negotiated. No contracts have a signicant
nancing element and no contracts comprise
variable consideration elements. The Group
has no obligations for returns and refunds.
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
48
Cost of sales of goods
Costs of sales for the nancial year are
measured at cost, adjusted for ordinary
inventory write-downs. Costs of sales include
amounts for the restoration liability which
the Group has for customer owned assets
that could be included in some CFR programs
(mutual pools) and is based on an estimate of
the expected repair costs for those assets.
Other external expenses
Other external expenses include expenses
relating to the Group’s ordinary activities,
including expenses for premises, consultancy
and advisory fees, ofce supplies, marketing
costs, losses on receivables, etc. This
also includes write-downs of receivables
recognized in current assets.
Other operating income and expenses
Other operating income and other operating
expenses comprise items of a secondary nature
to the main activities of the Company.
Staff costs
Staff costs comprise salaries and wages,
pensions, bonuses, social security
contributions and other staff related costs for
companies’ staff.
Depreciation, amortisation
and impairment losses
Depreciation, amortisation and impairment
losses relating to intangible assets and
property, plant and equipment comprise
depreciation, amortisation and impairment
losses for the nancial year, calculated on the
basis of the residual values and useful lives if
the individual assets and impairment testing
as well as gains and losses from the sale of
intangible assets as well as property, plant and
equipment.
Special items
Special items are disclosed separately in the
nancial statements where it is necessary to
do so to provide further understanding of the
nancial performance of the Group. They are
material items of income or expense that have
been shown separately due to the signicance
of their nature or amount.
Financial income
Financial income comprises interest income,
including interest income on receivables
from group enterprises, net capital gains on
securities, payables and transactions in foreign
currencies, amortization of nancial assets
as well as tax relief under the Danish tax
legislation etc.
Financial expenses
Financial expenses comprise interest
expenses, including interest expenses on
payables to group enterprises, net capital
losses on securities, payables and transactions
in foreign currencies, amortization of nancial
liabilities as well as tax surcharge under the
Danish tax legislation etc.
Income tax and deferred tax
The Company is jointly taxed with the parent
company CC Green Wall Invest ApS and other
Danish companies. The Danish income tax
payable is allocated between the jointly taxed
Danish companies based on their proportion
of taxable income (full absorption including
reimbursement of tax decits). The jointly
taxed companies are taxed under the Danish
tax legislation. Additions, deductions and
allowances are recognized under nancial
income or nancial expenses.
The income tax expense or credit for the period
is the tax payable on the current period’s
taxable income based on the applicable income
tax rate for each jurisdiction adjusted by
changes in deferred tax assets and liabilities
attributable to temporary differences and to
unused tax losses.
The current income tax charge is calculated
on the basis of the tax laws enacted or
substantively enacted at the balance sheet
date in the countries where the Company and
its subsidiaries operate and generate taxable
income. Management periodically evaluates
positions taken in tax returns with respect to
situations in which applicable tax regulation
is subject to interpretation. It establishes
provisions, where appropriate, on the basis
of amounts expected to be paid to the tax
authorities.
Deferred income tax is recognised on
temporary differences arising between the
tax bases of assets and liabilities and their
carrying amounts in the Consolidated Financial
Statements. However, deferred tax liabilities
are not recognised if they arise from the initial
recognition of goodwill; deferred income
tax is not accounted for if it arises from the
initial recognition of an asset or liability in a
transaction other than a business combination
that, at the time of the transaction, affects
neither accounting nor taxable prot or loss.
Deferred income tax is determined using tax
rates (and laws) that have been enacted or
substantively enacted by the balance sheet
date and are expected to apply when the
related deferred income tax asset is realised or
the deferred income tax liability is settled.
Deferred income tax assets are recognised
only to the extent that it is probable that future
taxable prot will be available, against which
the temporary differences can be utilised.
Deferred income tax liabilities are provided
on taxable temporary differences arising
from investments in subsidiaries, except for
deferred income tax liability where the timing
of the reversal of the temporary difference is
controlled by the Group and it is probable that
the temporary difference will not reverse in the
foreseeable future.
Deferred income tax assets and liabilities are
offset when there is a legally enforceable right
to offset current tax assets against current
tax liabilities and when the deferred income
tax assets and liabilities relate to income taxes
levied by the same taxation authority on either
the same taxable entity or different taxable
entities where there is an intention to settle
the balances on a net basis.
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
49
Intangible assets
Goodwill
Goodwill arises on the acquisition of
subsidiaries and represents the excess of the
consideration transferred over the Group’s
interest in net fair value of the net identiable
assets, liabilities and contingent liabilities of the
acquired.
For the purpose of impairment testing, goodwill
acquired in a business combination is allocated
to each of the CGU’s, or groups of CGU’s, that
is expected to benet from the synergies of
the combination. Each unit or group of units
to which the goodwill is allocated represents
the lowest level within the entity at which the
goodwill is monitored for internal management
purposes.
Goodwill impairment reviews are undertaken
annually or more frequently if events or
changes in circumstances indicate a potential
impairment. The carrying value of goodwill is
compared to the recoverable amount, which
is the higher of value in use and the fair value
less costs of disposal. Any impairment is
recognised immediately as an expense and is
not subsequently reversed.
Customer Contracts
The customer contracts were acquired as part
of a business combination. They are recognised
at their fair value at the date of acquisition and
are subsequently amortised on a straight-line
based on the timing of projected cash ows of
the contracts over their estimated useful lives
of 10 years.
Software
Software is measured at cost less accumulated
amortisation. Software is amortised on a
straight line basis over the useful life, which is
estimated at 3 years.
Rights
Rights are measured at cost less accumulated
amortisation. Rights are amortised on
astraight line basis over the useful life, which is
estimated at 10 years, which is in accordance
with the period of the underlaying agreement
of which the rights referred to.
Impairment of non-nancial assets
Intangible assets that have an indenite useful
life (goodwill) are not subject to amortisation
and are tested annually for impairment. Assets
that are subject to amortisation are reviewed
whenever events or changes in circumstances
indicate that the carrying amount may not be
recoverable. An impairment loss is recognised
for the amount by which the asset’s carrying
amount exceeds its recoverable amount.
The recoverable amount is the higher of an
asset’s fair value less cost of disposal and
value in use. For the purposes of assessing
impairment, assets are grouped at the lowest
levels for which there are largely independent
cash inows (cash-generating units). Prior
impairment of non-nancial assets (other than
goodwill) is reviewed for possible reversal at
each reporting date.
Property, plant and equipment
Leasehold improvements, assets held for
lease and other xtures and ttings, tools
and equipment are measured at cost less
accumulated depreciation.
Cost comprises acquisition price and costs
directly related to the acquisition until such
time as the assets are ready for use.
Depreciation on other assets, listed below, is
calculated using the straight line method to
allocate their cost or revalued amounts, net
of their residual values over their estimated
useful lives, as follows:
Leasehold improvements . . . . . . . . . 3-5 years
Other xtures and ttings,
tools and equipment . . . . . . . . . . . 3-20 years
Assets held for lease-out . . . . . . . . . . 20 years
Buildings . . . . . . . . . . . . . . . . . . . . . . . 20 years
Core units for wheels and brakes, included in
other xtures and ttings . . . . . . . . . . 20 years
Depreciation on assets, listed below, is
calculated using a production based method to
allocate their cost over their estimated useful
lifes. The depreciation is calculated based on
the actual usage of the asset (MRO).
The average cycles - useful life - is estimated
based on historical data and contractual
conditions in which the assets are used.
The useful life for each individual asset types is
as follows:
MRO, Steel brakes (CFR)
1,000 - 1,200 cycles
MRO, Carbon brakes (CFR)
1,400 - 1,600 cycles
MRO, Wheels (CFR)
170 - 270 cycles
The assets’ residual values and useful lives are
reviewed, and adjusted if appropriate, at the
end of each reporting period.
Gains and losses arising from disposal of
property, plant and equipment are calculated
as the difference between the sales price less
sales costs and the carrying amount at the
time of sale. Gains and losses are recognised in
the prot and loss account as other operating
income or other operating costs.
An asset’s carrying amount is written down
immediately to its recoverable amount if the
asset’s carrying amount is greater than its
estimated recoverable amount. An impairment
loss is recognised in the income statement
when the impairment is identied.
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
50
Leases and lease obligations
Assets and liabilities arising from a lease are
initially measured on a present value basis.
Lease liabilities include the net present value of
the following lease payments:
• xed payments (including in-substance
xed payments), less any lease incentives
receivable
• amounts expected to be payable by the
lessee under residual value guarantees
• the exercise price of a purchase option if the
lessee is reasonably certain to exercise that
option, and
• payments of penalties for terminating the
lease, if the lease term reects the lessee
exercising that option. .
The lease payments are discounted using the
interest rate implicit in the lease, if that rate
can be determined, or the Group’s incremental
borrowing rate.
Right-of-use assets are measured at cost
comprising the following:
• the amount of the initial measurement of
lease obligation
• any lease payments made at or before
the commencement date less any lease
incentives received
• any initial direct costs, and restoration costs.
Extension and terminaon opons
Extension and termination options are included
in a number of property and equipment leases
across the Group. These terms are used to
maximise operational exibility in terms of
managing contracts. The majority of extension
and termination options held are exercisable
only by the Group and not by the respective
lessor.
Inventories
Inventories are measured at the lower of cost
price or net realisable value. Cost consists
of the purchase price of the goods. The net
realisable value of the inventories is calculated
as the estimated selling price less completion
costs and costs incurred to execute sale.
Cost prices of goods sold are calculated based
on the sales price (or the estimated sales price
for group internal sales) and the assumed
xed gross margin. The net realisable value of
the inventories is calculated as the estimated
selling price less completion costs and costs
incurred to execute sale. .
Receivables
Receivables are initially recognized at fair
value adjusted for any transaction costs.
Subsequently, receivables are measured at
amortized cost, as the receivables are assets
held for collection of cash ows, where the
cash ows represent solely payments of
principal and interest. Amortized cost usually
corresponds to the nominal value. Write-down
is made to net realisable value to provide for
expected losses.
For trade receivables, the Group applies
the simplied approach permitted by IFRS
9 which requires expected lifetime losses to
be recognized from initial recognition of the
receivables.
Prepayments
Prepayments comprise aircraft components
purchases for Programs activities and
Components replenishment and prepayments
in advance for subsequent nancial years.
Prepayments are measured at cost.
Equity
Reserve for exchange rate translaon
The reserve for exchange adjustments consists
of exchange rate differences that occur when
translating the foreign subsidiaries’ nancial
statements from their functional currency into
the Group’s presentation currency. On disposal
of the net investment, the reserve for exchange
adjustments of that foreign subsidiary is
recognized in the income statement. Reduction
of a net investment in a foreign operation
which does not result in loss of control is not
treated as a disposal.
Dividend distribution
Dividends are recognised as a liability at
the time of adoption at the Annaul General
Meeting.
Provisions
Lending of assets included in the programs by
customers (mutual pool) occasionally occurs
in connection with the CFR program activities.
In case that these programs end, the Company
must return similar assets in the same
condition as when the lending took place. The
provisions include an amount counterbalancing
the restoration liability based on an estimate
of the expected expenses. The liability is
recognized during the application period of
the mutual pool assets. The provisions are
recognized and measured as the best estimate
of the expenses required to settle the liabilities
at the balance sheet date. Provisions that are
estimated to mature more than one year after
the balance sheet date are measured at their
discounted value.
Borrowings
Borrowings are initially recognised at fair
value, net of transaction expenses incurred.
Borrowings are subsequently measured at
amortised cost. Any differences between
the proceeds and the redemption value are
recognised in the income statement over the
period of the borrowings using the effective
interest method.
Other liabilities
Other debt or liabilities covering trade
creditors and other debt are recognised at
amortised cost which usually corresponds to
the nominal value.
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
51
Prepayments received from
customers (contract liabilities)
Prepayments received from customers
comprise amounts received from customers
prior to delivery of the goods agreed or
completion of the service agreed.
Contract liabilities represent mainly obligations
in relation to CFR programmes where there
may be an obligation to maintain, repair and
overhaul (MRO) customer owned units
Cash ow statement
The cash ow statement shows the
consolidated cash ows during the year
distributed on operating, investing and
nancing activities, changes in cash and cash
equivalents at the beginning and at the end of
the year.
Cash ows from operating activities are
calculated using the indirect method and
comprise prot for the year adjusted for
non-cash items, changes in working capital,
interest paid and received etc., and payments
of corporate tax.
Cash ows from investing activities comprise
payments in connection with acquisitions and
divestment of businesses and purchase and
sale of enterprises, activities and xed asset
investments as well as purchase, improvement
and sale, etc. of intangible assets and property,
plant and equipment, including acquisition of
assets held under nance lease.
Cash ows from nancing activities comprise
changes in the size or composition of the
contributed capital and related costs as well as
the raising of loans, inception of nance leases,
instalments on interest-bearing debt, purchase
of treasury shares, and payment of dividend.
Cash and cash equivalents
In the consolidated cash ow statement, cash
and cash equivalents include cash in hand and
bank deposits.
Consolidated Key Figures
The key gures and nancial ratios have been
prepared on a consolidated basis. The nancial
ratios have been calculated in accordance with
the following denitions:
• Gross margin is calculated as the gross
prot divided by net revenue.
• Special items are dened as income and
expenses of a special nature in terms of the
Group’s revenue-generating activities.
• Operating prot before special items margin
is calculated as the operating prot before
special items margin divided by net revenue.
• Operating prot after special items margin
is calculated as the operating prot after
special items margin divided by net revenue.
• Return on equity is calculated as the prot
or loss for the year after tax divided by the
average equity.
• Equity ratio is calculated as the equity
divided by the total assets.
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
52
2. CRITICAL
ACCOUNTING
ESTIMATES
AND
JUDGEMENTS
The Group makes estimates and assumptions
concerning the future. The resulting
accounting estimates will, by denition, seldom
equal the related actual results. The estimates
and assumptions that have a signicant risk of
causing a material adjustment to the carrying
amounts of assets and liabilities within the next
nancial year are addressed below.
The judgements, estimates and assumptions
made are based on historical experience and
other factors that management considers
to be reliable, but which by their very
nature are associated with uncertainty and
unpredictability. These assumptions may
prove incomplete or incorrect, and unexpected
events or circumstances may arise. The most
critical judgements, estimates and assumptions
for the individual items are described below.
The Group is also subject to risks and
uncertainties that may lead to actual results
differing from these estimates, both positively
and negatively.
Customer relations
The value of customer relations and the
expected useful life are assessed based on long-
term and stable relations with the customers
and the expected related protability.
The measurement is based on the expected
cash ows from customer relations, costs
relating to invested capital, the tax effect and a
calculated discount rate.
The carrying amount of customer relations is
USD 814k at 31 December 2024.
Impairment test of goodwill
The Group annually tests whether goodwill has
suffered any impairment, in accordance with
the accounting policy stated in note 1.
The recoverable amounts of cash-generating
units have been determined based on value-in-
use calculations. These calculations require the
use of estimates.
The estimates and assumptions are based on
historical experience and other factors, such
as management but as by nature it is uncertain
and unpredictable. Due to the risks and
uncertainties which the Group is subject to,
actual outcomes may differ from the estimates
made.
Goodwill amounts to USD 46.139k and no
impairment losses have been recognised in
2024. Information on the impairment test,
hereunder critical asumptions are disclosed
and described in note 12.
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
53
Property, plant and equipment
(depreciation period)
The Group recognises its core units as
property, plant and equipment with respect
to core units included as part of the Group’s
programme activities. Core units used for the
Group’s programme activities are subject to
impairment during their useful lives that ends,
at the same time as the aircraft platform it
services, is terminated.
The depreciation period has been determined
at 20 years for these core units with a residual
value of 20%. Management’s estimate of the
expected useful lives is based on historical
experience and market data factors, but is
naturally subject to uncertainty.
The depreciation periods for core units are
reassessed every year.
Costs for maintenance, repair and overhaul
(MRO) of wheels and brakes are capitalised as
part of xed assets related to the enterprises’
CFR programme activities and are in average
depreciated over 170 - 270 cycles in respect
of the wheels, 1,000 - 1,200 cycles in respect
of the steel brakes and 1,400 - 1,600 cycles in
respect of the carbon brakes
The average cycles have been determined
based on historical data, corresponding to
useful life for wheels, steel brakes and carbon
brakes, respectively.
The number of cycles, for which depreciation
of maintenance, repair and overhaul (MRO) is
made, will be reassessed every year.
Valuation of inventory
Inventory is stated at the lower of cost or
market value. The Group determines cost using
the specic measurement method. The Group
analyses its inventory levels periodically and
writes down inventory to its net realizable
value if it has become obsolete, has a cost basis
in excess of its expected net realizable value or
is in excess of expected demand (obsolescence).
There were write-downs of USD 3.6m related
to obsolescence as of 31 December 2024
(2023: USD 3.1m).
Provisions
Lending of assets included in the programs
by customers (mutual pool) occasionally
occurs in connection with the CFR program
activities. In case that these programs end,
the Company must return similar assets in the
same condition as when the lending took place.
The provisions for such restoration liabilities
include an amount counterbalancing the
expected expenses. The amount is based on an
estimate.
Revenue
Revenue related to programs is recognized as a
service exclusive of the value of the core assets
that are exchanged during delivery within the
program as they are considered exchange
of assets of similar nature and value. Cost of
the delivered core asset is transferred for
recognition as cost of the core asset received.
For assets to be included in programs, the
allocation of total cost between the core
element and the MRO element, respectively, is
determined at the rst exchange based on an
estimate.
The sales value of the CFR programs is
recognized concurrently with the customer’s
use of the asset delivered (per cycle). Cost
related to CFR programs are depreciated
over the useful life (either years or number of
cycles).
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
54
3. REVENUE
2024
USD’000
2023
USD’000
Revenue from contracts with customers 175,084 174,327
Other revenue, MRO revenue 5,947 5,334
Total 181,031 179,661
Programs 2023 CFR LFL Leasing Total
USD’000 USD’000 USD’000 USD’000
Revenue 57,081 33,409 704 91,194
Total 57,081 33,409 704 91,194
Timing of revenue recognion
At point in time 0 33,409 0 33,409
Over time 57,081 0 704 57,785
Total 57,081 33,409 704 91,194
Programs 2024 CFR
USD’000
LFL
USD’000
Leasing
USD’000
Total
USD’000
Revenue 65,150 29,921 538 95,609
Total 65,150 29,921 538 95,609
Timing of revenue recognion
At point in time 0 29,921 0 29,921
Over time 65,150 0 538 65,688
Total 65,150 29,921 538 95,609
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
55
3. REVENUE
Components, Distribuon
and Maintenance
2024
Components
USD’000
Distribuon
USD’000
Maintenance,
repair and
overhaul
USD’000
Total
USD’000
Revenue 58,962 20,513 5,947 85,422
Total 58,962 20,513 5,947 85,422
Timing of revenue recognion
At point in time 58,962 20,513 5,947 85,422
Over time 0 0 0 0
Total 58,962 20,513 5,947 85,422
Components, Distribuon
and Maintenance
2023
Components
USD’000
Distribuon
USD’000
Maintenance,
repair and
overhaul
USD’000
Total
USD’000
Revenue 65,410 17,723 5,334 88,467
Total 65,410 17,723 5,334 88,467
Timing of revenue recognion
At point in time 65,410 17,723 5,334 88,467
Over time 0 0 0 0
Total 65,410 17,723 5,334 88,467
2024
Europe, Middle
East and Africa
USD’000
Americas
USD’000
Asia Pacic
USD’000
Total
USD’000
Revenue from contracts with
customers
103,772 36,553 34,759 175,084
Other revenue, MRO revenue 175 89 5,683 5,947
Total 103,947 36,642 40,442 181,031
Timing of revenue recognion
At point in time 86,948 25,333 38,828 151,110
Over time 16,999 11,309 1,613 29,921
Total 103,947 36,642 40,442 181,031
2023
Europe, Middle
East and Africa
USD’000
Americas
USD’000
Asia Pacic
USD’000
Total
USD’000
Revenue from contracts with
customers
110,224 34,397 29,707 174,327
Other revenue, MRO revenue 329 71 4,934 5,334
Total 110,553 34,468 34,641 179,661
Timing of revenue recognion
At point in time 62,785 33,165 27,112 123,061
Over time 47,768 1,303 7,529 56,600
Total 110,553 34,468 34,641 179,661
There was no revenue recognised in the current reporting period that relates to performance
obligations that were satised in a prior year.
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
56
4. OTHER INCOME3. REVENUE
The group has recognised the following
revenue-related contract liabilities
2024
USD’000
2023
USD’000
Contract liabilies - Programs, CFR
Opening balance 2,756 2,346
Net additions 115 410
Closing balance 2,871 2,756
2024
USD’000
2023
USD’000
Programs, CFR 0 0
Total 0 0
2024
USD’000
2023
USD’000
Government grants 639 -27
Total 639 -27
There were no signicant changes in the contract liability balances during the reporting period.
Revenue recognised which was included as contract liabilies at the beginning of the period:
The Group has not realised any contract liability costs in the period.
Government grants primarily contain income from relief packages.
The amount for 2024 is adjustments to previous years relief packages.
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
57
5. STAFF COSTS
2024
USD’000
2023
USD’000
Wages and salaries 25,162 23,263
Pensions 855 747
Other social security costs 2,399 2,351
Other staff costs 1,017 877
Total 29,433 27,238
Average number of employees 379 375
Number of shares 2024
USD’000
2023
USD’000
As at 1 January 228,543 228,543
Granted during the year 0 0
Forfeited during the year -47,523 0
As at 31 December 181,020 228,543
2024
USD’000
2023
USD’000
Wages and salaries 1,607 1,751
Pensions 55 74
Execuve board 1,662 1,825
Remuneration of management in total:
Executive Board 1,662 1,825
Board of Directors 149 148
Total 1,811 1,973
Key Management Compensation
Key management includes Board of Directors and Executive Board. The compensation paid or
payables to key management for employee services is shown below:
Shares program
In 2024 and earlier years, employees, management and Board of Directors of TP Aerospace have
been offered the opportunity to purchase shares in TPA Green Manco ApS which is a shareholder
of TP Aerospace Group. The participants acquired the shares at an estimated market price. If an
employee leaves the Group before an exit, the company has the option to buy back the shares at
an estimated market price. As the program does not have any negative effect on the company, no
expense is recognized in the income statement.
The following table shows the number of shares granted and outstanding at the beginning and end
of the reporting period:
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
58
6. AMORTISATION, DEPRECIATION
AND IMPAIRMENT LOSSES
7. AUDIT FEES
9. FINANCIAL INCOME
8. SPECIAL ITEMS
2024
USD’000
2023
USD’000
PwC
Statutory audit 177 181
Tax assurance services 200 55
Other services 38 1,058
Total 415 1,294
Other auditors
Statutory audit 52 51
Tax assurance services 3 0
Other services 8 0
Total 63 51
2024
USD’000
2023
USD’000
Amortisation 898 858
Depreciation 50,026 44,071
Total
50,924 44,929
2024
USD’000
2023
USD’000
Interest income 74 9
Interest from group companies 30 23
Exchange rate adjustments 4,758 2,557
Total 4,862 2,589
2024
USD’000
2023
USD’000
Non-recurring write-downs of inventory and property, plant and
equipment
2,531 0
Net losses related to cease of operations in Russia 0 159
Costs related to new operations in Czech Republic and Brisbane 0 2,327
Non-recurring restructuring of the organisation including management 133 0
Advisory and consultancy fees for special projects 332 1,777
Other non-recurring items 261 1,692
Total 3,257 5,955
Depreciations of USD 1.032k has been classied under special items and can be attributed to non-
recurring write-downs on property, plant and equipment.
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
59
10. FINANCIAL EXPENSES 11. TAX ON PROFIT
FOR THE YEAR
2024
USD’000
2023
USD’000
Interest expenses 8,396 7,765
Interest to Group companies 72 0
Exchange rate adjustments 965 3,192
Total 9,433 10,957
2024
USD’000
2023
USD’000
Current tax:
Current tax on prot for the year 4,184 1,968
Current tax on prot for previous years 1,625 61
Total current tax expense 5,809 2,029
Deferred tax:
Deferred tax for the year -341 430
Deferred tax for previous years 217 0
Total deferred tax -124 430
Total tax for the period 5,685 2,459
Tax for the period is specied as follows:
Calculated 22% tax on prot before tax 3,377 986
Tax eects of:
Higher/lower tax rate in subsidiaries 194 8
Current tax of prot for previous years 1,625 61
Deferred tax for previous years 217 0
Interest cap limitation 0 918
Loss making entities 150 0
Non-deductible expenses 122 486
Total 5,685 2,459
Effective tax rate 37% 55%
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
60
12. INTANGIBLE ASSETS
Impairment test for goodwill
Goodwill is monitored by management at the level of
TPA Holding I A/S as one cash generating unit.
The Group tests on an annual basis whether goodwill
has suffered any impairment. The recoverable amount
is determined based on value-in-use calculations
which require the use of assumptions. The calculations
use cash ow projections based on nancial budgets
approved by management covering a nine-year period.
Cash ows beyond the nine-year period are
extrapolated using the estimated growth rates stated
in the table. These growth rates are consistent with
forecasts included in industry reports specic to the
industry in which the Group operates.
Software
USD’000
Goodwil
USD’000
Customer
relations
USD’000
Rights
USD’000
Total
USD’000
Cost:
At 01.01.2023 410 46,139 3,490 4,214 54,253
Additions during the year 34 0 0 0 34
At 31.12.2023 444 46,139 3,490 4,214 54,287
Amorsaon and impairment:
At 01.01.2023 117 0 1,978 947 3,042
Amortisation for the year 78 0 349 422 849
At 31.12.2023 195 0 2,327 1,369 3,891
Carrying amount 31.12.2023 249 46,139 1,163 2,845 50,396
Cost:
At 01.01.2024 444 46,139 3,490 4,214 54,287
Additions during the year 0 0 0 0 0
At 31.12.2024 444 46,139 3,490 4,214 54,287
Amorsaon and impairment:
At 01.01.2024 195 0 2,327 1,369 3,891
Amortisation for the year 127 0 349 422 898
At 31.12.2024 322 0 2,676 1,791 4,789
Carrying amount 31.12.2024 122 46,139 814 2,423 49,498
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
61
12. INTANGIBLE ASSETS
Description of assumptions
Average sales growth is the average annual growth rate over the forecast period from 2025 to 2033.
It is based on past performance and management’s expectations of market development.
Revenue projection is based on existing and new sales supporting passenger or cargo demand.
Existing passenger sales rely on leading industry experts’ views on the return prole of passenger
activity. Existing cargo sales are projected based on dialogues with customers and expectations
going forward. New customers, both within the passenger and cargo segments, are based on historic
growth combined with TP Aerospace’s current pipeline.
EBITA margin is the average margin as a percentage of revenue over the forecast period 2025 -
2033. It is based on the current sales margin levels, expectations to sales mix and expectations to
scalability improvements which positively impact EBITDA.
Marginal tax rate is the expected rate over the nine-year forecast period. It is based on current
Danish tax legislation.
Sensitivity to changed assumptions
The calculated value in use of the cash generating unit is considerably higher than the carrying
amount, and the prepared impairment test shows that goodwill and customer relations are not
impaired. In management’s opinion, no reasonable likely change to the above-mentioned assumptions
will imply that the carrying amount of the cash generating unit will exceed the value in use
signicantly.
Impairment test for goodwill - continued
Key assumptions, long term growth rate and discount rate used in the value-in-use
calculations are as follows::
Assumptions at 31.12.2024
Average sales growth (% annual growth rate) from year 2025 to year 2033 9.6%
EBITA margin (%) 18.0%
Marginal tax rate (%) 22.0%
Long term growth rate (%) 3.0%
Pre-tax discount rate (%) 9.9%
Assumptions at 31.12.2023
Average sales growth (% annual growth rate) from year 2024 to year 2032 7.0%
EBITA margin (%) 17.0%
Marginal tax rate (%) 22.0%
Long term growth rate (%) 3.0%
Pre-tax discount rate (%) 10.1%
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
62
13. PROPERTY, PLANT AND EQUIPMENT
Land and buildings
USD'000
Other xtures and ttings,
tools and equipment
USD'000
Leasehold improvements
USD'000
Total
USD'000
Cost:
At 01.01.2023 18,115 74,880 1,298 94,293
Exchange rate differences -7 0 0 -7
Additions during the year 2,350 51,664 1,055 55,069
Disposals during the year 0 -39,287 0 -39,287
At 31.12.2023 20,458 87,257 2,353 110,068
Depreciaon and impairment:
At 01.01.2023 9,007 20,588 473 30,066
Exchange rate differences 3
0
2 5
Depreciation for the year 2,755 41,631 230 44,617
Reversal regarding disposals 0 -39,127
0
-39,127
At 31.12.2023 11,765 23,092 705 35,561
Carrying amount 31.12.2023 8,693 64,165 1,648 74,507
Cost:
At 01.01.2024 20,458 87,257 2,353 110,068
Exchange rate differences 0 -274 -2 -276
Additions during the year 2,221 50,798 934 53,953
Disposals during the year -4,455 -45,026 -8 -49,489
At 31.12.2024 18,224 92,755 3,277 114,256
Depreciaon and impairment:
At 01.01.2024 11,765 23,092 705 35,561
Exchange rate differences 0
-152
-1 -153
Depreciation for the year 2,808 47,713 537 51,058
Reversal regarding disposals -4,455 -44,946
-2
-49,403
At 31.12.2024 10,118 25,707 1,239 37,062
Carrying amount 31.12.2024 8,106 67,048 2,038 77,194
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
63
Amounts recognised in the balance sheet
The balance show the following amounts relating to leases:
Amounts recognised in the statement of prot and loss
The statement of prot and loss shows the following amounts relating to leases:
14. LEASES
2024
USD'000
2023
USD'000
Lease liabilies
Non-current 5,207 6,861
Current 3,719 2,548
Total 8,926 9,409
Land and buildings
USD'000
Total
USD'000
Right-of-use assets
Carrying amount 1 January 2023 9,002 9,002
Exchange rate differences 195 195
Additions 2,152 2,152
Depreciation for the year -2,755 -2,755
Carrying amount 31 December 2023 8,594 8,594
Right-of-use assets
Carrying amount 1 January 2024 8,594 8,594
Additions 2,221 2,221
Depreciation for the year -2,800 -2,800
Carrying amount 31 December 2024 8,015 8,015
2024
USD’000
2023
USD’000
Depreciaon charge of right-of-use assets
Land and buildings 2,800 2,755
Total 2,800 2,755
Interest expense
Expenses relating to leases 414 411
Total 414 411
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
65
15. DEFERRED TAX 16. INVENTORIES
The recognised deferred tax asset is attributable to tax loss temporary differences between
accounting values and tax values. In the coming years the group expects earnings and taxable income
to be positive and has accordingly recognised deferred tax asset at 31 December 2024.
The cost of inventories recognised as an expense and included in ‘Cost of sales’ amounted to
USD 59,137k.
Provision for inventory write-downs amounts to USD 3,586k at 31 December 2024. Provision for
inventory write-downs is carried out based on a write-down model used by the Group as a whole.
The write-down principles are based on a comparison of the book value per part number and
internal market data for net realisable value. Write-downs of inventories are made when the book
value is above net realisable value.
2024
USD'000
2023
USD'000
Deferred tax at 1 January 1,421 1,851
Deferred tax recognised in the income statement 124 -430
Deferred tax at 31 December 1,545 1,421
Deferred tax relates to:
Intangible assets -343 -424
Property, plant and equipment 1,343 979
Provisions 590 521
Amortisation costs 172 345
Unrealised exchange rate gain on loan -217 0
Total 1,545 1,421
Of which presented as deferred tax asset -1,545 -1,421
2024
USD'000
2023
USD'000
Finished goods 74,356 72,431
Total inventories 74,356 72,431
Less: Provision for inventory write-downs -3,586 -3,084
Total net inventories 70,770 69,347
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
66
17. TRADE RECEIVABLES
Expected credit losses
The Group applies the simplied approach for providing expected credit losses as prescribed by
IFRS 9, allowing for the use of lifetime expected loss provisions for all trade receivables. Trade
receivables are grouped based on shared credit risk characteristics and days past due to measure
expected credit losses, which also incorporate forward-looking information. Generally, the credit
risk is considered immaterial.
2024
USD’000
2023
USD’000
Trade receivables and other receivables 31 December 23,587 22,730
Less: Provision for write-down of trade receivables -741 -1,940
Trade receivables, net 22,846 20,790
Movements on the Group provision for write-down of
trade receivables are as follows:
Opening balances 1,940 1,072
Allowances during the year 220 1,106
Write-downs during the year -1,174 0
Reversed write-downs -245 -238
Provision for write-downs of trade receivables at
31 December 741 1,940
Allocation of receivables, overdue but no write-down, by
maturity period is as follows:
Up to 30 days 5,163 4,646
Between 31 and 90 days 2,870 1,858
More than 90 days 997 1,135
Overdue trade receivables, net at 31 December 9,031 7,639
18. SHARE CAPITAL
The share capital comprises 4,449,950 shares of a nominal value of USD 0.15 each.
No shares carry any special rights.
Capital management
The Group’s objectives when managing capital are to secure the Group’s ability to continue as a
going concern in order to provide returns for shareholders and benets for other stakeholders and
to maintain an optimal capital structure to reduce cost of capital. Any surplus liquidity is used to
reduce debt.
The Board of Directors monitors the share and capital structure to ensure that the Group’s capital
resources support the strategic goals.
Number of shares Nominal value
USD'000
Changes in share capital:
Share capital at 08.03.2017 500,000 73
Capital increase at 27.04.2017 3,949,950 578
Share capital at 31 December 2024 4,449,950 651
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
67
19. BORROWINGS
The borrowings comprise acquisition related loans as well as revolving facilities to fund the
ongoing operations. There are covenants attached to all the loan facilities. Please refer to note 23
under the liquidity section for a description of the Groups’ covenants.
The terms and conditions of the loan from credit institutions, term loan and revolving facility were
extended to current maturity in December 2024.
Loan from credit institutions started repayment on 26 May 2020 and is paid in full by maturity.
Term loan is repayable in instalments as of 27 April 2019 to 30 April 2026.
Revolving facilities were increased with USD 8m in 2022. Revolving facilities start repayment as of
30 November 2024 and is paid in full at maturity.
Eecve
interest rate
Currency Maturity Carrying
amount
USD'000
Loan from credit institutions 7.2% - 7.8% DKK, USD 30 April 2026 14,057
Term Loan 10.0% USD 30 April 2026 5,382
Revolving Facility 10.0% - 11.0% DKK, EUR, USD 30 April 2026 53,351
Total bank borrowings at 31 December 2024 72,790
Loan from credit institutions 5.3% - 7.8% DKK, USD 30 April 2025 31,413
Term Loan 9.98% USD 30 April 2025 5,982
Revolving Facility 10.0% - 11.0% DKK, EUR, USD 30 April 2025 41,187
Total bank borrowings at 31 December 2023 78,583
20. PROVISIONS
Lending of assets included in the programs by customers (mutual pool) occasionally occurs in
connection with the CFR program activities. In case that these programs end, the Group must
return similar assets in the same condition as when the lending took place. The provisions include an
amount counterbalancing the restoration liability based on an estimate of the expected expenses.
The liability is recognised during the application period of the lended assets.
2024
USD'000
2023
USD'000
Provisions at 1 January 2,756 2,346
Additions during the year 115 410
Provisions at 31 December 2,871 2,756
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
68
21. RELATED PARTIES
The Group is controlled by TPA Holding II A/S which is controlled by CC Green Wall Invest ApS. The Group’s
ultimate parent company is CataCap I K/S.
Key management compensation’ is disclosed in note 5.
The following transacons were carried out with related pares:
Dancing Minds ApS is controlled by Peter Jørgen Lyager and Thomas Ibsø. Peter Lyager is part of the Board
of Directors and both Peter Jørgen Lyager and Thomas Ibsø have ownership of TP Aerospace Group.
2024
USD’000
2023
USD’000
Transacons with CataCap Management A/S:
Costs from CataCap Management A/S 26 4
Total 26 4
Transacons with CC Green Wall Invest ApS:
Settlement of taxes in joint taxation 0 -915
Interest income 46 47
Proceeds from borrowings 156 60
Total 202 -808
Transacons with TPA Holding II A/S:
Proceeds from borrowings -285 -5
Interest expense -4 -3
Total -289 -8
Transacons with Dancing Minds ApS:
Purchase of goods 1,427 4,488
Payments for goods 2,920 5,968
Total 4,347 10,455
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
69
22. COMMITMENTS
AND CONTINGENT
LIABILITIES
Contingent liabilities
Joint taxaon
The Group companies are jointly and severally liable for tax on the jointly taxed income, etc. for
the Danish companies of the TP Aerospace Group. The total amount of corporation tax payable
is disclosed in the annual report of CC Green Wall Invest ApS which is the management company
of the joint taxation. Moreover, the Group companies are jointly and severally liable for Danish
withholding taxes by way of dividend tax, tax on royalty payments and tax on unearned income.
Any subsequent adjustment of corporation taxes and withholding taxes may increase the Group’s
liability.
Charges and security
As security for borrowings and Group companies’ bank commitments, security in the form of
share capital, inventory, tangible assets, and goodwill is effective for TP Aerospace PRO ApS, TP
Aerospace Solutions ApS, TP Aerospace Distribution ApS, TP Aerospace Holding A/S, and TPA
Holding I A/S, with a nominal value of USD 13.1m.
Guarantee obligaons
The Group has issued a payment guarantee between the Danish Group companies (TP Aerospace
PRO ApS, TP Aerospace Solutions ApS, TP Aerospace Distribution ApS, TP Aerospace Holding A/S,
and TPA Holding I A/S) and the Group’s credit institutions.
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
70
Financial risk factors
The Group’s activities expose it to a variety of nancial risks:
currency risk, interest risk, credit risk and liquidity risk. The
Group’s overall risk management program focuses on the
unpredictability of nancial markets and seeks to minimise
potential adverse effects on the Group’s nancial performance.
The nancial risks of the Group are managed centrally. The
overall risk management guidelines and policies have been
approved by the Board of Directors. The Board provides written
principles for overall risk management, as well as written policies
covering specic areas, such as foreign exchange risk, interest
rate risk, credit risk, use of derivative nancial instruments and
non-derivative nancial instruments, and investment of excess
liquidity. Executive management manages contracts and risk
exposures in accordance with the guidelines and policies and
reports to the Board of Directors on a regular basis.
Market risk
Foreign exchange risk
Due to the Group’s structure, most net sales and expenditure
in foreign currency are set off against each other, so that the
Group is not exposed to major exchange rate risks.
The Group’s revenue and expenses are mostly in the functional
currency of the operating entity creating a natural currency
hedge. Consequently, the Group’s treasury risk management
policy is not to hedge foreign exchange rate risks.
The main borrowings are in USD or DKK. The Board of
Directors has decided not to hedge borrowings in DKK and the
Group’s main currency risk is therefore related to loan in DKK.
Sensitivity analysis
The Group is primarily exposed to changes in DKK/USD
exchange rate. The sensitivity of prot or loss to changes in
the exchange rates arises mainly from expenses and loans in
DKK.
Interest rate risk
The Group’s interest rate risk arises from long-term borrowings
related to the acquisitions. Borrowings issued at variable rates
expose the Group to cash ow interest rate risk. Borrowings
issued at xed rates expose the Group to fair value interest rate
risk. Group policy is to conduct an annual assessment of the
interest risk exposure on group level and the cost associated with
a hedging scheme, and on this basis the exectuive management
will in alignment with the Board determine whether to hedge the
risk with interest rate swaps or similar.
Sensivity analysis
Prot or loss is sensitive to higher/lower interest from
borrowings and fair value changes of interest rate derivatives
as a result of changes in interest rates. The sensitivity analysis is
calculated after the impact of the hedging instruments.
Credit risks
Credit risk is managed on a group basis, including managing and
analysing the credit risk related to accounts receivable balances
and for new customers before standard payment and delivery
terms and conditions are offered. For credits over a certain
amount, executive management has to be consulted.
Credit risk arises from cash and cash equivalents and deposits
with banks and nancial institutions, as well as credit exposures
to customers, including outstanding receivables. For banks and
nancial institutions, only independently rated parties with a high
credit rating are accepted. For customers, individual risk limits
are set based on internal or external ratings in accordance with
limits set by the Board. The utilisation of credit limits is regularly
monitored.
The maximum exposure corresponds to the carrying amount
of receivables. Due to the short-term nature of the current
receivables, their carrying amount is considered to be the same
as their fair value.
23. FINANCIAL RISK MANAGEMENT
Impact on post tax prot 2024
USD'000
2023
USD'000
DKK/USD exchange rate
– increase 10%
3,216 2,663
DKK/USD exchange rate
– decrease 10%
-3,216 -2,663
All other variables are kept constant.
Impact on post tax prot 2024
USD'000
2023
USD'000
Interest rates – increase by
100 basis points
-807 -807
Interest rates – decrease by
100 basis points
807 807
All other variables are kept constant.
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
71
The Group applies the simplied approach to providing for expected credit losses prescribed by
IFRS 9, which permits the use of the lifetime expected loss provision for all trade receivables. To
measure the expected credit losses, trade receivables have been grouped based on shared credit
risk characteristics and the days past due. The expected credit losses also incorporate “forward
looking” information. The credit risk is generally considered immaterial.
Hedging
The Group’s activities expose it to foreign currency risk and interest rate risk. In order to minimise
any adverse effects on the nancial performance of the Group, derivative nancial instruments,
such as interest rate swaps can be used to x variable future cash ows, when deemed benecial.
These instruments reduce the uncertainty of interest payments. Derivatives are used exclusively
for hedging purposes and not as trading or speculative instruments.
If entering interest rate swap contracts, the Group agrees to exchange the difference between
xed and oating rate interest amounts calculated on agreed notional principal amounts. Such
contracts will enable the Group to mitigate the risk of changing interest rates on the fair value of
issued xed rate debt and the cash ow exposures on the issued variable rate debt. The fair value of
interest rate swaps outstanding at the end of the reporting period is determined by discounting the
future cash ows using the curves at the end of the reporting period and the credit risk inherent
in the contract. During 2024, the Group did not enter into any interest rate swap contracts and no
instruments were outstanding by the end of the reporting period.
Liquidity
Cash ow forecasting is performed on group level by management. Management monitors rolling
forecasts of the Group’s liquidity requirements to ensure it has sufcient cash to meet operational
needs while maintaining sufcient headroom on its undrawn committed borrowing facilities at all
times so the Group does not breach borrowing limits or covenants (where applicable) or any of its
borrowing facilities. Such forecasting takes into consideration the Group’s debt nancing plans and
covenants compliance.
• The Groups covenants are specied below:
• Interest cover: (EBITDA to nancial net)
• Leverage: (Total net debt to EBITDA)
• Loan to value: (total net debt in percentage of total inventory and trade receivables)
• Capital expenditure limit
• Liquidity reserve
The interest cover, leverage and loan to value covenant is measured quarterly, while the capital
expenditure limit covenant is measured annually, and the liquidity reserve covenant is measured
monthly. Based on the management approved budgets, the Group does not expect to breach any
covenants.
The Group has undrawn borrowing facilities of USD 5.6m that, together with the USD 3.8m in
cash and cash equivalents, provides for a total of USD 9.4m available for settling future operating
activities and capital commitments.
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
72
Non-derivaves Less than
1 year
USD’000
1-5 years
USD’000
More than
5 years
USD’000
Total
USD’000
As at 31 December 2024
Borrowings 10,963 72,266 0 83,229
Lease liabilities 3,672 4,059 2,024 9,755
Trade payables 12,439 0 0 12,439
Other payables 8,544 0 0 8,544
Total 35,618 76,325 2,024 113,967
As at 31 December 2023
Borrowings 11,326 77,578 0 88,904
Lease liabilities 2,939 7,746 170 10,855
Trade payables 15,989 0 0 15,989
Other payables 7,739 0 0 7,739
Total 37,993 85,324 170 123,487
The table below analyses the Group’s non-derivative nancial liabilities into relevant maturity
groupings based on the remaining period at the balance sheet date to the contractual maturity date.
The amounts disclosed in the table are the contractual undiscounted cash ows.
For oating rate borrowings, the rate at the balance sheet date has been applied.
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
73
The Group classies its nancial assets at amortised cost only if both of the following criteria are met:
• The asset is held within a business model with the objective of collecting the contractual cash ows, and
• The contractual terms give rise on specied dates to cash ows that are solely payments of principal and
interest on the principal outstanding.
No events of importance to the 2024 annual report have occurred after the balance sheet date.
24. FINANCIAL ASSETS AND
LIABILITIES
25. EVENTS AFTER THE BALANCE
SHEET DATE
26. CHANGES IN NET WORKING
CAPITAL
2024
USD’000
2023
USD’000
Financial assets
Financial assets at amorsed cost:
Trade receivables 22,846 20,790
Other receivables 2,652 2,794
Prepayments 474 1,198
Cash 3,763 2,967
Total 29,735 27,749
Financial liabilities
Financial liabilies at amorsed cost:
Borrowings 72,790 78,583
Lease liabilities 8,926 9,409
Trade payables 12,439 15,989
Other payables 8,544 7,739
Prepayments from customers 2,309 835
Total 105,008 112,555
2024
USD’000
2023
USD’000
Changes in inventories -1,423 5,301
Non-cash inventory transfer from property, plant and equipment 80 160
Changes in trade receivables -2,056 1,174
Changes in other receivables and prepayments 866 6,794
Changes in trade payables, other payables and prepayments from
customers
-1,271 -2,499
Change in provisions 115 410
Total -3,689 11,340
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
74
27. CHANGES IN LIABILITIES
ARISING FROM FINANCING
ACTIVITIES
28. DEPRECIATIONS AND
AMORTISATIONS
29. EXEMPTION FROM AUDIT
OF FOREIGN SUBSIDIARIES
The German subsidiary TP Aerospace Technics GmbH made use of the exemption option in
accordance with §264 paragraph 3 HGB (German Commercial Code) concerning the obligation to
prepare a management report including note disclosures as well as to audit and disclose the annual
nancial statements and the management report for scal year 2024.
Depreciation related to capitalised maintenance costs on the CFR programs has a direct impact
on the Group’s cash ow and is therefore adjusted in the cash ow statement for the nancial year
2024.
2024
USD’000
2023
USD’000
Proceeds from borrowings -1,713 -1,432
Repayment of borrowings -3,528 -3,522
Total -5,241 -4,954
2024
USD’000
2023
USD’000
Depreciation and amortisation, refer to note 6 51,956 45,635
Depreciation related to capitalised maintenance costs -45,247 -40,271
Total 6,709 5,364
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
76
STATEMENT OF PROFIT AND
LOSS 1 JANUARY - 31 DECEMBER
(parent company)
STATEMENT OF
COMPREHENSIVE INCOME
1 JANUARY - 31 DECEMBER
(parent company)
Note 2024
USD’000
2023
USD’000
Other external expenses -20 -5
Operang prot -20 -5
Financial income 3 388 379
Financial expenses 4 -577 -583
Prot before tax -208 -210
Tax for the period 5 46 13
Prot for the period -162 -197
Note 2024
USD’000
2023
USD’000
Prot for the period -162 -197
Fair value changes for the year, cash ow hedge 0 0
Tax on other comprehensive income 0 0
Other comprehensive income for the period, net of tax 0 0
Total comprehensive income for the period -162 -197
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
77
BALANCE SHEET 31 DECEMBER
(parent company)
BALANCE SHEET 31 DECEMBER
(parent company)
Notes 2024
USD’000
2023
USD’000
Investment in subsidiaries 6 88,075 88,075
Deferred tax asset 7 22 25
Total non-current assets 88,097 88,100
Receivables from group enterprises 10 3,700 4,490
Other receivables 0 0
Tax receivables 49 23
Cash 13 4
Total current assets 3,762 4,517
Total assets 91,859 92,617
Note 2024
USD’000
2023
USD’000
Share capital 8 651 651
Share premium 64,441 64,441
Reserve for cash ow hedges 0 0
Retained earnings 21,327 21,489
Total equity 86,419 86,581
Borrowings 9 4,782 5,382
Total non-current liabilies 4,782 5,382
Borrowings 600 600
Other payables 58 54
Total current liabilies 658 654
Total liabilies 5,440 6,036
Total equity and liabilies 91,859 92,617
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
78
STATEMENT OF CHANGES IN EQUITY
(parent company)
Share capital
USD’000
Share
premium
USD’000
Reserve for
cash ow
hedges
USD’000
Retained
earnings
USD’000
Total
USD’000
Equity at 01.01.2023 651 64.441 0 21,686 86,778
Prot for the period 01.01.2023 - 31.12.2023 0 0 0 -197 -197
Fair value change in the year 0 0 0 0 0
Total comprehensive income for the period 0 0 0 -197 -197
Equity at 31.12.2023 651 64.441 0 21,489 86,581
Prot for the period 01.01.2024 - 31.12.2024 0 0 0 -162 -162
Fair value change in the year 0 0 0 0 0
Total comprehensive income for the period 0 0 0 -162 -162
Equity at 31.12.2024 651 64.441 0 21,327 86,419
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
79
CASH FLOW STATEMENT
1 JANUARY - 31 DECEMBER
(parent company)
Noter 2024
USD’000
2023
USD’000
Operating prot -20 -5
Change in net working capital 13 4 178
Cash ow from primary operating activities -16 172
Interests received 0 1
Interests paid -576 -583
Cash ow from operang acvies -592 -409
Repayment of borrowings -600 -600
Proceeds from intergroup borrowings 1,200 1,003
Cash ow from nancing acvies 600 403
Net cash ow for the year 8 -7
Cash and cash equivalents, beginning of the year 4 11
Cash and cash equivalents, end of the year 13 4
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
80
NOTES
(parent company)
Notes
1. Accounting policies
2. Critical accounting estimates and judgements
3. Financial income
4. Financial expenses
5. Tax on prot for the year
6. Investment in subsidiaries
7. Deferred tax
8. Share capital
9. Borrowings
10. Related parties
11. Commitments and contingent liabilities
12. Events after the balance sheet date
13. Changes in net working capital
14. Changes in liabilities arising from nancing activities
15. Capital management
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
81
The Financial Statements for the parent company, TPA Holding I ApS have been prepared in
accordance with IFRS Accounting Standards as issued by the International Accounting Standards
Board (IASB) and as adopted by the European Union as well as additional Danish disclosure
requirements applying to entities of reporting class B.
New standards
The annual report is prepared according to standards and interpretations effective for nancial
years beginning on 1 January 2024. No standards or interpretations have been adopted early.
The parent company has the same accounting policies for recognition and measurement as Group.
The parent company’s accounting policies deviate from the Group’s accounting policies as described
below. For a detailed description of the group’s accounting policies please refer to the consolidated
nancial statements, Note 1.
The functional currency of the parent Company is USD. The nancial statement have been rounded
to the nearest thousand.
Dividend
Dividend from investments in subsidiaries are recognised as income in the parent company prot
and loss account in the year where the dividends are declared.
Investments in subsidiaries
Investments in subsidiaries are measured at cost.
Impairment tests are performed on subsidiaries if events or changes in circumstances indicate that
their carrying amount may not be recoverable. If cost exceeds the recoverable amount, the carrying
amount is written down to the recoverable amount.
The company makes estimates and assumptions concerning the future. The resulting accounting
estimates will, by denition, seldom equal the related actual results. The estimates and assumptions
that have a signicant risk of causing a material adjustment to the carrying amounts of assets and
liabilities within the next nancial year are addressed below.
The judgments, estimates and assumptions made are based on historical experience and other
factors that Management considers to be reliable, but which by their very nature are associated
with uncertainty and unpredictability. These assumptions may prove incomplete or incorrect,
and unexpected events or circumstances may arise. The most critical judgments, estimates and
assumptions for the individual items are described below.
The company is also subject to risks and uncertainties that may lead to actual results differing from
these estimates, both positively and negatively.
Impairment of investment in subsidiary
The group tests, if there are indicators of impairment, whether investment in subsidiary has suffered
any impairment, in accordance with the accounting policy. The recoverable amounts of cash-
generating units will be determined based on value-in-use calculations. These calculations require
the use of estimates.
For a description of other signicant accounting estimates, assumptions and uncertainties please
refer to the consolidated nancial statements, stated in note 2.
It is the managements judgement that no critical accounting estimates and judgements are made
with regards to the accounting principles of the parent company, except for the above described.
1. ACCOUNTING POLICIES 2. CRITICAL ACCOUNTING
ESTIMATES AND JUDGEMENTS
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
82
3. FINANCIAL INCOME
4. FINANCIAL EXPENSES
5. TAX ON PROFIT FOR THE YEAR
2024
USD’000
2023
USD’000
Other interest income 0 1
Interest income from group enterprises 388 378
Total 388 379
2024
USD’000
2023
USD’000
Interest expenses 577 583
Total 577 583
2024
USD’000
2023
USD’000
Current tax:
Current tax on prot for the year -49 -23
Current tax on prot for previous years 0 -8
Total current tax expense -49 -31
Deferred tax:
Temporary differences 3 18
Adjustment to previous years 0 0
Total deferred tax 3 18
Tax for the period -46 -13
Tax for the period is specied as follows:
Calculated 22% tax on prot before tax -46 -46
Tax eects of:
Interest cap limitation 0 41
Adjustments in respect of prior years 0 -8
Total -46 -13
Eecve tax rate 22% 6%
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
83
6. INVESTMENT IN SUBSIDIARIES
2024
USD’000
2023
USD’000
Cost:
At 1 January 95,422 95,422
Additions during the year 0 0
At 31 December 95,422 95,422
Impairment:
At 1 January 7,347 7,347
Impairment charge 0 0
At 31 December 7,347 7,347
Carrying amount 31 December 88,075 88,075
2024
USD’000
2023
USD’000
Deferred tax at 1 January 25 43
Deferred tax recognised in the income statement -3 -18
Deferred tax 31 December 22 25
Deferred tax relates to:
Amortised loan cost, bank debt 22 25
Tax loss carry-forward 0 0
Total 22 25
Name Place of registered oce Vote and ownership
TP Aerospace Holding A/S Valby, Denmark 100%
TP Aerospace Solutions ApS Valby, Denmark 100%
TP Aerospace PRO ApS Valby, Denmark 100%
TP Aerospace Distribution ApS Valby, Denmark 100%
TP Aerospace Asia Pte. Ltd. Singapore 100%
TP Aerospace Americas Corp Las Vegas, US 100%
TP Aerospace Technics LLC Orlando, US 100%
TP Aerospace Technics NV LLC Las Vegas, US 100%
TP Aerospace Technics GmbH Norderstedt, Germany 100%
TP Aerospace Technics Czech s.r.o. Brno, Czech Republic 100%
TP Aerospace Asia Technics Pte. Ltd. Singapore 100%
TP Aerospace Malaysia Sdn. Bhd. Kuala Lumpur, Malaysia 100%
TP Aerospace Technics Pty Ltd. Melbourne, Australia 100%
TP Aerospace Technics UK LTD. United Kingdom 100%
TP Aerospace (Thailand) Co., Ltd. Bangkok, Thailand 100%
7. DEFERRED TAX
The recognised deferred tax asset is attributable to amortised loan costs. In the coming
years the Danish joint taxation group expects earnings and taxable income to be positive
and has accordingly recognised deferred tax asset at 31 December 2024.
Investments in subsidiaries are specied as follows:
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
84
8. SHARE CAPITAL
9. BORROWINGS
For a specication of share capital please refer to note 18 in the consolidated nancial statements.
For a specication of the Company’s borrowings, please refer to note 19 in the consolidated
nancial statements.
The Company is controlled by TPA Holding II A/S. The Company’s ultimate parent company is
CataCap I K/S.
Key management compensation’ is disclosed in note 5 in the consolidated nancial statement.
The following transactions were carried with with related parties:
Expected credit losses – Receivables from group enterprises
At year end, TPA Holding I A/S had receivables from group enterprises amounting to USD 3,700k
(2023: USD 4,490k). The write-downs of receivables from group enterprises are considered
immaterial.
10. RELATED PARTIES
2024
USD’000
2023
USD’000
Transacons with TP Aerospace Holding A/S:
Interest income 362 354
Proceeds from borrowings -816 -953
Total -454 -599
2024
USD’000
2023
USD’000
Transacons with CC Green Wall Invest ApS:
Interest income 26 23
Proceeds from borrowings 26 23
Total 52 46
Transacons with TPA Holding II A/S:
Interest expenses 1 1
Group contribution 1 1
Total 2 2
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
85
11. COMMITMENTS AND
CONTINGENT LIABILITIES
Contingent liabilities
Joint taxaon
The Group companies are jointly and severally liable for tax on the jointly taxed income, etc. for
the Danish companies of the TP Aerospace Group. The total amount of corporation tax payable
is disclosed in the annual report of CC Green Wall Invest ApS which is the management company
of the joint taxation. Moreover, the Group companies are jointly and severally liable for Danish
withholding taxes by way of dividend tax, tax on royalty payments and tax on unearned income.
Any subsequent adjustment of corporation taxes and withholding taxes may increase the Group’s
liability.
Charges and security
As security for bank loans, as well as Group companies’ bank commitments, security in share capital
regarding the subsidiary TP Aerospace Holding A/S nominal USD 0.3m, is effective.
Guarantee obligaons
TPA Holding I A/S has issued a guarantee of payment between the parent company TPA Holding II
A/S and Nordea Danmark, Filial af Nordea Bank AB (publ), Sweden.
Furthermore, TPA Holding I A/S has issued a guarantee of payment between the subsidiaries
TP Aerospace PRO ApS, TP Aerospace Solutions ApS, TP Aerospace Distribution ApS and TP
Aerospace Holding A/S and Nordea Danmark, Filial af Nordea Bank AB (publ), Sweden.
13. CHANGES IN NET WORKING
CAPITAL
12. EVENTS AFTER THE
BALANCE SHEET DATE
No events of importance to the 2024 annual report have occurred after the balance sheet date.
14. CHANGES IN LIABILITIES
ARISING FROM FINANCING
ACTIVITIES
15. CAPITAL MANAGEMENT
For a description of capital management, please refer to note 18 in the consolidated nancial
statements.
2024
USD’000
2023
USD’000
Changes in other receivables 0 224
Changes in trade and other payables 4 -46
Total 4 178
2024
USD’000
2023
USD’000
Cash ow from nancing activities at 1 January 5,981 6,581
Proceeds from borrowings 0 0
Repayment of borrowings -600 -600
Cash ow from nancing acvies at 31 December 5,381 5,981
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
87
Executive Board
Board of Directors
88
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
89
CVR No 33 77 12 31
mne18651
mne35483
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
91
DEFINITION OF
KEY FIGURES
AND FINANCIAL
RATIOS
Denition Description
Net interest-bearing debt
Mortgage debt and debt to credit institutions less cash at bank and
in hand, interest-bearing current investments and receivables.
Net working capital
Inventories + receivables - current liabilities except for corporation
tax receivable/payable as well as mortgage debt and debt to credit
institutions.
Invested capital
Equity, including minority interests + net interest-bearing debt at
year-end.
Free cash ow
Cash ow from operating activities less net investments in
property, plant and equipment and plus dividends from associates.
Return on invested capital
excluding
goodwill (ROIC)
EBITDA before special items as a percentage of average invested
capital, excluding goodwill.
Net interest-bearing debt/ EBITDA
before special items
The ratio of net interest-bearing debt at year end to EBITDA.
Equity ratio Equity at year end as a percentage of total assets.
Return on equity (ROE) Consolidated prot after tax as a percentage of average equity.
Aircraft components Wheel and brake components regardless of accounting treatment
including piece parts.
Special items See Special items note under the “Financial Statements” section.
Denition Description
EBITDA
Earnings before interest, tax, depreciation, amortisation and
impairment losses as well as prot from sale of property, plant and
equipment and amortisation of intangible assets.
EBITDA margin EBITDA as a % of net revenue.
Proforma EBITDA
Adjusted EBITDA reecting the income from government support
schemes in the year where the related costs were incurred instead
of the year where the income was recognised.
Proforma EBITDA margin (%) Proforma EBITDA as a % of net revenue.
EBIT Earnings before interest and tax.
EBIT margin EBIT as a percentage of net revenue.
Proforma EBIT
Adjusted EBIT reecting the income from government support
schemes in the year where the related costs were incurred instead
of the year where the income was recognised.
Proforma EBIT margin (%) Proforma EBIT as a % of net revenue.
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
92
Peter Ryttergaard
Company Funcon
CATACAP OP ApS Executive Management
CATACAP DM ApS Executive Management & Owner
CC Green Wall Invest ApS Board Member, Executive Management
TPA Holding I A/S Deputy Chairman
TPA Holding II A/S Deputy Chairman
CataCap General Partner II ApS Executive Management
CC II Management Invest 2017 GP ApS Executive Management
CataCap DM II ApS Executive Management & Owner
CC Fly Invest ApS Executive Management
Rekom ManCo ApS Executive Management
TPA Green ManCo ApS Executive Management
Globe ManCo ApS Executive Management
CC Toaster Invest ApS Executive Management
Luxplus MIIP ApS Executive Management
CataCap General Partner III ApS Executive Management
CC North Invest ApS Executive Management
CC DAFA Invest ApS Executive Management
DAFA MIIP ApS Executive Management
CC TopCo Invest ApS Executive Management
CC HoldCo ApS Executive Management
CC BidCo ApS Executive Management
CC TAP Invest ApS Executive Management
CC NLM Invest ApS Executive Management
Peter Ryttergaard
Company Funcon
Aern Holdings Limited Deputy Chairman
Aern Limited Deputy Chairman
Atlantic HoldCo Limited Deputy Chairman
Atlantic OfferCo Limited Deputy Chairman
BULDUS EJENDOMME ApS Executive Management & Owner
INVESTERINGSSELSKABET AF 27/12 1985 ApS Executive Management & Owner
RYTTERGAARD INVEST A/S
Board Member, Executive Management
& Owner
TP AEROSPACE HOLDING A/S Deputy Chairman
CATACAP MANAGEMENT A/S Executive Management & Owner
CATACAP GENERAL PARTNER I ApS Executive Management
NLM VANTINGE A/S Board Member
KJÆRULF PEDERSEN A/S Board Member
ADDITIONAL
MANAGEMENT
DUTIES OF
THE BOARD
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
continued
93
Peter Ryttergaard
Company Funcon
NLM Vantinge Group Holding ApS Board Member
NLM Vantinge Group ApS Board Member
NLM Vantinge IP ApS Executive Management
CC TopCo IV Invest ApS Executive Management
CC HoldCo IV ApS Executive Management
CC BidCo IV ApS Executive Management
TAP MIIP ApS Executive Management
CC TopCo V Invest ApS Executive Management
CC HoldCo V ApS Executive Management
CC BidCo V ApS Executive Management
Peter Ryttergaard
Company Funcon
NLM A/S Board Member
Lipitec A/S Board Member
CC Aviation General Partner I ApS Executive Management
ADDITIONAL
MANAGEMENT
DUTIES OF THE
BOARD
Andrew Hoad
Company Funcon
TPA Holding I A/S Board Member
TPA Holding II A/S Board Member
TP Aerospace Holding A/S Board Member
TD Aerospace (UK) Ltd Managing Director
Aern Ltd Board Member
Aern Holdings Ltd Board Member
Atlantic Offer Company Ltd Board Member
Atlantic HoldCo Ltd Board Member
MAAS Aviation Ltd Chairman
Jelly Bean Paint Company Ltd Chairman
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
continued
94
Nina Fisker Olesen
Company Funcon
TP Aerospace Holding A/S Board Member
TPA Holding I A/S Board Member
TPA Holding II A/S Board Member
ELLEPOT A/S Board Member
Danish Horticulture Group A/S Board Member
Nina Fisker Olesen Holding ApS CEO
Globeteam A/S Board Member
Globeteam Holding ApS Board Member
Conrum Holding A/S Board Member
Conrum A/S Board Member
European Stonecraft ApS Board Member
ADDITIONAL
MANAGEMENT
DUTIES OF THE
BOARD
Flemming Jensen
Company Funcon
TPA Holding I A/S Chairman
TPA Holding II A/S Chairman
TP Aerospace Holding A/S Chairman
DSB CEO
The Confedeation of Danish Industry Member of the Central Board
Employers of Industry in Denmark Board Member
Naviair Chairman
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
continued
95
Vilhelm Hahn-Petersen
Company Funcon
CC BidCo ApS Executive Management
CC BidCo IV ApS Executive Management
CC BidCo V ApS Executive Management
CC DAFA Invest ApS Executive Management
CC Fly Holding II A/S Deputy Chairman
CC Fly Invest ApS Executive Management
CC Globe Invest ApS Executive Management
CC Green Wall Invest ApS Chairman
CC HoldCo ApS Executive Management
CC HoldCo IV ApS Executive Management
CC HoldCo V ApS Executive Management
CC II Management Invest 2017 GP ApS Executive Management
CC Mist NEW Holding II ApS Chairman
CC NLM Invest ApS Executive Management
CC North Invest ApS Executive Management
CC TAP Invest ApS Executive Management
CC Toaster Holding I ApS Board Member
CC Toaster Holding II ApS Board Member
CC Toaster Invest ApS CEO
CC TopCo Invest ApS Executive Management
CC TopCo IV Invest ApS Executive Management
CC TopCo V Invest ApS Executive Management
DAFA A/S Chairman
Vilhelm Hahn-Petersen
Company Funcon
Aern Holdings Limited Board Member
Aern Limited Board Member
Airhelp Inc. Board Member
Atlantic HoldCo Limited Board Member
Atlantic OfferCo Limited Board Member
CATACAP DM ApS Executive Management, Owner
CataCap DM II ApS Owner, Executive Management
CATACAP GENERAL PARTNER I ApS Executive Management
CataCap General Partner II ApS Executive Management
CataCap General Partner III ApS Executive Management
CATACAP MANAGEMENT A/S Executive Management
CATACAP OP ApS Executive Management
CC Aviation General Partner I ApS Executive Management
ADDITIONAL
MANAGEMENT
DUTIES OF THE
BOARD
continued
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
96
Vilhelm Hahn-Petersen
Company Funcon
DAFA Group A/S Deputy Chairman
DAFA Holding I ApS Deputy Chairman
DAFA Holding II ApS Deputy Chairman
DAFA MIIP ApS Executive Management
Globe ManCo ApS Executive Management
LUXPLUS ApS Board Member
Luxplus MIIP ApS Executive Management
MYCO ApS Executive Management, Owner
NLM Vantinge IP ApS Executive Management
Rekom Group A/S Chairman
Rekom Group Holding ApS Chairman
Rekom ManCo ApS Executive Management
TAP MIIP ApS Executive Management
TP Aerospace Holding A/S Board Member
TPA Green ManCo ApS Executive Management
TPA Holding I A/S Board Member
TPA Holding II A/S Board Member
ADDITIONAL
MANAGEMENT
DUTIES OF THE
BOARD
Mike Humphreys
Company Funcon
TP Aerospace Holding A/S Board Member
TPA Holding I A/S Board Member
TPA Holding II A/S Board Member
GHF Advisory Ltd. Executive Management
Aern Ltd Board Member
Aern Holdings Ltd Board Member
Atlantic HoldCo Limited Board Member
Atlantic OfferCo Limited Board Member
Peter Lyager
Company Funcon
TPA Holding I A/S Board Member
TPA Holding II A/S Board Member
TP Aerospace Holding A/S Board Member
PETER LYAGER HOLDING ApS Executive Management
Dancing Monkey Holding ApS Executive Management
Dancing Minds ApS Executive Management
OVERVIEW STRATEGY & BUSINESS SUSTAINABILITY RISK MANAGEMENT MANAGEMENT FINANCIAL STATEMENTS OTHER INFORMATION
97
COMPANY
DETAILS
The Company
TPA Holding I A/S
c/o TP Aerospace
Kirsten Waltherrs Vej 12,
2500 Valby
Telephone: +45 8993 9929
CVR no.: 38473492
Registered in Valby
Financial period:
1 January - 31 December 2024
Website: www.tpaerospace.com
Email: sales@tpaerospace.com
Board of Directors
Jens Flemming Jensen
Peter Ryttergaard
Andrew Hoad
Peter Lyager
Nina Fisker Olesen
Vilhelm Hahn-Petersen
Michael John Humphreys
Executive Management
Nikolaj Lei Jacobsen
Tinneke Torpe
Felix Ammann
Nicolai Hertz