63642010 2022-01-01 2022-12-31 63642010 2022-01-01 2022-12-31 1 63642010 2022-01-01 2022-12-31 1 63642010 2022-12-31 63642010 2022-01-01 2022-12-31 101 63642010 2021-01-01 2021-12-31 63642010 2021-01-01 2021-12-31 1 63642010 2021-12-31 63642010 2021-01-01 2021-12-31 101 63642010 2020-01-01 2020-12-31 63642010 2020-01-01 2020-12-31 1 63642010 2020-12-31 63642010 2020-01-01 2020-12-31 101 63642010 2019-01-01 2019-12-31 63642010 2019-01-01 2019-12-31 1 63642010 2019-12-31 63642010 2019-01-01 2019-12-31 101 63642010 2018-01-01 2018-12-31 63642010 2018-01-01 2018-12-31 1 63642010 2018-12-31 63642010 2018-01-01 2018-12-31 101 63642010 2021-12-31 fsa:ContributedCapitalMember 63642010 2022-01-01 2022-12-31 fsa:ContributedCapitalMember 63642010 2022-12-31 fsa:ContributedCapitalMember 63642010 2021-12-31 fsa:RetainedEarningsMember 63642010 2022-01-01 2022-12-31 fsa:RetainedEarningsMember 63642010 2022-12-31 fsa:RetainedEarningsMember 63642010 2022-01-01 2022-12-31 1 63642010 2022-01-01 2022-12-31 1 63642010 2022-01-01 2022-12-31 2 63642010 2022-01-01 2022-12-31 3 63642010 2022-01-01 2022-12-31 4 iso4217:DKK xbrli:pure Sonny Lyngsø 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 2022. 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 2022 of the Company and of the results of the Company's operations for 2022. 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. Herlev, Lene Becher Jensen Sonny Lyngsø Christian Thyssen Flemming Heise Pedersen Chairman Staff Representative Lene Becher Jensen To the Shareholder of Papyro-Tex A/S Opinion We have audited the Financial Statements of Papyro-Tex A/S for the financial year 1 January - 31 December 2022, 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 2022 and of the results of the Company's operations for the financial year 1 January - 31 December 2022 in accordance with the Danish Financial Statements Act. Basis for opinion 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's responsibilities for the Financial Statements 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. 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. Auditor's responsibilities for the audit of the Financial Statements 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 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. • 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. Statement on Management's Review 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 Financial 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. Copenhagen, Deloitte Statsautoriseret Revisionspartnerselskab 33963556 Henrik Wolff Mikkelsen State Authorised Public Accountant mne33747 Papyro-Tex A/S Skinderskovvej 32 - 36 DK 2730 Herlev 63642010 Herlev Weidekampsgade 6 DK 2300 Copenhagen S 65571000 60736000 53568000 47590000 54586000 -6084000 9317000 1853000 1701000 10094000 -1190000 -187000 -1043000 -1104000 -1568000 -5594000 7260000 606000 883000 6790000 Balance sheet total Balance sheet total Balance sheet total Balance sheet total Balance sheet total 150414000 140653000 137848000 161655000 146579000 54077000 59495000 52011000 51295000 50285000 6652000 4216 6338000 6182000 12616000 64 61 63 62 64 Return on assets Return on assets Return on assets Return on assets Return on assets 6.60 1.30 1.10 6.90 -0.40 3.60 42.30 37.70 31.70 34.30 1.03 1.30 1.20 1.70 14.50 Main activity Papyro-Tex A/S manufactures and sells plastic foil for medical and technical industries. Development in the year The income statement of the Company for 2022 shows a loss of TDKK 5,594, and at 31 December 2022 the balance sheet of the Company shows equity of TDKK 54,077. In 2022, Papyro-Tex A/S experienced an increase in sales compared to last year. But 2022 was also the year with price increases on raw material and utilities. Consistent with Convatec Group’s strategy, the Company have been withdrawing from its hospital care activities and related industrial sales during 2022. This has resulted in costs for write-down of inventory, machines, severance and restructuring for a total of DKK 34 million. These costs are compensated by the Convatec Group. No additional costs are expected. Total investment in production equipment, buildings, regulatory environmental improvements and energy savings amounted to TDKK 6,119 in 2022. Targets and expectations for the year ahead The Company will continue to focus on investing in the production equipment and LEAN improvement. Both initiatives will contribute to retaining operating profit in a very competitive market. In 2023 the Company will no longer manufacture products for hospital care and related industrial sales. The market for Barrier Film remains competitive and the Company expects that the sale of these products will increase. The level of investment is expected to be between 3 and 4 million DKK. Investments are expected in production improvement. Constantly delivering high-quality products is in focus and the company works on continuous improvements. This place demands on the company, both with the collection and dissemination of new knowledge. In the year 2022, there has been an influx of competent employees, who have strengthened the company's starting point in terms of knowledge and competence. In 2023, there will be an increased investment in the competency development of employees. The gross profit in the coming financial year is expected to decline to 48 - 52 million and the result before tax is expected to be at a positive level at 8 - 12 million. Research and development 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. External environment and quality control In 2022, Papyro-Tex A/S has retained the environmental approval and safety document prepared in accordance with the public risk order guideline. In 2022, no deviations have been observed in accordance with the environmental approval self-regulation conditions. In 2022, Papyro-Tex A/S has been re-certified according to the ISO9001:2015 by Bureau VERITAS Denmark. Subsequent events No events materially affecting the assessment of the Annual Report have occurred after the balance sheet date. 43111 39988000 28544 11431000 309000 31000 1499000 219000 -7274000 9129000 -1680 1869000 5709000 7505000 41520000 58710000 517000 878000 533000 3078000 48279000 70171000 6871000 6871000 55150000 77042000 24630000 33305000 16073000 13063000 48175000 12829000 3748000 2530000 67996000 28422000 2638000 1884000 95264000 63611000 150414000 140653000 20000000 20000000 34077000 39495000 2223000 8441000 2223000 8441000 9289000 8032000 62681000 51827000 4537000 2606000 17607000 10252000 94114000 72717000 94114000 72717000 150414000 140653000 20000000 39495000 0 176000 176000 0 -5594000 20000000 34077000 2022 2021 TDKK TDKK 1. Staff expenses Wages and salaries 37,799 35,045 Pensions 4,798 4,322 Other social security expenses 514 621 43,111 39,988 Remuneration to the Executive Board has not been disclosed in accordance with section 98 B (3) of the Danish Financial Statements Act. 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. 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). 2. Depreciation of property, plant and equipment Depreciation of property, plant and equipment 11,372 11,431 Disposals of property, plant and equipment 17,172 0 28,544 11,431 6. Property, plant and equipment Production Other fixtures Property, plant Land and equipment, tools and fittings, tools and equipment buildings and machinery and equipment in progress TDKK TDKK TDKK TDKK Cost at 1 January 37,209 189,451 2,476 3.078 Additions for the year 0 6.119 0 533 Disposals for the year -522 -27,676 0 0 Transfers for the year 0 3.078 0 -3.078 Cost at 31 December 36,687 170,972 2,476 533 Depreciation at 1 January 29,703 130,741 1,598 0 Depreciation for the year 1,797 26,387 361 0 Reversal of impairment and depreciation -522 -27,676 0 0 of sold assets Depreciation at 31 December 30,978 129,452 1,959 0 Carrying amount at 31 December 5,709 41,520 517 533 3. Financial income Other financial income 4 0 Exchange gains 305 31 309 31 4. Financial expenses Interest paid to group enterprises 1,389 123 Other financial expenses 16 26 Exchange loss 94 70 1,499 219 5. Tax on profit/loss for the year Current tax for the year 4,538 2,606 Deferred tax for the year -6,218 -665 Adjustment of deferred tax concerning previous years 0 -72 Tax (expense)/income for the year -1,680 1,869 7. Other receivables Other receivables TDKK Cost at 1 January 6.871 Additions for the year 0 Disposals for the year 0 Cost at 31 December 6.871 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 other receivables, as Management expects a full refund of the amounts paid. 8. Equity The share capital consists of 20,000 shares of a nominal value of TDKK 1. No shares carry any special rights. There have been no changes in the share capital during the last 5 years. -5594000 7260000 10. Provision for deferred tax Provision for deferred tax at 1 January 8,441 9,067 Amounts recognized in the income statement for the year -6,218 -626 Provision for deferred tax at 31 December 2,223 8,441 2022 2021 TDKK TDKK Property, plant and equipment 4,032 8,373 Inventories 49 99 Share based payment -24 -31 Accounting provisions -1,834 0 2,223 8,441 Deferred tax has been provided at 22% corresponding to the current tax rate. 11. Other payables Dismantling costs 8.339 0 Guarantee provisions 850 0 Other payables 8.418 10.252 Total other payables 17.607 10.252 12. Contingent assets, liabilities and other financial obligations Charges and security Land and buildings with a carrying amount of 5,709 7,505 Plant and machinery with a carrying amount of 42,570 62,665 Lease obligations Rental and lease obligations until maturity 129 63 Other contingent liabilities 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. 13. Related parties Controlling interest Basis ConvaTec Denmark Holdings ApS Immediate parent ConvaTec Holdings U.K. Limited Intermediate parent ConvaTec Group Holdings Limited Intermediate parent ConvaTec Group PLC Ultimate parent Transactions Trade with related parties, including trade with the parent company, is based on market terms. Consolidated Financial Statements The Company is included in the Group Annual Report of the smallest and ultimate parent: Name Place of registered office ConvaTec Group PLC UK The Group Annual Report of ConvaTec Group PLC may be obtained at the following address: 3 Forbury Place, 23 Forbury Road, UK. 14. Accounting Policies The Annual Report of Papyro-Tex A/S for 2022 has been prepared in accordance with the provisions of the Danish Financial Statements Act applying to medium sized enterprises of reporting class C. Recognition and measurement Revenues are recognised in the income statement as earned. Furthermore, value adjustments of financial assets and liabilities measured at fair value or amortised cost are recognised. Moreover, all expenses incurred to achieve the earnings for the year are recognised in the income statement, including depreciation, amortisation, impairment losses and provisions as well as reversals due to changed accounting estimates of amounts that have previously been recognised in the income statement. Assets are recognised in the balance sheet when it is probable that future economic benefits attributable to the asset will flow to the Company, and the value of the asset can be measured reliably. Liabilities are recognised in the balance sheet when it is probable that future economic benefits will flow out of the Company, and the value of the liability can be measured reliably. Assets and liabilities are initially measured at cost. Subsequently, assets and liabilities are measured as described for each item below. 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. Translation policies Transactions in foreign currencies are translated at the exchange rates at the dates of transaction. Exchange differences arising due to differences between the transaction date rates and the rates at the dates of payment are recognised in financial income and expenses in the income statement. Where foreign exchange transactions are considered hedging of future cash flows, the value adjustments are recognised directly in equity. Receivables, payables and other monetary items in foreign currencies that have not been settled at the balance sheet date are translated at the exchange rates at the balance sheet date. Any differences between the exchange rates at the balance sheet date and the rates at the time when the receivable or the debt arose are recognised in financial income and expenses in the income statement. Fixed assets acquired in foreign currencies are measured at the transaction date rates. Share-based payments 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). Income Statement Revenue 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. Revenue is measured at the consideration received and is recognised exclusive of VAT and net of discounts relating to sales. Expenses for raw materials and consumables Expenses for raw materials and consumables comprise the raw materials and consumables consumed to achieve revenue for the year. Other external expenses Other external expenses comprise expenses for premises, sales and distribution as well as corporate expenses, etc. The Financial Statements for 2022 are presented in TDKK. Change of presentation of payables to group enterprises 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 2022 the Company presents the debt as short-term debt. The comparative figures have been adjusted accordingly. Gross profit/loss With reference to section 32 of the Danish Financial Statements Act, revenue has not been disclosed in the Annual Report. Staff expenses Staff expenses comprise wages and salaries as well as payroll expenses. Depreciation Depreciation comprises depreciation of property, plant and equipment. Financial income and expenses Financial income and expenses are recognised in the income statement at the amounts relating to the financial year. Tax on profit/loss for the year 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. 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. Balance Sheet Property, plant and equipment 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. 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. 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: Buildings 25 years Plant and machinery 5 - 10 years Other fixtures and fittings, tools and equipment 4 years Depreciation period and residual value are reassessed annually. Land is not depreciated. Impairment of fixed assets 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. If so, the asset is written down to its lower recoverable amount. Inventories Inventories are measured at the lower of cost under the FIFO method and net realisable value. 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. The cost of goods for resale, raw materials and consumables equals landed cost. 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. Receivables 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. Deferred tax assets and liabilities 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 receivables and liabilities 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 Financial debts Debts are measured at amortised cost, substantially corresponding to nominal value. true Cash flow statement 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. Financial Highlights Explanation of financial ratios Return on assets Profit/loss before financials x 100 ───────────────── Total assets Solvency ratio Equity at year end x 100 ────────────── Total assets at year end Return on equity Net profit/loss for the year x 100 ──────────────── Average equity Annual report Auditor's report on audited financial statements ParsePort XBRL Converter 2022-01-01 2022-12-31 2021-01-01 2021-12-31 2023-04-07 Regnskabsklasse C, mellemstor virksomhed 2023-07-07 33963556 Deloitte Statsautoriseret Revisionspartnerselskab Weidekampsgade 6 2300 Copenhagen S Opinion Basis for Opinion 2023-07-07 DK