xbrli:pureiso4217:DKK731627182021-01-012021-12-31731627182021-01-012021-12-311731627182021-01-012021-12-311731627182021-01-012021-12-311731627182021-01-012021-12-312731627182021-01-012021-12-313731627182021-01-012021-12-312731627182021-01-012021-12-31731627182020-01-012020-12-31731627182021-01-012021-12-31fsa:RetainedEarningsMember731627182021-01-012021-12-31fsa:ProposedDividendRecognisedInEquityMember731627182021-01-012021-12-31fsa:ProposedDividendRecognisedInEquityMember731627182020-01-012020-12-31fsa:ProposedDividendRecognisedInEquityMember731627182021-01-012021-12-31fsa:RetainedEarningsMember731627182020-01-012020-12-31fsa:RetainedEarningsMember731627182021-12-31731627182020-12-31731627182021-01-01fsa:ContributedCapitalMember731627182021-01-01fsa:RetainedEarningsMember731627182021-01-01fsa:ProposedDividendRecognisedInEquityMember731627182021-01-01731627182021-12-31fsa:ContributedCapitalMember731627182021-12-31fsa:RetainedEarningsMember731627182021-12-31fsa:ProposedDividendRecognisedInEquityMemberGrundlag for konklusionKonklusion2022-06-102022-06-10Regnskabsklasse C, mellemstor virksomhed339635562020-01-012020-12-31Aarhus C80002City Tower, VærkmestergadeDeloitte Statsautoriseret RevisionspartnerselskabAalborgAalborg Øst9220Revisionspåtegning2021-12-312021-01-01 44RørdalsvejDensit ApS73162718731627189220 Aalborg ØstRørdalsvej 44DENSIT ApSÅrsrapportThe Board of Directors and the Executive Board have today considered and approved the annual report of Densit ApS for the financial year 01.01.2021 - 31.12.2021.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 Entity’s financial position at 31.12.2021 and of the results of its operations for the financial year 01.01.2021 - 31.12.2021.We believe that the management commentary contains a fair review of the affairs and conditions referred to therein.We recommend the annual report for adoption at the Annual General Meeting.AalborgIrina AbazaManoela Pereira FryBirgit AndersenIrina AbazaTo the shareholder of Densit ApSWe have audited the financial statements of Densit ApS for the financial year 01.01.2021 - 31.12.2021, which comprise the income statement, balance sheet, statement of changes in equity and notes, including a summary of significant accounting policies. The financial statements are prepared in accordance with the Danish Financial Statements Act. In our opinion, the financial statements give a true and fair view of the Entity’s financial position at 31.12.2021 and of the results of its operations for the financial year 01.01.2021 - 31.12.2021 in accordance with the Danish Financial Statements Act.We conducted our audit in accordance with International Standards on Auditing (ISAs) and additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the "Auditor’s responsibilities for the audit of the financial statements" section of this auditor’s report. We are independent of the Entity 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 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 Entity’s ability to continue as a going concern, for disclosing, as applicable, matters related to going concern, and for using the going concern basis of accounting in preparing the financial statements unless Management either intends to liquidate the Entity 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 Entity’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 Entity’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 Entity to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the financial statements, including the disclosures in the notes, and whether the financial statements represent the underlying transactions and events in a manner that gives a true and fair view. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.Management is responsible for the management commentary. Our opinion on the financial statements does not cover the management commentary, and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the management commentary and, in doing so, consider whether the management commentary is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. Moreover, it is our responsibility to consider whether the management commentary provides the information required under the Danish Financial Statements Act. Based on the work we have performed, we conclude that the management commentary is in accordance with the financial statements and has been prepared in accordance with the requirements of the Danish Financial Statements Act. We did not identify any material misstatement of the management commentary.AarhusHenrik VedelMikael Møllermne10052mne47835State Authorised Public AccountantState Authorised Public AccountantFinancial highlights2021 DKK'0002020 DKK'0002019 DKK'0002018 DKK'0002017 DKK'000Key figuresGross profit/loss58,44151,37029,07626,582 48,134Operating profit/loss25,65420,5364,515(3,802)13,058Net financials(82)(395)(3)(106)(427)Profit/loss for the year19,48815,2903,420(3,060)9,804Total assets138,32485,20926,74650,064101,965Investments in property, plant and equipment1,6833,0021,9663,035293Equity28,14133,65318,36341,94395,003RatiosReturn on equity (%)63.0758.7911.34(4.47)0.90Equity ratio (%)20.3439.4968.6683.7893.17Financial highlights are defined and calculated in accordance with the latest version of "Recommendations & Ratios" issued by the CFA Society Denmark.Return on equity (%) :Profit/loss for the year * 100 Average equityEquity ratio (%) :Equity * 100 Total assetsPrimary activitiesDensit ApS manufactures cement-based special materials to be used for security industry barriers, wear protection, industrial flooring and within offshore for reinforcement of platforms and foundation of offshore wind turbines. Moreover, the Company manufactures hardwearing components, especially for the cement and power station industry.Development in activities and financesIn 2021 Densit ApS realised a profit for the year of DKK 19,488k. Profit/loss for the year in relation to expected developmentsDevelopment for the 2021 is considered satisfying and above expectations. Especially revenue generation from Offshore Wind with several new contracts has been the driver of the continuous growth in both Gross- and Operating Profit.Uncertainty relating to recognition and measurementThere hasn’t been any uncertainty regarding recognition and measurement.Unusual circumstances affecting recognition and measurementThere has been no unusual circumstances with impact on recognition and measurement.OutlookDensit ApS expects a result before tax at DKK 20,000 to 25,000k for 2022. This is at the same level as 2021 which is caused by stable activity in the wind industry and a continuous focus on reducing costs. The Company expects the activities to be stable on the other markets in 2022. Knowledge resourcesDuring the year, the Company has had employees participating in Danish as well as international supplementary training and continuing education.Environmental performanceThe Company has been working intensively with environment and work environment in connection with the achieved approvals according to ISO 14001 and 18001.Research and development activitiesIn 2021 Densit ApS has been working on the development of a number of new products which may contribute to future growth. It is currently assessed whether the individual products can serve as the basis for patent applications. Foreign branchesThere are no foreign branches.Events after the balance sheet dateNo events have occurred after the balance sheet date to this date, which would influence the evaluation of this annual report.584410005137000024642000223190008145000851500025654000205360008700001690003950002557200020141000608400048510001948800015290000-4512000240000002400000025000000-4512000-9710000249000127800043000052800016050001595000464400041250006928000752600025600052100025600052100071840008047000405700024090003779300014159000418500001656800039380000989000048757000476410000352000100022000002640005050008840200060588000888000600013114000077162000138324000852090004000000400000014100046530002400000025000000281410003365300040000004653000250000003365300040000001410002400000015400001540000017770000177700080849000359700001108100049580001430500076000540000991000325400077840001100290004977900011002900051556000138324000852090000-25000000-250000001 Events after the balance sheet dateNo events have occured after the balance sheet date to this date which would influence the evaluation of this annual report. 2 Staff costs2021 DKK'0002020 DKK'000Wages and salaries19,80518,327Pension costs1,4101,355Other social security costs401407Other staff costs38554422,00120,633Average number of full-time employees292829283 Other financial expenses2021 DKK'0002020 DKK'000Financial expenses from group enterprises119Other financial expenses158386169395 2021 DKK'0002020 DKK'000Financial expenses from group enterprises119Other financial expenses1583861693954 Tax on profit/loss for the year2021 DKK'0002020 DKK'000Current tax5,5784,373Change in deferred tax5064786,0844,8515 Proposed distribution of profit and loss2021 DKK'0002020 DKK'000Ordinary dividend for the financial year24,00025,000Retained earnings (4,512)(9,710) 19,48815,2906 Property, plant and equipmentPlant and machinery DKK'000Other fixtures and fittings, tools and equipment DKK'000Leasehold improvements DKK'000Property, plant and equipment in progress DKK'000Cost beginning of year47,6061,4103,5444,125Additions2924950896Disposals(794)(419)(2,085)(377)Cost end of year47,1041,4861,4594,644Depreciation and impairment losses beginning of year(46,328)(882)(1,949)0Impairment losses for the year(780)000Depreciation for the year(541)(593)100Reversal regarding disposals7944192,0850Depreciation and impairment losses end of year(46,855)(1,056)1460Carrying amount end of year2494301,6054,6447 Financial assetsDeposits DKK'000Cost beginning of year255Additions256Disposals(255)Cost end of year256Carrying amount end of year256 Deposits DKK'000Cost beginning of year255Additions256Disposals(255)Cost end of year256Carrying amount end of year2568 Receivables from group enterprisesThe Company participates together with other Danish Group enterprises in a cash pool arrangement in which another company is liable as a sole contracting party towards the bank. Receivables and payables in relation to the cash pool arrangement are recognised as intercompany receivables and payables, respectively. At 31 December 2021, the item receivables from group enterprises includes an amount of DKK 48,7m. 9 Deferred tax Changes during the year2021 DKK'0002020 DKK'000Beginning of year352831Recognised in the income statement(506)(479)End of year(154)35210 PrepaymentsPrepayment consist of prepaid costs.11 Unrecognised rental and lease commitments2021 DKK'0002020 DKK'000Liabilities under rental or lease agreements until maturity in total5,5157,15812 Contingent liabilitiesThe Entity participates in a Danish joint taxation arrangement where ITW Denmark ApS serves as the administration company. According to the joint taxation provisions of the Danish Corporation Tax Act, the Entity is therefore liable for income taxes etc for the jointly taxed entities, and for obligations, if any, relating to the withholding of tax on interest, royalties and dividend for the jointly taxed entities. The jointly taxed entities' total known net liability under the joint taxation arrangement is disclosed in the administration company's financial statements.13 Assets charged and collateralDensit ApS has through its bank issued performance guarantees which amounts to a total of DKK 23,143k14 Related parties with controlling interestITW Denmark ApS, Priorsvej 36 Silkeborg, wholly owns the shares of the Entity and thus has control over the Entity. Illinois Tool Works Inc., Chicago, USA, Ultimate Parent15 Non-arm’s length related party transactionsOnly related party transactions not conducted on an arm’s length basis are disclosed in the annual report. No such transactions have been conducted in the financial year.16 Group relationsName and registered office of the Parent preparing consolidated financial statements for the smallest group: Illinois Tool Works Inc., 155 Harlem Avenue, Glenview, IL 60025, Chigago, USAThis annual report has been prepared in accordance with the provisions of the Danish Financial Statements Act governing reporting class C enterprises (medium).The accounting policies applied to these financial statements are consistent with those applied last year.falseRecognition and measurementAssets are recognised in the balance sheet when it is probable as a result of a prior event that future economic benefits will flow to the Entity, and the value of the asset can be measured reliably. Liabilities are recognised in the balance sheet when the Entity 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 Entity, and the value of the liability can be measured reliably. On initial recognition, assets and liabilities are measured at cost. Measurement subsequent to initial recognition 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 that confirm or invalidate affairs and conditions existing at the balance sheet date are considered at recognition and measurement. Income is recognised in the income statement when earned, whereas costs are recognised by the amounts attributable to this financial year.Foreign currency translationOn initial recognition, foreign currency transactions are translated applying the exchange rate at the transaction date. Receivables, payables and other monetary items denominated in foreign currencies that have not been settled at the balance sheet date are translated using the exchange rate at the balance sheet date. Exchange differences that arise between the rate at the transaction date and the rate in effect at the payment date, or the rate at the balance sheet date, are recognised in the income statement as financial income or financial expenses. Property, plant and equipment, intangible assets, inventories and other non-monetary assets that have been purchased in foreign currencies are translated using historical rates. When recognising foreign subsidiaries and associates that are independent entities, the income statements are translated at average exchange rates for the months that do not significantly deviate from the rates at the transaction date. Balance sheet items are translated using the exchange rates at the balance sheet date. Goodwill is considered belonging to the independent foreign entity and is translated using the exchange rate at the balance sheet date. Exchange differences arising out of the translation of foreign subsidiaries’ equity at the beginning of the year at the balance sheet date exchange rates and out of the translation of income statements from average rates to the exchange rates at the balance sheet date are classified directly as equity. Exchange adjustments of outstanding accounts with independent foreign subsidiaries, which are considered part of the total investment in the subsidiary in question, are classified directly as equity.When recognising foreign subsidiaries that are integral entities, monetary assets and liabilities are translated using the exchange rates at the balance sheet date. Non-monetary assets and liabilities are translated at the exchange rate at the time of acquisition or the time of any subsequent revaluation or writedown. The items of the income statement are translated at the average rates of the months; however, items deriving from non-monetary assets and liabilities are translated using the historical rates applicable to the relevant non-monetary items.Gross profit or lossGross profit or loss comprises revenue and production costs.RevenueRevenue from the sale of manufactured goods and goods for resale is recognised in the income statement when delivery is made and risk has passed to the buyer. Revenue from the sale of services is recognised in the income statement when delivery is made to the buyer. Revenue is recognised net of VAT, duties and sales discounts and is measured at fair value of the consideration fixed. Contract work in progress is included in revenue based on the stage of completion so that revenue corresponds to the selling price of the work performed in the financial year (the percentage-ofcompletion method).Production costsProduction costs comprise expenses incurred to earn revenue for the financial year. Production costs comprise direct and indirect costs for raw materials and consumables, wages and salaries, rent and lease as well as amortisation, depreciation and impairment losses relating to intangible assets and property, plant and equipment included in the production process. In addition, the item includes ordinary writedown of inventories.Distribution costsDistribution costs comprise costs incurred for sale and distribution of the Entity’s products, including wages and salaries for sales staff, advertising costs, travelling and entertainment expenses, etc as well as amortisation, depreciation and impairment losses relating to intangible assets and property, plant and equipment attached to the distribution process.Administrative expensesAdministrative expenses comprise expenses incurred for the Entity’s administrative functions, including wages and salaries for administrative staff and Management, stationery and office supplies as well as amortisation, depreciation and impairment losses relating to intangible assets and property, plant and equipment used for administration of the Entity.Other financial incomeOther financial income comprises changes of exchange rates.Other financial expensesOther financial expenses comprise bank fees and changes of exchange rates.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 in the income statement by the portion attributable to the profit for the year and recognised directly in equity by the portion attributable to entries directly in equity. The Entity is jointly taxed with its Parent and the Parent’s Danish subsidiaries. The current Danish income tax is allocated among the jointly taxed entities proportionally to their taxable income (full allocation with a refund concerning tax losses).Property, plant and equipmentPlant and machinery as well as other fixtures and fittings, tools and equipment are measured at cost less accumulated depreciation and impairment losses. Cost comprises the acquisition price, costs directly attributable to the acquisition and preparation costs of the 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. Straightline depreciation is made on the basis of the following estimated useful lives of the assets:Plant and machinery5-15 yearsOther fixtures and fittings, tools and equipment3-7 yearsLeasehold improvements5-10 yearsFor leasehold improvements and assets subject to finance leases, the depreciation period cannot exceed the contract period. Estimated useful lives and residual values are reassessed annually. The estimated residual value of tangible assets compromise DKK 0 Items of property, plant and equipment are written down to the lower of recoverable amount and carrying amount.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 progress consists of costs of raw materials, consumables, direct labour costs and indirect production costs. Indirect production costs comprise indirect materials and labour costs, costs of maintenance of, depreciation of and impairment losses relating to machinery, factory buildings and equipment used in the manufacturing process, and costs of factory administration and management. Finance costs are not included in cost. The net realisable value of inventories is calculated as the estimated selling price less completion costs and costs incurred to execute sale.ReceivablesReceivables are measured at amortised cost, usually equalling nominal value less writedowns for bad and doubtful debts.Deferred taxDeferred tax is recognised on all temporary differences between the carrying amount and tax-based value of assets and liabilities, for which the taxbased value of assets is calculated based on the planned use of each asset. Deferred tax assets, including the tax base of tax loss carryforwards, are recognised in the balance sheet at 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 measured at cost.CashCash comprises cash in hand and bank deposits.DividendDividend is recognised as a liability at the time of adoption at the general meeting. Proposed dividend for the financial year is disclosed as a separate item in equity. Extraordinary dividend adopted in the financial year is recognised directly in equity when distributed and disclosed as a separate item in Management's proposal for distribution of profit/loss. Other financial liabilitiesOther financial liabilities are measured at amortised cost, which usually corresponds to nominal value.Prepayments received from customersPrepayments received from customers comprise amounts received from customers prior to delivery of the goods agreed or completion of the service agreed.Tax receivable or payableCurrent tax receivable or payable is recognised in the balance sheet, stated as tax computed on this year's taxable income, adjusted for prepaid tax.Cash flow statementAccording to section 86(4) of the Danish Financial statements Act, the Company has omitted to prepare a cash flow statement as the Company is included in the cash flow statement of the Group.2022-06-10Birgit Andersen