Årsrapport 29138060 Universal Robots A/S Energivej 25 DK-5260 Odense S 2022-01-01 2021-01-01 2022-12-31 2021-12-31 29138060 Universal Robots A/S Energivej 25 5260 Odense S Odense accounting@universal-robots.com PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab 33771231 Munkebjergvænget 1 5230 Odense M Danmark 2023-03-03 Ole Nørgaard Regnskabsklasse C, stor virksomhed Revisionspåtegning The Executive Board and Board of Directors have today considered and adopted the Annual Report of Universal Robots 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 and the Consolidated Financial Statements give a true and fair view of the financial position at 31 December 2022 of the Company and the Group and of the results of the Company and Group 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. Odense 2023-03-03 Kim Ulletved Povlsen CEO Kim Nørgaard Andreasen CFO Charles Jeffrey Gray Chairman Michael Dennis Callahan Amy Rose McAndrews Gregory Stephen Smith To the Shareholder of Universal Robots A/S Opinion In our opinion, the Consolidated Financial Statements and the Parent Company Financial Statements give a true and fair view of the financial position of the Group and the Parent Company at 31 December 2022 and of the results of the Group’s and the Parent Company’s operations for the financial year 1 January - 31 December 2022 in accordance with the Danish Financial Statements Act. We have audited the Consolidated Financial Statements and the Parent Company Financial Statements of Universal Robots 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, for both the Group and the Parent Company (”the Financial Statements”). 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 Group in accordance with the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark, and we have fulfilled our other ethical responsibilities 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 Management’s Review. Our opinion on the Financial Statements does not cover Management’s Review, and we do not express any form of assurance conclusion thereon. In connection with our audit of the Financial Statements, our responsibility is to read Management’s Review and, in doing so, consider whether Management’s Review is materially inconsistent with the Financial Statements or our knowledge obtained during the audit, or otherwise appears to be materially misstated. Moreover, it is our responsibility to consider whether Management’s Review provides the information required under the Danish Financials Statements Act. Based on the work we have performed, in our view, Management’s Review is in accordance with the Consolidated Financial Statements and the Parent Company 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. Management is responsible for the preparation of consolidated financial statements and parent company financial statements that give a true and fair view in accordance with the Danish Financial Statements Act, and for such internal control as Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the Financial Statements, Management is responsible for assessing the Group’s and 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 Group or the Company or to cease operations, or has no realistic alternative but to do so. Our objectives are to obtain reasonable assurance about whether the Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Financial Statements. As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s and the Group’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 Group’s and 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 Group and 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. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the Consolidated Financial Statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. 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. Odense 2023-03-03 Odense 2023-03-03 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab Mikael Johansen State Authorized Public Accountant mne23318 Anders Kronborg Choy State Authorized Public Accountant mne44142 Seen over a five-year period, the development of the Group is described by the following financial highlights: The ratios have been prepared in accordance with the recommendations and guidelines issued by the Danish Society of Financial Analysts. For definitions, see under accounting policies.The ratios have been prepared in accordance with the recommendations and guidelines issued by the Danish Society of Financial Analysts. For definitions, see under accounting policies. 1437762000 1658558000 1479186000 200777000 274324000 288321000 3296000 6959000 -17064000 192000 -163000 151264000 213307000 221172000 936683000 922124000 823217000 601549000 591990000 453243000 155054000 39960000 34359000 37674000 64184000 575 541 431 14.8 19.5 13.9 16.5 19.4 26.7 30.5 21.4 29.7 34.9 58 53.3 64.2 64.2 55.1 39.2 47.3 25.3 40.8 63.2 Key activities As in prior years, the Group's main activity is the development, manufacturing and sale of flexible, easily programmable and collaborative robots. Development in the year The Group reported a profit before tax for 2022 of DKK 274,746k, and equity amounts to DKK 736,732k on 31 December 2022. The results are overall considered satisfactory in the light of a challenging macroeconomic year for many industries, in the light of COVID-19, the war in Ukraine and rising inflation. Revenue increased by 17.6 % compared to the prior year based on a confirmed growth in demand for the collaborative industrial robots. Last year the expectations for the 2022 net profit are within the expected range presented in last years annual report, though growth was lower than anticipated due to the macroeconomic circumstances. The Group has distribution channels in approximately 50 countries around the world and has subsidiaries, branches, or group-related companies in these countries: USA, Mexico, Germany, Spain, Italy, France, Czech Republic, Sweden, United Kingdom, China, Singapore, India, Japan, Taiwan and South Korea. Expected development of the company, including specific prerequisites and uncertainties The current financial environment with significant inflation in multiple regions across the world, as well as the war in Ukraine, makes it a difficult environment to operate in. Despite this, management expects continued strong revenue growth within the Group in 2023. The company’s declared strategy aims at continued growth approximated 20-30% year over year for the coming years. This ambition is relentlessly pursued based on the company’s strong product portfolio and market position, which is maintained by significant investments in innovation and R&D. The group expects net profit after tax for 2023 to be within +/- 15% of 2022. Uncertainties associated with the expected development of the company The Group's most significant operating risks are related to the ability to maintain the present strong position in the market. The risk is mitigated through significant investments in innovation, user experience improvements and general R&D. Currency risk The Group has a natural currency exposure, primarily in EUR but also in USD and CNY (Renminbi), and the Group is therefore to some extent exposed to variations in exchange rates. It is the Group's foreign exchange policy not to hedge such exposures. Credit risk The credit risk is controlled by performing ongoing credit ratings and credit insurance of customers and business partners. The Group has considerable focus on the credit risks in relation to the customers and the total credit risk is therefore considered low. Prices on raw material Changes in prices and delivery terms for purchase of raw materials and consumables for production, is currently experiencing both price increases and delivery issues which can influence the production cost significantly. Knowledge resources The company is to a large extent a knowledge-based company. To retain and attract highly competent employees, there is a high focus on targeted competence development of all employees. The company's knowledge resources consist primarily of knowledge of employees and products. Knowledge resources among the employees play a major role in the continued development of the company's product range and the demand that comes from the company's customers. Research and development Universal Robots A/S continues to invest many resources in the continuous development of the Company's products and markets. Consequently, the Company is dependent on being able to attract and retain the right human resources and skills. External environment The activities of the Group do not to a high degree impact the external environment; however, the Company is working on reducing the level of energy consumption and CO2 emission on a continuous basis, and has initiated several sustainability initiatives, aiming at becoming more sustainable over the coming years. Subsequent events No material events have occurred after the end of the financial year which could significantly affect the group´s financial position. Corporate social responsibility statement cf. section 99 a of the Danish Financial Statements Act and statement of the gender composition of the management cf. section 99 b of the Danish Financial Statements Act Data ethics policy cf. section 99 d of the Danish Financial Statements Act CSR is an important focus point at Universal Robots A/S, and corporate responsibility as a systematic basis for management decisions has always been and will continue to be an important and integral part of our strategies and daily work procedures. We have visions, policies and guidelines addressing several aspects of the CSR area, including e.g. employee Code of Conduct, anti-corruption, responsible sourcing, compliance with competition laws, whistle-blower scheme, environment, occupational health and safety, community relations, climate and human rights. As an integral part of management’s roles and responsibilities, our management team, and our Board of Directors ongoingly assess risks of relevant areas and decide on initiatives to be implemented. The full statements according to the above Act can be found in a separate report at our homepage www.universal-robots.com/about-universal-robots/corporate-responsibility/ or via this deep link: https://www.universal-robots.com/media/1826949/02_2023_ur_csr-repoart_a4_web_final.pdf Universal Robots A/S ensures data ethics, which includes addressing and recommending concepts of right and wrong conduct, with transparency in and defensibility of actions and decisions in relation to data in general and personal data. Universal Robots A/S as a part of the Teradyne’s Global Data Protection Program, ensures compliance with applicable data privacy laws, and gives individuals more overview over how their data is collected, used, and protected. Teradyne’s Global Data Protection Program includes the Privacy Policy, Data Classification Policy, Data Retention Policy, Data Security Incident Response Policy, Information Security Policy, and other internal processes and guidelines in place which details how we handle, classify and store data globally. In accordance with applicable laws and regulations, including GDPR, the EU Whistleblower Directive and Danish Whistleblower Act, Universal Robots has a few channels, including Whistleblower Hotline, for report data breach, illegal or unethical conduct, suspected violations, complaints, concerns, or misconduct, including violations of internal policies. The data ethics policy will be fully implemented in 2023. 2285850000 1943372000 2222767000 1910178000 1095499000 911278000 1096654000 913326000 1190351000 1032094000 1126113000 996852000 595426000 473463000 560775000 436866000 254876000 179622000 254876000 179622000 340049000 379009000 310462000 380364000 631000 180000 631000 180000 0 0 706000 4707000 5370000 8600000 3377000 9310000 2074000 1641000 2066000 1725000 342714000 385788000 311848000 392476000 67967000 86455000 58057000 83433000 274747000 299333000 253791000 309043000 68375000 146741000 68375000 146741000 2546000 1340000 2546000 1340000 9924000 13874000 9822000 13874000 482000 688000 0 0 157614000 58456000 157614000 58456000 238941000 221099000 238357000 220411000 78327000 72319000 63569000 58980000 10688000 13445000 8945000 11523000 145652000 28215000 145652000 28215000 234667000 113979000 218166000 98718000 0 0 5142000 5399000 0 0 6741000 6691000 8503000 10550000 4972000 5604000 8503000 10550000 16855000 17694000 482111000 345628000 473378000 336823000 274180000 195625000 274180000 195625000 54654000 41710000 42813000 26519000 48848000 11174000 48848000 11174000 377682000 248509000 365841000 233318000 245576000 130892000 228411000 115363000 3887000 3748000 20453000 61422000 18183000 16380000 18058000 14580000 1258000 5309000 0 0 5277000 0 5264000 0 11413000 12273000 8257000 7094000 285594000 168602000 280443000 198459000 124354000 480959000 92930000 417920000 787630000 898070000 739214000 849697000 1269741000 1243698000 1212592000 1186520000 546000 546000 546000 546000 546000 546000 546000 546000 0 0 175654000 157663000 -601000 846000 -179000 -42000 736785000 462038000 528944000 293144000 0 200000000 0 200000000 2000 2000 0 0 736732000 663432000 704965000 651311000 30539000 22050000 30539000 22050000 17899000 16600000 17899000 16600000 48438000 38650000 48438000 38650000 72715000 68014000 72131000 64286000 72715000 68014000 72131000 64286000 1356000 1031000 1356000 1031000 6749000 14124000 6749000 14124000 108333000 158103000 103182000 152904000 109759000 68791000 133120000 94385000 3761000 10694000 0 9071000 132837000 167921000 97591000 119443000 49061000 52938000 45060000 41315000 411856000 473602000 387058000 432273000 484571000 541616000 459189000 496559000 1269741000 1243698000 1212592000 1186520000 546000 0 846000 462038000 200000000 2000 0 0 -200000000 0 0 0 -1447000 0 0 0 0 0 274747000 0 0 546000 0 -601000 736785000 0 2000 546000 157663000 -42000 293144000 200000000 0 0 0 -200000000 0 0 0 -137000 0 0 0 0 17991000 0 -17991000 0 0 0 0 253791000 0 0 546000 175654000 -179000 528944000 0 0 Geographical segments America 769.755 577.513 769.630 578.160 Asia 538.098 534.870 475.350 501.716 Europe 977.997 830.989 977.787 830.302 2.285.850 1.943.372 2.222.767 1.910.178 486033000 398455000 408648000 324776000 29435000 20502000 26521000 17673000 23304000 17356000 10449000 7642000 538772000 436313000 445618000 350091000 8679 7385 8679 7385 8679000 7385000 8679000 7385000 744 573 605 456 Wages and Salaries, pensions and other social security expenses are recognised in the following items:Cost of sales253307199118253307199118Distribution expenses21347418178512032095563Administrative expenses71991554107199155410538772436313445618350091 Under Teradyne’s stock compensation plans, Teradyne grants stock options, restricted stock units and performance-based restricted stock units, and employees are eligible to purchase Teradyne’s common stock through its Employee Stock Purchase Plan (“ESPP”). Time-based restricted stock unit awards, granted to employees, vest in equal annual installments over four years. Restricted stock units are offered to the Executive board of Universal Robots and other Management positions. In 2022 33,091 stock units were granted to employees of Universal Robots and 10,650 stock units were vested. 188000 0 258000 77000 199000 129000 0 26000 4983000 8471000 3119000 9207000 816000 0 816000 0 1258000 1641000 1250000 1725000 2074000 1641000 2066000 1725000 57205000 83820000 51943000 79352000 12313000 1476000 8205000 1438000 -1551000 815000 -2091000 2643000 0 344000 0 0 67967000 86455000 58057000 83433000 279601000 5869000 43509000 2062000 58457000 -37648000 0 90000 0 37558000 111000 1385000 4250000 0 70637000 -60000 0 -1963000 0 0 9038000 0 0 -9038000 251042000 7254000 45886000 2062000 157614000 132863000 4529000 29637000 1374000 0 49864000 179000 8178000 206000 0 -60000 0 -1853000 0 0 182667000 4708000 35962000 1580000 0 68375000 2546000 9924000 482000 157614000 Development projects relating to the further development of the company's product portfolio. The majority of the projects in progress are expected to be finalized in the coming years and the projects are progressing as planned using the resources allocated by Management to the development. Prior to the launching of the projects the company has studied the market and assessed that there is a need for the products. 279601000 5869000 43509000 58457000 -37648000 0 90000 37558000 111000 1385000 4119000 70637000 -60000 0 -1963000 0 9038000 0 0 -9038000 251042000 7254000 45755000 157614000 132863000 4529000 29637000 0 49864000 179000 8149000 0 -60000 0 -1853000 0 182667000 4708000 35933000 0 68375000 2546000 9822000 157614000 200307000 40353000 28215000 -628000 228000 0 36218000 1399000 117437000 -17325000 -215000 0 218572000 41765000 145652000 127987000 26908000 0 -339000 191000 0 28730000 4156000 0 -16133000 -178000 0 140245000 31077000 0 78327000 10688000 145652000 176395000 36289000 28215000 -144000 13000 0 30120000 1044000 117437000 -16757000 -215000 0 189614000 37131000 145652000 117415000 24766000 0 -131000 14000 0 24326000 3584000 0 -15565000 -178000 0 126045000 28186000 0 63569000 8945000 145652000 5399000 5399000 -257000 0 Universal Robots (Shanghai) Co. Ltd. Shanghai, China 100 35448 16173 Universal Robots (India) Private Limited Bangalore, India 99 2235 221 Universal Robots (Spain) S.L. Barcelona, Spain 100 4471 670 Universal Robot (UK) Ltd. London, United Kingdom 100 1182 463 Universal Robots (Germany) GmbH München, Germany 100 10040 2362 Universal Robots Mexico S.A. de C.V. Mexico City, Mexico 100 812 -587 10550000 6691000 5604000 -80000 50000 -80000 -1967000 0 -552000 8503000 6741000 4972000 Prepayments consist of prepaid expenses concerning insurance premiums, marketing materials, subscriptions and other costs. 0 95000000 0 200000000 253791000 14043000 Provision for deferred tax at 1 January 16.741 17.372 22.050 20.605 Amounts recognised in the income statement for the year 12.540 -631 8.489 1.445 Provision for deferred tax at 31 December 29.281 16.741 30.539 22.050 The recognized tax asset of DKK 1.258k relates to the tax effect of accrued income in a group subsidiary. The Company provides warranties of up to 15 months on its products and is therefore obliged to repair or replace goods which are not satisfactory. Based on previous experience in respect of the level of repairs and returns, the following have been recognised for expected warranty claims. Warranty provisions 17.899 16.600 17.899 16.600 17.899 16.600 17.899 16.600 72715000 68014000 72131000 64286000 0 0 0 0 72715000 68014000 72131000 64286000 Deferred income relates to accrual of revenue from future services relating to the company's delivered products and additional warranty. Rental and lease obligations Rent and lease liabilities 130.780 53.231 60.046 26.616 Guarantee obligations The company has issued guarentee commiments covering bankfacilities of group companies at a maximum of 0 0 3.137 2.953 Other contingent liabilities Universal Robots is subject to some legal proceedings and claims which have arisen in the ordinary course of business such as, but not limited to, patent, employment, commercial and environmental matters. Universal Robots believes that it has meritorious defenses against all pending claims and intends to vigorously contest them. While it is not possible to predict or determine the outcomes of any pending claims or to provide possible ranges of losses that may arise, Universal Robots believes the potential losses associated with all of these actions are unlikely to have a material adverse effect on its business, financial position or results of operations. The Danish group companies are jointly and severally liable for tax on the jointly taxed incomes etc of the Danish group. The total amount of corporation tax payable is disclosed in the Annual Report of Teradyne Holdings Denmark ApS, which is the management company of the joint taxation purposes. Moreover, the Danish group companies are jointly and severally liable for Danish withholding taxes by way of dividend tax, tax on royalty payments and tax on unearned income. Any subsequent adjustments of corporation taxes and withholding taxes may increase the Company’s liability. Including to group enterprises Guarantee obligations 0 0 3.137 2.953 Basis Controlling interest Teradyne Inc. Ultimate Parent Transactions The Company has chosen only to disclose transactions which have not been made on an arm’s length basis in accordance with section 98(c)(7) of the Danish Financial Statements Act. There have been no transactions with the Supervisory Board, the Executive Board, senior officers, significant shareholders, group enterprises or other related parties, except for intercompany transactions and normal management remuneration. The Company is included in the Group Annual Report of the Parent Company: Name Place of registered office Teradyne Inc. (største koncern udelad hvis samme som mindste) North Reading, MA, USA (mindste koncern) 408000 350000 408000 350000 0 22000 0 22000 16000 84000 16000 84000 276000 270000 0 0 0 111000 0 0 61000 0 0 0 No events materially affecting the assessment of the Annual Report have occurred after the balance sheet date. The Annual Report of Universal Robots A/S for 2022 has been prepared in accordance with the provisions of the Danish Financial Statements Act applying to large enterprises of reporting class C . The accounting policies applied remain unchanged from last year. The Consolidated and Parent Company Financial Statements for 2022 are presented in TDKK. 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 Teradyne Inc., the Company and the Group have not prepared a cash flow statement. 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. The Consolidated Financial Statements comprise the Parent Company, Universal Robots A/S, and subsidiaries in which the Parent Company directly or indirectly holds more than 50% of the votes or in which the Parent Company, through share ownership or otherwise, exercises control. Enterprises in which the Group holds between 20% and 50% of the votes and exercises significant influence but not control are classified as associates. On consolidation, items of a uniform nature are combined. Elimination is made of intercompany income and expenses, shareholdings, dividends and accounts as well as of realised and unrealised profits and losses on transactions between the consolidated enterprises. The Parent Company’s investments in the consolidated subsidiaries are set off against the Parent Company’s share of the net asset value of subsidiaries stated at the time of consolidation. Minority interests form part of the Group’s total equity. Upon distribution of net profit, net profit is broken down on the share attributable to minority interests and the share attributable to the shareholders of the Parent Company. Minority interests are recognised on the basis of a remeasurement of acquired assets and liabilities to fair value at the time of acquisition of subsidiaries. Business acquisitions carried through before 1 July 2018 Minority interests are recognised at the carrying amounts of the acquired assets and liabilities at the time of acquisition of subsidiaries. Business acquisitions carried through on or after 1 July 2018 Minority interests are initially measured at their proportionate share of the fair value of the acquired entity’s identifiable net assets. In this way, only goodwill related to the Parent Company’s share of the entity acquired is recognised. On subsequent changes to minority interests where the Group retains control of the subsidiary, the consideration is recognised directly in equity. Leases in terms of which the Group assumes substantially all the risks and rewards of ownership (finance leases) are recognised in the balance sheet at the lower of the fair value of the leased asset and the net present value of the lease payments computed by applying the interest rate implicit in the lease or an alternative borrowing rate as the discount rate. Assets acquired under finance leases are depreciated and written down for impairment under the same policy as determined for the other fixed assets of the Group. The remaining lease obligation is capitalised and recognised in the balance sheet under debt, and the interest element on the lease payments is charged over the lease term to the income statement. All other leases are considered operating leases. Payments made under operating leases are recognised in the income statement on a straight-line basis over the lease term. The company's total liabilities relating to operating leases and other rent agreements are disclosed under "contingent assets, liabilities and other financial obligations." 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. Information on geographical segments based on the Group's risks and returns and its internal financial reporting system. Geographical segments are regarded as the primary segments. The value of share-based payment, including share option and warrant plans that do not involve an outflow of cash and cash equivalents, offered to the Executive Board and a number of senior employees is not recognised in the income statement. The most significant conditions of the share option plans are disclosed in the notes. Cost of sales comprises costs incurred to achieve revenue for the year. Cost comprises raw materials, consumables, direct labour costs and indirect production costs such as maintenance and depreciation, etc, as well as operation, administration and management of factories. Distribution expenses comprise costs in the form of salaries to sales and distribution staff, advertising and marketing expenses as well as operation of motor vehicles, depreciation, etc. Amortisation of goodwill is also included to the extent that goodwill relates to distribution activities. Administrative expenses comprise expenses for Management, administrative staff, office expenses, depreciation, etc. Amortisation of goodwill is also included to the extent that goodwill relates to administrative activities. Other operating income and other operating expenses comprise items of a secondary nature to the main activities of the Group, including gains and losses on the sale of intangible assets and property, plant and equipment. Dividends from subsidiaries are recognised as income in the income statement when adopted at the General Meeting of the subsidiary. However, dividends relating to earnings in the subsidiary before it was acquired by the Parent Company are set off against the cost of the subsidiary. Financial income and expenses are recognised in the income statement at the amounts relating to the financial 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 profit for the year is recognised in the income statement, whereas the tax attributable to equity transactions is recognised directly in equity. The Company is jointly taxed with Danish group companies. The tax effect of the joint taxation is allocated to enterprises in proportion to their taxable incomes. Goodwill is amortised on a straight-line basis over the estimated useful life of 10 years. determined on the basis of Management’s experience with the individual business areas. Costs of development projects comprise salaries, amortisation and other expenses directly or indirectly attributable to the Company’s development activities. Development projects that are clearly defined and identifiable and in respect of which technical feasibility, sufficient resources and a potential future market or development opportunity in the Group can be demonstrated, and where it is the intention to manufacture, market or use the project, are recognised as intangible assets. This applies if sufficient certainty exists that the value in use of future earnings can cover cost of sales, distribution and administrative expenses involved as well as the development costs. Development projects that do not meet the criteria for recognition in the balance sheet are recognised as expenses in the income statement as incurred. Capitalised development costs are measured at cost less accumulated amortisation and impairment losses or at a lower recoverable amount. An amount corresponding to the recognised development costs is allocated to the equity item “Reserve for development costs”. The reserve comprises only development costs recognised in financial years beginning on or after 1 January 2016. The reserve is reduced by amortisation of and impairment losses on the development projects on a continuing basis. As of the date of completion, capitalised development costs are amortised on a straight-line basis over the period of the expected economic benefit from the development work. The amortisation period is 5 years. Patents and licences are measured at cost less accumulated amortisation and less any accumulated impairment losses or at a lower value in use. Patents are amortised over the remaining patent period or a shorter useful life. The amortisation period is 5 years. Software licences are amortised over the period of the agreement, which is 3 years. Property, plant and equipment are measured at cost less accumulated depreciation and less any accumulated impairment losses. Cost comprises the cost of acquisition and expenses directly related to the acquisition up until the time when the asset is ready for use. Depreciation based on cost reduced by any residual value is calculated on a straight-line basis over the expected useful lives of the assets, which are: Other fixtures and fittings, tools and equipment 2-10 years Leasehold improvements 2-10 years The fixed assets’ residual values are determined at nil. Depreciation period and residual value are reassessed annually. The carrying amounts of intangible assets and property, plant and equipment are reviewed on an annual basis to determine whether there is any indication of impairment other than that expressed by amortisation and depreciation. If so, the asset is written down to its lower recoverable amount. Investments in subsidiaries are measured at cost. Where cost exceeds the recoverable amount, write-down is made to this lower value. Other fixed asset investments consist of deposits and receivables that fall due after 1 year. 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 are recognised in the balance sheet at amortised cost, which substantially corresponds to nominal value. Provisions for estimated bad debts are made. Prepayments comprise prepaid expenses concerning rent, insurance premiums, subscriptions and interest. Dividend distribution proposed by Management for the year is disclosed as a separate equity item. Provisions are recognised when - in consequence of an event occurred before or on the balance sheet date - the Group has a legal or constructive obligation and it is probable that economic benefits must be given up to settle the obligation. Other provisions include warranty obligations in respect of repair work within the warranty period of up to 15 months. Provisions are measured and recognised based on experience with guarantee work. Deferred income tax is measured using the balance sheet liability method in respect of temporary differences arising between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes on the basis of the intended use of the asset and settlement of the liability, respectively. Deferred tax assets are measured at the value at which the asset is expected to be realised, either by elimination in tax on future earnings or by set-off against deferred tax liabilities within the same legal tax entity. Deferred tax is measured on the basis of the tax rules and tax rates that will be effective under the legislation at the balance sheet date when the deferred tax is expected to crystallise as current tax. Any changes in deferred tax due to changes to tax rates are recognised in the income statement or in equity if the deferred tax relates to items recognised in equity. Current tax liabilities and receivables are recognised in the balance sheet as the expected taxable income for the year adjusted for tax on taxable incomes for prior years and tax paid on account. Extra payments and repayment under the on-account taxation scheme are recognised in the income statement in financial income and expenses. Debts are measured at amortised cost, substantially corresponding to nominal value. Deferred income comprises payments received in respect of income in subsequent years. Development projects relating to the further development of the company's product portfolio. The majority of the projects in progress are expected to be finalized in the coming years and the projects are progressing as planned using the resources allocated by Management to the development. 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e:MinorityInterestsMember 29138060 2022-12-31 e:MinorityInterestsMember iso4217:DKK xbrli:pure Data ethics policy cf. section 99 d of the Danish Financial Statements Act Universal Robots A/S ensures data ethics, which includes addressing and recommending concepts of right and wrong conduct, with transparency in and defensibility of actions and decisions in relation to data in general and personal data. Universal Robots A/S as a part of the Teradyne’s Global Data Protection Program, ensures compliance with applicable data privacy laws, and gives individuals more overview over how their data is collected, used, and protected. Teradyne’s Global Data Protection Program includes the Privacy Policy, Data Classification Policy, Data Retention Policy, Data Security Incident Response Policy, Information Security Policy, and other internal processes and guidelines in place which details how we handle, classify and store data globally. In accordance with applicable laws and regulations, including GDPR, the EU Whistleblower Directive and Danish Whistleblower Act, Universal Robots has a few channels, including Whistleblower Hotline, for report data breach, illegal or unethical conduct, suspected violations, complaints, concerns, or misconduct, including violations of internal policies. The data ethics policy will be fully implemented in 2023.