Rockwool

Interim / Quarterly Report • Aug 22, 2024

Report on the first half of 2024 for ROCKWOOL A/S Release no. 46 – 2024 to Nasdaq Copenhagen

22 August 2024

Volume growth, efficient operations yield strong H1 and Q2 2024 sales and earnings

Highlights

• Sales in H1 2024 reached 1928 MEUR, an increase of eight percent in both local currencies and reported figures compared to last year, driven by higher sales in primarily Central and Eastern Europe as well as North America. The sales increase was driven by volume growth while sales prices overall remained stable.
• Sales in Q2 2024 reached 1010 MEUR, an increase of 10 percent in both local currencies and reported figures compared to last year.
• EBITDA in H1 2024 reached 469 MEUR, up 31 percent, yielding a 24.3 percent EBITDA margin. Earnings continued at a healthy level, as sales prices remained stable and input costs were lower compared to last year.
• EBITDA in Q2 2024 reached 253 MEUR, an increase of 31 percent. The EBITDA margin was 25.1 percent.
• EBIT in H1 2024 increased 44 percent to 341 MEUR, with a 17.7 percent EBIT margin, up 4.4 percentage points.
• EBIT in Q2 2024 increased 42 percent to 189 MEUR, with a 18.7 percent EBIT margin, up 4.2 percentage points.
• Investments reached 180 MEUR in H1 2024, up 49 MEUR from last year mainly related to the finalisation of the electrical melter conversion in Flumroc and capacity expansion for Grodan.
• Cash flow from operations before financial items and tax amounted to 399 MEUR for the first half of 2024, 109 MEUR higher than in the same period last year.
• Shareholders may from 22 August 2024 until 5 September 2024 request conversion of A shares to B shares. For further information please refer to https://www.rockwool.com/group/ about-us/investors/conversion-shares/.
• At the end of June 2024, the company had purchased 223 900 B shares under the share buy-back programme for a total amount of 71 MEUR.

Outlook 2024

• Sales growth of around mid-single-digit percent in local currencies.
• EBIT margin around 17 percent.
• Investment level around 375 MEUR excluding acquisitions.

"I am pleased with our second quarter sales and earnings performance, where our earnings reached a record high level. These results are driven primarily by volume growth across multiple regions, stable prices, and our highly efficient operations. Volume growth was especially solid in Eastern Europe as well as North America and South Asia. The renovation and industrial sectors in Western Europe were stronger than new build construction, which remains challenged. Overall, sales grew well in Germany, Italy, Spain and Sweden; less so in France and the UK".

CEO Jens Birgersson

Main figures / key figures for the Group

	Unaudited			Audited
	YTD YTD
	Q2 2024	Q2 2023	Q2 2024	Q2 2023	FY 2023
Income statement items in MEUR
Net sales	1 010	917	1 928	1 783	3 620
EBITDA	253	194	469	358	779
Amortisation, depreciation and impairment	64	61	128	121	261
EBIT	189	133	341	237	518
Profit before tax	184	137	339	243	522
Profit for the period	142	102	258	180	389
Balance sheet items in MEUR
Non-current assets			2 443	2 318	2 361
Current assets			1 250	1 172	1 193
Total assets			3 693	3 490	3 554
Equity			2 894	2 609	2 804
Non-current liabilities			232	218	199
Current liabilities			567	663	551
Net interest-bearing cash / (debt)			188	-37	239
Net working capital			433	502	358
Invested capital			2 721	2 662	2 562
Cash flow items in MEUR
Cash flow from operating activities	242	173	341	238	707
Cash flow from investing activities	96	54	180	131	312
Free cash flow	146	119	161	107	395
Others
Number of full-time employees (end of period)			12 122	11 965	11 993
Ratios
EBITDA margin	25.1%	21.2%	24.3%	20.1%	21.5%
EBIT margin	18.7%	14.5%	17.7%	13.3%	14.3%
ROIC (rolling 4 quarters)			23.1%	15.3%	20.1%
Return on equity (rolling 4 quarters)			17.0%	12.7%	14.4%
Equity ratio			78.4%	74.8%	78.9%
Stock market information (DKK)
Earnings per share	50	35	90	62	134
Cash flow per share	85	59	119	82	244
Book value per share			998	899	967
Share capital (million)			216	216	216
Price per A share			2 771	1 744	1 965
Price per B share			2 819	1 754	1 977
Market cap (million)			59 690	37 729	42 519
Number of own shares			277 783	50 288	50 288

For definition of key figures and ratios see page 84 in the ROCKWOOL Group Annual Report 2023 available on our website: www.rockwool.com/.

Management report for the period 1 January to 30 June 2024

General update

Despite the surprisingly steady path of the global economy, the persistent high long-term interest rates put pressure on the European growth and especially the residential new build construction activity. The renovation market in Europe was more resilient. Focus on energy efficiency and fire safety in buildings contributed to driving demand in first half of the year.

ROCKWOOL's good performance in both sales and earnings reflects the Group's ability to adapt to different economic environments, manage price and costs, and gear our operational business to match prevailing conditions. The sales increase was driven by volume growth while sales prices overall remained stable although with a slight downward trend in some markets to preserve market share.

The sales volume increase that started in Q4 2023, continued in H1 2024, driven by the Insulation segment. The volume growth in Europe is partly a recovery of market shares from the lower sales volume during the first half of last year.

Global sales development

In the first half of 2024, ROCKWOOL generated net sales of 1928 MEUR, an increase of eight percent in both local currencies and in reported figures. Some markets in Europe were affected by the downturn in new construction activity although Central and parts of Eastern Europe, including Russia outperformed the market with good growth within the renovation and industrial business. We also achieved good growth in North America and South Asia.

In Q2 2024, ROCKWOOL generated net sales of 1010 MEUR. This is an increase of 10 percent in both local currencies and reported figures compared to Q2 2023.

Regional sales development

In the first half of the year, sales in Western Europe amounted to 1080 MEUR, up one percent in both local currencies and in reported figures. Sales in Germany, Italy, Spain and Sweden performed well, while sales in the important French and UK markets saw small declines compared to same period last year. In Q2 2024, sales in Western Europe amounted to 555 MEUR, up two percent in local currencies and up three percent in reported figures compared to same period last year.

In Eastern Europe, sales for the first half of 2024 amounted to 374 MEUR, an increase of 28 percent in local currencies and 25 percent in reported figures. Many main markets showed double-digit sales increases compared to first half of 2023. Sales in Q2 2024 amounted to 198 MEUR, up 25 percent in local currencies and 23 percent in reported figures. Several countries in the region, including Russia, experienced double-digit sales growth in the quarter.

Group sales +8%

Sales in Western Europe +1%

Sales in Eastern Europe +28%

In the rest of the world, H1 sales amounted to 474 MEUR, an increase of 15 percent in local currencies and 14 percent in reported figures. Sales in North America and most other main markets delivered double-digit growth. Market conditions in China are still tough and sales decreased there in first half of 2024.

In Q2 2024, rest of world sales amounted to 257 MEUR, up 19 percent in both local currencies and reported figures. The North America market continued to grow well, and our factories are now running near full capacity, reflecting the strong demand and our ongoing efforts to catch up on deliveries and reduce lead times. Volume increased solidly in South Asia, driven by strong demand.

Regional sales

MEUR

Group profitability

During the first half of the year, EBITDA increased 31 percent to 469 MEUR resulting in an EBITDA margin of 24.3 percent compared to 20.1 percent for the same period last year. The increase in margin was driven by volume growth, overall stable sales prices with a slight downward trend in some markets to preserve market share, higher productivity and lower than expected input cost mainly because of stable energy prices.

In Q2 2024, EBITDA increased 31 percent to 253 MEUR resulting in an EBITDA margin of 25.1 percent compared to 21.2 percent for the same period last year.

EBIT for the first half of 2024 increased 44 percent, reaching 341 MEUR, corresponding to an EBIT margin of 17.7 percent compared to 13.3 percent for the same period last year.

The result for the first half of 2024 includes a donation to the Foundation for Ukrainian Reconstruction of 13.4 MEUR (100 MDKK) which was approved at the AGM on 10 April 2024.

Sales in rest of the world +15%

EBITDA +31%

EBIT margin +4.4%-points

In Q2 2024, EBIT amounted to 189 MEUR with an EBIT margin of 18.7 percent, up 4.2 percentage points. The donation to the Foundation for Ukrainian Reconstruction amounted to 7.4 MEUR in Q2 2024.

EBIT & EBIT margin

Net financial items ended negative at 2 MEUR for H1 2024. Since March 2022 the foreign currency exposure on the intercompany balance between ROCKWOOL A/S and the subsidiary in Russia has not been hedged. Consequently, we have recorded an unrealised exchange rate loss of 6 MEUR during H1 2024, partly offsetting last year's unrealised exchange rate gain of 16 MEUR during H1 2023.

The effective tax rate was 24 percent for the first half of 2024, down two percentage points from the same period last year and down 1.5 percentage points from full year 2023. The decrease compared to full year 2023 is driven by revaluation of tax assets.

Net profit for the first half of 2024 amounted to 258 MEUR, which is 78 MEUR higher than in the same period last year.

Balance sheet

Net working capital ended by end of H1 2024 at 433 MEUR, an increase of 75 MEUR compared to year-end 2023 but a decrease of 69 MEUR compared to H1 2023. The increase in the first half of 2024 followed the normal seasonality and was driven by higher trade receivables related to increased sales. Net working capital ratio ended at 11.5 percent, an improvement of 1.9 percentage points compared to end of H1 2023.

Driven by higher four quarters rolling EBIT, annualised return on invested capital ended at 23.1 percent, up 7.8 percentage points compared to 15.3 percent for the same period last year.

At the end of H1 2024, total assets amounted to 3693 MEUR, an increase of 139 MEUR compared to year-end 2023 and 203 MEUR higher compared to H1 2023. The development mainly related to higher receivables due to sales growth and investments in tangible assets.

ROIC +7.8%-points

At the end of the period, the equity ratio remained solid at 78 percent after dividend payment of 124 MEUR in H1 2024, this is up 4 percentage points compared to H1 2023.

Cash Flow

Cash flow from operations before financial items and tax amounted to 399 MEUR for the first half of 2024, an increase of 109 MEUR compared to the same period last year as operations continued to generate solid cash flow. The solid operational cash flow generation continued in Q2 2024.

Capital expenditure excluding acquisitions was 180 MEUR in H1 2024, compared to 131 MEUR in the same period last year. The conversion to the electrical melter in Flumroc (Switzerland) and additional Grodan capacity in Toronto (Canada) were the largest individual investment projects in H1 2024.

Free cash flow was 161 MEUR in H1 2024, compared to 107 MEUR in the same period last year mainly from strong operational cash flow. In Q2 2024, free cash flow amounted to 146 MEUR, an increase of 27 MEUR from improved operational performance.

In H1 2024 cash flow from financing was -214 MEUR, compared to -95 MEUR in H1 2023 mainly due to purchase of own shares in connection with the share buy-back programme and higher dividend payment.

The Group's financial situation remains solid with a net interest-bearing cash position of 188 MEUR and unused credit facilities of 600 MEUR at the end of H1 2024.

Operational cash flow before financial items and tax +109 MEUR

Free cash flow +54 MEUR

Business segments

Sales per business

MEUR

Key figures Insulation segment

			YTD	YTD
MEUR	Q2 2024	Q2 2023	Q2 2024	Q2 2023
External net sales	809	723	1 533	1 387
EBIT	159	110	283	189
EBIT margin	17.8%	13.7%	16.7%	12.1%

Insulation segment sales for the first half of 2024 reached 1533 MEUR, which is an increase of 11 percent in both local currencies and in reported figures. In Q2 2024, Insulation segment sales reached 809 MEUR, which is an increase of 12 percent in both local currencies and in reported figures compared to same quarter last year. Higher Insulation sales was mainly related to higher volume, especially in North America, Central and Eastern Europe, including Russia.

Insulation segment EBIT for the first half of 2024 reached 283 MEUR with an EBIT margin of 16.7 percent, an increase of 4.6 percentage points compared to the same period last year. A donation of 13.4 MEUR to the Foundation for Ukrainian Reconstruction was recognised in the Insulation segment in the first half of 2024, of which 7.4 MEUR was recognised in Q2 2024. In Q2 2024, EBIT was 159 MEUR resulting in an EBIT margin of 17.8 percent, up 4.1 percentage points from same period last year.

Insulation sales +11%

Insulation EBIT margin +4.6%-points

EBIT per business

Key figures Systems segment

			YTD	YTD
MEUR	Q2 2024	Q2 2023	Q2 2024	Q2 2023
External net sales	201	194	395	396
EBIT	30	23	58	48
EBIT margin	14.9%	11.6%	14.6%	12.0%

Systems segment sales for the first half of 2024 amounted to 395 MEUR, which is a decrease of one percent in local currencies and at level with last year in reported figures. Correcting for the divestment of the Rockfon distribution business Charles Wille in September 2023, like-for-like growth was two percent in Systems segment.

In Q2 2024, sales amounted to 201 MEUR, which is an increase of three percent in local currencies and four percent in reported figures compared to Q2 2023. Sales in Rockfon North America declined, while sales in all other businesses improved.

Systems segment EBIT was 58 MEUR in the first half of 2024, an increase of 21 percent and an EBIT margin of 14.6 percent, an increase of 2.6 percentage points compared to the same period last year. In Q2 2024, EBIT amounted to 30 MEUR with an EBIT margin of 14.9 percent, up 3.3 percentage points.

Sustainability

ROCKWOOL's commitment to contribute positively to society while at the same time reducing our operational footprint is rock solid. We remain convinced of the value of short-term actions that concretely advance decarbonisation. The EU Energy Performance of Buildings Directive has been adopted by the EU member states with good potential for ROCKWOOL, although we do not expect this to have a significant impact in the short-term.

After meeting all intermediate sustainability goals in 2022, our performance related to the five sustainability goals that have a time horizon of 2030 remains on or ahead of schedule. These five goals cover CO² emission intensity, water

Systems sales -1%

Systems EBIT margin +2.6%-points

use intensity, landfill waste, reclaimed waste schemes, and energy efficiency in owned offices that are aligned with the United Nations Sustainable Development Goals (SDGs).

An important improvement this year is a three percent decrease in the CO² emission intensity per tonne stone wool in H1 2024 compared to H1 2023. This results from higher production efficiency, the E-melter conversion in Flumroc (Switzerland), and consumption of green energy.

In 2023, we offered reclaimed waste schemes in 21 countries. As of H1 2024, we have added Poland to the countries where we offer reclaimed waste schemes, bringing the total to 22 countries, compared to the goal of 30 countries by 2030.

In ROCKWOOL, we take safety very seriously. In addition to the mentioned five sustainability goals, we have a Group safety goal to have "zero fatalities and zero serious accidents". For the first half of 2024, this goal was achieved. We continue to focus on the Lost Time Incident rate, which improved in first half of 2024 compared to same period last year.

We also have two science-based target goals related to absolute carbon emission reductions. With a double-digit volume growth for H1 2024, we saw an increase of six percent in the absolute Scope 1 and Scope 2 CO2e emissions. We continue to progress well on the conversion of our coke-fuelled melting process to using green electricity instead. Earlier this year, we completed the electric melter conversion at the Flumroc (Switzerland) factory, where we have secured green electricity certificates, which will contribute to achieving our science-based targets.

In 2024, Brand Finance ranked ROCKWOOL 2 nd among the Danish industrial brands on sustainability, reflecting our commitment to climate resilience and sustainability.

Conversion of shares

In accordance with ROCKWOOL's articles of association, shareholders may from 22 August 2024 (as per this announcement) until 5 September 2024 request conversion of A shares to B shares. Further information on how to submit a conversion request and on the terms and conditions can be found on the company's website:

https://www.rockwool.com/group/about-us/investors/conversion-shares/.

Share buy-back programme

As stated in the 2023 Annual Report, ROCKWOOL Group has initiated a share buy-back programme of up to 160 MEUR. The share buy-back programme will run from 8 February 2024 until 7 February 2025. During this period, the Company will buy own shares for up to a maximum of 160 MEUR. At the end of H1 2024, the company had purchased 223 900 B shares under the programme for a total value of 529 MDKK or 71 MEUR.

Outlook for the full year 2024

• Sales growth of around mid-single-digit percent in local currencies.
• EBIT margin around 17 percent.
• Investment level around 375 MEUR excluding acquisitions.

2024 outlook overview

	7 February 2024	3 May 2024	15 May 2024	18 July 2024	22 August 2024
Net sales in local currencies	Sales roughly at the same level as in 2023	Sales growth of around mid-single digit percent	Sales growth of around mid-single digit percent	Sales growth of around mid-single digit percent	Sales growth of around mid-single digit percent
EBIT margin	Around 13 percent	Around 15 percent	Around 15 percent	Around 17 percent	Around 17 percent
Investments excluding acquisitions	Around 375 MEUR	Around 375 MEUR	Around 375 MEUR	Around 375 MEUR	Around 375 MEUR

Further information:

Kim Junge Andersen, Chief Financial Officer ROCKWOOL A/S +45 46 56 03 00

At ROCKWOOL Group, we are committed to enriching the lives of everyone who experiences our products and services. We help our customers and communities tackle many of today's biggest sustainability and development challenges, from energy consumption and noise pollution to fire resilience, water scarcity and flooding. Our product range reflects the diversity of the world's needs, while supporting our stakeholders in reducing their own carbon footprint.

Stone wool is a fully recyclable, versatile material that forms the basis of all our businesses. With more than 12 100 dedicated colleagues in 41 countries and sales in more than 120, we are the world leader in stone wool products, from building insulation to acoustic ceilings, external cladding systems to horticultural solutions, engineered fibres for industrial use to insulation for the process industry and marine & offshore.

Management statement

The Board of Directors and the Registered Directors have today considered and approved the interim report of ROCKWOOL A/S for the first half of 2024.

This interim report, which has not been audited or reviewed by the ROCKWOOL Group auditor, has been prepared in accordance with IAS 34 "Interim Financial Reporting", as approved by the EU and additional Danish interim reporting requirements for listed companies.

In our opinion, the interim report presents a true and fair view of Group's financial position on 30 June 2024 and of the result from Group's operations and cash flow for the period 1 January to 30 June 2024.

Furthermore, we believe that the management report includes a true and fair presentation about the development in the Group's operations and financial matters, the result for the period and the Group's financial position overall as well as a description of the most significant risks and uncertainties faced by the Group.

Besides what has been disclosed in this interim report no changes in the Group's most significant risks and uncertainties have occurred relative to what was disclosed in the consolidated Annual Report for 2023.

22 August 2024

Registered Directors

Jens Birgersson	Kim Junge Andersen
CEO	CFO

Board of Directors

Thomas Kähler Chairman	Jørgen Tang-Jensen Deputy Chairman	Rebekka Glasser Herlofsen
Carsten Kähler	Ilse Irene Henne	Jes Munk Hansen
Connie Enghus Theisen	Christian Westerberg	Janni Munkholm Nielsen

Income statement

	Unaudited Audited
			YTD	YTD
MEUR	Q2 2024	Q2 2023	Q2 2024	Q2 2023	FY 2023
Net sales	1 010	917	1 928	1 783	3 620
Other operating income	2	7	4	13	15
Operating income	1 012	924	1 932	1 796	3 635
Raw material costs and production material costs	334	327	646	653	1 302
Delivery costs and indirect costs	121	114	229	220	437
Other external costs	85	85	160	162	300
Personnel costs	219	204	428	403	817
Operating costs	759	730	1 463	1 438	2 856
EBITDA	253	194	469	358	779
Amortisation, depreciation and impairment	64	61	128	121	261
EBIT	189	133	341	237	518
Income from investments in associated companies	-	-	-	-	2
Financial items	-5	4	-2	6	2
Profit before tax	184	137	339	243	522
Tax on profit for the period	42	35	81	63	133
Profit for the period	142	102	258	180	389
EUR
Earnings per share of 10 DKK (1.3 EUR)	6.6	4.7	12.0	8.3	18.0
Diluted earnings per share of 10 DKK (1.3 EUR)	6.6	4.7	12.0	8.3	18.0

Statement of comprehensive income

	Unaudited				Audited
			YTD	YTD
MEUR	Q2 2024	Q2 2023	Q2 2024	Q2 2023	FY 2023
Profit for the period	142	102	258	180	389
Items that will not be reclassified to income statement:
Actuarial gains and losses of pension obligations	1	-	2	-	-10
Tax on other comprehensive income	-	-	-	-	3
Items that may be subsequently reclassified to income statement:
Currency adjustment from translation of entities	34	-8	26	-51	-54
Hedging instruments, value adjustments	-	-1	2	3	-3
Tax on other comprehensive income	-	-	-	-	1
Other comprehensive income	35	-9	30	-48	-63
Comprehensive income for the period	177	93	288	132	326

Business segments and sales reporting

	Unaudited
YTD Q2	Insulation segment		Systems segment		Eliminations		ROCKWOOL Group
MEUR	2024	2023	2024	2023	2024	2023	2024	2023
External net sales	1 533	1 387	395	396	-	-	1 928	1 783
Internal net sales	168	182	-	-	-168	-182	-	-
EBIT	283	189	58	48	-	-	341	237
EBIT margin	16.7%	12.1%	14.6%	12.0%			17.7%	13.3%
Goods transferred at a point in time	1 533	1 387	395	396			1 928	1 783

Geographical split of net sales

	Unaudited				Audited
			YTD	YTD
MEUR	Q2 2024	Q2 2023	Q2 2024	Q2 2023	FY 2023
Western Europe	555	541	1 080	1 069	2 125
Eastern Europe and Russia	198	161	374	299	679
North America, Asia and others	257	215	474	415	816
Total net sales	1 010	917	1 928	1 783	3 620

Balance sheet

(condensed)		Unaudited
MEUR	Q2 2024	Q2 2023
Assets
Intangible assets	146	158	145
Tangible assets	2 154	2 011	2 079
Right-of-use assets	79	85	72
Other financial assets	17	15	19
Deferred tax assets	47	49	46
Non-current assets	2 443	2 318	2 361
Inventories	364	409	375
Receivables	576	544	464
Cash	310	219	354
Current assets	1 250	1 172	1 193
Total assets	3 693	3 490	3 554
Equity and liabilities
Share capital	29	29	29
Currency translation adjustments	-145	-168	-171
Proposed dividend	-	-	125
Retained earnings	3 011	2 746	2 824
Hedging	-1	2	-3
Total equity	2 894	2 609	2 804
Non-current liabilities	232	218	199
Current liabilities	567	663	551
Total liabilities	799	881	750
Total equity and liabilities	3 693	3 490	3 554

Cash flow statement

(condensed)			Unaudited	Audited
			YTD	YTD
MEUR	Q2 2024	Q2 2023	Q2 2024	Q2 2023	FY 2023
EBIT	189	133	341	237	518
Adjustments for amortisation, depreciation and impairment	64	61	128	121	261
Adjustments of non-cash operating items	6	1	4	-4	-2
Changes in net working capital	5	8	-74	-64	71
Cash flow from operations before financial items and tax	264	203	399	290	848
Cash flow from operating activities	242	173	341	238	707
Cash flow from investing activities excluding acquisitions	-96	-54	-180	-131	-317
Business acquisitions, net of cash	-	-	-	-	5
Free cash flow	146	119	161	107	395
Cash flow from financing activities	-167	-234	-214	-95	-238
Net cash flow	-21	-115	-53	12	157
Cash available – beginning of period	318	326	353	202	202
Exchange rate adjustments on cash available	10	-2	7	-5	-6
Cash available – end of period	307	209	307	209	353
Unutilised, committed credit facilities			600	475	600

Statement of changes in equity

	Unaudited
	Shareholders of ROCKWOOL A/S
MEUR	Share capital	Currency translation adjustments	Proposed dividend	Retained earnings	Hedging	Total equity
Equity 1 January 2024	29	-171	125	2 824	-3	2 804
Profit for the period				258		258
Other comprehensive income		26		2	2	30
Comprehensive income for the period	-	26	-	260	2	288
Share buy-back programme				-71		-71
Purchase of own shares				-3		-3
Dividend paid			-125	1		-124
Equity 30 June 2024	29	-145	-	3 011	-1	2 894

Equity 1 January 2023	29	-117	102	2 567	-1	2 580
Profit for the period				180		180
Other comprehensive income		-51			3	-48
Comprehensive income for the period	-	-51	-	180	3	132
Purchase of own shares				-3		-3
Expensed value of Restricted Share Units issued				1		1
Dividend paid			-102	1		-101
Equity 30 June 2023	29	-168	-	2 746	2	2 609

Main figures in DKK million

		Audited
			YTD	YTD
MDKK	Q2 2024	Q2 2023	Q2 2024	Q2 2023	FY 2023
Net sales	7 529	6 835	14 377	13 282	26 972
Amortisation, depreciation and write-downs	480	453	955	901	1 948
EBIT	1 410	992	2 542	1 764	3 861
Profit before tax	1 373	1 025	2 530	1 811	3 889
Profit for the period	1 061	758	1 923	1 340	2 898
Total assets			27 539	25 989	26 490
Equity			21 850	19 430	20 898
Cash flow from operating activities	1 804	1 289	2 542	1 774	5 267
Cash flow from investing activities	713	399	1 339	973	2 332
Exchange rate	7.46	7.45	7.46	7.45	7.45

Accounting policies

This unaudited interim report has been prepared in accordance with IAS 34 and additional Danish regulations for the presentation of quarterly interim reports by listed companies. The interim report has been prepared in accordance with the accounting policies set out in the Annual Report for 2023 with no significant changes.

Significant accounting estimates and assumptions

In preparing this interim report Management has made various accounting estimates and judgements that may significantly influence the amounts recognised in the Consolidated Financial Statement and related information at the reporting date. The accounting estimates and judgements which Management considers to be material for the preparation and understanding of the interim report are stated in Note 1.1 in the Annual Report 2023 and primarily relates to impairment testing, expected lifetime for tangible assets, deferred tax assets and uncertain tax positions.

Disclaimer

The statements on the future in this report, including expected sales and earnings, are associated with risks and uncertainties and may be affected by factors influencing the activities of the Group, e.g. the global economic environment, including interest and exchange rate developments, the raw material situation, production and distribution-related issues, breach of contract or unexpected termination of contract, price reductions due to market-driven price reductions, market acceptance of new products, launches of competitive products and other unforeseen factors.