TCM Group

TCM-GROUP - 2024 TCM Group A/SSkautrupvej167500Holstebro37291269529900P5DOKT3XLWL4802024-01-012024-12-312023-01-012023-12-31https://investor-dk.tcmgroup.dk/da/CorporateGovernancehttp://investor-en.tcmgroup.dk/CorporateGovernance460Regnskabsklasse DÅrsrapport37291269TCM Group A/SSkautrupvej 167500 HolstebroxWizard version 1.1.1327.0, by EasyX Aps. www.easyx.euRevisionspåtegningGrundlag for konklusionKonklusionhttps://investor-dk.tcmgroup.dk/da/CorporateGovernance445529900P5DOKT3XLWL4802024-01-012024-12-31cmn:ConsolidatedMember529900P5DOKT3XLWL4802024-01-012024-12-31529900P5DOKT3XLWL4802023-01-012023-12-31529900P5DOKT3XLWL4802024-12-31529900P5DOKT3XLWL4802023-12-31529900P5DOKT3XLWL4802023-12-31ifrs-full:EquityAttributableToOwnersOfParentMember529900P5DOKT3XLWL4802023-12-31ifrs-full:IssuedCapitalMember529900P5DOKT3XLWL4802023-12-31ifrs-full:SharePremiumMember529900P5DOKT3XLWL4802023-12-31ifrs-full:TreasurySharesMember529900P5DOKT3XLWL4802023-12-31ifrs-full:ReserveOfCashFlowHedgesMember529900P5DOKT3XLWL4802023-12-31ifrs-full:RetainedEarningsMember529900P5DOKT3XLWL4802023-12-31tcm-group:DividendsProposedOrDeclaredBeforeFinancialStatementsAuthorisedForIssueButNotRecognisedAsDistributionToOwnersMember529900P5DOKT3XLWL4802024-01-012024-12-31ifrs-full:EquityAttributableToOwnersOfParentMember529900P5DOKT3XLWL4802024-01-012024-12-31ifrs-full:IssuedCapitalMember529900P5DOKT3XLWL4802024-01-012024-12-31ifrs-full:SharePremiumMember529900P5DOKT3XLWL4802024-01-012024-12-31ifrs-full:TreasurySharesMember529900P5DOKT3XLWL4802024-01-012024-12-31ifrs-full:ReserveOfCashFlowHedgesMember529900P5DOKT3XLWL4802024-01-012024-12-31ifrs-full:RetainedEarningsMember529900P5DOKT3XLWL4802024-01-012024-12-31tcm-group:DividendsProposedOrDeclaredBeforeFinancialStatementsAuthorisedForIssueButNotRecognisedAsDistributionToOwnersMember529900P5DOKT3XLWL4802024-12-31ifrs-full:EquityAttributableToOwnersOfParentMember529900P5DOKT3XLWL4802024-12-31ifrs-full:IssuedCapitalMember529900P5DOKT3XLWL4802024-12-31ifrs-full:SharePremiumMember529900P5DOKT3XLWL4802024-12-31ifrs-full:TreasurySharesMember529900P5DOKT3XLWL4802024-12-31ifrs-full:ReserveOfCashFlowHedgesMember529900P5DOKT3XLWL4802024-12-31ifrs-full:RetainedEarningsMember529900P5DOKT3XLWL4802024-12-31tcm-group:DividendsProposedOrDeclaredBeforeFinancialStatementsAuthorisedForIssueButNotRecognisedAsDistributionToOwnersMember529900P5DOKT3XLWL4802022-12-31ifrs-full:EquityAttributableToOwnersOfParentMember529900P5DOKT3XLWL4802022-12-31ifrs-full:IssuedCapitalMember529900P5DOKT3XLWL4802022-12-31ifrs-full:SharePremiumMember529900P5DOKT3XLWL4802022-12-31ifrs-full:TreasurySharesMember529900P5DOKT3XLWL4802022-12-31ifrs-full:ReserveOfCashFlowHedgesMember529900P5DOKT3XLWL4802022-12-31ifrs-full:RetainedEarningsMember529900P5DOKT3XLWL4802022-12-31tcm-group:DividendsProposedOrDeclaredBeforeFinancialStatementsAuthorisedForIssueButNotRecognisedAsDistributionToOwnersMember529900P5DOKT3XLWL4802023-01-012023-12-31ifrs-full:EquityAttributableToOwnersOfParentMember529900P5DOKT3XLWL4802023-01-012023-12-31ifrs-full:IssuedCapitalMember529900P5DOKT3XLWL4802023-01-012023-12-31ifrs-full:SharePremiumMember529900P5DOKT3XLWL4802023-01-012023-12-31ifrs-full:TreasurySharesMember529900P5DOKT3XLWL4802023-01-012023-12-31ifrs-full:ReserveOfCashFlowHedgesMember529900P5DOKT3XLWL4802023-01-012023-12-31ifrs-full:RetainedEarningsMember529900P5DOKT3XLWL4802023-01-012023-12-31tcm-group:DividendsProposedOrDeclaredBeforeFinancialStatementsAuthorisedForIssueButNotRecognisedAsDistributionToOwnersMember529900P5DOKT3XLWL4802023-12-31ifrs-full:EquityAttributableToOwnersOfParentMember529900P5DOKT3XLWL4802023-12-31ifrs-full:IssuedCapitalMember529900P5DOKT3XLWL4802023-12-31ifrs-full:SharePremiumMember529900P5DOKT3XLWL4802023-12-31ifrs-full:TreasurySharesMember529900P5DOKT3XLWL4802023-12-31ifrs-full:ReserveOfCashFlowHedgesMember529900P5DOKT3XLWL4802023-12-31ifrs-full:RetainedEarningsMember529900P5DOKT3XLWL4802023-12-31tcm-group:DividendsProposedOrDeclaredBeforeFinancialStatementsAuthorisedForIssueButNotRecognisedAsDistributionToOwnersMember529900P5DOKT3XLWL4802023-12-31529900P5DOKT3XLWL4802022-12-31529900P5DOKT3XLWL4802024-01-012024-12-31cmn:ConsolidatedMember0529900P5DOKT3XLWL4802024-01-012024-12-31cmn:ConsolidatedMember1529900P5DOKT3XLWL4802024-01-012024-12-31cmn:ConsolidatedMember0529900P5DOKT3XLWL4802024-01-012024-12-31cmn:ConsolidatedMember1529900P5DOKT3XLWL4802024-01-012024-12-31cmn:ConsolidatedMember2529900P5DOKT3XLWL4802024-01-012024-12-31cmn:ConsolidatedMember3529900P5DOKT3XLWL4802024-01-012024-12-31cmn:ConsolidatedMember4529900P5DOKT3XLWL4802024-01-012024-12-31cmn:ConsolidatedMember5529900P5DOKT3XLWL4802024-12-31cmn:ConsolidatedMember529900P5DOKT3XLWL4802023-01-012023-12-31cmn:ConsolidatedMember529900P5DOKT3XLWL4802024-01-012024-12-31cmn:ConsolidatedMember0529900P5DOKT3XLWL4802024-01-012024-12-31cmn:ConsolidatedMember1xbrli:pureiso4217:DKKiso4217:DKKxbrli:shares Annual report 2024 TCM Group A/S , Skautrupvej 16, 7500 Holstebro , Denmark, CVR No. 37291269 At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 2 Our purpose We create better kitchen environments for the heart of your home Our overall purpose is to create a better home life for everyone. Regardless of family constellations, housing type and ﬁnancial situation. We want to be a contributor to our customers' everyday happiness, and we do so by working together across teams and organisations, always with the customers in focus. Tvis Køkken Frame, Keramik supermat At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 3 management review ESG Statements financial statements At a glance esg consolidated financial statements Letter to our shareholders .............................................................................................................. 05 About TCM Group ....................................................................................................................................... 06 Key figures and ratios........................................................................................................................... 08 OUR BUSINESS MODEL................................................................................................................................. 09 HOW WE CREATE VALUE............................................................................................................................... 10 ESG strategy and approach............................................................................................................... 25 Double materiality assessment....................................................................................................... 26 EnviroNment................................................................................................................................................. 27 Social ............................................................................................................................................................... 31 Consolidated income statement ..................................................................................................... 47 Statement of comprehensive income............................................................................................ 47 Consolidated balance sheet as AT 31 December ..................................................................... 48 Consolidated statement of changes in shareholders’ equity ..................................... 49 Consolidated cash flow statement .............................................................................................. 50 notes to the consolidated financial statements ................................................................. 51 Definitions..................................................................................................................................................... 75 governance our business governance .................................................................................................................................................. 36 Board of Directors.................................................................................................................................. 39 Executive Management........................................................................................................................... 40 Shareholder information ................................................................................................................... 41 Strategy and financial outlook ...................................................................................................... 12 Danish design and Danish production ......................................................................................... 14 Risk management....................................................................................................................................... 15 Parent company Financial statements Statement of comprehensive income............................................................................................ 77 Balance sheet as AT 31 December ..................................................................................................... 77 STATEMENT OF Changes in shareholders’ equity .................................................................... 78 Cash flow statement .............................................................................................................................. 79 Notes to the parent Company financial statements ........................................................... 79 Performance Highlights Financial & non-financial highlights........................................................................................... 19 Addressable market overview ......................................................................................................... 20 Business review......................................................................................................................................... 21 Financial review........................................................................................................................................ 22 statements Management Statement on the annual report........................................................................ 85 Independent auditor’s reports ....................................................................................................... 85 Svane Køkkenet ARC1 Notes Bronze Front page photo At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 4 At A Glance Letter to our shareholders .............................................................05 About TCM Group ......................................................................................06 Key figures and ratios..........................................................................08 OUR BUSINESS MODEL................................................................................09 How we create value..............................................................................10 At AUBO, we cater to clients who appreciate kitchens at a level beyond the ordinary. We build our kitchens with an insistent West Jutland thoroughness and an attention to detail, which means they will last in everyday use for generations to come. Sense, Truﬀel Brown At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 5 DKK 90 million, up from DKK 56 million in 2023, corresponding to a margin of 7.5%, up from 5.1% in 2023. This improvement reﬂects disciplined cost management, prudent capacity adjustments and ongoing investments in our core business areas. Letter to our Shareholders Considering TCM's strengthened ﬁnancial A year of challenges as well as new opportunities for TCM Group position, the Board of Directors will propose to the Annual General Meeting the distribution of an ordinary dividend of DKK 3 per share for 2024. This corresponds to a total distribution of DKK 31 million, representing 54% of the net proﬁt for 2024 and within the company’s dividend policy. 2024 presented both challenges and new opportunities for TCM Group. Despite persistent headwinds in the Danish market for new housing projects, and in the Norwegian market as a whole, TCM Group is strongly positioned both now and for the future thanks to our increased focus on the consumer business (B2C), our unwavering commitment to innovation and operational excellence, and our continued strategic investments. Strategic investments and innovations Our commitment to innovation in the kitchen business continued to drive progress. In 2024, TCM launched several new product ranges tailored to evolving consumer preferences. Notably, the Group introduced two new Svane Køkkenet designs, New Tradition and ARC1, with the latter redeﬁning the application of ceramic materials in kitchen design. Navigating a dynamic market environment The macroeconomic environment in which TCM operates remained uncertain throughout 2024, although inﬂationary pressures eased and interest rates in Denmark were lowered. Activity in the Danish housing market increased In alignment with our digitalisation strategy, we began developing a new ERP platform. This milestone project, set to go live in 2025, will streamline operations, improve partner collaboration and enhance customer experiences across all touchpoints. compared with 2023, but remained below pre- pandemic levels. B2C demand showed signs of recovery, supported by improving consumer sentiment. However, the professional business- to-business (B2B) market segment, particularly sales to new housing projects, saw decreasing demand throughout the year. AUBO integration progress The integration of AUBO Production A/S, acquired in 2023, remained on track. In 2024, we realised signiﬁcant synergies within sourcing and production, consolidating our leadership position in the Nordic market and creating a stronger foundation for future growth. In Norway, which accounts for approximately 19% of our business, market conditions remained challenging, with very low activity in the project sector and few new private houses being built, while the B2C area remained relatively subdued. Svane Køkkenet Notes Bronze Sustainability at the core Against this backdrop, we delivered overall revenue growth of 11%, reaching revenue of DKK 1,204 million for the year. This reﬂects an underlying ﬂat organic sales development despite the signiﬁcant downturn in the B2B project market. We reached an adjusted EBIT of Sustainability remains a cornerstone of our strategy. Within TCM, in 2024 we achieved a 2% reduction in scope 1 and 2 CO2 emissions compared with 2023, bringing our total reduction to over 53% compared with the 2021 baseline, signiﬁcantly above the Science Based Targets At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 6 initiative (SBTi) goal of 42% by 2030 for small and medium-sized enterprises. in the online market in recent years. By acquiring the remaining stake, we will gain full control of this important sales channel, enabling further sales and cost synergies. In 2024, Celebert ApS generated revenue of approximately DKK 150 million, with an EBIT margin of around 11%. About In 2024, we also mapped our scope 3 emissions, establishing a baseline to ensure that we achieve our ambition of a 42% reduction by 2050, aligned with SBTi recommendations. TCM Group For 2025, TCM expects full-year revenue in the range of DKK 1,250–1,400 million and adjusted EBIT of DKK 90–120 million. This assumes full ownership of Celebert ApS in the latter months of the year. As part of our commitment to transparency regarding the environmental impact of our products, we released third-party-approved environmental product declarations (EPDs) for the AUBO brand. This means all TCM Group brands are now covered by EPDs. TCM Group is Scandinavia’s third-largest kitchen manufacturer, with headquarters in Denmark and selling through approximately 220 points of sale across Scandinavia. The majority of our business is concentrated in Denmark, with Norway the primary export market. The product oﬀering includes kitchens, bathroom furniture and storage solutions. TCM Group pursues a multi-brand strategy in which the main brand is Svane Køkkenet and the other brands are Tvis køkken, Nettoline, AUBO and private label. Combined, the brands cover the entire price spectrum. Products are mainly marketed through a network of franchise stores and independent kitchen retailers. Furthermore, TCM Group is a supplier to the 45% owned e-commerce kitchen business Celebert, which operates under the brands kitchn.dk, billigskabe. dk, Celebert and Just Wood. Gratitude and commitment We would like to extend our sincere gratitude to our employees and franchise partners for their continued support throughout 2024. Their dedication and hard work are key to our progress and inspire us to keep working diligently to develop the business and to prioritise innovation, customer satisfaction and sustainability. Looking ahead As we enter 2025, we remain cautiously optimistic about the market outlook in general. While some inﬂationary pressures are easing and the central banks have begun to lower short-term interest rates, the full impact of interest rate adjustments on consumer conﬁdence and the level of activity in the housing market remains uncertain. Nevertheless, we are conﬁdent that our strategic priorities, combined with an agile operational framework, will enable us to navigate these uncertainties eﬀectively. Manufacturing is largely carried out in-house at four manufacturing sites located in Tvis and Aulum (in the western part of Denmark). TCM Group is listed on Nasdaq Copenhagen. Together, we create better kitchen environments for the heart of our customers’ homes. Our goal remains to be the ﬁrst choice for kitchen solutions, delivering value to all stakeholders while maintaining our commitment to quality and excellence. Revenue, DKK Adjusted EBIT Margin Our ﬁnancial outlook for 2025 reﬂects this cautious optimism, with anticipated revenue growth across our core markets in Denmark and Norway, driven by continued B2C recovery combined with a potential recovery in the B2B project market in the second half of the year. We expect to be able to convert the growth in sales into increased proﬁtability through ongoing eﬃciency improvements and further integration synergies in AUBO. On the other hand, we expect continued input cost inﬂation, wages and logistics costs, which will put pressure on margins to the extent that we cannot pass on these increases through our sales prices. 1,204 m 7. 5 % (1,084) (5.1) Norway Revenue 19% (14) Other countries 1% (1) Anders Torben Paulin CEO Skole-Sørensen Chair Denmark 80% (85) We expect to take full control of Celebert ApS by acquiring the remaining 55% stake in the company during the second half of 2025. Celebert ApS has delivered impressive revenue and earnings growth * B2C comprises sales where the stores contract directly with the private end-customers, B2B comprises sales where the stores contract with professional customers, e.g. house builders and project developers. ** Organic is exclusive of the impact of the acquistion of AUBO Production A/S. * AUBO Production A/S is included in the consolidated ﬁgures as of 3 July 2023. At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 7 About Points of sAle Iceland TCM Group across Scandinavia norway 220 branded stores As of 31 December 2024 (comprising Svane Køkkenet, Tvis Køkken, AUBO and Nettoline) 112 Faroe islands Sweden Denmark 29 Danish stores 21 Danish stores 9 Norwegian stores 1 1 Norwegian store Icelandic store 27 Danish stores Norwegian stores Icelandic stores Faroese stores 24 Danish stores Norwegian shop- in-shop stores Icelandic stores Faroese stores CELEBERT online sales Online sales in Denmark, Norway, Sweden and Germany GErmany Store openings 2024 Total store openings 3 4 Nettoline AUBO At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 8 Key figures and ratios DKK’000 2024 2023 2022 2021 2020 DKK’000 2024 2023 2022 2021 2020 Income statement Revenue Growth ratios Revenue growth, % 1,203,783 1,084,126 1,111,030 1,073,490 993,392 11.0 -2,4 -5.6 3.5 8.1 1.5 Gross proﬁt 255,406 215,800 228,615 248,241 268,191 Gross proﬁt growth, % 18.4 62.4 -7.9 -24.9 -30.0 -36.3 -7.4 -1.4 2.8 -2.9 -9.0 -8.1 -8.2 Earnings before interest, tax, depreciation and amortisation (EBITDA) Adjusted EBIT growth, % EBIT growth, % -46.2 -52.7 -69.5 125,895 125,895 98,797 77,367 85,271 53,239 114,864 121,342 97,509 155,365 154,674 139,847 156,058 161,058 142,471 97.2 Adjusted EBITDA Net proﬁt growth, % 168.0 8.3 Earnings before interest, tax and amortisation (EBITA) Margins Gross margin, % Operating proﬁt before non-recurring items (Adjusted EBIT) 90,308 55,610 103,391 137,756 139,717 21.2 10.5 7.5 19.9 7.9 5.1 20.6 10.9 9.3 23.1 14.4 12.9 12.9 27.0 16.2 14.1 Operating proﬁt (EBIT) Financial items 90,308 -26,598 69,443 57,675 45,795 -20,897 27,092 21,522 96,913 -8,809 89,401 70,492 138,447 -3,262 135,738 110,709 134,717 -3,997 130,720 102,243 Adjusted EBITDA margin, % Adjusted EBIT margin, % EBIT margin, % Proﬁt before tax 7.5 4.2 8.7 13.6 Net proﬁt for the year Other ratios Solvency ratio, % Balance sheet 48.9 2.50 -1.2 1.7 44.1 4.08 -1.5 2.0 43.4 2.35 -4.3 2.0 46.3 1.33 -7.6 2.7 61.8 -0.23 -11.8 3.1 Total assets 1,206,544 -14,336 316,229 589,484 1,200,873 -13,160 349,312 529,653 970,227 -47,630 288,112 420,629 907,321 -81,649 199,461 419,691 929,451 -116,978 -42,873 574,373 Leverage ratio Net working capital Net interest-bearing debt (NIBD) Equity NWC ratio, % CapEx ratio excl. acquisitions, % Share information Number of outstanding shares Cash Flow 10,440,587 10,438,638 9,067,294 9,074,847 75,000 7.77 9,174,073 10,000,000 Operating cash ﬂow before acquisitions of 58,887 39,954 39,478 44,462 101,048 Weighted average number of outstanding shares Number of treasury shares 10,440,012 73,051 5.52 9,767,408 75,000 2.20 9,584,933 10,000,000 operations 825,927 11.55 0 10.22 10.22 CapEx excl. acquisitions Cash conversion, % 20,983 21,621 22,696 29,168 30,993 Earnings per share before dilution, DKK Earnings per share after dilution, DKK 84.3 37.6 53.3 58.3 85.8 5.51 2.20 7.76 11.54 * AUBO Production A/S has been included in the consolidated ﬁgures as of 3 July 2023; see note 26. See note 1 Accounting policies for further information. See page 75 for deﬁnitions of key ﬁgures and ratios. At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 9 TCM our business model development TCM Group is Scandinavia’s third-largest kitchen manufacturer, with headquarters and four production sites in Denmark and selling through approximately 220 points of sale across Scandinavia, including 112 branded stores. TCM Consumers operations CELEBERT online sales retail network TCM TCM operations retail Consumers development network Product development Production Customers / Sales consumers All products are Danish-designed, rooted in a proud tradition of good quality and good craftmanship. TCM Group has in-house architects and a research and development centre, and relies on strong partnerships with external partners, designers and subject matter experts. Manufacturing is largely carried out in-house at our four manufacturing sites located in Denmark. We distribute most of our products to thousands of end-customers through a retail network comprising 220 points of sale across Scandinavia, including 112 branded stores. This network is owned and operated by independent retailers or large building material providers. Through close collaboration, we aim to deliver high- quality products and exceptional service to our end-customers. We provide durable products that are built to last. It is our product strategy to ensure that the products that we oﬀer contribute to a healthy indoor environment and can be upgraded and renewed to extend their life. We work with circular design principles to ensure that once our products can no longer be used in their current form, they can be recycled into new products. Our retail network is a key pillar of our business, and the retailers act as the face of our brand, providing personalised advice, hands-on demonstrations and tailored solutions to meet diverse customer needs. Their expertise enables us to build long-lasting relationships with customers, making it easier to understand and respond to market demands. Sourcing Our focus is a local supply chain, and more than 90% of our direct materials are sourced in Europe. Logistics We rely on local distributors to ensure focus on end-to-end deliveries to the end-customer. At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 10 How we create value Celebert / Private label online / SHop-in-shopS Kitchens Kitchens Kitchens Kitchens Bathroom ﬁxtures Kitchens Bathroom ﬁxtures Utility room ﬁxtures Sliding door cabinets Bathroom ﬁxtures Utility room ﬁxtures Sliding door cabinets Bathroom ﬁxtures Utility room ﬁxtures Sliding door cabinets Bathroom ﬁxtures Utility room ﬁxtures Sliding door cabinets What we do Utility room ﬁxtures Sliding door cabinets Architect-designed kitchens Large assortment Flat pack Flat pack Large assortment Medium assortment Special capabilities Fast delivery Fast delivery Made-to-order Customisation Made-to-order Customisation Made-to-order Customisation Stock items Stock items competences Very high ﬂexibility Very high ﬂexibility At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 11 Our Business Strategy and financial outlook .....................................................12 Danish design and danish production ........................................14 risk management......................................................................................15 A Tvis kitchen is a long-term choice of Danish quality for your home. We know this because we have been making kitchens for more than 70 years. Plain, Fjordblå Duet At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 12 Financial Outlook 2025 Strategy and financial outlook As we enter 2025, we remain cautiously optimistic about the market outlook in general. While some inﬂationary pressures are easing and the central banks have begun to lower short- term interest rates, the full impact of interest rate adjustments on consumer conﬁdence and the level of activity in the housing market remains uncertain. Our ﬁnancial outlook for 2025 reﬂects this cautious optimism, with anticipated revenue growth across our core markets in Denmark and Norway, driven by continued B2C recovery combined with a potential recovery in the B2B project market in the second half of the year. We expect to be able to convert the growth in sales into increased proﬁtability through ongoing eﬃciency improvements and further integration synergies in AUBO. On the other hand, we expect continued input cost inﬂation, wages and logistics costs, which will put pressure on margins to the extent that we cannot pass on these increases through our sales prices. While investing in growth, our target is still to remain in the top tier of the kitchen industry with regard to proﬁtability and cash ﬂow. Strategy TCM Group’s overall strategy is to aim for double-digit annual growth rates in the short to mid term. This means we are aiming for growth in all brands, markets and channels. While investing in growth, our target is still to remain in the top tier of the kitchen industry with regard to proﬁtability and cash ﬂow. This will be achieved through eﬃciencies of scale, We expect to take full control of Celebert ApS by acquiring the remaining 55% stake in the company during the second half of 2025. Celebert ApS has delivered impressive revenue and earnings growth on the online market in recent years. By acquiring the remaining stake, we will gain full control of this important sales channel, enabling further sales and cost synergies. Celebert ApS generated revenue of approximately DKK 150 million in 2024, with an EBIT margin of around 11%. optimisation in our production and supply chain set-up, and investment in modern production technology. In addition to organic growth, the Group monitors the market for acquisition opportunities, primarily in Scandinavia, which resulted in the acquisition of AUBO Production A/S in 2023. The acquisition supported our growth strategy in Norway, and has substantially improved our footprint in the country without creating a conﬂict with our distribution of Svane Køkkenet and Nettoline. In 2024, we focused on integrating AUBO, delivering tangible synergies within sales, supply chain and administration. The integration journey will continue in the coming years. Tvis køkken MG50 CASE: Tvis Køkken Rebranding TCM Group estimates revenue for the ﬁnancial year 2025 to be in the range DKK 1,250-1,400 million exciting and sustainable kitchen, bath and storage solutions, designs and functionalities. The rebranding of Tvis Køkken has been a success. "With respect for your home", combined with new product variants inspired by classic designs, a broad product range, real home imagery, and a redesigned logo and store design, has clariﬁed the brand message, aligning with the trend towards authenticity and responsibility. As Denmark’s oldest kitchen brand, Tvis Køkken can credibly tell the story of timeless design and, with over 70 years of local production, document the enduring quality of its kitchens. This has set Tvis Køkken apart from other kitchen brands, and as a result Tvis Køkken has delivered double-digit sales growth two years in a row. Adjusted EBIT is estimated to be in the range DKK 90-120 million To support our growth ambitions in all brands and markets, we are continuing to invest in ﬂexibility at our four factories, while also * EBIT excluding non-recurring items. supporting our long-term growth ambitions. We will invest in further digitalising processes in our supply chain, administration and retail network, and thereby continuously improve and Forward looking statements This annual report contains statements relating to the future, including statements regarding TCM Group’s future operating results, ﬁnancial position, cash ﬂows, business strategy and plans. The statements are based on Management’s reasonable expectations and forecasts at the time of publication of the report. Any such statements are subject to risks and uncertainties, and a number of diﬀerent factors, many of which are beyond TCM Group’s control, could mean that actual performance and results diﬀer signiﬁcantly from the expectations expressed in the report. Such factors include, but are not limited to, general economic and commercial factors, including market and competitive matters, supplier issues and ﬁnancial issues. strengthen the entire value chain of our business. In all that we do, we are determined to act as responsibly as possible with regard to people, planet and products. Please see the separate ESG section for further elaboration of our strategic targets and initiatives. Group To extend the diﬀerent positionings of our brands and be our customers’ ﬁrst choice for the heart of their homes, we will continue to develop new, At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 13 Strategy Celebert / Private label online / SHop-in-shopS Kitchens Kitchens Kitchens Kitchens Kitchens Bathroom ﬁxtures Utility room ﬁxtures Sliding door cabinets Bathroom ﬁxtures Bathroom ﬁxtures Utility room ﬁxtures Sliding door cabinets Bathroom ﬁxtures Utility room ﬁxtures Sliding door cabinets Bathroom ﬁxtures Utility room ﬁxtures Sliding door cabinets Utility room ﬁxtures Sliding door cabinets SVANE KØKKENET TVIS KØKKEN AUBO NETTOLINE E-COMMERCE The Svane Køkkenet branded store network is fully established in Denmark, but there is still room to grow our market share within both the B2C and B2B segments. In recent years, we have focused on the B2B segment with the ambition to gain further market share as a contributor to growth in revenue and earnings. Furthermore, the B2B segment has a diﬀerent cycle compared, for example, with the B2C segment, including a pipeline with a longer time horizon. In light of the expected downturn in B2B sales due to the macroeconomic situation, in the second half of 2023 we decided, in collaboration with our franchise partners, to increase our focus on B2C sales, supported by investment in showroom upgrades and training of sales staﬀ. This shift in focus proved to be right, as we delivered double-digit growth in B2C sales in 2024. The Tvis Køkken brand has opened and relocated several stores in recent years, but there are still a few white spots in Denmark to be addressed. Market share and brand awareness are to be increased in line with the development of the store network. The rebranding and investments in the store network in recent years paid oﬀ in 2024, with Tvis delivering double- digit sales growth and B2C sales growing by more than 50%. The AUBO brand is selling through single-brand stores in Denmark and in Norway in the form of dedicated shop-in-shops operated by leading building materials distributor The Nettoline brand is selling through single-brand stores in Denmark and multi-brand stores in Norway. In both markets, there is room for additional stores, which will grow brand awareness and revenue. In 2024, we opened three Nettoline stores in Denmark. The cooperation with private-label clients will The online activity with the brands kitchn.dk, billigskabe.dk, Celebert and Just Wood is expected to continue, giving us a greater share of the kitchen market in Denmark and Norway. Optimera. In Denmark, four stores opened in 2024. In Norway, the focus is on increasing same-store sales within both B2B and B2C, as only a few white spots remain. continue as in recent years. For Svane Køkkenet in Norway, the mid- to long-term target is to open another 8-12 stores, giving us a network of 15-20 stores. However, store openings have been put on hold since 2023 due to the economic slowdown, and two stores closed in 2024. We are in the process of revisiting the growth plans for Svane Køkkenet in Norway in preparation for the expected recovery of the kitchen market in the near future. At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 14 Production at own factories in denmark Danish design and danish This ensures that we can oﬀer customised kitchens with a wide selection of designs, colours and functions. Storage solutions, e.g. sliding doors production Worktops Fronts Cabinets Tvis, site 1 production sites TCM Group’s production sites are located in Tvis and Aulum, with two factories in each town. Tvis, site 2 Aulum, site 4 Aulum, site 3 Co2 intensity per produced unit recycled content in chipboards used in production 2.11 kg 8,494 tons number of employees as of 31 December 2024 481 * Headcount. * Produced unit (no. of cabinets and metres of worktops) / scope 1 and 2. At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 15 risk management Risk management is an integral part of the management process at TCM Group. The objective is to limit uncertainties and risks with respect to the deﬁned ﬁnancial targets and strategic objectives for the Group. risk mitigation. This assessment is discussed and evaluated by the Board of Directors once a year. evaluated and mitigated in order to reduce the economic impact and/or likelihood of risks being realised. Besides this yearly assessment, the Board of Directors and the Executive Management have a continuous dialogue regarding signiﬁcant risks with potential material impact on the Group. In the following pages, we describe the main identiﬁed business and ﬁnancial risks as well as the related actions taken within the individual risk areas. The risk management, including internal controls in the ﬁnancial reporting process, is designed to eﬀectively minimise the risk of errors and omissions in the ﬁnancial reporting. Management performs a yearly assessment of business risks. A follow-up process has been established with the purpose of describing and evaluating a variety of business risks within the Group and implementing procedures to ensure The Executive Management is responsible for ensuring that risks are continuously identiﬁed, continuous process Evaluation Identification Map or catalogue the risks Classify the risk types Risk management Estimate the probability Planning of occurrence Respond and report Assess the risk impact AUBO Unik, Rose Sand At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 16 Business Risks Risk area Description Management The Group is exposed to general macroeconomic trends and ﬂuctuations. Speciﬁcally, The vast majority of the Group’s products are made to order, which, combined with a high degree of ﬂexibility Market risks developments in the Danish and Norwegian housing markets are an important factor for the in the workforce, means that the Group can respond quickly to changes in market demand. Group’s revenue and ﬁnancial position. The Group regards the Svane Køkkenet, Tvis Køkken, Nettoline and AUBO brands as some of its most valuable assets. The reputation of these brands plays a crucial role in their attractiveness and appeal to customers. Consequently, maintaining and enhancing the Group’s brand reputation is essential for sustaining and growing revenue and proﬁtability. The Group monitors customer satisfaction at brand and store level, and takes appropriate action when the targeted levels are not met. This, combined with high standards for quality and delivery performance, is Management’s proactive means to protect the brand reputation. Brands, trademarks and relevant design rights are registered in the main markets in which the Group’s products are sold. Reputational risks The Group is exposed to the risk of losing customers, for example due to ﬁnancial diﬃculties or The Group’s customer risks relate primarily to developments in sales at our 112 branded stores. The debtor risk related to the stores represents the main ﬁnancial risk and is closely monitored to mitigate the risk of losses, primarily by requiring appropriate collateral for current trading balances. Customer risks preference for other brands. Access to sustainable sources of raw materials is essential. The Group relies on raw materials such as wood, steel, aluminium and plastics. Fluctuations in the cost of components (e.g. drawer systems, handles, hinges and basins) and goods for resale (e.g. appliances) are primarily driven by changes in raw material prices and the competitive landscape. Disruptions in the supply of raw materials and components can lead to delays in the production and delivery of ﬁnished goods, potentially resulting in increased costs, lost revenue and dissatisﬁed customers. The Group aims to maintain multiple suppliers for each raw material and component category to improve commercial terms and ensure reliable supplies. Measures such as eﬃciency improvements, revised product speciﬁcations and sales price adjustments help mitigate the impact of rising raw material and component costs. Raw material purchasing risks The Group is exposed to the risk of not being able to fulﬁl customer orders, for example due to ﬁre, Fire prevention is a Management priority and is conducted in collaboration with our insurance company. Our maintenance department, in partnership with external experts, performs essential machine maintenance and repairs. In recent years, we have carried out extensive maintenance and upgrades on critical production lines, extending their useful life by several years. Production risks machine failure or lack of personnel. Additionally, we maintain a constructive relationship with our production employees, supported by multi- year collective wage negotiation agreements. The Group relies on IT systems in its day-to-day operations. Disruptions or faults in critical production systems have a direct negative impact. Errors in the handling of ﬁnancial systems can aﬀect the company’s ﬁnancial reporting. The Group has its own ERP system, which is regularly maintained and updated. IT security is a top priority, and we work with external experts to achieve a level of security appropriate for the Group. CYBER Risks The Group’s manufacturing activities at its four production sites expose employees to workplace hazards, and waste generated during production processes has the potential to harm the environment. Optimising occupational health conditions and preventing both internal and external contamination are key focus areas at TCM Group’s production sites. The Group has implemented a registration system for occupational accidents and near-miss incidents, emphasising the prevention of future occurrences. An occupational health organisation, comprising Management and employee representatives, has been established and operates eﬀectively. Risks related to pollution and occupational health The Group is insured against signiﬁcant damage to property, plant and equipment, and maintains close dialogue with authorities and insurance providers to further enhance risk mitigation eﬀorts related to ﬁre, pollution and other hazards. At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 17 Financial Risks Risk area Description Management Liquidity risks pertain to the Group's ability to provide the necessary liquidity to secure a capital The Board of Directors continuously assesses whether the Group’s capital structure is in line with the interests of the Group and its stakeholders. The Group’s ﬁnancial risks are managed centrally, as is the Group’s liquidity management, including cash requirement and placement of excess liquidity. Liquidity risks structure that supports long-term proﬁtable growth. It is Management’s assessment that the current capital structure provides the necessary ﬂexibility to accelerate and support the Group’s future strategy. Credit risks refer to potential losses arising from the Group’s customers or counterparties in The Group’s customer base primarily consists of professional clients. Credit management and payment terms are carefully monitored for each customer segment. The Group extends credit to franchisees and dealers, its primary customers, who generally operate on short payment terms, thereby minimising overall exposure. Regular credit assessments are conducted for customers with recurring purchases. Additionally, the Group utilises bank guarantees, credit insurance and other forms of collateral tailored to diﬀerent markets and customer categories. Credit risks ﬁnancial contracts failing to meet their payment obligations. Transaction exposure occurs when sales and costs are in diﬀerent currencies. Exchange rate ﬂuctuations may have an impact on the Group’s earnings and valuation of assets. The Group operates with a relatively low risk proﬁle with regard to currency ﬂuctuations. The Group does not purchase signiﬁcant amounts of raw materials outside the eurozone. Invoicing of sales is charged in DKK and NOK. In terms of invoicing sales in NOK, the Group applies a hedging strategy to limit the impact of currency ﬂuctuations for up to six months ahead. Currency risks The Group is exposed to the risk of increases in the interest rate, which may have an impact on the Group's earnings. The Group manages interest rate risks by applying a mix of bank loans and mortgage loans. It is Group policy to fully or partially hedge interest rate risks on loans if the risk is material. An interest rate increase of 1% will have a negative impact on the Group’s proﬁt of around DKK 2.2 million. Interest rate risks At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 18 PERFORMANCE highlights Financial & non-financial highlights..........................................19 Addressable market overview ........................................................20 Business Review........................................................................................21 Financial review.......................................................................................22 Sembra Scala At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 19 Financial & non-financial highlights Financial Non-Financial Revenue, DKK Leverage Ratio (31 December) AVERAGE NO. of EMPLOYEES Co2 emission reductioN 2024 (scope 1 and 2) 1,204 m 2.50 460 53 % Compared with baseline year (2021) (1,084) (4.08) (445) Women 34% (34) Adjusted EBIT, DKK NWC ratio (31 December) Committed to SBTI 90 m -1.2 % (56) (-1.2) Men 66% (66) At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 20 Addressable market overview period of high activity during the pandemic, with rising construction and wage costs. Similarly, Norway faced a contraction due to high interest rates and elevated construction costs, As a leading player in the Scandinavian kitchen industry, TCM Group is impacted by external market factors. In 2024, the kitchen industry faced signiﬁcant headwinds from the declining level of residential construction activity in Denmark and Norway. compounded by weak sales of new homes in 2023. Despite the 2024 downturn, both markets are expected to recover, with improving economic conditions stimulating demand for kitchens. Residential property sales are recovering The Danish housing market has been showing signs of recovery, culminating in a strong performance in 2024 with total property sales rising by around 10% (see graph opposite). After posting a modest increase in 2021 compared with 2020, the market declined sharply in 2022, then rebounded with growth of nearly 7% in 2023, indicating a steady upward trend. Despite these headwinds, signs of stabilisation and expected growth in 2025, supported by the recovery in residential property sales, oﬀer a promising outlook for the industry. Svane Køkkenet Snedker Raw Deco, Rosa In 2024, the Danish housing market experienced a signiﬁcant surge in transactions, with vacation homes and single-family homes leading the growth at 13% and 11% year-on-year, Residential construction activity 2020-2025F (index 2020) Residential property sales 2020-2024 Residential construction continued to decline in 2024 Residential construction activity continued to decline in 2024 in both Denmark and Norway, with decreases of 3% and 7% respectively (see graph opposite). While this downturn negatively impacted kitchen sales, the annual declines were less severe than in 2023, which saw reductions of 12% in Denmark and 11% in Norway. Looking ahead, activity in both Denmark and Norway is expected to recover in 2025 with projected increases of 1-2% and 7-8% respectively. (index 2020) respectively. Apartment transactions also saw an increase, though at a more moderate 6%. 120 120 110 100 90 Denmark Norway Denmark Norway 110 The Norwegian housing market also showed signs of recovery in 2024, with year-on-year sales increasing by approximately 9% after declines in the two preceding years. The recovery in both markets is expected to stimulate kitchen demand, as new homeowners often renovate to personalise their new spaces. 100 90 80 70 80 The decline in residential construction activity in Denmark and Norway during 2024 reﬂected broader economic adjustments and cost 70 2020 2021 2022 2023 2024E 2025F 2020 2021 2022 2023 2024 pressures. In Denmark, the slowdown followed a Source: Euroconstruct and internal analysis. Note: Residential construction activity includes both new residential builds and residential renovations. Source: Boligsiden and Eiendom Norge. Note: Residential property sales in Denmark and Norway do not include holiday homes. At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 21 Meanwhile, the Group opened three Nettoline stores in Denmark during 2024, and AUBO expanded its retail network in Denmark by opening four additional stores. Business review TCM Group launched several new products, including New Tradition and ARC1 under the The slowdown in B2B sales, particularly project sales, was partially oﬀset by strong growth in B2C sales. In the ﬁrst half of the year, the company continued to beneﬁt from the robust project sales pipeline built in recent years, allowing time to adjust production capacity to lower demand levels. The change in sales mix and the full-year eﬀect of AUBO Production A/S lifted the gross margin from 19.9% in 2023 to 21.2%. In the second half of the year, production bottlenecks, caused by high demand for lacquered products, negatively impacted production costs and gross margin. These bottlenecks will be eliminated in 2025 through investment in a new lacquering facility at Factory 1 in Tvis. Reported revenue increased by 11.0% in 2024 to DKK 1,204 million (2023: DKK 1,084 million). Organically, sales in the core business (excluding the impact of the acquisition of AUBO Production A/S) declined by 5.1% (revenue excluding third- party revenue). Svane Køkkenet brand. Revenue in Denmark increased from DKK 915 million in 2023 to DKK 969 million, Sustainability and ESG initiatives corresponding to an increase of 5.9%. Organic like-for-like growth in Denmark was 1.4%. The focus on sustainability and ESG strategy continued in 2024. Key achievements included the mapping of scope 3 emissions to establish a baseline. In the coming years, we plan to collaborate with upstream and downstream partners to reduce emissions. Consistent with SBTi recommendations, our goal is to reduce scope 3 emissions by 42% by 2050. Revenue outside Denmark grew from DKK 169 million in 2023 to DKK 235 million, corresponding to an increase of 39.2%. This growth was driven by the full-year eﬀect of the acquisition of AUBO Production A/S. However, sales in the existing TCM distribution in Norway declined by 9.5%. Adjusted EBIT ended the year at DKK 90.3 million, compared to DKK 55.6 million in 2023 and the most recent ﬁnancial outlook of DKK 75–90 million. The initial ﬁnancial outlook for 2024, as stated in the Annual Report 2023, was DKK 55–85 million. Scope 1 and 2 emissions were reduced by 2% in 2024 , despite an increase in activity in the generally energy-intensive lacquering department, as this was oﬀset by energy eﬃciency measures in other areas. The number of branded stores increased to 112 during 2024. Reported revenue of DKK 1,204 million slightly exceeded the most recent ﬁnancial outlook of DKK 1,150–1,200 million. The higher-than- expected revenue was attributed to stronger- than-anticipated demand in the Danish kitchen market in the latter half of Q4 2024. The initial revenue outlook for 2024, as stated in the Annual Report 2023, was DKK 1,000–1,150 million. Innovation and product development Innovation and the development of new, attractively designed products aligned with the latest trends and consumer preferences remain central to TCM Group’s strategy. In 2024, TCM Group launched several new products, including New Tradition and ARC1 under the Svane Køkkenet brand. As part of our commitment to transparency regarding the environmental impact of our products, we released third-party-approved environmental product declarations (EPDs) for the AUBO brand. With this addition, all TCM Group brands are now covered by EPDs. Within Svane Køkkenet in Denmark, the focus was on strengthening the retail network through changes in ownership structures. In Norway, the stores in Aalesund and Kristiansand closed during the year due to the continued downturn in the Norwegian kitchen market. Two small Tvis Køkkenet stores in Norway also closed. Workforce The average number of employees in 2024 was 460, compared to 445 in 2023. The workforce in production functions was adjusted during the year to align with ﬂuctuating demand. As of 31 December 2024, the total number of employees was 481. Svane Køkkenet New Tradition At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 22 expenses. Additionally, the gross margin beneﬁted from a changed sales mix, with a higher share of generally higher-margin B2C sales. Revenue (DKKm) Adjusted Ebit (DKKM) Financial review In the second half of 2024, production costs were negatively impacted as high demand for products such as lacquered items led to increased overtime production costs and greater reliance on external sourcing. 160 140 120 100 80 60 40 20 0 1200 1000 800 600 400 200 0 Revenue Revenue in 2024 increased by 11.0% to DKK 1,203.8 million (DKK 1,084.1 million in 2023), with a slightly negative organic decrease of 0.5% (excluding the impact of the acquisition of AUBO Production A/S in July 2023). Operating expenses – cost ratio 15.3% Operating expenses in 2024 totalled DKK 184.5 million (DKK 166.6 million). The DKK 17.8 million increase was primarily caused by the full-year eﬀect of the acquisition of AUBO Production A/S. However, underlying operating expenses decreased, mainly due to lower realised losses and reduced provisions for potential losses on trade receivables, which amounted to DKK 2.3 million (DKK 14.8 million). Operating expenses accounted for 15.3% of revenue in 2024, compared to 15.4% in 2023. Revenue in the core business grew by 8.3%, with an organic decrease of 5.1%, primarily due to the downturn in the B2B project market. Revenue from the supply of third-party products (non- core business) increased by 20.0%, with organic growth of 14.2%. This was supported by growth in core B2C sales, which typically drive higher third-party sales, as well as increased third- party sales to e-commerce. 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Adjustment of contingent payment obligation The contingent payment obligation related to the acquisition of AUBO Production A/S was adjusted in 2024 leading to an income of DKK 9.5 million (DKK 1.0 million). The remaining contingent payment obligation had been based on certain sales performance targets for the years 2024 to 2027. Revenue in Denmark reached DKK 969.0 million (DKK 915.4 million), reﬂecting absolute growth of 5.9%. Organic like-for-like growth was 1.4%, despite the signiﬁcant downturn in the project market. Revenue in Norway was up 43.0% at DKK 222.9 million (DKK 155.8 million), driven by the full-year eﬀect of the AUBO Production A/S acquisition. However, Norway experienced a 10.0% organic decline in revenue, attributed to the closure of two Svane stores in the ﬁrst half of 2024. Revenue from other countries totalled DKK 11.8 million, compared to DKK 12.8 million in 2023. Reported revenue growth Adjusted EBIT margin OTHER INCOME Other income amounted to DKK 9.5 million (DKK 5.4 million), and includes income from salary subsidies and reimbursements, as well as certain types of marketing subsidy. Gross profit – gross margin 21.2% Gross proﬁt in 2024 amounted to DKK 255.4 million (DKK 215.8 million), corresponding to a gross margin of 21.2% (19.9%). The improvement in gross margin was driven by the full-year eﬀect of the inclusion of AUBO Production A/S, whose operating model provides a higher direct margin, though this is largely oﬀset by higher operating Adjusted EBITDA – margin 10.5% Adjusted EBITDA in 2024 was DKK 125.9 million (DKK 85.3 million), corresponding to an adjusted EBITDA margin of 10.5% (7.9%). The increase in adjusted EBITDA margin was driven by the higher gross margin and the increase in other income. 11.0 % 7. 5 % * Figures in brackets refer to the corresponding period in 2023. At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 23 Adjusted EBIT – margin 7.5% million in 2023. Free cash ﬂow was positively impacted by the higher operating proﬁt, whereas the change in net working capital impacted the free cash ﬂow negatively by DKK 0.4 million, compared to a positive impact of DKK 22.2 million in 2023. 31 December 2024 exclude DKK 6.7 million related to subleases accounted for under IFRS 16 (DKK 8.5 million). These sublease receivables are not considered part of net working capital. Adjusted EBIT in 2024 was DKK 90.3 million (DKK 55.6 million), corresponding to an adjusted EBIT margin of 7.5% (5.1%). The increase in adjusted EBIT margin was driven by a higher gross margin and lower operating expenses ratio. Depreciation and amortisation amounted to DKK 35.6 million (DKK 29.7 million), with the increase being largely attributable to the full-year eﬀect of the acquisition of AUBO Production A/S. Net working capital (dkkm) 2020 2021 2022 2023 2024 0 Operating liabilities decreased by DKK 24.6 million to DKK 197.9 million, driven by lower trade payables at year-end, due to lower -20 -40 Cash conversion in 2024 was 84.3% (34.2%). purchasing volumes in the fourth quarter of 2024. Additionally, the government’s inﬂation support package, which amounted to DKK 5 million as at 31 December 2023, was fully repaid during 2024, further reducing operating liabilities. Net working capital – NWC ratio -1.2% Net working capital (NWC) at the end of 2024 was DKK -14.3 million (DKK -13.2 million). The NWC ratio at the end of 2024 stood at -1.2% (-1.2%). -60 -80 Non-recurring items TCM Group presents non-recurring items separately to ensure comparability. Non- recurring items consist of income and expenses that are special and of a non-recurring nature. No non-recurring items were recorded in 2024. Inventories decreased by 4% to DKK 89.1 million. Inventory levels had generally declined at all sites since the beginning of 2023, following the normalisation of the market supply situation. This process continued throughout 2024, although at a slower pace. Net interest-bearing debt – leverage ratio 2.50 Net interest-bearing debt totalled DKK 316.2 million at the end of 2024 (DKK 349.3 million), as the free cash ﬂow was used for debt reduction. As a result of the higher adjusted EBITDA and reduced net interest-bearing debt, the leverage ratio decreased to 2.50 (4.08), remaining well within the covenants agreed upon in the ﬁnancing agreements. -100 -120 non-recurring items Non-recurring items, DKKm 2024 2023 Trade receivables and other receivables decreased by DKK 19.4 million to DKK 86.2 million, as the timing of customer payments at year-end was favourable for the Group. Other receivables as at Transaction costs related to business combinations 0.0 2.8 The Board of Directors recommends to distribute an ordinary dividend of DKK 3 per share. Impairment of ERP project, AUBO Production A/S Equity – solvency ratio 48.9% 0.0 0.0 0.0 1.9 5.1 Equity at the end of 2024 amounted to DKK 589.5 million (DKK 529.7 million). Equity increased by DKK 59.8 million during 2024, largely equal to the net result for the year. Restructuring Total 9.8 The Board of Directors will propose to the Annual General Meeting to distribute an ordinary dividend of DKK 3 per share. Excluding treasury shares this corresponds to DKK 31 million. EBIT EBIT for the ﬁnancial year 2024 was DKK 90.3 million (DKK 45.8 million). The increase in EBIT compared with 2023 was driven by the same factors impacting the development in adjusted EBIT, further supported by the absence of non- recurring items. The solvency ratio was 48.9% at the end of 2024 (44.1%). NWC ratio (%) Leverage ratio Events after the balance sheet date Net profit No subsequent events have occurred that Net proﬁt for the ﬁnancial year 2024 was DKK materially aﬀect TCM Group’s ﬁnancial position. 57.7 million (DKK 21.5 million). -1.2 2.50 Free cash flow excl. acquisitions of operations Free cash ﬂow excl. acquisitions of operations in Svane Køkkenet Inﬁnity Sands 2024 was DKK 58.9 million against DKK 40.0 At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 24 ESG ESG strategy and Approach ...............................................................................25 Double materiality ASSESsMENT......................................................................26 Environment................................................................................................................27 Social ..............................................................................................................................31 READERS' GUIDE NON-FINANCIAL DISCLOSURE REQUIREMENTS AS PER THE DANISH FINANCIAL STATEMENTs ACT Topic Page Reference Section 99A Business model............................................................................................... 9-10 Content of policies for sustainability, systems and due diligence processes results and KPIs: ESG strategy and approach.....................................................................25 Environment.........................................................................................27-30 Social....................................................................................................... 31-34 Supplier management and anti-corruption.....................................38 Section 107D Target ﬁgures for the management body............................................37, 43 Policy for promoting underrepresented gender and diversity at management level.........................................................31-33 Section 99D Data ethics.............................................................................................................38 * Covers TCM Group and all its subsidiaries Notes Gold At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 25 ESG strategy and Approach E S G EnviroNment Social Governan ce Our ESG strategy sets the direction for embedding sustainability more deeply into every aspect of our business. Guided by the UN Sustainable Development Goals, the strategy builds on our core values and brands, integrating sustainability throughout our value chain – from raw materials to after-sales and service. New ways ahead Products & Resour Climate action ces A sustainable work life Governance Approach • • Reduce carbon footprint of own production • New designs to be based on circular design principles 100% certiﬁed timber Minimise/optimise resources with focus on packaging material • • A safe and secure work environment that enhances personal development Flexibility to support a clear balance between work life and private life, and between individuals, teams and organisation • • Promote and enable responsible business conduct Our ESG strategy outlines transformative targets to guide decisions and actions within four priority areas: Reduce carbon footprint of value chain following SBTi guidelines • • Conduct proper due diligence of suppliers and partners • Minimise production waste • • • • Sustainable Work • Diversity and social commitment We Take Responsibility New Ways Ahead Together We Improve Focus These priority areas represent where we believe our business activities can have the greatest impact on sustainable development. • • 42% reduction in scope 1, 2 and 3 emissions by 2050 Reduction of waste in production • Circluar design principles in product development • 0 accidents/1,000,000 working hours (LTIF) • • All suppliers to have signed TCM Code of Conduct • • 100% certiﬁed timber • • Gender equality Supplier risk management to include ESG scorecard By adopting a systematic approach to sustainability, we aim to strengthen our relationships with key stakeholders, support business growth and continuously mitigate negative impacts through ongoing learning and improvement. TCM packaging to be recyclable 2% of employees employed as "ﬂex workers" reference / Guiding principles • • • §99a • ESRS E5 Resource use and circular economy • • §99a • • §99a, §99d, 8107d TCM Group has been a signatory to the UN Global Compact for over a decade, adhering to its Ten Principles on human rights, labour, the EU Taxonomy ESRS E1 Climate change ESRS S1 Own workforce ESRS G1 Business conduct environment and anti-corruption. TCM Group has used the Corporate Sustainability Reporting Directive (CSRD) and ESRS guidelines as preparation for when the Group expectedly falls within the scope of the CSRD in 2025. At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 26 documentation and surveys, combined with reviews in the Internal Working Group. materials/items that are hard to replace with better alternatives. Working with machinery, etc. always entails a risk of work-related accidents. Double Overview of material topics Overview of our material topics identiﬁed during our 2. Stakeholder involvement materiality assessment Next, we gathered information and perspectives from key stakeholders. Through workshops, questionnaires and interviews, we engaged with a variety of stakeholders, including customers, employees, the Board of Directors, brands, investors, suppliers and subject matter experts. The stakeholder perspectives that we gathered provided us with insights that helped qualify the longlist of ESG topics with both positive and negative impacts as well as ﬁnancial risks and opportunities. We see an opportunity in circularity, as we are already using materials with a high degree of recycled content. We also see an opportunity in continuing our work with diversity. There are no identiﬁed material sustainability-related risks besides those related to impacts. preliminary double materiality assessment High / 5.0 4 As a key element of our preparation to ensure 2 Important topics such as waste, corruption, bribery and protection of whistleblowers do not feature as material topics in TCM’s DMA due to the low likelihood of incidents occurring thanks to mitigating actions taken by TCM to address these topics. These topics are considered of ongoing importance by TCM and will be continuously monitored to ensure that the processes in place are working. Based on current knowledge and methodology, the topic of biodiversity and ecosystems is not considered material given our value chain, geographical presence and use of raw materials. The materiality of these topics will be re-evaluated each year. 1 compliance with the currently applicable EU Corporate Sustainability Reporting Directive (CSRD) in 2025, TCM Group has concluded our ﬁrst double materiality assessment (DMA). 5 6 3. Assessment of impact materiality and ﬁnancial risks and opportunities 3 Each topic was assessed as “actual” or “potential” and rated based on positive and negative impacts as well as ﬁnancial risks and opportunities. All topics were rated according to scale, scope and irremediability, and, in the event of potential impacts, likelihood. Each dimension was rated from 1 to 5 and an average score then calculated for each topic. With regard to both sustainability impact and ﬁnancial impact, TCM has deﬁned 3.5 as the threshold for when a sustainability topic in our DMA becomes signiﬁcant enough to inﬂuence the decisions of stakeholders or have a substantial impact on the company, the environment or society. Hence, topics with a score equal to or higher than 3.5 are deﬁned as material. The DMA evaluates how environmental, social and governance (ESG) factors impact TCM’s ﬁnancial performance (outside-in) and how TCM’s operations aﬀect society and the 3.5 High / 5.0 environment (inside-out), aligning with CSRD and European Sustainability Reporting Standards (ESRS) guidelines. TCM Group's DMA aims to balance sustainability priorities with business objectives, and it is our goal to drive constant improvement and track progress as an integral part of our ESG management system. Our DMA applies to the entire TCM Group. Financial materiality The outcome of the DMA conducted in 2023/24 is preliminary and will serve as the basis for preparation of ESRS-compliant reporting, if applicable, in 2025. 1 Climate impact Health and safety Diversity 2 3 4 Energy use and eﬃciency 5 Circularity Our process 4. Review and approval The management team and the ESG Steering Committee formed the Internal Working Group, which is informed by external sustainability consultants on an ongoing basis. The assessment process involved the Board of Directors, which also approved the process. Going forward, approval of the DMA will be the responsibility of the Audit Committee. 6 Corporate culture Watchlist 1. Longlist of ESG topics Preliminary assessment of topics Biodiversity and ecosystems Initially, a longlist of sustainability topics was thoroughly assessed through desktop research, benchmark analysis, analysis of existing The topics represent risks as well as opportunities for TCM Group. The impact of ﬂuctuating energy prices is an obvious risk, as well as the use of At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 27 E Emissions Environment Scope 1 and 2 Emissions Total scope 1, 2 and 3 emissions We take pride in the fact that all our products are designed and manufactured in Denmark. Good craftsmanship is at the core of our production, complemented by a focus on quality and a high degree of innovation. We recognise that operations carry the risk of negatively impacting the environment and are committed to Furthermore, we have committed to monitoring and reducing our scope 3 emissions. TCM Group is committed to the Science Based Targets initative (SBTi) and to reducing our scope 1 and 2 emissions by 42%, compared with our 2021 baseline year, by 2030. In 2024, TCM reduced our scope 1 and 2 emissions by 53% compared with our baseline year. Of TCM Group's total emissions, our value chain emissions (scope 3) account for 99%. Purchased goods and services (category 1) account for more than 85% of our total emissions. Category 1 emissions include emissions from direct raw materials, goods and services related to production as well as emissions related to third-party products such as white goods, worktops and mirrors. In 2024, TCM Group mapped its scope 3 emissions using 2023 as the baseline year. Our focus has been on ensuring data validity. Ton CO2e 100% 80% 60% 40% 20% 0% 3000 continuously reducing our climate impact, minimising production waste and increasing our waste recycling rate. Going forward, we will continue to monitor these emissions and establish reduction targets to be approved by the SBTi. 2500 2000 Emissions TCM’s scope 1 and 2 emissions account for only 1% of the company’s total greenhouse gas (GHG) emissions. These emissions primarily originate from manufacturing sites and from the company’s vehicle ﬂeet, which includes cars and service vans. Despite representing a small share of total GHG emissions, TCM considers scope 1 and 2 emissions material because they result from operational activities that TCM can directly inﬂuence. 42 % In 2023, TCM Group committed to the Science Based Targets initiative (SBTi). TCM has pledged to reduce its scope 1 and 2 emissions by 42% by 2030, using 2021 as the baseline year. By doing so, TCM is following a decarbonisation trajectory that limits the global temperature rise to 1.5°C above pre-industrial levels, aligning with the goals of the Paris Agreement. 1500 1000 500 0 53% 2021 2022 2023 2024 2030 Scope 1 & 2 Scope 3 Purchased goods and services Upstream transportation and distribution (category 4) Other scope 3 categories TCM actual 2021-2024 SBTi-approved target / recommended SBTi trajectory (category 1) Actions planned for 2024 Actions undertaken in 2024 What next? Reduce scope 1 and 2 emissions Added more electric vehicles (EVs) to the car ﬂeet. In 2024, 21% of the cars were EVs, compared to 6.9% in 2023. Non-fossil ﬂeet of company cars by 2028. Transport Distribution of CO2 emissions (scope 1 and 2) The shift in the distribution of TCM Group CO2 emissions in 2024 is a result of having added more electric vehicles to our car ﬂeet. 18% Electricity Map scope 3 emissions Deﬁned baseline of scope 3 for Improve data collection. Deﬁne reduction targets and projects for scope 3. 20% 2023 and tracked progress. 0% 0% Expand product portfolio covered by environmental product declarations (EPDs) Products in AUBO's product portfolio covered by EPDs. Expand product portfolio covered by EPDs. Heating 82% 80% 2024 2023 At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 28 Scope 1 and 2 emissions consumption is covered by renewable electricity TCM Group then uses in the production of new kitchens. Wood of useable size ﬁnds new use as serving trays or is delivered to wood workshops at local schools. year. The reason for this increase is the use of In 2024, TCM Group’s absolute scope 1 and 2 GHG market-based emissions decreased by 53% compared with 2021. certiﬁcates. spend-based emission factors to deﬁne our scope 3 emissions where activity-based data has not been available. Due to higher purchasing costs, we observed higher emissions for the same, or even lower, volumes of purchased goods and services in 2024 compared with 2023. We continue to promote awareness of how daily habits and behaviour can impact energy eﬃciency at our production facilities. Through transition to district heating and electric heat pumps, where possible in terms of infrastructure and economic feasibility, as well as having all electric consumption covered by renewable energy certiﬁcates from wind and solar power, TCM has already reached its target for scope 1 and 2. TCM Group will continue to prioritise waste management and reduction both internally and with suppliers, while actively engaging in external partnerships. In 2025, we anticipate an increase in energy consumption due to investments aimed at expanding capacity for lacquering processes. Additionally, investment in new processing equipment has directly contributed to an increase in our scope 3 emissions. Scope 3 emissions Company cars As part of our commitment to the Science Based Targets initiative (SBTi), TCM Group has mapped our scope 3 emissions with 2023 as the baseline year. Scope 3 emissions refer to sources that are not directly owned or controlled by TCM Group. TCM has included third-party products, such as white goods, in our emissions calculations, and these account for more than 45% of our category 1 emissions. Changes in product mix and an increase in third-party products have a direct impact on our scope 3 emissions. TCM operates a ﬂeet of company cars consisting of 28 passenger vehicles and commercial vans. To reduce our impact, we have updated our company car policy to ensure that we transition to electric cars as existing vehicles are replaced. We will continue to phase natural gas out of our operations as this becomes possible in terms of infrastructure and economic feasibility. Going forward, our focus is on identifying further reductions potential, phasing out fossil-based energy and ensuring that emissions do not increase as a result of TCM's growth strategy. TCM Group’s scope 3 emissions account for 99% of our total emissions. Waste Going forward, we will work closely with our suppliers to reduce the reliance on spend-based emission factors, increase the use of activity- based factors and identify a catalogue of reduction opportunities. Reduction of our scope 3 emissions will to a large extent be dependent on our suppliers taking action on reducing their scope 1,2 and 3 emissions. At TCM Group, we maintain a constant focus on limiting waste. At our manufacturing sites, all waste is sorted into material fractions, enabling us to ensure that waste is utilised with the highest possible resource value. Our wood fraction is returned to our chipboard supplier and, together with wood from Danish recycling centres, used for production of chipboards, which Our value chain and the production of raw materials used for products produced by TCM Group are predominately based in Europe, where more than 90% of production occurs. Electricity consumption In 2024, TCM’s electricity consumption increased by 3%. This increase resulted from the transition towards an electricity-based system as a means to reduce our direct emissions. All electricity In 2024, our scope 3 emissions were 107,180 tons CO2e, which is 6.8% higher than our baseline scope 1 & 2 1% 86% 4% 1.18% 0.08% (93,141 tonS) (3,955 tons) (1,281 tons) (82 tons) Production of raw materials transport of raw materials Waste and recycling Manufacture Sales Transport Use 8% (8,713 tons) Upstream activities Tcm Group Downstream activities scope 3 99% At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 29 C6 - Business travel: Calculated based on milage allowances for employee travel in own cars and GHG emissions from plane travel provided by our travel agent. Uncertainties and estimates Where possible, activity-based data has been used as the basis for our scope 3 calculations. Environmental data Where activity-based data has not been available, spend-based data has been used either on the basis of “Klimakompasset” or “Ecoinvent”. C7 - Employee commuting: Calculated based on estimates of distance travelled and travel type. Estimated based on an internal employee survey. CO2 emissions Accounting practices Products categorised as third-party products, such as white goods and mirrors, which are included in deliveries to customers, are To follow up on progress towards emissions reduction targets, greenhouse gas emissions (expressed as carbon dioxide equivalent, CO2e) are reported annually. CO2e is categorised into three scopes according to the methodology of the Greenhouse Gas Protocol Corporate Standard (GHG Protocol). CO2 emissions are calculated with reference to GRI 305 Emissions. The tracking of CO2e emissions is aligned with UNGC principles 7, 8 and 9. to 2023) is based on market environmental C12 - End-of-life (EOL) treatment of sold products: Product use and EOL are based on TCM's veriﬁed environmental product declarations. accounted for as raw materials and transport. However, they are excluded from our scope 3 emissions calculations after delivery to the end- customer. This exclusion applies to the use of sold products and their end-of-life treatment, as these aspects are beyond our control and inﬂuence over their design and use. Scope 3 – other emissions declarations (MD-23121, MD-23122, MD-24065). Scope 3 emissions relate to sources that are not directly owned or controlled by TCM. These cover emissions from purchased goods and services (e.g. particleboards, edgeband, hinges, packaging and transport purchased from suppliers) as well as process waste from production sites, capital goods and emissions related to franchise stores. Our reported scope 3 inventory is based on the GHG Protocol, which is split into 15 subcategories (C1-C15): C14 - Franchises: Calculated based on activity data from franchise stores multiplied by relevant emission factors. C15 - Investments: Calculated based on activity data from Celebert ApS - based on TCM's 55% ownership of Celebert ApS. Employee commuting is based on an employee survey to deﬁne means of transportation and distance travelled as well as average number of working days per year per employee. It is assumed that the average per employee that applied in our baseline year is the same for the 2024 calendar year. TCM Group does not use carbon credits as a means to reduce CO2e emissions. Subcategories C8, C9, C10, C11 and C13 are not relevant for TCM Group. Scope 1 – all direct emissions Scope 1 emissions are related to activities within TCM’s control. This includes transport using TCM’s vehicles (leased and owned cars) and direct emissions from TCM’s production. C1 - Purchased goods and services: Primary raw materials for products are calculated based on GHG emissions provided by subsuppliers. Other purchased goods and services are calculated as categorised spend data multiplied by relevant spend-category-speciﬁc emission factors. unit 2024 2023 2022 2021 2020 The CO2e emissions are based on the invoiced energy consumption per source. The CO2e factors applied are based on market statistics for petrol, diesel and LPG gas. CO2 Emissions C2 - Capital goods: Categorised spend data multiplied by relevant spend-category-speciﬁc emission factors. CO2e, total scope 1 Vehicles tCO2e tCO2e tCO2e tCO2e tCO2e tCO2e tCO2e tCO2e ratio 1,195 222 974 0 1,215 237 989 5 1,224 227 984 12 1,516 225 1,435 210 Natural gas 1,243 47 1,191 34 The CO2e factors for natural gas are based on environmental declarations from the supplier. Others C3 - Fuel- and energy-related activities: Calculated based on actual fuel consumption multiplied by relevant emission factors. CO2, total scope 2 Electric power District heating CO2, total scope 1+2 CO2e intensity (revenue) 16 16 892 888 4 1,041 1,035 6 1,703 1,698 5 Scope 2 – indirect emissions 0 0 Scope 2 emissions relate to indirect emissions caused by TCM’s energy purchases, i.e. electricity or heat. 16 16 C4 - Upstream transportation and distribution: Calculated based on A2 from TCM's veriﬁed environmental product declarations (MD-23121, MD-23122, MD-24065). 1,212 1.0 1,231 1.0 2,116 1.5 2,557 1.9 3,138 3.1 The CO2e emissions are based on the invoiced energy consumption per source. CO2e factors for district heating are based on environmental declarations from the supplier. Electricity (prior CO2, total scope 3 tCO2e 107,181 99,826 - - - C5 - Waste generated in operations: Calculated based on actual waste data multiplied by relevant emission factors. * Excl. AUBO Production A/S. At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 30 Environmental data Energy Resources In 2024 we increased our electricity consumption by 3% as a result of our ongoing transition away from fossil-based energy consumption. Renewable energy share before 2023 is based on standard energy market mix in Denmark (Environmental declaration 2021). Waste Water TCM Group continuously seeks to increase productivity, reduce waste throughout the production processes, and work with waste management and suppliers to reduce waste and improve waste handling. TCM Group primarily uses water for sanitation and heating purposes, and we expect this to be relatively stable. Electricity consumption / revenue has been updated to include AUBO Production consumption and revenue for 2022. Electricity consumption is calculated as: Electricity consumption [kWh] / net revenue [kDKK] Very limited amounts are used in production to support our lacquering processes, and any resulting wastewater is carefully separated and disposed of in the right manner. During 2024, we continued our eﬀorts to sort waste to retain the highest possible value of the materials. Accounting practices Energy consumption is based on invoiced consumption. In 2024, water consumption decreased by 11% compared with the previous year. The increase in waste volume is due to an increase in activity and a change in the product mix. The renewable energy share from 2023 has been covered by renewable energy certiﬁcates from wind and solar power, which brings the renewable energy share to 100%. Accounting practices Water consumption covers all water purchased from external suppliers and is based on the invoiced volume. Accounting practices Waste volumes and disposal methods are weighted and reported by waste sorting and handling companies. Reference standard: GRI 306-5 Waste unit 2024 2023 2022 unit 2024 2023 2022 Energy Resources Energy consumption MWh % 6,621 100 6,483 100 7,850 82 Water consumption Waste m3 ton % 6,138 4,237 91.7 6.5 6,881 4,165 94.2 4.1 5,900 4,410 90.3 9.6 Renewable electricity Electricity consumption / revenue Ratio 5.5 5.3 5.6 Recycling Energy recovery Landﬁll % % 0.0 0.0 0.0 Hazardous waste % 1.9 1.0 0.1 * Excl. waste from AUBO Production A/S. At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 31 S Social performance and progress Gender equality TCM Group's target for representation of the underrepresented gender on the Board of Directors is to be in line with the Danish Business Authority’s deﬁnition of equal gender distribution. As of 31 December 2024 this target is achieved. Social Diversity TCM Group’s continued success relies on employing the best-qualiﬁed people, and we are committed to ensuring a safe and healthy working environment characterised by mutual trust and respect. We work actively to create sustainable work in accordance with the following principles: hotline and internal controls, which allow employees and third parties to report concerns. Additionally, we conduct random supplier audits to ensure compliance with human and labour rights standards. Our aim is to ensure gender balance at all levels of our organisation, with the underrepresented gender making up at least 40%. For further details on our whistleblower hotline, please refer to page 38. • • A safe and secure working environment that also enhances personal development. Flexibility to support a clear balance between work and private life, and between Safe working environment 44% 56% 33% 67% 34% 66% At TCM Group, we are committed to providing the best possible working environment. Safety is our top priority, and we focus heavily on building and maintaining a strong safety culture to ensure the well-being of our employees. This involves minimising risks and creating the best conditions for a healthy and safe workplace. Work safety signiﬁcantly impacts not only our employees but also their families, communities and the business as a whole. Board of Management employees directors individuals, teams and organisation. Diversity and social commitment. • Human and labour rights Women Men Our commitment to the UN Global Compact, established over a decade ago, demonstrates our long-standing dedication to upholding human and labour rights. The primary risks we face in respect of non-compliance with the Global Compact’s principles include potential discrimination against employees and cases where speciﬁc conditions at our suppliers fail to meet the required standards. Towards zero accidents Our safety vision is zero accidents. Number of accidents: 22 12 20 In 2024, we continued our eﬀorts to secure safe working conditions with a strong focus on knowledge sharing across locations and a reinforced emphasis on behaviour and safety culture based on a zero-accidents vision. without absence 12 7 zero accidents 2025 target 8 with absence 2022 2023 2024 Our Employee Handbook and our Code of Conduct provide clear guidance to our employees and suppliers regarding human and labour rights. Our focus is on implementing eﬀective mechanisms, systems and programmes to prevent violations and promote accountability. We adhere to Danish and international standards on human rights and comply with laws related to equality, oﬀering fair and equitable employment and working We monitor the occupational health and safety of our employees by collecting and analysing data on accidents, near-miss work accidents and sickness absence. In 2024, we had a total of 12 reported accidents. Seven of those accidents resulted in a total of 33 days of absence. The remaining ﬁve accidents did not result in any absence but in some cases required the aﬀected employees to undertake less strenuous tasks during their recovery. We have observed that most accidents are behaviour-related, stemming from employees' eagerness to perform their tasks well but sometimes at the expense of adhering to Sick days and absence Reported near-miss work accidents No. of sick days caused by work accidents No. of reported near-miss work accidents at TCM Group 2024 2024 33 1,400 2023 2023 57 1,232 conditions regardless of gender, ethnic origin, religion or other personal circumstances. 2022 2022 125 937 Key instruments for identifying and addressing potential violations include our whistleblower Absence ratio related to work accidents in 2024 Absence ratio related to 3.7% 0.0003% sickness in 2024 At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 32 safety instructions. To address this, all employees have undergone training to strengthen their focus on safety and cultivate a safety-conscious culture. Our management team leads by example, conducting regular safety walks and organising "safe starts" after vacations. valuable work experience. Throughout the year, TCM Group supports many individuals who, for various reasons, need assistance with We continuously work to ensure equal CASE: COCUURA opportunities for every employee, regardless of gender. As part of this eﬀort, we emphasise equal terms and actively identify candidates of diﬀerent genders when hiring new managers. We also aim for a workforce that balances younger and more experienced employees. At TCM, we recognise that training and learning do not only occur in the workplace. Life events can also have a signiﬁcant impact on the working environment. To support our employees holistically, TCM Group oﬀers all employees membership of Cocuura. establishing themselves in the job market. We work consistently with apprentices across TCM Group, and in 2024 we had 12 apprentices within the organisation. We have become more focused on hiring individuals from diverse backgrounds to foster the beneﬁts of diversity in our workplace. Cocuura is a digital platform designed to assist managers, teams, colleagues and employees' families by providing tools to navigate challenging and potentially life-changing dilemmas. We use near-miss work accident reports to ensure continued awareness of incidents that could lead to an accident, to share learnings and as a means of taking preventive actions. The number of near-miss reports increased considerably in 2024, and we take this as an indication that our eﬀorts are having a positive eﬀect. Our focus extends to achieving sensible gender diversity within the Board of Directors, Executive Management and other management levels. TCM Group aims for a gender composition across Management and the total workforce where the underrepresented gender constitutes at least 40%. Additionally, we are committed to creating positions with reduced working hours wherever feasible, and we continue to collaborate closely with municipalities to oﬀer citizens job clariﬁcation processes. As an example, we have been actively involved in creating the Aulum Mile (see case). Although we have not yet achieved our goal of zero accidents, we have successfully reduced the severity of accidents. We remain determined to eliminate work-related accidents entirely. Moving forward, we will intensify our focus on safety-related behaviours and reinforce the message that personal safety always takes precedence over everything else. Safety will continue to be a top priority in the coming year. Currently, our Executive Management consists of the CEO and the CFO, both of whom are male. However, at the second management level, the underrepresented gender comprises 44%, while in the overall management group it makes up 31%. This composition reﬂects traditional gender distributions in manufacturing companies, with a predominance of male forepersons in production and a slight predominance of female employees in administrative roles. A talented and diverse workforce At TCM Group, we ﬁrmly believe that a diverse and inclusive working environment beneﬁts both our business and society as a whole. We recognise and value the diﬀerences among our employees, as diverse teams, including management groups, foster better and more innovative collaboration. This leads to improved decision-making and promotes inclusiveness and tolerance throughout our organisation. Focus on ongoing learning We strive to continuously upskill our employees, enhancing their individual value and ensuring that their skills remain relevant both within and beyond TCM Group. We achieve this through on-the-job training and by developing In 2024, new competences were added to the second management level. Progress towards a more equal gender distribution at other management levels will occur gradually as the organisation develops and recruitment eﬀorts continue. We are committed to meeting our target by 2028. We are committed to being a responsible workplace that recruits, promotes and develops employees based on individual competences while supporting diversity. Our recruitment, contracting, promotions and dismissals are conducted without consideration for gender, age, nationality, sexual orientation, physical ability, disability, political opinion, ethnicity, family status and religious or other beliefs. We strive for equitable representation of men and women in managerial positions, and promote diversity and inclusion through our policy, which is available on the TCM Group website. personalised plans during annual reviews in collaboration with each employee. We believe that training is most eﬀective when it is available at the time it is most relevant to the individual and can be immediately applied in practice. In addition to internal learning and development initiatives, our TCM Learning platform also supports the training of sales staﬀ for our brands and kitchen installers. CASE: The Aulum Mile With the ambition of securing jobs for young people who, for various reasons, are struggling to establish a foothold in their working lives, the Aulum Mile was created as a collaboration between numerous companies in Aulum and Youth Guidance Herning (Herning Municipality). The initiative aims to provide young people with the opportunity to test their work abilities while ensuring their well-being, security and proper support, facilitating their successful integration into the workplace. Tolerant workplace We take responsibility for training the next generation of qualiﬁed employees by providing opportunities to develop relevant skills and gain In 2024, TCM hosted six young people on work probation, several of whom are on track to secure permanent employment. At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 33 Social data Employees The total number of employees, measured as headcount, decreased by 1% compared with the previous year. The decrease can be attributed to a decrease in market demands and restructuring of the organisation. Gender diversity for all employees The Executive Management comprises the CEO and the CFO, as they have a direct reporting line to the Board of Directors. Gender diversity is measured with reference to GRI 405 Diversity and Equal Opportunity, and includes all TCM Group employees. Our work with diversity aligns with UNGC principles 3, 4, 5 and 6. Gender diversity refers to the proportion of women in relation to the total number of headcounts. The measurement of gender diversity, both for all employees and for Management, is based on headcounts as of 31 December 2024 and all historical years, and encompasses both white-collar and blue-collar employees. The second management level comprises managers who report directly to the Executive Management. ctices Accounting pra FTEs and the shares of blue- and white-collar workers are calculated excluding temporary and short-term employment. Gender pay ratio At TCM Group, it is our policy that equal jobs are rewarded with equal pay. Any diﬀerence in pay is solely based on qualiﬁcations and experience. Other management levels comprise the overall management group at TCM, including the Executive Management and the second management level. The number of employees who are on ﬂex-job contracts or similar and trainee contracts are counted at the end of the year. Gender diversity in management The measurement provides insight into the representation of women in management positions within the organisation. The pay gap between genders is measured for white-collar employees minus the Executive Management. unit 2024 2023 2022 2021 2020 Diversity Number of employees, as of 31 December Blue-collar workers # 481 486 482 504 483 % 68 70 77 - - White-collar workers % 32 30 23 - - Flex jobs, etc. # 15 12 21 5 - - Trainees, interns and apprentices Employee turnover # 12 6 13 16 % 16.9 - - - - Gender diversity overall, female/male Gender diversity, 1st-level management as per §99b Gender diversity, 2nd-level management as per §99b % 34 / 66 0 (0 of 2) 44 (4 of 9) 28 (5 of 18) 1.18 34 /66 36 / 64 32 /68 - % 0 (0 of 2) - - - % 44 (4 of 9) - - - Gender diversity, other management levels, including 1st and 2nd levels Pay gap between genders, white-collar % 31 (5 of 16) 28 (4 of 14) 21 (3 of 14) 26 (4 of 15) Ratio m/f 1.28 - 1.18 - - - - - - - - - Distribution of employees by age group, under 30 years old Distribution of employees by age group, 30-50 years old Distribution of employees by age group, over 50 years old % % % 10 41 - - 49 - - At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 34 Social data Occupational health and safety Accounting practices Sickness-related absence The number of near-miss work accidents registered during the ﬁnancial year is also tracked. This registration serves as a measure to prevent accidents. July 2023. The 2024 survey included all employees within TCM Group. Sickness-related absence does not include absence due to sick children or maternity/ paternity leave. Our work with occupational health and safety aligns with UNGC principles 3, 4, 5 and 6. Accidents Employee engagement Sick days resulting from work-related accidents include all days (24 hours) during which an employee is absent due to such accidents. The absence ratio is calculated as the number of absent working hours divided by the total number of working hours. TCM Group measures employee engagement every two years through a voluntary engagement survey. The engagement score, based on a 5-point scale, is used to monitor employee engagement through several categories. The engagement participation percentage reﬂects the proportion of employees who completed the survey compared to the total number of employees. The lost-time injury frequency measures the number of work-related incidents with absence per million working hours. Although the survey is usually conducted every two years, it was postponed from 2023 to 2024 due to the acquisition of AUBO Production A/S in The accident severity ratio serves as an indication of the type of injuries that we experienced. unit 2024 2023 2022 Occupational health and safety Absence ratio related to sickness Number of work accidents % 3.7 3.2 4.4 28 # # 19 33 34 57 Sick days caused by work accidents Lost-time injury frequency (LTIF) Absence ratio related to work accidents Near-miss work accident registrations 937 - 9.3 11.5 % # 0.0003 1,400 0.09 1,232 0.10 937 Employee engagement score (5-point scale) 4.2 - - - - Engagement survey participation % 78 At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 35 governance governance .................................................................................................36 Board of Directors.................................................................................39 Executive Management..........................................................................40 Shareholder information ..................................................................41 Nettoline kitchens are made for everyday life. Our kitchens are created for the user – not the other way around. Our kitchens are born out of the idea that functionality, design and price are not mutually exclusive. TREND, SAND At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 36 which are reviewed annually and approved by the Board of Directors. plans and processes are in place for the nomination of candidates for the Board of Directors and Executive Management. The Nomination Committee currently consists of three members – Anders Skole-Sørensen, Søren Mygind Eskildsen and Pernille Wendel Mehl – and is chaired by Anders Skole-Sørensen. The Nomination Committee held one meeting in the ﬁnancial year 2024. G governance Governance Structure Composition of the Board of Directors The Board of Directors currently consists of six members elected by the Annual General Meeting and elects a Chair and a Deputy Chair. The board members are professionally experienced businesspeople who have the diversity, international experience and skills considered relevant to TCM Group. All but one of the board members elected by the shareholders are regarded as independent. TCM Group is committed to exercising good corporate governance, and the Board of Directors therefore evaluates the Group’s management systems at least once a year to ensure that the structure is appropriate relative to the Group’s shareholders and other stakeholders. Shareholders and annual general meeting Remuneration Committee The Board of Directors appoints a Remuneration Committee comprising at least two members of the Board of Directors. The purpose of the Remuneration Committee is to ensure that the Group maintains a Remuneration Policy for members of the Board of Directors and Executive Management as well as general guidelines for incentive pay for the Executive Management. The Remuneration Committee currently consists of three members – Anders Skole-Sørensen, Søren Mygind Eskildsen and Pernille Wendel Mehl – and is chaired by Anders Skole-Sørensen. The Remuneration Committee held one meeting in the ﬁnancial year 2024. Board of Directors The Board of Directors determines once a year the qualiﬁcations, experience and skills that it must possess in order to best perform its tasks taking into account the Group’s current needs. The Board of Directors evaluates its work on an annual basis. All board members are up for election at each Annual General Meeting. Audit Committee Duties and responsibilities of the Board of Directors At TCM Group, management duties and responsibilities are divided between the company’s Board of Directors and the Executive Management. No one person is a member of both bodies, and no member of the Board of Directors has previously been a member of the Executive Management. TCM Group has laid down rules of procedure for the Board of Directors, which are reviewed annually. The Board of Directors holds nine ordinary meetings each year and convenes further meetings as needed. In the ﬁnancial year 2024, 11 board meetings were held. Nomination Committee Audit Committee The Board of Directors appoints an Audit Committee. The Chair of the Audit Committee is skilled in accounting and ﬁnance. The purpose of the Audit Committee is to monitor the ﬁnancial reporting process, the company’s internal control and risk management systems, including ESG, and the collaboration with the independent auditor. The Audit Committee currently consists of three members – Anders Skole-Sørensen, Jan Amtoft and Erika Hummel – and is chaired by Erika Hummel. The Audit Committee held ﬁve meetings in the ﬁnancial year 2024. Remuneration Committee Remuneration of members of the Board of Directors and the Executive Management The Board of Directors has adopted a Remuneration Policy and general guidelines on incentive pay, which have been approved by the Annual General Meeting. The policy and guidelines are available at governance-en. tcmgroup.dk. The Remuneration Policy supports the goal of attracting, motivating and retaining qualiﬁed members of the Board of Directors and Executive Management. The remuneration is designed to align the interests of the Board of Directors, the Executive Management and the company’s shareholders, to support the achievement of TCM Group’s short-term and long-term strategic targets, and to stimulate value creation. Please see note 5 to the Executive Management The Executive Management is in charge of day- to-day management, while the Board of Directors supervises the work of the Executive Management Team Employees Management and is responsible for overall management and strategic direction. In this regard, the Board of Directors considers the Group’s overall strategy every year to ensure continuous value creation. The requirements concerning the Executive Management’s timely, accurate and adequate reporting to the Board of Directors and the communication between these two corporate bodies are laid down in the Executive Management’s rules of procedure, Nomination Committee The Board of Directors appoints a Nomination Committee comprising at least two members of the Board of Directors, of whom at least one is also a member of the Remuneration Committee. The Chair of the Board of Directors is also the Chair of the Nomination Committee. The overall purpose of the Nomination Committee is to help the Board of Directors ensure that appropriate consolidated ﬁnancial statements for a At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 37 speciﬁcation of the remuneration paid to the In addition to the above, the Group has developed internal control and procedures in relation to the ﬁnancial reporting process aimed at enabling the Group to monitor its performance, operations, funding, risk and internal control. The Group continues to improve the internal control and procedures in relation to the ﬁnancial reporting process and believes that the current control and procedures in place enable the Group to be compliant with the disclosure requirements applying to issuers of shares on Nasdaq The ESG Manager is responsible for strategy deployment as well as identifying and pursuing further strategic opportunities. Cross-functional teams from the line of business support the daily operations and ensure progress in each of the strategic focus areas. Incentive plan Board of Directors and Executive Management. The long-term incentive (LTI) programme for TCM Group’s Executive Management includes ESG performance-related criteria accounting for up to 20% of the programme. Description of internal control and procedures in relation to the financial reporting process The Board of Directors and the Executive Management are ultimately responsible for the Group’s risk management and internal control in relation to its ﬁnancial reporting, and approve the Group’s general policies in this regard. The Audit Committee assists the Board of Directors in overseeing the reporting process and the most important risks. The Executive Management is responsible for the eﬀectiveness of the internal control and risk management, and for the implementation of such control aimed at mitigating the risks associated with the ﬁnancial reporting. Business conduct Oversight of ESG performance is among the responsibilities of the Audit Committee. Our business conduct is governed by our Code of Conduct, which applies to every aspect of our operations and underpins every decision made daily at all levels across TCM Group. Diversity Policy Copenhagen. The internal control and procedures in relation to the ﬁnancial reporting process include: TCM Group has formulated a Diversity and Inclusion Policy. Our Policy is available on our website, tcmgroup.dk. The Code of Conduct outlines our stance on, among other things, anti-corruption and bribery, human rights, fraud, relationships with business partners, suppliers, authorities and other stakeholders, and the social impacts of our activities throughout the value chain. Where detailed implementation is necessary, it is addressed through speciﬁc instructions and staﬀ handbooks. • • • Weekly reports of incoming orders and gross and net revenue by month Please see page 32 for more details of the policy. Monthly reports, on a per store basis, of the Group’s sales to stores Gender Diversity on the Board of directors and among other executives Management believes that the Group’s reporting and internal control systems enable it to be compliant with disclosure requirements applying to issuers whose shares are admitted to trading and oﬃcial listing on Nasdaq Copenhagen. Consolidated monthly reports summarising results for legal entities, including balance sheet and cash ﬂow results compared to budgeted performance and the previous year’s performance, explanations of deviations and key performance indicators A four-eye principle within the ﬁnance department to ensure the quality of accounting records In respect of members elected by the Annual General Meeting, TCM Group focuses on diversity, skills and experience. We aim for an equal gender composition that also reﬂects essential competences within TCM Group’s focus areas. To ensure that the Group’s Board of Directors is composed of the right proﬁles and skills, TCM Group has deﬁned targets with regard to gender and independence. The Group wants a Board of Directors where both genders are represented. We believe this can create the basis for the best debates and add diﬀerent As part of the overall risk management, the Group has set up internal control systems that are deemed appropriate and suﬃcient in relation to the Group’s activities and operations. The internal control systems are evaluated on an ongoing basis. • • Corporate governance recommendations A standardised authorisation process for most of the invoices received. In addition, a detailed review of cost at account level is carried out in connection with the monthly reports. Nasdaq Copenhagen has incorporated the recommendations of the Danish Committee on Corporate Governance in its Rules for Issuers of Shares. perspectives and input on how we run and develop the business and approach challenges. The Group’s internal control and procedures are planned and executed to ensure a reasonable level of comfort that the ﬁnancial reporting is reliable and in compliance with internal policies, and gives a true and fair view of the Group’s ﬁnancial performance, ﬁnancial position and material risks. The procedures and control are furthermore planned with a view to supporting the quality and eﬃciency of the Group’s business processes and the safeguarding of the Group’s assets. The evaluation of the risks includes an assessment of the likelihood that an error will occur and whether the ﬁnancial impact of such an error would be material. Organising ESG These recommendations are available on the website of the Committee on Corporate Governance, www.corporategovernance.dk. To ensure steady progress on our ambitions and targets, and to maintain and develop ESG as an integrated part of our way of doing business, TCM Group has an ESG Steering Committee that is organised around our strategic focus areas and with the involvement of the relevant For the Board of Directors elected by the Annual General Meeting, TCM Group aims for representation of the underrepresented gender in line with the Danish Business Authority’s deﬁnition of equal gender distribution. In 2024, the Board of Directors elected by the Annual General Meeting comprised two women and four men, giving TCM Group an equal gender distribution according to the Danish Business Authority’s deﬁnition. TCM Group complies with all these recommendations. stakeholders. The committee consists of the CEO, the CFO, the Head of Product Management and the Head of Supply Chain. It convenes every second month and addresses issues including sustainability risks and opportunities as well as recommendations for further improvements. The Group’s corporate governance statements are available on our website at investor-en.tcmgroup.dk/CorporateGovernance At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 38 Supplier management We are pleased to report that in 2024 there were no instances of policy violations related to anti- corruption. In 2025, we will continue our eﬀorts to promote anti-corruption practices across all our business relationships. conﬁrmation and delivery, and in any follow-up complaints or enquiries. Day-to-day processing and storage of data are operationalised and systematised via internal procedures and policies across TCM Group. The overall responsibility for decision-making, application and Our responsible sourcing practices are focused on environmental, social and governance issues across our value chain. TCM Group is committed to respecting human rights as outlined in the United Nations Universal Declaration of Human Rights and the UN Global Compact. The backbone of our work with suppliers on ESG matters is our Code of Conduct, which is mandatory for all suppliers to TCM Group. DATA PROTECTION POLICY In connection with TCM Group’s delivery of products and services within kitchen, bathroom and storage, TCM Group collects relevant data. Our policy regarding data protection and conﬁdentiality is available on our website, tcmgroup.dk. Whistleblower system implementation of new technologies, and use of data, both personally identiﬁable and non- personally identiﬁable, is anchored in TCM Group's Executive Management. TCM Group’s whistleblower system is available for internal and external reporting of any witnessed activities or reasonable suspicion of serious and reprehensible conditions or illegalities within the Group. All internal and external stakeholders can access the These suppliers are primarily located in Europe, in most cases relatively close to our production sites in Tvis and Aulum, Denmark. In 2024, 92% of materials directly used in our production were made in Europe, of which 54% originated in Denmark or our neighbouring countries (Germany and Sweden). EU Corporate Sustainability Reporting Directive (CSRD) and the EU Taxonomy whistleblower system through an externally hosted website. The system is anonymous and all communication is encrypted, which means that TCM Group is not able to trace any speciﬁc whistleblower report back to the reporting individual. TCM Group has a non-retaliation policy regarding any concerns reported. The Corporate Sustainability Reporting Directive (2022/2464/EU), known as the CSRD, came into force on 15 January 2023. As TCM Group is a listed company with an average of fewer than 500 full- time employees, the company does not fall within the scope of the currently applicable CSRD until the ﬁnancial year 2025. In 2024, we developed a framework to rate our suppliers on their ﬁt with and contribution towards our ESG-related targets. This will be integrated into our supplier management and due diligence processes. The system is available in a number of local languages to ensure that anyone who may have concerns can report in their local language. The reporting platform has been promoted internally to make sure that employees at TCM Group know that there is an anonymous platform available. In 2024, TCM Group has been preparing to ensure compliance with the CSRD. Following our double materiality assessment, we conducted a gap analysis and focused on identifying key Anti-corruption performance indicators (KPIs) that must be reported annually. Unless currently applicable regulations are changed, the ﬁnancial year 2025 will mark our ﬁrst year of reporting under CSRD requirements, with a strong emphasis on ongoing data collection, data quality and data control. TCM Group is committed to compliance with anti-corruption rules and regulations, and recognises the risks of non-compliance, such as obtaining advantages through illegal means via our employees, suppliers, franchisees or dealers. At TCM Group, we maintain a zero-tolerance approach to corruption and bribery. Our policy is to fully comply with all applicable regulations and to actively promote anti-corruption practices in all our business relationships. Tax residence TCM Group operates in Denmark and Norway, is listed on the Copenhagen Stock Exchange (Nasdaq OMX Copenhagen Small Cap) and pays taxes locally in Denmark and Norway. In 2024, TCM Group’s corporate tax amounted to DKK 13.4 million, 99.6% in Denmark and 0.4% in Norway. Our Tax Policy is available on our website, tcmgroup.dk. Tvis køkken Our goal is to drive continuous improvement and track progress as an integral part of our ESG management system. We are also preparing to undergo independent limited assurance to validate our eﬀorts. Forest Whistleblower system TCM Group's whistleblower system can be accessed here. Our Code of Conduct clearly outlines this zero- tolerance approach for employees, suppliers, franchisees and dealers. In addition to fostering ﬁrm values and a strong organisational culture, we conduct internal control and provide a whistleblower hotline to detect potential breaches. Data Protection Policy In 2024, there were no 0 TCM Group collects data to facilitate delivery of products and services within kitchen, bathroom and storage, and to best service customers in the event of quality complaints or enquiries regarding information on speciﬁc orders. TCM Group primarily uses the collected data in connection with order processing, i.e. order reported cases At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 39 Board of Directors Chair of the Nomination Committee and of the Remuneration Committee, and member of the Audit Committee. Member of the Nomination Committee and of the Remuneration Committee. Chair of the Audit Committee Non-independent. Independent. Member since: 2023. Independent. Member since: 2018. Participated in 10 of 11 board meetings in 2024. Number of shares end 2024: 0 (2023: 0). Member since: 2017. Participated in 11 of 11 board meetings in 2024. Number of shares end 2024: 6,950 (2023: 6,950). Participated in 11 of 11 board meetings in 2024. Number of shares end 2024: 10,153 (2023: 10,153). Erika Hummel holds a BA in Economics and an MBA, both from the University of California, Los Angeles. Søren Mygind Eskildsen holds a Bachelor of Engineering and MBA from the University of Southern Denmark. Anders Skole-Sørensen holds an MSc in Economics from the University of Copenhagen. Anders SØREN MYGIND ESKILDSEN Erika Hummel Board member Other positions: Skole-Sørensen Other positions: Other positions: Erika Hummel is CEO of Sodulo Immobilien GmbH and chair of the board of directors of Hummel & Partner AG. Chair Deputy Chair Anders Skole-Sørensen is a member of the board of directors of F. Uhrenholt Holding A/S. Søren Mygind Eskildsen is CEO of Louis Poulsen A/S. Italian and German nationality. Danish nationality. Born in 1962. Danish nationality. Born in 1972. Søren Mygind Eskildsen is chair of the board of directors of Ege Carpets A/S and a member of the board of directors of Gabriel A/S. Born in 1961. Member of the Nomination Committee and of the Remuneration Committee. Member of the Audit Committee. Independent. Independent. Member since: 2024. Independent. Member since: 2022. Participated in 7 of 7 possible board meetings in 2024. Member since: 2023. Participated in 11 of 11 board meetings in 2024. Number of shares end 2024: 1,550 (2023: 1,550). Participated in 10 of 11 board meetings in 2024. Number of shares end 2024: 0 (2023: 0). Number of shares end 2024: 0 (2023: 0). Jan Amtoft holds a Bachelor of Computer Science (Hons) from De Montfort University. Björn Olsson Lissner holds an MSc in Technology from Lund University. Pernille Wendel Mehl holds a Grad. Dip. BSc in Business Administration (HDA) and a Master of Management Development (MMD), and has completed the CBS/Børsen Executive Board Programme. Other positions: Other positions: Pernille Jan Amtoft Board member Björn Olsson Lissner Jan Amtoft is CIO of Rockwool A/S. Björn Olsson Lissner is CEO of Aktiebolaget Gyllsjö Träindustri and a member of the boards of directors of Aktiebolaget Gyllsjö Träindustri and Industrispik Linan Aktiebolag. Wendel Mehl Board member Board member Danish nationality. Born in 1964. Danish nationality. Born in 1972. Other positions: Swedish nationality. Born in 1976. Pernille Wendel Mehl is CEO of Copenhagen Zoo and a member of the boards of directors of Foreningen DGI Byen and Nine A/S. At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 40 Executive Management Since March 2020. Number of shares end 2024: 57,825 (2023: 55,876). Prior to joining TCM Group, Torben Paulin was CEO of BoConcept, a leading Danish design and lifestyle brand with nearly 300 franchise stores in 60 countries. Svane køkkenet Snedker, RAW Other positions: Torben Paulin Chief Executive Oﬃcer Torben Paulin is a member of the board of directors of Zefyr Invest A/S. Danish nationality. Born in 1965. Since March 2023. Number of shares end 2024: 5,426 (2023: 5,426). Prior to joining TCM Group, Thomas Hjannung worked at Faerch Group, ECCO Sko A/S and Bang & Olufsen A/S in various senior positions, including international assignments. Thomas Hjannung Chief Financial Oﬃcer Danish nationality. Born in 1973. At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 41 Shareholder information TCM Group A/S is part of the Nasdaq OMX Copenhagen Small Cap index. In 2024, the share price increased from an opening value of DKK 45.5 to DKK 67.0 as of 31 December 2024, representing an increase of 47.3%. Financial calendar The ﬁnancial year covers the period TCM Group share price development in 2024 Ownership 1 January – 31 December, and the following dates have been ﬁxed for releases, etc. in the ﬁnancial year 2025: As of 31 December 2024, members of the Board of Directors held 18,653 shares (31 December 2023: 46,456 shares) and members of the Executive Management held 63,251 shares (31 December 2023: 61,302 shares), totalling 81,904 shares (31 December 2023: 107,758 shares), equivalent to 0.8% of the share capital (31 December 2023: 1.0%). The average share price during 2024 was DKK 59.4. 9 April 2025 Annual General Meeting 2025 The nominal value of the company’s share capital as of 31 December 2024 was DKK 1.1 million divided into shares of DKK 0.1, equivalent to 10.5 million shares and 10.5 million votes. As of 31 December 2024, TCM Group A/S owns 73,051 treasury shares, corresponding to 0.7% of the share capital. As of 31 December 2024, the following shareholders had notiﬁed shareholdings above 5% of the share capital (see below). 21 May 2025 Interim Report Q1 2025 20 August 2025 Interim Report Q2 2025 25 November 2025 Interim Report Q3 2025 Business registration no. Notified shareholding 26 February 2026 Interim Report Q4 2025 and Annual Report 2025 NAme Domicile Paradigm Capital Value Fund B129149 99-0375707 20896477 Luxembourg, Luxembourg Delaware, USA 15.8% 12.1% 10.8% 10.3% Paradigm Capital Value LP 9 April 2026 BI Asset Management Fondsmæglerselskab A/S Arbejdsmarkedets Tillægspension Copenhagen, Denmark Hillerød, Denmark Annual General Meeting 2026 43405810 * According to latest shareholding notiﬁcations. At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 42 Dividend DISTRIBUTION will depend on several factors, such as future revenue, proﬁts, general ﬁnancial and business conditions, restrictions under ﬁnancing year, or that the company’s ﬁnancial During 2024, TCM Group did not distribute dividends. For the ﬁnancial year 2024, the Board of Directors will propose an ordinary dividend of DKK 3 per share. Excluding treasury shares this corresponds to DKK 31 million. performance will enable adherence to the dividend policy or an increase in the payout ratio. The company’s ability to pay dividends or repurchase shares may be aﬀected by various factors. Additionally, the dividend policy is subject to change at the discretion of the Board of Directors. agreements, and strategic initiatives such as M&A activities or signiﬁcant investments decided upon by the Board of Directors. Additional The company’s investor relations website, investor.tcmgroup.dk, contains all oﬃcial ﬁnancial reports, investor presentations, the ﬁnancial calendar, corporate governance documents and other material. considerations may include other factors deemed relevant by the Board of Directors, as well as applicable legal and regulatory requirements. Dividend POLICY The Board of Directors has adopted a dividend policy targeting a payout ratio of 40-60% of the consolidated net proﬁt for the year. The payment of dividends, including the amount and timing, As part of the current ﬁnancing agreements with Nykredit, the Group has agreed to dividend restrictions linked to ﬁnancial leverage. There is no assurance that a dividend or share buyback will be proposed or declared in any given Analyst coverage TCM Group is currently covered by four analysts: Aktieinfo, John Stihøj Carnegie, Alexander Borreskov Danske Bank, Poul Ernst Jessen SEB, Kristian Tornøe Johansen Contact For further information, please contact: CEO Torben Paulin +45 21210464 CFO Thomas Hjannung +45 25174233 Investor Relations: [email protected] Annual general meeting The Annual General Meeting will be held on Wednesday 9 April 2024 at 5 p.m. at Skautrupvej 22b, Tvis, 7500 Holstebro. Share information Exchange: Nasdaq Copenhagen Trading symbol: TCM018 Identiﬁcation number/ISIN: DK0060915478 Number of shares: 10.5 million shares of DKK 0.1 each with one vote Share classes: 1 Sector: Kitchens, bathrooms and storage Segment: SMALL CAP Nettoline TREND, SAND At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 43 governance data Composition of the board of directors Risk and Regulation In TCM Group’s Diversity Policy, issued in 2022, we set targets with regard to the gender and independence of members of our Board of Directors. Accounting practices The number of board members is counted at the At TCM Group, we have a zero-tolerance approach to corruption and bribery. Our policy is therefore to comply with all applicable regulations and to promote anti-corruption behaviour in all our business relationships. Our Code of Conduct sets out our zero-tolerance approach to corruption for employees, suppliers, franchisees and dealers. retaliation policy regarding any concerns reported. date of publication. No whistleblower cases were reported in 2024. The number of board meetings only includes actual meetings, not seminars, committee meetings, etc. In 2024, the number of board members was reduced from seven to six. With two of the six members being women, we have 33.3% representation of the underrepresented gender. According to the deﬁnition of the Danish Business Authority, we have equal gender distribution. Five of the six members are independent, which is well above the target. Accounting practices Whistleblower reports and cases resolved relate to the number of whistleblower reports to TCM falling within the correct use of the whistleblower system. The attendance rate is calculated as board meetings attended relative to board meetings held. Whistleblower system TCM Group’s whistleblower system is available for internal and external reporting of any witnessed activities or reasonable suspicion of serious and reprehensible conditions or illegalities within the Group. All internal and external stakeholders can access the whistleblower system through an externally hosted website. The system is The work with the Code of Conduct and the whistleblower system relates to Gender diversity is presented as the share of women. UNGC principle 10 – Anti-Corruption. During the year, there were 11 board meetings, with an attendance rate of 97%. Independent board members is given as the percentage of the total board. anonymous and all communication is encrypted, which means that TCM Group is not able to trace any speciﬁc whistleblower report back to the reporting individual. TCM Group has a non- unit 2024 2023 2022 2021 2020 unit 2024 2023 2022 Composition of the board of directors Risk and regulation Suppliers covered by Code of Conduct, signed Whistleblower reports % 82 82 100 Members of the Board of Directors Board meetings # # 6 7 6 5 5 # 0 0 0 11 15 12 11 8 Whistleblower cases resolved % 100 100 100 Board meeting attendance % 97 98 100 100 98 # % 2 of 6 33 3 of 7 43 1 of 6 17 1 of 5 20 1 of 5 20 Gender diversity, Board of Directors Percentage of independent board members % 83 86 100 100 100 At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 44 governance data remuneration TCM Group’s Remuneration Policy is available on our website, tcmgroup.dk. The objective of the policy is to attract, motivate and retain qualiﬁed members of the Board of Directors and Executive Management, to ensure alignment between the interests of the Board of Directors and Executive Management and the interests of shareholders, and to contribute to the company’s business strategy, long-term interests and sustainability. of expenses. Each element of the remuneration has been weighted to ensure a continuous positive development of the TCM Group both in the short and long term, and the proportions of the various elements are described below. Accounting practices Shares held by the Board of Directors and the Executive Management are based on reported data. TCM’s policy is that remuneration of the Board of Directors and Executive Management should be competitive and comparable to remuneration in Danish and international peer companies. The remuneration package for members of the The CEO’s total compensation relative to average FTE total compensation is based on the average salary of an employee of TCM (excluding members of the Executive Management). Executive Management may consist of a ﬁxed annual base salary, a pension, a short-term cash bonus, a long-term incentive scheme (cash- or share-based) and other beneﬁts in the form of usual non-monetary beneﬁts and reimbursement unit 2024 2023 2022 Remuneration Shares held by members of the Board of Directors Shares held by the Executive Management # 18,653 46,456 40,625 # 63,251 61,302 91,602 CEO total compensation relative to FTE average total compensation Ratio 12.4 9.4 8.4 At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 45 Financial Statements consolidated financial statements..............................................46 Financial statements of The Parent company ........................76 MG30 colour At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 46 Consolidated financial statements Consolidated income statement .....................................................47 Statement of comprehensive income...........................................47 Consolidated balance sheet as at 31 December .....................48 Consolidated statement of changes in shareholders’ equity.......................................................................49 Consolidated cash flow statement ..............................................50 Notes to the consolidated financial statements.................51 Definitions....................................................................................................75 At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 47 Consolidated income statement statement of comprehensive income DKK’000 Note 2024 2023 DKK’000 Note 2024 2023 Revenue 4 1,203,783 1,084,126 Net proﬁt for the year 57,675 21,522 Cost of goods sold 5, 6, 8 (948,377) 255,406 (101,429) (83,060) 9,500 (868,326) 215,800 (104,652) (61,948) 1,000 Gross proﬁt Other comprehensive income Items that may be reclassiﬁed to the income statement when speciﬁc conditions are met: Selling expenses 5, 6, 8 Administrative expenses Adjustment of contingent payment obligation Other operating income Operating proﬁt before non-recurring items Non-recurring items Operating proﬁt 5, 6, 7, 8 Change in market value of currency hedges 127 (1,221) 9,891 5,410 Reclassiﬁcation of currency hedges from equity to be recognised in: 90,308 0 55,610 (9,815) 45,795 2,194 9 Revenue 1,220 1,174 90,308 5,733 Share of proﬁt in associates Financial income Tax on value adjustments of currency hedges Tax related to prior years (296) 0 11 36 10 10 1,190 1,538 Financial expenses (27,788) 69,443 (11,768) 57,675 (22,435) 27,092 (5,570) 21,522 Other comprehensive income for the year Total comprehensive income for the year 1,051 58,726 0 Proﬁt before tax 21,522 Tax for the year 11 Net proﬁt for the year Earnings per share (EPS) Earnings per share before dilution, DKK Earnings per share after dilution, DKK 21 21 5.52 2.20 5.51 2.20 At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 48 Consolidated balance sheet as AT 31 December Consolidated balance sheet AS AT 31 December DKK’000 Note 2024 2023 DKK’000 Note 2024 2023 ASSETS Intangible assets Goodwill SHAREHOLDERS’ EQUITY AND LIABILITIES 12 411,998 177,211 40,375 7,591 411,998 178,711 45,125 2,823 Share capital 19, 21 19 1,051 (7) 1,051 (12,087) (916) Brands Treasury shares Customer contracts Other intangible assets Other intangible assets in progress Value adjustments of cash ﬂow hedges Retained earnings 20 99 557,019 31,322 589,484 541,605 0 54,928 692,103 33,665 672,322 Proposed dividend 22 Total shareholders’ equity 529,653 Property, plant and equipment Buildings 13 14 111,729 15,623 10,656 53,345 5,113 114,677 14,248 6,130 Deferred tax 23 3, 24 3, 24 3, 14 3 66,629 35,220 193,607 43,703 43,000 382,159 68,032 22,726 145,346 48,150 Land and land improvements Mortgage loans Bank loans Property, plant and equipment under construction and prepayments Machinery and other technical equipment Equipment, tools, ﬁxtures and ﬁttings Right-of-use assets 53,984 7,138 Lease liabilities Other liabilities Total non-current liabilities 52,500 336,755 39,494 235,960 41,458 237,635 Financial assets Investments in associates Mortgage loans 3, 24 3, 24 3, 14 3 1,236 21,759 2,529 92,982 14,198 15 14 16 49,793 7,587 47,994 10,838 11,024 Bank loans Lease receivables Lease liabilities 12,291 Other ﬁnancial assets 8,256 Trade payables 122,285 1,408 144,710 1,665 65,636 993,699 69,856 979,813 Current tax liabilities Other liabilities Total non-current assets Inventories 3 75,629 293 77,797 584 Deferred income Raw materials and consumables Semi-ﬁnished products Finished products 49,431 27,341 12,375 89,147 47,818 34,885 9,834 Total current liabilities Total shareholders’ equity and liabilities 234,901 1,206,544 334,465 1,200,873 17 92,537 Current receivables Trade receivables 25 14 57,914 6,714 79,285 8,488 3,219 Lease receivables Receivables from associates Other receivables 1,923 15 26,372 1,676 23,065 1,180 Prepaid expenses and accrued income 18 115,237 94,599 29,099 212,845 Cash and cash equivalents Total current assets Total assets 13,285 221,060 1,206,544 1,200,873 At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 49 Consolidated statement of changes in shareholders’ equity Value adjustments of cash flow hedges Share capital Share premium Treasury shares Retained earnings Proposed divideNd Total equity DKK’000 Opening balance, 1 January 2024 Net proﬁt for the year 1,051 0 0 0 0 0 0 0 0 0 (12,087) (916) 0 541,605 26,353 0 0 529,653 57,675 1,051 58,726 0 0 0 31,322 Other comprehensive income for the year Total comprehensive income for the year Adjustment, cash ﬂow hedges Transfer 0 0 1,051 1,051 (36) 0 0 0 0 26,353 36 31,322 0 0 12,080 0 0 0 0 (12,080) 1,105 0 0 0 Share-based incentive programme Transfer, exercised shares 0 0 0 1,105 0 0 0 0 Closing balance, 31 December 2024 1,051 (7) 99 557,019 31,322 589,484 Opening balance, 1 January 2023 Net proﬁt for the year 914 0 (12,087) (916) 432,718 21,522 0 0 0 0 0 0 0 0 0 0 420,629 21,522 0 0 0 0 0 Other comprehensive income for the year Total comprehensive income for the year Share-based incentive programme Share capital increase 0 0 0 0 0 0 0 0 21,522 471 21,522 471 0 0 88,645 (88,645) 0 0 0 137 0 0 0 0 0 88,782 0 Transfer 0 0 88,645 (1,751) 541,605 Cost related to share capital increase Closing balance, 31 December 2023 0 0 (1,751) 529,653 1,051 0 (12,087) (916) At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 50 Consolidated cash flow statement DKK’000 Note 2024 2023 DKK’000 Note 2024 2023 Operating activities Financing activities Interest paid Operating proﬁt 90,308 35,587 (8,235) (13,724) 3,390 45,795 31,572 (33) (24,810) 1,190 (21,750) 436 Depreciation/amortisation Other non-cash operating items Income tax paid Interest received Proceeds from loans Repayments of loans 28 36,757 (49,136) (5,980) 0 149,625 (131,319) (4,835) 77,031 69,188 8,517 (18,275) 22,430 25,723 (25,944) 81,268 28 Change in inventories Repayments of lease liabilities Rights issue, net proceeds 14 Change in operating receivables Change in operating liabilities Cash ﬂow from operating activities 19,446 (23,285) 103,487 Cash ﬂow from ﬁnancing activities Cash ﬂow for the year (41,979) 16,908 Investing activities Cash and cash equivalents at the beginning of the year Cash ﬂow for the year 13,285 16,908 (1,094) 29,099 4,392 8,517 376 Investments in property, plant and equipment (20,983) (28,270) 0 (21,621) (21,813) 188 Investments in intangible assets Exchange rate diﬀerences on cash and cash equivalents Cash and cash equivalents at year-end Sale of property, plant and equipment Investments in ﬁnancial assets 13,285 153 1 Specification Acquisition of entities (business combinations) Acquisition of entities (associates) Dividends from associates 26 27 0 (100,791) (153) Cash and cash equivalents at year-end 29,099 13,285 0 29,099 13,285 4,500 (44,600) 58,887 58,887 2,250 Cash ﬂow from investing activities Operating cash ﬂow before acquisition of entities Operating cash ﬂow after acquisition of entities (141,939) 40,273 (60,671) At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 51 notes to the consolidated financial statements 1. 2. Accounting policies.............................................................................................................................................................................. 52 Signiﬁcant accounting estimates and judgements...................................................................................................................56 Financial risks........................................................................................................................................................................................ 57 Revenue and segment information ................................................................................................................................................59 Staﬀ costs................................................................................................................................................................................................59 Average number of employees during the period...................................................................................................................... 61 Audit fees................................................................................................................................................................................................. 61 Depreciation/amortisation and impairment by function....................................................................................................... 61 Non-recurring items...........................................................................................................................................................................62 Financial income and expenses.......................................................................................................................................................62 Corporation tax .....................................................................................................................................................................................63 Intangible assets...................................................................................................................................................................................63 Property, plant and equipment........................................................................................................................................................65 Leases .......................................................................................................................................................................................................65 Investments in associates..................................................................................................................................................................67 Other ﬁnancial assets..........................................................................................................................................................................68 Inventories..............................................................................................................................................................................................68 Prepaid expenses and accrued income..........................................................................................................................................68 Share capital...........................................................................................................................................................................................68 Value adjustments of currency hedges..........................................................................................................................................69 Earnings per share ...............................................................................................................................................................................69 Dividend...................................................................................................................................................................................................69 Deferred tax............................................................................................................................................................................................70 Bank loans and mortgage loans.......................................................................................................................................................70 Financial assets and liabilities .........................................................................................................................................................70 Acquisition of entities (business combinations).........................................................................................................................71 Acquisition of entities (associates)................................................................................................................................................. 73 Changes in liabilities attributable to ﬁnancing activities....................................................................................................... 73 Pledged assets, contingent liabilities and commitments .......................................................................................................74 Related party transactions ................................................................................................................................................................74 Events after the balance sheet date................................................................................................................................................74 Companies in TCM Group..................................................................................................................................................................74 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 52 Notes to the consolidated financial statements New IFRS standards that have not yet been applied A number of new or amended IFRS standards will come into eﬀect in future ﬁnancial years, but have not been applied in advance when preparing these consolidated ﬁnancial statements. The Group has assessed these standards and interpreta- tions and concluded that they are not expected to have a material impact on the Group’s ﬁnancial statements, except for IFRS 18: IFRS 18 Presentation and Disclosure in Financial State- ments: This introduces new requirements that will help to achieve comparability of the ﬁnancial performance of similar entities and provide more relevant information and transparency. The main expected change is that operating proﬁt will include foreign exchange gains/ losses and loss on monetary items. If ownership is reduced to such an extent that the con- trolling interest is lost, any remaining holdings are rec- ognised at fair value and the change in value is recog- nised in the income statement. 1. Accounting policies Principles applied in the preparation of the consolidated financial statements The consolidated ﬁnancial statements are presented in accordance with IFRS accounting standards as adopted by the EU and additional requirements of the Danish Financial Statements Act. The accounting policies are unchanged compared to last year. TCM Group’s iXBRL tagging follows the ESEF taxonomy disclosed in the annexes to the ESEF Regulation and developed based on the IFRS taxonomy published by the IFRS Foundation. Transactions that are eliminated through consolidation Intra-group receivables and liabilities, income and expenses, and unrealised gains or losses that arise from transactions between Group companies are eliminated fully in the preparation of the consolidated ﬁnancial statements. The line items in the consolidated ﬁnancial statements are XBRL-tagged to the elements of the ESEF taxonomy that are considered to match the content of those line items. For line items not considered to be covered by line items deﬁned in the taxonomy, entity-speciﬁc exten- sions to the taxonomy have been incorporated. Except for subtotals, these extensions are anchored to standard elements of the ESEF taxonomy. In compliance with the requirements of the ESEF Regu- lation, the annual report approved by Management comprises a ZIP ﬁle, tcm-group-2024-12-31-en.zip, which includes an XHTML ﬁle that can be opened using standard web browsers, and a number of technical XBRL ﬁles enabling mechanical retrieval of the XBRL data incorporated. Business combinations Business combinations are recognised in accordance with the acquisition method. This means the acquired identiﬁ- able assets and assumed liabilities and contingent liabili- ties are recognised at the fair value on the acquisition date. The consideration is measured at fair value of the consideration transferred to the former owner of the acquiree. Acquisition-related costs are recognised as non-recurring items in the income statement as incurred. Goodwill arising from business combinations is calcu- lated as the total of the consideration transferred, any non-controlling interests and the fair value of previ- ously held interests (for step acquisitions) less the fair value of the subsidiary’s identiﬁable assets and assumed liabilities. If the diﬀerence is negative, it is recognised directly in net proﬁt for the year. Contingent consideration in acquisitions is measured at fair value on both the acquisition date and continuously thereafter, with changes in value recognised in the income statement. For acquisitions of subsidiaries involving non- controlling interests, the Group recognises net assets attributable to non-controlling interests at the fair value of all the net assets either excluding or including good- will. The principle is decided individually for each acquisition. When a business combination is achieved in stages, the Group’s previously held interests in the acquired entity Implementation of new standards, amendments and interpretations TCM Group has assessed the eﬀect of the new standards, amendments and interpretations. TCM Group has con- cluded that all standards, amendments and interpreta- tions eﬀective for ﬁnancial years beginning on or after 1 January 2024 are either not relevant to the Group or have no signiﬁcant eﬀect on the consolidated ﬁnancial statements. Classification, etc. Non-current assets essentially comprise amounts that are expected to be recovered more than 12 months after the balance sheet date. Current assets essentially com- prise amounts that are expected to be recovered within 12 months of the balance sheet date. Non-current liabil- ities comprise amounts that TCM Group has an uncon- ditional right to pay more than 12 months after the bal- ance sheet date. Other liabilities comprise current liabilities. Changes in classiﬁcation Comparative ﬁgures in the income statement and bal- ance sheet have been restated to match this year’s clas- siﬁcation, which includes a change in the classiﬁcation of certain income types from revenue to reduction in cost of goods sold by DKK 24.7 million and reduction in selling expenses by DKK 2.5 million. The adjustments to comparative ﬁgures has an eﬀect on gross proﬁt of 2.5 million, and no eﬀect on net proﬁt or equity. General principles Assets and liabilities are recognised at historic acquisi- tion cost, except for certain ﬁnancial assets and liabili- ties and non-current assets held for sale. Financial assets and liabilities measured at fair value comprise derivative instruments. Non-current assets held for sale are recognised at the lower of the carrying amount and fair value, less selling expenses. The parent company’s functional currency is the Danish krone (DKK), which is also the presentation currency for the parent company and the Group. Accordingly, the consolidated ﬁnancial statements are presented in DKK. All amounts are stated in DKK thousand, unless indi- cated otherwise. Consolidation principles and business combinations Subsidiaries Subsidiaries are companies where TCM Group has con- trol. Control entails the direct or indirect right to shape a company’s ﬁnancial or operational strategies in a bid to receive ﬁnancial beneﬁts. When assessing whether con- trol exists, potential voting shares that can be immedi- ately utilised or converted must be taken into account. The ﬁnancial statements of subsidiaries are included in the consolidated ﬁnancial statements from the date that the controlling interest arises and until the date on which the controlling interest ceases. Reporting under the ESEF Regulation The Commission Delegated Regulation (EU) 2019/815 on the European Single Electronic Format (ESEF Regula- tion) requires listed companies in the EU to use a par- ticular electronic reporting format for their annual reports. More speciﬁcally, the annual report must be prepared in XHTML format with iXBRL tagging of the consolidated ﬁnancial statements, including notes. At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 53 Notes to the consolidated financial statements (continued) receipts and disbursements during the ﬁxed-interest term equal to the carrying amount of the receivable or liability. The calculation includes all fees paid or received by contractual parties that are part of the eﬀec- tive interest rate, i.e. transaction costs and surplus and deﬁcit values. Intangible assets Goodwill comprises the amount by which the cost of the acquired entity exceeds the established fair value of identiﬁable net assets, as recognised in the acquisition analysis. In connection with the acquisition of entities, goodwill is allocated to cash-generating units and the fair value of each brand is measured. Since goodwill and the Svane Køkkenet brand have an indeﬁnite useful life, they are not amortised. The indeﬁnite useful life is justi- ﬁed by the long life of the brand, as there is no intention of changing the brand set-up. Thus, it is not possible to determine a useful life. Instead, goodwill and the Svane Køkkenet brand are subject to impairment testing annu- ally or if an indication of impairment arises. The carry- ing amount comprises the cost less any accumulated impairment losses. A description of the method and assumptions applied when conducting impairment tests is found in note 12 Intangible assets. Other intangible assets with deﬁnite useful life, includ- ing the AUBO brand, are recognised at cost less accumu- lated amortisation and any impairment. This also includes capitalised costs for purchases and internal and external costs for the development of software for the Group’s IT operations, patents and licences. Amortisa- tion is calculated according to the straight-line method based on the estimated useful life of the asset (3-10 years). 1. Accounting policies (continued) are remeasured to its acquisition-date fair value, and the resulting gain or loss, if any, is recognised in the income statement. When a controlling interest is achieved, changes in ownership are recognised as a reallocation of sharehold- ers’ equity between the parent company’s owners and non-controlling interests, without any remeasurement of the subsidiary’s net assets. bound transportation costs, and indirect costs related to manufacturing, such as salaries, energy and mainte- nance costs, as well as depreciation of production facili- ties and equipment. Tax Tax costs for the year comprise current tax and deferred tax. Income taxes are recognised in the income state- ment except when the underlying transaction is recog- nised in other comprehensive income or in sharehold- ers’ equity, in which case the associated tax eﬀects are recognised directly in other comprehensive income or in shareholders’ equity. Non-recurring items Non-recurring items are applied in connection with the presentation of the proﬁt or loss for the year to distin- guish income and expenses that are special and of a non-recurring nature from the consolidated operating proﬁt for the year. Non-recurring items are assessed item by item and comprise restructuring costs, impair- ment charges in connection with e.g. material restruc- turing and other items relating to fundamental reorgan- isations as well as gains or losses on major disposals. Segment reporting An operating segment is a part of the Group that con- ducts business activities from which it earns revenue and incurs expenses and for which independent ﬁnan- cial information is available. Furthermore, the results of an operating segment are monitored by the company’s chief operating decision-maker to evaluate them and to allocate resources to the operating segment. TCM Group has only one operating segment, which is producing and selling kitchens, bathrooms and storage. Current tax is tax that is to be paid or received regarding the current year, calculated using the tax rates set or set in principle on the balance sheet date. This item also includes adjustments to current tax attributable to pre- vious periods. Deferred tax is calculated according to the balance sheet method on all temporary diﬀerences arising between the carrying amount and tax base of assets and liabilities. The tax eﬀect attributable to tax loss carryforwards that could be utilised against future proﬁts is capitalised as a deferred tax asset. This applies to both accumulated loss carryforwards at the acquisition date and losses arising subsequently. Deferred tax is measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled. Deferred tax is recognised in the balance sheet as a non-current asset or liability. The income tax liability is recognised as a current receivable or current liability. If the actual outcome diﬀers from the amounts initially recognised, the diﬀerences will aﬀect current tax and deferred tax in the period in which these calculations are made. Operating expenses (selling and administrative expenses) Operating expenses primarily comprise selling and administrative expenses. Selling expenses include staﬀ costs, marketing costs, losses (incl. provisions for losses) on trade receivables, and other costs related to sales and marketing activities. Administrative expenses include staﬀ costs and other costs related to administration. Revenue recognition The Group sells kitchen products through a number of independent stores, DIY chains and other retailers. Rev- enue is recognised in the income statement when con- trol of the products has been transferred to the cus- tomer. Control is transferred when the products are delivered, which occurs when the Group has objective evidence that all criteria for transfer of risk have been satisﬁed. Revenue is only recognised to the extent that it is highly probable that a signiﬁcant reversal will not occur. Products are often sold with retrospective volume discounts. Net revenue is recognised at the fair value of the consideration agreed, excluding VAT, duties and discounts in relation to the sale. Property, plant and equipment Property, plant and equipment are recognised at cost with deductions for depreciation and any impairment. Cost includes expenses that can be directly attributed to the acquisition. Costs for repairs and maintenance are recognised as costs in the income statement in the period in which they arise. If an asset’s carrying amount exceeds its estimated recoverable amount, the asset is written down to the recoverable amount, and the write-down is recognised in the income statement. Share of profit/loss in associates The Group’s share of associates’ results after tax and elimination of the proportionate share of internal proﬁt/ loss is recognised in the income statement. Financial income and expenses Financial income and expenses comprise interest income on bank balances and receivables, interest expense on loans, gain/loss on interest rate swaps as well as exchange rate diﬀerences on ﬁnancial items. Interest income on receivables and interest expense on liabilities are calculated in accordance with the eﬀective interest rate method. The eﬀective interest rate is the interest rate that makes the present value of all future Cost of goods sold Cost of goods sold includes the manufacturing costs incurred to achieve the revenue for the year. These con- sist of raw materials, direct labour costs, in- and out- In the income statement, operating proﬁt is reduced by straight-line depreciation, which is calculated on the original cost less estimated residual value after useful At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 54 Notes to the consolidated financial statements (continued) material change in circumstances that are within the control of the lessee. • The lease term is changed as a result of exercising an option to extend or shorten the lease term. • The estimate of a residual value guarantee is changed. • The contract is renegotiated or modiﬁed. Subsequent adjustment of the lease obligation is recog- nised as a correction to the right-of-use asset. However, if the right-of-use asset has a value of DKK 0, a negative reassessment of the right-of-use asset is recognised in the income statement. Lease period The company recognises the lease obligations on the basis of the future payments during the lease period. The lease period consists of the non-cancellable period and periods covered by extension and termination options. The company rents properties for production and for retail leases. Often leases do not have a ﬁxed expiry date, but continue after the non-cancellable period until the lessee terminates the contract. When determining the lease term, the company therefore assesses whether it is reasonably certain of exercising or not exercising exten- sion options. Retail leases are in all cases subleased to franchisees on the same terms, for which reason the lease term is esti- mated to be the same period. The right-of-use asset is therefore recognised under Lease receivables in the bal- ance sheet. For the company’s vehicles, the incremental borrowing rate is calculated based on the company’s borrowing rate. This interest rate takes into account credit assess- ments, collateral, leasing periods, etc. For rental contracts for premises, the possibility of using mortgage ﬁnancing of real estate has been taken into account when calculating the incremental borrow- ing rate. 1. Accounting policies (continued) The right-of-use asset is measured at cost, which is cal- culated as the present value of the lease obligation plus any direct costs associated with entering into the lease, any costs for demolition and disposal of the asset at the end of the lease period that the lessee is obliged to pay, and prepaid lease payments. The right-of-use asset is depreciated on a straight-line basis over the shorter of the lease term and the useful life of the asset. If the lease agreement contains a pur- chase option that the company expects to exercise, the right-of-use asset is depreciated on a straight-line basis over the total expected useful life of the asset. The company’s vehicle leases include a service element in the payments to the lessor. This service is deducted from the lease payment when measuring the lease obli- gation. Where the company cannot reliably separate lease and non-lease items, it is considered a single lease payment. Short leases of less than 12 months and leases where the underlying asset has a low value are not recognised in the balance sheet. The lease obligation, which is recognised under lease liabilities, is measured at the present value of the remaining lease payments, discounted by the company’s incremental loan interest rate if the implicit interest rate is not stated in the lease agreement or cannot reason- ably be determined. The lease payment consists of ﬁxed and variable lease payments that are regulated by index or interest rate, guaranteed residual values, the exercise of purchase options and the cost of cancelling the lease. The lease obligation is subsequently adjusted if: • The value of the index or interest rate on which the lease payments are based changes. • There is a change in the exercise of options to extend or shorten the lease period due to a material event or life and is based on the estimated useful life of the assets as follows: Buildings 20-40 years Machinery and other technical equipment 3-10 years Equipment, tools, ﬁxtures and ﬁttings 2-8 years Land is not depreciated. Expected useful life and residual value are reviewed annually. Investments in associates Investments in associates are measured using the equity method, whereby the investments in the balance sheet are measured at the proportionate share of the compa- nies’ net asset value calculated in accordance with the Group’s accounting policy after elimination of the pro- portionate share of unrealised internal proﬁt/loss and with addition of value added on acquisition, including goodwill. Investments in associates are tested for impairment if an indication of impairment arises. Research and product development Costs for product development are expensed immedi- ately as and when they arise. Product development within the Group is mainly in the form of design development and is conducted continu- ously to adapt to current style trends. To a large extent, product development is based on the further develop- ment of existing materials and designs, which is why no portion of the costs for product development is recog- nised as an intangible asset. The Group does not carry out research and development in the true sense, or to any signiﬁcant extent. Inventories Inventories comprise ﬁnished and semi-ﬁnished prod- ucts and raw materials. Inventories are valued according to the ﬁrst-in, ﬁrst-out (FIFO) principle, at the lower of cost and net realisable value on the balance sheet date. The realisable value comprises the estimated sales price in the ongoing operations less selling expenses. Cost of ﬁnished and semi-ﬁnished products is measured at manufacturing cost including raw materials, direct labour, other direct expenses and production-related overheads based on normal production capacity. Intra-group proﬁts on inventories are eliminated in the consolidated ﬁnancial statements. Leases When entering into an agreement, the company assesses whether an agreement is a lease agreement or contains a lease element. A lease is an agreement that transfers the right to control the use of an identiﬁable asset for a period against payment. In assessing whether an agree- ment contains a lease item that has been transferred to the lessee, it is necessary to consider whether the lessee has the right, during the useful life, to obtain virtually all the economic beneﬁts from the use of the identiﬁable asset and the right to decide on the use of the identiﬁ- able asset. The company recognises a right of use (the asset) and a lease obligation at the start of the lease period. Incremental borrowing rate The company has chosen to subdivide its leases into the following categories: • Rental contracts for premises • Vehicles The borrowing rate is set on initial recognition. If the company considers there is a change in the residual value guarantee, termination or renewal options, the incremental borrowing rate is revised. Financial instruments Financial instruments recognised in the balance sheet include cash and cash equivalents, loans, trade receiv- ables and derivative instruments on the asset side. On the liability side, there are trade payables, loan liabilities and derivative instruments. At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 55 Notes to the consolidated financial statements (continued) Financial liabilities related to contingent payment obli- gations are initially measured at fair value based on the estimated future performance of the acquired entity. These assumptions are then reviewed at each balance sheet date and the contingent payment obligation adjusted accordingly, with the adjustment being recog- nised in other income/other expenses. Impairment testing of intangible assets and property, plant and equipment If there is an indication of impairment, the recoverable amount of the asset is tested in accordance with IAS 36 (see below). For goodwill and assets with indeﬁnite life, e.g. certain brands, the recoverable amount is calculated annually. When testing for impairment, if it is not poss- ible to establish essentially independent cash ﬂows for an individual asset, the assets must be grouped at the lowest level at which it is possible to identify essentially independent cash ﬂows, known as cash-generating units (CGUs). Impairment losses are recognised when the carrying amount of an asset or a CGU exceeds the recoverable amount. Impairment losses are recognised in the income statement. Impairment losses related to assets attribut- able to a CGU are primarily allocated to goodwill. Subse- quently, other assets included in the CGU are impaired on a proportionate basis. The recoverable amount is the higher of fair value less selling expenses and value in use. When calculating the value in use, future cash ﬂows are discounted using a discount factor that takes into account the risk-free interest rate and the risk associated with the speciﬁc asset or CGU. 1. Accounting policies (continued) diately expensed. On initial recognition, a ﬁnancial instrument is classiﬁed on the basis of the purpose underlying the acquisition of the instrument. This clas- siﬁcation determines how the ﬁnancial instrument is measured after initial recognition, as described below. For the recognition of derivative instruments, refer to cash ﬂow hedges below. Recognition in and derecognition from the balance sheet A ﬁnancial asset or a ﬁnancial liability is entered in the balance sheet when the company becomes a party in accordance with the contractual terms of the instru- ment. A receivable is recognised when the company has performed a service and a contractual payment obliga- tion arises for the counterparty, even if no invoice has been received. Trade receivables are recognised in the balance sheet when revenue is recognised and an invoice has been issued. A liability is recognised when the coun- terparty has performed a service and a contractual pay- ment obligation arises, even if an invoice has not been received. Accounts payable are recognised when a ser- vice or product has been received. Cash ﬂow hedges, interest rate risk Interest swaps can be used to hedge the uncertainty of highly probable forecast interest rate ﬂows for borrow- ing at variable interest, whereby the company receives variable interest and pays ﬁxed interest. Interest rate swaps are measured at fair value in the balance sheet. The interest coupon portion is recognised in the income statement on an ongoing basis as a portion of interest expense. Unrealised changes in the fair value of interest rate swaps are recognised in other comprehensive income and are included as a portion of the hedging reserve until the hedged item impacts net proﬁt for the year and as long as the criteria for hedge accounting and eﬀectiveness are fulﬁlled. The gain or loss attributable to the ineﬀective portion of unrealised changes in the value of interest rate swaps is recognised in the income statement. Receivables and liabilities in foreign currencies Receivables and liabilities in foreign currencies are val- ued at the balance sheet date rate. Exchange rate ﬂuctu- ations pertaining to operating receivables and liabilities are recognised in operating proﬁt, while exchange rate ﬂuctuations pertaining to ﬁnancial receivables and lia- bilities are recognised in net ﬁnancial items. Loans and trade receivables Loans and trade receivables comprise ﬁnancial assets that are not derivative instruments, that have ﬁxed or ﬁxable payments and that are not listed on an active market. For TCM Group, this category includes non-current ﬁnancial assets and trade receivables and other receivables recognised as current assets. These assets are valued at amortised cost. Amortised cost is determined based on the eﬀective rate calculated on the acquisition date. Loans and trade receivables are recog- nised at the amounts that are expected to be received, i.e. less any provisions for decreases in value. Receiv- ables with short maturities are not discounted. A ﬁnancial asset is derecognised from the balance sheet when the rights resulting from the agreement have been realised, expire or the company loses control over them. The same applies to a part of a ﬁnancial asset. A ﬁnan- cial liability is derecognised from the balance sheet when the obligation resulting from the agreement has been realised or is extinguished in some other manner. The same applies to a part of a ﬁnancial liability. A ﬁnancial asset and a ﬁnancial liability may only be oﬀset against each other and recognised net in the bal- ance sheet if there is a legal right to oﬀset the amounts and the intention is to settle the items in a net amount or to simultaneously sell the asset and settle the debt. The acquisition or divestment of ﬁnancial assets is rec- ognised on the transaction date for on-demand transac- tions, which is the date when the company undertakes to acquire or sell the asset. Derivative ﬁnancial instruments On initial recognition in the balance sheet, derivative ﬁnancial instruments are measured at cost and subse- quently at fair value. Derivative ﬁnancial instruments are recognised under other receivables/other payables. Changes that comply with the requirements for hedging of the future cash ﬂow of a recognised asset or liability are recognised in the statement of comprehensive income. Impairment of ﬁnancial assets Trade receivables are recognised initially at their trans- action price less allowance for expected credit losses over the lifetime of the receivable and are subsequently measured at amortised cost adjusted for changes in expected credit losses. The expected credit losses on trade receivables are estimated based on the level of unsecured balances past due. Receivables that the Group has no reasonable expecta- tion of recovering are written oﬀ in part or entirely. Allowances for expected credit losses and write-oﬀs for trade receivables are recognised in the income state- ment and included in selling expenses. Cash and cash equivalents Cash and cash equivalents are deﬁned as cash and bank balances and short-term investments with maturities not exceeding three months from the acquisition date. Impairment The carrying amounts of the Group’s assets are tested annually for indications of impairment. IAS 36 is applied to the impairment testing of assets other than ﬁnancial assets, if any, which are tested according to IFRS 9 Inventories and Deferred Tax Assets. Financial liabilities All transactions pertaining to ﬁnancial liabilities are recognised on the settlement date. Liabilities (except for derivative instruments with negative values) are meas- ured at amortised cost. Measurement Financial instruments that are not derivative instru- ments are initially recognised at cost corresponding to the instrument’s fair value plus transaction costs. Transaction costs for derivative instruments are imme- At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 56 Notes to the consolidated financial statements (continued) 1. Accounting policies (continued) this amount and the amount paid to acquire or received for disposing of treasury shares are deducted directly in retained earnings. dilutive eﬀects of potential ordinary shares, including employee share options. The options are dilutive if the exercise price is lower than the share price. The greater the diﬀerence between the exercise price and the share price, the greater the dilution. For options, the exercise price is added to the value of future services. 2. Significant accounting estimates and judgements Preparing the consolidated ﬁnancial statements in accordance with IFRS requires Management to make assessments, estimates and assumptions that aﬀect the application of accounting policies and the recognised amounts of assets, liabilities, income and expenses. The actual outcome may diﬀer from these estimates and assessments. Estimates and assumptions are regularly reviewed. Changes to estimates are recognised in the period in which the change is made if the change aﬀects only that period, or in the period in which the change is made and future periods if the change aﬀects both cur- rent and future periods. Assessments made by Manage- ment in the application of IFRS that have a material impact on the consolidated ﬁnancial statements and estimates made that may lead to signiﬁcant adjustments in the consolidated ﬁnancial statements in future ﬁnan- cial years are primarily the following: Impairment reversal An impairment loss on assets that come under the scope of IAS 36 is reversed if there is an indication that the impairment is no longer pertinent and that there has been a change in the assumptions upon which the calcu- lation of the recoverable amount was based. However, an impairment loss on goodwill and brands with indeﬁnite useful life is never reversed. A reversal is only performed to the extent that the carrying amount of the asset after the reversal does not exceed the carrying amount that would have been recognised, less depreciation where applicable, if no impairment had been posted. An impairment loss on loans and trade receivables rec- ognised at amortised cost is reversed if the previous rea- sons for the impairment loss no longer exist and full payment can be expected to be received from the customer. Statement of cash flows The cash ﬂow statement shows the cash ﬂows from operating, investing and ﬁnancing activities for the year, the year’s changes in cash and cash equivalents as well as cash and cash equivalents at the beginning and end of the year. The cash ﬂow eﬀect of acquisitions and disposals of entities is shown separately in cash ﬂows from investing activities. Cash ﬂows from acquired entities are recog- nised in the cash ﬂow statement from the date of acqui- sition, and cash ﬂows from entities disposed of are rec- ognised up until the date of disposal. Employee benefits Long-term remuneration The Group operates schemes that reward employees for long service. The obligation is deemed insigniﬁcant and the Group therefore recognises the expense at the time of the employee’s anniversary. The Group has an equity-settled, share-based long- term incentive (LTI) programme for the Executive Man- agement, which is governed by the Remuneration Policy. The LTI is a share-based programme consisting of annual individual performance share unit (PSU) plans with rolling 3-year performance periods. The fair value of employee services rendered in return for the grant of shares is recognised as an expense and allocated over the vesting period. At the end of each reporting period, TCM Group revises its estimates of the number of shares expected to vest. TCM Group recognises the impact of the revision, if any, of the original estimates in the income statement and in a corresponding adjustment to equity over the remaining vesting period. Adjustments relating to prior years are included in the income state- ment in the year of adjustment. Cash ﬂows from operating activities are calculated according to the indirect method as operating proﬁt adjusted for non-cash operating items, changes in working capital and corporation tax paid. Cash ﬂows from investing activities comprise payments in connection with acquisitions and disposals of entities and activities and of intangible assets and property, plant and equipment, and other non-current assets as well as dividends received. Cash ﬂows from ﬁnancing activities comprise changes in the size or composition of the share capital and related costs as well as the raising of loans, repayment of interest-bearing debt, interest and payment of divi- dends to shareholders. Contingent liabilities A contingent liability is disclosed when the company has a possible obligation deriving from an event the exist- ence of which will be conﬁrmed only by one or more uncertain future events, or when there is an obligation that has not been recognised as a liability or provision because an outﬂow of resources is not likely to be required, or alternatively because it is not possible to estimate the amount concerned suﬃciently reliably. Impairment testing of goodwill and brands Goodwill and brands with indeﬁnite useful life are rec- ognised at cost less any accumulated impairment. The Group performs annual impairment tests of goodwill and brands in accordance with the accounting policies. The assumptions and assessments made pertaining to expected cash ﬂows and the discount rate in the form of weighted average cost of capital are described in note 12. Contingent payment obligations Financial liabilities related to contingent payment obli- gations are measured based on the estimated future performance of the acquired entity. When assessing the future performance Management takes into considera- tion factors including expected market and customer development, and current order backlog. As these esti- mates relate to future performance up to 3 years after the balance sheet date, they are subject to a high degree of uncertainty. Shareholders’ equity Dividends Dividends are recognised as a liability after the Annual General Meeting has approved the dividend. Short-term remuneration Short-term remuneration of employees is calculated without discounting and is recognised as a cost when the related services are rendered. A provision is recognised for the anticipated cost of bonus payments when the Group has a current legal or contractual obligation to make such payments, based on the services being ren- dered by the employees and the possibility of reliably estimating the obligation. Earnings per share The calculation of earnings per share is based on consol- idated net proﬁt attributable to the parent company shareholders and on the weighted average number of shares outstanding during the year. When calculating earnings per share after dilution, the average number of shares outstanding is adjusted to take into account the Treasury shares Treasury shares are primarily acquired to ﬁnance TCM Group’s share-based long-term incentive programme for Executive Management. Treasury shares are deducted from the share capital on cancellation at their nominal value of DKK 0.1 per share. Diﬀerences between At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 57 Notes to the consolidated financial statements (continued) 3. Financial risks Foreign exchange risk TCM Group has currency exposure and risks related to sales in NOK. In accordance with the Group’s foreign currency policy, forward contracts are used to mitigate such risks. Forward contracts are used to hedge 50-100% of the expected cash ﬂows in NOK on a 6-month rolling basis. Based on the net position (trade receivables and bank deposits less trade payables) in NOK at the balance sheet date, a 10% change in the year-end rate would impact net proﬁt and equity by DKK 4.5 million. Apart from NOK, revenue is only invoiced in DKK, and purchases are mainly in DKK or EUR. Due to the current ﬁxed rate of the DKK vis-à-vis EUR, EUR cash ﬂows related to purchases were not hedged during the year. Purchase-related cash ﬂows in currencies other than DKK, EUR and NOK amounted to DKK 1.4 million (2023: DKK 1.5 million) and were not hedged during the year. Financial exposure and Liquidity risk The Group maintains three credit facilities with Nykredit Bank: 1) DKK 220 million committed facility: This facility is set to expire in March 2026 and includes two 1-year exten- sion options available on similar terms. 2) DKK 130 million committed facility: Established in 2023 to support the acquisition of AUBO Production A/S, this facility also expires in 2026 and oﬀers two 1-year extension options on similar terms. 3) DKK 50 million uncommitted facility: This 1-year facility will expire in March 2025. At 31 December 2024, the facilities comprised an unused amount of DKK 184 million with a further DKK 29 million in cash. Based on our scenarios for 2025, the current credit facilities provide suﬃcient headroom, and the forecast leverage will be within the covenants agreed in the credit facility agreements. The facility agreements with Nykredit Bank contained a leverage covenant of 4.5 until 31 December 2024 and 4.0 for the remaining ﬁnancing period. No covenants have been breached during the period. Mortgage loans with a nominal amount of DKK 36 mil- lion (2023: DKK 25 million) are amortised over 20 years and expire in 2044. Forward Exchange contracts 2024 2023 DKK’000 DKK’000 NOK Forward contracts, contract value 18,300 55,077 NOK Forward contracts, average forward rate 63.1 65.0 NOK Forward contracts, maturity – months 1-4 1-5 NOK Forward contracts, carrying amount (fair value) 127 (1,220) NOK Forward contracts, fair value adjustment 1,347 (47) Age analysis, trade receivables 2024 2023 DKK’000 DKK’000 Trade receivables before impairment Non-due trade receivables 52,179 72,315 Past due trade receivables, 0-30 days 4,455 5,834 Past due trade receivables, 30-90 days 134 1,378 Past due trade receivables, >90 days 8,764 9,279 Trade receivables before impairment 65,532 88,806 Of which overdue 13,353 16,491 Overdue secured receivables 4,774 2,806 - Impaired 0 0 Total overdue secured receivables after impairment 4,774 2,806 Overdue unsecured receivables 8,579 13,685 - Impaired (7,618) (9,521) Total overdue unsecured receivables after impairment 961 4,164 Impairment loss recognised in the income statement during the period 4,314 8,869 Credit risk TCM Group’s customer base comprises professional customers. Credit management and payment terms are monitored for each customer group. Customers who make regular purchases are subject to continuous credit assessments. Credit insurance, bank guarantees and other collateral are utilised for the diﬀerent markets and customer categories. Actual losses on trade receivables in 2024 amounted to DKK 4.3 million (2023: DKK 8.9 million), primarily related to bankruptcies of three stores in Denmark and Norway. Total expensed actual losses and the decrease in provi- sions amounted to DKK 2.3 million, equal to 0.2% of net revenue for the year. Interest-rate risk It is Group policy to hedge interest rate risk on loans when it is assessed that the debt is material. The Group manages interest rate risk by maintaining an appropri- ate mix of ﬁxed- and ﬂoating-rate borrowings, and by using interest rate swaps. At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 58 Notes to the consolidated financial statements (continued) 3. Financial risks (continued) The interest rates on the Nykredit facilities are currently variable and the interest rates on the mortgage loans are currently ﬁxed. For the Group’s ﬂoating-rate cash and cash equivalents and debt to banks, an increase in the interest rate level of 1% p.a. relative to the actual interest rates would have had a negative impact on net proﬁt for the year and on equity at 31 December 2024 of DKK 2.2 million (2023: DKK 2.9 million). The Board of Directors will propose to the Annual Gen- eral Meeting to distribute an ordinary dividend of DKK 3 per share. Excluding treasury shares this corresponds to DKK 31 million. MATurity structure, financial and operational liabilities – undiscounted cash flows Nominal amount, 5 years functional 0-6 6-12 1-5 or DKK million currency months months years later Total 2024 Bank loans 215.4 28.5 5.8 198.3 0.0 232.6 Mortgage loans 36.5 1.5 1.5 11.8 41.5 56.3 Lease liabilities 56.0 7.8 7.0 29.9 19.7 64.4 Trade payables 122.3 122.3 0 0.0 0.0 122.3 Other liabilities 118.6 68.8 8.2 50.4 0.0 127.4 Financial and operational liabilities at 31 December 2024 228.9 22.5 290.4 61.2 603.0 Fair value hierarchy of financial instruments measured at fair value in the balance sheet Interest rate swaps are valued using an income approach (discounted cash ﬂow). Expected future cash ﬂows are based on relevant observable swap rates and discounted using a discount rate that reﬂects the credit risk of the relevant counterparties (level 2). Assumptions for analysis of interest rate sensitivity The stated sensitivities are calculated based on the ﬁnancial assets and liabilities recognised at 31 December 2024. No adjustments have been made for instalments, raising of loans, etc. during the year. The computed expected ﬂuctuations are based on the current market situation and expectations for market developments in the interest rate level. The classiﬁcation of ﬁnancial instruments measured at fair value is disaggregated in accordance with the fair value hierarchy: • Quoted prices in an active market for identical instruments (level 1) • Quoted prices in an active market for similar assets or liabilities, or other valuation methods where all signiﬁcant inputs are based on observable market data (level 2) • Valuation methods where no signiﬁcant input is based on observable market data (level 3) The majority shareholder of Celebert ApS has a put option for the 55% shareholding in Celebert ApS. Based on the lat- est internal ﬁnancial reporting for Celebert ApS, the put option has a gross value int the range of DKK 65 to 80 million. Management estimates the fair market value of the put option to be equal to the gross value. Capital management The Board of Directors has adopted a dividend policy with a target payout ratio of 40-60% of consolidated net proﬁt for the year, subject to the overall ﬁnancial posi- tion and leverage. Nominal amount, 5 years functional 0-6 6-12 1-5 or DKK million currency months months years later Total 2023 Bank loans 238.3 100.8 5.4 160.6 0.0 266.7 Mortgage loans 25.3 1.7 1.7 13.1 13.0 29.4 Lease liabilities 62.3 8.4 8.4 34.4 23.3 74.5 Trade payables 144.7 144.7 0.0 0.0 0.0 144.7 Other liabilities 130.3 71.3 7.4 60.1 0.0 138.8 Financial and operational liabilities at 31 December 2023 326.9 22.8 268.1 36.3 654.1 Carrying amount of derivative financial instruments 2024 2023 DKK’000 DKK’000 Hedging – currency ﬂuctuation (level 2) (127) 1,220 Contingent payment obligation, AUBO Production A/S (level 3) 8,000 17,500 18,720 7,873 The fair value of ﬁnancial assets and ﬁnancial liabilities measured at amortised cost is approximately equal to the carrying amount, because of the short maturity of the ﬁnancial assets and the ﬂoating rate on the ﬁnancial liabilities. At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 59 Notes to the consolidated financial statements (continued) 4. Revenue and segment information 5. Staff Costs Total costs for employee benefits DKK’000 2024 2023 Salaries and other remuneration 219,069 207,697 Social security costs 6,079 4,760 Pension costs – deﬁned contribution plans 21,208 18,470 Other staﬀ costs 258 270 Total employee costs 246,614 231,197 The Group’s business activities are managed within a single operating segment, which is producing and selling kitchens, bathrooms and storage. The Group’s Management monitors the operating segment’s results to evaluate it and to allo- cate resources. Intangible Intangible assets and assets and Revenue property, Revenue property, from plant and from plant and customers equipment customers equipment DKK’000 2024 2024 2023 2023 Geographic areas Denmark 969,042 882,438 915,435 858,082 Norway 222,897 45,625 155,844 51,875 Other countries 11,844 0 12,847 0 1,203,783 928,063 1,084,126 909,957 The average number of employees and the number of men and women among board members and Executive Management are described in note 6. Remuneration and other benefits Variable Base Variable remu- salary/ remunera- neration, Directors’ tion, cash- share- Other Pension Number of DKK’000 fees based (STI) based (LTI) benefits costs Total individuals 2024 Board of Directors 2,547 0 0 0 0 2,547 6 Executive Management 4,602 1,901 1,105 612 501 8,721 2 Total 7,149 1,901 1,105 612 501 11,268 8 2023 Board of Directors 2,625 0 0 0 0 2,625 7 Executive 4,561 1,000 425 398 447 6,831 2 Management Total 7,186 1,000 425 398 447 9,456 9 DKK’000 2024 2023 Revenue by category Revenue, core business 895,463 827,124 Revenue, third party 308,320 257,002 1,203,783 1,084,126 Revenue consists of sale of goods and services. In 2024, two single customers, with revenue of DKK 186 million (2023: DKK 181 million) and DKK 134 million (2023: DKK 150 million) respectively, individually exceeded 10% of revenue. At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 60 Notes to the consolidated financial statements (continued) 5. Staff Costs (continued) Employees, including the Board of Directors and the Executive Management, have the opportunity to buy kitchens, bathrooms and storage solutions at a discounted price. Purchases are made indirectly through an independent store. The total value of the purchases made by the Board of Directors and the Executive Management was DKK 340 thousand (2023: DKK 25 thousand) during the year. The Remuneration Report for the Board of Directors and the Executive Management is available on TCM Group’s website. 2024 2023 Number of performance share units As at 1 January 65,766 27,170 Granted during the year 37,885 38,596 Exercised during the year (1,949) 0 Forfeited during the year (7,794) 0 As at 31 December 93,908 65,766 Board of Directors Remuneration of members of the Board of Directors is determined by resolutions passed at the Annual General Meeting. Executive Management The Executive Management, which in 2024 consisted of two individuals, received salaries and pension contributions during the ﬁnancial year 2024 amounting to DKK 5.1 million (2023: DKK 5.0 million) plus variable remuneration and other beneﬁts amounting to a total of DKK 8.7 million (2023: DKK 6.8 million). In addition to the base salary, the Executive Management has a short-term incentive (STI) programme and a long-term incentive (LTI) programme which are governed by the Remuneration Policy. The STI programme for 2024 is capped at up to 50% of the annual base salary and is based on annual KPIs. The bonus criteria for the STI programme are revenue, EBITDA and NWC ratio. The STI programme includes a threshold for the EBITDA target that, if not achieved, will result in no STI bonus being paid, regardless of performance on other KPIs. The LTI programme is granted exclusively to the Executive Management and consists of annual individual performance share unit plans with rolling 3-year performance periods for the periods 2022-2024, 2023-2025 and 2024-2026. When the LTI programme is granted to the participants, a maximum of up to 50% of the annual base salary is converted to a maximum number of performance share units based on the current share price, e.g. an average over a 3-month period. At the end of each performance period, the performance share units may be converted into shares in TCM Group, which will be granted free of charge. The performance measures for the LTI programme are all 3-year accumulative and com- prise absolute total shareholder return on the company’s share, EBITDA and carbon emissions reductions. The fair value of the LTI programme is estimated on an annual basis. No performance share units expired during the periods covered by the above tables. 2024 2023 Performance Share Units outstanding at year-end have the following expiry dates: 31 March 2024 0 9,743 31 March 2025 17,427 17,427 31 March 2026 38,596 38,596 31 March 2027 37,885 0 Total 93,908 65,766 Weighted average remaining contractual life of performance share units 1.69 outstanding at year-end 1.47 Estimated Estimated exercise exercise DKK’000 2024 ratio 2023 ratio Fair value at 31 December: Granted in 2021 0 n.a. 275 20% Granted in 2022 227 20% 312 28% Granted in 2023 1,230 82% 1,102 73% Granted in 2024 1,900 85% 0 n.a. Total 3,357 1,689 Fair value is estimated based on the expected exercise ratio for the maximum number of performance share units and the share price when the LTI programme was granted (share price in 2024: DKK 59). At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 61 Notes to the consolidated financial statements (continued) 6. Average number of employees during the period 2024 2023 Average number of employees 460 445 Board members 6 7 Of which women 2 3 Executive Management 2 2 Of which women 0 0 The Board of Directors consisted of six members at the date of approval of the consolidated ﬁnancial statements. 8. Depreciation/amortisation and impairment by function Depreciation/ Depreciation/ amortiSation Impairment amortiSation Impairment DKK’000 2024 2024 2023 2023 Cost of goods sold 23,131 0 18,772 0 Selling expenses 7,689 0 4,330 3,352 Administrative expenses 4,767 0 3,207 0 Non-recurring items 0 0 0 1,911 Total depreciation/amortisation and 26,309 5,263 impairment 35,587 0 7. Audit fees In addition to the statutory audit, PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab, the auditors appointed at the Annual General Meeting, provides other assurance engagements and other services to the Group. DKK’000 2024 2023 Specification by type of cost Statutory audit 1,199 1,448 Other assurance engagements 0 52 Tax and indirect tax advisory 32 181 Other services 128 663 1,359 2,344 The fee for non-audit services delivered by PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab to the company amounted to DKK 0.1 million in 2024 and consisted of various accounting advisory services. In 2023, the fee for non-audit services delivered by PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab to the company amounted to DKK 0.9 million and consisted of various services, including due diligence in connection with the AUBO Production A/S acquisition. At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 62 Notes to the consolidated financial statements (continued) 9. Non-recurring items 10. Financial income and expenses DKK’000 2024 2023 Transaction costs related to business combinations 0 2,800 Impairment of ERP project, AUBO Production A/S 0 1,911 Restructuring 0 5,104 Total 0 9,815 DKK’000 2024 2023 Financial income Interest income on ﬁnancial assets measured at amortised cost 862 227 Interest income on discounted subleases 328 209 Foreign exchange gains 0 1,102 Total 1,190 1,538 The table below shows how the income statement (extract) would have been presented if no adjustment for non-recurring items had been made: Financial expenses Interest expense on liabilities measured at amortised cost 21,409 18,360 Interest expense on discounted lease liabilities 2,750 2,106 Foreign exchange losses 2,361 1,299 Other ﬁnancial costs 1,268 670 Total 27,788 22,435 DKK’000 2024 2023 Revenue 1,203,783 1,084,126 Cost of goods sold (948,377) (870,675) Gross profit 255,406 213,451 Selling expenses (101,429) (106,542) Administrative expenses (83,060) (67,523) Other operating income 19,391 6,410 Operating proﬁt 90,308 45,796 TCM Group presents non-recurring items separately to ensure comparability. Non-recurring items consist of income and expenses that are special and of a non-recurring nature. There were no non-recurring items in 2024. For 2023, non-recurring items consisted of transaction costs related to business combinations, restructuring costs related to organisational restructuring carried out during 2023 and impairment of an ERP project at AUBO Production A/S. At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 63 Notes to the consolidated financial statements (continued) 11. Corporation tax 12. Intangible assets Other Total comprehen- comprehen- Income sive sive DKK’000 statement income income Tax for the year can be specified as follows: Current tax 13,145 296 13,441 Change in deferred tax during the year (1,377) 0 (1,377) Total 11,768 296 12,064 Tax for the previous year can be specified as follows: Current tax 7,297 (47) 7,250 Change in deferred tax during the year (1,727) 0 (1,727) Total 5,570 (47) 5,523 Reconciliation of the eﬀective tax rate for the period can be speciﬁed as follows: DKK’000 % 2024 % 2023 Tax rate 22.0 15,277 22.0 5,960 Non-taxable income (4.8) (3,351) (2.6) (703) Non-deductible expenses 0.2 144 3.0 808 Other (0.4) (302) (1.8) (495) Eﬀective tax rate for the year 16.6 11,768 20.6 5,570 Non-taxable income primarily relates to income from adjustment of contingent payment obligations and result of associates. Non-deductible expenses primarily relate to transaction costs in connection with acquisitions. Other Other intangible Customer intangible assets in DKK’000 Goodwill Brands contracts assets progress Opening cost at 1 January 2024 415,350 179,461 47,500 53,578 35,576 Investments for the period 0 0 0 0 28,270 Transfer 0 0 0 7,007 (7,007) Closing cost at 31 December 2024 415,350 179,461 47,500 60,585 56,839 Opening amortisation and impairment at 1 January 2024 3,352 750 2,375 50,755 1,911 Amortisation for the period 0 1,500 4,750 2,239 0 Impairment for the period 0 0 0 0 0 Closing amortisation and impairment at 31 December 2024 3,352 2,250 7,125 52,994 1,911 Closing carrying amount at 31 December 2024 411,998 177,211 40,375 7,591 54,928 At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 64 Notes to the consolidated financial statements (continued) 12. Intangible assets (continued) Goodwill is tested annually for impairment by calculating the expected recoverable amount of the CGU. The recover- able amount is calculated as the expected cash ﬂow discounted by a weighted average cost of capital (WACC) after tax for the CGU. The recoverable amount, calculated in conjunction with this, is compared with the carrying amount for the CGU. The starting point of the calculation is the estimated future cash ﬂows based on the ﬁnancial budget for the forthcoming ﬁncial year. A forecast for the next four years is prepared based on this budget and expectations regarding market trends and sales mix in the years ahead, reﬂecting past experience. When estimating expected future cash ﬂows, key assumptions include projected demand growth, increases in net sales, improvements in gross and operating margins, as well as requirements for working capital and CapEx. Various macroe- conomic indicators - such as data on residential property sales in the markets where the Group operates - are consid- ered to analyse the business environment, supported by both external and internal assessments. Based on these analy- ses, Management has applied a projected low- to mid-single-digit growth rate in net sales over the forecast period, driven by an anticipated positive development in residential property sales in 2025 and 2026, and an anticipated recov- ery in the B2B project market towards the end of 2025 / early 2026, as described in the Management Review. Gross and operating margins are expected to improve gradually during the forecast period, reﬂecting changes in the sales mix and the implementation of various strategic initiatives. These assumptions also account for the Group’s long- term strategic eﬀorts, including diﬀerentiated branding, central sourcing, manufacturing optimisation and product development. To project cash ﬂows beyond the initial 5-year period, a growth rate of 2% (2023: 2%) has been applied. The WACC is calculated based on the average debt-to-equity ratio of large companies in similar industries and the respective costs of debt and equity. The cost of shareholders’ equity is determined under the assumption that all investors require at least the same level of return as risk-free government bonds, supplemented by a risk premium reﬂecting the estimated risks associated with investments in CGUs. The required return on debt-ﬁnanced capital is similarly calculated using the return on risk-free government bonds, with an added borrowing margin to account for estimated company-speciﬁc risk. A current tax rate of 22% is applied. In 2024, the Group’s weighted cost of capital before tax amounted to 11.4% (2023: 12.0%) and after tax to 9.25% (2023: 9.9%). The acquisition value of the Svane brand, DKK 172.0 million, is subject to an annual impairment test using the relief from royalty method. The recoverable amount is calculated using the expected cash ﬂow based on the budget for the forthcom- ing ﬁnancial year and a forecast for the next four years and a royalty on the expected brand revenue, discounted by a WACC after tax. The WACC is based on similar assumptions to the above. The recoverable amount is compared with the carrying amount. The acquisition value of the AUBO brand is amortised over the expected useful life, which has been set at 5 years. Apart from the impairment of goodwill related to Svane Alnabru AS in 2023, testing of goodwill and brand did not lead to any impairment in 2024 or 2023. In Management’s assessment, likely changes in the basic assumptions will not lead to the carrying amount exceeding the recoverable amount. Other Other intangible Customer intangible assets in DKK’000 Goodwill Brands contracts assets progress Opening cost at 1 January 2023 369,796 171,961 0 51,718 12,151 Acquisition of entities 45,554 7,500 47,500 428 3,044 Investments for the period 0 0 0 49 21,764 Transfer 0 0 0 1,383 (1,383) Closing cost at 415,350 179,461 47,500 53,578 35,576 31 December 2023 Opening amortisation and impairment at 1 January 2023 0 0 0 49,788 0 Amortisation for the period 0 750 2,375 967 0 Impairment for the period 3,352 0 0 0 1,911 Closing amortisation and impairment at 3,352 750 2,375 50,755 1,911 31 December 2023 Closing carrying amount at 411,998 178,711 45,125 2,823 33,665 31 December 2023 Impairment testing of goodwill and brand At the end of 2024, recognised goodwill amounted to DKK 412.0 million (2023: DKK 412.0 million) and recognised brand value amounted to DKK 172.2 million (2023: DKK 178.7 million). Goodwill is allocated to a cash-generating unit (CGU) when the unit is acquired. TCM Group currently has two CGUs: TCM Group from the acquisition of TCM Group in 2016 and AUBO from the acquisition of AUBO Production A/S in 2023. Both CGUs are part of the Group’s operating segment “Producing and selling kitchens, bathrooms and storage”. Acquired goodwill in 2023 related to the acquisition of AUBO Production A/S, DKK 42.2 million, and goodwill arising from the acquisition of Svane Alnabru AS, DKK 3.4 million. The historic ﬁnancial performance of Svane Alnabru AS meant the goodwill identiﬁed upon acquisition was fully impaired as of the acquisition date and was recognised as part of selling expenses in 2023. At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 65 Notes to the consolidated financial statements (continued) 13. Property, plant and equipment Property, plant Equipment, Land and equipment Machinery tools, and land under con- and other fixtures improve- struction and technical and DKK’000 Buildings ments prepayments equipment fittings Opening cost at 1 January 2024 129,382 14,248 6,130 88,847 14,945 Investments for the period 684 1,375 10,656 7,875 394 Transfer 0 0 (6,130) 6,130 0 Disposals for the period 0 0 0 (45) (124) Closing cost at 31 December 2024 130,066 15,623 10,656 102,807 15,215 Opening depreciation and impairment at 1 January 2024 14,705 0 0 34,863 7,807 Disposals for the period 0 0 0 (45) (124) Depreciation for the period 3,632 0 0 14,644 2,419 Closing depreciation and impairment at 31 December 2024 18,337 0 0 49,462 10,102 Closing carrying amount at 31 December 2024 111,729 15,623 10,656 53,345 5,113 Property, plant Equipment, Land and and equipment Machinery tools, land under con- and other fixtures improve- struction and DKK’000 Buildings ments prepayments equipment fittings Opening cost at 1 January 2023 94,483 12,405 1,119 65,608 11,837 Acquisition of entities 30,811 1,777 0 11,499 2,811 Investments for the period 4,088 66 6,130 10,621 716 Transfer 0 0 (1,119) 1,119 0 Disposals for the period 0 0 0 0 (419) Closing cost at 31 December 2023 129,382 14,248 6,130 88,847 14,945 Opening depreciation and impairment at 1 January 2023 11,762 0 0 23,066 6,130 Disposals for the period 0 0 0 0 (335) Depreciation for the period 2,943 0 11,797 2,012 Closing depreciation and impairment 14,705 0 0 34,863 7,807 at 31 December 2023 Closing carrying amount at 31 114,677 14,248 6,130 53,984 7,138 December 2023 No impairment was charged to property, plant and equipment in 2024 or 2023. 14. Leases Equipment, Right-of-use assets tools, Rental of fixtures and DKK’000 premises fittings Total Opening cost at 1 January 2024 50,272 9,584 59,856 Additions 2,048 2,807 4,855 Disposals for the period 0 (4,866) (4,866) Closing cost at 31 December 2024 52,320 7,525 59,845 Opening depreciation and impairment at 1 January 2024 12,756 5,642 18,398 Disposals for the period 0 (4,502) (4,502) Depreciation for the period 4,082 2,373 6,455 Closing depreciation and impairment at 31 December 2024 16,838 3,513 20,351 Closing carrying amount at 31 December 2024 35,482 4,012 39,494 Equipment, tools, Rental of fixtures and and technical DKK’000 premises fittings Total Opening cost at 1 January 2023 41,430 8,367 51,221 Acquisition of entities 8,198 185 8,383 Additions 644 2,751 3,395 Disposals for the period 0 (1,719) (1,719) Closing cost at 31 December 2023 50,272 9,584 61,280 Opening depreciation and impairment at 1 January 2023 9,429 5,199 16,052 Disposals for the period 0 (1,719) (1,719) Depreciation for the period 3,327 2,162 5,489 Closing depreciation and impairment at 31 December 2023 12,756 5,642 19,822 Closing carrying amount at 31 December 2023 37,516 3,942 41,458 At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 66 Notes to the consolidated financial statements (continued) 14. Leases (continued) Lease receivables Subleases are speciﬁed as follows: 2024 2023 Undiscounted Undiscounted DKK’000 Book value value Book value value Falling due for payment within 1 year 6,715 7,029 8,488 8,727 Falling due for payment within 1-2 years 5,146 5,321 5,205 5,289 Falling due for payment within 2-3 years 1,539 1,626 5,257 5,289 Falling due for payment within 3-4 years 901 923 376 378 Falling due for payment within 4-5 years 0 0 0 0 Falling due for payment after 5 years 0 0 0 0 Total 14,301 14,899 19,326 19,683 Subleases falling due for payment after more than 1 year are presented as ﬁnancial assets. Subleases falling due for payment within 1 year are presented as current receivables, but are not included in the calculation of net working capital. Lease liabilities DKK’000 2024 2023 Opening balance, 1 January 62,347 60,786 Non-cash change Acquisition of entities 0 8,383 New lease liabilities 4,855 3,393 Terminated leases (204) 0 Subleases settled directly by the franchisee (5,025) (5,380) (374) 6,396 Financing cash ﬂows Repayment of loans (5,980) (4,835) (5,980) (4,835) Closing balance, 31 December 55,993 62,347 In 2024, the total amount of cash ﬂows related to lease liabilities was DKK -8.4 million (2023: DKK -6.7 million), of which the interest payments related to the recognised lease liabilities were DKK 2.4 million (2023: DKK 1.9 million) and repayments DKK 6.0 million (2023: DKK 4.8 million). At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 67 Notes to the consolidated financial statements (continued) 14. Leases (continued) 15. Investments in associates DKK’000 2024 2023 Cost at start of year 61,270 61,178 Additions 567 153 Divestment 0 (61) Carrying amount at year-end 61,837 61,270 Value adjustments at start of year (13,276) (12,477) Impairment (567) (153) Dividend received (4,500) (2250) Share of proﬁt/(loss) 6,299 1,543 Divestment 0 61 Value adjustments at year-end (12,044) (13,276) Carrying amount at year-end 49,793 47,994 DKK’000 2024 2023 Maturity of contractual cash ﬂow 0-6 months 7,842 8,413 6-12 months 7,061 8,368 1-5 years 29,867 34,408 5 years or later 19,657 23,261 64,427 74,450 DKK’000 2024 2023 Amounts recognised in the income statement Cost of short-term leases 498 1,322 Variable leasing costs that are not included in leasing liabilities 161 138 659 1,460 The associate Celebert ApS sells kitchens, bathrooms and storage solutions online and has a balance sheet date of 31 December. At 31 December 2024, Celebert ApS posted a gross proﬁt of DKK 44 million and a net proﬁt of DKK 14 mil- lion. At 31 December 2024, assets in Celebert ApS amounted to DKK 41 million, of which DKK 16 million was current assets. At 31 December 2024, current liabilities amounted to DKK 7 million. At 31 December 2024, recognised goodwill related to associates amounted to DKK 45.7 million (2023: DKK 45.7 mil- lion). No impairment was charged to goodwill related to associates in 2024 or 2023. The associate Svane Alnabru AS operates the Svane Køkkenet Alnabru store in Oslo, Norway. At 31 December 2024, Svane Alnabru AS posted a gross proﬁt of DKK 4.7 million and a net loss of DKK 2 million. At 31 December 2024, assets in Svane Alnabru AS amounted to DKK 5.7 million, of which DKK 3.1 million was current assets. At 31 December 2024, current liabilities amounted to DKK 7.7 million. The ﬁnancial situation of Svane Alnabru at 31 December 2024 meant a committed but not yet exercised capital increase of DKK 0.6 million was fully impaired in 2024. TCM Group leases various assets such as production buildings, warehouses, oﬃce buildings, retail property buildings, company cars, etc. The portfolio of lease commitments for short-term leases at year-end is similar to the portfolio of short-term leases that have been expensed during the period. TCM Group has not entered into any signiﬁcant leases, not yet commenced, to which it is committed. At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 68 Notes to the consolidated financial statements (continued) 16. Other financial assets DKK’000 2024 2023 Other ﬁnancial assets Receivables falling due in 12 months or later 6,919 9,714 Deposits 1,337 1,310 Total 8,256 11,024 19. Share capital No. of No. of registered shares Nominal Share capital shares outstanding value At 1 January 2024 10,513,638 10,438,638 1,051,364 Performance shares 0 1,949 0 At 31 December 2024 10,513,638 10,440,587 1,051,364 At 1 January 2023 9,142,294 9,067,294 914,229 Rights issue 1,371,344 1,371,344 137,135 At 31 December 2023 10,513,638 10,438,638 1,051,364 The share capital amounted to nominal DKK 1,051,364. Each share has a nominal value of DKK 0.1. All of the registered shares are fully paid. All shares are ordinary shares of the same type. 17. Inventories DKK’000 2024 2023 Raw materials and consumables 51,617 51,830 Semi-ﬁnished products 32,052 35,508 Finished products 12,832 10,334 Total write-down of inventories (7,354) (5,135) 89,147 92,537 NominAl Treasury shares No. of shares value % of shares At 1 January 2024 75,000 7,500 0.7 Used to settle performance shares (1,949) (195) 0.0 At 31 December 2024 73,051 7,305 0.7 At 1 January 2023 75,000 7,500 0.8 At 31 December 2023 75,000 7,500 0.7 Cost of goods sold recognised as an expense during the period was DKK 948.4 million (2023: DKK 868.3 million) and write-downs of inventories recognised as an expense during the period totalled DKK 2.2 million (2023: DKK 2.6 million). 18. Prepaid expenses and accrued income DKK’000 2024 2023 Other prepaid expenses 1,676 1,180 Total 1,676 1,180 At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 69 Notes to the consolidated financial statements (continued) 20. Value adjustments of currency hedges Value Value adjustment adjustment of cash flow Total of cash flow Total DKK’000 hedges 2024 2024 hedges 2023 2023 Opening balance (916) (916) (916) (916) Adjustment, cash ﬂow hedges (36) (36) 0 0 Value adjustments of currency hedges before tax 1,347 1,347 (47) (47) Tax on value adjustments of currency 11 11 hedges (296) (296) Tax related to prior years 0 0 36 36 Closing balance 99 99 (916) (916) 21. Earnings per share Earnings per share before dilution Earnings per share before dilution are calculated by dividing proﬁt attributable to the shareholders by the weighted average number of outstanding ordinary shares during the period. 2024 2023 Proﬁt attributable to shareholders (DKK'000) 57,675 21,522 Weighted average number of outstanding ordinary shares before dilution 10,440,012 9,767,408 Earnings per share before dilution (DKK) 5.52 2.20 Earnings per share after dilution To calculate earnings per share after dilution, the weighted average number of outstanding ordinary shares was adjusted for the dilution eﬀect of all potential ordinary shares. These potential ordinary shares were attributable to the long-term incentive (LTI) programmes awarded to the Executive Management in 2022, 2023 and 2024, cf. note 5. If all the performance targets set for the ﬁrst plan, PSU 2022-2024, 2023-2025 and 2024-2026, are achieved in full, the aggregate allocated maximum number of share units and, accordingly, shares to be awarded will be 93,908 shares (gross earning). Hedging reserve The fair value adjustment of unrealised gains/losses on forward exchange contracts is adjusted in equity. The forward exchange contracts, which have been entered into with the company’s usual bank connection, cover periods of 0-12 months from the balance sheet date. 2024 2023 Weighted average number of outstanding ordinary shares 10,440,012 9,767,408 Management performance share scheme 35,319 14,578 Weighted average number of outstanding ordinary shares after dilution 10,475,331 9,781,986 Earnings per share after dilution 5.51 2.20 22. Dividend The Board of Directors will propose to the Annual General Meeting to distribute an ordinary dividend of DKK 3 per share. Excluding treasury shares this corresponds to DKK 31 million. At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 70 Notes to the consolidated financial statements (continued) 23. Deferred tax Deferred tax Deferred tax DKK’000 assets liabilities Net Opening balance, 1 January 2024 0 68,032 68,032 Adjustment related to prior years 0 (26) (26) Recognised in net proﬁt for the year 0 (1,377) (1,377) Closing balance, 31 December 2024 0 66,629 66,629 Opening balance, 1 January 2023 0 53,393 53,393 Acquisition of entities 0 16,366 16,366 Recognised in net proﬁt for the year 0 (1,727) (1,727) Closing balance, 31 December 2023 0 68,032 68,032 Change in deferred tax liabilities for the period: Deferred tax liabilities Temporary Temporary differences differences Temporary Temporary Temporary in in property, differences differences differences intangible plant and in in in mortgage DKK’000 assets equipment inventories receivables debt Total At 1 January 2024 50,635 18,335 504 (1,032) (410) 68,032 Adjustment related to prior years 0 0 0 0 (26) (26) Recognised in net proﬁt for the year (1,096) (346) 367 (443) 141 (1,377) At 31 December 2024 49,539 17,989 871 (1,475) (295) 66,629 At 1 January 2023 39,406 14,467 595 (666) (409) 53,393 Acquisition of entities 12,639 3,352 132 262 (19) 16,366 Recognised in net proﬁt for the year (1,410) 516 (223) (628) 18 (1,727) At 31 December 50,635 18,335 504 (1,032) (410) 68,032 2023 The corporation tax rate in Denmark for the year is 22.0%. There are no tax loss carryforwards. 24. Bank loans and mortgage loans DKK’000 2024 2023 Maturity structure Within 1 year 22,995 95,511 Between 1 and 5 years 199,078 156,442 Longer than 5 years 29,749 11,631 Total 251,822 263,584 Refer to note 3 for additional information regarding bank loans and mortgage loans. 25. Financial assets and liabilities 2024 Derivative Financial Financial hedging assets liabilities instruments measured at measured at Total measured at amortised amortised carrYing DKK’000 fair value cost cost amount Other long-term receivables 0 8,256 0 8,256 Trade receivables 0 57,914 0 57,914 Other receivables 127 26,245 0 26,372 Cash and cash equivalents 0 29,099 0 29,099 Total 127 121,514 0 121,641 Non-current interest-bearing liabilities 0 0 272,529 272,529 Current interest-bearing liabilities 0 0 35,285 35,285 Accounts payable 0 0 122,285 122,285 Other non-current liabilities 0 0 43,000 43,000 Other current liabilities 0 0 75,921 75,921 Total 0 0 549,020 549,020 At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 71 Notes to the consolidated financial statements (continued) 25. Financial assets and liabilities (continued) 26. Acquisition of ENTITIES (business combinations) 2024: Acquisition of entities There were no acquisitions in the year ending 31 December 2024. 2023: Acquisition of AUBO Production A/S On 3 July 2023, TCM Group acquired 100% of the share capital of AUBO Production A/S. The acquisition supports TCM Group’s strategy of strengthening TCM Group’s market position in the core markets and growing its presence in Norway. 2023 Derivative Financial Financial hedging assets liabilities instruments measured at measured at Total measured at amortised amortised carrying DKK’000 fair value cost cost amount Other long-term receivables 0 11,024 0 11,024 Trade receivables 0 79,285 0 79,285 Other receivables 0 23,065 0 23,065 Cash and cash equivalents 0 13,285 0 13,285 Total 0 126,659 0 126,659 Non-current interest-bearing liabilities 0 0 216,222 216,222 Current interest-bearing liabilities 0 0 109,709 109,709 Accounts payable 0 0 144,710 144,710 Other non-current liabilities 0 0 52,500 52,500 Other current liabilities 1,220 0 77,161 78,381 Total 1,220 0 600,302 601,522 DKK’000 Purchase consideration Cash paid 105,142 Ordinary shares issued 10,000 Vendor note 35,000 Contingent consideration 18,500 Purchase price 168,642 The fair value of the 149,925 shares issued as part of the consideration of DKK 10.0 million paid for AUBO Production A/S was DKK 66.7 per share, based on the share value calculated as the volume-weighted average closing price on Nasdaq Copenhagen between 19 and 23 June 2023, both days included. Contingent consideration of a potential amount of DKK 60 million is linked to the company’s performance going for- ward. The fair value of the contingent consideration at acquisition was estimated at DKK 18.5 million. At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 72 Notes to the consolidated financial statements (continued) 26. Acquisition of ENTITIES (business combinations) (continued) If the acquisition had occurred on 1 January 2023, consolidated pro-forma revenue and proﬁt for the period ended 31 December 2023 would have been approximately DKK 260 million and DKK 6 million respectively. These amounts have been calculated using the subsidiary’s results and adjusting them for: • diﬀerences in the accounting policies of the Group and the subsidiary, and • the additional depreciation and amortisation that would have been charged assuming the fair value adjustments to property, plant and equipment and intangible assets had applied from 1 January 2023, together with the consequential tax eﬀects. The fair value of trade receivables amounts to DKK 57.3 million. The gross contractual receivables amount to DKK 57.3 million, of which DKK 0.0 million is considered uncollectible. Acquired carrying DKK’000 Fair value amount Assets and liabilities included in the acquisition Cash and cash equivalents 4,351 4,351 Property, plant and equipment 55,370 46,987 Intangible assets 3,383 3,383 Intangible assets: customer contracts 47,500 0 Intangible assets: brand value 7,500 0 Financial assets 1,062 1,062 Inventories 34,865 34,265 Trade receivables and other receivables 65,164 65,164 Accounts payable and other operating liabilities (42,061) (42,061) Tax payable (9,101) (9,101) Debt to parent company (16,843) (16,843) Other interest-bearing liabilities (8,383) 0 Deferred taxes, net (16,367) (4,135) Net identiﬁable assets acquired 126,440 83,072 Goodwill 42,202 Net assets acquired 168,642 DKK’000 Purchase consideration - cash outflow Purchase consideration paid in cash 105,142 Cash and cash equivalents in acquired subsidiaries (4,351) Reduction in the Group’s cash and cash equivalents in conjunction with acquisition 100,791 Transaction costs for the acquisition amounted to DKK 2.8 million and are presented under non-recurring items. Of the transaction costs, DKK 2.8 million was recognised in Q2 2023. Goodwill is attributable to the workforce and the high proﬁtability of the acquired business. It will not be deductible for tax purposes. Revenue attributable to AUBO Production A/S since the date of acquisition amounted to DKK 117.0 million, and net proﬁt amounted to DKK 1.5 million. At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 73 Notes to the consolidated financial statements (continued) 27. Acquisition of entities (associates) 28. Changes in liabilities attributable to financing activities Mortgage Bank DKK’000 loans loans Total Opening balance, 1 January 2024 25,254 238,328 263,582 Non-cash change Amortisation of borrowing costs 88 530 618 Subtotal 88 530 618 Financing cash ﬂows Proceeds from loans 36,757 0 36,757 Repayment of loans (25,643) (20,000) (45,643) Changes in cash pool 0 (3,493) (3,493) Subtotal 11,114 (23,493) (12,379) Closing balance, 31 December 2024 36,456 215,365 251,821 Mortgage Bank DKK’000 loans loans Total Opening balance, 1 January 2023 27,825 200,329 228,154 Non-cash change Amortisation of borrowing costs 9 270 279 Subtotal 9 270 279 Financing cash ﬂows Proceeds from loans 0 149,625 149,625 Repayment of loans (2,580) 0 (2,580) Changes in cash pool 0 (111,896) (111,896) Subtotal (2,580) 37,729 35,149 Closing balance, 31 December 2023 25,254 238,328 263,582 2024: Acquisition of entities There were no acquisitions in the year ending 31 December 2024. 2023: Acquisition of Svane Alnabru AS On 3 July 2023, TCM Group acquired 100% of the shares in Svane Alnabru AS. The company operates the strategically important Svane Køkkenet Alnabru store in Oslo, Norway. The purchase price amounted to DKK 0.2 million. Goodwill of DKK 3.4 million identiﬁed upon acquisition was fully impaired as of the acquisition date because of the company’s historical ﬁnancial performance. On 1 September 2023, TCM Group sold 40% of the shares in Svane Alnabru AS for an amount of DKK 0.9 million. At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 74 Notes to the consolidated financial statements (continued) 29. Pledged assets, contingent liabilities and commitments 31. Events after the balance sheet date No subsequent events have occurred that materially aﬀect TCM Group’s ﬁnancial position. In respect of its commitment to Nykredit Bank, the Group has issued a pledge ban on the Group’s assets. In respect of its ﬁnancing agreements with Nykredit Bank, the Group has provided a pledge over company assets of DKK 100 million (2023: 75 million) with charges over goodwill, property, plant and equipment (excluding land and buildings), inventories and trade receivables. The carrying amount of the pledged assets at 31 December 2024 was DKK 273.6 million (2023: DKK 304.3 million). As collateral for debt to the mortgage lender, DKK 36.5 million (2023: DKK 25.3 million), pledges have been provided over land and buildings with a carrying amount at 31 December 2024 of DKK 79.8 million (2023: DKK 81.5 million). Guarantees related to AB92 - provision of work and supplies within building and engineering – amounted to DKK 0.3 million (2023: DKK 1.0 million). The Group has contingent liabilities pertaining to subcontractor guarantees that arise in normal commercial opera- tions. No signiﬁcant liabilities are expected to arise as a result of these contingent liabilities. Other bank guarantees amounted to DKK 0.3 million (2023: DKK 0.3 million). The Group has given a guarantee of maximum 12 months’ rent to a third party, corresponding to DKK 2.2 million (2023: DKK 2.2 million). As of the balance sheet date the Group has entered into non-cancellable agreements related to the future purchase of goods and services amounting to DKK 93 million. 32. Companies in TCM Group Business registration Share of no. Domicile equity Parent company TCM Group A/S 37291269 Holstebro Subsidiaries TCM Operations A/S 75924712 Holstebro 100% AUBO Production A/S 28854846 Aulum 100% Associates Celebert ApS 27428959 Aalborg 45% Svane Alnabru AS 916636849 Oslo, Norway 60%* * Due to speciﬁc conditions in the agreement with the non-controlling shareholder, Svane Alnabru AS is considered an associate despite TCM Group A/S owning 60% of the company’s shares. 30. Related party transactions Related parties with a controlling interest As at 31 December 2024, there were no related parties with a controlling interest in the company. Transactions between related parties During the ﬁnancial period, the Group had the following transactions with related parties: See note 5 for information on remuneration of the Executive Management and the Board of Directors. The Group has had transactions with the associate Celebert ApS. Transactions related to sales amounted to DKK 45.6 million (2023: DKK 27.3 million) and transactions related to administration fees amounted to DKK 0.2 million (2023: DKK 0.2 million). The Group has had transactions with the associate Svane Alnabru AS. Transactions related to sales amounted to DKK 4.4 million (2023: DKK 2.2 million) and transactions related to property leases amounted to DKK 1.7 million (2023: DKK 0.7 million). There were no other transactions with related parties. At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 75 Definitions Key figures Key ﬁgures and ﬁnancial ratios have been deﬁned and calculated as stated below: The following key ﬁgures are not directly derived from the income statement or balance sheet and as such are deﬁned as follows: Adjusted EBITDA: Operating proﬁt before non-recurring items (Adjusted EBIT) plus depreciation and amortisation Adjusted EBIT: Operating proﬁt before non-recurring items Net interest-bearing debt: Current and non-current interest-bearing loans and borrowings less interest-bearing receivables and cash and cash equivalents Net working capital: The sum of inventories, trade receivables, other receivables (excluding subleases) and prepayments less the sum of prepayments from customers, trade payables and other liabilities Ratios Ratio Calculation formula Gross margin Gross proﬁt * 100 Revenue Adjusted EBITDA margin Adjusted EBITDA * 100 Revenue Adjusted EBIT margin Adjusted EBIT * 100 Revenue EBIT margin EBIT * 100 Revenue Solvency ratio Equity * 100 Balance sheet total Leverage ratio Net interest-bearing debt excluding tax liabilities 12 months’ adjusted EBITDA NWC ratio Net working capital1 * 100 12 months’ revenue CapEx ratio excl. acquisitions CapEx ratio excluding acquisitions is calculated as investments in property, plant and equipment (CapEx) divided by revenue. CapEx excludes investments in connection with acquisitions. Cash conversion ratio The cash conversion ratio is calculated as adjusted EBITDA less the change in net working capital1 and CapEx excluding acquisitions divided by adjusted EBITDA. The ratio is for the last 12 months. The deﬁnition and calculation formula for earnings per share before and after dilution can be found in note 21 to the consolidated ﬁnancial statements. 1 Net working capital is adjusted to reﬂect assets and liabilities held for sale. At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 76 parent company Financial statements Statement of comprehensive income...........................................77 Balance sheet as at 31 December ...................................................77 Statement of changes in shareholders’ equity ...................78 Cash flow statement ............................................................................79 Notes to the parent company financial statements .........79 At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 77 Statement of comprehensive income Balance sheet as AT 31 December DKK’000 Note 2024 2023 DKK’000 Assets Note 2024 2023 Revenue 8,880 8,880 (13,800) 9,500 4,580 0 10,575 10,575 (14,407) 1,000 Gross proﬁt Non-current assets Administrative expenses Other operating income Operating proﬁt/(loss) before non-recurring items Non-recurring items 2, 3 Investments in subsidiaries Financial non-current assets Total non-current assets 7 665,399 665,399 665,399 665,399 665,399 665,399 (2,832) (2,800) (5,632) 4 Operating proﬁt/(loss) 4,580 Current assets Receivables from subsidiaries 135,304 0 159,823 138 Dividends from subsidiaries Financial income 6,500 10,675 50,000 9,200 Other receivables 5 Deferred tax assets 432 185 Financial expenses Proﬁt before tax 5 (20,032) 1,723 (16,554) 37,014 Prepaid expenses and accrued income Total current assets 451 13 160,159 136,187 Tax for the year 6 3,142 2,448 Cash and cash equivalents Total current assets Total assets 0 136,187 801,586 0 160,159 825,558 Net proﬁt for the year 4,865 39,463 Other comprehensive income Items that may be reclassiﬁed subsequently to the income statement Value adjustments of cash ﬂow hedges before tax Tax on value adjustments of cash ﬂow hedges Other comprehensive income for the year Total comprehensive income 0 0 0 0 0 0 4,865 39,463 At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 78 Balance sheet as AT 31 December (continued) STATEMENT OF Changes in shareholders’ equity Share capital Treasury shares Retained Proposed DKK’000 earnings Dividend Total DKK’000 Note 2024 2023 Opening balance, 1 January 2024 Net proﬁt for the year 1,051 (12,087) 541,991 (26,457) (26,457) (12.080) 1,105 0 530,955 4,865 4,865 0 Equity and liabilities 0 0 0 0 0 0 31,322 Share capital 1,051 (7) 1,051 (12,087) 541,991 0 Total comprehensive income for the year Transfer 0 31,322 Treasury shares Retained earnings Proposed dividend Total equity 12,080 0 0 0 504,559 31,322 536,925 Share-based incentive programme Transfer, exercised share-based payment 0 0 1,105 0 0 530,955 Closing balance, 31 December 2024 1,051 (7) 504,559 31,322 536,925 Bank loans 8 8 193,607 43,000 145,346 52,500 Opening balance, 1 January 2023 Net proﬁt for the year 914 0 (12,087) 415,164 39,463 39,463 471 0 0 0 0 0 0 403,991 39,463 39,463 471 Other payables 0 0 0 0 0 Total non-current liabilities 236,607 197,846 Total comprehensive income for the year Share-based incentive programme Rights issue 0 0 Current liabilities Bank loans 137 0 88,644 (1,751) 88,781 (1,751) 21,759 1,431 92,982 1,044 Cost related to rights issue Trade payables Closing balance, 31 December 2023 Current tax liabilities Other payables 1,408 104 1,051 (12,087) 541,991 0 530,955 3,456 2,627 Total current liabilities Total liabilities 28,054 264,661 96,757 294,603 Total equity and liabilities 801,586 825,558 At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 79 Cash flow statement Notes to the parent COMPANY financial statements 1. Significant accounting estimates and judgements DKK’000 NOTE 2024 2023 Determining the carrying amount of certain assets and liabilities requires an estimate of how future events will aﬀect the value of those assets and liabilities at the balance sheet date. Estimates that are signiﬁcant to the parent’s ﬁnancial reporting are made, for instance, regarding valuation of investments in subsidiaries, which constitute a major share of the parent’s total assets. Operating activities Operating proﬁt/(loss) 4,580 (8,395) (12,163) 40,582 1,216 (5,632) (527) Investments in subsidiaries are tested for impairment if events or other circumstances indicate that the carrying amount is not recoverable. Measuring investments in subsidiaries requires signiﬁcant estimates to be made based on various assumptions, including expected future cash ﬂows, discount rate and terminal value growth rates. The sensi- tivity to changes in the assumptions applied may be collectively and individually signiﬁcant. Other non-cash operating items Income tax paid (10,656) (37,171) 1.455 Change in operating receivables Change in operating liabilities Cash ﬂow from operating activities 25,820 (52,533) Investments in subsidiaries Dividend received 0 6,500 6,500 (105,143) 50,000 Cash ﬂow from investing activities (55,143) Interest paid (19,913) 10,675 (23,082) 0 (16,486) 9,200 Interest received Proceeds from and repayment of loans Rights issue, net proceeds Cash ﬂow from ﬁnancing activities 8 37,931 77,031 107,676 (32,320) Cash ﬂow for the year 0 0 Cash and cash equivalents at the beginning of the year Cash ﬂow for the year 0 0 0 0 0 0 Cash and cash equivalents at year-end At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 80 Notes to the parent COMPANY financial statements (continued) 2. STaff Costs 3. Audit fee DKK’000 2024 2023 In addition to the statutory audit, PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab, the auditors appointed at the Annual General Meeting, provides other assurance engagements and other services to the Group. Total costs for employee benefits Salaries and other remuneration Social security costs DKK’000 2024 2023 9,705 11 9,055 12 Specification by type of cost Statutory audit 492 0 788 36 Pension costs – deﬁned contribution plans Total employee costs 501 447 Other assurance engagements Tax and indirect tax advisory Other services 10,217 9,514 32 157 Other employee beneﬁts for the Executive Management, including company cars and telephones, are presented as 128 652 659 administrative expenses. 1,640 The fee for non-audit services delivered by PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab to the company amounted to DKK 0.1 million in 2024 and consisted of various accounting advisory services. In 2023, the fee for non-audit services delivered by PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab to the company amounted to DKK 0.9 million and consisted of various services, including due diligence in connection with the AUBO Production A/S acquisition. Remuneration and other benefits Variable re- Variable re- Base salary/ muneration, muneration, Directors' cash-based share-based Other Pension costs Number of 4. Non-recurring items DKK’000 2024 fees (STI) (LTI) benefits Total individuals DKK’000 2024 2023 Transaction costs related to business combinations 0 2,800 0 Board of Directors Restructuring 0 2,547 0 0 0 0 2,547 6 Total 0 2,800 Executive Management 4,602 1,901 1,105 612 501 8,721 2 The table below shows how the income statement (extract) would have been presented if no adjustment for non- recurring items had been made: Total 7,149 1,901 1,105 612 501 11,268 8 DKK’000 2024 2023 2023 Board of Directors Revenue 8,880 8,880 10,575 10,575 (17,207) 1,000 2,625 4,561 7,186 0 1,000 1,000 0 425 425 0 398 398 0 447 447 2,625 6,831 9,456 7 Gross proﬁt Executive Management 2 Administrative expenses Other operating income Operating proﬁt/(loss) (13,800) 9,500 Total 9 4,580 (5,632) Refer to note 5 to the consolidated ﬁnancial statements for a description of the short-term incentive (STI) and long- TCM Group presents non-recurring items separately to ensure comparability. Non-recurring items consist of income and expenses that are special and of a non-recurring nature. There were no non-recurring items in 2024. Non- recurring items in 2023 consisted of transaction costs related to business combinations. term incentive (LTI) programmes. At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 81 Notes to the parent COMPANY financial statements (continued) 5. Financial income and expenses 6. Corporation tax (continued) DKK’000 2024 2023 Reconciliation of the eﬀective tax rate for the year can be speciﬁed as follows: DKK’000 % 2024 % 2023 Financial income Interest income from subsidiaries Total 10,675 9,200 Tax rate 22.0 (204.3) 1.2 379 (3,520) 21 22.0 (30.3) 0.0 8,143 (11,220) 0 10,675 9,200 Non-taxable income Non-deductible expenses Other Financial expenses (1.3) (22) 1.7 629 Interest expense on liabilities measured at amortised cost 19,913 119 16,486 68 Eﬀective tax rate for the year (182.4) (3,142) (6.6) (2,448) Other ﬁnancial costs Total 20,032 16,554 Non-taxable income relates primarily to adjustment of the contingent payment obligation and to dividends from subsidiaries. 6. Corporation tax 7. Investments in subsidiaries Other comprehen- sive income Total comprehen- sive income DKK’000 2024 2023 Income DKK’000 statement Investments in subsidiaries Cost at start of year 665,399 0 496,756 168,643 665,399 665,399 Tax for the year can be speciﬁed as follows: Acquisition during the year Cost at end of year Current tax 2,895 247 0 0 0 2,895 247 665,399 665,399 Change in deferred tax during the year Carrying amount at end of year Total 3,142 3,142 Investments in subsidiaries comprise: TCM Operations A/S, 100% Tax for the previous year can be speciﬁed as follows: Current tax 2,329 119 0 0 0 2,329 119 AUBO Production A/S, 100% Change in deferred tax during the year See note 26 to the consolidated ﬁnancial statements for details of the acquisition of AUBO Production A/S in 2023. Total 2,448 2,448 See note 32 to the consolidated ﬁnancial statements for a list of all companies in TCM Group. The carrying amount of the parent’s investments in subsidiaries is tested for impairment if an indication of impairment exists. No indication of impairment has been identiﬁed. At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 82 Notes to the parent COMPANY financial statements (continued) 8. Changes in liabilities attributable to the financing activities 9. Guarantees, contingent liabilities and collateral DKK’000 Bank loans Total In respect of the Group’s commitment to Nykredit Bank, the company has issued a pledge ban on all assets. TCM Group A/S is the management company under the Danish joint taxation scheme. Under the Danish Corporation Tax Act regulations and with eﬀect from the 2016 ﬁnancial year, TCM Group A/S is therefore liable for any income taxes, etc. for the jointly taxed companies and for any obligations to withhold tax at source on interest, royalties and returns for the jointly taxed companies. Opening balance, 1 January 2024 Non-cash change 238,328 238,328 Amortisation of borrowing costs Subtotal 119 119 119 119 Financing cash ﬂows Repayment of loans Changes in cash pool Subtotal 10. Related parties (20,000) (3,082) (20,000) (3,082) For a speciﬁcation of related parties, refer to notes 30 and 32 to the consolidated ﬁnancial statements. (23,082) (23,082) See note 5 to the consolidated ﬁnancial statements for information on remuneration of the Executive Management and the Board of Directors. Closing balance, 31 December 2024 215,365 215,365 The management fees from subsidiaries in the ﬁnancial year amounted to DKK 8.9 million (2023: DKK 10.6 million). Intra-group transactions are carried out on arm’s length principles. Opening balance, 1 January 2023 Non-cash change 200,329 200,329 Aside from this, no transactions with the Executive Management, major shareholders or other related parties have taken place during the year. Amortisation of borrowing costs Subtotal 68 68 68 68 Financing cash ﬂows Proceeds from loans Changes in cash pool Subtotal 11. Events after the balance sheet date 149,625 (111,694) 37,931 149,625 (111,694) 37,931 No subsequent events have occurred that materially aﬀect TCM Group’s ﬁnancial position. Closing balance, 31 December 2023 238,328 238,328 At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 83 Notes to the parent COMPANY financial statements (continued) 12. Accounting policies 13. Financial risks These parent ﬁnancial statements have been prepared under the historical cost convention and presented in accordance with IFRS accounting standards as adopted by the EU and additional requirements of the Danish Financial Statements Act. Translation exposure The interest rates on the Nykredit facilities are currently variable. The company does not have any subsidiaries in foreign countries, hence there is no translation exposure. For the company’s ﬂoating-rate cash and cash equiva- lents and debt to banks, an increase in interest rate level of 1% p.a. relative to the actual interest rates would have had a negative impact on the proﬁt for the year and on equity at 31 December 2024 of DKK 2.5 million (2023: DKK 2.7 million). Credit risk The company does not have any external activities. No material credit risk has been identiﬁed. The company has receivables from its subsidiaries as a result of inter- company ﬁnancing. No signiﬁcant risk has been identi- ﬁed on these receivables. Description of accounting policies applied The accounting policies applied by the parent diﬀer from the accounting policies described for the consoli- dated ﬁnancial statements (see note 1 to the consoli- dated ﬁnancial statements) as follows: Assumptions for analysis of interest rate sensitivity The stated sensitivities are calculated on the basis of the ﬁnancial assets and liabilities recognised at 31 December 2024. No adjustments have been made for instalments, raising of loans, etc. during the course of the year. Financial exposure Dividend income The Group maintains three credit facilities with Nykredit Bank: Distribution of proﬁts accumulated by subsidiaries is taken to income in the parent’s income statement in the ﬁnancial year in which the dividend is received. If a divi- dend is distributed that exceeds the subsidiary’s com- prehensive income for the year, an impairment test is performed. 1) DKK 220 million committed facility: This facility is set to expire in March 2026 and includes two 1-year exten- sion options available on similar terms. The computed expected ﬂuctuations are based on the current market situation and expectations for market developments in interest rates. 2) DKK 130 million committed facility: Established in 2023 to support the acquisition of AUBO Production A/S, this facility also expires in 2026 and oﬀers two 1-year extension options on similar terms. Investments in subsidiaries Capital management Investments in subsidiaries are measured at cost in the parent ﬁnancial statements. If an indication of impair- ment exists, an impairment test is performed as described in the accounting policies for the consolidated ﬁnancial statements. If the carrying amount exceeds the recoverable amount, investments are written down to such lower amount. The Board of Directors has adopted a dividend policy with a target payout ratio of 40-60% of consolidated net proﬁt for the year. 3) DKK 50 million uncommitted facility: This 1-year facility will expire in March 2025. The Board of Directors will propose to the Annual Gen- eral Meeting to distribute an ordinary dividend of DKK 3 per share. Excluding treasury shares this corresponds to DKK 31 million. The facility agreements with Nykredit Bank contained a leverage covenant of 4.5 until 31 December 2024 and 4.0 for the remaining ﬁnancing period. No covenants have been breached during the period. Liquidity risks Liquidity is controlled centrally with the aim of using available liquidity eﬃciently, while keeping necessary reserves available. Available liquidity comprised DKK 204 million at 31 December 2024 (2023: DKK 234 million). Interest rate risk It is Group policy to fully or partially hedge interest rate risks on loans when it is assessed that the debt is mate- rial. The Group manages interest rate risk by maintain- ing an appropriate mix of ﬁxed- and ﬂoating-rate borrowings, and using interest rate swaps. At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 84 Statements Management Statement on the annual report.......................85 Independent auditor’s reports.......................................................85 TREND VARM GRÅ WOOD DESIGN At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 85 Management Statement on the annual report Independent auditor's reports The Board of Directors and the Executive Management have today considered and adopted the Annual Report for the ﬁnancial year 1 January 2024 – 31 December 2024. The Consolidated Financial Statements and the Parent Company Financial Statements have been prepared in accordance with IFRS Accounting Standards as adopted by the EU and fur- ther requirements in the Danish Financial Statements Act. To the shareholders of TCM Group A/S Report on the audit of the Financial Statements In our opinion, the Consolidated Financial Statements and the Parent Company Financial Statements give a true and fair view of the Group’s and the Parent Company’s ﬁnancial position at 31 December 2024 as well as of the results of their operations and the cash ﬂows for the period 1 January 2024 – 31 December 2024. Our opinion In our opinion, the Consolidated Financial Statements and the Parent Company Financial Statements give a true and fair view of the Group’s and the Parent Company’s ﬁnancial position at 31 December 2024 and of the results of the Group’s and the Parent Company’s operations and cash ﬂows for the ﬁnancial year 1 January to 31 December 2024 in accordance with IFRS Accounting Standards as adopted by the EU and further requirements in the Danish Financial Statements Act. In our opinion, Management’s Review includes a true and fair account of the development in the operations and ﬁnan- cial circumstances of the Group and the Parent Company, of the results for the year, and of the ﬁnancial position of the Group and the Parent Company as well as a description of the most signiﬁcant risks and elements of uncertainty facing the Group and the Parent Company. Our opinion is consistent with our Auditor’s Long-form Report to the Audit Committee and the Board of Directors. In our opinion, the Annual Report of TCM Group A/S for the ﬁnancial year 1 January to 31 December 2024 with the ﬁle name tcm-group-2024-12-31-en.zip has been prepared, in all material respects, in compliance with the ESEF Regula- tion. We recommend that the Annual Report be adopted at the Annual General Meeting. What we have audited The Consolidated Financial Statements and Parent Company Financial Statements of TCM Group A/S for the ﬁnancial year 1 January to 31 December 2024 comprise income statement and statement of comprehensive income, balance Holstebro, 26 February 2025 sheet, statement of changes in equity, cash ﬂow statement and notes, including material accounting policy information for the Group as well as for the Parent Company. Collectively referred to as the “Financial Statements”. Basis for opinion Executive Management We conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional require- ments applicable in Denmark. Our responsibilities under those standards and requirements are further described in the Auditor’s responsibilities for the audit of the Financial Statements section of our report. Torben Paulin Thomas Hjannung Chief Executive Oﬃcer Chief Financial Oﬃcer We believe that the audit evidence we have obtained is suﬃcient and appropriate to provide a basis for our opinion. Independence We are independent of the Group in accordance with the International Ethics Standards Board for Accountants’ Inter- national Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark. We have also fulﬁlled our other ethical responsibilities in accordance with these requirements and the IESBA Code. Board of Directors Anders Tormod Skole-Sørensen Søren Mygind Eskildsen Pernille Wendel Mehl To the best of our knowledge and belief, prohibited non-audit services referred to in Article 5(1) of Regulation (EU) No 537/2014 were not provided. Chair Deputy Chair Appointment We were ﬁrst appointed auditors of TCM Group A/S on 5 April 2022 for the ﬁnancial year 2022. We have been reap- pointed annually by shareholder resolution for a total period of uninterrupted engagement of 3 years including the ﬁnancial year 2024. Jan Amtoft Erika Hummel Björn Johan Olsson Lissner At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 86 Independent auditor’s reports (continued) Key audit matters Based on the work we have performed, in our view, the Management Review is in accordance with the Consolidated Financial Statements and the Parent Company Financial Statements and has been prepared in accordance with the requirements of the Danish Financial Statements Act. We did not identify any material misstatement in the Management Review. Key audit matters are those matters that, in our professional judgement, were of most signiﬁcance in our audit of the Financial Statements for 2024. These matters were addressed in the context of our audit of the Financial Statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Management’s responsibilities for the Financial Statements Key audit matter How our audit addressed the key audit matter Management is responsible for the preparation of consolidated ﬁnancial statements and parent company ﬁnancial Impairment test of goodwill and brand statements that give a true and fair view in accordance with IFRS Accounting Standards as adopted by the EU and fur- ther requirements in the Danish Financial Statements Act, and for such internal control as Management determines is necessary to enable the preparation of ﬁnancial statements that are free from material misstatement, whether due to fraud or error. We considered the appropriateness of the accounting policies for assessing the recoverability of the carrying amount of goodwill and brand. At 31 December 2024 the Group’s intangible assets amount to DKK 692,103 thousand primarily related to goodwill of DKK 411,998 thousand and brand of DKK 177,211 thousand. Our audit procedures included assessment of the applied impairment model with focus on signiﬁcant assumptions in determination of future cash ﬂows, including growth rates for revenue, proﬁt margins and investments in the budget and forecast periods, as well as royalty rate and discount rate used. In preparing the Financial Statements, Management is responsible for assessing the Group’s and the Parent Compa- ny’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless Management either intends to liquidate the Group or the Parent Company or to cease operations, or has no realistic alternative but to do so. Impairment tests related to goodwill and brand include signiﬁcant judgement and estimation by Management, including determination of future growth rates for revenue, proﬁt margins and investments in the budget and forecast periods, as well as royalty rate and discount rate. We assessed sensitivity analysis performed by Management to evaluate the impact of reasonable changes in key assumptions. Auditor’s responsibilities for the audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Rea- sonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to inﬂuence the economic decisions of users taken on the basis of these Financial Statements. We focused on impairment tests related to goodwill and brand as impairment tests are complex and associated with subjectivity in the determination of signiﬁcant assumptions and data used. Further, we evaluated the accuracy in Management’s estimates by comparing the budget for 2024 with actual ﬁgures. We also assessed the appropriateness of the disclosures related to impairment tests. We refer to note 12 in the consolidated ﬁnancial statements. As part of an audit in accordance with ISAs and the additional requirements applicable in Denmark, we exercise pro- fessional judgement and maintain professional scepticism throughout the audit. We also: Statement on the Management Review • Identify and assess the risks of material misstatement of the Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is suﬃcient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Management is responsible for the Management Review. Our opinion on the Financial Statements does not cover the Management Review, and we do not express any form of assurance conclusion thereon. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the eﬀectiveness of the Group’s and the Parent Company’s internal control. In connection with our audit of the Financial Statements, our responsibility is to read the Management Review and, in doing so, consider whether the Management Review is materially inconsistent with the Financial Statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. • • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management. Moreover, we considered whether the Management Review includes the disclosures required by the Danish Financial Statements Act. Conclude on the appropriateness of Management’s use of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast signiﬁcant doubt on the Group’s and the Parent Company’s ability to continue as a going concern. If we conclude At A Glance Our business Performance Highlights ESG governance Financial statements Statements TCM Group Annual report 2024 87 Independent auditor’s reports (continued) Management is responsible for preparing an annual report that complies with the ESEF Regulation. This responsibility includes: that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our • • The preparing of the annual report in XHTML format; The selection and application of appropriate iXBRL tags, including extensions to the ESEF taxonomy and the anchoring thereof to elements in the taxonomy, for all ﬁnancial information required to be tagged using judgement where necessary; conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group or the Parent Company to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the Financial Statements, including the disclosures, and whether the Financial Statements represent the underlying transactions and events in a manner that gives a true and fair view. • • • • Ensuring consistency between iXBRL tagged data and the Consolidated Financial Statements presented in human- readable format; and For such internal control as Management determines necessary to enable the preparation of an annual report that is compliant with the ESEF Regulation. Plan and perform the group audit to obtain suﬃcient appropriate audit evidence regarding the ﬁnancial information of the entities or business units within the group as a basis for forming an opinion on the Consolidated Financial Statements. We are responsible for the direction, supervision and review of the audit work performed for purposes of the group audit. We remain solely responsible for our audit opinion. Our responsibility is to obtain reasonable assurance on whether the annual report is prepared, in all material respects, in compliance with the ESEF Regulation based on the evidence we have obtained, and to issue a report that includes our opinion. The nature, timing and extent of procedures selected depend on the auditor’s judgement, including the assessment of the risks of material departures from the requirements set out in the ESEF Regulation, whether due to fraud or error. The procedures include: We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and signiﬁcant audit ﬁndings, including any signiﬁcant deﬁciencies in internal control that we identify during our audit. We also provide those charged with governance with a statement that we have complied with relevant ethical require- ments regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence and, where applicable, actions taken to eliminate threats or safeguards applied. • • Testing whether the annual report is prepared in XHTML format; Obtaining an understanding of the company’s iXBRL tagging process and of internal control over the tagging process; • • Evaluating the completeness of the iXBRL tagging of the Consolidated Financial Statements including notes; Evaluating the appropriateness of the company’s use of iXBRL elements selected from the ESEF taxonomy and the creation of extension elements where no suitable element in the ESEF taxonomy has been identiﬁed; Evaluating the use of anchoring of extension elements to elements in the ESEF taxonomy; and Reconciling the iXBRL tagged data with the audited Consolidated Financial Statements. From the matters communicated with those charged with governance, we determine those matters that were of most signiﬁcance in the audit of the Financial Statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter. • • Report on compliance with the ESEF Regulation In our opinion, the annual report of TCM Group A/S for the ﬁnancial year 1 January to 31 December 2024 with the ﬁle name As part of our audit of the Financial Statements we performed procedures to express an opinion on whether the annual report of TCM Group A/S for the ﬁnancial year 1 January to 31 December 2024 with the ﬁlename tcm-group-2024-12- 31-en.zip is prepared, in all material respects, in compliance with the Commission Delegated Regulation (EU) 2019/815 on the European Single Electronic Format (ESEF Regulation) which includes requirements related to the preparation of the annual report in XHTML format and iXBRL tagging of the Consolidated Financial Statements including notes. tcm-group-2024-12-31-en.zip is prepared, in all material respects, in compliance with the ESEF Regulation. Aarhus, 26 February 2025 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab CVR no 33 77 12 31 Claus Lindholm Jacobsen State Authorised Public Accountant mne23328 Claus Lyngsø Sørensen State Authorised Public Accountant mne34539

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