T&W Medical A/S
Nymøllevej 6, 3540 Lynge
Annual report for 2024/25
CVR NO: 28 51 18 09
The Annual Report was presented and
adopted at the Annual General Meeting
of the Company on
23 March 2026
T&W Medical A/S 2
Management's Statement 3
Independent auditor's report 4
Management's Review 7
Key figures and financial ratio 7
Primary activities 8
Financial review 10
Outlook 11
Risk Management 11
Statutory report on corporate social responsibility 14
Consolidated financial statements
Consolidated statement of profit or loss 20
Consolidated statement of comprehensive income 20
Consolidated statement of financial position 21
Consolidated statement of changes in equity 23
Consolidated statement of cash flows 25
Notes to the consolidated financial statements 26
Parent company financial statements 101
Statement of profit or loss 102
Statement of financial position 102
Statement of changes in equity 104
Statement of cash flows 105
Notes to the financial statements 106
Entity information 114
Table of contents
T&W Medical A/S 3
Executive Management
Board of Directors
T&W Medical A/S 4
T&W Medical A/S 5
T&W Medical A/S 6
CVR No 33 77 12 31
mne23331 mne33251
T&W Medical A/S 7
Management's Review
Key figures and financial ratio
s
Restated^ Restated^ Restated^ Restated^
DKKm
2024/25 2023/24 2022/23 2021/22 2020/21
Consolidated Statement of Profit or Loss
Revenue 19.251 19.674 18.371 17.493 15.288
Gross profit 12.092 11.155 10.734 10.250 8.962
EBITDA before special items* 3.234 3.039 2.566 - -
Normalized EBITDA - - 2.804 2.691 2.778
Reported EBITDA 3.062 2.882 2.551 2.096 2.398
Depreciation and amortization** 1.139 10.481 1.962 1.940 2.044
EBIT 1.907 (7.593) 589 137 292
Net financial items (1.847) (3.349) (1.165) (2.343) (247)
Profit/(loss) before tax 60 (10.942) (576) (2.207) 46
Profit/(loss) for the year (347) (9.128) (614) (2.133) (23)
Consolidated Statement of Financial Position
Assets 42.040 43.047 54.010 54.878 54.316
Net interest-bearing debt 23.746 25.421 31.099 29.815 27.806
Net working capital 2.328 2.384 1.927 2.138 1.688
Equity 9.981 6.978 12.756 13.671 14.610
Other key figures
Investment in property, plant and equipment 381 806 612 462 325
Cash flow from operating activities 2.824 2.023 2.254 1.856 2.821
Free cash flow 2.752 220 1.481 2.230
2.011
Average number of employees 12.654 12.833 12.682 12.111 11.546
Financial ratios, %
Gross profit margin 62,8% 56,7% 58,4% 58,6% 58,6%
Reported EBITDA margin 15,9% 14,6% 13,9% 12,0% 15,7%
Normalized EBITDA margin - - 15,3% 15,4% 18,2%
EBITDA margin before special items 16,8% 15,4% 14,0% - -
EBIT margin 9,9% -38,6% 3,2% 0,8% 1,9%
Return on equity -4,1% -92,5% -4,6% -15,1% -0,2%
Equity ratio 23,7% 16,2% 23,6% 24,9% 26,9%
*In Q1 2024, the Group introduced a new structure for reporting on EBITDA metric; EBITDA before special items. The new
metric substitutes the previous measure defined by the covenant package in the Senior Facilities Agreement (SFA) - Normalized
EBITDA relating to merger-related cost. EBITDA before special items is adjusted for costs that are exceptional in nature.
^The comparative Financial Statements have been restated as development costs previously capitalized have been
retrospectively expensed. Please refer to Note 1.3 of the Consolidated Financial Statements for further information.
**Includes amortization of identifiable assets from Purchase Price Allocations of DKK 45 million (2023/24: DKK 9,604 million)
from business combinations.
T&W Medical A/S 8
Key figures / Financial ratios definitions
EBITDA
EBIT Earnings before interest and tax
Net financial items
Net interest-bearing debt Total interest-bearing debt – cash and cash equivalents
Net working capital Trade receivables + Inventories – Trade payables
Organic growth
Free cash flow Operating cash flow – net capex
Gross profit margin
Reported EBITDA margin
Normalized EBITDA margin
EBITDA margin before special items
EBIT margin
EBIT x 100/Revenue
Return on equity
Equity ratio
EBITDA before special items x 100/revenue
Profit/(loss) for the year x 100/Average equity
Total Equity/Total Assets x 100
Earnings before interest, tax, depreciation, amortization, investments in
associates after tax
Growth in revenue exclusive of the impact of foreign exchange rate changes,
acquisitions and divestments.
Gross profit/(loss) x 100/Revenue
Reported EBITDA x 100/Revenue
Normalized EBITDA x 100/Revenue
Interest income, interest expenses and other financials net
T&W Medical A/S 9
Primary activitie
s
T&W Medical A/S (TWM) is a private holding and investment company jointly owned by the Tøpholm and Westermann families.
The collaboration between the families began in 1956 with the founding of the hearing aid company Tøpholm & Westermann,
later known as Widex. TWM owns and invests in high technology companies within medtech and life science that improve the
quality of life for millions of people with health challenges such as hearing loss and epilepsy, including WS Audiology Group
(WSA), T&W Holding (TWH), UNEEG medical, Cebreo Medical and other group companies.
• WSA is a global leader in the hearing aid industry with more than 12,000 employees designing, manufacturing and selling
hearing aids and associated products globally through own sales companies and independent distributors. In 2024/25, the WSA
group reported flat organic revenue growth and revenue of DKK 19,241 million with EBITDA before special items increasing by
4% to DKK 3,402 million. Developments in revenue and earnings were affected by a volatile macroeconomic environment
impacting the consumer segment and outweighed by operational efficiencies, management of the customer base, a positive
business mix effect and strict cost control.
• TWH is the main investment company of the Tøpholm and Westermann families, focused on equity investments in listed and
unlisted companies, investments in private equity, properties, infrastructure projects and alternatives as well as other asset
classes and lending to related parties. TWH improved investment performance in 2024/25, and profit before tax increased to
DKK 249 million.
• UNEEG medical provides data-based solutions for epilepsy care and develops and commercialises implantable Class III devices
and EEG/neurological solutions that collect, monitor and analyse brain activity. UNEEG medical reported a loss after tax of DKK
224 million in 2024/25 impacted by provisions for clinical trial costs, among other things.
• Cebreo Medical develops EEG-based measurement technology and methods relevant to epilepsy and diabetes patients, among
others. In 2024/25, Cebreo Medical continued to support UNEEG medical with research and development work related to the
measuring of long-term EEG and its varied use.
T&W Medical A/S 10
Financial review
The TWM group’s total revenue declined by 2% to DKK 19,251 million in fiscal year 2024/25 based on a similar decline in WSA
due to a negative currency impact of 2%-points.
Gross profit for 2024/25 increased by 8% to DKK 12,092 million driven by operational efficiencies, management of the customer
base and a positive business mix effect in WSA. The positive development entailed a significant improvement in the gross margin
to 63%.
Total investments in research and development across the TWM group amounted to DKK 1,387 million in 2024/25 as WSA,
UNEEG medical and Cebreo Medical continued to invest in innovation, pursuing development projects and strengthening the
future product portfolio.
The group’s total EBITDA before special items came to DKK 3,234 million and an EBITDA margin of 16.8% before special items
in 2024/25 against DKK 3,039 million and an EBITDA margin of 15.4% in the comparison year. The improvement was driven by
higher gross profit and strict cost control in WSA. Special items amounted to DKK 172 million in 2024/25 mainly related to
redundancies and cost reductions made across the WSA group. Reported EBITDA increased to DKK 3,062 million from DKK
2,882 million.
TWM’s operating profit (EBIT) for 2024/25 came to DKK 1,907 million after depreciation and amortization of DKK 1,139 million
compared to an operating loss of DKK 7,593 million in 2023/24 after depreciation and amortization of DKK 10,481 million. The
comparison year was significantly impacted by an accounting change leading to accelerated amortization of certain intangible
assets in WSA.
The TWM group’s consolidated net financial items were lower in 2024/25 at DKK -1,847 million compared to DKK -3,349
million in 2023/24. The improvement was mainly attributable to a decline in interest expenses to DKK 2,428 million from DKK
3,670 million after an overall reduction in interest-bearing debt. Details on net financial items are specified in note 4.4.
The profit before tax increased to DKK 60 million in 2024/25 against a negative result of DKK 10,942 million in 2023/24
impacted by the aforementioned accelerated amortization. Tax for the fiscal year 2024/25 amounted to an expense of DKK 407
million resulting in a net loss of DKK 347 million.
The parent company’s net result came to DKK -536 million. Financial items developed as expected.
The TWM group’s total results were in line with the expectations set out in the annual report for 2023/24 based on solid
earnings performance in WSA and investment results in TWH compensating for a larger combined loss before tax in UNEEG
medical and Cebreo Medical.
T&W Medical A/S 11
Restated^
DKK million 2024/25 2023/24
Reported EBITDA 3.062 2.882
Special items 172 157
EBITDA before special items 3.234 3.039
Outlook
For 2025/26, the TWM group expects 0-4% organic revenue growth based on WSA’s projected performance supported by the
company’s competitive product portfolio and upcoming launches. The range reflects the uncertain macroeconomic environment.
The TWM group expects an increase in the EBITDA margin before special items by around 1%-point supported by WSA’s cost
reductions in 2024/25, efficiency gains and growth.
Risk management
The ownership of WSA constitutes the primary activity in TWM, and the risk management framework and efforts of WSA are
therefore considered material and presented below, supplemented by comments about topics deemed relevant to TWM.
Risk management is a key part of effective management and internal control, and internal control systems have been
implemented to provide a framework for all processes and activities designed to give reasonable assurance regarding the
achievement of business objectives. Such systems are designed to manage, rather than eliminate, the risk of failure. Assurance
activities monitor the efficiency and effectiveness of policies and operations and the status of compliance with statutory
obligations. These can cover the effectiveness of internal controls over a broad range of areas such as strategic, operations,
financial and compliance.
Effects on special items
Special items are non-recurring expenses and income which are not incurred in the normal course of business. They may include
restructuring costs, impairment of intangible assets and gains or losses from disposal of business or discontinued operations. The
total special items in 2024/25 amounted to DKK 172 million compared to DKK 157 million in 2023/24, driven by costs of
redundancies related to the cost reductions made accross the WSA A/S Group.
T&W Medical A/S 12
Geopolitical instabilities and risk
The global nature of WSA’s business exposes the company to various geopolitical risks that may affect its operations. Political
instability, such as changes in government and related sanctions, could create risks, such as those associated with sudden
regulatory changes, that could affect operations. Economic and/or trade sanctions against certain countries may limit market
access and disrupt established business relationships. WSA’s reliance on international suppliers for components presents
another, more inherent risk, as disruptions due to political conflicts, natural disasters or pandemics could adversely affect the
supply chain, delay product development and new product launches, challenge the company’s access to critical resources and
limit market access. A disruption in the supply of hearing instrument components could also affect product availability,
ultimately impacting end user access to essential hearing solutions, representing a lost business opportunity. This could also
jeopardize WSA's reputation. In short, these issues could adversely affect sales, profits and market position. Changes in
healthcare policies, insurance coverage and reimbursement rates in certain countries could affect the affordability and
accessibility of hearing care, resulting in a risk of reduced demand for hearing aids.
WSA has implemented continuous risk monitoring and scenario planning of the Key Risk Indicators (KRIs). The company also
continues to build on its strong strategic global and local relationships. WSA proactively plans and manages the supply chain in
light of these risks to ensure seamless product availability. In addition, the company reduces overall risk by having interoperable
global manufacturing sites and by maintaining safety stock levels to mitigate any short-term supply risks.
Cybersecurity & IT security risks
The cyber and IT security risk landscape is complex and multifaceted, and compliance with varying cybersecurity regulations in
different countries adds to operational complexity. Ransomware attacks can halt WSA’s production lines, disrupt supply chains
and disrupt day-to-day operations. WSA risks significant costs associated with system recovery and potential fines from data
protection authorities as the company handles sensitive personal data, including medical records such as hearing profiles.
Downtime in business operations will lead to loss of revenue and customer dissatisfaction. Breaches can therefore result in
significant financial and reputational damage. WSA's proprietary technology and product designs are valuable targets for
industrial espionage. In addition, WSA is the target of employee phishing campaigns that can lead to credential theft and
unauthorised access to critical systems, as well as executive impersonation, with spear-phishing attacks targeting executives that
can result in significant financial loss and loss of sensitive information.
WSA continuously improves its cybersecurity resilience through employee training, stress testing, and the implementation of
technical and strict access control mechanisms to limit data and system access based on job roles. The company continually
improves and tests procedures related to enhanced recovery capabilities and contingency planning, including robust incident
response plans to quickly identify, contain and mitigate cyber incidents, including frameworks to ensure backup systems and
data recovery processes are in place to quickly restore normal operations following an attack.
T&W Medical A/S 13
Financial market risk
In the volatile macroeconomic environment in which WSA operates, the company is exposed to various financial market risks.
WSA is exposed to interest rate fluctuations as its loan portfolio is based on floating interest rates. The effects of high inflation
and currency fluctuations resulting from its international operations could also affect WSA’s financial results. The company has
issued long-term senior secured loans. In addition to the interest rate risk discussed above, WSA is exposed to refinancing risk
as these loans mature. Fluctuations in interest rates and foreign exchange rates can have a significant impact on earnings, cash
flow and liquidity if left unhedged, which could ultimately result in insolvency risk due to an inability to refinance loans.
WSA continually monitors these risks to mitigate the impact of such financial risks. Effective treasury policies have been
implemented to assess, monitor and mitigate financial market risks. A significant portion of the interest rate risk is hedged by
swapping floating rates into fixed rates. WSA also hedges a significant portion of its rolling 12-month net foreign currency
exposure.
Product innovation risk
The hearing aid market is highly competitive with few, but significant, competitors. Competitors may introduce similar or
superior products, reducing WSA’s competitive advantage. In an increasingly competitive product and feature landscape,
following market trends becomes more important. Misjudging market needs and customer and consumer preferences could
result in the risk of developing products that do not meet customer expectations or market trends. The rapid pace of
technological advancement in audiology, including digital signal processing, wireless connectivity and battery life, may render
current R&D projects obsolete before they are launched, so WSA must continually innovate to stay ahead of the competition and
secure the company’s global position. The development of cutting-edge technologies requires significant investments in research
and development (R&D) and can have long lead times. As a result, WSA risks missing market opportunities due to R&D failures
or delays. Protection of intellectual property is critical to maintaining a competitive edge. However, IP disputes or infringements
can pose significant risks to WSA.
WSA continuously monitors emerging technologies, industry trends and competitive activities, and conducts market research in
close collaboration between R&D and Sales & Marketing. WSA collaborates and partners with academic institutions, technology
leaders and start-ups, and tests product concepts with customers and consumers. Finally, WSA protects its intellectual property
through patents and trademarks.
T&W Medical A/S 14
Compliance & regulatory risks
WSA’s products are subject to stringent global regulatory and approval processes. Regulatory standards and requirements for
medical devices can vary widely by region and change over time, requiring compliance with multiple regulatory frameworks that
can be costly and complex to maintain. In addition to fines for non-compliance and exposure to patent litigation in multiple
jurisdictions, key risks include the commercial risk of loss of customers, potential breach of existing contracts and reputational
damage. As part of the company’s global business, WSA interacts with a wide range of customers, such as government officials
(e.g., public healthcare professionals). Such interactions are strictly regulated by laws such as the U.S. Foreign Corrupt Practices
Act (FCPA), the UK Bribery Act and similar laws in other countries to prevent bribery and corruption in international business.
Stringent data privacy regulations, such as GDPR in Europe and HIPAA in the U.S., require robust data protection measures.
Ensuring the protection of personal data, obtaining appropriate consent, and handling data breaches appropriately are essential
to avoid significant fines and reputational damage. The hearing aid industry is subject to stringent regulatory requirements to
ensure the safety and efficacy of devices. In the United States, the Food and Drug Administration (FDA) regulates hearing aids
under the Federal Food, Drug, and Cosmetic Act, this includes both prescription hearing aids and over-the-counter (OTC)
hearing aids. In the European Union, hearing aids must comply with the Medical Device Regulation (MDR). The MDR
standardises regulations across EU member states, ensuring that all medical devices, including hearing aids, meet high safety
and performance standards. These regulations are crucial for maintaining consumer trust and ensuring that hearing aids provide
the intended benefits without compromising user safety.
WSA has developed robust internal compliance programs that include regular audits, employee training and a clear code of
conduct, as well as global, regional and local policies. WSA has also implemented a robust legal and regulatory monitoring
process for changes in relevant laws and regulations to ensure timely updates to all relevant processes and procedures. In
addition, employees receive regular training on legal issues and risk management, and WSA regularly monitors and assesses
potential legal risks to identify early signs of potential disputes. The company remains committed to adhering to these
regulations and continuously improving its products to meet and exceed these standards.
Tax risk
TWM group companies invest and conduct business globally and are therefore subject to complex tax regimes with different tax
rules and rates. This jurisdictional complexity entails risks of TWM group companies being subject to double taxation and loss of
tax deductibility of costs incurred.
To avoid double taxation and ensure sound compliance with legislative requirements, TWM group companies cooperate with tax
authorities to establish clear and unambiguous distribution of income between tax regimes. Significant resources are spent on
ensuring compliance, and the efforts to ensure transparency and clarity regarding tax payments include obtaining advance
rulings from and entering into Advance Pricing Arrangements with tax authorities as well as seeking expert advice from
specialised tax consultants.
T&W Medical A/S 15
T&W Medical A/S 16
T&W Medical A/S 17
T&W Medical A/S 18
T&W Medical A/S 19
T&W Medical A/S 20
Consolidated statement of profit or loss
For the financial year ended 30 September 2025
DKKm
Notes
Revenue
2.1
Cost of goods sold
Gross profit
Research and development costs
3.1
Selling and general admin expenses
Other operating income & costs
Share of profit/(loss) in associates
Operating profit/(loss)
Interest income 4.4
Interest expenses 4.4
Other financials, net 4.4
Financing, net
Profit/(loss) before tax
Tax on profit/(loss) 2.3
Group share of profit/(loss)
Shareholders of T&W Medical A/S
Minority interests' share of profit/(loss)
Group share of profit/(loss)
Consolidated statement of comprehensive income
Profit/(loss) for the year
Items that will not be reclassified to the income statement:
Actuarial gains/losses
Items that may be reclassified subsequently to profit or loss:
Hedging reserve reclassified to profit or loss
Change in fair value gains of cash flow hedge
Foreign exchange adjustment
Other comprehensive income for the year, net of tax
Shareholders of T&W Medical A/S
Non-controllig interests share of result (147 ) (188 )
Group share of other comprehensive income
Total comprehensive income for the year
(10.942 )
(4.771 )
(4.357 )
(9.128 )
(3.670 )
(132 )
(3.349 )
Tax on items that will not subsequently be reclassified to the income
statement
Tax on items that have been or may subsequently be reclassified to the
income statement
(3 )
(60 )
Restated
2023/242024/25
(536 )
(347 )
(2.428 )
(9.128 )
(407 )
(347 )
(6 )
(7.593 )
(7.159 )
(1.387 )
(8.765 )
(49 )
(8.519 )
(17.332 )
(1.436 )
(245 )
(365 )
(239 )
(245 )
(365 )
(9.493 )
(98 ) (177 )
(1.847 )
(592 )
(347 ) (9.128 )
(3 )
(486 )
T&W Medical A/S 21
Consolidated statement of financial position
As at 30 September 2025
DKKm Notes
Assets
Goodwill
3.1
Other intangible assets 3.1
Property, plant and equipment 3.2
Right-of-use assets 3.4
Investments in associates 5.6
Deferred tax assets 2.3
Customer loans 3.6
Other non-current financial assets 3.5
Other non-current assets 3.7
Total non-current assets
Inventories 3.8
Trade receivables 3.9
Current income tax receivables
Customer loans 3.6
Other current financial assets 3.5
Prepayments
Other current assets
3.7
Cash and cash equivalents
Total current assets
Total assets 42.042
Restated
2023/24
2024/25
Restated
1 Oct 2023
T&W Medical A/S 22
Consolidated statement of financial position
As at 30 September 2025
DKKm Notes
Equity and liabilities
Share capital 4.1
Other reserves
Retained earnings
Non-controlling interes
t
Total equity
Long-term debts
4.2, 4.3
Lease liabilities 3.4
Pension obligations 5.3
Provisions 3.11
Deferred tax liabilities 2.3
Other liabilities 3.10
Other non-current financial liabilities 4.2
Total non-current liabilities
Short-term debts 4.2, 4.3
Lease liabilities 3.4
Trade payables
Debt to related parties
Current income tax liabilities
Provisions 3.11
Other current liabilities 3.10
Other current financial liabilities 4.2
Total current liabilities
Total liabilities
Total equity and liabilities
Total equity attributable to the
shareholders of T&W Medical A/S
Restated
1 Oct 20232024/25
Restated
2023/24
T&W Medical A/S
23
Consolidated statement of changes in equity
For the financial year ended 30 September 2025
Foreign
exchange
Hedging
DKKm Share capital
adjustments
reserve
At 30 September 2024 (restated) 564
(3 )
Profit/(loss) for the year -
Actuarial gains -
Adjustment of cash flow hedges -
(10 )
Foreign exchange adjustments -
(96 )
Tax relating to other comprehensive income -
Capital contributions -
Dividends -
Other transactions with non-controlling interest -
Other transactions -
At 30 September 2025 564
(13 )
Equity of
shareholders
Retained in T&W Medical
Non-controlling
Total
DKKm earnings A/S
interests
equity
At 30 September 2024 (restated) 644 1.304
Profit/(loss) for the year (536 ) (536 )
(347 )
Actuarial gains 7 7
Adjustment of cash flow hedges - (10 )
(13 )
(23 )
Foreign exchange adjustments - (96 )
(143 )
(239 )
Tax relating to other comprehensive income 1 1
Capital contributions 62 62
Dividends - -
(655 )
(655 )
Other transactions with non-controlling interest - -
(25 )
(25 )
Other transactions 7 7
At 30 September 2025 185 739
T&W Medical A/S 24
Consolidated statement of changes in equity (continued)
For the financial year ended 30 September 2025
DKKm
Share capital
Foreign
exchange
adjustments
Hedging
reserve
At 1 October 2023, as previously stated
Impact of prior period error
-
-
At 1 October 2023, as restated
Profit/(loss) for the year
Actuarial gains
Adjustment of cash flow hedges
(242 )
Foreign exchange adjustments
Tax relating to other comprehensive income
Capital contributions
Dividends
Other transactions with non-controlling interest
Other transactions
At 30 September 2024 (restated)
(3 )
Retained
Equity of
shareholders
in T&W Medical
Non-controlling
Total
DKKm
earnings
A/S
interests
equity
At 1 October 2023, as previously stated
Impact of prior period error
(798 )
(798 )
(1.044 )
(1.842 )
At 1 October 2023, as restated
Profit/(loss) for the year
(4.771 )
(4.771 )
(4.357 )
(9.128 )
Actuarial gains
Adjustment of cash flow hedges
(242 )
(244 )
(486 )
Foreign exchange adjustments
(2 )
Tax relating to other comprehensive income
(2 )
Capital contributions
Dividends
(37 )
(37 )
Other transactions with non-controlling interest
(529 )
(529 )
Other transactions
(86 )
(67 )
At 30 September 2024 (restated)
T&W Medical A/S 25
Consolidated statement of cash flows
For the financial year ended 30 September 2025
DKKm
Notes
Profit/(loss) for the year
Depreciation, amortization and impairment
3.3
Income tax expenses, net
2.3
Interest expenses, net
Loss on sales of assets
Share of profit/loss associates
Income from equity investments, fixed
Other non-cash adjustments
5.6
Change in inventories
3.8
Change in trade receivables
3.9
Change in customer loans
3.6
Change in other current assets
3.5
Change in trade payables
Change in other assets/liabilities
Change in provisions 3.11
Financial income received
Income taxes paid, net
Cash flow from operating activities
Acquisition of companies/operations
Investments in intangible & tangible assets
Proceeds from disposal of intangible & tangible assets
Proceeds from disp of other assets
Cash flow used in investing activities
Cash flow from operating and investing activities
Increase in capital reserve and issuance of shares
Proceeds from non-controlling interests
Transcation costs issuance long-term debt 4.3
Proceeds from long-term & short term debt 4.3
Repayments of long-term & short-term debt 4.3
Other transactions with non-controlling interest
Financial expenses paid
Dividends paid to shareholders
Lease liabilities 4.3
Change in other short-term debt and other financing activities
Change in debt to related parties
Cash flow from/(used in) financing activities
Net cash flow
Cash & cash equivalents beginning of period
Adjustments foreign currency cash and cash equivalents
Cash and cash equivalents, end of period
(37 )
(67 )
(2.888 ) (2.115 )
(1.258 )
(85 )
(306 )
(103 )
(16 )
(962 )
(28 )
(213 ) (299 )
(75 )
(127 )
(284 )
(805 )
(37 )
(380 )
(31.642 )
(142 )
(9.128 )
Restated
2023/242024/25
(136 )
(347 )
(41 )
(194 )
Cash flow from operating activities before changes in
working capital
Cash flow from operating activities before financial
items and tax
(4.694 )
(887 )
(15 )
(13 )
(2.277 )
(366 )
(45 )
(2.256 )
(655 )
(345 )
Contents of the notes to the consolidated financial statements 26
Contents of the notes to the consolidated financial statements
Note estimates judgements
1 Basis for preparation Note prior period error
1.1 General accounting policies Note revenue 27
1.2 Significant accounting estimates and judgements
Note staff costs 29
1.3 Prior period error
Note tax 30
1.4 Adoption of new and amended IFRS
Note tax2 32
Note tax3
2 Results of the year Note Intangible assets
2.1 Revenue Note Operating assets and l 33
2.2 Staff costs
Note RoU-Lease lia 35
2.3 Income taxes
Note Other assets 36
Note Provisions
3 Operating assets and liabilities Note Capital structure
3.1 Other intangible assets Note Financial assets and li
a
44
3.2 Property, plant and equipment
Note Financials... 47
3,3 Depreciation, amortization and impairment
Note Financing 48
3.4 Right-of-use assets/Lease liabilities
Note fin. income-expenses 52
3.5 Other non-current and current financial assets
Note Other disclosures 54
3.6 Customer loans
Note share capital 54
3.7 Other assets
Note capital management 56
3.8 Inventories
Note contingent liabilities 57
3.9 Trade receivables
Note Business combination
s
58
3.10 Other liabilities
Note related party transact
i
60
3.11 Provisions
Note fee to auditors 61
Note int. in other entities
4 Capital structure and financing items Note subsequent events
4.1 Outstanding shares and capital structure Note first time adoption 63
4,2 Financial risks and financial instruments 64
4.3 Liabilities from financing activities 80
4.4 Financial income and expenses 81
5 Other disclosures
5.1 Remuneration of Key Management Personnel 82
5.2 Share-based payments 82
5.3 Pension obligations 85
5.4 Contingent assets and liabilities 90
5.5 Investments in associates 90
5.6 Non-cash adjustments 91
5.7 Fees to auditors appointed at the annual general meeting 91
5.8 Related parties 92
5.9 Companies in the T&W Medical A/S Group 93
5.10 Significant events after the balance sheet date 99
5.11 Approval of the consolidated financial statements 99
T&W Medical A/S 27
1 Basis for
p
re
p
aration
1.1 General accounting policies
The Consolidated Financial Statements for the Group and Parent Company financial statements for T&W Medical A/S have been
prepared in accordance with IFRS Accounting Standards as adopted by the EU and further requirements in the Danish Financial
Statements Act in accordance with reporting class c (large).
The Consolidated Financial Statements and Parent Company Financial Statements are presented in Danish Kroner (DKK) which is
the functional currency of T&W Medical A/S. All values are rounded to the nearest million (m), except where indicated otherwise.
The Group’s general accounting policies are described in Note 1.1 General accounting policies below. In addition to this, specific
accounting policies are described in each of the individual notes to the Consolidated Financial Statements and the Parent Company
Financial Statement. The accounting policies set out below and, in each note, have been used consistently in respect of the financial
year and the comparative figures.
A prior period error have been corrected in the Consolidated Financial Statements and Parent Company Financial Statement.
Reference is made to Note 1.3 "Prior period error" for a description of the error and the impact of the error correction on
Consolidated Statements of financial position, profit/(loss) and cash flows.
Some comparative figures in the notes to the Consolidated Financial Statements have been adjusted to enhance comparability.
These adjustments have no impact on the Group’s overall financial position.
Basis of consolidation
The consolidated financial statements incorporate the financial statements of T&W Medical A/S (the parent company) and
subsidiaries controlled by T&W Medical A/S, prepared in accordance with Group policies. The Group controls an entity when it is
exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through
its power over the entity. Subsidiaries are listed in Note 5.9.
The consolidated financial statements are prepared by combining items of a uniform nature and subsequently eliminating
intercompany transactions, internal shareholdings and balances and unrealized intercompany gains or losses. The financial
statements of subsidiaries are included in the consolidated financial statements from the date on which control commences and
until the date on which control ceases.
The accounting items of subsidiaries are recognized 100% in the consolidated financial statements. Non-controlling interest’s
share of subsidiaries’ profit or loss for the year and equity are included in the Group’s profit or loss and equity, but are disclosed
separately.
Acquisitions or disposals on non-controlling interests in subsidiaries, which does not result in obtaining or losing control of such
subsidiaries, are treated as equity transactions in the consolidated financial statements, and any difference between the
consideration and the carrying amount of the non-controlling interest is allocated to the Parent’s share of the equity.
When the Group loses control over a subsidiary, it derecognizes the assets and liabilities of the subsidiary, as well as any related
non-controlling interests and other components of equity. Any interest retained in the former subsidiary is measured at fair value
when control is lost. Any resulting gain or loss is recognized in profit or loss.
T&W Medical A/S 28
A functional currency is determined for each of the reporting entities in the Group. The functional currency is the primary currency
used for the reporting entity’s operations. Transactions denominated in other than the functional currency are translated into the
functional currency at the exchange rates at the transaction date. Foreign exchange differences between the exchange rate at the
transaction date and at the date of payment are recognized in other financial income/expenses, net.
T&W Medical A/S has significant activities in DKK and has raised significant debt in DKK. Therefore, the functional currency of
T&W Medical A/S is determined to be DKK. The Group’s presentation currency is DKK.
Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rate
at the reporting date.
Non-monetary assets and liabilities that are measured at fair value in a foreign currency are translated into the functional currency
at the exchange rate when the fair value was determined. Non-monetary items that are measured based on historical cost in a
foreign currency are translated at the exchange rate at the transaction date.
Foreign exchange differences are generally recognized in other financial income/expenses, net in the consolidated statement of
profit or loss. However, the following foreign exchange differences are recognized in other comprehensive income (“OCI”):
- Qualifying cash flow hedges to the extent that the hedges are effective
- Foreign exchange adjustment of balances with foreign entities that are considered part of the net investment in the entity
The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated
into DKK at the exchange rates at the reporting date. The statement of profit or loss and statement of cash flows of foreign
operations are translated into DKK at average exchange rates for the period, unless such average exchange rates are
unrepresentative of the exchange rates prevailing at the transaction dates, in which case the transaction date exchange rates are
applied.
Foreign exchange differences arising on translation of the opening balance of equity of foreign entities at the exchange rate at the
reporting date and on translation of the statement of profit or loss from the average exchange rate to the exchange rate at the
reporting date are recognized on other comprehensive income and attributed to a separate translation reserve in equity, except to
the extent that the translation difference is allocated to non-controlling interests.
On complete or partial disposal of a foreign entity such that control, significant influence or joint control is lost, or on repayment of
balances that constitute part of the net investment in the foreign entity, the share of the cumulative amount of the exchange
differences recognized in other comprehensive income relating to that foreign entity is recognized in the consolidated statementof
profit or loss as part of the gain or loss on disposal. When the Group disposes part of its interest in a subsidiary but retains control,
the relevant portion of the cumulative amount is reattributed to non-controlling interest. On partial disposal of an associate or
joint venture while retaining significant influence or joint control, the relevant portion of the cumulative amount is reclassified to
the consolidated statement of profit or loss.
T&W Medical A/S 29
1.2 Significant accounting estimates and judgements
2.3 Income taxes
2.3 Income taxes
Capitalization of development costs
3.1 Intangible assets
Determination of cash-generating units
3.3 Depreciation, amortization and impairment
Estimation of recoverable amount of goodwill
3.3 Depreciation, amortization and impairment
Estimation of warranty and return provisions 3.11 Provisions
Judgment on derecognition of financial liabilities 4.1 Outstanding shares and capital structure
Recognition of share-based remuneration 5.2 Share-based payments
Determination of possible outcomes of uncertain tax
positions
Description
Recognition of deferred tax asset for carried-forward tax
losses
Estimate
Estimate
Judgment
Estimate
NoteNature
Estimate
Estimate &
Judgment
Judgment
Judgment
In preparation of the consolidated financial statements, Management makes various accounting estimates and judgments that
form the basis of accounting estimates presentation, recognition and measurement of the Group’s assets, liabilities, income and
expenses. The key accounting estimates identified are those that have a significant risk of resulting in a material adjustment to
the carrying amounts of assets or liabilities within the next financial year.
The application of the Group’s accounting policies may require Management to make judgments that can have a significant
effect on the amounts recognized in the consolidated financial statements. Management judgment is required in particular
when assessing the substance of transactions that have a complicated structure or legal form.
The accounting estimates and judgments made are based on historical experience and other factors that Management assesses
to be reliable, but that, by nature, are associated with uncertainty and unpredictability and may therefore prove incomplete or
incorrect.
Specific accounting estimates and judgments are described in each of the following individual notes to the consolidated
financial statements.
Climate-related risks in the financial statements
Management has considered the impact of climate-related risks in the preparation of the consolidated financial statements. The
Group’s expected costs of meeting sustainability goals were considered in the financial forecasts which were used as basis of
valuation and useful life assessment of fixed assets, and valuation of provisions and contingent liabilities. These considerations
did not have a material impact on the accounting estimates and judgments.
T&W Medical A/S 30
1.3 Prior period error
As at 1 October 2023
DKKm
Consolidated statement of financial position
Other intangible assets
Deferred tax assets
Retained earnings (Equity)
Non-controlling interests 8.731 (1.044) 7.687
1 Oct 2023
(As restated)
13.025
313
5.025
(2.297)
455
(798)
10.728
768
4.227
1 Oct 2023
(as previously
reported) Adjustments
During the year, Management conducted a comprehensive analysis of WSA Group’s financial practices against hearing aids
industry peers. From the analysis, it was noted that some peers do not capitalize development costs. This triggered an internal
review of WSA Group’s treatment of development costs and resulted in the identification of a prior period error requiring
correction in accordance with IAS 8.
Previously, WSA Group capitalized development costs based on internally defined milestones across various product
development phases. WSA Group had applied judgment to adopt the criteria as required by IAS 38 within its work processes,
establishing specific milestones to guide capitalization decisions.
WSA Group operates in an industry characterized by rapidly evolving technology where product development is software-driven
and development teams are continuously adapting to the changing markets. The iterative nature of software development, where
each innovation is built incrementally on existing technological foundations, makes it difficult to distinguish between
incremental improvements and new developments. Management is of the view that it is difficult to identify separate intangible
assets meeting the capitalization criteria as required by IAS 38.
The pace of technological advancement also creates significant uncertainty throughout the development process as the
development team must anticipate market trends, respond to competitors’ innovations and adapt designs accordingly. This
dynamic environment means that initial product concepts rarely reach commercialization in their original form, and it is
increasingly difficult to demonstrate technical feasibility at any point in the development process.
Hence, Management determined that development activities did not sufficiently demonstrate technical feasibility as required by
IAS 38 until the projects are near completion.
Consequently, development costs previously capitalized have been retrospectively expensed in the periods incurred.
The table below summarizes the impact of the error correction on the Group’s consolidated statements of financial position,
profit or loss and cash flows:
T&W Medical A/S 31
1.3 Prior period error (continued)
As at 30 September 2024
DKKm
Consolidated statement of financial position
Other intangible assets
Deferred tax assets
Deferred tax liabilities
Retained earnings (Equity)
Non-controlling interests 6.613 (938)
Consolidated statement of profit or loss
Research and development costs, of which:
– Amortization costs
– Development costs expensed
Operating loss
Loss before tax
Income taxes
Loss for the year
Loss for the year
Depreciation, amortization and impairment
Income taxes
Cash flow from operating activities
Investing activities
Cash flow used in investing activities
643 (717) 1.360
5.675
82
758
45 (37)
400 358
30 Sept 2024
(as previously
reported)
(2.050) 1.300
30 Sept 2024
(As restated)
3.350
Adjustments
Investments in intangible assets and property, plant and
equipment
(1.682)
(1.566)
(9.314)
Consolidated statement of cash flows Operating
activities
-
-
(7.839)
(11.188)
1.874
234
(9.314)
11.487
(1.874)
2.784
(10.942)
(60) 1.814
(1.436)
1.007 -
(761) -
246
246 (7.593)
246
761 995
(805) 761
10.480
60 (1.814)
(761) 2.023
(1.007)
(9.128)
186 (9.128)
186
T&W Medical A/S 32
1.4
A
doption of new and amended IFRS
In the current year, the Group has applied the amendments to IFRS Accounting Standards and Interpretations issued by the
IASB and IFRSs endorsed by the European Union effective for annual periods beginning on or after 1 October 2024. The
adoption has not had any material impact on the disclosures or on the amounts reported in these financial statements.
Furthermore, Management does not anticipate any significant impact on future periods from the adoption of these amendments.
Management has assessed the impact of new or amended accounting standards and interpretations (IFRSs) issued by the IASB
that has not yet become effective. At the date of authorization of these financial statements, the Group has not applied these new
and revised IFRS Accounting Standards that have been issued but are not yet effective and Management does not expect that the
adoption of the standards will have a material impact on the financial statements of the Group in future periods, except for IFRS
18 Presentation and Disclosures in Financial Statements.
IFRS 18 Presentation and Disclosures in Financial Statements
IFRS 18 replaces IAS 1 Presentation of Financial Statements and introduces new requirements to:
• Present specified categories and defined subtotals in the statement of profit or loss
• Provide disclosures on management-defined performance measures (MPMs) in the notes to the financial statements
• Improve aggregation and disaggregation.
IFRS 18 is effective for annual reporting periods beginning on or after 1 January 2027, with earlier application permitted. IFRS
18 requires retrospective application with specific transition provisions. The Group is currently assessing the potential impactof
IFRS 18 on its financial statements and expects to adopt the new requirements as it becomes mandatory.
T&W Medical A/S 33
2 Results of the year
2.1 Revenue
DKKm
Revenue by geographic region:
EMEA
Americas
APAC
Total
DKKm
Customer prepayments
Deferred revenue
Volume discounts
Right of returns
Contract liabilities with customers
Significant changes in the contract liabilities balances during the year are as follows:
DKKm
Contract liabilities:
Opening balances as at 1 October
Foreign currency translation adjustments
Advances received during the year
Others
Total
2023/242024/25
2024/25 2023/24
179
3.177
19.674
90
246
82
6.553
9.520
701 850
701 850
(59) 30
105
850 901
(14)
276
Revenue recognised that was included in the
contract liability from prior year and current
year balance
(30)
(336)
6.626
9.871
3.178
19.251
268
172
313
201
(172)
2024/25 2023/24
Revenue is predominantly recognized at a point in time, and revenue recognized over time is not significant. Revenues are
attributed to countries on the basis of the customer's location. The Region “EMEA” consists of Europe, the Middle East and Africa.
The Region “Americas” consists of the United States, Canada and Latin-America. The Region “APAC” consists of Asia, Australia
and the Pacific region.
Consolidated revenue mainly derives from sale of goods and is broken down by the selling entity. No individual customer accounts
for 10% or more of the total revenue.
Contract liabilities
The Group has recognized the following liabilities related to contracts with customers:
T&W Medical A/S 34
2.1 Revenue (continued)
Accounting policies
Revenue from sale of products is recognized when the Group has transferred control of products sold to the buyer and it is proba
b
le
that the Group will collect the consideration to which it is entitled for transferring the products. Control of the products is
transferred at a point in time, typically on delivery.
Revenue is measured at the fair value of the consideration received or receivable net of discounts, VAT and other duties.
Contracts with customers sometimes include multiple promises that constitute separate performance obligations, and to which a
portion of the transaction price needs to be allocated. The total transaction price in the contract is allocated to separate
performance obligation based on the relative stand-alone selling prices of each such performance obligation. Each separate
performance obligation is recognized when control is transferred to the customer.
When products are sold with a right of return, a refund liability and a corresponding adjustment to revenue is recognized for those
products expected to be returned. In such cases, the expected returns are estimated based on an analysis of historical experience
adjusted for any known factors impacting expectations for future return rates. To the extent that the Group will be able to recover
the cost of returned products, when the customers exercise their right to return, a separate right to returned products asset and a
reduction in cost of sales is recognized.
Discounts, rebates and sales incentives to customers
The Group pays various discounts, rebates and sales incentives to customers including trade discounts and volume rebates.
Furthermore, customer discounts include the difference between the present value and the nominal amount of loans to customers
at below market interest rates, cf. Note 3.5 Customer loans.
Discounts, rebates and sales incentives to customers are deducted from revenue and are measured using either the expected value
method or the most likely amount method depending on which method better predicts the amount of consideration to which the
Group will be entitled net of discounts, rebates and sales incentives.
Estimates of the number of returns of products under customers right of return are based on the right of return policies and
practices, accumulated historical experience, sales trends and the timing of returns from the original transaction date when
applicable. Where new products are sold or products are sold to new markets, for which sufficient historical experience does not
exist, refund liability and revenue to be recognized are based on estimated demand and acceptance rate for well-established
products with similar market characteristics. If such similar product or market characteristics do not exist, recognition of revenue
is postponed until there is evidence of consumption of the products by the customer, or when the right of return has expired.
Discounts, rebates and sales incentives are estimated and accrued when the related revenue is recognized. To make such estimates
require use of judgment, as all conditions are not known at the time of the sale, e.g. the number of units sold to a given customer or
the expected utilization of loyalty programmes. Liabilities in respect of sales discounts, rebates and loyalty programmes are
adjusted, as the Group gain better information on the likelihood that they will be realized and the value at which they are expected
to be realized.
The accrual against revenue of discounts from issuance of customer loans at off-market terms (cf. Note 3.6 Customer loans) is
based on the customer's total committed purchases of products throughout the term of the customer loan, and is recognized as a
discount for each product sold.
T&W Medical A/S 35
2.1 Revenue (continued)
2.2 Staff costs
DKKm
Wages, salaries and remuneration
Statutory social welfare contributions
Share-based remuneration
Defined contribution plans
Defined benefit plans
Other employee-related benefits
Total
Included in:
Cost of goods sold
Research and development expenses
Selling and general admin expenses
Total
Number of full-time employees
2024/25 2023/24
6.001
45
45
697
5.764
142
37
643
150
7
7.013
216
9
7.013 6.743
6.743
915 925
1.003 928
4.890 5.095
For information regarding remuneration of the Board, Executive Management and Other Key Management Personnel, please refer
to Note 5.1 Remuneration of Key Management Personnel.
Accounting policies
Wages, salaries, social security contributions, annual leave and sick leave, bonuses and non-monetary benefits are recognized in
the year in which the associated services are rendered by employees of the Group. Where the Group provides long-term employee
benefits, the costs are accrued to match the rendering of the services by the employees concerned.
Extended warranties
The Group offers customers the option to separately purchase extended warranties for inventories sold. The extended warranty is a
distinct service to the customer. Under IFRS 15, the Group accounts for a service-type warranty as a separate performance
obligation to which the Group allocates a portion of the transaction price when the warranty is bundled together with the sale of
inventories. The portion of the transaction price allocated to the service-type warranty is initially recorded as a contract liability
and recognized as revenue on a straight-line basis over the period the warranty services are provided. Revenue is recognized when
the customer receives the warranty coverage for loss and damage as part of the purchase of the hearing aid.
The standard warranty period for hearing aids varies across territories, typically between 2 to 5 years. The extended warranty
covers periods beyond the standard warranty period or standard warranty terms. Payment terms vary significantly across
territories.
T&W Medical A/S 36
2.3 Income taxes
Income taxes consists of the following:
DKKm
Current tax for the year
Change in deferred tax for the year
Change in deferred tax as a result of changed income tax rates
Prior-year adjustments, current tax
Prior-year adjustments, deferred tax
Pillar II tax (67) -
Total
Tax for the year is composed of:
DKKm
Tax on profit for the year
Tax on other comprehensive income
Total
DKKm
Reconciliation of effective tax rate
Tax using the Company's domestic rate
Non-deductible expenses and other permanent items
Adjustments for interest deduction limitation (permanent)
Adjustments related to prior-year tax provisions
Impact of unrecognized tax assets, net
Impact of income tax rate changes on deferred tax
Effect of foreign subsidiary tax rates
Incentives for research and development activities
Other adjustments, net
Total
2024/25
2024/25
2
(405)
(13)
(44)
(223)
96
1.910
(407) 1.814
(19)
(354)
(22)
(355)
2.263
2024/25
Restated
2023/24
22
7
7
(407)
(45)
(97)
48
1.814
(407) 1.814
(58)
(301)
(291)
22
149
22
29
Restated
2023/24
Restated
2023/24
2.461
(311)
(236)
(45)
97
201
(33)
Income tax benefit/(expense) differs from the amounts computed by applying the Danish statutory income tax rate of 22%
(2023/24: 22%) as follows:
The effective tax rate of -678% is significantly impacted by financing-related items, particularly limitations on interest deductions.
Accordingly, the total tax expense for the year of DKK 407 million comprises an income tax expense of DKK 13 million attributable
to operating profit and an income tax limitation of DKK 223 million related to financing expenses, as well as impact of
unrecognized tax assets of DKK 291 million.
T&W Medical A/S 37
2.3 Income taxes (continued)
Deferred tax
Changes in the deferred tax balance during the year are as follows:
DKKm
Opening deferred tax, net
Changes in deferred tax
Impact of change in accounting estimate
Adjustment of deferred tax, prior years
Adjustment of deferred tax, joint taxation contribution 45 4
Impact of changes in corporate tax rates
Deferred tax relating to changes in equity, net
Closing deferred tax, net
Deferred tax assets
Deferred tax liabilities
Deferred tax, net
Deferred tax recognized in the consolidated
statement of financial position 2024/25
750 713
(37)
758
(45)
787
22
(15)
236
1.925
48
(45)
97
-
7
(22)
Restated
2023/24
2024/25
Restated
2023/24
(1.552) 713
750 713
T&W Medical A/S 38
2.3 Income taxes (continued)
Breakdown of the Group’s temporary differences and changes
DKKm
Other assets
Intangible assets
Property, plant and equipment
Right-of-use assets
Inventories
Receivables
Pension plans and similiar commitments
Provisions
Liabilities
Lease liabilities
Derivatives
Tax loss, interest and other credit carry-forward
Others
Total
DKKm
Other assets
Intangible assets
Property, plant and equipment
Right-of-use assets
Inventories
Receivables
Pension plans and similiar commitments
Provisions
Liabilities
Lease liabilities
Derivatives
Tax loss, interest and other credit carry-forward
Others
Total
- (264)
- (83)
- (7)
- 557
Tax effect of
temporary
differences at 30
September 2025
(7)
37 (7) 75
126 -
- (314)
- 209
- (8)
- (30)
- 114
- 105
- 351
Foreign
exchange
adjustments
Recognized
in loss for
the year
Tax effect of
temporary
differences at 1
October 2024
- 112
(7) 30
7 (30)
7
- (75) 201
(145)
(90)
(291)
186
(120)
61
321
1
50
-
Recognized
in other
comprehensive
income
(7) 20
- (6)
- 750
544
-
15 (134)
(7)
713
(7)
-
(13)
(30) 7
(7) 37
(7) 60
-
T&W Medical A/S 39
2.3 Income taxes (continued)
Breakdown of the Group’s temporary differences and changes
Restated
DKKm
Other assets
Intangible assets
Property, plant and equipment
Right-of-use assets
Inventories
Receivables
Pension plans and similiar commitments
Provisions
Liabilities
Lease liabilities
Tax loss, interest and other credit carry-forward
Others
Total
Restated
DKKm
Other assets
Intangible assets
Property, plant and equipment
Right-of-use assets
Inventories
Receivables
Pension plans and similiar commitments
Provisions
Liabilities
Lease liabilities
Tax loss, interest and other credit carry-forward
Others
Total
(7) 1
97 713
(7)
Foreign
exchange
adjustments
Recognized
in loss for
the year
Recognized
in other
comprehensive
income
Tax effect of
temporary
differences at 30
September 2024
- 201
- 321
- 544
2.060
- 186
104 (120)
- (30)
-61
-75
- (145)
- (90)
- (291)
(22) (7) 104
306 (7) 22
(37) - 7
75 (7)
(1.638) 9 2.245
(22) - 30
611 (7) (60)
(239) - 15
(112) - 22
(276) 7 (22)
179 - 7
134 - 67
(2.235) 30
Tax effect of
temporary
differences at 1
October 2023
T&W Medical A/S 40
2.3 Income taxes (continued)
DKKm
Deductible temporary differences
Tax loss carry-forward
Interest carry-forward
Total
60
3.476
1.007
4.543
Restated
2023/242024/25
154
1.608
931
2.693
The recognized tax loss carry-forward (gross amount) of DKK 2,532 million (2023/24: DKK 1,753 million) includes tax
losses of DKK 194 million (2023/24: DKK 22 million) that can be carried forward for 1 to 10 years. The remaining tax loss
have no expiry date.
The recognized interest carry-forward (gross-amount) of DKK 7 million (2023/24: DKK 611 million) can be carried
forward indefinitely.
Unrecognized deferred tax assets
Unrecognized deferred tax assets are based on Management’s expectation about future taxable profits during the periods in which
those temporary differences and tax loss carry forwards become deductible. Management considers the expected reversal of
deferred tax liabilities and projected future taxable income in making this assessment. Based upon the level of historical taxable
income and projections for future taxable income over the periods in which the deferred tax assets are deductible, it is not pro
b
able
that the Group will realize the benefits of these deductible differences.
Deferred tax assets (gross) have not been recognized in respect of the following items:
Due to the interest limitation rules in the Danish Corporate tax act para 11 B, the Danish Joint Taxation Group has a net loss carry
forward balance on debt and financial contracts of approx. DKK 94 million (2023/24: Nil). The carry forward balance is limited to
three years in para 10 B, section 10. Hence, and because the Danish Joint Taxation Group does not expect to be able to offset the
carry forward net losses in net gains on debt and financial contracts in that period, the balance has been excluded from the table.
Unrecognized deferred tax liabilities
The Group has not recognized deferred tax liabilities for income taxes or foreign withholding taxes on the cumulative
earnings of subsidiaries of DKK 37 million (2023/24: DKK 45 million) because the earnings are intended to be permanently
reinvested in the subsidiaries.
Due to the interest limitation rules in the Danish Corporate tax act para 11 B, the Danish Joint Taxation Group has a net loss carry
forward balance on receivables of approx. DKK 239 million (2023/24: DKK 195 million). A carry forward balance for net loss on
receivables, that have not been subject to limitation, must be maintained and offset against future net gain on receivables and net
interest income. The balance is carried forward without any time limitation. It is not expected that the Danish Joint Taxation
Group will have sufficient gains on receivables within the foreseeable future, and hence the balance has not been recognized.
During the year, financing activities in Luxembourg in the WSA A/S Group ceased, and the remaining entities became pure
investment holding entities scheduled for liquidation. As the balances have no future economic value, tax loss carry-forward of
DKK 1,701 million have been excluded from the table for 2024/25.
T&W Medical A/S 41
2.3 Income taxes (continued)
OECD Pillar II
Pillar II regulation has been enacted in Denmark and is applicable to the Group for the current financial year.
Pursuant to the Pillar II regulation, a multinational group is liable to pay a top-up tax for the difference between its GloBE effective
tax rate per jurisdiction and the 15% minimum rate. However, the regulation provides for a Transitional Safe Harbor (“TSH”). The
TSH applies for the first three financial years (2024/25 to 2026/27). It relies on a number of simplified calculations that are
mainly based on data extracted from the Group’s Country-by-Country Reporting prepared under BEPS Action 13. When the TSH
test is met for a jurisdiction, no top-up tax arises.
Following analysis of current year financial data, the Group expects to benefit from the TSH in all jurisdictions where the Group
operates except for Singapore and Switzerland.
• Singapore, due to the Development and Expansion Incentive (DEI)
• Switzerland, due to the utilisation of tax losses for which no deferred tax asset has been recognized.
Based on this assessment, the Group estimates its Pillar II top-up tax for the current financial year to be approximately DKK 67
million. It is important to note that the final top-up tax payment for 2024/25 may vary from the amount recognized in the income
statement, as guidance and implementation rules continue to evolve.
The Group remains actively engaged in monitoring legislative developments related to Pillar II across all jurisdictions in whichit
operates, to evaluate and manage potential future financial impacts.
In accordance with the IASB’s amendment to IAS 12 – Income Taxes, the Group has applied the mandatory temporary exception
from recognizing or disclosing deferred taxes related to Pillar II. As a result, there is no impact on the consolidated financial
statements.
T&W Medical A/S 42
2.3 Income taxes (continued)
Accounting policies
Income tax comprises current tax and changes in deferred tax for the year, including changes as a result of changes in tax rates.
The tax expense for the year is recognized in profit or loss except to the extent that it relates to items recognized directly in other
comprehensive income or directly in equity.
T&W Medical A/S is jointly taxed with all Danish subsidiaries. The current Danish corporation tax is allocated between the jointly
taxed companies in proportion to their taxable income.
Current tax liabilities or assets are measured using the tax rates and tax laws that have been enacted or substantively enacted in
each jurisdiction by the end of the reporting period.
Deferred tax is measured using the balance sheet liability method and comprises all temporary differences between the carrying
amount and tax base of assets and liabilities. Deferred tax is not recognized for taxable or deductible temporary differences:
• Arising from the initial recognition of goodwill
• On the initial recognition of assets and liabilities in a transaction that is not a business combination, and at the time of the
transaction, affects neither accounting profit nor taxable profit
• Associated with investments in subsidiaries, branches, associates and joint arrangements to the extent that the Group is able to
control the timing of the reversal of the temporary differences and it is probable that the temporary differences will not reverse in
the foreseeable future.
If amortization of goodwill is deductible for tax purposes, a deferred tax liability is recognized on temporary differences arising
after initial recognition of goodwill.
Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax
rates enacted or substantially enacted at the reporting date.
Deferred tax assets and tax liabilities are offset if the entity has a legally enforceable right to offset current tax liabilities and tax
assets or intends either to settle current tax liabilities and tax assets or to realise the assets and settle the liabilities simultaneously.
T&W Medical A/S 43
2.3 Income taxes (continued)
Significant accounting estimates and judgments
The Group operates in a large number of tax jurisdictions where tax legislation can be highly complex and subject to
interpretation. Significant judgment and estimates are required in determining the worldwide accrual for income taxes, deferred
tax assets and liabilities and uncertain tax positions.
Deferred tax assets are recognized to the extent that it is probable that future taxable income will be available against which the
deductible temporary differences, unused tax losses and unused tax credits can be utilised. This judgment is made annually and
based on budgets and business plans, including planned commercial initiatives, for the coming five years unless a longer period in
certain situations (e.g. for start-up businesses) is warranted. Currently, a longer period than five years has not been applied in any
of the jurisdictions in which the Group operates.
In the course of conducting business globally, tax and transfer pricing disputes with tax authorities may occur. Management
judgment is applied to assess the possible outcome of such disputes. The “most probable outcome” method is used when
determining whether to recognize any amounts related to such uncertain tax position. Management also makes an estimation of
the potential financial impact of uncertain tax positions, based on all relevant facts, historical experience, and external advice
where appropriate. Estimates are reviewed periodically and adjusted as necessary when new information becomes available. If it is
probable that a tax adjustment will be required, the amount of such adjustment is measured at the most likely amount or the
expected value, whichever method better predict the resolution of the uncertain tax position.
T&W Medical 44
3 Operating assets and liabilities
3.1 Other intangible assets
DKKm
Cost at 1 October 2024 (restated) 1.437
Foreign exchange adjustments (7)
Additions from business combinations -
Additions -
Disposals (209)
Transfers (7)
Cost at 30 September 2025 1.214
(886)
Foreign exchange adjustments -
Amortization (67)
Disposals 209
Transfers 7
(737)
Carrying amount at 30 September 202
5
477
DKKm
Total
Cost at 1 October 2024 (restated)
46.843
Foreign exchange adjustments (229)
Additions from business combinations 7
Additions 386
Disposals (404)
Transfers -
Cost at 30 September 2025 46.603
(18.733)
Foreign exchange adjustments 127
Amortization (262)
Disposals 377
Transfers -
(18.491)
Carrying amount at 30 September 202
5
28.112
- (8) -
451 1.283 6.279
Core patented
technology and
intellectual
property Software
-
Accumulated amortization and
impairment at 1 October 2024
(restated)
Accumulated amortization and
impairment at 30 September 2025
Accumulated amortization and
impairment at 1 October 2024
(restated)
Accumulated amortization and
impairment at 30 September 2025
Trademarks,
patents, and
similar rights
- (45) (22)
- - -
- 37 -
- (187) -
(6.279) (993) -
10.393
164 (358)
(39) -
- (86)
- 7
(105) (10.448)
179 22
265
Goodwill
26.818
(69)
-
-
(94)
171
19 -
-
- 90
(7)
-
26.742
-
(7)
Customer
relationships
125 10.450
Development
projects
(22)
- -
(10.380)
13
- 97 289
Intangible assets
under
development
1.350 360
- 357 360
- 149 -
- 15
-
-
26.735
(7)
(6.279) (1.007) -
- (149) -
-
6.279
T&W Medical 45
3.1 Other intangible assets (continued)
Cost at 1 October 2023 (restated) 1.445
Foreign exchange adjustments (15)
Additions from business combinations -
Additions 7
Disposals -
Transfers -
Cost at 30 September 2024 1.437
(833)
Foreign exchange adjustments 7
Amortization (67)
Disposals -
Transfers 7
(886)
Carrying amount at 30 September 202
4
551
DKKm
Total
Cost at 1 October 2023 (restated) 46.814
Foreign exchange adjustments (240)
Additions from business combinations 29
Additions 366
Disposals (126)
Transfers -
Cost at 30 September 2024 46.843
(9.116)
Foreign exchange adjustments 89
Amortization (9.772)
Disposals 66
Transfers -
(18.733)
Carrying amount at 30 September 202
4
28.110
Accumulated amortization and
impairment at 1 October 2023
(restated)
Accumulated amortization and
impairment at 30 September 2024
---
(6.279) (1.007) -
- 104 (104)
6.279 1.283 451
(3.550) (887) -
---
-75
- 276 451
-7 -
(2.737) (164) -
8 37 -
279
(7) (37) -
Core patented
technology and
intellectual
property
Intangible assets
under
developmentSoftware
6.286 1.148 276
- (7) -
10.559
1 4 -
22 - 7
Accumulated amortization and
impairment at 30 September 2024
Accumulated amortization and
impairment at 1 October 2023
(restated)
- (2) (6.802)
-- 75
-- (7)
-- 22
(7) (103) (3.736)
Trademarks,
patents, and
similar rightsGoodwill
Development
projects
Customer
relationships
26.811 20 2
(7) (105) (10.448)
--
-
(60) - (22)
26.818 125 10.450
(124) - (94)
26.979 121
T&W Medical A/S 46
3.1 Other intangible assets (continued)
Development costs
DKKm
Research and development expenses incurred
Depreciation of operating assets used for development purposes
Total expensed development costs
Significant judgements and accounting estimates
Restated
2023/242024/25
1.344
43
1.387
1.413
23
1.436
Accounting policies
Goodwill
On initial recognition, goodwill is recognized and measured at cost. Subsequently, goodwill is measured at cost less accumulated
impairment losses.
Goodwill is not amortized but is tested for impairment at least annually. For the purpose of impairment testing, goodwill is allocated
to each of the Group’s cash generating units (CGUs) expected to benefit from synergies of the business combination, and that
represent the lowest level at which the goodwill is monitored for internal management purposes. The lowest level at which the
goodwill is tested for impairment is at the level of operating segments before aggregation according to IFRS 8.
CGUs to which goodwill has been allocated are tested for impairment annually, or more frequently when there is an indication that
the CGU may be impaired. If the recoverable amount of the CGU is less than its carrying amount, the impairment loss is allocated
first to reduce the carrying amount of goodwill allocated to the CGU and then to the other assets of the CGU on a pro rata basis
according to the carrying amount. An impairment loss recognized for goodwill is not reversed in a subsequent period.
Other intangible assets
Other intangible assets include development projects, acquired intellectual property, trademarks, patents and licenses, acquired
customer contracts and relationships, and software.
Other intangible assets are measured at cost less accumulated amortization and impairment losses. Amortization is provided on a
straight-line basis over the expected useful lives of the assets to their estimate residual value if any.
Software under development refers to internal IT systems which are under development. Software under development is measured
at cost, which includes direct staff costs, external consultant fees and other costs directly attributable to the development of the IT
systems. Software under development is not amortized as they are not available for use.
Development costs
Product development costs are generally expensed in the periods incurred. In general, Management views it challenging to
distinguish between incremental improvements and new developments as the Group's software-driven product development follows
an inherently iterative process. Further, the adaptive nature of the product development necessitated by the rapidly evolving
technological landscape makes it for some group companies difficult to sufficiently demonstrate the technological feasibility criteria
required under IAS 38.
T&W Medical A/S 47
3.2 Property, plant and equipment
Cost at 1 October 2024
Foreign exchange adjustments
Additions
Disposals
Transfers
Cost at 30 September 2025
Foreign exchange adjustments
Depreciation
Impairment
Disposals
Transfers
Carrying amount at 30 September 2025
Cost at 1 October 2023
Foreign exchange adjustments
Additions
Disposals
Transfers
Cost at 30 September 2024
Foreign exchange adjustments
Depreciation
Disposals
Carrying amount at 30 September 2024 2.142
15 (45) -
1.142 1.297 127 4.390
30
- 7 - 7
(97) (168) - (371)
(755) (766) 7 (2.003)
1.274
(112)
-
1.824
(489)
-
297 437 134
(15) (75) -
(98)
(7)
(603)
(550)
-
30
Land and
buildings
and
leasehold
improve-
ment
(106)
45
Accumulated depreciation at
1 October 2024
1.824
(44)
90
(45)
22
1.847
22
(202)
1 (18) (1) (41)
Accumulated depreciation at
30 September 2024 (845)
(860) 7 (2.248)
7 67 - 119
(23)
104
Accumulated depreciation at
1 October 2023
(550)
Accumulated depreciation at
30 September 2025 (423) (661) - (1.687)
1.244
1.855
75 172 82 433
485 321 - 836
287 442 61 2.034
1.051 1.203 91 4.200
96
(85) (181) - (364)
- - (7) (7)
(2.248)
1.142 1.297 127 4.390
45 180 67 382
(507) (336) (15) (903)
(22) (75) (7) (148)
Plant and
machinery
52 37 (111) -
710 1.103 61 3.721
7 - -
22 52 -
Other plant,
fixtures and
operating
equipment
Assets under
construction Total
(845)
(860) 7
-
As at 30 September 2025, the Group has contractual commitments for purchases of property, plant and equipment amounting to
DKK 15 million (2023/24: DKK 75 million).
T&W Medical A/S 48
3.2 Property, plant and equipment (continued)
Accounting policies
3.3 Depreciation, amortization and impairmen
t
DKKm
Cost of goods sold
Research and development expenses
Selling, general and administrative expenses
Total
Cost of goods sold
Research and development expenes
Selling, general and administrative expenses
Total
Accounting policies
Factory and office buildings
Technical machinery & equipment
Other fixtures and fittings, tools and equipment, furniture etc
Land is not depreciated
278 9.773
- 820
24 7
254 8.946
131
8
663
802
179
17
510
706
Restated
2023/242024/25
Depreciation and impairment of property, plant, equipment, and right-of-use assets
recognized in the consolidated statement of profit or loss as follows:
Amortization and impairment of intangible assets recognized in the
consolidated statement of profit or loss as follows:
20 - 50 years
4 - 10 years
3 - 5 years
Property, plant and equipment are measured at cost less accumulated depreciation and impairment losses. Cost comprises the
purchase price and costs directly attributable to bringing the asset to its location and condition necessary for its intended use. In
addition, the initial estimate of the costs related to dismantling and removing the asset and restoring the site on which the asset is
located are added to the cost, if relevant. Where individual components of an item of property, plant and equipment, that is material,
have different useful lives, they are accounted for as separate items, and depreciated separately.
In 2023/24, the Group reassessed the useful lives of certain intangible assets. The reduction in the estimated useful lives of the
intangible assets resulted in increase in amortization expense of DKK 9.1 billion in 2023/24.
Depreciation
Depreciation is recognized on a straight-line basis over the expected useful lives of property, plant and equipment, taking into
account the expected residual value after the end of the useful life.
The estimated useful lives are as follows:
T&W Medical A/S 49
3.3 Depreciation, amortization and impairment (continued)
Completed development projects
Patents and rights
Customer relationships acquired
Customer contracts
Trademarks
Acquired intellectual property
Software
3 - 5 years
3 - 10 years
3 - 5 years
5 - 20 years
20 years
5 years
3 - 10 years
Estimated useful lives and residual values are reassessed annually. If the residual value exceeds the carrying amount, depreciation is
discontinued. When changing the expected useful lives or the expected residual value, the effect on the depreciation is recognized
prospectively as a change in accounting estimates.
Depreciation is recognized in the consolidated statement of profit or loss as cost of goods sold, research and development expenses
and selling and general administrative expenses.
Amortization
Amortization is recognized on a straight-line basis over the expected useful lives of intangible assets. For patents, licenses, acquired
intellectual property and intangible assets arising from contractual or other legal rights, the useful life is the shorter of the period of
the contractual or legal rights and the economic useful life.
For acquired customer relationships, the useful life is based on normal attrition/churn rates within the hearing aid business in the
market in question. The useful life for customer contracts is based on the contractual term including expected extensions of the
term.
The estimated useful lives are as follows:
The estimated useful life and amortization method are reviewed at the end of each reporting period, with the effect of any changes in
estimate being accounted for on a prospective basis.
Amortization is recognized in the consolidated statement of profit or loss as cost of goods sold, research and development expenses
and selling and general administrative expenses.
T&W Medical A/S 50
3.3 Depreciation, amortization and impairment (continued)
Significant accounting estimates and judgments
Identification of cash generating units
DKKm
WSA A/S Group
Other investments
Total 26.735 26.811
2024/25 2023/24
26.664 26.737
71 74
Impairment
Goodwill and intangible assets not yet available for use, e.g. software under development, are not subject to amortization, but are
tested for impairment at least annually, irrespective of whether there is any indication that they may be impaired.
Intangible assets, which are subject to amortization, and property, plant and equipment are reviewed for impairment whenever
events or changes in circumstances indicate that the carrying amount may not be recoverable. If assets do not generate cash flows
that are largely independent of those from other assets or groups of assets, the impairment test is performed at the level of the CGU
to which the asset belong.
Recoverability of assets is measured by comparing the carrying amount of the asset or CGU with the recoverable amount, which is
the higher of the asset’s or CGU’s value in use and its fair value less costs to sell.
If the carrying amount of an asset, or of the CGU to which the asset belong, is higher than its recoverable amount, the carrying
amount is reduced to the recoverable amount, and an impairment loss is recognized in the consolidated statement of profit or loss.
Impairment of intangible assets, other than goodwill, and impairment of property, plant and equipment is reversed only to the
extent of changes in the assumptions and estimates underlying the impairment calculation. Impairment is only reversed to the
extent that the asset’s new carrying amount does not exceed the carrying amount of the asset after amortization had the asset not
been impaired.
Cash-generating units
Management has applied significant judgment in determining that WSA A/S Group represents a single CGU. This assessment is
based on the high degree of interrelation and integration throughout the entire value chain, from development to sale of hearingaids
to end customer. It reflects the WSA A/S Group’s central management of critical cash flow determinants including product
development, production, external marketing and pricing strategies that significantly impact all distribution entities.
Management regularly reviews this assessment, which remains consistent with prior years, and has allocated goodwill at this level in
accordance with the requirement to monitor goodwill at the lowest level for internal management purposes.
Management has determend that T&W Medical A/S has two operating segments in accordance with IFRS 8, to which
goodwill is allocated:
1: Designing, manufacturing and selling of hearing aids (WSA A/S Group)
2: Development and commercialicing of medical devices within UNEEG Medical A/S.
Management monitors goodwill at the operating segment level.
T&W Medical A/S 51
3.3 Depreciation, amortization and impairment (continued)
Impairment test - Goodwill
The recoverable amount of the WSA A/S Group CGU was tested on the basis of its value-in-use, estimated using discounted cash
flows, considering a five-year cash flow projection period and extrapolated using a terminal value for cash flows beyond the
projection period.
The cash flows projections are based on the budget for 2025/26 and beyond that, based on the most recent financial potential plan
approved by the Board. The projections assume a high single digit revenue growth rate and EBITDA margin improvements from the
current rates to a single digit increase. The growth rate is supported by historical growth trajectory and market growth data from
external sources. EBITDA margin improvement reflects management's focus on cost reduction and operational efficiencies through
ongoing transformation projects, productivity initiatives and pricing optimization.
The terminal value for the period after 2029/30 was determined on the assumption of 2% growth which represents the projected
inflation rate. The pre-tax discount rate applied is 9%, estimated based on the industry average weighted average cost of capital.
The recoverable amount of the CGU is subject to estimation uncertainties and changes to the key assumptions may have significant
risk of resulting in material adjustments in future periods. Sensitivity analysis performed shows that reasonable changes in key
parameters, (a) an increase in discount rate by 1%, (b) a decrease in terminal growth rate by 1%, (c) a decrease in revenue growth by
3%, or (d) a decrease in yearly projected EBITDA margins by 3%-points, will not result in impairment loss.
T&W Medical A/S 52
3.4 Right-of-use assets/Lease liabilities
Right-of-use assets
DKKm
Carrying amount at 1 October 2024
Foreign exchange adjustments
Additions
Disposals
Depreciation
Remeasurement
Carrying amount at 30 September 2025
Carrying amount at 1 October 2023
Foreign exchange adjustments
Additions during the year
Disposals
Depreciation
Remeasurement
Carrying amount at 30 September 2024
Other disclosures relating to right-of-use assets/lease liabilities are as follows:
DKKm
Interest expense on lease liabilities
Lease expense not capitalized in lease liabilities:
Lease expense — short-term leases and low value assets
Total cash outflow for all leases
The maturity analysis of the lease liabilities is included in Note 4.2 Financial risks and financial instruments.
Accounting policies
When the Group is the lessee:
2023/242024/25
(507)
(72) (100)
(478)
(35) (82)
957
1.458 67 7
(1.098) (45) -
961
19 - - 19
(15) - (6) (21)
(394) (30) - (424)
35 16 1.008
(325) (15) - (340)
1.532
(1.143)
918 28 15
209 - - 209
892 27 16 935
(15) - - (15)
(37) - - (37)
172 22 - 194
Other plant,
fixtures and
operating
equipmentVehicle fleet
Buildings
and retail
shops Total
957 35 16 1.008
At the inception of the contract, the Group assesses if the contract contains a lease. A contract contains a lease if the contract conveys
the right to control the use of an identified asset for a period of time in exchange for consideration. Reassessment is only required
when the terms and conditions of the contract are changed.
Right-of-use assets
The Group recognized a right-of-use asset and lease liability at the date which the underlying asset is available for use. Right-of-use
assets are measured at cost which comprises the initial measurement of lease liabilities adjusted for any lease payments made at or
before the commencement date and lease incentive received. Any initial direct costs that would not have been incurred if the lease had
not been obtained are added to the carrying amount of the right-of-use assets.
These right-of-use assets are subsequently depreciated using the straight-line method from the commencement date to the earlier of
the end of the useful life of the right-of-use assets or the end of the lease term.
T&W Medical A/S 53
3.4 Right-of-use assets/Lease liabilities (continued)
Lease liabilities
The initial measurement of lease liability is measured at the present value of the lease payments discounted using the implicit rate in
the lease if the rate can be readily determined. If that rate cannot be readily determined, the incremental borrowing rate is used.
Lease payments include the following:
• Fixed payment (including in-substance fixed payments), less any lease incentives receivables;
• Variable lease payment that are based on an index or rate, initially measured using the index or rate at the commencement date;
• Amount expected to be payable under residual value guarantees;
• The exercise price of a purchase option if it is reasonably certain to exercise the option; and
• Payment of penalties for terminating the lease, if the lease term reflects the Group exercising that option.
For contracts that contain both lease and nonlease components, the Group allocates the consideration to each lease component on the
basis of the relative stand-alone price of the lease and non-lease component. The Group has elected to not separate lease and non-
lease component for property leases and account for these as one single lease component.
Lease liability is measured at amortized cost using the effective interest method. Lease liability is remeasured when:
• There is a change in future lease payments arising from changes in an index or rate;
• There is a change in the Group’s assessment of whether it will exercise an extension option; or
• There is a modification in the scope or the consideration of the lease that was not part of the original term.
Lease liability is remeasured with a corresponding adjustment to the right-of-use asset, or is recorded in profit or loss if the carrying
amount of the right-of-use asset has been reduced to zero.
Short-term and low value leases
The Group has elected to not recognize right-ofuse assets and lease liabilities for short-term leases that have lease terms of 12 months
or less and low value leases, except for leased asset subject to sublease arrangements. Lease payments relating to these leases are
expensed to profit or loss on a straight-line basis over the lease term.
Judgments and accounting estimates
The lessee's incremental borrowing rate is the rate of interest that a lessee would have to pay to borrow over a similar term and with a
similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment.
That is, the rate specific to:
• The lessee – i.e. it is a company specific rate that reflects the credit worthiness of the company
• The term of the arrangement
• The amount of the funds “borrowed”
• The “security”- i.e. the nature and quality of the underlying asset; and
• The economic environment, encompassing the jurisdiction, the currency and the date at which the lease entered into.
T&W Medical A/S 54
3.5 Other non-current and current financial assets
DKKm
Other non-current financial assets
Derivative financial instruments
Other securities and equity investments
Total
Other current financial assets
Derivative financial instruments
Other securities and equity investments
Other loans
Total
Other loans and receivables, including loans to associates
Other investments
3.6 Customer loans
Customer loans are as follows:
DKKm
Non-current
Current
Total
Credit rating
DKKm
30 September 2025:
Performing 12-month expected credit loss (Low risk)
Performing 12-month expected credit loss (Medium risk)
Underperforming Lifetime expected credit losses (High risk)
Credit impaired
Total customer loans at 30 September 2025
Expected credit
loss (ECL) rate
Estimated gross
carrying amount at
defaultBasis for recognition of expected credit loss
2023/24 2024/25
433
530
425
544
4%
38%
89%
97 119
63 64
890 591
216 67
172
37
67
2023/242024/25
53
2.584
2.637
37
2.914
2.951
611 460
0% 338
614
Assets derecognized through the
consolidated statement of profit or loss
(In default)
The below table shows the carrying amount of customer loans by categories representing Management’s credit risk assessment (credit
risk rating grades) and gross carrying amounts.
Other assets are recognized initially at fair value less directly attributable transactions costs. Subsequently, they are measured at
amortized cost using the effective interest method less impairment. A loss allowance is recognized at initial recognition and
subsequently based on 12-months expected credit losses, unless a significant increase has arisen since the initial recognition of the
loans and receivables, in which case the loss allowance is based on lifetime expected credit losses.
Other investments comprise listed and unlisted securities, which are measured at fair value through profit or loss.
T&W Medical A/S 55
3.6 Customer loans (continued)
Credit rating
DKKm
30 September 2024:
Performing 12-month expected credit loss (Low risk)
Performing 12-month expected credit loss (Medium risk)
Underperforming Lifetime expected credit losses (High risk)
Credit impaired
Total customer loans at 30 September 2024
DKKm Total
105
Foreign exchange adjustments (7)
(14)
84
135
Foreign exchange adjustments (15)
(15)
105 2 4 23 76
- - (7) (8)
Net remeasurement of
loss allowance - - 7 (22)
76
(7)
(7)
62
Opening loss allowance at
1 October 2023 2 4 23 106
4
-
-
4
23
-
(7)
16
Opening loss allowance at
1 October 2024
Net remeasurement of
loss allowance
2
-
-
2
Assets derecognized through the
consolidated statement of profit or loss (In default)
Estimated gross
carrying amount at
default
Expected credit
loss (ECL) rate Basis for recognition of expected credit loss
1% 388
Closing loss allowance at
30 September 2025
(calculated under IFRS 9)
Closing loss allowance at
30 September 2024
(calculated under IFRS 9)
4%
45%
84%
Credit
impaired
(lifetime
ECL)
Underper-
forming
(lifetime
ECL)
Performing (12-
month ECL -
Medium risk)
Performing (12-
month ECL - Low
risk)
127
45
89
649
• New customer loans of DKK 164 million (2023/24: DKK 149 million) were issued in the financial year ended 30 September 2025;
• Customer loans with a gross carrying amount of DKK 7 million (2023/24: DKK 7 million) went from performing to underperforming
during the financial year ended 30 September 2025;
• Customer loans with a gross carrying amount of DKK 127 million (2023/24: DKK 134 million) were repaid in the financial year ended
30 September 2025.
The following significant changes in gross carrying amount of customer loans contributed to changes in the loss allowance:
T&W Medical A/S 56
3.6 Customer loans (continued)
3.
7
Other assets
Other non-current assets
DKKm
Prepaid assets
Assets for deferred compensation plan
Deposits
Deferred service cost
Others
Total
Other current assets are as follows:
Other current assets
DKKm
Prepaid assets
Loan receivables from third parties
Miscellaneous tax receivables
Deposits
Others
Total
Accounting policies
2024/25 2023/24
648 576
202 194
- 8
224 224
15 7
207 143
45
254
97
52
15
82
261
2023/242024/25
127
52
15
15 15
Other assets are recognized initially at fair value less directly attributable transactions costs. Subsequently, they are measured at
amortized cost using the effective interest method less impairment. A loss allowance is recognized at initial recognition and
subsequently based on 12-months expected credit losses, unless a significant increase has arisen since the initial recognition of the
loans and receivables, in which case the loss allowance is based on lifetime expected credit losses.
Accounting policies
Customer loans are initially recognized at fair value less transaction costs and subsequently measured at amortized cost less loss
allowance or impairment losses. Any difference between the nominal value and the fair value of the loans at initial recognition is
treated as a prepaid discount on future sales to the customer, and is recognized in the consolidated statement of profit or lossas a
reduction of revenue as and when the customer purchases goods from the Group.
The fair value of customer loans at initial recognition is measured at the present value of future repayments of the loan discounted at a
market interest rate corresponding to the money market rate based on the expected maturity of the loan with the addition of a risk
premium. The effective interest on customer loans is recognized as interest income in the consolidated statement of profit or loss over
the term of the loans.
A loss allowance is recognized at initial recognition and subsequently based on 12-months expected credit losses, unless a significant
increase has arisen since the initial recognition of the loan, in which case the loss allowance is based on lifetime expected credit losses.
Customer loans are written off when all possible options have been exhausted and there is no reasonable expectation of recovery.
T&W Medical A/S 57
3.8 Inventories
DKKm
Raw materials and purchased components
Work in progress
Right of return
Finished goods and goods for resale
Total
Provisions for obsolescence etc. included in the above
Included in the consolidated statement of profit or loss under production costs:
DKKm
Reversal of provisions/(Provisions) for inventories
Cost of goods sold during the year
Total
Accounting policies
(299) (313)
2024/25 2023/24
(4.305) (4.765)
15 (45)
(4.320) (4.720)
795
1.626
641
194
75
777
1.687
2024/25 2023/24
607
164
60
Inventories are measured at the lower of cost and net realizable value, cost being generally determined on the basis of a weighted
average method. Cost comprises raw materials, consumables, direct labour and indirect production overheads. Indirect production
overheads comprise indirect supplies, wages, and salaries, amortization of brands and software, as well as maintenance and
depreciation of machinery, plant and equipment used for production.
Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling
expenses.
T&W Medical A/S 58
3.9 Trade receivables
DKKm
Total
30 September 2025
Gross carrying amount 2.615
(142)
(29)
2.444
Expected loss rate -6,5%
DKKm Total
30 September 2024
Gross carrying amount 2.570
(180)
(31)
2.359
Expected loss rate
-8,2%
General loss allowance
(expected credit loss model)
Trade receivables at 30
September 2024
Current not
due
1-30 days
past due
31-60 days
past due
61-90 days
past due
91-180 days
past due
More than
181 days
past due
- (7)
1.741 238
Specific loss allowance
(expected credit loss model)
-1,7% -8,8% -7,1% -10,7% -11,8% -56,7%
104 67 112 97
(7) (15) (1) (1)
(23) (8) (7) (7) (15) (120)
More than
181 days
past due
91-180 days
past due
61-90 days
past due
31-60 days
past due
1-30 days
past due
Current not
due
(7) (7) (1) (15) (97)
209 97 60 75 269 1.905
(15)
-36,1%
-1,2% -6,7%
Specific loss allowance
(expected credit loss model)
-7,2% -1,7% -40,0%
General loss allowance
(expected credit loss model)
1.771 261 112 75 127 224
Trade receivables at 30
September 2025
(7)
1.883 195 90 59 45 172
(7) - - (15) -
T&W Medical A/S 59
3.9 Trade receivables (continued)
DKKm
Opening loss allowance at 1 October 2024
Net remeasurement of loss allowance
Amounts written off
Closing loss allowance at 30 September 2025
Opening loss allowance at 1 October 2023
Net remeasurement of loss allowance
Amounts written off
Closing loss allowance at 30 September 2024
Accounting policies
(15) (209) (224)
(30)
-
-
(30) (181) (211)
(15) 45 30
- (17) (17)
(30)
(181)
(7)
47
(141)
Total
Collectively
assessed
(211)
(7)
47
(171)
Individually
assessed
(credit impaired)
The below table shows the movement in lifetime expected credit losses that has been recognized for trade receivables and contract
assets in accordance with the simplified approach set out in IFRS 9.
Receivables acquired in business combinations are recognized in the consolidated financial statements at fair value at the date of
acquisition, which reflects the carrying amounts net of loss allowance at that date. Subsequent changes in the loss allowance for these
receivables immediately after acquisition are recognized in the profit or loss.
Loss allowance is calculated using a provision matrix that incorporates an ageing factor, geographical risk and specific customer
knowledge. The provision matrix is based on historical credit losses incurred within relevant time bands of days past due adjusted for a
forward-looking element.
When there is objective evidence that a trade receivable is credit-impaired, loss allowance is measured on an individual basis. A
receivable is generally considered to be credit-impaired when:
When there is objective evidence that a trade receivable is credit-impaired, loss allowance is measured on an individual basis. A
receivable is generally considered to be credit-impaired when:
Trade receivables and contract assets are measured at amortized cost less allowance for lifetime expected credit losses.
To measure the expected credit losses, trade receivables and contract assets have been grouped based on shared credit risk
characteristics and the days past due. For trade receivables and contract assets that are considered credit impaired, the expected credit
loss is determined individually.
• The customer is in significant financial difficulty and is unlikely to pay the outstanding amounts in full, after realising security (if any
is held);
• The customer has defaulted on payments and the trade receivable is long past due; or
• It is becoming probable that the customer will enter bankruptcy or another financial reorganisation.
Trade receivables and contract assets are written off when all possible options have been exhausted and there is no reasonable
expectation of recovery.
T&W Medical A/S 60
3.10 Other liabilities
Other non-current liabilities are as follows:
DKKm
Deferred revenue
Earnout provision*
Employee related liabilities
Share-based payment liabilities
Others
Total
Other current liabilities are as follows:
DKKm
Accrued interest
Bonuses and discounts to customers
Customers with net credit balances
Customer prepayment
Deferred revenue
Employee related liabilities
Payroll and social security taxes
Sales tax and other tax liabilities
Others
Total
* Earnout provision was presented in Note 3.11 in 2023/24.
Accounting policies
246
60
1.928 2.540
82
105
794
82
135
164 178
90
127
626
340
135
872
112
60
2024/25 2023/24
75
7
75
254
15
426
119
-
15
104
18
256
260
2023/242024/25
Financial liabilities are measured initially at fair value less transaction costs and subsequently at amortized cost using the effective
interest rate method.
Share-based payment liabilities are measured at fair value, with reference to Note 5.2.
Earnout provision from business combinations relates to components of the purchase price for which the payments depend on the
achievement of defined performance measures. There was no material business combination during the year.
Other liabilities are measured at amortized cost.
T&W Medical A/S 61
3.11 Provisions
DKKm
Provision at 1 October 2024
Foreign exchange adjustments
Additions
Reclassification
Reversals/Usage
Provisions at 30 September 2025
Non-current
Current liabilities
Provision at 30 September 2025
Accounting policies
Right of
returns
485
491 173 53 - 67 784
245
299
Which is presented in the consolidated
statement of financial position as
173 - - 67
246 - 53 - -
67 784
(112) (7) - (15) (305)
173 53 -
- - (30) (82) (112)
231
-
(171)
491
TotalOther
Earnout
Provision
Asset Re-
tirement
ObligationWarranties
(37)
90 - - 30 351
(7)
887 461
-
202 60 30 134
(30) - -
The Group’s provisions are generally expected to result in cash outflow during the next 1 to 10 years.
Warranties represent Management’s best estimate of the Group’s liability under assurance type warranties granted on hearing aids
sold. The warranty period of regular assurance type warranties differs depending on jurisdictions and ranges between 2 and 5 years.
Right of return relates to products sold for which customers have the right to return the products at their own discretion within a
specified period. Based on historical data, return rates are calculated and provisions are recorded to cover the expected cost.
Asset retirement obligation relates to the Group’s obligations to restore rented premises to the certain standards upon the expiry of the
lease contracts including removal of leasehold improvements and other assets from the premises.
A provision is recognized in the consolidated statement of financial position when the Group has a present legal or constructive
obligation as a result of a past event, and it is probable that an outflow of economic benefits will be required to settle the obligation and
a reliable estimate can be made of the amount of the obligation.
If the effect is material, provisions are measured at present value by discounting the expected future cash flows expected to settle the
liability at a pre-tax rate that reflects current market assessment of the time value of money.
T&W Medical A/S 62
3.11 Provisions (continued)
Significant accounting estimates and judgments
Significant estimates are involved in the determination of provisions related to warranty costs and right of return. Due to the
technological features of the Group’s products, the Group incurs a substantial amount of warranty costs and the determination of future
warranty costs related to products sold is based on historic results as well as estimated product defects.
In some jurisdictions, the Group sells extended warranties to customers and/or provide other service-type warranties in additionto
regular (assurance-type) warranties. Such warranties are treated as separate performance obligations in the contracts with the
customers and are recognized as contract liabilities and not provisions. In determining whether a warranty is an assurance type
warranty or a service type warranty, Management considers factors such as whether the warranty is required by law, the length of the
warranty coverage period and the nature of the tasks that the entity promises to perform in case of product defects. Generally,
warranties covering periods after 3 years from the sale of the hearing aid are considered to be service-type warranties and treated as
separate performance obligations.
T&W Medical A/S 63
4 Capital structure and financing items
4.1 Outstanding shares and capital structure
Capital structure
The Group's debt is shown in table below:
Debt
30 September 2025
Term Loan B EUR 1,900 million
Term Loan B USD 1,077 million
Drawn Revolving Credit Facility EUR 91 million
No
Euribor + 3.5%
Danske Bank DKK 1.640 million
Danske Bank DKK 400 million
Nykredit DKK 332 million
Nykredit DKK 34 million
Nykredit DKK 14 million
30 September 2024
Term Loan B EUR 1,830 million
Term Loan B USD 1,047 million
Drawn Revolving Credit Facility EUR 91 million
Danske Bank DKK 1,640 million
Danske Bank DKK 400 million
Nykredit DKK 332 million
Nykredit DKK 34 million
Nykredit DKK 14 million
If Euribor, Term SOFR or CIBOR is less than zero, the rate shall be deemed as zero.
August 2028
Interest rateHedge interestMaturity
Partly till 2028/29
Partly till 2027/28
Euribor + 3.75%
Term SOFR + 3.5%
February 2029
February 2029
CIBOR + 1.75%
CIBOR + 3.5%
CIBOR + 0.3%
CIBOR + 0.41%
CIBOR + 0.25%
February 2027
February 2027
February 2047
February 2047
March 2054
No
No
Partly till 2036/37
Partly till 2036/37
No
February 2029 Partly till 2027/28 Euribor + 3.75%
February 2029 Partly till 2027/28 Term SOFR + 3.5%
August 2028 No Euribor + 3.5%
February 2027 No CIBOR + 0.75%
February 2027 No CIBOR + 3.5%
February 2047 Partly till 2036/37
CIBOR + 0.25%NoMarch 2054
CIBOR + 0.41%Partly till 2036/37February 2047
All shares are fully issued and paid up. In the fiscal year 2022/23, the share capital was increased by 63,774,688 B-Shares shares at a
nominal value of DKK 1 per share. After the capital increase, the Group’s share capital of DKK 563,774,688 is divided into 2,000,000
A-shares and 561,774,688 B-shares with the voting rights only on A-Shares but equal dividend rights. There are no restrictions on the
negotiability or voting rights. No change in the share capital structure in 2024/25.
The Group’s ambition is to maintain access to a strong capital base and with a high degree of investor, creditor and market confidence
to support the strategic development of the Group. To support this ambition, the Group has obtained a credit rating from the three
rating agencies Moody’s, Standard & Poor and Fitch Ratings.
The capital structure of the Group consists of net debt (short-term and long-term borrowings disclosed in Note 4.2 after deducting
cash and cash equivalents) and equity of the Group (comprising issued capital, reserves, retained earnings and non-controlling
interests).
The Group raised debt in 2019 to finance the establishment of the Group through the merger of Sivantos and Widex. In April 2025,
the Group repaid its PIK note with proceeds from capital injections from its shareholders. Further, the Group repriced its senior
secured debt in October 2024 and July 2025 and raised incremental senior debt of EUR 105 million in October 2024.
T&W Medical A/S 64
4.1 Outstanding shares (continued)
Accounting Policies
4.2 Financial risks and financial instruments
Financial risk management
Term loans
The senior secured term loans are secured by a pledge of the shares of major subsidiaries as well as pledge of assets of major
subsidiaries and are subject to a loan covenant stating that the Group’s Consolidated Secured Net Leverage Ratio cannot exceed the
stipulated threshold of 9.17:1. The Consolidated Secured Net Leverage Ratio is the ratio of the aggregate outstanding Senior Secured
Indebtedness of the Group, less cash and cash equivalents, to the aggregate amount of Consolidated EBITDA (as per definition setout
in the Senior Facilities Agreement) for the period of the four most recent fiscal quarters. The Group has complied with the loan
covenant of the Senior Facilities Agreement and expects to comply with the covenant for at least 12 months after the reporting date.
Accordingly, the loans are classified as non-current liabilities as at 30 September 2025. Any breach of the covenant may result in the
loans becoming payable on demand.
Proposed dividend is recognized as a liability at the date when it is adopted at the Annual General Meeting (declaration date). The
dividend recommended by the Board, and therefore expected to be paid for the year, is disclosed in the notes.
The Group is exposed to several financial risks arising from its operating, investing and financial activities, including marketrisk
(foreign exchange risk and interest rate risk), liquidity risk and credit risk.
Risks arising from financial investments are managed in the holding companies (TWM and TWH) in accordance with the approved
investment strategy. Those financial risks that arise from the operation of WSA Group are managed by WSA Group Treasury in
accordance with the approved policies on Foreign Currency and Interest Hedging Policy approved by Group CFO. The WSA Group
enters financial instruments only to mitigate these financial risks. It is the WSA Group policy to maintain investor, creditor and
market confidence, and to sustain future development of the business. The objective, policies and processes for managing the risk
exposure to these items are summarized in the table below and further explained in the following sections. The WSA Group is
managed centrally by Management, which is responsible for the operating business, comprising commercial risk with hedge
accounting to reduce volatility in the income statement.
Danske Bank facility loans
The term facility loans are secured by a pledge of assets in T&W Holding A/S (TWH) and are subject to a loan covenant stating that
the pledged assets shall be equal to at least 9% of the then outstanding term facility loan (being equivalent to DKK 183.6 million at
30 September 2025).
The Group has complied with the term facility loan and expects to comply with the covenant for at least 12 months after the
reporting date. Accordingly, the loans are classified as non-current liabilities as at 30 September 2025. Any breach of the covenant
may result in the loans becoming payable on demand.
Significant accounting estimates and judgments
During the year, the Group repriced its senior secured debt. As part of the transaction, the borrowing legal entity was changed from a
Luxembourg entity to a Danish entity. As the change is a change in jurisdiction and legal borrower which carries economic substance,
the loan was derecognized in accordance with IFRS 9.
T&W Medical A/S 65
4.2 Financial risks and financial instruments (continued)
Credit risk
Liquidity risk
Credit risk is defined as an unexpected loss in cash and earnings if the customer is unable to pay its obligations in due time. The
Group may incur losses if the credit quality of its customers deteriorates or if they default on their payment obligations to the Group.
The Group’s exposure to credit risk arises primarily from trade and other receivables including loans to customers.
Liquidity risk results from the Group’s potential inability to meet its financial liabilities.
The Group finances itself from its operating cash flow and its available liquidity, including cash balances and the Revolving Credit
Facility.
As at 30 September 2025, the Group held cash and cash equivalents amounting to DKK 816 million (2023/24: DKK 1.804 million). In
addition, the Group has access to undrawn committed facilities under its Revolving Credit Facility of DKK 1.900 million (2023/24:
DKK 2.018 million).
The Group's liquidity position, together with expected operating cash flows, is sufficient to meet its present and foreseeable
obligations arising from operational and financing activities. The Group also expects to have the ability to refinance its existing debt
facilities as they approach maturity.
In addition to having implemented effective working capital and cash management, the Group has implemented short-term and
medium term-liquidity forecasts. Group Treasury monitors the level of expected cash inflows on trade and other receivables together
with expected cash outflows on trade and other payables.
The Group maintains an in-house banking and cash pool setup. A significant part of cash balances from affiliates is pooled centrally
with Group Treasury to secure an effective liquidity management and use of funds within the Group.
The following table reflects all contractually fixed payoffs for settlement, repayments and interest resulting from recognized financial
liabilities. It includes expected net cash outflows from derivative financial liabilities that were in place at 30 September 2025 and 30
September 2024. Such expected net cash outflows are undiscounted net cash outflows for the respective upcoming financial years,
based on the earliest date on which the Group could be required to pay. Cash outflows for financial liabilities (including interest)
without fixed amount or timing are based on the spot rates at 30 September 2025 and 30 September 2024.
The Group has exposure to customer credit risk and the credit risk is monitored on an ongoing basis. This includes the review of
individual receivables and of individual customer creditworthiness on a case-by-case basis as the analysis of individual customer
payment performance and historical bad debts. Credit evaluations are performed on all customers annually and on an ongoing basis.
The Group does not require collateral in respect of financial assets. However, the Group has credit enhancements such as personal
guarantees and share pledges related to customer loan. Assessment of the credit risk related to customers is further described in Note
3.6 Customer loans and Note 3.9 Trade receivables.
There were no significant concentrations of credit risk at 30 September 2025 and 30 September 2024.
The maximum exposure to credit risk of financial assets is represented by their carrying amount. Concerning trade and other
receivables, as well as loans or receivables included in line item ‘Other assets’ that are neither impaired nor past due, there were no
indications as of 30 September 2025 (2023/24: Nil) that defaults in payment obligations will occur.
T&W Medical A/S 66
4.2 Financial risks and financial instruments (continued)
DKKm
Interest-bearing debt
Lease liabilities
Trade payables
Debt to related parties
Other financial liabilities
Total non-derivative financial liabilities
Derivative financial liabilities
Interest-bearing debt
Lease liabilities
Trade payables
Debt to related parties
Other financial liabilities
Total non-derivative financial liabilities
Derivative financial liabilities
Foreign currency risk
Translation risk and effects of foreign currency translation
Sensitivity analysis for foreign currency risk
DKKm
30 September 2025
JPY +5%
USD +5%
SGD +5%
30 September 2024
JPY +5%
USD +5%
SGD +5%
30 September 2024
658 26.567 - 27.225
312 846 - 1.158
30 September 2025
1.170
307
1.735
-
3.425
23.392 - 24.562
815 - 1.122
- - 1.735
236 - 236
24.443 - 27.868
Total
More than 5
years
Between 1-5
years
- 1.662
-83 - 83
Less than 1
year
142 366 - 508
1.662 -
EquityProfit/(Loss)
(142)
(142)
(22)
(142)
(164)
7
1.471 - - 1.471
213 - - 213
(149) (179)
4.103 27.496 - 31.599
15 358 - 373
(119) (119)
(22) 7
The risk implied from the values in the table above reflects the one-sided scenario of cash outflows only. Obligations under trade
payables and other financial liabilities mainly originate from the financing of assets used in the Group’s ongoing operations such as
property, plant and equipment, and investments in working capital such as inventories and trade receivables.
Most of the Group’s entities are located outside the Eurozone. Since the Group’s reporting currency is DKK, the financial statements
of foreign operations are translated into DKK for the preparation of the consolidated financial statements. To consider the effects of
foreign currency translation in the risk management, the general assumption is that investments in foreign operations are permanent
and that reinvestment is continuous. Effects from foreign currency exchange rate fluctuations on the translation of net assets amounts
into DKK are reflected in the Group’s consolidated statement of changes in equity. The Group does not hedge net investments in
foreign operations.
The following table demonstrates the approximate effect from the Group’s financial assets and liabilities on the Group’s profit or loss
and consolidated equity in response to fluctuation of the currencies with the highest exposures. This analysis assumes that all other
variables, in particular interest rates, remain constant.
T&W Medical A/S 67
4.2 Financial risks and financial instruments (continued)
Specification of net interest-bearing debt
DKKm
Cash and cash equivalents
Bank loans, non-current liabilities
Bank loans, current liabilities
Total net interest-bearing debt
Hedging of future cash flows
Foreign currency risk hedging
816
(23.392)
2023/242024/25
(1.170)
(23.746)
1.804
(26.567)
(658)
(25.421)
The Group has cash flow in foreign currencies due to its international operations and USD denominated debt which exposes the
Group to fluctuations in exchange rates vs reporting currency DKK. Foreign currency exchange rate fluctuations may create
unwanted and unpredictable earnings and cash flow volatility. The Group manufactures and distributes most of its products in
Singapore and Denmark. The products are sold to its regional affiliates and as a general principle invoiced in the currency of the
buying entities.
The majority of the Group’s sales and costs are in USD, EUR, JPY, GBP, DKK and SGD. The largest foreign exchange risk for the
Group are JPY, USD and SGD. The exchange rate risk in EUR is regarded as low because of DKK’s fixed exchange rate against EUR.
The Group’s hedging policy is to reduce the Group currency exposure mainly through employment of foreign exchange forward
contracts to mitigate the Group’s major risks from adverse foreign exchange movements impact on net cashflow for 3 to 12 months
rolling forward.
Interest rate risk
Interest rate risk is centrally managed by Group Treasury. The Group’s policy is to maintain between 35% to 90% of all interest-
bearing debt at fixed-rate through fixed rate agreements or derivatives in the next 24 months.
At 30 September 2025, the Group’s long-term debt consists of secured term loans of EUR 1,900 million (2023/24: EUR 1,830
million) and USD 1,077 million (2023/24: USD 1,047 million) with a floating interest rate of which 68% (2023/24: 72%) have been
swapped into fixed interest rate. In addition Nykredit DKK 332 million and DKK 34 million have been swapped into a fixed interest
rate. The hedge ratio does not include the loans with Danske Bank of DKK 2.040 million. The hedge ratio would have been 73%
including Danske Bank loans. The Group has applied hedge accounting in relation to most of these interest rate and cross currency
swaps. The Group did not adopt hedge accounting for cross currency swaps used to convert USD debt to JPY debt which better match
the Group’s commercial EBITDA exposure.
Interest rate sensitivity analysis
The Group is exposed to changes in the following interest rates: EURIBOR, Term SOFR and CIBOR. The sensitivity analysis has
been determined based on the exposure to interest rates at the reporting date. For floating rate liabilities, the analysis is prepared
assuming the amount of liability outstanding (after hedging) at the reporting date was outstanding for the whole year. A 1 percentage
point increase or decrease is used when reporting interest rate risk and represents management’s assessment of the reasonably
possible change in interest rates.
At 30 September 2025, if interest rates had been 1 percentage point higher and all other variables were held constant, the Group’s
annual interest expense would increase by DKK 87 million (2023/24: DKK 104 million). This is mainly attributable to the Group’s
exposure to interest rates on its variable rate borrowings.
T&W Medical A/S 68
4.2 Financial risks and financial instruments (continued)
Cash flow hedges of foreign currency risk:
Hedging instruments:
30 September 2025
Sell AUD
< 3 months
3-12 months
Sell CAD
< 3 months
3-12 months
Sell CNY
< 3 months
3-12 months
Sell GBP
< 3 months
3-12 months
Sell JPY
< 3 months
3-12 months
Buy NOK
< 3 months
3-12 months
Buy USD
< 3 months
> 12 months
Buy KRW
< 3 months
3-12 months
Buy SGD
< 3 months
3-12 months
Total (EUR)
Total (DKK)
4,0
13,0
(30,0) -
-
60,0 0,4
2,0 0,1
1.629,4 (11.405,7) 7,0 0,1
1,42
1,49
42.6
104,0
1.585,9 (3.171,7)
(0,9)
(2,8) 6,6
-
-
-
-
-
-
1,5
7,0
17,0
-
49,3 (20,9)
(0,1)
-
(1,8)
-
(70,0)
-
-
-
- 1,2
0,1
0,4
11,88
12,02
0,84
0,87
159,70
166,71
2,0
30,5
16,0
50,0
-
-
(8.335,3)
(48,1)
(154,4)
1,18 (70,7)
8,07
0,1
0,6
0,5
0,6
0,5
16,0
8,0
21,0
1,79
1,51
1,60
7,63
(8,5)
(28,6)
(12,1)
(33,6)
(53,4)
(137,2)
(2,0)
(26,6)
(2.555,2)
Notional
value:
Foreign
currency
milRate
Average
exchange
- 0,2
Notional
value:
Functional
currency
1,16 (16,2) 14,0 0,3 -
Carrying amount of
hedging
instruments –
Assets
Carrying amount of
hedging
instruments -
Liabilities
1,70 5,0
EURmEURmEURm
The Group has also adopted a strategy to hedge its financial leverage by converting 70% of its USD denominated debt into EUR and
JPY through the use of cross currency interest rate swaps. This reduces the financial leverage volatility by having a currency
composition of the debt structure that better matches the Group's commercial EBITDA exposure.
The Group’s currency risk is centrally managed by Group Treasury. The policy for the Group is to maintain an adequate hedging
level of between 40% and 90% for currencies of net exposure above a threshold of DKK 112 million with exception given to
currencies with high cost of hedging and low cashflow predictability. Group Treasury is not allowed to undertake any financial
transactions in foreign currencies of speculative nature. The Group uses forward contracts to hedge its currency risk in order to
mitigate negative impact of adverse movements in foreign exchange rates on the Group’s operating results.
T&W Medical A/S 69
4.2 Financial risks and financial instruments (continued)
30 September 2024
Sell AUD
< 3 months
3-12 months
Sell CAD
< 3 months
3-12 months
Sell CNY
< 3 months
3-12 months
Sell GBP
< 3 months
3-12 months
Sell JPY
< 3 months
3-12 months
Buy NOK
< 3 months
3-12 months
Buy SGD
< 3 months
3-12 months
Buy USD
> 12 months
Total (EUR)
Total (DKK)
Hedged Items – Foreign currency hedge
18.0 - (0,2)
-
1,45 94,2 (65,0) 0,8 -
1,10 315.0 (281,4) - (3,9)
11,66 (134,0) 11,5 0,2 -
1,45 29,0 (20,0) 0,3 -
155,19 (6.983,6) 45.0 0,5 -
11,95 (23,9) 2.0 - -
0,86 (29,3) 34.0 - (0,7)
152,74 (2.276,1) 15.0 0,7 -
7,82 (78,3) 10.0 - -
0,87 (6,0) 7.0 - (0,3)
18.0 0.3 -
7,87 (23,6) 3.0 - -
1,48 (10,3) 7.0 0.2
Carrying amount of
hedging
instruments –
Assets
Carrying amount of
hedging
instruments -
Liabilities
Notional
value:
Foreign
currency
Notional
value:
Functional
currency
3 (5,3)
Average
exchange
Rate mil EURm EURm EURm
1,66 (10,0) 6.0 - (0,2)
1,65 (29,7)
1,49 (26,9)
22,4 (39,5)
The hedged items are forecasted transactions and loans denominated in foreign currencies. The ineffective portions of these hedges
are insignificant.
The risk implied from the values in the table above reflects the one-sided scenario of cash outflows only. Obligations under trade
payables and other financial liabilities mainly originate from the financing of assets used in the Group’s ongoing operations such as
property, plant and equipment, and investments in working capital such as inventories and trade receivables.
T&W Medical A/S 70
4.2 Financial risks and financial instruments (continued)
Interest rate risk hedging
Cash flow hedges of interest rate risk
Hedging instruments:
30 September 2025
EUR – 6m Euribor
< 12 months
12-36 months
DKK – 3 m CIBOR
< 12 months
USD
< 12 months
12-36 months
30 September 2024
EUR – 6 m Euribor
< 6 months
6-36 months
DKK – 3m CIBOR
< 12 months
USD
< 6 months
6-36 months*
*Converted to EUR debt and include margin of 4.25%
24,9 (173,1)
DKKm DKKm DKKm
366,6 366,6 23,4 -
6,7 315,0 2.098,0 - (39,0)
34,0 (145,0)
3,7 600,0 3.996,0 5 -
Carrying amount of
hedging
instruments –
Assets
Carrying amount of
hedging
instruments -
Liabilities
Notional
value:
Foreign
currency
Notional
value:
Functional
currency
W
eighted
average rate
1,34 363,0 363,0 22 -
3,34 1.300,0 9.694,0 7 -
W
eighted
average rate
3,34 1.300,0 9.694,0 - (106,0)
Rate mil DKKm DKKm DKKm
--- - -
6 315,0 2.002,8 - (32,8)
1,34
Rate mil
2,52 1.300,0 9.704,4 - (140,3)
2,17 1.000,0 7.464,9 1,5 -
Carrying amount of
hedging
instruments –
Assets
Carrying amount of
hedging
instruments -
Liabilities
Notional
value:
Foreign
currency
Notional
value:
Functional
currency
The Group has long-term loans on floating interest rate which expose the Group to interest rate fluctuations. Interest rate and cross
currency swaps are used to hedge interest rate risks arising from the floating rate loans. The strategy for the Group is to maintain an
adequate hedging ratio of between 35% to 90% of its interest rate exposure for rolling 24 months. The Group applied hedge
accounting in relation to these interest rate and cross currency swaps.
T&W Medical A/S 71
4.2 Financial risks and financial instruments (continued)
DKKm
Foreign currency risk
Carrying amount at 1 October
Changes in fair value
Tax effect
Carrying amount at 30 September
Interest rate risk
Carrying amount at 1 October
Changes in fair value
Reclassified to profit or loss
Tax effect
Carrying amount at 30 September
Total carrying amount at 30 September
Accounting policies
Derivative financial instruments, including hedge accounting
8 30
23
- -
8
15 (22)
2023/242024/25
(EUR/USD) %
Fair value)
Amount recognized
in hedging reserve
Principal amount
2027/28
(EURm) (EURm) (USDm)
Fixed interest
rateExchange rate
(14)
(9)
1,09
1,11
6,2
5,8
3
(1)
160
155
(119) (96)
(104) 224
- 112
(142) (104)
(75) (157)
37 (283)
Cash Flow Hedge Reserve
The risk categories recognized in the cash flow hedge reserve is reconciled in the table below with items impacting the comprehensive
income for the period.
The Group uses various financial instruments to reduce the impact of foreign exchange and interest rates on financial results. The
derivative financial instruments are used to manage the exposure to market risk. Treasury enters into derivative contracts in
accordance with Group policies. Financial instruments used include foreign currency exchange contracts, interest rate swaps and
cross currency interest rate swaps.
All derivative financial instruments are recognized initially and subsequently at fair value. Any attributable transaction costsare
recognized in the consolidated statement of profit or loss in other financial income, net as incurred.
On initial recognition, Management determines if the derivative financial instrument qualifies for hedge accounting and if so,
designates the instrument as a hedging instrument in a fair value hedge, cash flow hedge or hedge of net investment respectively.
The floating rate USD loan has, in accordance with the Group’s risk management strategy, been partially hedged to a fixed rate EUR
through cross currency swaps and are designated as cash flow hedges of the floating USD interest payments. Details about the hedge
relationship is provided in the below table:
The Group applies the cost of hedge approach to the hedge relationship. The cross currency basis spread is recognized in other
comprehensive income and subsequently recycled to profit or loss. The economic relationship is established through matching of the
notional amount and timing of interest payments. No significant sources of ineffectiveness have been identified.
Hedged Items – Interest rate hedge
The hedged items are future interest payments on the Group’s debt which are under floating interest rates. Details of the Group’s debt
are disclosed in Note 4.1.
T&W Medical A/S 72
4.2 Financial risks and financial instruments (continued)
Cash flow hedges
For cash flow hedges, the portion of the fair value adjustments on the hedging instrument that is an effective hedge is recognized in
other comprehensive income and accumulated in a separate reserve in equity. The cumulative fair value adjustments of these
contracts are transferred from the reserve in equity and recycled to the consolidated statement of profit or loss through other
comprehensive income when the hedged transaction is recognized in the consolidated statement of profit or loss. However, when the
forecast transaction subsequently results in the recognition of a non-financial asset or non-financial liability, the transfer from the
reserve in equity is recognized directly in the initial cost or other carrying amount of the asset or liability without recycling through
other comprehensive income.
When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, any cumulative
gain or loss existing in the reserve within equity at that time remains in the reserve and is recognized when the forecast transaction
is ultimately recognized in the consolidated statement of profit or loss. When a forecast transaction is no longer expected to occur,
the cumulative gain or loss existing in the reserve is immediately transferred to the consolidated statement of profit or loss as a
recycling through other comprehensive income and recognized in other financial income, net.
T&W Medical A/S 73
4.2 Financial risks and financial instruments (continued)
Categories of financial assets and financial liabilities and Fair value hierarchy
DKKm
Note Total
Financial assets measured at fair value
53
216
3.195
3.464
Financial assets not measured at fair value
Trade receivables** 3.9 2.444
Customer loans* * 3.6 530
3.5 63
Cash and cash equivalents* 816
3.853
Financial assets measured at fair value
Financial assets not measured at fair value
Trade receivables**
Customer loans**
53
216
3.195
3.464
-
-
Carrying amount
- -
-
-
-
-
-
611
611
-
-
Level 1
-
Level 3
Fair value
- -
-
-
-
-
-
-
-
Total
-
-
-
-
-
-
2.853
2.584
Level 2
Other financial assets (current
and non-current)*
2024/25
Forward Exchange Con-tracts
(designated as hedging
instruments)
Interest rate swaps – cash flow
hedge
Other financial assets (current
and non-current)**
Cash and cash equivalents**
53
216
- 3.195
- - -
2.444 - -
Other financial assets
(current and non-
current)*
Other financial assets
(current and non-cur-
rent)**
-
216
53
-
-
Financial
liabilities
measured
at
amortized
cost
Financial
liabilities
used as
hedging
instru-
ments
Financial
liabilities
measured
at fair value
through
profit or
loss
Financial
assets
measured
at
amortized
cost
Financial
assets used
as hedging
instru-
ments2024/25
- -
Forward Exchange Con-tracts
(designated as hedging
instruments)
-
Interest rate swaps –
cash flow hedge
Financial
assets
measured
at fair value
through
profit or
loss
- 269
- - - -
- - - -
-
3.195
-
530
-
-
-
- - -
63 - - - -
- 3.853 - - -
- 816 - - -
The below table shows the categories of financial assets and financial liabilities, their carrying amounts and their levels in the fair value
hierarchy. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the
carrying amount is a reasonable approximation of fair value.
*The Group has not disclosed the fair values for financial instruments such as short-term trade receivables and payables,
because their carrying amounts are not reasonable approximation of fair value.
T&W Medical A/S 74
4.2 Financial risks and financial instruments (continued)
DKKm
Note Total
Financial liabilities measured at fair value
Cross currency swap 186
22
15
283
-
506
Financial liabilities not measured at fair value
Trade payables** 1.735
Other financial liabilities** 236
Interest-bearing debt 4.4 24.562
Other short-term debt** 213
26.746
Financial liabilities measured at fair value
Cross currency swap
Financial liabilities not measured at fair value
Trade payables**
Other financial liabilities**
Interest-bearing debt 4.4
Other short-term debt** - - -
- 24.562 - 24.562
- - - -
- 24.562 - 24.562
- - - -
-
Loan repayment call option
and interest rate floors
Carry
i
ng amount
Financial
assets
measured
at fair value
through
profit or
loss
-
-
- 186 - 186
Fair value
2024/25 Level 1 Level 2 Level 3 Total
506- 506-
- - - -
283 -
-
2024/25
Financial
assets used
as hedging
instru-
ments
Financial
assets
measured
at
amortized
cost
Financial
liabilities
measured
at fair value
through
profit or
loss
Financial
liabilities
used as
hedging
instru-
ments
Financial
liabilities
measured
at
amortized
cost
Forward exchange con-tracts
(designated as hedging
instruments)
-
-
-
-
283 -
15 - 15 -
22 - 22
Interest rate swaps – cash flow
hedge
-
-
- - 156 30
-
Forward exchange con-tracts
(not designated as hedging
instruments)
22
-
- 171 335
-
-
- - - - 26.746
1.735
- - - - 24.562
- - - -
236
-
-
-
-
-
- - - - 213
- - 283
- - - - -
- -
- 15
- - - -
Forward exchange contracts
(designated as hedging
instruments)
Forward exchange contracts
(not designated as hedging
instruments)
Interest rate swaps – cash flow
hedge
Loan repayment call option
and interest rate floors
T&W Medical A/S 75
4.2 Financial risks and financial instruments (continued)
DKKm
Note Total
Financial assets measured at fair value
3.6 30
3.6 74
3.5 3.373
3.477
Financial assets not measured at fair value
Trade receivables* 3.8 2.359
Customer loans* 3.5 544
3.5 64
Cash and cash equivalents* 1.804
4.771
Note
Financial assets measured at fair value
3.6
3.6
3.5
Financial assets not measured at fair value
Trade receivables* 3.8
Customer loans* 3.5
3.5
- 4.771 ----
---
----
- 1.804 - - - -
30 -30 -
Financial
liabilities
measured
at
amortized
cost
Interest rate swaps –
cash flow hedge
Forward Exchange
Contracts(designated as
hedging instruments)
Other financial assets
(current and non-
current)*
Other financial assets
(current and non-
current)*
---3.373-104
-
-
-
-64 - - - -
2023/24
Forward Exchange Con-tracts
(designated as hedging
instruments)
Interest rate swaps – cash flow
hedge
----
----
----
----
3.477 -3.017 460
Level 1
Carrying amount
2023/24
----74
----30
Financial
assets used
as hedging
instru-
ments
Financial
assets
measured
at
amortized
cost
Financial
assets
measured
at fair value
through
profit or
loss
Financial
liabilities
measured
at fair value
through
profit or
loss
Financial
liabilities
used as
hedging
instru-
ments
Other financial assets (current
and non-current)*
Other financial assets (current
and non-cur-rent)*
Cash and cash equivalents*
----
3.373 -2.913 460
--3.373-
- 2.359 -
544 -
Fair value
TotalLevel 3Level 2
74 -74 -
*The Group has not disclosed the fair values for financial instruments such as short-term trade receivables and payables, because their
carrying amounts are a reasonable approximation of fair value.
T&W Medical A/S 76
4.2 Financial risks and financial instruments (continued)
DKKm
Note Total
Financial liabilities measured at fair value
Cross currency swap - - - 223
8
8
104
30
373
Financial liabilities not measured at fair value
Trade payables 1.662
Other financial liabilities 83
Interest-bearing debt 27.225
Other short-term debt 1.471
30.441
Note
Financial liabilities measured at fair value
Cross currency swap
Financial liabilities not measured at fair value
Trade payables
Other financial liabilities
Interest-bearing debt 4.4
Other short-term debt
104-104-
-
343--
---
Loan repayment call option
and interest rate floors
223-223-
8-8-
8-8-
-
-
27.225
-
27.225 -
-
-
-
--
-
27.225
-
27.225 -
-
-
-
--
2023/24
Forward exchange con-tracts
(designated as hedging
instruments)
Forward exchange con-tracts
(not designated as hedging
instruments)
Interest rate swaps – cash flow
hedge
179 194
-
Forward exchange con-tracts
(not designated as hedging
instruments)
Loan repayment call option
and interest rate floors
-
-
-
Interest rate swaps – cash flow
hedge
-- 8 -
-
2023/24 Level 1 Level 2 Level 3 Total
Financial
assets used
as hedging
instru-
ments
Financial
assets
measured
at
amortized
cost
Financial
assets
measured
at fair value
through
profit or
loss
Financial
liabilities
measured
at fair value
through
profit or
loss
Financial
liabilities
used as
hedging
instru-
ments
Financial
liabilities
measured
at
amortized
cost
-
-
-
-
Forward exchange con-tracts
(designated as hedging
instruments)
-37
Carrying amount
-
-
- - 104 - -
-- - -
-- - -
--
-- - -
-
--
--
30.441
Fair value
-
343
186
27.225
1.471
- - 1.662
-
83 -
--8
-
-- 30
T&W Medical A/S 77
4.2 Financial risks and financial instruments (continued)
Type Valuation Technique
DKKm
Carrying amount at 1 October
Total gains or losses
- Recognized in profit or loss
Carrying amount at 30 September
The fair value of senior secured debt is estimated using
quoted prices from Bloomberg reflecting recent
transactions executed by the facility agent bank (level 2).
Backward induction method where total remaining cash
flows are calculated at each prepayment date. The
prepayment gain is then calculated based on the
probability of a credit rating improved at future
repayment date (level 3).
The fair value of interest rate floors is based on discounted
cash flows or floorlets for intrinsic and option pricing
models with implied volatility for
time value component (level 3).
The fair value of interest rate swaps are determined using
discounted cash flows of fixed leg and net present value of
floating leg based on forward rate curve (level 2).
The fair value of the exchange rate contracts is based on
forward exchange rates (level 2).
Borrowings
2023/24
(15)
(30)
Interest rate
floors
-
Not applicable
Not applicable
Not applicable
(15)
2024/25
(30)
30
Implied volatility
Not applicable
Not applicable
Not applicable
Sensitivity of fair value to
significant unobservable
inputs
Significant
unobservable
inputs
FX contracts
Interest rate
swaps
Loan
repayment
call option
1-year migration
matrix
Higher implied volatility will lead
to higher fair value and vice
versa. Change in implied
volatility will not result in
significant financial impact
The higher the probability of an
increase in credit quality, the
higher the value of prepayment
option
The fair values of cash and cash equivalents, trade and other receivables and trade payables with a remaining term of up to twelve
months, other current financial liabilities and borrowings under revolving credit facilities are approximately equal to their carrying
amount, mainly due to the short-term maturities of these instruments.
Treasury enters into derivative contracts in accordance with Group policies. The exact calculation of fair values of derivative financial
instruments depends on the specific type of instrument.
The following table shows the reconciliation of Level 3 fair value measurements of the loan repayment call option and interest rate
floors:
• Forward currency contracts – the fair value of foreign currency exchange contracts is based on forward exchange rates.
• Interest rate swaps – the fair value is based on discounted cash flows of fixed leg and floating legs.
• Interest rate floors – the fair value is based on discounted cash flows of floorlets.
• Loan repayment call option – the fair value is based on backward induction method calculated from valuation model.
The Group select valuation methods based on market’s best practice. Market data required in the valuation model is extracted from
third party financial data provider Bloomberg.
The levels of the fair value hierarchy and its application to financial assets and financial liabilities are described below:
Level 1: Quoted prices in active markets for identical assets or liabilities
Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e.
derived from prices)
Level 3: Valuations methods, with significant inputs not being based on observable market data
T&W Medical A/S 78
4.2 Financial risks and financial instruments (continued)
Offsetting, Master netting agreements and similar arrangements
DKKm
Counterparty A: Goldman Sachs
Derivate assets
Derivate liabilities
Net amount
Counterparty B: Jyske Bank
Derivate assets
Derivate liabilities
Net amount
Counterparty C: Nordea Bank
Derivate assets
Derivate liabilities
Net amount
Counterparty D: Danske Bank
Derivate assets
Derivate liabilities
Net amount
Counterparty E: Deutsche Bank
Derivate assets
Derivate liabilities
Net amount
Counterparty F: Mizuho Bank
Derivate assets
Derivate liabilities
Net amount
Counterparty G: Nykredit Bank
Derivate assets
Derivate liabilities
Net amount
--
--
- (12,7)
- (12,7)
2023/242024/25
22,4
(29,9)
(7,5)
3,0
(6,0)
(3,0)
29,9 23,1
(7,5) (7,5)
22,4 15,6
29,9 11,9
343,4 (140,2)
- -
- (43,2)
- (43,2)
313,5 (152,1)
(52,3) (121,5)
(52,3) (121,5)
22,0 23,5
-(33,0)
56,5 22,0
The Group enters into derivative transactions under International Swaps and Derivatives Association (ISDA) master netting
agreements/FX Payment Netting Agreements. In general, under such agreements the amounts owed by each counterparty on a
single day in respect of all transactions outstanding in the same currency are aggregated into a single net amount that is payable by
one party to the other. In certain circumstances – e.g. when a credit event such as a default occurs – all outstanding transactions
under the agreement are terminated, the termination value is assessed and only a single net amount is payable in settlement of all
transactions.
T&W Medical A/S 79
4.2 Financial risks and financial instruments (continued)
Price risk
Exposure
Sensitivity
DKKm
Increase of 10% (2023/24: 10%)
Decrease of 10% (2023/24: 10%)
The group’s exposure to equity securities price risk arises from investments held by the group and classified in the statement of
financial position or at fair value through profit or loss (FVTPL).
To manage its price risk arising from investments in equity securities, the group diversifies its portfolio. Diversification of the
portfolio is done in accordance with the limits set by the Board of Directors.
The table below summarises the impact of increases/decreases of the portfolios on the group’s equity and post-tax profit for the
period. The analysis is based on the assumptions that the portfolios had increased by 10%, or decreased by 10%, with all other
variables held constant.
The amounts recognised in profit or loss and other comprehensive income in relation to the various investments held by the group
are disclosed in note 5.9.
Impact on other
components of equityImpact on post-tax profit
(35)
35
2023/24
(48)
48
2024/25
(44)
44
2023/24
(61)
61
2024/25
T&W Medical A/S 80
4.3 Liabilities from financing activitie
s
DKKm Total
Liabilities at 1 October 2024 28.651
Proceeds from loans and borrowings 1.866
Transaction costs related to loans and borrowings -
Interest (paid)/received (2.256)
Repayment of loans and borrowings (4.694)
Payment of lease liabilities (366)
(5.450)
Accrued loan interest payable/(receivable) 1.835
Amortization of transaction costs 104
Effective changes in hedge accounting 37
Fair value loss on derivatives 15
Foreign exchange adjustments (417)
Other changes 1.156
25.931
Liabilities at 1 October 2023 30.985
Proceeds from loans and borrowings 28.564
Transaction costs related to loans and borrowings (380)
Interest (paid)/received (2.334)
Repayment of loans and borrowings (31.422)
Payment of lease liabilities (343)
(5.915)
Accrued loan interest payable/(receivable) 2.177
Amortization of transaction costs 746
Effective changes in hedge accounting 484
Fair value loss on derivatives 157
Foreign exchange adjustments (470)
Other changes 487
28.651
Accounting policies
Other financial assets (current and non-current)**
- 104
- - - (380)
(52)
- - 15
-
- 37
Total changes from financing cash flows
Liabilities at 30 September 2024
Total changes from financing cash flows
Liabilities at 30 September 2025
(2.263)
(4.694)
-
(5.091)
-
(5.949) -
2.460 -
27.224 30
(2.711) -
- (366)
- 82
Lease
liabilities
Loans and
borrowings
Interest
rate swaps
Derivates
relating to
financing
agreement
27.224
1.866
30 239 1.158
- - -
(441)
- 82 (75)
- - -
-
477 (100)
30.455 15 (596) 1.111
28.564 - - -
477 (443)
(31.422) - - -
- - - (343)
(283) -
746 - - -
(48) 15 - 520
239 1.158
(440) - - (30)
- - 484 -
- - 157 -
- - -
1.122 239 8 24.562
721 (22) - 457
(380) - 15
- (149) - 1.984
- -
Financial liabilities, other than derivatives, are initially recognized at fair value less transaction costs, and subsequently measured at
amortized cost using the effective interest method. Accordingly, the difference between the proceeds and the nominal value is
recognized in the consolidated statement of profit or loss over the term of the liability.
T&W Medical A/S 81
4.4 Financial income and expenses
DKKm
Interest income
Total interest income
Interest expenses
Total interest expenses
Other financial income/(expenses), net
Foreign exchange differences
Change in fair value of derivatives relating to financing arrangements
Others
Total
Accounting policies
2023/242024/25
338
(15)
(194)
453
24
(133)
338
(2.428)
(2.428)
194
453
(3.670)
(3.670)
52
(46)
Change in fair value of derivative financial instruments,
not designated as hedging instruments
22
73
243
Interest income and interest expense includes those generated from financial assets and financial liabilities not measured at fair value
through profit or loss. Interest expenses include DKK 37 million (2023/24: DKK 283 million included in interest income) related to
recycled amount from hedge accounting.
Financial income and expenses comprise interest income and expenses, gains and losses on securities, exchange rate adjustments on
receivables, payables and transactions denominated in foreign currencies, credit card fees, amortization and impairment of financial
assets other than trade receivables and contract assets and liabilities, gains and losses on derivative financial instruments not
designated as hedging instruments etc. Financial income and expenses include recycled amount from hedge accounting.
Interest income and expenses on financial assets and liabilities measured at amortized cost is recognized using the effective interest
method. Other financial income and expenses are recognized on an accrual basis in the period to which they relate.
T&W Medical A/S 82
5 Other disclosures
5.1 Remuneration of Key Management Personnel
DKKm
1 October 2024 - 30 September 2025
Board and Executive Management
Other Key Management
Total
1 October 2023 - 30 September 2024
Board and Executive Management
Other Key Management
Total
5.2 Share-based payments
Management Participation Program
Termination
benefits
Short-term
benefits
3
23
188
9
179
4
37
41
-
-
-
106
Total
Share-based
payments
26
7
60
67
30 52
9 - -
97 30 52
Other Key Management comprises the Executive Management and Board of Directors in WSA A/S.
Other Key Management previously held ordinary and preference shares in NH Lux ManCo SCSp. Please refer to Note 5.2 for details
of the program.
As of 2023/24, Other Key Management no longer hold shares in NH Lux ManCo SCSp.
Subsequent to WSA merger in 2019, the Group introduced the Management Participation Program (“MPP”). Certain members of
Other Key Management (“MPP Participants”) could acquire a minority partnership interest in NH Lux ManCo SCSp (“NHSCSp”),
which was controlled by North Harbour Lux TopCo S.a.r.l. (“TopCo”), a holding entity that is fully consolidated within WSA,
therefore indirectly having an ownership interest in the intermediate Group.
In 2023/24, the Value Creation Program (“VCP”) and Long-Term Incentive Program ("LTI") were introduced to incentivize Other
Key Management employees critical to increasing the equity value of the WSA Group. VCP is a one-time, cash-settled program, with
cash payouts determined based on a multiplier linked to the equity value of WSA and triggered by an exit event. The LTI program is
a cash-settled share-
b
ased award granting Performance Share Units ("PSU"), Restricted Share Units ("RSU") and Shadow Shares to
selected members of the management. Eligibility for payouts under both program is contingent upon continued employment with
WSA.
The fair value of the equity instruments on acquisition date was equivalent to the cost. The redemption price is dependent on the
leaver status at the time of redemption. The MPP Participants acquired ordinary shares, which rank pari passu in all respects, and
preference shares. The reacquisition of the ownership interests by TopCo is triggered upon the termination of employment of MPP
Participants. A corresponding liability is included in Other non-current liabilities, with reference to Note 3.10. The MPP program
has been unwinded in 2023/24, except for obligations related to Good Leavers, which will be settled upon an Exit event.
In 2024/25, the Chair and CEO of WSA A/S Group had invested into a subsidiary, WSA HoldCo Denmark Aps. The CEO acquired
99,659 shares at a purchase price of DKK 299,42 per share and the Chair purchased 123,152 share options with a strike price of
EUR 8.12.
T&W Medical A/S 83
5.2 Share-based payments (continued)
MPP liability ("MPP")
Outstanding at 1 October 2024
Reacquisition
Outstanding at 30 September 2025
Outstanding at 1 October 2023
Reacquisition
Outstanding at 30 September 2024
Value Creation Program (“VCP”)
VCP liability
Outstanding at 1 October 2024
Additions
Forfeited
Outstanding at 30 September 2025
Outstanding at 1 October 2023
Granted
Outstanding at 30 September 2024
Long-Term Incentive Program (“LTI”)
Performance Share Units (“PSU”)
Performance share units
Outstanding at 1 October 2024
Granted
Forfeited
30 September 2025
(29)
2
DKKm
82
Total fair value
(DKKm)
Total number
of shares (mil)
15
1
31
Number of shares
(mil)
2
(1)
-
509.238
-
97
(22)
75
-
82
82
-(42.706)
466.532
The fair value of the grants under the VCP was DKK 75 million at the grant date. The liability is remeasured at each reporting date
based on the estimated future payout, which is determined using a multiplier linked to the development of the Group’s equity value
and taking into account expected non-vesting due to resignations.
The share options for PSU and RSU were first granted on 14 January 2024 and 14 April 2024 respectively. These PSU and RSU
grants fully vests on 15 January 2026 and 15 January 2027 respectively. Subsequent PSU, RSU and shadow shares grants vest over
3 years.
The PSU is subject to non-market performance conditions based on key performance targets related to cumulative organic growth
over a two-year period. In 2024/25, the Group recognized costs of DKK 15 million in the profit or loss in connection with the PSU
program. The fair value has not been remeasured subsequent to the grant date. The costs are recognized on a straight-line basis
over the vesting period, as the related service is rendered.
T&W Medical A/S 84
5.2 Share-based payments (continued)
Restricted Share Units (“RSU”)
Restricted share units
Outstanding at 1 October 2024
Granted
Forfeited
30 September 2025
Shadow share program
Shadow Shares liability
1 October 2024
Expensed to the profit & loss
Fair value adjustments
30 September 2025
Accounting policies
Significant accounting estimates and judgments
22
(7)
15
-
Total number
of shares (mil)
Total fair value
(DKKm)
--
319.019 82
(13.255) -
305.764
DKKm
In 2024/25, the Group recognized costs of DKK 22 million in the profit or loss in connection with the RSU program. The fair value
has not been remeasured subsequent to the grant date. The costs are recognized on a straight-line basis over the vesting period,as
the related service is rendered.
In 2024/25, the Group granted 169,035 shadow shares with a fair value of DKK 45 million at the time of the grant. The
corresponding liability is recognized on a straight-line basis over the 3-years vesting period, as the service is rendered. The liability
is remeasured at each reporting date based on the fair value of the shadow shares. Fair value adjustments are recognized as staff
costs in the profit or loss. The liability is adjusted to take into account expected non-vesting due to resignations.
Cash-settled share-based payments are measured based on fair value of goods and services received, with a corresponding liability
recognised. Until the liability is settled, the Group remeasures the fair value of the liability at the end of each reporting period and
at the date of settlement, with any changes in fair value recognised in profit or loss for the period. The liabilities relating to VCP and
LTI are included in employee related liabilities under Other non-current liabilities.
For the share-based payment programs, Management estimates the likelihood of vesting conditions being met. Vesting is
contingent upon participants remaining employed until the end of the vesting period. These estimates are used to determine the
fair value of the share-based programs and are reviewed at each reporting date to reflect any changes in expectations.
The fair value of the shares granted under the LTI program is determined by computing the estimated equity value of the Group
divided by total number of diluted shares. The equity value was estimated as of 30 September 2025 by applying the adjusted average
Next Twelve Months (“NTM”) EV/EBITDA multiple of comparable peer groups to WSA’s consensus EBITDA and then adjusting for
net debt. In using the market-based EV/EBITDA multiple, the Group has applied relevant illiquidity discount and control premium
to reflect the difference in ownership structure between WSA and the comparable companies. The adjusted consensus EBITDA is
based on Management’s best estimates and most recent financial budgets for the coming year as approved by the Board.
T&W Medical A/S 85
5.3 Pension obligations
Defined benefit plans
Germany:
U.S.:
Post-employment benefits provided by the Group are organized primarily through defined contribution plans as well as defined
benefit plans which cover almost all of the Group’s domestic employees and many of the Group’s foreign employees. Post-
employment defined benefit plans include to the major extent pension benefits.
General principles are determined in a corporate pension policy. That means inter alia that the Group regularly reviews the design
of its post-employment defined benefit plans. In order to reduce Group’s exposure to certain risks associated with defined benefit
plans, such as longevity, inflation, effects of compensation increase, the Group regularly review and continuously improves the
design of its post-employment defined benefit plans. The benefits of the defined benefit plan open to new entrants are based
predominantly on contributions made by the Group and are still affected by longevity, inflation adjustments and compensation
increases, but only to a lesser extent. The major pension plans are funded with assets in segregated pension entities.
The existing defined benefit plans cover approximately as of 30 September 2025 – 3,803 participants, including 2,604 active
employees, 704 former employees with vested rights and 495 retirees and surviving dependents (2023/24: 3,870 participants,
including 2,704 active employees, 714 former employees with vested rights and 452 retirees and surviving dependents). Individual
benefits are generally based on eligible compensation levels and/or ranking within the Group's hierarchy and years of service. The
characteristics of the defined benefit plans and the risks associated with them vary depending on legal, fiscal and economic
requirements in each country. For the major defined benefit plans of the Group the characteristics and risks are as follows:
In Germany, the Group provides pension benefits through the cash-balance plan BSAV (Beitragsorientierte Siemens
Altersversorgung), frozen legacy plans and deferred compensation plans. Active employees in Germany participate in the BSAV
introduced in fiscal 2004. A legacy pension plan (Altzusage) has been transformed into BSAV.
These benefits are predominantly based on contributions made by the Group and returns earned on such contributions, subject to a
minimum return guaranteed. In general, the BSAV is fully funded from the Group's perspective. Sivantos GmbH has set up a CTA
(Contractual Trust Arrangement) in order to take precautions of financing all of its BSAV pension obligations, including the Group.
Individual benefits under the frozen legacy plans are based on eligible compensation levels or ranking within the Group's hierarchy
and years of service. In connection with the implementation of the BSAV, benefits provided under the frozen legacy plans were
modified to substantially eliminate the effects of compensation increases by freezing the accretion of benefits under the majority of
these plans. However, these frozen plans still expose the Group to actuarial risks such as investment risk, interest rate risk and
longevity risk. Furthermore, deferred compensation plans are offered which are funded via a CTA. In Germany no legal or
regulatory minimum funding requirements apply. The Trust which is legally separate manages its plan assets as trustee in
accordance with the respective trust agreements.
The assets under these pension plans are administered by the Group and are, therefore, the sole responsibility of the Group. The
assets are not separately identifiable; instead the companies had a common right to the trusts' assets. One major defined benefit
plan, the Sivantos Pension Plan, is frozen to new entrants and accretion of new benefits. Employees hired prior to April 1, 2006
participate in the Sivantos Pension Plan. Most of the defined benefit plan participants' benefits are calculated using a cash balance
formula; although a small group of participants are eligible for a benefit based on a final average pay formula. This frozen defined
benefit plan exposes the Group to actuarial risks such as investment risk, interest rate risk and longevity risk.
T&W Medical A/S 86
5.3 Pension obligations (continued)
DKKm
30 September 2025
Germany
U.S.
Others
Total
30 September 2024
Germany
U.S.
Others
Total
DKKm
Current service cost
Net interest expenses
Remeasurement (gains)/losses on defined benefit obligations
Foreign exchange adjustments
194
463
Total
Fair value of plan
assets
Defined benefit
obligations
(418)
(209)
45
(15)
(45)
(15)
(410) 440 30
(75)
(702)
30
687
(701) 671 (30)
2023/242024/25
(224) 209 (15)
(67) 22 (45)
Defined benefit costs recognized in the consolidated statement of
profit or loss
Return on plan assets (excluding amounts included in net interest income
and expenses)
Remeasurements of defined benefit plans recognized in
the consolidated statement of comprehensive income
22
-
22
(7)
(8)
-
(15)
22
-
22
(67)
52
-
(15)
The defined benefit plan assets are held in a Master Trust. The Group, as the sponsoring employer, has delegated investment
oversight of the plans' assets to the Investment Committee. The Investment Committee members have a fiduciary duty to act solely
in the best interests of the beneficiaries according to the trust agreement and U.S. law. The Committee has established an
Investment Policy Statement which articulates the goals and objectives of the plans' investment management, including
diversifying the assets of the Master Trust with the intention of appropriately addressing concentration risks. The trustee of the
Master Trust acts only by direction of the Investment Committee. It is responsible for the safekeeping of the trust, but generally has
no decision-making authority over the plan assets. The legal and regulatory framework for the plans is based on the applicable U.S.
legislation Employee Retirement Income Security Act (ERISA). Based on this legislation a funding valuation is prepared annually.
There is a regulatory requirement to maintain a minimum funding level of 80% in the defined benefit plans in order to avoid
benefit restrictions.
The amounts included in the Group's consolidated statement of financial position arising from its pension obligations at 30
September are as follows:
The Group has reported DKK 127 million (2023/24: DKK 97 million) of assets for deferred compensation plan under Note 3.6,
which are used to fund the pension obligations.
The following table show the total defined benefit cost that was recognized in profit or loss account and other comprehensive
income at the end of the reporting period.
T&W Medical A/S 87
5.3 Pension obligations (continued)
DKKm
Change in defined benefit obligations:
Defined benefit obligation at 1 October
Current service cost
Interest expenses
Contributions paid
Net accumulated actuarial (gains)/losses
Benefits paid
Foreign exchange adjustments
Defined benefit obligation at 30 September
Change in plan assets:
Fair value of plan assets at 1 October
Interest income
Contributions paid
Benefits paid
Employer contributions
Foreign exchange adjustments
Fair value of plan assets at 30 September
Plan assets comprise of the following:
Investment funds
Cash and cash equivalents
Total
Quoted
Unquoted
Total
Actuarial assumptions
Germany Heubeck Richttafeln 2005G (modified)
U.S. RP-2014 Employee and Healthy Annuitant Tables projected with Scale MP-2015 for all years
649
22
687
(15)
701
2024/25 2023/24
Remeasurement (Return on plan assets excluding amounts included in net
interest income and expenses)
671
22
8
(37)
-
701
30
-
52
(37)
701
22
22
-
(7)
687
619
30
67
-
(37)
7
(15)
671
664
7
671
664
7
671
642
45
687
642
45
-
(22)
8
-
Assumed discount rates, compensation increase rates, pension progression rates and mortality rates used in calculating the defined
benefit obligations ("DBO") vary according to the economic and other conditions of the country in which the retirement plans are
situated.
The mortality tables used for the actuarial valuation of the DBO were as follows (most significant countries):
The DBO was only significantly affected by other financial assumptions in Germany and U.S. For Germany, the long-term rate of
compensation increase and the pension increase rate were constant on average in financial year 2025 and 2024. For U.S., the DBO
was mainly affected by the discount rate as the plan is frozen to new entrants and accretion of new benefits.
T&W Medical A/S 88
5.3 Pension obligations (continued)
DKKm
Discount rate
Future salary growth
Expected pension progression
DKKm
Males
Females
Males
Females
U.S.
3.57%
2.25%
1.83%
Germany U.S. Germany U.S.
2024/25 2023/24
4.94%
N/A
3.00%
3.30% 4.65%
1.5% N/A
2.00% 3.00%
Longevity at age 55 for
current pensioners
Longevity at age 55 for
current pensioners with 10%
reduction in mortality rates
157
179
2024/25 2023/24
Germany U.S. Germany
164 224 157 224
187 239 186 239
216
231
149 216
179 231
The DBO is also affected by assumed future inflation rates. The effect of inflation is recognized within the assumptions above where
applicable.
The following were the principal actuarial assumptions at the reporting date (expressed as weighted averages).
Assumptions regarding future mortality have been based on published statistics and mortality tables. The current longevities
underlying the values of the DBO at the reporting date were as follows:
The weighted-average duration of the DBO was 7.0 years at 30 September 2025 (2023/24: 10.0 years).
Although the analysis does not take account of the full distribution of cash flows expected under the plan, it does provide an
approximation of the sensitivity of the assumptions shown.
T&W Medical A/S 89
5.3 Pension obligations (continued)
Sensitivity analysis
DKKm
Germany
Discount rate
Rate of pension progression
Life expectancy
U.S.
Discount rate
Accounting policies
Defined contribution plans
Defined benefit plans
0.5% increase 0.5% decrease 0.5% increase 0.5% decrease
(1) (2) 2
2024/25 2023/24
1
(1)
(1)
1
(1)
1
1
-1 year +1 year
0.5% increase 0.5% decrease
1 (1)
(1) 1
(1) 1
-1 year +1 year
0.5% increase 0.5% decrease
As the significant part of the DBO results from the German and U.S. entities, the sensitivity analysis were as follows:
The Group expects to pay DKK 52 million (2023/24: DKK 52 million) in contributions to its defined benefit plans in the upcoming
financial year.
The Group operates a number of defined contribution plans around the world. These plans are externally funded in entities, e.g.
insurance entities, that are legally separate from the Group. Contributions to defined contribution plans are recognized in the
consolidated statement of profit or loss in the year to which they relate.
The Group also operates defined benefit plans in a few jurisdictions, primarily in Germany and the USA.
The liability and costs for the year for defined benefit plans are determined using the projected unit credit method. This reflects
services rendered by employees to the valuation dates and is based on actuarial assumptions regarding future compensation and
benefit increases, mortality, expected return on plan assets and discount rates. Discount rates are based on average market yields of
high-quality corporate bonds in the country and/or currency in which the pension liabilities are expected to be settled.
Current service cost, past service cost and settlements for post-employment benefits as well as other administration costs whichare
unrelated to the management of plan assets are recognized in the consolidated statement of profit or loss and allocated among
functional costs, following the functional area of the corresponding profit and cost centre. Administration costs which are related to
the management of plan assets and taxes directly linked to the return on plan assets and payable by the plan itself are includedin
the return on plan assets and are recognized in other comprehensive income.
Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are recognized in other
comprehensive income in the period in which they arise. Past service costs are recognized immediately in the consolidated
statement of profit or loss.
For unfunded plans, the Group recognizes a post-employment liability as non-current liability. For funded plans, the Group offsets
the fair value of plan assets with the benefit obligations, and recognizes the net amount, after adjustments for effects relatedto any
asset ceiling, as a non-current liability or other current assets.
T&W Medical A/S 90
5.4 Contingent assets and liabilities
Guarantees
Outstanding lawsuits and disputes
5.5 Investments in associates
DKKm
Cost beginning of year
Reclassification*
A
dditions
Disposal
Cost end of year
Revaluations beginning of year
Impairment losses
Dividend
Reversal of disposals
Other adjustments
Reclassification*
Revaluations end of yea
r
Set-off agains receivables
Carrying amount end of year
136
1 (1)
(108) (159)
327 217
(27)
2024
/
25 2023
/
24
247
30
299 247
(159) (118)
(4)
(5)
28
(10)
(3)
286
-
(45)
129
(55)
6 77
31 -
*Related to the reclassification of Core Bolig VIII Investoraktieselskab Nr. 14 from investment in subsidiaries to associates.
The Group has issued Corporate Guarantees, mainly to the business partners, outstanding for an amount of DKK 149
million at 30 September 2025 (2024: DKK 351 million). None of the outstanding guarantees are likely to be drawn, hence
no provisions have been made.
The Group is, from time to time, subject to legal disputes in connection with its business activities. In the light of the number of
legal disputes and proceedings in which the Group is involved, it cannot be ruled out that some of these proceedings could result in
rulings against the Group. Although the Group maintains liability insurance in its non-amounts the Group considers consistent
with industry practice, it may not be fully insured against all potential damages that may arise out of any claims to which the Group
may be party in the ordinary course of the Group’s business. At this time, however the Group does not expect any significant
negative effects on the Group’s financial position or finance and earnings situation resulting from legal disputes.
The Group seeks to make adequate provisions for any legal disputes and proceedings, and assesses the likely outcome in which the
Group is involved.
Commitments to Capital Contributions
The Group has committed to making contributions in Other securities and equity investments. At the balance sheet date, remaining
obligations amount to DKK 888 million (last year DKK 1,014 million).
The company has committed to making contributions to subsidiaries related to PE funds. At the balance sheet date, remaining
obligations amount to DKK 43 million (last year DKK 48 million).
T&W Medical A/S 91
5.5 Investments in associates (continued)
Accounting policies
5.6 Non-cash adjustments
DKKm
Unrealized gain on foreign currency translation
Financing expenses
Others
Total
5.7 Fees to auditors appointed at the annual general meeting
DKKm
1 October 2024 - 30 September 2025
Audit fees
Other assurance related services
Tax services
Other services
Total
1 October 2023 - 30 September 2024
Audit fees
Other assurance related services
Tax services
Other services
Total
(127)
(171)
22
(45)
(194)
2023/242024/25
(336)
90
119
14
3
5
2
24
Group
16
1
15
8
40
Associates are those entities in which the Group has significant influence but not control or joint control over the financial and
operating policies. A joint venture is an arrangement in which the Group has joint control over the financial and operating policies,
and where the Group has rights to the net assets of the arrangement, rather than rights to its assets and obligations for its liabilities.
Investments in associates and joint ventures are accounted for using the equity method. This entails that the investments
are initially recognised at cost and adjusted thereafter to recognise the Group’s share of the profit or loss and other
comprehensive income of the associate or joint venture calculated in accordance with the Group’s accounting policies.
When the Group’s share of losses of an associate or joint venture exceeds the Group’s interest in such associate or joint
venture, the Group discontinues recognising its share of future losses. Additional losses are recognised only to the extent
that the Group has incurred legal or constructive obligations or made payments on behalf of the associate or joint venture.
In 2024/25, PricewaterhouseCoopers was appointed as the Group's auditor, preceeding Deloitte who served as the Group’s auditor
for the previous financial year.
T&W Medical A/S 92
5.8 Related parties
Transactions with related parties
DKKm
Transactions with shareholders
- Loans from related parties
- Interest on loans
Transactions with associates
- Sales of goods and services
Other related parties
- Purchase of goods and services
Transactions with related individuals
(37)
1.471
42
7
(67)
2023/242024/25
213
32
-
Related parties include group entities controlled by T&W Medical A/S as well as associates.
In addition to the related party disclosure that is disclosed elsewhere in the financial statements, the following significant
transactions between the Group and its related parties took place at terms agreed during the fiscal year.
As at 30 September 2025, the outstanding balances with the associated are DKK 52 million (30 September 2024: DKK
66 million).
The Group's Executive management is defined as those persons, who are responsible for the Group's worldwide operating business,
based on their function within the Group or the interests of WSA A/S and registered directors in the parent company. In financial
years ended 30 September 2025 and 30 September 2024, there were no significant, material or major transactions between the
Group and members of the Executive Management and Board, other than their remuneration and transactions towards the
participation program. For information about remuneration to Executive Management and Board refer to Note 5.1.
T&W Medical A/S 93
5.9 Companies in the T&W Medical A/S Grou
p
Company
Subsidiaries of WSA A/S
T&W Holding A/S
Core Bolig VIII nr. 14
TWI II ApS
Vipic ApS
CN8 A/S
WSA A/S (formerly WS Audiology A/S)
Nymøllevej ApS
UNEEG medical A/S
UNEEG Medical DE GMBH
UNEEG Medical US Inc.
UNEEG Medical UK Ltd.
UNEEG Medical AT GmbH
Cebreo Medical A/S (formerly T&W Engineering A/S )
Twings ApS
Nabto ApS (disposed during 2024/25)
Optheras Holding ApS
Optheras A/S
Freuden Holding AG (Under liquidation)
NoloSight ApS (ProPET ApS)
FH af 11/12 2023 ApS (acquired during 2024/25)
Other equity investments of T&W Medical A/S
Corit Advisory P/S
Human Bytes ApS
O2matic ApS (acquired during 2024/25)
T&W miLINQ ApS
Other equity investments of T&W Holding A/S
Celvivo ApS
Celvivo Inc.
Din HøreSpecialist
EnViAc Komplementar ApS
EnViAc P/S
Kjøbenhavns Boligejendomsselskab A/S
Østergaard & Co. ApS
Subsidiaries of WSA A/S
WSA HoldCo Denmark ApS
North Harbour Topco S.à.r.l. (1)
North Harbour Midco S.à.r.l.
Auris Luxembourg II S.A. (1)
Auris Luxembourg III S.à.r.l.
WS Audiology A/S (formerly Widex A/S)
Hear.com N.V. (2)
20
23,02
50
52,93
50
50
23,02
20
72
100 100
100 -
24,14 -
39,40 41,03
39,40 41,03
100
100
100 100
-
52,9
25 25
25 25
25,97 43,1
100 100
- 100
99 99
- 100
- 100
40 40
50
8,74,65
43,35 43,35
100 100
99,59 99,6
100 100
69,45 100
58 58
85 85
100 100
2023/24
Equity
Interest %
2024/25
Equity
Interest %Country
100 100
100 100
100 100
100 100
- 57,02
60,78 56,7
100 100
Denmark
Denmark
Austria
Denmark
Denmark
Denmark
Denmark
Denmark
Denmark
Denmark
Denmark
Denmark
Denmark
Denmark
Denmark
Denmark
Germany
USA
UK
Denmark
Denmark
Denmark
Denmark
Germany
Denmark
Denmark
Denmark
Denmark
Denmark
Denmark
Denmark
Denmark
Luxembourg
Luxembourg
Luxembourg
Luxembourg
Denmark
Netherlands
List of the Group’s companies included in the consolidated financial statements:
T&W Medical A/S 94
5.9 Companies in the T&W Medical A/S Group (continued)
Company
Subsidiaries of WS Audiology A/S
EMEA
WSAUD A/S
Widex DK A/S
Sivantos A/S (3)
WS Audiology Benelux BV
Hear.com N.V. (2)
Clermont Distribution SAS
Widex S.A.S
Signia S.A.S (3)
Biotone Technologie SAS (3)
Bloom Hearing Specialists Ltd.
Bonavox Limited
Bloom Hörakustik AG (4)
WS Audiology Switzerland AG
WS Audiology Germany GmbH (14)
Sivantos GmbH
Widex Hörgeräte GmbH (14)
WS Audiology Sweden AB (formerly Widex AB)
Widex OOO LLC (dormant)
Widex Norge AS
Sivantos AS
Widex-Reabilitacão Auditiva Lda.
WSA Portugal S.A.
WSA Rus LLC
Widex Akustik OY (5)
WS Audiology CZ s.r.o.
Widex Tibbi ve Teknik Chihazlar San.ve Tic. AŞ
Widex Trading d.o.o Ljubljana
Slušni Aparati d.o.o. Widex Ljubljana
WS Audiology-H Kft
Audiofon Kft
WS Audiology Italia S.r.l.
WS Audiology Slovakia s.r.o
Widex Slušni Aparati d.o.o.
ReOton Ltd
Koalys Technologies Ltd
Shoebox France SARL
Koalys Poland Sp z.oo
Widex Poland Sp z.oo (5)
WS Audiology Austria GmbH
100 100
100 -
100 100
100 100
60 60
100 100
100 100
100 100
60 60
100 100
100 100
-60
100 100
84 84
100 100
100 100
100 100
- 100
100 100
100 100
100 100
100 100
100 100
100 100
100 100
100 100
100 100
100 100
- 100
100 100
100 100
100 100
2023/24
Equity
Interest %
100
100 100
100 -
100 100
100 -
100 -
100 100
100
Country
2024/25
Equity
Interest %
Denmark
Denmark
Denmark
Netherlands
Netherlands
France
France
France
France
UK
Ireland
Switzerland
Switzerland
Germany
Germany
Germany
Sweden
Russia
Norway
Norway
Portugal
Portugal
Russia
Finland
Czech Republic
Türkiye
Slovenia
Slovenia
Hungary
Hungary
Italy
Slovakia
Bosnia
Ukraine
Israel
France
Poland
Poland
Austria
T&W Medical A/S 95
5.9 Companies in the T&W Medical A/S Group (continued)
Company
Americas
Helix Hearing Inc.
WS Audiology USA, Inc.
WS Audiology USA II LLC
WS Audiology Chile SpA
Widex Uruguay
COW-Audición en Alta Definición S.A. de C.V
Widex Argentina S.A
Centro Auditivo Widex Brasitom Ltda (7)
Communicare Aparelhos Auditivos Ltda
WS Audiology Solucuoes Auditiva Ltd.
Qualiaudio Comercio e Distribuicao Ltda (7)
Communicare Aparelhos Auditivos Ltda
APAC
Sivantos Holding Singapore Pte. Ltd.
Sivantos Pte. Ltd.
Widex Singapore Pte Ltd
Widex Hearing Aid Sdn Bhd
Bloom Hearing Co. Ltd.
Widex Co. Ltd. (8)
WS Audiology Japan K.K. (formerly Sivantos K.K.) (8)
Hearing Express K.K.
WS Audiology (Shanghai) Co., Ltd
Suzhou FenBei Medical Equipment Co. Ltd.
Hangzhou V Hearing Medical Equipment Co. Ltd.
Zhejiang Longkang Medical Equipment Co. Ltd.
Hangzhou Miaoyin Medical Equipment Co. Ltd
Widex India Private Ltd.
Widex Australia Pty. Ltd. (in the progress of being deregistered)
Active Hearing Pty. Ltd. (9)
Hearclear Audiology Pty. Ltd. (10)
Hutchinson Audiology Clinics Pty Ltd
Bloom Hearing Ltd.
Active Hearing Pty. Ltd. (9)
Hutchinson Audiology Clinics Pty Ltd
Bloom Hearing Ltd
Widex Hong Kong Hearing & Speech Centre Ltd.
Starry Hearing & Speech Centre Ltd.
2024/25
Equity
Interest %
2023/24
Equity
Interest %
- 100
100 100
51 51
100 -
51 51
51 51
100 -
100 100
100 100
100 100
100 100
51 51
- 100
- 100
100 100
100 -
100 100
- 100
- 100
- 100
100 100
100 100
51 51
100 100
100 100
51 51
100 100
46 46
100 -
Brazil
Canada
Country
USA
USA
Chile
Uruguay
Mexico
Argentina
Brazil
Brazil
Brazil
Brazil
Singapore
Singapore
Singapore
Malaysia
Japan
Japan
Japan
Japan
China
China
China
China
China
India
Australia
Australia
Australia
Australia
New Zealand
Australia
Hong Kong
Hong Kong
100
100 -
100 -
Australia
New Zealand
65
100
-
- 100
- 100
100
65
T&W Medical A/S 96
5.9 Companies in the T&W Medical A/S Group (continued)
Company
Subsidiaries of Sivantos GmbH
EMEA
AS-AUDIO SERVICE GmbH (14)
Signia GmbH (14)
WS Audiology Poland Sp. Z.o.o. (formerly Sivantos Sp. z o.o.)
Signia S.A.S. (3)
WS Audiology Limited (11)
Widex UK Ltd. (11)
Americas
WS Audiology USA, Inc.
Lifestyle Hearing Corporation (USA), Inc. (15)
Helix Hearing Care (California) Inc.
My Hearing Centers LLC
Helix Hearing Care Naples LLC (6)
The Hearing Center of ENTA LLC
Medical Hearing Systems LLC
Widex USA Inc. (16)
Audiology Distribution, LLC
HearUSA IPA, Inc.
HearX West, LLC
HearX West, Inc.
Helix Hearing Care (California) Inc.
My Hearing Centers LLC
Medical Hearing Systems LLC
The Hearing Center of ENTA LLC
TruHearing, Inc.
TruHearing IPA LLC
TruTPA LLC
Hearing Care Solutions, Inc
HCS NY IPA, LLC
Hear in America LLC (12)
WS Audiology Canada Inc (13)
Shoebox Ltd (13)
WS Audiology South Africa Pty Ltd
APAC
Sivantos India Pvt. Ltd
WS Audiology ANZ Pty Ltd
100
100
100
60
100
100
-
100
-
100
100
2024/25
Equity
Interest %
100
-
100
100
100
100
-
100
100
-
100
2023/24
Equity
Interest %
50 50
50 50
100 -
100 -
70 -
-70
- 100
100 100
100 100
-60
-60
- 100
- 100
- 100
54 54
100 100
100 100
100 100
- 100
100 100
- 100
Country
Germany
Germany
Poland
France
UK
UK
Canada
Canada
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
WS Audiology (Suzhou) Co.,Ltd. (formerly Sivantos (Suzhou)
Co., Ltd.) China
South Africa
India
Australia 100
100 100
100
T&W Medical A/S 97
5.9 Companies in the T&W Medical A/S Group (continued)
Company
Subsidiaries of Sivantos Pte. Ltd.
EMEA
Sivantos A/S (3)
Oorwerk B.V.
Oorwerk den Haag B.V. (4)
Hoortechnish Centrum Schagen B.V (4)
Sivantos Isitme Cihazlari Sanayi Ve Ticaret A.S.
Sivantos Europe GmbH (under liquidation) (14)
Bloom Hörakustik GmbH
WS Audiology Spain S.A.
Sivantos (RUS) LLC (under liquidation)
Biotone Technologie SAS (3)
Americas
WS Audiology Mexico S.A. de C.V.
APAC
WS Audiology Japan K.K. (formerly Sivantos K.K.) (8)
Hearing Express K.K.
WS Audiology Korea Limited
WS Audiology Philippines Corp.
WS Audiology SEA Pte. Ltd.
Subsidiaries of Hear.com N.V.
Hear.com Korea Limited
Soundrise Hearing Solutions Private Limited
hear.com USA Parent LLC
hear.com, LLC
audibene GmbH (14)
audibene GmbH
audibene B.V.
Audiocare Hearing Experts Malaysia Sdn. Bhd. (under liquidation)
Ihre Hörgeräte Beratung GmbH (14)
Hear.com – Simply Good Hearing Inc (dormant)
hear.com (Pty) Ltd.
Other equity investments
Hearing Instrument Manufacturers Software Association A/S
HIMSA II A/S
HIMSA II K/S
100100
100
100
100
100
100
-
-
100
-
100
100
100
-
-
100
100
100
25
100
100
100
100
100
100
100
100
100
100
100
100
100
100
20 20
17 17
100 100
100 100
100 100
100 100
100 100
100 100
25
Denmark
Netherlands
Netherlands
Netherlands
Türkiye
Germany
Country
100
- 100
100 100
100 100
2024/25
Equity
Interest %
2023/24
Equity
Interest %
100
100
Germany
Switzerland
Netherlands
Malaysia
Austria
Spain
France
Mexico
Japan
Japan
Korea
Philippines
Russia
Germany
Canada
South Africa
Denmark
Denmark
Denmark
Singapore
Korea
India
USA
USA
T&W Medical A/S 98
5.9 Companies in the T&W Medical A/S Group (continued)
Company
HIMPP A/S
K/S HIMPP
D Med Hearing Center Ltd.
Kanto Hochouki Co., Ltd. (5)
Sound Advice Hearing Ltd.
Widex Colombia SAS
Non-controlling interests
Summarised statement of financial position
Current assets
Current liabilities
Current net assets
Non-current assets
Non-current liabilities
Non-current net assets
Net assets
Accumulated NCI
30
49
-
38
9
13
2024/25
Equity
Interest %
25
49
30
13
9
38
2023/24
Equity
Interest %Country
T&W Holding A/SWSA A/S
2023/242024/252023/242024/25
Japan
UK
Columbia
Denmark
Denmark
Thailand
5.565
5.886 5.573
5.916
2.116
374
4.640
1.614
32.011
3.0261.742(343) 321
23.574
32.182
27.244
2.700
31
2.910
20
8.758 4.595 4.411 5.916
8.437 4.938 2.669 2.890
5.6414.2062.6034.961
1) North Harbour Topco S.à.r.l. and Auris Luxembourg II S.à.r.l. were dissolved and subsequently North Harbour Midco S.à.r.l. and its subsidiaries
were transferred to WSA HoldCo Denmark ApS during 2024/25.
2) Hear.com N.V. was transferred to WS Audiology A/S during 2024/25.
3) Sivantos A/S, Signia S.A.S. and Biotone Technologie SAS were transferred to WS Audiology A/S during 2024/25.
4) Bloom Hörakustik AG, Oorwerk den Haag B.V. and Hoortechnish Centrum Schagen B.V were liquidated during 2024/25.
5) Widex Akustik OY, Widex Poland Sp. Z.o.o, Kanto Hochouki Co., Ltd. and Instituto Auditivo Widex C.A. were disposed during 2024/25.
6) Helix Hearing Care Naples LLC was dissolved during 2024/25.
7) Centro Auditivo Widex Brasitom Ltda and Qualiaudio Comercio e Distribuicao Ltda were merged into WS Audiology Solucuoes Auditiva Ltd. and
subsequently Communicare Aparelhos Auditivos Ltda. were also transferred to WS Audiology Solucuoes Auditiva Ltd. during 2024/25.
8) Widex Co., Ltd. was merged into WS Audiology Japan K.K and subsequently WS Audiology Japan K.K was transferred to WS Audiology A/S during
2024/25.
9) Active Hearing Pty. Ltd. and its subsidiaries were transferred to WS Audiology A/S during 2024/25.
10) Hearclear Audiology Pty. Ltd. was deregistered during 2024/25.
11) Widex UK Ltd. was merged into WS Audiology Limited during 2024/25.
12) Hear in America LLC was wound up during 2024/25.
13) Shoebox Ltd was merged into WS Audiology Canada Inc during 2024/25.
14) With reference to Section 264 (3) of the German Commercial Code (HGB), WS Audiology A/S will guarantee for any commitment made by its
German subsidiaries for the financial year 2024/25.
15) Lifestyle Hearing Corporation (USA), Inc. was merged into Audiology Distribution, LLC and all its subsidiaries were subsequently transferred to
Audiology Distribution, LLC during 2024/25.
16) Widex USA Inc. was merged into WS Audiology USA, Inc. during 2024/25.
Set out below is summarised financial information for each subsidary that has non-controlling interests that are material to the
group. The amounts disclosed for each subsidary are before intercompany eliminations.
T&W Medical A/S 99
5.9 Companies in the T&W Medical A/S Group (continued)
Summarised statement of comprehensive income
Revenue
Profit for the period
Other comprehensive income
Total comprehensive income
Profit allocated to NCI
Dividends paid to NCI
Summarised cash flow
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing acitivities
Net increase/(decrease) in cash and cash equivalents
Transactions with non-controlling interests
There has been no material transactions with non-controlling interests during 2024/25.
5.10 Significant events after the balance sheet dat
e
5.11 Approval of the consolidated financial statements
2024/25 2023/24
19.239 19.672 - -
(246) (336) - -
30 (8.743) 170 99
WSA A/S T&W Holding A/S
2024/25 2023/24
(5.143) 162 94
45 37 610 0
(216) (9.079) 170 99
74 (67) 1 (70)
2.894 2.186 305 160
(709) (642) (7) 263
(2.111) (1.611) (297) (493)
(123)
On 1 October 2025, T&W Medical A/S purchased 100% of the share capital in GSA Invest A/S and purchased 43.15% of the shares
in T&W Holding A/S, increasing the ownership share from 4.6% at 30 September 2025 to 47.75%. The total purchase price
amounts to DKK 2,407 million.
On 26 February 2026, T&W Medical A/S participated in a capital increase in Uneeg Medical A/S, by which a receivable amount of
DKK 131 million was converted to shares.
All material events that have arisen after the balance sheet date have been included and properly disclosed in the Financial
Statements, and no other events after the balance sheet date have been identified which materially affect the Financial Statements.
The financial statements of T&W Medical A/S were approved by the Board of Directors and authorised for issue on 23 March 2026.
T&W Medical A/S
Parent financial statements for the
year ended September 2025
T&W Medical A/S 101
Statement of
p
rofit or loss
For the financial year ended 30 September 2025
DKKm
Notes
Gross profit
Selling and general admin expenses
Operating profit/(loss)
Income/(loss) from group enterprises
3.2
Income/(loss) from associate investments
3.3
Interest income
Interest expenses
Other financials net
Profit/(loss) before tax
Tax on profit/(loss)
2.1
Net profit/(loss) for the year
Statement of comprehensive income
Profit/(loss) for the year
Items that may be reclassifised subsequently to profit or loss
Share of other comprehensive income in group enterprises, net
Other comprehensive income for the year, net of tax
Total comprehensive income for the year
6 5
2
(572)
(4.400) (250)
-
57
22
120
(369)
(25)
(4.768)
(640) (4.956)
(104) (177)
(536) (4.779)
(104) (177)
Restated
2023/242024/25
(61) (96)
(11)
(4.779)
36
(536)
(340)
(102) (66)
T&W Medical A/S 102
Statement of financial position
As at 30 September 2025
DKKm Notes
Non-current assets
Property, plant & equipment 3.1
Investments in group enterprises 3.2
Investments in associates 3.3
Deferred tax asset
Other non-current financial assets 3.4
Total non-current assets
Current assets
Intragroup receivables
Current income tax receivables
Other current financial assets
Other current assets
Cash and cash equivalents
Total current assets
Total assets
15 -
134 698
5.479 8.205
39 27
50 17
3
187 112
Restated
2023/242024/25
16
5.703 8.948
1 1
1 11
9.162 5.835
1
132
-
214
T&W Medical A/S 103
Statement of financial position
As at 30 September 2025
DKKm Notes
Equity and liabilities
Share capital 4.1
Retained earnings
Other reserve
s
Total equity
Non-current liabilities
Long-term debts 4,3
Intragroup payables
Other non-current liabilities
Total non-current liabilities
Short-term debts
Intragroup payables
Trade payables
Other current liabilities
Total current liabilities 4,3
Total liabilities
Total equity and liabilities
1
2.456
2.040
1.406
1.950
1.891
3.944
5.835 9.162
1.994
6.706
13
516
7 5
6 8
-
- 1.465
Restated
2023/242024/25
6.693 1.950
564 564
1.867
(79) 25
-
-
4.652
T&W Medical A/S 104
Statement of chan
g
es in e
q
uit
y
For the financial year ended 30 September 2025
DKKm
Equity at 1 October 2023, as previously stated
Impact of prior period error
Equity at 1 October 2023, as restated
Profit/(loss) for the period (restated)
Other comprehensive income, net
Other transactions*
Equity at 30 September 2024 (restated)
Profit for the period
Other comprehensive income, net
Other transactions*
Equity at 30 September 2025
DKKm
Equity at 1 October 2023, as previously stated
Impact of prior period error
Equity at 1 October 2023, as restated
Profit/(loss) for the period (restated)
Other comprehensive income, net
Other transactions*
Loss for the year (restated)
Equity at 30 September 2024 (restated)
Profit for the period
Other comprehensive income, net
Other transactions*
Equity at 30 September 2025
* Dilution effect from capital increase in subsidiaries
(798) (798)
6.465 7.231
- - - -
-
-
(9)
Retained
earnings Total equity
- -
564
1.406 1.891
(536) (536)
- (104)
75 75
979 979
1.867 2.456
5.667 6.433
(4.779) (4.779)
- (177)
(718) (718)
(28) (23) (28)
(19)
- -
- - -
- - (95)
564
(23) 67
-
Other
reserves
(194)
564 (28) 55
- -
Hedging
reserve
175
-
Foreign
exchange
adjust-
ments
564 (28) 55 175
- - -
Share
capital
- 5 12
T&W Medical A/S 105
Statement of cash flows
For the financial year ended 30 September 2025
DKKm
Notes
Profit/(loss) for the year
Income from group enterprises
3.2
Income from associate investments
3.3
Interest expenses, net
Depreciation
3.1
Tax on profit/(loss)
2.1
Cash flow from operating activities before changes in working-capital
Change in current assets
Change in trade payables
Change in other assets/liabilities
Cash flow from operating activities before financial items and tax
Financial income received
Income tax paid
Cash flow from operating activities
Acqusitions of companies
Dividend received
Investments in other assets, net
Cashflow used in investing activities
Cash flow from operating and investing activities
Proceeds from long-term & short-term debt
Repayments of long-term & short-term debt
Financial expenses, paid
Change in intercompany balances
Cash flow from/(used in) financing activities
Net cash flow
Cash and cash equivalents, beginning of period
Cash and cash equivalents, end of period
37 16
(3.153) (21)
-
(341)
(3.238)
3.153
426
-
(36)
3.082
614
3.133
(61)
-
-
(117)
-
(294)
(362)
635
21
-
-
1
(1.652)
78
2
(3)
(563)
10
1
(3)
(53)
57
20
125
1.410
1
2024/25
120
138
(19)
Restated
2023/24
(536)
250
(4.779)
11
274
-
4.400
(2)
(96)
-
261
T&W Medical A/S 106
Notes to the
p
arent financial statements
1 Basis for preparation
1.1 Prior period error 107
2 Results of the year
2.1 Tax 108
2.2 Staff costs 108
3 Operating assets and liabilities
3.1 Property, plant and equipment 109
3.2 Investments in subsidiaries 110
3.3 Investments in associates 111
3.4 Other non-current and current assets 111
4 Other disclosures
4,1 Outstanding shares 112
4.2 Contingent assets and liabilities 112
4.3 Short- and long-term debts 112
4.4 Related parties 112
4.5 Fees paid to the auditor appointed at the Annual General Meeting 112
4.6 Remuneration of Key Management Personnel 113
4.7 Significant events after the balance sheet date 113
4.8 Approval of the financial statements 113
T&W Medical A/S 107
1 Basis for
p
re
p
aration
1.1 Prior period error
Other financial assets (current and non-current)**
DKKm
Statement of financial position
Investment in subsidiaries
Accumulated losses (Equity)
Statement of profit or loss
Income from group enterprises
Loss before tax
Loss for the year
Statement of cash flows Operating activities
Loss for the year
Non-cash adjustments
(4.860) 81 (4.779)
(4.481) 81 (4.400)
(4.779)
(4.768)
(4.400)
81
81
81
(4.860)
(4.849)
(4.481)
2.456
8.205
30 Sept 2024
(As restated)
(717)
(717)
Adjustments
3.173
8.922
30 Sept 2024
(as previously
reported)
The parent financial statements for T&W Medical A/S have been prepared in accordance with IFRS as adopted by the European
Union (EU) and further requirements in the Danish Financial Statements Act.
The parent financial statements are presented in Danish Krone (DKK) which is the functional currency of T&W Medical A/S. All
values are rounded to the nearest million (DKK), except where indicated otherwise.
The Parent’s general accounting policies are described in each of the individual notes to the parent financial statements. The
accounting policies set out below and in each note have been used consistently in respect of the financial year and the comparative
figures.
The financial statements for all periods presented have been prepared in accordance with all IFRS as adopted by EU effective for
accounting periods ending 30 September 2025.
Some comparative figures in the notes to the parent financial statements have been adjusted to enhance comparability. These
adjustments have no impact on the Group’s overall financial position.
During the year, development costs previously capitalized have been retrospectively expensed in the subsidiary WSA A/S. In
accordance with IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors, the comparative information for
2023/24 and the opening balance as of 1 October 2023 have been restated in the WSA consolidated financial statements. Please
refer to Note 1.3 Prior Period Error in the consolidated financial statements for further information. As the shares in the subsidiary
of WSA A/S are recognized using the equity method, Investments in subsidiaries is also restated in the parent financial statements,
corresponding to the ownership percentage of WSA A/S in T&W Medical A/S of 43.35%.
T&W Medical A/S 108
2 Result of the year
2.1 Tax
DKKm
Tax on profit/(loss)
Current tax for the year
Tax regarding last year
Deferred tax for the year
Total
Reconciliation of effective tax rate
Danish tax rate
Expected income tax (expense)/benefi
t
Non-taxable items
A
djustment of tax with respect to prior year
Total
2.2 Sta
ff
costs
DKKm
W
ages, salaries and remuneration
Statutory social welfare cont.
Other employee-related benefit
s
Total
Number of full-time employees
Accounting policies
32 32
3 3
-1
35 36
18 19
27 -
(11)
1.067
22%22%
- (28)
2024/25 2023/24
(1.050)
2023/242024/25
- (28)
36
126
9 17
36
2024
/
25 2023
/
24
(11)
(90)
For information regarding remuneration of the Board, Executive Management and other Key Management Personnel, please refer
to Note 4.6 Remuneration of Key Management Personnel.
Wages, salaries, social security contributions, annual leave and sick leave, bonuses and non-monetary benefits are recognized in
the year in which the associated services are rendered by employees of the Group. Where the Group provides long-term employee
benefits, the costs are accrued to match the rendering of the services by the employees concerned.
T&W Medical A/S serves as the administration company in a Danish joint taxation arrangement with all subsidiaries.
According to the joint taxation provisions of the Danish Corporation Tax Act, the Entity is therefore liable for income taxes etc. for
the jointly taxed entities and for obligations, if any, relating to the withholding of tax on interest, royalties and dividend for these
entities.
T&W Medical A/S 109
3 Operating assets and liabilities
3.1 Property, p
l
ant an
d
equ
i
pmen
t
DKKm
Cost beginning of year
Additions
Cost end of year
Amortisations and depreciation beginning of year
Depreciation
Amortisations and depreciation end of year
Carrying amount end of year
Accounting policies
-
2
(1)
-
(1)
1
2
(1)
2
-
2
(1)
-
1
2023/242024/25
Property, plant and equipment are measured at cost less accumulated depreciation and impairment losses. Cost comprises the
purchase price and costs directly attributable to bringing the asset to its location and condition necessary for its intended use. In
addition, the initial estimate of the costs related to dismantling and removing the asset and restoring the site on which the asset is
located are added to the cost, if relevant. Where individual components of an item of property, plant and equipment, that is
material, have different useful lives, they are accounted for as separate items, and depreciated separately. Borrowing costs are
included in the cost for assets that necessarily take a substantial period of time to get ready for the intended use.
Depreciation is recognised on a straight-line basis over the expected useful lives of property, plant and equipment, taking into
account the expected residual value after the end of the useful life. The expected useful lives are as follows:
The estimated useful lives are as follows:
- Other fixtures and fittings, tools and equipment, furniture etc.: 5-8 years
Estimated useful lives and residual values are reassessed annually. If the residual value exceeds the carrying amount, depreciation
is discontinued. When changing the expected useful lives or the expected residual value, the effect on the depreciation is
recognised prospectively as a change in accounting estimates.
Depreciation is recognised in the income statement as production costs, development costs, distribution costs and administrative
expenses.
T&W Medical A/S 110
3.2 Investments
i
n group enterpr
i
ses
DKKm
Cost beginning of year
A
dditions
Disposals
Transfers
Cost end of year
Revaluations beginning of year
Share of profit/loss for the yea
r
Share of other comprehensive income, ne
t
Share of other transactions
Dividend
Revaluations end of yea
r
Carrying amount end of year 5.479
(177)
1.607
(125)
9.783
(1.578)
8.205
9.783
(4.734)
10.213
(120)
-
(4.720)
(5)
(1.578)
(250)
(104)
278
(3.080)
1.598
(4.481)
550 5.058
Restated
2023/242024/25
9.450
Group companies are listed on Note 5.10 of the Group financial statements. As set out in Note 1 to the Consolidated financial
statements, the investment in subsidiary represents a significant non-cash transaction.
Accounting policies
Investments in subsidiaires are recognized and measured under the equity method. This means that investments are measured at
the pro rate share of the enterprises equity plus or less unamortized positive, or negative, goodwill and plus or less unrealized
intra-group profits or losses.
The Parent’s share of the enterprises’ profits or losses after elimination of unrealized intra-group profits and losses and less or plus
amortization of positive, or negative, goodwill is recognized in the income statement.
Subsidiaries with negative equity value are measured at zero value, and any receivables from these enterprises are written down by
the Parent’s share of such negative equity if it is deemed irrecoverable. If the negative equity exceeds the amount receivable, the
remaining amount is recognized under provisions if the Parent has a legal or constructive obligation to cover the liabilities of
relevant enterprises.
Upon distribution of profit or loss, net revaluation of investments in subsidiaries is transferred to reserve for net revaluation
according to the equity method under equity.
T&W Medical A/S 111
3.3 Investments
i
n assoc
i
ates
DKKm
Cost beginning of year
A
dditions
Transfe
r
Cost end of year
Revaluations beginning of year
Impairment losses
Dividend
Transfe
r
Other adjustments
Revaluations end of yea
r
Carrying amount end of year
3.4 Ot
h
er non-current an
d
current
fi
nanc
i
a
l
asset
s
DKKm
Other non-current financial assets
Intragroup loans
Securities and other equity investments
Total
Other current financial assets
Receivables from associates and other investment
s
Total
45
(5)
-
(2)
- (2)
27
- 576
27
32
13
-
2
122
698
134
134
-
- 15
15
1
(6)
39
(5)
-
5
32
(1)
(3)
(1)
2023
/
242024
/
25
2023
/
242024
/
25
Accounting policies
Associates are those entities in which the Group has significant influence but not control or joint control over the financial and
operating policies. A joint venture is an arrangement in which the Group has joint control over the financial and operating policies,
and where the Group has rights to the net assets of the arrangement, rather than rights to its assets and obligations for its
liabilities.
Investments in associates and joint ventures are accounted for using the equity method. This entails that the investments are
initially recognised at cost and adjusted thereafter to recognise the Parent’s share of the profit or loss and other comprehensive
income of the associate calculated in accordance with the Parent’s accounting policies. When the Parent’s share of losses of an
associate exceeds the Parent’s interest in such associate, the Group discontinues recognising its share of future losses. Additional
losses are recognised only to the extent that the Parent has incurred legal or constructive obligations or made payments on behalf
of the associate or joint venture.
Accounting policies
Intragroup loans are recognized initially at fair value less directly attributable transactions costs. Subsequently, they are measured
at amortised cost using the effective interest method less impairment. A loss allowance is recognized at initial recognition and
subsequently based on 12-months expected credit losses, unless a significant increase has arisen since the initial recognition of the
loans and receivables, in which case the loss allowance is based on lifetime expected credit losses.
Securities and other equity investments
Securities and other equity investments comprise listed and unlisted securities, which are measured at fair value through profit or
loss.
T&W Medical A/S 112
4 Other disclosures
4.1 Outstan
di
ng s
h
ares
4.2 Cont
i
ngent assets an
d
li
a
bili
t
i
es
4.3 S
h
ort- an
d
l
ong-term
d
e
b
ts
DKKm Total
Interest-bearing debt
Intragroup payables
Trade payables
Other financial liabilities
Total non-derivative financial liabilities
DKKm Total
Interest-bearing debt
Intragroup payables
Trade payables
Other financial liabilities
Total non-derivative financial liabilities
4.4 Re
l
ate
d
part
i
es
DKKm
Transactions with related parties
- Intergroup loans, grante
d
- Loans, receive
d
- Receivables, intergroup
- Interest on loans, pai
d
- Interest on loans, receive
d
4.5 Fees pa
id
to t
h
e au
di
tor appo
i
nte
d
at t
h
e Annua
l
Genera
l
Meet
i
n
g
237
79
-
1.465
267
234
56
576
4.652
213
81-9
13 6.693 - 6.706
- 4.652 - 4.652
5--5
30 September 2024
- 2.040 - 2.040
1.994 1.950 - 3.944
Less than 1
year
Between 1-5
years
More than
5 years
7--7
6--6
2.466
1.465 - - 1.465
516 1.950 -
More than
5 years
30 September 2025
Between 1-5
years
Less than 1
year
2023
/
242024
/
25
For more information regarding outstanding shares, please refer to Note 4.1 in the consolidated financial statements.
Letter of support
As of 30 September 2025 the parent company has issued a letter of support to a subsidiary, the parent company has stated that
liquidity will be injected if needed so the company can carry out the intended activities and meet the company's obligations in due
time.
Guarantees
The parent company has issued Corporate Guarantees to Nykredit, outstanding for an amount of DKK 379 million at 30 September
2025. None of the outstanding guarantees are likely to be drawn, hence no provisions have been made.
The risk implied from the values in the table above reflects the one-sided scenario of cash outflows only. Obligations under trade
payables and other financial liabilities mainly originate from the financing of assets ongoing operations such as investments in
working capital and trade receivables.
T&W Medical A/S is the parent entity and ultimate parent controlling WSA A/S. For the financial year ended 30 September 2025,
T&W Medical A/S have had the below transactions with subsidiaries or other related parties.
Fees paid to auditor for assurance related services for the financial year ended 30 September 2025 was DKK 0.6 million (2023/24:
DKK 0.5 million).
T&W Medical A/S 113
4.6 Remunerat
i
on o
f
Key Management Personne
l
DKKm Total
1 October 2024 –30 September 2025
Board and Executive Management
Total
1 October 2023 –30 September 2024
Board and Executive Management
Total
4.
7
S
i
gn
ifi
cant events a
f
ter t
h
e
b
a
l
ance s
h
eet
d
at
e
4.8
A
pprova
l
o
f
t
h
e
fi
nanc
i
a
l
statements
3
30
00
03
3
3003
3003
Short-term
benefits
Termi-
nation
benefits
Share-
based
payments
On 1 October 2025, T&W Medical A/S purchased 100% of the share capital in GSA Invest A/S and purchased 43.15% of the shares
in T&W Holding A/S, increasing the ownership share from 4.6% at 30 September 2025 to 47.75%. The total purchase price
amounts to DKK 2,407 million.
On 26 February 2026, T&W Medical A/S participated in a capital increase in Uneeg Medical A/S, by which a receivable amount of
DKK 131 million was converted to shares.
All material events that have arisen after the balance sheet date have been included and properly disclosed in the Financial
Statements, and no other events after the balance sheet date have been identified which materially affect the Financial Statements.
The financial statements of T&W Medical A/S were approved by the Board of Directors and authorised for issue on 23 March 2026.
T&W Medical A/S 114
Entity information
Entity
Business Registration No (CVR): 28 51 18 09
Financial period: 1 October 2024 - 30 September 2025
Founded: 22 Marts 2005
Registered in: Allerød
Board of Directors
Jan Tøpholm (Chair)
Anders Steen Westermann
Søren Erik Westermann
Adam Westermann
Richard Tøpholm
Julian Tøpholm
Executive Management
Lars Nørgaard, Chief Executive Officer
Auditors