ANNUAL
REPORT
2022
MAKING WASTE OUR
INFINITE RESSOURCE
Combineering Holding A/S
CVR no: 29533261
Bistrupvej 176
3460 Birkerød
Denmark
General Meeting
29 May 2023
Chairman: Michael Thiesen
Combineering Holding A/S | 2
ANNUAL
REPORT
2022
MAKING
WASTETOX®
A GLOBAL
PHENOMENON
Published by
Combineering Holding A/S
Bistrupvej 176
DK – 3460 Birkerød
+45 45 58 40 40
www.combineering.dk
Design
LEAD Agency & Primetime
Photographer
Lisbeth Hjorslev
Emil Møller
Publication
January 2023
@ Combineering Holding A/S
Combineering Holding A/S | 5
RECORD-BREAKING
RESULT IN A
TUMULTUOUS TIME
Combineering was founded more than 40 years ago with the intention of contributing to a
sustainable future, by converting waste into an infinite resource. An approach we call ‘Waste-to-X®’.
The company’s activities have continuously grown over the years, reaching an all-time high in 2022,
thus beating the previous record result from 2021. This year our business of providing innovative
waste-handling solutions for international businesses and public entities yet again expanded into
new markets, resulting in record-breaking sales, operating profit, and positive
cash flow.
Combineering Holding A/S | 6
REVENUE
310.3 MDKK
(50%)
2022
↑
206.7 MDKK
2021
EBITDA BEFORE
SPECIAL ITEMS
37.0 MDKK
(161%)
2022
↑
14.2 MDKK
2021
GROSS PROFIT
73.8 MDKK
(53%)
2022
↑
48.1 MDKK
2021
CASH FLOW FROM
OPERATING ACTIVITIES
29.6 MDKK
(28%)
2022
↑
23.2 MDKK
2021
FINANCIAL HIGHLIGHTS
Combineering Holding A/S | 7
CONTENTS
5 ���� FINANCIAL HIGHLIGHTS
7 ���� OUR PURPOSE
8 ���� LETTER FROM THE CEO
10 ���� OUR BUSINESS
14 ���� WHO WE ARE
15 ���� BOARD OF DIRECTORS
20 ���� ESG STRATEGY
28 ���� CAREER
29 ���� LETTER FROM THE CFO
31 ���� FINANCIAL REVIEW
33 ���� MANAGEMENT’S STATEMENT ON THE ANNUAL REPORT
34 ���� INDEPENDENT AUDITOR’S REVIEW
36 ���� COMPANY INFORMATION
37 ���� CONSOLIDATED STATEMENTS
42 ���� NOTES TO CONSOLIDATED STATEMENTS
65 ���� PARENT INCOME STATEMENTS
MANAGEMENT REVIEW
FINANCIAL STATEMENTS
Combineering Holding A/S | 8
MAKING WASTE-TO-X® A
GLOBAL PHENOMENON
A key to reduce global CO2 emissions is to secure a truly sustainable waste transition on a global
scale. To do that, waste need to be recycled multiple times, thus making it an infinite resource.
This is what we call Waste-to-X® and what we want businesses all over the world to be a part of.
At Combineering we have more than 40 years of experience developing first-in-class waste-
handling solutions, which can be implemented across the globe. Our methods stand out because
they consist of highly specialized solutions based on proprietary knowledge. Each solution is
developed to maximize recycling rates, reduce waste, and reduce CO2 emissions.
We identify Combineering as a GreenTech company, where we develop specialized solutions
and then enter long-term contracts with multiple suppliers and receivers, thereby generating
long-term recurring revenue. This includes helping our business partners manage logistics,
notifications, and ensuring full legal compliance.
Over more than four decades, we have shown the potential of waste and the many opportunities it
presents. With our innovative and professional approach to sustainable waste-handling, we strive
to improve existing technologies. Our technology has currently been implemented in more than 25
countries worldwide in both international businesses and public entities.
We work every day to make optimal waste usage a global phenomenon.
OUR PURPOSE
Combineering Holding A/S | 9
In many ways, 2022 has provided us with some of the
most significant challenges we have seen in recent
years, as rising geopolitical tensions have changed the
foundation for many companies. But even though many
companies have experienced setbacks caused by external
factors, Combineering has continued its impressive
growth. I am convinced we will continue this journey in
the years to come.
The current conditions have made it increasingly
important to prioritize and focus on optimizing the
business. With more than 40 years of experience in a
highly specialized field, we have a very solid foundation
and market position as the largest developer of advanced
waste recycling and waste recovery solutions. A position
we plan to maintain.
When we set a new strategic course back in 2019,
focusing more on growth acceleration and company
expansion, we planned to invest even more into R&D to
invent more innovative waste-handling solutions. Since
then, we have stayed well ahead of schedule, while
updating the strategy to always be on the forefront and
able to make rational long-term decisions. Looking back,
we predicted the need for secondary raw materials and
more energy. It was correct then, it is correct today, and
it will be correct in the future.
At Combineering, we are very optimistic looking into
2023, and we are certain we can maintain our growth
rates despite rising interest rates and a potential
recession on the horizon. Because even though the
landscape has changed in the last year, our solutions
are still an important part of the green transition, and
the demand for our approach which we define as Waste-
to-X® remains ever-strong. We share a common goal
with most businesses, which is to minimize the carbon
footprint on a global level. In other words, the potential of
Combineering is expanding, and we are ready to continue
helping businesses make waste into an infinite resource.
Back in 2019, we also agreed to complete our planned
generational change by selling some of the shares before
the year 2025. This process was finalized in Q1 2023.
The shareholders were most happy to let Combineering
join forces with the British Reconomy Group. As a world
market leader within the circular economy, our new
owner has acquired Combineering for strategic reasons.
Whereas other companies within the Reconomy Group
are more specialized in IT and the front end of the supply
chain, Combineering may now supplement our advanced
system solutions and implementation knowledge. Many
synergies between group members are to be expected
in the new set-up with more than 5000 employees in 120
countries.
Our existing customers and partners may rest assured
that Combineering will work even harder to always bring
them our best solutions and services under our own
brand. With new organizational and financial muscles,
we are looking forward to also servicing many new
customers and markets worldwide.
Our expansion and growth set new standards and
requirements for Combineering, and I look forward to the
many challenges ahead of us. We are entering an exciting
year and we are looking forward to continuing to make
our mark on the global green agenda.
LETTER FROM THE CEO
Combineering Holding A/S | 10
“… the potential of Combineering
is expanding, and we will do our
best to ensure that businesses
keep making waste into an
infinite resource”
Carsten Park Andreasen
Group CEO
Combineering Holding A/S | 11
OUR BUSINESS
Combineering is founded based on a visionary approach
of reducing CO2 emissions through innovative waste-
handling solutions. Since then, we have worked
intensively towards promoting our leading solutions, thus
making ‘Waste-to-X®’. Combineering’s extensive network
and expertise built over decades, allow private as well as
public companies around the world to find better ways to
utilize their waste to reduce emissions, increase profits,
and thereby securing a better future for the planet.
We develop a standardized waste recycling solution for
an entire industry which can then be customized for each
customer.
Our recycling solutions can also bring value across
many industries, as we take waste from one industry
and recycle it into new valuable resources for another
industry.
Agriculture
Energy
Production
Chemical industry
Construction
BIO
Biogas
Household
W
A
S
T
E
R
E
S
O
U
R
C
E
S
Combineering Holding A/S | 12
COMBINEERING
FOCUSES ON RECYCLING
AND RECOVERY OF
RESOURCES IN THREE
SECTORS:
BIOGAS &
AGRICULTURE
Biologically degradable waste and by�
products from food production, chemical
synthetisation, pharma� and medical
industry.
By�products from the food and pharma
industries, off�spec products, waste derived
from agricultural production is developed to
be used as fertiliser and feedstuff.
BIOFUELS,
ALTERNATIVE ENERGY &
SPECIAL TREATMENT
Waste wood, off�spec grain and similar,
vegetable oils and waxes, wood chips,
powders and fibres.
RDF (Refuse Derived Fuel), SRF (Solid
Recovered Fuel), powders, granules and
solvents.
Hazardous wastes and similar difficult
waste fractions.
MINERALS / MATERIALS
Minerals, slags, ashes, metals, glass, pla�
stics, textiles and similar materials, suitable
for recycling or recovery.
Combineering Holding A/S | 13
Climate change and resource scarcity have led to a
greater demand for solutions that use resources more
efficiently. Public and political attention on this issue
will inevitably lead to extensive new legal require-
ments, while at the same time a growing global middle
class will create more waste than ever before. This
will increase demand for the circular waste- handling
solutions that Combineering offers.
Combineering has extensive experience and knowledge
in combining suppliers and receivers across industries,
which is valuable as it increases the opportunities
to be innovative and create unique and sustainable
solutions from different waste fractions.
Combineering makes it easy for companies to tap into the
circular economy as we create solutions and take care of
all the inter mediate steps from supplier to receiver.
UNIQUE BUSINESS MODEL
Combineering plays a pivotal role and holds a unique po-
sition in which we both profit from removing waste from
a supplier and in some cases also profit from delivering
that resource to a receiver.
OUR BUSINESS
RISING DEMAND FOR
CIRCULAR RESOURCE
HANDLING
Suppliers and receivers
implement one of
Combineering’s solutions
Suppliers: With one of
Combineering’s solutions
the suppliers’ waste
will be recycled at their
facility and become a new
alternative resource.
Receivers: When one of
Combineering’s solution
is implemented, they can
use some of the suppliers’
recycled waste as an
alternative resource.
1
When implemented, Combineering generates recurring revenue for every ton of
waste from their suppliers to their receivers. Both suppliers and receivers commit
to a certain amount of waste/alternative resources every year and enter long�term,
exclusive contracts with Combineering
2
150 back�to�back contracts
handled daily
Combineering ensures regulatory approval
and completes compliance
with relevant waste directives.
Combineering arranges CO
2
-friendly
transport via 3
rd
party logistics companies.
Recurring
revenue
per ton
of waste
+160 suppliers
within multiple industries
Suppliers commit to
deliver a certain ton
of waste yearly.
+40 Receivers
within 6 industries
Receivers commit to
obtain a certain ton of
recycled waste yearly.
Recycled waste / new alternative resources
Recurring
revenue
per ton
of waste
Combineering Holding A/S | 14
AN INTERNATIONAL COMPANY WITH GLOBAL PRESENCE
Combineering is a European-based company located in Denmark, Czech Republic, Germany,
Ireland, Italy, Poland, Sweden, United Kingdom, and Ukraine. Moreover, the company has an
extensive network of partners and collaborators in Europe, North America, South America,
and Asia.
Currently, Combineering has helped partners implement waste-handling
solutions in 25 countries around the world.
OUR CUSTOMERS
Combineering has more than 200 customers – many of which are first in class in their
respective field. Throughout the last 40 years, Combineering has supported customers in
implementing state of the art waste-handling solutions and in delivering valuable recycled
resources. With the help of Combineering, our customers generate profits, cut costs,
increase efficiency, and reduce their CO2 footprint, thus contributing to a greener planet.
Trade in
Combineering Holding A/S | 15
WHO WE ARE
Combineering has a dedicated management team with
a strong industry understanding, circular know-how
and a vision to create the future of tomorrow. The
team consists of the same powerful profiles who in
cooperation ensure that Combineering’s purpose and
green agenda expand to new and bigger markets. The
Board of Directors consist of five profiles, including one
of the founders of Combineering, two internal members
and two external members with strong competences
within international general management, sustainability,
and large-scale supply chain management. In 2022 the
management team and Board of Directors has shown
a great collaboration due to an all over consistency by
which everyone works for the same purpose.
BOARD OF DIRECTORS
EXECUTIVE MANAGEMENT
Carsten Park
Andreasen
Group CEO
Lars Vedel
Jørgensen
Member of the
board
Guy Richard
Wakeley
Chairman of the
Board
Claus Bech
Executive Vice
President
Operations
Jeanette Fangel
Løgstrup
Member of the
Board
John Terence
Sullivan
Member of the
Board
Lars Sylvester
Larsen
Vice President
Sales & Marketing
Claus Karup
Rasmussen
Member of the
Board
Kim Bjørn
Christensen
Group CFO
MANAGEMENT
Combineering Holding A/S | 16
BOARD OF DIRECTORS
GUY RICHARD WAKELEY
Chairman
Considered independent No
Profession CEO, Reconomy Group
Part of Combineering since 01.03.2023
Competences Career-long experience of delivering growth in the
engineering, construction, and services industries.
He has recent and relevant experience in international M&A,
technology disruption and large-scale operational leadership
and transformation.
Prior to joining Reconomy, Guy was chief executive – of
services for IWG, the world’s largest provider of flexible
workspace. Previously he was Chief Executive of Equiniti
Group plc, the FTSE 250 provider of share-dealing, payment
platforms, and services to the biggest businesses in the UK
and the US. Guy led Equiniti since 2013 and delivered its
flotation on the main market of the London Stock Exchange
and expansion into the American and European markets.
Guy’s earlier career spans numerous blue-chip organisations
including Morrison, General Electric, and Rolls-Royce.
Board experience Combineering Holding A/S - Chairman (2023 - present)
Combineering A/S - Chairman (2023 - present)
Reconomy Group - Board member (2023 - present)
LARS VEDEL JØRGENSEN
Member of the Board
Considered independent No
Profession Consultant
Part of Combineering since 01.03.1996
Competences Competent insight in many different sectors like: All kind of
recycling facilities, biogas plants, sewage treatment plants,
composting plants, plastic recycling plants, incineration
plants, plants for recovery of metals from slag, steel in-
dustries, aluminium industries, oleochemicals industries,
mineral wool plants, tile plants etc.
Board experience Combineering Holding A/S - Board member (2023 - present)
Combineering A/S - Board member (2023 - present)
Combineering Holding A/S – Chairman (2021 – 2023)
Combineering A/S – Chairman (2020 – 2023)
Combineering A/S – Board member (2006 – 2020)
Combineering Materials ApS – Board member (2016 – 2019)
Combineering Holding A/S | 17
JOHN TERENCE SULLIVAN
Member of the Board
Considered independent No
Profession CFO, Reconomy Group
Part of Combineering since 01.03.2023.
Competences John joined Reconomy in 2016 as Chief Financial Officer,
with a remit to drive the next phase of the group’s ambitious
growth plans. Prior to joining Reconomy, John served as
CFO, CCO and Head of EMEA of Radius, a private equity
backed outsourcing business. He brings a wealth of relevant
experience to the team from other senior roles held in high
growth and leveraged service businesses in different sectors
across the UK and abroad.
During his time with Reconomy, John has now overseen
twenty five successful acquisitions as part of Reconomy’s
strategic plan. He has headed several business improvement
projects and process automation initiatives improving effi-
ciency within Reconomy’s finance and reporting functions.
Board experience Combineering Holding A/S - Board member (2023 - present)
Combineering A/S - Board member (2023 - present)
Reconomy Group - Board member (2016 - present)
Combineering Holding A/S | 18
JEANETTE FANGEL LØGSTRUP
Member of the Board
Considered independent Yes
Profession CEO, Executive Advisor and Investor, Expon ApS
Part of Combineering since 01.10.2021
Competences International general management, corporate communica-
tions/investor relations, sustainability & ESG, digitalisation
& customer experience, marketing & branding, corporate
culture & diversity.
Solid board experience including highly regulated industries
with focus on governance, audit, risk, compliance and
controls.
Board experience Cowi Holding – (2023 – present)
Scandinavian Film Funds – (2022 – present)
Sovino Brands – (2022 – present)
Danske Invest – (2022 – present)
Combineering Holding A/S (2021 – present)
Andel Energi – Board member (2021 – present)
Danish Foundation for Entrepreneurship – Board member
(2020 – present)
JP Politiken Media Group A/S – Board member
(2009 – present)
MobilePay A/S – Board member (2017 – 2019)
Danica Pension Group – Board member (2016 – 2019)
Danske Bank Plc, Finland – Board member and Chairman of
the Nomination Committee (2014 – 2018)
Keylane, previously Schantz Data A/S – Board member
(2012 – 2017)
Combineering Holding A/S | 19
CLAUS KARUP RASMUSSEN
Member of the Board
Considered independent Yes
Profession Managing Partner, Surge ApS
Part of Combineering since 01.10.2021
Competences International general management, supply chain mana-
gement and international logistics, business strategy,
operational excellence, recruitment, management consulting,
corporate culture development and accelerated growth.
Extensive experience as an angel investor and Board mem-
ber in privately owned companies in different industries for
the past 10 years.
Board experience Combineering Holding A/S (2021 – present)
Copenhagen Airtaxi A/S – Chairman of the board (2021 – present)
Conecto A/S – Board member (2020 – present)
Momio APS – Chairman of the board (2017 – 2020)
Qator A/S – Board member (2013 – 2018), Chairman of the
board (2018 – 2020)
Frida Forsikring Agentur A/S – Board member (2011 – 2020)
YSWS A/S – Board member (2014 – 2019)
Bolighandel ApS – Board member (2014 – 2017)
VNL A/S – Board member (2013 – 2014)
Maersk Tunisia, Maersk Algeria, LTI S.A. and Maersk France
Group – Board member (2003 – 2005)
Maersk Logistics Switzerland and Maersk France Group –
Board member (2002 – 2003)
Combineering Holding A/S | 20
Combineering Holding A/S | 21
ESG STRATEGY
ENVIRONMENT
Combineering strives to develop a sustainable world
that benefits not only the current population but also
future generations. At Combineering we contribute to
a sustainable world by engaging with and assisting
industries that produce huge amounts of waste. We
utilize solutions for these industries, by transforming
the produced waste into infinite resources. Our purpose
allows us to make a positive, green, and sustainable
addition to the environment and to our world.
Our vision: we develop innovative and unique solutions
that all has the capability to transform enormous
amounts of waste into usable resources. In an ideal
world, all waste is recycled, and nothing is disposed
of. All residues should be recycled – in a way that both
creates value and is environmentally sustainable.
Our recycling solutions support the following Global
Sustainable Development Goals. Our promises are:
7.2: We will supply non-recyclable
waste to high efficiency waste-to-
energy facilities.
9.4: We will continuously work to
help the industry reducing their
environmental and climate footprint
by developing and supplying new raw
materials recycled and recovered from
waste. We will help our industrial
customers integrate the use of such
raw materials in their processes
both from a technical, legal, and
environmental point of view.
11.6: We will secure recycling and
recovery of municipal waste fractions.
12.2: We will contribute to the
reduction of the use of natural
resources by substituting virgin
raw materials with alternative raw
materials recovered from waste and
residues.
12.4: We will use all our skills to make
sure that all the waste we handle,
both hazardous and non-hazardous
is managed in a safe and sustainable
way and according to relevant
regulation.
12.5: We will support national
recycling rate policies and regulation
by searching for and developing
the best possible recycling solution
under the given economical frame.
This comes with a twist as we know
sometimes you can recycle more tons
of waste by choosing a lower recycling
quality. Therefore, this will always
be an evaluation of what makes most
sense.
13.2: We will contribute to lower
greenhouse gas emissions by
developing and supplying alternative
raw materials recovered from waste
and residues. We will endeavor to
reduce our internal emissions by using
solar panels, buying green energy and
through our car and travel policies.
14.1: When we are involved in
recycling plastics and other waste
materials that have a potential
negative marine impact, we will make
sure not to supply such waste to
customers or countries that are not
likely to maintain sufficient standards
to prevent parts of the waste entering
the ocean.
Combineering is a company that not only specializes in innovative waste-handling solutions but also empowers other
businesses in their growth into more sustainable enterprises by turning waste into valuable resources. We take pride in
developing innovative solutions that all aim to reduce waste, maximize recycling and reduce CO2 emissions. Currently, we are
on an ESG journey. As such, we will continue to improve and strengthen our ESG activities and external reporting in the coming
years.
Below is an extract of what relevant stakeholders can expect from Combineering.
Combineering Holding A/S | 22
Combineering Holding A/S | 23
COMBINEERING’S SHADES OF
GREEN
Combineering’s ’greenness’ has been evaluated
by CICERO Shades of Green assessment covering
2022. CICERO is Norway’s foremost institute for
interdisciplinary climate research.
In 2022, 100 % of revenue and operating costs received a
‘Shade of Green’. 100 % of capital expenditures received a
‘Shade of Green’. Reducing resource use and developing
better recycling and material recovery solutions are key
to a low-carbon future. The extraction and processing of
new resources are estimated to account for half of the
global greenhouse gasses and in addition cause other
negative environmental impacts.
SHADES OF GREEN EXAMPLES
Dark Green is allocated to projects and solutions that correspond to the long-
term vision of a low carbon and climate resilent future.
Revenue 2022 Operating costs (OPEX) 2022 CAPEX 2022
Solar power plants
Energy efficient buildings
Hybrid road vehicles
Healthcare services
New oil exploration
Medium Green is allocated to projects and solutions that represent significant
steps towards the long-term vision but are not quite there yet.
Light Green is allocated to transition activities that do not lock in emissions. These
projects reduce emissions or have other environmental benefits in the nearm term
rather than representing low carbon and climate resilient long-term solution.
Yellow is allocated to projects and solutions that do not contribute to the transition
to a low carbon and climate resilient future. This category also includes activities
with too little information to assess.
Red is allocated to projects and activities that have no role to play in a
low-carbon and climate resilent future. These are heaviest emitting assets, with
the most potential for lock-in of investments and risk of stranded assets.
Dark Green
Medium Green Light Green Yellow Red
°C
°C
°C
°C
°C
0%
29%
21%
50%
0%
31%
15%
53%
0%
85%
6%
9%
Combineering Holding A/S | 24
GHG EMISSIONS
Combineering calculated its scope 1, 2, and 3 emissions,
as well as the avoided emissions from replacing various
raw materials with waste and by-products. The company
will strengthen its methodologies for these calculations
going forward.
Combineering started calculating its scope 1, 2, and 3
emissions in 2020 and has reported on emissions in
its annual report since 2021. The emissions inventory
has not been externally reviewed, but the company has
cooperated with several partners for the methodologies
and assumptions used to calculate both emissions and
avoided emissions. Combineering is planning to further
develop its methodologies for emissions calculations in
cooperation with the Danish Technical University.
SUMMARY OF COMBINEERING’S GHG EMISSIONS AND MAIN EMISSION REDUCTION TARGETS
Emissions (CO
2
e) Scope 1 Scope 2 Scope 3
Main targets
2025
<100 g/ton waste
-42%/ton waste
<30 g/ton waste
-35%/ton waste
Target not yet set
2022 44
134 g/ton waste
1
3 g/ton waste
10,030 ton
30 kg/ton waste
3.5% of emissions avoided
2021
71
173 g/ton waste
19
46 g/ton waste
9,242 ton
23kg/ton waste
4.4% of emissions avoided
Change 2022-2021
(in tonnes CO
2
e)
-27 -18 788
Main sources
Fuel for
company vehicles
Electricity and natural gas.
Purchased guarantees of origin
for renewable energy.
Transport purchased
from third parties
Scope 1 is calculated by the total consumption of diesel
i 2022 multiplied by the average GHG emission per liter.
The lowered scope 1 GHG emission is the result of having
fewer fossil fuel cars throughout 2022.
Scope 2 is calculated by the average GHG emission
from natural gas and net electricity alongside the usage
throughout the year. The lowered scope 2 GHG emission
is due to the usage of biogas from February 2022.
Scope 3 is calculated by having the GHG emission for
each logistics solution throughout the year depending on
whether the solutions are through vessel, rail or truck.
The increase in the tonnage for scope 3 is due to the
activity level for Combineering in 2022 compared to 2021.
Combineering Holding A/S | 25
SUMMARY OF COMBINEERING’S ESTIMATIONS OF EMISSIONS AVOIDED BY REPLACING RAW MATERIALS WITH INPUTS
BASED ON WASTE
Year Residual waste recovered (ton) Emissions avoided (t CO
2
e)
6
2022
327,852 285,367
2021 410,552 211,239
2020 366,560 180,404
COMBINEERING’S ENERGY MIX 2022
Energy type Amount Percent Comments
Electricity from grid 35 552 kWh 73%
Combineering purchases
guarantees of origin
for renewable energy.
Electricity from own
solar panels
6 761 kWh 14%
Solar panels installed
in head office
Heat from biogas 6 366 kWh 13%
Switched from natural
gas to biogas early 2022.
Combineering calculates the GHG emission avoided
per tonnage moved when logistics solutions are
implemented. GHG Emissions avoided is calculated by the
mixture of which logistics solutions used and the actual
tonnage moved. The increase in GHG emissions avoided
is due to the increase in the activity level in 2022.
Combineering Holding A/S | 26
DISCRIMINATION POLICY
It is Combineering’s policy to attract and retain the best
qualified people available with no regard to race, color,
religion, national origin, gender, sexual orientation,
gender identity, age, physical or mental disability, or
veteran status. Our non-discriminatory policy applies to
applicants as well as employees and covers all terms and
conditions of employment, including recruiting, hiring,
transfers, promotions, terminations, compensation and
benefits.
We do not tolerate discrimination or harassment based
on any of the above factors as well as retaliation against
a person who has made a complaint or given information
regarding possible violations of this policy. Our non-
discrimination policy should and will be taken serious.
UNDERAGE LABOR AND FORCED LABOR
An employment with Combineering is voluntary and
comply with applicable laws and regulations. We are
therefore opposed to slavery, human trafficking, forced
labor and child labor and we are committed to complying
with applicable laws prohibiting such exploitation.
Combineering’s terms of trade and standard contracts
include a Code of Business Ethics and we expect both our
customers and suppliers to apply to these ethical rules in
the same way we do.
External BoD 50 % female
BoD 20 % female
Management 20 % female
Team management 50 % female
Employees 39 % female
10 different nationalities
46 % Master degree
27 % Bachelor degree
27 % Academy Profession
Age from 27 to 66
Combineering Holding A/S | 27
GOVERNANCE
CORPORATE GOVERNANCE
In order to strengthen Combineering’s long-term
competitiveness the company management finds
corporate management a key element. The Management
of Combineering has been planned to ensure that the
company meets its obligations to its stakeholders in the
best possible way and to support the long-term value
creation.
BOARD OF DIRECTORS
The Board of Directors consists of five members, one
of which is the founder of Combineering, two other
internal board members and two of which are external
professional board members. The board members are
elected by the annual general meeting for a one-year
term.
The work done by the Board of Directors is specified
in the Rules of Procedure which are evaluated at
least once a year. Combineering complies with the
recommendations regarding its members and the rules
of procedure being adjusted to the company’s needs. The
Board of Directors meets four times a year or more if
necessary. Five meetings were held in the 2022 financial
year, including an extraordinary general meeting in May
2022.
The Board of Directors also serve as the audit committee.
EXECUTIVE MANAGEMENT
Executive Management is appointed by the Board of
Directors, which specifies the Executive Management’s
terms of employment. Executive Management
is responsible for the day-to-day operations of
Combineering, including Combineering’s business-
related and operational development, its results and its
internal affairs. The Board of Directors’ delegation of
responsibility to the Executive.
Management is specified in the company’s rules
of procedure and the Danish Companies Act.
Combineering’s Executive Management consists of two
executive managers.
Combineering Holding A/S | 28
ONE OF OUR KEY
VISIONS IS THAT
OUR EMPLOYEES
WORK WITH
FREEDOM WITH
RESPONSIBILITY
CAREER
Throughout 2022 the average number of employees
at Combineering was 35. The company headquarter is
located in Birkerød, Denmark just north of Copenhagen.
However, Combineering have employees and consultants
stationed in multiple countries in Europe. Combineering
is a growing company both when it comes to employees
and the bottom-line figures which illustrates a company
in progress on several parameters.
Combineering is an international company, with daily
cross-border collaborations with both employees and
clients. We strive in an international environment, which
is a must when working with an international agenda
such as the green transition and the green transition
is exactly what makes a job in Combineering a fulfilling
employment.
We describe the company work environment as a
creativity hub, where innovation, technical expertise, and
pride come together in a community feeling between all
our colleagues across the continent. At Combineering
the work structure is non-hierarchical, which in our
experience increases our employee’s ability to thrive and
perform to the best of their ability. In other words, one of
our key visions is that our employees work with freedom
with responsibility.
Combineering Holding A/S | 30
Once again, I am delighted to say, that the past year has been historic
for Combineering, as we have delivered the best company result to
date. We managed to improve last year’s record-high revenue, EBITDA
before special items, and increased our cash, thus bolstering the
company during difficult geopolitical circumstances.
The turmoil caused by the war in Ukraine with spill over effects such
as rising inflation and surging energy prices have hit many businesses
financially. However, Combineering is in a unique position due to the
heavy demand for our innovative and advanced solutions with long-
term contracts, as well as the fact that the green transition is still
imminent despite global uncertainty.
Seen from our end, these results mark just the beginning, and I am
confident that we have the best years ahead of us. Since 2019 when we
shifted to the current strategy, our growth trajectory has been high, but
steady. This last year is no exception. We have signed many contracts
with new and existing clients, which has improved our recurring
revenue, thereby securing a steady income in the years to come.
For many companies, this would be linked with a surge in new
employees, and we are expecting to continue hiring throughout 2023 to
maintain our level of service to customers in more than 25 countries.
However, since our partners handle day-to-day operations, we have
detailed knowledge of how many employees we need to maintain
our level of service. But the growth across all metrics means we are
looking for a new headquarter, which will suit our ambitions for the
coming years.
LETTER FROM THE CFO
Combineering Holding A/S | 31
“… Combineering is in a unique
position due to the heavy demand
for our innovative and advanced
solutions with long-term contracts,
as well as the fact that the green
transition is still imminent despite
global uncertainty ”
Kim Bjørn Christensen
Group CFO
Combineering Holding A/S | 32
FINANCIAL
HIGHLIGHTS
2022 2021 2020 2019 2018
TDKK TDKK TDKK TDKK TDKK
PROFIT AND LOSS ACCOUNTS
Revenue
310,258 206,749 165,233 - -
Cost of sales
(236,456) (158,695) (126,620) - -
Gross profit
73,802 48,054 38,613 23,070 23,922
EBITDA before
special items
36,955 14,182 9,825 - -
EBITDA after
special items
28,683 15,649 5,825 - -
Operating profit
before special items
34,488 11,534 7,650 5,608 6,328
Operating profit
after special items
26,216 13,001 3,650 5,608 6,328
Net financials
(563) (597) (532) (697) 127
Profit for the year
19,050 9,944 2,470 3,695 4,807
BALANCE SHEET
Total assets
92,971 66,641 50,296 52,422 46,581
Equity
36,325 26,275 19,728 17,342 18,374
CASH FLOWS
Operating
activities
29,614 23,240 10,658 (5,029) 12,393
Investing activities
(5,740) (4,207) (3,274) (8,960) (2,662)
Hereof investments
in tangible fixed
assets
(5,931) (4,288) (3,484) (10,107) (3,220)
Financing
activities
(11,944) (5,049) (6,872) 1,506 (2,625)
Net cash flow for
the year
11,930 13,984 512 (12,539) 7,106
EMPOLYEES
Average number of
employees
35 30 28 29 27
KEY RATIOS
Solvency ratio (%)
Operating margin (%)
ROE - return on
equity (%)
ROI - return of
investment (%)
39 %
8 %
52 %
28 %
39 %
6 %
38 %
20 %
39 %
2 %
13 %
7 %
34 %
-
21 %
11 %
39 %
-
28 %
14 %
Key ratios have been calculated and applied in accordance with the Recommendations and Financial Ratios issued by the Danish Society of
Financial Analysts. Refer to accounting policies for the definitions of key ratios. The company has implemented IFRS on 1 January 2020. The
comparative figures for 2018 to 2019 are presented in accordance with the Danish Financial Satements Act.
FINANCIAL REVIEW
KEY FIGURES
Combineering Holding A/S | 33
REVENUE
Revenue in 2022 increased from 206.7 MDKK to 310.3
MDKK, which is an increase of 50% compared to 2021.
The growth is especially related to alternative energy and
special treatment according to the 2025 strategy.
GROSS PROFIT
Gross profit in 2022 increased from 48.1 MDKK to 73.8
MDKK, which is an increase of 53% compared to 2021.
The growth in gross profit can be attributed to both
new and existing customers. Accordingly, the gross
profit margin increased from 23.2% in 2021 to 23.8% in
2022. This increase was reached despite geopolitical
uncertainty and increased costs of logistics.
EBITDA BEFORE SPECIAL ITEMS
EBITDA before special items in 2022 increased from
14.2 MDKK to 37.0 MDKK, which is an increase of 161%
compared to 2021. The growth in EBITDA before special
items is caused by growing revenue and increased gross
profit margins. It is the highest in our history and a
display of excellent cost control.
STAFF COSTS
The increase in staff costs was primarily driven by
Combineering welcoming new colleagues as part of our
national and international expansion. The growth in the
number of full-time employees and the expansion of our
skill base is part of our strategy to prepare for further
growth in exciting new markets.
AMORTISATION, DEPRECIATION,
AND IMPAIRMENT
Depreciation and amortization are slightly decreased
when comparing 2022 to 2021. Amortization of intangible
assets has increased due to a development project being
ready and in use during 2021 while the depreciation of
tangible assets has decreased due to a further reduction
of the group’s fixed assets as a part of our strategy.
SPECIAL ITEMS
Special items in 2022 consist of an impairment of trade
receivables equaling 1.8 MDKK and costs from strategic
initiatives which amounts to 6.5 MDKK.
OPERATING PROFIT FOR THE YEAR
BEFORE SPECIAL ITEMS
Growth in revenue in 2022 resulting in 50% growth and
the increase in gross profit margin has produced a very
positive operating profit before special items for the year
from 11.5 MDKK in 2021 to 34.5 MDKK in 2022.
PROFIT FOR THE YEAR
Profit for the year increased by 9.2 MDKK from 9.9 MDKK
to 19.1 MDKK in 2022. The expectations from 2021 to the
profit in 2022 have been met.
BALANCE SHEET
INTANGIBLE ASSETS
Intangible assets increased from 10.8 MDKK in 2021 to
14.8 MDKK in 2022. The increase is due to the continuing
development of projects in progress in 2022.
TANGIBLE ASSETS
Tangible assets decreased from 11.7 MDKK in 2021 to
1.6 MDKK in 2022. The decrease comes as a result of our
office building classified as an asset held for sale due to
the fact that Combineering is growing and need a larger
office space. Furthermore, tangible assets are sold during
2022 which is aligned with the strategy of being asset
light.
TRADE RECEIVABLES
Trade receivables increased by 13.4 MDKK from 22.6
million DKK in 2021 to 36.0 MDKK in 2022. Receivables
increased due to more activities in the same period last
year.
CURRENT LIABILITIES
Liabilities increased by 19.6 MDKK from 33.9 MDKK in
2021 to 53.5 MDKK in 2022. This increase is mainly due
to increases in trade payables since the activity level has
risen and optimization of payment terms. Furthermore,
our mortgage debt has been reclassified from non-
current liabilities since our office building is set for sale.
CASH FLOW STATEMENT
Combineering has managed to increase its cash from
20.3 MDKK in 2021 to 32.2 MDKK in 2022. This is mainly
due to an increase in operating activities where there is a
continuing focus on terms and conditions, and procedures
prioritizing cash flow. We have made it possible to
create a positive cash flow, even as we grow. This is an
important part of our strategy.
OUTLOOK
The implementation of our strategy is going according
to plan. The expectation going into 2022 was an EBITDA
before special items of 16 MDKK. This expectation
is exceeded and we are happy to deliver an EBITDA
before special items show 37 MDKK in 2022. We expect
continued growth in revenue and an estimated EBITDA
before special items between 80 - 90 MDKK in 2023.
Despite the geopolitical volatility seen in 2022, we do not
expect it to impact the business in greater terms.
Combineering Holding A/S | 34
EXECUTIVE MANAGEMENT
BOARD OF DIRECTORS
Combineering Holding A/S | 35
INDEPENDENT AUDITOR’S
REVIEW
Combineering Holding A/S | 36
CVR-no. 33 77 12 31
mne32200
mne47774
Combineering Holding A/S | 37
COMPANY INFORMATION
THE COMPANY
CENTRAL BUSINESS REGISTRATION NO: 29 53 32 61
Registered in: Birk erød
Founded: 1 January 1999
Financial year: 1 January – 31 December
Municipality of reg. office: 3460 Birkerød, Denmark
BOARD OF DIRECTORS
Guy Richard Wakeley
Lars Vedel Jørgensen
John Terence Sullivan
Jeanette Fangel Løgstrup
Claus Karup Rasmussen
EXECUTIVE MANAGEMENT
Carsten Park Andreasen
Kim Bjørn Christensen
AUDITORS
Combineering Holding A/S | 38
CONSOLIDATED STATEMENTS
CONSOLIDATED INCOME STATEMENT
Group
For the period 1 Januar - 31 December Notes
2022
TDKK
2021
TDKK
Revenue 3
Cost of sales 4
(236,456 ) (158,695 )
Gross profit 73,802 48,054
Operating expenses
(9,711 ) (12,334 )
Employee costs 5
(27,335 ) (21,550 )
Depreciations & amortisation expense
(2,467 ) (2,648 )
Other income
Operating profit before special items 34,488 11,534
Special items 6
(8,272 ) 1,467
Operating profit after special items 26,216 13,001
Financial income 7
Financial expenses 8
(876 ) (763 )
Profit / (loss) before tax 25,653 12,404
Tax on profit / (loss) for the year 9
(6,603 ) (2,460 )
Profit for the year 19,050 9,944
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Net profit for the year
OTHER COMPREHENSIVE INCOME
ITEMS THAT WILL BE RECLASSIFIED TO THE
INCOME STATEMENT
Exchange differences on translation of foreign
operations
Total comprehensive income for the period 19,050 9,947
Combineering Holding A/S | 39
CONSOLIDATED BALANCE SHEET
Group
Assets Notes
31 December 2022
TDKK
31 December 2021
TDKK
Software 11 240 184
Completed development projects 11 1,370 2,098
Development projects in progress 11 13,141 8,480
Intangible assets 14,751 10,762
Land and buildings 12 0 6,616
Other fixtures and equipment 12 342 556
Vehicle fleet 12 1,219 1,188
Right of use assets 12 57 3,291
Tangible assets 1,618 11,651
Deposits 0 14
Other non�current assets 0 14
Non�current assets 16,369 22,427
Inventories 0 3
Trade receivables 13 36,004 22,595
Other receivables 0 306
Contract assets 16 1,434 590
Prepayments 403 439
Cash and cash equivalents 32,211 20,281
Assets held for sale 12 6,550 0
Current assets 76,602 44,214
Total assets 92,971 66,641
Combineering Holding A/S | 40
CONSOLIDATED BALANCE SHEET
Group
Equity Notes
31 December 2022
TDKK
31 December 2021
TDKK
Share capital 14 400 400
Currency translation adjustment (82 ) (82 )
Retained earnings 36,007 25,957
Equity 36,325 26,275
Deferred tax 10 3,170 2,443
Mortgage debt 0 2,159
Lease liabilities 15 0 1,898
Non�current liabilities 3,170 6,500
Mortgage debt 0 137
Bank loans 155 15
Lease liabilities 15 119 1,203
Trade payables 36,083 13,810
Tax payables 3,728 407
Other payables 6,828 9,550
Contract liabilities 16 4,369 8,744
Liabilities held for sale 2,194 0
Current liabilities 53,476 33,866
Total liabilities 56,646 40,366
Total equity and liabilities 92,971 66,641
Combineering Holding A/S | 41
STATEMENT OF CHANGES IN EQUITY
Group
Notes
Share capital
TDKK
Currency
translation
adjustment
TDKK
Retained
earnings
TDKK
Proposed
dividend
TDKK
Total equity
TDKK
Equity at 1 January 2021 14 200 (85 ) 19,613 0 19,728
Profit / (loss) for the year 0 0 9,944 0 9,944
Other comprehensive income 0 3 0 0 3
Total comprehensive income
for the period
Transactions with owners in
their capacity as owners
Capital increase 200 0 (200 ) 0 0
Dividends to shareholders 0 0 (3,400 ) 0 (3,400 )
Total transactions with owners
in their capacity as owners
Equity at 31 December 2021 400 (82 ) 25,957 0 26,275
Equity at 1 January 2022 14 400 (82 ) 25,957 0 26,275
Profit / (loss) for the year 0 0 19,050 0 19,050
Total comprehensive income
for the period
Transactions with owners in
their capacity as owners
Dividends to shareholders 0 0 (9,000 ) 0 (9,000 )
Total transactions with owners
in their capacity as owners
Equity at 31 December 2022 400 (82 ) 36,007 0 36,325
Combineering Holding A/S | 42
CASH FLOW STATEMENT
Group
For the period 1 January - 31 December Notes
2022
TDKK
2021
TDKK
Profit / (Loss) for the year 19,050 9,944
Adjustments 23 8,966 2,557
Changes in net working capital 24 2,874 10,053
Depreciation, amortisation expense and
impairment losses of tangible and intangible
assets
Interest received 313 166
Interest paid (876 ) (763 )
Income taxes paid (2,981 ) (1,353 )
Net cash flow from operating activities 29,614 23,240
Purchase of intangible and tangible assets (5,931 ) (4,288 )
Sale of tangible assets 191 81
Net cash flow from investing activities (5,740 ) (4,207 )
Repayment of leasing loans (2,982 ) (1,465 )
Repayment of mortgage loans (102 ) (169 )
Changes in bank loans 140 (13 )
Repayment of shareholder loan 0 (2 )
Paid dividend (9,000 ) (3,400 )
Cash flow from financing activities (11,944 ) (5,049 )
NET CASH FLOW FOR THE YEAR 11,930 13,984
Cash and cash equivalents, beginning of the
year
Cash and cash equivalents at end of the year 32,211 20,281
CASH AND CASH EQUIVALENTS COMPRISE
THE FOLLOWING:
Cash at bank and in hand 32,211 20,281
Cash and cash equivalents at end of the year 32,211 20,281
Combineering Holding A/S | 43
NOTES TO CONSOLIDATED
STATEMENTS
1.
Accounting policies
14.
Share capital
2.
Critical accounting
estimates and
judgements
15.
Lease liabilities
3.
Revenue
16.
Contract assets and
liabilities
4.
Cost of sales
17.
Financial risk
management
5.
Employee costs
18.
Capital management
6.
Special items
19.
Changes in liabilities
arising from financing
activities
7.
Financial income
20.
Related parties
8.
Financial expenses
21.
Commitments and
contigent liabilities
9.
Tax on profit for
the year
22.
Subsequent events
10.
Deferred tax
23.
Cash flow statement –
adjustments
11.
Intangible assets
24.
Changes in net
working capital
12.
Tangible assets
25.
Fees to Auditors
Appointed at the Annual
General Meeting
13.
Trade receivables
26.
List of group companies
Combineering Holding A/S | 44
The consolidated financial statements are prepared
in accordance with International Financial Reporting
Standards (IFRS) as adopted in the EU and further
requirements in the Danish Financial Statements Act
BASIS OF CONSOLIDATION
The Consolidated Financial Statements comprise the
Parent Company Combineering Holding A/S and its
subsidiaries. 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.
The Consolidated Financial Statements are prepared
on the basis of the Financial Statements of the Parent
Company and the group companies by combining items
of a uniform nature, and elimination is made of intercom-
pany income and expenses, intercompany accounts as
well as profits and losses on transactions between the
consolidated companies.
FOREIGN CURRENCY TRANSLATION
FUNCTIONAL CURRENCY
Items included in the financial statements of each of the
group’s entities are measured using the currency of the
primary economic environment in which the entity oper-
ates (‘the functional currency’). The consolidated financial
statements are presented in Danish Kroner which is the
parent com-pany’s functional and presentation currency.
TRANSACTIONS AND BALANCES
Foreign currency transactions are translated into the
functional currency using the exchange rates 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 profit or loss.
Receivables, payables and other monetary items in
foreign currencies are translated at the exchange rates
at the balance sheet date. Differences between the
exchange rates at the balance sheet date and the rates at
the time of the establishment of the receivable or payable
or recognition in the most recent Financial Statements
are recognised in financial income and expenses in the
income statement.
The results and financial position of foreign operations
that have a functional currency different from the pres-
entation currency are translated into the presentation
currency as follows:
• assets and liabilities for each balance sheet presented
are translated at the closing rate at the date of that
balance sheet
• income and expenses for each statement of profit
or loss and statement of comprehensive income are
translated at average exchange rates (unless this is
not a reasonable approximation of the cumulative
effect of the rates prevailing on the transaction dates,
in which case income and expenses are translated at
the dates of the transactions), and
• all resulting exchange differences are recognised in
other comprehensive income.
REVENUE
Revenue is recognised when or as the performance
obligations in the contract are satisfied by transferring
control of the promised goods or services to the cus-
tomer. Revenue is measured at the fair value of the
consideration receivable, exclusive of sales tax, rebates
and discounts.
Fees for receiving waste is considered service revenue
as the customers pays the Group for disposing the waste.
Such revenue is recognised when the Group is disposing
the waste - effectively at the time the Group is handling
over the waste to a third party performing recycling or
disposal of the waste.
The terms of payment set out in the Group’s sales agree-
ments with customers depend on the underlying perfor-
mance obligation. Revenue from services are normally
fully or partly prepaid.
COST OF SALES
Cost of sales contains costs incurred to achieve revenue
for the year. Cost contains raw materials, cost of disposal
or recycling waste and freight.
OPERATING EXPENSES
Operating expenses include expenses related to distribu-
tion, sale, advertising, administration, bad debt, premises,
short terms lease agreements etc.
1. ACCOUNTING POLICIES
Combineering Holding A/S | 45
EMPLOYEE COSTS
Wages, salaries, social security contributions, paid leave
and sick leave, bonuses and other employee benefits are
recognised in the year in which the employee renders the
related services.
OTHER INCOME AND OTHER EXPENSES
Other operating income and other operating expenses
comprise items of a secondary nature to the core ac-
tivities of the companies, including gains and losses on
disposals of intangible fixed assets and property, plant
and equipment as well as subsidies received which do
not directly re-late to the purchase of non-current assets.
SPECIAL ITEMS
Special items comprise income and expenses outside
normal operations which are at the same time non-re-
curring income and expenses. Special items comprise
income and expense arising from events and transactions
such as cost regarding, material impairments, acqui-
sitions, integration costs and larger restructuring or
organisational changes.
FINANCIAL INCOME AND EXPENSES
Financial income and expenses comprise interest income
and expense including amortisation of transaction cost
and premium/discounts (effective interest method),
financial expenses in respect of leases, realised and
unrealised exchange adjustments and fair value changes
on securities.
TAX ON PROFIT
Tax for the year consists of current tax for the year and
deferred tax for the year. The tax attribut-able to the
profit for the year is recognised in the income statement,
whereas the tax attributable to items recognised in other
comprehensive income is recognised in other compre-
hensive income and tax attributable to equity transac-
tions is recognised directly in equity.
Any changes in deferred tax due to changes to tax rates
are recognised in the income statement.
INTANGIBLE ASSETS
DEVELOPMENT PROJECTS
Development costs cover costs and salaries directly or
indirectly attributable to the development activities of the
enterprise.
Development projects that are clearly defined and
identifiable and in respect of which technical feasibility,
sufficient resources and a potential future market or
development opportunity in the enterprise can be demon-
strated, and where it is the intention to market or use the
project, are recognised as intangible assets. This applies
where the cost can be measured reliably and if sufficient
certainty exists that future earnings cover production
costs, selling costs and administrative expenses as well
as the development costs. Amortisation of development
projects recognised will start when the asset is ready for
use.
Development projects that do not meet the criteria
for recognition in the balance sheet are recognised as
expenses in the income statement as incurred.
As of the date of completion, capitalised development
costs are amortised on a straight-line basis over the
period of the expected economic benefit from the devel-
opment work.
Useful life Expected scrap
value
Development
projects
2 - 5 years 0 %
PROPERTY, PLANT AND EQUIPMENT
Property, plant, fixtures, fittings, tools and equipment are
measured at historic cost less accumulated depreciation
and impairment losses.
Cost comprises the purchase price and costs which are
directly attributable to the acquisition up until the time
when the asset is ready for use.
Assets are depreciated on a straight-line basis over the
expected useful economic lives of the asset.
Useful life Expected scrap
value
Land and
buildings
25 years 0 %
Fixtures, fittings,
tools and
equipment
3-5 years 0-20 %
Gains or losses from the sale of property, plant and
equipment are calculated as the difference between the
selling price net of selling expenses and the carrying
amount at the time of the sale. Gains or losses from
current replacement of property, plant and equipment
are recognised in other income or other expenses in the
income statement.
Combineering Holding A/S | 46
RIGHT-OF-USE ASSETS
Right-of-use assets are initially measure at the amortised
cost which equals the lease liability plus prepayments
made to the lessor before the commencement date, and
the initial direct cost incurred leass lease incentives
recived. Subsequently, the right-of-use assets are
cepreciated on a straight-line basis over the lease term.
If it is reasonably certain that an extension option will
be exercised at the end of the lease term, this will be
included in the lease liability. The right-of-use assets are
depreciated in years as follows:
The right-of-use assets are depriciated in years as
follows:
Land and buildings 3–8 years
Other fixtures and equipment 1–5 years
Vehicle fleet 1–3 years
Leases with a contract period of 12 months or less or
which are of low-value are recognised in the income
statement on a straight-line basis over the lease term.
IMPAIRMENT OF FIXED ASSETS
The carrying amounts of intangible assets and property,
plant and equipment are reviewed on an annual basis to
determine whether there is any indication of impairment
other than that ex-pressed by amortisation and deprecia-
tion. If so, an impairment test is carried out to determine
whether the recoverable amount is lower than the car-
rying amount, and the asset is written down to its lower
recoverable amount.
The asset is written down to its recoverable amount if
this is lower than the carrying amount. The recoverable
amount of the asset is calculated as the higher of net sell-
ing price and value in use. Where a recoverable amount
cannot be determined for the individual asset, the assets
are assessed in the smallest group of assets for which a
reliable recoverable amount can be determined based on
a total assessment.
Impairment losses are reversed to the extent that
changes have taken place in the assumptions or
estimates leading to the write-down for impairment.
Impairment losses are only reversed to the extent that
the new carrying amount of the asset does not exceed the
carrying amount which the asset would have had, had it
not been written down for impairment. Impairment on
goodwill is not reversed.
LEASES
If a contract conveys the right to control the use of an
identified asset for a period of time in exchange for
consideration, the contract is or contains a lease.
Each contract is assessed at inception whether it is or
contains a lease. If the contract is a lease, the Group, as a
lessee, recognizes in accordance with IFRS 16 Leases the
right-of-use assets and lease liabilities for the rights and
obligations created by leases.
The Group applies the recognition exemptions allowed
by IFRS 16. This means that low value asset leases and
short-term leases are recognized as expenses in the
statement of profit or loss.
The recognition exemptions allows that leases, where the
lease term is initially 12 months or less and the leases
do not contain any purchase options, are recognized as
rental expenses on straight-line basis in the statement of
profit or loss.
Gains arising from modifications in lease contracts are
recognized as other operating income and losses as other
operating expenses.
INVENTORIES
Inventories are measured at cost in accordance with the
FIFO method. Where the net realisable value is lower
than cost, inventories are written down to this lower
value. Goods for resale, raw materials and consumables
comprises purchase price plus delivery costs. The cost of
finished goods and work in progress comprises the cost
of raw materials, direct labor and direct production costs.
The net realisable value of inventories is determined
taking into account marketability, obsolescence and
development in expected sales price less completion
costs and costs incurred.
TRADE RECEIVABLES
Trade receivables are recognised initially at fair value
and subsequently measured at amortised cost using the
effective interest method, less loss allowance. The Group
hold the trade receivables with the objective to collect
the contractual cash flows and therefor measures them
subsequently at amortised cost.
The Group applies the IFRS 9 simplified approach to
measuring expected credit losses which uses a lifetime
expected loss allowance for all trade receivables.
CONTRACT ASSETS AND LIABILITIES
Contract assets mainly comprise costs to fullfill sales
contracts and are capitalised and recognised as expenses
when the revenue is recognised. Contracts liabilities
comprise payments received from customers covering
revenue in subsequent years.
Combineering Holding A/S | 47
ASSETS HELD FOR SALE
Assets are classified as held for sale when the carrying
amount will be recovered through a sale rather than by
continuing use and the sale is highly probable carried out
within a year.
Depreciation and amortization is not booked on assets
from the date of classification as held for sale.
CASH AND CASH EQUIVALENTS
Cash and cash equivalents comprises cash and bank
balances.
EQUITY
SHARE CAPITAL
Ordinary shares are classified as equity. Incremental
costs directly attributable to the issue of new shares
are shown in equity as a deductions, net of tax, from the
proceeds.
FOREIGN CURRENCY TRANSLATION RESERVE
Exchange differences arising on translation of the foreign
controlled entity are recognised in other comprehensive
income and accumulated in a separate reserve within
equity.The cumulative amount is reclassified to profit or
loss when the net investment is disposed of.
DIVIDENDS
Provision is made for the amount of any dividend de-
clared, being appropriately authorised and no longer at
the discretion of the entity, on or before the end of the
reporting period but not distributed at the end of the
reporting period. Until then dividends expected to be paid
in respect of the year are stated as a separate line item
under equity.
CORPORATION TAX AND DEFERRED TAX
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 provided in full, using the liability
method, on temporary differences arising between the
tax bases of assets and liabilities and their carrying
amounts in the consolidated financial statements.
Deferred income tax is not accounted for if it arises from
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 profit
or loss. Deferred income tax is determined using tax
rates (and laws) that have been enacted or substantially
enacted by the end of the reporting period and are
expected to apply when the related deferred income tax
asset is realised or the deferred income tax liability is
settled.
Deferred tax assets are recognised only if it is probable
that future taxable amounts will be available to utilise
those temporary differences and losses.
Deferred tax assets and liabilities are offset when there
is a legally enforceable right to offset current tax assets
and liabilities and when the deferred tax balances relate
to the same taxation authority. Current tax assets and
tax liabilities are offset where the entity has a legally
enforceable right to offset and intends either to settle on
a net basis, or to realise the asset and settle the liability
simultaneously.
FINANCIAL LIABILITIES
Borrowings are initially recognised at fair value, net of
transaction costs incurred. Borrowings are subsequently
measured at amortised cost. Any difference between the
proceeds (net of transaction costs) and the redemption
amount is recognised in profit or loss over the period of
the borrowings using the effective interest method. Fees
paid on the establishment of loan facilities are recognised
as transaction costs of the loan.
Borrowings are removed from the balance sheet when
the obligation specified in the contract is discharged,
cancelled or expired. The difference between the carrying
amount of a financial liability that has been extinguished
or transferred to another party and the consideration
paid, including any noncash assets transferred or lia-
bilities assumed, is recognised in profit or loss as other
income or finance costs.
Borrowings are classified as current liabilities unless
the group has an unconditional right to defer settlement
of the liability for at least 12 months after the reporting
period.
OTHER PAYABLES
Other payables comprise VAT, holiday allowance etc.
Combineering Holding A/S | 48
CONTRACT LIABILITIES
If a customer pays consideration before the Group
transfers services to the customer, a contract liability is
recognised when the payment is made. Contract liabilities
are recognised as revenue when the Group performs
under the contract. Contract liabilities relates to the
Group’s validation activities.
LIABILITIES HELD FOR SALE
Liabilities are classified as held for sale when it is a debt
that is linked to an asset held for sale.
CASH FLOW STATEMENT
The cash flow statement shows the Group’s cash flows
for the year broken down by operating, investing and
financing activities, changes for the year in cash and cash
equivalents as well as the Group’s cash and cash equiva-
lents at the beginning and end of the year.
Cash flows from operating activities are calculated as
the net profit/loss for the year adjusted for changes in
working capital and non-cash operating items such as
depreciation, amortisation and impairment losses, and
provisions. Working capital comprises current assets
less short-term debt excluding items included in cash and
cash equivalents.
Cash flows from investing activities comprise cash flows
from acquisitions and disposals of intangible assets as
well as fixed asset investments.
Cash flows from financing activities comprise cash flows
from the raising and repayment of long term debt as well
as payments to and from shareholders.
KEY RATIOS
Definition of key ratios
NEW STANDARDS AND INTERPRETATIONS NOT
YET ADOPTED
Certain new accounting standards and interpretations
have been published that are not mandatory for 31
December 2022 reporting periods and have not been
early adopted by the Group. These standards are not
expected to have a material impact on the entity in the
current or future reporting periods and on foreseeable
future transactions.
Solvency ratio =
Equity x 100
Total assets
Operating margin =
Operating profit after special
items x 100
Revenue
Return on equity =
Profit for the year x 100
Equity
Return on
investments =
Profit before taxes x 100
Total assets
Combineering Holding A/S | 49
In the preparation of the consolidated financial state-
ments according to IFRS, Management is required to
make certain estimates as many financial statement
items cannot be reliably measured, but must be esti-
mated as the value of assets and liabilities often depends
on future events that are somewhat uncertain.
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 unpre-
dictability. These assumptions may prove incomplete or
incorrect, and unexpected events or circumstances may
arise. The most critical judgments, estimates and as-
sumptions for the individual items are described below.
CRITICAL ACCOUNTING JUDGEMENT
RECOGNITION OF DEVELOPMENT PROJECTS
The Group makes judgements when assessing whether
the criteria for recognition of development projects are
met and whether the development projects will generate
expected future economic benefits. The judgement is
based on forecasts and feasibility assessment performed
by specialists.
REVENUE RECOGNITION
Recognition of revenue depends on whether the Group
acts as a principal in a transaction or an agent represent-
ing another company. Whether the Group is considered
to be the principal or agent in a transaction depends on
an analysis of both the form and substance of the cus-
tomer agreement. When the Group acts as the principal,
revenue is recognised at the agreed value, whereas
when the Group acts as an agent, revenue is recognised
as the commission the Group receives for arranging the
agreement. Judgements of whether the Group acts as a
principal or as an agent impact on the amounts of recog-
nised revenue and cost of sales, but do not impact on net
profit for the year or cash flows. Judgements of whether
the Group acts as a principal are used primarily in sales
where the customers is able to decide which subcontrac-
tor the Group is allowed to use to recycle or dispose the
waste.
CRITICAL ACCOUNTING ESTIMATES
UNCERTAINTY CONNECTED WITH RECOGNITION
OR MEASUREMENT
There are uncertainties concerning a trade receivable,
that on the 31 December 2022 amounts to 8.5 million DKK
before a write-down. A write-down of 5.3 million DKK
gives a net value of 3.2 million DKK. The estimate of the
potential loss is based on limited information about the
debtor’s ability to pay. The ultimate owners have issued a
personal guarantee for payment, which is currently being
pursued in a court case, which Management expects to
win. The uncertainties mainly relate to debtor’s and its
ultimate owner’s ability to pay.
2. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
Combineering Holding A/S | 50
3. REVENUE
2022
Biogas & agriculture
TDKK
Biofuels, alternative
energy & special
treatment
TDKK
Minerals and
materials
TDKK
Total
TDKK
Revenue 64,056 175,040 71,162 310,258
2021
Biogas & agriculture
TDKK
Biofuels, alternative
energy & special
treatment
TDKK
Minerals and
materials
TDKK
Total
TDKK
Revenue 37,341 111,871 57,537 206,749
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By-products from food and
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from agricultural production
is developed to be used as
fertilizer and feedstuff.
Waste wood, off-spec
grain and similar,
vegetable oils and waxes,
wood chips, powders and
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RDF (Refuse Derived
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waste and by-products from
food production, chemical
synthetization, pharma- and
medical industry.
By-products from food and
pharma industry, off-spec
products, waste derived
from agricultural production
is developed to be used as
fertilizer and feedstuff.
Waste wood, off-spec
grain and similar,
vegetable oils and waxes,
wood chips, powders and
fibers.
RDF (Refuse Derived
Fuel), SRF (Solid
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granules and solvents.
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metals, glass, plastics,
textiles and similar
materials, suitable for
recycling or recovery.
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CCOOMMBBIINNEEEERRIINNGG OOPPEERRAATTEESS WWIITTHHIINN 33 OOVVEERRAALLLL SSEECCTTOORRSS
Geographical split of revenue 2022
TDKK
2021
TDKK
Denmark 92,045 91,503
International 218,213 115,246
Total 310,258 206,749
Combineering Holding A/S | 51
4. COST OF SALES
2022
TDKK
2021
TDKK
Raw materials and consumables expenses
for the year
2,977 808
Other cost of sales incl. transport and fee for
waste-handling at receivers
233,479 157,887
236,456 158,695
5. EMPLOYEE COSTS
2022
TDKK
2021
TDKK
Wages and salaries 30,051 23,560
Other social security costs 281 204
Other staff costs 1,664 1,152
31,996 24,916
Of which capitalised as development
projects
(4,661) (3,366)
Employee costs 27,335 21,550
Average number of employees 35 30
KEY MANAGEMENT COMPENSATION
Key Management consists of Executive Management and Board of Directors.
The compensation paid or payables to key management for employee services
is shown below:
EXECUTIVE MANAGEMENT
2022
TDKK
2021
TDKK
Remuneration to Executive
Management
4,637 4,179
Total 4,637 4,179
BOARD OF DIRECTORS
Board fee* 368 84
Total 368 84
Total compensation of key
management personnel
5,005 4,263
Combineering Holding A/S | 52
6. SPECIAL ITEMS
2022
TDKK
2021
TDKK
VAT refund Germany ref. previous
years
0 967
Impairment of trade receivable (1,800) 500
Cost from strategic initiatives (6,472) 0
Total (8,272) 1,467
7. FINANCIAL INCOME
2022
TDKK
2021
TDKK
Foreign exchange rate gains 289 153
Other financial income 24 13
313 166
8. FINANCIAL EXPENSES
2022
TDKK
2021
TDKK
Foreign exchange rate losses 437 464
Interest expenses on borrowings 149 95
Other financial expenes 290 204
876 763
Combineering Holding A/S | 53
9. TAX ON PROFIT FOR THE YEAR
2022
TDKK
2021
TDKK
CURRENT TAX:
Current tax on profit for the year 6,655 2,460
Prior year adjustments, income tax (52) 0
6,603 2,460
Calculated 22.0 % tax on profit for the
year before income tax
5,644 2,729
TAX EFFECTS OF:
Research and development tax credit (618) (400)
Non-taxable income (14) (10)
Unrecognised temporary differences 55 55
Tax effects of amounts which are not deductable (taxable) in calculating taxable
income:
Non deductable costs regarding lawyer
and consultancy cost
1,532 59
Entertainment 56 24
Sundry 0 3
Tax prior years (52) 0
959 (269)
Effective tax rate 26 % 20 %
Combineering Holding A/S | 54
10. DEFERRED TAX
2022
TDKK
2021
TDKK
Deferred tax at 1 January 2,443 1,778
Deferred tax reccognised in the state-
ment of profit or loss
727 665
Deferred tax at 31 December 3,170 2,443
DEFERRED TAX RELATES TO:
Intangible assets 3,192 2,327
Tangible assets (22) 116
3,170 2,443
Of which presented as deferred tax
assets
0 0
Of which presented as deferred tax
liabilities
3,170 2,443
3,170 2,443
Combineering Holding A/S | 55
11. INTANGIBLE ASSETS
Software
TDKK
Completed
development
projects
TDKK
Development
projects in
progress
TDKK
Total
TDKK
COST:
At 1 January 2022 313 2,545 8,480 11,338
Additions during the year 196 0 4,661 4,857
At 31 December 2022 509 2,545 13,141 16,195
Accumulated amortisation and impairment:
At 1 January 2022 129 447 0 576
Amortisation for the year 140 728 0 868
At 31 December 2022 269 1,175 0 1,444
Carrying amount 31 December
2022
240 1,370 13,141 14,751
Software
TDKK
Completed
development
projects
TDKK
Development
projects
in progress
TDKK
Total
TDKK
Cost:
At 1 January 2021 313 1,281 6,377 7,971
Additions during the year 0 0 3,367 3,367
Transfers for the year 0 1,264 (1,264) 0
At 31 December 2021 313 2,545 8,480 11,338
Accumulated amortisation and impairment:
At 1 January 2021 25 35 0 60
Amortisation for the year 104 412 0 516
At 31 December 2021 129 447 0 576
Carrying amount 31 December
2021
184 2,098 8,480 10,762
The development project relates to the development of waste-handling solutions. The development projects are
expected to generate increased turnover and profits for the coming years.
IMPAIRMENT TEST OF DEVELOPMENT PROJECT
Management has determined these key assumptions when testing development project in progress:
Cashflows are based on signed contracts and gross profit based on experience from other projects. Remaining
developments are taken into account.
Combineering Holding A/S | 56
The Group owns the office building used. Due to the expansion of the company the management expects to sell the office
building within the next year in order to move into something more fit for the future of the Group. The office building is
classified as an asset held for sale.
12. TANGIBLE ASSETS
Land and buildings
TDKK
Other fixtures and
equipment
TDKK
Vehicle fleet
TDKK
Total
TDKK
COST:
At 1 January 2022 9,936 1,153 2,099 13,188
Additions during the
year
0 365 709 1,074
Disposals during the
year
0 (1,082) (1,744) (2,826)
Transfers to assets
held for sale
(9,936) 0 0 (9,936)
At 31 December 2022 0 436 1,064 1,500
Accumulated amortisation and impairment:
At 1 January 2022 3,320 597 911 4,828
Depreciation for the
year
66 579 292 937
Depreciation of
disposals
0 (1,082) (1,358) (2,440)
Transfers to assets
held for sale
(3,386) 0 0 (3,386)
At 31 December 2022 0 94 (155) (61)
Carrying amount
31 December 2022
0 342 1,219 1,561
Combineering Holding A/S | 57
Land and buildings
TDKK
Other fixtures and
equipment
TDKK
Vehicle fleet
TDKK
Total
TDKK
COST:
At 1 January 2021 9,936 1,153 1,185 12,274
Additions during the
year
0 0 922 922
Disposals during the
year
0 0 (8) (8)
At 31 December 2021 9,936 1,153 2,099 13,188
Accumulated amortisation and impairment:
At 1 January 2021 3,056 393 766 4,215
Depreciation for the
year
264 204 153 621
Impairment for the
year
0 0 (8) (8)
At 31 December 2021 3,320 597 911 4,828
Carrying amount 31
December 2021
6,616 556 1,188 8,360
Combineering Holding A/S | 58
12. TANGIBLE ASSETS - CONTINUED
Land and buildings
TDKK
Other fixtures and
equipment
TDKK
Vehicle fleet
TDKK
Total
TDKK
Specification of right-of-use assets:
At 1 January 2022 389 46 2,856 3,291
Additions during the year 0 0 0 0
Depreciations for the year (256) (26) (380) (662)
Disposals during the year (1,185) (173) (4,648) (6,006)
Amortisation on disposals 1,052 153 2,229 3,434
At 31 December 2022 0 0 57 57
At 1 January 2021 787 85 3,999 4,871
Additions during the year 0 0 0 0
Depreciations for the year (398) (39) (1,074) (1,511)
Disposals during the year 0 0 (84) (84)
Amortisation on disposals 0 0 15 15
At 31 December 2021 389 46 2,856 3,291
Combineering Holding A/S | 59
13. TRADE RECEIVABLES
2022
TDKK
2021
TDKK
Trade receivables before provision for bad debts 41,304 26,095
Less provision for impairment of trade receivables (5,300) (3,500)
Trade receivables net 36,004 22,595
Trade receivables are amounts due from customers in the ordinary
course of business. Trade receivables are recognised initially at the
amount of consideration that is unconditional.
Due to the short-term nature of the current receivables, their carrying
amount is considered to be the same as their fair value.
Movement on the Group’s provision for impairment of trade receivables
are as follows:
2022
TDKK
2021
TDKK
Opening balances 3,500 4,000
Increase in loss allowance recognised in profit or loss during the year 1,800 0
Unused amount reversed 0 (500)
Provision for impairment of trade receivables 5,300 3,500
Provision for impairment relates to one specific customer that were
allowed credit outsite the company’s normal credit policy and therefore
does not affect future expected credit loss which is assessed to be
immaterial.
Trade receivables
2022 Not yet due
Less than 1
month past due
More than 1 to 6
months past due
More than 6
months past due Total
Gross carrying
amount
22,838 9,757 236 8,473 41,304
Loss allowance 0 0 0 (5,300) (5,300)
Trade receivables,
net
22,838 9,757 236 3,173 36,004
Trade receivables
2021 Not yet due
Less than 1
month past due
More than 1 to 6
months past due
More than 6
months past due Total
Gross carrying
amount
10,483 6,918 221 8,473 26,095
Loss allowance 0 0 0 (3,500) (3,500)
Trade receivables,
net
10,483 6,918 221 4,973 22,595
Combineering Holding A/S | 60
14. SHARE CAPITAL
At 31 December 2022 the share capital in Combineering Holding A/S, comprised
40,000,000 shares (20,000,000 shares 31 December 2021). Share capital is fully
paid. A dividend of 0.23 per share, has been paid in 2022 (0.17 per share 2021).
15. LEASE LIABILITIES
2022
TDKK
2021
TDKK
Expenses from short-term leases 76 456
Depreciaton of right-of-use assets 662 1,512
Interest expenses on lease liabilities 172 151
Total 910 2,119
Cash outflow related to lease agreements was TDKK 2,982 (1,616 in 2021)
15.1. Lease commitments on short-term leases
2022
TDKK
2021
TDKK
Within 1 year 119 5,331
16. CONTRACT ASSETS AND LIABILITIES
The Group has recognised the following assets and liabilities related to contracts with customers:
2022
TDKK
2021
TDKK
CONTRACT ASSETS
Costs to fullfill sales contracts are capitalised and
recognised as expenses in external expenses when the
revenue is recognised in the subsequent year.
1,434 590
CONTRACT LIABILITIES
Contracts liabilities comprise payments received from
customers covering revenue in the subsequent year.
4,369 8,744
Combineering Holding A/S | 61
17. FINANCIAL RISK MANAGEMENT
FINANCIAL RISK FACTORS
The Group manages financial risks centralised at group level. The Group is
exposed to foreign exchange risk, liquidity risk and credit risk that can have
an impact on the financial performance of the Group. Significant risks are
continuously assessed by Management and the Board of Directors.
FOREIGN CURRENCY RISK
Foreign currency risk is the risk that the fair value or future cash flows of an
exposure will fluctuate because of changes in foreign exchange rates.
Foreign customers are invoiced in mainly EUR. As the Danish Kroner is
pegged to the Euro, this currency risk is considered immaterial. Only ap-
proximately 1.0% (0.5%, 2021) of revenue and 4.1% (7.0%, 2021) of costs are
incurred in currencies other than DKK or EUR.
INTEREST RATE RISK
The Group is not particularly exposed to changes in interest rates as net
interest bearing assets and liabilities is very limited as loans are mainly with
fixed rates.
CREDIT RISK
Credit risk arises from cash and cash equivalents, as well as credit expo-
sures to customers, including outstanding receivables. The Group’s primary
credit exposure is related to trade receivables and cash positions.
The credit risk of the Group is assessed to be low. Credit risk related to trade
receivables is managed by credit insurance and/or prepayment from cus-
tomers. Based on forecasts as well as historical data, the Group expects only
insignificant loss allowances for trade receivables. The Group has no major
exposure relating to one single customer or business partner.
In relation to the credit risk related to financial institutions, the Group
monitors financial institutions and places funds in financial institutions with
satisfactory credit ratings.
LIQUIDITY RISK
The Group has a liquidity buffer comprising cash of DKK 32.2 million (DKK
20.3 million 31 December 2021) and a DKK 10 million credit line (DKK 10
million 31 December 2021) to support the current operations of the the
Group.
MATURITY ANALYSIS
The tables below analyse the Group’s financial liabilities into relevant matu-
rity groupings based on their contractual maturities.
The amounts disclosed in the table are the contractual undiscounted cash
flows including interest payment.
Combineering Holding A/S | 62
Carrying amount
TDKK
Less than 1 year
TDKK
Between 1 and
5 year
TDKK
More than 5
years
TDKK
Total
TDKK
AT 31 DECEMBER
2022
Mortgage debt 2,194 199 780 1,663 2,642
Bank loans 155 155 0 0 155
Lease liabilities 119 125 0 0 125
Trade payables 36,083 36,083 0 0 36,083
38,551 36,562 780 1,663 39,005
AT 31 DECEMBER
2021
Mortgage debt 2,296 200 786 1,856 2,842
Bank loans 15 15 0 0 15
Lease liabilities 3,101 1,253 1,951 0 3,204
Trade payables 4,472 4,472 0 0 4,472
9,884 5,940 2,737 1,856 10,533
Fair value of mortgage loans amounts to TDKK 2,232 (2021: 2,363). Fair value is
based on fair value on the underlying listed bonds (Category 1). For other debt
the different between fair value and carrying amount is considered immaterial.
18. CAPITAL MANAGEMENT
The Group manages its capital structure to ensure that the capital structure
will be sufficient to the Group’s growth plans and expectations and at the
same time be able to pay out a reasonable dividend to shareholders.
Combineering Holding A/S | 63
19. CHANGES IN LIABILITIES ARISING
FROM FINANCING ACTIVITIES
This section sets out an analysis of liabilities arising from financing activities and the
movements in each of the periods presented.
1 January 2022
TDKK
Financing cash flows
TDKK
Additions
TDKK
31 December 2022
TDKK
Mortgage debt 2,296 (102) 0 2,194
Lease liabilities 3,101 (2,982) 0 119
Bank loans 15 0 140 155
Total liabilities from financing
activities
5,412 (3,084) 140 2,468
1 January 2021
TDKK
Financing cash flows
TDKK
Additions
TDKK
31 December 2021
TDKK
Mortgage debt 2,465 (169) 0 2,296
Lease liabilities 4,566 (1,465) 0 3,101
Bank loans 28 (13) 0 15
Total liabilities from financing
activities
7,059 (1,647) 0 5,412
20. RELATED PARTIES
BASIS OF INFLUENCE
Lars Vedel Jørgensen Ultimate owner of voting rights
Mads Prag Roesen Ultimate owner of voting rights
Roesen Holding ApS Owner
Vedel55 Holding ApS Owner
Transactions with key management personnel
Transactions with key management personnel include transactions with
companies controlled by the key management personnel. Reference is made
to note 5.
The following transactions were carried through with related
parties:
2022
TDKK
2021
TDKK
Repayment of shareholder loans 0 2
Salaries to related parties not part of key management 2,742 1,423
Combineering Holding A/S | 64
21. COMMITMENTS AND CONTINGENT LIABILITIES
CHARGES AND SECURITY
In regards to long-term debt (mortgage lenders) of TDKK 2,057 (2021: 2,159),
the company has posted collateral in land and buildings, with an accounting
value at the 31 December 2022 of TDKK 6,550 (2021: 6,616). In 2022 mortgage
debt is classified as liabilities held for sale.
Right-of-use assets representing a carrying amount of TDKK 57 at 31
December 2022 (2021: 3,291) have been financed by means of finance leases.
At 31 December 2022, the lease liability totals TDKK 119 (2021: 3,101).
In regards to debt to banks of TDKK 155 (2021: 15), the company has posted
company charge of TDKK 5,000 (2021: 5,000), with an accounting value of
TDKK 31,819 at 31 December 2022 (2021: 17,428).
CONTINGENT LIABILITIES
With Combineering Holding A/S as administration company, the company
is subject to the Danish scheme of joint taxation and unlimitedly, jointly, and
severally liable, along with the other jointly taxed companies, for the total
corporation tax.
In the ordinary course of business, the Group is involved in certain claims and
disputes. In the opinion of management, settlement or continuation of pend-
ing claims and other disputes will have no material impact on the Groups
financial position.
22. SUBSEQUENT EVENTS
After the period end the group has been sold to Reconomy Group.
Combineering Holding A/S | 65
24. CHANGES IN NET WORKING CAPITAL
2022
TDKK
2021
TDKK
Change in inventories 3 108
Change in trade and group receivables (13,409) (1,250)
Change in other receivables (2,289) 820
Change in payables and other payables 18,569 10,375
2,874 10,053
25. FEES TO AUDITORS APPOINTED AT THE ANNUAL
GENERAL MEETING
PricewaterhouseCoopers
2022
TDKK
2021
TDKK
Audit services 395 295
Other services 566 390
961 685
26. LIST OF GROUP COMPANIES
The Group’s principal subsidiaries at 31 December 2022 are set out below:
Type Place of incorporation Ownership interest
Combineering A/S Subsidiary Denmark 100 %
Combineering Materials ApS Subsidiary Denmark 100 %
Logistics Center North ApS Subsidiary Denmark 100 %
Combineering Ejendomme ApS Subsidiary Denmark 100 %
CN Ireland ApS Subsidiary Denmark 100 %
Combineering US1 ApS Subsidiary Denmark 100 %
Combineering RCZ1 ApS Subsidiary Denmark 100 %
Co2mbineering ApS Subsidiary Denmark 100 %
Combineering UK Limited Subsidiary United Kingdom 100 %
Combineering Materials GmbH Subsidiary Germany 100 %
23. CASH FLOW STATEMENT – ADJUSTMENTS
2022
TDKK
2021
TDKK
Financial income (313) (166)
Financial expenses 876 763
Tax on profit/loss for the year 6,603 2,460
Impairment of current assets 1,800 (500)
8,966 2,557
PARENT
INCOME
STATEMENTS
CONTENTS
66 ���� INCOME STATEMENT
67 ���� BALANCE SHEET
69 ���� STATEMENT OF CHANGES IN EQUITY
70 ���� NOTES TO PARENT STATEMENTS
Combineering Holding A/S | 67
INCOME STATEMENT
Parent
Notes
2022
TDKK
2021
TDKK
Revenue 2 18,514 837
Cost of sales 0 0
Gross profit 18,514 837
Operating expenses (8,980) (2,645)
Employee costs 3 (8,374) (904)
Operating profit 1,160 (2,712)
Income from investements
in group enterprises
19,427 12,123
Financial income 1 0
Financial expenses (8) (3)
Profit/(loss) before tax 20,580 9,408
Tax on profit/(loss)
for the year
4 (1,734) 548
Profit/(loss) for the year 18,846 9,956
Proposed distribution of
results
Retained earnings 11,318 (1,685)
Reserve for net revaluation
according to equity method
7,528 11,641
Proposed dividend
recognised in equity
0 0
Total distribution 18,846 9,956
Combineering Holding A/S | 68
BALANCE SHEET
Parent
ASSETS Notes
31 December 2022
TDKK
31 December 2021
TDKK
Long-term investments in
group enterprises
5 42,282 32,447
Financial fixed assets 42,282 32,447
Fixed assets 42,282 32,447
Other receivables 0 24
Receivables from group
enterprises
1,395 0
Short-term tax receivables
from group enterprises
4,199 549
Prepayments 246 0
Receivables 5,840 573
Cash and cash equivalents 1,066 570
Current assets 6,906 1,143
Total assets 49,188 33,590
Combineering Holding A/S | 69
EQUITY AND LIABILITIES Notes
31 December 2022
TDKK
31 December 2021
TDKK
Share capital 400 400
Reserve for net revaluation
according to equity method
26,863 19,335
Retained earnings 8,875 6,557
Equity 36,138 26,292
Other provisions 386 2,184
Provisions 386 2,184
Trade payables 1,056 123
Other payables 6,165 1,275
Payables to group
enterprises
1,658 3,716
Income tax payable 3,728 0
Income tax payable to
subsidiaries
57 0
Short� term liabilities other
than provisions
12,664 5,114
Liabilities other than
provisions
12,664 5,114
Total equity and liabilities 49,188 33,590
Contingent liabilities 6
Combineering Holding A/S | 70
STATEMENT OF CHANGES IN EQUITY
Parent
Share Capital
TDKK
Reserve for
net revaluation
according to
equity method
TDKK
Retained
Earnings
TDKK
Proposed
Dividend
TDKK
Total equity
TDKK
Equity at 1
January 2021
200 7,694 11,842 0 19,736
Capital increase 200 0 (200) 0 0
Dividend paid 0 0 (3,400) 0 (3,400)
Profit (loss) 0 11,641 (1,685) 0 9,956
Equity at 31
December 2021
400 19,335 6,557 0 26,292
Equity at 1
January 2022
400 19,335 6,557 0 26,292
Dividend paid 0 0 (9,000) 0 (9,000)
Profit (loss) 0 7,528 11,318 0 18,846
Equity at 31
December 2022
400 26,863 8,875 0 36,138
NOTES TO
PARENT INCOME
STATEMENTS
CONTENTS
1. ACCOUNTING POLICIES SPECIFIC TO THE PARENT COMPANY ACCOUNTS
2. REVENUE
3. EMPLOYEE COSTS
4. TAX ON PROFIT FOR THE YEAR
5. LONG-TERM INVESTMENTS IN GROUP ENTERPRISES
6. CONTINGENT LIABILITIES
Combineering Holding A/S | 72
The financial statements of the parent company is
prepared in accordance with the Danish Financial
Statements Act applying to enterprises of reporting class
C (medium).
INCOME FROM INVESTMENTS IN GROUP
ENTERPRISES
The proportionate share of the results of group enter-
prises after tax is recognized in the income statement
after the elimination of intercompany proceeds and
deduction of goodwill depreciation and goodwill impair-
ment losses.
INVESTMENTS IN GROUP ENTERPRISES
Investments in group enterprises are recognized accord-
ing to the equity method and measured at the proportion-
ate share of the entities’ net asset values calculated in
accordance with the parent company’s accounting poli-
cies minus or plus the proportionate share of unrealised
intercompany proceeds and minus or plus the carrying
amount of goodwill.
Investments in group enterprises with a negative net
asset value are measured at value of DKK 0. Any receiv-
ables from group enterprises are written down by the
share at the negative net asset value if the amount owed
is irrecoverable. If the negative net asset value exceeds
the receivable, the remaining amount is recognized
under provisions to the extent the parent company has a
legal or constructive obligation to cover the negative net
assets of the group.
Net revaluation of investments in group enterprises is
transferred to the reserve for net revaluation according
to the equity method in equity to the extent that the carry-
ing amount exceeds purchase price deducted goodwill
depreciation.
Gains or losses on disposal of group enterprises are de-
termined as the difference between the sales amount and
the carrying amount of net assets at the time of disposal,
including nondepreciated goodwill and estimated costs of
disposal. Gains and losses are recognized in the income
statement under financial income or financial expenses.
2022
TDKK
2021
TDKK
Management Fee 18,514 837
Revenue 18,514 837
1. ACCOUNTING POLICIES SPECIFIC TO THE PARENT
COMPANY ACCOUNTS
2. REVENUE
Combineering Holding A/S | 73
3. EMPLOYEE COSTS
2022
TDKK
2021
TDKK
Wages and salaries
8,308 824
Other social security costs 23 7
Other staff costs 43 73
Employee costs 8,374 904
Average number of employees 7 1
Key Management Compensation
Key Management consists of Executive Management and Board of Directors.
The compensation paid or payables to key management for employee services
is shown below:
EXECUTIVE MANAGEMENT:
2022
TDKK
2021
TDKK
Remuneration to Executive Management 4,637 551
Total 4,637 551
Board of Directors
Board fee 368 84
Total 368 84
Total compensation of key
management personnel
5,005 635
4. TAX ON PROFIT FOR THE YEAR
2022
TDKK
2021
TDKK
Tax expense on ordinary activities 1,786 (548)
Adjustment of deferred tax 0 0
Prior year adjustments, income tax (52) 0
1,734 (548)
Combineering Holding A/S | 74
5. LONG-TERM INVESTMENTS IN GROUP ENTERPRISES
2022
TDKK
2021
TDKK
Cost at 1 January 13,112 13,104
Additions in the year 2,307 48
Disposals 0 (40)
Cost at 31 December 15,419 13,112
Revaluations at 1 January 19,335 7,693
Share of profit for the year 17,242 9,794
Dividends received from group
enterprises
(10,100) (350)
Disposals 0 14
Capital shares with negative net asset
value transferred to provisions
386 2,184
Revaluations at 31 December 26,863 19,335
Cost at 31 December 42,282 32,447
Combineering Holding A/S | 75
COMPANY OVERVIEW
Ownership Percentage
Share Capital
TDKK
Combineering A/S
3460 Birkerød
CVR no. 29609969 100 % 500
Combineering Ejendomme ApS
3460 Birkerød
CVR no. 40541934 100 % 50
Logistics Center North ApS
3460 Birkerød
CVR no. 40590463 100 % 40
Combineering US1 ApS
3460 Birkerød
CVR no. 41694076 100 % 40
CN Ireland ApS
3460 Birkerød
CVR no. 41384182 100 % 40
RCZ1 ApS
3460 Birkerød
CVR no. 42526339 100 % 40
Combineering Materials ApS
3460 Birkerød
CVR no. 37857327 100 % 50
Co2mbineering ApS
3460 Birkerød
CVR no. 43336320 100% 40
Combineering UK Limited
United Kingdom
Company No. 07506396 100 % 0.2 GBP
Combineering Materials GmbH
Deutschland
HRB 12176FL 100 % 25 EUR
Combineering Holding A/S | 76
6. CONTINGENT LIABILITIES
The company acts as administration company for the group of companies
subject to the Danish scheme of joint taxation and is unlimitedly, jointly, and
severally liable, along with the other jointly taxed companies, to pay the total
corporation tax.
The company is unlimited, jointly, and severally liable, along with the other
jointly taxed companies, for any obligations to withhold tax on interest,
royalties, and dividends.
The company guarantee for debt between Combineering A/S and its banks.
The debt at the balance sheet date TDKK 155.