63642010 2021-01-01 2021-12-31 63642010 2021-01-01 2021-12-31 0 63642010 2021-01-01 2021-12-31 0 63642010 2021-01-01 2021-12-31 1 63642010 2021-01-01 2021-12-31 2 63642010 2021-01-01 2021-12-31 3 63642010 2021-01-01 2021-12-31 0 63642010 2021-01-01 2021-12-31 cmn:PreviousYearMember 1 63642010 2021-01-01 2021-12-31 cmn:TwoYearsAgoMember 2 63642010 2021-01-01 2021-12-31 cmn:ThreeYearsAgoMember 3 63642010 2021-01-01 2021-12-31 cmn:FourYearsAgoMember 4 63642010 2021-01-01 2021-12-31 5 63642010 2021-01-01 2021-12-31 cmn:PreviousYearMember 6 63642010 2021-01-01 2021-12-31 cmn:TwoYearsAgoMember 7 63642010 2021-01-01 2021-12-31 cmn:ThreeYearsAgoMember 8 63642010 2021-01-01 2021-12-31 cmn:FourYearsAgoMember 9 63642010 2021-01-01 2021-12-31 cmn:PreviousYearMember 63642010 2021-01-01 2021-12-31 cmn:TwoYearsAgoMember 63642010 2021-01-01 2021-12-31 cmn:ThreeYearsAgoMember 63642010 2021-01-01 2021-12-31 cmn:FourYearsAgoMember 63642010 2021-12-31 63642010 2021-12-31 cmn:PreviousYearMember 63642010 2021-12-31 cmn:TwoYearsAgoMember 63642010 2021-12-31 cmn:ThreeYearsAgoMember 63642010 2021-12-31 cmn:FourYearsAgoMember 63642010 2021-01-01 2021-12-31 10 63642010 2021-01-01 2021-12-31 cmn:PreviousYearMember 11 63642010 2021-01-01 2021-12-31 cmn:TwoYearsAgoMember 12 63642010 2021-01-01 2021-12-31 cmn:ThreeYearsAgoMember 13 63642010 2021-01-01 2021-12-31 cmn:FourYearsAgoMember 14 63642010 2020-01-01 2020-12-31 63642010 2020-12-31 63642010 2021-01-01 2021-12-31 fsa:RetainedEarningsMember 63642010 2020-01-01 2020-12-31 fsa:RetainedEarningsMember 63642010 2021-01-01 2021-12-31 0 63642010 2021-01-01 2021-12-31 1 iso4217:DKK xbrli:pure 2021-01-01 2021-12-31 2022-06-28 Sonny Lyngsø <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Management's Statement</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">The Executive and Supervisory Boards have today considered and adopted the Annual Report of Papyro-Tex A/S for the financial year 1 January - 31 December 2021.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">The Annual Report is prepared in accordance with the Danish Financial Statements Act.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">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's operations for 2021.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">In our opinion, Management's Review includes a true and fair account of the matters addressed in the Review.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">We recommend that the Annual Report be adopted at the Annual General Meeting.</td></tr></table> Herlev 2022-06-28 <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Independent Auditor’s Report</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">To the Shareholder of Papyro-Tex A/S</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Opinion</td></tr><tr><td colspan="1">We have audited the Financial Statements of Papyro-Tex A/S 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 are prepared in accordance with the Danish Financial Statements Act.</td></tr><tr><td colspan="1">In 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.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Basis for opinion</td></tr><tr><td colspan="1">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.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Management's responsibilities for the Financial Statements</td></tr><tr><td colspan="1">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 deter- mines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.</td></tr><tr><td colspan="1">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 in- tends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Auditor's responsibilities for the audit of the Financial Statements</td></tr><tr><td colspan="1">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.</td></tr><tr><td colspan="1">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</td></tr><tr><td colspan="1">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.</td></tr><tr><td colspan="1">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.</td></tr><tr><td colspan="1">Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management.</td></tr><tr><td colspan="1">Conclude on the appropriateness of Management’s use of the going concern basis of accounting in pre- paring 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.</td></tr><tr><td colspan="1">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.</td></tr><tr><td colspan="1">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.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Statement on Management's Review</td></tr><tr><td colspan="1">Management is responsible for Management's Review.</td></tr><tr><td colspan="1">Our opinion on the Financial Statements does not cover Management's Review, and we do not express any form of assurance conclusion thereon.</td></tr><tr><td colspan="1">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.</td></tr><tr><td colspan="1">Moreover, it is our responsibility to consider whether Management's Review provides the information required under the Danish Financial Statements Act.</td></tr><tr><td colspan="1">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.</td></tr></table> Copenhagen 2022-06-28 Papyro-Tex A/S Skinderskovvej 32 - 36 DK-2730 Herlev 63642010 Herlev <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Management's Review</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="6">Financial Highlights</td></tr><tr><td colspan="6">Seen over a five-year period, the development of the Company is described by the following financial highlights</td></tr><tr><td /><td>2021</td><td>2020</td><td>2019</td><td>2018</td><td>2017</td></tr><tr><td /><td>TDKK</td><td>TDKK</td><td>TDKK</td><td>TDKK</td></tr></table><br><table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Key figures</td></tr></table> -187000 7260000 4216000 61 0.423 0.13 <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">The ratios have been compiled in accordance with the recommendations and guidelines issued by the CFA Society Denmark. For definitions, see the description of accounting policies.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Main activity</td></tr><tr><td colspan="1">Papyro-Tex A/S manufactures and sells plastic foil for medicinal and technical industries.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Development in the year</td></tr><tr><td colspan="1">The income statement of the Company for 2021 shows a profit of TDKK 7,260, and at 31 December 2021 the balance sheet of the Company shows equity of TDKK 59,495.</td></tr><tr><td colspan="1">In 2021, Papyro-Tex A/S experienced a small increase in sales compared to last year.</td></tr><tr><td colspan="1">On the cost side a continuous focus on optimizing the production line has contributed positively to the gross profit. This is also the reason for the positive result compared to previous years.</td></tr><tr><td colspan="1">Total investment in production equipment, buildings, regulatory environmental improvements and energy savings amounted to TDKK 4,216 in 2021.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Targets and expectations for the year ahead</td></tr><tr><td colspan="1">The Company will continue to focus on investing in the production equipment and LEAN improvement. Both initiatives will contribute to retain operating profit in a very competitive market.</td></tr><tr><td colspan="1">In 2022, a smaller drop in the activity level on the PVC line is expected. The market for Barrier Film remains competitive and the Company expects that the sale measured in kg will increase. The result before tax in the coming financial year is expected to be at the same level as last year.</td></tr><tr><td colspan="1">The level of investment is expected to be between 6 and 7 million DKK. Investments are expected in both safety and the environment.</td></tr><tr><td colspan="1">Strategic decision to exit from hospital care</td></tr><tr><td colspan="1">Consistent with Convatec Group’s FISBE (Focus-Innovate-Simplify-Build-Execute) strategy and following a strategic review of the Critical Care business, in May, the company announced it will be withdrawing from its hospital care activities and related industrial sales during the remainder of 2022. We set out further detail on the impact of this announcement here [https://www.convatecgroup.com/media/press-releases/2022/agm-trading-update-for-the-four-months-ended-30-april-2022/]</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Research and development</td></tr><tr><td colspan="1">The activities have included streamlining and optimizing of production processes. There is a strong focus on the development of more sustainable and environmentally friendly products.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">External environment and quality control</td></tr><tr><td colspan="1">In 2021, Papyro-Tex A/S has retained the environmental approval and safety document prepared in accordance with the public risk order guideline.</td></tr><tr><td colspan="1">In 2021, no deviations have been observed in accordance with the environmental approval self-regulation conditions.</td></tr><tr><td colspan="1">In 2021, Papyro-Tex A/S has been re-certified according to the new ISO9001:2015 by Bureau VERITAS Denmark.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Subsequent events</td></tr><tr><td colspan="1">No events materially affecting the assessment of the Annual Report have occurred after the balance sheet date.</td></tr></table> 60736000 39988000 11431000 9317000 31000 219000 9129000 1869000 <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td width="100%" colspan="4" align="left" valign="middle" >Statement of Changes in Equity</td></tr><tr><td width="36%" ></td><td width="21%" colspan="1" align="right" valign="middle" >Share capital</td><td width="21%" colspan="1" align="right" valign="middle" >Retained earnings</td><td width="22%" colspan="1" align="right" valign="middle" >Total</td></tr><tr><td width="36%" ></td><td width="21%" colspan="1" align="right" valign="middle" >TDKK</td><td width="21%" colspan="1" align="right" valign="middle" >TDKK</td><td width="22%" colspan="1" align="right" valign="middle" >TDKK</td></tr><tr><td colspan="4"></td></tr><tr><td width="36%" colspan="1" align="left" valign="middle" >Equity at 1 January 2021</td><td width="21%" align="right" valign="middle" >20.000</td><td width="21%" align="right" valign="middle" >32.011</td><td width="22%" align="right" valign="middle" >52.011</td></tr><tr><td width="36%" colspan="1" align="left" valign="middle" >Share Based Payment</td><td width="21%" align="right" valign="middle" >0</td><td width="21%" align="right" valign="middle" >225</td><td width="22%" align="right" valign="middle" >225</td></tr><tr><td width="36%" colspan="1" align="left" valign="middle" >Net profit for the year</td><td width="21%" align="right" valign="middle" >0</td><td width="21%" align="right" valign="middle" >7.260</td><td width="22%" align="right" valign="middle" >7.260</td></tr><tr><td width="36%" colspan="1" align="left" valign="middle" >Equity at 31 December 2021</td><td width="21%" align="right" valign="middle" >20.000</td><td width="21%" align="right" valign="middle" >39.495</td><td width="22%" align="right" valign="middle" >59.495</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td width="100%" colspan="3" align="left" valign="middle" >Notes to the Financial Statements</td></tr><tr><td colspan="3"></td></tr><tr><td width="63%" colspan="1" align="left" valign="middle" >Staff expenses</td><td width="18%" align="right" valign="middle" >2021</td><td width="19%" align="right" valign="middle" >2020</td></tr><tr><td width="63%" ></td><td width="18%" colspan="1" align="right" valign="middle" >TDKK</td><td width="19%" colspan="1" align="right" valign="middle" >TDKK</td></tr><tr><td colspan="3"></td></tr><tr><td width="63%" colspan="1" align="left" valign="middle" >Wages and salaries</td><td width="18%" align="right" valign="middle" >35.045</td><td width="19%" align="right" valign="middle" >34.929</td></tr><tr><td width="63%" colspan="1" align="left" valign="middle" >Pensions</td><td width="18%" align="right" valign="middle" >4.322</td><td width="19%" align="right" valign="middle" >4.172</td></tr><tr><td width="63%" colspan="1" align="left" valign="middle" >Other social security expenses</td><td width="18%" align="right" valign="middle" >621</td><td width="19%" align="right" valign="middle" >463</td></tr><tr><td width="63%" ></td><td width="18%" align="right" valign="middle" >39.988</td><td width="19%" align="right" valign="middle" >39.564</td></tr><tr><td width="63%" colspan="1" align="left" valign="middle" >Average number of employees</td><td width="18%" align="right" valign="middle" >61</td><td width="19%" align="right" valign="middle" >63</td></tr><tr><td width="100%" colspan="3" align="left" valign="middle" >Remuneration to the Executive Board has not been disclosed in accordance with section 98 B(3) of the Danish Financial Statements Act.</td></tr><tr><td width="100%" colspan="3" align="left" valign="middle" >ConvaTec PLC has implemented different share-based compensation programs which include the Company’s Executive Board, other key management persons and other eligible employees. Share-based compensation programs are granted on a yearly basis over a fixed period. Share-based compensation programs entitle the Executive Board, other key management persons and other eligible employees to buy shares in the ConvaTec PLC per agreement at a pre-agreed price.</td></tr><tr><td width="100%" colspan="3" align="left" valign="middle" >The total share-based compensation is accounted for as equity settled programs and is valued using the Black-Scholes model and the expense is recognised in the income statement (staff expenses) throughout the vesting period with a corresponding adjustment in equity (retained earnings).</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="3"></td></tr><tr><td width="63%" colspan="1" align="left" valign="middle" >Depreciation of property, plant and equipment</td><td width="18%" align="right" valign="middle" >2021</td><td width="19%" align="right" valign="middle" >2020</td></tr><tr><td width="63%" ></td><td width="18%" colspan="1" align="right" valign="middle" >TDKK</td><td width="19%" colspan="1" align="right" valign="middle" >TDKK</td></tr><tr><td colspan="3"></td></tr><tr><td width="63%" colspan="1" align="left" valign="middle" >Depreciation of property, plant and equipment</td><td width="18%" align="right" valign="middle" >11.431</td><td width="19%" align="right" valign="middle" >11.921</td></tr><tr><td width="63%" colspan="1" align="left" valign="middle" >Gain/(loss) on disposal</td><td width="18%" align="right" valign="middle" >0</td><td width="19%" align="right" valign="middle" >230</td></tr><tr><td width="63%" ></td><td width="18%" align="right" valign="middle" >11.431</td><td width="19%" align="right" valign="middle" >12.151</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="3"></td></tr><tr><td width="63%" colspan="1" align="left" valign="middle" >Financial income</td><td width="18%" align="right" valign="middle" >2021</td><td width="19%" align="right" valign="middle" >2020</td></tr><tr><td width="63%" ></td><td width="18%" colspan="1" align="right" valign="middle" >TDKK</td><td width="19%" colspan="1" align="right" valign="middle" >TDKK</td></tr><tr><td colspan="3"></td></tr><tr><td width="63%" colspan="1" align="left" valign="middle" >Exchange gains</td><td width="18%" align="right" valign="middle" >31</td><td width="19%" align="right" valign="middle" >-286</td></tr><tr><td width="63%" ></td><td width="18%" align="right" valign="middle" >31</td><td width="19%" align="right" valign="middle" >-286</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="3"></td></tr><tr><td width="63%" colspan="1" align="left" valign="middle" >Financial expenses</td><td width="18%" align="right" valign="middle" >2021</td><td width="19%" align="right" valign="middle" >2020</td></tr><tr><td width="63%" ></td><td width="18%" colspan="1" align="right" valign="middle" >TDKK</td><td width="19%" colspan="1" align="right" valign="middle" >TDKK</td></tr><tr><td colspan="3"></td></tr><tr><td width="63%" colspan="1" align="left" valign="middle" >Interest paid to group enterprises</td><td width="18%" align="right" valign="middle" >123</td><td width="19%" align="right" valign="middle" >1.109</td></tr><tr><td width="63%" colspan="1" align="left" valign="middle" >Other financial expenses</td><td width="18%" align="right" valign="middle" >26</td><td width="19%" align="right" valign="middle" >36</td></tr><tr><td width="63%" colspan="1" align="left" valign="middle" >Exchange loss</td><td width="18%" align="right" valign="middle" >70</td><td width="19%" align="right" valign="middle" >184</td></tr><tr><td width="63%" ></td><td width="18%" align="right" valign="middle" >219</td><td width="19%" align="right" valign="middle" >1.329</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="3"></td></tr><tr><td width="63%" colspan="1" align="left" valign="middle" >Tax on profit/loss for the year</td><td width="18%" align="right" valign="middle" >2021</td><td width="19%" align="right" valign="middle" >2020</td></tr><tr><td width="63%" ></td><td width="18%" colspan="1" align="right" valign="middle" >TDKK</td><td width="19%" colspan="1" align="right" valign="middle" >TDKK</td></tr><tr><td colspan="3"></td></tr><tr><td width="63%" colspan="1" align="left" valign="middle" >Current tax for the year</td><td width="18%" align="right" valign="middle" >2.606</td><td width="19%" align="right" valign="middle" >514</td></tr><tr><td width="63%" colspan="1" align="left" valign="middle" >Deferred tax for the year</td><td width="18%" align="right" valign="middle" >-665</td><td width="19%" align="right" valign="middle" >-323</td></tr><tr><td width="63%" colspan="1" align="left" valign="middle" >Adjustment of deferred tax concerning previous years</td><td width="18%" align="right" valign="middle" >-72</td><td width="19%" align="right" valign="middle" >13</td></tr><tr><td width="63%" colspan="1" align="left" valign="middle" >Tax (expense)/income for the year</td><td width="18%" align="right" valign="middle" >1.869</td><td width="19%" align="right" valign="middle" >204</td></tr><tr><td width="100%" colspan="3" align="left" valign="middle" >The Company is subject to an ongoing tax audit regarding transfer pricing for the years 2014 and 2015. A ruling was received in July 2020, which has been appealed to the Danish Tax Appeal Agency. The Company has paid-in the adjusted corporate tax including interests, which has been included in the financial statements as receivables tax, as Management expects a full refund of the amounts paid.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="5"></td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >Property, plant and equipment</td></tr><tr><td width="46%" ></td><td width="13%" colspan="1" align="right" valign="middle" >Land and buildings</td><td width="13%" colspan="1" align="right" valign="middle" >Plant and machinery</td><td width="13%" colspan="1" align="right" valign="middle" >Other fixtures and fittings, tools and equipment</td><td width="15%" colspan="1" align="right" valign="middle" >Property, plant and equipment in progress</td></tr><tr><td width="46%" ></td><td width="13%" colspan="1" align="right" valign="middle" >TDKK</td><td width="13%" colspan="1" align="right" valign="middle" >TDKK</td><td width="13%" colspan="1" align="right" valign="middle" >TDKK</td><td width="15%" colspan="1" align="right" valign="middle" >TDKK</td></tr><tr><td colspan="5"></td></tr><tr><td width="46%" colspan="1" align="left" valign="middle" >Cost at 1 January</td><td width="13%" align="right" valign="middle" >37.432</td><td width="13%" align="right" valign="middle" >199.852</td><td width="13%" align="right" valign="middle" >3.970</td><td width="15%" align="right" valign="middle" >704</td></tr><tr><td width="46%" colspan="1" align="left" valign="middle" >Additions for the year</td><td width="13%" align="right" valign="middle" >0</td><td width="13%" align="right" valign="middle" >1.138</td><td width="13%" align="right" valign="middle" >0</td><td width="15%" align="right" valign="middle" >3.078</td></tr><tr><td width="46%" colspan="1" align="left" valign="middle" >Disposals for the year</td><td width="13%" align="right" valign="middle" >-223</td><td width="13%" align="right" valign="middle" >-12.244</td><td width="13%" align="right" valign="middle" >-1.494</td><td width="15%" align="right" valign="middle" >0</td></tr><tr><td width="46%" colspan="1" align="left" valign="middle" >Transfers for the year</td><td width="13%" align="right" valign="middle" >0</td><td width="13%" align="right" valign="middle" >704</td><td width="13%" align="right" valign="middle" >0</td><td width="15%" align="right" valign="middle" >-704</td></tr><tr><td width="46%" colspan="1" align="left" valign="middle" >Cost at 31 December</td><td width="13%" align="right" valign="middle" >37.209</td><td width="13%" align="right" valign="middle" >189.451</td><td width="13%" align="right" valign="middle" >2.476</td><td width="15%" align="right" valign="middle" >3.078</td></tr><tr><td width="46%" colspan="1" align="left" valign="middle" >Depreciation at 1 January</td><td width="13%" align="right" valign="middle" >28.800</td><td width="13%" align="right" valign="middle" >132.924</td><td width="13%" align="right" valign="middle" >2.848</td><td width="15%" align="right" valign="middle" >0</td></tr><tr><td width="46%" colspan="1" align="left" valign="middle" >Depreciation for the year</td><td width="13%" align="right" valign="middle" >1.126</td><td width="13%" align="right" valign="middle" >10.061</td><td width="13%" align="right" valign="middle" >243</td><td width="15%" align="right" valign="middle" >0</td></tr><tr><td width="46%" colspan="1" align="left" valign="middle" >Reversal of impairment and depreciation of sold assets</td><td width="13%" align="right" valign="middle" >-223</td><td width="13%" align="right" valign="middle" >-12.244</td><td width="13%" align="right" valign="middle" >-1.494</td><td width="15%" align="right" valign="middle" >0</td></tr><tr><td width="46%" colspan="1" align="left" valign="middle" >Depreciation at 31 December</td><td width="13%" align="right" valign="middle" >29.703</td><td width="13%" align="right" valign="middle" >130.741</td><td width="13%" align="right" valign="middle" >1.598</td><td width="15%" align="right" valign="middle" >0</td></tr><tr><td width="46%" colspan="1" align="left" valign="middle" >Carrying amount at 31 December</td><td width="13%" align="right" valign="middle" >7.505</td><td width="13%" align="right" valign="middle" >58.710</td><td width="13%" align="right" valign="middle" >878</td><td width="15%" align="right" valign="middle" >3.078</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1"></td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >Equity</td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >The share capital consists of 20,000 shares of a nominal value of TDKK 1. No shares carry any special rights.</td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >There have been no changes in the share capital during the last 5 years.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td /><td>Distribution of profit/loss</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="3"></td></tr><tr><td width="100%" colspan="3" align="left" valign="middle" >Provision for deferred tax</td></tr><tr><td width="63%" ></td><td width="18%" align="right" valign="middle" >2021</td><td width="19%" align="right" valign="middle" >2020</td></tr><tr><td width="63%" ></td><td width="18%" colspan="1" align="right" valign="middle" >TDKK</td><td width="19%" colspan="1" align="right" valign="middle" >TDKK</td></tr><tr><td colspan="3"></td></tr><tr><td width="63%" colspan="1" align="left" valign="middle" >Provision for deferred tax at 1 January</td><td width="18%" align="right" valign="middle" >9.067</td><td width="19%" align="right" valign="middle" >9.351</td></tr><tr><td width="63%" colspan="1" align="left" valign="middle" >Amounts recognised in the income statement for the year</td><td width="18%" align="right" valign="middle" >-626</td><td width="19%" align="right" valign="middle" >-284</td></tr><tr><td width="63%" colspan="1" align="left" valign="middle" >Provision for deferred tax at 31 December</td><td width="18%" align="right" valign="middle" >8.441</td><td width="19%" align="right" valign="middle" >9.067</td></tr><tr><td colspan="3"></td></tr><tr><td width="63%" colspan="1" align="left" valign="middle" >Property, plant and equipment</td><td width="18%" align="right" valign="middle" >8.373</td><td width="19%" align="right" valign="middle" >8.969</td></tr><tr><td width="63%" colspan="1" align="left" valign="middle" >Inventories</td><td width="18%" align="right" valign="middle" >99</td><td width="19%" align="right" valign="middle" >111</td></tr><tr><td width="63%" colspan="1" align="left" valign="middle" >Share based payment</td><td width="18%" align="right" valign="middle" >-31</td><td width="19%" align="right" valign="middle" >-13</td></tr><tr><td width="63%" ></td><td width="18%" align="right" valign="middle" >8.441</td><td width="19%" align="right" valign="middle" >9.067</td></tr><tr><td width="100%" colspan="3" align="left" valign="middle" >Deferred tax has been provided at 22% corresponding to the current tax rate.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="3"></td></tr><tr><td width="100%" colspan="3" align="left" valign="middle" >Contingent assets, liabilities and other financial obligations</td></tr><tr><td width="100%" colspan="3" align="left" valign="middle" >Charges and security</td></tr><tr><td width="63%" ></td><td width="18%" align="right" valign="middle" >2021</td><td width="19%" align="right" valign="middle" >2020</td></tr><tr><td width="63%" ></td><td width="18%" colspan="1" align="right" valign="middle" >TDKK</td><td width="19%" colspan="1" align="right" valign="middle" >TDKK</td></tr><tr><td colspan="3"></td></tr><tr><td width="63%" colspan="1" align="left" valign="middle" >Land and buildings with a carrying amount of</td><td width="18%" align="right" valign="middle" >7.505</td><td width="19%" align="right" valign="middle" >8.632</td></tr><tr><td width="63%" colspan="1" align="left" valign="middle" >Plant and machinery with a carrying amount of</td><td width="18%" align="right" valign="middle" >62.665</td><td width="19%" align="right" valign="middle" >68.753</td></tr><tr><td width="100%" colspan="3" align="left" valign="middle" >Lease obligations</td></tr><tr><td colspan="3"></td></tr><tr><td width="63%" colspan="1" align="left" valign="middle" >Rental and lease obligations until maturity</td><td width="18%" align="right" valign="middle" >63</td><td width="19%" align="right" valign="middle" >37</td></tr><tr><td colspan="3"></td></tr><tr><td width="100%" colspan="3" align="left" valign="middle" >Other contingent liabilities</td></tr><tr><td width="100%" colspan="3" align="left" valign="middle" >The Company is party to a national Danish joint taxation scheme with ConvaTec Denmark A/S as the administration company. Consequently, the Company is jointly liable for corporation taxes for the jointly taxed companies and for any obligations to withhold tax at source on interest, royalties and dividends for the jointly taxed companies.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="2"></td></tr><tr><td width="100%" colspan="2" align="left" valign="middle" >Related parties</td></tr><tr><td width="77%" colspan="1" align="left" valign="middle" >Controlling interest</td><td width="23%" colspan="1" align="left" valign="middle" >Basis</td></tr><tr><td width="77%" colspan="1" align="left" valign="middle" >Unomedical A/S</td><td width="23%" colspan="1" align="left" valign="middle" >Immediate parent</td></tr><tr><td width="77%" colspan="1" align="left" valign="middle" >ConvaTec Denmark A/S</td><td width="23%" colspan="1" align="left" valign="middle" >Intermediate parent</td></tr><tr><td width="77%" colspan="1" align="left" valign="middle" >ConvaTec International Services GmbH, Switzerland</td><td width="23%" colspan="1" align="left" valign="middle" >Intermediate parent</td></tr><tr><td width="77%" colspan="1" align="left" valign="middle" >ConvaTec Group PLC</td><td width="23%" colspan="1" align="left" valign="middle" >Ultimate parent</td></tr><tr><td width="100%" colspan="2" align="left" valign="middle" >Transactions</td></tr><tr><td width="100%" colspan="2" align="left" valign="middle" >Trade with related parties, including trade with the parent company, is based on market terms.</td></tr><tr><td width="100%" colspan="2" align="left" valign="middle" >Consolidated Financial Statements</td></tr><tr><td width="100%" colspan="2" align="left" valign="middle" >The Company is included in the Group Annual Report of the Ultimate Parent</td></tr><tr><td colspan="2"></td></tr><tr><td width="77%" colspan="1" align="left" valign="middle" >Name</td><td width="23%" colspan="1" align="left" valign="middle" >Place of registered office</td></tr><tr><td width="77%" colspan="1" align="left" valign="middle" >ConvaTec Group PLC</td><td width="23%" colspan="1" align="left" valign="middle" >UK</td></tr><tr><td width="100%" colspan="2" align="left" valign="middle" >The Group Annual Report of ConvaTec Group PLC may be obtained at the following address</td></tr><tr><td width="100%" colspan="2" align="left" valign="middle" >3 Forbury Place, 23 Forbury Road, UK.</td></tr></table> Regnskabsklasse C, mellemstor virksomhed <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td /><td>Accounting Policies</td></tr><tr><td /><td>The Annual Report of Papyro-Tex A/S 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.</td></tr><tr><td /><td>The accounting policies applied remain unchanged from last year.</td></tr><tr><td /><td>The Financial Statements for 2021 are presented in TDKK.</td></tr><tr><td /><td>Change of presentation of payables to group enterprises</td></tr><tr><td /><td>The Company has payables to group enterprises related to a rolling working capital agreement without any agreed maturity date. In previous years the debt was presented as long-term debt, but from 2021 the Company presents the debt as short-term debt. The comparative figures have been adjusted accordingly.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td /><td>Cash flow statement</td></tr><tr><td /><td>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 ConvaTec Group PLC, the Company has not prepared a cash flow statement.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td /><td>Recognition and measurement</td></tr><tr><td /><td>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.</td></tr><tr><td /><td>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.</td></tr><tr><td /><td>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.</td></tr><tr><td /><td>Assets and liabilities are initially measured at cost. Subsequently, assets and liabilities are measured as described for each item below.</td></tr><tr><td /><td>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.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td /><td>Translation policies</td></tr><tr><td /><td>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.</td></tr><tr><td /><td>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.</td></tr><tr><td /><td>Fixed assets acquired in foreign currencies are measured at the transaction date rates.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td /><td>Share-based payments</td></tr><tr><td /><td>Equity-settled share-based payments to employees etc. are measured at the fair value of the award on the grant date. The fair value of the awards at the date of the grant, which is estimated to be equal to the market value, is expensed in the income statement (staff expenses) over the vesting period, with appropriate adjustments being made during the period to reflect expected and actual forfeitures. A corresponding entry is recorded directly through equity (retained earnings).</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td /><td>Income Statement</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td /><td>Revenue</td></tr><tr><td /><td>Revenue from the sale of goods is recognised when the risks and rewards relating to the goods sold have been transferred to the customer, the revenue can be measured reliably and it is probable that the economic benefits relating to the sale will flow to the Company.</td></tr><tr><td /><td>Revenue is measured at the consideration received and is recognised exclusive of VAT and net of discounts relating to sales.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td /><td>Expenses for raw materials and consumables</td></tr><tr><td /><td>Expenses for raw materials and consumables comprise the raw materials and consumables consumed to achieve revenue for the year.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td /><td>Other external expenses</td></tr><tr><td /><td>Other external expenses comprise expenses for premises, sales and distribution as well as corporate expenses, etc.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td /><td>Gross profit/loss</td></tr><tr><td /><td>With reference to section 32 of the Danish Financial Statements Act, revenue has not been disclosed in the Annual Report.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td /><td>Staff expenses</td></tr><tr><td /><td>Staff expenses comprise wages and salaries as well as payroll expenses.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td /><td>Depreciation</td></tr><tr><td /><td>Depreciation comprises depreciation of property, plant and equipment.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td /><td>Financial income and expenses</td></tr><tr><td /><td>Financial income and expenses are recognised in the income statement at the amounts relating to the financial year.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td /><td>Tax on profit/loss for the year</td></tr><tr><td /><td>Tax for the year consists of current tax for the year and changes in deferred tax for the year. The tax attributable to the loss for the year is recognised in the income statement, whereas the tax attributable to equity transactions is recognised directly in equity.</td></tr><tr><td /><td>The Company is jointly taxed with Danish group enterprises. The tax effect of the joint taxation is allocated to enterprises in proportion to their taxable incomes.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td /><td>Balance Sheet</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td /><td>Property, plant and equipment</td></tr><tr><td /><td>Land and buildings, plant and machinery as well as other fixtures and fittings, tools and equipment are measured at cost less accumulated depreciation and impairment losses. Land is not depreciated.</td></tr><tr><td /><td>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 for use. For self-manufactured assets, cost comprises direct and indirect costs of materials, components, subsuppliers and labour costs. Interest expenses are not included in the cost.</td></tr><tr><td /><td>The basis of depreciation is cost less estimated residual value after the end of useful life. Straight-line depreciation is made on the basis of the following estimated useful lives of the assets</td></tr><tr><td /><td>Buildings</td><td>25 years</td></tr><tr><td /><td>Plant and machinery</td><td>5 - 10 years</td></tr><tr><td /><td>Other fixtures and fittings, tools and equipment</td><td>4 years</td></tr><tr><td /><td>Depreciation period and residual value are reassessed annually.</td></tr><tr><td /><td>Land is not depreciated.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td /><td>Impairment of fixed assets</td></tr><tr><td /><td>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 depreciation.</td></tr><tr><td /><td>If so, the asset is written down to its lower recoverable amount.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td /><td>Inventories</td></tr><tr><td /><td>Inventories are measured at the lower of cost under the FIFO method and net realisable value.</td></tr><tr><td /><td>The net realisable value of inventories is calculated at the amount expected to be generated by sale of the inventories in the process of normal operations with deduction of selling expenses. The net realisable value is determined allowing for marketability, obsolescence and development in expected selling price.</td></tr><tr><td /><td>The cost of goods for resale, raw materials and consumables equals landed cost.</td></tr><tr><td /><td>The cost of finished goods and work in progress comprises the cost of raw materials, consumables and direct labour with addition of indirect production costs. Indirect production costs comprise the cost of indirect materials and labour as well as maintenance and depreciation of the machinery, factory buildings and equipment used in the manufacturing process as well as costs of factory administration and management.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td /><td>Receivables</td></tr><tr><td /><td>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.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td /><td>Deferred tax assets and liabilities</td></tr><tr><td /><td>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.</td></tr><tr><td /><td>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.</td></tr><tr><td /><td>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.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td /><td>Current tax receivables and liabilities</td></tr><tr><td /><td>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</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td /><td>Financial debts</td></tr><tr><td /><td>Debts are measured at amortised cost, substantially corresponding to nominal value.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td /><td>Financial Highlights</td></tr><tr><td /><td>Explanation of financial ratios</td></tr><tr><td /><td>Return on assets</td><td>Profit/loss before financials x 100 / Total assets</td></tr><tr><td /><td>Solvency ratio</td><td>Equity at year end x 100 / Total assets at year end</td></tr><tr><td /><td>Return on equity</td><td>Net profit/loss for the year x 100 / Average equity</td></tr></table> Årsrapport 34082200 KPMG Acor Tax Partnerselskab Tuborg Havnevej 18, 5 2900 Hellerup xWizard version 1.1.1126.0, by EasyX Aps. www.easyx.eu 2020-01-01 2020-12-31 Revisionspåtegning Grundlag for konklusion Konklusion Lene Becher Jensen Sonny Lyngsø Chairman Christian Thyssen Flemming Heise Pedersen Staff Representative Lene Becher Jensen Gross profit 60736000 Gross profit 53568000 Gross profit 47590000 Gross profit 54586000 Gross profit 48775000 Profit before financial income and expenses 9317000 Profit before financial income and expenses 1853000 Profit before financial income and expenses 1701000 Profit before financial income and expenses 10094000 Profit before financial income and expenses 5744000 -1043000 606000 6338000 63 0.377 0.012 -1104000 883000 6182000 62 0.317 0.017 -1568000 6790000 12616000 64 0.343 0.145 -2423000 2776000 14544000 62 0.291 0.066 140653000 59495000 7505000 58710000 878000 3078000 70171000 70171000 33305000 13063000 12829000 6871000 2530000 35293000 1885000 70483000 20000000 39495000 8441000 8441000 8032000 51827000 2606000 10252000 72717000 140653000 137848000 52011000 161655000 51295000 146579000 50285000 148945000 43395000 Return on assets 0.066 Return on assets 0.013 Return on assets 0.011 Return on assets 0.069 Return on assets 0.039 53568000 39564000 12151000 1853000 286000 1329000 810000 204000 606000 63 8632000 66928000 1121000 704000 77385000 77385000 31705000 7948000 7380000 6871000 2261000 24460000 4298000 60463000 137848000 20000000 32011000 52011000 9067000 9067000 8304000 55152000 514000 12800000 76770000 137848000 7260000 606000 Deloitte Statsautoriseret Revisionspartnerselskab 33963556 Kim Takata Mucke State Authorised Public Accountant mne10944 Weidekampsgade 6 DK-2300 Copenhagen Henrik Wolff Mikkelsen State Authorised Public Accountant mne33747 33963556 Deloitte Statsautoriseret Revisionspartnerselskab