Core Viewpoint - The company, Pharma Equity Group A/S, has published corrective information regarding its annual report for 2024 and interim report for H1 2025, following a decision from the Danish Business Authority that necessitated a reassessment of the receivable from Portinho S.A. using an Expected Credit Loss (ECL) model, resulting in significant write-downs of the receivable value [1][2][3]. Group 1: Background and Management's Statement - The Danish Business Authority issued a decision on November 20, 2025, requiring the company to reassess its receivable from Portinho S.A. using an ECL model as per IFRS 9 [2][3]. - The company has prepared a new valuation model that incorporates four probability-weighted outcomes: settlement, legal recovery, insolvency, and total loss [4]. - The Board of Directors and Executive Board have approved the supplementary information related to the annual and interim reports [7]. Group 2: Financial Corrections - The implementation of the ECL model has led to a significant write-down of the receivable as of December 31, 2024, and June 30, 2025, treated as an error correction under IAS 8 [5]. - The total cumulative effect of the correction as of December 31, 2024, is reflected in the annual financial statements for that year [5]. - The receivable from Portinho S.A. was originally valued at DKK 58 million, which has been adjusted to DKK 41.812 million following the correction [27][61]. Group 3: Financial Statements Impact - The updated consolidated income statement shows a loss for the year increasing from DKK 24.422 million to DKK 40.610 million due to the correction [26]. - The total assets have been adjusted from DKK 65.606 million to DKK 49.418 million, reflecting the write-down of the receivable [27]. - The equity has decreased from DKK 48.875 million to DKK 32.687 million as a result of the adjustments [27]. Group 4: ECL Model Details - The ECL model now reflects a probability-weighted approach with the following probabilities assigned: 45% for settlement, 30% for legal recovery, 20% for insolvency, and 5% for total loss [38][66]. - The reassessment of the receivable is considered a significant accounting estimate, with key sources of estimation uncertainty related to the recovery scenarios and probabilities assigned [39][50]. - The correction does not affect the company's legal claim against Portinho S.A. or the underlying contractual arrangements [35].

Group 1 - IFRS 19 is a simplified disclosure standard within the IFRS family aimed at reducing reporting costs for eligible subsidiaries by allowing them to adopt less complex disclosure requirements while maintaining the same recognition and measurement rules [1][2][20]. - The standard is voluntary, meaning eligible companies can choose whether or not to adopt it [2]. Group 2 - Eligible subsidiaries must meet two criteria: they do not have public accountability (i.e., their stocks or bonds are not publicly traded) and their parent company prepares consolidated financial statements in accordance with full IFRS [3]. - The adoption of IFRS 19 can help eliminate the complexity of dual reporting, where subsidiaries maintain two sets of accounts to meet different reporting requirements [4][5][7]. Group 3 - IFRS 19 can significantly reduce the disclosure burden for subsidiaries currently using full IFRS, as it allows them to reduce the amount of information they need to disclose by over 70%, according to IASB assessments [12][21]. - This reduction in disclosure requirements can lead to substantial savings in time and auditing costs for subsidiaries [13][21]. Group 4 - The benefits of adopting IFRS 19 depend on several factors, including the current accounting policies used by the company, the internal financial reporting systems, the number of subsidiaries opting for IFRS 19, and the scale and complexity of the subsidiary's operations [14][16][18]. - Companies may incur one-time transition costs when adopting the new standard, such as adjusting financial reporting systems and identifying new disclosure requirements [18][19]. Group 5 - IFRS 19 serves as a "disclosure relief package" for non-public companies within a group that reports under IFRS, simplifying their reporting process and potentially leading to significant cost savings [20][21].