PGS Denmark ApS

Description of key activities of the companyLike previous years, the activities are investing in group enterprises. The activities of the group are investing in production and sale of wooden packaging as well as manufacturing and selling wood chips. The company's activity has expanded in 2024/2025, after which the company provides management- and administrative services to other companies in the Danish part of the PGS-group.

Development in activities and financial mattersThe gross profit for the year totals 7.357 T.DKK against -1.005 T.DKK last year. Profit or loss from ordinary activities after tax totals 11.197 T. DKK against -10.379 T.DKK last year.

The result of investment in group enterprises has been affected by profit on sale of fixed assets in subsidaries at 37.931 T.DKK.

The financial year has been affected by restructuring of the organization, implementing of a new ERP/financial system and lack of transparency in the systems.

Development for the year relative to the expectationsIt the annual report 2024, a projected EBITDA for 2024/25 at a level of approximately 3-4 mio. DKK were announced. The EBITDA for 2024/25 amounts to 1.480 T.DKK and the actual profit or loss from ordinary activities after tax amounts to DKK 11.197.

The primary reason for the deviation between the projected and actual EBITDA is mainly missing revenue for the year in the subsidiaries versus plan due to missing transparency in the order situation.…

Uncertainties connected with recognition or measurementGoodwill is included in the recognition of equity investments with 61.428 TDKK. The value of goodwill depends on future events and the ability to estimate these, which is why there is inherently uncertainty about the assumptions and estimates used to assess the need for write down of goodwill. Management believes that there is no need for write down of the recognized goodwill. Please refer to note 2 of the annual report.

2.

Uncertainties concerning recognition and measurementThe company has recognised goodwill in connection with the purchase of equity interests. Management has performed an impairment test of the recognised goodwill. Impairment testing is based on a cashflowmodel with discounted cashflow for a budgetperiod and a terminal period. The WACC is set a 9,5%. As the value of goodwill generally depends of future events and the abilty to estimate these, there is an inherent uncertainty about the assumptions and estimates included in the impairment test, but management believes that there is no need to write down the recognised goodwill.

Events occurring after the end of the financial yearSince the balance sheet date, no events have occurred that alter the assessment of the annual report.

14.Contractual obligations and contingencies, etc.

Lease liabilities:…