BDO Statsautoriseret revisionsaktieselskabHavneholmen 29DK-1561 Copenhagen V20222670Årsrapport2017-03-31Ieva TackieDAKO A/SProduktionsvej 422600 GlostrupRevisionspåtegning302818292007-02-25Glostrup2015-11-012016-10-31BDO Statsautoriseret revisionsaktieselskabHavneholmen291561Copenhagen VNordea Bank Danmark A/SHovedvejen1162600GlostrupGlostrup2017-03-31Klaus Christian SauberRichard Norman LarsenMajken NielsenJan Vesth-WiersholmKøbenhavn2017-03-31BDO Statsautoriseret revisionsaktieselskab20222670Ole C. K. NielsenState Authorised Public AccountantRegnskabsklasse B1126000222000-409000768000535000-5460001890700000140000025000357000189720000-903000143000-827700018957700073740001895770007374000622081000063285610006220810000632856100062208100006328561000301089000009200007770001172300030186600012643000179300016180003036590001426100065244690006342822000104991000104991000641941800062298410006524409000633483200060000600000559100002339000600007990000600007990000652446900063428220006328561000-1077510006220810000622081000010499100062298410001895770001049910006419418000Today the Board of Directors and Board of Executives have discussed and approved the Annual Report of DAKO A/S for the year 1 November 2015 - 31 October 2016. 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 company’s financial position at 31 October 2016 and of the results of the company’s operations for the financial year 1 November 2015 - 31 October 2016. The Management's Review includes in our opinion a fair presentation of the matters dealt with in the review. We recommend that the Annual Report be approved at the Annual General meetings. To the Shareholders of DAKO A/S We have audited the financial statements of DAKO A/S for the financial year 1 November 2015 to 31 October 2016, which comprise a summary of significant accounting policies, income statement, balance sheet and notes. The financial statements are prepared in accordance with the Danish Financial Statements Act. 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 free from material misstatement, whether due to fraud or error. Our responsibility is to express an opinion on the financial statements based on our audit. We have conducted our audit in accordance with International Standards on Auditing and additional requirements under Danish Audit Legislation. This requires that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatements of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation of financial statements that give a true and fair view 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. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. The audit has not resulted in any qualification. Opinion In our opinion, the financial statements give a true and fair view of the company's assets, liabilities and financial position at 31 October 2016 and of the results of the company's operations for the financial year 1 November 2015 - 31 October 2016 in accordance with the Danish Financial Statements Act. Pursuant to the Danish Financial Statements Act, we have read the management’s review. We have not performed any further procedures in addition to the audit of the financial statements. On this basis, it is our opinion that the information provided in the management’s review is consistent with the financial statements. Principal activities The main activity in Dako A/S is to hold the shares in Dako Denmark A/S. The Dako Group was acquired by Agilent Technologies Inc., an American listed company, in June 2012. Dako A/S is still operating as separate legal entity as part of Agilent Technologies. The Dako Group continues to build its business on a legacy of more than 45 years within pathology: From playing a pioneering role in the standardization of antibodies to Dako’s current role as an Agilent Technologies company with a leading position in the pathology segment of the in vitro diagnostics (IVD) industry. Dako’s products are sold in more than 110 countries around the world and dedicated employees work to develop, manufacture and market reagents, antibodies, instruments and software for use in anatomic pathology laboratories worldwide. Developments during the year The subsidiary entity “Dako Denmark A/S” executed a demerger of its field function into another Denmark based Agilent group entity called “Agilent Technologies Denmark ApS”. This demerger was executed on 1st Nov 2016 but was retrospectively effective from 1st Nov 2015 for Danish financial reporting and tax purposes. Dako A/S received a shareholding in Agilent Technologies Denmark ApS and also cash consideration since it was the sole shareholder of Dako Denmark A/S. Financial Position for the year Net profit for the year amounted to DKK 190 million compared to Net profit of DKK 7.3 million in 2015. As of 31st October 2016, the balance sheet shows equity of DKK 6.524 million. The results for the year reflect the accounting effect of the demerger as described in the preceding section Significant events after the end of the financial year Apart from the above mentioned developments, the Board of Directors and Executive Management are not aware of any events subsequent to 31 October 2016 which may have a material impact on the company’s financial position. The annual report of DAKO A/S for 2015/16 has been presented in accordance with the provisions of the Danish Financial Statements Act for enterprises in reporting class B. Regnskabsklasse B The Annual Report is prepared consistently with the accounting principles used last year. The Annual Report is presented in TDKK. 1 General about recognition and measurement Income is recognised in the income statement as and when it is earned, including recognition of value adjustments of financial assets and liabilities. Any costs, including depreciation, amortisation and write-down, are also recognised in the income statement. Assets are recognised in the balance sheet when it is likely that future economic benefits 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 likely that future economic benefits will flow from the company and the value of the liability can be measured reliably. The initial recognition measures assets and liabilities at cost. Subsequently, assets and liabilities are measured as described in the following for each item. The recognition and measurement takes into account predictable losses and risks arising before the year-end reporting and which prove or disprove matters that existed at the balance sheet date. The carrying amount of intangible and tangible fixed assets is reviewed annually to determine if there is any indication of impairment in excess of the amount reflected by normal amortisation or depreciation. If this is the case, write-down should be made to the lower recoverable amount. Consolidated financial statements Consolidated financial statements have not been prepared because the group fulfils the exemption provisions of section 112 of the Danish Financial Statements Act on sub-groups. The company is included in the consolidated financial statements of Agilent Technologies, Inc., at 5301 Stevens Creek Boulevard, Santa Clara, CA 95051. INCOME STATEMENT Net revenue The net revenue from sale of merchandise and finished goods is recognised in the income statement if supply and risk transfer to purchaser has taken place before the end of the year. Net revenues is recognised exclusive of VAT, duties and less discounts related to the sale. Administrative expenses Administrative expenses recognise costs incurred during the year regarding management and administration of the group, inclusive of costs relating to the administrative staff, executives, office premises, office expenses etc. and related amortisation. Other operating income and expenses Other operating income recognised administrative fees from group enterprises and is recognised in the income statement when delivery and transfer of risk has been made before year-end. Other operating income is recognised og VAT and net of discounts relating to sales. Financial income and expenses in general Financial income and expenses are recognised in the income statement by the amounts that relate to the financial year. Tax on profit for the year The tax for the year, which consists of the current tax for the year and changes in deferred tax, is recognised in the income statement by the portion that may be attributed to the profit for the year, and is recognised directly in the equity by the portion that may be attributed to entries directly to the equity. The company is jointly taxed with wholly owned Danish subsidiary enterprises. The tax effect of the joint taxation is allocated to enterprises in proportion to their taxable incomes. BALANCE SHEET Fixed asset investments Equity investments in subsidiaries are measured at cost. If the cost exceeds the net realisable value, this is written down to the lower value. Receivables Receivables are measured at amortised cost which usually corresponds to nominal value. The value is reduced by write-down to meet expected losses. Accruals, assets Accruals recognised as assets include costs incurred relating to the subsequent financial year. Tax payable and deferred tax Current tax liabilities and receivable current tax are recognised in the balance sheet as the calculated tax on the taxable income for the year, adjusted for tax on the taxable income for previous years and taxes paid on account. Deferred tax is measured on the temporary differences between the carrying amount and the tax value of assets and liabilities. Deferred tax assets, including the tax value of tax loss carry-forwards, are measured at the expected realisable value of the asset, either by set-off against 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 under the legislation in force on the balance sheet date would be applicable when the deferred tax is expected to crystallise as current tax. Any changes in the deferred tax resulting from changes in tax rates, are recognised in the income statement, except from items recognised directly in equity. Liabilities Liabilities are measured at amortised cost equal to nominal value. Foreign currency translation Transactions in foreign currencies are translated using “Average monthly rate” for the month in which the transaction is recorded. This average rate is derived from and closely represents the actual exchange rates in force during that month. Exchange differences arising between the “Average monthly rate” and the rate on the payment date are recognized in the Income Statement as financial income or expense. Accounts receivables, payables and other monetary items in foreign currencies that are not settled on the balance sheet date are translated at the exchange rate on the balance sheet date. The difference between the exchange rate on the balance sheet date and the exchange rate at the time of occurrence of the receivables or payables is recognised in the income statement as financial income or expenses. CASH FLOW STATEMENT In accordance with section 86(4) of the Danish Financial Statements Act no cash flow statement has been prepared. The cash flow statement for Dako A/S is incorporated in the cash flow statement of the consolidated Financial Statements of Agilent Technologies Inc., at 5301 Stevens Creek Boulevard, Santa Clara, CA 95051. Tax on profit/loss for the year 1 Calculated tax on taxable income of the year -777 -1.670 Adjustment of tax for previous years 0 -7.981 Adjustment of deferred tax 920 1.374 143 -8.277 Fixed asset investments 2 Investments in subsidiaries Cost at 1 November 2015 6.328.561 Demerger -107.751 Cost at 31 October 2016 6.220.810 Carrying amount at 31 October 2016 6.220.810 Investments in subsidiaries (DKK '000) Company Equity Profit for the year Ownership Dako Denmark A/S 1.019.920 128.926 100 % Equity 3 Share capital Retained profit Total Equity at 1 November 2015 104.991 6.229.841 6.334.832 Proposed distribution of profit 189.577 189.577 Equity at 31 October 2016 104.991 6.419.418 6.524.409 2016 DKK '000 Equity at 1 November 2011 101.605 Capital increase 2012 96 Capital increase 2013 3.290 Share capital at 31 October 2016 104.991 Share capital Share capital: A-aktier, 89.577.586 stk. a nom. 1 kr. 89.578 89.578 B-aktier, 15.413.288 stk. a nom. 1 kr. 15.413 15.413 104.991 104.991 Share capital Share capital: A-aktier, 89.577.586 stk. a nom. 1 kr. 89.578 89.578 B-aktier, 15.413.288 stk. a nom. 1 kr. 15.413 15.413 104.991 104.991Contingencies etc. 4 Joint liabilities The company is jointly and severally liable together with the parent company and the other group companies in the jointly taxed group for tax on the group’s jointly taxed income and for certain possible withholding taxes such as dividend tax and royalty tax, and for the joint registration of VAT. Tax payable of the group’s jointly taxed income is stated in the annual report of company Agilent Technologies Denmark ApS, which serves as management company for the joint taxation. Charges and securities 5 None. Related parties 6 Agilent Technologies Europe B.V., Parent company Agilent Technologies Inc., Ultimative parent company Ownership The following shareholders are recorded in the Company's register of shareholders as holding at least 5% of the votes or at least 5% of the share capital: Agilent Technologies Europe B.V. Holland, Groenelaan 5, 1186 AA Amstelveen, Holland. Consolidated Financial Statements The company is included in the Group Annual Report of Agilent Technologies, Inc. The Group Annual Report may be obtained at the following address: 5301 Stevens Creek Boulevard Santa Clara, CA 95051 302818292015-11-012016-10-31302818292015-11-012016-10-311302818292015-11-012016-10-311302818292015-11-012016-10-312302818292015-11-012016-10-313302818292015-11-012016-10-311302818292014-11-012015-10-31302818292015-11-012016-10-31g:RetainedEarningsMember302818292014-11-012015-10-31g:RetainedEarningsMember302818292016-10-31302818292015-10-31302818292015-11-01g:InvestmentsInGroupEnterprisesMember302818292015-11-012016-10-31g:InvestmentsInGroupEnterprisesMember302818292016-10-31g:InvestmentsInGroupEnterprisesMember302818292015-11-01g:ContributedCapitalMember302818292016-10-31g:ContributedCapitalMember302818292015-11-01g:RetainedEarningsMember302818292015-11-012016-10-31g:RetainedEarningsMember302818292016-10-31g:RetainedEarningsMemberiso4217:DKK