Axcel VII K/S Annual report 2024
Sundkrogsgade 5
2100 København Ø
CVR No. 43533231
The Annual General Meeting adopted the
annual report on 06.02.2025
Jesper Frydensberg Rasmussen
Chairman of the General Meeting
Axcel VII K/S | Contents 1
Contents
Fund details 2
Statement by the General Partner on the annual report 3
Management commentary 4
Independent auditor's report 10
Statement of comprehensive income 13
Statement of financial position as at 31.12.2024 14
Statement of changes in net assets attributable to the Limited Partners 16
Statement of cash flows 17
Table of notes 18
Notes to the financial statements 19
Appendix 1 - Supplementary report on disclosures in accordance with
the SFDR
33
Axcel VII K/S | Fund details 2
Fund details
Fund
Axcel VII K/S
Sundkrogsgade 5
2100 København Ø
Business Registration No.: 43533231
Registered office: København
Financial period: - 01.01.2024 31.12.2024
General Partner
Axcel VII GP ApS
Board of Directors in Axcel VII GP ApS
Christian Gymos Schmidt-Jacobsen, Chairman
Jacob Høeg Madsen
Mads Dreyer Laursen
Fund Manager
The General Partner is Axcel VII GP ApS and the Fund Manager is Axcel Management A/S, FT no. 23101
Depositary
Intertrust Depositary Services (Denmark) A/S
Sundkrogsgade 21
2100 København Ø
Auditors
Deloitte Statsautoriseret Revisionspartnerselskab
Weidekampsgade 6
2300 Copenhagen S
Denmark
Axcel VII K/S | Statement by the General Partner on the annual report 3
Statement by the General Partner on
the annual report
The Board of Directors in Axcel VII GP ApS has today considered and approved the annual report of Axcel VII K/S
(“the Fund”) for the financial year 01.01.2024 – 31.12.2024.
The financial statements are prepared in accordance with International Financial Reporting Standards as adopted
by the EU and additional requirements of the Danish Financial Statements Act.
In our opinion, the financial statements give a true and fair view of the Fund’s financial position at 31.12.2024 and
of the results of its operations and cash flows for the financial year 01.01.2024 – 31.12.2024.
In our opinion, the management commentary contains a fair review of the development of the Fund’s business
and financial matters, the results for the year and of the Fund’s financial position as a whole, together with a
description of the principal risks and uncertainties that the Fund faces
Furthermore, the supplementary report has been prepared in accordance with the Sustainable Finance
Disclosure Regulation (SFDR) and contains a fair review of the affairs and conditions referred to therein.
We recommend the annual report for adoption at the Annual General Meeting.
Copenhagen, 05.02.2025
Board of Directors in Axcel VII GP ApS
Christian Gymos Schmidt-Jacobsen
Chairman
Jacob Høeg Madsen
Member
Mads Dreyer Laursen
Member
Axcel VII K/S | Management commentary 4
Management commentary
Financial highlights
2024
EUR'000
2022/23
EUR'000
Key figures
Operating profit/(loss) (EBIT) 49,924 (14,287)
Increase / (decrease) in net assets attributable to Limited Partners 49,924 (14,287)
Net Assets attributable to Limited Partners 231,778 (14,287)
Total Assets 276,812 106,261
Ratios
Return on equity (%) 45.91 (200.00)
Financial highlights are defined and calculated in accordance with “Recommendations & Ratios” issued by the
Danish Society of Financial Analysts.
Ratios Calculation formula Ratios reflect
Retun on equity (%) Profit for the year x 100
Average equity
The Fund's profitabilty
Primary activity
Axcel VII K/S is a private fund which invests in mid-size Nordic based companies with the purpose of developing
these commercially. Axcel VII K/S is managed by Axcel Management A/S, a manager under supervision by the
Danish FSA.
Development in activities and finances
Axcel VII K/S was established on 23 September 2022 and is still in the investment period. Axcel VII K/S will co-
invest with other partnerships.
In 2024 Axcel VII K/S closed the investment in Accru Partners and Utilitas and signed the acquisition of Nordic
Tyre Group.
Uncertainty relating to recognition and measurement
When preparing the Fund’s annual report, the General Partner, in accordance with legislative provisions, makes
accounting judgements and estimates which form the basis of the annual report. The accounting judgement and
estimates made by the General Partner are described in note 2 “Material uncertainty related to recognition and
measurement” under accounting policies to which we refer. Such estimates are primarily relating to the meas-
urement of investments in portfolio companies made on the basis of assumptions which the General Partner
considers reasonable and realistic, but which are uncertain by nature.
Unusual circumstances affecting recognition and measurement
Except for the fair value changes on investments, the annual report is not influenced by unusual circumstances.
Axcel VII K/S | Management commentary 5
Profit/loss for the year in relation to expected developments
The result for the year is a gain of approximately EUR 49.9 million compared to a loss of EUR 14.3 million last
year. The result is driven by unrealised gain from valuations of the investments.
The result is in line with management’s expectations.
Information according to the Alternative Investment Fund Managers Directive
According to Article 22 of the Alternative Investment Fund Managers' Directive, Alternative Investment Funds (AIF)
must make certain disclosures to investors in connection with the presentation of financial statements.
During the financial period covered by the financial statements, there have been no significant changes in the
matters below:
The Fund’s Investment strategy;
Valuation principles of the Fund’s investments;
The percentage of the AIF’s assets which are subject to special arrangements arising from their illiquid nature;
New arrangements for managing the Fund’s liquidity;
The Fund's risk profile and the risk management systems implemented by the Fund Manager used to manage
the Fund's risks;
There have been no amendments to the maximum level of leverage which the Fund Manager can use on
behalf of the Fund. Nor has there been any changes in the right to use collateral or any guarantee accordance
with the agreement allowing for the leverage.
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.
Outlook
Forthcoming results of Axcel VII K/S depend on the portfolio companies’ performance and the stock market
development in general for which it is not possible to provide forward-looking statements for the investment
result
Other external expenses are expected to be in the range 16.0-18.0 mEUR in 2025.
Corporate social responsibility
It is the mission of Axcel VII K/S (“Axcel VII” or “the Fund”) to generate returns for its investors by acquiring,
developing, improving and selling medium-sized Nordic companies. Axcel VII has integrated sustainability
considerations into its investment process and approach to active ownership. Axcel VII is classified as an Article 8
fund under the Sustainable Finance Disclosure Regulation (“SFDR”). Axcel VII’s approach to sustainability is guided
by Axcel Management’s (“Axcel”) policies and procedures, specifically the Sustainability Policy and the Investment
and Due Diligence Policy. All policies are approved by Axcel’s Board of Directors.
The Sustainability Policy outlines Axcel’s commitment to respecting human and labour rights, undertaking
initiatives to promote greater environmental responsibility, and working to prevent corruption in all forms as a
Axcel VII K/S | Management commentary 6
signatory to the United Nations Global Compact. Insights into how Axcel addresses its impacts, risks, and
opportunities are described further in the sections ‘Investment Process’, ‘Environmental and social
characteristics’, and ‘Environmental, Social and Governance Performance’.
The Head of Sustainability is responsible for developing and implementing Axcel’s sustainability strategy,
overseen by Axcel’s partners and the Board of Directors. This work includes ensuring appropriate risk
management of Environmental, Social and Governance (“ESG”) factors, including risks related to climate change.
In portfolio companies, sustainability efforts are led by Executive Management and are overseen by the
company’s Board of Directors, where Axcel is always represented. Axcel requires that the boards of directors of
the portfolio companies follow up on all ESG matters which may emerge during i) due diligence, ii) in the course
of audits, iii) in the regular risk reporting cycle, iv) during self-assessments or v) in the course of the day-to-day
business. Progress on sustainability matters in the portfolio is monitored through quarterly reporting to Axcel
and an annual review by the company's Board of Directors.
Data ethics
Axcel VII has not adopted a policy for data ethics, because the Fund does not process large amounts of data itself
or uses algorithms for data analysis. The investments owned by the Fund have very different business areas and
can therefore process data to an extent where it is advisable to adopt a data policy. The data policies of the
investments are then published either in these companies’ consolidated accounts or on their website.
Investment process
Axcel VII integrates sustainability considerations in all stages of its investment process, from sourcing and due
diligence, through active ownership and exit.
Sourcing and Due Diligence
When screening new investment opportunities, Axcel incorporates relevant ESG factors into the general
evaluation criteria. Axcel conducts a thorough ESG due diligence ahead of any new investment with support from
external specialists. The due diligence identifies and assesses ESG impacts, including principal adverse impacts as
defined by the SFDR, as well as ESG risks and opportunities by considering the company’s business model,
industry, and geographic footprint. Climate-related risks and opportunities are assessed using the
recommendations from the Taskforce on Climate-related Financial Disclosures (“TCFD”). The due diligence
focuses on those impacts, risks and opportunities that are deemed most relevant taking into account the
probability of occurrence and the severity of impacts including their potentially irremediable character.
The assessment relies on quantitative data where available, as well as qualitative data in the form of
documentation and interviews with company management. The maturity of the target’s responses to the
identified impacts, risks, and opportunities is assessed. The result is a summary of the type and scale of various
ESG impacts, risks and opportunities, the maturity of the company’s approach to addressing ESG matters, the
willingness of management to improve performance on ESG matters, and the resulting net risk score.
The consultant’s findings serve as input to the overall assessment of an opportunity and guide the future ESG
work with the company to secure a successful exit.
Active ownership
As an active owner, Axcel VII considers ESG factors not only in strategic decisions, but also in day-to-day business
activities to ensure that companies mitigate sustainability driven risks, capture sustainability driven opportunities,
and improve their impact on society and the environment. Axcel VII implements a five-step sustainability
programme in portfolio companies.
Axcel VII K/S | Management commentary 7
(i) Embed sustainability in policies and management systems: requirements include a) Sustainability policy, b)
Code of conduct, c) Supplier code of conduct, d) Data privacy policy, e) Whistleblower scheme f) Commitment to
the UN Global Compact, g) ESG priorities linked to the UN Sustainable Development Goals.
(ii) Identify and assess ESG impacts, risks and opportunities: building on the analyses conducted during due
diligence, companies are asked to assess their ESG impacts, risks, and opportunities in line with the OECD
Guidelines and the UN Guiding Principles. ESG-related risks and opportunities are assessed leveraging
stakeholder insights, the SASB materiality finder and findings from the TCFD assessment.
(iii) Prioritise topics and define ESG priorities: topics are mapped on a materiality matrix. Actions are defined to
address prioritised ESG topics that are aligned with the UN Sustainable Development Goals (SDGs).
(iv) Track implementation and results: companies report quarterly on progress on ESG priorities and ESG KPIs
aligned with the EU Principal Adverse Impact indicators (“PAI indicators”) and the Data Convergence Initiative.
Company boards review and approve ESG efforts on an annual basis.
(v) Communicate on progress: companies report publicly on progress in line with UN Global Compact
requirements.
Exit
The efforts and achievements of Axcel’s companies related to sustainability are highlighted in the exit story. By
working with its companies in a comprehensive and structured manner Axcel seeks to ensure that the
sustainability efforts are well embedded in the organization and continue to flourish long after exit.
Environmental and social characteristics
The Fund promotes the following environmental and social characteristics:
1. Improve ESG Management:
a. As part of Axcel’s 5-step sustainability programme, 100% of portfolio companies are required to embed: a)
Sustainability policy, b) Code of conduct, c) Supplier code of conduct, d) Data privacy policy, e) Whistleblower
scheme f) Commitment to the UN Global Compact, g) ESG priorities linked to the UN Sustainable Development
Goals within one year of ownership
b. Axcel encourages portfolio companies to implement sustainability-linked loans
c. All portfolio companies must measure and report on Axcel’s identified PAI indicators and should seek to reduce
adverse impacts where possible
2. Mitigate Climate Change:
a. All portfolio companies must measure and report on their Scope 1-3 emissions within 18 months of ownership,
and reduce emissions where possible
b. Portfolio companies are encouraged to set Science-Based Targets, with a target of 60% of all companies across
Funds having set an approved target by 2025, and 100% by 2030
3. Increase Diversity, Equity & Inclusion:
a. Portfolio companies across all funds should ensure at least 40% of new hires to leadership of the
underrepresented gender during the holding period
b. Axcel’s portfolio across all funds with boards established after 2021 should ensure at least 40% of independent
Board members of the underrepresented gender
Axcel VII K/S | Management commentary 8
4. Support People & Culture:
a. Portfolio companies should ensure processes to track and report employee satisfaction, sickness absence and
work-related injuries
Environmental performance
Environmental risks
The most significant environmental risks in the Axcel VII portfolio relate to climate change. All companies in the
portfolio directly or indirectly emit GHG emissions through their business activities. Some companies operate in
high-impact climate sectors. Climate change impacts are addressed through portfolio-wide targets as described
below. In addition to climate change, some companies have specific environmental impact areas that they
address in their individual ESG strategies, for example, waste management and circular economy.
Climate change
Axcel has set an approved science-based target and targets that by 2025, 60% of its portfolio companies across
Axcel’s funds will have set approved science-based targets and that by 2030, 100% of portfolio companies will
have done so. Portfolio coverage is measured as the share of invested capital in companies owned for more than
two years.
As per 30 September 2024, six companies in the Axcel portfolio had approved science-based targets representing
46% of invested capital in companies owned for more than two years. None of the companies are owned by Axcel
VII and no companies in Axcel VII have been owned for more than two years.
Axcel is furthermore committed to sourcing at least 85% renewable electricity. During 2024, Axcel sourced 100%
renewable electricity.
As per the requirements set out in the SFDR PAI template (Table 1 of Annex I of the Regulatory Technical
Standards) Axcel VII portfolio companies collect and report data on GHG emissions, energy consumption,
biodiversity, water, and waste. During 2024, a full GHG emissions baseline was defined for one Axcel VII company.
Axcel encourages the remaining companies in Axcel VII to complete their GHG emissions baselines within 18
months of ownership.
Social performance
Social risks
All organizations are at risk of adversely impacting labour and human rights. These risks are identified and
addressed in each company in a systematic manner through the governance requirements described in the next
section including policy requirements that make specific commitments to respect human and labour rights and
the requirement to commit to the United Nations Global Compact’s ten principles. No severe actual human rights
impacts have been identified during the financial year. Focus areas during 2024 have included diversity,
employee wellbeing, and employee safety. Focus on these matters will continue in 2025.
Across companies, the risk of discrimination in company operations is significant and therefore addressed
through portfolio-wide targets on diversity, equity & inclusion. The starting point is to focus on gender diversity
with the aim of encouraging more inclusive workplaces that promote all types of diversity.
Diversity, equity & inclusion
Axcel VII targets that during its ownership period 40% of persons hired into portfolio company leadership teams
will be of the underrepresented gender (measured as the share of women hired into the leadership team, or in
the case men are the underrepresented gender, the share of men hired into the leadership team). Leadership
Axcel VII K/S | Management commentary 9
teams are defined as the CEO, direct reports to the CEO (L1), and direct reports to L1 (L2). Only employees who
have others reporting to them are included. Additions are defined as persons promoted or hired into the
leadership team. The target has applied since January 2022 and is an ongoing target that continues into the
coming years.
As per 30 September 2024:
• 20% of Axcel VII companies have met the target of 40% of additions to leadership teams being of the
underrepresented gender
• 20% of Axcel VII companies have not met the target of 40% of additions to leadership teams being of the
underrepresented gender
• 0% of Axcel VII companies have not made additions to the leadership team
• 0% of Axcel VII companies have at least a 60/40 gender split in leadership team
• 60% of Axcel VII companies did not report on additions to the leadership team, as they have been owned for
less than one year
Axcel targets that 40% of independent board members will be of the underrepresented gender across all boards
established after June 2021.
As per 30 September 2024:
• 35% of independent board members were women in boards established after June 2021 across all Axcel
portfolio companies
• 36% of independent board members were women in Axcel VII boards established after June 2021
• 60% of Axcel VII companies had both genders represented on the Board
As per the requirements set out in the SFDR PAI template (Table 1 of Annex I of the Regulatory Technical
Standards) Axcel VII portfolio companies collect and report on compliance with the OECD Guidelines, the UN
Global Compact, unadjusted gender pay gap, board gender diversity, and exposure to controversial weapons.
Governance performance
Governance risks
All organizations are at risk of incidents of corruption, be it bribery, theft, fraud, or another type. Incidents can
occur within the organization or in its value chain. This risk is addressed through Axcel’s governance
requirements which are implemented in all companies. A status on implementation is provided below.
ESG requirements
As per 30 September 2024:
• 40% of Axcel VII companies had implemented Axcel required ESG policies, commitments, and processes within
one year of ownership
• 60% of Axcel VII companies had not been owned for one year and therefore not in scope of target
In accordance with the requirements set out in the SFDR PAI template (Table 1 of Annex I of the Regulatory
Technical Standards) Axcel VII monitors ESG incidents in its portfolio companies. All companies are required to
implement a whistleblower system and report incidents to Axcel. During 2024 no significant incidents occurred.
Monitoring of ESG incidents and the implementation of required policies and procedures will continue in 2025.
Supplementary report on disclosures in accordance with SFDR
Please refer to statement on the supplementary report provided for the Sustainable Finance Disclosure Regula-
tion (SFDR) on page 34.
Axcel VII K/S | Independent auditor's report 10
Independent auditor's report
To the shareholders of Axcel VII K/S
Opinion
We have audited the financial statements of for the financial period - , which
comprise the statement of comprehensive income, balance sheet, statement of changes in equity, cash flow
statement and notes, including a summary of significant accounting policies. The financial statements are
prepared in accordance with the IFRS Accounting Standards as adopted by the EU and additional requirements of
the Danish Financial Statements Act.
In our opinion, the financial statements give a true and fair view of the Fund’s financial position at and
of the results of its operations and cash flows for the financial period - in accordance with
the IFRS Accounting Standards as adopted by the EU and additional requirements of the Danish Financial
Statements Act.
Axcel VII K/S 01.01.2024 31.12.2024
31.12.2024
01.01.2024 31.12.2024
Basis for opinion
We conducted our audit in accordance with International Standards 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 financial statements" section of this auditor’s
report. We are independent of the Company 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.
General Partner's responsibilities for the financial statements
The General Partner is responsible for the preparation of financial statements that give a true and fair view in
accordance with the IFRS Accounting Standards as adopted by the EU and additional requirements of the Danish
Financial Statements Act, and for such internal control as the General Partner determines is necessary to enable
the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the General Partner is responsible for assessing the Fund’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 in preparing the financial statements unless the General Partner either intends
to liquidate the Fund or to cease operations or has no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. 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 financial statements.
Axcel VII K/S | Independent auditor's report 11
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:
Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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 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 going concern basis of accounting in
preparing the 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 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 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
Entity to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures
in the notes, and whether the financial statements represent the underlying transactions and
events in a manner that gives a true and fair view.
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 and statement on the supplementary report provided for in
accordance with the Sustainable Finance Disclosure Regulation (SFDR)
The General Partner is responsible for the management commentary, as well as for the supplementary report on
disclosures in accordance with the Sustainable Finance Disclosure Regulation (SFDR), hereinafter referred to as
“the supplementary report”.
Our opinion on the financial statements does not cover the management commentary or the supplementary
report, and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the management
commentary and the supplementary report and, in doing so, consider whether the management commentary
and the supplementary report is materially inconsistent with the 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 and the supplementary
Axcel VII K/S | Independent auditor's report 12
report provides the information required under the Danish Financial Statements Act and the Sustainable Finance
Disclosure Regulation respectively.
Based on the work we have performed, we conclude that the management commentary and the supplementary
report is in accordance with the financial statements and has been prepared in accordance with the requirements
of the Danish Financial Statements Act and the Sustainable Finance Disclosure Regulation respectively. We did
not identify any material misstatement of the management commentary or the supplementary report.
Copenhagen, 05.02.2025
Deloitte
Statsautoriseret Revisionspartnerselskab
CVR No. 33963556
Bill Haudal Pedersen
State Authorised Public Accountant
Identification No (MNE) mne30131
Michael Thorø Larsen
State Authorised Public Accountant
Identification No (MNE) mne35823
Axcel VII K/S | Statement of comprehensive income 13
Statement of comprehensive income
Notes
2024
EUR'000
2022/23
EUR'000
Net increase/(decrease) in unrealised gains/(losses) from
financial assets at fair value
3 68,633 0
Operating income/(loss) 68,633 0
Administrative expenses 4 (16,550) (11,126)
Other operating expenses 5 (2,159) (3,161)
Operating expenses (18,709) (14,287)
Operating profit/(loss) (EBIT) 49,924 (14,287)
Increase / (decrease) in net assets attributable to Limited
Partners
49,924 (14,287)
Comprehensive income 49,924 (14,287)
Axcel VII K/S | Statement of financial position as at 31.12.2024 14
Statement of financial position as at
31.12.2024
Assets
Notes
2024
EUR'000
2022/23
EUR'000
Investments in portfolio companies 6 275,751 106,261
Investments 275,751 106,261
Non-current assets 275,751 106,261
Other receivables 105 0
Cash and cash equivalents 956 0
Current assets 1,061 0
Total assets 276,812 106,261
Axcel VII K/S | Statement of financial position as at 31.12.2024 15
Net assets and liabilities
Notes
2024
EUR'000
2022/23
EUR'000
Limited partnership capital 7 196,141 0
Retained earnings 35,637 (14,287)
Net assets attributable to Limited Partners 231,778 (14,287)
Other payables 8 45,034 120,548
Current liabilities 45,034 120,548
Total liabilities 45,034 120,548
Total liabilities and net assets attributable to Limited
Partners
276,812 106,261
Axcel VII K/S | Statement of changes in net assets attributable to the Limited Partners 16
Statement of changes in net assets
attributable to the Limited Partners
Limited
partnership
capital
EUR'000
Retained
earnings
EUR'000
Total
EUR'000
Net assets 01.01.2024 0 (14,287) (14,287)
Contributions from Limited Partners 196,141 0 196,141
Profit/(loss) for the period 0 49,924 49,924
Net assets 31.12.2024 196,141 35,637 231,778
Retained
earnings
EUR'000
Total
EUR'000
Profit/(loss) for the period (14,287) (14,287)
Net assets 31.12.2023 (14,287) (14,287)
At 31.12.2024 carried interest has reduced the fair value of investment, and total net assets, with a total of 7.5
mEUR. In 2024 carried interest has reduced income from portfolio companies with 7.5 mEUR.
Axcel VII K/S | Statement of cash flows 17
Statement of cash flows
Notes
2024
EUR'000
2022/23
EUR'000
Operating profit/(loss) (EBIT) 49,924 (14,287)
Net increase/(decrease) in unrealised gains/(losses) from
financial assets at fair value through profit or loss
(68,633) 0
Change in receivables (105) 0
Change in payables (75,514) 120,548
(94,328) 106,261
Cash flows from operating activities (94,328) 106,261
Acquisition of equity investments 6 (100,857) (106,261)
Cash flows from investing activities (100,857) (106,261)
Cash flows from operating and investing activities (195,185) 0
Contributions from Limited Partners 196,141 0
Cash flows from financing activities 196,141 0
Increase/decrease in cash and cash equivalents 956 0
Cash end of year 956 0
Axcel VII K/S | Table of notes 18
Table of notes
1 Accounting policies 19
2 Significant accounting estimates, assumptions and
uncertainties
22
3 Fair value adjustments 23
4 Administrative expenses 23
5 Other operating expenses 24
6 Investments 24
7 Limited Partnership capital 26
8 Other payables 26
9 Financial instruments 27
10 Financial risk management 27
11 Financial instruments measured at fair value 28
12 Related parties 31
13 Assets charged 31
14 Contingent liabilities 31
15 Events after the balance sheet date 31
16 Authorisation of the annual report for issue 32
Axcel VII K/S | Notes to the financial statements 19
Notes to the financial statements
Accounting policies1
Reporting class
The financial statements are prepared in accordance with the IFRS Accounting Standards as adopted by the EU
and additional disclosure requirements of the Danish Financial Statements Act governing reporting class B
enterprises with addition of a few provisions for reporting class C.
Axcel VII K/S is a Limited Partnership based in Denmark.
The financial period runs from 1 January to 31 December each year. The accounting policies applied to these
financial statements are consistent with those applied last year.
The financial year 2022/2023 comprises the period 23.09.2022 - 31.12.2023. As a result, the financial years 2024
and 2022/2023 are not directly comparable.
The financial statements are presented in Euro (EUR), which is the functional currency of the Fund, as the
commitment from the Limited Partners is in Euro.
The financial statements are presented based on historical costs apart from investments in portfolio companies,
which are measured at fair value. Historical cost is based on the fair value of the consideration given in exchange
for the assets.
The financial statements are presented on the basis of going concern.
Judgements made by the General Partner in the application of IFRS’s that have had significant effects on the
financial statements are disclosed, where applicable, in the relevant notes to the financial statements
Defining materiality
If a line item is not individually material, it is aggregated with other items and notes of a similar nature in the
financial statements or in the notes. There are substantial disclosure requirements throughout the IFRS
Accounting Standards. Disclosures required by the IFRS Accounting Standards are provided unless the
information is considered immaterial to the eco-nomic decision-making of the users of these financial statements
or not applicable.
The most significant accounting policies are set out below.
Report on the exemption of preparation of consolidated financial statements
has omitted to prepare consolidated financial statements under the provisions of IFRS 10,
Consolidated Financial Statements, as the Limited Partnership qualifies as an investment entity. The definition of
an investment entity is an entity that:
Axcel VII K/S
Obtains funds from one or more investors for the purpose of providing those investor(s) with investment
management services;
Axcel VII K/S | Notes to the financial statements 20
Commits to its investor(s) that its business purpose is to invest funds solely for returns from capital
appreciation, investment income or both; and
Measures and evaluates the performance of substantially all its investments on a fair value basis.
In view of the circumstances described below, the General Partner believes that the Fund satisfies the typical
criteria of an investment entity that:
The Fund has more than one investment.
The Fund has more than one investor and its investors are not related parties. Please refer to the description
in note to the financial statements.12
The Fund’s investments take the form of equity instrument or similar investments (portfolio companies).
As a result, the General Partner has decided to apply the exemption rule in IFRS 10 not to prepare consolidated
financial statements where the controlled subsidiaries are consolidated, and instead the controlled subsidiaries
are accounted for at fair value through profit or loss.
Standards and Interpretations not yet in force
All of the new and amended Standards and Interpretations which are relevant to the Fund, and which came into
force with effect for financial years beginning have been applied when preparing the financial
statements.
These Standards have not had an impact on the Fund’s Annual Accounts.
There are no other Standards, Interpretations or amendments to existing Standards that are not yet effective that
would be expected to have an impact on the Fund.
01.01.2024
IFRS 18 amendments are effective for reporting periods beginning on or after 1 January 2027, with earlier
application permitted. IFRS 18 will apply retrospectively.
It is expected that the application of these amendments may have an impact on the Fund's financial statements
in future periods.
There are no other Standards, Interpretations or amendments to existing Standards that are not yet effective that
would be expected to have an impact on the Fund.
Significant accounting judgment and estimates
When preparing the financial statements, the General Partner makes several accounting estimates forming the
basis for the presentation, recognition and measurement of the Fund’s assets and liabilities. The most significant
accounting estimates and assessments are presented in note .2
Recognition and measurement
Financial assets are recognized on the date on which the Fund commits to purchase the investment and are
derecognized on the date on which the Fund commit to sell the investment and the Fund has transferred
substantially all the risks and rewards of its ownership. Financial assets and financial liabilities at fair value
through profit or loss are initially recognized at fair value.
Axcel VII K/S | Notes to the financial statements 21
Liabilities are recognised in the balance sheet when the Fund has a legal or constructive obligation as a result of
an event prior to or on the balance sheet date, and it is probable that future economic benefits will flow out of
the Fund, and the value of the liability can be measured reliably. Liabilities are derecognised in the balance sheet
when it is no longer probable that economic benefits will have to be given up to settle the liability.
On initial recognition, assets and liabilities are measured at cost, however, investment assets are measured at fair
value on initial recognition, typically equalling cost exclusive of directly incurred expenses (direct transaction
costs). Subsequent to initial recognition, all financial assets, and financial liabilities at fair value through profit or
loss are measured at fair value. Gains and losses arising from changes in the fair value of the ‘financial assets or
financial liabilities at fair value through profit or loss’ category are presented in the statement of comprehensive
income within net increase/(decrease) in unrealised gains/(losses) from financial assets and liabilities at fair value
at fair value in the period in which they arise.
Income is recognised in the statement of comprehensive income when earned, whereas costs are recognised by
the amounts attributable to this financial period.
Foreign currency translation
The functional currency reflects the currency in which the Limited Partners have committed themselves to the
Fund as well as the currency in which the Fund pays the Fund Manager for carrying out investment related
services. Investments and loans are carried out in different currencies and hence considered less relevant in
terms of influencing the choice of functional currency. The financial statements of the Fund are presented in the
currency unit , which is the Fund’s functional and presentation currency.
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 statement of comprehensive income as financial income or
financial expenses.
EUR
Statement of comprehensive income
Income from Investments in portfolio companies
Income from investments in portfolio companies comprises gains/losses from divestments, fair value changes
and received dividends and other similar types of returns from the investments.
Realised gains/losses from divestment of investments in portfolio companies are stated as the difference be-
tween the selling price or disposal consideration and the carrying amount of the portfolio companies at the time
of sale or disposal, respectively.
Dividends from investments in portfolio companies are recognised as income when final entitlement to the
dividends is obtained, which is usually at the time of the approval of the dividends on the general meeting.
Administrative expenses and other operating expenses
Administrative expenses and other operating expenses include general costs, investment costs relating to in-
complete investments and management fee to the management company.
Taxation
Under current Danish law governing the Fund, it is not independently taxable because the Fund’s profit/loss for
Axcel VII K/S | Notes to the financial statements 22
the year is included in the Limited Partners’ taxable income.
Balance sheet
Investments in portfolio companies
Investments in portfolio companies comprise equity investments in portfolio companies measured at fair value
through profit or loss.
The fair value of the unlisted investments is determined in accordance with IPEV’s Valuation Guidelines, ac-
cording to which the fair value – depending on the type and maturity of the investment – is determined to be
equal to cost (typically applied for new investments) or multiple-based calculations based on industry bench-
marks.
For further information about the measurement of fair values, please refer to note . 7
Other receivables
Other receivables relate to the Fund’s ordinary business activities.
Other receivables are measured at amortised cost, usually equaling nominal value.
Cash and cash equivalents
Cash comprises cash in bank deposits.
Other financial liabilities
Other financial liabilities comprise accounts payable and other liabilities.
Cash flow statement
The cash flows statement of the Fund is presented using the indirect method and shows cash flows from
operating, investing, and financing activities as well as the Fund’s cash at the beginning and the end of the
financial period.
Cash flows from operating activities are calculated as the operating profit/loss adjusted for non-cash operating
items and working capital changes.
Cash flows from investing activities comprise payments in connection with acquisition and divestment of
investment.
Cash flows from financing activities comprise cash changes in the size or composition of the contributed capital
and cash payment of distributions to the Limited Partners.
Cash comprises cash in bank deposits.
Significant accounting estimates, assumptions, and uncertainties2
Axcel VII K/S invests in portfolio companies, which primarily includes equity investments. The investments are
accounted for at a fair value through profit or loss. When measuring the fair value of the unlisted investments,
the General Partner assesses the stage of the portfolio companies compared to the initial plans at the time of
making the initial investments, future financing requirements, commercialisation possibilities, timing of exit and
possible exit values, including changes in earnings and multiples.
Axcel VII K/S | Notes to the financial statements 23
The fair value of each unlisted group enterprise is determined in accordance with commonly used valuation
principles based on the IPEV Valuation Guidelines, taking into account the assessment of the stage of the en-
terprise as well as its market potential and expected cash flows in order to reflect the fair value of the group
enterprise in the best way possible.
Methods and assumptions for determining the fair value of investments in unlisted portfolio companies are
described in note 6.
Fair value adjustments3
2024
EUR'000
2022/23
EUR'000
Net increase/(decrease) in unrealised gains/(losses) 68,633 0
Fair value adjustment 68,633 0
Administrative expenses4
The Fund had no employees during the financial year.
Administrative expenses include management fee for the period to Axcel VII GP ApS, in accordance with the
Limited Partnership Agreement and management agreement. For further information about management fee,
please refer to note . Also, administrative expenses include fee to administration, audit, advisors, organisation
expenses and other professional fees.
12
2024
EUR'000
2022/23
EUR'000
Management fee 16,548 11,123
General partner fee 2 3
Administrative expenses 16,550 11,126
According to Article 107 of the AIFMD Level 2 Regulation and paragraph 61 section 3 (nos. 5 and 6) of the
Alternative Investment Fund Managers' etc. Act, alternative investment funds must disclose information about
the total remuneration of the entire staff of the Fund Manager and the number of beneficiaries. Furthermore,
remuneration to material risk-takers must be disclosed.
In accordance with section 61 (nos. 5 and 6) of the Alternative Investment Fund Managers' etc. Act, information
regarding salaries paid to employees of the fund manager is disclosed in the Annual Report for 2024 for Axcel
Management A/S, Business Reg. No. 28 30 18 55.
The Fund Manager must also disclose the information necessary to provide an understanding of the risk profile
of the Fund and the measures that the Fund Manager takes to avoid or manage conflicts of interest between the
Fund Manager and the Limited Partners. The Board of Directors has adopted a remuneration policy in order to
ensure that the employees and Management are remunerated according to the Danish Executive Order on
remuneration policy and disclosure requirements on remuneration for managers of alternative investment funds,
etc.
The remuneration policy ensures, among other matters, that the following is applied in relation to remuneration
at the Fund Manager:
Promoting of sound and effective risk management, which does not encourage excessive risk-taking.
Axcel VII K/S | Notes to the financial statements 24
Consistency with the principles regarding the protection of the Limited Partners and measures in order to
avoid conflicts of interest.
No carried interest was paid out by the Fund during the financial period.
Fee paid to auditors appointed at the annual general meeting
2024
EUR'000
2022/23
EUR'000
Fee regarding statutory audit 46 45
46 45
Other operating expenses5
Other operating expenses cover cost for investments that did not materialize, regulatory costs, cost for the fund’s
advisory and investment board and fees to other advisors.
Investments6
Equity
Investments
EUR'000
Fair value at 01.01.2024 106,261
Acquisitions and development costs 100,857
Fair value adjustments 68,633
Fair value at 31.12.2024 275,751
Equity
Investments
EUR'000
Acquisitions and development costs 106,261
Fair value at 31.12.2023 106,261
All investments are unlisted level 3 assets.
The Fund Manager regularly and at least on a quarterly basis reviews the fair value of its portfolio companies in
connection with its non-public reporting to its Limited Partners and in connection with the preparation of the
financial statements.
The Fund’s portfolio companies are not classified as investment companies. They are engaged in doing business
in trading and development, etc. The Fund has no limitations concerning the potential reception of dividends or
having loans etc. repaid from the portfolio companies, apart from the fact that distribution from the portfolio
companies can only take place if it is considered proper and prudent according to the principles in the Company
Laws.
Methods and assumptions for determining fair values in unlisted portfolio companies
The fair value for each unlisted group enterprise is determined based on methods which best reflect the individ-
ual investment’s potential and risk.
In general, the fair value is determined following the IPEV Valuation Guidelines which prescribe the use of
Axcel VII K/S | Notes to the financial statements 25
accepted valuation methods, such as multiple analysis/benchmarking, most recent transaction multiple and
other relevant methods. Upon initial investment, cost of the investment is generally determined to represent the
fair value. In connection with the use of this method, the Fund assesses which multiples are applicable as well as
assesses the determination of the applicable earnings to be used in the calculation of the deemed fair value.
The fair value is determined in the functional currency of the group enterprise, which is then translated to euro at
the exchange rate at the balance sheet date, and any exchange rate adjustment is included in the fair value
adjustment of the investment in profit or loss.
Each portfolio company is owned through a holding structure. The equity interest represents the Fund’s
ownership before dilution of incentive programmes provided to management in the respective portfolio
companies and before any effect of different share classes which may be present in the holding structures, such
as preference shares.
Investments Corporate form Registered in
Equity
interest
%
Profit/(loss)
EUR'000
Equity
EUR'000
Ax VII INV1 Holding III AB
(XPartners)
AB SE 64.39 (3,849) 59,638
Ax VII INV2 Holding III AB
(Progrits)
AB SE 64.39 1,239 1,241
Elcor Holding III ApS
(Elcor)
ApS DK 64.39 N/A N/A
Ax VII UTIL III AB
(Utilitas)
AB SE 64.39 N/A N/A
Ax VII Invest III AB
(Accru Partners)
AB SE 64.39 N/A N/A
The Profit/(loss) and Equity for Investments are from the investments' latest Annual Reports.
The table above only includes the directly owned Holding company within each investment, as it is considered
more accurate to present in the Annual Report as Axcel VII is a Fund. For specification of Group companies within
each investment refer to the Group Annual Reports for the listed Holding companies.
Each investment has been valued using the valuation techniques listed below.
Fair value hierarchy for determining fair value for investments in portfolio companies
IFRS has established a fair value hierarcy for certain assets measured at fair value:
- Quoted prices in active markets for identical instruments (level 1)
- Quoted prices in active markets for similar assets or liabilities or other valuation methods under which all
material inputs are based on observable market data (level 2)
- Valuation techniques under which any material inputs are not based on observable market data (level 3).
The measurement of investments in portfolio companies classified according to level 3 is based on measurement
methods, in which material non-observable inputs are included such as assessment of which method best
reflects fair value, assessment of the performance of each group enterprise, determination of multiples and
future earnings, and assessment of whether a pervasive negative development should result in the recognition of
impair-ment write-downs.
Axcel VII K/S | Notes to the financial statements 26
The fair value of the Fund’s portfolio companies is impacted by the development in applied multiples as well as
expected future earnings and development in each group enterprise. A decrease or increase in the above-
mentioned material non-observable inputs may have a direct effect on the measurement of the portfolio compa-
nies, just as the fair value of the Fund’s portfolio companies is impacted by the development in macroeconomic
conditions.
Consistently with the accounting policies, the Fund regularly adjusts the value of the investments to the best
estimate of fair value. This means that the proportionate share of operating profit or loss for the Companies is
not recognised in profit or loss of the Fund, but rather a fair value adjustment of the investment.
The methods applied by the Fund to measure investments are evident from note to the financial statements. 11
Limited partnership capital7
2024
EUR'000
2022/23
EUR'000
Contributions from Limited partners 196,141 0
Limited Partners’ contribution at end of year 196,141 0
The Limited Partnership is owned by the Limited Partners in proportion to their contributed capital, unless
otherwise agreed between the Limited Partners and the General Partner. At the reporting date no special agree-
ments have been made between the Limited Partners and the General Partner.
Other payables8
2024
EUR'000
2022/23
EUR'000
Bank loans 395 0
Other liabilities 44,639 120,548
Other payables 45,034 120,548
The carrying amount of provisions relates to guarantees issued by the fund for debt in group enterprises which
are expected to be called upon. The recognised amount approximates the fair value of the liabilities. The carrying
amount is due in Q1 2025.
The carrying amount of accrued expenses relates to other payables such as legal fees, auditor’s fees, etc. The
recognised amount approximates the fair value of the liabilities.
Axcel VII K/S | Notes to the financial statements 27
Financial instruments9
Categories of financial instruments:
2024
EUR'000
2022/23
EUR'000
Equity investments 275,751 106,261
Financial assets measured at fair value through profit or loss 275,751 106,261
Other receivables 105 0
Receivables measured at amortised cost 105 0
Other payables 45,034 120,548
Financial liabilities measured at amortised cost 45,034 120,548
The Fund adheres to an investment strategy approved by the Limited Partners. As a result of its investments in
portfolio companies, the Fund is directly exposed to changes in liquidity, credit, interest and currency risks.
Financial risk management10
The General Partner is ultimately responsible for the overall risk management within the Fund but has delegated
the responsibility to the Fund Manager.
The Fund pursues an investment strategy approved by the Limited partners and invests in mid-size Nordic based
companies with the purpose of developing these commercially.
The Fund’s risk management processes includes identification, measurement, monitoring, reporting and miti-
gation of the identified risks to minimize the potential negative effects at fund level.
There are none key financial risk factors and exposures in financial statements besides investments in portfolio
companies.
Financial risk factors
Liquidity risks
Less than 1
year
EUR'000
Between 1
year and 5
years
EUR'000
After 5 years
EUR'000
Total
EUR'000
Provisions for bridge financed investments 42,114 0 0 42,114
Other payables 2,525 0 0 2,525
31.12.2024 44,639 0 0 44,639
Axcel VII K/S | Notes to the financial statements 28
Less than 1
year
EUR'000
Between 1
year and 5
years
EUR'000
After 5 years
EUR'000
Total
EUR'000
Other payables 3 0 0 3
Provisions for bridge financed investments 120,545 0 0 120,545
31.12.2023 120,548 0 0 120,548
Maturity of financial liabilities is specified above divided into timing intervals. The specified amounts represent
the amounts due for payment.
The cash position in the Fund is not bigger than the payables, but the Fund can draw commitment from the
Limited Partners when relevant.
The liquidity risk is considered insignificant. No indication of the limited partners ability to contribute the re-
maining fund commitment occurs.
Credit risks
In some cases, the Fund has receivables from the sale of investments. Typically, the payment is secured by the
buyer depositing the receivable on escrow accounts in accepted credit institutions and, therefore, the credit risk
is considered limited. There are no such receivables at the balance sheet date.
Investments are initially financed through a loan in a holding structure established for each investment. When
the Fund has issued a guarantee for the loan a corresponding liability is recorded in the balance sheet. The Fund
may at any time draw down an amount from the Limited Partners in the Fund to repay the loan and therefore the
Fund is not exposed to a credit risks.
Interest rate risk
The Fund itself does not have access to a credit facility.
Currency risk
Some of the Fund’s investments are exposed to changes in foreign currencies like EUR, DKK, NOK and SEK. The
Fund considers the currency risk as part of the whole investment risk and hence, the Fund does not separately
hedge the currency risk relating to its investments in portfolio companies.
In addition, the Fund is indirectly exposed to currency risks through investments in portfolio companies which
trade in other currencies than their functional currencies and hence, development in exchange rates may
influence income and thereby their determination of fair value of the portfolio companies.
Financial instruments measured at fair value11
The fair values of the individual investments are calculated on the basis of methods that best reflect
individual investment risks, life cycle, and industry conditions. Generally applicable, the fair value is calculated
in accordance with IPEV valuation guidelines and accepted valuation methods, including multiple
analysis/benchmarking or other relevant methods
Axcel VII K/S | Notes to the financial statements 29
The fair value of the investments is measured on a quarterly basis, or more frequently if significant changes
occur.
The Fund Manager has implemented procedures and methodology to ensure that the valuation is carried out
consistently over time and across investments.
Methods applied in and assumptions underlying the determination of fair values of investments
The fair value of each investment and receivables from investments has been estimated by applying methods
that best reflect the risks and the stage of each investment, e.g., assumptions related to power prices, inflation
rates, technical availability and discount rate.
In general, the fair value is determined in accordance with IPEV Valuation Guidelines and generally accepted
valuation techniques, including DCF models, benchmarking or other relevant methods. However, for projects
which are before financial close, cost, including capitalised development costs, is considered the best estimate for
fair value. The valuation approach incorporates all of the factors that market participants would take into account
in pricing a transaction, such as cash flows, discount rates and yield curves assumptions.
Axcel VII K/S owns each portfolio company via separate holding structures for each investment. Axcel VII K/S owns
a share class, which has certain preference rights, but the fair value of the shares owned may also be reduced by
carried interest if the conditions for carried interest are fulfilled. Carried interest is based on a classical European
whole-fund carried interest model with a hurdle rate of 8%.
The valuation of equity investments and receivables from investments is based on the same methods, as equity
investments and receivables from investments are exposed to the same risks.
Fair value hierarchy for financial instruments measured at fair value in the balance sheet
Below, financial instruments measured at fair value are classified using the fair value hierarchy:
Quoted prices in active markets for identical instruments (Level 1)
Quoted prices in active markets for similar assets or liabilities or other valuation methods under which all
material inputs are based on observable market data (Level 2)
Valuation techniques under which any material inputs are not based on observable market data (Level 3)
All investments are classified as Level 3 investments and there have not been any transfers between the levels
during the financial year.
Material unobservable inputs for Level 3
Financial instruments measured at fair value in the balance sheet are based on valuation techniques that include
material unobservable input. Material unobservable inputs mean in this context that the valuation is dependent
on a return requirement that contains a number of components that cannot be observed on trading markets, for
example project-specific risks and illiquidity prices.
Axcel VII K/S | Notes to the financial statements 30
Level 1
EUR'000
Level 2
EUR'000
Level 3
EUR'000
Total
EUR'000
2024
Fair value at 1 January 2024 0 0 106,261 106,261
Fair value adjustments 0 0 68,633 68,633
Additions 0 0 100,857 100,857
Financial assets measured at fair value
through profit or loss
0 0 275,751 275,751
Level 1
EUR'000
Level 2
EUR'000
Level 3
EUR'000
Total
EUR'000
2022/23
Additions 0 0 106,261 106,261
Financial assets measured at fair value
through profit or loss
0 0 106,261 106,261
Material unobservable inputs
Fair value of the assets is determined based on both forward-looking information, current market and
geopolitical conditions, actuals e.g., contributions and distributions etc. as well as status on the specific assets.
Valuations are conducted by an inhouse valuation expert team and approved quarterly in the Valuation
Committee and subsequently by the Board of Directors as part of the quarterly report. A number of material
unobservable input is applied in the valuation and is ongoingly assessed on a on a Fund specific level. An
elaboration of the assessed material unobservable inputs is outlined below.
Financial instruments measured at fair value in the balance sheet are based on valuation techniques that include
material unobservable inputs.
Material unobservable assumptions used in the valuation of unlisted investments in portfolio companies consist
of multiples and future earnings expectations for the portfolio companies. The multiples are derived from looking
at the valuation of comparable business for each investment. As the multiples are multiplied on the expected
earning level of a given investment, the multiple used has a significant effect on the valuation. Management
believes that the multiples applied are on a par with the market for comparable Danish businesses. In addition,
allowance is made for net interest-bearing debt of the portfolio companies when making the valuation.
Range for multiple implied
2024 2022/23
Technology 16 to 16 14 to 14
Business Services and Industries 7 to 12 8 to 10
Sensitivity analysis
The fair value of the Fund’s investments is affected by developments in the applied discount rate and future
earnings expectations for these investments. A decline or increase in the material unobservable inputs stated
above and changes in macroeconomic conditions might have a direct effect on the valuation of the investments.
Due to the nature of the investments the effects are subject to some uncertainty, as other factors can in some
scenarios have a reverse effect. It is the assessment that any reverse effect will be immaterial. The approximately
impact on Fund NAV is calculated by altering one input at a time and rerun the model. No sensitivity analysis has
Axcel VII K/S | Notes to the financial statements 31
been made for investments where management has assessed the cost price as the best estimate of fair value.
Portfolio sensitivity Variable change in input
Approximately
impact on Fund
A change in the average weighted
multiple
+/-10% 122.6 mEUR
(2023: 12.0 mEUR)
The inputs above are considered the most material unobservable input due to the nature of the investments.
Related parties12
Related parties with a controlling interest
No single Limited Partner has control over the Fund, following Limited Partners as holding more than 5% of the
voting rights or nominal value of the contributed capital:
European Investment Fund
Sjätte AP-fonden
Chr. Augustinus Fabrikker Aktieselskab
Transactions with related parties
The General Partner is Axcel VII GP ApS and the Fund Manager is Axcel Management A/S.
In the financial year, the Fund has paid a fee of EUR 2 thousand (2023: 2 thousand) to Axcel VII GP ApS and a
management fee of EUR 16.548 thousand (2023: 11.123 thousand) to Axcel Management A/S. Fee to the GP is
calculated as 15% of the equity of Axcel VII GP ApS. Management fee is calculated as 1.75% of the commitment in
Axcel VII K/S and Axcel VII K/S 2.
Each board member in Axcel VII GP ApS receive an annual remuneration of EUR 2.7 thousand each.
There are no other key relationships which are considered material for the financial statements.
Assets charged13
The Fund’s has no assets charged.
Contingent liabilities14
The fund has an obligation to pay a management fee of 1.75% of the total commitment in the Fund during the
investment period which is initially set to expire on the 6 February 2029. The liability to pay management fee is
considered to be contingent as the fund under certain conditions may discontinue the management agreement
with the Fund Manager.
As of 31 December 2024, Axcel VII K/S has no other contingent liabilities.
No provisions for expected credit loss have been recognised. Refer to note for further.10
Events after the balance sheet date15
No events have occurred after the reporting date, which would materially influence the evaluation of this annual
report.
Axcel VII K/S | Notes to the financial statements 32
Authorisation of the annual report for issue16
On 5 February 2025, the General Partner approved the financial statements. The financial statements will be
presented to the Fund’s Limited Partners for approval at the General Meeting on 6 February 2025.
Axcel VII K/S | Appendix 1 - Supplementary report on disclosures in accordance with the SFDR 33
Appendix 1 - Supplementary report on
disclosures in accordance with the
SFDR
Axcel VII K/S | Appendix 1 - Supplementary report on disclosures in accordance with the SFDR 34
Axcel VII K/S | Appendix 1 - Supplementary report on disclosures in accordance with the SFDR 35
Axcel VII K/S | Appendix 1 - Supplementary report on disclosures in accordance with the SFDR 36
Axcel VII K/S | Appendix 1 - Supplementary report on disclosures in accordance with the SFDR 37
Axcel VII K/S | Appendix 1 - Supplementary report on disclosures in accordance with the SFDR 38
Axcel VII K/S | Appendix 1 - Supplementary report on disclosures in accordance with the SFDR 39
Axcel VII K/S | Appendix 1 - Supplementary report on disclosures in accordance with the SFDR 40
Axcel VII K/S | Appendix 1 - Supplementary report on disclosures in accordance with the SFDR 41
Annual reportAuditor's report on audited financial statementsParsePort XBRL Converter2024-01-012024-12-312023-01-012023-12-31Reporting class C, large enterpriseOpinionBasis for Opinion2025-02-062025-02-052025-02-05435332312024-01-012024-12-31cmn:ConsolidatedMember435332312024-01-012024-12-31435332312023-01-012023-12-31435332312024-12-31435332312023-12-31435332312023-12-31ifrs-full:AdditionalPaidinCapitalMember435332312024-01-012024-12-31ifrs-full:AdditionalPaidinCapitalMember435332312024-12-31ifrs-full:AdditionalPaidinCapitalMember435332312023-12-31ifrs-full:RetainedEarningsMember435332312024-01-012024-12-31ifrs-full:RetainedEarningsMember435332312024-12-31ifrs-full:RetainedEarningsMember435332312023-01-012023-12-31ifrs-full:RetainedEarningsMember435332312024-01-012024-12-31cmn:ConsolidatedMember1435332312024-01-012024-12-31cmn:ConsolidatedMember2435332312024-01-012024-12-31cmn:ConsolidatedMember3435332312024-01-012024-12-31cmn:ConsolidatedMember1435332312024-01-012024-12-31cmn:ConsolidatedMember2iso4217:EUR