LEMAN Annual Report 2024

Annual Report

2024

LEMAN HOLDING A/S | Ventrupvej 6 | DK-2670 | Denmark | CVR No. 36700513 | www.leman.com

“We strive to always deliver customer care and results of the highest quality.”

“We build our business on respect - for each other, for our customers and for the world around us.”

LEMAN HOLDING A/S Annual Report 2024 CVR No. 36 70 05 13 The Annual General Meeting adopted the annual report on 6th of May 2025 Chairman of the General Meeting Philippe Ziegler

4 Annual Report Entity details

Entity details LEMAN HOLDING A/S Ventrupvej 6 2670 Greve

Registration No: 36700513 Date of foundation: 29.10.1970 Registered office: Greve Financial year: 01.01.2024 - 31.12.2024

Auditors Deloitte Statsautoriseret Revisionspartnerselskab Weidekampsgade 6 2300 Copenhagen S

5 Annual Report

Board of Directors Philippe Ziegler

Chairman of the Board Tanya Ziegler Moyal

Lilian Merete Mogensen

Charles Duro

Executive Board René Bach Larsen

Chief Executive Officer

Tina Hørbye Løj Christensen Entity details

Ole Michael Ringheim

6 Annual Report Contents

Contents Entity details

5

Statement by Management on the annual report

7

Independent auditor’s reports

8

Management commentary

12

Consolidated income statement for 2024

21

Consolidated balance sheet at 31.12.2024

22

Consolidated statement of changes in equity for 2024

24

Consolidated cash flow statement for 2024

25

Notes to consolidated financial statements

27

Parent income statement for 2024

40

Parent balance sheet at 31.12.2024

41

Parent statement of changes in equity for 2024

43

Notes to parent financial statements

44

Accounting policies

52

The Board of Directors and the Executive Board have today considered and approved the annual report of the financial year 01.01.2024 – 31.12.2024

The annual report is presented in accordance with the Danish Financial Statements Act.

7 Annual Report

Statement by Management on the annual report

In our opinion, the consolidated financial statements and the parent financial statements give a true and fair view of the Group’s and the Parent’s financial position at 31.12.2024 and of the results of their operations and the consolidated cash flows for the financial year 01.01.2024 – 31.12.2024.

We recommend the annual report for adoption at the Annual General Meeting.

Greve, 06.05.2025

Executive Board

René Bach Larsen, CEO

Board of Directors

Philippe Ziegler, Chairman Tanya Ziegler Moyal Lilian Merete Mogensen

Ole Michael Ringheim Charles Duro Tina Hørbye Løj Christensen

Statement

We believe that the management commentary contains a fair review of the affairs and conditions referred to therein.

8 Annual Report Auditors Report

Independent auditor’s reports To the shareholder of LEMAN HOLDING A/S

Opinion

We have audited the consolidated financial statements and the parent financial statements of Leman Holding A/S for the financial year 01.01.2024 – 31.12.2024, which comprise the income statement, balance sheet, statement of changes in equity and notes, including a summary of significant accounting policies, for the Group as well as the Parent, and the consolidated cash flow statement. The consolidated financial statements and the parent financial statements are prepared in accordance with the Danish Financial Statements Act. In our opinion, the consolidated financial statements and the parent financial statements give a true and fair view of the Group’s and the Parent’s financial position at 31.12.2024 and of the results of their operations and the consolidated cash flows for the financial year 01.01.2024 – 31.12.2024 in accordance with the Danish Financial Statements Act.

Basis for opinion

We conducted our audit in accordance with International Stan-

dards on Auditing (ISAs) and additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the “Auditor’s responsibilities for the audit of the consolidated financial statements and the parent financial statements” section of this auditor’s report.

We are independent of the Group in accordance with the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Management’s responsibilities for the consolidated financial statements and the parent financial statements.

Management is responsible for the preparation of consolidated financial statements and parent financial statements that give a true and fair view in accordance with the Danish Financial Statements Act, and for such internal control as Management determines is necessary to enable the preparation of consolidated financial statements and parent financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements and the parent financial statements, Management is responsible for assessing the Group’s and the Entity’s ability to continue as a going concern, for disclosing, as applicable, matters related to going concern, and for using the going concern basis of accounting

9 Identify and assess the risks of material misstatement of the consolidated financial statements and the parent financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

•

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s and the Entity’s internal control.

•

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management.

•

Conclude on the appropriateness of Management’s use of the

Auditor’s responsibilities for the audit of the consolidated financial statements and the parent financial statements.

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements and the parent financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. 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 Denmark will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements and parent financial statements.

As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

going concern basis of accounting in preparing the consolidated financial statements and the parent financial statements, and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s and the Entity’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the

Annual Report

•

Auditors Report

in preparing the consolidated financial statements and the parent financial statements unless Management either intends to liquidate the Entity or to cease operations, or has no realistic alternative but to do so.

10 Annual Report Auditors Report

•

consolidated financial statements and the parent financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group and the Entity to cease to continue as a going concern.

•

Evaluate the overall presentation, structure and content of the consolidated financial statements and the parent financial statements, including the disclosures in the notes, and whether the consolidated financial statements and the parent financial statements represent the underlying transactions and events in a manner that gives a true and fair view.

•

Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the group as a basis for forming an opinion on the consolidated financial statements and the parent financial statements. We are responsible for the direction, supervision and review of the audit work performed for purposes of the group audit. We remain solely responsible for our audit opinion.

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.

Statement on the management commentary

Management is responsible for the management commentary.

Our opinion on the consolidated financial statements and the parent financial statements does not cover the management commentary, and we do not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements and the parent financial statements, our responsibility is to read the management commentary and, in doing so, consider whether the management commentary is materially inconsistent with the consolidated financial statements and the parent financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.

Moreover, it is our responsibility to consider whether the management commentary provides the information required by relevant law and regulations.

Based on the work we have performed, we conclude that the management commentary is in accordance with the consolidated financial statements and the parent financial statements and has been prepared in accordance with the requirements in the relevant law and regulations. We did not identify any material misstatement of the management commentary.

Copenhagen, 06.05.2025 Deloitte Statsautoriseret Revisionspartnerselskab CVR No. 33963556 Anders Kreiner State Authorized Public Accountant Identification No (MNE) mne26765

11 Annual Report Auditors Report

“A key word in our work is commitment - both towards our Colleagues, our Customers and the Tasks we face.”

12 Annual Report Mgmt. Commentary

Management Commentary Financial highlights 2024

2023

2022

2021

2020

Key figures

DKK’000

DKK’000

DKK’000

DKK'000

DKK'000

Revenue

3,284,340

2,858,413

4,127,504

3,579,350

2,241,643

Gross profit/(loss)

639,038

613,733

770,006

638,500

460,593

Operating profit/(loss)

(67,331)

(55,359)

89,294

63,615

(9,365)

5,195

(1,152)

(10,139)

(9,180)

(4,465)

Profit/(loss) before tax EBT

(61,905)

(56,511)

79,155

54,435

(13,830)

Profit/(loss) for the year

(63,144)

(58,522)

55,357

40,798

(11,222)

Balance sheet total

1,189,009

1,155,813

1,301,775

1,204,654

950,245

0

2,481

7,198

13,505

11,422

Investments in property, plant and equipment

54,929

52,207

22,909

10,433

9,729

Equity

523,648

578,508

646,706

583,132

528,995

826

800

843

782

683

Gross margin (%)

19.46

21.47

18.66

17.84

20.54

Return on equity (%)

(11.53)

(9.55)

9.00

7.34

(2.05)

Equity ratio (%)

44.04

50.05

49.68

48.41

55.67

Net financials

Investment in intangible assets

Average numbers of employees Ratios

*Financial highlights are defined and calculated in accordance with the latest version of “Recommendations & Ratios” issued by the CFA Society Denmark.

Gross margin (%): Gross profit/loss * 100 Revenue

Return on equity (%): Profit/loss for the year * 100 Average equity

Equity ratio (%): Equity * 100 Balance sheet total

Gross Profit

EBT

Gross margin

Profit/loss for the year

Employees

3.28B 19,46

639

(63.1)

(61.9) 826

Mgmt. Commentary

Revenue

Annual Report

13

DKKm / DKK millions

14

Primary Activities The Parent and all its subsidiaries primarily operate within transportation, freight forwarding and logistics.

Mgmt. Commentary

Annual Report

Development in activities and finances The consolidated revenue for 2024 amounted to DKK 3,284 million, an increase of 15% compared to DKK 2,858 million in 2023. Although market volumes remained high throughout the year, freight rates were at historically low levels. This was particularly evident within ocean freight, but road and airfreight markets were also significantly affected.

In Contract Logistics, warehouse utilisation remained below full capacity throughout the year. Gross profit increased by 4% to DKK 639.0 million, compared to DKK 613.4 million last year. However, the gross profit margin declined from 21.5% to 20%, primarily due to the lower freight rates.

Profit before tax ended at a loss of DKK 63.1 million, compared to a loss of DKK 65.4 million in 2023.

Market conditions and impact The markets for international cargo transportation in which LEMAN operates continued to face significant challenges in 2024, with freight rates remaining at historically low levels. This trend followed the already weak market conditions experienced in 2023, including lower cargo volumes.

While LEMAN was geared to handle higher volumes in 2024, the persistently low rates put pressure on margins across several key markets.

This impact was particularly noticeable in our organisations in the US, the UK, and China. Our Nordic organisations were also affected but were better positioned to mitigate the effects of the difficult market environment.

Agility, customer focus, and sustainability efforts Throughout 2024, the LEMAN organisation once again demonstrated the agility and responsiveness needed to deliver the best possible transport solutions to our customers and international business partners in a volatile market environment.

Sustainability has also become an increasingly important part of our customer dialogue, and we take our responsibility in this area very seriously. Following a significant reduction in our Scope 1 and 2 emissions in 2023, we invested in one of the largest rooftop solar panel installations in the Greater Copenhagen area, with 4,000 square metres of panels installed on top of our warehouse in Greve.

In mid-2024, we opened the first phase of the expansion of our terminal facility in Taulov, Denmark. The second phase was successfully completed and opened in January 2025, further strengthening our capacity and infrastructure in Northern Europe.

Profit/loss for the year in relation to expected developments

15

On 1 January 2024, Nauta SA in Switzerland officially became part of the LEMAN Group. Nauta, headquartered in Basel, strengthens our presence in the Swiss market. On the same date, LEMAN completed the sale of the majority of shares in IntraVAT ApS through a management buy-out.

Annual Report

Strategic developments

Despite this, the Group made significant progress on its strategic priorities. In 2024, we invested a substantial double-digit million amount (DKK) in expanding our presence in new markets, upgrading facilities, strengthening IT infrastructure, and developing our people. Our cash position remains strong, and the Group is well positioned for renewed growth in 2025.

Outlook The Company will continue to execute a series of growth initiatives and investments to strengthen- and expand the capacity and reach of the LEMAN Group despite the poor performance in 2024.

Global freight markets remain weak, and the overall outlook is marked by a high degree of uncertainty. We currently have less visibility into the year ahead than we typically do, and there are no clear indicators that market conditions will improve significantly in the short term.

Ocean freight rates are expected to stay relatively low, and international cargo volumes are only projected to grow slightly – in line with modest global GDP forecasts. Despite these conditions, LEMAN expects to return to profitability in 2025. We anticipate turnover in the range of DKK 3.0 to 3.5 billion, up from DKK 3.3 billion in 2024, with a stable gross profit margin.

Use of Financial Instruments Financial risks

The Group is only exposed to changes in interest rates to a limited extent, as the Group’s equity ratio and financial resources are considered very satisfactory. The Group does not currently use financial instruments to hedge interest rate risk.

Mgmt. Commentary

The financial result for 2024 was unsatisfactory, reflecting continued market pressure and underutilised organisational and operational capacity in a number of key markets.

16

Currency risks The Group conducts purchase and sales transactions in multiple currencies, including DKK, SEK, NOK, EUR, GBP, CNY, TWD, ISK, MXN, VND, USD, and USD-related currencies. Investments have also been made in several of these currencies.

Annual Report

Since 2020, the Group has followed a hedging policy under which exposure to foreign currencies – primarily USD – is partially hedged. Gains and losses from these hedging instruments are recognised as financial items in the income statement, while value adjustments to the hedged assets are booked directly to reserves.

Where possible, currency exposures from sales transactions are offset by matching purchases in the same currencies.

Group Relations

Mgmt. Commentary

LEMAN operates within transportation, freight forwarding, and logistics. With a direct presence in 12 countries and a strong global network of trusted agents, we provide worldwide service coverage.

In addition to the transportation of goods, LEMAN offers a range of value-adding services, including customs clearance, cargo insurance, warehousing, and tailored distribution solutions.

Statutory report on corporate social responsibility A description of LEMAN’s core business activities is provided in the Primary Activities section at the beginning of this Management Commentary.

LEMAN is fully committed to complying with the laws and regulations of the countries and communities in which we operate. We consider legal compliance a fundamental license to operate and continuously monitor legislative developments to ensure full understanding and adherence.

All new colleagues are introduced to our Code of Conduct during onboarding, and regular e-learning ensures continued awareness and alignment across the organisation.

Our approach to sustainability is broad and embedded in our operations. It reflects our commitment to environmental protection, the health and safety of our workforce, ethical business practices, and fair working conditions. These commitments are described in more detail in the following sections.

• We treat all colleagues with dignity and respect and comply with all applicable national human rights legislation.

17

Human rights & working conditions

• All agreements on working hours, holidays, and wages comply with the laws of the country in which the colleague is employed. We aim to minimise hazardous work and ensure that all colleagues are adequately trained to perform their duties.

Implementation Our ambition is zero incidents involving violations of human rights—both within LEMAN and among our suppliers and business partners. To support this, all regular LEMAN suppliers are required to sign our Business Partner Code of Conduct, committing to the same standards of human rights that we expect of ourselves.

We have implemented an eNPS survey system that prompts all colleagues on a monthly basis to provide feedback on various aspects of their work experience, including working environment and conditions.

In addition, a whistleblower hotline is available to report any concerns or suspected violations related to human rights or working conditions—confidentially and anonymously.

Results, expectations and risks In 2024, we did not register any incidents involving violations of human rights. Our clear expectation is that this continues to be the case in the years ahead.

The most significant risk in this area relates to the challenge of maintaining adequate oversight across our global supply chain. Operating in

an international context means that we rely on accurate and honest reporting from our suppliers, as outlined in our Business Partner Code of Conduct.

Mgmt. Commentary

• Discrimination is not accepted under any circumstances. This includes discrimination based on age, religion, nationality, race, gender, sexual orientation, disability, pregnancy, or political beliefs.

Annual Report

• We do not tolerate child labour. Neither LEMAN nor our business partners may employ individuals under the age of 15.

18

Health and Safety At LEMAN, we are committed to creating the safest possible working environment for all colleagues. Through clear procedures and preventative measures, we aim to minimise work-related accidents and illnesses. We also work actively to protect our colleagues from chemical, biological, and physical hazards in the workplace.

Annual Report

Implementation Our ambition is to have zero workplace accidents. As a minimum, we target a year-on-year reduction in work-related injuries. Prevention efforts are based on ongoing training for all colleagues and the implementation of behavioral procedures that promote a strong safety culture.

All equipment must be properly maintained to ensure it presents minimal risk. In addition, Health and Safety committees have been established at major sites, and we regularly seek expert input from specialised consultants to identify and mitigate safety risks.

Mgmt. Commentary

Results, expectations and risks In 2024, we recorded 8 workplace accidents – compared to 2023 where we had 11 workplace accidents. Most incidents occurred during warehouse operations and involved only minor injuries.

While any accident is regrettable, we continue to focus on prevention through safety training, awareness initiatives, and ongoing improvements to the safety features of our equipment.

The most significant health and safety risk relates to warehouse operations, where the movement of cargo poses a potential hazard to our colleagues.

Sustainability At LEMAN, sustainability is fully embedded in our business – from how we operate our logistics solutions to how we care for our people and support customers on their journey towards a lower-emission future. In 2024, we made solid progress across environmental, social, and governance areas, continuing to integrate sustainability as a strategic driver of long-term value.

Preparing for CSRD reporting In 2024, we conducted a materiality assessment involving key stakeholders to identify the most relevant ESG priorities for our business. These include emission reduction, energy efficiency, workplace health and safety, and anti-corruption. Regardless of regulatory requirements, we will continue to act where the risks or impacts are significant.

We also expanded our Eco Air, Eco Sea, and Eco Road offerings to give customers more sustainable logistics options. In 2025, we will formalise our commitment to the Science Based Targets initiative (SBTi), aligning our future reductions with climate science. In parallel, our warehouses continued to implement recycling and circularity measures, improving our waste management practices.

Ethics and anti-corruption

Annual Report

In 2024, we reduced our total CO2 e emissions by 5% compared to the previous year, with reductions across Scope 1, 2, and 3. More than 99% of our emissions stem from Scope 3 – primarily upstream transportation – which remains a key focus area in our efforts to reduce environmental impact. To support this, we have begun installing solar panels at our facilities in Denmark and Norway, helping reduce our reliance on non-renewable energy sources.

19

Environmental performance

Implementation Upholding our ethical standards is essential, and our goal is to ensure that all colleagues and suppliers act in accordance with these principles. It remains our long-term ambition for 100% of our regular suppliers to sign our Business Partner Code of Conduct, thereby committing to the same high ethical standards.

Every new colleague at LEMAN signs our People Code of Conduct upon joining, committing to comply with applicable laws and regulations, and to uphold our values by showing respect for colleagues, business partners, and the broader community.

Results, expectations and risks In 2024, we had no confirmed corruption incidents. Our clear expectation remains that no incidents of corruption or bribery should occur in the future. To support this, a whistleblower hotline is available to provide a secure and anonymous channel for reporting suspected violations. In 2024, we received one whistleblower report, and after the investigation we found no fraud and the cause was closed.

To maintain the highest ethical standards, we require all regular suppliers to sign our Business Partner Code of Conduct, committing to responsible and ethical business practices.

Given the international and cross-cultural nature of our business, we acknowledge an ongoing risk of encountering bribery and other ethical challenges. This reality makes it even more important to continually educate our colleagues and reinforce ethical commitments across our supplier base.

Mgmt. Commentary

At LEMAN, we are committed to full compliance with all international and national legislation and regulations. We firmly reject all forms of corruption, including extortion and bribery. Our business is conducted to the highest ethical standards, and we expect the same from our suppliers.

20 Annual Report

Statutory report on Data Ethics LEMAN adopted its Data Ethics Policy in 2021, reinforcing our commitment to collecting, using, and sharing data in an ethical and responsible manner. The policy guides the organisation in navigating the ethical dilemmas that may arise when making decisions involving data.

Respect, one of LEMAN’s core values, is at the heart of the policy. It sets clear expectations for how we communicate about colleagues and business partners—with dignity and respect at all times. The policy also establishes strict rules around data confidentiality, including prohibiting the disclosure of information about business partners without their explicit consent and ensuring appropriate levels of internal confidentiality.

Statutory report on the underrepresented gender

Mgmt. Commentary

At LEMAN, we are committed to creating an open, modern, and inspiring workplace where colleagues can develop their full potential.

Through a transparent structure, we aim to ensure balanced representation of women and men across all levels of management.

We actively work to foster diversity and to encourage and develop more female leaders in a traditionally male-dominated industry. By the end of 2024, we had made significant progress: 50% of our Board of Directors (three out of six members) and 33% of our Group Coordination Team (two out of six members) were women.

Our commitment to equal opportunities is embedded in our Employee Manual and guides our ongoing efforts to promote diversity and inclusion across the organisation.

Events after the balance sheet date In Q1 2025, LEMAN opened a Shared Service Hub in Poland, consolidating a number of back-office functions. This transition also resulted in certain redundancies within the Danish organisation.

No other events have occurred after the balance sheet date that would materially affect the evaluation of this annual report.

Treasury shares LEMAN Holding A/S holds a number of treasury shares, as detailed in note 11 to the parent company’s financial statements.

2024 DKK’000

2023 DKK’000

2

3,284,340

2,857,506

Cost of sales

(2,645,302)

(2,244,064)

Gross profit

639,038

613,442

Other operating income

7,843

5,210

Other external expenses

(217,272)

(180,589)

Revenue

Staff costs

4

(457,478)

(451,498)

Depreciation, amortization and impairment losses

5

(39,462)

(40,868)

(67,331)

(54,303)

Operating profit/(loss)

231

Income from investments in associates Other financial income

6

8,585

7,086

Other financial expenses

7

(3,390)

(8,243)

(61,905)

(55,460)

Profit/(loss) before tax

Tax on profit/(loss) for the year

8

(1,239)

(10,010)

Profit/(loss) for the year

9

(63,144)

(65,470)

Con. Income Statement

Notes

Annual Report

21

Consilidated income statement 2024

22

Consolidated balance sheet at 31.12.2024 Assets

2024

2023

Notes

DKK’000

DKK’000

11

31,767

40,134

3,309

10,741

35,076

50,875

Land and buildings

250,072

257,126

Plant and machinery

26,345

25,732

Other fixtures and fittings, tools and equipment

22,552

23,315

Property, plant and equipment in progress

70,779

29,728

369,748

335,901

Annual Report

Completed development projects Goodwill Intangible assets

Con. Balance Sheet

Property, plant and equipment

10

12

Investments in associates

268

Other investments

33,499

33,499

Deposits

8,543

1,758

42,310

35,257

Fixed assets

447,134

422,033

Trade receivables

558,523

415,509

2,805

2,428

Other receivables

4,452

6,160

Tax receivable

4,845

917

18,393

18,612

589,018

443,626

Other investments

76

76

Other investments

76

76

Cash

152,781

258,373

Current assets

741,875

702,075

1,189,009

1,124,108

Financial assets

Deferred tax

Prepayments Receivables

Assets

13

14

15

Consolidated balance sheet 2024

2023

Notes

DKK’000

DKK’000

16, 17

30,000

30,000

Translation reserve

2,369

4,509

Retained earnings

491,279

537,051

Equity

523,648

571,560

Contributed capital

Deferred tax

14

34,306

38,046

Other provisions

18

358

964

Provisions

34,664

39,010

Mortgage debt

53,824

57,438

Other payables

19

15,950

16,114

Non-current liabilities other than provisions

20

69,774

73,552

Current portion of long-term liabilities other than provisions

20

3,959

3,702

2,274

0

444,210

324,391

1,398

19,756

107,233

91,686

1,849

451

Current liabilities other than provisions

560,923

439,986

Liabilities other than provisions

630,697

513,538

Equity and liabilities

1,189,009

1,124,108

Prepayments received from customers Trade payables Tax payable Other payables Deferred income

21

Con. Balance Sheet

Equity and liabilities

Annual Report

23

at 31.12.2024

Notes Events after the balance sheet date

1

Financial instruments

23

Fair value information

24

Unrecognized rental and lease commitments

25

Contingent liabilities

26

Assets charged and collateral

27

Non-arm’s length related party transactions

28

Subsidiaries

29

24 Con. Statement of cha.

Annual Report

Consolidated statement of changes in equity for 2024

Contributed capital DKK’000

Translation reserve DKK’000

Retained earnings DKK’000

Total DKK’ 000

30,000

4,509

537,051

571,560

Exchange rate adjustments

0

(2,140)

0

(2,140)

Group contributions etc.

0

0

19,456

19,456

Other entries on equity

0

0

(2,084)

(2,084)

Profit/(loss) for the year

0

0

(63,144)

(63,144)

30,000

2,369

491,279

523,648

Equity beginning of year

Equity end of year

Operating profit/(loss)

Notes

Amortization, depreciation and impairment losses Other provisions

Working capital changes

Cash flow from ordinary operating activities Financial income received Financial expenses paid Taxes refunded/(paid)

Cash flows from operating activities Acquisition etc. of intangible assets

Acquisition etc. of property, plant and equipment Sale of property, plant and equipment Deposit

22

2023

DKK’000

DKK’000

39,462

40,868

(67,331) 606

(9,198)

(36,461) 8,585

(3,390)

110,953

(54,929)

(52,207)

141

(332)

4,638

(102,071)

1,079

(53,941) 57,012

(3,541)

(3,469)

(3,521)

6,824

20

Increase/decrease in cash and cash equivalents

(105,592)

Cash and cash equivalents beginning of year

258,449

Cash and cash equivalents end of year

7,086

(8,243)

(2,481)

Free cash flows generated from operations and investments before financing

Cash flows from financing activities

134,841

0

(50,150)

Other payable

(218)

148,494

(22,731)

Cash flows from investing activities

Repayments of loans etc

(54,303)

(20,655)

(51,921)

10,293

63,836 194,613

152,857

258,449

Cash

152,781

258,373

Cash and cash equivalents end of year

152,857

258,449

Cash and cash equivalents at year-end are composed of: Securities

76

25

2024

Annual Report

for 2024

76

Con. Cash Flow Statem.

Consolidated cash flow statement

26 Annual Report Notes to Con. Fin. State.

“We have a global outlook - both in the way we work and the way we think.”

Notes to Con. Fin. State.

Annual Report

27

Notes to consolidated financial statements

28 Annual Report Notes to Con. Fin. State.

1.

Events after the balance sheet date

No events have occurred after the balance sheet date to this date, which would influence the evaluation of this annual report.

2.

Revenue

2024

2023

DKK’000

DKK’000

Denmark

1,683,970

1,521,194

USA

696,093

673,488

Other countries

904,277

662,824

Total revenue by geographical market

3,284,340

2,857,506

Road & Logistics

1,950,646

1,729,691

Air & Sea

1,333,694

1,127,815

Total revenue by activity

3,284,340

2,857,506

3.

Fees to the auditor appointed by the Annual General Meeting Deloitte

Other

2024 DKK’00 In total

Deloitte

Other

2023 DKK’000 In total

Statutory audit services

1,264

517

1,781

944

791

1,735

Tax services

787

184

971

94

133

227

Other services

996

16

1,012

115

10

125

3,047

717

3,764

1,153

934

2,087

2023

DKK’000

DKK’000

408,378

400,303

Pension costs

33,619

26,411

Other social security costs

15,481

8,596

0

11,660

457,478

446,970

826

800

2024

2023

DKK'000

DKK'000

7,585

5,175

7,585

5,175

2024

2023

DKK’000

DKK’000

15,914

15,054

0

5,669

23,548

20,145

39,462

40,868

Wages and salaries

Other staff costs

Average number of full-time employees

Remuneration of management

Total amount for management categories

5.

Depreciation, amortization, and impairment losses

Amortization of intangible assets Impairment losses on intangible assets Depreciation of property, plant, and equipment

29

2024

Annual Report

Staff costs

Notes to Con. Fin. State.

4.

30

6.

Other financial income

2024

2023

DKK’000

DKK’000

Other interest income

4,310

6,221

Exchange rate adjustments

3,826

865

449

0

8,585

7,086

Notes to Con. Fin. State.

Annual Report

Fair value adjustments

In 2024, part of the exchange rate adjustments consisted of unrealised fair value adjustments of 723 thousand (2023: 1,614 thousand) relating to financial instruments.

7.

Other financial expenses

2024

2023

DKK’000

DKK’000

1,848

1,861

0

4,851

1,542

1,531

3,390

8,243

2024

2023

DKK’000

DKK’000

Current tax

4,390

18,064

Change in deferred tax

(4,117)

(7,385)

966

(669)

1,239

10,010

Other interest expenses Exchange rate adjustments Other financial expenses

8.

Tax on profit/loss for the year

Adjustment concerning previous years

Retained earnings

10

.

Intangible assets

2023

DKK’000

DKK’000

(63,144)

(65,470)

(63,114)

(65,470)

Completed

development projects

Goodwill

92,828

80,325

0

(1,319)

92,828

79,006

(52,694)

(69,584)

0

1,434

Amortization for the year

(8,367)

(7,547)

Amortization and impairment losses end of year

(61,061)

(75,697)

31,767

3,309

Cost beginning of year Exchange rate adjustments Cost end of year

Amortization and impairment losses beginning of year Exchange rate adjustments

Carrying amount end of year

31

2024

Annual Report

Proposed distribution of profit/loss

Notes to Con. Fin. State.

9.

11

Notes to Con. Fin. State.

Annual Report

32

.

Development projects

Completed development projects and development projects in progress include the development of the Transport Management System for road activities and the new Transport Management System CargoWise for the AIR/SEA activities, and other supportive IT systems. The development projects are all completed in 2023 and comprise both external consultancy fees and internal labour costs.

Property, plant

Land and

Plant and

and fittings, tools,

and equitment

buildings

machinery

and equitments

in process

DKK’000

DKK’000

DKK’000

DKK’000

351,356

53,727

106,040

29,728

0

3,214

0

0

(576)

(981)

8.755

0

Transfers

0

3,195

(3,195)

0

Additions

0

389

13.489

41,051

Disposals

0

(430)

(5,007)

0

Cost end of year

350,780

59,114

120,082

70,779

Depreciation and impairment losses beginning of the year

(94,230)

(27,995)

(82,725)

0

0

(645)

0

0

718

236

(4,333)

0

(7,196)

(4,656)

(11,696)

0

0

291

1,224

0

(100,708)

(32,769)

(97,530)

0

250,072

26,345

22,552

70,779

0

0

456

0

Cost beginning of year Addition through business combination Exchange rate adjustments

Addition through business combination Exchange rate adjustments Depreciation for the year Reversal regarding disposals Depreciation and impairment losses end of the year

Carrying amount end of year

Recognized assets not owned by entity

33

Other fictures

Annual Report

Property, plant, and equipment

Notes to Con. Fin. State.

12

.

13

Notes to Con. Fin. State.

Annual Report

34

.

Financial assets

Investments

Other

in associates

investments

Deposits

DKK’000

DKK’000

DKK’000

Cost beginning of year

0

33,499

1,758

Addition through business combination etc.

0

6,892

Exchange rate adjustments

0

34

Additions

268

0

Disposals

0

(141)

Cost end of year

268

33,499

8,543

Carrying amount end of year

268

33,499

8,543

Associates

Registered in

Ownership %

IntraVAT ApS

Denmark, Greve

49.00

IntraVAT AS

Norway, Oslo

49.00

IntraVAT AB

Sweden, Helsingborg

49.00

IntraVAT OY

Finland, Helsinki

49.00

IntraVAT Limited

UK, Dews-bury

49.00

2024

2023

DKK’000

DKK’000

(35,618)

(43,003)

4,117

7,385

(31,501)

(35,618)

2,805

2,428

(34,306)

(38,046)

(31,501)

(35,618)

14

.

Deferred tax

Changes during the year Beginning of year Recognized in the income statement End of the year Deferred tax has been recognized in the balance sheet as follows Deferred tax assets Deferred tax liabilities

As of 31.12.2024, the Group has recognised a tax asset of DKK 2,805 thousand. The deferred tax asset is only useable to the specific legal entity. The tax asset is composed of tax loss carryforwards and unutilised tax deductions consisting of timing differences. Management believes that the tax asset is likely to be offset against future taxable income within the next 2-3 years.

35

Deferred tax assets

Prepayments

Prepayments comprise costs incurred such as rent, insurance premiums, subscription fees, and freight forwarding costs relating to the next financial year.

16

.

Contributed capital

Class A shares

Par value

Nominal value

Number

DKK’000

DKK’000

120

250

30.000

120

17

.

30.000

Recorded

Share of

Nominal value

par value

contributed capital

Number

DKK’000

DKK’000

%

Class A shares

12

250

3,000

10,00

Holding of treasury shares

12

250

3,000

10,00

Treasury shares

18

.

Other provisions

Other provisions include provisions for payment of losses expected to incur in pending cases. Once the cases are settled, the outcome and timing will remain uncertain by their very nature, but all liabilities are assessed to be paid in the next year. The liabilities include legal costs, such as legal fees and any damages.

Notes to Con. Fin. State.

15

.

Annual Report

The Group did not capitalise its tax loss carryforward of DKK 29.349 thousand. The tax loss has not been recognised due to uncertainty connected with the time when it can be set off against future taxable income.

19

36

.

Other payables 2024

2023

DKK’000

DKK’000

15,950

16,114

15,950

16,114

Annual Report

Holiday pay obligation

20

Notes to Con. Fin. State.

.

Non-current liabilities other than provisions Due within

Due within

Due after more

Outstanding

12 months

12 months

than 12 months

after 5 years

2024

2023

2024

2024

DKK’000

DKK’000

DKK’000

DKK’000

Mortgage debts

3,614

3,541

53,824

31,021

Other payables

345

161

15,950

15,606

3,959

3,702

69,774

46,627

Other payables include the Company’s holiday pay obligation. The holiday pay obligation falls due as employees leave the labour market. Consequently, the outstanding debt after five years has been estimated based on when the Company’s employees are expected to leave the labour market considering their retirement age.

37

Deferred income

Deferred income relates to revenue cut-off.

.

Change in working capital

Increase/decrease in receivables Increase/decrease in trade payables etc.

23

.

2024

2023

DKK’000

DKK’000

(141,089)

243,493

131,891

(94,999)

(9,198)

148,494

Notes to Con. Fin. State.

22

Derivative financial instruments

All forward exchange contracts expired in the financial year.

24

.

Fair value information

Fair value end of year

Annual Report

21

.

Financial

Other

instruments

investments

DKK’000

DKK’000

0

76

25

38

.

Unrecognized rental and lease commitments

Annual Report

Total liabilities under rental or lease agreements until maturity

2023

DKK’000

DKK’000

172,300

210,000

Liabilities under rental or lease agreements until maturity can be divided into liabilities under rental agreements of DKK 105,100 thousand (2023: DKK 117,000 thousand) and liabilities under lease agreements of DKK 67,200 thousand (2023: DKK 94,000 thousand).

26

.

Notes to Con. Fin. State.

2024

Contingent liabilities 2024

2023

DKK’000

DKK’000

Recourse and non-recourse guarantee commitments

82,000

82,600

Contingent liabilities in total

82,000

82,600

27

.

Assets charged and collateral

The bank and mortgage debts of the LEMAN Group are secured by way of mortgage deeds registered on its properties of DKK 75,400 thousand. The carrying amount is DKK 70,000 thousand.

The group has signed letter of support for some of it’s subsidiaries to provide the financial support for a period of at least 12 months after the 31. December 2024.

29

.

Subsidiaries Registered in

Corporate form

Ownership %

Denmark, Greve

A/S

100

LEMAN U.S.A. Inc.

USA, Sturtevant

Inc.

100

LEMAN OY

Finland, Helsinki

OY

100

LEMAN AS

Norway, Drammen

AS

100

LEMAN AB

Sweden, Helsingborg

AB

100

England, Bradford

Ltd.

100

LEMAN China Co., Ltd.

China, Shanghai

Ltd.

100

LEMAN Taiwan Co., Ltd.

Taipei, Taiwan

Ltd.

100

LEMAN ehf.

Iceland

Ehf.

100

LEMAN Company Limited

Vietnam

Ltd.

99.0

Mexico

CV

100

Switzerland

AG

100

LEMAN A/S

LEMAN Internation Transport Limited

LEMAN International Transport and Logistics Sa de CV Nauta AG

39

Only non-arm’s-length related party transactions are disclosed in the annual report. No such transactions were conducted in the financial year.

Annual Report

Non-arm’s length related party transactions

Notes to Con. Fin. State.

28

.

40

Parent income statement for 2024 2024

2023

DKK’000

DKK’000

Other operating income

14,221

15,225

Other external expenses

(1,936)

(2,051)

Property costs

(1,290)

(1,498)

Gross profit/(loss)

10,995

11,676

(5,191)

(5,218)

5,804

6,458

(66,995)

(71,371)

231

0

Annual Report

Notes

Depreciation, amortization, and impairment losses

1

Parent Income Statem.

Operating profit/(loss)

Income from investments in group enterprises Income from investments in associates Other financial income

2

682

2,705

Other financial expenses

3

(1,860)

(1,864)

(62,138)

(64,072)

Profit/(loss) before tax

Tax on profit/(loss) for the year

4

(1,006)

(1,398)

Profit/(loss) for the year

5

(63,144)

(65,470)

Parent balance sheet 2024

2023

DKK’000

DKK’000

Land and buildings

207,812

213,003

Property, plant, and equipment in progress

70,781

29,730

278,593

242,733

278,127

330,390

268

0

33,499

33,499

311,894

363,889

590,487

606,622

Receivables from group enterprises

29,405

53,043

Tax receivable

3,982

0

0

10,185

33,387

63,228

236

538

Current assets

33,623

63,766

Assets

624,110

670,388

Notes

Property, plant, and equipment

6

Investments in group enterprises Investments in associates Other investments Financial assets Fixed assets

Joint taxation contribution receivable Receivables

Cash

7

Parent Balance Sheet

Assets

Annual Report

41

at 31.12.2024

42

Parent balance sheet at 31.12.2024

Equity and liabilities

2024

2023

DKK’000

DKK’000

Contributed capital

30,000

30,000

Reserve for net revaluation according to the equity method

228,686

300,205

Retained earnings

264,962

241,355

Equity

523,648

571,560

26,620

27,288

Provisions

26,620

27,288

Mortgage debt

53,824

57,438

Parent Balance Sheet

Annual Report

Notes

Deferred tax

8

Non-current liabilities other than provisions

9

53,824

57,438

Current portion of long-term liabilities other than provisions

9

3,614

3,540

16,127

0

0

9,700

277

862

Current liabilities other than provisions

20,018

14,102

Liabilities other than provisions

73,842

71,540

Equity and liabilities

624,110

670,388

Payables to group entrprises Tax payable Other payables

Employees

10

Contingent liabilities

11

Assets charged and collateral

12

Related parties with controlling interest

13

Non-arm’s length related party transactions

14

Contributed capital DKK’000

Reserve for net Revaluation according to the equity mentod DKK’000

Retained earnings DKK’000

Total DKK’ 000

30,000

300,205

241,355

571,560

Effect of divestments of enti-ties etc.

0

(347)

347

0

Exchange rate adjustments

0

(2,140)

0

(2,140)

Value adjustments

0

47

(47)

0

Group contributions etc.

0

0

19,456

19,456

Other entries on equity

0

(2,084)

0

(2.084)

Profit/(loss) for the year

0

(66,995)

3,851

(63,144)

30,000

228,686

264,962

523,648

Equity beginning of year

Equity end of year

Parent Stat. of Changes

Annual Report

43

Parent statement of changes in equity for 2024

Notess to Par. Fin. State.

Annual Report

44

Notes to parent financial statements

2023

DKK’000

DKK’000

5,191

5,218

5,191

5,218

2024

2023

DKK’000

DKK’000

Financial income from group enterprises

118

2,117

Other Interest Income

240

0

Fair value adjustment

324

588

682

2,705

Depreciation of property, plant, and equipment

2.

Other financial income

45

2024

Other interest income also consists of exchange gains.

3.

Other financial expenses

2024

2023

DKK’000

DKK’000

Other interest expenses

1,841

1,835

Other financial expenses

19

29

1,860

1,864

Annual Report

Depreciation, amortization, and impairment losses

Notess to Par. Fin. State.

1.

46

4.

Tax on profit/loss for the year

2024

2023

DKK’000

DKK’000

1,671

2,233

(668)

(1,337)

3

502

1,006

1,398

2024

2023

DKK’000

DKK’000

(63,144)

(65,470)

(63,144)

(65,470)

Current tax

Notess to Par. Fin. State.

Annual Report

Change in deferred tax Adjustment concerning previous years

5.

Proposed distribution of profit and loss

Retained earnings

6.

Property, plant, and equipment

Proberty, plant and Land and buildings

equitment in progress

DKK’000

DKK’000

284,886

29,730

0

41,051

Cost end of year

284,886

70,781

Depreciation and impairment losses beginning of year

(71,883)

0

(5,191)

0

Depreciation and impairment losses end of year

(77,074)

0

Carrying amount end of year

207,812

70,781

Cost beginning of year Additions

Depreciation for the year

group enterprises

in associates

investments

DKK’000

DKK’000

DKK’000

30,185

0

33,499

Transfers

(98)

268

0

Additions

19,456

0

0

Disposals

(102)

0

0

Cost end of year

49,441

268

33,499

Revaluations at the beginning of year

300,205

0

0

Exchange rate adjustments

(2,140)

0

0

(170)

0

0

Adjustments on equity

(2,084)

0

0

Share of profit/loss for the year

(66,995)

0

0

47

0

0

(177)

0

0

Revaluations end of year

228,686

0

0

Carrying amount end of year

278,127

268

33,499

Registered in

Corporate form

Ownership %

IntraVAT ApS

Denmark, Greve

ApS

49.00

IntraVAT AS

Norway, Oslo

AS

49.00

IntraVAT AB

Sweden, Helsingborg

AB

49.00

IntraVAT OY

Finland, Helsinki

OY

49.00

IntraVAT Limited

UK, Dews-bury

Ltd

49.00

Financial assets

Cost beginning of year

Transfers

Other adjustments Reversal regarding disposals

A specification of investments in subsidiaries is evident from the notes to the consolidated financial statements.

Investments in associates

47

Other

Annual Report

Investments

Notess to Par. Fin. State.

7.

Investments in

48 Annual Report Notess to Par. Fin. State.

8.

Deferred tax

2024

2023

DKK’000

DKK’000

Property, plant, and equipment

26,819

27,500

Liabilities other than provisions

(199)

(212)

26,620

27,288

Beginning of year

27,288

28,625

Recognised in the income statement

(668)

(1,337)

End of year

26,620

27,288

Changes during the year

9.

Non-current liabilities other than provisions

Mortgage debts

10

.

Due within 12

Due within 12

Due after more

Outstanding

months

months

than 12 months

after 5 years

2024

2023

2024

2024

DKK’000

DKK’000

DKK’000

DKK’000

3,614

3,540

53,824

40,200

3,614

3,540

53,824

40,200

Employees

The Entity has no employees other than the Executive Board and Board of Directors.

The total amount for management categories DKK 7,585 (2023: DKK 5,175 thousand).

Contingent liabilities

The Entity serves as the administration company in a Danish joint taxation arrangement of the LEMAN Group.

49

11

.

Assets charged and collateral

The bank and mortgage debts of the LEMAN Group are secured by way of mortgage deeds registered on its properties of DKK 75,400 thousand. The carrying amount is DKK 70,000 thousand.

The group has signed letter of support for some of it’s subsidiaries to provide the financial support for a period of at least 12 months after the 31. December 2024.

Collateral provided for group enterprises LEMAN HOLDING A/S has provided parent company guarantees for the following subsidiaries: - LEMAN A/S, Denmark, the guarantee is unlimited to all bank facilities - LEMAN Oy, Finland, the guarantee limted to DKK 1.500 thousand - IntraVAT ApS, Denmark, the guarantee is limited to an account with a credit limit of DKK 500 thousand.

Notess to Par. Fin. State.

12

.

Annual Report

According to the joint taxation provisions of the Danish Corporation Tax Act, the Entity is therefore liable for income taxes etc for the jointly taxed entities, and also for obligations, if any, relating to the withholding of tax on interest, royalties and dividends for these entities.

50

13

.

Related parties with controlling interest

Notess to Par. Fin. State.

Annual Report

La Capite S.A., 10, Rue Nicolas Adames, L-1114 Luxembourg owns all shares in LEMAN HOLDING A/S, thus exercising control.

Philippe Ziegler, Geneva, Switzerland owns 48% of the shares in La Capite S.A. and is the controlling shareholder of the Company.

14

.

Non-arm’s length related party transactions

Only non-arm’s-length related party transactions are disclosed in the annual report.

No such transactions were conducted in the financial year.

51 Annual Report Notess to Par. Fin. State.

“We offer our customers total logistic solutions in strong and seamless partnerships of reliability, security and trust.”

Accounting policies

The accounting policies applied to these consolidated financial statements and parent financial statements are consistent with those applied last year.

Non-comparability The presentation of a few comparative figures has been restated. However, the restatement does neither affect the Company’s results nor its equity.

Apart from the areas mentioned above, the accounting policies applied to these consolidated financial statements and parent financial statements are consistent with those applied last year.

Annual Report

This annual report has been presented in accordance with the provisions of the Danish Financial Statements Act governing reporting class C enterprises (large).

53

Reporting class

Assets are recognised in the balance sheet when it is probable as a result of a prior event that future economic benefits will flow to the Entity, and the value of the asset can be measured reliably.

Liabilities are recognised in the balance sheet when the Entity has a legal or constructive obligation as a result of a prior event, and it is probable that future economic benefits will flow out of the Entity, and the value of the liability can be measured reliably.

On initial recognition, assets and liabilities are measured at cost. Measurement subsequent to initial recognition is effected as described below for each financial statement item.

Anticipated risks and losses that arise before the time of presentation of the annual report and that confirm or invalidate affairs and conditions existing at the balance sheet date are considered at recognition and measurement.

Income is recognised in the income statement when earned, whereas costs are recognised by the amounts attributable to this financial year.

Consolidated financial statements The consolidated financial statements comprise the Parent and the group enterprises (subsidiaries) that are controlled by the Parent.

Control is achieved by the Parent, either directly or indirectly, holding more than 50% of the voting rights or in any other way possibly or actually exercising controlling influence.

Accounting Policies

Recognition and measurement

54

Basis of consolidation The consolidated financial statements are prepared on the basis of the financial statements of the Parent and its subsidiaries. The consolidated financial statements are prepared by combining uniform items. On consolidation, intra-group income and expenses, intra-group accounts and dividends as well as profits and losses on transactions between the consolidated enterprises are eliminated. The financial statements used for consolidation have been prepared applying the Group’s accounting policies.

Annual Report

Subsidiaries’ financial statement items are recognised in full in the consolidated financial statements.

Investments in subsidiaries are offset at the pro rata share of such subsidiaries’ net assets at the takeover date, with net assets having been calculated at fair value.

Business combinations

Accounting Policies

Newly acquired or newly established enterprises are recognised in the financial statements from the time of acquiring or establishing such enterprises. Divested or wound-up enterprises are recognised in the income statement up to the time of their divestment or winding-up.

The purchase method is applied at the acquisition of new enterprises, under which identifiable assets and liabilities of these enterprises are measured at fair value at the acquisition date. Provisions for costs of restructuring of the enterprise acquired are only made in so far as such restructuring was decided by the enterprise acquired prior to acquisition. Allowance is made for the tax effect of restatements.

Positive differences in amount (goodwill) between cost of the acquired share and fair value of the assets and liabilities taken over are recognised under intangible assets, and they are amortised systematically over the income statement based on an individual assessment of their useful lives. If the useful life cannot be estimated reliably, it is fixed at ten years. Useful life is reassessed annually.

Foreign currency translation On initial recognition, foreign currency transactions are translated applying the exchange rate at the Transaction date. Receivables, payables and other monetary items denominated in foreign currencies that have not been settled at the balance sheet date are translated using the exchange rate at the balance sheet date. Exchange differences that arise between the rate at the transaction date and the rate in effect at the payment date, or the rate at the balance sheet date, are recognised in the income statement as financial income or financial expenses. Property, plant and equipment, intangible assets, inventories and other non-monetary assets that have been purchased in foreign currencies are translated using historical rates.

Exchange adjustments of outstanding accounts with independent foreign subsidiaries, which are considered part of the total investment in the subsidiary in question, are recognised directly in the translation reserve in equity.

When recognising foreign subsidiaries that are integral entities, monetary assets and liabilities are translated using the exchange rates at the balance sheet date. Non-monetary assets and liabilities are translated at the exchange rate at the time of acquisition or the time of any subsequent revaluation or writedown. The items of the income statement are translated at the average rates of the months; however, items deriving from non-monetary assets and liabilities are translated using the historical rates applicable to the relevant non-monetary items.

Annual Report

exchange rates for the months that do not significantly deviate from the rates at the transaction date. Balance sheet items are translated using the exchange rates at the balance sheet date. Goodwill is considered belonging to the independent foreign entity and is translated using the exchange rate at the balance sheet date. Exchange differences arising out of the translation of foreign subsidiaries’ equity at the beginning of the year at the balance sheet date exchange rates and out of the translation of income statements from average rates to the exchange rates at the balance sheet date are recognised directly in the translation reserve in equity.

55

When recognising foreign subsidiaries and associates that are independent entities, the income statements are translated at average

On initial recognition in the balance sheet, derivative financial instruments are measured at cost and subsequently at fair value. Derivative financial instruments are recognised as other receivables or other payables.

Changes in the fair value of derivative financial instruments classified as and complying with the requirements for hedging the fair value of a recognised asset or a recognised liability are recorded in the income statement together with changes in the value of the hedged asset or the hedged liability.

For derivative financial instruments that do not comply with the requirements for being treated as hedging instruments, changes in fair value are recognised currently in the income statement as financial income or financial expenses.

Income statement Revenue Revenue is recognised in the income statement when the agreed freight forwarding services are considered delivered, and control of the goods has been passed either to the customer or another logistics supplier. Revenue is recognised net of VAT, duties and sales discounts and is measured at fair value of the consideration fixed.

Accounting Policies

Derivative financial instruments

Accounting Policies

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Segment information Operation segments The primary activities of LEMAN comprise transportation and logistics to and from foreign destinations on behalf of Danish and foreign customers. Business segments are defined by the operational and management structure of LEMAN. The services rendered by the Company comprise road, air&sea and logistics services.

Geographical segments LEMAN business is based on transactions in our global network rather than in individual countries or regions, the transportations are arranged through an extended network of cooperation among agents. Revenue are allocated to the geographical areas according to the country in which the customer is invoiced and the consolidated entity is based.

Other operating income Other operating income comprises income of a secondary nature as viewed in relation to the Entity’s primary activities, including profit from the sale of intangible assets and property, plant and equipment, and salary refunds.

Cost of sales Cost of sales comprises goods consumed in the financial year measured at cost.

Other external expenses Other external expenses include expenses relating to the Entity’s ordinary activities, including expenses for premises, stationery and office supplies, marketing costs, etc. This item also includes writedowns of receivables recognised in current assets.

Property costs Property costs include costs incurred to operate the Entity’s properties in the financial year, including repair and maintenance costs, property tax and electricity, water and heating, which are not charged directly from the lessee.

Staff costs Staff costs comprise wages and salaries, and social security contributions, pension contributions, etc for entity staff.

Depreciation, amortization, and impairment losses Depreciation, amortisation and impairment losses relating to property, plant and equipment and intangible assets comprise depreciation, amortisation and impairment losses for the financial year, and gains and losses from the sale of intangible assets and property, plant and equipment.

Income from investments in group enterprises Income from investments in group enterprises comprises the pro rata share of the individual enterprises’ profit/loss after full elimination of intra-group profits or losses.

Other financial expenses Other financial expenses comprise interest expenses, including interest expenses on payables to group enterprises, net capital or exchange losses on securities, payables and transactions in foreign currencies, amortisation of financial liabilities as well as tax surcharge under the Danish Tax Prepayment Scheme etc.

Tax on profit/loss for the year Tax for the year, which consists of current tax for the year and changes in deferred tax, is recognised in the income statement by the portion attributable to the profit for the year and recognised directly in equity by the portion attributable to entries directly in equity.

The Parent, LEMAN HOLDING A/S, is jointly taxed with all Danish subsidiaries. The current Danish income tax is allocated among the jointly taxed entities proportionally to their taxable income (full allocation with refund concerning tax losses).

Balance sheet Goodwill Goodwill is amortised straight-line over its estimated useful life, which is fixed based on the experience gained by Management for each business area. The amortisation period is ten years based on acquired market positions and a long-term earnings profile.

Goodwill is written down to the lower of recoverable amount and carrying amount.

Intellectual property rights etc.

Intellectual property rights comprise development projects in progress with related intellectual property rights, acquired intellectual property rights and prepayments for intangible assets.

Development projects on clearly defined and identifiable products and processes, for which the technical rate of utilisation, adequate resources and a potential future market or development opportunity in the enterprise can be established, and where the intention is to manufacture, market or apply the product or process in question, are recognised as intangible assets.

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Other financial income Other financial income comprises dividends etc received on other investments, interest income, including interest income on receivables from group enterprises, net capital or exchange gains on securities, payables and transactions in foreign currencies, amortisation of financial assets as well as tax relief under the Danish Tax Prepayment Scheme etc.

Accounting Policies

Income from investments in associates In the parent financial statements income from investments in associates comprises dividends etc. received from the individual associates in the financial year.

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Other development costs are recognised as costs in the income statement as incurred. When recognising development projects as intangi-

ble assets, an amount equalling the costs incurred less deferred tax is taken to equity under reserve for development costs, which is reduced as the development projects are amortised and written down.

The cost of development projects comprises costs such as salaries and amortisation that are directly and indirectly attributable to the development projects.

Indirect production costs in the form of indirectly attributable staff costs, amortisation of intangible assets and depreciation on property, plant and equipment used in the development process are recognised in cost based on time spent on each project.

Completed development projects are amortised on a straight-line basis using their estimated useful lives which are determined based on a specific assessment of each development project. If the useful life cannot be estimated reliably, it is fixed at ten years. For development projects protected by intellectual property rights, the maximum period of amortisation is the remaining duration of the relevant rights. The amortisation periods used are three to ten years.

Accounting Policies

Intellectual property rights etc are written down to the lower of recoverable amount and carrying amount.

Property, plant, and equipment Land and buildings, plant and machinery as well as other fixtures and fittings, tools and equipment are measured at cost less accumulated depreciation and impairment losses. Land is not depreciated.

Cost comprises the acquisition price, costs directly attributable to the acquisition and preparation costs of the asset until the time when it is ready to be put into operation. For self-manufactured assets, cost comprises direct and indirect costs of materials, components, subsuppliers and labour costs.

The basis of depreciation is cost less estimated residual value after the end of useful life. Straight-line depreciation is made on the basis of the following estimated useful lives of the assets: Useful life Buildings:

Plant and machinery: Other fixtures and fittings, tools, and equitment:

39-50 years 5 years 3-8 years

Estimated useful lives and residual values are reassessed annually.

Items of property, plant and equipment are written down to the lower of recoverable amount and carrying amount.

Investments in group enterprises are written down to the lower of recoverable amount and carrying amount.

Investments in associates Investments in associates are measured at cost in the parent financial statements. Investments are written down to the lower of recoverable amount and carrying amount.

Investments in associates fall within the definitions of both participating interests and associates, yet in these consolidated financial statements they have been presented as investments in associates because this designation reflects more accurately the Group’s involvement in the relevant entities.

Receivables Receivables are measured at amortised cost, usually equalling nominal value, less writedowns for bad and doubtful debts.

Other investments Other investments are measured at the lower of cost and net realisable value.

Deferred tax Deferred tax is recognised on all temporary differences between the carrying amount and the tax-based value of assets and liabilities, for which the tax-based value is calculated based on the planned use of each asset. However, no deferred tax is recognised for amortisation of goodwill disallowed for tax purposes and temporary differences arising at the date of acquisition that do not result from a business combination and that do not have any effect on profit or loss or on taxable income.

Deferred tax assets, including the tax base of tax loss carryforwards, are recognised in the balance sheet at their estimated realisable value, either as a set-off against deferred tax liabilities or as net tax assets.

Tax payable or receivable Current tax payable or receivable is recognised in the balance sheet, stated as tax computed on this year’s taxable income, adjusted for prepaid tax.

Annual Report

Goodwill is calculated as the difference between cost of the investments and fair value of the pro rata share of assets and liabilities acquired. Goodwill is amortised straigth-line over its estimated useful life, which is fixed based on the experience gained by Management for each business area. The amortisation period used is ten years.

Accounting Policies

Investments in group enterprises are recognised and measured in the parent financial statements according to the equity method. This means that investments are measured at the pro rata share of the enterprises’ equity value plus unamortised goodwill and plus or minus unrealised intra-group profits or losses. Reference is made to the above section on business combinations for more details about the accounting policies applied to acquisitions of investments in group enterprises.

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Investments in group enterprises

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Joint taxation contributions payable or receivable Current joint taxation contributions payable or receivable are recognised in the balance sheet, stated as tax computed on this year’s taxable income, adjusted for prepaid tax. For tax losses, joint taxation contributions receivable are only recognised if such losses are expected to be used under the joint taxation arrangement.

Annual Report

Prepayments Prepayments comprise incurred costs relating to subsequent financial years. Prepayments are measured at cost.

Other investments (current assets) Other current asset investments comprise listed securities measured at fair value (market price) at the balance sheet date, and unlisted investments measured at the lower of cost and net realisable value.

Accounting Policies

Cash Cash comprises cash in hand and bank deposits.

Treasury shares Acquisition and selling prices and dividends of treasury shares are classified directly as equity under retained earnings. Gains and losses from sale are not recognised in the income statement. Capital reduction by cancellation of treasury shares reduces the contributed capital by an amount corresponding to their nominal value.

Other provisions Other provisions are recognised and measured as the best estimate of the expenses required to settle the liabilities at the balance sheet date.

Mortgage debt At the time of borrowing, mortgage debt to mortgage credit institutions is measured at cost which corresponds to the proceeds received less transaction costs incurred. Mortgage debt is subsequently measured at amortised cost. This means that the difference between the proceeds at the time of borrowing and the nominal repayable amount of the loan is recognised in the income statement as a financial expense over the term of the loan applying the effective interest method.

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Operating leases Lease payments on operating leases are recognised on a straight-line basis in the income statement over the term of the lease.

Prepayments received from customers Prepayments received from customers comprise amounts received from customers prior to delivery of the goods agreed or completion of the service agreed.

Deferred income Deferred income comprises income received for recognition in subsequent financial years. Deferred income is measured at cost.

Annual Report

Other financial liabilities Other financial liabilities are measured at amortised cost, which usually corresponds to nominal value.

Cash flows from operating activities are presented using the indirect method and calculated as the operating profit/loss adjusted for noncash operating items, working capital changes and taxes paid.

Cash flows from investing activities comprise payments in connection with acquisition and divestment of enterprises, activities and fixed asset investments, and purchase, development, improvement and sale, etc of intangible assets and property, plant and equipment, including acquisition of assets held under finance leases.

Cash flows from financing activities comprise changes in the size or composition of the contributed capital and related costs, and the raising of loans, inception of finance leases, repayments of interest-bearing debt, purchase of treasury shares and payment of dividend.

Cash and cash equivalents comprise cash and short-term securities with an insignificant price risk less short term bank loans.

Accounting Policies

Cash flow statement The cash flow statement shows cash flows from operating, investing and financing activities, and cash and cash equivalents at the beginning and the end of the financial year.

Founded in Copenhagen in 1900, LEMAN has evolved from a pioneering startup to a global logistics company.

Our century-long journey of innovation and commitment to excellence ensures we meet today’s demands with tailored, sustainable solutions. Bridging tradition with modern technology, LEMAN remains your reliable partner in the ever-changing landscape of logistics.

LEMAN HOLDING A/S Ventrupvvej 6 DK-2670 Greve Denmark CVR: 36700513