truefalseBernd PetersenÅrsrapport25578198KPMGDampfærgevej 28DK-2100 København Ø2022-01-012022-12-312021-01-012021-12-312023-04-192023-04-1967382218Tantec A/SIndustrivej 66640LunderskovDKDenmark1982-03-23Koldingwww.tantec.commail@tantec.com KPMG25578198Klaus Rytzmne33205statsaut. revisorDampfærgevej282100CopenhagenDKDenmark4570707760KPMG25578198Stine Inger Pedersenmne47771statsaut. revisorDampfærgevej282100CopenhagenDKDenmark45707077602023-04-19Regnskabsklasse BfalsefalseRevisionspåtegningThe Board of Directors and the Executive Board have today discussed and approved the annual report of Tantec A/S for the financial year 1 January – 31 December 2022.The annual report has been prepared in accordance with the Danish Financial Statements Act.We recommend that the annual report be approved at the annual general meeting.Kolding,Morten ThraneKim Egede SaabyeBernd PetersenChairmanKurt HolmstedDeputy chairmanKim Egede SaabyeMorten ThraneChristen Højgaard NielsenChristian DalumTo the shareholder of Tantec A/SWe conducted our audit in accordance with International Standards on Auditing (ISAs) and the 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 our 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.Copenhagen,495960004251900021923000193260001026000848000266470002234500013870001209000471000433000502000220002800300023965000591500050200002208800018945000-92000-72000231300012090002450000020000000-4633000-2192000774500032580002440000154600010185000480400049200025230007500075000567000259800010752000740200076350006361000422400050360002420002320001210100011629000557800084600002783200022990000211200002680001910003579000031641000407700014530005196800044723000627200005212500013000001300000722000793000011060003300010480002450000020000000265550002424700036100026500027800034300063900060800095000000171800018830001487000145100012705000333400016500018200050000034180007952000856200063090005869000113000810005799000505200019830007720002282100023936000355260002727000062720000521250001300000793000110600010480002000000000199000000000200000000-920002313000-46330002450000002100000000-361800036180000130000072200003300024500000Revaluation reserve Reserve for net revaluation under equity method Revaluation reserve comprises net revaluation of land and buildings adjusted for deferred tax. Net revaluation reserve according to the equity method comprises net revaluation of equity investments in group entities in proportion to cost.3330In our opinion, the financial statements give a true and fair view of the Company's assets, liabilities and financial position at 31 December 2022 and of the results of the Company's operations for the financial year 1 January – 31 December 2022. Further, in our opinion, the Management's review gives a fair review of the matters discussed in the Management's review.We have audited the financial statements of Tantec A/S for the financial year 1 January – 31 December 2022 comprising income statement, balance sheet, statement of changes in equity and notes, including accounting policies. The financial statements are prepared in accordance with the Danish Financial Statements Act. In our opinion, the financial statements give a true and fair view of the Company's assets, liabilities and financial position at 31 December 2022 and of the results of the Company's operations for the financial year 1 January – 31 December 2022 in accordance with the Danish Financial Statements Act.Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the Danish Financial Statements Act and for such internal control that Management 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, Management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting in preparing the financial statements unless Management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.Our objectives are to obtain reasonable assurance as to 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 in Denmark will always detect a material misstatement when it exists. Misstatements may 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 financial statement users made on the basis of these 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 identify and assess the risks of material misstatement of the company 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 Company'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 Company'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 Company to cease to continue as a going concern. evaluate the overall presentation, structure and contents of the financial statements, including the disclosures, 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.Management is responsible for the Management's review. Our opinion on the financial statements does not cover the Management's review, 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's review and, in doing so, consider whether the Management's review is materially inconsistent with the financial statements or our knowledge obtained during the audit, or otherwise appears to be materially misstated. Moreover, it is our responsibility to consider whether the Management's review provides the information required under the Danish Financial Statements Act. Based on the work we have performed, we conclude that the Management's review is in accordance with the financial statements and has been prepared in accordance with the requirements of the Danish Financial Statements Act. We did not identify any material misstatement of the Management's review. The Company's main activities are production and sales of pretreatment plants for plastic and metal.The Company's income statement for 2022 shows a profit of DKK 22,088 thousand as against DKK 18,945 thousand in 2021. Equity in the Company's balance sheet at 31 December 2022 stood at DKK 26,555 thousand as against DKK 24,247 thousand at 31 December 2021.No events materially affecting the assessment of the annual report have occurred after the balance sheet date. The annual report of Tantec A/S for 2022 has been prepared in accordance with the provisions applying to reporting class B entities under the Danish Financial Statements Act with opt-in from higher reporting classes.The accounting policies used in the preparation of the financial statements are consistent with those of last year.Pursuant to section 110(1) of the Danish Financial Statements Act, no consolidated financial statements have been prepared.On initial recognition, transactions denominated in foreign currencies are translated at the exchange rates at the transaction date. Foreign exchange differences arising between the exchange rates at the transaction date and the date of payment are recognised in the income statement as financial income or financial expenses. Receivables, payables and other monetary items denominated in foreign currencies are translated at the exchange rates at the balance sheet date. The difference between the exchange rates at the balance sheet date and the date at which the receivable or payable arose or was recognised in the latest financial statements is recognised in the income statement as financial income or financial expenses. Non-current assets purchased in foreign currency are translated at the exchange rate on the transaction date.Income from the sale of goods, comprising the sale of pretreatment plants for plastic and metal, is recognised in revenue when delivery and transfer of risk to the buyer have taken place, and the income may be measured reliably and is expected to be received. Revenue is recognized excl. VAT and taxes and less discounts in connection with the sale.Cost of sales comprises costs incurred to generate revenue for the year. This item also comprises direct costs for goods for resale and changes to inventory of goods for resale.Other operating income comprises items secondary to the activities of the entity, including goverment grants.Other external costs comprise distribution costs and costs related to sales, sales campaigns, administration, office premises, operating leases, etc.Staff costs comprise wages and salaries, including holiday allowance, pension and other social security costs, etc., to the Company's employees.The proportionate share of the individual group entities' profit/loss after tax is recognised in the Parent Company's income statement after full elimination of intra-group gains/losses and amortisation of goodwill. Dividends from participating interest measured at cost are recognised as income in the income statement in the financial year when the dividends are declared.Financial income and expenses comprise interest income and expense, gains and losses regarding payables and transactions denominated in foreign currencies, amortisation of financial assets and liabilities as well as surcharges and refunds under the on-account tax scheme, etc.The Company is jointly taxed with FPE Fem B ApS group's other entities. On payment of joint taxation contributions, current Danish corporation tax is allocated between the jointly taxed entities in proportion to their taxable income. Entities with tax losses receive joint taxation contributions from entities that have used the losses to reduce their own taxable profit. Tax for the year comprises current corporation tax for the year and changes in deferred tax, including changes in tax rates. The tax expense relating to the profit for the year is recognised in the income statement, and the tax expense relating to amounts directly recognised in equity is recognised directly in equity.On initial recognition, tangible fixed assets are measured at cost. Cost includes the purchase price and costs directly related to the acquisition until the time the asset is ready for use. Land and buildings are subsequently measured at fair value. The fair value is determined by regularly recurring assessments of all fair value. Changes in the fair value in relation to the cost of the assets are offset against equity, taking into account deferred tax. If the fair value is lower than the cost, value adjustments are recognized in the income statement. The fair value is divided into separate components, which are separately written if the useful life of the individual components is different. Fixtures and fittings, tools and equipment are measured at cost less accumulated depreciation and impairment losses.  Cost comprises the purchase price and any costs directly attributable to the acquisition until the date on which the asset is available for use. Indirect production overheads and borrowing costs are not recognised in cost. The basis of depreciation is cost less any projected residual value after the end of the useful life. Depreciation is provided on a straight-line basis over the estimated useful life. The estimated useful lives are as follows: The useful life and residual value are reassessed annually. Changes are treated as accounting estimates, and the effect on depreciation is recognised prospectively. Land is not depreciated. Gains and losses on the disposal of property, plant and equipment are stated as the difference between the selling price less selling costs and the carrying amount at the date of disposal. Gains and losses are recognised in the income statement as other operating income or other operating costs, respectively.Buildings 25 years Fixtures and fittings, tools and equipment 5 yearsEquity investments in group entities are measured at the proportionate share of the entities' net asset value calculated in accordance with the Parent Company's accounting policies plus or minus unrealised intra-group gains or losses and plus or minus the residual value of positive and negative goodwill calculated in accordance with the acquisition method. Equity investments in group entities with negative net asset values are measured at DKK 0, and any receivables from these entities are written down to the extent that the receivables are deemed irrecoverable. To the extent that the Parent Company has a legal or constructive obligation to cover a negative balance exceeding the receivable, the residual amount is recognised as provsions. Participating interests are measured at cost. In case of indication of impairment, an impairment test is conducted. When the cost exceeds the recoverable amount, write-down is made to this lower value.The carrying amount of property, plant and equipment as well as equity investments in group entities and participating interests is subject to an annual test for indications of impairment other than the decrease in value reflected by depreciation or amortisation. Impairment tests are conducted of individual assets or groups of assets when there is an indication that they may be impaired. Write-down is made to the recoverable amount if this is lower than the carrying amount. The recoverable amount is the higher of an asset's net selling price and its value in use. The value in use is determined as the present value of the forecast net cash flows from the use of the asset or the group of assets, including forecast net cash flows from the disposal of the asset or the group of assets after the end of the useful life.Inventories are measured at cost in accordance with the FIFO method. Where the net realisable value is lower than cost, inventories are written down to this lower value. Goods for resale and raw materials and consumables are measured at cost, comprising purchase price plus delivery costs. Finished goods and work in progress are measured at cost, comprising the cost of raw materials, consumables and direct wages. The net realisable value of inventories is calculated as the sales amount less costs of completion and costs necessary to make the sale and is determined taking into account marketability, obsolescence and development in expected selling price.Contract work in progress is measured at cost including directly referable costs. On account profits are not recognised concerning contract work in progress.Receivables are measured at amortised cost. Write-down is made for bad debt losses where there is an objective indication that a receivable or a portfolio of receivables has been impaired. If there is an objective indication that an individual receivable has been impaired, write-down is made on an individual basis.Prepayments comprise prepayment of costs incurred relating to subsequent financial years.The expected dividends payment for the year is disclosed as a separate item under equity.Provisions include expected costs for guarantee commitments and tax. Warranties comprise obligations to make good any defects within the warranty period of 1-5 years. Provisions are recognised based on the Company's experience with warranties. Current tax payable and receivable is recognised in the balance sheet as tax computed on the taxable income for the year, adjusted for tax on the taxable income of prior years and for tax paid on account. Deferred tax assets, including the tax value of tax loss carryforwards, are recognised at the expected value of their utilisation within the foreseeable future; either as a set-off against tax on future income or as a set-off against deferred tax liabilities in the same legal tax entity. Any deferred net assets are measured at net realisable value. Deferred tax is measured in accordance with the tax rules and at the tax rates applicable at the balance sheet date when the deferred tax is expected to crystallise as current tax. Changes in deferred tax as a result of changes in tax rates are recognised in the income statement or equity, respectively.Financial liabilities are recognised at cost at the date of borrowing, corresponding to the proceeds received less transaction costs paid. In subsequent periods, the financial liabilities are measured at amortised cost using the effective interest method. Accordingly, the difference between cost and the nominal value is recognised in the income statement over the term of the loan together with interest expenses. Other liabilities are measured at amortised cost.Wages and salaries 18,800 16,534 Pensions 2,866 2,679 Other social security costs 257 113 21,923 19,326 Average number of full-time employees 33 30Interest income from group entities 457 433 Other financial income 14 0 471 433 Current tax for the year 5,799 5,051 Deferred tax for the year 116 -31 5,915 5,020 DKK'000 Land and buildings Fixtures and fittings, tools and equipment Total Cost at 1 January 2022 9,861 6,169 16,030 Additions for the year 4,766 1,641 6,407 Disposals for the year 0 148 148 Cost at 31 December 2022 14,627 7,958 22,585 Revaluations at 1 January 2022 2,309 0 2,309 Revaluations at 31 December 2022 2,309 0 2,309 Depreciation and impairment losses at 1 January 2022 -8,912 -4,623 -13,535 Depreciation for the year -279 -747 -1,026 Reversed depreciation and impairment losses on assets sold 0 -148 -148 Depreciation and impairment losses at 31 December 2022 -9,191 -5,518 -14,709 Carrying amount at 31 December 2022 7,745 2,440 10,185 DKK'000 Equity investments in group entities Participating interests Total Cost at 1 January 2022 1,417 75 1,492 Cost at 31 December 2022 1,417 75 1,492 Revaluations at 1 January 2022 1,106 0 1,106 Exchange rate adjustment 199 0 199 Net profit/loss for the year 2,959 0 2,959 Net change in internal profit -1,571 0 -1,571 Dividends -3,618 0 -3,618 Revaluations 31 December 2022 -925 0 -925 Carrying amount at 31 December 2022 492 75 567 7 Non-current liabilities other than provisions [ MAP # 820 ] DKK'000 Total debt at 31/12 2022 Repayment, first year Outstanding debt after five years Mortgage loans 1,883 165 1,028 Bank loans 10,000 500 5,500 Other payables 1,487 0 0 13,370 665 6,528 The Company is jointly taxed with other Danish companies in the FPE Fem B ApS. Together with the other companies in the joint taxation, the Company has joint and several liability for Danish corporation taxes and VAT and withholding taxes on dividends, interest and royalties within the joint taxation Remaining operating lease obligations at the balance sheet date fall due at DKK 138 thousand within 15 months (2021: DKK 85 thousand).For mortgages to credit institutes, DKK 1,883 thousand (2021: DKK 2,065 thousand), have been pledged as collateral in land and buildings, the carrying amount of which is DKK 7,745 thousand (2021: DKK 3,258 thousand). The company has ownership mortgages totaling DKK 7.800 thousand, which are in the company's possession. The company has issued a corporate mortgage of DKK 4.000 thousand. The company mortgage includes the following assets with carrying out amount of: The company has provided a guarantee to Mubea Carbo Tech GmbH and Victor Reinz India Pvt.Ltd via a bank with a total of 200 thousand.DKK'000 2022 2021 Fixtures and fittings, tools and equipment 2,440 1,546 Inventories 12,101 11,629 Trade receivables 5,578 8,460 20,119 21,635673822182022-01-012022-12-31673822182022-01-012022-12-311673822182022-01-012022-12-312673822182021-01-012021-12-31673822182022-12-31673822182021-12-31673822182022-01-012022-12-311673822182022-01-012022-12-312673822182022-01-012022-12-311673822182022-01-012022-12-312673822182022-01-012022-12-313673822182022-01-012022-12-3110673822182022-01-012022-12-3111673822182022-01-012022-12-3112673822182022-01-012022-12-31c:ProposedDividendRecognisedInEquityMember673822182021-01-012021-12-31c:ProposedDividendRecognisedInEquityMember673822182022-01-012022-12-31c:ReserveForNetRevaluationAccordingToEquityMethodMember673822182021-01-012021-12-31c:ReserveForNetRevaluationAccordingToEquityMethodMember673822182022-01-012022-12-31c:ContributedCapitalMember673822182022-01-01c:ContributedCapitalMember673822182022-12-31c:ContributedCapitalMember673822182022-01-012022-12-31c:RevaluationReserveMember673822182022-01-01c:RevaluationReserveMember673822182022-12-31c:RevaluationReserveMember673822182022-01-012022-12-31c:ReserveForNetRevaluationAccordingToEquityMethodMember673822182022-01-01c:ReserveForNetRevaluationAccordingToEquityMethodMember673822182022-12-31c:ReserveForNetRevaluationAccordingToEquityMethodMember673822182022-01-012022-12-31c:RetainedEarningsMember673822182022-01-01c:RetainedEarningsMember673822182022-12-31c:RetainedEarningsMember673822182022-01-012022-12-31c:ProposedDividendRecognisedInEquityMember673822182022-01-01c:ProposedDividendRecognisedInEquityMember673822182022-12-31c:ProposedDividendRecognisedInEquityMember673822182022-01-012022-12-31c:RetainedEarningsMember673822182021-01-012021-12-31c:RetainedEarningsMember673822182022-01-012022-12-31c:RestOfOtherReservesMember673822182021-01-012021-12-31c:RestOfOtherReservesMemberiso4217:DKKxbrli:pure