Årsrapport33771231PricewaterhouseCoopers Statsautoriseret RevisionspartnerselskabStrandvejen 442900 Hellerup2021-01-012020-01-012021-12-312020-12-3131604206TP Aerospace Solutions ApSStamholmen165R st.2650Hvidovre2008-07-10HvidovreNordea Danmark, Filial af Nordea Bank AB (publ), SverigeStrandgade3DK-1401København KPlesner AdvokatpartnerselskabAmerika Plads37DK-2100København ØPricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab33771231Strandvejen442900HellerupDanmark2022-03-18Tinneke TorpeRegnskabsklasse C, mellemstor virksomhedRevisionspåtegningThe Executive Board has today considered and adopted the Annual Report of TP Aerospace Solutions ApS for the financial year 1 January - 31 December 2021.The Annual Report is prepared in accordance with the Danish Financial Statements Act.In our opinion the Financial Statements give a true and fair view of the financial position at 31 December 2021 of the Company and of the results of the Company operations for 2021.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.Hvidovre2022-02-11Thomas Daniel IbsøNikolaj Lei JacobsenTinneke TorpeTo the Shareholder of TP Aerospace Solutions ApSOpinionIn our opinion, the Financial Statements give a true and fair view of the financial position of the Company at 31 December 2021 and of the results of the Company’s operations for the financial year 1 January - 31 December 2021 in accordance with the Danish Financial Statements Act. We have audited the Financial Statements of TP Aerospace Solutions ApS for the financial year 1 January - 31 December 2021, which comprise income statement, balance sheet, statement of changes in equity and notes, including a summary of significant accounting policies (”the Financial Statements”). Basis for OpinionWe 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’ 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 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 Financials Statements Act. Based on the work we have performed, in our view, 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 in Management’s Review. 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 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 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 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. Hellerup2022-02-11Hellerup2022-02-11PricewaterhouseCoopers Statsautoriseret RevisionspartnerselskabTorben JensenState Authorised Public Accountantmne18651Thomas Baunkjær AndersenState Authorised Public Accountantmne35483Seen over a five-year period, the development of the Company is described by the following financial highlights: 530700053130003616000372300025510001379000-1540000-471000-74400088300013520002323000267700021140001225900001030960007012400016019000136960001101900000-9000-1600033700013141620.716.113.113.315.75.38.615.621.715.5Key activities TP Aerospace is the leading aftermarket supplier of wheels and brakes, carrying the world’s largest ready to-go inventory in the market for most commercial, regional and commuter aircraft types. From our locations in Copenhagen, Hamburg, Las Vegas, Orlando, Singapore, Bangkok, Moscow, East Midland (UK), Kuala Lumpur, Shenzhen and Melbourne, we offer our services to airlines all over the world through our Trading and Program divisions, supported by our extensive in-house MROcapabilities. The main activity of TP Aerospace Solution ApS consists of trading and wholesale of aircraft parts. Development in the year Net result after tax for 2021 of USD 1m is a decrease of USD 0.4m compared with 2020, which is in accordance with expectations considering the impacts of the COVID-19 outbreak. Business risks TP Aerospace is Part 145, ISO 9001 and AS 9120 approved. To retain this certification level there is continuing focus on quality and risk management. Financial exposure Management does not consider the company has any financial exposure of significance. Outlook Given the positive development in flight activity in second half of 2021, our expectation for 2022 is a return to a normalised flight activity level amongst our customers and thereby higher demand. Our financial performance for 2022 is expected to reflect the above with sales and earnings returning to pre-pandemic level. Research and development To support the growth strategy of the company, TP Aerospace Group continues to develop its product platform, capacity, capability and global footprint. External environment TP Aerospace acknowledges its community responsibility. Operating in the aftermarket, re-use of parts is an integrated part of our strategy. For further information a reference are made to the consolidated Financial Statements for TPA Holding I A/S. Intellectual capital resources All employees in TP Aerospace go through continuous training and evaluation to increase the Company’s knowledge level. Statement on gender composition Uncertainty relating to recognition and measurement In the application of the Company’s accounting policies, Management of the Company is required to make accounting judgements, estimates and assumptions which form basis for the financial statements that are not readily apparent from other sources. Description of critical accounting judgement, estimates and assumptions are included in the section “Accounting policies”. Unusual events No unusual matters have affected the Financial Statement for 2021. Subsequent events No events materially affecting the assessment of the Annual Report have occurred after the balance sheet date.The TP Aerospace Groups COP report and diversity policy are described in the consolidated FInancial Statements for TPA Holding I A/S, where a reference is made to for further information.446900037860001704000140100080006000027570002325000322100040880004761000455900012170001854000268000408000949000144600011400012200011400012200011400012200028587000271880001147000865000561820008019700027900062000230002600023490004100059980000811910003440001260008891100010850500089025000108627000270002700027000270001838700017438000184140001746500017283000233200002920003930003982000502100047040000616810002650003990001749000348000706110009116200070611000911620008902500010862700027000174380009490002700018387000 Government grants 627 840 627 84016260001317000520005900014000130001200012000170400014010001001001000001000001115 Remuneration to the Executive Management: The remuneration paid to Executive Management in 2021 is made in other Group companies. Amounts allocated for Executive Management functions in the Company are USD 100k, for the financial year 2021.800060000800060000322100034350000300006500002512000291200057400060500016750001042000476100045590002650003990003000900026800040800016100016100039000800047000114000Depreciated over 20 years Prepayments consist of deposits and prepaid expenses concerning event and insurance costs paid in advance for subsequent years.A-shares125026B-shares6519490001446000Deferred tax asset at 1 January 26 35 Amounts recognised in the income statement for the year -3 -9 Deferred tax asset at 31 December 23 26 The recognised tax asset comprises timing differences relating to property, plant and equipment. In the years ahead, the Company or the group of jointly taxed enterprises expect to realise the recognised deferred tax asset; on that basis, the asset has been recognised at 31 December 2021.Charges and security The Company has pledged floating charge in fixed assets, inventories, and receivables as security for bank debt, as well as group companies’ bank commitments for a total of MDKK 72. Guarantee obligations TP Aerospace Solutions ApS has provided a guarantee for the Parent Companies TP Aerospace Holding A/S and TPA Holding I A/S' bank debt. Other contingent liabilities The group companies are jointly and severally liable for tax on the jointly taxed incomes etc of the Group. The total amount of corporation tax payable is disclosed in the Annual Report of CC Green Wall Invest ApS, which is the management company of the joint taxation purposes. Moreover, the group companies are jointly and severally liable for Danish withholding taxes by way of dividend tax, tax on royalty payments and tax on unearned income. Any subsequent adjustments of corporation taxes and withholding taxes may increase the Company’s liability.Basis Controlling interest CataCap I K/S, Copenhagen Ultimate capital owner, 28 % TP Aerospace Holding A/S, Hvidovre Capital owner, 100 % CataCap I K/S ultimately controls the majority of the votes in the Group, due to specific rights in the ownership agreement between parties. Transactions All transactions with related parties have occurred on normal market conditions in the financial year 2021. Name and registered office of the Parents preparing consolidated financial statements for the smallest and largest group: Name Place of registered office TPA Holding I A/S (mindste koncern) Hvidovre The Group Annual Report of TPA Holding I A/S may be obtained at the following address: TPA Holding I A/S Stamholmen 165R st. DK-2650 Hvidovre DanmarkThe Annual Report of TP Aerospace Solutions ApS for 2021 has been prepared in accordance with the provisions of the Danish Financial Statements Act applying to medium-sized enterprises of reporting class C. The accounting policies applied remain unchanged from last year. The Financial Statements for 2021 are presented in TUSD. The exchange rate is 6,56 as of 31 December 2021 and 6,06 as of 31 December 2020.With reference to section 86(4) of the Danish Financial Statements Act and to the cash flow statement included in the consolidated financial statements of TPA Holding I A/S, the Company has not prepared a cash flow statement.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.In the application of the Company's accounting policies, Management is required to make accounting judgements, estimates and assumptions that are not readily apparent from other sources in order to serve as the basis for the preparation of the financial statements. The estimates, judgements and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The judgements, estimates and underlying assumptions are reviewed on an ongoing basis. Changes in accounting estimates are recognised in the period in which the estimate is changed if the change affects only that period, or in the period of the change and future periods if the change affects both current and future periods. In particular, the accounting judgements, estimates and assumptions relate to the following matters: • Revenue related to the programs are recognised as a service exclusive of the value of the core assets that are exchanged during delivery within the program as they are considered exchange of assets of similar nature and value. Cost of the delivered core asset is transferred for recognition as cost of the core asset received. Costs related to maintenance, repair and overhaul (MRO) of the goods delivered are expensed on delivery. • For goods to be included in programs, the allocation of total cost between the core element and the MRO element, respectively, is determined at the first exchange based on an estimate. • Inventories are recognised at cost less write-down to net realisable value in case of impairment. The estimate of the required write-downs is made on the basis of an assessment of the individual characteristics and historical sales patterns for the inventories in the perspective of a value loss over time. In addition, further write-downs are made to the extent that impairment is indicated specifically.All 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.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.Cost of sales comprise the raw materials and consumables consumed to achieve revenue for the year.Other external expenses comprise expenses for premises, sales and distribution as well as office expenses, etc.With reference to section 32 of the Danish Financial Statements Act, gross profit/loss is calculated as a summary of revenue, other operating income, cost of sales and other external expenses.Staff expenses comprise wages and salaries as well as payroll expenses.Amortisation, depreciation and impairment losses comprise amortisation, depreciation and impairment of property, plant and equipment.Other operating income and other operating expenses comprise items of a secondary nature to the main activities of the Company.Financial income and expenses comprises interest, including interest income, expenses and charges on receivables and payables from group enterprises, net capital gains and losses on securities, payables and transactions in foreign currencies, amortisation of financial assets as well as tax relief under the Danish Tax Prepayment Scheme etc.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 their Danish parent company. The tax effect of the joint taxation is allocated to enterprises in proportion to their taxable incomes.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: Land and buildings 20 years Depreciation period and residual value are reassessed annually.The carrying amounts of property, plant and equipment 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.Inventories are measured at the lower of cost based on weighted average prices and net realisable value. Cost consists of purchase price plus delivery costs. The net realisable value of inventories is calculated as the estimated selling price less completion costs and costs incurred to execute sale.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 rent, insurance premiums, subscriptions and interest.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 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, such as loans from credit institutions, 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.Deferred income comprises payments received in respect of income in subsequent years.316042062021-01-01e:ContributedCapitalMember316042062021-12-31e:ContributedCapitalMember316042062021-01-01e:RetainedEarningsMember316042062021-01-012021-12-31e:RetainedEarningsMember316042062021-12-31e:RetainedEarningsMember316042062021-01-012021-12-31316042062021-01-012021-12-312316042062021-01-012021-12-311316042062021-01-012021-12-311316042062021-01-012021-12-312316042062021-01-012021-12-313316042062021-01-012021-12-31e:RetainedEarningsMember316042062020-01-012020-12-31e:RetainedEarningsMember316042062020-12-31316042062021-12-31316042062021-01-012021-12-31e:ManagementMember316042062020-01-012020-12-31e:ManagementMember316042062021-12-311316042062021-12-312316042062021-01-01e:LandAndBuildingsMember316042062021-01-012021-12-31e:LandAndBuildingsMember316042062021-12-31e:LandAndBuildingsMember316042062020-01-012020-12-31316042062021-01-012021-12-31d:TwoYearsAgoMember316042062021-12-31d:TwoYearsAgoMember316042062021-01-012021-12-31d:ThreeYearsAgoMember316042062021-12-31d:ThreeYearsAgoMember316042062021-01-012021-12-31d:FourYearsAgoMember316042062021-12-31d:FourYearsAgoMemberxbrli:purexbrli:sharesiso4217:USD