Rias

2023 2024 ANNUAL RAPPORT 2023 2024 CONTENTS Management’s review 7 Introduction Financial highlights Ratios Presentation of the Board of Directors and the Executive Board Review Financial review Shareholder information and corporate governance Financial statements 2023/24 Statement of comprehensive income Balance sheet 22 43 Statement of changes in equity Cash ﬂow statement Notes to the Financial Statements Management’s statement RIAS A/S, part of thyssenkrupp Plastics International RIAS A/S, part of thyssenkrupp Plastics International thyssenkrupp Plastics International is comprised of nine companies spread across Europe with approximately 1,100 employees. thyssenkrupp Plastics is part of the larger thyssenkrupp group, which operates worldwide. The thyssenkrupp group has approximately 98,000 employees and a turnover of approxi- mately 35 billion euros THE YEAR IN BRIEF 2023/2024 The 2023/24 ﬁnancial year has marked a period of exceptional performance for RIAS, achieving results that surpass those of the previous year. In a time when markets in many regions, particularly Ger- many and Sweden, have seen downturns, RIAS has demonstrated resilience and strength, securing our place as a standout performer. I am deeply proud of our team, whose dedication and commitment have been instrumental in achieving these impressive results. renewed commitment. It is inspiring to see a work- force so deeply invested in giving their best each day, fostering a spirit of unity and drive that spreads through all areas of RIAS. As we look ahead, we are optimistic and determi- ned to build on this strong foundation, maintaining our focus on delivering value-driven solutions and sustainable growth. Our commitment to our stake- holders remains as strong as ever, and I am excited for the future we are shaping together. The past year has also brought new dynamics and opportunities as we continue to shape a positive company culture. The response to our leadership transition has been truly encouraging, with emplo- yees embracing change with enthusiasm and 4 RIAS Annual Report 2023/24 THE JOURNEY CONTINUES ”Strength Through Continuity: Organizational Development and Growth Initiatives This year also saw a signiﬁcant organizational development with the appointment of a new Sales Manager for Sweden, further strengthening our team’s ability to tackle the challenges ahead with conﬁdence. We plan to build further momentum by expanding our e-commerce department, enhancing our ability to reach new customers through digital channels. Additionally, we aim to grow our RIPRO division with an increased focus on digitalization and simpliﬁcation, enabling us to serve our clients more eﬀectively in a fast-evolving market. Building Momentum for the Future” The ﬁnancial year 2023/2024 has been another outstanding year for RIAS. Building on the strengths we demonstrated in the previous year, we have continued to navigate the complexities of a dynamic and uncertain market. Despite the rising econo- mic pressures, both from the industrial downturn and the head- winds caused by higher interest rates, particularly impacting our Swedish operations, RIAS has once again proven its resilience. Our continued success is a testament not only to the strength of the RIAS brand but, more importantly, to the dedication of our employees. It is their relentless eﬀorts that enable us to meet and exceed the expectations of our customers on a daily basis. Together with my talented colleagues, I look forward to driving RIAS forward in 2025, ensuring we remain competitive and con- tinue creating value for our customers amidst a shifting busi- ness landscape. This year, we exceeded key ﬁnancial targets, underscoring the strength of our business model and the quality of our execution. Despite external challenges, our processing division has delive- red its strongest result to date, and our building division conti- nues to perform well, even in the face of heightened demands from larger customers. This success wouldn’t be possible without the commitment and expertise of every team member across all departments. The competitive landscape has grown more intense this year, with increased pricing pressure in raw materials and tough competition for orders. Yet, by staying agile and maintaining strong relationships with our customers, we’ve been able to pre- serve our market position. Our proactive communication with clients, explaining the challenges we’ve encountered, has once again proven eﬀective in navigating this diﬃcult environment. Karsten Due Managing Director RIAS A/S Sustainability Looking ahead, we remain resolute in our commitment to sus- tainability. During this past year, we further expanded our solar panel installation at Roskilde, increasing our energy indepen- dence and continuing our transition towards climate neutrality by 2030. Our investments in digitalization have also continued at pace, allowing us to streamline operations and enhance our customer engagement. This focus on eﬃciency, combined with our ambition to recycle more plastics, continues to guide our green initiatives. RIAS Annual Report 2023/24 5 6 RIAS Annual Report 2023/24 MANAGEMENT’S REVIEW Revenue, DKKm EBIT before special items, DKKm Cash Flow from operating activities, DKKm 319 18,5 15,8 2022/2023: 313 mio 2022/2023: 16.9 mio 2022/2023: 26,9 mio Proposed dividend, DKK/share Gross margin, % EBIT-margin before special items, % 37 33% 6% 2022/2023: 37 DKK 2022/2023: 33% 2022/2023: 5% RIAS Annual Report 2023/24 7 MANAGEMENT’S REVIEW FINANCIAL HIGHLIGHTS 2023/24 2022/23 2021/22 2020/21 2019/20 Income statement (DKK million) Revenue Production Costs Gross proﬁt Capacity costs* 319.1 214,3 104,8 86,3 18,5 0,7 313,1 209,6 103,5 86,6 16,9 0 338,7 230,0 108,7 87,1 21,6 0 308,4 204,8 103,6 85,5 18,1 1,5 294,3 200,4 93,9 80,5 13,4 1,8 Proﬁt before special items Special items Proﬁt before ﬁnancial income and expenses (EBIT) Net ﬁnancials Proﬁt before tax 17,8 0,1 17,9 4,3 16,9 -0,9 16,0 3,5 21,6 -0,2 21,4 4,4 16,6 -0,6 16,0 3,4 11,6 -0,5 11,1 2,5 Corporation tax Net proﬁt for the year 13,6 12,5 17,0 12,6 8.6 Balance sheet at 30 September (DKK million) Non-current assets Current assets Assets Equity 115,9 144,8 260,7 192,2 9,9 120,5 131,9 252,4 187,2 9,8 122,8 131,4 254,2 186,2 9,5 124,2 120,9 245,1 177,3 9,5 125,3 123,2 248,5 170,5 9,5 Deferred tax Long term Leasing liabilities Short-term liabilities Liabilities and equity 1,2 57,4 260,7 4,2 51,2 252,4 7,4 51,1 254,2 7,1 51,2 245,1 7,4 61,1 248,5 Cash ﬂows (DKK million) Cash ﬂows from operating activities Cash ﬂows from investing activities Including investments in property, plant and equipment Cash ﬂows from ﬁnancing activities Total cash ﬂows 15,8 -2,3 -2,3 -13,4 0,1 26,9 -4,9 -4,9 -16,1 5,9 22,5 -2,0 -2,0 -12,9 7,9 7,6 -4,7 -4,7 -10,8 -7,9 106 29,9 -17,2 -17,2 -10,5 2,1 Average number of full-time employees 104 104 104 107 * Capacity costs include distribution and administrative expenses. Revenue (DKK million) Proﬁt before tax (DKK million) 22 20 18 16 14 350 330 310 290 12 10 270 250 8 230 210 190 170 150 6 4 2 0 23/24 22/23 21/22 20/21 19/20 23/24 22/23 21/22 20/21 19/20 8 RIAS Annual Report 2023/24 MANAGEMENT’S REVIEW RATIOS 2023/24 2022/23 2021/22 2020/21 2019/20 Key ﬁgures and ratios Gross margin Proﬁt margin before special items Proﬁt margin 33% 6% 6% 8% 58.9 37 833 9% 7% 74% 665 33% 5% 5% 8% 54.2 37 812 9% 7% 74% 670 32% 6% 6% 10% 73.5 50 808 12% 9% 34% 6% 5% 7% 55 32% 5% 4% 6% 37 Return on assets Proﬁt per DKK 100 share Dividend per DKK 100 share Equity value per DKK 100 share Return on equity before tax Return on equity after tax Solvency ratio 35 25 769 9% 7% 72% 645 740 7% 5% 69% 450 73% 570 Market price per DKK 100 share at 30 September The ratios have been calculated in accordance with the deﬁnitions below. Proﬁt per share which has been calculated in accordance with IAS 33. Dividend per DKK 100 share is calculated as dividend divided by 1/100 of the share capital after deduction of the Company’s holding of treasury shares at 30 September. Deﬁnition of ﬁnancial ratios Gross margin is calculated as gross proﬁt in percentage of revenue. Equity value per DKK 100 share is calculated as equity at 30 September divided by 1/100 of the share capital after deduction of the Company’s holding of treasury shares at 30 September. Proﬁt margin before special items is calculated as proﬁt before special items in percentage of revenue. Return on equity before tax is calculated as proﬁt before tax in percentage of average equity for the year. Proﬁt margin is calculated as proﬁt before ﬁnancials in percent- age of revenue. Return on equity after tax is calculated as net proﬁt for the year in percentage of average equity for the year. Return on assets is calculated as proﬁt before ﬁnancials in percentage of average operating assets for the year, ie of total assets less cash at bank and in hand and ﬁxed asset investments. The solvency ratio it calculated as equity at 30 September in percentage of total assets at 30 September. Proﬁt per DKK 100 share is calculated as proﬁt for the year divid- ed by 1/100 of the share capital after deduction of the Company’s holding of treasury shares at 30 September. 840 Equity value per DKK 100 share (DKK) 820 800 780 760 740 720 700 680 660 20/21 23/24 22/23 21/22 18/20 RIAS Annual Report 2023/24 9 MANAGEMENT’S REVIEW BOARD OF DIRECTORS NICOLAS NEUWIRTH Member of the board of Directors MARTIN KOELINK Chairman PETER SØRENSEN Vice-chairman Joined Board in 2022 (1965 M) Non-independent Joined Board in 2024 (1965 M) Non-independent Joined Board in 2023 (1968 M) Non-independent CEO, thyssenkrupp Plastics GmbH, Essen Germany Directorships in other companies: CEO Operating Unit Plastics Europe, thys- senkrupp Materials Services GmbH Directorships in other companies: Partner, Lund Elmer Sandager, København Member of the board of Directors: A/S Rørkær, København (Chairman) Aktieselskabet P. Hatten & Co. (Chairman) CNH Industrial Danmark A/S (Chairman) Dansk Centralkontor for Sommerhus- Udlejning ApS (Chairman), DCSU A/S, Ejendomsselskabet Nørrebrogade 43 A/S (Chairman), CA Auto Finance Danmark A/S, HHM A/S (Chairman), HHM Holding A/S (Chairman), IC Nordics A/S (Chairman), Iveco Danmark A/S (Chairman), Iveco Sweden AB (Chairman), Iveco Norge AS (Chairman), Iveco Finland OY (Chairman), Intra A/S (Chairman), L. Hasselkjær Invest ApS (Chairman), M.S. HOLDING A/S, NORLIP A/S, SPPC A/S (Chairman), Rørkærfonden “Erhvervsdrivende” (Chairman) JUNE SVENDSEN JETTE DUUS Member of the Board of Directors Member of the Board of Directors Joined Board in 2014 Employee representative (1970 F) Joined Board in 2023 Employee Representative (1972 F) 10 RIAS Annual Report 2023/24 MANAGEMENT’S REVIEW EXECUTIVE BOARD KARSTEN DUE CEO DANNIE MICHAELSEN CFO Joined RIAS in 2022 (1969 M) Joined RIAS in 2015 (1972 M) MANAGEMENT ANDERS TOPP CSO LARS DANNER HANSEN Factory & Warehouse Manager NIKLAS THOMAS JENSEN Purchasing Manager Joined RIAS in 2008 (1969 M) Joined RIAS in 2007 (1976 M) Joined RIAS in 2017 (1989 M) MIKKEL KOEFOED Internal Executive Advisor JAN THOMAS NIELSEN Division Manager - RIPRO ROSELIL LANDINI EA/HR Joined RIAS in 2010 (1992 M) Joined RIAS in 2023 (1969 M) Joined RIAS in 2024 (1965 F) RIAS Annual Report 2023/24 11 MANAGEMENT’S REVIEW REVIEW MISSION RIAS A/S’s mission is to be the most attractive supplier of plastic materials in the Nordics. The company operates with two product areas: • Sale, processing and distribution of semi- ﬁnished plastic products to all branches of the building and construction sector. • Sale, processing and distribution of semi- ﬁnished plastic products to industry and the public sector. Long-term objective LONG-TERM FINANCIAL TARGET 2026/27 RIAS A/S’ long-term objective is to increase its market value through organic growth and the expansion of existing business areas and to provide shareholders with a competitive return on their invested capital. Revenue growth EBIT margin A review of the EBIT expectations for 2023/24, published in the 2022/23 Annual report shows that the company is within the range of the stated expectations for the result which was an EBIT of DKK 16 – 18 million. This was achieved despite a very competitive market and a ﬁnancial year with increasing prices for some materials, freight and energy. 6,1% 5,9% 2023/24: 319 mio 2023/24: 5,6 % The expectations for turnover in 2023/24 published in the an- nual report of 2022/23 was in the range of DKK 310 – 330 Mio. The actual turnover in 2023/24 reached DKK 319 Mio. which is within the range published in 2022/23. Expectations for 2024/25 and forward In the 2024/25 ﬁnancial year, we will continue to focus our eﬀorts on optimizing the organization and increasing the growth in market share. During 2023/24 we have seen an unstable and volatile macro- environment aﬀecting the global economy, with inﬂationary eﬀects on raw materials, energy prices and logistics costs. The Board of Directors expects that this will continue in 2024/25 and on that basis, the Board of Directors expects turnover in the range of DKK 310 – 330 Mio. an EBIT result for the 2024/25 ﬁnancial year in the range of DKK 16 - 18 million. In the years to come the Board of Directors expects the revenue to grow with 15.3% from 2024/25 to 2026/27 due to invest- ments in strategic areas with increasing EBIT as well. The as- sumptions for future growth is also mentioned in the note rela- ted to impairment of goodwill on page 33 12 RIAS Annual Report 2023/24 MANAGEMENT’S REVIEW RISKS Particular risks Financial risks & Operational risks ! There is no speculation in ﬁnancial risks, and the company’s management is only dealing with the management of the ﬁnancial risks that are a direct consequence of RIAS A/S’ operations and ﬁnancing. The company owns no derivatives. Unforeseen price ﬂuctuations and reduced business activities with major clients could have a negative impact on the company com- pared to the expectations for the result, but such risks are normal in a trading company. Supply chain disruptions due to the war in Ukraine, the Middle East or other major in- cidents could result in loss of revenue. The company try to mitigate this risk by dual sourcing on most materials. Currency risks Credit risks The company is only impacted by currency risks to a limited extent. Almost all business is conducted using DKK, SEK or EUR. As the currency risk for the DKK/EUR is considered very tight, the company does not hedge its net EUR debt. The company buys and sells in SEK, and these transactions are thus impacted by the DKK/SEK exchange rates. The management follows the SEK currency development very closely but assesses this risk to be minimal, as the number of transac- tions in SEK are not a major proportion and thus do not justify hedging of future purchases and sales in SEK. The company’s credit risks are associated with receivables from sales and services. It is the company’s policy to have credit insur- ance for receivables from sales and services to the greatest extent possible. Receivables from sales and services are assessed on an ongoing basis and write-downs are made when required. The company uses Danske Bank and has funds deposited in excess of the government deposit guarantee amount. ! Knowledge resources IT security risks The company possesses speciﬁc knowledge and competences in the selling of semi-ﬁn- ished plastic products and knowledge about processing such products. The company is focused on attracting, retaining and devel- oping well-trained and motivated employees who can help to ensure that the core value of providing customers with the best possible service is maintained. On average, the com- pany has employed 103 full-time employees in 2023/24, which is 1 less as in 2022/23. The company employs 105 full-time employ- ees as at 30 September 2024, which is 1 less as at 30 September 2023. Globally and across most industries, a signiﬁ- cant increase in cybercriminal activity, such as phishing campaigns and malicious websites, is taking place. Cyber threats like cybercrime and cyberattacks are real and could have a major business impact, including aﬀecting RIAS’s operations, delivery performance and competitive advantage. RIAS is continuously improving its measures to monitor and re- spond to potential breaches and cyberattacks. On a regular basis, we conduct both internal and external security assessments, including vulnerability assessments, penetration test- ing and threat hunting. Liquidity risks Interest rate risks The company only has debt that is due within one year, cf. the balance sheet. The payment of this debt, DKK 57 million, can be fully cov- ered by payments from receivables and bank deposits. The company does not have interest rate positions to hedge interest rate risks, as moderate changes to the interest rate envi- ronment will have no signiﬁcant impact on earnings. RIAS Annual Report 2023/24 13 MANAGEMENT’S REVIEW FINANCIAL REVIEW Income statement Revenue Tangible assets Revenue increased by DKKt 5,948 from DKKt 313,144 in 2022/23 to DKKt 319,092 in 2023/24. Tangible assets decreased from DKKt 58,693 as at 30 Septem- ber 2023 to DKKt 57,125 as at 30 September 2024. The company made investment during the year for automation and forklifts on Roskilde site. The revenue in the Industrial Division increased by DKKt 1,862 and the revenue in the Building & Construction Division in- creased by DKKt 4,086 in 2023/24. Leasing assets Contracts considered as leasing under IFRS 16 have been rec- ognised at a value as at 30 September 2024 of DKKt 5,771 which is DKKt 2,799 lower as at 30 September 2023 and is mainly due to rental agreement in Assentoft. Leasing mainly consist of the recognition of a rental contract. In the Industrial Division the increase in revenue is due to big- ger projects and therefore increasing tonnage sold. The devel- opment shows major diﬀerences in demand from diﬀerent in- dustries where especially the industry for visual communication has been decreasing. Sales in the processing area are in line with the established expectations. Low value and short-term contracts are not recognised here, but included as an operational cost. The sales of the company’s Building & Construction products have been better than expected due to an increased tonnage sold compared to 2022/23. Inventories Inventories increased by DKKt 799 from DKKt 28,388 as at 30 September 2023 to DKKt 29,187 as at 30 September 2024. The company is continually focused on adjusting its inventory so that it matches the current market. Gross result The gross proﬁt percentage has remained stable compared to 2022/23 despite increasing costs for freight which is partly due to a sale of products with higher gross margin. Receivables Receivables increased by DKKt 12,075 from DKKt 58,130 as at 30 September 2023 to DKKt 70,205 as at 30 September 2024. Receivables increased due to higher activity with the DIY chains compared to the same period last year. Distribution and administration costs (capacity costs) Costs have decreased by DKKt 365 from DKKt 86,590 in 2022/23 to DKKt 86,225 in 2023/24. Measured as a percentage of reve- nue, capacity costs were at 27% which is at the same level as last year. The reason why the cost level has remained stable is due to less headcounts, less costs for fuel and electricity and postponement of certain costs. The green transition has also contributed to the stable cost level due to more electrical cars and more production of solar energy with lower costs for fuel and electricity as a consequence. Liabilities Liabilities increased by DKKt 3,349 from DKKt 65,196 as at 30 September 2023 to DKKt 68,545 as at 30 September 2024 main- ly due to a higher level trade payables due to higher purchase at the end of 2023/24 compared to the year before. Cash ﬂow Operating activity Cash ﬂows from operating activities decreased by DKKt 11,138 from DKKt 26,972 in 2022/23 to DKKt 15,834 in 2023/24. The diﬀerence in cash ﬂow is mainly from changes in receivables. Special items In this ﬁnancial year the company has had costs due to restruc- turing the organization which the management designate as “special items”. Investment activity The company has invested in automation and forklifts in Roskil- de. Investments decreased by DKKt 2,878 compared to last year and cash ﬂows to investments increased by DKKt 2,878 com- pared to prior year. Tax on the year’s result The eﬀective tax percentage for 2023/23 amounts to 24.3% compared to 21.8% in 2022/23. Balance sheet Intangible assets Liquidity reserves Overall, the company’s liquidity reserves increased by DKKt 77 compared to prior year. Intangible assets decreased due to depreciation and no invest- ments. As at 30 September 2024, the amount was DKKt 53,085 compared to DKKt 53,197 as at 30 September 2023. The intan- gible asset is goodwill, amounting to DKKt 53,085 which can be attributed to the acquisition of the activities in Rodena A/S and Nordisk Plast A/S. The goodwill values have been subject to an impairment test, which is described in more details in note 11 of the accounts. As at 30 September 2024, software amounted to DKKt 0 com- pared to DKKt 86 as at 30 September 2023, as no new software investments have been made. 14 RIAS Annual Report 2023/24 MANAGEMENT’S REVIEW CORPORATE GOVERNANCE Statutory Statement on Corporate Governance under section 107b of the Danish Financial Statements Act. annual general meeting are independent as deﬁned in the rec- ommendations, as the board members are elected based on the company’s ownership structure. Company Management believes that corporate governance is a key element and currently seeks to improve the Company’s man- agement structure. The overall framework for the Management of RIAS A/S has been planned with a view to ensuring that the Company meets its obligations towards shareholders, customers, employees, authorities and other stakeholders in the best possi- ble way and that long-term value creation is supported. Executive Board The Executive Board is appointed by the Board of Directors, which speciﬁes the Executive Board’s terms of employment. The Exec- utive Board is responsible for the day-to-day operations of RIAS A/S, including RIAS A/S’ activity-related and operational develop- ment, its results and its internal aﬀairs. The Board of Directors’ delegation of responsibility to the Executive Board is speciﬁed in the company’s rules of procedure and the Danish Companies Act. RIAS A/S’ Executive Board consists of two persons. The Board of Directors of RIAS A/S currently works on ensuring that the Company complies with the policies and procedures laid down by the Committee of Corporate Governance which NAS- DAQ Copenhagen requires be applied. The Board of Directors discusses how the Company’s corporate governance in practice at any time ensures that the management of RIAS A/S meets the highest standard and that the work of the Board of Directors supports the Company’s future business potential. Remuneration for the Board of Directors and Executive Board The Board of Directors has adopted a very simple remuner- ation policy for both the Board of Directors and the Executive Board. The remuneration policy for the Board of Directors does not contain any incentive-based remuneration or other variable components. The Board of Directors for RIAS A/S is not covered by any bonus or option schemes. The total annual remunera- tion for the Board of Directors is approved by the annual general meeting in connection with the approval of the annual report. In 2023/24, the remuneration for the Executive Board consisted of a base salary plus usual fringe beneﬁts such as a car and phone plus an annual bonus, and this is described in the remuneration report. The Executive Board’s terms of employment, including remuneration and terms for dismissal/resignation are assessed as being in accordance with normal practices for positions of this nature. Openness is a key factor. Openness and Transparency The Board of Directors has chosen to publish the Statutory Statement on Corporate Governance under section 107b of the Danish Financial Statements Act on the Company’s website. Links to the account on good corporate governance and Link to recommendations for Good Corporate Governance:  https://www.riasnordic.com/investor-relations/2024 The Board of Directors overall approach towards NASDAQ Co- penhagen’s recommendations for good corporate governance are found on RIAS A/S’ website. This statutory account of cor- porate governance covers the accounting period from 1 October 2023 to 30 September 2024 and is part of the management’s report. The statutory account is not covered by the declaration from the independent auditor. Link to the remuneration policy and remuneration report:  https://www.rias.dk/Files/Filer/rias/investor-relations/Re- muneration-report-2024.pdf Audit committee The Board of Directors of RIAS A/S also serve as the audit com- mittee. RIAS A/S has in this connection chosen to compare the compa- ny’s account of good corporate governance with the Committee’s recommendations of December 2020. This creates the best pos- sible overview of which recommendations RIAS A/S has chosen to follow completely and which recommendations the company has chosen not to pursue or which are still being worked on. The audit committee’s overall objective is to minimize the risk of signiﬁcant errors in the ﬁnancial reporting - both internally and externally. In practice, this takes place by analyzing the in- ternal control environment, ﬁnancial reporting, accountancy, the applied accounting practices and the submission of interim and annual reports in general. Tasks and responsibilities of the Board of Directors The work done by the Board of Directors is speciﬁed in the rules of procedure which are evaluated at least once per year. RIAS A/S complies with the recommendation regarding members and the rules of procedure being adjusted to the company’s needs. The Board of Directors meets four times per year or more as needed. This process ensures that the management can re- act quickly and eﬀectively to external conditions. Five meetings were held in the 2023/24 ﬁnancial year, including the company’s ordinary annual general meeting in January 2024. The audit committee focuses on a continuing development of the control environment and a continual assessment of the busi- ness processes and ﬁnancial and accounting-related matters that have a signiﬁcant impact on the accounting information. The external auditor can also be summoned to the audit com- mittee’s meetings. Four meetings were held in 2023/24 and the external auditor participated in one without the presence of the management. Composition of the Board of Directors The Board of Directors consists of ﬁve members, of which two are elected by the company’s employees. The board members elected by the annual general meeting are elected for a one- year term at a time. The Board of Directors has evaluated the personal capacity of each individual board member and ﬁnds that they are managing their tasks in the board of RIAS A/S in a sound manner. None of the board members elected by the RIAS Annual Report 2023/24 15 MANAGEMENT’S REVIEW SHAREHOLDER INFORMATION Share capital Annual General Meeting The Company’s share capital of DKK 23,063k is distributed on DKK 3,125 k A-shares and DKK 19,938k B-shares. The Annual General Meeting will be held on 22 January 2025, at 13.00 pm CET, at the Company’s address, Industrivej 11, Roskilde, Denmark. The A-shares, which are non-negotiable, carry 10 votes per DKK 100 share, see clause 11 of the articles of association. Proposals for the General Meeting: • The Board of Directors proposes that for the ﬁnancial year 2023/24 dividend be distributed to the shareholders in the amount of DKK 37 per DKK 100 share of the share capital at 30 September 2024 of DKK 23,063,000, corresponding to a to tal proposed dividend of DKK 8,533,310. The B-shares, which are negotiable, carry 1 vote per DKK 100 share, see clause 11 of the articles of association. The B-shares are listed on NASDAQ Copenhagen, and at 30 Sep- tember 2023 the price corresponding to the market price of the B-shares was DKK 133.9 million. • The Board of Directors proposes to the General Meeting that the present elected board members are re-elected. The Company has more than 200 shareholders registered by name. • The Board of Directors proposes to the General Meeting that BDO Statsautoriseret Revisionsaktieselskab are re-elected as auditors. The following shareholders have stated that they own 5% or more of the total capital: thyssenkrupp Facilities Service GmbH, Germany, a nominal amount of DKK 3,125,000 A-shares and a nominal amount of DKK 9,363,000 B-shares, corresponding to 54.15% of the total capital. thyssenkrupp Facilities Service GmbH holds 79.34% of the votes. Expected Stock Exchange Announcements in 2024/25 RIAS A/S expects to publish the following Stock Exchange Announcements: • 11. dec. 2024: Announcement of ﬁnancial results 2023/24 • 22. jan. 2025: Announcement of interim results • 22. jan. 2025: Annual General Meeting • 14. maj 2025: Announcement of the half year report. • 20. aug. 2025: Announcement of interim results Expon Aps, a nominal amount of DKK 2,576,100 B-shares, corre- sponding to 11.17% of the total capital. Expon Aps holds 5.03% of the votes. The Board of Directors and the Executive Board do not hold any shares in the Company. Contact person – Investor relations Inquiries concerning investor relations and the share market may be directed at: ”Change of control” clauses The Company has an agreement with thyssenkrupp about the use of SAP. If the control of the Company changes due to an im- plemented takeover, the Company expects however to be able to reestablish an appropriate new agreement about the use of SAP in such a situation. Karsten Due, CEO Telephone: +45 46 77 00 00 E-mail: [email protected] In case of a takeover, the period of notice will be extended by six months to the Executive Board. Amendment of the articles of association An amendment of the Company’s articles of association re- quires that 2/3 of the share capital is represented at the General Meeting and that the proposed amendment is adopted by both 2/3 of the votes cast and of the share capital represented at the General Meeting. Company information RIAS A/S . Industrivej 11 . 4000 Roskilde Telephone: +45 46 77 00 00 Website: www.rias.dk Board of Directors Martin Koelink Executive Board (Chairman) (Vice-chairman) Karsten Due, CEO Email: [email protected] Peter Sørensen Dannie Michaelsen, CFO VAT no.: 44065118 Nicolas Neuwirth (Board member) Founded: 1 February 1959 Municipality of registered oﬃce: Roskilde Jette Duus (Employee Representative) (Employee Representative) Auditors June Svendsen BDO Statsautoriseret Revisionsaktieselskab 16 RIAS Annual Report 2023/24 MANAGEMENT’S REVIEW ESG FOR 2023 / 2024 Besides informing our stakeholders of our ESG work, this report also serves as our statutory CSR report pursuant to Sections 99(a) and 99(b) in the Danish Financial Statements Act. At RIAS, we have always strived to act responsibly and to create value in a decent and credible manner. It is deeply embedded in our DNA and it has been a fundamental factor in the company’s development- also long before governance, the UN’s Sustaina- ble Development Goals and the climate debate were put near the top of the agenda. See “Mission” page 12. Over the last many years, we have continually worked towards reducing our energy consumption, we have improved employ- ee working conditions and we have had a good and responsible management culture. Shared responsibility and initiatives in, among other things, climate and environmental impacts, em- ployee conditions and governance issues are continuing at full capacity, and this is an important part of the everyday lives of our managers and employees who are all assuming a great deal of responsibility. the purpose of creating real value for society as a whole via the company’s ESG work. ESG strategy in accordance with the UN SDGs The UN’s SDGs reﬂect a desire to create a better world. The 17 SDGs are the cornerstone of the UN’s “Agenda 2030” and specify the direction of the work. At RIAS, we make a commitment to behaving decently and cred- ibly. We believe that results are made through people who re- sponsibly contribute to ensuring our common future, and we have always prioritised doing things the right way. RIAS has a particular focus on the SDGs that are most relevant to our stakeholders and our business, as this is where we believe we can make the biggest diﬀerence. In order to meet the risks of this increased focus and the possibilities associated with sus- tainability, we have decided to launch sustainability targets that create a close connection between our company and the SDGs. At RIAS, we believe that a company’s activities have a critical impact on the development of a sustainable society. We aim to proactively improve the environmental, social and governance conditions, particularly in the areas that are naturally associated with our business. We have speciﬁed measurable and ambitious targets for SDG 7 concerning renewable energy and SDG 12 concerning consump- tion and production. These are described in the section about the environment and climate below. Our values, together with the UN’s Global Compact principles, form the basis for our approach to ESG and is a testimony to the fact that ESG has always been an integral part of RIAS for Risks Environment and climate - Risk: Our own processing and purchasing of raw materials from suppliers involves a risk of negative environmental impacts. Below is an overview of the most important risks and actions for each of the UN’s Global Compact principles and the speciﬁed policy areas. - Action: We are systematically working on reducing our environ mental impact from our warehouses and processing activities and we encourage our suppliers to do the same. We have intro- duced an ambitious target being climate neutral by 2030 and we are continually investing in initiatives to meet this target. Human rights - Risk: The company mainly relies on suppliers from within Europe, and the risk of failure to comply with human rights and labour rights is minimal. - Action: All suppliers are asked to ﬁll out a Supplier Code of Conduct that emphasises human rights and labour rights. Only the suppliers who fulﬁl the requirements of this code of conduct are used. Anti-corruption work - Risk: Legal violations relating to corruption can result in major ﬁnancial losses and a poor reputation. - Action: Targeted training in business ethics and anti-corruption work for selected high-risk areas such as the sales team. Continuous monitoring of changes to legislation concerning anticorruption work and the implementation of applicable rules. Updating the Code of Conduct, also for suppliers. Available whistleblower hotline. Online training in anti-trust and compliance for all employees. Labour - Risk: Our employees’ safety is a risk factor since we have ware houses and production facilities. - Action: The management is continually focused on safety and we are working to improve this further via education and training. RIAS Annual Report 2023/24 17 MANAGEMENT’S REVIEW ESG FOR 2023 / 2024 Environment and climate Target Protecting the environment is important to RIAS, and we make every eﬀort to minimize negative environmental impacts and address climate change. RIAS is working towards being carbon neutral in 2030. RIAS A/S is continually monitoring energy consumption levels and waste ﬁgures for the entire company in a database called WeSustain, and here the development is compared to previous years. The company has a limited environmental impact which mainly consists of the waste from products and transportation and driv- ing in company cars and electricity consumption for the compa- ny’s processing work, oﬃces and warehouses. Results achieved Based on input from WeSustain concerning the company’s consumption in areas such as electricity, fuel and water, it is possible to calculate a carbon footprint that can be used to as- sess where new initiatives are needed to support the company’s target of being carbon neutral in 2030. The company is working in a targeted manner to reduce its envi- ronmental impact from PVC waste, and here the company has a partnership with the organization Wuppi which collects and dis- poses PVC in a sustainable fashion. During 2023/24 RIAS contin- ued to introduce Green Concept which is an oﬀer to customers who are not able to send their plastic scrap to recycling. RIAS collect the scrap and makes sure that it gets recycled. During 2023/24 57 tons of scrap has been collected and delivered to re- cycling, compared to 41 tons in 2022/23. This scrap would most likely otherwise have been considered to be waste. The company is continuously working on reducing its energy consumption in its warehouses, production facilities and admin- istration with the support from energy consultants who gives advice on the newest technology and where it makes sense to reduce our energy consumption with the biggest impact. RIAS makes every eﬀort to make environmental considerations an integral part of our activities. Our work with reducing climate emissions is focused on, but not limited to, energy, heating, be- haviour and transport. The work with reducing our environmen- tal impact is focused on, but not limited to, responsible purchas- ing, responsible packaging and waste management. Our goal is to reduce the negative climate and environmental consequences of our activities, and we expect the same from our suppliers. We are convinced that eﬀective and systematic environmental initiatives create both environmental beneﬁts and value for our stakeholders. By tracking our energy consumption and the CO2 output we are able to work more eﬃcient towards our goal in 2030. In 2024 an energy check was conducted as requested every 4th year. RIAS has the following energy consumption split by source. The emissions are calculated on the basis of energy consump- tion and CO2 emissions are calculated using the GHG Protocol methodology. CO₂ Emissions by Source Tonnage CO₂ 2023/24 2022/23 2021/22 2020/21 2019/20 48 65 74 173 157 15% 20% 19% 32% 27% Electrical power Natural gas 54 17% 48 15% 57 15% 51 9% 54 9% 115 132 144 118 121 36% 40% 37% 21% 21% Diesel / petrol 106 91 111 207 256 33% 28% 29% 38% 44% District heat Total 323 588 336 549 386 18 RIAS Annual Report 2023/24 MANAGEMENT’S REVIEW ESG FOR 2023 / 2024 Electricity consumption Waste The company uses a large part of its electricity consumption in its warehouses and processing work; During the last year we have been able to reduce our use of electricy and therefore also the emission of CO2 from this source. In May 2023 addi- tional solar panels were implemented for the site in Roskilde. The company generates waste as part of its processing of plas- tics, but it is a very limited amount. RIAS is working in a targeted manner to reduce the environmental impact of PVC waste, and the company has a partnership with the organisation Wuppi, which collects and disposes of hard PVC waste in a sustainable fashion. In 2023/24 RIAS has been able to produce 260.000 Kwh. This production amounts to 30% of our usage of electricity. During 2023/24 Wuppi organization collected 2.409 tons of plas- tic waste, and which was send to recycling. Investments in automation of the usage of electricity in pro- cessing department has also been done which will replace manual judgement of how much energy should be used for our pumps in the department. This is estimated to reduce our usage of electricity by 20t Kwh pr year equal to 3% reduction. During 2023/24 RIAS continued to introduce Green Concept which is an oﬀer to customers who are not able to send their plastic scrap to recycling. RIAS collect the scrap and makes sure that it gets recycled. During 2023/24 57 tons of scrap has been collected and delivered to recycling, compared to 41 tons in 2022/23. This scrap would most likely otherwise have been considered to be waste. Continuous focus on internal and external lightning and the change to LED and a high awareness of the use of electricy among our colleagues have also contributed to a reduction in the use of electricity and will continue to be a topic for the future. RIAS is continually working on ﬁnding new sustainable solutions for our products. During 2023/24 the company introduced 2 new products. An acrylic which is produced from 100% regenerated material. The product is called Policril Recycled. The other one is called Re-board Basic and is made of 100% recycle ﬁbers. Both materials are made from recyclable materials and gives the company’s customers the possibility to choose an alternative to the traditional materials. The company still expects to invest in new machinery in the fu- ture and energy usage will therefore be a big part of the choice of brand and which machine that should be invested in. Additional charging stations have been implemented and foun- dation for up to 28 charging stations are in place. The company increased the existing 4 charging stations with additional 4 during 2023/24 in Roskilde site and 2 in Assentoft. During 2nd half of 2023/24 the company implemented a certiﬁed Product Carbon Footprint calculator that will give the customers a possibility to see which footprint the products they purchase will have from production site to the customers warehouse. Dur- ing 2024/25 this tool will be introduced to our customers Replacement of traditional cars to electric cars has increased in 2023/24. The cars to the sales staﬀ have been in focus due to the high amount of km driven but also 2 vans in the ware- house have been replaced to electric and therefore away from Diesel. 47 % of RIAS leased ﬂeet is electric and is an increase compared to 13% 2022/23. As shown above the company still has a signiﬁcant emission of Co2 from cars. It is expected that the transmission from cars running on fossil fuels to electric cars are fully implemented during 2024/25. RIAS A/S aims to conduct its operations in a responsible manner and is continually working on creating coherence between the company’s strategy and responsibility to the society that the company operates in. For RIAS A/S, social responsibility work is a continual process and in 2024/25 the company continues to work on structuring the required internal processes. Heating usage Based on a criticality assessment, the company is working with areas such as employees, the environment, supplier conditions and anticorruption. The overall policy is described below in addition to how the policy works in practice and, where relevant, what has been achieved. RIAS uses natural gas to heat the building in Assentoft and dis- trict heating for the buildings in Roskilde, and the company has mainly worked on reducing consumption on the Roskilde site. Isolation and replacement of new windows is still in focus has been done where needed and during 2024 an inspection of the building in Roskilde has been carried out to see where possible potentials for improvement can be done. Our supplier of district heating is also working on making their production more “green” and will therefore also have an indi- rect eﬀect on our CO2 emission from this source in the future. The usage of natural gas in Assentoft is at a stable level and still has an emission above 50 tons CO2. The company expects that a transmission from gas to district heat also will be done in Assentoft during 2025 which will decrease the Co2 emission from the warehouse RIAS Annual Report 2023/24 19 MANAGEMENT’S REVIEW ESG FOR 2023 / 2024 Social factors Diversity Ensuring good social conditions for employees is important to the company, and RIAS oﬀers all of its employees good working conditions in accordance with applicable legislation and good practices. There are monthly follow-ups on sick leave in order to improve well-being, and in general, the company is continually working on ensuring the best possible working environment. The total absences for the 2023/24 ﬁnancial year have decreased compared to 2022/23 and are at 2.1% compared to 2.4% last year. At RIAS, we believe that a diverse workplace and an inclusive working environment is an asset for our company.We believe that diverse teams are more innovative, make better decisions and contributetonovelthinking,andwealsopromotetoleranceamong our employees. RIAS wants and strives to be a responsible work- place that recruits, promotes and develops its employees based on their competences and in a manner that promotes diversity. We therefore also make every eﬀort to ensure that our recruit- ment, terms of employment, promotions and any potential ter- minations are made without prejudice towards gender, sexual orientation, age, nationality, physical ability, handicaps, political views, ethnicity, family status, religious convictions or other ideologies. When we recruit new managers, we focus on equal terms and on identifying candidates from both genders. Workplace safety is important to the company, and there is continual investment in initiatives that improve safety at ware- houses and production facilities. During 2023/24 ﬁre drills have been done and training in the ﬁre protection system has been carried out. Investments have been made in equipping trucks with blue lights both front and rear so that employees can see when a truck is headed their way. Investments have also been made on pallet racks to prevent forklifts from damaging the racks so that a breakdown of the racks can injure the workforce. How we work with diversity at RIAS: We are continually working on ensuring diversity both in man- agement teams and among employee groups. We work based on the following principles: In our warehouse and processing department the company in- vested in advanced hearing protection which are speciﬁc pro- duced for each employee which keep the noise out, but the em- ployee can be contacted. In our administration we have invested in headsets with active noise reduction and installed noise re- duction walls between workstations. • RIAS is a workplace with equal opportunities for everyone in a safe and non-discriminatory working environment. • We strive to ensure that women are represented by more than 38% among our management teams and we therefore focus on equal terms and on identifying candidates from both genders when recruiting new managers. The work environment council in RIAS works with safety and health and during the year diﬀerent competitions have been done in order to improve the health of the employees. Count your steps during the day was one initiative and another was count your km when using your bicycle. Trying to improve physical activity dur- ingthedaybothatworkbutalsointhesparetime,isjustoneoutof many initiatives performed by the council. In the ﬁnancial year of 2023/24 the company had no accidents compared to 1 last year. • We comply with Danish and international human rights standards and laws regarding equal opportunity and we oﬀer fair and equal terms in employment and working conditions, regardless of gender, ethnic origins, religious beliefs or other personal conditions. • We do not tolerate bullying, sexual harassment, discrimination, oﬀensive behaviour or threats The company will continue to work on safety issues via daily morning meetings at warehouses and production facilities to ensure that the number of workplace accidents are avoided or at a very low rate. The company completed an employee satis- faction survey during the spring of 2024 to ensure that the social conditions remain good via the use of employee dialogues. Com- munication was an issue that was brought to the attention of the management and therefore monthly morning meetings are ini- tiated for all employees and for those who can´t participate the meetings are shared via Teams. Information screens has been installed in both sites and in most departments. Here informa- tion can be shared so all are informed about news in RIAS A/S. • We strive to ensure that the composition of our employees is a mix of young and experienced employees who together can inspire and contribute to the development of RIAS. Suppliers and human rights The company typically enters into long-term supplier relation- ships, and the suppliers are mainly located in Europe. An overall assessment of the suppliers also includes - besides ﬁnancial and quality related assessments an assessment of whether the supplier demonstrates social responsibility, including not using child labour, etc. Inclusion is also important to the company, and it employs those in vocational training programs and oﬀers ﬂexible working schemes (ﬂexjob) to employees with a limited work capacity. In addition, there are schemes for seniors oﬀered to employees who are close to retirement. RIAS also assumes responsibility by training young people in various job roles, and currently the company has 5 trainees hired in warehouses and in sales func- tions which is 2 more than last year. All new suppliers are asked to ﬁll out a Supplier Code of Con- duct which, among other things, has questions related to human rights. In the ﬁnancial year only suppliers fulﬁlling the require- ments of the Supplier Code of Conduct have been used. RIAS A/S has received an updated Supplier Declaration at the end of the ﬁnancial year and will therefore from now on use this one for new suppliers, while also getting this updated version signed by the current suppliers. RIAS has a maternity leave for men that is equal to the one ap- plying for women and by doing that exceeding the legal require- ments. This has the eﬀect that men and women are having the same opportunity in this matter. Anti-corruption As a company, RIAS wants to ensure that we carry out our activities in an honest manner without the involvement of corruption or bribery to gain unfair advantages.It is important that all of RIAS’ activities are characterised by integrity. Bribery and corruption harm the societies 20 RIAS Annual Report 2023/24 MANAGEMENT’S REVIEW ESG FOR 2023 / 2024 in which they take place and prevent economic growth and devel- opment. It is RIAS’ policy to comply with all applicable laws on ﬁght- ing corruption and to correctly list all transactions in RIAS’ ﬁnancial statements and reports. The company has zero tolerance for bribery and corruption made by employees or others acting on our behalf. Gender diversity in the other management of RIAS A/S The other management, cf. § 99b, in RIAS A/S consist of two le- vels of management. Level 1: The Executive Management. Level 2: People with employee responsibilities who report directly to the Executive Management. The Executive Management consists of two members and the management team who report directly to the Executive Management consists of 6 members. In total the other management consists of 8 members and where one is a fe- male. The target of 38% gender split is therefore not achieved in the other management. To support the policy on ﬁghting bribery, all new employees must complete online courses in anti-trust and anti-corruption issues within three months of starting in their jobs and updat- ed courses are continuously held for employees in RIAS A/S. In the 2023/24 ﬁnancial year, compliance e-learning cours- es in anti-corruption work have been held for all employees and 100% of employees completed the course. Compliance is also an item on the agenda at board meetings, and here the Board of Di- rectors has also been informed of the e-learning courses that have been completed. The management group also discusses compliance issues and this is a permanent part of the agenda. The company expects that this target will be achieved in 2029/30 and achieved by the following actions: • Work is being done to ensure at least 38% female managers in the company. This is not accomplished in 2023/24 but in all new positions the company uses recruitment agencies to ﬁnd the best employees and to ensure that the candidates in clude well-qualiﬁed women. The company has a whistleblower hotline which gives the possi- bility to report on all critical issues they might observe. The hot- line is available from the website RIAS.dk and therefore is an op- tion for both internal employees and external stakeholders to use. The hotline is managed by an external partner and therefore everything can be reported strictly conﬁdential. There have been no whistleblower reports submitted in 2023/24. Nor has manage- ment been made aware of corruption issues by other channels, and the Board of Directors has also been notiﬁed of this. In the 2023/24 ﬁnancial year, all employees have been asked to com- plete e-learning courses on compliance, GDPR and IT security. • Making the company more attractive to managers of both genders, such as by ensuring there is an HR policy that pro motes the career opportunities of both men and women, which is accomplished by oﬀering a ﬂexible and family-fri endly workplace. RIAS A/S does not have an individual diversity policy pursuant to Section 107 D of the Danish Financial Statements Act, as a compre- hensive policy has been established for the entire RIAS Group. Diversity in the Board of Directors 2024 2023 2022 2021 2020 Policy for the gender composition of the Board of Directors and Executive Board, cf. Section 99(b) + 107D The current Board of Directors are elected on an annual basis, and the board members are selected based on their overall com- petences. The Board of Directors currently consists of three mem- bers, of which all are men. The company had a new chairman in 2024 who is a man. Therefore, the company hasn’t achieved an equitable gender distribution in the top management team. Our ambition is to have at least 25% of the underrepresented gender on our Board and this is expected to be achieved in 2028/29. The way to achieve this is by having focus on the target and assure that all candidates are considered in the recruitment process and to have all genders represented in the election process. Members 3 4 4 4 4 Underrepresented Target in % 0% 25% 25% 25% 25% 25% 0 0 0 Target is expected to be achieved 2028/29 0 Gender diversity in the other management of RIAS A/S Members 8 7 9 6 6 Underrepresented Target in % 13% 14% 22% 17% 17% 38% 0 0 0 Target is expected to be achieved 2028/29 0 new digital solutions in relation to the data processing they entail, as RIAS is very aware that the use and processing of data must never go beyond RIAS’ data ethical values and in the end, end up damaging trust in RIAS as a digitally responsible company. Data ethics § 99 d It is RIAS´s policy to maintain the highest ethical standards and comply with all applicable data and privacy laws and regulations. Our work with data ethics is governed by the data ethics policy as well as internal policies and stand- ard operating procedures. As described in RIAS‘ Policy for data ethics, which is available at rias.dk, we at RIAS have identiﬁed a number of data ethical values that we as a company must work towards, and which can support that we al- ways make well-considered decisions on our digital journey. The data ethical values are places on top of the relevant legislation for the area and complement RIAS’ per- sonal data policy. The policy implies that RIAS continuously consider the advantages and disadvantages of the use of Please refer to:  riasnordic.com/about-rias/data-ethics-policy Tax policy It is RIAS´s policy to maintain the highest ethical standards and comply with all applicable laws and regulations. Our work with Tax is governed by the Tax policy as well as internal policies and standard operating procedures. RIAS Annual Report 2023/24 21 FINANCIAL STATEMENTS 22 RIAS Annual Report 2023/24 FINANCIAL STATEMENTS STATEMENT OF COMPREHENSIVE INCOME Statement of comprehensive income 1 October to 30 September Note Amounts in DKK ‘000 2023/24 319,092 -214,332 2022/23 313,144 -209,621 3 Revenue Production Cost Gross proﬁt 104,760 103,523 4-5 4-5 4-5 Distribution expenses Administrative expenses Proﬁt before special items -73,385 -12,840 18,535 -73,644 -12,946 16,933 6 Special items 692 0 Proﬁt before ﬁnancial income and expenses 17,843 16,933 7 8 Financial income Financial expenses 1.144 -1.088 313 -1,252 Proﬁt before tax 17,899 -4,345 13,555 0 15,994 -3,487 12,507 0 9 Corporation tax Net proﬁt for the year Other comprehensive income Total comprehensive income 13,555 12,507 10 Earnings per share Earnings per DKK 100 share Earnings per DKK 100 share, diluted 58,77 58,77 54.20 54.20 RIAS Annual Report 2023/24 23 FINANCIAL STATEMENTS BALANCE SHEET Balance sheet assets at 30 September Note Amounts in DKK ‘000 2023/24 2022/23 Assets Non-current assets 11 12 Intangible assets Goodwill Customer relations Software 53,085 53,085 26 86 53,197 0 0 53,085 Property, plant and equipment Land and buildings Plant and machinery Other ﬁxtures and ﬁttings, tools and equipment Assets under construction 38,606 13,555 3,375 38,927 16,019 2,874 1,589 873 57,125 58,693 13 Leasing assets 5,771 8,570 Total non-current assets 115,981 120,460 Current assets Inventories Receivables 14 15 29,187 70,205 4,619 28,388 58,130 4,720 Prepayments Cash at bank and in hand Total current assets 40,791 144,802 40,714 131,952 Total assets 260,783 252,412 24 RIAS Annual Report 2023/24 FINANCIAL STATEMENTS BALANCE SHEET Balance sheet liabilities and equity at 30 September Note Amounts in DKK ‘000 2023/24 2022/23 Liabilities and equity 16 Equity Share capital Revaluation reserve Retained earnings Proposed dividend Equity 23,063 1,898 158,744 8,533 23,063 1,898 153,722 8,533 192,238 187,216 Liabilities Non-current liabilities Deferred tax Lease liabilities 17 13 9,982 1,147 9,789 4,238 Total non-current liabilities 11,129 14,027 Current liabilities 13 18 Lease liabilities Trade payables and other payables Corporation tax 4,906 47,618 4,891 4,658 43,733 2,778 Total current liabilities 57,415 51,169 Total liabilities 68,545 65,196 Total liabilities and equity 260,783 252,412 19 Contingencies and other ﬁnancial commitments 20- 23 Other notes RIAS Annual Report 2023/24 25 FINANCIAL STATEMENTS EQUITY STATEMENT Amounts in DKK ‘000 Proposed Share capital Revaluation reserve Retained earnings dividend Total 2023/24 Equity at 1 October 2023 Change in equity in 2023/24 Total comprehensive income Dividend paid to shareholders Proposed dividend to shareholders Total changes in equity in 2023/24 Equity at 30 September 2024 23,063 1,898 153,722 8,533 187,216 0 0 0 0 0 0 0 13,555 0 -8,533 5,022 158,744 0 -8,533 8,533 0 13,555 -8,533 0 5,022 192,238 0 23,063 1,898 8,533 2022/23 Equity at 1 October 2022 Change in equity in 2022/23 Total comprehensive income Dividend paid to shareholders Proposed dividend to shareholders Total changes in equity in 2022/23 Equity at 30 September 2023 23,063 1,898 149,748 11,532 186,241 0 0 0 0 0 0 0 12,507 0 -8,533 3,974 153,722 0 -11,532 8,533 -2,999 8,533 12,507 -11,532 0 975 187,216 0 23,063 1,898 26 RIAS Annual Report 2023/24 FINANCIAL STATEMENTS CASH FLOW STATEMENT Amounts in DKK ‘000 2023/24 2022/23 Net proﬁt for the year 13,555 12,507 Adjustment for non-cash operating items etc: Tax on proﬁt for the period Depreciation and amortisation Proﬁt or loss on sale of property, plant and equipment and ﬁnancial assets Financial income Financial expenses 4,345 8,790 0 -1,144 1,088 26,634 3,487 8,738 40 -313 1,252 25,711 Cash ﬂows from operating activities before changes in working capital Changes in inventories -799 -11,975 3,885 -4,183 9,597 716 Changes in receivables (and prepayments) Changes in trade payables and other payables Cash ﬂows before ﬁnancial income and expenses and tax 17,745 31,841 Financial income, received Financial expenses, paid Corporation tax paid 901 -775 -2,039 15,832 111 -1,085 -3,895 26,972 Cash ﬂows from operating activities Purchase of intangible assets 0 -2,039 0 0 -4,917 0 Purchase of property, plant and equipment Sale of property, plant and equipment Cash ﬂows from investment activities -2,039 -4,917 Installments on leasing debt Paid dividend Cash ﬂows from ﬁnancing activities -4,879 -8,533 -13,412 -4,622 -11,532 -16,154 Cash ﬂows for the year Cash and cash equivalents at 1 October Currency regulation cash 145 40,714 -70 5,901 34,779 34 Cash and cash equivalents at 30 September 40,791 40,714 RIAS Annual Report 2023/24 27 NOTES Receivables, debt and other monetary balance sheet items in for- eign currency are converted at the exchange rates on the balance sheet date. The diﬀerence between the rate on the balance sheet date and the rate at the time of the receivable or debt arising or the rate in the latest annual report are recognised in the income statement under ﬁnancial revenue and costs. Note 1. Accounting policies RIAS A/S is a public limited company registered in Denmark. The Annual Report covers the period 1 October 2023 – 30 Sep- tember 2024. The Annual Report of RIAS A/S for 2023/24, which comprises Management’s Review and Financial Statements for the period 1 October 2023 – 30 September 2024, is prepared in accordance with International Financial Reporting Standards as adopted by the EU and Danish disclosure requirements for listed companies in class D. On 11th of December 2024, the Board of Directors and the Executive Board discussed and adopted the Annual Report of RIAS A/S for 2023/24. The Annual Report will be presented to the shareholders of RIAS A/S for adoption at the Annual General Meeting on 22 January 2025. Fixed assets purchased in foreign currency are converted using the exchange rate at the transaction date. The annual report is submitted using DKK as the functional currency. Income statement Net revenue Revenue covers the sale of tradable goods and ﬁnished goods minus cash and bulk discounts. Basis of preparation The Annual Report is presented in DKK rounded oﬀ to the near- est DKK 1,000. The Annual Report is prepared under the his- torical cost convention. The accounting policies described below have been applied consistently for the ﬁnancial year and for the comparative ﬁgures. Revenue from the sale of goods is recognized in the income state- ment when all performance obligations have been fulﬁlled. This is when goods leave the warehouse. Revenue is measured at the fair value of the agreed consideration, exclusive of VAT and taxes collected on behalf of a third party. At the time of recognition of income, a number of price adjustments are also estimated. These are recognized as a reduction to revenue. Changes in accounting policies and disclosures Impact of new accounting standards Eﬀective from the 2023/24 ﬁnancial year, RIAS has imple- mented all new, updated or amended international ﬁnancial reporting standards and interpretations (IFRSs) as issued by the IASB and IFRSs adopted by the EU that are eﬀective for the 2023/24 ﬁnancial year. Payment terms for receivables from sales depend on the cred- it- worthiness of the customer, ordinary business practices and signed agreements. Some customers have payment terms with a credit pe- riod that begins once the product is shipped. Most common payment term is 30 days. The following amendments have been adopted as of 1 October 2023: • Amendment to IAS 1 “Presentation of Financial Statements and IFRS Practice Statement 2: Disclosure of Accounting Policies” Segmentation information The company has one operating segment and operates within two product areas: • Amendment to IAS 8 “Accounting Policies, Changes in Accounting Estimates and Errors: Deﬁnition of Accounting Estimates” • Sale, processing and distribution of semi-ﬁnished plastic products to all branches of the building and construction sector. (Construction) • • Amendments to IAS 12 “Income Taxes: Deferred Tax related to Assets and Liabilities arising from a Single Transaction” • Sale, processing and distribution of semi-ﬁnished plastic products to industry and the public sector. (Industry) Amendments to IAS 12 “Income Taxes: International Tax Reform - Pillar Two Model Rules” Based on the IFRS 8 operational segments and internal report- ing to the management in their assessment of the company’s results, ﬁnancial position and allocation of resources, an op- erational segment has been identiﬁed consisting of sales, pro- cessing and distribution of semiﬁnished plastic products. This reﬂects the management’s approach to allocation of resources and its organisational management. The revenue is divided be- tween the product areas of Building &Construction and Industry. The amendments listed above did not have any impact on the amounts recognized in the prior period and current period and are not expected to signiﬁcantly aﬀect future periods. New ﬁnancial reporting standards to be adopted IASB has issued new or amended accounting standards and in- terpretations that have not yet become eﬀective and have con- sequently not been implemented in the consolidated ﬁnancial statements for 2023/24. Management expects to adopt the ac- counting standards and interpretations as they become manda- tory. None of the new or amended standards or interpretations are expected to have signiﬁcant impact on the consolidated ﬁ- nancial statements. Production costs Production costs include costs that are incurred to realise the revenue for the year. This includes direct and indirect costs for raw mate- rials and consumables. Distribution costs Description of applied accounting practices Conversion of foreign currency Transactions in foreign currency are converted at the exchange rates on the transaction date or at the approximate rate. Currency diﬀeren-ces arising between the exchange rate on the transaction date and the rate on the date of payment are recognised in the income statement under ﬁnancial revenue or costs. Distributioncostsincludecoststhatareincurredtodistributegoods soldduringtheyearandcostsfortheyear’scompletedsalescam- paigns, etc. Distribution costs also include costs for salespeople, advertising and exhibition costs and depreciation and write- downs. Administration costs Administration costs include costs that are incurred during the 28 RIAS Annual Report 2023/24 NOTES year for management and administration, including costs for the administrative personnel and oﬃces plus depreciation and write-downs. Administration costs also include write-downs of receivables from sales. Other intangible assets undergo linear depreciation over the ex- pected period of use, which is: Customer relationships Software 16 years 5-10 years Special items Property, plant and equipment The purpose of separating special items in the income state- ment is to improve transparency and separate special items from the regular operations. Plots and buildings, production facilities and machines, other facilities, operational materials and inventory are measured at cost price with the deduction of accumulated depreciation and write-downs. Financial revenue and costs Financial revenue and costs includes interest rate gains/loss- es, currency exchange rate gains/losses and write-downs for securities, debt and transactions in foreign currencies. It also includes supplements and payments under the on-account tax scheme. The cost price includes the acquisition price and costs directly associated with the acquisition until the point in time where the asset was ready to use. Subsequent costs, for example, when replacing components of a tangible asset, are included in the book value of the relevant asset when it is likely that the cost will result in future ﬁnancial beneﬁts for the company. The replaced components will cease to be included on the balance sheet and the book value will be transferred to the income statement. All other costs for regular repairs and maintenance are included in the income statement as the costs are incurred. Tax on the year’s result RIASA/SisjointlytaxedwithallDanishcompaniesinthethyssen- krupp Group. The Danish corporation tax is divided among the jointly taxed companies based on their taxable income. RIAS A/S is an administration company for the jointly taxed Dan- ish companies. The jointly taxed companies are included in the on-account tax scheme. See note 19. The cost price for an overall asset is divided into separate com- ponents that are depreciated separately if the usable periods of the individual components vary. Tangible assets are subject to linear depreciation over the expected usable period of the as- sets, which are: The tax for the year, which consists of actual taxes and deferred taxes is included in the income statement with the portion that can be attributed to the year’s result and directly in the equity with the portion that can be attributed to items directly on the equity. Oﬃce and warehouse buildings 10-30 years 8-10 years Production facilities and machinery Other facilities, operational material and inventor 3-10 years Balance sheet Intangible assets The scrap value for oﬃce and warehouse buildings is assessed on an ongoing basis and currently amounts to 50% of the cost price. Plots of land are not depreciated. On recognition, goodwill represents the excess cost of an ac- quisition over the fair value of the identiﬁable net assets of the acquired company. Subsequently, goodwill is measured at cost, less accumulated impairment losses. Goodwill is not amortized. The basis for depreciation is calculated considering the asset’s scrap value and reduced by any potential write-downs. The scrap value is speciﬁed at the time of acquisition and revised annually. If the scrap value exceeds the assets’ book value, de- preciation will cease. At the time of acquisition, goodwill is attributed to the cash-gen- erating units, which are expected to beneﬁt from the business combination; however, not to a level lower than the segment level and the level on which goodwill is monitored, as part of the internal ﬁnancial management. The Management has identiﬁed one operating segment being the whole group to which goodwill is allocated. When the depreciation period or scrap value is changed, the impact of depreciation is then from then on recognised as an accounting estimate. The carrying amount of goodwill is tested for impairment, to- gether with the other non-current assets of the cash-generat- ing unit to which goodwill has been allocated and is impaired to the recoverable amount in the income statement, if the carrying amount is higher. Impairment of goodwill is recognized as a sep- arate item in the income statement. Goodwill is tested annually for impairment, the ﬁrst time being by the end of the year of recognition, in connection with a business combination. Depreciation is recognised in the income statement under, re- spectively, distribution and administration costs. Impairment test of long-term assets. Goodwill is tested annually for whether it needs to be written down, the ﬁrst time at the end of the acquisition year. The book value of goodwill is tested for whether it needs to be writ- ten down in the cash ﬂow-generating unit to which the goodwill is allocated and written down to the recoverable value over the income statement if the book value is higher. Impairment of goodwill is not reversed. Impairment of other as- sets is reversed in so far as the assumptions and estimates, on the basis of which the impairment is made, have been changed. Impairments are only reversed in so far as the new carrying amount of the asset does not exceed the carrying amount of the asset after amortization, had the asset not been impaired. Other intangible assets are measured at cost price with the deduction of accumulated depreciation and write-downs. The recoverable value is measured as the present value of the future net cash ﬂows from the company or activity (cash ﬂow-generating unit) that the goodwill is associated with. RIAS Annual Report 2023/24 29 NOTES The book value of the other long-term assets is assessed annu- ally to determine if there are indications for write-downs. When such indi- cations are present, the recoverable value of the asset is calculated. The recoverable value is the highest of the asset’s fair value with de- ductions of expected selling costs or capital value. The right of use for assets and leasing obligations are not recog- nised if the leasing agreement concerns low-value assets or if the leasing period is 12 months or below. These are recognised as a cost linearly over the leasing period. The company has chosen to make an exception and not separate leasing contracts into leasing or service elements. The company uses this approach for, among other things, cars where the value of the service is not calculated. The capital value is calculated as the present value of expect- ed future cash ﬂows from activities or the cash ﬂow-generating unit that the asset is a part of. Inventories Inventories are measured at cost price based on the FIFO method or the net realisation value if this is lower. A write-down is recognised when the book value of an asset or a cash ﬂow-generating unit exceeds the activity’s or the cash ﬂow-generating unit’s recoverable value. The write-down is rec- ognised in the income statement under, respectively, distribution and administration costs. Write-downs of goodwill are recog- nised on a separate balance sheet item in the income statement. The cost price for commercial goods includes the acquisition price with the addition of any potential import taxes. The net real- isation value for inventories is calculated as the sales sum minus the completion costs and cost incurred to realise the sale and de- termined while taking into account transferability, obsolescence and the developments in the expected sales price. Write-downs of goodwill are not reversed. Write-downs of other assetsare reversed to the extent that changes have happen to the prerequisites and estimates that led to the write-down. Receivables Receivables from sales are mainly product receivables. Receiva- bles are at the ﬁrst recognition measured at fair value and sub- sequently at amortised cost price. Receivables from sales are written down on the basis of an individual assessment and the simpliﬁed approach pursuant to IFRS 9, where provisions for losses are based on the expected credit loss for the duration. Write-downs are only reversed to the extent that the asset’s new book value does not exceed the book value the asset would have had after a write-down if the asset had not been written down. Leasing assets Leasing assets include the leasing of warehouses and oﬃce buildings, company cars, IT hardware and other oﬃce equip- ment. Receivables from sales and other receivables are recognised at amortised cost price minus write-downs to address losses. There is made write-downs to address the losses that are believed to possibly materialise. If the customers’ ﬁnancial conditions dete- riorate further and they are unable to make the payments, it may be necessary to make additional write-downs in future ﬁnancial years. A provision for the expected credit loss in the duration is based on a customer group’s credit risk and by how much the due date for payment has been exceeded. In connection with assess- ing whether RIAS’ write-downs to address losses are suﬃcient, the management analyses receivables, including earlier losses on receivables from goods, the customers’ creditworthiness, cur- rent ﬁnancial conditions and changes to the customers’ terms of payment. Whether a contract contains a lease contract is assessed at the commencement of the contract. For identiﬁed leasing contracts, a right of use for a leased asset is recognised along with associ- ated leasing obligations at the start date of the lease. In the ﬁrst recognition, the right of use is measured at cost price matching the leasing obligation that has been recognised, ad- justed for any leasing prepayments or directly related costs, including removal and restoration costs. The leasing obligation is measured at the present value of leasing payments in the leasing period, discounted using the implicit interest rate in the leasing contract. In cases where the implicit interest rate cannot be determined, the company’s marginal lending rate is used. Prepaid costs Prepaid costs are measured at cost price. When there is an extension of the leasing period, options are only recognised if it is reasonably certain that they will be exer- cised. The majority of the extension and termination options in the contract can only be exercised by the company and not the respective lessor. Equity Dividends Dividends are recognised as a liability at the time the proposal for dividends is adopted at the ordinary annual general meeting (the time of declaration). Dividends that are expected to be paid for the year are shown as a separate item under equity. For subsequent measurements, the right of use is used with deduction of accumulated depreciations and write-downs and adjusted for any potential remeasurements of the leasing ob- ligation. Depreciation is only made based on the linear method over the leasing period of right of use period, whichever is short- est. The leasing obligation is measured at amortised cost price when using the eﬀective interest rate method and adjusted for any potential remeasurements or changes made to the contract. Any potential service elements that can be separated from the lease contract are recognised separately from the lease con- tract. For service elements that cannot be separated from the lease contract, the payments for these are recognised as part of the leasing obligation. Revaluation reserve The revaluation reserve consists of a value adjustment in connec- tion with revaluing the price of buildings when transitioning to the Danish Financial Statements Act of 2001. Payable taxes and deferred taxes Current tax liabilities and receivable current taxes are recognised in the balance sheet as calculated tax on the year’s taxable in- come, adjusted for tax on previous years’ taxable incomes and for paid on account taxes. 30 RIAS Annual Report 2023/24 NOTES Deferred taxes are measured based on the balance sheet orient- ed debt method of all temporary diﬀerences between the book value and the taxable value of assets and liabilities. However, deferred taxes from temporary diﬀerences concerning taxable goodwill that cannot be depreciated and other items are not in- cluded in the event that the temporary diﬀerences, except for company handovers, have arisen at the time of acquisition with- out having an impact on the result or the taxable income. In cas- es where the calculation of the taxable value can be made after diﬀerent tax rules, deferred taxes are measured on the basis of the management’s planned use of the asset or the repayment of the liability. Cash ﬂows from ﬁnancing activities include changes in the loans taken, payments on interest-bearing debt and the payment of dividends to the company’s shareholders. Liquid assets include liquid assets and short-term contractual deposits that can without issue be converted to liquid assets and of which there is only a slight risk of changes in value. Key ﬁgures Earnings per share (EPS) and diluted earnings per share (EPS-D) are calculated in accordance with IAS 33. Other key ﬁgures have been prepared in accordance with the key ﬁgure deﬁnitions described in the management’s report un- der Key Figures. Deferred tax assets, including the taxable value of deﬁcits that can be carried forward, are recognised under other long-term assets at the value of which they are expected to be used, either for the equalisation of tax or when oﬀsetting deferred tax liabil- ities in the same legal tax entity or jurisdiction. Note 2. Accounting estimates and assessments The uncertainty of estimates Deferred tax assets of tax liabilities are oﬀset if the company has a legal duty to oﬀset current tax liabilities and tax assets or if it intends to pay current tax liabilities and tax assets on a net basis or to realise the assets and liabilities concurrently. The calculation of the book value of certain assets and liabili- ties require the use of assessments, estimates and assumptions about future events. The estimates and assumptions applied are, among other things, based on historical experiences and other factors that the management deems reasonable under the circumstances but which, by their nature, are uncertain and unpredictable. The assumptions may be incomplete or inexact, and unexpected events or circumstances may appear. Deferred taxes are measured on the basis of the tax rules and tax rates in the respective countries which pursuant to the leg- islation on the balance sheet day would apply when the deferred taxes are expected to become current taxes. Changes to de- ferred taxes resulting from changes to tax rates are recognised in the year’s total income. Due to the risks and uncertainties the company is subject to, actual outcomes may deviate from the estimates. Provisions Provisions are recognised when the company, due to an event that has occurred before or on the balance sheet date, has a legal or actual obligation and it is likely that ﬁnancial beneﬁts must be paid to meet this obligation. It may be necessary to change earlier estimates due to changes in the conditions that they were based on or due to new knowl- edge or subsequent events. Provisions are measured based on the management’s best esti- mates of the amount at which the obligation can be paid. Estimates that are signiﬁcant to the submission of the ﬁnancial statements are made, among other things, by a valuation and impairment test of goodwill and the writing down of inventory. Financial liabilities Debt to credit institutions, etc. is recognised at the time the debt is assumed at fair value after the deduction of incurred trans- action costs. In subsequent periods, the ﬁnancial obligations are measured at amortised cost price using the “eﬀective interest rate method”, so that the diﬀerence between the proﬁts and the nominal value are recognised in the income statement under ﬁnancial costs over the period of the loan. Impairment test of goodwill In the annual Impairment test of goodwill or when there are in- dications of a need for a write-down, estimates are made about whether the company will be able to generate suﬃcient positive net cash ﬂows in the future to support the value of goodwill or other net assets. The book value of goodwill currently amounts to DKK 53 Mio. Cash ﬂow statement Due to the nature of the business, there needs to be made es- timates about expected cash ﬂows many years into the future, and this is of course associated with an element of uncertainty. The uncertainty re- lates to the management’s expectations for future growth and the ability to achieve the planned savings and streamlining processes (Estimate). Thecashﬂowstatementshowsthecashﬂowsdistributedbyopera- ting, investment and ﬁnancing activities for the year, the year’s changes to liquid assets and liquid assets at the start and end of the year. Cash ﬂows from operating activities are measured based on the indirect presentation method as a result after tax for non-cash operating items, changes to operating capital, received and paid interest and paid corporation tax. The impairment test is described in more detail in note 11. IFRS 16 When recognising and measuring lease contracts, diﬀerent as- sessments are made when specifying rights of use and leasing obligations. Estimates include the assessment of leasing peri- ods, the exercise of extension options (estimate) and applicable discount rates (estimate). Cash ﬂows from investment activities include payments in con- nection with the buying and selling of intangible, tangible and other long-term assets plus the buying and selling of securities that are not counted as liquid assets. RIAS Annual Report 2023/24 31 32 RIAS Annual Report 2023/24 NOTES Note 3. Revenue Sales outside Denmark amount to 14,8% of the company revenue. Sweden amount to 11,6%. All non-current assets are placed in Denmark. Amounts in DKK ‘000 2023/24 2022/23 Revenue Industry Revenue building/ construction Revenue in total Revenue Industry Revenue building/ construction Revenue in total DK 152,945 17,392 8,951 118,994 19,668 1,142 271,939 37,060 10,093 152,097 16,795 8,534 112,984 21,796 938 265,081 38,591 9,472 Sweden Others In total 179,288 139,804 319,092 177,426 135,718 313,144 The Group’s products are mainly sold to Danish customers. Sales are distributed on a large number of diﬀerent products and custom- ers. One single customer account for more than 10% of total sales. Sale to this customer amounts to DKK 42,3 mio. In 2022/23 sale to this customer was DKK 41,3 mio. The operating segment consists of two sales departments for Building & Construction and Industry, respectively, which are supported by a number of joint functions such as purchasing, logistics and production, and the purchased products are used for re-sale in both Industry and Building & Construction. There are also a number of employees who carry out production and processing of products for both Industry and Building & Construction, and this also applies to employees in the two sales oﬃces. Based on this, Management has assessed that RIAS A/S only has one operating segment. The Building & Construction Division primarily deals in ﬁnished plastic products, eg roof plates, thermo roofs, etc. The Industry Division deals in semi-ﬁnished plastic products, eg tubes, plastic rods and processing of these. Note 4. Depreciation 2023/24 2022/23 Depreciation and amortisation are included in productions cost as follows: Depreciation of property, plant and equipment 2,486 2,447 Depreciation and amortisation are included in distribution expenses as follows: Amortisation of intangible assets Depreciation of property, plant and equipment Depreciation from lease assets 0 1,468 4,740 6,208 0 1,323 4,541 5,864 Depreciation and amortisation are included in administrative expenses as follows: Amortisation of intangible assets Depreciation of property, plant and equipment Depreciation from lease assets 0 0 96 96 63 82 242 387 40 Gain/loss from sale of asset Total depreciation and amortisation 8,790 8,738 Speciﬁcations to depreciation lease assets. Note 13. RIAS Annual Report 2023/24 33 NOTES Amounts in DKK ‘000 Note 5. Staﬀ 2023/24 2022/23 44,452 5,888 3,796 346 Wages and salaries 46,803 6,155 2,981 199 Pensions, deﬁned contribution plan Remuneration to the Executive Board Pension to the Executive Board Fee to the Board of Directors Other social security expenses 465 1,509 58,112 537 1,657 56,676 Average number of full-time employees Number of full-time employees at 30 September 104 105 104 106 Total remuneration to the Executive Board Total remuneration to the Executive Board and the Board of Directors 3,394 3,859 4,444 4,981 The CEO has 1 year notice period with salary in case of a termination of the contract. In case of a take over the period is 1.5 year. The CFO has 1/2 year notice period with salary in case of a termination of the contract. Salaries are included in productions cost as follows: Salaries are included in distribution expenses as follows: Salaries are included in administrative expenses as follows: 50,864 6,636 48,508 7,631 Note 6. Special items Restructuring costs Total 692 692 0 0 Note 7. Financial income Interest Exchange gains 901 243 1,144 111 202 313 Note 8. Financial expenses Interest Exchange losses 775 313 882 370 1,088 1,252 34 RIAS Annual Report 2023/24 NOTES Amounts in DKK ‘000 Note 9. Corporation tax 2023/24 2022/23 3,162 325 Current tax for the year Deferred tax for the year Adjustment of tax concerning previous year Total 3,686 193 466 4,345 0 3,487 22% tax calculated on proﬁt for the year Tax eﬀect of non-deductible costs Tax eﬀect of IFRS 16 3,560 23 104 3,519 27 44 Tax eﬀect other adjustments Total Eﬀective tax rate 658 4,345 24,3% -103 3,487 21.80% Note 10. Earnings per share Net proﬁt for the year 13,555 230,630 58,8 12,507 230,630 54.2 Average number of shares, DKK 100 Earnings per DKK 100 share Earnings per DKK 100 share, diluted 58,8 54.2 Goodwill Customer relations Software Total Note 11. Intangible assets Cost at 1 October 2023 Additions for the year Disposals for the year 53,085 1,000 9,965 64,050 0 0 0 0 0 0 0 0 Transfers during the year 0 0 0 0 Cost at 30 September 2024 Amortisation at 1 October 2023 Amortisation for the year Reversed depreciations on the disposals og the year Amortisation at 30 September 2024 Carrying amount at 30 September 2024 53,085 1,000 -974 -26 0 -1000 0 9,965 -9,879 -86 64,050 -10,853 -112 0 -10,965 53,085 0 0 0 0 0 -9,965 0 53,085 Cost at 1 October 2022 Additions for the year 53,085 1,000 0 9,965 0 64,050 0 0 Disposals for the year 0 0 0 0 Transfers during the year 0 0 0 0 Cost at 30 September 2023 Amortisation at 1 October 2022 Amortisation for the year Reversed depreciations on the disposals og the year Amortisation at 30 September 2023 Carrying amount at 30 September 2023 53,085 1,000 -912 -62 0 -974 26 9,965 -9,786 -93 0 -9,879 86 64,050 -10,698 -155 0 -10,853 53,197 0 0 0 0 53,085 RIAS Annual Report 2023/24 35 NOTES crease in the risk free interest and considered by Manage- ment’s assessment, that this is in line with the risk proﬁle of RIAS A/S. Impairment test Goodwill The most material intangible asset is goodwill of DKKt 53,085, which is attributable to the acquisitions of the activities in Ro- dena A/S and Nordic Plastic A/S. Sensitivity analysis The diﬀerence between the calculated recoverable amount, DKK 221 million, and the carrying amount of equity, DKK 202 million, is DKK 19 million. In Management’s assess- ment, the discount rate after tax may increase to 9.2% before write-down for impairment is required, and Manage- ment is monitoring the development in the risk-free interest rate closely. Stock value is lower than book value and the management assess that this is due to low interest for the stock since the shares are mainly owned by two bigger shareholders (thyssen- krupp and Expon Aps). At 30 September 2024, Management tested the carrying amount of goodwill for required write-down for impairment based on the allocation made to the cash-generating unit of the cost of goodwill. In Management’s opinion, RIAS A/S has only one cash-generating unit, which is the legal entity. Another key assumption of the impairment test is our expectations for an increase in EBIT to DKK 23.1 million in the terminal period. EBIT may decrease to DKK 21 million in the terminal period before write-down for impairment is required. Due to the fact that expected future cash ﬂows are based on an estimate, the impairment test is inherently subject to uncertainty. Amounts in DKK ‘000 2022/23 RIAS A/S 53,085 The recoverable amount is based on the value in use de- termined by using expected net cash ﬂows on the basis of approved budgets as well as substantiated projections for the remaining period. Key assumptions Revenue estimate for the budget period is based on approved budget and forecast for the next three years based on Manage- ment’s experience and expectations for the future. Revenue is expected to increase in the budget due to expectations of more tonnage sold compared to 2023/24 in strategic areas. In the forecast period from 2024/25 to 2025/26 an increase is expected in revenue of 8.1% which will, among other things, be achieved through our activities in Building division including Sweden and the other Nordic markets, where we can see that the market is growing, and the development in the processing department and in the industry division. A growth rate of 1.8% is estimated for years 4 to 6, as well as a growth rate of 1.8% in the terminal period (2022/23: 1,8%). In Management’s assessment this is a realistic level of growth for the building and construction market as well as the industrial sector, in which RIAS A/S is operating. EBIT is estimated to decrease from the current level of DKK 18.5 million to DKK 17.1 million in the budget period 2024/25. The decrease is expected due to pressure on material prices. In 2025/26 EBIT is expected to decrease due to investment in warehouse facilities which then is expected to increase the EBIT in the years to come. A discount rate of 8,5 % after tax (2022/23: 9.1%) has been applied. The decrease compared to 2022/23 is based on the de- 36 RIAS Annual Report 2023/24 NOTES Amounts in DKK ‘000 Land and buildings Plant and machinery Other ﬁxtures and ﬁttings tools and Asset under construction Total Note 12. Property, plant and equipment equipment Cost at 1 October 2023 Additions for the year Disposals for the year 66,382 65 37,953 255 22,158 366 873 1,589 0 127,366 2,275 0 0 0 0 Transfers 0 0 873 -873 1,589 0 0 Cost at 30 September 2024 Depreciation at 1 October 2023 Depreciation for the year Reversed depreciation on disposals for the year Depreciation at 30 September 2024 Carrying amount at 30 September 2024 66,447 -27,455 -384 0 -27,839 38,608 38,208 -21,934 -2,719 0 -24,653 13,555 23,397 -19,284 -738 129,641 -68,673 -3,841 0 -72,514 57,127 0 0 0 0 -20,022 3,375 1,589 Cost at 1 October 2022 Additions for the year Disposals for the year 66,382 0 34,034 3,919 0 22,033 125 0 873 0 122,449 4,917 0 0 0 Transfers 0 0 0 0 0 Cost at 30 September 2023 Depreciation at 1 October 2022 Depreciation for the year Reversed depreciation on disposals for the year Depreciation at 30 September 2023 Carrying amount at 30 September 2023 66,382 -27,069 -386 0 -27,455 38,927 37,953 -19,325 -2,609 0 -21,934 16,019 22,158 -18,479 -805 0 -19,284 2,874 873 0 0 0 0 127,366 -64,873 -3,800 0 -68,673 58,693 873 RIAS Annual Report 2023/24 37 NOTES Amounts in DKK ‘000 Note 13. Leasing Land and buildings Plant and machinery Total 24,211 2,394 Leasing assets Cost at 1 October 2023 Additions for the year 18,789 0 5,422 2,394 Remeasuring of leasing assets Disposals for the year Cost at 30 September 2024 Depreciation for the year Amortisation for the year Disposals for the year 0 -23 18,766 -12,336 -3,258 0 270 270 -3,346 4,740 -3,305 -1,578 2,743 -3,369 23,506 -15,641 -4,836 2,743 Amortisation at 30 september 2024 Carrying amount at 30 september 2024 -15,594 3,172 -2,140 2,600 -17,735 5,772 Cost at 1 October 2022 Additions for the year Remeasuring of leasing liability Disposals for the year Cost at 30 September 2023 Depreciation for the year Amortisation for the year Disposals for the year Amortisation at 30 september 2023 Carrying amount at 30 september 2023 18,283 0 5,763 1,129 0 -1,470 5,422 -2,903 -1,872 1,470 -3,305 2,117 24,046 1,129 506 0 506 -1,470 24,211 -12,237 -4,874 1,470 18,789 -9,334 -3,002 0 -12,336 6,453 -15,641 8,570 Depreciation from leasing assets are included as follows 2023/24 0 2022/23 0 Productions cost Distribution cost Administrative cost -4,740 -96 -4,541 -242 Depreciation from lease assets in total -4,836 -4,874 Lease liability Liabiltity appears as follows 2023/24 5,172 2022/23 4,635 Short term Long Term 1,491 4,253 Total non- discounted leasing fees 6,663 8,888 Lease liability in the balance sheet Short term Long Term 6,053 4,906 1,147 8,896 4,658 4,238 Maturity analysis for leasing liability 0-1 year: 4.906 1-2 year: 903 2-3 year: 244 38 RIAS Annual Report 2023/24 NOTES Amounts in DKK ‘000 Amount in proﬁt and loss 2023/24 2022/23 Interest related to lease liability Costs related to short term leasing contracts (less than 12 months) Costs related to leasing contracts with low value 481 0 53 654 0 20 Amount in cash ﬂow statement 2023/24 -4,879 -481 2022/23 -4,622 -654 Installments on lease liability Interest, Lease liability The company as Lessee Leasing contracts are recognised in the balance sheet as an asset with a corresponding liability. The company has decided not to include contracts with short period less than 12 months or contracts with low value. The company has contracts for copy machines in administration which are considered to have low value and payments for these are expensed linear in the proﬁt and loss statement. Note 14. Inventories 2023/24 2022/23 Inventories are speciﬁed as follows: Goods for resale Work in progress 31,752 0 30,953 0 Inventories at 30 September Write-down at 1 October Reversed write-down made in previous years Write-down for the year 31,752 -2,565 0 30,953 -2,979 0 0 414 Write-down at 30 September -2,565 29,187 -2,565 28,388 Cost of goods sold included in production costs. 214,332 209,621 Adjustments relating to write-down of inventories are included in Production Costs Note 15. Receivables Trade receivables, amotised cost Receivables from group enterprises Other receivables 70,870 38 57,441 172 2,040 27 Write-down for expected credit loss -730 -1.523 58,130 39,533 18,118 57,651 70,205 49,348 20,028 69,376 Insured trade receivables Trade receivables not insured Trade receivables at 30 September No losses from insured receivables has been realized. RIAS Annual Report 2023/24 39 NOTES Amounts in DKK ‘000 Provisions for bad debts are speciﬁed as follows: 2023/24 -1,523 115 2022/23 -1,447 125 Provisions at 1 October Realised in the year Reversed 805 0 Provisions for the year Provisions at 30 September -127 -730 -201 -1,523 The provision is generally due to the customers’ inability to pay due to bankruptcy or expected bankruptcy The increased provision is primarily due to an expected loss on a major customer. RIAS does not grant credits with a term of more than 12 months. The realized loss on receivables in 2022/23 amounts to approx. 6,7% of the amount RIAS had as provision ultimo 2021/22. It is a decrease of 28,,7% points compared to the year before where the loss amounted to 9,4% of the amount RIAS had as provision ultimo 2020/21 2023/24 2022/23 Moreover, trade receivables which are overdue at 30 September but not provided for are included as follows: Period overdue: Up to 30 days Between 30 and 90 days 2,458 864 3,733 850 More than 90 days 1,469 4,791 1,679 6,262 Including insured receivables of 3,024 2,695 Provisions for bad debts are made on a current basis. Adjustments to the provisions are included in distribution expenses. Note 16. Equity Share capital The Company’s share capital of DKK 23,063k is distributed on DKK 3,125k A-shares and DKK 19,938k B-shares. The share capital is fully paid up. The A-shares, which are non-negotiable, carry 10 votes per DKK 100 share, see clause 11 of the articles of association. The B-shares, which are negotiable, carry 1 vote per DKK 100 share, see clause 11 of the articles of association. Capital management RIAS A/S assesses on a current basis the need to adjust the capital structure to balance the high requirements to return on equity against the increased uncertainty related to loan capital. The equity share of total assets was 74% at 30 September 2024 (30 Sep- tember 2023: 74%). The solvency target has been set to 65-75%. (The target for return on equity is 7-9%). Realized return on equity before tax was 9.3% in 2023/24 (2022/23: 8.5%). It is RIAS A/S’s dividend policy that the shareholders should earn a return on their investments in the form of price increases and dividend which exceed a risk-free bond investment. Payment of dividend should be made with consideration to the required consoli- dation of equity as basis for the Company’s continued expansion. 40 RIAS Annual Report 2023/24 NOTES Dividend Dividend of DKK 8,533k (2022/23: DKK 8,533k) is proposed, corresponding to dividend per share of DKK 37 (2022/23: DKK 37). On 23 January 2024, RIAS A/S paid dividend to its shareholders of DKK 8,533 k (2022/23: DKK 8,533k), corresponding to dividend per share of DKK 37 (2022/23: DKK 37). The distribution of dividend to the shareholders of RIAS A/S has no tax consequences for RIAS A/S. Amounts in DKK ‘000 Note 17. Deferred tax 2023/24 9,789 193 2022/23 9,464 325 Balance at 1 October Adjustment for the year of deferred tax Balance at 30 September Deferred tax relates to: Buildings Operating equipment Intangible assets 9,982 9,789 5,138 1,398 3,258 188 4,966 1,311 3,250 262 Other temporary diﬀerences 9,982 9,789 The deferred tax is mainly expected to be utilized after 1 year. Note 18. Trade payables and other payables 2023/24 22,814 907 2022/23 21,770 539 Trade payables Payables to group enterprises Accrued VAT 6,179 4,200 Holiday pay obligation Accrued customer bonuses Other payables 1,582 12,131 4,005 1,574 12,029 3,621 47,618 43,733 Note 19. Contingencies and other ﬁnancial commitments The Company is not part in any complaints which eﬀect the Company’s ﬁnancial position except for the receivables and commitments, which have been recognized in the balance sheet at 30 September 2024. The company is jointly liable for taxes due in the joint Danish taxation. The administrative company is RIAS A/S. The amount due in taxes for the Danish tax group is by 30 September 2024 DKK 5,322k. RIAS Annual Report 2023/24 41 NOTES Amounts in DKK ‘000 Note 20. Fees to auditors appointed at the General Meeting 2023/24 2022/23 Statutory audit Tax advisory services Non-audit services 475 36 0 425 57 78 511 560 Fee for Non-audit services delivered by BDO consists of general accounting and tax advice, mainly related to IFRS and tax. Note 21. Financial risks Financial risks The Company does not speculate in ﬁnancial risks, and the Company’s management of such exposures focuses exclusively on managing ﬁnancial risks that are a direct consequence of the Company’s operations and ﬁnancing. The Company has no derivative ﬁnancial instruments. Interest rate risks The Company does not enter into interest rate positions to hedge against interest rate exposures as moderate changes in the interest rate level will have no material eﬀect on the Company’s earnings and equity. The sensitivity to interest rate risks is low and mainly relates to cash at bank and in hand. Credit risks The Company’s credit risks relate to trade receivables which arise when the Company carries through sales in respect of which pre- payments are not received. The Company’s policy for assuming credit risks implies that all customers are credit rated upon creation and on a current basis. If the credit rating of the customer is not satisfactory, separate security in respect of the sale is required. The primary instrument to hedge unsecure payments is to take out credit insurance which covers up to 90% of the total receivable exclusive of VAT. Credit insurance is taken out with COFACE credit insurance. If credit insurance cannot be taken out in respect of a customer, the customer is carefully assessed based on internal credit limits, or prepayment is requested. The management of the credit exposure is based on internal customer credit limits. The credit limits are determined on the basis of the creditworthiness of the customers with consideration to the current market situation. Provisions for bad debts are made to the extent necessary. See page 40. Non-insured trade receivables amounts to DKKt 20,028k - 30 September 2024. The company has deposit above state warranty and therefore there is a credit risk of DKK 39,687k. Only banks with low risk are being used. Risk evaluation is based on Standard & Poors rating. 2023/24 2022/23 Classes of ﬁnancial assets and liabilities Financial assets: Financial assets at amortised cost 110,996 98,844 Financial liabilities: Financial liabilities at amortised cost Short term liabilities 47,618 43,733 42 RIAS Annual Report 2023/24 NOTES Foreign exchange risks The Company is only to a limited extent exposed to the development in foreign exchange. Almost all trading takes place in DKK or EUR. As the foreign exchange risk relating to DKK/EUR is considered very low, the Company does not hedge its net debt in foreign currency. The company receives payment in SEK from Swedish customers. There is a risk from invoicing to payment from customer. This risk is considered minimal since payment terms are 30 days or less. Liquidity risks The Company’s liquidity reserve consists of cash holdings. The Company’s aim is to have adequate liquidity resources to be able to carry on appropriate operating activities in case of liquidity ﬂuctuations. The Company only has debt which falls due within one year, cf. the balance sheet. The payment of this debt, DKK 48 Mio. can be fully covered by payments from receivables. Note 22. Related parties and related party transactions Controlling interest: thyssenkrupp Facilities Services GmbH, which holds all the A-shares of RIAS A/S, exercises control over the Company. RIAS A/S has registered the following shareholders as holding 5% or more of the share capital: • 54.15% thyssenkrupp Facilities Services GmbH • 11.17% Expon Aps. There have been no transactions with Expon Aps in the ﬁnancial year. Other related parties: The Company’s related parties comprise the Company’s Board of Directors and the Executive Board and family members of these persons. More-over, related parties include the thyssenkrupp Group. There have been no transactions with the Board of Directors, the Executive Board, senior oﬃcers, signiﬁcant shareholders or other related parties, except for the payment of remuneration, including legal assistance. The Annual Report of the ultimate Consolidated Financial Statements in which RIAS A/S is included as a subsidiary may be obtained from: thyssenkrupp AG, thyssenkrupp Allee 1, 45143 Essen, Germany, or may be obtained at:  https://www.thyssenkrupp.com/en/ investors Amounts in DKK ‘000 Trade with companies in thyssenkrupp: 2023/24 2022/23 Other related parties Other income Sale of goods and services Purchase of goods and services There are no transactions with the Parent Company Payables to companies in thyssenkrupp Receivables with companies in thyssenkrupp 736 1,565 6,125 661 1,164 5,165 869 38 527 172 Key management personnel Legal assistance from Lund Elmer Sandager (Board Member) 240 282 Note 23. Subsequent events No material events have occurred after 30 September 2024. RIAS Annual Report 2023/24 43 44 RIAS Annual Report 2023/24 MANAGEMENT’S STATEMENT Management’s statement The Board of Directors and the Executive Board have today con- sidered and adopted the Annual Report of RIAS A/S for 2023/24. ﬁnancial circumstances, the proﬁt for the year, cash ﬂows and ﬁnancial position as well as a description of the most material risks and uncertainties that may aﬀect the Company. The Annual Report has been prepared in accordance with Inter- national Financial Reporting Standards (IFRS) as adopted by the EU and Danish disclosure requirements for listed companies. In our opinion, the annual report of Rias A/S for the ﬁnancial year 1 October 2023 to 30 September 2024 identiﬁed as RIAS- 2024-09-30-en.xhtml is prepared, in all material respects, in compliance with the ESEF Regulation. In our opinion, the Financial Statements give a true and fair view of the ﬁnancial position of the Company at 30 September 2023 and of the results of the Company operations and cash ﬂows for the ﬁnancial year 1 October 2023 – 30 September 2024. We recommend that the Annual Report be adopted at the Annu- al General Meeting. In our opinion, Management’s Review provides a true and fair account of the development of Company’s activities and Karsten Due Dannie Michaelsen CEO CFO BOARD OF DIRECTORS Martin Koelink Chairman Peter Sørensen Vice-chairman Nicolas Neuwirth Board Member June Svendsen Board Member Jette Duus Board Member RIAS Annual Report 2023/24 45 INDEPENDENT AUDITOR’S REPORT To the Shareholders of RIAS A/S changes in sales prices and the positive eﬀect from cost control ini- REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS tiatives, changes to working capital as well as the discount rate and long-term growth rate. Opinion We have audited the Financial Statements of RIAS A/S for the ﬁnan- cial year 1 October 2023 - 30 Sep-tember 2024, which comprise in- come statement, total income statement, balance sheet, statement of changes in equity, cash ﬂow statement, notes and a summary of signiﬁcant accounting policies. The Financial Statements are prepared in accordance with the International Financial Reporting Standards as adopted by the EU and additional requirements in the Danish Financial Statements Act. We focused on the valuation of goodwill because the assessment of impairment requires considerable judgement and estimates by Man- agement. Reference is made to note 2 “Accounting estimates and as- sessments” and note 11 ”Intangible assets”. How our audit addressed the key audit matter We assessed the impairment test prepared by Management, includ- ing the determination of the entire business as one cash generating unit. In our opinion, the Financial Statements give a true and fair view of the Company’s ﬁnancial position at 30 September 2024, and of the results of the Company’s operations and cash ﬂows for the ﬁ- nan-cial year 1 October 2023 - 30 September 2024 in accordance with the International Financial Report-ing Standards as adopted by the EU and additional requirements in the Danish Financial State- ments Act. We assessed the assumptions applied by Management in its budgets and forecasts, including net reve-nue growth, contribution margin taking into eﬀect the expected decline in sales prices and positive eﬀect from cost control initiatives, changes to working capital as well as the determination of discount rate and long-term growth rate. We compared budgets and plans for prior years with actual ﬁgures realised with a view to assessing the accuracy of the judgements and estimates previously made by Management. In particular, in this regard we challenged Management’s assessment of the future development in market conditions,foundation for further growth and initiatives to optimize production methods for the purpose of improving margins. Our opinion is consistent with our long-form audit report to the au- dit committee and the board of di-rectors. Basis for Opinion We conducted our audit in accordance with International Stand- ards on Auditing (ISAs) and the addi-tional requirements applicable in Denmark. Our responsibilities under those standards and re- quire-ments are further described in the “Auditor’s Responsibilities for the Audit of the Financial State-ments” section of our report. We believe that the audit evidence we have obtained is suﬃcient and appropriate to provide a basis for our opinion. We assessed the sensitivity in the value in use of future cash ﬂows for changes to the assumptions in the budget and forecast period, in particular the sensitivity relating to the long-term growth in the terminal period and changes to the discount rate. Independence We assessed the suﬃciency of disclosures about the key assump- We are independent of the Company in accordance with the Interna- tional Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (including International In- de-pendence Standards) (IESBA Code), together with the ethical re- quirements that are relevant to our audit of the ﬁnancial statements in Denmark, and we have fulﬁlled our other ethical responsibilities in accordance with these requirements and the IESBA Code. tions applied and the sensitivity for changes in key assumptions. Statement on Management Review Management is responsible for the Management Review. Our opinion on the Financial Statements does not cover the Manage- ment Review, and we do not express any form of assurance conclu- sion thereon. To the best of our belief we have not performed any prohibited non-audit services, as stated in article 5, subarticle 1, in regulation (EU) no. 537/2014. In connection with our audit of the Financial Statements, our respon- sibility 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 during the audit, or otherwise appears to be materially misstated. Appointment of auditor We were initially appointed auditor of RIAS A/S on 27 Janu- ary 2023 for the ﬁnancial year 2022/23. We were reappoint- ed annually by a resolution of a general meeting for a total continuous period of 2 years until and including the ﬁnancial year 2023/24. Moreover, it is our responsibility to consider whether the Manage- ment Review provides the information required under the Danish Financial Statements Act. Key Audit Matters Based on the work we have performed, we conclude that the Man- agement Review is in accordance with the Financial Statements and has been prepared in accordance with the requirements of the Dan- ish Financial Statements Act. We did not identify any material mis- statement of the Management Review. Key Audit Matters are those matters that, in our professional judgment, were of most signiﬁcance in our audit of the Financial Statements for the ﬁnancial year 2023/24. These matters were ad- dressed in the context of our audit of the Financial Statements as a whole, and in forming our auditor’s opinion thereon, and we do not provide a separate opinion on these matters. Management’s Responsibilities for the Financial Statements Key audit matter Valuation of goodwill Goodwill amounts to DKK 53 million. Management is responsible for the preparation of Financial State- ments that give a true and fair view in accordance with the Inter- national Financial Reporting Standards as adopted by the EU and addition-al 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. As required by IFRS the valuation of goodwill is tested annually for impairment. Key assumptions in determining future cash ﬂows are earnings growth, including in particular revenue growth, contri- bu-tion margin together including taking into eﬀect the expected 46 RIAS Annual Report 2023/24 In preparing the Financial Statements, Management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and us- ing the going concern basis of accounting in preparing the Finan- cial Statements unless Management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. circum-stances, we determine that a matter should not be commu- nicated in our Independent Auditor’s Report because the adverse consequences of doing so would reasonably be expected to out- weigh the public interest beneﬁts of such communication REPORT ON COMPLIANCE WITH THE ESEF REGULATION Auditor’s Responsibilities for the Financial Statements Our objectives are to obtain reasonable assurance about whether the Financial Statements as a whole are free from material mis- statement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable 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 Den-mark will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are con- sidered material if, individually or in the aggregate, they could rea- sonably be ex-pected to inﬂuence the economic decisions of users taken on the basis of these Financial Statements. As part of our audit of the Financial Statements of RIAS A/S we performed procedures to express an opinion on whether the annual report for the ﬁnancial year 1 October 2023 to 30 September 2024 with the ﬁle name RIAS-2024-09-30-en.xhtml is prepared, in all material respects, in compliance with the Commission Delegated Regulation (EU) 2019/815 on the European Single Electronic For- mat (ESEF Regulation) which includes requirements related to the preparation of the annual report in XHTML format and iXBRL tag- ging of the Financial Statements. Management is responsible for preparing an annual report that complies with the ESEF Regulation. This responsibility includes: • The preparing of the annual report in XHTML format; • The selection and application of appropriate iXBRL tags, includ- ing extensions to the ESEF tax-onomy and the anchoring thereof to elements in the taxonomy, for ﬁnancial information re-quired to be tagged using judgement where necessary; As part of an audit conducted in accordance with ISAs and the ad- ditional requirements applicable in Denmark, we exercise profes- sional judgment and maintain professional skepticism throughout the audit. • Ensuring consistency between iXBRL tagged data and the Finan- cial 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. We also: • 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 ob-tain 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 re-sulting from error as fraud may involve collusion, forgery, intentional omissions, misrep- re-sentations, or the override of internal control. 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 judge- ment, 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 in-clude: • Obtain an understanding of internal control relevant to the audit in order to design audit pro-cedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the eﬀectiveness of the Company’s internal control. • Evaluate the appropriateness of accounting policies used and the reasonableness of account-ing estimates and related disclosures made by Management. • Testing whether the annual report is prepared in XHTML format; • Obtaining an understanding of the company’s iXBRL tagging pro cess and of internal control over the tagging process; • Evaluating the completeness of the iXBRL tagging of the Financial Statements; • 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 taxon- omy has been identiﬁed; • Evaluating the use of anchoring of extension elements to ele- ments in the ESEF taxonomy; and • Reconciling the iXBRL tagged data with the audited Financial Statements. • Conclude on the appropriateness of Management’s use of the go- ing concern basis of account-ing in preparing the Financial State- ments and, based on the audit evidence obtained, whether a materialuncertaintyexistsrelatedtoeventsorconditionsthatmay cast signiﬁcant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncer-tainty ex- ists, we are required to draw attention in our auditor’s report to the related disclo-sures in the Financial Statements or, if such disclosures are inadequate, to modify our opin-ion. Our conclu- sions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern. • Evaluate the overall presentation, structure and contents of the Financial Statements, includ-ing the disclosures, and whether the Financial Statements represent the underlying transactions and events in a manner that gives a true and fair view. In our opinion, the annual report of RIAS A/S for the ﬁnancial year 1 October 2023 to 30 September 2024 with the ﬁle name RIAS-2024- 09-30-en.xhtml is prepared, in all material respects, in compliance with the ESEF Regulation. 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. Roskilde, 11 December 2024 Ferass Hamade BDO Statsautoriseret revisionsaktieselskab State Authorised Public Accountant We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regard- ing independence, and to communicate them all relationships and other matters that may reasonably thought to bear on our inde- pendence, and where applicable, actions taken to eliminate threats or safeguards applied. CVR no. 20 22 26 70 MNE no. mne35441 From the matters communicated with those charged with govern- ance, 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 Independent Auditor’s Report unless law or regulation precludes public disclosure about the matter or when, in extremely rare RIAS Annual Report 2023/24 47 Photos by: Ruth Campau Something In The Way We Move Painted Polycarbonate Sheets – A Monumental Artwork at Copenhagen Airport Located in the bustling Terminal area of Copenhagen Airport, an ambitious large-scale artwork captures atten- tion as travelers pass by. Spanning an extraordinary 280 meters between Gates B and C, Something In The Way We Move is mentioned as one of the largest paintings ever made in Denmark. The artwork doubles as a barrier during the airport’s ex- pansion, shielding construction areas until the completion of the new terminal in 2028. To this project RIAS has been supplying Exolon® polycar- bonate solid sheets for the artwork’s construction. Over six months, we delivered 235 sheets of PC GP (clear) and 25 sheets of PC silver mirror. The artwork is created by Ruth Campau, whose artistic practice revolves around abstract painting, exploring the interplay of color, space, and process. The long, vertical strokes in her brushwork invites passengers to engage actively with its vibrant colors and structure as they walk through the airport, encouraging a contemplative and in- teractive experience. The polycarbonate sheets’ lightweight yet durable prop- erties, combined with their transparency and reﬂectivity, made them an ideal choice for this application, where both aesthetic appeal and functional performance were essential. By combining artistry with function, Something In The Way We Move enhances the visual identity of Copenhagen Airport while fulﬁlling a practical role during a period of transformation. Beyond its aesthetic appeal, Something In The Way We Move serves a functional purpose too. Copenhagen Airport is in a constant state of transforma- tion, evolving over time and is often under construction. Winther Lightweight Cycling Solutions with Foamlite® Winther is a renowned manufacturer of high-quality car- go bikes and educational trikes for children, designed to stimulate the development of motor, cognitive, and social skills through play and movement. properties, which are perfectly suited for applications re- quiring strength, durability, and adaptability. Lightweight yet strong material – ideal for products like seats and backrests that need to endure regular use and occasional impacts. Winther’s dedication to creating safe, durable and en- gaging products has solidiﬁed its reputation as a trusted brand in child mobility solutions. To maintain this standard of excellence, they are committed to using materials that not only meet but exceed their stringent requirements. Water-resistant – able to withstand harsh weather condi- tions, ensuring a long product lifespan. Easy to process to meet speciﬁc requirements – minimizes tooling costs and enables precise production. In 2023/2024, Winther partnered with RIAS as their sup- plier of seats and backrests for their cargo bikes. Central to this collaboration is the integration of Foamlite® poly- propylene (PP) in the production of Winther’s solutions. With these advantages, Foamlite® enables Winther to con- tinue delivering products that meet the highest standards of quality, safety, and durability – to the delight of children and families for many years to come. The decision to use Foamlite® was driven by its unique Green Concept Reducing Our Customers’ Plastic Waste As environmental challenges intensify, the need to reduce waste and conserve resources has never been more urgent. With the launch of our program Green Concept, we have been committed to making recycling more accessible and eﬀective for our customers. Through our recycling program, we help our customers dispose of their resid- ual plastic in a completely cost- and hassle-free way. By oﬀering a ﬂexible system for easy sorting and collection of our costumer’s residual plastic, we ensure that more materials are recycled and reused. PC PE 300 Since introducing the concept in April 2022, we have delivered no less than 747 boxes and collected 596. The total amount of residual plastic collected through the pro- gram adds up to a staggering 115,649 kilo. These ﬁgures not only reﬂect our commitment towards sustainability within the industry but also the strong support from our customers, who actively contribute to reducing plastic waste and promoting acircular economy. 26% 43% PMMA XT (CLEAR) PP 14% 4% PMMA (OTHER) ABS (COLORED) 1% 12% SAGA Space Architects Space Habitats for Astronaut Training and Lunar Missions SAGA Space Architects designs and develops habitats for space exploration and astronaut training, focusing on human well-being to make space “feel like home”. Additionally, ALUPANEL® aluminum composite sheets (brushed aluminum/silver) were used to clad the airlock and bathroom areas. These panels provide airtight and waterproof surfaces that are easy-to-clean and capable of withstanding lunar dust. For the ﬂoor, solid aluminum plates were selected to ensure durability and resilience under heavy use RIAS has been a trusted partner in SAGA’s journey, providing expertise and materials for their projects. In 2023 RIAS contributed to the development of UHAB, a pilot underwater habitat designed to simulate extreme living conditions. In 2024 the collaboration expanded with FLEXHab, a full- scale prototype underwater habitat built to meet the strin- gent requirements and certiﬁcations needed for training European astronauts for upcoming lunar missions. RIAS was very professional and helpful “ when it came to selecting the right mate- rials. A fantastic collaboration, which we hope to continue in future projects. For the UHAB project, RIAS supplied acrylic windows that were crucial to the habitat’s design. These windows ensured that Co-Founder and Lead Architect, Sebastian Aristotelis, could maintain a connection to the outside en- vironment during his missions. Acrylic was chosen for its remarkable strength and durability, making it capable of withstanding the rigorous tests planned for future habitat expansions. FLEXHab was inaugurated and safely transported to the ” European Astronaut Center in Cologne in September 2024. The habitat was part of the oﬃcial opening of ESA’s LUNA facility, a 1,000 m² simulation of the Moon’s surface. FLEXHab was returned to Denmark for ﬁnal completion and will be sent back to Germany in February 2025, coin- ciding with the beginning of ESA’s training programs. Like UHAB, FLEXHab integrates plastic materials, in- cluding PLEXIGLAS® XT transparent panels (8 mm) for a large “digital window”. The acrylic serves as a durable and crystal-clear pane, with three screens displaying animations of the Moon’s surface. The partnership with SAGA highlights RIAS’s ability to deliver high-performance materials for extreme appli- cations, supporting SAGA’s vision to design habitats that make life in space not only possible but also comfortable. PLASTIC IS A WORLD OF OPPORTUNITIES RIAS A/S Industrivej 11 DK - 4000 Roskilde Tlf. +45 46 77 00 00 www.rias.dk VAT no. DK 44065118

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