28310161 2022-04-01 2023-03-31 28310161 2022-04-01 2023-03-31 1 28310161 2022-04-01 2023-03-31 1 28310161 2022-04-01 2023-03-31 2 28310161 2022-04-01 2023-03-31 3 28310161 2022-04-01 2023-03-31 4 28310161 2022-04-01 2023-03-31 1 28310161 2021-04-01 2022-03-31 28310161 2020-04-01 2021-03-31 28310161 2019-04-01 2020-03-31 28310161 2018-04-01 2019-03-31 28310161 2023-03-31 28310161 2022-03-31 28310161 2021-03-31 28310161 2020-03-31 28310161 2019-03-31 28310161 2018-04-01 2019-03-31 101 28310161 2019-04-01 2020-03-31 101 28310161 2020-04-01 2021-03-31 101 28310161 2021-04-01 2022-03-31 101 28310161 2022-04-01 2023-03-31 101 28310161 2022-03-31 fsa:ContributedCapitalMember 28310161 2022-03-31 fsa:RetainedEarningsMember 28310161 2022-03-31 fsa:RevaluationReserveMember 28310161 2022-03-31 fsa:ReserveForDevelopmentExpenditureMember 28310161 2022-04-01 2023-03-31 fsa:ContributedCapitalMember 28310161 2022-04-01 2023-03-31 fsa:RetainedEarningsMember 28310161 2022-04-01 2023-03-31 fsa:RevaluationReserveMember 28310161 2022-04-01 2023-03-31 fsa:ReserveForDevelopmentExpenditureMember 28310161 2023-03-31 fsa:ContributedCapitalMember 28310161 2023-03-31 fsa:RetainedEarningsMember 28310161 2023-03-31 fsa:RevaluationReserveMember 28310161 2023-03-31 fsa:ReserveForDevelopmentExpenditureMember 28310161 2021-04-01 2022-03-31 1 28310161 2022-04-01 2023-03-31 1 28310161 2021-04-01 2022-03-31 2 28310161 2022-04-01 2023-03-31 2 28310161 2021-04-01 2022-03-31 3 28310161 2022-04-01 2023-03-31 3 28310161 2021-04-01 2022-03-31 4 28310161 2022-04-01 2023-03-31 4 28310161 2021-04-01 2022-03-31 5 28310161 2022-04-01 2023-03-31 5 28310161 2021-04-01 2022-03-31 6 28310161 2022-04-01 2023-03-31 6 28310161 2021-04-01 2022-03-31 7 28310161 2022-04-01 2023-03-31 7 28310161 2021-04-01 2022-03-31 8 28310161 2022-04-01 2023-03-31 8 28310161 2021-04-01 2022-03-31 9 28310161 2022-04-01 2023-03-31 9 28310161 2021-04-01 2022-03-31 10 28310161 2022-04-01 2023-03-31 10 28310161 2021-04-01 2022-03-31 1 28310161 2022-04-01 2023-03-31 1 xbrli:pure iso4217:EUR 19 Takeshi Shima The Board of Directors and the Executive Board have today discussed and approved the annual report of 2022/23 for the financial year 1 April 2022– 31 March 2023. The annual report has been prepared in accordance with the Danish Financial Statements Act. It is our opinion that the financial statements give a true and fair view of the Company's assets, liabilities and financial position at 31 March 2023 and of the results of the Company's operations and cash flows for the financial year 1 April 2022 – 31 March 2023. Further, in our opinion, the Management's review gives a fair review of the development in the Company's activities and financial matters, of the results for the year and the Company's financial position. We recommend that the annual report be approved at the annual general meeting. Copenhagen To the shareholders of Anritsu A/S We have audited the financial statements of Anritsu A/S for the financial year 1 April 2022 – 31 March 2023 comprising income statement, balance sheet, statement of changes in equity, cash flow state-ment and notes, including 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 Company's assets, liabilities and financial position at 31 March 2023 and of the results of the Company's operations and cash flows for the financial year 1 April 2022 – 31 March 2023 in accordance with the Danish Financial State-ments Act. We conducted our audit in accordance with International Standards on Auditing (ISAs) and the addi-tional requirements applicable in Denmark. Our responsibilities under those standards and require-ments are further described in the "Auditor's responsibilities for the audit of the financial statements" section of our report. We are independent of the Company in accordance with the International Ethics Standards Board for Accountants' International Code of Ethics for Professional Accountants (IESBA Code) and the addi-tional ethical requirements applicable in Denmark, and we have fulfilled our other ethical responsibili-ties in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Management is responsible for 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, that Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, Management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting in preparing the financial statements unless Management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Our objectives are to obtain reasonable assurance as to 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 in Denmark will always de-tect a material misstatement when it exists. Misstatements may arise from fraud or error and are con-sidered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of financial statement users made 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 company 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 over-ride of internal control. • obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. • evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management. • conclude on the appropriateness of Management's use of the going concern basis of accounting in preparing the financial statements and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are re-quired 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 au-dit 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 in-ternal control that we identify during our audit. Management is responsible for the Management's review. Our opinion on the financial statements does not cover the Management's review, and we do not ex-press any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the Management's review and, in doing so, consider whether the 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 the Management's review provides the infor-mation required under the Danish Financial Statements Act. Based on the work we have performed, we conclude that the Management's review is in accordance with the financial statements and has been prepared in accordance with the requirements of the Dan-ish Financial Statement Act. We did not identify any material misstatement of the Management's re-view. Copenhagen 25578198 Kim Schmidt State Authorised Public Accountant mne34552 Anritsu A/S Regus Winghouse - Ørestads Boulevard 73, 4th floor 2300 Copenhagen +45 72 11 22 00 +45 72 11 22 10 www.anritsu.com 28310161 Copenhagen Takeshi Shima Chairman Toru Wakinaga Ralf Iding Nobuhide Harada Ralf Iding Anritsu Corporation holds 100% of the Company’s share capital. Anritsu A/S is included in the consolidated accounts of Anritsu Corporation for which company details can be found at www.anritsu.com KPMG Statsautoriseret Revisionspartnerselskab Dampfærgevej 28 2100 København Ø 35540000 31823000 31040000 37181000 39813000 12998000 11394000 10282000 10988000 7041000 2514000 2317000 1923000 1817000 -2492000 641000 126000 -913000 264000 311000 3052000 3001000 1486000 1609000 -1849000 16275000 16233000 14484000 13575000 11985000 34913000 33201000 27545000 25260000 30493000 51188000 49435000 42029000 38835000 40033000 215000 123000 0 69000 0 29088000 29088000 29088000 29088000 29088000 33218000 30167000 27165000 25679000 24070000 9 8 8 9 8 Operating margin Operating margin Operating margin Operating margin Operating margin 0.071 0.073 0.062 0.049 -0.063 0.089 0.093 0.08 0.076 -0.108 0.366 0.358 0.331 0.296 0.177 0.649 0.61 0.646 0.661 0.601 0.096 0.105 0.056 0.065 -0.074 Principal activities The Company provides Service Assurance in the form of integrated systems for monitoring telecommu-nications networks. The products and services are used to ensure high performance and quality of networks within GSM, GPRS, UMTS, LTE, VoLTE, VolP, 5GNSA, 5GSA, and IMS networks as well as private networks and IoT services. The solutions provided are now critical to customers, enabling them to manage their Cus-tomer’s Experience and the End-to-End service quality of their networks. This ensures that operators reduce churn, improve efficiency, and optimize their network investments. Customers are offered a range of services including around the clock support, training, system admin-istration, on-site engineering, and other consultancy services. Development through the year Result for the year Revenue has increased by 11.7% from Euro 31.8 million to Euro 35.5 million. Economic uncertainty because of the COVID19 crisis, appears to have lessened during the year. Production costs have also increased, but only by 10.3% from Euro 20.4 million to Euro 22.5 million. Margin has as a result improved slightly from 35.8% to 36.6%. This margin improvement is the result of continuous efforts on cost man-agement processes. Selling costs have significantly increased compared to last year by 0.9 million. This is mainly due to increased personnel costs compared to last year. Travel costs have also continued to increase. The administrative expenses have remained on the same level as last year. The financial result has increased by Euro 0.5 million compared to last year, mainly due to increased interest rates in combination with continued good F/X management. As a result of the above, the company is showing a profit before tax of Euro 3.2 million compared to a profit of Euro 2.4 million last year. Share capital, equity and liquidity position During the year the company has generated positive net cash flows. Cash and cash equivalents amounted to Euro 15.5 million at the end of the year compared to Euro 12.2 million at the end of the previous fiscal year. This reflects the continued efforts made in delivering more profitable projects and a strong emphasis in cash collection that has been successful. At the end of the fiscal year, the Company's equity amounted to Euro 33.2 million, compared to 30.2 million previous year year and the solvency ratio of the company was 64.9%, up from 61.0% last year. In addition to the amount of cash available at the end of March 2023, the company has available credit facilities with its banks. Thus, at 31 March 2023 the company has EUR 24.2 million in uncommitted credit facilities. It is the opinion of the Boards that the company’s cash funds and credit facilities are adequate for the company to meet its commitments and liabilities as they fall due. Strategic activities As in previous year, the company is still focusing on selling the product suite eoAnalytics, enabling the company to better address its customer’s needs and expectations. The company has recognised that the market expects faster software engineering of new solutions. In the Asian region the company focuses on Japan, India, and Australia. In most of the other countries in Asia the Chinese Network Equipment Vendor Huawei has strong footprints, which makes it commer-cially very difficult to compete. Further business development in these three countries is expected in 2023/24 The Italian, Slovakian, and Romanian subsidiaries have continued to improve the quality of the software releases and cloud solution, enabling faster upgrade times for customers and reduced operational costs. Software Engineering The company’s software engineering activities take place in the parent company as well as in its sub-sidiaries. The software engineering activities of the company are adapted to actual market conditions and con-stantly monitored to ensure software engineering project’s profitability. Special risks – operating risks and financial risks Operating risks The main operating risk of the company relates to its ability to maintain a strong position market position to ensure that the company's products and services continue to be attractive to customers. This requires agile and fast software engineering and delivery of solutions that meet the evolving global market requirements of customers in a timely manner. The company has a few customers who are operating in regions which are experiencing significant conflict or political and social unrest which could affect the company’s ability to deliver and maintain solutions. Market risks The most important market risks are related to the keen competition in the service assurance market and the constant demand for new products and services from customers. This can impose very heavy demands on constant new development of new solutions that meet time to market requirements. The stability of the global financial sector can have an impact on our customers CAPEX budgets. Currency risk Global activities expose results, cash flows and equity to fluctuation in exchange and interest rates affecting a number of the company's major trading currencies. The company is particularly exposed to fluctuations in the USD/Euro exchange rate. Liquidity risks At times the company delivers very large projects, and therefore the company must, to some degree, continually have credit facilities available. Therefore, it is company policy continually to have irrevocable credit facilities that match the planned activities. It is also a company policy not to be dependent on a single lender, but to have loan facilities from several lenders. Interest rate risks Since the company is in a positive cash position there is no significant interest rate risk. Credit risks The company’s credit risks relate primarily to the receivables from large telecom providers. When un-dertaking business, the company policy is to ensure that the customer’s credit ratings are satisfactory. Knowledge resources. The primary business base of the company includes development of integrated solutions for surveillance of telecommunication networks. This places special demands on the knowledge resources needed to develop the solutions. For a constant supply of these solutions, it is essential that the company is able to recruit and keep staff with a high education level and a detailed knowledge of the telecommunications global technology mar-ket, especially expertise in surveillance systems for telecommunication networks. Expectations for the New Year The company expects further growth in OIT, revenue and operating income for financial year 2023/24 as well as in following financial years. The vision is to continue to build a solid business and management structure that will grow profitability, manage market and external environment changes and continue to deliver competitive solutions that increase shareholder value. At the present moment, the Company suffers very limited effects by the exceptional events in the world, since a few years back. The Company's products and services are still in demand, but the Com-pany keeps close track of the development to counter and react on a declining order intake and reve-nue. Events after the date of the balance sheet date No significant event has occurred since 31st March 2023 that would affect the assessment of the finan-cial position of the company. 35540000 31823000 22542000 20429000 12998000 11394000 856000 352000 6638000 5732000 3412000 3440000 422000 446000 2514000 2317000 1356000 475000 714000 350000 3155000 2443000 104000 -559000 3052000 3001000 0 7000 5139000 8324000 6876000 3417000 12015000 11747000 276000 113000 276000 113000 2968000 3348000 1015000 1026000 3983000 4374000 16274000 16233000 1249000 954000 1249000 954000 1529000 1561000 5032000 10097000 6906000 4431000 485000 315000 467000 1711000 2390000 1482000 1342000 450000 18151000 20046000 15514000 12202000 34914000 33201000 51188000 49435000 29088000 29088000 505000 1324000 9372000 9158000 -5747000 -9404000 33218000 30166000 1201000 0 1201000 0 721000 0 7674000 11769000 1825000 1747000 2524000 2293000 1004000 654000 3021000 2806000 16769000 19269000 17970000 19269000 51188000 49435000 29088000 -9404000 1324000 9158000 30166000 0 3657000 -819000 214000 3052000 29088000 -5747000 505000 9372000 33218000 The share capital consists of 21.700.000 shares of a norminal value of EUR 1,34 per share. No shares have special rights. Result from primary operations Result from primary operations 2514000 2317000 Adjustments for non-cash items Adjustments for non-cash items 3838000 4623000 CASH FLOW OPERATIONS BEFORE CHANGES INWORKING CAPITAL CASH FLOW OPERATIONS BEFORE CHANGES INWORKING CAPITAL 6352000 6940000 296000 -1740000 5065000 -4220000 Change in contract work in progress Change in contract work in progress -2475000 -2761000 Change in other receivables and prepayments Change in other receivables and prepayments -1790000 -329000 Change in receivables from associated and group related com-panies Change in receivables from associated and group related com-panies 1074000 -379000 Change in payables to suppliers Change in payables to suppliers 78000 -229000 Change in payables to affiliated and group related companies Change in payables to affiliated and group related companies 582000 1345000 Change in Current portion of non-current liabilities Change in Current portion of non-current liabilities 1922000 -610000 Change in other payables Change in other payables 215000 -813000 279000 -1544000 6631000 5396000 900000 115000 456000 335000 336000 204000 7004000 4972000 4279000 4167000 215000 123000 802000 0 -3692000 -4290000 CASH FLOW FROM OPERATING AND INVESTINGACTIVITIES CASH FLOW FROM OPERATING AND INVESTINGACTIVITIES 3312000 682000 0 0 3312000 682000 12202000 11520000 15514000 12202000 The annual report 2022/23 has been prepared in acordance with the provisions applying to class C (me-dium) enterprises under the Danish Financial State-ments Act. The annual report is prepared in EUR 1,000. Recognition and measurement Assets are recognized in the balance sheet when it is probable that future economic benefits will flow to the Company and the value of the asset can be reliably measured. Liabilities are recognized in the balance sheet when an outflow of economic benefits is probable and when the liability can be reliably measured. On initial recognition, assets and liabilities are meas-ured at cost. Subsequently, assets and liabilities are measured as described below for each individual item. On recognition and measurement are considered gains, loss and risks known before the date of the an-nual report, if these confirm or de-confirm events that existed at the date of the balance sheet. Income is recognized in the income statement as earned. Costs incurred to generate the year's earn-ings, including depreciation, amortization, impairment and provisions are recognized in the income state-ment. Value adjustments of financial assets and liabilities measured at amortized cost are recognized in the in-come statement. Reversals as a result of changes in accounting estimates of amounts which were previ-ously recognized in the income statement are also rec-ognized in the income statement. Foreign currency translation Transactions denominated in foreign currencies (e.g. purchase/sale) are translated into the currency at the exchange rates at the transaction date or at a hedged exchange rate. Foreign exchange differences arising between the ex-change rates at the transaction date and at the date of payment are recognized in the income statement as interest income or expense and similar items. Receivables and payables denominated in foreign cur-rencies and forward exchange contracts are recog-nized at the exchange rates at the balance sheet date. Hedged receivables and payables are recognized at the hedged exchange rates. Foreign exchange gains or losses are recognized in the income statement un-der interest income and expense and similar items. INCOME STATEMENT Revenue Revenue from the sale of goods and rendering of ser-vices is recognized in the income statement provided that delivery has taken place before year-end. Reve-nue is measured excluding customer discounts and bonuses in relation to the sale. Revenue from contract work in progress is recognized at the selling price of work performed during the year (the percentage of completion method). The stage of completion is determined as the percentage of ren-dered services relative to the total services to be pro-vided under the contract. Production costs Production costs comprise of cost related to installa-tion and support of integrated systems. The cost in-cludes hardware, software, direct wages and salaries including social charges, and other staff related costs. R&D costs R&D costs comprise costs, salaries, and depreciation of operating assets and equipment directly or indirectly attributable to the Company’s R&D activities. Research costs are recognized as cost in the year when they are incurred. Costs relating to development projects that are clearly defined and identifiable, where the technical utilization degree, sufficient resources and a potential future mar-ket or development opportunities in the Company is evidenced, and where the Company intends to pro-duce, market or use the project, are capitalized from the date on which the above-mentioned conditions are satisfied and when the present value of future earnings is expected to exceed the development costs incurred. The cost of such development projects includes direct wages, salaries, materials and other direct and indirect costs attributable to the development projects. Other development costs are recognized as cost in the year when they are incurred. Selling and distribution costs Selling and distribution costs comprise costs relating to the sale and distribution of products and services, including salaries, sales commissions, advertising and marketing costs and depreciation, etc. Management and administrative expenses Management and administrative expenses comprise expenses incurred for administrative staff and man-agement, office expenses and depreciation, etc. Profits/losses from investments in subsidiaries The proportionate share of the profit/loss after tax of the individual subsidiaries is recognized in the income statement. Financial items Interest income and expense and similar items com-prise interest income and expense relating to the fiscal year. Also included are finance costs relating to finance leases, impairment of investments and realized and unrealized gains and losses. Tax on profit/loss for the year Tax on the taxable income for the year adjusted for changes in provision for deferred tax for the year is recognized in the income statement. Withholding tax on dividends from foreign subsidiaries is recognized in the year when dividend is received and included in the profit for the year. Surcharges, premiums and refunds relating to tax pay-ments are included in financial items and similar items at the time of payment. Tax payable is recognized under short-term liabilities and deferred tax is recognized under provisions. Tax assets are recognized under investments. De-ferred tax is measured using the balance sheet liability method on all temporary differences between the car-rying amount and the tax base of assets and liabilities. The tax base of tax loss carry forwards or deferred tax is recognized as an asset when the tax losses are likely to reduce tax payments in coming years. Deferred tax is provided for according to the tax rules and at the tax rates applicable when the temporary dif-ferences are expected to reverse. The change in de-ferred tax as a result of changes in tax rates is recog-nized in the income statement. BALANCE SHEET Intangible assets Intangible assets are measured at cost less accumu-lated amortization and impairment. Amortization of the following intangible assets is pro-vided on a straight-line basis over the expected useful lives of the assets. The expected useful lives are as follows: Software....................................................... 3 years Development projects ................................. 3 years Gains or losses on the disposal of intangible assets are determined as the difference between the selling price less selling costs and the carrying amount at the disposal date, and are recognized in the income state-ment as other operating income or other operating costs, respectively. Tangible assets Property, machinery, equipment etc. are measured at cost less depreciation and impairment. Cost includes the cost of acquisition and cost of mate-rials, components, subcontractor services, direct wages and salaries, and indirect production costs. In-terest and other borrowing costs are not included in the cost of acquisition. The cost of assets leased under finance leases is stated at the lower of fair value or the present value of the future lease payments at the time of acquisition. Assets leased under finance leases are recognized in the balance sheet and depreciated as the Company's other property, plant and equipment. Depreciation of property, plant and equipment is pro-vided on a straight-line basis over the expected useful lives of the assets. In calculating depreciation on build-ings, an estimated scrap value is used. The expected useful lives are as follows: Operating assets and equipment ...............................................3 - 5 years IT equipment ...........................................3 - 5 years The useful life and sidual value are reassessed annu-ally. Changes are treated as accounting estimates, and the effect on depreciation is recognized prospec-tively. Gains or losses on the disposal or retirement of an item of property, plant and equipment are determined as the difference between the selling price less costs of dismantling and disposal of the item and restoring the site and the carrying amount at the date of disposal. The gains or losses are recognized as other operating income or other operating costs, respectively. Gains and losses on sale of property are recognized in a sep-arate line item. Impairment of assets The carrying amount of intangible assets and property, plant and equipment is subject to an impairment test in connection with the year-end reporting. If indications of impairment are present, the carrying amount is writ-ten down to the higher of an asset’s net selling price and its value in use. The value in use is determined as the present value of the future net cash inflows ex-pected to arise from the use of the asset. Investments Investments in subsidiaries are measured using the equity method at the proportionate share of the sub-sidiaries’ net asset value. Subsidiaries with negative net asset values are meas-ured at DKK 0 (nil), and any amounts owed by such enterprises are written down by the Company's share of the negative net asset value. If the parent company has an obligation to cover the negative equity and if the negative equity exceeds the amount owed, the re-maining amount is recognized in provisions. Inventories Hardware and software for resale are measured at cost in accordance with the FIFO method. Where the net realizable value is lower than cost, in-ventories are written down to this lower value. Receivables Receivables are recognized at cost and subsequently measured at the amount expected to be received.Contract work in progress Contract work in progress is measured at the selling price of the part of the contract performed at the bal-ance sheet date less progress billings and anticipated losses. The stage of completion is determined as the percent-age of rendered services relative to the total services to be provided under the contract. Provisions for bad debt losses are deducted from the selling price and determined as the total losses on the contract regardless of the actual stage of comple-tion. The selling price of work performed exceeding pro-gress billings and anticipated losses is recognized un-der receivables. Progress billings and anticipated losses exceeding the value of work performed are rec-ognized under liabilities. Prepayments Prepayments comprise prepayment of costs incur-reced relating to subsequent financial years. Equity Reserve for development costs The reserve for development costs comprises capital-ised development costs. The reserve cannot be used for dividends, distribution or to cover losses. If the rec-ognised development costs are sold or in other ways excluded from the Company's operations, the reserve will be dissolved and transferred directly to the distrib-utable reserves under equity. If the recognised devel-opment costs are written down, the part of the reserve corresponding to the write-down of the development costs will be reversed. Should it happen that a write-down of development costs is subsequently reversed, the reserve will be re-established. The reserve is re-duced by amortisation of capitalised development costs on an ongoing basis. Financial liabilities Financial liabilities are recognised at the date of bor-rowing at cost, corresponding to the proceeds received less transaction costs paid. In subsequent periods, the financial liabilities are measured at amortised cost, corresponding to the capitalised value using the effec-tive interest rate. Accordingly, the difference between cost and the nom-inal value is recognised in the income statement over the term of the loan together with interest expenses. Other liabilities are measured at amortised cost, which usually corresponds to nominal value. Other rental and lease matters When contracts for rent and lease of buildings and op-erating assets are of an operational nature, rental and lease payments are recognized in the income state-ment for the period to which they relate. The remaining rental and lease obligations under such contracts are disclosed as contingent liabilities. Cash flow statement The cash flow statement shows the cash flows from operating, investing and financing activities for the year, the year’s changes in cash and cash equivalents as well as the cash and cash equivalents at the begin-ning and end of the year. Cash flows from operating activities comprise the Company's share of the profit for the year adjusted for non-cash operating items, changes in working capital and paid corporation tax. The cash flow effect of acquisitions and disposals of enterprises is shown separately in cash flows from in-vesting activities. Cash flows from acquisitions of en-terprises are recognized in the cash flow statement from the date of acquisition. Cash flows from dispos-als of enterprises are recognized up until the date of disposal. Cash flows from investing activities comprise pay-ments in connection with acquisitions and disposals of enterprises and activities and acquisitions and dispos-als of intangible assets, tangible assets and financial assets. Cash flows from financing activities comprise changes in the size or composition of the share capital and re-lated costs as well as the raising of loans, repayment of interest-bearing debt, and payment of dividends to shareholders.Key ratios The key ratios stated in the survey of financial high-lights have been calculated as follows: Gross margin: Gross profit x 100 Revenue Operating margin: Profit of primary operations x 100 Revenue Return on invested capital: Profit of primary operations x 100 Average invested capital Invested capital: Operating intangible and tangible fixed assets and net working capital Return on equity: Profit for the year x 100 Average equity Solvency ratio: Equity end year x 100 Total assets Referring to the Danish Financial Statements Act § 112 have the Company not prepared the consolidated financial statement for the Anritsu A/S Group. Anritsu A/S is included in the consolidated accounts of Anritsu Corporation, Japan which is the Parent Company. 2. Production costs 2022/23 2021/22 Production costs 18,537 16,566 Depreciation of capitalized development costs 4,005 3,863 Production costs 22,542 20,429 3. Development costs Incurred development costs 5,135 4,519 Capitalized development costs -4,279 -4,167 Development costs 856 352 4. R&D development costs The company is capitalizing costs incurred for the development of the MasterClaw (MC) product suite. Costs comprise mainly engineering costs based on time spent. Development projects are all subject to management approval. Only projects that could generate future revenue stream are eligi-ble for capitalization. Software versioning management is performed by the head of R&D. It is sub-ject to regular management review. On-going development ensure that the MasterClaw suite match customers expectations in the Service Assurance market. Although length of utilization of MC by customer exceed 5 years, projects are depreciated on a 3 year basis. 5. Financial assets Subsidiaries Deposits Cost value 1 April 2022 2,463 1,026 Additions 0 1 Disposal 0 -12 Cost Price 31 March 2023 2,463 1,015 Revaluations 1 April 2022 885 0 Dividends distributed -802 0 Result of the year 422 0 Revaluation 31 March 2023 505 0 Carrying amount 31 March 2023 2,968 1,015 Investment in subsidiaries are specified as follows: (EUR 1.000) Result of the Name Company equity Equity year Anritsu Solutions s.r.l, Italy (Rome) EUR 208K 1,096 164 Anritsu Solutions s.r.l, Romania (Bucharest) EUR 23K 605 132 Anritsu Solutions s.r.l, Slovakia (Bratislava) EUR 18K 1,267 127 Anritsu A/S's share 2,968 422 All subsidiaries are owned 100% by Anritsu A/S. 6. Financial income 2022/23 2021/22 Interest income 119 0 Net foreign exchange gains 1,236 475 Financial income 1,356 475 7. Financial costs Interest costs, banks and credit institutes 92 103 Net exchange rate loss 571 247 Other financial costs 50 0 Financial costs 714 350 8. Tax for the year Paid Withholdning taxes 336 204 Tax reclaim of realised R&D costs -265 -738 Deferred tax adjustment for the year 32 -25 Tax for the year 104 -559 3657000 -1092000 214000 3208000 -819000 885000 3052000 3001000 Completed develop-Development projects 10. Intangible Fixed assets Software ment projects in progress Cost price 1 April 2022 30 21,005 3,417 Additions 0 0 4,279 Transferred 0 820 -820 Cost price 31 March 2023 30 21,825 6,876 Depreciations and impairment 1 April 2022 24 12,681 0 Depreciation of the year 7 4,005 0 Depreciation and impairment 31 March 2023 30 16,686 0 Carrying amount 31 March 2023 0 5,139 6,876 To be depreciated over 3 years 3 years - Completed development projects Completed development projects relate to development and testing of various parts of MasterClaw. The projects were completed in years prior to 2023 and are amortised over 3 years. MasterClaw is An-ritsu A/S’s main product. Development projects in progress Development projects in progress comprise of development and testing of updates to and improve-ments of MasterClaw. This is continuous work that adds functionality and adapts MasterClaw to new technologies and requirements. 11. Tangible assets IT equipment Cost price 1 April 2022 123 Additions 215 Cost Price 31 March 2023 338 Depreciation 1 April 2022 10 Depreciation for the year 52 Depreciation 31 March 2023 62 Carrying amount 31 March 2023 276 To be depreciated over 3 - 5 years 12. Deferred tax assets 31/03/2023 31/03/2022 Deferred tax assets 1. April 1,561 1,536 Deferred tax adjustment for the year -32 25 Deferred tax assets 1,529 1,561 The Company has deferred tax assets of EUR 10.4 million. The full deferred tax has not been rec-ognised due to uncertainty regarding the future utilisation. 13. Trade Receivables 31/03/2023 31/03/2022 Receivables from sales of goods and services 5,252 10,448 Provisions for expected losses -220 -351 Trade receivables 5,032 10,097 14. Contract work in progress Sales value of completed work 23,392 17,448 Progress billing -19,468 -19,227 3,924 -1,779 Recognized as follows in the balance: Contract work in progress for third parties entered under assets 6,906 4,431 Received prepayments entered under liabilities -2,981 -6,210 Current work in progress net 3,924 -1,779 15. Prepayments Prepayments are prepaid costs representing rent, insurance, subscriptions, license payments and agent fees. 16. Debt liabilities 31/03/2023 31/03/2022 Within a year 721 0 Between one and five years 1,201 0 Suppliers liabilities 1,922 0 17. Prepayments from customers 31/03/2023 31/03/2022 Prepayments on contract work in progress for third parties (cf. Note 14) 2,981 6,210 Prepayments from customers, derived from service contracts 4,693 5,559 Prepayments from customers 7,674 11,769 18. Contingent Items Contingent liabilities Security for Anritsu A/S's customer obligations in projects in progress. Bank guarantees of EUR 3.8M have been provided. The parent company Anritsu Corporation has provided an equivalent guarantee to the banks provid-ing the gurantees. Operating lease obligations The Company has entered into operating leases with a remaining term of nine months and an aver-age monthly lease payments of EUR 1.3 thousand, totalling EUR 12 thousand 19. Staff costs 2022/23 2021/22 Wages and salaries 1,517 1,652 Pensions 28 26 Other social security costs 71 50 Total 1,616 1,729 The staff cost is recognized in the income statement as below: Production costs 609 706 Distribution costs 974 971 Administration costs 32 52 Total 1,616 1,729 Board of Directors and the Executive Board have received remuneration through recharges of: 306 265 With reference to section 98b(3)(i) of the Danish Financial Statements Act, information on remuner-ation to the Executive Board and Board of Directors has been shown together. 20. Depreciation 2022/23 2021/22 Depreciation on development projects 4,005 3,863 Depreciation on intangible assets 7 10 Depreciation on tangible assets 52 112 Total 4,063 3,985 Depreciation and impairment is recognized in the income statement as below: Production costs 52 101 Administration costs 0 0 Production costs, capitalized development projects 4,005 3,863 Research and development costs, other assets 0 11 Distribution costs 7 10 Total 4,063 3,985 Depreciation of tangible assets includes assets that have been used as part of a solution that is de-livered to a customer. 21. Related parties and ownership relations Controlling interest Background Anritsu Corporation, Onna 5-1-1, Atsugi-shi Principal Shareholder Kanagawa 243-8555, Japan Other related parties: Background Anritsu Solutions s.r.l, Italy Subsidiary Anritsu Solutions SPA, Romania Subsidiary Anritsu Solutions SK s.r.o., Slovakia Subsidiary Ownership The below shareholder is noted in the company register of shareholders as owner of a minimum of 5% of the votes on a minimum of 5% of the share capital. Anritsu Corporation Onna 5-1-1 Atsughi-shi Kanagawa 243-8555 Japan Group relations: The company's immediate and ultimate parent company, which prepares the Group accounts, and of which the company is a part as a subsidiary is: Anritsu Corporation, Onna 5-1-1, Atsugi-shi, Kanagawa 243-8555, Japan. The Group accounts for the foreign parent company is available from this adress: Anritsu Corporation, Onna 5-1-1, Atsugi-shi, Kanagawa 243-8555, Japan. or at this link: www.anritsu.com Related party transactions (EUR 1.000) 2022/23 Sale of services and goods to subsidiaries 1,317 Purchase of services and goods from subsidiaries 10,280 Sale of services and goods to affiliated companies 6,167 Purchase of services and goods from affiliated companies 7,132 Remuneration to the Parent company´s Executive Board and Board of Directors is disclosed in note 19. Payables to associates and subsidiaries are disclosed in the balance sheet. 22. Adjustments for non-cash items 31/03/2023 31/03/2022 Depreciation 4,063 3,985 Share of result in subsidiaries -422 -446 Unrealised gains from exchange rate adjustment of foreign currency 455 361 Unrealised losses from exchange rate adjustment of foreign currency -259 -15 Other adjustments 0 738 Adjustments for non-cash items 3,838 4,623 Annual report Auditor's report on audited financial statements ParsePort XBRL Converter 2022-04-01 2023-03-31 2021-04-01 2022-03-31 2023-07-11 Regnskabsklasse C, mellemstor virksomhed 2004-07-01 2023-07-11 25578198 KPMG Statsautoriseret Revisionspartnerselskab Dampfærgevej 28 2100 København Ø Opinion Basis for Opinion 2023-07-11 9 8