Årsrapport33771231PricewaterhouseCoopers Statsautoriseret RevisionspartnerselskabStrandvejen 442900 Hellerup2016-01-012015-01-012016-12-312015-12-3128098995Maxus A/SAntonigade4, 3. tv.1106CopenhagenCopenhagen7020711570207125www.maxusglobal.dkDeloitte Statsautoriseret Revisionspartnerselskab33963556Weidekampsgade60900Copenhagen CDanmark2017-06-06Lars PetersenRegnskabsklasse B1RevisionspåtegningCopenhagen2017-05-31Kristian Bæk-MikkelsenExecutive OfficerJonas Von Barnekow Benzon HemmingsenChairmanKristian Bæk-MikkelsenJens StorkfeltCopenhagen2017-05-31Copenhagen2017-05-31Deloitte Statsautoriseret RevisionspartnerselskabKim Takata MückeState Authorised Public AccountantMoren JarlboState Authorised Public Accountant13940000012993200011895900010314000979400010534000154200046400080100081000-43000-37000-27000300011130003120005880002944900022771000242330006113000500000046880008.66.27.47.58.9-0.2-0.90.80.20.59.315.120.82219.3-8.2-30.8206.413.42088380001895510001732530001632430001771400014594000178710001171400018261000138380006700054000-457000-2178000152000220007100065000-376000-2221000-23000-588000-353000-1633000-353000-1633000810008000011100014400019200022400025000025400025000025400044200047800034510000158020002320000774700011075000896000158800004500027700059300020400062000438660002916500043866000291650004430800029643000500000500000500000500000362700039800004127000448000014700001470000512000012550001995900021126000126990001315000225600014670004003400025163000400340002516300044308000296430005000003980000-3530005000003627000170920001314800066100041000024300011700026500016300018261000138380003524670005400067000540001520001000021000320001600039000490007100065000-277000-5880001920000620000-23000-58800014200001754000350000145500017540001340000161000034000330001374000164300081000111000The Executive Board and Board of Directors have today considered and adopted the Annual Report of Maxus A/S for the financial year 1 January - 31 December 2016.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 2016 of the Company and of the results of the Company operations for 2016.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.To the Shareholder of Maxus A/SWe have audited the Financial Statements of Maxus A/S for the financial year 1 January - 31 December 2016, which comprise 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 financial position of the Company at 31 December 2016 and of the results of the Company’s operations for the financial year 1 January - 31 December 2016 in accordance with the Danish Financial Statements Act. 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 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 requirements. 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 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. 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. Key activities Maxus is a full-service media agency with integrated development of digital content, including microsites, display banners, mobile aps, video content, social community management etc. Development in the year The income statement of the Company for 2016 shows a loss of TDKK 353, and at 31 December 2016 the balance sheet of the Company shows equity of TDKK 4,127. For Maxus Denmark, 2016 has continued the remarkable revenue growth due to the inflow of new customers at both local and Nordic levels, new business partnerships, new business areas, as well as additional sales to existing customers. While, the income statement shows a minor loss, it marks a significant improvement from the previous year. For Maxus, 2016 was a transition year: from a small agency to a medium sized. This brings new investments, in people, technology, facilities, rent, etc. Due to this, 2016 has been marked by increased costs and investments that results in the lower net profit. Performance is not satisfactory. However, Maxus is on a planned and positive trajectory to continue to outperform the market and competitors in top line growth and raise its profitability considerably. After the recent years transition, Maxus is very well placed to compete in the increasingly digital and data driven marketplace. Financial performance is not satisfactory. Particular risks No unusual risks are associated with the Entity’s business. The business conditions of the market and the external environment as a whole have not changed significantly. Intellectual capital resources A substantial part of the Entity’s business hinges on the existence of certain staff resources and tools, which have been further developed throughout the year, both in terms of value-based management and with respect to processes and structures for knowledge-based work. Subsequent events No events materially affecting the assessment of the Annual Report have occurred after the balance sheet date.The share capital consists of 500 shares of a nominal value of TDKK 1,000. No shares carry any special rights.There have been no changes in the share capital during the last 5 years.Contingent liabilities Commitments under rental agreements or leases until expiry 411 562 The companies MEC Denmark Holding A/S, MEC Denmark A/S, Outrider A/S and Maxus A/S have provided a guarantee of DKK 14,500 thousand in favour of the companies' banker. The guarantee is provided towards the security fund of the Danish Association of Advertising and Relationship Agencies in order to compensate the companies' obligation in relation to owners of papers and magazines, and a specified group of Danish media owners, respectively. The Company participates in a Danish joint taxation arrangement in which WPP Holding Denmark A/S serves as the administration company. According to the joint taxation provisions of the Danish Corporation Tax act, the Company is, therefore, liable from the financial year 2013 for income taxes etc for the jointly taxed companies and from 1 July 2012 also for obligations, if any, relating to the withholding of tax interest, royalties and dividend for the jointly taxed companies.Name and registered office of the Parent preparing consolidated financial statements for the smallest group: Name Place of registered office WPP Plc. 27 Farm Street, W17 5RJ, London, England The Group Annual Report of WPP Plc. may be obtained at the following address: www.wppinvestor.comThe Annual Report of Maxus A/S for 2016 has been prepared in accordance with the provisions of the Danish Financial Statements Act applying to enterprises of reporting class B as well as selected rules applying to reporting class C. The accounting policies applied remain unchanged from last year. The Financial Statements for 2016 are presented in TDKK.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. Recognition and measurement take into account predictable losses and risks occurring before the presentation of the Annual Report which confirm or invalidate affairs and conditions existing at the balance sheet date.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.Revenue from the sale of media is recognised in the income statement when delivery is made to the buyer. Consultancy services are included in revenue based on the stage of completion so that revenue corresponds to the sales value of the work performed in the financial year (the percentage-of-completion method). Revenue is measured at the consideration received and is recognised exclusive of VAT and net of discounts relating to sales.Cost of sales comprise the raw materials and consumables consumed to achieve revenue for the year.Other external expenses comprise expenses for premises, stationery and office supplies, marketing costs and services provided by group related companies etc. This item also includes write-downs of receiveables recognised in current assets.Staff expenses comprise wages and salaries as well as payroll expenses other than production wages.Amortisation, depreciation and impairment losses relating to property, plant and equipment comprise amortisation, depreciation and impairment losses for the financial year, calculated on the basis of the residual values and useful lives of the individual assets and impairment testing as well as gains and losses from the sale of property, plant and equipment.Other financial income comprises interest income, including interest income on receivables from group enterprises, net foreign exchange gains, as well as tax relief under the Danish Tax Prepayment Scheme etc. Other financial expenses comprise interest expenses, including interest expenses on payables to group enterprises, net foreign exchange losses, as well as tax surcharge 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 the other WPP companies in Denmark. 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: Other fixtures and fittings, tools and equipment 5 years Leasehold improvements 3-5 years Depreciation period and residual value are reassessed annually.The Company is part of a cash pool scheme with other Danish WPP companies. Consequently, a considerable portion of the Company’s bank deposits and debt is included in receivables from and payables to group enterprises, respectively.Receivables are recognised in the balance sheet at amortised cost, which substantially corresponds to nominal value. Provisions for estimated bad debts are made.Contract work in progress is measured at selling price of the work performed calculated on the basis of the stage of completion. The stage of completion is measured by the proportion that the contract expenses incurred to date bear to the estimated total contract expenses. Where it is probable that total contract expenses will exceed total revenues from a contract, the expected loss is recognised as an expense in the income statement. Where the selling price cannot be measured reliably, the selling price is measured at the lower of expenses incurred and net realisable value. Payments received on account are set off against the selling price. The individual contracts are classified as receivables when the net selling price is positive and as liabilities when the net selling price is negative. Expenses relating to sales work and the winning of contracts are recognised in the income statement as incurred.Prepayments comprise incurred costs relating to subsequent financial years. Prepayments are measured at cost.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.Debts are measured at amortised cost, substantially corresponding to nominal value.Prepayments received from customers comprise amounts received from customers prior to delivery of the goods or service agreed.Gross margin Gross profit x 100 Revenue Net margin Profit/loss for the year x 100 Revenue Solvency ratio Equity at year end x 100 Total assets at year end Return on equity Net profit for the year x 100 Average equity280989952016-01-01e:ContributedCapitalMember280989952016-12-31e:ContributedCapitalMember280989952016-01-01e:RetainedEarningsMember280989952016-01-012016-12-31e:RetainedEarningsMember280989952016-12-31e:RetainedEarningsMember280989952016-01-012016-12-31280989952016-01-012016-12-312280989952016-01-012016-12-311280989952016-01-012016-12-311280989952016-01-012016-12-312280989952016-01-012016-12-313280989952016-01-012016-12-311280989952016-01-012016-12-31e:RetainedEarningsMember280989952015-01-012015-12-31e:RetainedEarningsMember280989952015-12-31280989952016-12-31280989952016-12-311280989952016-01-01e:FixturesFittingsToolsAndEquipmentMember280989952016-01-012016-12-31e:FixturesFittingsToolsAndEquipmentMember280989952016-12-31e:FixturesFittingsToolsAndEquipmentMember280989952016-01-01e:LeaseholdImprovementsMember280989952016-01-012016-12-31e:LeaseholdImprovementsMember280989952016-12-31e:LeaseholdImprovementsMember280989952015-01-012015-12-31280989952016-01-012016-12-31d:TwoYearsAgoMember280989952016-12-31d:TwoYearsAgoMember280989952016-01-012016-12-31d:ThreeYearsAgoMember280989952016-12-31d:ThreeYearsAgoMember280989952016-01-012016-12-31d:FourYearsAgoMember280989952016-12-31d:FourYearsAgoMemberxbrli:pureiso4217:DKK