347320512018-01-012018-12-31347320512018-01-012018-12-312347320512018-01-012018-12-313347320512018-01-012018-12-314347320512018-01-012018-12-311347320512018-01-012018-12-31RevPers5347320512018-01-012018-12-31RevPers5347320512018-01-012018-12-31347320512018-01-012018-12-31347320512018-01-012018-12-31fsa:RetainedEarningsMember347320512018-01-012018-12-31fsa:ContributedCapitalMember347320512017-01-012017-12-31347320512017-01-012017-12-31fsa:RetainedEarningsMember347320512018-12-31347320512018-01-01347320512018-01-01fsa:ContributedCapitalMember347320512017-12-31347320512017-01-01xbrli:purexbrli:pureiso4217:DKKxbrli:sharesTo the shareholders of Arla ICC P/S Basis of opinion 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 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' Code of Ethics for Professional Accountants (IESBA Code) and additional requirements applicable in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these rules and requirements. Opinion We have audited the financial statements of Arla ICC P/S for the financial year 1 January 2018 - 31 December 2018, which comprise accounting policies, income statement, balance sheet, cash flows, statement of changes in equity and notes. 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 financial position at 31 December 2018 and of the results of its operations and cash flows for the financial year 1 January 2018 - 31 December 2018 in accordance with the Danish Financial Statements Act. 2019-05-24AarhusThe auditor's responsibility for the audit of the financial statements 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 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 additional requirements applicable in Denmark, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: * Identify and assess the risk of material misstatements in 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 whether the 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. , 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 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 additional requirements applicable in Denmark, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: * Identify and assess the risk of material misstatements in 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 whether the 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's responsibility for the financial statements 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. 30700228mne30152Jens Weiersøe JakobsenSteen Futtrup Executive Board Steen Futtrup CEO Board of Directors Yue Liu Frede Juulsen Ping Zhang Formand Yue LiuFrede JuulsenPing ZhangErnst & YoungChairmanBoard MemberBoard MemberRevisionspåtegningtrue-83470002408200098446000123118000103760005759600010376000575960005759600016198000-453390004297000-188100037101000Regnskabsklasse C, mellemstor virksomhed50000050000098446000123118000Accounting policies Reporting Class The Annual Report of Arla ICC P/S for 2018 has been presented 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. Reporting currency The Annual Report is presented in thousands of Danish kroner (K DKK). Foreign currency translation 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 rate at the transaction date and the rate at 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 closing rates. 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. Income Statement Gross profit/loss The Company has decided to aggregate certain items of the Income Statement in accordance with the provisions of Section 32 of the Danish Financial Statements Act. Revenue Income from the sale of goods is recognised in the Income Statement from the date of delivery and when the risk has passed to the buyer if it is possible to calculate the income reliably. The revenue is calculated exclusive of VAT, charges and discounts. Cost of sales Cost of sales comprises direct and indirect costs for the acquisition of goods regarding the supply for the year. Corporation tax As the Company is not an independent taxpayer, corporation tax is not recognised in the financial statements. Balance Sheet Receivables Receivables are measured at amortised cost. The value is reduced by write-downs for expected bad debts. Equity Dividend proposed for the year is recognised as a liability at the date when it is adopted at the annual general meeting (declaration date). Dividend expected to be distributed for the financial year is presented as a separate line item under "Equity". Financial liabilities Other liabilities are measured at amortised cost. Prepayments Prepayments comprise income incurred concerning subsequent financial years. Cash Flow Statement The Cash Flow Statement shows the Company's cash flows for the year broken down by operating, investing and financing activities, changes for the year in cash and cash equivalents as well as the Company's cash and cash equivalents at the beginning and end of the year. Cash flow from the operating activity is determined as the profit/loss for the year adjusted for changes in working capital and non-cash income statement items. Cash flow from the investing activity comprises cash flows from purchase and sale of intangible, tangible and investments. Cash flow from the financing activity comprises cash flows from raising and repaying long-term liabilities and payments to and from the owners. Cash and cash equivalents comprise cash. 3. Contingent liabilities The Company had no contingent liabilities at the balance sheet date. Share Proposed capital dividends Total Equity 1 January 2018 500 13.019 13.519 Settled dividends -13.019 -13.019 Profit for the year 6.466 6.466 Equity 31 December 2018 500 6.466 6.966 The share capital has remained unchanged the last 5 years. The share capital is divided into nominal DKK: 300.000 in A-share divided into shares of DKK 10.000 or multiples thereof. 200.000 in B-share divided into shares of DKK 10.000 or multiples thereof. Every A-share has 5 votes and every B-share has 8 votes. 4. Related parties Arla ICC P/S´ related parties comprise the Company´s Management, companies within the Arla Foods Group and the parent company Inner Mongolia Mengniu Dairy (Group) Co., LTD. Parties exercising control Inner Mongolia Mengniu Dairy (Group) Co., LTD and Shengle Economy District, Helingeer, Hohhot, Zorer Mongolia, China holds the majority of the voting rights in the Company. Related party transactions In the year under review, Arla ICC P/S has been engaged in transactions with Arla Foods amba as part of normal business. 1. Gross Profit As in previous years the Company had no employees in 2018. No remuneration was paid to the Board of Directors and the Executive Board during the financial year. Arla Foods amba handles the administration of Arla ICC P/S. 2. Distribution of profit 2018 2017 Proposed dividends 6.466 13.019 6.466 13.019 0000130190000000696600013519000-50000064660001301900000009844600012311800091480000109599000-472200004139800018840002188000646600064660001301900013019000646600013019000-323200004297000false914800001095990005132000374520004490001490000880700006552200085899000706570008618600063334000Viby J, 8260Sønderhøj 142019-05-242012-10-122019-05-243473205134732051ÅrsrapportYue LiuArla ICC P/SJonas Buur2017-01-012017-12-31Aarhus, 02018-12-312018-01-01Development in activities and financial matters The Company's Income Statement of the financial year 01-01-2018 - 31-12-2018 shows a result of K DKK 6.466 and the Balance Sheet at 31-12-2018 a balance sheet total of K DKK 98.446 and an equity of K DKK 6.966, which is lower than expected due to a period with limited sales until the company could obtain approval from the Chinese authorities to export to the Chinese market. Expectations for the future The Company expects to report an increased profit for 2019. The Company's principal activities The Company's principal activities comprise the sale of dairy products to the Chinese market. The Company's key figures and financial ratios developed as follows: 2018 2017 2016 2015 2014 Gross profit 6.466 13.019 7.585 6.143 4.666 Financial income and costs, net 0 0 0 0 -193 Profit 6.466 13.019 7.585 6.143 4.473 Assets 98.446 123.118 78.957 102.533 63.705 Equity 6.966 13.519 8.085 6.643 4.973 Return on assets (%) 6 13 8 7 10 Solvency ratio (%) 7 11 10 6 8 Return on assets = Profit for the year / Avg. assets X 100 Solvency ratio = Total equity X 100 / Total equity and liabilities The Company's principal activities The Company's principal activities comprise the sale of dairy products to the Chinese market. Development in activities and financial matters The Company's Income Statement of the financial year 01-01-2018 - 31-12-2018 shows a result of K DKK 6.466 and the Balance Sheet at 31-12-2018 a balance sheet total of K DKK 98.446 and an equity of K DKK 6.966, which is lower than expected due to a period with limited sales until the company could obtain approval from the Chinese authorities to export to the Chinese market. Post financial year events After the end of the financial year, no events have occurred which may change the financial position of the entity substantially. Expectations for the future The Company expects to report an increased profit for 2019. 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 assets, liabilities and financial position of the Company at 31 December 2018 and of the results of the Company's operations and cash flow for the financial year 1 January 2018 - 31 December 2018. 2019-05-24Today, Management has considered and adopted the Annual Report of Arla ICC P/S for the financial year 1 January 2018 - 31 December 2018. In our opinion, the Management's Review includes a true and fair account of the matters addressed in the review. AarhusWe recommend that the Annual Report be adopted at the Annual General Meeting. Today, Management has considered and adopted the Annual Report of Arla ICC P/S for the financial year 1 January 2018 - 31 December 2018. 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 assets, liabilities and financial position of the Company at 31 December 2018 and of the results of the Company's operations and cash flow for the financial year 1 January 2018 - 31 December 2018. In our opinion, the 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. Aarhus, 24 May 2019 Executive Board Steen Futtrup CEO Board of Directors Yue Liu Frede Juulsen Ping Zhang Formand