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FirstFarms — Interim / Quarterly Report 2021
Nov 24, 2021
3433_rns_2021-11-24_368f9900-93a8-40ad-98d6-e9210613951f.pdf
Interim / Quarterly Report
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FirstFarms
Company announcement no. 21/2020
24 November 2021
Interim financial report for 1 January – 30 September 2021 for FirstFarms A/S
Satisfactory Q3 points to historic 2021 result
The prices of crops have affected FirstFarms A/S' result in the first 3 quarters of 2021 positively, as FirstFarms annually is a large net seller of crops. At the same time, FirstFarms has resisted the low pig prices, as this operation is one in four and therefore the company is not dependent on good prices for pigs. As a result, FirstFarms is presenting a satisfactory result in a very troubled market and announces that the company still expects a historically good result for 2021.
The Board of Directors and Management of FirstFarms A/S have today reviewed and adopted the unaudited interim financial accounts for the period 1 January – 30 September 2021.
FirstFarms has in the accounting period realised:
- A turnover of 248 mDKK
- An EBITDA of 74 mDKK (compared to 73 mDKK in 2020)
- An EBIT of 44 mDKK
- A pre-tax result of 24 mDKK
The high crop prices have entailed a significantly improved revenue in the crop production. FirstFarms has recognised a value adjustment on harvested crops of 22 mDKK as of 30 September 2021 compared to 4 mDKK for the same period last year, thus recognised 18 mDKK more compared to last year. Another positive fact is that this year the company has had a normal yield in Romania, compared to a low yield in 2020 due to drought.
Conversely, FirstFarms has experienced a significant decrease in the sales price of pigs like the rest of the global market. The turnover on pigs is 33 mDKK lower compared to the same period last year, but the production and the efficiency are still at a high level, as in the past. The net effect of pig production compared to last year is negative with 16 mDKK.
"Our turnover, earnings and risk are divided into four branches. Therefore, the record crop prices more than offset the very low pig prices, and we can primarily perform a good result for the first three quarters of the year. We operate in an exceptionally unpredictable market, which is why I am also proud that, despite the challenges, we will probably deliver another record result at the end of the year," says CEO Anders H. Nørgaard and continues:
Company announcement no. 21/2021 for FirstFarms A/S
FirstFarms A/S
Majsmarken 1 – 7190 Billund – Denmark – Tel.: +45 7586 8787
www.firstfarms.dk – www.firstfarms.com – [email protected]
CVR no.: 28312504 – Registered office: Billund
FirstFarms
"We are not blind to the fact that our operations affect climate and nature. At FirstFarms, we therefore take responsibility for everything we do and continuously take initiatives that take us in an increasingly sustainable direction. Among other things, we focus on data collection and data processing, to reduce our CARBON footprint at all times. We also investigate opportunities for new energy-friendly solutions when we build new or renovate. I need to make it clear that the work towards more sustainability will progress going forward.
Operation branches
- The milk price has been on par with the budgeted, whereas efficiency and production has been better than expected, and better than the same period last year.
- The prices for piglets and slaughter pigs have increased during first half year, but they have decreased back to the same historical low level from the start of the year. The stock value is on par with the start of the year against -17 mDKK in the same period last year.
- The harvest of crops has all in all been better than budgeted and significantly above 2020, with historical high prices, which is why the crop production has contributed significantly to the result of the year. A significant part of the result in the crop production is generated in the last quarter, where sold crops are delivered.
- The land has given a very satisfactory return based on yields and sale of developed land portfolio in West Romania (company announcement no. 1/2021 and 19/2021)
FirstFarms maintains the expectations to 2021:
- An EBITDA in the level of 100-120 mDKK
- An EBIT of 50-70 mDKK
In 2020, an EBITDA of 100 mDKK and EBIT of 54 mDKK was realised, which was also historically good.
"FirstFarms' journey of growth continues. We continue to develop and operate agriculture with respect for the surrounding communities, and we will continue to deliver products of the highest quality, which are primarily sold and consumed locally. Last but not least, we continue to develop towards more sustainable agriculture while executing on new opportunities that also create value for our investors and the consumers," says Anders H. Nørgaard.
Best regards,
FirstFarms A/S
For further information:
Please visit our website www.firstfarms.com or contact CEO Anders H. Nørgaard on telephone +45 75 86 87 87.
About FirstFarms:
FirstFarms is a Danish stock exchange listed company. We operate FirstFarms with responsibility for the surrounding communities, and we deliver highest quality which is primarily sold locally. We act on new opportunities, that create value for our investors and for the surroundings. Every day, we work on creating a more sustainable company.
Company announcement no. 21/2021 for FirstFarms A/S
FirstFarms A/S
Majsmarken 1 – 7190 Billund – Denmark – Tel.: +45 7586 8787
www.firstfarms.dk – www.firstfarms.com – [email protected]
CVR no.: 28312504 – Registered office: Billund
FirstFarms
Main and key ratios
| tDKK | The Group Q1-Q3 2021 | The Group Q1-Q3 2020 | The Group Q3 2021 | The Group Q3 2020 | The Group 2020 |
|---|---|---|---|---|---|
| Main figures | |||||
| Turnover | 247,936 | 220,977 | 104,552 | 69,132 | 312,616 |
| Gross profit/loss | 57,290 | 33,788 | 11,574 | 2,759 | 24,916 |
| Profit/loss before depreciations (EBITDA) | 73,982 | 72,838 | 18,723 | 7,439 | 100,204 |
| Profit/loss of primary operations (EBIT) | 43,538 | 36,102 | 7,627 | -3,657 | 54,240 |
| Net financial items | -19,355 | -18,361 | -8,758 | -7,435 | -22,838 |
| Pre-tax result | 24,183 | 17,741 | -1,131 | -11,092 | 31,402 |
| Net profit | 16,485 | 15,760 | -2,303 | -10,132 | 24,794 |
| Non-current assets | 950,691 | 968,518 | 950,691 | 968,518 | 954,069 |
| Current assets | 246,991 | 235,757 | 246,991 | 235,757 | 187,886 |
| Total assets | 1,197,682 | 1,204,275 | 1,197,682 | 1,204,275 | 1,141,955 |
| Share capital | 78,610 | 75,666 | 78,610 | 75,666 | 75,666 |
| Equity | 510,615 | 479,655 | 510,615 | 479,655 | 483,477 |
| Non-current liabilities | 461,507 | 482,153 | 461,507 | 482,153 | 461,134 |
| Current liabilities | 225,560 | 242,467 | 225,560 | 242,467 | 197,344 |
| Cash flow from primary operations | 21,180 | 57,086 | -23,665 | 12,241 | 79,572 |
| Cash flow from operations | 608 | 36,935 | -31,521 | 4,806 | 47,172 |
| Cash flow for investment, net | -21,772 | -35,496 | 6,663 | -7,061 | -13,217 |
| Of which for investment in tangible assets | -27,663 | -40,794 | 5,116 | -8,015 | -93,561 |
| Cash flow from financing | 16,698 | 4,524 | 16,482 | 4,308 | -29,259 |
| Total cash flow | -4,466 | 5,963 | -8,376 | 2,053 | 4,696 |
| Key figures | |||||
| Gross margin | 23.1 | 15.3 | 11.1 | 4.0 | 7.9 |
| EBITDA margin | 29.8 | 33.0 | 17.9 | 10.8 | 32.1 |
| Operating margin | 17.6 | 16.3 | 7.3 | -5.3 | 17.4 |
| Solvency ratio | 42.6 | 40.0 | 42.6 | 40 | 42.0 |
| Earnings per share, DKK | 2.1 | 2.08 | -0.3 | -1.34 | 3.6 |
| Diluted earnings per share, DKK | 2.1 | 2.06 | -0.1 | -0.85 | 3.4 |
| Return on shareholders' equity | 4.4 | 4.8 | -1.9 | -8.4 | 5.7 |
| Average number of employees | 311 | 317 | 314 | 315 | 334 |
EBITDA = EBIT added depreciations of the period.
Company announcement no. 21/2021 for FirstFarms A/S
FirstFarms A/S
Majsmarken 1 – 7190 Billund – Denmark – Tel.: +45 7586 8787
www.firstfarms.dk – www.firstfarms.com – [email protected]
CVR no.: 28312504 – Registered office: Billund
FirstFarms
Management report for the period 1 January – 30 September 2021
FirstFarms has in the accounting period realised a turnover of 248 mDKK, an EBITDA of 74 mDKK, an EBIT of 44 mDKK and pre-tax result of 24 mDKK.
EBITDA and EBIT have improved by 1 mDKK and 7 mDKK, respectively compared to same period last year.
In the first 3 quarters, the equity is increased by 27 mDKK, in consequence of conversion of bonds of 12 mDKK, a result of 17 mDKK, an exchange rate adjustment of 3 mDKK, adjustment of hedging instrument of 1 mDKK and payment of dividend of 6 mDKK.
In the first 3 quarters, the milk price has been on par with budgeted, while efficiency and production have been better than expected.
Prices for piglets and slaughter pigs have on average been lower than budgeted in the first three quarters and are at the end of the year back on par with the start of the year and below the budgeted level.
The harvest is completed by both autumn and spring crops. Overall, the result has been higher than budgeted, while prices have been very favourable.
The sale of activities in Western Romania with the remaining 265 hectares is expected to be completed over the next 5 months (company announcement no. 19/2021).
The operation and sales have to a minor extent been affected by consequences of COVID-19 or restrictions hereof.
Risk assessment
FirstFarms has in the annual report for 2020 described the most essential risks for the company, and it is the management's opinion that this description is still adequate. The annual report and the risk assessment can be found on the company's website www.firstfarms.com.
Accounting policies
The interim financial report is prepared in accordance with IAS 34 "Presentation of interim financial reports" as adopted by the EU and Danish disclosure requirements for listed companies.
Accounting policies are unchanged compared to the consolidated financial statement and annual report for 2020, to which is referred.
Company announcement no. 21/2021 for FirstFarms A/S
FirstFarms A/S
Majsmarken 1 – 7190 Billund – Denmark – Tel.: +45 7586 8787
www.firstfarms.dk – www.firstfarms.com – [email protected]
CVR no.: 28312504 – Registered office: Billund
FirstFarms
Expectations for 2021
FirstFarms maintains the announced expectations to 2021; an EBITDA in the level 100-120 mDKK and an EBIT of 50-70 mDKK.
Announced expectations 2021
| mDKK | EBITDA | EBIT |
|---|---|---|
| 25 August 2021 (company announcement no. 15) | 100-120 | 50-70 |
| 26 May 2021 (company announcement no. 11) | 95-115 | 45-65 |
| 25 March 2021 (company announcement no. 4) | 85-115 | 35-65 |
Financial calendar for 2022
23 March 2022 Annual report 2021
26 April 2022 Annual general meeting
31 May 2022 Interim financial report 1 January – 31 March 2022
24 August 2022 Interim financial report 1 January – 30 June 2022
23 November 2022 Interim financial report 1 January – 30 September 2022
Company announcement no. 21/2021 for FirstFarms A/S
FirstFarms A/S
Majsmarken 1 – 7190 Billund – Denmark – Tel.: +45 7586 8787
www.firstfarms.dk – www.firstfarms.com – [email protected]
CVR no.: 28312504 – Registered office: Billund
FirstFarms
Management statement
The Management and Board of Directors of FirstFarms have today discussed and approved the interim financial report of FirstFarms A/S for the period 1 January – 30 September 2021.
The interim financial accounts, which has not been audited or reviewed by the independent auditors of the Company, has been prepared in accordance with IAS 34 – “Interim Financial Reporting” as adopted by the EU and additional Danish disclosure requirements for interim reports of listed companies.
In our opinion, the interim financial accounts give a true and fair view of the Group’s assets, liabilities and financial position at 30 September 2021 and of the results of the Group’s operations and cash flows for the period 1 January – 30 September 2021.
Further, in our opinion the Management’s review gives a true and fair overview of the development in the Group’s operations and financial matters, the results of the Group’s operations and the Group’s financial position as a whole.
Billund, 24 November 2021
Management
Anders H. Nørgaard
CEO
Board of directors
Henrik Hougaard
Chairman
Asbjørn Børsting
Vice Chairman
Jens Bolding Jensen
Karina Boldsen
Bendt Wedell
Company announcement no. 21/2021 for FirstFarms A/S
FirstFarms A/S
Majsmarken 1 – 7190 Billund – Denmark – Tel.: +45 7586 8787
www.firstfarms.dk – www.firstfarms.com – [email protected]
CVR no.: 28312504 – Registered office: Billund
FirstFarms
Income statement
| The Group | The Group | The Group | The Group | The Group | |
|---|---|---|---|---|---|
| tDKK | Q1-Q3 | Q1-Q3 | Q3 2021 | Q3 2020 | 2020 |
| 2021 | 2020 | ||||
| Turnover | 247,936 | 220,977 | 104,552 | 69,132 | 312,616 |
| Value adjustment of biological assets | 21,714 | -10,879 | -1,945 | -12,730 | -25,186 |
| Production costs | -251,466 | -214,762 | -103,375 | -69,856 | -315,792 |
| Grants | 39,106 | 38,452 | 12,342 | 16,213 | 52,981 |
| Gross profit/loss | 57,290 | 33,788 | 11,574 | 2,759 | 24,619 |
| Other operating income | 6,018 | 22,733 | 3,886 | 2,498 | 54,857 |
| Administration costs | -19,770 | -20,401 | -7,833 | -8,896 | -25,236 |
| Other operating costs | 0 | -18 | 0 | -18 | 0 |
| EBIT result | 43,538 | 36,102 | 7,627 | -3,657 | 54,240 |
| Financial income | 551 | 742 | 172 | 616 | 939 |
| Financial costs | -19,906 | -19,103 | -8,930 | -8,051 | -23,777 |
| Pre-tax result | 24,183 | 17,741 | -1,131 | -11,092 | 31,402 |
| Tax on net profit | -7,698 | -1,981 | -1,172 | 960 | -6,608 |
| Net profit | 16,485 | 15,760 | -2,303 | -10,132 | 24,794 |
| Earnings per share, DKK | 2.10 | 2.08 | -0.30 | -1.34 | 3.57 |
| Diluted earnings per share, DKK | 2.10 | 2.06 | -0.07 | -0.85 | 3.36 |
Total income statement
| The Group | The Group | The Group | The Group | The Group | |
|---|---|---|---|---|---|
| tDKK | Q1-Q3 | Q1-Q3 | Q3 | Q3 | 2020 |
| 2021 | 2020 | 2021 | 2020 | ||
| Net profit | 16,485 | 15,760 | -2,303 | -10,132 | 24,794 |
| Other total income | |||||
| Items, which can be re-classified to the income statement: | |||||
| - Exchange rate adjustments by conversion of foreign units | |||||
| Hedging instruments | 2,768 | -1,695 | 1,470 | 6,845 | -9,112 |
| - Value adjustment of the year | |||||
| - Value adjustment reclassified to financial items | |||||
| - Tax of other total income | -242 | -226 | 1 | 261 | 900 |
| Other total income after tax | -350 | 188 | -80 | 4 | 267 |
| Total income | 4,086 | -3,202 | 1,770 | 6,027 | -10,120 |
Company announcement no. 21/2021 for FirstFarms A/S
FirstFarms A/S
Majsmarken 1 - 7190 Billund - Denmark - Tel.: +45 7586 8787
www.firstfarms.dk - www.firstfarms.com - [email protected]
CVR no.: 28312504 - Registered office: Billund
FirstFarms
Balance
| The Group | The Group | The Group | |
|---|---|---|---|
| tDKK | Q3 2021 | Q3 2020 | 2020 |
| ASSETS | |||
| Non-current assets | |||
| Intangible assets | |||
| Goodwill | 16,083 | 16,033 | 16,083 |
| Total intangible assets | 16,083 | 16,033 | 16,083 |
| Tangible assets | |||
| Land | 526,980 | 541,033 | 536,744 |
| Buildings | 230,947 | 223,661 | 227,371 |
| Plant and machinery | 86,445 | 101,813 | 95,996 |
| Fixtures and fittings, tools and equipment | 5,111 | 5,846 | 5,682 |
| Fixed assets under construction | 38,583 | 30,016 | 27,061 |
| Total tangible assets | 888,066 | 902,369 | 892,854 |
| Biological assets | |||
| Basic herd | 41,230 | 40,334 | 39,734 |
| Total biological assets | 41,230 | 40,334 | 39,734 |
| Other non-current assets | |||
| Deferred tax asset | 5,312 | 9,782 | 5,398 |
| Total other non-current assets | 5,312 | 9,782 | 5,398 |
| Total non-currents assets | 950,691 | 968,518 | 954,069 |
| Current assets | |||
| Inventories | 98,555 | 71,443 | 76,404 |
| Biological assets - breeding and crops | 81,255 | 91,108 | 64,593 |
| Receivables | 22,619 | 15,205 | 18,770 |
| Other receivables | 38,794 | 46,203 | 18,125 |
| Accruals and deferred expenses | 2,481 | 2,813 | 2,241 |
| Cash at bank and in hand | 3,287 | 8,985 | 7,753 |
| Total current assets | 246,991 | 235,757 | 187,886 |
| TOTAL ASSETS | 1,197,682 | 1,204,275 | 1,141,955 |
Company announcement no. 21/2021 for FirstFarms A/S
FirstFarms A/S
Majsmarken 1 – 7190 Billund – Denmark – Tel.: +45 7586 8787
www.firstfarms.dk – www.firstfarms.com – [email protected]
CVR no.: 28312504 – Registered office: Billund
FirstFarms
| The Group | The Group | The Group | |
|---|---|---|---|
| tDKK | Q3 2021 | Q3 2020 | 2020 |
| EQUITY AND LIABILITIES | |||
| Equity | |||
| Share capital | 78,610 | 75,666 | 75,666 |
| Reserve for exchange rate adjustment | -33,403 | -32,322 | -37,469 |
| Transferred result | 465,408 | 436,311 | 439,605 |
| Proposed dividend | 0 | 0 | 5,675 |
| Total equity | 510,615 | 479,655 | 483,477 |
| Liabilities | |||
| Non-current liabilities | |||
| Deferred tax | 49,801 | 48,534 | 43,618 |
| Credit institutions | 256,646 | 262,090 | 251,967 |
| Convertible bonds | 107,050 | 118,988 | 112,946 |
| Other non-current debt | 48,010 | 52,541 | 52,603 |
| Total non-current assets | 461,507 | 482,153 | 461,134 |
| Current liabilities | |||
| Credit institutions | 123,546 | 123,527 | 105,852 |
| Convertible bonds | 0 | 3,229 | 6,350 |
| Trade payables and other payables | 87,586 | 96,703 | 70,300 |
| Corporation tax | 259 | 0 | 0 |
| Accruals and deferred income | 14,169 | 19,008 | 14,842 |
| Total current liabilities | 225,560 | 242,467 | 197,344 |
| Total liabilities | 687,067 | 724,620 | 658,478 |
| TOTAL EQUITY AND LIABILITIES | 1,197,682 | 1,204,275 | 1,141,955 |
Company announcement no. 21/2021 for FirstFarms A/S
FirstFarms A/S
Majsmarken 1 – 7190 Billund – Denmark – Tel.: +45 7586 8787
www.firstfarms.dk – www.firstfarms.com – [email protected]
CVR no.: 28312504 – Registered office: Billund
FirstFarms
Equity statement (Condensed)
| tDKK | The Group | The Group |
|---|---|---|
| Q1+Q3 2021 | Q1+Q3 2020 | |
| EQUITY STATEMENT | ||
| Equity 1 January | 483,477 | 392,315 |
| Result of the period | 16,485 | 15,760 |
| Other total income | 4,086 | -4,666 |
| Conversion of bonds and issuance of shares | 12,242 | 76,246 |
| Dividend | -5,675 | 0 |
| Total development for the period | 27,138 | 87,340 |
| Equity 30 September | 510,615 | 479,655 |
Cash flow statement (Condensed)
| tDKK | The Group | The Group |
|---|---|---|
| Q1-Q3 2021 | Q1-Q3 2020 | |
| Pre-tax result | 24,183 | 17,741 |
| Adjustment of non-cash items | 26,452 | 16,964 |
| Change in working capital | -29,455 | 18,686 |
| Cash flow from primary activities | 21,180 | 53,391 |
| Cash from interests and corporation tax | -20.572 | -16,456 |
| Cash flow from operating activities | 608 | 36,935 |
| Cash flow from investing activities | -21,772 | -35,496 |
| Cash flow from financing activities | 16,698 | 4,524 |
| Total cash flow | -4,466 | 5,963 |
| Available, at the beginning | 7,753 | 3,057 |
| Exchange rate adjustment of available | 0 | -35 |
| Available at closing | 3,287 | 8,985 |
Company announcement no. 21/2021 for FirstFarms A/S
FirstFarms A/S
Majsmarken 1 – 7190 Billund – Denmark – Tel.: +45 7586 8787
www.firstfarms.dk – www.firstfarms.com – [email protected]
CVR no.: 28312504 – Registered office: Billund
FirstFarms
Segment information
| Q1-Q3 2021
tDKK | Romanian activities | Slovakian activities | Hungarian activities | Czech activities | Total report compulsory segments |
| --- | --- | --- | --- | --- | --- |
| Total segment turnover | 34,710 | 138,231 | 26,964 | 56,624 | 256,529 |
| Grants | 7,560 | 24,095 | 1,467 | 5,984 | 39,106 |
| Value adjustment of biological assets | 20,215 | 964 | -0,678 | 1213 | 21,714 |
| Financial income | 35 | 1,316 | 27 | 42 | 1420 |
| Financial costs | -2,589 | -6,622 | -892 | -946 | -11,049 |
| Depreciations | -3,635 | -21,465 | -2,043 | -3,301 | -30,444 |
| Segment result before tax | 23,089 | 13,247 | -2,953 | 7,844 | 41,227 |
| Segment assets | 347,848 | 671,068 | 81,356 | 165,087 | 1,265,359 |
| Plant investments *) | 1,273 | 18,890 | 2,170 | 5,331 | 27,663 |
| Segment liabilities | 177,072 | 437,719 | 64,659 | 68,943 | 748,393 |
*) Plant investments are investments in machinery, land and buildings.
| Q1-Q3 2020
tDKK | Romanian activities | Slovakian activities | Hungarian activities | Czech activities | Total report compulsory segments |
| --- | --- | --- | --- | --- | --- |
| Total segment turnover | 17,075 | 121,075 | 37,952 | 68,966 | 245,068 |
| Grants | 11,729 | 23,541 | 1,519 | 1,663 | 38,452 |
| Value adjustment of biological assets | -4,153 | -438 | -6,276 | -12 | -10,879 |
| Financial income | 23 | 174 | 17 | 528 | 742 |
| Financial costs | -5,351 | -5,829 | -2,372 | -1,579 | -15,131 |
| Depreciations | -9,827 | -21,574 | -2,081 | -3,218 | -36,700 |
| Segment result before tax | 10,238 | 12,506 | 1,653 | 4,261 | 28,658 |
| Segment assets | 368,545 | 718,412 | 83,498 | 148,276 | 1,318,731 |
| Plant investments *) | 12,001 | 23,944 | 2,048 | 2,801 | 40,794 |
| Segment liabilities | 237,106 | 487,813 | 61,685 | 59,587 | 846,191 |
*) Plant investments are investments in machinery, land and buildings.
Company announcement no. 21/2021 for FirstFarms A/S
Page 11 of 12
FirstFarms A/S
Majsmarken 1 – 7190 Billund – Denmark – Tel.: +45 7586 8787
www.firstfarms.dk – www.firstfarms.com – [email protected]
CVR no.: 28312504 – Registered office: Billund
FirstFarms
| Reconciliation of report compulsory segments result | Q1-Q3 | Q1-Q3 |
|---|---|---|
| tDKK | 2021 | 2020 |
| Segment result before tax for report compulsory segments | 41,227 | 28,658 |
| Non-allocated result, Group function | -17,038 | -10,917 |
| Result of continued operations before tax, cp. income statement | 24,189 | 17,741 |
| Turnover | ||
| tDKK | Q1-Q3 | Q1-Q3 |
| 2021 | 2020 | |
| Sale of milk | 55,745 | 47,507 |
| Sale of cows and calves | 5,824 | 4,093 |
| Sale of piglets and slaughter pigs | 96,945 | 129,717 |
| Sale of corn etc. | 78,275 | 33,802 |
| Other turnover | 11,148 | 5,858 |
| Total | 247,936 | 220,977 |
Company announcement no. 21/2021 for FirstFarms A/S
FirstFarms A/S
Majsmarken 1 – 7190 Billund – Denmark – Tel.: +45 7586 8787
www.firstfarms.dk – www.firstfarms.com – [email protected]
CVR no.: 28312504 – Registered office: Billund