iso4217:DKK834551282019-01-012019-12-31834551282019-01-012019-12-311834551282019-01-012019-12-312834551282019-01-012019-12-311834551282019-01-012019-12-312834551282019-01-012019-12-313834551282019-01-012019-12-311834551282019-01-012019-12-312834551282018-01-012018-12-31834551282019-12-31834551282018-12-31834551282019-01-012019-12-3141834551282018-01-012018-12-3141834551282019-01-012019-12-3142834551282018-01-012018-12-3142834551282019-01-01834551282018-01-01RevisionspåtegningÅrsrapport83455128Hydratech Industries A/SSuensonsvej148600SilkeborgSilkeborg2019-01-012019-12-312018-01-012018-12-312020-09-25Martin Christian KruhlKnud AndersenRasmus Sandorff JacobsenJohn Staunsbjerg DueholmEsben Bay JørgensenKnud AndersenChairman3396355633963556Deloitte Statsautoriseret RevisionspartnerselskabDeloitte Statsautoriseret RevisionspartnerselskabCity Tower, Værkmestergade28000Aarhus CDenmark+45 8941414133963556Deloitte Statsautoriseret RevisionspartnerselskabCity Tower, Værkmestergade 28000 Aarhus CTo the shareholders of Hydratech Industries A/SOpinionWe have audited the financial statements of Hydratech Industries A/S for the financial year 1 January 2019 - 31 December 2019, which comprise the income statement, statement of comprehensive income, balance sheet, statement of changes in equity, cash flow statement and notes, including a summary of significant accounting policies. The financial statements are prepared in accordance with International Financial Re-porting Standards as adopted by the EU and additional requirements of the Danish Financial Statements Act.<br/>In our opinion, the financial statements give a true and fair view of the financial position at 31 December 2019, and of the results of their operations and cash flows for the financial year 1 January 2019 - 31 De-cember 2019 in accordance with International Financial Reporting Standards as adopted by the EU and ad-ditional requirements of the Danish Financial Statements Act.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 fur-ther described in the Auditor’s responsibilities for the audit of the financial statements section of this audi-tor’s report. We are independent of the Entity in accordance with the International Ethics Standards Board of 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 re-quirements. 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 management commentary.<br/>Our opinion on the financial statements does not cover the management commentary, and we do not ex-press any form of assurance conclusion thereon.<br/>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.<br/>Moreover, it is our responsibility to consider whether the management commentary provides the infor-mation required under the Danish Financial Statements Act.<br/>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 Fi-nancial Statements Act. We did not identify any material misstatement of the management commentary.Management is responsible for the preparation of financial statements that give a true and fair view in ac-cordance with International Financial Reporting Standards as adopted by the EU and additional require-ments of 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.<br/>In preparing the financial statements, Management is responsible for assessing the ability to continue as a going concern, for disclosing, as applicable, matters related to going concern, and for using the going con-cern basis of accounting in preparing the financial statements unless Management either intends to liqui-date 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 in-cludes 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 de-tect a material misstatement when it exists. Misstatements can arise from fraud or error and are consid-ered material if, individually or in the aggregate, they could reasonably be expected to influence the eco-nomic decisions of users taken on the basis of these consolidated financial statements and these parent fi-nancial statements.<br/>As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Den-mark, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:<br/> 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 evi-dence 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 con-trol.<br/> 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 ef-fectiveness of internal control.<br/> Evaluate the appropriateness of accounting policies used and the reasonableness of accounting esti-mates and related disclosures made by Management.<br/> 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 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 to cease to continue as a going concern.<br/> 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.<br/>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 con-trol that we identify during our audit.Aarhus2020-08-31Jacob NørmarkJakob OlesenState Authorised Public AccountantState Authorised Public Accountantmne30176mne34492Main risks are related to child labour, bribery, health and environmental issues at our sites and with our partners.<br/>Hydratech Industries operates globally and are exposed to risks related to these regions. In order to miti-gate the identified risks Hydratech Industries A/S has implemented a code of conduct with internal guide-lines, objectives and strategies, under which a targeted effort is made to ensure a safe and healthy working environment so that both environmental and climatic matters are considered in the processes.<br/>We have created a zero-philosophy within Health, Safety and Environment with a goal of 0-accidents and 0-impact on environment.<br/>We are committed to the health and safety of our employees. We control our activities and working envi-ronment to comply to the local legislative requirements and to the prevention of injures and ill health of our employees.<br/>Our management system reflects the continuous improvement of our internal and external processes to-wards proactively to identify hazards and performance of risk assessments to increase the health and safe-ty of our employees. We will maintain a certified occupational health and safety management system in full compliance with the requirements of ISO 45001 version 2018.<br/>The company culture is built on the statement: “safety first”, and the whole organization is bound to the pledge of taking the necessary actions to avoid any accidents.<br/>We use defined objectives and KPIs to monitor our improvement progress and set ambitious targets.<br/>As mentioned above, efforts are made to ensure a healthy working environment, for example, by focusing on the working environment in the daily operation, target setting and reporting.<br/>With respect to the working environment, we arrange training sessions on a safe working environment. Al-so in this area, the efforts in 2019 have helped sustain a healthy and safe working environment for the staff, and there have been no serious accidents in 2019.<br/>We are committed to be responsible for the environmental impact of our products, processes, and services. We control our activities to comply to the local legislative requirements and to the protection of the envi-ronment. We have entered a commitment with our main customers to reduce the environmental footprint from our production.<br/>Our management system reflects the continuous improvement of our internal and external processes to-wards proactively identifying and evaluating risks and reduce the environmental impact of our products, processes and services. We have maintained a certified environmental management system in full compli-ance with the requirements of ISO 14001 version 2015.<br/>We use defined objectives and KPIs to monitor our improvement progress.<br/>The companies are certified by external parties with respect to the quality of processes with both the com-panies and their suppliers. These are requirements also posed by the customers, and the companies com-ply with them partly through internal processes and control procedures, partly through site visits to the suppliers.<br/>Hydratech Industries A/S has set up a global quality and process department to ensure that guidelines are drawn up in this respect and to subsequently check that the companies comply with them. To ensure a common and integrated approach to our quality, environment and health & safety work we have a certified management system according to ISO 9001:2015, ISO 14001:2015 and OHSAS 18001:2008<br/>Management believes that the organizational processes are at a satisfactory and necessary level and that the measures implemented will improve results in the years ahead within quality, environmental and health & safety management.<br/>Hydratech Industries A/S respects international conventions and observes national law for protecting hu-man rights, and preventing corruption and has implemented this as part of the code of conduct. All em-ployees are educated in the code of conduct and formal procedures are setup to secure that both employ-ees and business partners are compliant with the code of conduct. As a result of the clear rules in our code of conduct and the training and communication provided, we believe that we have maintained a high level of business integrity and ethics in our companies in 2019.The Company complies with the Danish Venture Capital and Private Equity Association’s guidelines for dis-closures in the annual report. Please refer to www.dvca.dk for further information.<br/>The Company’s share capital is divided into share classes. Hydratech Industries Holding A/S is the parent whereas the private equity fund BWB Partners is the ultimate parent to Hydratech Industries Holding A/S holding an ultimate ownership share of 88%.The Board of Directors and the Executive Board aim for equal opportunity for both genders at management<br/>levels and believe that diversity generates business value. In 2013, the Board of Directors laid down objectives<br/>for diversity on the Board of Directors and at other management levels. When nominating new candidates<br/>for the Board of Directors, the Board carefully considers what knowledge and professional experience<br/>are needed to ensure that the competencies required exist on the Board. Also, the Board of Directors<br/>strives to have the best composition possible based on background, gender etc.<br/>Gender composition of Management<br/>When engaging managers, the knowledge and professional experience needed are considered carefully to<br/>ensure that the competencies required exist at all management levels. The employment process is designes<br/>to ensure that men and women have equal opportunities to apply for a management position. Vacancies<br/>are advertised and women are among the candidates if possible. At least two executives are involved in the<br/>appointment of managers to ensure that the biggest management talents are hired, regardless of gender.<br/>The Board of Directors has set the following target figures for the gender composition:<br/> That both genders are represented on the Board of Directors by a share of at least 33%;<br/> That both genders are represented at management levels globally by a share of at least 33%.<br/>At the balance sheet date, the Executive Board consists of two men. In 2019 there have been employed<br/>one new member for the Executive Board (a man). The candidate was hired as he was considered to be the<br/>best qualified candidate for the job.We are not yet closer to meeting the target but the aim is to meet the<br/>target before 2022. When nominating candidates for the Board of Directors and Executive Board, the Board<br/>pursues the objective of adding more women to the Board. However, this must not affect the other recruiting<br/>criteria.<br/>At year-end 2019, the gender composition at the other management levels was 1 woman and 10 men,<br/>which is an improvement of 1 woman compared to 2018. The efforts will continue in 2020.4649360003850060004051540002979220002056900026424000392130006066000065414000608580002292500012511000-49126000-12709000653100073320001762000019916000-1527200021535000-75487000-3758000-14369000-5234000-611180001476000-807000-25130000-4000-61925000-10410001275800011405000150280002090700026070004654000303930003696600046519000500440009055000108210001546000270700022920002814000594120006638600093450003080500019230001811000184000184000198410003280000083890000109646000136152000315410005458700015040003984000330450005857100023970002397000935300015417000241110003415200011751400086026000556100039220001603130001419140001377000061000830001934190002005680003030650003367200001021900010212000-2375800012775000208580002325700073190004624400016820001100000548700062930000318000023539000283950003070800038968000627920002462700081342000951590001987400011654000526060003899100084040003811000026503800025150800040020000429670002957460002904760003030650003367200002292500012511000-582000100000252800041827000-242550004172900012196000126890009260001059000-1373000-426000-34152000305250001499000180000200200076000249400046560000260008887000122610001120000-10990000-169950000215000000519550006045000776000Cash increase of capitalCash increase of capitalIncrease of bank loansIncrease of bank loans13000000175000038165000045120000-29481000-22000-159510000-275000830001630900061000830006100083000