xbrli:pureiso4217:DKK279853782021-01-012021-12-31279853782021-01-012021-12-311279853782021-01-012021-12-311279853782021-01-012021-12-311279853782021-01-012021-12-312279853782021-01-012021-12-313279853782021-01-012021-12-314279853782021-01-012021-12-312279853782021-01-012021-12-31279853782020-01-012020-12-31279853782021-01-012021-12-31fsa:RetainedEarningsMember279853782021-01-012021-12-31fsa:ProposedDividendRecognisedInEquityMember279853782021-01-012021-12-31fsa:ProposedDividendRecognisedInEquityMember279853782020-01-012020-12-31fsa:ProposedDividendRecognisedInEquityMember279853782021-01-012021-12-31fsa:RetainedEarningsMember279853782020-01-012020-12-31fsa:RetainedEarningsMember279853782021-12-31279853782020-12-31279853782021-01-01fsa:ContributedCapitalMember279853782021-01-01fsa:RetainedEarningsMember279853782021-01-01fsa:ProposedDividendRecognisedInEquityMember279853782021-01-01279853782021-12-31fsa:ContributedCapitalMember279853782021-12-31fsa:RetainedEarningsMember279853782021-12-31fsa:ProposedDividendRecognisedInEquityMember279853782021-01-012021-12-31fsa:BoardOfDirectorsMemberGrundlag for konklusionKonklusion2022-07-082022-07-08Regnskabsklasse C, mellemstor virksomhed2020-01-012020-12-31ViborgViborg8800Revisionspåtegning2021-12-312021-01-01<br /><br />37LivøvejNEXANS INDUSTRY SOLUTIONS A/S27985378339635562300 København SWeidekampsgade 6Deloitte Statsautoriseret RevisionspartnerselskabÅrsrapportPricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab
Herredsvej 327100 Vejle 33771231The Board of Directors and the Executive Board have today considered and approved the annual report of NEXANS INDUSTRY SOLUTIONS A/S for the financial year 01.01.2021 - 31.12.2021.The annual report is presented in accordance with the Danish Financial Statements Act.In our opinion, the financial statements give a true and fair view of the Entity’s financial position at 31.12.2021 and of the results of its operations for the financial year 01.01.2021 - 31.12.2021.We believe that the management commentary contains a fair review of the affairs and conditions referred to therein.We recommend the annual report for adoption at the Annual General Meeting.ViborgSerafim Serafimov OgnyanovSerafim Serafimov OgnyanovCarl Martin ForssellJean-Marc RETYThibaut René Georges ZumsteegcharimanTo the shareholders of NEXANS INDUSTRY SOLUTIONS A/SWe have audited the financial statements of NEXANS INDUSTRY SOLUTIONS A/S for the financial year 01.01.2021 - 31.12.2021, which comprise the 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 Entity’s financial position at 31.12.2021 and of the results of its operations for the financial year 01.01.2021 - 31.12.2021 in accordance
with the Danish Financial Statements Act.We conducted our audit in accordance with International Standards on Auditing (ISAs) and 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 this auditor’s
report. We are independent of the Entity 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 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 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 Entity’s ability to continue
as a going concern, for disclosing, as applicable, matters related to going concern, and for using the going
concern basis of accounting in preparing the financial statements unless Management either intends to liquidate
the Entity 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:<br />Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit 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.
<br />Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Entity’s internal control.
<br />Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by Management.
<br />Conclude on the appropriateness of Management’s use of the going concern basis of accounting in
preparing the financial statements, and, based on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that may cast significant doubt on the Entity’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
Entity to cease to continue as a going concern.
<br />Evaluate the overall presentation, structure and content of the financial statements, including the disclosures
in the notes, and whether the financial statements represent the underlying transactions and
events in a manner that gives a true and fair view.<br />We communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.Management is responsible for the management commentary.
Our opinion on the financial statements does not cover the management commentary, 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 the management
commentary and, in doing so, consider whether the management commentary is materially inconsistent with
the financial statements or our knowledge obtained in the audit or otherwise appears to be materially
misstated.
Moreover, it is our responsibility to consider whether the management commentary provides the information
required under the Danish Financial Statements Act.
<br />Based on the work we have performed, we conclude that the management commentary is in accordance with
the financial statements and has been prepared in accordance with the requirements of the Danish Financial
Statements Act. We did not identify any material misstatement of the management commentary.
TrekantområdetLars Almskou OhmeyerJette Leth Johansenmne24817mne47809State Authorised Public AccountantState Authorised Public AccountantFinancial highlights2021
DKK'0002020
DKK'0002019
DKK'0002018
DKK'0002017
DKK'000Key figuresGross profit/loss47,73466,47753,95869,62334,181Operating profit/loss13,27736,62118,82735,21311,881Net financials(258)(1,317)(1,649)35(30)Profit/loss for the year10,15527,61813,21527,3049,243Total assets167,077180,106132,242135,12437,739Investments in property,
plant and equipment1,0592,153682947365Equity117,318122,16394,54588,83030,779RatiosReturn on equity (%)8.4825.4914.4145.6632.81Equity ratio (%)70.2267.8371.4965.7481.56Financial highlights are defined and calculated in accordance with the current version of "Recommendations & Ratios" issued by the CFA Society Denmark.
By decision of 8 November 2018, the company merged retroactively with the sister company Nexans Denmark A/S with effect from 1 January 2018.
The Company’s management has chosen to use the book value method when preparing the financial statements for 2018, and no adjustment of the
comparative figures has thus been made.Return on equity (%)
:Profit/loss for the year * 100
Average equityEquity ratio (%)
:Equity * 100
Total assetsPrimary activitiesNexans Industry Solutions A/S is part of the global Nexans Group, whose head office is situated in Paris.
Nexans is one of the largest cable manufacturers in the world – with production in more than 30 countries
and commercial activities worldwide. Nexans employs about 25,000 people worldwide. Nexans is listed on
the Stock Exchange in Paris. Nexans Industry Solutions A/S mainly confects cables by request from the customers.
Development in activities and financesThe company’s operations during the current financial year, shows a profit of DKK 10,155k after tax, which is characterized as a satisfactory result.
Profit/loss for the year in relation to expected developmentsWind market in general is still trying to recover from Covid-19 impact. The recovery did not happen in 2021 and therefore the company had to conduct strict fixed cost controls to maintain the margins. Besides profit, working capital and cash landing at the end of 2021 were in line with expectations.
China market is impacted severely due to long lockdowns. The company will monitor the recovery in second semester.
OutlookAt the time when the financial statements for 2021 is approved by the board and filed to the authorities the world is facing the effects of the Covid-19 crisis, a global supply chain crisis, growing inflation rates and a war in Ukraine which all has a significant effect on the world market conditions under which the company operates. As a result of these markets conditions the Company expect periods with raw material shortages as well as a sharp increase in raw material prices in 2022.
Even under such difficult conditions, customer demands are expected to continue to be high throughout 2022 but the Company might face challenges in fully meeting the customer demands as a result of challenging supply chain conditions. The increase in raw material prices will most likely result in an increase in turnover and also increased cost of goods sold.
Also, it is uncertain how the market will adapt to the significant increase in sales prices caused by the increase in raw material, transport and energy prices etc. The customer demand will be there on the other hand, price is going to be a key indicator.
Based on the current available information the Company expects a positive result after tax for 2022, same level as in 2021.
Environmental performanceNexans Industry Solutions A/S has made a policy regarding environmental performance to keep focus and
reduce the environmental impact – primarily caused by consumption of electricity, heat and waste from
the production. The policy will contain targets to be able to measure the performance. Nexans Industry
Solutions A/S has obtained certification, according to DS/ ISO 9001, and environmental certification, according to DS/ISO 14001. Through these certifications we expect to obtain a strengthened position to meet new challenges and to be better prepared to face existing and future demands from our customers with regards to quality and environment.
Research and development activitiesResearch is mainly carried out by other companies in the Nexans Group, whereas development concerning
the company’s line of business is made internally.
Events after the balance sheet dateNo events have occurred after the balance sheet date to this date, which would influence the evaluation of this annual report.4773373566477473331197022917006713366176865291327741636620877969801810535500713350961301938935303886286426576854051015512427618481640512437500003750000150000006405124126184812180232290815320018802380420290815315609000156090005998406350511821607406191141182398782622022271450565485162411510817767935792468927947994706301354498271420515543629020469612251012495650700014520002587852595333294843095795010804848436272459185205514930214308958115808384516707740718010611636940003694000109874390103469266375000015000000117318390122163266369400010346926615000000122163266369400010987439037500001213756211956131195815192675721086200669106832941987010122677497590175794285049759017579428501670774071801061160-15000000-150000001 Staff costs2021
DKK2020
DKKWages and salaries29,265,95925,013,171Pension costs3,642,9723,680,533Other social security costs210,771476,36333,119,70229,170,067Average number of full-time employees6772Remuneration
of
Management2021
DKKBoard of Directors2,701,0052,701,0056772Remuneration
of
Management2021
DKKBoard of Directors2,701,0052,701,00527010052 Depreciation, amortisation and impairment losses2021
DKK2020
DKKDepreciation of property, plant and equipment1,210,617686,529Profit/loss from sale of intangible assets and property, plant and equipment126,00001,336,617686,5293 Tax on profit/loss for the year2021
DKK2020
DKKCurrent tax1,919,2658,937,832Change in deferred tax945,000(1,161,000)Adjustment concerning previous years0(91,427)2,864,2657,685,4054 Proposed distribution of profit and loss2021
DKK2020
DKKOrdinary dividend for the financial year3,750,00015,000,000Retained earnings 6,405,12412,618,481 10,155,12427,618,4815 Property, plant and equipmentPlant and machinery
DKKOther fixtures and fittings, tools and equipment
DKKCost beginning of year23,134,0622,760,222Additions743,002315,882Disposals(480,000)0Cost end of year23,397,0643,076,104Depreciation and impairment losses beginning of year(20,225,909)(2,760,222)Depreciation for the year(1,094,923)(115,694)Reversal regarding disposals104,0000Depreciation and impairment losses end of year(21,216,832)(2,875,916)Carrying amount end of year2,180,232200,1886 Financial assetsInvestments in group enterprises
DKKReceivables from group enterprises
DKKCost beginning of year15,698,0003,505,118Additions02,493,288Cost end of year15,698,0005,998,406Revaluations beginning of year(89,000)0Revaluations end of year(89,000)0Carrying amount end of year15,609,0005,998,406Investments in subsidiariesRegistered inCorporate formEquity
interest
%Equity
DKKProfit/loss
DKKNexans Industry Solutions Polandsp. z o.o.100(2,943,372)82,759Nexans Cable (Tianjin) Co.ChinaLtd10017,275,3482,090,787<br />Investments in group enterprises
DKKReceivables from group enterprises
DKKCost beginning of year15,698,0003,505,118Additions02,493,288Cost end of year15,698,0005,998,406Revaluations beginning of year(89,000)0Revaluations end of year(89,000)0Carrying amount end of year15,609,0005,998,4067 Deferred tax2021
DKK2020
DKKProperty, plant and equipment179,000119,000Inventories400,0001,401,000Receivables(72,000)(68,000)Deferred tax507,0001,452,000
Changes during the year2021
DKK2020
DKKBeginning of year1,452,000291,000Recognised in the income statement(945,000)1,161,000End of year507,0001,452,000Deferred tax assetsDeferred tax asset is related to property, plant and equipment and inventories, which is expected to equalize within a period of
three years.8 PrepaymentsPrepayments consist of prepaid expenses. 9 Unrecognised rental and lease commitments2021
DKK2020
DKKLiabilities under rental or lease agreements until maturity in total0332,28810 Related parties with controlling interestNexans Participations SA, Courbevoie, France owns all shares in the company and therefor has a controlling
interest.11 Transactions with related partiesTransactions with related parties, is only mentioned in the annual report if the transactions are not performed
at arm’s length. There is no such transaction in the financial year 2021.12 Group relationsName and registered office of the Parent preparing consolidated financial statements for the smallest group:
Nexans SA, Paris La Défense Cedex, France
Registration number: 393 525 852This annual report has been prepared in accordance with the provisions of the Danish Financial Statements Act governing reporting class C enterprises (medium).The accounting policies applied to these consolidated financial statements and parent financial statements are,
excepts internel reclassifcations, consistent with those applied last year.
Change of classification
The company has made some internal reclassifications between wages and salaries and other
social security costs in note 1. The total net effect on the comparative figures is a decrease in other social security costs of DKK 1.277 thousand. and an increase in the corresponding amount for wages and salaries.falseConsolidated financial statementsReferring to section 112 of the Danish Financial Statements Act, no consolidated financial statements have
been prepared.Recognition and measurementAssets are recognised in the balance sheet when it is probable as a result of a prior event that future economic
benefits will flow to the Entity, and the value of the asset can be measured reliably.
Liabilities are recognised in the balance sheet when the Entity has a legal or constructive obligation as a
result of a prior event, and it is probable that future economic benefits will flow out of the Entity, and the
value of the liability can be measured reliably.
On initial recognition, assets and liabilities are measured at cost. Measurement subsequent to initial
recognition is effected as described below for each financial statement item.
Anticipated risks and losses that arise before the time of presentation of the annual report and that confirm
or invalidate affairs and conditions existing at the balance sheet date are considered at recognition and
measurement.
Income is recognised in the income statement when earned, whereas costs are recognised by the amounts
attributable to this financial year.Foreign currency translationOn initial recognition, foreign currency transactions are translated applying the exchange rate at the transaction
date. Receivables, payables and other monetary items denominated in foreign currencies that have
not been settled at the balance sheet date are translated using the exchange rate at the balance sheet
date. Exchange differences that arise between the rate at the transaction date and the rate in effect at the
payment date, or the rate at the balance sheet date, are recognised in the income statement as financial
income or financial expenses.Gross profit or lossGross profit or loss comprises revenue, changes in inventories of finished goods and work in progress, own
work capitalised, other operating income, cost of raw materials and consumables and external expenses.RevenueRevenue from the sale of manufactured goods and goods for resale is recognised in the income statement
when delivery is made and risk has passed to the buyer. Revenue from the sale of services is recognised
in the income statement when delivery is made to the buyer. Revenue is recognised net of VAT, duties and
sales discounts and is measured at fair value of the consideration fixed.Cost of salesCost of sales comprises goods consumed in the financial year measured at cost, adjusted for ordinary
inventory writedowns.Other external expensesOther external expenses include expenses relating to the Entity’s ordinary activities, including expenses for
premises, stationery and office supplies, marketing costs, etc. This item also includes writedowns of
receivables recognised in current assets.Staff costsStaff costs comprise salaries and wages, and social security contributions, pension contributions, etc
for entity staff.Depreciation, amortisation and impairment lossesDepreciation, amortisation and impairment losses relating to property, plant and equipment comprise depreciation, amortisation and impairment losses for the financial year, and gains and
losses from the sale of intangible assets and property, plant and equipment.Other financial incomeOther financial income comprises dividends etc received on other investments, interest income, including
interest income on receivables from group enterprises, net capital or exchange gains on securities, payables
and transactions in foreign currencies, amortisation of financial assets as well as tax relief under the Danish
Tax Prepayment Scheme etc.Other financial expensesOther financial expenses comprise interest expenses, including interest expenses on payables to group enterprises,
net capital or exchange losses on securities, payables and transactions in foreign currencies, amortisation
of financial liabilities as well as tax surcharge under the Danish Tax Prepayment Scheme etc.Tax on profit/loss for the yearTax for the year, which consists of current tax for the year and changes in deferred tax, is recognised in the
income statement by the portion attributable to the profit for the year and recognised directly in equity by
the portion attributable to entries directly in equity.Property, plant and equipmentPlant and machinery, and other fixtures and fittings, tools and equipment are
measured at cost less accumulated depreciation and impairment losses.
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 into operation. For self-constructed assets, cost comprises
direct and indirect costs of materials, components, subsuppliers and labour costs. For assets held under
finance leases, cost is the lower of the asset’s fair value and present value of future lease payments.
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:Plant and machinery2-5 yearsEstimated useful lives and residual values are reassessed annually.
Items of property, plant and equipment are written down to the lower of recoverable amount and carrying
amount.Investments in group enterprisesInvestments in group enterprises are measured at cost. Investments are written down to the
lower of recoverable amount and carrying amount.ReceivablesReceivables are measured at amortised cost, usually equalling nominal value, less writedowns for bad and
doubtful debts.InventoriesInventories are measured at the lower of cost using the FIFO method and net realisable value.
Cost consists of purchase price plus delivery costs. Cost of manufactured goods and work in progress consists
of costs of raw materials, consumables, direct labour costs and indirect production costs.
Indirect production costs comprise indirect materials and labour costs, costs of maintenance of, depreciation
of and impairment losses relating to machinery, factory buildings and equipment used in the manufacturing
process, and costs of factory administration and management. Finance costs are not included in cost.
The net realisable value of inventories is calculated as the estimated selling price less completion costs and
costs incurred to execute sale.Deferred taxDeferred tax is recognised on all temporary differences between the carrying amount and the tax-based
value of assets and liabilities, for which the tax-based value is calculated based on the planned use of each
asset.
Deferred tax assets, including the tax base of tax loss carryforwards, are recognised in the balance sheet at
their estimated realisable value, either as a set-off against deferred tax liabilities or as net tax assets.PrepaymentsPrepayments comprise incurred costs relating to subsequent financial years. Prepayments are measured at
cost.CashCash comprises cash in hand and bank deposits.DividendDividend is recognised as a liability at the time of adoption at the general meeting. Proposed dividend for
the financial year is disclosed as a separate item in equity. Extraordinary dividend adopted in the financial
year is recognised directly in equity when distributed and disclosed as a separate item in Management's
proposal for distribution of profit/loss.Operating leasesLease payments on operating leases are recognised on a straight-line basis in the income statement over
the term of the lease.Other financial liabilitiesOther financial liabilities are measured at amortised cost, which usually corresponds to nominal value.Tax receivable or payableCurrent tax receivable or payable is recognised in the balance sheet, stated as tax computed on this year's
taxable income, adjusted for prepaid tax.Cash flow statementIn accordance with section 86.4 of the Danish Financial Statements Act, the company has not prepared a
cash flow statement.2022-07-08Jean-Marc Rety