25141350 2022-01-01 2022-12-31 25141350 2022-12-31 25141350 2022-01-01 2022-12-31 101 25141350 2022-01-01 2022-12-31 102 25141350 2021-01-01 2021-12-31 25141350 2021-12-31 25141350 2021-01-01 2021-12-31 101 25141350 2021-01-01 2021-12-31 102 25141350 2020-01-01 2020-12-31 25141350 2020-12-31 25141350 2020-01-01 2020-12-31 101 25141350 2020-01-01 2020-12-31 102 25141350 2019-01-01 2019-12-31 25141350 2019-12-31 25141350 2019-01-01 2019-12-31 101 25141350 2019-01-01 2019-12-31 102 25141350 2018-01-01 2018-12-31 25141350 2018-12-31 25141350 2018-01-01 2018-12-31 101 25141350 2018-01-01 2018-12-31 102 25141350 2021-12-31 fsa:ContributedCapitalMember 25141350 2022-01-01 2022-12-31 fsa:ContributedCapitalMember 25141350 2022-12-31 fsa:ContributedCapitalMember 25141350 2021-12-31 fsa:RetainedEarningsMember 25141350 2022-01-01 2022-12-31 fsa:RetainedEarningsMember 25141350 2022-12-31 fsa:RetainedEarningsMember 25141350 2022-01-01 2022-12-31 1 25141350 2022-01-01 2022-12-31 1 25141350 2022-01-01 2022-12-31 2 25141350 2022-01-01 2022-12-31 3 25141350 2022-01-01 2022-12-31 1 iso4217:USD xbrli:pure Mette Munk Boje-Larsen Sonion A/S Betonvej 10 4000 Roskilde 25141350 Roskilde 46306666 46306677 www.sonion.com sonion@sonion.com Mette Munk Boje-Larsen chairman Christian Johannes Gellert Nielsen Kenneth Hune Petersen Kenneth Hune Petersen Deloitte Statsautoriseret Revisionspartnerselskab Weidekampsgade 6 2300 Copenhagen S The Board of Directors and the Executive Board have today considered and approved the annual report ofSonion A/S for the financial year 01.01.2022 - 31.12.2022.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 at31.12.2022 and of the results of its operations for the financial year 01.01.2022 - 31.12.2022.We believe that the management commentary contains a fair review of the affairs and conditionsreferred to therein.We recommend the annual report for adoption at the Annual General Meeting. Roskilde To the shareholder of Sonion A/S We have audited the financial statements of Sonion A/S for the financial year 01.01.2022 - 31.12.2022,which comprise the income statement, balance sheet, statement of changes in equity and notes, includinga summary of significant accounting policies. The financial statements are prepared in accordance with theDanish Financial statements Act. In our opinion, the financial statements give a true and fair view of the Company’s financial position at31.12.2022 and of the results of its operations for the financial year 01.01.2022 - 31.12.2022in accordance with the Danish Financial statements Act. We conducted our audit in accordance with International Standards on Auditing (ISAs) and additionalrequirements applicable in Denmark. Our responsibilities under those standards and requirements arefurther described in the Auditor’s responsibilities for the audit of the financial statements section of thisauditor’s report. 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 ethicalresponsibilities in accordance with these requirements and the IESBA Code. We believe that the auditevidence 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 fairview in accordance with the Danish Financial statements Act, and for such internal control asManagement determines is necessary to enable the preparation of financial statements that arefree from material misstatement, whether due to fraud or error.In preparing the financial statements, Management is responsible for assessing the Company’s ability tocontinue as a going concern, for disclosing, as applicable, matters related to going concern, and for usingthe going concern basis of accounting in preparing the financial statements unless Management eitherintends to liquidate the Company 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 arefree from material misstatement, whether due to fraud or error, and to issue an auditor’s report thatincludes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that anaudit conducted in accordance with ISAs and the additional requirements applicable in Denmark willalways detect a material misstatement when it exits. Misstatements can arise from fraud or error and areconsidered 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 inDenmark, 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 fraudor error, design and perform audit procedures responsive to those risks, and obtain audit evidence that issufficient and appropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error, as fraud may involvecollusion, 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 proceduresthat are appropriate in the circumstances, but not for the purpose of expressing an opinion on theeffectiveness of the Company’s internal control.• Evaluate the appropriateness of accounting policies used and the reasonableness of accountingestimates and related disclosures made by Management. • Conclude on the appropriateness of Management’s use of the going concern basis of accounting inpreparing the financial statements, and, based on the audit evidence obtained, whether a materialuncertainty 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 drawattention in our auditor’s report to the related disclosures in the financial statements or, if suchdisclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidenceobtained 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 content of the financial statements, including thedisclosures in the notes, and whether the financial statements represent the underlying transactions andevents in a manner that gives a true and fair view. We communicate with those charged with governance regarding, among other matters, the plannedscope and timing of the audit and significant audit findings, including any significant deficiencies in internalcontrol 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 notexpress any form of assurance conclusion thereon.In connection with our audit of the financial statements, our responsibility is to read the managementcommentary and, in doing so, consider whether the management commentary is materially inconsistentwith the financial statements or our knowledge obtained in the audit or otherwise appears to bematerially misstated.Moreover, it is our responsibility to consider whether the management commentary provides theinformation required under the Danish Financial statements Act.Based on the work we have performed, we conclude that the management commentary is in accordancewith the financial statements and has been prepared in accordance with the requirements of the DanishFinancial statements Act. We did not identify any material misstatement of the management commentary. Copenhagen 33963556 Henrik Wolff Mikkelsen State Authorised Public Accountant mne33747 229990000 224872000 205630000 228337000 223980000 11788000 7346000 10200000 15106000 14257000 2569000 -3631000 -742000 1973000 4426000 1154000 1088000 -2915000 -1309000 1054000 2711000 -3370000 -4242000 -888000 2870000 408451000 430486000 457276000 470431000 503911000 309000 656000 686000 184000 665000 57497000 51264000 54416000 58667000 60184000 22 23 25 30 29 0.05 -0.06 -0.07 -0.01 0.05 0.14 0.12 0.12 0.12 0.12 Net profit ratio (%) Net profit ratio (%) Net profit ratio (%) Net profit ratio (%) Net profit ratio (%) 0.01 -0.02 -0.00 0.01 0.02 Return on assets (%) Return on assets (%) Return on assets (%) Return on assets (%) Return on assets (%) 0.02 -0.02 -0.01 0.01 0.03 The ratios have been prepared in accordance with the recommendations and guidelines issued by the Danish Society of Financial Analysts.Ratios Calculation formula ExplanationReturn on equity (%) Profit/loss for the year x 100 The Company's return on capital in-Average equityvested in the Company by the owner.Equity ratio (%) Equity x 100 The financial strength of theTotal assetsCompany.Net profit ratio (%) Operating profit x 100 Profitability of the Company.RevenueReturn on assets (%) Operating profit x 100 The Company's ability to generateAverage operating assetsreturns on capital invested. Primary activitiesThe primary activity of the Company is development of micro mechanical components and sales ofadvanced micro acoustic and micro mechanical component and solutions.In cooperation with group related companies the Company provides solutions for manufacturers ofhearing instruments.At group level we are a global leader within sales and development of advanced microacoustic and micromechanical components as well as cost-efficient production. We combine our audiological expertise withour substantial experience in low-cost production areas.In 2022, we succesfully continued our strategy aimed at servicing the hearing health industry withinnovative technologies and solutions and we now have an even stronger platform.In recent years, we have made an expansion of our R&D capacity and we have made investments inproduction expansions. These actions have taken place to meet the demand there is in the market for our innovative products.For 2022 we have seen that these investments continue to provide a satisfactory yield.Our customers have shown interest in the many products we have introduced in the recent yearsand we have similar expectations for our 2023 launches. Our quality, delivery performance and production efficiency have been at a high satisfactory level, which means that we have been able to meet our customers’ expectations.We feel strongly positioned to capitalise on the possibilities we see in our market and we thus expect torealize growth in 2023.Development in activities and financesThe Company realised a revenue growth of 2% compared to 2021, measured in the main currency of theCompany, US Dollar. The Company’s operating results and financial development were realised as expected in our latest annual report and, as a whole, they are considered satisfactory.Gross profitGross profit amounts to USD 11.8 million equivalent to a gross margin of 5% which is a slight increase of 2%-points compared to 2021.Profit from operating activitiesOperating profit amounts to USD 2.6 million, which is a increase of USD 6.2 million compared to 2021.Financial income and expensesFor 2022, these items comprise primarily interest expenses regarding interest and foreign exchangeadjustments of loans, including bank loans.Balance sheetThe total assets at the end of 2022 showed an amount of USD 408 million equivalent to a decrease ofUSD 22 million compared to 2021.RisksSonion A/S is comitted to a high standard of business conduct and rational management of our risks inorder to protect the Company’s assets, secure shareholder investments and comply with applicable laws.Sonion A/S follows the Group’s risk management program.Events after the balance sheet dateNo events have occurred after the balance sheet date to this date which would influence the evaluationof this annual report.OutlookWe expect the hearing instrument market to grow 1-3% in 2023, which is lower than the long-term volume growth of approximately 5-7% annually. Based on the underlying increase in the market for hearing aids, combined with positive customer feedback of new product launches, we expect to continue our growth in 2023. Compared to 2022, a revenue growth of around 3% is expected. This leads to an expected operating profit in the range of USD 3 million for 2023. The target of the Company was to include at least 20% female board members in the board of directors by the end of 2023. The target has been reached as 33% are currently female. The Group has chosen to publish the statutory report on corporate social responsibility on the Company’swebsite. Please use the following URL:https://www.sonion.com/wp-content/uploads/Sonion-ESG-Report-2022.pdf Group policies for data ethics are available via the annual report for Novo Nordisk Fonden, CVR-no 10582989. 218202000 217526000 5868000 7555000 3351000 3422000 12748000 7033000 11594000 5945000 3723000 -2543000 1012000 827000 1131000 1737000 75576000 81874000 76707000 83611000 45000 303000 324000 582000 0 20000 290000 153000 659000 1058000 265693000 271193000 4271000 4277000 269964000 275470000 347330000 360139000 1980000 0 5616000 6808000 7596000 6808000 32423000 36409000 699000 554000 4670000 1328000 210000 208000 38003000 38499000 15522000 25040000 61121000 70347000 1757000 1757000 55740000 49507000 0 267351000 135000 0 135000 267351000 250004000 33137000 142000 134000 3426000 30000 1685000 2920000 87095000 70205000 1983000 329000 6485000 5115000 350819000 111871000 350954000 379222000 408451000 430486000 1757000 49507000 0 3521000 3521000 0 2711000 1757000 55740000 Other equity postings composes of fair value changes of hedging instruments less related tax. 1. RevenueSonion A/S omits to disclose the distribution of the revenue in business areas and geographical segmentsin accordance with the Danish Financial Statement Act § 96 as this otherwise could cause significantdamage to the Company. 2. Staff costsWages and salaries 3,159 3,159Pension costs 147 154Other social security costs 14 93,319 3,322 In accordance with the Danish Financial Statement Act § 98b Executive Board costs are not specified as it consists of one person. 3. Other financial incomeFinancial income arising from group enterprises 7,874 4,764Other financial income 3,717 126Exchange rate adjustments 1,157 2,14312,748 7,033 4. Other financial expensesFinancial expenses from group enterprises 330 435Interest expenses 8,145 5,510Exchange rate adjustments 3,119 011,594 5,945 5. Tax on profit/loss for the yearTax on current year taxable income 1,157 802Change in deferred tax for the year -145 28Adjustment concerning previous years 0 -31,012 827 2711000 -3370000 Acquiredintangibleassets GoodwillUSD'000 USD'0007. Intangible assetsCost beginning of year 2,609 125,960Additions 306 0Cost end of year 2,915 125,960Amortisation and impairment losses beginning of year -872 -44,086Amortisation for the year -912 -6,298Amortisation and impairment losses end of year -1,784 -50,384Carrying amount end of year 1,131 75,576An impairment test based on normalized earnings has been conducted and the recoverable amount exceeds the carrying amount. Other fix-tures and Property,fittings, plant andPlant and tools and equipment Right-of-usemachinery equipment in progress assetsUSD'000 USD'000 USD'000 USD'0008. Property, plant and equipmentCost beginning of year 20,660 4,481 20 435Additions 0 19 0 290Disposals 0 0 -20 0Cost end of year 20,660 4,500 0 725Depreciation andimpairment losses beginningof the year -20,357 -3,899 0 -282Depreciation for the year -258 -277 0 -153Depreciation and impairment losses endof the year -20,615 -4,176 0 -435Carrying amount end of year 45 324 0 290 Receivablesfrom group Otherenterprises receivablesUSD '000 USD '000 9. Fixed asset investmentsCost begnning of year 271,193 4,277Instalments -5,500 -6Cost end of year 265,693 4,271Carrying amount end of year 265,693 4,271 10. Deferred taxChanges during the yearBeginning of year 554Recognised in the income statement 145End of year 699The deferred tax assets is expected to be set-off against taxable income in the foreseeable future. 11. Contributed capital The contributed capital consists of 12.023.465 shares of nominally DKK 1 each. Instalments Instalments Instalmentswithin 12 within 12 beyond 12months months months2022 2021 2022USD'000 USD'000 USD'00012. Liabilities other than provisionsBank loans 250,004 33,137 0250,004 33,137 0The bank loan has been refinanced for a two-year period early May 2023.13. Lease liabilitiesInstalments Instalments Instalmentswithin 12 within 12 beyond 12months months months2022 2021 2022USD'000 USD'000 USD'000Lease liabilities 142 134 135142 134 135 14. Other payablesVAT and duties 1,093 1,056Wages and salaries, personal income taxes, social security costs,etc. payable 896 406Other costs payable 4,496 3,6536,485 5,115 15. Fees to the auditor appointed by the Annual General MeetingStatutory audit services 34 22Tax services 37 61Other service 41 61112 144 16. Application of financial instrumentsIn order to hedge the value of future cash flows, the Company applies forward exchange contracts,options and interest swaps. At 31 December 2022, the Company had an unrealized net gain of USD 4,558k, which has been recognized under other receivables with USD 4,558kand in equity. At 31 December 2021, the Company had an unrealized net gain of USD 43kwhich has been recognized under other receivables with USD 1,197k, other payables with USD 1,154k. and in equity. At 31 December 2022, the nominal value of the contracts entered into amounts to USD 23,700 k (2021: USD19,900 k). All currency hedging contracts have been entered to hedge costs in EUR, DKK, PLN and CHF. The nominal amount of the interest swap is USD 133.000k. 17. Contingent liabilitiesSonion A/S has entered into rental contracts which will terminate without further notice at June 302023, equivalent to USD 75 k.Sonion A/S has provided a payment guarantee to third party of USD 365 k.Sonion A/S has outstanding lease payments of USD 112 k.The Company participates in a Danish joint taxation arrangement. According to the joint taxationprovisions of the Danish Corporation Tax Act, the Company is therefore liable for income taxes etc for thejointly taxed companies and for obligations, if any, relating to the withholding of tax on interest, royaltiesand dividend for the jointly taxed companies. 18. Related parties with controlling interestRelated parties with a controlling interest:Name Registered office Basis of influenceNovo Nordisk Fonden Hellerup, Denmark Ultimate owner19. Transactions with related partiesOnly non-arms length related party transactions are disclosed in the anuual report. No such transactions were conducted during the financial year.20. Group relationsName and registered office of the Parent preparing consolidated financial statements for the largest and smallest group: Novo Nordisk Fonden, Hellerup, Denmark 21. Subsequent eventsNo events have occurred after the balance sheet date to this date which would influence the evaluation of this annual report. Reporting classThis annual report has been presented in accordance with the provisions of the Danish FinancialStatements Act governing reporting class C enterprises (large).The financial statements is presented in USD, which is the functional currency of the Company since a significant part of the sales and purchases of the Company and thereby also trade receivables and trade payables are denominated in USD. The DKK exchange rate against USD applied is 6.9722 for 2022and 6.5612 for 2021.The accounting policies applied to these financial statements are consistent with those applied last year.Recognition and measurementAssets are recognised in the balance sheet when it is probable as a result of a prior event that futureeconomic benefits will flow to the Company, and the value of the asset can be measured reliably.Liabilities are recognised in the balance sheet when the Company 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 Company, and the value of the liability can be measured reliably.On initial recognition, assets and liabilities are measured at cost. Measurement subsequent to initialrecognition 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 thatconfirm or invalidate affairs and conditions existing at the balance sheet date are considered atrecognition and measurement.Income is recognised in the income statement when earned, whereas costs are recognised by theamounts attributable to this financial year.Foreign currency translationOn initial recognition, foreign currency transactions are translated applying the exchange rate at thetransaction date. Receivables, payables and other monetary items denominated in foreign currencies thathave not been settled at the balance sheet date are translated using the exchange rate at the balancesheet date. Exchange differences that arise between the rate at the transaction date and the rate ineffect at the payment date, or the rate at the balance sheet date are recognised in the income statementas financial income or financial expenses. Property, plant and equipment, intangible assets, inventories andother non-monetary assets that have been purchased in foreign currencies are translated using historicalrates.Derivative financial instrumentsOn initial recognition in the balance sheet, derivative financial instruments are measured at cost andsubsequently at fair value. Derivative financial instruments are recognised under other receivables orother payables.Changes in the fair value of derivative financial instruments classified as and complying with therequirements for hedging future transactions are recognised directly in equity. When the hedgedtransactions are realised, the accumulated changes are recognised as part of cost of the relevant financialstatement items.For derivative financial instruments that do not comply with the requirements for being treated as hedginginstruments, changes in fair value are recognised currently in the income statement as financial income orfinancial expenses.Income statementRevenueRevenue from the sale of goods for resale is recognised at the point in time when control has been transferred to customers and if income can be measured reliably and is expected to be received.Revenue is recognised net of VAT, duties and sales discounts and is measured at fair value of the consideration fixed.Revenue is recognized in accordance with IFRS 15 ‘Revenue from Contracts with Customers’.Production costsProduction costs comprise cost of sales and indirect production cost, including wages and salaries anddepreciation and amortisation incurred to achieve the years’s revenue. Production cost also includedevelopment cost, that do not meet the critieria for capitalization in the balance sheet.Distribution costsDistribution costs comprise costs incurred for distribution of goods sold, including cost for sales anddistribution staff, advertising cost as well as depreciation.Administrative costsAdministrative costs comprise expenses incurred for the Company’s administrative functions, includingwages and salaries for administrative staff and Management, stationery and office supplies as well asdepreciation.Other financial incomeOther financial income comprises interest income, including interest income on receivables from groupenterprises and currency gains.Other financial expensesOther financial expenses comprises interest expenses, including interest expenses on payables to groupenterprises, currency losses as well as 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 inthe income statement by the portion attributable to the profit for the year and recognised directly inequity by the portion attributable to entries directly in equity. The Company is part of joint taxation. The current Danish income tax is allocated among the jointly taxedcompanies proportionally to their taxable income (full allocation with a refund concerning tax losses)Balance sheetGoodwillGoodwill is the positive difference between cost and value in use of assets and liabilities taken over aspart of the acquisition. Goodwill is amortised straight-line over its estimated useful life which is fixedbased on the strategic assessment gained by Management for each business area. The amortisationperiod is 20 years. The amortisation is included in production costs.Goodwill is written down to the lower of recoverable amount and carrying amount.Intellectual property rights etcIntellectual property rights etc. comprise patents.Intellectual property rights acquired are measured at cost less accumulated amortisation and impairmentlosses. Patents are amortised over their remaining duration.Property, plant and equipmentPlant and machinery as well as other fixtures and fittings, tools and equipment are measured at cost lessaccumulated depreciation and impairment losses.Cost comprises the acquisition price, costs directly attributable to the acquisition and preparation costs ofthe asset until the time when it is ready to be put into operation. The basis of depreciation is cost less estimated residual value after the end of useful life.Straight-line depreciation is made on the basis of the following estimated useful lives of the assets:Plant and machinery 5-10 yearsOther fixtures and fittings, tools and equipment 3-10 yearsItems of property, plant and equipment are written down to the lower of recoverable amount andcarrying amountGains and losses from the sale of property, plant and equipment are calculated as the difference betweenselling price less selling cost and carrying amount at the time of sale. Gains or losses are recognised in theincome statement as adjustment to depreciation and impairment losses, or under other operating incomeif the selling price exceeds original cost.ReceivablesReceivables are measured at amortised cost, usually equalling nominal value less writedowns for bad anddoubtful debts.InventoriesInventories are measured at the lower of cost using the FIFO method and net realisable value.Cost consists of purchase price plus delivery costs. Cost of manufactured goods and work in progressconsists of costs of raw materials, consumables, direct labour costs and indirect production costs.The net realisable value of inventories is calculated as the estimated selling price less completion costsand costs incurred to execute sale. Furthermore, net realizable value is determined with regard tomarketability, obsolescence and development in expected selling price.Deferred taxDeferred tax is recognised on all temporary differences between the carrying amount and tax-based valueof assets and liabilities, for which the tax-based value of assets is calculated based on the planned use ofeach asset.Deferred tax assets, including the tax base of tax loss carryforwards, are recognised in the balance sheetat their estimated realisable value, either as a set-off against deferred tax liabilities or as net tax assets.PrepaymentsPrepayments comprise incurred costs relating to subsequent financial years. Prepayments are measuredat cost.CashCash comprises cash in hand and bank deposits.LeasesThe Company applies IFRS16 'Leases'. The right-of-use assets have been recognised based on the amount equal to the leasing debt, adjusted for any lease prepayments. Subsequently, the right-of-use assets are depreciated on a straight line basis over the lease term. A right-of-use asset is remeasured when the leasing debt is remeasured.Leasing debt is recognised based on the present value of the remaining lease payments, discounted using the incremental borrowing rate as of the beginning of the year. Short-term leases and low value leases are not recognized as right-of-use assets and leasing debt. For building leases, lease terms are estimated taking the size of the building, its strategic importance and the estimated time frame necessary to vacate the premises into consideration. The estimated lease term is reassessed at each reporting date.Other financial liabilitiesOther financial liabilities are measured at amortised cost, which usually corresponds to nominalvalue.Income tax receivable or payableCurrent tax payable or receivable is recognised in the balance sheet, stated as tax computed on thisyear's taxable income, adjusted for prepaid tax. According to section 86(4) of the Danish Financial Statements Act, a cash flow statement has not beenprepared. Annual report Auditor's report on audited financial statements ParsePort XBRL Converter 2022-01-01 2022-12-31 2021-01-01 2021-12-31 2023-05-31 Reporting class B 2023-05-31 25141350 Sonion A/S Betonvej 10 4000 Roskilde Opinion Basis for Opinion 2023-05-31