31482429 2021-09-30 cmn:TwoYearsAgoMember 31482429 2020-09-30 cmn:ThreeYearsAgoMember 31482429 2019-09-30 cmn:FourYearsAgoMember 31482429 2023-09-30 31482429 2022-09-30 31482429 2022-10-01 fsa:ContributedCapitalMember 31482429 2022-10-01 fsa:RetainedEarningsMember 31482429 2022-10-01 fsa:ProposedDividendRecognisedInEquityMember 31482429 2023-09-30 fsa:ContributedCapitalMember 31482429 2023-09-30 fsa:RetainedEarningsMember 31482429 2023-09-30 fsa:ProposedDividendRecognisedInEquityMember 31482429 2022-10-01 fsa:GoodwillMember 31482429 2023-09-30 fsa:GoodwillMember 31482429 2022-10-01 fsa:DepositsLongtermInvestmentsAndReceivablesMember 31482429 2023-09-30 fsa:DepositsLongtermInvestmentsAndReceivablesMember 31482429 2022-10-01 2023-09-30 31482429 2022-10-01 2023-09-30 1 31482429 2022-10-01 2023-09-30 memberOfBoardIdentifier_executive_board_1 31482429 2022-10-01 2023-09-30 memberOfBoardIdentifier_board_of_director_1 31482429 2022-10-01 2023-09-30 memberOfBoardIdentifier_board_of_director_2 31482429 2022-10-01 2023-09-30 memberOfBoardIdentifier_board_of_director_3 31482429 2020-10-01 2021-09-30 cmn:TwoYearsAgoMember 31482429 2019-10-01 2020-09-30 cmn:ThreeYearsAgoMember 31482429 2018-10-01 2019-09-30 cmn:FourYearsAgoMember 31482429 2021-10-01 2022-09-30 31482429 2022-10-01 2023-09-30 fsa:ProposedDividendRecognisedInEquityMember 31482429 2021-10-01 2022-09-30 fsa:ProposedDividendRecognisedInEquityMember 31482429 2022-10-01 2023-09-30 fsa:RetainedEarningsMember 31482429 2021-10-01 2022-09-30 fsa:RetainedEarningsMember 31482429 2022-10-01 2023-09-30 fsa:ContributedCapitalMember 31482429 2022-10-01 2023-09-30 fsa:RetainedEarningsMember 31482429 2022-10-01 2023-09-30 fsa:ProposedDividendRecognisedInEquityMember 31482429 2022-10-01 2023-09-30 fsa:GoodwillMember 31482429 2022-10-01 2023-09-30 fsa:DepositsLongtermInvestmentsAndReceivablesMember iso4217:DKK pure Årsrapport 33771231 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab Strandvejen 44 2900 Hellerup 2022-10-01 2021-10-01 2023-09-30 2022-09-30 31482429 Emerson Process Management A/S Generatorvej 8 A, 2 2860 Søborg 70253051 KPMG Statsautoriseret Revisionspartnerselskab 25578198 Dampfærgevej 28 2100 København Ø Denmark 2024-01-17 Peter Larsson Regnskabsklasse C, mellemstor virksomhed Revisionspåtegning The Executive Board and Board of Directors have today considered and adopted the Annual Report of Emerson Process Management A/S for the financial year 1 October 2022 - 30 September 2023. The Annual Report is prepared in accordance with the Danish Financial Statements Act. In our opinion the Financial Statements give a true and fair view of the financial position at 30 September 2023 of the Company and of the results of the Company operations for 2022/23. In our opinion, Management's Review includes a true and fair account of the matters addressed in the Review. We recommend that the Annual Report be adopted at the Annual General Meeting. 2024-01-17 Søborg Erik Christensen Executive Officer Lars Peter Larsson Chairman Erik Langeland Erik Christensen To the shareholder of Emerson Process Management A/S Opinion In our opinion, the Financial Statements give a true and fair view of the financial position of the Company at 30 September 2023 and of the results of the Company´s operations for the financial year 1 October 2022 - 30 September 2023 in accordance with the Danish Financial Statements Act. We have audited the Financial Statements of Emerson Process Management A/S for the financial year 1 October 2022 - 30 September 2023, which comprise income statement, balance sheet, statement of changes in equity and notes, including a summary of significant accounting policies. The Financial Statements are prepared in accordance with the Danish Financial Statements Act. Basis for Opinion We 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. 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 as 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 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. 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 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 Management’s Review. Our opinion on the Financial Statements does not cover 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 Management’s Review and, in doing so, consider whether 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 Management’s Review provides the information required under the Danish Financial Statements Act. Based on the work we have performed, in our view, 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 in Management’s Review. Copenhagen 2024-01-17 KPMG Statsautoriseret Revisionspartnerselskab Kenn W. Hansen State Authorised Public Accountant mne30154 68885000 35000000 36078000 -177000 -38000 -57000 26513000 2675000 3440000 66178000 39665000 36990000 116918000 69545000 66369000 152000 59000 203000 36 36 33 48.8 59.2 56.6 57.0 55.7 As a result of the merger with Aventics ApS 1 October 2021, the comparative figures for 2020/21 have been adjusted. Key activities The company’s activities consist of sale of measuring instruments, systems and consultancy services within process automation. The majority of the sales is to customers in Denmark. Development in the year The income statement of the Company for 2022/23 shows a profit of TDKK 71,970, and at 30 September 2023 the balance sheet of the Company shows positive equity of TDKK 158,265. The past year and follow-up on development expectations from last year The continued high investment level in the Life Science industry is the main reason for the strong and good result during the year 2022/23.The global shortage of electronic components has somewhat impacted the delivery lead times also in 2023, but has improved a lot since 2022 and is now back to a more normal level. Operating risks The Company’s most significant operating risk relates to the customer demand and investments made in the industries we serve. **Financial risks**The Company does not have any long term liabilities so the exposure to interest rate changes is very low. The currency risk is also considered low as most of the business is conducted in local currency, DKK. Furthermore, the Company is not exposed to credit risks besides normal risks in relation to trade receivables. Targets and expectations for the year ahead Management expects the result for the coming financial year to continue to be strong a lot thanks to continued investments in the Life Science industry. Research and development The Company does not have any significant research and development activities as these activities are carried out in foreign group companies. External environment The Company’s activities do not cause any significant impact on the surrounding environment.Emerson Process Management A/S is part of the Emerson global environmental, social and governance report. This report is published for the Emerson group by the parent company Emerson Electric Co., St. Louis, USA. The report is published on the following site: https://www.emerson.com/en-us/about-us/corporate-social-responsibility Intellectual capital resources In order to maintain a continuous growth, it is essential for the company to attract and retain highly skilled employees. Unusual events The financial position at 30 September 2023 of the Company and the results of the activities of the Company for the financial year for 2022/23 have not been affected by any unusual events. Subsequent events No events materially affecting the assessment of the Annual Report have occurred after the balance sheet date. 135636000 66855000 43809000 38677000 1657000 1618000 144000 18000 90026000 26542000 3452000 34000 754000 438000 92724000 26138000 20754000 6021000 71970000 20117000 100000000 0 -28030000 20117000 3754000 5005000 3754000 5005000 1976000 784000 15000 52000 1991000 836000 1559000 690000 68617000 50711000 268000 520000 318187000 139428000 324582000 145819000 650000 550000 650000 550000 6395000 6391000 1559000 690000 32006000 13715000 215594000 73639000 0 25000 143000 128000 316628000 138738000 48500000 48500000 100000000 0 66000 0 353000 262000 419000 262000 44490000 13718000 35962000 8000000 20732000 6135000 36136000 7605000 48500000 48500000 9765000 37795000 158265000 86295000 2395000 3145000 26183000 20659000 165898000 59262000 165898000 59262000 324582000 145819000 48500000 37795000 0 0 -28030000 100000000 48500000 9765000 100000000 40258000 35487000 3213000 2943000 338000 247000 43809000 38677000 38 36 Remuneration to the Executive Board has not been disclosed in accordance with section 98 B(3) of the Danish Financial Statements Act. 3110000 21000 4000 0 338000 13000 0 2000 754000 436000 754000 438000 20663000 6116000 91000 -33000 0 -62000 20754000 6021000 6256000 6256000 1251000 1251000 2502000 3754000 550000 100000 650000 Selling price of work in progress 96738000 33006000 Payments received on account -142819000 -33009000 -46081000 -3000 Recognised in the balance sheet as follows: Contract work in progress recognised in assets 32006000 13715000 Prepayments received recognised in debt -44490000 -13718000 -12484000 -3000 Deferred tax liabilities at 1 October -25,000 8,000 0 0 Amounts recognised in the income statement for the year 91,000 -33,000 Deferred tax liabilities at 30 September 66,000 -25,000 Provision for warranties 353 246 Provision for losses on contract work in progress 0 16 353 262 0 0 Deferred income consist of invoicing to customers for sales in subsequent year. Rental and lease obligations Lease obligations under operating leases. Total future lease payments: Between 0 and 5 years 7,651,000 5,429,000 7,651,000 5,429,000 Other contingent liabilities The Company has via bank provided warranty to a third party in the amount of TDKK 14,389 (2021/22: TDKK 14,386)The Danish group companies are jointly and severally liable for tax on the Danish jointly taxed incomes. Moreover, the group companies are jointly and severally liable for Danish withholding taxes by way of dividend tax, tax on royalty payments and tax on unearned income. Any subsequent adjustments of corporation taxes and withholding taxes may increase the Company’s liability. Transactions During the year, the Company had following transactions with related parties:Purchase of Services from related parties TDKK 28,286Purchase of Goods from related parties TDKK 130,086Sales of Services to related parties TDKK 527Sales of Goods to related parties TDKK 61Interest received from related parties TDKK 3,110Interest paid to related parties TDKK 0Receivables from related parties TDKK 215,594Payables to related parties TDKK 35,962 Name and registered office of the Parent preparing consolidated financial statements for the largest and smallest group: Name Place of registered office Emerson Electric Co. (largest group) Saint Louis, Missouri, United States The Group Annual Report of Emerson Electric Co. (largest group) may be obtained at the following address: The Group Annual Report of Emerson Process Management AB (smallest group) may be obtained at the following address: The Annual Report of Emerson Process Management A/S for 2022/23 has been prepared in accordance with the provisions of the Danish Financial Statements Act applying to medium-sized enterprises of reporting class C. The accounting policies applied remain unchanged from last year. The Financial Statements for 2022/23 are presented in TDKK. 1 With reference to section 86(4) of the Danish Financial Statements Act and to the cash flow statement included in the consolidated financial statements of Emerson Process Management AB (smallest group), the Company has not prepared a cash flow statement. Revenues are recognised in the income statement as earned. Furthermore, value adjustments of financial assets and liabilities measured at fair value or amortised cost are recognised. Moreover, all expenses incurred to achieve the earnings for the year are recognised in the income statement, including depreciation, amortisation, impairment losses and provisions as well as reversals due to changed accounting estimates of amounts that have previously been recognised in the income statement. Assets are recognised in the balance sheet when it is probable that future economic benefits attributable to the asset will flow to the Company, and the value of the asset can be measured reliably. Liabilities are recognised in the balance sheet when it is probable that future economic benefits will flow out of the Company, and the value of the liability can be measured reliably. Assets and liabilities are initially measured at cost. Subsequently, assets and liabilities are measured as described for each item below. Transactions in foreign currencies are translated at the exchange rates at the dates of transaction. Exchange differences arising due to differences between the transaction date rates and the rates at the dates of payment are recognised in financial income and expenses in the income statement. Where foreign exchange transactions are considered hedging of future cash flows, the value adjustments are recognised directly in equity. Receivables, payables and other monetary items in foreign currencies that have not been settled at the balance sheet date are translated at the exchange rates at the balance sheet date. Any differences between the exchange rates at the balance sheet date and the rates at the time when the receivable or the debt arose are recognised in financial income and expenses in the income statement. Fixed assets acquired in foreign currencies are measured at the transaction date rates. Revenue from the sale of goods is recognised when the risks and rewards relating to the goods sold have been transferred to the purchaser, the revenue can be measured reliably and it is probable that the economic benefits relating to the sale will flow to the Company. Contract work in progress (construction contracts) is recognised at the rate of completion, which means that revenue equals the selling price of the work completed for the year (percentage-of-completion method). This method is applied when total revenues and expenses in respect of the contract and the stage of completion at the balance sheet date can be measured reliably, and it is probable that the economic benefits, including payments, will flow to the Company. The stage of completion is determined on the basis of the ratio between the expenses incurred and the total expected expenses of the contract. Revenue is measured at the consideration received and is recognised exclusive of VAT and net of discounts relating to sales. Other external expenses comprise indirect production costs and expenses for premises, sales and distribution as well as office expenses, etc. With reference to section 32 of the Danish Financial Statements Act, gross profit/loss is calculated as a summary of revenue, change in inventories of finished goods, work in progress and goods for resale and other external expenses. Staff expenses comprise wages and salaries as well as payroll related expenses. Amortisation, depreciation and impairment losses comprise amortisation, depreciation and impairment of intangible assets and property, plant and equipment. Other operating income and other operating expenses comprise items of a secondary nature to the main activities of the Company, including gains and losses on the sale of intangible assets and property, plant and equipment. Financial income and expenses are recognised in the income statement at the amounts relating to the financial year. Tax for the year consists of current tax for the year and changes in deferred tax for the year. The tax attributable to the profit for the year is recognised in the income statement, whereas the tax attributable to equity transactions is recognised directly in equity. The Company is jointly taxed with other Danish subsidiaries of the group. The tax effect of the joint taxation is allocated to enterprises in proportion to their incomes. Goodwill acquired is measured at cost less accumulated amortisation. Goodwill is amortised on a straight-line basis over its useful life, which is assessed at 5 year. Property, plant and equipment are measured at cost less accumulated depreciation and less any accumulated impairment losses. Cost comprises the cost of acquisition and expenses directly related to the acquisition up until the time when the asset is ready for use. Interest expenses on loans raised directly for financing the construction of property, plant and equipment are recognised in cost over the period of construction. Depreciation based on cost reduced by any residual value is calculated on a straight-line basis over the expected useful lives of the assets, which are: Other fixtures and fittings, tools and equipment 2-10 years Leasehold improvements The fixed assets’ residual values are determined at nil. 5-6 years Depreciation period and residual value are reassessed annually. The carrying amounts of intangible assets and property, plant and equipment and investments are reviewed on an annual basis to determine whether there is any indication of impairment other than that expressed by amortisation and depreciation. Financial fixed asset investments consist of deposits. **Impairment of fixed assets**The carrying amounts of intangible assets, property, plant and equipment and financial fixed asset investments are reviewed on an annual basis to determine whether there is any indication of impairment other than that expressed by amortisation and depreciation.If so, the asset is written down to its lower recoverable amount. Inventories are measured at the lower of cost under the FIFO method and net realisable value. The net realisable value of inventories is calculated at the amount expected to be generated by sale of the inventories in the process of normal operations with deduction of selling expenses and costs of completion. The net realisable value is determined allowing for marketability, obsolescence and development in expected selling price. The cost of finished goods and goods for resale comprises the cost of purchase price plus delivery costs. Receivables are measured in the balance sheet at the lower of amortised cost and net realisable value, which corresponds to nominal value less provisions for bad debts. Provisions for bad debts are determined on the basis of an individual assessment of each receivable, and in respect of trade receivables, a general provision is also made based on the Company’s experience from previous years. Contract work in progress is measured at selling price of the work performed calculated on the basis of the stage of completion. The stage of completion is measured by the proportion that the contract expenses incurred to date bear to the estimated total contract expenses. Where it is probable that total contract expenses will exceed total revenues from a contract, the expected loss is recognised as an expense in the income statement. Where the selling price cannot be measured reliably, the selling price is measured at the lower of expenses incurred and net realisable value. Payments received on account are set off against the selling price. The individual contracts are classified as receivables when the net selling price is positive and as liabilities when the net selling price is negative. Expenses relating to sales work and the winning of contracts are recognised in the income statement as incurred. Prepayments comprise prepaid expenses concerning rent, insurance premiums, subscriptions and interest. Dividend distribution proposed by Management for the year is disclosed as a separate Dividend item. Provisions are recognised when - in consequence of an event occurred before or on the balance sheet date - the Company has a legal or constructive obligation and it is probable that economic benefits must be given up to settle the obligation. Other provisions include expected losses on work in progress and warranty obligations in respect of repair work within the warranty period of 1-5 years. Deferred income tax is measured using the balance sheet liability method in respect of temporary differences arising between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes on the basis of the intended use of the asset and settlement of the liability, respectively. Deferred tax assets are measured at the value at which the asset is expected to be realised, either by elimination in tax on future earnings or by set-off against deferred tax liabilities within the same legal tax entity. Deferred tax is measured on the basis of the tax rules and tax rates that will be effective under the legislation at the balance sheet date when the deferred tax is expected to crystallise as current tax. Any changes in deferred tax due to changes to tax rates are recognised in the income statement or in equity if the deferred tax relates to items recognised in equity. Current tax liabilities and receivables are recognised in the balance sheet as the expected taxable income for the year adjusted for tax on taxable incomes for prior years and tax paid on account. Extra payments and repayment under the on-account taxation scheme are recognised in the income statement in financial income and expenses. Debts are measured at amortised cost, substantially corresponding to nominal value. Deferred income comprises payments received in respect of income in subsequent years. Solvency ratio Equity at year end x 100 / Total assets at year end Return on equity Net profit for the year x 100 / Average equity