truefalseJackie Lund NikolajsenÅrsrapport25578198KPMGDampfærgevej 28DK-2100 København Ø2020-01-012020-12-312019-01-012019-12-312021-07-122021-07-1220215380ExecuJet Europe A/SLedreborg Alle 128 C, 1. th.4000RoskildeDKDenmark1997-07-01Roskilde+45 46141516www.execujet.cominfo@execujet.comKPMG25578198Martin Eilermne32271statsaut. revisorDampfaergevej282100CopenhagenDKDenmark45707077602021-07-12Regnskabsklasse C, mellemstor virksomhedfalsefalseRevisionspåtegningThe Board of Directors and the Executive Board have today discussed and approved the annual report of ExecuJet Europe A/S for the financial year 1 January – 31 December 2020.The annual report has been prepared in accordance with the Danish Financial Statements Act.We recommend that the annual report be approved at the annual general meeting.Roskilde,Niclas Fortunat von PlantaDavid van den LangenberghChairmanNiclas Fortunat von PlantaJackie Lund NikolajsenTo the shareholder of ExecuJet Europe A/SWe conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the "Auditor's responsibilities for the audit of the financial statements" section of our report. We are independent of the Company in accordance with the International Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants (IESBA Code) and the additional requirements applicable in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these rules and requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.Copenhagen,32300011991000-102720002931000-1025500022890005971300078509000-18046000-7791000-79.3825.62-30.22-9.9255ExecuJet Europe A/S is active primarily within business aviation, including aircraft management. The managed aircrafts are also used for charter. Revenue is also generated from providing aircraft completion, delivery, acceptance and registration services, generally on behalf of aircraft management clients.Capital resources The Company's equity is negative by DKK 18,046 thousand. The cash flow budget for 2021 shows a profit, but should further cash be necessary Luxaviation Holding Company S.A. has confirmed that it will provide financial support to the Company sufficient for it to satisfy, on a timely basis all liabilities and obligations of the Company as they fall due for a period of at least 12 months from the date of the annual general meeting. On this basis the Management assess the capital resources as sufficient for 2021.32300011991000105820009057000130003000-1027200029310002253000133400022360001976000-10255000228900000-102550002289000200003000127000123000147000126000204000002740300030224000339540004842000128270005546600074184000410000041990005956600078383000597130007850900010000001000000-19046000-8791000-18046000-779100001550003908100036905000165350002143000012565000106880009578000171220007775900086145000777590008630000059713000785090001000000-87910000-102550001000000-19046000Financial assets The accounting policies used in the preparation of the financial statements are consistent with those of last year. Deposits are recognised at amortised cost.55-102550002289000Control Related party transactions Execujet Finance Limited in Ireland is the immidiate owner of the Company. The ultimate parent company is Luxuvuation Holding Company S.A. in Luxembourg. ExecuJet Europe A/S is part of the consolidated financial statements of Execujet Finance Limited, 21 Priory Hall Stillorgan Co. Dublin Ireland, and the consolidated financial statements of Luxuvuation Holding Company S.A., 4A, rue albert Borschette, L-1246 Luxembourg, which is the smallest and largest group, respectively, in which the Company is included as a subsidiary. The consolidated financial statements of Execujet Finance Limited, 21 Priory Hall Stillorgan Co. Dublin Ireland and the consolidated financial statements of Luxuvuation Holding Company S.A., 4A, rue albert Borschette, L-1246 Luxembourg can be obtained by contacting the companies at the addresses above.In our opinion, the financial statements give a true and fair view of the Company's assets, liabilities and financial position at 31 December 2020 and of the results of the Company's operations for the financial year 1 January – 31 December 2020. Further, in our opinion, the Management's review gives a fair review of the development in the Company's operations and financial matters, of the results for the year and of the Company's financial position.We have audited the financial statements of ExecuJet Europe A/S for the financial year 1 January – 31 December 2020 comprising income statement, balance sheet, statement of changes in equity and notes, including accounting policies. The financial statements are prepared in accordance with the Danish Financial Statements Act. In our opinion, the financial statements give a true and fair view of the Company's assets, liabilities and financial position at 31 December 2020 and of the results of the Company's operations for the financial year 1 January – 31 December 2020 in accordance with the Danish Financial Statements Act.Without modifying our opinion, we draw attention to the Company's negative equity and the disclosures in note 2, in which Management explains that it has received a letter of support from the parent company.Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the Danish Financial Statements Act and for such internal control that Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, Management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting in preparing the financial statements unless Management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.Our objectives are to obtain reasonable assurance as to whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs and the additional requirements in Denmark will always detect a material misstatement when it exists. Misstatements may arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users made on the basis of these financial statements. As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional judgement and maintain professional scepticism throughout the audit. We also identify and assess the risks of material misstatement of the company financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control. obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management. conclude on the appropriateness of Management's use of the going concern basis of accounting in preparing the financial statements and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern. evaluate the overall presentation, structure and contents of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that gives a true and fair view. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.Management is responsible for the Management's review. Our opinion on the financial statements does not cover the Management's review, and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the Management's review and, in doing so, consider whether the Management's review is materially inconsistent with the financial statements or our knowledge obtained during the audit, or otherwise appears to be materially misstated. Moreover, it is our responsibility to consider whether the Management's review provides the information required under the Danish Financial Statements Act. Based on the work we have performed, we conclude that the Management's review is in accordance with the financial statements and has been prepared in accordance with the requirements of the Danish Financial Statements Act. We did not identify any material misstatement of the Management's review. The financial ratios have been calculated as follows: Return on equity Profit/loss from ordinary activities after tax x 100 Average equity Solvency ratio Equity ex. non-controlling interests at year-end x 100 Total equity and liabilities at year-endThe Company's income statement for 2020 shows a loss of DKK -10,255 thousand as against a profit of DKK 2,289 thousand in 2019. Equity in the Company's balance sheet at 31 December 2020 stood at DKK -18,046 thousand as against DKK -7,791 thousand at 31 December 2019.Market conditions over the course of 2020 were unlike anything faced before by business aviation. The spread of COVID-19 and the declaration of a global pandemic had a huge impact on aviation industry with international travel restrictions enforced. As a result, the company suffered in 2020 from reduced activity. The management has taken measures to mitigate the risks and has implemented strict cash management procedures and has used a reasonable worst-case scenario to forecast to the end of the fiscal year 2021 and is confident it can meet its commitments even under this unlikely scenario. The longevity of these market shifts is uncertain. As vaccines are being rolled out across the globe, we are hopeful that the return on international travel at its previous levels will resume. The demand for business aviation sales, aircraft management and charter solutions gives grounds for optimism, principally because the benefit of private aviation allowing passengers to travel in relative isolation has never been of greater perceived value.As aviation is a highly regulated business, key management and staff must be appropriately qualified, so continuous training takes place to ensure that standards are maintained. In addition, ExecuJet Europe A/S is required to have the necessary quality and organizational systems in place to maintain flight operations regulated by the EU (EASA), without which the Company would be unable to meet its primary business activity objectives.No events have occured after the end of the financial year of material importence to the Company's financial position.The annual report of ExecuJet Europe A/S for 2020 has been prepared in accordance with the provisions applying to reporting class C medium-sized entities under the Danish Financial Statements Act. The transition compared to the previous financial year from the provisions applying to reporting class c medium-sized entities under the Danish Financial Statements Act has not resulted in changes to recognition and measurement. Pursuant to section 86(4) of the Danish Financial Statements Act, no cash flow statement has been prepared. The Company's cash flows are included in the cash flow statement in the consolidated financial statements of Luxuvuation Holding Company S.A., 4A, rue albert Borschette, L-1246 Luxembourg.On initial recognition, transactions denominated in foreign currencies are translated at the exchange rates at the transaction date. Foreign exchange differences arising between the exchange rates at the transaction date and the date of payment are recognised in the income statement as financial income or financial expenses. Receivables, payables and other monetary items denominated in foreign currencies are translated at the exchange rates at the balance sheet date. The difference between the exchange rates at the balance sheet date and the date at which the receivable or payable arose or was recognised in the latest financial statements is recognised in the income statement as financial income or financial expenses.Pursuant to section 32 of the Danish Financial Statements Act, the Company has decided only to disclose gross profit which includes revenue, cost of sales, operating income and other external cost.Revenue from the sale of services is recognised in the income statement when the services have been delivered, and revenue can be reliably measured. Revenue is recognised exclusive of VAT, duties and less discounts related to the sale.Cost of sales comprise costs incurred to generate revenue for the year which includes air craft costs, fuel, repairs etc.Other operating income comprises items secondary to the activities of the entity, including gains on the disposal of intangible assets and property, plant and equipment.Other external costs comprise of distribution costs and costs related to sales, sales campaigns, administration, office premises, operating leases, etc.Staff costs comprise wages and salaries, including holiday allowance, pension and other social security costs, etc., to the Company's employees, excluding reimbursements from public authorities.Financial income and expenses comprise interest income and expense, gains and losses on securities, payables and transactions denominated in foreign currencies, amortisation of financial assets and liabilities as well as surcharges and refunds under the on-account tax scheme, etc.Tax for the year comprises current corporation tax for the year and changes in deferred tax, including changes in tax rates. The tax expense relating to the profit/loss for the year is recognised in the income statement, and the tax expense relating to amounts directly recognised in equity is recognised directly in equity.Fixtures and fittings, tools and equipment are measured at cost less accumulated depreciation and impairment losses.  Cost comprises the purchase price and any costs directly attributable to the acquisition until the date on which the asset is available for use. Indirect production overheads and borrowing costs are not recognised in cost. Where individual components of an item of property, plant and equipment have different useful lives, they are accounted for as separate items, which are depreciated separately. The basis of depreciation is cost less any projected residual value after the end of the useful life. Depreciation is provided on a straight-line basis over the estimated useful life. The estimated useful lives are as follows: The useful life and residual value are reassessed annually. Changes are treated as accounting estimates, and the effect on depreciation is recognised prospectively. Gains and losses on the disposal of property, plant and equipment are stated as the difference between the selling price less selling costs and the carrying amount at the date of disposal. Gains and losses are recognised in the income statement as other operating income or other operating costs, respectively.Fixtures and fittings, tools and equipment 3 yearsThe carrying amount of fixtures and fittings, tools and equipmentis, and deposits are subject to an annual test for indications of impairment other than the decrease in value reflected by depreciation or amortisation. Impairment tests are conducted of individual assets or groups of assets when there is an indication that they may be impaired. Write-down is made to the recoverable amount if this is lower than the carrying amount. The recoverable amount is the higher of an asset's net selling price and its value in use. The value in use is determined as the present value of the forecast net cash flows from the use of the asset or the group of assets, including forecast net cash flows from the disposal of the asset or the group of assets after the end of the useful life.Receivables are measured at amortised cost. Write-down is made for bad debt losses where there is an objective indication that a receivable has been impaired.Cash at bank and in hand comprises cash.Current tax payable and receivable is recognised in the balance sheet as tax computed on the taxable income for the year, adjusted for tax on the taxable income of prior years and for tax paid on account. Deferred tax is measured using the balance sheet liability method on all temporary differences between the carrying amount and the tax value of assets and liabilities based on the planned use of the asset or settlement of the liability. Deferred tax assets, including the tax value of tax loss carryforwards, are recognised at the expected value of their utilisation within the foreseeable future; either as a set-off against tax on future income or as a set-off against deferred tax liabilities in the same legal tax entity. Any deferred net assets are measured at net realisable value. Deferred tax is measured in accordance with the tax rules and at the tax rates applicable at the balance sheet date when the deferred tax is expected to crystallise as current tax. Changes in deferred tax as a result of changes in tax rates are recognised in the income statement or equity, respectively.Liabilities are measured at net realisable value.The Company's equity is negative by DKK 18,046 thousand. The cash flow budget for 2021 shows a profit, but should further cash be necessary Luxaviation Holding Company S.A. has confirmed that it will provide financial support to the Company sufficient for it to satisfy, on a timely basis all liabilities and obligations of the Company as they fall due for a period of at least 12 months from the date of the annual general meeting. On this basis the Management assess the capital resources as sufficient for 2021. Market conditions over the course of 2020 were unlike anything faced before by business aviation. The spread of COVID-19 and the declaration of a global pandemic had a huge impact on aviation industry with international travel restrictions enforced. As a result, the company suffered in 2020 from reduced activity. The management has taken measures to mitigate the risks and has implemented strict cash management procedures and has used a reasonable worst-case scenario to forecast to the end of the fiscal year 2021 and is confident it can meet its commitments even under this unlikely scenario. The longevity of these market shifts is uncertain. As vaccines are being rolled out across the globe, we are hopeful that the return on international travel at its previous levels will resume. The demand for business aviation sales, aircraft management and charter solutions gives grounds for optimism, principally because the benefit of private aviation allowing passengers to travel in relative isolation has never been of greater perceived value.DKK'000 2020 2019 Wages and salaries 3,333 3,602 Pensions 570 483 Other social security costs 718 553 Allocated costs related to salaries 5,961 4,419 10,582 9,057 Average number of full-time employees 5 5Staff costs include remuneration of the Company's Board of directors: DKK 47 thousand.Interest income from group entities 98 89 Foreign exchange gains 2,155 1,245 2,253 1,334 Foreign exchange losses 2,236 1,976 2,236 1,976 DKK'000 Fixtures and fittings, tools and equipment Cost at 1 January 2020 106 Additions for the year 30 Cost at 31 December 2020 136 Depreciation and impairment losses at 1 January 2020 -103 Depreciation for the year -13 Depreciation and impairment losses at 31 December 2020 -116 Carrying amount at 31 December 2020 20 No terms of repayments have been agreed with the Group entities. A significant part of receivables from group entities are not expected to be received within 1 year.The Company has entered into lease agreements with a remaining term of up to 24 months. The total residual lease payment amounts to DKK 318 thousand. The Company has a deferred tax asset of DKK 16,100,000, which has not been recognised due to uncertainty regarding its utilisation.DKK'000 2020 Cost of sales 14,708 Revenue 5,018 Management fee 2,879 22,605202153802019-01-012019-12-31202153802020-01-012020-12-31202153802020-01-012020-12-311202153802020-01-012020-12-31c:ContributedCapitalMember202153802020-01-01c:ContributedCapitalMember202153802020-12-31c:ContributedCapitalMember202153802020-01-012020-12-31c:RetainedEarningsMember202153802020-01-01c:RetainedEarningsMember202153802020-12-31c:RetainedEarningsMember202153802020-01-012020-12-311202153802020-01-012020-12-311202153802020-01-012020-12-312202153802020-01-012020-12-313202153802020-01-012020-12-31c:RetainedEarningsMember202153802019-01-012019-12-31c:RetainedEarningsMember202153802019-12-31202153802020-01-012020-12-31g:PreviousYearMember202153802020-12-31202153802020-12-31g:PreviousYearMemberxbrli:pureiso4217:DKKiso4217:DKK