Company Registration No. 11766110
Company Name Kronospan ApS
Company Registration No. 11766110
Company Name Kronospan ApS
Kronospan ApS
Approved on the Company´s annual general meeting on 30/3 2026
Chairman:
____________________
Report and Financial Statements
30 September 2025
2
Company Registration No. 11766110
Company Name Kronospan ApS
CONTENTS Page
Officers and Professional Advisers
3
Statement by Board of Directors and Board of Executives
4
Directors’ Report
5 – 8
Report of the Independent Auditors
9 – 10
Statement of Profit or Loss and Other Comprehensive Income
11
Statement of Financial Position
12
Statement of Cash Flows
13
Statement of Changes in Equity
14
Notes to the Financial Statements
15 – 39
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Company Registration No. 11766 110
Company Name Kronospan ApS
OFFICERS AND PROFESSIONAL ADVISERS
DIRECTORS
Spiros Spyrou
Jörg Lippok
Vivita Vavere-Ozola
REGISTERED OFFICE
Denmark
PRINCIPAL PLACE OF BUSINESS
2 Fabriksvej
Pindstrup, 8550 Ryomgaard
Denmark
INDEPENDENT AUDITORS
Denmark
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Company Registration No. 11766110
Company Name Kronospan ApS
Executive Board:
Board of Directors:
Vivita Vavere-Ozola
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Company Registration No. 11766110
Company Name Kronospan ApS
6
Company Registration No. 11766110
Company Name Kronospan ApS
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Company Registration No. 11766110
Company Name Kronospan ApS
DIRECTORS’ REPORT (continued)
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Company Registration No. 11766110
Company Name Kronospan ApS
DIRECTORS’ REPORT (continued)
1
Company Registration No. 11766110
Company Name Kronospan ApS
INDEPENDENT AUDITOR’S REPORT
In our opinion, except for the effects of the matter described in the ‘Basis for qualified opinion’ section of our report the
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Company Registration No. 11766110
Company Name Kronospan ApS
Beierholm Aarhus N , 30. Marts 2026
CVR no. 32 89 54 68
MNE no. Mne33244
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Company Registration No. 11766110
Company Name Kronospan ApS
STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
Year ended 30 September 2025
Note 2025 2024
Euro’000 Euro’000
Revenue 3 60,338 63,327
Other operating income 4 3,009 1,226
Changes in inventories of finished goods and work in progress 1,083 (2,258 )
Raw materials and consumables used (35,620 ) (37,969 )
Employee benefit costs 6 (15,561 ) (14,875 )
Depreciation and amortisation expense 5,9 (3,501 ) (3,434 )
Other operating expenses 5 (13,476 ) (11,784 )
Loss from operations 5 (3,728 ) (5,767 )
Finance income 7 3 89
Finance costs 7 (1,353 ) (1,566 )
Gains /(losses) on forward contracts held at fair value 18 219 (731 )
Currency translation differences (11 ) 7
Loss before tax (4,870 ) (7,968 )
Income tax credit 8 1,081 1,598
Loss for the year (3,789 ) (6,370 )
Other comprehensive income:
Items that may be reclas s ified to profit or los s :
Foreign currency exchange differences 20 (70 )
Items that will not be reclassified to profit or loss :
Gains on property revaluation 25,674 -
Income tax relating to items that will not be reclassified to profit or loss (5,648 ) -
Other comprehensive income for the year, net of tax 20,046 (70 )
Total comprehensive income / (loss) for the year 16,257 (6,440 )
All of the profit / (loss) and other comprehensive income for the year is attributable to equity holders of the Company.
The notes on pages 15 to 39 form an integral part of these financial statements.
12
Company Registration No. 11766110
Company Name Kronospan ApS
STATEMENT OF FINANCIAL POSITION
As at 30 September 2025
Note
Euro’000 Euro’000 Euro’000 Euro’000
ASSETS
Non-current assets
Property, plant and equipment 9 76,096 50,087
Investments 10 3,727 727
Total non-current assets 79,823 50,814
Current assets
Inventories 11 7,456 6,799
Trade and other receivables 12 9,608 6,029
Current tax receivable - 95
Forward contracts held at fair value 18 382 163
Cash and cash equivalents 13 361 128
Total current assets 17,807 13,214
TOTAL AS SETS 97,630 64,028
LIABILITIES AND SHAREHOLDERS' EQUITY
Equity attributable to s hareholders of the Company
Share capital 14 12,155 12,155
Revaluation and other reserves 31,684 12,055
Retained earnings 844 4,216
Total equity 44,683 28,426
Non-current liabilities
Subordinated loans or loans available for subordination 16 7,625 10,125
Other long term liabilities 17 1,349 1,341
Deferred tax liability 8 11,798 7,231
Total non-current liabilities 20,772 18,747
Current liabilities
Bank borrowings and other loans 15 14,163 5,406
Subordinated loans or loans available for subordination 16 5,500 2,500
Short part of long term liabilities 17 43 50
Trade and other payables 19 12,469 8,949
Total current liabilities 32,175 16,855
Total liabilities 52,947 35,602
30 September 2025
30 September 2024
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
The notes on pages 15 to 39 form an integral part of these financial statements.
13
Company Registration No. 11766110
Company Name Kronospan ApS
STATEMENT OF CASH FLOWS
Year ended 30 September 2025
Note 2025 2024
Euro’000 Euro’000
Cash flows from operating activities
Loss for the year (3,789 ) (6,370 )
Adjustment for:
Depreciation and amortisation 5,9 3,501 3,434
Finance income 7 (3 ) (89 )
Finance expense 7 1,353 1,566
(Gains)/ losses on forward contracts held at fair value 18 (219 ) 731
Income tax credit 8 (1,081 ) (1,598 )
Cash flow used in operating activities before changes in working capital
and provisions
(238 ) (2,326 )
(Increase) / decrease in inventories (657 ) 3,398
(Increase) / decrease in trade and other receivables (3,579 ) 9,560
Increase / (decrease) in trade and other payables 3,689 (12,858 )
Cash generated used in from operations (785 ) (2,226 )
Interest received 3 89
Interest paid (1,353 ) (1,566 )
Income taxes paid - (2,364 )
Net cash used in operating activities (2,135 ) (6,067 )
Cash flows from investing activities
Acquisition of investments (3,000 ) -
Purchase of property, plant and equipment (3,871 ) (2,535 )
Net cash used in investing activities (6,871 ) (2,535 )
Cash flows from financing activities
Proceeds from bank borrowings and other loans 8,757 2,096
Proceeds from subordinated loans or loans available for subordination 3,000 -
Repayments of subordinated loans or loans available for subordination (2,500 ) (2,500 )
Increase in long term liabilities 1 6
Net cash from / (used) in financing activities 9,258 (398 )
Net increase /(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Exchange losses on cash and cash equivalents
(19 ) (70 )
Cash and cash equivalents at the end of the year
13
Cash and cash equivalents are represented by:
Cash in hand and at bank
For notes supporting the statement of cash flows, see note 21.
The notes on pages 15 to 39 form an integral part of these financial statements.
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Company Registration No. 11766110
Company Name Kronospan ApS
STATEMENT OF CHANGES IN EQUITY
For the year ended 30 September 2025
Share
capital
Foreign
curre ncy
trans latio
n
re
s e rve
Re valuation
re s e rve
Retained
earnings
Total
attributable
to e quity
ho
l
ders of
the Company
Euro Euro Euro Eu
ro Euro
’000 ’000 ’000 ’000 ’000
At 1 October 2024 12,155 (171 ) 12,226 4,216
Comprehensive income for the year
Loss for the year - - - (3,789 )
(3,789 )
Other comprehensive income - 20 20,026 -
Transfer from revaluation reserve to retained earnings - - (534 ) 534
Income tax relating to revaluation reserve - - 117 (117 )
Total comprehensive income for the year - 20
(3,372 ) 16,257
At 30 September 2025 12,155 (151 ) 31,835 844 44,683
At 1 October 2023 12,155 (101 ) 12,643
Comprehensive income for the year
Loss for the year - - - (6,370 )
(6,370 )
Other comprehensive income - (70 ) - -
(70 )
Transfer from revaluation reserve to retained earnings - - (534 )
Income tax relating to revaluation reserve - - 117 (117 )
Total comprehensive income for the year - (70 ) (417 ) (5,953 ) (6,440 )
- - - -
-
At 30 September 2024 12,155 (171 ) 12,226 4,216 28,426
Change s in e quity for 2025
Change s in e quity for 2024
The following describes the nature and purpose of each reserve within shareholders’ equity:
Reserve
Description and purpose
Share premium
Amount subscribed for share capital in excess of nominal value.
Revaluation
Gains / losses arising on the revaluation of the Company’s property plant
and equipment. The balance on this reserve is wholly non-distributable.
Foreign currency translation reserve
Gains / losses arising on re-translating the net assets prior to adoption of
the Euro as measurement currency.
Retained earnings
Profit for the year and prior years.
T
he notes on pages 15 to 39 form an integral part of these financial statements.
15
Company Registration No. 11766110
Company Name Kronospan ApS
NOTES TO THE FINANCIAL STATEMENTS
Year ended 30 September 2025
1. PRINCIPAL ACTIVITIES
The principal activities of the Company are the production and sale of Particleboard (“PB”), Melamine Faced
Particleboard (“MF-PB”) and Tongue and Groove standard and customized boards (“T&G PB and T&G MF-PB).
2. SIGNIFICANT ACCOUNTING POLICIES
Basis of accounting
The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS)
Accounting Standards as adopted for use in the European Union, including International Accounting Standards (IAS)
and Interpretations issued by the International Accounting Standards Board (IASB), (collectively IFRSs) and
additional disclosure requirements in accordance with the Danish Financial Statements Act for large enterprises in
reporting class C as a result of the IFRS decree.
The Directors are of the opinion that preparation of the financial statements on the going concern basis is appropriate.
The principal accounting policies adopted for dealing with items which are considered material or critical in
determining the results for the year and in stating the financial position, are set out below. These policies have been
consistently applied to all the years presented, unless otherwise stated.
A complete list of other accounting policies is included in note 27.
Significant judgements and estimates
The preparation of financial statements, in conformity with Generally Accepted Accounting Principles (GAAP) under
IFRS, requires management to make estimates and assumptions that affect reported amounts of assets and liabilities
at the date of the financial statements and the amounts of revenues and expenses recognised during the reporting
period. Although these estimates are based on management’s best knowledge of the amount, event or actions, actual
results ultimately may differ from those estimates.
The Company evaluates its estimates on an on-going basis using historical experience and other factors, including
expectations of future events that are considered reasonable under the circumstances.
The following paragraphs detail the estimates and judgements the Company believes to have potentially the most
significant impact on the annual results under IFRS:
• Fair value of financial assets. The fair value of financial instruments that are not traded in an active market
is determined by using valuation techniques. The Company uses its judgement to select a variety of methods
and make assumptions that are mainly based on market conditions existing at each reporting date. The fair
value of the financial assets has been estimated based on the fair value of the individual assets.
• Financial instruments valuation methods. Valuation methods based on the discounting of future cash flows
(effective interest method) or alternative methods based on analysis of recent like arms-length transactions
or financial performance of the same type of investees are used for estimation of the value of certain
categories of financial instruments for which there are no generally available market information that is
believed to be reasonable under the circumstances. The methods may require assumptions of the management
not supported by data which are generally available. As a result, the valuation method falls under level 3 of
the fair value hierarchy. If profit or loss, income and expenses, assets and liabilities change significantly
followed by the change of assumptions the respective disclosures are made in the financial statements.
• Effective interest method is used for estimation of fair value of financial instruments and impairment test. For
estimation of the fair value of borrowings with fixed rate the interest rate applicable to new instruments with
similar credit risk and remaining maturity are used. To determine fair value of other categories of financial
instruments and estimation of value in use for impairment test, the weighted average cost (WACC) of the
Company’s capital as at the reporting date is used. The WACC of the Company’s capital is determined by
the targets set out by the Board of Directors.
• Expected credit losses for trade. At each statement of financial position date, the Company evaluates the
collectability of trade receivables using the simplified approach allowed under IFRS 9. For trade receivables,
a pre-determined matrix for uninsured overdue balances is made which increases to 100% when a balance is
more than 3 months overdue or the customer is the subject of insolvency proceedings. The actual level of
receivables collected may differ from the estimated levels of recovery, which could impact operational results
positively or negatively. At the balance sheet date there were no doubtful receivables (Note 12).
16
Company Registration No. 11766110
Company Name Kronospan ApS
NOTES TO THE FINANCIAL STATEMENTS
Year ended 30 September 2025
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
Significant judgements and estimates (continued)
Accounting for provisions and contingencies. The Company is subject to a number of claims that are
incidental to the normal conduct of its business. The Company routinely assesses the likelihood of any
adverse judgements or outcomes to these matters as well as ranges of probable and reasonable estimated
losses.
Reasonable estimates involve judgement made by management after considering information including
notifications, settlements, estimates performed by independent parties and legal counsel, available facts,
identification of other potentially responsible parties and their ability to contribute, and prior experience.
A provision is recognised when it is probable that an obligation exists and where a reliable estimate can be
made of the amount of the obligation. The required provision may change in the future due to new
developments and as additional information becomes available.
Where it is only possible that an obligation exists or where the recognition criteria for a provision are not
met, a contingent liability is disclosed unless the possibility of transferring economic benefits is remote.
• Depreciation of property, plant and equipment. The estimated useful economic lives of property, plant and
equipment (PPE) are based on management’s judgements and experience. When management identifies that
actual useful lives differ materially from the estimates used to calculate depreciation that charge is adjusted
prospectively.
Due to the significance of PPE investment to the Company, variations between actual and estimated useful
lives could impact operating results either positively or negatively, although few changes to estimated useful
lives have been required historically.
• Impairment of assets. At each reporting date, the Company is required to assess whether there is any
indication that, in management’s judgement, the carrying value of tangible or intangible assets may not be
recoverable. If any indication exists, the relevant asset’s recoverable value is estimated, being the greater of
its value in use and fair value less cost to sell. Where the carrying value exceeds the recoverable value, the
asset’s carrying value is reduced to the recoverable value.
An impairment review requires management to make subjective judgements concerning the cash flows,
growth rates and discount rates of the cash generating units under review.
Goodwill and intangible assets with an indefinite life must be tested for impairment at the end of each
reporting period irrespective of whether there is any indication of impairment.
Movements on property, plant and equipment during the year have been included within note 9.
Revenue
• Recognition and measurement. Revenue represents the amount of consideration to which the Company
expects to be entitled in exchange for transferring the promised goods to the customer, excluding amounts
collected on behalf of third parties (for example, value-added taxes); the transaction price. The Company
includes in the transaction price an amount of variable consideration as a result of rebates/discounts only to
the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognised
will not occur when the uncertainty associated with the variable consideration is subsequently resolved.
Estimations for rebates and discounts are based on the Company's experience with similar contracts and
forecast sales to the customer.
The Company recognises revenue when the parties have approved the contract (in writing, orally or in
accordance with other customary business practices) and are committed to perform their respective
obligations, the Company can identify each party's rights and the payment terms for the goods to be
transferred, the contract has commercial substance (i.e. the risk, timing or amount of the Company's future
cash flows is expected to change as a result of the contract), it is probable that the Company will collect the
consideration to which it will be entitled in exchange for the goods that will be transferred to the customer
and when specific criteria have been met for each of the Company's contracts with customers.
The Company bases its estimates on historical results, taking into consideration the type of customer, the
type of transaction and the specifics of each arrangement. In evaluating whether collectability of an amount
17
Company Registration No. 11766110
Company Name Kronospan ApS
NOTES TO THE FINANCIAL STATEMENTS
Year ended 30 September 2025
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
Revenue (continued)
of consideration is probable, the Company considers only the customer's ability and intention to pay that
amount of consideration when it is due.
Estimates of revenues, costs or extent of progress toward completion are revised if circumstances change.
Any resulting increases or decreases in estimates are reflected in the statement of comprehensive income in
the period in which the circumstances that give rise to the revision become known to the Company.
• Identification of performance obligations. The Company assesses whether contracts that involve the
provision of a range of goods and/or services contain one or more performance obligations (that is, distinct
promises to provide a service) and allocates the transaction price to each performance obligation identified
on the basis of its stand-alone selling price. A good or service that is promised to a customer is distinct if the
customer can benefit from the good or service, either on its own or together with other resources that are
readily available to the customer (that is the good or service is capable of being distinct) and the Company's
promise to transfer the good or service to the customer is separately identifiable from other promises in the
contract (that is, the good or service is distinct within the context of the contract).
• Sale of products. Sales of products are recognised at the point in time when the Company satisfies its
performance obligation by transferring control over the promised products to the customer, which is usually
when the products are delivered to the customer, risk of obsolescence and loss have been transferred to the
customer and the customer has accepted the products.
• Payment terms: Payment terms are different from customer to customer and dependant on credit insurance
cover, turnover and other terms and conditions it can be from prepayment to net 30 days.
Property, plant and equipment
All property, plant and equipment are initially recognised at cost. Borrowing costs that are directly attributable to the
acquisition, construction or production of property, plant and equipment are capitalised as part of the cost of the
property, plant and equipment.
After initial measurement, all property, plant and equipment would be subject to revaluation and would be stated at
valuation less subsequent depreciation. Any future revaluations of property, plant and equipment would be undertaken
in a period not exceeding three years. Management evaluates every year if there have been significant changes which
requires a revaluation.
Changes in carrying amounts because of asset revaluations are recognised in other comprehensive income and
accumulated in the revaluation reserve except to the extent that any decrease in value in excess of the credit balance
on the revaluation reserve, or reversal of such a transaction, is recognised in profit or loss.
The revaluation surplus included in equity in respect of an item of property, plant and equipment is transferred directly
to retained earnings when the asset is derecognised. This involves transferring the whole of the surplus when the asset
is retired or disposed of. However, some of the surplus is transferred as the asset is used by an entity. In such a case,
the amount of the surplus transferred is the difference between depreciation based on the revalued carrying amount of
the asset and depreciation based on the asset’s original cost. Transfers from revaluation surplus to retained earnings
are not made through profit or loss.
The commissioning date of a significant asset, such as a production line, is when the machine commences to produce
economic quantities. There will normally be a short period before this when test production is made, and this is not
considered to represent commissioning.
Depreciation of property, plant and equipment is calculated on a straight-line basis so as to reduce cost or valuation to
their estimated residual value over their expected useful lives. The annual depreciation rates applicable are as follows:
Buildings
3.3%
Plant and equipment
5.0%
Vehicles and other
25.0%
Land is not depreciated
Gains or losses on the disposal of property, plant and equipment are determined as the difference between the sale
price (net of selling expenses) and the net book value of the asset at the date of disposal.
18
Company Registration No. 11766110
Company Name Kronospan ApS
NOTES TO THE FINANCIAL STATEMENTS
Year ended 30 September 2025
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
Property, plant and equipment (continued)
Repairs and maintenance costs are charged directly to profit and loss. Costs for significant renovation and
improvement of property, plant and equipment are capitalised.
Assets under construction are recorded at the cost incurred in their purchase or manufacture including the cost of
financing each project until it is commissioned.
Property, plant and equipment are assessed for impairment at each reporting date as detailed in the description of
significant judgements and estimates above.
3. REVENUE
2025 2024
Euro'000 Euro'000
Domestic market 38,730
43,258
Rest of Europe 21,608 20,069
60,338 63,327
Revenue comprises primarily of sale of goods.
4. OTHER OPERATING INCOME
2025 2024
Euro’000 Euro’000
Other operating income is made up as follows:
Sale of CO2 emmission certificates 2,000 -
Waste 614 708
Weightbridge charges 234 231
Consulting income 161 157
Other - 130
3,009 1,226
5. PROFIT FROM OPERATIONS
2025 2024
Euro’000 Euro’000
Profit from operations is arrived at after charging / (crediting) among others the
following:
Staff costs (note 6) 15,561 14,875
Depreciation and amortisation expense (note 9) 3,501 3,434
Fees for statutory audit and other services - to auditor elected by the General
Assembly
45 66
Fees for tax advisory services - to auditor elected by the General Assembly - 26
Fees for other services - to auditor elected by the General Assembly
32 4
During the year ended 30 September 2025, the total audit fees amounted to Euro 77 thousand (2024: Euro 96
thousand).
19
Company Registration No. 11766110
Company Name Kronospan ApS
NOTES TO THE FINANCIAL STATEMENTS
Year ended 30 September 2025
6. EMPLOYEE BENEFIT COSTS
2025 2024
Euro’000 Euro’000
Cos t
Wages and salaries 13,597 12,883
Employer’s social security 586 726
Employer’s pension costs – defined contribution plans 1,378 1,266
15,561 14,875
2025 2024
Numbe r Number
Average number of employees
7. FINANCE INCOME AND COSTS
2025 2024
Euro’000 Euro’000
Finance income
Bank interest 3 8
9
3 89
Finance costs
Interest on bank borrowings 384 2
41
Interest on other borrowings 969 1,325
1,353 1,566
8. TAXATION
Euro’000 Euro’000 Euro’000 E
uro’000
Current tax expense
Corporation tax on profits for the year -
-
- -
Deferred tax expense
Origination and reversal of temporary differences (1,081) (1,598)
(1,081) (
1,598)
Total credit (1,081) (1,598)
2025
2024
Income tax recovery recognised in the statement of comprehensive income comprises the following:
2025 2024
Euro’000 Euro’000
Gains on property revaluation 25,674 -
Tax (5,648) -
Net of tax 20,026 -
Total income tax expense recognised in the statement of comprehensive
income
20,026 -
20
Company Registration No. 11766110
Company Name Kronospan ApS
NOTES TO THE FINANCIAL STATEMENTS
Year ended 30 September 2025
8. TAXATION (continued)
The charge for the period can be reconciled to the profit per the statement of profit or loss and other comprehensive
income as follows:
2025 2024
Euro’000 Euro’000
Loss before tax
(4,870) (7,967)
Tax at the domes tic income tax rate (2025: 22%; 2024: 22%) (1,071) (1,753)
Tax effect of expenses that are not deductible in determining taxable profit 2 298
Tax effect of revenues, allowances and income that are not taxable in
determining taxable profit
1,069 1,455
Revaluation of assets (117) (117)
Accelerated tax depreciation 159 20
Tax loss carried forward
Other deferred tax movements (1,123) (1,501)
Tax credit
(1,081) (1,598)
Effective tax rate for the year
22% n/a
Deferred Tax Liability
The following are the major deferred tax liabilities recognised by the Company and movements thereon during the
year.
Accelerated
tax
depreciation
Revaluation
of property,
pl ant and
e
qui pment
Other Total
Euro’000 Euro’000 Euro’000 E
uro’000
At 1. October 2023 4,592 3,566 9
03 9,061
Charge / (credit) to profit and loss 20 (117) (471) (568)
At 30 September 2024 4,612 3,449 432 8,493
Charge / (credit) to profit and loss 159 (117) - 4
2
Charge to equity - 5,648 - 5,648
At 30 September 2025 4,771 8,980 432 14,183
21
Company Registration No. 11766110
Company Name Kronospan ApS
NOTES TO THE FINANCIAL STATEMENTS
Year ended 30 September 2025
8. TAXATION (continued)
Deferred Tax Assets
The following are the major deferred tax assets recognised by the Company and movements thereon during the year.
Tax credits
and
exemptions
Total
Euro’000 Euro’000
At 1 October 2023 232 232
Charge to profit and loss 1,030 1,030
At 30 September 2024 1,262 1,262
Credit to profit and loss 1,123 1,123
At 30 September 2025
2,385 2,385
Tax losses
At the statement of financial position date, the Company had unused tax losses of Euro 2.4 million (2024: Euro 1.3
million) available for offset against future profits. A deferred tax asset has been recognised in respect of Euro 2.4
million (2024: 1.3 million) of such losses.
9. PROPERTY, PLANT AND EQUIPMENT
Year ended 30 September 2025
Land and
buildings
Plant and
equipment
Vehicles and
other
Construction
in progress
Total
Euro’000 Euro’000 Euro’000 Euro’000 Euro’000
Cos t or valuation
At 1 October 2024 23,309 45,883 5,539 2,202 76,933
Additions - 3,338 - 533 3,871
Dis posals - (661) - - (661)
Transfers - 2,202 - (2,202) -
Elimination on revaluation (18,659) (7,463) (3,547) - (29,669)
Revaluations 943 25,570 (839) - 25,674
Exchange difference (20) (25) (5) (2) (52)
At 30 September 2025 5,573 68,844 1,148 531 76,096
Accumulated depreciation and impairment
At 1 October 2024 18,318 5,144 3,384 - 26,846
Depreciation for the year 358 2,977 166 - 3,501
Dis posals - (653) - - (653)
Elimination on revaluation (18,659) (7,463) (3,547) - (29,669)
Exchange difference (17) (5) (3) - (25)
At 30 September 2025 - - - - -
Carrying amount
At 30 September 2025
5,573 68,844 1,148 531 76,096
22
Company Registration No. 11766110
Company Name Kronospan ApS
NOTES TO THE FINANCIAL STATEMENTS
Year ended 30 September 2025
9. PROPERTY, PLANT AND EQUIPMENT (continued)
Year ended 30 September 2024
Land and
buildings
Plant and
equipment
Vehicles and
other
Construction
in progress
Total
Euro’000 Euro’000 Euro’000 Euro’000 Euro’000
Cos t or valuation
At 1 October 2023 23,319 43,681 5,535 1,924 74,459
Additions - 329 5 2,202 2,536
Transfers - 1,924 - (1,924) -
Exchange difference (10) (51) (1) - (62)
At 30 September 2024 23,309 45,883 5,539 2,202 76,933
Accumulated depreciation and impairment
At 1 October 2023 17,969 2,268 3,218 - 23,455
Depreciation for the year 357 2,910 167 - 3,434
Exchange difference (8) (34) (1) - (43)
At 30 September 2024 18,318 5,144 3,384 - 26,846
Carrying amount
At 30 September 2024
4,991 40,739 2,155 2,202 50,087
During the financial year ending 30 September 2025, a revaluation of fixed assets was made by an independent valuer,
KROLL Germany GmbH regarding plant & equipment and Nordicals Aarhus P/S regarding land and buildings. The
revaluation was made according to IFRS 13. The effective date of revaluation was 31 August 2025.
For Plant, Machinery and equipment, fair value valuation, the cost approach utilising Depreciated Replacement Cost
(DRC) methodology was adopted. The result of the revaluation less deferred tax had been charged to Revaluation
reserve. Decrease in fair value valuation had been charged to profit and loss accounts as impairment. The revaluation
surplus relating to plant & equipment at that date amounted to Euro 24.7 million.
Plant & Equipment is measured at fair value based on level 2 of the IFRS 13 fair value hierarchy. The valuation is
determined using the cost approach, reflecting the depreciated replacement cost of assets adjusted for depreciation and
impairment. The main inputs for this valuation are the asset register and comparable prices for similar assets.
The carrying amount of Land and Buildings were lower than the fair value as valued by Nordicals Aarhus P/S,
therefore a revaluation adjustment of Euro 0.9 million has been made in the Company's separate financial statements
as at 30 September 2025.
The fair value (revaluation method) as at 30 September 2025 was measured in accordance with level 3 in the fair value
hierarchy (IFRS 13) whereby the main input is not based on observable market data.
The valuation is based on a yield-based model, where key inputs include normalized market rent, operating expenses,
and investor yield requirements. Based on the applied inputs, the fair value is classified as level 3 in the IFRS 13 fair
value hierarchy.
Valuation Method and Inputs
The fair value has been determined on a yield based model where the property's normalized net income is capitalized
using a market-determined yield requirement. The primary inputs and assumptions include:
- Market Rent is determined based on normalized market rent for comparable properties in the area set at 196
DKK/m².
- Operating Expenses is based on normalized maintenance and operating costs set at 141 DKK/m².
- Yield Requirement is determined based on market data for comparable properties and set at 9%.
23
Company Registration No. 11766110
Company Name Kronospan ApS
NOTES TO THE FINANCIAL STATEMENTS
Year ended 30 September 2025
9. PROPERTY, PLANT AND EQUIPMENT (continued)
Sensitivity Analysis
The fair value is affected by changes in the yield requirement and market rent. A change in key assumptions would
have the following impact on the fair value:
A change of the yield requirement of 0.5% point would lead to the fair value changing with +/- Euro 288 thousand.
A change in the market rent of 5% would lead to the fair value changing with +/- Euro 971 thousand.
The carrying amount as at 30 September 2025 that would have been recognised had the assets been carried under the
historic model is presented in the table below:
Land and
buildings
Plant and
equipment
Vehicles and
other
Construction
in progress
Total
Euro’000 Euro’000 Euro’000 Euro’000 Euro’000
Carrying amount - historic cost
model
4,630 30,079 268 531 35,508
10. INVESTMENTS
Inves tment in
subsidiaries
Inves tment in
joint
ventures
Total
Euro’000 Euro’000 Euro’000
At 1 October 2023 - 729 729
Exchange difference
- (2) (2)
At 30 September 2024 - 727 727
Trans fer 727 (727) -
Additions 3,000 - 3,000
At 30 September 2025 3,727 - 3,727
At 30
th
June 2025, Kronospan ApS bought the remaining 50% of Nordalim A/S from Dynea in Norway, which then
changed its name to Nordalim ApS. Nordalim ApS is now 100% owned by Kronospan ApS and will be fully
consolidated in Kronospan Baltic Limited from that date. The details of the company are as follows:
Name
Country of Incorporation Principal Activities Shareholding %
Nordalim ApS Denmark 100
Manufacture and sale of Urea-Melamine, Urea-
Formaldehyde Resin and Chemicals
Equity of Nordalim ApS as at 30 September 2025 was Euro 2.4 million and total loss for the year was Euro 0.8
million.
24
Company Registration No. 11766110
Company Name Kronospan ApS
NOTES TO THE FINANCIAL STATEMENTS
Year ended 30 September 2025
11. INVENTORIES
2025 2024
Euro’000 Euro’000
Raw materials 3,408 3,910
Finished products 4,048 2,889
7,456 6,799
Raw materials valued at Euro 3.408 million (2024: Euro 3.910 million) include a provision of Euro 3 million (2024:
Euro 2.7 million) and are therefore carried at the lower of cost and net realisable value.
Finished goods valued at Euro 4.048 million (2024: Euro 2.889 million) include a provision of Euro 212 thousand
(2024: Euro 144 thousand) and are therefore carried at the lower of cost and net realisable value.
Emission quotas allocated to the Company as at 30 September 2025 valued at Euro 4.5 million (2024: Euro 4.7 million)
are not recognised on the statement of financial position.
12. TRADE AND OTHER RECEIVABLES
2025 2024
Euro’000 Euro’000
Trade receivables 7,598 5,099
Other accounts receivable 2,010 930
9,608 6,029
Other accounts receivable do not include amounts due from related parties (2024: Euro 0.2 million) (note 21).
Trade receivables are further analysed as follows:
2025 2024
Euro’000 Euro’000
Gross value 7,598 5,099
Expected credit loss provision - -
Ne t val ue 7,598 5,099
Analysis of trade receivables:
Not due 7,200 4,299
Due and for which there is no expected loss provision
- Insured 313 620
- Not insured 85 180
398 800
- Due 0 - 90 days 387 513
- Due + 90 days 11 287
398 800
Due and for which there is expected loss provision
- Due 0 - 90 days - -
- Due + 90 days - -
- -
Total
7,598 5,099
Uninsured trade receivables that are due and not impaired represent balances with internal customers who have no
default history.
25
Company Registration No. 11766110
Company Name Kronospan ApS
NOTES TO THE FINANCIAL STATEMENTS
Year ended 30 September 2025
13. CASH AND CASH EQUIVALENTS
Cas h
Bank and
other
overdrafts
(note 15)
Net
Euro’000 Euro’000 Euro’000
At 1 October 2023 9,198 (3,310) 5,888
Movement for the year (9,070) (2,096) (11,166)
At 30 September 2024 128 (5,406) (5,278)
Movement for the year 233 (8,757) (8,524)
At 30 September 2025
361 (14,163) (13,802)
14. SHARE CAPITAL
2025 2024 2025 2024
Numbe r Numbe r Euro’000 Euro’000
Authorised ordinary shares of DKK 1 each 90,457 90,457 12,155 12,155
Issued ordinary shares of DKK 1 each 90,457 90,457 12,155 12,155
There are no restrictions attaching to the ordinary shares.
15. BANK BORROWINGS AND OTHER LOANS
2025 2024
Euro’000 Euro’000
Bank borrowings and other loans including overdrafts 14,163 5,406
Less: Instalments due after more than one year - -
Bank borrowings and other loans including overdrafts due within one year 14,163 5,406
Bank borrowings and other loans including overdrafts due within one year are analysed as follows:
2025 2024
Euro’000 Euro’000
Current portion of bank and other overdrafts 14,163 5,406
14,163 5,406
The carrying amount of short and long term borrowings approximate their fair value.
26
Company Registration No. 11766110
Company Name Kronospan ApS
NOTES TO THE FINANCIAL STATEMENTS
Year ended 30 September 2025
15. BANK BORROWINGS AND OTHER LOANS (continued)
2025 2024
Euro’000 Euro’000
Bank and other overdrafts (note 13)
14,163 5
,406
The weighted average interest rates paid were as follows:
2025 2024
% %
Bank and other overdrafts 3.9 6.4
Bank and other overdrafts are repayable on demand and are secured on the inventories and trade receivables of the
Company. Bank and other overdraft facilities are subject to renewal on 28 February 2026.
At 30 September 2025, the Company had available Euro 0.7 million (2024: Euro 4.90 million) of undrawn committed
borrowing facilities in respect of which all conditions precedent had been met.
16. SUBORDINATED LOANS OR LOANS AVAILABLE FOR SUBORDINATION
2025 2024
Euro’000 Euro’000
Total loans 13,125 1
2,625
Less: Instalments due after more than one year (7,625) (10,125)
Loans due within one year 5,500 2
,500
Repayment of loans are analysed as follows:
2025 2024
Euro’000 Euro’000
Due within 1 year 5,500 2,500
Instalments due after 1 year but not more than 2 years 2,500 2,500
Instalments due after 2 years but not more than 5 years 4,250 5,875
Instalments due after 5 years 875 1,750
13,125 12,625
The weighted average interest rates paid were as follows:
2025 2024
% %
Total loans 7.7 8.9
The above loans are unsecured.
27
Company Registration No. 11766110
Company Name Kronospan ApS
NOTES TO THE FINANCIAL STATEMENTS
Year ended 30 September 2025
17. OTHER LONG TERM LIABILITIES
2025 2024
Euro’000 Euro’000
Total other payables 1,392 1,391
Less due after more than one year (1,349) (1,341)
Other payables due within 1 year 43 50
2025 2024
Euro’000 Euro’000
Due within 1 year 43 50
Due after 2 years but not more than 5 years 184 208
Due after 5 Years 1,165 1,133
18. FORWARD CONTRACTS HELD AT FAIR VALUE
Derivative financial assets
2025 2024 2025 2024
Euro’000 Euro’000 Euro’000 Euro’000
Derivatives not designated as hedging
instruments
382 163 219 731
382 163 219 731
Analysis of derivative financial assets
Current 382 163 219 731
382 163 219 731
At fair value
Change in fair value
Financial instruments
The Company has entered into an agreement on supply of electricity to the Company. The agreement has been made
in the form of a Contract of supply of electricity and settlement at a variable spot price for the supplied amount.
In addition, the Company has entered into a financial contract, in which it is agreed that a part of the future supplied
electricity will be settled proportionally to a predetermined fixed price. It is agreed that a certain, fixed amount of
electricity is settled at a fixed price via a cash settlement based on the difference between the variable spot price
prevailing at the time and the agreed-upon fixed price for the period 2025-2025. The fair value of this forward contract
is Euro 382 thousand (2024: 163 thousand) as of the balance sheet date. The Company has opted not to use hedge
accounting for these contracts.
28
Company Registration No. 11766110
Company Name Kronospan ApS
NOTES TO THE FINANCIAL STATEMENTS
Year ended 30 September 2025
18. FORWARD CONTRACTS HELD AT FAIR VALUE (continued)
Fair value of financial instruments
The fair value is the amount at which a financial asset can be traded, or the amount at which a financial liability can
be redeemed, between qualified, willing and independent parties. The fair value may be the net book value, if the net
book value is calculated on the basis of underlying assets and liabilities measured at fair value. The following three
levels of valuation categories can be used to compile the fair value:
Level 1: Listed prices in an active market for the same type of financial instruments, i.e. with no change in form or
structure.
Level 2: Listed prices in an active market for similar assets or liabilities, or other valuation methods in which all
significant input is based on observable market data.
Level 3: Valuation methods whereby any significant input is not based on observable market data.
Transfers are made between the categories if an instrument’s classification on the balance sheet date differs from its
classification at the beginning of the financial year.
The classification of an item into the above levels is based on the lowest level of the inputs used that has a significant
effect on the fair value measurement of the item. Transfers of items between levels are recognised in the period they
occur.
The fair value at 30 September 2025 was measured in accordance with level 1 in the fair value hierarchy (IFRS 13).
Level 2 is based on Listed prices in an active market for the same type of financial instruments with a deduction of the
secured fixed price multiplied with the amount (kWh).
2025 2026 2027 2028
Covered quantity Gwh 4,418 21,900 17,520 8,784
The secured fixed prices vary throughout 2025 – 2028 within the price span 67,90 –71,46 EUR/1000 KWH.
Sensitivity
The effect of the decrease in the market price of power of 10% would lead to a decrease of forward contracts held at
fair value and Profit or Loss of Euro 368 thousand respectively.
19. TRADE AND OTHER PAYABLES
2025 2024
Euro’000 Euro’000
Trade payables 7,751 4,016
Other payables and accruals 4,718 4,932
12,469 8,948
Trade and other payables principally comprise amounts outstanding for trade purchases and on-going costs.
Trade payables include amounts due to related parties in the amount of Euro 1.9 million (2024: Euro 0.2 million)
(Note 21).
The directors consider that the carrying amount of trade payables approximates to their fair value.
The implementation of the requirement from Environmental Protection Agency (EPA) to have fuel stock equal to one
year’s usage has been deferred from 1 January 2025 to 1 January 2027. The Company, as at 30 September 2025, had
an excess of fuel stock for which a provision of Euro 0.4 million was recognised as at that date (2024: Euro 0.4 million).
This provision is included in other payables and accruals.
29
Company Registration No. 11766110
Company Name Kronospan ApS
NOTES TO THE FINANCIAL STATEMENTS
Year ended 30 September 2025
20. RELATED PARTY TRANSACTIONS
The Company is controlled by Kronospan Baltic Holding Ltd incorporated in Cyprus, which owns 100% of the
Company’s shares.
Each of Betuva Stiftung, Naruso Stiftung and Luda Stiftung, which are discretionary, irrevocable foundations
registered in Liechtenstein, holds 33.3% of the voting interest in the Group. Due to the interests of different share
classes, Betuva Stiftung is considered to have significant influence over the Group and is the ultimate controlling
party. Related parties are those entities over which Betuva Stiftung has significant influence.
The following transactions were carried out with related parties:
Sales of goods and services
2025 2024 2025 2024 2025 2024
Euro’000 Euro’000 Euro’000 Euro’000 Euro’000 Euro’000
Joint Venture - - - 157 - 157
Subsidiaries - - 161 - - -
Fellow Subs idiaries 753 - - - -
Other related parties 24 - - - - -
24 753 161 157 - 157
Sale of goods
Sale of services
Amounts owed by related
parties
Purchase of goods and services
2025 2024 2025 2024 2025 2024
Euro’000 Euro’000 Euro’000 Euro’000 Euro’000 Euro’000
Joint Venture - 10,514 - - 1,730 161
Subsidiaries 11,067 - - - - -
Fellow s ubs idiaries 336 89 - 34 120 -
Other related parties 1,511 40 746 694 - -
12,914 10,643 746 728 1,850 161
Purchas e of goods (incl.
fixed assets)
Purchase of services
Amounts owed to related
parties
Sales and purchases of goods and services are made with related parties on an arm’s length basis in the normal course
of business.
Other related parties represent entities which are under common control of the ultimate controlling party of the
company.
30
Company Registration No. 11766110
Company Name Kronospan ApS
NOTES TO THE FINANCIAL STATEMENTS
Year ended 30 September 2025
20. RELATED PARTY TRANSACTIONS (continued)
Key management personnel remuneration
Key management personnel are those persons having authority and responsibility for planning, directing and
controlling the activities of the Company, including the directors of the Company.
2025 2024
Euro’000 Euro’000
Salaries and other short-term employee benefits 21 6
7
Employer's social security 1 1
Employer's pension costs - defined contribution plans 2 7
24 75
Directors’ salaries have partly been paid by a fellow subsidiary as their CEO from 1 October 2024 – 30 September
2025 have been CEO for Kronospan ApS. A partly estimated proportion has been added to Salaries line.
21. NOTES SUPPORTING THE STATEMENT OF CASH FLOWS
The table below details changes in the Company’s liabilities arising from financing activities, including both cash and
non-cash flows:
Bank
borrowings
and other
loans (note
15)
S ubor di nate d
loans or loans
available for
subordination
(note 16)
Total
Euro’000 Euro’000 Euro’000
At 1 October 2023 3.310 15.125 18.435
Net cash flows 2.096 (2.500) (404)
At 30 September 2024
5.406 12.625 18.031
Net cash flows 8.757 500 9.257
At 30 September 2025
14.163 13.125 27.288
22. ENVIRONMENTAL POLICY
The Group receives emission rights certificates which are allocated free of charge by governments. It is Group policy
to account for these at their acquisition cost, which is equal to zero due to the free allocation. The Group recognises
the value of any surplus emission certificates only upon disposal. We will continue with this policy for IFRS purposes.
31
Company Registration No. 11766110
Company Name Kronospan ApS
NOTES TO THE FINANCIAL STATEMENTS
Year ended 30 September 2025
23. CONTINGENT LIABILITIES
The Company and its subsidiary Nordalim ApS, are taxed jointly, following the acquisition of 100% of the shares of
the latter by the Company. This means that the two companies are jointly and severally liable for any corporation tax
due. At the date of preparation of the Company’s financial statements, there was no tax liability.
24. CAPITAL COMMITMENTS
As at 30 September 2025 and 30 September 2024, the Company had no contractual obligations.
25. EVENTS AFTER THE REPORTING PERIOD
There were no material events after the reporting period, which have a bearing on the understanding of the financial
statements.
26. RISK MANAGEMENT
General objectives, policies and processes
The Company operates procedures designed to reduce or eliminate financial risk and ensure that funds are available
for current and future needs. The policies are approved by the Board and the use of financial instruments is strictly
controlled.
Principal financial instruments
A summary of the financial instruments held by category is provided below:
Financial assets
2025 2024 2025 2024
Euro’000 Euro’000 Euro’000 E
uro’000
Trade, related party and other receivables - - 7,598 5,099
Forward contracts held at fair value 382 163 - -
Cash and cash equivalents - - 361 128
Total financial assets
382 163 7
,959 5,227
Financial as s ets at fair
value through profit or
loss
Financial as s ets at
amortis ed cost
Financial liabilities
2025 2024
Euro’000 Euro’000
Bank and other overdrafts 14,163 5,406
Subordinated loans or loans available for subordination 13,125 12,625
Trade, related party, investment and other payables 7,751 5,213
Total financial liabilities
35,039 23,244
Financial liabilities at
amortis ed cost
32
Company Registration No. 11766110
Company Name Kronospan ApS
NOTES TO THE FINANCIAL STATEMENTS
Year ended 30 September 2025
26. RISK MANAGEMENT (continued)
Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to
meet its contractual obligations. The Company is mainly exposed to credit risk from credit sales. The major part of
trade receivables (97%) is covered by credit insurance. Where credit insurance is not available, or is restricted,
Company policies provide the basis for establishing a credit limit for each customer. Customers may also purchase on
a pre-payment basis.
Credit risk also arises from cash and cash equivalents and deposits with banks and financial institutions. For banks
and financial institutions, only independently rated parties with acceptable ratings are authorised.
The Company does not enter into derivatives to manage credit risk of this type, although it does when appropriate
enter into forward purchases of currency for trade related payables which are due for payment during the next month.
Quantitative disclosures of the credit risk exposure in relation to financial assets are set out below. These also include
certain other liquid non-financial assets with potential credit risk. Further disclosures regarding trade and other
receivables, which are neither past due nor impaired, are provided in note 12.
2025 2024 2025 2024
Euro’000 Euro’000 Euro’000 E
uro’000
Trade and other receivables
9,608 6,029 8,567 6
,029
Cash and cash equivalents
361 128 361 1
28
Forward contracts held at fair value
382 163 382 1
63
10,351 6,320 9,310 6
,320
Carrying value
Maximum exposure
Market risk
(i) Interest rate risk
As a result of the relevant portion of floating rate borrowings the Company is exposed to interest rate risk, in particular
the risk of variation in national currency and Euro interest rates. Whilst the Company takes steps to minimise its
exposure to cash flow interest rate risk, changes in interest rates will have an impact on profit. Management continually
monitor interest rate movements to assess the impact that this will have upon interest costs. The annualised effect of a
1% increase in the interest rate at the statement of financial position date on variable rate debt carried at that date
would, all other variables being held constant, have resulted in a decrease of the Company’s pre-tax profit for the year
of Euro 0.138 million (2024: Euro 0.053 million). A 1% decrease in the interest rate would, on the same basis, have
increased pre-tax profits by the same amount.
33
Company Registration No. 11766110
Company Name Kronospan ApS
NOTES TO THE FINANCIAL STATEMENTS
Year ended 30 September 2025
26. RISK MANAGEMENT (continued)
Market risk (continued)
(ii) Currency risk
The Company is exposed to foreign exchange risk as a result of fluctuations between the national currency and the
Euro. Where possible, income streams in one currency are used to meet payment obligations in the same currency.
Company policy allows forward purchase for trade related payable items which are due for payment during the next
month.
The following table details the Company’s sensitivity to a 5% increase or decrease in the Euro against the relevant
local currency which represents management’s assessment of the reasonably possible change in foreign exchange
rates.
2025 2024
E
uro’000 Euro’000
1. Denominated in DKK
Monetary financial assets 8,341 5,390
Monetary financial liabilities (21,914) (10,619)
Net liabilities (13,573) (5,229)
Impact on results
5% DKK appreciation (Euro depreciation) (679) (261)
5% DKK depreciation (Euro appreciation) 679 261
2. Denominated in Euro
Monetary financial assets - -
Monetary financial liabilities (13,125) (12,625)
Net liabilities (13,125) (12,625)
Impact of DKK
Gain / (loss)
(iii) Commodities price risk
Based on the power usage and the volatility of the market prices relating to power supply, cash flows and operating
expenses are influenced by changes in the market prices of power supply. The Company has entered into a hedge
contract for the period 2025 – 2028 to secure the price of power supply.
The group does not use speculative hedging.
Liquidity risk
Company liquidity risk management aims to ensure that the Company is able to timely obtain the financing required
to properly carry on its business activities, implement its strategy, and meet its payment obligations when due, while
avoiding the need of having to obtain funding under unfavourable terms.
For this purpose, liquidity management at the Company comprises:
• consistent financial planning and cash flow forecasting at company levels with different time horizons
(monthly, annual and three year business plans);
• diversification of financing sources;
• diversification of the maturities of the debt issued in order to avoid excessive concentration of debt
repayments in short periods of time;
• arrangement of committed credit facilities with relationship banks, ensuring the right balance between
satisfactory liquidity and adequate commitment fees.
34
Company Registration No. 11766110
Company Name Kronospan ApS
NOTES TO THE FINANCIAL STATEMENTS
Year ended 30 September 2025
26. RISK MANAGEMENT (continued)
Maturity of financial liabilities
The table below summarises the maturity profile of the Company’s financial liabilities based on contractual
undiscounted payments.
At 30 September 2025 On demand
Less than
12 months
1 - 5 years > 5 years Total
Euro’000 Euro’000 Euro’000 Euro’000 Euro’000
Bank and other overdrafts 14,163 - - - 14,163
Subordinated loans or loans
available for subordination
- 6,210 6,875 1,907 14,992
Trade, related party, investment
and other payables
(excl.
prepayments, dividend payable, VAT,
corporate and other taxes, social
security, provisions)
- 7,751 - - 7,751
14,163 13,961 6,875 1,907 36,906
At 30 September 2024 On demand
Less than
12 months
1 - 5 years > 5 years T
otal
Euro’000 Euro’000 Euro’000 Euro’000 Euro’000
Bank and other overdrafts 5,406 - - - 5
,406
Subordinated loans or loans
available for subordination
- 3,486 3,280 8,995 15,761
Trade, related party, investment
and other payables
(excl.
prepayments, dividend payable, VAT,
corporate and other taxes, social
security, provisions)
- 5,213 - - 5,213
5,406 8,699 3,280 8,995 26,380
Bank borrowings and other loans include interest calculated at the rate applicable at 30 September.
Capital disclosures
The Company manages its capital to ensure that it will be able to continue as a going concern while maximising the
return to stakeholders through the optimisation of the debt and equity balance. Capital is defined as total equity.
Adjusted capital is defined as total equity plus subordinated loans or loans available for subordination.
The Company’s objectives when maintaining adjusted capital are:
To set the amount of adjusted capital it requires in proportion to risk. The Company manages its capital structure and
makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying
assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to
shareholders, return capital to shareholders or issue new shares.
The Company monitors adjusted capital on the basis of the debt to adjusted capital ratio. This ratio is calculated as net
bank debt: adjusted capital. Net debt is calculated as total bank debt (as shown in the statement of financial position)
including lease liabilities, less cash and cash equivalents.
35
Company Registration No. 11766110
Company Name Kronospan ApS
NOTES TO THE FINANCIAL STATEMENTS
Year ended 30 September 2025
26. RISK MANAGEMENT (continued)
Capital disclosures (continued)
The Company’s strategy, which is unchanged from last year, is to maintain the debt-to-adjusted capital ratio at below
1:1 as follows:
2025 2024
Euro’000 Euro’000
Bank borrowings and other loans 14,163 5,406
Less cash and cash equivalents (361) (128)
Ne t de bt 13,802 5
,278
Total equity 44,683 28,426
Plus subordinated loans or loans available for subordination 13,125 12,625
Adjus te d c api tal 57,808 41,051
Debt to adjusted capital ratio
N/A N/
A
27. OTHER ACCOUNTING POLICIES
Changes in accounting policies
(i) New standards, amendments to published standards and interpretations to existing standards effective in the current
financial year adopted by the Company.
There have been no new standards nor amendments to standards adopted by the Company for the first time for the
financial year beginning on or after 1 October 2024 that will have a material impact on the Company.
(ii) Standards, amendments and interpretations to published standards not yet effective
A number of new standards and amendments to standards and interpretations are effective for annual periods beginning
after 1 October 2025, and have not been applied in preparing these financial statements. None of these are expected to
have a significant effect on the financial statements of the Company.
Intangibles
Intangible assets are shown at cost and are amortised on a straight line basis method over their estimated useful life
Intangibles are subject to impairment reviews whenever events or changes in circumstances indicate that their carrying
value may not be recoverable. Where the carrying value is more than the recoverable value, the asset’s carrying value
is reduced to the recoverable value. The annual amortisation rates applicable are as follows:
Software
25.0%
36
Company Registration No. 11766110
Company Name Kronospan ApS
NOTES TO THE FINANCIAL STATEMENTS
Year ended 30 September 2025
27. OTHER ACCOUNTING POLICIES (continued)
Investments in joint ventures and subsidiaries
The Company´s share in joint venture and subsidiaries is stated at cost less provision for impairment in value, which
is recognized as an expense in the period in which the impairment is identified.
Taxation
Corporation tax is provided on the taxable profit for the year at the applicable tax rate.
Deferred tax assets and liabilities are recognised where the carrying amount of an asset or liability in the statement of
financial position differs to its tax base, except for differences arising on the initial recognition of an asset or liability
in a transaction which is not a business combination and the timing of the transaction affects neither accounting nor
taxable profits.
Recognition of deferred tax assets is restricted to those instances where it is probable that taxable profit will be
available against which the difference can be utilised. A deferred tax asset is recognised for unused tax losses, tax
exemptions and tax credits to the extent that the future tax savings can be reasonably estimated.
The amount of the asset or liability is determined using tax rates that have been enacted or substantively enacted by
the statement of financial position date and expected to apply when the deferred tax liabilities/(assets) are
settled/(recovered).
Foreign currency transactions
The books and records of the Company are maintained in local currency, Danish kroner (DKK), to comply with local
legal requirements. However, for the purpose of IFRS Company reporting the Euro was treated as the measurement
(functional) currency because of its significance to the operations in the Company. Consequently, the following
translation was done:
i) Statement of profit or loss and other comprehensive income items (excluding foreign exchange differences,
non-current asset depreciation and disposal expense) were translated into Euro at the average monthly
exchange rate for the year.
ii) Equity, non-monetary assets and liabilities were re-measured into Euro at historical exchange rates prevailing
on the transaction dates. Non-current assets depreciation and disposal expense were re-measured accordingly.
iii) All monetary assets and liabilities were translated into Euro at the exchange rate prevailing on the statement
of financial position date.
All foreign exchange gains or losses resulting from the above translation were credited or debited to the statement of
profit or loss and other comprehensive income in accordance with IAS 21.
Inventories
Inventories are valued at the lower of cost and net realisable value. Materials are valued at cost which consists of
purchase price, freight inwards, and customs duties and are decreased by discounts received. The value of materials
used and trading goods dispatched is calculated on a weighted average cost basis.
Finished goods produced are valued at the average cost of materials and direct labour plus depreciation of plant and
equipment used in production based on the normal level of activity of the Company and a share of production
overheads. Net realisable value is based on estimated selling price less further costs expected to be incurred to
completion and sale. Trading goods are valued at purchase price. Provisions are also made for slow moving and
obsolete finished goods and spare parts.
Employee benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. The Company
makes provisions for bonuses where contractual obligations exist for payment.
37
Company Registration No. 11766110
Company Name Kronospan ApS
NOTES TO THE FINANCIAL STATEMENTS
Year ended 30 September 2025
27. OTHER ACCOUNTING POLICIES (continued)
Dividends
Interim dividends are recognised in equity in the year in which they are paid. Final dividends are recognised in equity
in the year in which they are declared. Dividend income is recognised when the right to receive payment is established.
Financial assets
All purchases and sales of financial assets that require delivery within the time frame established by regulation or
market convention (''regular way'' purchases and sales) are recorded at the trade date, which is the date when the
Company commits to deliver a financial instrument. All other purchases and sales are recognised when the entity
becomes a party to the contractual provisions of the instrument.
Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have
been transferred and the Company has transferred substantially all the risks and rewards of ownership.
The Company classifies its financial assets into one of the categories discussed below, depending on the purpose for
which the asset was acquired.
The Company’s accounting policy for each category is as follows:
(i) Amortised cost
These assets are non-derivative financial assets with fixed or determinable payments that are not quoted in an active
market. They arise principally through the provision of goods and services to customers (e.g. trade receivables), but
also incorporate other types of contractual monetary assets held for the collection of contractual cash flows where
those cash flows represent solely payments of principal and interest. They are initially recognised at fair value plus
transaction costs that are directly attributable to their acquisition or issue, and are subsequently carried at amortised
cost using the effective interest rate method, less provision for impairment. Interest income from these financial assets
is included in finance income on the statement of profit or loss and other comprehensive income. Any gain or loss
arising on derecognition is recognised directly in profit or loss.
The Company’s financial assets measured at amortised cost comprise, trade and other receivables as well as cash and
cash equivalents in the statement of financial position.
Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short term highly liquid
investments with original maturities of three months or less, and – for the purpose of the statement of cash flows -
bank and other overdrafts. Bank and other overdrafts are shown within loans and borrowings in current liabilities on
the statement of financial position.
Impairment provisions for trade receivables are recognised using a pre-determined provision matrix for uninsured
overdue balances which increases to 100% when a balance is more than three months overdue or the customer is the
subject of insolvency proceedings. For trade receivables, which are reported net, such provisions are recorded in a
separate provision account with the loss being recognised within other operating expenses in the statement of profit or
loss and other comprehensive income. On confirmation that the trade receivable will not be collectable, the gross
carrying value of the asset is written off against the associated provision.
Impairment provisions for other receivables, loans advanced, cash and cash equivalents are recognised based on a
forward looking expected credit loss model. During this process the probability of the non-payment of the receivable
is assessed. This probability is then multiplied by the amount of the expected loss arising from default to determine
the lifetime expected credit loss for the receivables. The methodology used to determine the amount of the provision
is based on whether there has been a significant increase in credit risk since initial recognition of the financial asset.
For those where the credit risk has not increased significantly since initial recognition of the financial asset, twelve
month expected credit losses along with gross interest income are recognised. For those for which credit risk has
increased significantly, lifetime expected credit losses along with the gross interest income are recognised. For those
that are determined to be credit impaired, lifetime expected credit losses along with interest income on a net basis are
recognised.
38
Company Registration No. 11766110
Company Name Kronospan ApS
NOTES TO THE FINANCIAL STATEMENTS
Year ended 30 September 2025
27. OTHER ACCOUNTING POLICIES (continued)
(ii) Fair value through profit or loss
This category comprises forward contracts. They are carried in the statement of financial position at fair value with
changes in fair value recognised in the statement of profit or loss. The Company does not have any assets held for
trading nor does it voluntarily classify any financial assets as being fair value through profit or loss.
Financial liabilities
The Company classifies its financial liabilities into one of two categories, depending on the purpose for which the
liability was acquired.
The Company’s accounting policy for each category is as follows:
(i) Amortised cost
Comprises bank and other loans, overdrafts, trade payables and other short term liabilities. Bank and other loans and
overdrafts are initially recognised at fair value. Such interest bearing liabilities are subsequently measured at amortised
cost using the effective interest rate method, which ensures that any interest expense over the period to repayment is
at a constant rate on the balance of the liability carried in the statement of financial position. Interest expense in this
context includes initial transaction costs and premium payable on redemption, as well as any interest or coupon payable
while the liability is outstanding. Trade payables and other short term liabilities are initially recognised at fair value
and subsequently carried at amortised cost using the effective interest method.
Financial guarantee contracts
Financial guarantee contracts are contracts that require the Company to make specified payments to reimburse the
holder of the guarantee for a loss it incurs because a specified debtor fails to make payment when due in accordance
with the terms of debt instrument. Such financial guarantees are given to banks, financial institutions and suppliers to
secure financing or trade credit.
Financial guarantees are recognised as a financial liability at the time the guarantee is issued. Financial guarantees are
initially recognised at their fair value. This amount is amortised on a straight line basis over the life of the guarantee
in profit or loss.
At the end of each reporting period, the guarantee is subsequently the higher of:
• the amount of the loss allowance determined in accordance with the expected credit loss model under
IFRS 9 Financial Instruments and
• the amount initially recognised less, where appropriate, the cumulative amount of income recognised
in accordance with the principles of IFRS 15 Revenue from Contracts with Customers.
Provisions
Provisions are recognised for liabilities of uncertain timing or amount that have arisen as a result of past transactions
and are discounted at a pre-tax rate reflecting current market assessments of the value of money and the risks specific
to the liability.
Subordinated loans or loans available for subordination
Subordinated loans or loans available for subordination comprises:
• Loans that are formally subordinated to senior lenders
• Loans from parent, grand parent or related companies which from their nature would be available for
subordinated at the request of lenders or future potential lenders
• Loans from entities with which the parent has a strategic relationship and where a request for subordination
is expected to be favourably considered, depending on agreeing commercial terms.
39
Company Registration No. 11766110
Company Name Kronospan ApS
NOTES TO THE FINANCIAL STATEMENTS
Year ended 30 September 2025
27. OTHER ACCOUNTING POLICIES (continued)
Net finance costs
Interest and other costs on borrowings to finance construction or production of qualifying assets are capitalised, during
the period of time that is required to complete and prepare the asset for its intended use. All other borrowing costs are
expensed in the year to which they relate.
Emission rights
For further information on the policy regarding emission rights please see Note 23 Emission rights.
Explanation of financial Ratios
Return on investment
=
Ordinary operating profit x 100
Average invested capital
Solvency ratio =
Equity at year end x 100
Total assets
Return on equity =
Profit for the year x 100
Average Equity
Non-GAAP financial measures
In evaluation of our business, we utilise certain non-GAAP financial measures, specifically EBITDA.
EBITDA refers to Earnings Before Interest, Tax, Depreciation, Amortisation and Impairment, Currency translation
differences and Deferred grants credited, where Earnings relates to net profit before items considered by management
to be outside the ordinary course of business.
2025 2024
Euro’000 Euro’000
Loss from operations (3,728) (5,767)
Depreciation and amortisation 3,501 3,434
EB ITDA
(227) (2,333)
28. CONSOLIDATED FINANCIAL STATEMENTS
The Company is included in the Consolidated Financial Statements of Kronospan Baltic Limited, the Parent Company,
Tagmatarchou Pouliou 9, 1101 Ayios Andreas, Nicosia, Cyprus. CVR no. HE162412.