Årsrapport 30700228 EY Godkendt Revisionspartnerselskab Dirch Passers Allé 36 Postboks 250, 2000 Frederiksberg 2021-01-01 2021-12-31 2020-01-01 2020-12-31 62707828 Papyrus A/S Mileparken 22, 2. 2740 Skovlunde 1966-07-28 Ballerup Danske Bank EY Godkendt Revisionspartnerselskab 30700228 Dirch Passers Allé 36 2000 Frederiksberg 2022-06-28 Niklas Järbur Regnskabsklasse C, mellemstor virksomhed Revisionspåtegning Grundlag for konklusion Konklusion true 2022-06-28 2022-06-28 CaseWare Working Papers Skovlunde Niklas Järbur Jeno Szilagyi Chair Niklas Järbur Søren Gaardboe Copenhagen Henrik Pedersen Rolan Atl Caballero Pena Espedal State Authorised Public Accountant mne35456 State Authorised Public Accountant mne47789 294360000 337198000 365990000 12646000 15249000 22526000 -1798000 -1651000 -2969000 -3109000 -3237000 7295000 21520000 18178000 161132000 195513000 187412000 0 405000 161000 0 65000 65119000 87824000 66304000 3.5 1.8 4.3 5.7 6.2 10.4 8.9 10.1 11.9 12.3 27.2 44.8 40.4 44.9 35.4 11.9 3.4 9.5 27.9 31.8 24 25 26 238575000 215025000 200499000 182509000 421000 999000 13777000 14367000 24720000 19148000 13954000 12950000 2474000 2288000 8292000 3910000 710000 1563000 2508000 3214000 6494000 2259000 -145000 -12000 6639000 2271000 25961000 28245000 766000 799000 753000 910000 27480000 29954000 27480000 29954000 23844000 26613000 23844000 26613000 27347000 23949000 67636000 54194000 8663000 8663000 0 510000 5442000 4833000 1535000 1574000 110623000 93723000 20000 12000 134487000 120348000 161967000 150302000 30000000 30000000 2129000 7390000 11900000 30000000 44029000 67390000 0 42450000 1232000 1258000 1232000 43708000 42677000 2903000 49172000 29187000 4309000 2196000 12472000 0 7072000 4918000 1004000 0 116706000 39204000 117938000 82912000 161967000 150302000 30000000 7390000 30000000 -5261000 11900000 0 30000000 30000000 2129000 11900000 11506000 10570000 1873000 1911000 219000 189000 356000 280000 13954000 12950000 22 22 0 16000 2508000 3198000 -145000 -12000 -145000 -12000 71961000 36265000 3212000 0 0 0 71961000 36265000 3212000 43716000 35466000 2302000 2284000 33000 157000 46000000 35499000 2459000 25961000 766000 753000 25961000 300 30000000 30000000 1232000 0 1232000 0 11900000 30000000 -5261000 -27729000 Today, the Board of Directors and the Executive Board have discussed and approved the annual report of Papyrus A/S for the financial year 1 January - 31 December 2021. 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 of the Company at 31 December 2021 and of the results of the Company's operations for the financial year 1 January - 31 December 2021. Further, in our opinion, the Management's review gives a fair review of the development in the Company's operations and financial matters and the results of the Company's operations and financial position. We recommend that the annual report be approved at the annual general meeting. To the shareholders of Papyrus A/S We have audited the financial statements of Papyrus A/S for the financial year 1 January - 31 December 2021, which comprise 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 financial position of the Company at 31 December 2021 and of the results of the Company's operations for the financial year 1 January - 31 December 2021 in accordance with the Danish Financial Statements Act. 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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Independence 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. 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 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 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 the 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 note 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 Statement Act. We did not identify any material misstatement of the Management's review. Papyrus A/S is a wholesaler and service company selling graphic paper, cardboard, stationery and commodities. In the year under review, the Company carried out efficiency enhancing measures and created the basis for significant synergies through a new Scandinavian organisation with local, country-based sales entities, whereas other functions have been pooled in shared Scandinavian entities. It is essential to the Company to have considerable market and product knowledge of customers and suppliers. In addition to this, reliability of delivery and services are important parameters in the competition on the market. The main activity area of Papyrus is the Danish home market. The development within financial conditions, information technology, customer structure and earnings in the graphics trade affect the Company's revenue and profit. Primarily the graphic division still sees a concentration of companies towards larger units. Papyrus has prepared a responsible employment policy. The income statement for 2021 shows a profit of DKK 6,639 thousand against a profit of DKK 2,271 thousand last year, and the balance sheet at 31 December 2021 shows equity of DKK 44,029 thousand. In 2021 the company's earnings have been positively affected by increasing revenue. The graphic division has maintained and expanded its position as the leading and largest wholesaler in its field in Denmark. The Company has not drawn up any CSR report, as the Parent Company has done so for the entire Group. The report is rendered in the parent company's annual report and may be downloaded from the site https://www.optigroup.com/sites/default/files/report/optigroup_ar2020_eng.pdf After the balance sheet dato no events have occurred, including COVID-19 or the conflict in Ukraine, which could materially affect the Company’s financial position. The Company expects an increased result in 2022 and expects a profit before tax of DKK 7,300 - 8,200 thousand. During 2021, COVID-19 has significantly impacted the demand for the products sold by the Company. The annual report of Papyrus A/S for 2021 has been prepared in accordance with the provisions in the Danish Financial Statements Act applying to medium-sized reporting class C entities. The accounting policies used in the preparation of the financial statements are consistent with those of last year. With reference to section 86(4) of the Danish Financial Statements Act, no cash flow statement has been prepared. The Company's cash flows are part of the consolidated cash flow statement for the Parent Company, Opti Group. Reporting currency The financial statements are presented in Danish kroner (DKK'000). On initial recognition, transactions denominated in foreign currencies are translated at the exchange rate 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 and payables and other monetary items denominated in foreign currencies are translated at the exchange rate 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 most recent financial statements is recognised in the income statement as financial income or financial expenses. The Company has chosen IAS 11/IAS 18 as interpretation for revenue recognition. Income from the sale of goods for resale and finished goods is recognised in revenue when transfer of the most significant rewards and risks to the buyer has taken place and provided that the income can be reliably measured and payment is expected to be received. The date of the transfer of the most significant rewards and risks is based on standardised terms of delivery. Revenue is measured at the fair value of the agreed consideration excluding VAT and taxes charged on behalf of third parties. All discounts and rebates granted are recognised in revenue. Other operating income comprise items of a secondary nature relative to the Company's core activities, including gains on the sale of fixed assets. Other external expenses include the year's expenses relating to the Company's core activities, including expenses relating to distribution, sale, advertising, administration, premises, bad debts, payments under operating leases, etc. Financial income and expenses are recognised in the income statement at the amounts that concern the financial year. Net financials include interest income and expenses as well as allowances and surcharges under the advance-payment-of-tax scheme, etc. Tax for the year includes current tax on the year's expected taxable income and the year's deferred tax adjustments. The portion of the tax for the year that relates to the profit/loss for the year is recognised in the income statement, whereas the portion that relates to transactions taken to equity is recognised in equity. The Company and its Danish group entities are jointly taxed. The total Danish income tax charge is allocated between profit/loss-making Danish entities in proportion to their taxable income (full absorption). Jointly taxed entities entitled to a tax refund are reimbursed by the management company based on the rates applicable to interest allowances, and jointly taxed entities which have paid too little tax pay a surcharge according to the rates applicable to interest surcharges to the management company. Property, plant and equipment Items of property, plant and equipment are measured at cost less accumulated depreciation and impairment losses. Cost includes the acquisition price and costs directly related to the acquisition until the time at which the asset is ready for use. Gains or losses are calculated as the difference between the selling price less selling costs and the carrying amount at the date of disposal. Gains and losses from the disposal of property, plant and equipment are recognised in the income statement as other operating income or other operating expenses. The Company has chosen IAS 17 as interpretation for classification and recognition of leases. On initial recognition, leases for assets that transfer substantially all the risks and rewards incident to the ownership to the Company (finance leases) are measured in the balance sheet at the lower of fair value and the present value of the future lease payments. In calculating the net present value, the interest rate implicit in the lease or the incremental borrowing rate is used as the discount factor. Assets held under finance leases are subsequently accounted for in the same way as the Company's other assets. The capitalised residual lease liability is recognised in the balance sheet as a liability, and the interest element of the lease payment is recognised in the income statement over the term of the lease. 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. The net realisable value of inventories is calculated as the sales amount less costs of completion and expenses required to effect the sale and is determined taking into account marketability, obsolescence and development in the expected selling price. Receivables are measured at amortised cost. The Company has chosen IAS 39 as interpretation for impairment of financial receivables. An impairment loss is recognised if there is objective evidence that a receivable or a group of receivables is impaired. If there is objective evidence that an individual receivable has been impaired, an impairment loss is recognised on an individual basis. Receivables in respect of which there is no objective evidence of individual impairment are tested for objective evidence of impairment on a portfolio basis. The portfolios are primarily based on the debtors' domicile and credit ratings in line with the Company's risk management policy. The objective evidence applied to portfolios is determined based on historical loss experience. Impairment losses are calculated as the difference between the carrying amount of the receivables and the present value of the expected cash flows, including the realisable value of any collateral received. The effective interest rate for the individual receivable or portfolio is used as discount rate. Prepayments recognised under "Assets" comprise prepaid expenses regarding subsequent financial reporting years. Cash comprise cash and short term securities which are readily convertible into cash and subject only to minor risks of changes in value. Balances in the Group's cash pool scheme are not, due to the nature of the scheme, considered as cash, but are recognised under the financial statement item receivables from group entities. Current tax payables and receivables are recognised in the balance sheet as the estimated income tax charge for the year, adjusted for prior-year taxes and tax paid on account. Deferred tax is measured according to the liability method on all temporary differences between the carrying amount and the tax base of assets and liabilities. However, deferred tax is not recognised on temporary differences relating to goodwill which is not deductible for tax purposes and on office premises and other items where temporary differences, apart from business combinations, arise at the date of acquisition without affecting either profit/loss for the year or taxable income. Where alternative tax rules can be applied to determine the tax base, deferred tax is measured based on Management's intended use of the asset or settlement of the liability, respectively. Deferred tax is measured according to 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. Deferred tax assets are recognised at the expected value of their utilisation; 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. Changes in deferred tax due to changes in the tax rate are recognised in the income statement. Other payables Other payables are measured at net realisable value. Lease liabilities Lease liabilities are measured at the net present value of the remaining lease payments including any guaranteed residual value based on the interest rate implicit in the lease. Deferred income Deferred income recognised as a liability comprises payments received concerning income in subsequent financial reporting years. Financial ratios are calculated in accordance with the Danish Finance Society's guidelines. The item includes received Covid-19 related governtment grants. With reference to section 98b(3), (ii), of the Danish Financial Statements Act, remuneration to Management is not disclosed. Prepayments include accrual of expenses relating to subsequent financial years. The Company's share capital has remained DKK 30,000 thousand over the past 5 years. Besides the tax loss recognised in the statement of deferred tax, the Company has additional tax loss carry-forwards at a carrying amount of DKK 8,277 thousand calculated at a tax rate of 22%. As it is uncertain whether these tax losses can be utilised within a foreseeable future, the carrying amount has not been recognised in the financial statements. Other contingent liabilities The Company is jointly taxed with Stadsing A/S, which from 2021 acts as management company, and is jointly and severally liable with other jointly taxed group entities for payment of income taxes as well as withholding taxes on interest, royalties and dividends. Other rent and lease liabilities: DKK'000 2021 2020 Rent and lease liabilities 938 1,283 The Company has provided a company charge in operating equipment, inventory, receivables, etc., of nominally EUR 9,900 thousand (DKK 73,600 thousand) as security for its bank debt. Parties exercising control Related party Domicile Basis for control Sweden Participating interest Shareholder xxx Information about consolidated financial statements Parent Domicile Opti Group Related party transactions Papyrus A/S was engaged in the below related party transactions: DKK'000 2021 2020 Revenue 35,922 31,504 Cost of sales 28,244 19,028 Receivables from group entities 67,636 54,194 Payables to group entities 4,309 2,196 There have been no other material transactions with related parties other than those stated above. 62707828 2021-01-01 2021-12-31 62707828 2020-12-31 62707828 2021-12-31 62707828 2021-01-01 2021-12-31 1 62707828 2021-01-01 2021-12-31 2 62707828 2021-01-01 2021-12-31 3 62707828 2021-12-31 1 62707828 2021-01-01 2021-12-31 1 62707828 2021-01-01 2021-12-31 2 62707828 2021-01-01 2021-12-31 1 62707828 2021-01-01 2021-12-31 e:ProposedDividendRecognisedInEquityMember 62707828 2020-01-01 2020-12-31 e:ProposedDividendRecognisedInEquityMember 62707828 2021-01-01 2021-12-31 e:RetainedEarningsMember 62707828 2020-01-01 2020-12-31 e:RetainedEarningsMember 62707828 2021-01-01 e:LandAndBuildingsMember 62707828 2021-01-01 2021-12-31 e:LandAndBuildingsMember 62707828 2021-12-31 e:LandAndBuildingsMember 62707828 2021-01-01 e:PlantAndMachineryMember 62707828 2021-01-01 2021-12-31 e:PlantAndMachineryMember 62707828 2021-12-31 e:PlantAndMachineryMember 62707828 2021-01-01 e:LeaseholdImprovementsMember 62707828 2021-01-01 2021-12-31 e:LeaseholdImprovementsMember 62707828 2021-12-31 e:LeaseholdImprovementsMember 62707828 2021-01-01 e:ContributedCapitalMember 62707828 2021-12-31 e:ContributedCapitalMember 62707828 2021-01-01 e:RetainedEarningsMember 62707828 2021-01-01 2021-12-31 e:RetainedEarningsMember 62707828 2021-12-31 e:RetainedEarningsMember 62707828 2021-01-01 e:ProposedDividendRecognisedInEquityMember 62707828 2021-01-01 2021-12-31 e:ProposedDividendRecognisedInEquityMember 62707828 2021-12-31 e:ProposedDividendRecognisedInEquityMember 62707828 2020-01-01 2020-12-31 62707828 2021-01-01 2021-12-31 d:TwoYearsAgoMember 62707828 2021-12-31 d:TwoYearsAgoMember 62707828 2021-01-01 2021-12-31 d:ThreeYearsAgoMember 62707828 2021-12-31 d:ThreeYearsAgoMember 62707828 2021-01-01 2021-12-31 d:FourYearsAgoMember 62707828 2021-12-31 d:FourYearsAgoMember 62707828 2021-12-31 e:OtherLongtermPayablesMember 62707828 2020-12-31 1 iso4217:DKK xbrli:shares xbrli:pure