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41410639 2021-10-01 2022-09-30 fsa:InvestmentsInAssociatesMember 41410639 2022-10-01 2023-09-30 relatedEntityIdentifier_asso_list_1 fsa:AssociateMember 41410639 2022-10-01 2023-09-30 fsa:DepositsLongtermInvestmentsAndReceivablesMember cmn:ConsolidatedMember 41410639 2022-10-01 2023-09-30 fsa:DepositsLongtermInvestmentsAndReceivablesMember 41410639 2022-10-01 2023-09-30 fsa:OtherReceivablesMember cmn:ConsolidatedMember 41410639 2022-10-01 2023-09-30 fsa:OtherReceivablesMember iso4217:DKK pure Årsrapport 33771231 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab Strandvejen 44 2900 Hellerup 2022-10-01 2021-10-01 2023-09-30 2022-09-30 41410639 Jettime a/s Amager Strandvej 390-392 2770 Kastrup +45 32 46 73 00 www.jettime.com 2020-06-08 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab 33771231 Strandvejen 44 2900 Hellerup Denmark 39 45 39 45 koebenhavn@pwc.dk 2024-01-15 Peter Schäfer Regnskabsklasse C, stor virksomhed Revisionspåtegning The Executive Board and Board of Directors have today considered and adopted the Annual Report of Jettime a/s for the financial year 1 October 2022 - 30 September 2023. The Annual Report is prepared in accordance with the Danish Financial Statements Act. In our opinion the Financial Statements and the Consolidated Financial Statements give a true and fair view of the financial position at 30 September 2023 of the Company and the Group and of the results of the Company and Group operations and of consolidated cash flows for 2022/23. In our opinion, 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. 2024-01-15 Kastrup Jørgen Holme CEO Peter Schäfer Chairman Lars Thuesen Ingolf Bernhard Pedersen To the shareholders of Jettime a/s Opinion In our opinion, the Consolidated Financial Statements and the Parent Company Financial Statements give a true and fair view of the financial position of the Group and the Parent Company at 30 September 2023 and of the results of the Group’s and the Parent Company’s operations and of consolidated cash flows for the financial year 1 October 2022 - 30 September 2023 in accordance with the Danish Financial Statements Act. We have audited the Consolidated Financial Statements and the Parent Company Financial Statements of Jettime a/s for the financial year 1 October 2022 - 30 September 2023, which comprise income statement, balance sheet, statement of changes in equity and notes, including a summary of significant accounting policies, for both the Group and the Parent Company, as well as consolidated statement of cash flows (”the Financial Statements”). Basis for Opinion We 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 Group 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 consolidated financial statements and parent company 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 Group´s and the Parent 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 Group or the Parent 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 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: 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. 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 Group´s and the Parent 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 Group´s and the Parent 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 Group and the Parent 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. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the Consolidated Financial Statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. 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 Management’s Review. Our opinion on the Financial Statements does not cover 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 Management’s Review and, in doing so, consider whether 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 Management’s Review provides the information required under the Danish Financial Statements Act. Based on the work we have performed, in our view, Management’s Review is in accordance with the Consolidated Financial Statements and the Parent Company Financial Statements and has been prepared in accordance with the requirements of the Danish Financial Statements Act. We did not identify any material misstatement in Management’s Review. Hellerup 2024-01-15 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab Jacob F Christiansen State Authorised Public Accountant mne18628 Jakob Thisted Binder State Authorised Public Accountant mne42816 40000000 81000000 6000000 -12000000 -3000000 -65000000 -3000000 -69000000 -46000000 -44000000 240000000 266000000 0 19000000 -12000000 -23000000 0 -22000000 0 60000000 77 54 16.0 20.3 15.0 -14.8 1.0 -2.1 -19.2 -16.5 Financial ratios are calculated in accordance with the Danish Society of Financial Analysts' guidelines. For terms and definitions, please see the accounting policies. Principal activitiesJettime is solely engaged in the Business-to-Business market offering air transport solutions for:• Primarily; Nordic tour operators who are offered full charter aircraft• Secondarily;• Other European airlines who are offered ad-hoc/short- and medium term capacity solutions(ACMI)• Ad-hoc full charter aircraftThe Group's activity is in all material respects performed through the parent company Jettime a/s ("Jettime"or "the Company"). Further the Group consist of a crewing company in Finland ("Jettime OY”), wholly ownedby the parent company. Jettime OY has no separate activity except of intercompany transactions with Jettime.Jettime is built on long-term partnerships with the customers and the suppliers, a model that has proved itsvalue both before and after the pandemic.Based on the post corona competition landscape the Company was established during summer 2020. As awhole, the airline industry has been through an unprecedented period, which has required extensive capitalinvestments and a high degree of agility, and it was, and still is the ambition to exploit the ongoing industryconsolidation to the benefit of the Company.After surviving a challenging hibernation and restart of operation during summer 2021 the focus during thisand the previous year has been to further strengthen the customer base and the operational platform as well asexploiting the benefits of the IOSA certification obtained in September 2022. This work has taken place inparallel to balancing post-pandemic and the Ukraine war related challenges across the industry.Jettime is well positioned to exploit market opportunities. Jettime is acknowledged as a competitive, agile,independent and experienced industry player in particularly the Nordic charter market. We are known for ouragility and flexibility, and we are used to work with different charter and ACMI partners, mimic their serviceconcept and adapt quickly to new requirements.Development in activities and financial mattersThe financial year 2022/23 - the Company's fourth operating year – was somewhat impacted by the aftermathof the covid-19 pandemic and the high inflation, leading to lower utilization of the fleet during the winterseason. During the year, Jettime has increased its operation and has gradually improved the utilization on thefleet, increased the number of aircraft in the fleet as well as the number of employees.The total flight production in 2022/23 amounted to 29.347 block hours compared to 20,405 in 2021/22.At the end of 2022/23 the Company had a fleet of 11 Boeing 737 NG aircraft compared to 8 at the end of2021/22.The average number of employees during 2022/23 was 405 compared to 181 in 2021/22. And finally, at theend of 2022/23, the Company had 430 employees compared to 322 at the end of 2021/22.The Company’s consolidated revenue in 2022/23 was DKK 1,708 million compared to DKK 1,044 million in2021/22. The Company showed a profit before tax of DKK 24 million in 2022/23, which compares to a profitof DKK 39 million in 2021/22. At year end 2022/23, the Company showed a positive equity of DKK 5 millioncompared to a negative equity of DKK 10 million at the end of 2021/22. Free cash at bank and in hand wasDKK 104 million at year end 2022/23 compared to DKK 81 million at the end of 2021/22.The total balance sheet amounted to DKK 522 million in 2022/23 up from DKK 477 million in 2021/22.In light of the result of controlled growth during a period affected by both post pandemic and war relatedeffects, Management isolated considers the result before tax of MDKK 24 for 2022/23 as satisfactory.However, going forward a higher operational margin is needed given the industry related risk picture.Capital resources and liquidityEquity at 30 September 2022 was negative DKK 10 million. During the financial year 2022/23, equity hasbeen improved with DKK 15 million leading to an equity at 30 September 2023 of positive DKK 5 million.During 2022/23 the company has repaid DKK 12 million in loans which were given to cover the purchase ofthe hangar facilities in Copenhagen Airport. As of September 2023, the company had no remainingoutstanding loans.In Management’s assessment, the liquidity from current free cash and from planned operations is sufficient tofinance the Company’s operation in the financial year 2023/24.InvestmentsThe Group’s investments for the year were DKK 53 million in total, comprising deposits on operationallyleased aircraft, DKK 2 million as well purchase of CO2 EU-ETS quotas, DKK 41 million and other investmentsand changes in fixed assets DKK 10 million.RisksPrice risksThe Company's use of jet fuel and CO2 emission quotas implies a particular risk due to the significantfluctuations in the energy market. The Company aims at hedging energy prices by entering into hedgingcontracts corresponding to more than 90% of its exposure.As a main rule, the Company enters into long-term flight agreements with charter companies. Hedging ofenergy prices is made either by the Company at the time of contracting with the charter companies and ingeneral at their expense - or by the charter companies where they carry the full price risk on energy.Foreign currency risksPurchase of jet fuel as well as lease- and aircraft related expenses are mainly settled in USD. This means thatprofit/loss for the year, cash flows and equity are influenced by the USD exchange rate development.It is company policy to hedge commercial currency risks. Hedging is primarily performed by natural hedge(balancing the Company’s USD costs with USD income and/or assets), and by means of forward exchangecontracts and options to hedge expected costs in USD within the coming 12 months. Speculative forwardexchange contracts are not made.Credit risksThe Company's credit risks relate primarily to financial assets recognized in the balance sheet.The Company does not have significant credit risks relating to one single customer or liaison as tradingconditions request prepayment from the customer before operating flights.Recognition & measurementThe principles for recognition & measurement are described in the accounting policies in note 2 & note 25.Subsequent eventsNo events have occurred after the balance sheet date which affect the Annual Report or the Company’sfinancial position.OutlookThe Company expects revenue of DKK 2.000 million and a profit before tax of DKK 20-30 million in 2023/24. Corporate Social ResponsibilityThe business model has been described under the Principal activities in the Management’s Review.Jettime has over the past year increased its production and added more aircraft to the fleet. However, theCompany is at the same time well aware that the aviation industry must become more sustainable – and thatJettime as an airline holds a responsibility to contribute to this development.The framework for the overall strategic approach within CSR are the UN’s Sustainable Development Goalsnumber 12 (“Ensure Sustainable Consumption & production Patterns”) and number 8 (“Decent Work &Economic Growth”).Jettime has a societal impact as employer, purchaser and producer of air transport solutions. At the sametime, as an airline, Jettime has a climate and environmental impact, most significantly through fossil fuels andconsequent CO2 emissions.Jettime strives to continually improve within the areas of climate and the environmental impact, as well astaking a social responsibility. Sustainable growth and development also entails striving for sustainableprofitability and financial growth. Jettime concentrates the efforts to become a more sustainable airline onpractical and operational improvements with the aim of reducing the amount of CO2 emissions from ouraircraft operation. Likewise, several initiatives included in our service on board are visible to our guests.Risk MatrixIn relation to corporate social responsibility, Jettime has assessed the potential negative impact of the airline’soperation on climate and environment, social conditions, employee conditions, human rights and anticorruption.Through this assessment, 8 potential CSR risks affiliated to Jettime’s production or to theCompany’s suppliers and products have been identified. These risks will be addressed individually throughoutthe report.LIKELYHOODThis financial year Jettime has continued to prioritize two of the risk factors with high likelihood; “Fossil fuelconsumptions & C02 emissions” and our “On board food and products”. In addition, IT security and dataprotection have been an area of attention and improvement the past year. The overall targets withinsustainability and supporting the risk factors are;For the period 2021-2025:• Reduce CO2 emissions per passenger seat kilometer by 10%• Reduce single use plastic products on board our aircraft by 50%Even though fossil fuels are the main element in operating a fleet of aircraft, Jettime believes things can bedone to continuously reduce the fuel consumption and thereby lowering the overall CO2 emissions. The “onboard” service to our guests is a very visible element in our environmental work and a range of plastic productshave been replaced by more sustainable alternatives.To ensure impact in Jettime’s organization and production, the relevant parts of the CSR strategy have beenplaced in the respective departments and teams of relevance who are working on the practical implementationof projects and initiatives such as reduction of CO2 and reduction of single-use plastic. The accountability ofthe overall sustainability plan is placed within the executive management.1. Fossil fuel consumptions & CO2 emissionsReducing carbon dioxide is a pivotal aspect of Jettimes environmental focus, as this by far is the single mostrelevant environmental denominator for Jettime and the airline industry in general. In relation to CO2emission, Jettime is registered and regulated by the EU Decree 2003/87EC where airlines register and reporttheir CO2 emission.The work on the improvement measures to achieve lower fuel consumption and CO2 emissions areconcentrated on 3 different initiatives;Split Scimitar Winglets (Aerodynamic, Weight and Efficiency Improvement)All of Jettimes aircraft are equipped with winglets which improve up-trust and optimize fuel economy andCO2 emission by up to 1,8% according to official Boeing calculations.Installing split scimitar winglets on the aircraft can further increase the fuel efficiency by lowering fuelconsumption and CO2 emission by an extra 1,8%.During the financial year Jettime has installed split scimitar winglets on two more aircraft, which brings thetotal up to 6 aircraft (more than half the fleet) which are equipped with split scimitar winglets.Cooperation with FuelVision (fuel efficiency application)Another area of development initiated during 2022/23 financial year was the exclusive partnership with thestartup company FuelVision. FuelVision is a company founded by two pilots who have a dedicated interest inbig data modeling, and they have developed a prototype application to measure fuel burn and CO2 emissionon each single flight based on how the pilot performs the flight.Jettime and FuelVision have initiated a cooperation to develop the prototype into a live product used byJettime pilots. The application was put into use for the pilots in May 2023 and is constantly modified andadjusted. The overall ambition is to investigate and seek knowledge of current flight efficiency when it comesto fuel consumption and CO2 emissions. Based on this knowledge and new insights Jettime introduces newstandard operating procedures for the pilots. The first results are expected during this financial year.Fleet RenewalAt year-end, Jettime operated one B737-700 and ten B737-800 aircraft. In the financial year 2022/23, Jettimehas added three aircraft to the fleet of the type B737-800. The B737-800 has a larger capacity than the B737-700 aircraft and can thus produce more effectively and transporting more passengers at a time.Due to the unification of Jettime’s fleet (B737 NG aircraft) and due to all aircraft equipped with winglets thetargeted reduction of CO2 emissions towards 2025 has started to materialize. The addition of more B737-800aircraft in Jettime’s fleet, the overall CO2 emissions have gone up, however, the utilization of capacity hasincreased, which means that more passengers were transported on each flight, hence affecting the CO2emission per passenger seat kilometer positively. The passenger load factor on our flights has increasedcompared to the previous financial year and improves the CO2 emission per PSK. By 2025 our target is toreduce the CO2 emission by 10% per PSK and we have reached 8% reduction so far with a PSK this financialyear of 67,0 g.2. On-Board food and productsThe service delivery on board Jettime flights in terms of meals served and products used in the dry store havecontinued changing towards more sustainable alternatives.Our guest meals served on board does not contain meet from 4 legged animals, instead we serve hot mealswith lots of vegetables and chicken or pure vegetarian. Single use plastic is replaced by a food box and foodbowl made from degradable material and the cutlery is a EU certified wooden product. Our food supplier holdsan ISO 14001 certification and use pure wind energy in their food production. The amount of dry storeproducts on board has been reduced and plastic stirrers, plastic straws and plastic coffee cups are no longerpart of the assortment.Inflight magazines on board for the guests have been removed thus reducing both the weight of the aircraftand the paper used in production.Both pilots and cabin crew perform a mandatory “green briefing” on board all flights and thereby enhance theguest experience and give them insight into the Jettime initiatives to become a more sustainable airline.In connection with the development towards more electronically based communication and workingequipment for our flight crew, less paper has been used on board Jettimes aircraft with the introduction of anElectronic Flightbag as replacement of paper manuals for both pilots and cabin crew.This means, that two digital tablets holding the same information have replaced approximately 20 kg of paperin each cockpit. This saves a significant amount of production related to paper waste, just as it has lowered theweight of the aircraft and thereby reduced the annual CO2 emission.3. Maintenance Repair (MR) waste – lubricants/chemicalsJettime has its own Technical Department in CPH airport which maintains the airline’s aircraft. In thisconnection, Jettime’s mechanics handle different types of waste that can pose a health risk. Likewise, thewaste has a potential negative impact on the environment if not handled correctly.To mitigate these risks, Jettime has contracted the environmental service partner Stena Recycling, whoensures correct storage and dispose of problematic waste and chemicals.No significant spillages have been reported in connection with technical maintenance of Jettime’s aircraft inthe financial year 2022/23.On board our aircraft the cabin crew conduct waste sorting as a standard procedure.4. Employee strikesStrikes among employees of the airline can potentially have a major impact on Jettime’s ability to live up to itscustomer promise and the service experience expected of the airline’s passengers. Since the start-up ofJettime, there have been no strikes among any of Jettime’s employee groups.However, to mitigate this potential risk, Jettime has a number of policies relating to working environment andworking conditions. Moreover, six different groups of employees are in Jettime covered by collectiveagreements, and employees engaged in the same activities are guaranteed the same working conditions,making all employees covered by local collective agreements.Cooperation with the six unions in Jettime, 4 in Denmark and 2 in Finland, takes place within the frameworkof national laws and agreements affecting the unit concerned, and Jettime expects a continued constructivecooperation with the unions in the years to come.5. Physical Working EnvironmentAs an employer, Jettime is responsible for ensuring decent work conditions and a healthy workingenvironment.Jettime has a ‘Health and Safety and Environment Policy’ as well as a ‘Health and Safety and EnvironmentCommittee’. The Committee ensures compliance with legislation, policies on health, safety and environmentalaspects and representatives from the 4 employee groups including Jettime oy in Finland meet 4 times a year.In connection with Jettime’s internal Workplace Assessment from February 2022 (APV), one of the major keypoints was the quality of the crew meals. Both Danish cabin and cockpit crew expressed a wish for morevariation, larger portions, and more greens. These three requests have been accommodated with an adjustedmeal concept for Danish crew in May 2023.During the Summer 2023 a similar workplace survey was conducted in our Finnish company. The resultsrevealed no areas of concern.Jettime employees have the benefit of a private health insurance provider which offers a wide range oftreatments and services.Jettime is in close dialogue with union representatives to prevent labor right violations. Should a potentiallabor violation occur in relation to an employee’s employment, the Company will cooperate with the relevantunion representative to reach a fair conclusion of the matter.6. Bribery and CorruptionJettime work with a code of conduct which includes our expectations towards our suppliers on anticorruption.Due to the fact that the company's main activities take place in the Nordic region, in which local authoritiesdemand full compliance with legislation on anti-corruption, it is management's assessment that the risk thatthe company becomes involved with corruption or bribery is limited. As a buyer, Jettime uses the services of anumber of subcontractors. To mitigate this, relevant suppliers will sign the code of conduct as part of thecontract procedure. Jettime does not accept bribery and corruption and expects our partners to maintain thesame integrity in relation to all business affairs.In the on-going follow-up with suppliers, Jettime has found no breaches regarding anti-corruption, anticompetitivebehavior, anti-trust or monopoly practices in the financial year 2022/23, and Jettime expects thispractice to continue onwards.7. Human Rights ComplianceJettime has no specific policies on human rights. As an operator in the Nordic region, we have deemedcompliance with human rights a given.By being an operator in the Nordic region, which is characterized by a high degree of protection of humanrights, the risk that the company's activities have a negative impact on human rights is considered low.Consequently, a separate policy on human rights has not been deemed necessary. We do, however, alwayscomply with all relevant legislation both locally and globally.In September 2022 Jettime launched a formal Whistleblower reporting platform on our Intranet for theemployees to use in case of suspicion or concerns regarding bribery, corruption or human rights violation etc.The platform is administered by an external law firm. No reports have been filed so far.The Company’s Employee Handbook contains a general corporate policy applying to all employees. Moreover,Jettime promotes a ’Just Culture’ policy that applies to the entire Company. This implies that all employeeshave access to a reporting tool by means of which all potential safety issues may be reported anonymously andwithout consequence, which promotes openness about errors and incidents. In that way, a safer workingenvironment with a focus on communication and openness is ensured.As a buyer, Jettime uses the services of a number of subcontractors. Jettime has therefore introduced aJettime Code of Conduct. The document is mandatory for bigger partners and suppliers to sign, and itdemands decent working conditions for anyone involved in the work for Jettime. Board of DirectorsAt the end of the financial year 2022/23, the Company’s Board of Directors comprised of two male nonownersmembers and one male owner. Jettime has a target of by 2025 to have at least one person of eachgender represented on Jettime’s Board of Directors.Jettime has not in the financial year 2022/23 reached the target of gender representation on the Board, asthere have been no changes, additions or recruitments for Jettime’s Board in this period.Jettime’s Senior ManagementJettime’s Senior Management is defined by the Company’s Executive Team – consisting of the CEO, CCO, VPFinance & Business Support, VP Technical, VP Flight Operations and VP Management Support.The ratio in Jettime’s senior management by the end of the 2022/23 financial year was 83% male and 17%female while ratio in Jettime’s mid-level management (department leaders) by the end of the 2022/23financial year was 65% male and 35% female.Jettime has a target of by 2025 to have at least two person of each gender represented on Jettime’s SeniorManagement team. Jettime has not in the financial year 2022/23 reached the target of gender representationin the senior management team, as there have been no changes, additions or recruitments for Jettime’s seniormanagement team in this period.Jettime aims to ensure equal opportunities and representation for men and women and performs internalleadership training among the Company’s mid-level managers with the ambition of qualifying both male andfemale employees to enter the Senior Management or mid management level. Furthermore, Jettime strives toalways have both genders represented in the final job interview when selecting new hires to enhance diversityin our employee groups. 8. Data exposure & data ethicsThroughout its business, Jettime is working with data and complies with GDPR legislation includingperforming internal audits according to a fixed schedule among our system owners.As part of a highly regulated industry, Jettime has already implemented high standards for IT security and iscurrently evaluating steps to further improve the IT security and data protection standards.Data ethics is governed in Jettime’s IT policy manual section 9, which describes the data policy and the how toprotect and govern access to private and other data. Jettime is actively working to further improve IT and datasecurity and has engaged with external IT security experts.Finally, Jettime is actively working to protect all data, and has implemented data processing agreements withrelevant suppliers 1707812000 1044271000 1707812000 1044265000 0 31371000 0 31371000 1336048000 798700000 1336048000 798700000 98967000 64445000 123576000 72872000 272797000 212497000 248188000 204064000 244264000 165933000 220235000 157683000 4473000 3317000 4473000 3317000 24060000 43247000 23480000 43064000 0 0 557000 177000 -722000 0 -722000 0 5234000 598000 5234000 598000 4741000 4885000 4718000 4879000 23831000 38960000 23831000 38960000 12300000 6360000 12300000 6360000 11531000 32600000 11531000 32600000 557000 177000 10974000 32423000 0 146000 0 146000 5718000 171000 5718000 171000 40926000 6169000 40926000 6169000 46644000 6486000 46644000 6486000 10983000 11918000 10983000 11918000 327000 1136000 327000 1136000 5978000 3654000 5978000 3654000 6696000 1247000 6696000 1247000 23984000 17955000 23984000 17955000 10445000 26905000 10445000 26905000 25319000 4426000 25247000 4407000 175632000 144266000 174458000 143599000 521644000 477005000 521169000 476514000 0 0 699000 176000 1528000 2250000 1528000 2250000 20922000 18946000 20922000 18946000 252934000 287102000 252934000 287102000 275384000 308298000 276083000 308474000 346012000 332739000 346711000 332915000 7855000 5372000 7855000 5372000 204000 0 0 0 28158000 26384000 28158000 26384000 64126000 57715000 63850000 57696000 103651000 81179000 102753000 80531000 1000000 25000000 1000000 25000000 0 0 699000 176000 3380000 -1000 3415000 0 3634000 3225000 3634000 3225000 338474000 330455000 338474000 330455000 338474000 330455000 338474000 330455000 0 12264000 0 12264000 15810000 6360000 15810000 6360000 15810000 18624000 15810000 18624000 50813000 75904000 50813000 75904000 0 0 3073000 0 3652000 0 3652000 0 1000000 25000000 1000000 25000000 -3049000 -38580000 -3783000 -38757000 4965000 -10356000 4965000 -10356000 33829000 21335000 33460000 22088000 74101000 41043000 70922000 39799000 162395000 138282000 161920000 137791000 178205000 156906000 177730000 156415000 521644000 477005000 521169000 476514000 The share capital consists of 1000000 shares of a nominal value of TDKK 0,001. No shares carry any special rights. There have been no changes in the share capital in the past five years. 25000000 -1000 3225000 -38580000 25000000 176000 0 3225000 -38757000 0 -34000 0 0 0 -34000 0 0 0 -24000000 0 0 24000000 -24000000 0 0 0 24000000 0 -963000 0 0 0 0 -963000 0 0 0 4378000 0 0 0 0 4378000 0 0 0 0 409000 0 0 0 0 409000 0 0 0 0 11531000 0 557000 0 0 10974000 1000000 3380000 3634000 -3049000 1000000 699000 3415000 3634000 -3783000 11531000 32600000 17012000 14369000 58336000 88373000 86879000 135342000 5234000 190000 4741000 4885000 87372000 130647000 87372000 130647000 40611000 2979000 10049000 5034000 1976000 17959000 -52636000 -25972000 12264000 1222000 0 26121000 -12264000 -27343000 22472000 77332000 81179000 3847000 103651000 81179000 103651000 81179000 0 0 The accumulated cost for purchases of CO2 quotas in the financial year, which has still not been utilized are presented as part of the investing activities in the cash flow statement. The Group has realized a gain before tax of DKK 23.8 million and the equity is positive with DKK 5.0 million 30 September 2023.The Group has experienced continously increasing activity over the financial year 2022/23 with a total of 11 aircraft in operation in the summer 2023. The Group has prepared a budget for financial year 2023/24 which show a positive result and significant headroom in the liquidity throughout the year. In connection with the preparation of the financial statements, management applies accounting estimates and judgements. Estimates and judgements are continually evaluated and based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The Company accrues for future aircraft maintenance. The future costs for aircraft maintenance is subject to accounting estimates. Such accounting estimates are subject to more uncertainty due to i.e. changes in pricing for the separate events. The Company has recognized a receivable regarding future maintenance (prepayments) which is expected to offset future aircraft costs. The utilization of the receivable is subject to uncertainty due to the expected share of future maintenance costs to be covered by the receivable etc. No events materially affecting the assessment of the Annual Report have occurred after the balance sheet date. Geographical segments Revenue, Scandinavia 1707812000 1044271000 1707812000 1044271000 0 0 0 0 0 0 0 -6000 1707812000 1044271000 1707812000 1044265000 Business segments Charter and ad hoc 1549510000 1015216000 1549510000 1015210000 ACMI 158302000 29055000 158302000 29055000 0 0 0 0 0 0 0 0 1707812000 1044271000 1707812000 1044265000 221009000 151694000 201182000 144716000 19716000 11355000 16204000 10169000 3539000 2884000 2849000 2798000 244264000 165933000 220235000 157683000 405 181 351 152 Personnel costs 0 2926000 0 2926000 Other fixed costs 0 28445000 0 28445000 0 31371000 0 31371000 Special items include significant income and expenses of a special nature relative to the enterprise's ordinary operating activities. Special items also include other significant amounts of a nonrecurring nature. Last year special items consisted of government support regarding COVID-19.Special items for the year are specified above, indicating where they are recognized in the income statement. 235000 13000 235000 13000 4999000 585000 4999000 585000 4741000 4885000 4718000 4879000 4741000 4885000 4718000 4879000 13263000 6360000 13263000 6360000 12300000 6360000 12300000 6360000 963000 0 963000 0 559000 559000 250000 250000 2942000 2942000 0 0 6000000 6000000 66578000 66578000 0 0 0 0 -32228000 -32228000 559000 559000 6250000 6250000 37292000 37292000 0 0 0 0 3225000 3225000 0 0 0 0 409000 409000 0 0 0 0 3634000 3634000 413000 413000 79000 79000 0 0 146000 146000 453000 453000 0 0 559000 559000 532000 532000 0 0 0 0 5718000 5718000 40926000 40926000 Acquired other similar rights consist of CO2 quotas. CO2 quotas are expensed when utilized over production costs. CO2 quotas are measured at fair value on the balance sheet date. The fair value adjustment is booked directly on the equity. Acquired other similar rights consist of CO2 quotas. CO2 quotas are expensed when utilized over production costs. CO2 quotas are measured at fair value on the balance sheet date. The fair value adjustment is booked directly on the equity. 0 0 0 0 176000 0 -34000 -1000 557000 177000 699000 176000 Jettime OY Finland 100 2250000 0 2250000 0 0 2250000 0 2250000 2250000 2250000 2250000 2250000 -500000 0 -500000 0 -222000 0 -222000 0 -722000 0 -722000 0 Positive differences arising on initial measurement of associates at net asset value 2224000 0 Positive differences arising on initial measurement of associates at net asset value 2224000 0 Fuel Vision ApS Copenhagen 25 18946000 18946000 287102000 287102000 1976000 1976000 85946000 85946000 0 0 -120114000 -120114000 20922000 20922000 252934000 252934000 Other receivables primarily consists of receivables regarding future maintenance. Of other receivables on TDKK 252,934, TDKK 24,059 is falling due within 1 year Inventories 7855000 5372000 7855000 5372000 7855000 5372000 7855000 5372000 Accrued delay costs 7279 2855 Provision, aircraft maintenance 324601 323118 Provision for obligation to return 6594 4482 338474 330455 The provisions are expected to mature as follows: Within 1 year 57408 20916 Between 1 and 5 years 281066 309539 338474 330455 0 0 0 0 0 12264000 0 12264000 0 0 0 0 0 12264000 0 12264000 0 0 0 0 15810000 6360000 15810000 6360000 3652000 0 3652000 0 19462000 6360000 19462000 6360000 Payments due within 1 year are recognised in short-term debt. Other debt is recognised in long-term debt. The debt falls due for payment as specified below: -5234000 -598000 4741000 4885000 4473000 3317000 722000 0 12300000 6360000 10000 405000 -2483000 -1901000 27961000 -131982000 8019000 149062000 20461000 73194000 4378000 0 Rental and lease obligations Lease obligations under operating leases. Total future lease payments: Within 1 year 143,749,000 107,394,000 143,749,000 107,394,000 Between 1 and 5 years 328,784,000 282,764,000 328,784,000 282,764,000 472,533,000 390,158,000 472,533,000 390,158,000 Aircraft leases 463,438,000 380,298,000 463,438,000 380,298,000 Rental of property, hangar, etc 9,095,000 9,860,000 9,095,000 9,860,000 Other contingent liabilities The company is taxed jointly with the parent company JT3H ApS and SMBCO Invest ApS. The current tax expense is allocated among the companies of the Danish tax pool in proportion to their taxable income (full absorption with refunds for the losses). Controlling interest JT3H ApS, c/o Nosca A/S Krumtappen 4, st., 2500 ValbyJettime A/S is part of the consolidated report for JT3H ApS Majority shareholder and ultimate owner Transactions Transactions are conducted on market terms and conditions. The Annual Report of Jettime a/s for 2022/23 has been prepared in accordance with the provisions of the Danish Financial Statements Act applying to large enterprises of reporting class C. The accounting policies applied remain unchanged from last year. The Consolidated Financial Statements and the Parent Company Financial Statements for 2022/23 are presented in TDKK. 1 Revenues are recognised in the income statement as earned. Furthermore, value adjustments of financial assets and liabilities measured at fair value or amortised cost are recognised. Moreover, all expenses incurred to achieve the earnings for the year are recognised in the income statement, including depreciation, amortisation, impairment losses and provisions as well as reversals due to changed accounting estimates of amounts that have previously been recognised in the income statement. Assets are recognised in the balance sheet when it is probable that future economic benefits attributable to the asset 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 probable that future economic benefits will flow out of the Company, and the value of the liability can be measured reliably. Assets and liabilities are initially measured at cost. Subsequently, assets and liabilities are measured as described for each item below. Basis of consolidation The Consolidated Financial Statements comprise the Parent Company, Jettime a/s, and subsidiaries in which the Parent Company directly or indirectly holds more than 50% of the votes or in which the Parent Company, through share ownership or otherwise, exercises control. Enterprises in which the Group holds between 20% and 50% of the votes and exercises significant influence but not control are classified as associates. On consolidation, items of a uniform nature are combined. Elimination is made of intercompany income and expenses, shareholdings, dividends and accounts as well as of realised and unrealised profits and losses on transactions between the consolidated enterprises. The Parent Company's investments in the consolidated subsidiaries are set off against the Parent Company's share of the net asset value of subsidiaries stated at the time of consolidation. Leases in terms of which the Group assumes substantially all the risks and rewards of ownership (finance leases) are recognised in the balance sheet at the lower of the fair value of the leased asset and the net present value of the lease payments computed by applying the interest rate implicit in the lease or an alternative borrowing rate as the discount rate. Assets acquired under finance leases are depreciated and written down for impairment under the same policy as determined for the other fixed assets of the Group. The remaining lease obligation is capitalised and recognised in the balance sheet under debt, and the interest element on the lease payments is charged over the lease term to the income statement. All other leases are considered operating leases. Payments made under operating leases are recognised in the income statement on a straight-line basis over the lease term. All leases of aircrafts are considered operating leases. Transactions in foreign currencies are translated at the exchange rates at the dates of transaction. Exchange differences arising due to differences between the transaction date rates and the rates at the dates of payment are recognised in financial income and expenses in the income statement. Where foreign exchange transactions are considered hedging of future cash flows, the value adjustments are recognised directly in equity. Receivables, payables and other monetary items in foreign currencies that have not been settled at the balance sheet date are translated at the exchange rates at the balance sheet date. Any differences between the exchange rates at the balance sheet date and the rates at the time when the receivable or the debt arose are recognised in financial income and expenses in the income statement. Fixed assets acquired in foreign currencies are measured at the transaction date rates. Information on business segments and geographical segments based on the Group´s risks and returns and its internal financial reporting system. Business segments are regarded as the primary segments. Income from the sale of charter and ACMI flights is recognised in the income statement on the departure date.Income from the sale of duty-free and non-duty-free goods, included and reported as “Ancillary and Other”, is recognised in the income statement on delivery date. Revenue is recognised exclusive of VAT, taxes and sales discounts. ***Production costs***Production costs comprise e.g. costs of fuel, charges in connection with air transport and other costs of maintenance and operation of the aircraft fleet including lease costs.***Lease costs***The Company has entered into agreements on operating leases of aircraft. Payments relating to operating leases are recognized in the income statement over the term of the lease. Other external expenses comprise indirect production costs and expenses for premises, sales and distribution as well as office expenses, etc. Staff costs comprise wages, salaries, pension and social security costs to own staff and hired full-time consultants. Amortisation, depreciation and impairment losses comprise amortisation, depreciation and impairment of intangible assets and property, plant and equipment. CO2-quotas are expensed as production costs when utilized. Other operating income and other operating expenses comprise items of a secondary nature to the main activities of the Group, including government support concerning COVID-19 related to personnel costs and other fixed costs. The items “Income from investments in subsidiaries” and “Income from investments in associates” in the income statement include the proportionate share of the profit for the year. Financial income and expenses comprise interest, financial expenses in respect of finance leases, realised and unrealised exchange adjustments. Tax for the year consists of current tax for the year and changes in deferred tax for the year. The tax attributable to the profit for the year is recognised in the income statement, whereas the tax attributable to equity transactions is recognised directly in equity. The Company is jointly taxed with wholly owned Danish and foreign subsidiaries. The tax effect of the joint taxation is allocated to enterprises in proportion to their taxable incomes. Acquired trademarks and acquired licenses are measured at the lower of cost less accumulated amortisation and recoverable amount. Acquired trademarks are amortised on a straight-line basis over its useful life, which is assessed to be 5 years. Acquired licenses are amortised over the licence period; however not exceeding 3-8 years.Other similar rights consist of CO2-quotas. At initial recognition CO2-quotas are measured at cost. The cost price for CO2-quotas are recognized based on the expected average price for the CO2-quotas used in the financial year. Subsequently CO2-quotas are measured at fair value. The revaluation is booked directly on equity. CO2-quotas are expensed when utilized over production costs in the financial statements. Property, plant and equipment are measured at cost less accumulated depreciation and less any accumulated impairment losses. Cost comprises the cost of acquisition and expenses directly related to the acquisition up until the time when the asset is ready for use. Depreciation based on cost reduced by any residual value is calculated on a straight-line basis over the expected useful lives of the assets, which are: Buildings 15 years Other fixtures and fittings, tools and equipment 3-5 years Airplanes 5 year Airplanes primarily consist of repatriating costs as well as cost for modifications of leased aircrafts. The costs are depreciated over the leasing period which usually equals 5 year.The fixed assets’ residual values are determined at nil. Depreciation period and residual value are reassessed annually. The carrying amounts of intangible assets except of CO2-quotas and property, plant and equipment and investments are reviewed on an annual basis to determine whether there is any indication of impairment other than that expressed by amortisation and depreciation. If so, the asset is written down to its lower recoverable amount. Investments in subsidiaries and associates are recognised and measured under the equity method. The items “Investments in subsidiaries” and “Investments in associates” in the balance sheet include the proportionate ownership share of the net asset value of the enterprises calculated on the basis of the fair values of identifiable net assets at the time of acquisition with deduction or addition of unrealised intercompany profits or losses and with addition of the remaining value of any increases in value and goodwill calculated at the time of acquisition of the enterprises. The total net revaluation of investments in subsidiaries and associates is transferred upon distribution of profit to “Reserve for net revaluation under the equity method“ under equity. The reserve is reduced by dividend distributed to the Parent Company and adjusted for other equity movements in the subsidiaries and the associates. Subsidiaries and associates with a negative net asset value are recognised at DKK 0. Any legal or constructive obligation of the Parent Company to cover the negative balance of the enterprise is recognised in provisions. Other fixed asset investments consist of Deposits, Receivable future maintenance and Receivables from group enterprises.Deposits are initially recognized at cost. Subsequently, deposits denominated in foreign currencies are measured at the exchange rate at the balance sheet date. Receivable future maintenance comprises the contribution made to lessors for future maintenance work which is recognized to the extent that the payments are expected to be reimbursed at the time of incurrence of future maintenance costs. Inventories are measured at the lower of cost under the FIFO method and net realisable value. The net realisable value of inventories is calculated at the amount expected to be generated by sale of the inventories in the process of normal operations with deduction of selling expenses and costs of completion. The net realisable value is determined allowing for marketability, obsolescence and development in expected selling price. Receivables are measured in the balance sheet at the lower of amortised cost and net realisable value, which corresponds to nominal value less provisions for bad debts. Prepayments comprise prepaid expenses concerning subsequent financial years. Other provisions consist of provision for future maintenance work on aircrafts, provision for the costs of returning aircraft on operating leases and accrued delay costs. Provisions are initially recognized at cost and are subsequently measured at net realisable value or value in use. Deferred income tax is measured using the balance sheet liability method in respect of temporary differences arising between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes on the basis of the intended use of the asset and settlement of the liability, respectively. Deferred tax assets, including the tax base of tax loss carry-forwards, are measured at the value at which the asset is expected to be realised, either by elimination in 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 will be effective under the legislation at the balance sheet date when the deferred tax is expected to crystallise as current tax. Any changes in deferred tax due to changes to tax rates are recognised in the income statement or in equity if the deferred tax relates to items recognised in equity. Current tax liabilities and receivables are recognised in the balance sheet as the expected taxable income for the year adjusted for tax on taxable incomes for prior years and tax paid on account. Extra payments and repayment under the on-account taxation scheme are recognised in the income statement in financial income and expenses. Loans are recognised initially at the proceeds received net of transaction expenses incurred. Subsequently, the loans are measured at amortised cost; the difference between the proceeds and the nominal value is recognised as an interest expense in the income statement over the loan period. Other debts are measured at amortised cost, substantially corresponding to nominal value. The cash flow statement shows the Group’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 Group’s cash and cash equivalents at the beginning and end of the year. Cash flows from operating activities are calculated as the net profit/loss for the year adjusted for changes in working capital and non-cash operating items such as depreciation, amortisation and impairment losses, and provisions. Working capital comprises current assets less short-term debt excluding items included in cash and cash equivalents. Cash flows from investing activities comprise cash flows from acquisitions and disposals of intangible assets, property, plant and equipment as well as fixed asset investments. Cash flows from financing activities comprise cash flows from the raising and repayment of long-term debt as well as payments to and from shareholders. Cash and cash equivalents comprise ”Cash at bank and in hand”. The cash flow statement cannot be immediately derived from the published financial records. Gross margin Gross profit x 100 / Revenue Operating margin Operating profit/loss x 100 / Revenue Current ratio Current assets at year end x 100 / Total current liabilities at year end Solvency ratio Equity at year end x 100 / Total assets at year end