xbrli:pureiso4217:DKK409505402023-01-012023-12-31409505402023-01-012023-12-311409505402023-01-012023-12-311409505402023-01-012023-12-311409505402023-01-012023-12-312409505402023-01-012023-12-313409505402023-01-012023-12-312409505402023-01-012023-12-31409505402022-01-012022-12-31409505402023-01-012023-12-31fsa:RetainedEarningsMember409505402023-12-31409505402022-12-31409505402023-01-01fsa:ContributedCapitalMember409505402023-01-01fsa:RetainedEarningsMember409505402023-01-01409505402023-12-31fsa:ContributedCapitalMember409505402023-12-31fsa:RetainedEarningsMember409505402023-01-012023-12-31fsa:ContributedCapitalMemberGrundlag for konklusionKonklusion2024-05-312024-05-31Regnskabsklasse C, mellemstor virksomhed339635562022-01-012022-12-31Aarhus C80002City Tower, VærkmestergadeDeloitte Statsautoriseret RevisionspartnerselskabKøbenhavnHinnerup8382Revisionspåtegning2023-12-312023-01-01<br /><br />3SigmaMTS Systems Danmark ApS40950540409505408382 HinnerupSigma 3MTS Systems Danmark ApSÅrsrapportThe Board of Directors and the Executive Board have today considered and approved the annual report of MTS Systems Danmark ApS for the financial year 01.01.2023 - 31.12.2023.The annual report is presented in accordance with the Danish Financial Statements Act.In our opinion, the financial statements give a true and fair view of the Entity’s financial position at 31.12.2023 and of the results of its operations for the financial year 01.01.2023 - 31.12.2023.We believe that the management commentary contains a fair review of the affairs and conditions referred to therein.We recommend the annual report for adoption at the Annual General Meeting.CopenhagenPeder Lund RasmussenMonique MartinsRobert Kirk DutziPeder Lund RasmussenTo the shareholder of MTS Systems Danmark ApSWe have audited the financial statements of MTS Systems Danmark ApS for the financial year 01.01.2023 - 31.12.2023, which comprise the 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. ​ ​In our opinion, the financial statements give a true and fair view of the Entity’s financial position at 31.12.2023 and of the results of its operations for the financial year 01.01.2023 - 31.12.2023 in accordance with the Danish Financial Statements Act.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 Entity 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 Entity’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 Management either intends to liquidate the Entity 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:<br />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. <br />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. <br />Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management. <br />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. <br />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.<br />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 commentary. Our opinion on the financial statements does not cover the management commentary, 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, in doing so, consider whether the management commentary 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 provides the information required by relevant law and regulations.<br />Based on the work we have performed, we conclude that the management commentary 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 commentary. AarhusHenrik VedelMikael Møllermne10052mne47835State Authorised Public AccountantState Authorised Public AccountantFinancial highlights2023 DKK'0002022 DKK'0002020/21 DKK'0002019/20 DKK'000Key figuresGross profit/loss2,2583,0585,264(7,948)Operating profit/loss(1,336)0(1,812)(60,313)Net financials(12,322)(9,179)(22,829)(10,639)Profit/loss for the year(1,606)2,059(33,642)(59,069)Total assets479,088509,078528,761527,579Equity188,543190,129188,04941,563RatiosEquity ratio (%)39.3537.3535.567.88Financial highlights are defined and calculated in accordance with the current version of "Recommendations & Ratios" issued by the CFA Society Denmark.Equity ratio (%) :Equity * 100 Total assetsPrimary activitiesThe parent company's activities comprise holding equity investments in other Danish enterprises, providing taxable services to its subsidiaries and other activities, in the opinion of the executive board, are related to this. The group's activities comprise consultancy and development of machines and plants. Development in activities and financesThe income statement for the period 01.01.23 - 31.12.23 shows a loss of DKK 1,606K against a profit of 2,059K for the period 01.01.22 - 31.12.22.Profit/loss for the year in relation to expected developmentsThe earnings expectation for the financial year 01.01.23 - 31.12.23 were a profit between DKK 20,000K -30,000K. The profit for the year has not reached the outlook communicated in the annual report 2022 as the result expectations mistakenly did not include amortization of goodwill. OutlookThe company expects a profit between DKK 2,000K and 3,000K in the financial year 01.01.2024 – 31.12.2024. Use of financial instrumentsThe company and its subsidiaries have been affected by the supply chain crisis through purchase of raw materials, components and sub-systems. The risk of further price increases is considered high. The company's subsidiaries sells its products on long term contract, which makes it difficult to calculate the added costs into the prices in the short term. There have been no use of derivatives in the financial year 01.01.23 - 31.12.23 and the exchange rate risks are considered low given the company and its subsidiaries primarily sell and buy in DKK and EUR. The interest rate risk is low given the company has entered into fixed interest rate loan contracts. The company is part of ITW that uses a cash pool for financing purposes. The liquidity preparedness of the company is therefore considered to be good and the liquidity risk is considered low. Knowledge resourcesMTS Systems and its subsidiaries employs a highly educated workforce, primarily within the engineering disciplines to design and manufacture test systems, primarily for the wind industry. During the financial year the group continued project manager training as well as Techlead training to ensure the continued professional development of the staff.Environmental performanceThe company and its subsidiaries have a limited impact on the external environment in the form of effluent and smoke emissions. Continuous monitoring and steps are taken to ensure that these emissions always, bot quantitatively and qualitatively, are within the limits that apply according to the Company's environmental approval.Events after the balance sheet dateNo events have occurred after the balance sheet date to this date, which would influence the evaluation of this annual report.2257898305754735937583057544-133586031074070383478741097585565123232839764595-2917343-831153-1311539-2890518-16058042059365-160580447266097046190104522497182193885474910688464094930474910688464094930103681439135215028432430029502890518137890173008417765442483065025000704177654449831354790883425090780652041774204177418650108718808766918854286119012944320417741880876691901294432041774186501087015254650152546589565763272872107623060876172045024103440021200130915211290545481317423157290545481317423157479088342509078065019222192221 Events after the balance sheet dateNo events have occurred after the balance sheet date to this date, which would influence the evaluation of this annual report.2 Staff costs2023 DKK2022 DKKWages and salaries3,434,2182,935,111Pension costs132,95188,866Other social security costs4,5445,112Other staff costs22,04528,4553,593,7583,057,544Average number of full-time employees22In pursuance of section 98B (3) of the Danish Financial Statement Act, renumeration to the Executive board has not been disclosed. 223 Other financial income2023 DKK2022 DKKFinancial income from group enterprises0585,485Exchange rate adjustments1,097801,097585,5654 Other financial expenses2023 DKK2022 DKKFinancial expenses from group enterprises11,846,2509,753,979Other interest expenses477,03310,61612,323,2839,764,595<br />2023 DKK2022 DKKFinancial expenses from group enterprises11,846,2509,753,979Other interest expenses477,03310,61612,323,2839,764,5955 Tax on profit/loss for the year2023 DKK2022 DKKCurrent tax(3,002,950)(2,890,518)Adjustment concerning previous years1,691,4110(1,311,539)(2,890,518)6 Proposed distribution of profit and loss2023 DKK2022 DKKRetained earnings(1,605,804)2,059,365 (1,605,804)2,059,365-160580420593657 Financial assetsInvestments in group enterprises DKKDeposits DKKCost beginning of year497,490,6932,193,885Additions0194,354Disposals0(138,521)Cost end of year497,490,6932,249,718Revaluations beginning of year(35,589,648)0Exchange rate adjustments19,2220Share of profit/loss for the year36,806,8850Revaluations for the year(26,066,182)0Revaluations end of year(24,829,723)0Carrying amount end of year472,660,9702,249,718Investments in subsidiariesRegistered inCorporate formEquity interest %R&D Tools & Structures A/SAarhusA/S100.00R&D Engineering A/SAarhusA/S100.00R&D Test Systems A/SAarhusA/S100.00R&D Steel ApSAarhusApS100.00R&D Prague s.r.oPragues.r.o100.00<br />Investments in group enterprises DKKDeposits DKKCost beginning of year497,490,6932,193,885Additions0194,354Disposals0(138,521)Cost end of year497,490,6932,249,718Revaluations beginning of year(35,589,648)0Exchange rate adjustments19,2220Share of profit/loss for the year36,806,8850Revaluations for the year(26,066,182)0Revaluations end of year(24,829,723)0Carrying amount end of year472,660,9702,249,7188 PrepaymentsPrepayments consists of prepaid insurance premiums and other prepayments.9 Other provisionsOther provisions comprises restricted share units. 10 Payables to group enterprisesThe company, together with other group companies, engages in cash pool arrangements where other companies are liable to the bank. Deposits and debts in relation to the cash pool scheme are accepted as intra-group receivables and debt, respectively. At 31 December 2023, the item payable to group enterprises includes an amount of 284.333k, which is drawn on the cash pool arrangement.11 Unrecognised rental and lease commitments2023 DKK2022 DKKLiabilities under rental or lease agreements until maturity in total7,232,35910,265,87512 Contingent liabilitiesThe Entity participates in a Danish joint taxation arrangement where ITW Denmark ApS serves as the administration company. According to the joint taxation provisions of the Danish Corporation Tax Act, the Entity is therefore liable for income taxes etc for the jointly taxed entities, and for obligations, if any, relating to the withholding of tax on interest, royalties and dividend for the jointly taxed entities. The jointly taxed entities' total known net liability under the joint taxation arrangement is disclosed in the administration company's financial statements.13 Assets charged and collateralThere are no collateral provided or assets charged at the balance sheet date.14 Related parties with controlling interestMTS Systems Corporation, 14000 Technology Drive Eden Prairie, Minnesota USA owns all shares in the Entity, thus exercising control. 15 Non-arm’s length related party transactionsOnly related party transactions not conducted on an arm’s length basis are disclosed in the annual report.​ No such transactions have been conducted in the financial year.16 Group relationsName and registered office of the Parent preparing consolidated financial statements for the largest group: Illinois Tool Works Inc., 155 Harlem Ave, Glenview, IL 60025, USA.Name and registered office of the Parent preparing consolidated financial statements for the smallest group: Illinois Tool Works Inc., 155 Harlem Ave, Glenview, IL 60025, USA.Copies of the consolidated financial statements of Illinois Tool Works Inc may be ordered at the following address: 155 Harlem Ave, Glenview, IL 60025, USA.This annual report has been prepared in accordance with the provisions of the Danish Financial Statements Act governing reporting class C enterprises (medium).The accounting policies applied to these financial statements are consistent with those applied last year.falseConsolidated financial statementsReferring to section 112(2) of the Danish Financial Statements Act, no consolidated financial statements have been prepared.Recognition and measurementAssets are recognised in the balance sheet when it is probable as a result of a prior event that future economic benefits will flow to the Entity, and the value of the asset can be measured reliably. Liabilities are recognised in the balance sheet when the Entity has a legal or constructive obligation as a result of a prior event, and it is probable that future economic benefits will flow out of the Entity, and the value of the liability can be measured reliably. On initial recognition, assets and liabilities are measured at cost. Measurement subsequent to initial recognition is effected as described below for each financial statement item. Anticipated risks and losses that arise before the time of presentation of the annual report and that confirm or invalidate affairs and conditions existing at the balance sheet date are considered at recognition and measurement. Income is recognised in the income statement when earned, whereas costs are recognised by the amounts attributable to this financial year.Foreign currency translationOn 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 income statement as financial income or financial expenses. When recognising foreign subsidiaries and associates that are independent entities, the income statements are translated at average exchange rates for the months that do not significantly deviate from the rates at the transaction date. Balance sheet items are translated using the exchange rates at the balance sheet date. Goodwill is considered belonging to the independent foreign entity and is translated using the exchange rate at the balance sheet date. Exchange differences arising out of the translation of foreign subsidiaries’ equity at the beginning of the year at the balance sheet date exchange rates and out of the translation of income statements from average rates to the exchange rates at the balance sheet date are recognised directly in the translation reserve in equity. Exchange adjustments of outstanding accounts with independent foreign subsidiaries, which are considered part of the total investment in the subsidiary in question, are recognised directly in the translation reserve in equity.When recognising foreign subsidiaries that are integral entities, monetary assets and liabilities are translated using the exchange rates at the balance sheet date. Non-monetary assets and liabilities are translated at the exchange rate at the time of acquisition or the time of any subsequent revaluation or writedown. The items of the income statement are translated at the average rates of the months; however, items deriving from non-monetary assets and liabilities are translated using the historical rates applicable to the relevant non-monetary items.Gross profit or lossGross profit or loss comprises other operating income and external expenses.Other operating incomeOther operating income comprises income of a secondary nature as viewed in relation to the Entity’s primary activities, including profit from salary refunds.Other external expensesOther external expenses include expenses relating to the Entity’s ordinary activities, including expenses for premises, stationery and office supplies, marketing costs, etc. This item also includes writedowns of receivables recognised in current assets.Staff costsStaff costs comprise salaries and wages, and social security contributions, pension contributions, etc for entity staff.Income from investments in group enterprisesIncome from investments in group enterprises comprises the pro rata share of the individual enterprises’ profit/loss after full elimination of intra-group profits or losses.Other financial incomeOther financial income comprises dividends etc received on other investments, interest income, including interest income on receivables from group enterprises, net capital or exchange gains on securities, payables and transactions in foreign currencies, amortisation of financial assets, and tax relief under the Danish Tax Prepayment Scheme etc.Other financial expensesOther financial expenses comprise interest expenses, including interest expenses on payables to group enterprises, net capital or exchange losses on securities, payables and transactions in foreign currencies, amortisation of financial liabilities, and tax surcharge under the Danish Tax Prepayment Scheme etc.Tax on profit/loss for the yearTax for the year, which consists of current tax for the year and changes in deferred tax, is recognised in the income statement by the portion attributable to the profit for the year and recognised directly in equity by the portion attributable to entries directly in equity.The Entity is jointly taxed with all Danish group enterprises. The current Danish income tax is allocated among the jointly taxed entities proportionally to their taxable income (full allocation with a refund concerning tax losses).Investments in group enterprisesInvestments in group enterprises are recognised and measured according to the equity method. This means that investments are measured at the pro rata share of the enterprises’ equity value plus unamortised goodwill and plus or minus unrealised intra-group profits or losses. Group enterprises with negative equity value are measured at DKK 0. Any receivables from these enterprises are written down to net realisable value based on a specific assessment. If the Parent has a legal or constructive obligation to cover the liabilities of the relevant enterprise, and it is probable that such obligation will involve a loss, a provision is recognised that is measured at present value of the costs necessary to settle the obligations at the balance sheet date. Upon distribution of profit or loss, net revaluation of investments in group enterprises is transferred to the reserve for net revaluation according to the equity method in equity. Goodwill is the positive difference between cost of investments and fair value of assets and liabilities arising from acquisitions. Goodwill is amortised straight-line over its estimated useful life, which is fixed based on the experience gained by Management for each business area. For one amount of goodwill, useful life has been determined based on an assessment of whether the enterprises are strategically acquired enterprises with at strong market position and a long-term earnings profile. For other amounts of goodwill, useful life has been determined based on an assessment of whether the amount of goodwill includes intangible resources of a temporary nature that cannot be separated and recognised as separate assets. Useful lives are reassessed annually. The amortisation periods used are 1-20 years. Investments in group enterprises are written down to the lower of recoverable amount and carrying amount.ReceivablesReceivables are measured at amortised cost, usually equalling nominal value less writedowns for bad and doubtful debts.Tax payable or receivableCurrent tax payable or receivable is recognised in the balance sheet, stated as tax computed on this year's taxable income, adjusted for prepaid tax.PrepaymentsPrepayments comprise incurred costs relating to subsequent financial years. Prepayments are measured at cost.CashCash comprises cash in hand and bank deposits.Other provisionsOther provisions comprises comprises restricted share units. Other provisions are recognised and measured as the best estimate of the expenses required to settle the liabilities at the balance sheet date. Provisions that are estimated to mature more than one year after the balance sheet date are measured at their discounted value. Once it is probable that total costs will exceed total income from a contract in progress, provision is made for the total loss estimated to result from the relevant contract.Other financial liabilitiesOther financial liabilities are measured at amortised cost, which usually corresponds to nominal value.Cash flow statementIn pursuance of section 86 of the Danish Financial Statements Act, the preparation of cash flow statement is excluded as it is contained in the cash flow statement for the ultimate parent company Illinois Tool Works Inc., Illinois, USA. 2024-05-31Peder Lund Rasmussen