truefalsePreben Eggers OlsenÅrsrapport25578198KPMGDampfaergevej 28DK-2100 Copenhagen2020-04-012021-03-312019-04-012020-03-312021-08-302021-08-3013438048Omron Electronics A/STheilgaards Torv 3, 1.4600KøgeDKDenmarkKøge Deloitte33963556mne27790statsaut. revisor2100CopenhagenDKDenmark45707077602021-08-30Regnskabsklasse BfalsefalseRevisionspåtegningThe Board of Directors and the Executive Board have today discussed and approved the annual report of Omron Electronics A/S for the financial year 1 April 2020 – 31 March 2021.The annual report has been prepared in accordance with the Danish Financial Statements Act.We recommend that the annual report be approved at the annual general meeting.Køge,Per PilegaardGeneral ManagerPreben OlsenChairmanVincent Spencer KingPer PilegaardTo the shareholders of Omron Electronics A/SWe conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the "Auditor's responsibilities for the audit of the financial statements" section of our report. We are independent of the Company in accordance with the International Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants (IESBA Code) and the additional requirements applicable in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these rules and requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.Copenhagen,30918105309063312563086526598594534402182185233800408951943446917425647993313915263100342397551737959082939746350000029000002959083974685525128203111760107621972851389655170385108437143236498082797294513302222162022871765314533200651430422524658065753229665752366282713076074131730603632237837287217370367013793702510000000100000007885084926003500000290000014288508133926001626601626602542196139342629010182883714307557157871322454124283615346661610666920189731231509992273192724544425370367013793702510000000492600290000000290000002959083500000100000007885083500000Investments The accounting policies used in the preparation of the financial statements are consistent with those of last year. Other receivables are recognised at amortised cost.3536Control Omron Electronics A/S is part of the consolidated financial statements of Omron Europe B.V., Wegalaan 67-69, 2132 JD, Hoofddorp, Holland, registered office, which is the smallest and largest group, respectively, in which the Company is included as a subsidiary.In our opinion, the financial statements give a true and fair view of the Company's assets, liabilities and financial position at 31 March 2021 and of the results of the Company's operations for the financial year 1 April 2020 – 31 March 2021. Further, in our opinion, the Management's review gives a fair review of the matters discussed in the Management's review.We have audited the financial statements of Omron Electronics A/S for the financial year 1 April 2020 – 31 March 2021 comprising income statement, balance sheet, statement of changes in equity and notes, including accounting policies. The financial statements are prepared in accordance with the Danish Financial Statements Act. In our opinion, the financial statements give a true and fair view of the Company's assets, liabilities and financial position at 31 March 2021 and of the results of the Company's operations for the financial year 1 April 2020 – 31 March 2021 in accordance with the Danish Financial Statements Act.Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the Danish Financial Statements Act and for such internal control that Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, Management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting in preparing the financial statements unless Management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.Our objectives are to obtain reasonable assurance as to whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs and the additional requirements in Denmark will always detect a material misstatement when it exists. Misstatements may arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users made on the basis of these financial statements. As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional judgement and maintain professional scepticism throughout the audit. We also identify and assess the risks of material misstatement of the company financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control. obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management. conclude on the appropriateness of Management's use of the going concern basis of accounting in preparing the financial statements and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern. evaluate the overall presentation, structure and contents of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that gives a true and fair view. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.Management is responsible for the Management's review. Our opinion on the financial statements does not cover the Management's review, and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the Management's review and, in doing so, consider whether the Management's review is materially inconsistent with the financial statements or our knowledge obtained during the audit, or otherwise appears to be materially misstated. Moreover, it is our responsibility to consider whether the Management's review provides the information required under the Danish Financial Statements Act. Based on the work we have performed, we conclude that the Management's review is in accordance with the financial statements and has been prepared in accordance with the requirements of the Danish Financial Statements Act. We did not identify any material misstatement of the Management's review. The Company's activities consist of sale, delivery and marketing of sensors, vision systems, control components together with PLC, software, networks and drives for automation.The financial year 2020/21 has been a challenging, but acceptable, year for Omron Electronics A/S. We were heavily influenced by the Covid-19 lock downs in Q2/Q3 2020. But from Q4 and forward we gradually recovered and ended really strong by the end of the year of FY20. The result of this is that we entered the FY21 with a very strong orderbook and a promising pipeline. The financial year 2021/22 is expected to be affected by the global supply chain crises, which have followed the Covid-19. This situation is effecting us and the most of our customers. We are in close cooperation/communication with our customers to minimise the effect of this situation. It is expected that the situation will be normalised during Q3 of 2021. No other significant events have occurred after the balance sheet date of importance to the annual report.The annual report of Omron Electronics A/S for 2020/21 has been prepared in accordance with the provisions applying to reporting class B entities under the Danish Financial Statements Act with opt-in from higher reporting classes.On initial recognition, transactions denominated in foreign currencies are translated at the exchange rates at the transaction date. Foreign exchange differences arising between the exchange rates at the transaction date and the date of payment are recognised in the income statement as financial income or financial expenses. Receivables, payables and other monetary items denominated in foreign currencies are translated at the exchange rates at the balance sheet date. The difference between the exchange rates at the balance sheet date and the date at which the receivable or payable arose or was recognised in the latest financial statements is recognised in the income statement as financial income or financial expenses. Upon recognition of foreign subsidiaries and associates that are independent entities, the income statements are translated into Danish kroner at average exchange rates for the month, and balance sheet items are translated at the exchange rates at the balance sheet date. Foreign exchange differences arising upon translation of foreign subsidiaries' opening equity and results at the exchange rates at the balance sheet date are recognised directly in equity. Foreign exchange adjustments of balances with independent foreign subsidiaries considered part of the total investment in the subsidiary are recognised directly in equity. Similarly, foreign exchange gains and losses on loans and derivative financial instruments taken out for the purpose of hedging investments in foreign subsidiaries are recognised directly in equity. Upon recognition of foreign subsidiaries that are integrated entities, monetary items are translated at the exchange rates at the balance sheet date. Non-monetary items are translated at the exchange rates at the date of acquisition or the date of subsequent revaluations of the asset. Income statement items are translated at the exchange rates at the transaction date, whereas items derived from non-monetary items are translated at historical exchange rates for the non-monetary item.Pursuant to Section 32 of the Danish Financial Statements Act, the Company has decided only to disclose gross profit.Income from the sale of goods, comprising the sale of goods for resale, is recognised in revenue when delivery and transfer of risk to the buyer have taken place, and the income may be measured reliably and is expected to be received. The date of transfer of the most significant benefits and risks is determined using standard Incoterms ® 2020. Revenue is measured at the fair value of the agreed consideration excluding VAT and taxes charged on behalf of third parties. All discounts granted are recognised in revenue.Cost of sales comprises costs incurred to generate revenue for the year. This item also comprises direct costs for goods for resale and changes to inventory of goods for resale.Other operating income comprises items secondary to the activities of the entity, including gains on the disposal of property, plant and equipment.Other external costs comprise distribution costs and costs related to sales, sales campaigns, administration, office premises, operating leases, etc.Staff costs comprise wages and salaries, including holiday allowance, pension and other social security costs, etc., to the Company's employees, excluding reimbursements from public authorities.Financial income and expenses comprise interest income and expense, financial costs regarding finance leases, gains and losses on securities, payables and transactions denominated in foreign currencies, amortisation of financial assets and liabilities as well as surcharges and refunds under the on-account tax scheme, etc. Tax for the year comprises current corporation tax for the year and changes in deferred tax, including changes in tax rates. The tax expense relating to the profit for the year is recognised in the income statement, and the tax expense relating to amounts directly recognised in equity is recognised directly in equity.Fixtures and fittings, tools and equipment and leasehold improvements are measured at cost less accumulated depreciation and impairment losses.  Cost comprises the purchase price and any costs directly attributable to the acquisition until the date on which the asset is available for use. Indirect production overheads and borrowing costs are not recognised in cost. The basis of depreciation is cost less any projected residual value after the end of the useful life. Depreciation is provided on a straight-line basis over the estimated useful life. The estimated useful lives are as follows: The useful life and residual value are reassessed annually. Changes are treated as accounting estimates, and the effect on depreciation is recognised prospectively. Depreciation is recognised in the income statement as production costs, distribution costs and administrative expenses, respectively. Gains and losses on the disposal of property, plant and equipment are stated as the difference between the selling price less selling costs and the carrying amount at the date of disposal. Gains and losses are recognised in the income statement as other operating income or other operating costs, respectively.Cars, tools and equipment 5 years Fixtures and fittings 3 years Computer equipment 2 years Leasehold improvements 8 yearsOn initial recognition, leases for fixed assets that transfer substantially all risks and rewards incident to ownership to the Company (finance leases) are recognised in the balance sheet at the lower of fair value and the net present value of future lease payments. When calculating the net present value, the interest rate implicit in the lease or the incremental borrowing rate is used as the discount factor. Assets held under finance leases are subsequently treated as the Company's other fixed assets. The capitalised lease obligation is recognised in the balance sheet as a liability at amortised cost, allowing the interest element of the lease payment to be recognised in the income statement over the term of the lease. All other leases are operating leases. Payments relating to operating leases and other leases are recognised in the income statement over the term of the lease. The Company's total obligation relating to operating leases and other leases is disclosed as contractual obligations and contingencies, etc.The carrying amount of property, plant and equipment is subject to an annual test for indications of impairment other than the decrease in value reflected by depreciation or amortisation. Impairment tests are conducted of individual assets or groups of assets when there is an indication that they may be impaired. Write-down is made to the recoverable amount if this is lower than the carrying amount. The recoverable amount is the higher of an asset's net selling price and its value in use. The value in use is determined as the present value of the forecast net cash flows from the use of the asset or the group of assets, including forecast net cash flows from the disposal of the asset or the group of assets after the end of the useful life.Inventories are measured at cost in accordance with the FIFO method. Where the net realisable value is lower than cost, inventories are written down to this lower value. Goods for resale and raw materials and consumables are measured at cost, comprising purchase price plus delivery costs. The net realisable value of inventories is calculated as the sales amount less costs of completion and costs necessary to make the sale and is determined taking into account marketability, obsolescence and development in expected selling price.Receivables are measured at amortised cost. Write-down is made for bad debt losses where there is an objective indication that a receivable or a portfolio of receivables has been impaired. If there is an objective indication that an individual receivable has been impaired, write-down is made on an individual basis.Current tax payable and receivable is recognised in the balance sheet as tax computed on the taxable income for the year, adjusted for tax on the taxable income of prior years and for tax paid on account. Deferred tax is measured using the balance sheet liability method on all temporary differences between the carrying amount and the tax value of assets and liabilities based on the planned use of the asset or settlement of the liability. However, deferred tax is not recognised on temporary differences relating to goodwill non-deductible for tax purposes and on office premises and other items where the temporary differences arise at the date of acquisition without affecting either profit/loss or taxable income. Deferred tax assets, including the tax value of tax loss carryforwards, are recognised at the expected value of their utilisation within the foreseeable future; either as a set-off against tax on future income or as a set-off against deferred tax liabilities in the same legal tax entity. Any deferred net assets are measured at net realisable value. Deferred tax is measured in accordance with the tax rules and at the tax rates applicable at the balance sheet date when the deferred tax is expected to crystallise as current tax. Changes in deferred tax as a result of changes in tax rates are recognised in the income statement or equity, respectively.The expected dividends payment for the year is disclosed as a separate item under equity.Financial liabilities are recognised at cost at the date of borrowing, corresponding to the proceeds received less transaction costs paid. In subsequent periods, the financial liabilities are measured at amortised cost using the effective interest method. Accordingly, the difference between cost and the nominal value is recognised in the income statement over the term of the loan together with interest expenses. Finance lease obligation comprise the capitalised residual lease obligation of finance leases. Other liabilities are measured at net realisable value.Wages and salaries 23,717,978 24,517,066 Pensions 1,656,713 1,771,170 Other social security costs 256,174 310,358 25,630,865 26,598,594 Average number of full-time employees 35 36Depreciation of property, plant and equipment 53,440 218,218 Other financial costs 69,913 92,083 Exchange adjustments costs 364,556 82,173 434,469 174,256 Current tax for the year 931,928 970,361 Deferred tax for the year 45,644 5,345 Adjustment of tax concerning previous years 25,851 -189 1,003,423 975,517 DKK Fixtures and fittings, tools and equipment Leasehold improvements Total Cost at 1 April 2020 2,468,973 1,041,835 3,510,808 Additions for the year 0 111,760 111,760 Cost at 31 March 2021 2,468,973 1,153,595 3,622,568 Depreciation and impairment losses at 1 April 2020 -2,340,770 -1,031,073 -3,371,843 Depreciation for the year -42,678 -10,762 -53,440 Depreciation and impairment losses at 31 March 2021 -2,383,448 -1,041,835 -3,425,283 Carrying amount at 31 March 2021 85,525 111,760 197,285 The contributed capital consists of 1 share of a nominal value of DKK 10.000.000.0-1 years 5,346,659 6,106,669 1-5 years 2,542,196 1,393,426 7,888,855 7,500,095Operating lease obligations Liabilities under rental or lease agreements until maturity in total 2,730,585 2,832,368 134380482020-04-012021-03-31134380482020-04-012021-03-311134380482019-04-012020-03-31134380482021-03-31134380482020-03-31134380482020-04-012021-03-311134380482020-04-012021-03-311134380482020-04-012021-03-312134380482020-04-012021-03-313134380482020-04-012021-03-31c:ProposedDividendRecognisedInEquityMember134380482019-04-012020-03-31c:ProposedDividendRecognisedInEquityMember134380482020-04-012021-03-31c:ContributedCapitalMember134380482020-04-01c:ContributedCapitalMember134380482021-03-31c:ContributedCapitalMember134380482020-04-012021-03-31c:RetainedEarningsMember134380482020-04-01c:RetainedEarningsMember134380482021-03-31c:RetainedEarningsMember134380482020-04-012021-03-31c:ProposedDividendRecognisedInEquityMember134380482020-04-01c:ProposedDividendRecognisedInEquityMember134380482021-03-31c:ProposedDividendRecognisedInEquityMember134380482020-04-012021-03-31c:RetainedEarningsMember134380482019-04-012020-03-31c:RetainedEarningsMemberiso4217:DKKxbrli:pure