The Annual General Meeting adopted the Annual Report on 26.07.2024
Chairman of the General Meeting
Name: Jean-Marc Lechêne
_______________________________________
Tresu Group Holding A/S
Venusvej 44
DK-6000 Kolding
Central Business Reg. No.: 37 75 20 88
Annual Report 2023
Tresu Group Holding A/S
1
Contents
Entity details ....................................................................................................................................................... 2
Management’s Statement ................................................................................................................................... 3
Independent auditor´s report ............................................................................................................................... 4
Management commentary ................................................................................................................................... 7
Consolidated statement of comprehensive income ........................................................................................... 18
Consolidated balance sheet ............................................................................................................................... 19
Consolidated statement of changes in equity .................................................................................................... 21
Consolidated cash flow statement ..................................................................................................................... 22
Notes to consolidated financial statements ....................................................................................................... 23
Parent statement of comprehensive income ...................................................................................................... 70
Parent balance sheet .......................................................................................................................................... 71
Parent statement of change in equity ................................................................................................................ 73
Parent cash flow statement ................................................................................................................................ 74
Notes to the parent financial statement ............................................................................................................. 75
Tresu Group Holding A/S
2
Entity details
Entity
Central Business Registration No.: 37 75 20 88
Registered in: Kolding
Financial period: 01.01.2023 - 31.12.2023
Phone: +45 76323500
Web site: www.tresu.com
Board of Directors
Jean-Marc Lechêne, chairman
Ola Harald Erici
Søren Dan Johansen
Stephan Plenz
Executive Board
Stephan Plenz
Torben Børsting
Entity auditors
Central Business Registration No.: 33 77 12 31
Tresu Group Holding A/S
3
Executive Board
Board of Directors
Tresu Group Holding A/S
4
Tresu Group Holding A/S
5
Tresu Group Holding A/S
6
CVR No 33 77 12 31
Tresu Group Holding A/S
7
Management commentary
2023
2022
2021
2020
2019
DKK'000
DKK'000
DKK'000
DKK'000
DKK'000
Key figures
Revenue
388.781
359.035
340.917
302.089
388.701
Gross profit/loss
(108.676)
(68.607)
23.193
17.160
27.574
Operating profit/loss
(189.020)
(155.414)
(52.045)
(63.392)
(81.836)
Net financials
(50.467)
(33.275)
12.301
(29.540)
(32.764)
Profit/loss for the year
(215.394)
(165.439)
(31.530)
(74.710)
(90.394)
Total assets
470.614
643.361
762.454
815.782
892.891
Investments in property, plant
and equipment
3.189
3.459
919
1.268
20.912
Equity
(344.885)
(147.887)
(12.250)
(51.004)
25.225
EBITDA
(7.128)
(17.703)
16.274
13.390
(7.382)
EBITDA excl. non-recurring items
(2.310)
(6.918)
20.233
31.538
22.096
Ratios
Gross margin (%)
(28,0)
(19,1)
6,8
5,7
7,1
Net margin (%)
(55,4)
(46,1)
(9,2)
(24,7)
(23,3)
Return on equity (%)
-
-
-
-
(189,1)
Equity ratio (%)
-
-
-
-
2,8
Return on assets
(40,2)
(24,2)
(6,8)
(7,8)
(9,2)
Ratios
Calculation formula
Gross margin (%)
Gross profit x 100
Revenue
The entity's operating gearing.
Net margin (%)
Profit/loss for the year x 100
Revenue
The entity's operating profitability.
Return on equity (%)
Profit/loss for the year x 100
Average equity
The entity's return on capital invested in the
entity by the owners.
Equity ratio (%)
Equity x 100
Total assets
The financial strength of the entity.
Return of assets (%)
Profit before financials x 100
Total assets
Profit from invested capital
Tresu Group Holding A/S
8
Management commentary
Group chart as per 31 December 2023
TRESU
Group
Holding A/S
100%
TRESU
Investment
Holding A/S
100%
TRESU A/S
100%
100%
100%
100%
TRESU Royse, Inc.
TRESU Italia
S.r.l.
TRESU Japan
Co. Ltd.
TRESU Vertriebs
GmbH
Tresu Group Holding A/S
9
Management commentary
Primary activities
The Group develops, produces and sells custom made in-line flexo printing machines for the packaging
manufacturing industry and ancillary products for the digital, flexo and offset printing industry worldwide.
Development in activities
In 2023 we focused on strategic initiatives to strengthen our portfolio and organization. By standardization and
market driven innovations we are improving our platform of our core business within custom made in-line
flexo printing machines for the packaging industry and ancillary products for the digital, flexo and offset
printing industry worldwide and we increased our aftersales offering to build an even stronger annuity
business. We continue the development of our people and the future organization to support the growth.
In 2023 we continued to see postponement of customer projects due to global sourcing challenges especially
on electrical components. Despite the postponements we are confident that the Group has a solid business
platform focused on the packaging print segment in the Graphic Arts Industry in Americas, Europe and Asia,
backed by strong technical competences as well as cost effective production setup in Denmark and a steamlined
supply chain.
Financial developments in the fiscal year 2023
The supply chain crisis impacted the ability to complete the projects in time, even taking this into account, the
financial results for 2023 are below expectations but according to guidance March 2024. Based on the financial
result for 2023 we have made an impairment of DKK 125,0m. The result in the Group is impacted by supply
crises with postponement of delivery of customer projects and critical components, and therefore the order
backlog by end of 2023 is at DKK 207,1m. Further additional resources have been needed for a few projects.
The projects are near completion, and we do not expect these projects to affect 2024 in a significant amount.
Consolidated revenue for the financial year 2023 is DKK 388,8m (2022: DKK 359,0m).
Operating profit (EBIT) for the year 2023 was DKK -189,0m (2022: DKK -155,4m).
Average number of headcounts in the Group in 2023 was 184 FTE (2022: 169).
Cash flow from operating activities in 2023 amounted to DKK -109,3m (2022: DKK 6,0m) and net
investments in property, plant and equipment equaled DKK 3,2m (2022: DKK 3,5m).
At the end of 2023, total assets were DKK 470,6m (2022: DKK643,4m) and total equity amounted to DKK
-344,9m (2022: DKK -147,9m).
Tresu Group Holding A/S
10
Management commentary
Capital resources and Liquidity
The Group has in 2023 realized a loss of DKK 215,4m and equity of the Company amounts to DKK -344,9m
on 31 December 2023.
On this basis, section 119 of the Companies Act regarding capital loss applies.
In December 2023 the bondholders approved an amendment to the terms and conditions of the bonds meaning
that payment of Interest will be made subject to a minimum Available Liquidity as defined in the Notice for
Written Procedure. Furthermore, a loan facility of up to DKK 75,0m has been established with Altor Fund IV
as lender of which DKK 65,0m has been provided in 2023. The budget for 2024 shows that there is sufficient
liquidity available for continued operations, which is based, among other things, on the above, as well as an
increase in revenue derived from the current order book and expected order intake. Predictions about the future
are, however, associated with uncertainty, and the budget for 2024 is particularly uncertain, as a result of the
fact that Tresu is a project company, where changes compared to what is expected can happen quickly.
Overall, it is the assessment of the company's management and board of directors that the annual report for
2023 can be submitted under the going concern premise.
Further, it is noted that the equity is expected to be re-established with future earnings or with sale of TRESU
A/S.
The management will continue to assess the capital base and the need for re-establishing the equity.
Objective and outlook
Driven by our relentless focus on constantly improving print quality and simultaneously reducing our
customers’ total cost of print, we expect to expand our market position as we continue to penetrate the global
market with our Flexo Innovator machines. We predict continued consolidation within our customers in the
Liquid Packaging, Folding Carton and Lottery Tickets industry and expect machine demand to be driven by
both, replacements as well as new installations.
The ancillary product segment continues to follow the general market development and support our
development in the Aftermarket segment.
Against this outlook the Group expects a revenue growth in the area of 0-5% and EBITDA margin in the area
of 4-6% (adjusted for non-recurring items) as well as a negative cash flow from operating activities in 2024.
Expected negative cash flow is due to working capital requirements related to capital sales projects.
Internal control
Internal control systems are designed for reporting in accordance with IFRS Accounting Standards as adopted
by the EU and additional disclosure requirements for annual reports of listed companies. The system
contributes to TRESU’s financial statements, providing fair presentations without material misstatements.
Comprehensive monthly accounting data is reported from all group subsidiaries. Such data is then analyzed
and monitored at group, company and other operational levels.
Operating risks
To ensure a stable supply TRESU has entered into long-term agreements with relevant sub-suppliers for the
delivery of essential components.
Tresu Group Holding A/S
11
Management commentary
Credit risk
The credit risks of the Group are primarily related to trade receivables and customer specific projects included
as part contract work in progress. The major part of the Group’s products and projects are delivered to well-
reputed, large international companies in the international packaging market.
Credit risk is monitored on an ongoing basis, and we perform an in-depth credit assessment of new customers
and ongoing assessment of existing customers. In recent years, no significant debtor losses have been recorded.
Currency risks
The consolidated financial statements are influenced by changes in exchange rates, as the result, and equity of
the subsidiaries are converted into Danish kroner at year-end based on the average and year-end rates.
The currency risk of the Group is primarily related to EUR and USD and mainly managed through matching
of incoming and outgoing payment currencies, whereas active hedging e.g. instruments is only used to a limited
extent in line with the established policy. In connection with considerations about the future financing structure
of the Group, Management has examined various possibilities of covering risks connected with loan financing,
cash flow in foreign currency and related interest costs.
Interest rate risks
Since the interest-bearing net liabilities have a variable interest, changes in the interest rate level may have a
significant direct effect on the earnings. Hedging of interest rate risk is not carried out.
Intellectual capital resources
The competitive advantage of the Group is the development and production of leading technology printing
machines and associated products, which entails particularly high demands on the intellectual capital resources
both in the development and production divisions.
It is essential that the Group recruit, develop and retain employees with a high level of education and the right
set of skills to maintain our high level of technical competence and innovation.
The Group has implemented a quality management system which documents the individual methods and
procedures to secure the critical business processes in relation to development, production and sales. The
system is maintained and updated as part of the ISO 9001:2015 certification.
Research and development activities
Development activities comprise continuous development of our technology, product portfolio and
development of new products with the ultimate objective of increasing our customers’ uptime and reducing
their cost of operations and/or climate footprint.
The Group’s total costs for R&D make up to approx. 1% of the revenue. We have, as in previous years, invested
significantly in future technology in line with the requirements to support the strategy and not at least meet the
customer’s demand.
Tresu Group Holding A/S
12
Management commentary
Tresu Group Holding A/S
13
Management commentary
Tresu Group Holding A/S
14
Management commentary
Tresu Group Holding A/S
15
Management commentary
Report on the underrepresented gender and other diversity (§99b)
2023
Board of Directors
Total numbers of members
Underrepresented gender (%).
Target (%)
Timeline for target
Other management level
Total numbers of members
Underrepresented gender (%).
Target (%)
Timeline for target
The Groups’ long-term ambition is to achieve a composition of the underrepresented gender at Board of
Directors, reflecting the composition of gender in the total organization. The target was that the share of women
All Group staff was recruited based on professional skills without regard to religion, race, gender, handicap or
age. The Group looks upon diversity as a strength and actively combat discrimination and aspire to promote
equal treatment. This applies to the management level as well as all other levels in the organization.
Tresu Group Holding A/S
16
Management commentary
Corporate governance
The Board of Directors and Executive Board of TRESU Group constantly seek to ensure that the management
structure and control systems of the group are appropriate.
On an ongoing basis, Management assesses whether this remains the case. The tasks and responsibilities of
Management are, among others, based on the Danish Companies Act, the Danish Financial Statements Act,
the Company’s Articles of Association and generally accepted practice for enterprises of the same size and
with the same international reach as TRESU Group. In this connection and because the Group’s principal
shareholder is Altor Fund IV, who is a member of Danish Venture Capital and Private Equity Association
(www.dvca.dk), the TRESU Group in all material respects and also complies with the guidelines for
responsible ownership and corporate governance of DVCA.
Shareholder relations
On an ongoing basis, the Board of Directors assesses whether the Company’s capital structure is in
accordance with the Company’s and its stakeholders’ interests. The overall objective is to ensure a capital
structure that supports long-term, profitable growth.
The Company’s Articles of Association stipulate no limits of ownership or voting rights.
The Tresu Investment Holding A/S’s indirect principal shareholder is Altor Fund IV, who indirectly possesses
99,9% of the Company’s shares. Former key employees and board members hold a minority of 0,1% of the
Company’s shares. By the end of 2023 Tresu Group Holding A/S owns none of its own shares.
Tresu Group Holding A/S
17
Management commentary
Board of Directors
Jean-Marc Lechene
Elected by Altor Fund IV in 2020. Chairman in Norican Global A/S and Caillay group, Member of the Board
for Velux A/S, Independent Director with McPhy and Head of the Advisory board of Baettr.
Previously worked as COO for Vestas (2012-2019) and holds an MBA from Instead and Ingenieur Civil, Ecole
Nationale supérieure des Mines de Paris.
Ola Harald Erici
Elected by Altor Fund IV. Member of the Board of Directors since 2017. Chairman of the Board of Finqr AB,
The Akkermansia Company SA and Alogis AB. Member of the Board of TRESU A/S and Dermalab Lund
AB.
Søren Dan Johansen
Elected by Altor Fund IV. Joined Altor in 2011 and Member of the Boards of C Worldwide Holding A/S,
Haarslev Industries A/S, Hamlet Protein A/S, Norican Group, Wrist Ship Supply A/S and TRESU A/S.
Previously worked at Kromann Reumert (1989-2011) and holds a MSc in Law from Copenhagen University.
Stephan Plenz
Elected by Altor Fund IV in 2021. Also, a member of the Board of Directors for Sennheiser, Landa Digital
Print, nominated by Altana as observer since 2022 and independent consultant.
Over 30 years’ experience in the high-tech industry including more than 20 years in leading management
positions and from 2008 to 2020 Member of the Management Board (CTO) of Heidelberger Druckmaschinen
AG. He is holding a degree of Mechanical Engineering.
Responsibilities of the Board of Directors
The Board of Directors has monitored the preparation of the financial reporting, the internal controls and the
audit of the financial statements.
The Board of Directors ensures that the Executive Board complies with the objectives, strategies and
procedures laid down by the Board of Directors. The reporting from the Executive Boards of the respective
companies takes place systematically, both at meetings and through written and verbal reporting on an ongoing
basis.
Among other things, this reporting includes a description of the development in key markets, as well as the
Group’s operational and financial development. The Board of Directors holds meetings according to a fixed
plan, with at least five meetings a year and extraordinary meetings, if required.
Events after the balance sheet date
No events have occurred after the balance date to this date which will influence the evaluation of this annual
report.
Parent company’s primary activities
Tresu Group Holding A/S activities comprise the ownership of 100% of the shares in Tresu Investment Holding
A/S and fully owned subsidiaries.
Tresu Group Holding A/S
18
Consolidated statement of comprehensive income
1/1 - 31/12
1/1 - 31/12
2023
2022
Notes
DKK'000
DKK'000
Revenue
3,4
Production costs
5
(497.457 )
(427.642 )
Gross profit/loss
(108.676 )
(68.607 )
Distribution costs
(42.434 )
(45.150 )
Administrative costs
6
(37.845 )
(43.729 )
Other operating income
(65 )
Operating profit/loss (EBIT)
7,8,9
(189.020 )
(155.414 )
(52.045)
Financial income
10
Financial expenses
11
(54.189 )
(33.900 )
Profit/loss before tax
(239.487 )
(188.689 )
Tax on profit/loss for the year
12
8.213
Loss for the year
(215.394 )
(165.439 )
Items that may be recycled subsequently to the income statement:
Exchange rate adjustments, foreign companies
(925 )
(423 )
Tax on other comprehensive income
Other comprehensive income, net of tax
(925 )
(423 )
Total comprehensive income
(216.319 )
(165.862 )
Profit for the year attributable to:
Owners of the Company
(215.394 )
(165.439 )
Total comprehensive income for the year attributable to:
Owners of the Company
(216.319 )
(165.862 )
Tresu Group Holding A/S
19
Consolidated balance sheet
31.12.2023
31.12.2022
Notes
DKK'000
DKK'000
Goodwill
13
Completed development projects
Patents and licenses
Brand
Customer relationship
Intangible assets
9,14
Plant and machinery
Other fixtures and fittings, tools and equipment
Leasehold improvements
Lease assets
Property, plant and equipment
9,15
Deposits
Other non-current assets
Non-current assets
Inventories
16
Trade receivables
17
Contract work in progress
18
Tax receivables
Other receivables
Prepayments
Receivables
Cash
Current assets
Assets
Tresu Group Holding A/S
20
Consolidated balance sheet
31.12.2023
31.12.2022
Notes
DKK'000
DKK'000
Contributed capital
19
Other reserves
Retained earnings
(512.945 )
(297.550 )
Equity
(344.885 )
(147.887 )
Provisions for deferred tax
20
Corporate bonds
22
Lease debt
Payable to group enterprises
Other payables
Non-current liabilities
Current portion of long-term lease liabilities
Bank debt
23
Contract work, liabilities
18
Other provisions
21
Prepayment customers
Trade payables
Income tax payable
Other payables
24
Current liabilities
Total liabilities
Equity and liabilities
Tresu Group Holding A/S
21
Consolidated statement of changes in equity
Contri-
buted
Other
Retained
capital
Reserves
earnings
Total
DKK'000
DKK'000
DKK'000
DKK'000
Equity at 1 January 2023
(297.550 )
(147.887 )
Profit for the period
(215.394 )
(215.394 )
Other comprehensive income
(924 )
(1 )
(925 )
Comprehensive income
(924 )
(215.395 )
(216.319 )
Capital increase
Equity at 31 December 2023
(512.945 )
(344.885 )
Equity at 1 January 2022
(132.592 )
(12.250 )
Other adjustments
(1 )
Profit for the period
(165.439 )
(165.439 )
Other comprehensive income
(423 )
(423 )
Comprehensive income
(423 )
(165.439 )
(165.862 )
Tax exempt contribution
Capital increase
Equity at 31 December 2022
(297.550 )
(147.887 )
Other reserves consist of exchange differences on translating foreign companies.
Tresu Group Holding A/S
22
Consolidated cash flow statement
1/1 - 31/12
1/1 - 31/12
2023
2022
Notes
DKK'000
DKK'000
Operating profit/loss
(189.020 )
(155.414 )
Amortization and depreciation losses
Impairment losses
Other provisions
(14.841 )
Working capital changes
27
(33.400 )
Cash flows from ordinary operating activities
(55.369 )
Financial income received
Financial expenses paid
(41.043 )
(27.948 )
Income taxes refunded/(paid)
(13.142 )
Cash flow from operating activities
(109.256 )
Acquisition etc. of intangible assets
(3.204 )
(3.182 )
Acquisition etc. of property, plant and equipment
(3.189 )
(3.459 )
Proceeds from disposal of financial fixed assets
(82 )
(77 )
Sale of assets
Disposal ect. of property, plant and equipment
Cash flow from investing activities
(6.406 )
(3.182 )
Borrowing or repayment of bank debt
(16.674 )
Capital increase
Proceeds from (repayments of) related party borrowings
Leasing
(9.577 )
(9.947 )
Cash flows from financing activities
Increase/decrease in cash and cash equivalents
(19.708 )
Cash and cash equivalents at 1 January
Cash and cash equivalents end of year
28
Cash and cash equivalents at year end are composed of:
Cash
Cash and cash equivalents end of year
Tresu Group Holding A/S
23
Notes to consolidated financial statements
Overview notes
1. Accounting policies and material accounting policy information
2. Use of estimates and judgement
3. Revenue and segmentation of operations
4. Revenue
5. Production costs
6. Fees to auditors appointed at the Annual General Meeting
7. Staff costs
8. Defined contribution plans
9. Amortization, depreciation and impairment
10. Financial income
11. Financial expenses
12. Income tax
13. Goodwill
14. Other intangible assets
15. Property, plant and equipment
16. Inventories
17. Trade receivables
18. Contract work in progress
19. Share capital
20. Deferred tax
21. Provisions
22. Corporate bonds
23. Debts banks
24. Other payables
25. Contingent liabilities
26. Pledged assets etc.
27. Changes in working capital
28. Cash and cash equivalents and changes in liabilities from financing activities
29. Financial risks
30. Related parties with controlling interest
31. Shareholder relations
32. Consolidation
33. Events after the balance sheet date
34. Adopting the annual report for publication
35. Accounting policies
Tresu Group Holding A/S
24
Notes to consolidated financial statements
1.
Accounting policies and material accounting policy information
The Annual Report of Tresu Group Holding A/S, a Danish company, and its subsidiary companies has been
prepared in accordance with IFRS Accounting Standards, as adopted by the EU, and additional Danish
requirements applicable to reporting large enterprises of class C, including the statutory order on adoption of
IFRS issued pursuant to the Danish Financial Statements Act.
The consolidated financial statements are presented for the period 1 January 2023 to 31 December 2023,
including its consolidated subsidiaries.
The consolidated financial statements are presented in Danish kroner, which is the Parent Company’s
functional currency.
The material accounting policy information adopted can be found in note 35.
Implementation of new standards, amendments, and interpretations
The Company has implemented the following amendments or new standards (IFRS) for financial year 2023:
The amendments came into effective for financial years beginning on or after 1 January 2023:
•
IAS 1, Presentation of Financial Statements and Practice Statement 2: The Amendment
clarifies that the disclosures of accounting policies are only required for material line items.
However, it is still permitted to disclose the accounting policies for non-significant line
items, if the disclosures does not obscure the information provided by the financial
statement.
•
IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors: The amendment
introduces a new definition of accounting estimates: “Accounting estimates are monetary
amounts in financial statements that are subject to measurement uncertainty”. The new
definition emphasises that accounting estimates involves the utilisation of measurement
techniques and assumptions. This is made to assist users of the financial statement to
distinguish between changes in accounting estimate and changes in accounting policies.
•
IAS 12, Income Taxes: The amendment requires the recognition of deferred tax on
transactions that, on initial recognition, give rise to equal amounts of taxable and deductible
temporary differences.
•
IAS 12, Income taxes: International Tax Reform - Pillar II Model Rules: The amendment
contain two parts: A temporary exemption for recognition of deferred taxes from the effect
of implementation of Pillar II. Additionally, the amendment specifies some disclosure
requirements for companies affected by Pillar II, including estimable information of the
entity’s exposure to the Pillar II income taxes
Tresu Group Holding A/S has assessed the effect of the new standards, amendments, and interpretations. Tresu
Group Holding A/S has concluded that all standards, amendments, and interpretations effective for financial
years beginning on or after 1 January 2023 are either not relevant to the Tresu Group Holding A/S or have no
significant effect on the Financial Statements of the Tresu Group Holding A/S.
Tresu Group Holding A/S
25
New standards, interpretations and amendments adopted by the Group
The following new standards, amendments, and interpretations of relevance to the Tresu Group Holding A/S
have been adopted by the IASB and adopted by the EU. The standards are not yet effective and will therefore
not be implemented in the Annual Reports until they take effect.
•
IAS 1, Presentation of Financial Statements: Clarify that the definition of current liabilities
must be based on the rights existing on the balance sheet date. The requirement for an
unconditional right to postpone payment for 12 months from the balance sheet date is
therefore changed to a right to defer payment for 12 months from the balance sheet date.
The amendment will be effective for financial years beginning on or after 1 January 2024.
•
IFRS 16, Leasing: The amendment to IFRS 16 clarifies the leased share in a sale and
leaseback transaction should be measured to ensure no gain or loss arises from recognition
of the lease asset. Furthermore, it is clarified that the lease liability should be measured to
reflect the present value of the expected future lease payments.
The amendment will be effective for financial years beginning on or after 1 January 2024.
The IASB has issued the following new standards, amendments and new interpretations which could be
relevant to Tresu Group Holding A/S, but which have not yet been adopted by the EU:
•
IAS 7 Cash Flow Statement and IFRS 7 Financial Instruments: Disclosures: The amendment
introduces disclosure requirements for supplier finance arrangements (reverse factoring),
regarding terms and conditions in the agreements, including payment terms for both the
liabilities comprised by the agreements and similar for those not covered by the agreements.
Significant variances must be explained. The amendment also requires disclosure of
recognised values at both the beginning and the end of the year for the liabilities comprised
by the agreements. The amendment will be effective for financial years beginning on or after
1 January 2024.
•
IAS 21, Foreign exchange rates: The amendment clarifies the procedures relating to the
assessment of whether a currency is exchangeable into another currency, and when it is not,
how to determine the exchange rate to use and which disclosures to provide. The amendment
will be effective for financial years beginning on or after 1 January 2025.
Tresu Group Holding A/S expects to implement these new standards, amendments, and interpretations when
they take effect. The Group has assessed the effect of the new standards, amendments, and interpretations and
we have concluded that all standards, amendments and interpretations are either not relevant to the Group or
have no significant effect on the Financial Statements of the Group
Tresu Group Holding A/S
26
Notes to consolidated financial statements
2.
Use of estimates and judgement
Management of the Company has made a number of estimates and assumptions related to the reporting of
assets and liabilities and the disclosure of contingent assets and liabilities in the preparation of these
consolidated financial statements in conformity with IFRS. Actual results could differ from those estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates
are recognized in the period in which the estimate is revised if the revision affects only that period or in the
period of the revision and future periods if the revision affects both current and future periods.
Going concern
The group has per 31 December 2023 a negative equity of DKK 344,9 million.
In the second half of 2023, the Group obtained an extension of the repayment date on the bond loan from
January 2025 to January 2027, and at the same time as the Group's shareholder, Altor Fund IV Holding AB
(Altor), established a loan facility of up to DKK 75.0m to Tresu A/S. Furthermore, the bank agreement has
been prolonged to November 2026.
The budget for 2024 shows that there is sufficient liquidity available for continued operations, which is based,
among other things, on the above, as well as an increase in revenue derived from the current order book and
expected order intake. Predictions about the future are, however, associated with uncertainty, and the budget
for 2024 is particularly uncertain, as a result of the fact that Tresu is a project company, where changes
compared to what is expected can happen quickly.
Overall, it is the assessment of the company's management and board of directors that the annual report for
2023 can be submitted under the going concern premise.
Tresu Group Holding A/S
27
Notes to consolidated financial statements
Intangible assets - impairment
During annual testing of goodwill and other intangible assets for impairment, or when an indication of
impairment exists, an assessment is made as to how those activities of the Group (cash-generating units) that
relate to goodwill and intangible assets would be able to generate sufficient positive future net cash flows to
support the value of goodwill and intangible assets relating to those activities. Due to the nature of the business,
estimates are made of cash flows for many years ahead, which inherently results in some uncertainty. The
Company expects to be able to return to former levels of revenue and EBITDA due to penetration of the US
market and the customer portfolio, consisting of market leaders within the Company´s main markets. The risk
and uncertainty related to achieving this are reflected in the discount rate applied and in the terminal value
growth rate.
Please see specification in note 13.
Contract work in progress
The method for estimating work in progress is based on total cost for calculation of percentage of completion
(POC). Contract work in progress is continuously assessed to see if the net realizable value is higher than the
cost incurred.
The stage of completion on Contract work in progress is based on an estimate of cost to finish the asset. These
estimates might change as assets evolve, cf. note 35 accounting policies on revenue.
It may be necessary to change previous estimates due to changes in those circumstances on which the estimates
are based, or due to new information or subsequent events.
Lease of property
The Company’s property leases allow for extension at the discretion of the Company. The determination of
the lease term is significant to the calculation of lease liabilities and right-of-use assets, and consequently, due
to discounting, to depreciation and interest costs for the year. Management has assessed the probable lease
term for individual leases in relation to the Company’s strategic goals and current plans. If these goals and
plans are changed, the lease liabilities and right-of-use assets are revised. The matter is described in further
detail in note 35.
Tresu Group Holding A/S
28
Notes to consolidated financial statements
3.
Revenue and segmentation of operations
Management has analyzed segmentation of the operations through the strategic management, decision and
reporting structure used by Management. The analysis resulted in two segments being identified.
Solutions
Ancillary
Group
2023
DKK'000
DKK'000
DKK'000
Revenue
258.105
130.676
388.781
Revenue, total
258.105
130.676
388.781
Allocated EBITDA
(30.169)
16.657
(13.512)
non-allocated costs
6.384
EBITDA
(7.128)
Amortization, depreciation and impairment
(181.892)
EBIT
(189.020)
Finacial net
(50.467)
Profit/loss before tax
(239.487)
Solutions
Ancillary
Group
2022
DKK'000
DKK'000
DKK'000
Revenue
222.783
136.252
359.035
Revenue, total
222.783
136.252
359.035
Allocated EBITDA
(24.169)
7.723
(16.446)
non-allocated costs
(1.257)
EBITDA
(17.703)
Amortization, depreciation and impairment
(137.711)
EBIT
(155.414)
Finacial net
(33.275)
Profit/loss before tax
(188.689)
Revenue from sale of products and services split by type:
2023
2022
DKK'000
DKK'000
Solutions
258.105
222.783
Ancillary
130.676
136.252
Total activities
388.781
359.035
Tresu Group Holding A/S
29
Notes to consolidated financial statements
Revenue split by geography:
2023
2022
DKK'000
DKK'000
USA
169.901
123.386
Germany
49.653
61.639
China
22.391
49.845
Italy
26.244
21.841
Netherlands
13.620
11.715
Sweden
5.882
3.858
Denmark
2.592
3.377
Hungary
1.478
3.279
Rest of Europe
33.665
29.098
South and North America
23.571
17.443
Rest of Asia
22.562
21.664
Middle East and Africa
17.016
11.832
Other markets
206
58
Total net revenue
388.781
359.035
Timing of revenue recognition:
2023
2022
DKK'000
DKK'000
Products and services transferred at a point in time
248.672
232.173
Products transferred over time
140.109
126.862
388.781
359.035
4.
Revenue
2023
2022
DKK'000
DKK'000
Sales of goods
240.110
224.604
Sales of service
8.562
7.569
Income from contract work in progress (turnkey projects)
140.109
126.862
Revenue
388.781
359.035
Tresu Group Holding A/S
30
Notes to consolidated financial statements
5.
Production costs
2023
2022
DKK'000
DKK'000
Materials consumption
225.473
208.480
Write-down of inventories
2.364
6.831
Other production costs
2.188
3.944
Staff costs
68.890
54.240
Depreciation, amortization and impairment
172.262
127.764
Research and development
5.252
7.231
Indirect production costs
21.028
19.152
Production costs
497.457
427.642
6.
Fees to auditors appointed at the Annual General Meeting
2023
2022
DKK'000
DKK'000
PricewaterhouseCoopers
Statutory audit
986
688
Tax and VAT advisory services
0
14
Other services
142
892
Total fees to auditors appointed at the Annual General Meeting
1.128
1.594
Other services relates to extra work in relation to the capital situation.
Tresu Group Holding A/S
31
Notes to consolidated financial statements
7.
Staff costs
2023
2022
DKK'000
DKK'000
Board fees
1.151
1.150
Wages and salaries
108.788
100.434
Pensions
8.569
6.555
Other social security costs
2.361
2.051
Total staff costs
120.869
110.190
Staff costs are distributed as follows:
Production
69.848
62.847
Sales and distribution
25.480
21.013
Administration
25.541
26.330
Total staff costs
120.869
110.190
Average number of employees
Remuneration of management
Other key management
Board of Directors
Executive board
personnel
2023
2022
2023
2022
2023
2022
DKK'000
DKK'000
DKK'000
DKK'000
DKK'000
DKK'000
Board fee
1.151
1.150
0
0
0
0
Salary and wages
0
0
6.977
7.483
6.725
5.718
Pension
0
0
356
270
571
448
1.151
1.150
7.333
7.753
7.296
6.166
Remuneration of the executive directors and key management personnel is based on a fixed salary, bonus and
non-monetary benefits such as company car, telephone etc. Executive directors and other key management
personnel are covered by the same pension agreement as other employees. The usual notification period applies
in the event of resignation of management. The total amount for key management amounts to 15.780 DKK’000
in 2023 (2022: 15.069 DKK’000).
Tresu Group Holding A/S
32
Notes to consolidated financial statements
8.
Defined contribution plans
The Group has defined contribution plans with the majority of the employees in the Danish entities.
According to the agreements the Group entities are monthly paying an amount of 10% of the base
salaries and wages. The payment regarding each employee is paid to an independent pension company.
2023
2022
DKK'000
DKK'000
Cost to defined contributions plans
8.569
6.555
There are only minor obligations regarding benefit plans to employees outside of Denmark.
9.
Amortization, depreciation and impairment
2023
2022
DKK'000
DKK'000
Amortization, intangible assets
39.972
45.637
Impairment losses, intangible assets
125.000
75.000
Depreciation, property, plant and equipment
7.343
7.127
Amortization, lease assets
9.577
9.947
Total amortization, depreciation and impairment
181.892
137.711
Amortization, depreciation and impairment are distributed as follows:
Production
172.262
127.719
Administration
9.630
9.992
Total amortization, depreciation and impairment
181.892
137.711
Tresu Group Holding A/S
33
Notes to consolidated financial statements
10.
Financial income
2023
2022
DKK'000
DKK'000
Gain on foreign exchange
166
41
Other financial income
3.556
584
Total financial income
3.722
625
Other financial income is effected by a modification gain linked to renewed bonds agreement.
11.
Financial expenses
2023
2022
DKK'000
DKK'000
Interest expenses
42.331
25.927
Bond price adjustment
1.924
1.924
Loss on foreign exchange
3.372
610
Other financial expenses
4.363
3.199
Interest regarding leasing liabilities
2.199
2.240
Total financial expenses
54.189
33.900
Tresu Group Holding A/S
34
Notes to consolidated financial statements
12.
Income tax
2023
2022
DKK'000
DKK'000
Current tax for the year
(10.361)
(11.542)
Deferred tax for the year
(12.862)
(9.005)
Adjustments tax from deferred tax previous years
(793)
(7)
Adjustments recognized for current tax from prior periods
(77)
(2.696)
Corporation tax for the year
(24.093)
(23.250)
Income tax expense attributable to income before income taxes differed from the amounts computed by
applying the Danish income tax rate of 22%. For foreign entities is used the actual tax rate in the country
concerned.
Tax on profit the year breaks down as follows:
Calculated tax on profit for the year before tax
22,0%
22,0%
Tax effect of:
Adjustment prior year
0,0%
1,4%
Non-deductible expenses/non-taxable income
(12,0%)
(11,1%)
Effective tax rate (%)
10,0%
12,3%
Tresu Group Holding A/S
35
Notes to consolidated financial statements
13.
Goodwill
2023
2022
DKK'000
DKK'000
Cost at the beginning of the year
249.000
249.000
Cost at the end of the year
249.000
249.000
Impairment losses at the beginning of the year
(150.000)
(75.000)
Impairment losses for the year
(99.000)
(75.000)
Impairment losses at the end of the year
(249.000)
(150.000)
Carrying amount at the end of the year
0
99.000
Goodwill is allocated to segments and tested for impairment once a year and in the case of impairment
indicators. The result of the 2023 analysis identified a need to impair remaining goodwill for the value of 99
mDKK as of 31 December 2023.
The impairment loss is related to the Ancillary segment as budget has not been realized and the fact that
revenue levels for some years have been lower than expected leading to announcements of negative adjustment
to full year guidance. In respect of goodwill and other intangibles causing need for estimation uncertainty in
the impairment test calculations.
In the impairment test the discounted value of future net cash flows are compared with the carrying amount of
the Cash Generating Unit.
The key assumptions underlying the calculation of value in use are the determination of EBITDA growth
(revenue, gross margins and fixed costs) in the period 2024 to 2028, discount rate and terminal value growth
rate.
The forecast for 2024-2028 are based on projections on growth in revenue and improved gross margins but
with lower numbers than used in the impairment test for 2023 as significant budget deviations has been realized
during previous years causing a need for some prudency in the projections.
Key assumptions from the impairment testing of goodwill are as follows:
• Annual revenue growth for 2024-2026 of 8,5% and for 2025-2026 and the terminal period 2% (3% in
2022)
• Improvement in gross margin from 22,3% in 2023 to 29,0% in 2028. It should be mentioned that the
gross margin for 2023 was negatively impacted by overruns on the larger projects.
• Leverage of fixed costs for 2024-2026 with an increase of 3,5%
• The discount rate is determined based on the Company´s borrowing rate plus a risk premium that
reflects the risk involved in investing in shares and the risk involved in the activity performed. A base
after-tax discount rate of 12,3% (13,1% in 2022) is used (equivalent to a before tax discount rate of
15,7% (16,8% in 2022) and is supported by equivalent external benchmarks.
Tresu Group Holding A/S
36
Notes to consolidated financial statements
14.
Other intangible assets
Completed
Patents
Customer
development
and
relation-
DKK'000 2023
projects
licenses
Brand
ships
Total
Cost at beginning of the year
50.817
220.688
37.900
212.700
522.105
Additions during the year
3.204
0
0
0
3.204
Disposals during the year
(1.722)
0
0
0
(1.722)
Cost at the end of the year
52.299
220.688
37.900
212.700
523.587
Amortization and impairment at
the beginning of the year
(26.604)
(89.667)
0
(153.750)
(270.021)
Impairment for the year
0
(13.000)
0
(13.000)
(26.000)
Amortization for the year
(6.022)
(15.414)
0
(18.536)
(39.972)
Reversal regarding disposals
1.663
0
0
0
1.663
Amortization and impairment
losses at the end of the year
(30.963)
(118.081)
0
(185.286)
(334.330)
Carrying amount at the end
of the year
21.336
102.607
37.900
27.414
189.257
Completed
Patents
Customer
development
and
relation-
DKK'000 2022
projects
licenses
Brand
ships
Total
Cost at beginning of the year
52.833
220.688
37.900
212.700
524.121
Additions during the year
3.182
0
0
0
3.182
Disposals during the year
(5.198)
0
0
0
(5.198)
Cost at the end of the year
50.817
220.688
37.900
212.700
522.105
Amortization and impairment at
the beginning of the year
(25.667)
(74.252)
0
(129.402)
(229.321)
Amortization for the year
(5.874)
(15.415)
0
(24.348)
(45.637)
Reversal regarding disposals
4.937
0
0
0
4.937
Amortization and impairment
losses at the end of the year
(26.604)
(89.667)
0
(153.750)
(270.021)
Carrying amount at the end
of the year
24.213
131.021
37.900
58.950
252.084
Tresu Group Holding A/S
37
Notes to consolidated financial statements
Apart from goodwill and brand, all other intangible assets are regarded as having determinable useful lives
over which the assets are amortized; see accounting policies in note 35. Estimated useful life of Patents is on
average 14 years. Estimated useful lives of Customer Relationships are between 4-10 years. Estimated useful
lives of completed development projects are between 3-12 years.
Management has tested the carrying amount of the above-mentioned intangibles using the same assumptions
as listed in note 13 and using the same principles as used in the purchase price allocation, where to intangible
assets were identified and valued. Management has assessed impair losses related to patents (DKK 13,0m) and
customer relations (DKK 13,0m). In respect of the reasons for the impairment loss we refer to note 13. In
addition the sales and margins on some larger capital sales projects have been below expectations.
The Company's development expenses relate to capitalization of costs in respect of continuous development
of product range and new ancillary products with the ultimate objective of increasing our customers’ uptime
and reducing their cost of operations and/or climate footprint. In addition, it is the intention with these projects
to manufacture, market or use the projects for future commercial purposes.
The Group regularly reviews the carrying amounts of its definite-lived intangible assets to determine whether
there is an indication of an impairment loss.
Development projects are tested for impairment annually if there is an indication that the asset should be
impaired.
The cost of development projects comprises costs such as salaries and amortization that are directly and
indirectly attributable to the development projects.
Tresu Group Holding A/S
38
Notes to consolidated financial statements
15.
Property, plant and equipment
Other
fixtures
and fittings,
Leasehold
Plant and
tools and
improve-
DKK'000 2023
machinery
equipment
ments
Total
Cost at beginning of the year
58.466
9.567
5.122
73.155
Exchange rate adjustments
(7)
(68)
0
(75)
Additions during the year
1.451
1.738
0
3.189
Disposals during the year
(3.257)
(4.378)
0
(7.635)
Cost at the end of the year
56.653
6.859
5.122
68.634
Amortization at the
beginning of the year
(32.266)
(4.670)
(2.331)
(39.267)
Exchange rate adjustments
2
47
0
49
Amortization for the year
(5.548)
(1.196)
(599)
(7.343)
Amortization reversed the year
3.234
4.332
0
7.566
Amortization and impairment
losses at the end of the year
(34.578)
(1.487)
(2.930)
(38.995)
Carrying amount at the end
of the year
22.075
5.372
2.192
29.639
Tresu Group Holding A/S
39
Notes to consolidated financial statements
Other
fixtures
and fittings,
Leasehold
Plant and
tools and
improve-
DKK'000 2022
machinery
equipment
ments
Total
Cost at beginning of the year
58.119
8.154
5.107
71.380
Exchange rate adjustments
14
117
0
131
Additions during the year
1.084
2.360
15
3.459
Disposals during the year
(751)
(1.064)
0
(1.815)
Cost at the end of the year
58.466
9.567
5.122
73.155
Amortization at the
beginning of the year
(27.752)
(4.361)
(1.732)
(33.845)
Exchange rate adjustments
(2)
(72)
0
(74)
Amortization for the year
(5.241)
(1.287)
(599)
(7.127)
Amortization reversed the year
729
1.050
0
1.779
Amortization and impairment
losses at the end of the year
(32.266)
(4.670)
(2.331)
(39.267)
Carrying amount at the end
of the year
26.200
4.897
2.791
33.888
Tresu Group Holding A/S
40
Notes to consolidated financial statements
15. Property, plant and equipment – lease assets
Other
DKK'000 2023
Property
Cars
assets
Total
Cost at Jan 1, 2023
110.020
3.211
2.678
115.909
Foreign exchange rate adjustment
(201)
(10)
(49)
(260)
Additions
0
1.488
1.923
3.411
Disposals
0
(1.064)
(2.422)
(3.486)
Re-measurre / modification of lease assets
0
(65)
0
(65)
Cost at Dec 31, 2023
109.819
3.560
2.130
115.509
Depreciations and impairment at Jan 1, 2023
(26.024)
(1.793)
(2.324)
(30.141)
Foreign exchange adjustment
0
9
53
62
Disposals
0
1.054
2.417
3.471
Depreciations
(8.110)
(976)
(491)
(9.577)
Depreciations and impairment
at Dec 31, 2023
(34.134)
(1.706)
(345)
(36.185)
Carrying amount at Dec 31, 2023
75.685
1.854
1.785
79.324
Other
DKK'000 2022
Property
Cars
assets
Total
Cost at Jan 1, 2022
108.022
3.666
4.098
115.786
Foreign exchange rate adjustment
415
(12)
(324)
79
Additions
0
427
0
427
Disposals
(1.644)
(1.070)
(1.275)
(3.989)
Re-measurre / modification of lease assets
3.227
200
179
3.606
Cost at Dec 31, 2022
110.020
3.211
2.678
115.909
Depreciations and impairment at Jan 1, 2022
(19.583)
(2.019)
(2.906)
(24.508)
Disposals
1.642
1.071
1.601
4.314
Depreciations
(8.083)
(845)
(1.019)
(9.947)
Depreciations and impairment
at Dec 31, 2022
(26.024)
(1.793)
(2.324)
(30.141)
Carrying amount at Dec 31, 2022
83.996
1.418
354
85.768
Tresu Group Holding A/S
41
Notes to consolidated financial statements
16. Inventories
2023
2022
DKK'000
DKK'000
Raw materials
36.299
37.214
Work in progress
33.931
26.823
Finished goods
23.106
22.926
Write-down inventories
(13.497)
(13.723)
Total inventories
79.839
73.240
Write-down of inventories for the year 2023 was DKK 2,4m (2022: DKK 6,8m).
17. Trade receivables
2023
2022
DKK'000
DKK'000
Account receivable
49.045
42.414
Allowance for bad debts
(1.259)
(3.863)
Accounts receivable
47.786
38.551
Impairment losses at 1 January
3.863
4.723
Impairment loss provisioned
122
(406)
Realized for the period
(2.590)
0
Reversed
(136)
(454)
Impairment losses on receivables*
1.259
3.863
Trade
receivables
2023
Trade
receivables
2022
Distributed by age
DKK'000
DKK'000
Not overdue
25.463
25.426
0-30 days
11.540
3.404
31-60 days
6.428
1.966
61-90 days
1.897
1.072
Above 91 days
3.717
10.546
Accounts receivable
49.045
42.414
*Related to trade receivables overdue above 91 days.
Tresu Group Holding A/S
42
Notes to consolidated financial statements
The Group has no significant risk related to a single customer or market, and historical losses has been very
limited.
Write-downs for bad and doubtful receivables are based on individual evaluations of the aging profiles, and a
% has been provisioned according to expected risk of the receivable.
After this analysis it is still the expectation that future losses will be very limited, and we have therefor kept
the method from prior years.
Please see note 29 for further information.
Tresu Group Holding A/S
43
Notes to consolidated financial statements
18. Contract work in progress (turnkey projects)
2023
2022
DKK'000
DKK'000
Sales value of contract work in progress
210.023
169.405
Progress billings regarding contract work in progress
(252.711)
(249.840)
(42.688)
(80.435)
Net value in the balance sheet:
Contract work in progress
6.387
19.479
Other provisions
(1.622)
(16.786)
Contract work, liabilities
(47.453)
(83.128)
(42.688)
(80.435)
Amounts relating to contract work in progress are balances due from customers that arise when the Group
carried out work at the balance sheet date. These agreements do not include a variable consideration. The
Group receives payment from customers in line with the agreed payments terms at placing the order, prior to
shipment of machines and a minor part after installation/commissioning acceptance. Any amount previously
recognized as a contract work in progress is reclassified to trade receivables at the point at which it is invoiced
to the customer. The Group expects that all performance obligations for ongoing projects will be met within a
period of 12 months. End of 2023 we still have 7 projects started before this actual year, which are not 100%
finalized, with total sales value of mDKK 85.4 recognized in 2022.
19. Share capital
The share capital consists of share with a nominal value of DKK 1 each. The shares have been paid in full.
The shares have not been divided into classes and no special rights have been attached to the share.
The share capital can be made up as follows:
2023
2022
DKK'000
DKK'000
Number of share 1 January
146.349
116.604
Capital increase
19.321
29.745
Number of shares 31 December
165.670
146.349
Tresu Group Holding A/S
44
Notes to consolidated financial statements
20. Deferred tax
2023
2022
DKK'000
DKK'000
Deferred tax liabilities
37.687
51.342
Total deferred taxes
37.687
51.342
Recognized
Deferred
Recognized
Recognized
in other
Total
tax 01.01
in profit
equity
comp.inc.
31.12
2023
DKK'000
DKK'000
DKK'000
DKK'000
DKK'000
Intangible assets
47.118
(13.818)
0
0
33.300
Property, plant and equipment
5.239
(972)
0
0
4.267
Inventories
(859)
1.091
0
0
232
Receivables
(88)
30
0
0
(58)
Profits, contract work in progress
4.857
673
0
0
5.530
Liabilities and other provisions
(4.925)
(659)
0
0
(5.584)
Temporary differences
51.342
(13.655)
0
0
37.687
Recognized
Deferred
Recognized
Recognized
in other
Total
tax 01.01
in profit
equity
comp.inc.
31.12
2022
DKK'000
DKK'000
DKK'000
DKK'000
DKK'000
Intangible assets
56.519
(9.401)
0
0
47.118
Property, plant and equipment
5.102
137
0
0
5.239
Inventories
686
(1.545)
0
0
(859)
Receivables
(185)
97
0
0
(88)
Profits, contract work in progress
2.077
2.780
0
0
4.857
Liabilities and other provisions
(3.851)
(1.074)
0
0
(4.925)
Temporary differences
60.348
(9.006)
0
0
51.342
Tresu Group Holding A/S
45
Notes to consolidated financial statements
21. Other Provisions
2023
2022
DKK'000
DKK'000
Other provisions 1 January
19.895
8.458
Realized for the period
(630)
(6.651)
Provisioned for the year
1.307
1.302
Adjustment for the year
(602)
0
Specific customer projects
(15.165)
16.786
Other provisions
4.805
19.895
Provisions are recognized in the balance sheet:
Current liabilities
4.805
19.895
4.805
19.895
Other provisions consist of warranties and loss making customer projects, and are primarily due within one
year.
Tresu Group Holding A/S
46
Notes to consolidated financial statements
22. Corporate bonds
2023
2022
DKK'000
DKK'000
Corporate bonds
448.984
439.471
Corporate bonds fees, amortized
(4.234)
(5.260)
444.750
434.211
Corporate bonds in the balance sheet:
Non-current liabilities
444.750
434.211
444.750
434.211
Interest
Amortized
Nominal
Fair
fixed or
cost
Value
Value
Currency
Expires
variabel
DKK'000
DKK'000
DKK'000
Corporate bond, 3m
Euribor + 500 bps
EUR
Jan. 2027
Variable
444.750
430.406
64.561
31 December 2023
444.750
430.406
64.561
Interest
Amortized
Nominal
Fair
fixed or
cost
Value
Value
Currency
Expires
variabel
DKK'000
DKK'000
DKK'000
Corporate bond, 3m
Euribor + 500 bps
EUR
Jan. 2025
Variable
434.211
430.406
215.203
31 December 2022
434.211
430.406
215.203
Since the issue in September 2017, the bonds have been adjusted with the exchange rate EUR/DKK at the end
of the year. Level 2 from the fair value hierarchy has been used.
In the second half of 2023, the Group obtained an extension of the repayment date on the bond loan from
January 2025 to January 2027.
The Group obtained an extension of the repayment date on the bond loan from January 2025 to January 2027.
Further, Interest payments may be rolled up. No other changes to the terms were made. On this basis,
Management has assessed that the terms are not substantially different from the terms applying before the
amendment and that consequently, the bond liability is remeasured at the revised contractual cash flows
discounted at the original effective interest rate. A gain of DKK 3,4m was recognised and included in financial
income.
The bonds have not been traded in 2023 and the fair value is based on a single trade in January 2024. The fair
value is calculated based on level 2. The fair value is thus subject to some uncertainty.
Tresu Group Holding A/S
47
Notes to consolidated financial statements
23. Debt banks
2023
2022
DKK'000
DKK'000
Overdraft facilities
40.926
19.690
Total bank debts
40.926
19.690
Debts to banks are recognized in the balance sheet:
Current liabilities
40.926
19.690
40.926
19.690
Interest
Amortized
Nominal
Fair
fixed or
cost
Value
Value
Currency
Expires
variabel
DKK'000
DKK'000
DKK'000
Overdraft facility
DKK
2026
Variable
40.926
40.926
40.926
31 December 2023
40.926
40.926
40.926
Interest
Amortized
Nominal
Fair
fixed or
cost
Value
Value
Currency
Expires
variabel
DKK'000
DKK'000
DKK'000
Overdraft facility
DKK
2024
Variable
19.690
19.690
19.690
31 December 2022
19.690
19.690
19.690
The Group has unutilized drawings rights on overdraft facilities DKK 71,1m (2022: DKK 69,2m)
24. Other payables
2023
2022
DKK'000
DKK'000
Payable staff costs
13.110
12.293
Payable VAT
279
855
Other liabilities
14.726
15.709
Total other payables
28.115
28.857
Tresu Group Holding A/S
48
Notes to consolidated financial statements
25. Contingent liabilities
The Group´s Danish companies are jointly and severally liable for tax on the Group´s jointly taxed income etc.
Total corporation tax payable is stated in the Annual Report of Nortre Administration ApS, which is the
management company in the joint taxation. The Group´s Danish companies are moreover jointly and severally
liable for Danish withholding taxes in the form of dividend tax, royalty tax and tax on interest. Any subsequent
adjustments to corporation taxes and withholding taxes may imply that the Company will be liable for a higher
amount.
26. Pledged assets etc.
There has been given a negative pledge in the Group´s assets.
27. Changes in working capital
2023
2022
DKK'000
DKK'000
Increase/decrease in inventories
(6.599)
(16.638)
Increase/decrease in receivables
5.005
11.462
Increase/decrease in trade payables etc.
(31.806)
32.235
(33.400)
27.059
Tresu Group Holding A/S
49
Notes to consolidated financial statements
28. Cash and cash equivalents
2023
2022
DKK'000
DKK'000
Cash and cash equivalents
4.120
23.828
4.120
23.828
The Group has unutilized drawings rights on overdraft facilities DKK 71,1m (2022: DKK 69,2m)
Non-cash changes
01.01
Cashflow
Adjustment
of debt
Accrued
Interest
Exchange
rate adjust.
New leases/
Remeassure
31.12
2023
DKK'000
DKK'000
DKK'000
DKK'000
DKK'000
DKK'000
DKK'000
Corporate bonds
434.211
0
(415)
9.967
987
0
444.750
Lease debts
88.824
(9.577)
527
0
(260)
3.411
82.925
Payable to group
enterprises
0
64.974
0
0
0
0
64.974
Bank debt
19.690
21.236
0
0
0
0
40.926
542.725
76.633
112
9.967
727
3.411
633.575
Non-cash changes
01.01
Cashflow
Adjustment
of debt
Accrued
Interest
Exchange
rate adjust.
New leases/
Remeassure
31.12
2022
DKK'000
DKK'000
DKK'000
DKK'000
DKK'000
DKK'000
DKK'000
Corporate bonds
429.486
0
4.725
0
0
0
434.211
Lease debts
93.195
(9.947)
0
0
78
5.498
88.824
Bank debt
36.364
(16.674)
0
0
0
0
19.690
559.045
(26.621)
4.725
0
78
5.498
542.725
Tresu Group Holding A/S
50
Notes to consolidated financial statements
29. Financial risks
Categories of financial instruments
2023
2022
DKK'000
DKK'000
Deposits
10.191
10.109
Trade receivables
47.786
38.551
Other short-term receivables
3.469
4.583
Cash
4.120
23.828
Financial assets at amortized cost
65.566
77.071
Corporate bonds
444.750
434.211
Lease liabilities
82.925
88.824
Non-current other payables
8.781
8.532
Bank debt
40.926
19.690
Payable to group company
64.974
0
Trade payables
43.776
40.134
Other payables
28.115
28.857
Financial liabilities measured at amortized cost
714.247
620.248
Policy for controlling financial risks
The Group, due to its operations, investments and financing, is exposed to market risks in the form of changes
in exchange rates and interest rates, as well as credit risk and liquidity risks. The Group manages the financial
risk centrally and coordinates the Group´s liquidity management, including capital procurement and placement
of surplus funds.
It is the Group´s policy not to make any speculation in financial risks.
The Group manages the financial risks through the use of three different tools for cash flow budgeting; a model
covering a rolling three-month period, a model that covers a period of one year, and a model covering a period
of three years.
Currency risks
The Group´s currency risks are primarily hedged by matching payments received and made in the same
currency. The difference between ingoing and outgoing payments denominated in the same currency is a
measure of currency risk.
Tresu Group Holding A/S
51
Notes to consolidated financial statements
Interest risks
Both corporate bonds and bank debt have a variable interest rate, and therefore the Group has a significant
interest rate risk. Other payables have a short repayment profile, and the Group only has a low interest rate risk
on those payables.
Liquidity risks
The Group aims to have adequate cash resources to continuously carry out transactions appropriately as regards
operations and investments. The Group´s cash reserve consists of cash and cash equivalents as well as undrawn
credit facilities. The Group´s liquidity is mainly based on operating profits and the difference between the time
of payment and the time of settlement.
Credit risks
The Group is not exposed to significant credit risks. Customers must pay in advance if they are considered to
have any increased risk in relation to other account receivables.
Credit risks on going contract work for the account of a third party is limited. Invoices on account are thus
agreed to follow a minimum of the cost incurred on contract work, Furthermore, all contract customers must pay
a part of the total consideration at placing the order, which in itself reduces the credit risk substantially.
Currency risks
The Group has not entered any derivatives financial instruments to hedge recognized financial assets and
liabilities. The Group´s currency exposure is specified below.
Tresu Group Holding A/S
52
Notes to consolidated financial statements
Cash and
Recei-
Bond
Other
Unsecured
cash equiva.
vables
debt
liabilities
net position
2023
DKK'000
DKK'000
DKK'000
DKK'000
DKK'000
EUR
1.949
28.797
(445.196)
(11.923)
(426.373)
USD
1.055
15.281
0
(3.680)
12.656
JPY
617
958
0
(548)
1.027
3.621
45.036
(445.196)
(16.151)
(412.690)
Cash and
Recei-
Bond
Other
Unsecured
cash equiva.
vables
debt
liabilities
net position
2022
DKK'000
DKK'000
DKK'000
DKK'000
DKK'000
EUR
1.457
25.932
(439.471)
(7.602)
(419.684)
USD
5.186
9.405
0
(3.051)
11.540
JPY
675
728
0
(199)
1.204
7.318
36.065
(439.471)
(10.852)
(406.940)
Sensitivity analysis regarding currency risks
The Group´s main currency exposure relates to debt in EUR. The following shows the net impact on equity
and profit for the year if the exchange rate of the currencies in question had been 1% lower at the end of the
year than the actual rate used. If the rate had been 1% higher priced than the actual exchange rate, then it would
have had a corresponding net negative impact on equity and profit for the year.
Tresu Group Holding A/S
53
Notes to consolidated financial statements
2023
2022
Equity sensitivity to exchange rate fluctuations
DKK'000
DKK'000
Impact if EUR-rate was 1% lower than actual rate
4.264
4.197
4.264
4.197
2023
2022
Sensitivity of the result to exchange rate fluctuations
DKK'000
DKK'000
Impact if EUR-rate was 1% lower than actual rate
4.264
4.197
4.264
4.197
The Corporate bonds are issued in EUR and the principal amount is subject to exchange rate fluctuations
between the Company´s functional currency (DKK) and EUR. A 1% change in the EUR rate at 31st December
2023 would have affected comprehensive income and equity by approximately DKK 4,3m.
Interest rate risks
The Group has a significant degree of interest-bearing financial liabilities and as a consequence is exposed to
interest rate risks. In regard to the Group´s financial assets and financial liabilities, the following contractual
interest rate adjustment dates or maturity date can be specified, depending which date is the earlier, and how
much of the interest-bearing assets and liabilities are at a fixed-rate. Variable rate loans are deemed to have
interest rate adjustment dates that fall within one year.
2023
2022
Sensitivity to interest rate fluctuations
DKK'000
DKK'000
Impact if interest rate was 1% higher than actual rate
(4.452)
(4.395)
(4.452)
(4.395)
2023
2022
Sensitivity to interest rate fluctuations
DKK'000
DKK'000
Impact if interest rate was 1% lower than actual rate
4.452
4.395
4.452
4.395
Tresu Group Holding A/S
54
Notes to consolidated financial statements
Liquidity risks
Due dates for financial liabilities are specified below, broken down by the time interval used in the Group´s
liquidity management. The specified amounts represent the amounts that fall due for payment, including
interest, etc.
Less than
6-12
1-5
After
6 months
months
years
5 years
Total
2023
DKK'000
DKK'000
DKK'000
DKK'000
DKK'000
Non-derivative financial liabilities
Bank debt
0
0
40.926
0
40.926
Corporate bonds
0
0
556.840
0
556.840
Payable group company
0
0
85.825
0
85.825
Lease debt
5.364
5.365
40.303
41.896
92.928
Trade payables
43.776
0
0
0
43.776
Other payables
28.115
0
0
8.781
36.896
77.255
5.365
723.894
50.677
857.191
Less than
6-12
1-5
After
6 months
months
years
5 years
Total
2022
DKK'000
DKK'000
DKK'000
DKK'000
DKK'000
Non-derivative financial liabilities
Bank debt
0
0
19.690
0
19.690
Corporate bonds
13.403
13.403
470.124
0
496.930
Lease debt
5.271
5.271
38.674
51.345
100.561
Trade payables
40.134
0
0
0
40.134
Other payables
28.857
0
0
8.532
37.389
87.665
18.674
528.488
59.877
694.704
The financial impact from, and uncertainty created by, the ongoing supply chain crises on especially electrical
components means that the timing of a refinancing at par is difficult to assess. However, we reiterate that we
deem the earnings capacity of the company without the impact of supply chain crises to be more than sufficient
to carry the existing debt quantum meaning that a refinancing at par is a matter of timing. The future calculation
of interest for the bonds is done based on the EUR exchange rate end 2023 and the actual interest rate for the
bonds in Q1 2024.
Tresu Group Holding A/S
55
Notes to consolidated financial statements
The Group liquidity reserve consists of liquid assets and unused credit facilities.
Management assesses the Group´s liquidity requirements on a regular basis.
2023
2022
DKK'000
DKK'000
The liquidity reserve comprises of as follows:
Cash
4.120
23.828
Unused credit facility
71.074
69.169
75.194
92.997
Credit risks
The primary credit risk in the Group is related to trade receivables from the sale of goods and services and
contract work in progress. The Group´s most significant credit risks related to the Group´s largest customers.
Those customers are required to partly pay advance payments in order to reduce the credit risks.
The maximum credit risk related to trade receivables from the sale of goods and services and contract work in
progress corresponds to their carrying amount. Information about detained payments for completed work can
be found in note 18.
Default of loan agreement
The Group has not neglected or defaulted loan agreements, during the financial year or the comparative year.
Optimization of capital structure
The company´s management continuously assesses whether the Group´s capital structure is in line with the
interests of the company and its owners. The overall objective is to secure a capital structure that supports
long-term economic growth while maximizing returns to the Group´s stakeholders through an optimization of
the equity/debt ratio. The Group´s overall strategy is that the Group´s capital structure shall consist of debt
comprising financial liabilities in the form of corporate bonds, bank debt and financial leasing liabilities, cash
equivalents and equity.
Tresu Group Holding A/S
56
Notes to consolidated financial statements
Financial gearing
The company´s board of directors reviews the Group´s capital structure twice a year in connection with the
presentation of half-yearly reports and annual reports. As part of this review, the board assesses the Group´s
capital costs and the risk associated with the individual types of capital. The financial gearing as per 31st
December 2023 is below zero which also was the case per 31st December 2022. Based on the latest review of
the Group´s capital structure, the board expects the financial gearing in 2024 to remain at approximately the
same level as 2023.
At balance sheet date the financial gearing can be calculated accordingly:
2023
2022
DKK'000
DKK'000
Bank debt
40.926
19.690
Lease debts
82.925
88.824
Corporate bonds
444.750
434.211
Payable group company
64.974
0
Income tax payable
1.431
7.812
Cash and cash equivalents
(4.120)
(23.828)
Net interest-bearing debt
630.886
526.709
Equity
(344.885)
(147.887)
Financial gearing
-
-
Tresu Group Holding A/S
57
30. Related parties with controlling interest
The following parties have a controlling interest:
• Altor Fund IV Holding AB, Stockholm, shareholder, ultimate owner (99,9% ownership)
Other related parties include the company’s Board of Directors and Executive Board. There have been no
transactions in the financial year with members of the Board of Directors and Executive Board other than those
which appear from note 7.
Transactions with related parties
2023
2022
DKK'000
DKK'000
Remuneration etc. of key management personnel, cf. note 7
15.780
15.069
Capital increase
19.321
29.745
Group loan payable
64.974
0
Management fee to related party
0
(60)
Transactions with subsidiaries are eliminated in the consolidated financial statement in accordance with
accounting policies, note 35.
Tresu Group Holding A/S
58
Notes to consolidated financial statements
31. Shareholder relation
The Company has registered the following shareholders, owning more than 5% of the share capital:
• Altor Fund IV Holding AB, Stockholm, shareholder, ultimate owner
32. Consolidation
Name and registered office of the Parent preparing consolidated financial statements for the largest group:
• Altor Fund Manager AB, SE-Stockholm
33. Events after the balance sheet date
No event after the balance date has happened that will affect the matter of this report.
34. Adopting the annual report for publication
The board members have on the board meeting the 26.07.2024 approved present Annual Report for
publication. The Annual Report will be submitted to the shareholders for approval at the Annual General
Meeting on the 26.07.2024.
Tresu Group Holding A/S
59
Notes to consolidated financial statements
35. Accounting policies
The Annual Report of Tresu Group Holding A/S and its subsidiary companies has been prepared in accordance
with IFRS Accounting Standards, as adopted by the EU, and additional Danish requirements applicable to
reporting large enterprises of class C.
The accounting policies applied to these Consolidated Financial Statements and Parent Financial Statements
are consistent with those applied last year.
The Consolidated and Parent Company Financial Statements for 2023 are presented in TDKK.
Consolidated financial statements
The consolidated financial statements comprise the Parent (Tresu Group Holding A/S) and the group
subsidiaries that are controlled by the Parent. Control is achieved by the Parent, either directly or indirectly,
holding more than 50% of the voting rights or in any other way possible or actually exercising controlling
influence. See also Group chart under Management Commentary, page 8.
Basis of consolidation
The consolidated financial statements are prepared on the basis of the annual report of the Parent and its
subsidiaries. The consolidated financial statements are prepared by combining uniform items. On
consolidation, intra-group income and expenses, intra-group accounts and dividends as well as profits and
losses on transactions between the consolidated subsidiaries are eliminated. The financial statements used for
consolidation have been prepared applying the Group´s accounting policies.
Subsidiaries´ financial statement items are recognized in full in the consolidated financial statements.
Foreign currency translation
On initial recognition, foreign currency transactions are translated applying the exchange rate at the transaction
date. Receivables, payables and other monetary items denominated in foreign currencies that have not been
settled at the balance sheet date are translated using the exchange rate at the balance sheet date. Exchange
differences that arise between the rate at the transaction date and the one on effect at the payment date, or the
rate at the balance sheet date are recognized in the income statement as financial income or financial expenses.
Property, plant and equipment, intangible assets, inventory and other non-monetary assets that have been
purchased in foreign currencies are translated using historical rates.
When recognizing foreign subsidiaries and associates that are entities with a functional currency different from
the functional currency of the parent company, the income statements are translated at average exchange rates
for the month that do not significantly deviate from rates at the transaction date. Balance sheet items are
translated using the exchange rate at the balance sheet date. Exchange difference arising out of the translations
of foreign subsidiaries´ equity at the beginning of the year at the balance sheet date exchange rates as well as
out if the translation of income statements from average rates to the exchange rates at the balance sheet date
are recognized in other comprehensive income.
Tresu Group Holding A/S
60
Notes to consolidated financial statements
Tax on profit/loss for the year
Tax for the year, which consists of current tax and changes in deferred tax, is recognized in the income
statement by the portion attributable to the profit for the year and in other comprehensive income or recognized
directly in equity by the portion attributable to entries respectively in other comprehensive income or directly
in equity.
Current tax payable and tax receivables is recognized in the balance as calculated tax of the years´ taxable
income, regulated with paid tax on account, using rates enacted at the balance sheet date.
Deferred tax on all temporary differences between the carrying amount and the tax base of assets and liabilities
is measured using the balance sheet liability method. However, deferred tax is not recognized on temporary
differences relating to goodwill. Where alternative tax rules can be applied to determine the tax base, deferred
tax is measured based on management´s planned use if the asset or settlement of the liability. If specific
dividend plans exist for subsidiaries in countries levying withholding tax on distributions, deferred tax is
recognized on expected dividend payments. Deferred tax assets, including the tax base of tax loss carry
forward, are recognized under other non-current assets at the expected value of their utilization, either as a set-
off against tax on future income or as a set-off against deferred tax liabilities in same legal tax entity and
jurisdiction.
Deferred tax assets and tax liabilities are offset if the entity has a legally enforced right to offset current tax
liabilities and tax assets or intends either to settle current tax liabilities and tax assets or to realize the assets
and settle the liabilities simultaneously. Deferred tax assets are subject to annual impairment tests and reced
only to the extent that it is probable that the assets will be utilized. Adjustments are made to deferred tax
resulting from elimination of unrealized intra-group profits and losses.
Deferred tax is measured according to the tax rules and at the tax rates applicable in the respective countries
at the end of the reporting period and when the deferred tax is expected to crystallize as current tax. The change
in deferred tax as a result of changes in tax rates is recognized in the income statement. Changes to deferred
tax on items recognized in other comprehensive income are, however, recognized in other comprehensive
income.
Segment information
The reporting on business segments follows the structure of TRESU’s internal management reporting to
internal stakeholders and the group Executive Board. The group Executive Board uses business segmentation
when allocating resources and following up on results. The internal reporting does not allocate assets or
liabilities to the segments.
Revenue
The Group recognized revenue from the following major sources:
• Sales of Flexo Inline Printing machines – mostly recognized as contract work in progress
• Sales of ancillary products
Revenue from sales of manufactured goods and goods for resale is recognized in the income statement when
delivery is made, and control is transferred to the buyer, and the consideration agreed is expected to be received.
Control is generally deemed to be transferred upon delivery of the components in accordance with the agreed
delivery plan.
Tresu Group Holding A/S
61
Notes to consolidated financial statements
Revenue from ancillary products is generally recognized upon shipment of products, provided there are no
significant uncertainties regarding customer acceptance, persuasive evidence of an arrangement exists, the
sales prices are fixed and determinable, and it is probable that the sales are collectible. Amounts billed to
customers for shipping and handling are included in net sales and are recorded upon shipment of goods to
customers. Costs of providing these services are included in costs of sales.
Customized solutions, with a high degree of customisation, are recognized over time as machines are
constructed based on the stage of completion of the individual contracts based on actual costs, as contract work
in progress. The cost to cost as the method to calculate the stage of completion is due to the fact that both
labour hours and materials are significant part of the costs. See also descriptions below regarding contract work
in progress. Where the profit from a contract work cannot be estimated reliably, revenue is only recognized
equalling the cost incurred to the extent that it is probable that the cost will be recovered. Revenue from sales
of services is recognized in the income statement over the term if agreement as the services is provided.
Revenue is recognized net of VAT, duties and sales discounts is measured at fair value if the consideration
fixed. Payment for the service contract can be paid in advance or over the service period´s execution.
Contract work in progress
Revenue from project work in progress relates to production of assets without an alternative use to the Group
and the Group has an enforceable right to payment for performance completed to date.
If the selling price of a project work in progress can be measured reliably, revenue and costs related to the
contract is recognized according to the stage of completion on balance sheet date.
If the selling price of a project work in progress cannot be made up reliably, revenue is recognized according
to costs, if these costs are likely to be regained.
Cost of sales work and contracting are recognized in the income statement as occurred.
Production costs
Production costs comprise expenses incurred to earn revenue for the financial period. Production costs
comprise direct and indirect costs for raw materials and consumables, wages and salaries, rent and lease as
well as amortization, depreciation and impairment losses relating to intangible assets and property, plant and
equipment included in the production process. In addition, the item includes ordinary write-down of
inventories.
Also, provisions for loss on contract work in progress are recognized under production costs.
Also, research and development costs include research costs, costs of development projects that do not meet
the criteria for recognition in the balance sheet.
Tresu Group Holding A/S
62
Notes to consolidated financial statements
Distribution costs
Distribution costs comprise costs incurred for sale and distribution of products, including wages and salaries
for sales staff, advertising costs, traveling and entertainment expenses, etc. as well as amortization,
depreciations and impairment losses relating to intangible assets and property, plant and equipment attached
to the distribution process.
Administrative costs
Administrative costs comprise costs incurred for administrative functions, including wages and salaries for
administrative staff and Management, stationary and office supplies as well as amortization, depreciation and
impairment losses relating to intangible assets and property, plant and equipment for administration of the
entity.
Other operating income
Other operating income comprises gain on sale of fixed assets.
Other operating expenses
Other operating expenses comprises loss on sale of fixed assets.
Financial income
Financial income comprises interest income, net capital gains on securities, payables and transactions in
foreign currencies, amortization of financial assets.
Financial expenses
Financial expenses comprise interest expenses, net capital losses on payables and transactions in foreign
currencies, amortization of financial liabilities.
Tresu Group Holding A/S
63
Notes to consolidated financial statements
Balance Sheet
Goodwill and other intangible assets
On initial recognition, goodwill is recognized at cost in the balance sheet as described under “Business
combinations”. Subsequently, goodwill is measured at cost any less accumulated impairment losses.
The carrying amount of goodwill is allocated to the Group´s cash-generating units at the time of acquisition.
Determination of cash-generating units complies with the management structure and management control of
the Group.
Goodwill is recognized as an asset and is tested for impairment annually, or on such other occasions that events
or changes in circumstances indicate that it might be impaired. On disposal of a subsidiary, the amount
attributable of unamortized goodwill that has not been subject to impairment is included in the determination
of the gain or loss on disposal.
Intangible assets other than goodwill are valued at cost less accumulated amortization and any impairment
losses. Brands have been assigned an indefinite useful life. “TRESU” brand has been in existence since 1981
and given the strength of the brand, it is likely to continue in the future. Capitalized development costs are
amortized on a straight-line basis over a 3-12 useful life. Customer relationships, patens and other intangibles
are amortized on a straight-line basis over a 3-14-year useful life. Costs for acquired assets represent the
purchase price acquisition.
Intangible assets with indefinite useful lives are not depreciated but are annually tested for impairments. If the
carrying amount of the assets exceeds the recoverable value, it will be written down to lower value, see the
section below regarding impairment.
Development projects on clearly defined and identifiable products and process, for which the technical rate of
utilization, adequate resources and potential future market or development opportunity in the enterprise can be
established, and where the intention is to manufacture, market or apply the product or process in question, are
recognized as intangible assets. Other development costs are recognized as costs in the income statement as
incurred.
The cost of development projects comprises costs such as salaries and amortization that are directly and
indirectly attributable to the development projects.
Indirect production costs in the form of indirect attributable staff costs and amortization of intangible assets
and depreciation on property, plant and equipment used in the development process are recognized in costs
based on time spent on each project.
Profit and losses from sales of other intangible assets are calculated as the difference between selling price less
selling costs and the carrying amount at the time of the sale. Profits or losses are recognized in the income
statement under other operating income/-expenses.
Estimated useful lives and residual values are reassessed annually.
Tresu Group Holding A/S
64
Notes to consolidated financial statements
Property, plant and equipment
Land and buildings are measured at costs less accumulated and impairment losses. Land is not depreciated.
Plan and machinery as well as other fixtures, tools and equipment are measured at cost less accumulated
depreciation and impairment losses.
Cost comprises the acquisition price, costs directly attributable to the acquisition, and preparation costs of the
assets until the time when it is ready to be put into operation. For company-manufactures assets, costs comprise
direct and indirect costs of materials, components, sub suppliers and labour costs.
For assets held under leases, cost is the lower of the asset´s fair value and present value of future lease
payments.
The basis of depreciation is cost less estimated residual value after end of useful life. Straight-line depreciation
is made on the basis of the following estimated useful lives of the assets:
Buildings 33 years
Plant and machinery 3-20 years
Other fixtures and fittings, tools and equipment 3-20 years
Leasehold improvements 3-20 years
Estimated useful lives and residual values are reassessed annually.
Property, plant and equipment are written down to the lower of recoverable amount and carrying amount.
Profits and losses from the sale of property, plant and equipment are calculated as the difference between
selling price less selling costs and carrying amount at the time of sale. Profit or losses are recognized in the
income statement under the operating income/-expenses.
Impairment of intangible and tangible assets
The carrying amount of both intangible and tangible assets and items of property, plant and equipment are
reviewed annually for indicators of impairment in addition to that reflected through amortization and
depreciation. However, goodwill and intangible assets with indefinite useful lives are tested annually.
If any such indication exist, impairment tests are made of each asset and group of assets, respectively. Write-
down is made to the lower of recoverable amount and carrying amount.
The recoverable amount is the higher of net selling price and value in use. Value in use is the present value of
the estimated net income from using the assets or the group of assets.
Tresu Group Holding A/S
65
Notes to consolidated financial statements
Leases
Leased assets and lease liabilities are recognized in the balance sheet when the leased asset under a lease
entered regarding a specific identifiable asset is made available to the Group in the lease term, and when the
Group obtains the right to substantially all economic benefits from the use of the identified asset and the right
to control the use of the identified asset.
On initial recognition, lease liabilities are measured at the present value of the future lease payments discounted
by an incremental borrowing rate. The following lease payments are recognized as part of the lease liabilities:
• Fixed payments
• Variable payments that change concurrently with changes to an index and an interest rate based on said
index or interest rate
• Exercise price of call options that it is reasonably certain that management will exercise
• Payments subject to an extension option that it is reasonably certain that the Group will exercise
• Penalty related to a termination option unless it is reasonably certain that the Group will not exercise the
option.
The lease liabilities are measured at amortized cost according to the effective interest method. The lease
liabilities are recalculated when the underlying contractual cash flows change due to changes in an index or an
interest rate if the Group’s estimate of a residual value guarantee changes or if the Group changes its assessment
of whether call options, extension options or termination option can reasonably be expected to be exercised.
On initial recognition, the leased asset is measured at cost, corresponding to the value of the lease liabilities
adjusted for prepaid lease payments plus directly related costs and estimated costs for demolition, repairs or
the like and less discounts or other types of incentive payments received from the lessor.
Subsequently, the asset is measured at cost less accumulated depreciations and impairment losses. The leased
asset is depreciated over the shorter of the lease term and the useful life of the leased asset. Depreciations
changes are recognized on a straight-line bass in the income statement.
The leased asset is adjusted for changes to the lease liabilities due to changes to the term of the lease or changes
to the cash flows of the lease concurrently with changes to an index or an interest rate.
Leased assets are depreciated on a straight-line basis over the expected lease term, which is:
Property 10-15 years
Cars 3-5 years
Other assets 3-5 years
The Group presents the leased asset and the lease liabilities separately in the balance sheet.
The Group has chosen not to recognize leased assets of a low value and short-term leases in the balance sheet.
Instead related payments are recognized on a straight-line basis in the income statement.
The related lease liability is disclosed in the current and non-current other liabilities in the financial statement.
Tresu Group Holding A/S
66
Notes to consolidated financial statements
Inventories
Inventories are measured at the lower of the cost using the FIFO method and net realizable value. Costs consists
of purchase price. Cost of manufactured goods and work in progress consists of costs of raw materials,
consumables, direct labour costs and indirect productions costs.
Indirect production costs comprise indirect materials and labour costs, costs of maintenance, of depreciations
on and impairment losses relating to machinery, factory buildings and equipment applied for the manufacturing
process as well as costs of factory administration and management. Financing costs are not included.
The net realizable value of inventories is calculated as the estimated selling price less completion costs and
costs incurred to execute sale.
Receivables
Receivables are measured at amortized cost, usually equalling nominal value less write-downs for bad and
doubtful debts.
Contract work in progress
Contract work in progress is measured at the selling price of the work carried out at the balance sheet date.
The selling price is measured based on the stage of completion and the total estimated income from the
individual contracts in progress. Usually, the stage of completion is determined as the ratio of actual to total
budgeted consumption of cost. The cost elements in projects are internal and external hours as well as the
purchase of materials from subcontractors, and it is estimated that the total costs best reflect the progress of
the projects. For some projects where the consumption of resources cannot be applied as a basis, the ratio
between completed and total sub activities of the individual projects has been applied.
If the selling price of a contract work in progress cannot be made up reliably, it is measured at the lower of
cost incurred and net realizable value.
Each contract work in progress is recognized in the balance sheet under receivables or liabilities other than
provisions, depending on whether the net value, calculated as the selling price less prepayment received, is
positive or negative.
Cost of sales work and of securing contracts as well as financing costs are recognized in the income statement
as incurred.
Prepayments
Prepayments comprise incurred costs relating to subsequent financial years. Prepayments are measured at
costs.
Tresu Group Holding A/S
67
Notes to consolidated financial statements
Other provisions
Other provisions comprise anticipated cost of non-recourse guarantee commitments, loss on contract work in
progress, decided and published restructurings, etc.
Other provisions are recognized and measured as the best estimate of the expenses required to settle the
liabilities at the balance sheet date. Provisions that are estimated to mature more than one year after the balance
sheet date are measured at their discounted value.
Once it is likely that total costs will exceed total income from a contract in progress, provision is made for the
total loss estimated to result from the relevant contract.
Tresu Group Holding A/S
68
Notes to consolidated financial statements
Liabilities
Corporate bonds and bank debt are recognized at the time of borrowing at fair value less transaction costs
incurred, equivalent to the proceeds received. Subsequently, corporate bonds and bank debt are recognized at
amortized cost equal to the capitalized value using the effective interest method to the effect that the difference
between the proceeds and nominal amount is recognized in the statement of comprehensive income over the
term of the loan.
If corporate bonds are redeemed, this is done at fair value and any gain or loss is recognized through the income
statement.
Other liabilities including debt to suppliers as well as other payables are measured at amortized cost which
usually correspond to nominal value.
Lease liabilities
Lease liabilities relating to assets held under leases are recognized in the balance sheet as liabilities other than
provisions, and at the time of inception of the lease, measured at the present value of future lease payments.
Subsequent to initial recognition, lease liabilities are measured at amortized costs.
The difference between present value and nominal amount of the lease payment is recognized in the income
statement as financial expense over term of the leases.
Contract liabilities
Prepayments received from customers comprise amounts from customers prior to recognition of revenue, cf.
section on contract work in progress.
Prepayments received from customers
Prepayments received from customers comprise amounts received from customers prior to delivery of the
goods agreed or completion of the service agreed.
Cash flow statement
The cash flow statement shows cash flows from operating, investing and financing activities as well as cash
and cash equivalents at the beginning and the end of the financial year.
The cash flow from acquisition and disposal of entities comprises the cash consideration paid/received net of
cash and cash equivalents acquired /disposed of with the entities.
Cash flows from operating activities are presented using the indirect method and calculated as the operating
profit/loss adjusted for non-cash operating items, working capital changes and income taxes paid.
Cash flows from investing activities comprise payments in connection with acquisition and divestment of
subsidiaries, activities and fixed asset investment as well as purchase, development, improvement and sale etc.
of intangible assets and property, plant equipment, including acquisition of assets held under leases.
Tresu Group Holding A/S
69
Notes to consolidated financial statements
Cash flow from financing activities comprise changes in the size or composition of the contributed capital and
related costs as well as the raising of loans, inception of lease debt, instalments on interest-bearing debt, and
purchase of treasury shares and payment of dividend.
Cash flows in other currencies than basic currency is translated at average exchange rates for the months that
do not significantly deviate from the rates at the transactions date. In the latter case is used the actual exchange
rate for a specific date.
Cash and cash equivalents comprise cash and short-term securities with an insignificant price risk.
Tax exempt contribution
Tax exempt contribution consists of cash and debt conversation. Cash is recognized at nominal value and debt
conversations are recognized at fair value
Tresu Group Holding A/S
70
Parent statement of comprehensive income
1/1 - 31/12
1/1 - 31/12
2023
2022
Notes
DKK'000
DKK'000
Administration costs
3,4
(81)
(186)
Operating profit/loss
(81)
(186)
Profit/loss in group subsidaries
(19.321)
(127.152)
Financial income
5
3
15
Financial expenses
0
(1)
Profit/loss before tax
(19.399)
(127.324)
Tax on profit/loss for the year
6
(85)
38
Loss for the year
(19.484)
(127.286)
Total comprehensive income
(19.484)
(127.286)
Profit for the year attributable to:
Owners of the Company
(19.484)
(127.286)
Total comprehensive income for the year attributable to:
Owners of the Company
(19.484)
(127.286)
Tresu Group Holding A/S
71
Parent balance sheet
31.12.2023
31.12.2022
Notes
DKK'000
DKK'000
Investments in group subsidiary
7,8
0
0
Financial assets
0
0
Non-current assets
0
0
Receivables from group companies
248
248
Income tax receivable
54
51
Receivables
302
299
Cash
145
143
Current assets
447
442
Assets
447
442
Tresu Group Holding A/S
72
Parent balance sheet
31.12.2023
31.12.2022
Notes
DKK'000
DKK'000
Contributed capital
9
165.670
146.349
Retained earnings
(165.790)
(146.306)
Equity
(120)
43
Payable group company
482
0
Other payables
85
399
Current liabilities
567
399
Total liabilities
567
399
Equity and liabilities
447
442
Tresu Group Holding A/S
73
Parent statement of change in equity
Contri-
buted
Retained
capital
earnings
Total
DKK'000
DKK'000
DKK'000
Equity at 1 January 2023
146.349
(146.306)
43
Profit for the period
0
(19.484)
(19.484)
Capital increase
19.321
0
19.321
Equity at 31 December 2023
165.670
(165.790)
(120)
Contri-
buted
Retained
capital
earnings
Total
DKK'000
DKK'000
DKK'000
Equity at 1 January 2022
116.604
(19.520)
97.084
Other adjustment
0
500
500
Profit for the period
0
(127.286)
(127.286)
Capital increase
29.745
0
29.745
Equity at 31 December 2022
146.349
(146.306)
43
Tresu Group Holding A/S
74
Parent cash flow statement for the year 2023
1/1 - 31/12
1/1 - 31/12
2023
2022
Notes
DKK'000
DKK'000
Operating profit/loss
(81)
(186)
Working capital changes
12
80
95
Cash flows from ordinary operating activities
(1)
(91)
Financial income received
3
0
Financial expenses paid
0
(1)
Cash flow from operating activities
2
(92)
Acquisition etc. of group subsidiary
(19.321)
(29.745)
Cash flow from investing activities
(19.321)
(29.745)
Capital increase
19.321
29.745
Cash flows from financing activities
19.321
29.745
29.745
Increase/decrease in cash and cash equivalents
2
(92)
Cash and cash equivalents at 1 January
143
235
Cash and cash equivalents end of year
13
145
143
Cash and cash equivalents at year end are composed of:
Cash
145
143
Cash and cash equivalents end of year
145
143
Tresu Group Holding A/S
75
Notes to the parent financial statement
Overview notes
1. Accounting policies and material accounting policy information
2. Use of estimates and judgement
3. Fees to auditors appointed at the Annual General Meeting
4. Staff costs
5. Financial income and expenses
6. Income tax
7. Investments in subsidiaries
8. Subsidiaries
9. Share capital
10. Contingent liabilities
11. Pledge assets etc.
12. Change in working capital
13. Cash and cash equivalents from financing activities
14. Financial risks
15. Related parties with controlling interests
16. Shareholder relations
17. Consolidation
18. Events after the balance sheet date
19. Adopting the annual report for publication
Tresu Group Holding A/S
76
Notes to parent financial statement
1. Accounting policies and material accounting policy information
The Annual Report of Tresu Group Holding A/S, a Danish company, has been prepared in accordance with
IFRS Accounting Standards, as adopted by the EU, and additional Danish requirements applicable to reporting
large enterprises of class C, including the statutory order on adoption of IFRS issued pursuant to the Danish
Financial Statements Act.
The Parent Company basically uses the same accounting policies as the Group. The cases where the Parent
Company´s accounting policies differ from the Group are described below. For detailed description of the
parent company´s use accounting policies are referred to note 35 of the consolidated financial statements.
Instances where the parent company´s accounting policies differ from the Group
Investments in group subsidiaries are measured at cost. If the acquisition cost exceeds the investments
recoverable value, an impairment loss is recognized.
2. Use of estimates and judgement
Recoverable amounts for capital participation in subsidiaries
On indication that the book value (cost) of investments in subsidiaries has fallen, any impairment requirement
is determined based on the specification of the capital value of the subsidiary in question, cf. the section on
Recoverable amount of Goodwill in the Consolidated financial statement note 2 and the section on impairment
loss in note 35 of the Consolidated financial statements.
If dividends are distributed for more than the subsidiary´s total income during the period in which dividends
are to be distributed, this is considered an indication of impairment loss. If an impairment of goodwill is
recognized in the consolidated financial statements which can be attributed to a subsidiary, this is also
considered as an indication of impairment loss.
Other significant estimates and judgement
For a description of other significant estimates and judgements refer to note 2 of the consolidated financial
statement.
Tresu Group Holding A/S
77
Notes to parent financial statement
3. Fees to auditors appointed at the Annual General Meeting
2023
2022
DKK'000
DKK'000
Statutory audit
54
63
Total fees to auditors appointed at the Annual General Meeting
54
63
4. Staff costs
2023
2022
DKK'000
DKK'000
Average number of employees
0
0
5. Financial income
2023
2022
DKK'000
DKK'000
Interest income
3
0
Other financial income
0
15
Total financial income
3
15
Tresu Group Holding A/S
78
Notes to parent financial statement
6. Income tax
2023
2022
DKK'000
DKK'000
Current tax for the year
(85)
38
Corporation tax for the year
(85)
38
Income tax expense attributable to income before income taxes differed from the amounts computed applying
the Danish income tax rate of 22,0%.
Tax on profit the year breaks down as follows:
Calculated tax on profit for the year before tax
22,0%
22,0%
Tax effect of:
Adjustment prior years
0,0%
0,0%
Non-deductible expenses
(21,6%)
(22,0%)
Effective tax rate
0,4%
0,0%
7. Investments in subsidiaries
An impairment loss has been recognized in 2023 as the acquisition cost exceeds the investments recoverable
value. The basis of the impairment test has been executed in line with steps outlined in note 13 to group
financial statements and with respect of the net debt level in the group subsidiaries.
2023
2022
DKK'000
DKK'000
Cost at the beginning of the year
558.998
529.253
Capital increase
19.321
29.745
Cost at the end of the year
578.319
558.998
Impairment at the beginning of the year
(558.998)
(431.846)
Impairment of the year
(19.321)
(127.152)
Impairment end of the year
(578.319)
(558.998)
Carrying amount end of year
0
0
Tresu Group Holding A/S
79
Notes to parent financial statement
8. Subsidiaries
Interest
Interest
and share
and share
of voting
of voting
Corporate
rights, %
rights, %
Registered in
form
2023
2022
Tresu Investment Holding A/S
Kolding, Denmark
A/S
100,0
100,0
Tresu A/S
Kolding, Denmark
A/S
100,0
100,0
Tresu Italia S.r.l.
Varese, Italy
S.r.l
100,0
100,0
Tresu Royse Inc.
Dallas, USA
Inc.
100,0
100,0
Tresu Japan Co. Ltd.
Osaka, Japan
Ltd.
100,0
100,0
Tresu Vertriebs GmbH
Celle, Germany
GmbH
100,0
100,0
9. Share capital
The share capital consists of shares with a nominal value of DKK 1 each. The shares have been paid in full.
The shares have not been divided into classes and no special rights have been attached to the shares.
The share capital can be made up as follows:
2023
2022
DKK'000
DKK'000
Number of shares 1
st
January
146.349
116.604
Capital increase by cash deposit
19.321
29.745
Number of shares 31
st
December
165.670
146.349
Tresu Group Holding A/S
80
Notes to parent financial statement
10. Contingent liabilities
The Group´s Danish companies are jointly and severally liable for tax on the Group´s jointly taxed income etc.
Total corporation tax payable is stated in the Annual Report of Nortre Administration ApS, which is the
management company in the joint taxation. The Group´s Danish companies are moreover jointly and severally
liable for Danish withholding taxes in the form of dividend tax, royalty tax and tax on interest. Any subsequent
adjustments to corporation taxes and withholding taxes may imply that the Company will be liable for a higher
amount.
11. Pledged assets etc.
There has been given a negative pledge in the Group´s assets.
12. Changes in working capital
2023
2022
DKK'000
DKK'000
Increase/decrease in trade payables etc.
80
95
80
95
13. Cash and cash equivalents from financing activities
2023
2022
DKK'000
DKK'000
Cash and cash equivalents
145
143
145
143
Tresu Group Holding A/S
81
Notes to parent financial statement
14. Financial risks
2023
2022
Categories of financial instruments
DKK'000
DKK'000
Cash
145
143
145
143
Other payables
85
399
Financial liabilities measured at amortized cost
85
399
Practice for controlling financial risks
Reference is made to note 29 of the consolidated financial statement for a description of the practice for
controlling financial risks.
It is Parent´s policy not to make any speculation in financial risks.
Interest rate risks
Both corporate bonds and bank debt has a variable interest rate, and therefore the company has a significant
interest rate risk. Other payables have a short repayment profile, and the company only has a low interest rate
risk.
The Parent has a significant degree of interest-bearing financial liabilities and as a consequence is exposed to
interest rate risks. In regard to the Group´s financial assets and financial liabilities, the following contractual
interest rate adjustment dates or maturity dates can be specified, depending which date is the earlier, and how
much of the interest-bearing assets and liabilities are at a fixed-rate. Variable rate loans are deemed to have
interest rate adjustment dates that fall within one year.
Interest rate adjustment date or maturity date
Less than
6-12
1-5
After
Average
months
months
years
5 years
Total
duration,
2023
DKK'000
DKK'000
DKK'000
DKK'000
DKK'000
year
Cash
145
0
0
0
145
0
145
0
0
0
145
Interest rate adjustment date or maturity date
Less than
6-12
1-5
After
Average
months
months
years
5 years
Total
duration,
2022
DKK'000
DKK'000
DKK'000
DKK'000
DKK'000
year
Cash
143
0
0
0
143
0
143
0
0
0
143
Tresu Group Holding A/S
82
Notes to parent financial statement
Liquidity risks
Due dates for financial liabilities are specified below, broken down by the time intervals used in the Group´s
liquidity management. The specified amounts represent the amounts that fall due for payment, including
interest, etc.
Less than
6-12
1-5
After
months
months
years
5 years
Total
2023
DKK'000
DKK'000
DKK'000
DKK'000
DKK'000
Non-derivative financial liabilities:
Group payables
482
0
0
0
482
Other payables
85
0
0
0
85
567
0
0
0
567
Less than
6-12
1-5
After
months
months
years
5 years
Total
2022
DKK'000
DKK'000
DKK'000
DKK'000
DKK'000
Non-derivative financial liabilities:
Other payables
399
0
0
0
399
399
0
0
0
399
The Group´s liquidity reserve consists of cash.
Management assesses the Group´s liquidity requirements on a regular basis.
2023
2022
DKK'000
DKK'000
The liquidity reserve is compressed as follows:
Cash
145
143
145
143
Credit risks
The parent company is not exposed to significant credit risks.
Default of loan agreements
The Group has not neglected or defaulted loan agreements during the financial year or the comparative year.
Tresu Group Holding A/S
83
Notes to parent financial statement
Optimization of capital structure
Capital structure is managed for the Group as a whole, and there is no practice for the parent company, cf.
note 29 in the consolidated financial statement.
15. Related parties with controlling interests
The following parties have a controlling interest:
• Altor Fund IV Holding AB, Stockholm, shareholder, ultimate owner
16. Shareholder relations
The company has registered the following shareholders, owning more than 5% of the share capital:
• Altor Fund IV Holding AB, Stockholm, shareholder, ultimate owner
17. Consolidation
Name and registered office of the Parent preparing consolidated financial statements for the largest group:
• Altor Fund Manager AB, SE-Stockholm
18. Events after the balance sheet date
No event after the balance date has happened that will affect the matter of this report.
19. Adopting the annual report for publication
The board members have on the board meeting on the 26.07.2024 approved present Annual Report for
publication. The Annual Report will be submitted to the shareholders for approval at the Annual General
Meeting on 26.07.2024.