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The full data:

 

Napatech A/S
Tøbaksvejen.23A, 1
SER
BEEN GEAR R

Erhvervsstyrelsen
05 maj. 2014

ger

ÅK napatech"”

Annual Report

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1405054EogSN76332

 

Contents

BEDE ESTATE

LET ets retort eks Te FL To] RENDE
Napatech Geographical Presence .

Board and Management presentation .…

Group Key Figures and Ratios

[BTS Tal a (55 To SERENE

Board of Directors' Report 2013

Shareholder information ……..

Statements i
Sims besgal staa VÆ Mars Tato Is Te gl =Tel EDEN
Independent Auditor's Reports …

Consolidated Financial Statements
Consolidated Income Statement... ArEN

Consolidated Statement of Comprehensive Income ..…
Consolidated Statement of Financial Position...

Consolidated Statement of Changes in Equity...
Consolidated Statement of Cash Flows.…
Notes to the Consolidated Statement ..

Parent Company Financial Statements
Parent Income Statement...

Parent Statement of Financial Position.
Parent Statement of Changes in Equity...
Parent Statement of Cash Flows .…

Editors
Napatech A/S
Tobaksvejen 23A

2860 Søborg

Graphic Design
Baseline Aps

 

 

 

Annual Report 2013 | 3

 

Napatech an Industry Leader.
in Accelerating Network Monitoring
and Security Applications

 

As network data volume and complexity grow, so do the
challenges of managing, securing and optimizing the networks
and data services we all rely on every day. Napatech customers
provide high performance solutions to solve these challenges
within industries like: Telecom Operators, Financial Services,
E-commerce and Media, Cloud and Data Center Services,
Infrastructure and Defense and Enterprise Management.

Napatech develops and markets advanced Network Adapters
for application acceleration. We sell our products to network
equipment manufacturers who in turn supply network solution
providers with tools that provide visibility into the performance
and operation of their networks, applications and data services.

Napatech product offerings secures our customers can build
affordable, high-performance network application solutions
using standard servers, We enable our customers to focus
on differentiating their software to enhance their solution
rather than developing proprietary hardware. Napatech's
product delivers guaranteed performance for even the most
demanding network applications.

As the leader in our market, we have excellent growth

opportunities as an increasing number of network applications
are designed utilizing the combination of standard servers
and Napatech advanced Network Adapters. Qur team of
specialists is committed to developing innovative new solutions
to meet the needs fueled by higher network speeds, data
growth and complexity.

Napatech delivers a wide range of advanced Network Adapters
and Accessories, with connectivity from 1 GbE to 40 GbE
network speeds and aggregated network data processing
capabilities of several 100 GbE.

Napatech continues to invest in new product development

to support our growth ambitions at both existing customers
and new customers in our core markets: Network Monitoring,
Network Security and Network Test 8 Measurement. During
2014 Napatech will start shipping next generation 10 GbE
products and the first generation of the 100 GbE advanced
Network Adapters.

Sound interesting?
Learn more about us at www.napatech.com

 

4 Annua! Report 2013 Napitecn Ceographieal ?resonce
EET

Napatech Geographical Presence

At Napatech we believe it is important to be close to our
customers, in order to deliver excellent support and sales
services locally. Therefore Napatech has established local
offices in all our key markets and new geographies that are
showing growth potential. Napatech's dual manufacturing
setup secures high quality, reliability and effective worldwide
supply to our customers.

Mountain View, CA, USA

å0o Paulo, Brazil

Headquarter North America offices Latin America office APAC offices
Søborg, Mountain View, Columbia, Andover, Såo Paulo, Tokyo, SeQul,
Denmark (DF ttiror este SST Maryland, USA Massachusetts, USA Brazil Japan South Korea

 

 

Board members and Management Team Annual Report 2013 | 5

 

  

 

 

(GX on … pr
ge) GG OG GO
Board of Directors Management Team
(DD Olav Stokke (5) Henrik Brill Jensen
Chairman CEO
GentleCap AS — Chairman / Owner (6) Erik Norup
TeleMagic Group AS — Chairman of the Board CMO
(Ge Gregers Kronborg (> Niels Hobolt
Board member CFO
TrustPilot A/S — Member of the Board (8) Flemming Andersen
Circal ApS - Chairman VP of Engineering
DVCA - Deputy chairman |.
Constantia Ejendom A/S (2) Peter Ekner
Gregers Kronborg ApS — Director VP of Product Management

(3) Bjørn Erik Reinseth

Board member

Foinco AS — CEO

Zentuvo AS — Chairman of the Board

Alliero Holding AS — Chairman of the Board
Norstat AS — Chairman of the Board

BNS Container — Member of the Board
Aspiro AB — Member of the Board

Cfengine AS — Member of the Board
Streaming Media AS — Member of the Board

Ga Richard Breiter
Board member

Acorn Projects ApS (Leikr)— Chairman of the Board
Sensorist ApS — Member of the Board

Ivisys ApS — Chairman of the Board

GreenGo Energy A/S, Board Member

Gasp Solar Aps, Board Member

Bookingabus.com ApS, Chairman of the Board

1405054EogSN76334

 

B | Annual Report 2013

 

Graup Key Figures and Aatios

 

Group Key Figures and Ratios

2011

 

 

 

2013 2012 2010 2009
Key Figures [DKK'000)
Bevenue 182,047 181,179 134,477 143,096 .. 96,303
Gross profit 130,501 128,584 90,543 93,613 56,142
EBITDA 29,364 39,510 17,253 27,003 5,727
"EBIT before exceptional items 7,998 18,289 1,308 17,201 (833)
Net finance income / (expense) 580 (1,007) 81 1,432 (2,062)
Profit / (loss) before tax 1,796 17,282 1,390 18,634 (2,895)
Profit / (loss) for the year (509) 12,501 421 13,812 (3,323)
Investments in intangible åssets 26,446 18,433 21,344 17,855 12,451
Investments in property, plant and equipment 4,649 3,389 5,019 2,937 1,177
Net working capital 8,776 7,233 14,393 777 4,057
Total assets 232,648 129,459 112,855 105,847 72,850
Equity 190,364 89,868 71,195 62,300 1,437
Cash flows from operating activities 23,538 49,267 6,828 31,117 17,719
Cash at theænd of year 122,223 30,105 7,519 8,740 6,764
Free cash flow (7,987) 27,372 (19,782) 10,051 4,891
Average number of employees 95 79 70 56 45
Financial Aeporting Batios (%)
Gross profit margin 741.7% 71.0% 67.3% 65,4% 58.3%
EBITDA margin 16.1% 218% 12.8% 18.9% 5.9%
Current ratio 461.9% 232.2% 120,4% 125,4% 103,1%
Return on equity -0.4% 15.5% 0,6% 43,3%  -461.8%
- Share-Related Ratios (DKK)
Basic EPS (0.14) 3.61 0.13 : 4.20 (1.01)
Diluted EPS (0.13) 3,51 0.12 411 (0.99)
Cash flow per share 6.02 13.85 1,99 9.25 5.29

 

 

 

Graup Key Figures and Ratios Annuat Report 2013 |
EET ER ERE EEN

Key Figure and Hatio Explanations and Definitions

The financial highlights and ratios are defined and calculated in accordance with the guidance
from the Danish Association af Financial Analysts regarding the calculation of financial highlights
als Ens in le halse else sees RIK STE DIN SMÅ

abe] Calculation formula Explanation
EEN EDEN
Gross profit margin Gross profit / The ratio represents the percentage of the revenue less
tsar e las] cost of goods sold to cover research and developent costs,
selling and distribution costs, administrative expenses,
depreciation and amortisation and finance costs.

EET EEN
EBITDA margin == Br WA IEEE eee rs Sae Te ets] [IB 2

Get)
EET ERE EEN

Current ratio (SET a sat ESTER PA URE EUR sea es 2 Re mas RET ae] 3] ae"
ESTERE ens ERE] SIS o ST ak nelse Tor anal BIN SER

EET EET EEN,

fatsunlal eter ETS RY faine dre sår al SKY: TA FA The ratio represents the Groups ability to generate return
Average equity x 100 to shareholders taking into account own capital base.

ERE EET

Operating cash flows SER SR Nu ser sne ale Es Tor INST PA The ratio represents the Groups ability ta generate cash
per share Average number of diluted shares flows from operating activities per the average number
of diluted shares.

EET EET ERE EDER

Calculation of the Groups basic and diluted earnings per share (EPS) are specified in Note 14
to the consolidated financial statements.

NE ede as See SEAN Elen ele svale las D ste] reen nale] eee aa sgl eke] esse
SSR ass sets Vs] sals eine lee aa eee ES DES ADESEDES alSRes Tale ITS STA NS RES Tae]
income tax receivable or payable are not part of the net working capital.

Cash flows from operating activities are profit or loss before tax added or deducted changes
in the net working capital, added or deducted changes in provisions and added the yearly
depreciation and amortisation.

 

 

8 Annual Report 2013

HET ss TUSE KEE are] US lee le era ASE
ÆGGET ERE

Gross Margin mi 40

200,00

150,000  ———

AKS 881818;

kst NR BI STUER

PDS LE 2910 2013 2009 BR LN; 2011 2012 2013

Depreciation
Adm nistration ard Amortisation
32,6% 21,4%

EA 0; 918]

FASKEL SID:
Research ang

(BI Tolelagts sie
FLS
Selling and
Distribution
SEA d

19,000 >

2012 2013

Åssets

BEES STETTIN
projects
FELT and palenls Property,
RER evne, 2 D) plart and
assets equpmert
3% 4%

Inventories
El

Trade

and other
recewvables
KÅL)

[BE: FT

and cash
equlvalents
53%

FANE) 2012 2013

 

 

Dear Sharehølder

Dear Reader

 

Annual Report 2013 | 89

 

2013 has been an exciting but also challenging year for
Napatech. Nevertheless, Napatech has achieved a number

of accomplishments during the last year, which has only been
possible due to the high dedication and commitment from
our employees throughout the organization.

We have during 2013 seen exciting new design wins with top
tier customers in our key markets around the world, which
is underlining the trust and confidence that our customers
have in our current solutions, support and future innovations.

We have throughout 2013 developed significant new products
and solutions that will enable our customers to be even better
positioned in their markets. We have in particular focused on
supporting the growing need for real time insight in telecom
networks where the explosion in mobile data is creating an
urgent need for service providers to analyze and understand
data traffic to secure profitability.

Of equal importance we see an increasing customer
requirement for guaranteed data security and information
protection, which is driving a demand for Napatech advanced
products to secure increased performance of our customers'
applications so they can stay one step ahead of the networks
they need to Manage or protect.

Napatech has established a subsidiary in Brazil during 2013,
as we see a great potential for Napatech products in South
America and in particular Brazil. Generally data usage and
network infrastructure are growing rapidly also fueled by
the need for IT infrastructure investments in conjunction
with the coming years' major sports events.

Napatech has received numerous awards in 2013 that confirm

that we are doing the right things, with high focus on helping
our customers solve their problems and delivering solutions

1405054EogSN76336

with a very high quality. The awards span from technical
recognition for new products and functionality to the
acknowledgement of Napatech as being an agile company
that delivers innovative products to the communications
industry.

Towards the end of 2013 we completed an IPO on Oslo stock
exchange and | am very proud of the confidence that many
national and international investors have shown Napatech
by investing in our company.

In 2014 we are planning to provide a number of new products
that will enable our customers to build even higher performance
solutions for the future. Qur next generation 4 port 10 Gigabit
PCI Express 3.0 product will enable our customers to
accelerate applications with up to 320 Gigabit per second
throughput in a standard Intel based server, As network
speeds increase to 100 Gigabit Ethernet, Napatech will provide
our customers with the first generation of our 100 Gigabit
advanced network adapters in 2014,

I strongly believe that we are very well positioned for capturing
future growth in our markets, by providing exceptional
solutions delivered by dedicated employees, and with that

in mind | look forward to an interesting and exciting 2014.

SEG s ra |
Former PAN Jinroies
Kind regards
Henrik Brill Jensen

CEO

 

10 ! Annual Report 2013

Board of Directors' Report

Board of Directors' Report 2013

 

Summary

Napatech develops and markets very advanced Network
Adapters for network data analysis and application off-loading.
Napatech sells its products to network equipment
manufacturers "NEMs”, who in turn supply network proprietors
with tools that provide visibility into the performance and
operation of their networks, applications and data services.

Napatech is a leading Original Equipment Manufacturer ("OEM”])
supplier of advanced Network Adapter hardware and software
with an installed base of more than 140,000 ports. Extensive
network data growth, increased security challenges, a growing
number of software applications and increasingly complex
transaction schemes all drive a very urgent need for network
visibility and analytic capabilities. Napatech's products deliver
guaranteed network insight that enables effective decision-
making by network proprietors.

Napatech has been a leading provider of advanced Network
Adapter hardware and software since 2003. The Company is
headquartered in Copenhagen, Denmark and has three offices
in the United States, one in Japan, one in Brazil, and one in Korea.

Subsidiaries

The US subsidiary has offices in Andover MA, Mountain View CA
and Colombia ML. The Parent Company has a branch office in
Seoul, Korea. The subsidiary in Japan has an office in Tokyo,
and the newly established subsidiary in Brazil has an office
in Såo Paulo.

Solutions

Napatech provides advanced Network Adapter products
containing both hardware and software to "NEMs”. These
NEMs in turn supply network proprietors with tools that
provide visibility into the performance and operation of
their networks, applications and data services.

The Napatech solution delivers guaranteed network insight
and is an integral part of the end product. The NEM's end
product consists of Napatech hardware and software, which
is integrated into a standard server from a third party and
then paired with the NEM's own software before delivery to
the network proprietors.

The NEMs can use Napatech's products to produce a broad
range of end solutions within monitoring, security, test and
measurement and optimization of the networks applications
and data services. The following figures outline the Company's
position in providing solutions for the network data visibility
market.

Financial development (2012 figures in brackets)

Net revenues in 2013 came in at DKK 182.0 million (DKK 181.2
million) representing a revenue growth of 0.5%. The Group
experienced headwind from the USD exchange rate and from a
softness in especially the North American market. The EBITDA
for 2013 was DKK 29.4 million (DKK 39.5 million), and the loss
for the year was DKK 0.5 million (profit DKK 12.5 million).

The Group's equity at the end of the year was DKK 190.4 million
(DKK 89.9 million). The increase was primarily due to the issue
of 2 million new shares in connection with the Company's IPO
and the issue of 280 thousand new shares in connection with
exercise of warrants, and an additional 9 thousand new shares
in connection with employees' exercise of warrants prior to
the IPO.

The Group has in-house development resources developing
new products and new functionality (features). The group
also engages external consultants for specific development
projects. Development costs are capitalized in compliance with
IFRS..DKK 25.2 million was capitalized in 2013 (DKK 16.8 million).

The Group had a positive cash flow of DKK 92.2 million

(DKK 22.6 million) after consummation of its IPO. Total cash
balance was DKK 122 million at the end of the year. The revenue
and EBITDA level are below the level management expected
at the beginning of the year, but in line with the expectations
expressed in connection with the Q3 reporting.

The Group has prepared its Financial Statements in accordance
with the International Financial Reporting Standards (IFAS),
as adopted by the EU.

Financial development in the Parent Company

Net revenues for the Parent Company in 2013 came in at
DKK 156.0 million (DKK 157,1 million) representing a revenue
decline of 0.7%. The EBITDA in the Parent Company for 2013
was DKK 28.6 million (DKK 38.9 million) and the profit for
the year was DKK 0 million (DKK 12.5 million).

 

1405054EogSN76337

 

 

Annual Report 2013 | 11

 

Development activities and knowledge

The Company has historically had high focus on development
of both new products and new functionality both for existing
markets and new markets, In 2013 there was a high focus on
developing the next generations' 4 port 10 gigabit adapter
and our first generation 100 gigabit adapter, Napatech
underlines its technology leadership by providing new and
innovative products such as the 100 gigabit adapter for
analysis purposes.

Napatech spend a significant part of its development activity
during the year targeting solutions for the growing mobile
market. The development team is organized in smaller cross-
functional teams to secure optimal information sharing and
agile product development. In addition, there is extensive
use of IT tools that support the sharing of knowledge. All
development activities are done in the Parent Company,

at one location in Denmark, which ensures a high degree

of collaboration, focus and operational excellence.

Special events during 2013

Napatech completed an IPO in December and issued 2 million
new shares. This increased the equity by DKK 102 million.

In connection with the IPO, 280 thousand warrants were
exercised, increasing equity by an additional DKK 10 million.
Total IPO costs amounted to DKK 18 million, of which DKK 1.8
million was non-cash sharebased payments and DKK 5 million
IPO cost booked in the P8L, The remaining approximately
DKK 11 million of IPO cost was entered in equity.

Dividend
The Company has until now not distributed any dividends,
and does not expect to dø so in the near future.

Corporate Governance

The Company's Board of Directors recognizes the importance
of good corporate governance. This is ensured through
interaction between shareholders, the Board of Directors
and the administration. Napatech's goal is that all interested
parties are confident that the Group's activities are carried
on in an acceptable way and that governing bodies have
sufficient insight and influence to undertake their functions.

The communication between the Company and shareholders
primarily takes place at the company's annual general meeting,
quarterly financial reporting and via company announcements.
The Company shareholders are encouraged to subscribe to
our investor relation e-mail service to receive Company
announcements as well as other news via e-mail.

Guidelines on Corporate Governance are approved annually
by the Board of Directors in connection with the approval

of the Financial Statements or when deemed necessary.

The guidelines are based on the Norwegian Code of Practice
for Corporate Governance, last revised on October 23rd, 2012,
and using the "follow or explain principle”. The Company follows
all the 14 recommendations, but the recommendation regarding
Nomination Committee will be established during 2014. -

The Board of Directors has established two committees within
the Board; The Remuneration Committee and the Audit
Committee, of which all are sub-committees of the Board
(the Board committees report to the Board of Directors) and
operates according to the established internal procedures
for each Committee decided by the Board of Directors.

The Remuneration Committee is composed of two members
of the Board of the Directors and the CEO of the Company.
Chairman Olav Stokke is the chairman of the Remuneration
Committee and Bjørn Erik Reinseth is member of the
Committee. The Remuneration Committee handles the
Company's remuneration policy and programs, including
bonus programs and share-based schemes, and presents
recommendations to the Board of Directors for decision
according to its meeting protocols and underlying material
prepared. The Committee annually evaluates the CEO's
remuneration and presents recommendations to the Board
of Directors for decision, The Company's remuneration policy
is subject to approval by the annual general meeting annually
(first time at the annual general meeting in 2014).

The Audit Committee is composed of three members of the
Board. Chairman Olav Stokke is the chairman of the Committee,
Gregers Kronborg and Bjørn Erik Reinseth are further members
of the Audit Committee. This Committee supports the Board
of Directors in fulfilling its responsibilities with respect to
financial reporting, auditing matters, internal control, and
risk matters.

 

12 | Annual Report 2013

The Company's Board of Directors shall have a diverse
composition and competence tailored to meet the Company's
needs. None of the Board members are employees of the
Company and the Board of Directors' work complies with the
Company's internal instructions, guidelines and procedures
for the Board members. The Board has also carried out a
self-assessment of its own activities and competence.

The Board of Directors held 13 Board meetings in 2013, where
a larger portion was in conjunction whit the IPO preparations.

The Guidelines inc!. the annual corporate governance status
can be found on the Company's investor relations website,
at www.napatech.com/investor.

Risks

The Group is due to its normal course of business exposed
to a number of risk factors. The Group operates in a technology
market that could change the needs for the solutions that
the Group provides. The customers are mainly large tier one
customers, with normal credit terms. The Group is not
significantly exposed towards credit risks, but as some
customers are large, the outstanding amounts can potentially
be substantial.

The Group is exposed to operational risks, as the Group depends
on suppliers to deliver both components and the finished
products necessary to recognize revenue. The Group's growth
partly depends on the delivery and adoption of new products
and functionalities by the market.

Risk management and internal control

The risk management relating to the Group's financial
performance is controlled by the Group's CFO. The Board of
Directors receives monthly financial reports from the finance
department, including financial and operational key performance
indicators. The Company approves and presents quarterly
reports to the market in accordance with IAS 34. Financial
reports are prepared and issued by the finance department,
and the financial responsibility for quality assurance of the
financial reports lies with the CFO. The Group has, under
careful consideration of its limited size, set up procedures
to secure the best possible segregation of duties.

 

 

Board of Direstors' Report

Corporate Social Responsibility

Companies in the Group do not generate higher levels of direct
pollution or emissions than those that are normal for a company
in the industry. The working environment is considered to be
good, and the general wellbeing in the work place is good;

the Group has low employee turnover and a low degree of
absence due to illness. The Group has not adopted any further
specific policies regarding Corporate Social Responsibilities
including policies for human rights and environmental impact.

The Groups" 100 fulltime employees by December 30th 2013
include 13 women (13%). The Group primarily employs engineers,
and as women are underrepresented among engineers,

it is considered a natural consequence that women are
underrepresented in the Group. There are no women in
management positions, and the Board of Directors consists
of men only. The Board of Directors has a long-term goal

to have at least 20% women on the Board, within the next

4 years, and to increase the presence of women throughout
the organisation.

The Group has a diversification strategy and has, in the Danish
headquarter, employed 11 different nationalities. Salaries,
positions and duties are determined on the basis of
aualifications and experience.

Legal matters
There are currently no legal proceedings which involve any
company in the Napatech Group.

Events after year-end
There are no material events after the year-end and until
this date.

Outlook

The Group revenue is primarily exposed to large investments
in network infrastructure in both the telecom industry and
the financial industry. Both areas show a cyclic behaviour.
However, the Group expects growth in revenue and EBITDA in
2014 compared to 2013. The Company has given guidance for
2014 where revenue is expected to increase by 17% to 23%
and the EBITDA margin is expected to be in the region of 18%
to 23%. This is under the expectation of a USD exchange
rate towards Danish Kroner at the same level as in 2013.

 

Shareholder information

Annual Report 2013 | 13

Shareholder Information

 

At the end of the year, the company had a total of 5,811,948
shares outstanding of a nominal value of DKK 1.00. Each share
of DKK 1.00 carries one vote. The Company owned 2,700
treasury shares at year end. The Company had 466 shareholders
and 57% of the shares were registered outside Norway, Total
outstanding warrants at the end of the year were 420,892
warrants with an average exercise price of DKK 32.00.

Napatech has one class of shares, and no restriction on the
trading in the company's shares, besides the Lockup agreement
that main shareholders and management have entered into
in connection with the IPO.

Board members are elected for one year at the time.
A nomination committee will be established during 2014,
with the purpose to suggest board members for election.

The Articles of Association can be changed at the General
meeting if adopted by a qualified majority (75%) of the votes.

There is an authorization to issue additional 4,500,000
shares, whereof 2,000,000 shares were issued in connection
with the IPO, the authorization expires on 31 March 2014.

There is no change of control clauses in any employee
contract, or other material contracts.

1405054EogSN76338

The Group has a policy of continuously keeping shareholders,
employees and other stakeholders updated on the Group's
operations. This is achieved via open quarterly presentations
and regular updates of the investor relations page on
www.napatech.com

Napatech is a Danish company registered in the Danish
Company Register under 10109124, The ISIN number is
DK0060520450, and trades on Oslo Stock Exchange under
the Ticker NAPA.

During 2013 several notifications have been issued on Oslo
Stock market under the ticker NAPA.

The companys financial calendar for the remainder of 2014 is:

 

Activity Date Venue
Annual general meeting 29 April 2014 Oslo
Q1 2014 report 20 May 2014 Oslo
Capital Market Day 12 June 2014 Søborg
Q2 2014 report 26 August 2014 Oslo

Q3 2014 report 18 November 2014 Oslo

 

Please see Napatech.com/investor for updates.

 

FE Annual Report 2013 Smarehc der nformation

EGET EEN ENEENENNNEEN

Share Development

FSOEDRDDFERSONRKEESTESSR ERE SGRSRSESS RDNS KEDEDE DODOS SKEER ER OKDEDRERR RER ER KEDE SEERE SEEDEDE

6 december 2013 30 December 2013

Napatech had by the end of 2013 the following top 20 shareholders

ere ere GIPS MR Erde LEM la keel ale M le AR IN SR melse EN sI=lels ale as le else se ale sEs RS lats la=
lending agreement with a total of 360.000 shares, therefore the Northzone holdings below
excludes the 360.000 shares.

Napatech, as a Danish company, cannot publicise private investors holding shares in Napatech.
This is why shareholder 19 has been anonymized.

Shareholder Shareholding Ca Tess

mal BESS 1,893,211 ÆG LG]
Northzone Iv K/S 918,875 15.8%
Skandinaviska Enskilda Banken AB lSyME: 8:0] 6.6%
ABG Sundal Collier Norge ASA js rs Es 6.1%
State Street Bank & Trust Company LN 8180] PA
Skandinaviska Enskilda Banken A/S 262,000 Flat
Danske Bank A/S FEM ets rl BA)
SIX SIS AG 228,974 SMS 0
J.P, Morgan Chase Bank N.A. London 228,486 GR
SEB Private Bank S.A (Extended) 207,000 3.6%
MVTU rep. ved DTU Symbion Innovation A/S 118,652 AB]
DTU Invest rep. ved Seed Management 118,600 2.0%
NorthZea Management LLC 86,231 1.5%
Portia AS 70,000 1.2%
Treschow-Fritzøe AS 65,000 ii]
Deutsche WertpapierService Bank AG 60,000 1.0%
AKA AS 40,000 BæE(
Nordea Bank Danmark A/S 37,990 Sr
Private Investor 37,000 0.6%
Bank Julius Bår 8 Co. AG 35,000 0 6%

Total 20 largest shareholders 5,047,127
Total other 446 shareholders 764,821

Total 5,811,948 100.0%

 

 

 

 

Søborg, April 1,2014".

Executive Managemen

Ph Jean

Jensen, obl t Executive Officer

Board of Directors.

" BjørhErik Reinseths ;

 

ls Annual Report 2013 japendent Auditor's Reports

GWEN EEN

Independent Auditor's Reports

To the Shareholders of Napatech A/S

 

Report on the consolidated financial statements and the parent company financial statements

We have audited the consalidated financial statements and the paårent:company financial statemnents
of Napatech A/S for the financial year 1 January 2013 — 31 December 2013, which comprise an income
statement, statement of comprehensive income, statement of financial position, statement of changes
in equity, statement of cash flow and notes, including a summary of significant accounting policies for
the group as well as the parent company. The consolidated financial statements and the parent company
financial statements are prepared in accordance with International Financial Reporting Standards as
adopted by the EU and Danish disclosure requirements for listed companies. '

Management's responsibility for the consolidated financial statements

and the parent company financial statements '

Management is responsible for the preparation of consolidated financial statements and the parent

company financial statements that give a true and fair view in accordance with International Financial
Reporting Standards as adopted by the EU-and Danish disclosure requirements for listed companies.

Further, management is responsible for such internal control as it determines is necessary to enable

the preparation af consolidated financial statements and parent company financial statements that

are free from material misstatement, whether due to fraud or error. ”

Auditor's responsibility

Our responsibility is to express an apinion on the consolidated financial statements and the parent
company financial statements based on our audit. We conducted our audit in accordance with international
standards on auditing and additional requirements agcording to Danish audit regulations. This requires
that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance
about whether the consolidated financial statements and the parent company financial statements
are free from material misstatement.

An audit involves performing procedures to abtain audit evidence about the amounts and disclosures
in the consolidated financial statements and the parent company financial statements. The procedures
selected depend on the auditor's judgement, including an assessment øf the risks of material misstatement
of the consolidated financial statements and the parent company financial statements, whether due
to fraud or error. In making those risk assessments, the auditor considers internal control relevant to
the entity's preparation of consolidated financial statements and parent company financial statements
that give a true and fair view. The purpose is to design audit procedures that are appropriate in the
circumstances, but not to express an opinion on the effectiveness of the entity's internal control,

An audit also includes evaluating the appropriateness of accounting policies used, the réasonableness
of accounting estimates måde by management as well as the overall presentation of the consolidated
financial statements and Ehe parent company financial statements,

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.

Our audit has not resulted in any qualificatian.

 

 

 

 

c State Authorised Public Accodntant State Authorised Public Accountant

 

 

 

 

18 | Annual Report 2013

Consolidated Income Statement

for the year ended 31 December 2013

. Consolidated Financial Staternents

 

Note in DKK "000 2013 2012
4 Revenue 182,047 181,179
Cost of goods sold (51,546) (52,598)
Grass profit 130,501 128,581
5,6 Research and development costs (15,847) (21,642)
5 Selling and distribution expenses (52,695) (45,847)
5,7,8. Administrative expenses (32,605) (21,582)
Operating profit before depreciation and amortisation (EBITDA) 29,354 39,510
gs. Depreciation and amortisåtion (21,356) (21,221)
Operating profit before exceptional items (EBIT before exceptional items) 7,998 18,289
10 Exceptional items (6,782) -
Operating profit (EBIT) 1,216 18,289
11 Finance income 3,184 1
12 Finance costs (2,604) (1,008)
Profit beføre tax 1,796 17,982 .
13 Income tax expense (2,305) (4,781)
Profit / (loss) for the year (509) 12,501
14 Earnings / (loss) per share:
Basic, DKK (0.14) 3.61 -
Diluted, DKK (0.13) 3.51

 

 

 

 

 

 

 

Consolidated Financial Støtemønts

 

IDKK/000 :

 

 

.Pr > a fit t/ (loss) for the year, |

 

 

 

1140505480g

 

20 | Annual Report 2013

Consolidated Statement of Financial Position

as at 31 December 2013
Assets

 

Consolidated Financial Steteaments

 

 

 

Note In DKK 7000 2013 2012
Development projects, completed 29,780 33,596
Development projects, in progress 17,370 7,120
Patents 4,709 3,746.

16 Intangible assets 51,859 44,462
Plant and equipment 7,034 6,189
Leasehold improvements 1,836 1,104

17 Property, plant and equipment 8,870 7,293

18… Deferred tax asset 4,324 " 5,388

Pe Leasehold deposits 1,669 1,239
Other non-current assets 5,993 6,627
Non-current assets 66,722 58,382

19 Inventories 7,922 3,859

20,22 Tråde receivables 32,066 26,697

20, 22. - Other receivables 3,715 3,416

Pe Cash and cash equivalents 122,223 30,105
Current assets 165,926 64,077
Total assets 232,848 192,459

 

 

1405054 og8N76342

Consolidated Finaricial Statemients

on af 31 1Decemberi2 2018:
"Equity and Liabilities

 

KK'000. -

” "Anfdel Réport 2013 1 Bb

 

 

6 Share premium>
Foreign currency tre

5,812
201,180
(4,089)
25,514
(38,053)

190,364

 

3523"

1093364”

 

 

Provisions"”

Current liabilities

6,365
6,365
473
23,010
11,917
519
35,919

42,284

 

quity and labilities 22

232,648

 

 

 

 

 

ge | Annual Report 2013

Curisolidated Firiancid] Statemerits

 

Consolidated Statement of Changes in Equity

for the year ended 31 December 2013

 

 

 

Note — In DKK"000
Foreign
currency Other Åccumu-
Share Share translation capital lated Total
capital premium reserve reserves lasses equity
At 1 January 2012 3,426 99,836 931 17,046 (50,045) 71,194
Profit for the period - - - - 12,501 12,501
Other comprehensive income - - (159) - - (159)
Total comprehensive income - - (159) - 12,501 12,342
Issue of shares 97 3,528 = - « 3,625
7 Share-based payments - - - 2,707 - 2,707
At 31 December 2012 3,523 103,364 772 19,753 (37,544) B9,868
Loss for the period - - - - (509) (509)
Other comprehensive income - - (4,861) - - (4,861)
Total comprehensive income - - (4,861) - (509) (5,370)
Issue of shares 2,289 109,377 - - - 111666
Transactian costs - (11,561) - - - (11,561)
7,10 Share-based payments - - - 5,761 - 5,761
At 31 December 2013 5,812 201,180 (4,089) 25,514 (38,053) 190,364

 

 

 

 

Consolidated Financial Statements SER mk munk Be annual Report 20rde4. 28 7

 

 

g ng trade:and otherreceivables | sy
: ei in trade nd other bayables ånd Provis :

 

' Income tax paid

 

"Net cash flows from opérating activities |

vesting activities, i ' NE Du : .

Urchase of plant; property and qlinmen! mg " (4,649)
vestments i in intangible'assets ln ab i … (26,446)
) E rn (430)

(31,525)

 

111,666
(11,561)

100,105

 

92,118

30,105

122,823

 

 

24 | Annual Report 2013 ' ' cv ERR : Corisolidated Firancid) Statements

 

 

Notes to the Consolidated Financial Statements

Notel — Corporate information

 

The consolidated financial statements of Napatech A/S and its subsidiaries (collectively,
the Group) for the year ended were authorised for issue in accordance with the resolution
of the management on 1 April! 2014,

Note2 — Significant accounting policies

 

General '

The financial statements have been prepared in accordance International Financial Reporting
Standards (IFRS), as adopted by the EU, and additional. Danish.disclosure requirements for
listed companies.

The consolidated financial statements are prepared on a historical cost basis, except for
derivative financial instruments, which are measured at fair value.

In 2013 the presentation of the income statement has been changed in'order tø enhance reporting
of the Group's operations. Research and development costs are no longer presented as part of
gross profit and depreciation and amortisation are not part of the research and development
costs. Depreciation and amortisation are presented seperately. Comparison figures have been
changed retrospectively. The changed presentation has no impact on reported profit or loss.
New subtotals regarding operating profit or loss before and after depreciation and amortisation
have been introduced to reflect the enhanced reporting of the Graup's income statement.

The consolidated financial statements are presented in thousand Danish kroner. Thé Group's
entities primarily use USD as functional currency. This means that the parent company's functional
currency differs from its presentation currency as a result of its connection to Denmark,

With the exception of the amendments to standards and basis for conclusions enumerated
below, and the changes in presentation of the incomé statement, the accounting policies are
consistent with those of last year.

Effect of implementation of new and revised standards

During the financial year, the group implemented all new IFRS standards, amendments to existing
standards and basis for conclusions that have been approved by the EU and entered into effect
in 2013, The standards and amrmendments to existing standards which are relevant to the Group
and which affected the consolidated financial statements for 2013 are enumerated below:

+ Améndment to IAS 1, Presentation of Financial Statements. The amendment entails changes
to the statement of comprehensive income. Going forward, other comprehensive income must
be divided into other comprehensive income to be reclassified to the income statement in a
later reporting year and other comprehensive income that is not subsequently to be reclassified
to the ingcome statement, The change has merely caused a different presentation of other
comprehensive income, affecting neither the income statement nor the statement of financial
position. (Approved by the EU, effective for reporting years starting on 1 July 2012 or later);

- |FAS 13, Fair Value Measurement. The standard captures the provisions on determination of
fair value included in a number of different standards and clarifies the diselosure requirements
regarding assets and liabilities measured at fair value, While the implementation of the new
standard has given rise to additional information in the financial statements, it has not
impacted the determination of fair value and has therefore not affected the income statement
or the statement of financial position. (Approved by the EU, effective for reporting years
starting on 1 January 2013 or later).

 

 

  
 

Consolidated Financial Statements

 

       
  

 

" Notes tothe Consolidated Finericial Statements

 

  
  
  
 

 

instruments but may change the classification of individual instruments. (Not apprøyed bye
the, EU, effective date to be decided) i

     

 

” the Group expects to implement the a ove standard upon its coming into orce, .

  

ber of new standards, amendments to: existing stå

ceases, s. The Financial statements of the subsidiary are: prepared for the. ;same ne period.«
consistent accounting policies. The consolidated

 

translåtioni is:srecognised in the income stitemient | ås financial income of "financial bxpenses.
Non- m netary assets and ljabilities measured i in terms of. historical costin a foreign currency.

 

   

1405054E0gSN76344…

 

 

26 | Annual Report 2013 Consolidated Financial Stataments

 

Notes to the Consolidated Financial Statements

Note2z — Significant accounting policles (continued)

 

Translation of group entities .

On recognition in the consolidated financial statements of foreign entities with a functional currency
different from the parent company's presentation currency (DKK), the income statement and the
statement of cash flows are translated at the exchange rates at the transaction date, while the
statement of financial position items are translated at the exchange rates at the reporting date.
Any foreign exchange. differences arising on the translation are recognised as other comprehensive
income in a separate reserve. On full or partial disposal of a foreign entity, the share of the
currency reserve relating to that particular foreign entity is recognised in the income statement,

On translation from the functional currency to the Group's presentation currency, assets and
liabilities are recognised at the exchange rates at the reporting date, while income and expenses
are recognised at the exchange rates at the transaction date. The total exchange difference is
recognised in other comprehensive income.

Revenue

Revenue from the sale of goods is recøgnised in the income statement when the significant risks
and rewards of ownership of the goods have passed to the buyer, usually on delivery of the goods.
Revenue is recognised to the extent that it is probable that future economic benefits will flow
to the group and the revenue can be reliably measured.

Revenueis measured at the fair value of the consideratian received, excluding rebates and VAT.

Cost of goods sold
Cost of goods sold is incurred to generate the period's revenue. Cost of goods sold comprises
costs relating to purchases of products that are to be resold.

Research and development costs

Development costs include costs incurred to develop new products, including amortisation
of capitalised development projects, depreciation of development equipment and the share
of the year's development costs that is not capitalised.

Selling and distribution expenses

Selling and distribution expenses include costs related to the distribution of goods sold, sales
campaigns, wages to sales and distribution staff, cars, advertising and exhibitions and
depreciation and impairment af distribution equipment.

Administrative expenses

Administrative expenses comprise expenses relating to management and administration of
the Group, including sxpenses related to administrative staff, offices and office expenses
ånd impaåirment of receivables.

Exceptional items
Exceptional items comprise material non-reccuring expenses, These items are presented
separately because they are treated as one-off ogcurrence.

 

 

   
 

Consolidated Finaricial Statements

 

 

   

” For all financiel instruments measured at å orti
i gnised using ie effective interest rate.

  
     
 

theasured
d using the, så,

    
 

changåd.…

 

28 | Annual Beport 2013 ' ' Consuldated Financial Statemerts

 

Notes to the Consolidated Financial Statements

Note2 — Significant accounting policies (continued)

 

Derivative financial instruments

At the trade date, derivative financial instruments are recognised in the statement of financial
position at fair value and are subsequently measured at fair value, Transaction costs are
recognised in the income statement, The fair value of derivative financial instruments is included
in'Other receivables' or "Other payables'. The fair value of derivative financial instruments is
determined on the basis of current market data and generally accepted valuation methods.

The Group hedges currency risks by using forward exchange contracts but does not designate
forward exchange transactions as hedging instruments. Accordingly, fair value adjustments of
forward exchange transactions are recognised in the income statement as financial income or
financial expenses. '

Intangible assets .

Intangible assets are initially recognised in the statement of financial position at cost.
Subseaquent to initial recognition, intangible assets are carried at cost less accumulated
amortisation and impairment losses. ' '

Intangible assets comprise development projects and patents with finite useful lives,

Intangible assets with finite useful lives are amortised over their economic lives and tested
for impairment whenever there is an indication that an asset might be impaired. Useful lives
are reassessed on an annual basis. Changes in expected useful lives are accounted for as
changes in accounting estimates. Amortisation and impairment losses are recognised in
the income statement as production or development costs. '

Gains and losses on disposal of intangible assets are determined by comparing the proceeds
from disposal with the carrying amount of the asset and are recognised in the income statement.

Research and development costs

Research costs are recognised in the income statement as incurred. Development costs incurred
for individual projects are recognised as an intangible asset when the Group can demonstrate
the following:

« The technical feasibility of completing the development project so that it will be available
for use or sale;

+ The intention to complete the development project and the group's ability to use or sell it;

The probability that the development project will generate future economic benefits;

The availability of adequate technical, financial and other resources to complete the

development project and to use or sell it; and

The ability to measure the costs reliably.

Subsequent to initial recognition of the development costs as an intangible asset, the development
prøject is recognised at cost less any accumulated amortisation and impairment losses.
Amortisation of the intangible asset begins when the development of the asset has been
completed and the asset is used as planned. The expected useful life of development projects
is three years. '

Patents

Patents are recognised as intangible assets at the time of acquisition. Patents are amortised
over their useful lives, starting at the time when the patent takes effect. The useful life of
patents is'estimated at 10 years.

 

 

Consolidated Fihancial Statements

| … Note 2 Stgrtficent accoun ing poligles (co

Antal Report 2013

 

Property, plant and ener,
3years |

Leasehold improvements, 7, Byears |

: ereof. Financial liabilities i
"medsured at amortised ( cos

fasset. The recoverable

Sonnes: constituting an Integrated”

 

 

 

30 | Annual Report 2013 u ' Corisolidated Financial Statøments

Notes to the Consolidated Financial Statements

Nøtez — Significant accounting policies (continued)

 

Receivables
Receivables are measured at amortised cost less impairment losses. Where receivables are
found to be impaired, their carrying amount is reduced to the estimated net realisable value,

Impairment losses are recognised in the income statement under administrative expenses.

Inventories
Inventories are measured at the lower of cost and net realisable value. The cøst is determined
using the first-in/first-out (FIFO) method.

The cost of goods for resale, raw materials and consumables comprises the purchase price plus
delivery costs. The Group uses sub-suppliers for the primary production of goods for resale.

The net realisable value of inventories is determined as the selling price less costs of completion
and costs incurred to generate the revenue, taking into account marketability, obsolescence and
developments in the expected selling price. '

Equity

Share premium

Share premium is the value in excess of the nominal value of the shares that is contributed
to the company upon formation or a capital.increase. The Share premium is part of the
distributable reserves. '

Other reserves

The value of share options granted is recognised in equity under other reserves over the vesting
period as the employees deliver the relevant services, The reserve reflects the total value of
share options granted based on the share of the vesting period that hås lapsed and the group's
best estimate of the number of equity instruments that will ultimately vest. The reserve is part
of'the distributable'reserves. '

Foreign currency translation reserve

The foreign currency translation reserve comprises exchange differsfices arising upan translation
of the financial statements of foreign operations from their functional currency to the parent
cømpany's presentation currency (DKK). The reserve also includes exchange differences arising
upon translation of the financial statements of the pårent company from its functional currency
(USD) to the presentation currency (DKK).

Upon full or partial realisation of the investment in the foreign operation, foreign exchange
adjustments are recognised in the income statement in the same item as the gain/loss from
the sale. The reserve is part of the distributable reserves.

Financial liabilities

Amounts owed to banks etc. are recognised at the date of borrowing at the amount of proceeds
received net of transaction costs paid. In subsequent periods, the financial liabilities are measured
at amortised cost using the effective interest method. Accordingly, the difference between

the proceeds and the nominal value is recognised in financial expenses over the term of the loan.

Other liabilities are measured at amortised cost,

 

 

 

    
 
      

Consolidated Financial Stabémønts

 

Ånpuål Report 2013 | 34 5

Notes to he Consolidated Financial Statements

Note 2. Significant acco ting policles (continué

  

 

' Provisions

    

    

the meme

  

ntity, and thes same taxation uthority.

 

 

 

32 | Annual Report 2013 ' ' Consulidated Financial Stateamernts

 

Notes to the Consolidated Financial Statements

Note2z — Significant accounting policies (continued)

 

Statement af cash flows

The statement cash flows shows the Group's cash flows før the year, broken down into operating,
investing and financing activities, the period's changes in cash and cash equivalents and the
Group's cash and cash equivalents at the beginning and the end of the period.

Cash flows from operating activities are presented using the indirect method and are stated as
the profit or loss for the year, adjusted for non-cash operating items, changes in working capital,
paid and/or received interests and paid and/or received income taxes.

Cash flows from investing activities comprise payments related to purchases and/or proceeds
of/from non-current assets and securities related to investing activities.

Cash flows from financing activities comprise dividend distributed to shareholders, capital
increases and/or reductions, repayments and/or proceeds af/from interest-bearing debt.

Cash and cash eguivalents at end of reporting period include cash less bank overdrafts.

Segment information

The segment information is provided on geographical markets as the Group only has one
business segment. The segmentation is based on the Group's internal financial reporting.

The segment information has been prepared in accordance with the Group's accounting policies.

Income/expenses in the segments comprise the items directly attributable to the individual
segments as well as the items that may be allocated to the individual segments on a reliable
basis. As a measure of segment profit or loss, the Group uses gross profit. |

 

 

 

 

 

Consolidated Financial Statéments vAlndalhepore 2013 | 33”

 

 

asséts and'liåbiljties
assumptions.

 

 

34 | Annual Report 2013 SE 7 ” Consolidated Financial Statements

 

Notes to the Consolidated Financial.Statements

Nøte3 — Stgnificant accounting judgements, estimates and assumptions (continued)

 

Judgements in relation to significant accounting policies
In applying the Group's accounting policies, the management makes judgements that may have
a material impact on the values recognised in the consolidated financial statements.

When defining the Group's significant accounting policies, the management made the following
judgements that have a significant impact of the values recognised in the consolidated financial
statements:

Share-based payments

In February 2013, after the share options of the Group's employees and management had vested,
but prior to the exercise date, the management made modifications to some of the share option
agreements concluded with employees and management. The managements treats the change
of terms as modifications to the existing share option agreements. Accordingly, the fair value
determined at the original grant date has been charged to the income statement over the original
vesting period. In addition, an expense is recognised over the new vesting period, corresponding
to the increase in the fair value of the share-based payments as a result of change of terms,

Exceptional items

The management has performed a judgemental allocation of the transaction costs relating to
the IPO. Incremental costs related to the listing of the new shares are recognised in the statement
of changes in equity. Transaction costs-relating to the existing shares are recagnised in the
income statement.

Functional currency

The Group has in accordance with the rules in IAS 21 decided that the functional currency of the
Group is USD. The conversion from the Group's functional currency to the Group's presentation
currency is described in the summary of significant accounting policies, Note 2.

 

 

      
   
    
  

Consolidated Financial Statements

 

Annual Report2013. | 35

 

 

i ”"Bevenue | . . ULVE NERE
uTotal revenue) | nm EET "2 136,065 " 125,243 -
v nd 57) (99,213) 0

 

 
 
     
  
 

 

 

 

 

125,243 ”. …. 19,952.

 

      
    
 
 
   
 
   
   
   
 
  

Cost df goods sold (40,009) — (3,072):

    

»rofit 185

  

: "Segment gross

”, Year nded 31 December:201

 

 

129,345

xternal customer

. Cost of goods sold

  

"ZSegment gross profit ;

    
   
   
 
    
 
   
  

xplanation bF abreviaf ons: .
EMEA = Europe Middle: East and Africa
. VAPACE "Asia ånd Pacific

1KK-49,869'thousand: (2912: DKK-42,788 3 thousad)
up: rievenue, Revenue from this customer: j is drising "

 

2 tiisusand (2012: DKK 13,702 thousand)
Jevende:from this clistomer s0 arising:|-

      

from sålås in the NAM seg!

1405054EogsN 76349"

       

36 | Annual Report 2013

 

Corsolidated Financial Ststements

 

Notes to the Consolidated Financial Statements

Note5 Employee benefits expense

 

 

 

 

 

 

 

 

DKK'000 2013 2012
Employee benefits expense Is reported as follows:
Wages and salaries 77553 65,113
Defined contribution schemes 8,579 6,533
Share-based payment expense (Note 7 and 10) 5,761 2,707
Social security costs 2,414 1,994
Allocated to development projects (21,799) (14,702)
Total employee benefits expense 72,508 61,645
DKK'000 2013 2012
Employee benefits expense is recognised
in the consolidated income statement as follows:
Research and development costs 12,155 17,512
Selling and distribution expenses 40,228 33,729
Administrative expenses 18,413 10,404
Exceptional items (Note 10) 1,712 -
Total employee benefits expense 72,508 61,645
Average number of employees 95 79
Compensation of key management personnel of the Graup is as follows:
2013 2012

Management — Board of Management Board of
DKK'000 Team Directors Team Directors
Short-term staff benefits 9,443 203 5,086 112
Defined contribution schemes 444 … 243 -
Share-baseéd payment expense 3,071 126 649 -
Total compensation
of key management personnel 12,958 329 5,978 112

 

1) By reference tø section 98b (3), (ii) of the Danish Financial Statements Act,

remuneration to Executive Management is not disclosed.
2) Management Team expanded during 2013

 

 

  
   

 

Consolidated Financial. Statements An al He 2013 RE "
. ? : . Annual Heport bis i)

 

 

1405054E0gSN7 6350

 

 

38 | Annual Aeport 2013

 

Consolidated Finangial Statements

Notes to the Consolidated Financial Statements

Nøte7  Share-based payments (continued)

 

 

 

 

 

 

 

 

 

 

 

 

2013
Board of Directors Management Other Total
|. Avg. Avg. Avg. Avg.
Share options Number ex. price Number ex, price Number ex, price Number . ex. price
At 1 January 2013 2,000 37,46 328,209 31,43 — 336,607 34.02 666,816 33.52
Granted during the year 20,550 32.00 98,050 32.00 11,575 32,00 130,175 32.00
Excercised/expired during the year (22,550) 32,48  (157,222) 30.80  (196,327) 35.30  (376,099) 33.25
At 31 December 2013 - - 269,037 32.00 151,855 32.00 420,892 32.00
Exercisable at 31 December 2013 - - 269,037 32.00 151,855 32.00 420,892 32.00
2012
Board of Directors Management Other Total
Avg. Avg. Avg. ' Avg.
Share options Number ex. price Number ex. price Number ex. price Number — ex. price
At 1 January 2012 22,550 37.46 341,359 31,45 345,232 33.97 709,141 33.43
Granted during the year - - - - - - - -
Excercised/expired during the year — (20,550) 32.00 (13,150) 32.00 (8,625) 32.00 (42,325) 32.00
At 31 December 2012 2,000 37.46 328,209 31.43 336,607 34.02 666,816 32.02
Exercisable at 31 December 2012 2,000 37.76 223,350 32.00 171,679 32.00 397,029 32.02
In 2013 288,495 share options were exercised and 87,604 lapsed (2012: 3,850 exercised and 38,475 lapsed).
The following shows the exercise price of the outstanding share options and warrants:
Number of share options at 31 December 2013 2012
Exercise price DKK 23.57 - 28,800
Exercise price DKK 32.00 420,898 - 497,929
Exercise price DKK 37,46 - 210,087
Total number of outstanding share options 420,892  666,816

 

The weighted average of the remaining contractual period of the outstanding stock options
at 31 December 2013 is 3.years and 11 months (at 31 December 2012: 4 years and 11 months).

 

  
      
    
       
     
 
 
   
 
   
  

Consolidated Financiat Statements .

 

 

— Anndal Report 2013 | 39

 

 

N otes to'th e Consol dated ' Fina ncial$ ateme nt8:

' veer:

    

 

Shererbesedipaymente (continue)

Volatility
.Risk- free interest rate

  

tier: zåko fi 1: alation to thé board of directors, DK
: Management a and DKK 2, 058 thousånd I" in jrelstjo

  

 

Note 8

  

Auditors' fees |

 

 

i DKK 000 æ

…. Ernst 8 Young:

. Fees for. other. service

Tota auditors' fees

 

140505 AE0g

 

40 | Annual Report 2013

 

Consolidated Fidancial Statsments

 

Notes to the Consolidated Financial Statements

Note9  Depreciation and amortisation

 

 

 

 

 

 

 

 

DKK7”000 2013 2012
Depreciation and amortisation are reported as follows:

Depreciation of plant and equipment 4,114 2,897
Depreciation of leasehold improvements 401 408
Total depreciation of property, plant and equipment 4,515 3,305
Amortisation of patents 81 -
Amortisation of completed development projects 16,760 17,916
Total amortisation of intangible assets 16,841 17,916
Total depreciation and amortisation 21,356 21,221
Note 10  Exceptional items

Exceptional items recognised in the income statement comprise costs in relation

to the IPO executed in December 2013. The break-down of these costs are as follows:

DKK'000 2013 2012
External advisors 5,070 -
Share-based payment due

ta accelerated vesting period of share options 1,712 -
Total exceptional items 6,782 =
As the IPO costs recognised in the income statement are treated as oné-timé occurence,

the Group finds it suitable to report these costs as exceptional items separated from other costs.

Notel1 Finance income

DKK'000 2013 2Ole
Interest receivable from banks 22 1
Foreign exchange gains 3,075 -
Other finance income 87 -
Tatal finance income 3,184 1

 

 

 

Consolidated Financial Statemønts

 

 

Other finance costs

 

 

 

statement;

 

ge tax rate for

ø DKK'000 m ; E

 

Tax éffectiof:
Non-taxable incøme"

 

403054E0gSN76352.

 

 

42 | Annual Bepart 2013

Corisalidated Financial Stataments

 

Notes to the Consolidated Financial Statements

Note14  Earnings per share

 

 

 

 

 

 

 

DKK'000 2013 2012
Net profit / (loss) attributable to ordniary holders

of the parent for basic earnings and the effect of dilution ; (509) 12,501
Thausands 2013 P012
Weighted average number of shares for basic earnings per share 3,684 3,460
Effect of dilution:

Share options 229 98
Weighted average number of shares adjusted for the effect of dilution 3,913 3,558
Note 15. Components of other comprehensive income

DKK'000 2013 2012
Exchange differences on translation

from functional to presentation currency (5,474) (277)
Exchange differences on translatian of foreign operations (90) -
Total (5,564) (277)

 

 

 

 
 

   

Consolidated Financial Statements Ni Åhinubt: Ropopt 2013 1

    

 

 
  

   
 

zIntangible asset '

   

 

” Note i8.

ork adapters før analysis and monitoririg | purposes, A network” ”

     
 
 
 

. 1x100G adap ry Thesi j prøjects are not yet complet érefore have not been amortise

  
  

Development"
projects, 0"

   

i projects; ;
:ån progress:

   
  

 

    

 

  
 
 

 
 

7420 ". ".3,236
i 25,200. 16,841
… (14,210). : (12,868)

… (89).

    

 

 

 

44 f£ Annual Report 2013

 

Consolidated Financial Statements

 

Notes to the Consolidated Financial Statements

Note17 Property, plant and equipment

 

 

 

Plant and Leasehold
equipment improverments
DKK"000 2013 2012 2013 2012
Cost at 1 January 17,706 14,575 2,686 2,115
Additions 5,269 2,863 1,218 526
Presentation currency adjustment (963) 268 (170) 45
Cost at 31 December 22,012 17,706 3,734 2,686
Accumulated depreciation and impairment at 1 January 11,517 8,443 1,582 1,148
Depreciation and impairment for the year 4,114 2,897 401 408
Presentation currency adjustment (653) 177 (85) 26
Accumulated depreciation and impairment at 31 December 14,978 11,517 1,898 1,582
Carrying amount at 31 December 7,034 6,189 1,836 1,104

 

There were no indications of impairment of the Group's property, plant and equipment in the year.

The carrying amount for plant and equipment held under finance leasing is DKK 1,699 thousand

at 31 December 2013.

Note 18  Deferred tax

 

Consolidated statement — Consolidated income

 

 

 

 

of financial position statement

DKK'000 2013 2012 2013 2012
Tax losses carry forward 8,215 12,203 3,988 7,382
IIntangible assets (6,915) (7,738) (823) (1,407)
Plant, property and equipment 2,837 1,756 (1,081) (1,461)
Provision for båd debts 391 25 (366) -
Presentation currency adjustment (204) (858) - -
Other - - 49 117
Deferred tax asset and expense 4,324 5,388 1,767 4,631
DKK'000 2013 2Q12
Reconciliation of deferred tax asset is as follows:

Opening balance as of 1 January 5,388 9,901
Recognised in consolidated income statement (1,767) (4,631)
Recognised in consolidated statement of comprehensive income 703 118
Closing balance as of 31 December 4,324 5,388

 

 

 

 

 

 
  
  

Consolidated Financial Stat;ements

 

     
 

Note 19

 

Anventories

 

Consumables and components:

 

   

usand (2012: DKK 52,598 thousand).

 

 

 

s are as follows:

   

 

 

 
  

"Ageing analysis of. past 'due but. not impaired trade receivable s as follows:

DKK'000. i

 
 
  

 

  

NE paste due
' Past due for En than, 30: days

   

 

     

6354

  

zbisooalgen

46 | Annual Report 2013

 

Consalidated Financial Statements

Notes to the Consolidated Financial Statements

Nøote21  Issued capital and reserves

 

 

 

 

 

 

 

 

Authorised sharest
2013 2012

Thousand Thousand
Ordniary shares of. DKK 1 each as of 1 january 3,523 3,426
Increase in ordinary shares DKK 1 each 2,288 97
Ordniary shares of DKK 1 each as of 31 December 5,812 3,523
Ordinary shares and fully paid:

2013 2013

Thousand — DKK'000
At 1 January 2013 3,523 3,523
Exercise of share options for cash on 1 July 2013 8 8
Exercise of share options for cash
on 6 December 2013 as result of the IPO 281 281
Issued ordinary shares due to the PO 2,000 2,000
At 31 December 2013 5,812 5,812
Share premium:
DKK'000 2013 2012
At 1 January 103,364 99,836
Exercise of share options for cash
in. excess of cost of ordinary shares during the year 9,667 3,528
Issued shares for cash in etxcess of cost
of ordinary shares due to the IPO 99,710 -
Transaction costs due to the IPO (11,561) -
At 31 December 201,180  103,364
Other capital reserves:
Other capital reserves comprise share-baåsed payment reserve issued to recøgnise the value
of equity-settled share-based payments provided to employees, including key management
personnel, as part of their remuneration. Refer to Note 7 for further details of this plan.
Movements in other capital reserves is as follows:
DKK'000 2013 2012
At 1 January 19,753 17,046
Share-based payment expense, Note 7 4,049 2,707
Share-based payment expense, Note 10 1,712 -
At 31 December 25,514 19,753

 

 

 

 

 

 

Consolidated Financial Staterients. ” Annual Beport 2013 [47

 

 

   
    
   

 

   

   

 

  
 

   

 

 

 
 

"Einanclal asséts:

Leasehold-deposi
- Tråde receivables
"Other receivables
åsh and cash equivalerits,

  
  
  
 

 

   
  
    

 

ncial abilitjesmeasured atam rtised
Finance lease liability … + ' SEE
nterest-bearing loans a
Tråde payables-

 
 

Othér påyables ”.

   

 

 

 

 

1405054£0gSN76355.

 

 

48 | Annual Report 2013

 

Corisalidated Financiol Statements

 

Notes to the Consolidated Financial Statements

Note 24 Commitments and contingencles

 

Collaterals
The Group has issued a floating charge in the amount of DKK 10 million (2012: .DKK 10 million)
secured on receivables, inventories, goodwill and equipment as colleteral for bank debt

Operating lease commitments
The Group's operating lease commitments relate to leasing of operating equipment, cars and

office facilities, Future minimum payments under operating leases at 31 December are as follows:

 

 

 

 

 

 

 

2013
Operating Office
DKK'000 equipment Cars — facilities Total
Falling due within one year - 116 3,952 — 4,068
Falling due between one and five years - 49 4,417 4,466
Total - 165 8,369 8,534
2012
Operating Office
DKK'000 equipment Cars — facilities Total
Falling due within one year 94 116 2,944 3,154
Falling due between one and five years - 166 1,072 1,238
Total 94 282 4,016 4,392
Finance lease commitments
The Groups' finance lease commitments relate to operating equipment used in the research
and development department. Future minimum lease payments together with the present value
of the net minimum lease payments at 31 December 2013 are as follows:
Present

Minimum — value of
DKK'000 payments payments
Falling due within one year 535 473
Falling due between one and five years 1,433 1,365
Total minimum lease payments 1,968 . 1,838
Less: finance charge (130) -
Present value of lease payments 1,838 1,838

 

 

BEER | |

 

Corisolidated Financial. Statéments RT 4 w i ERE 0 T . Annual Report 2013: [49

 

Notes to the Zonsolidated Financial St aternents

 

zNote 25 0 Related pårty disclosures

anagement in in 2012 and 2013.

 

1 40505ÅEGGSN76356

56 | Annual Report 2013

 

Consolidated Financial Stataments

 

Notes to the Consolidated Financial Statements

Note26 Financial risk management objectives and pollcles

 

The Group's principal financial ljabilities comprise loans and borrowings, financial lease liabilities,
trade and other payables and guarantees for sale of network adapters. The main purpose of these
financial liabilities is to finance the Group's operations and to provide guarantees to support its
operations, The Group has trade and other recievables, cash and long term leasehold deposits
that arrive directly from its operations, The Group døes not hold any available-for-sale investments
and does not enter into any derivative.transactions.

The Group is exposed to credit risk, liquidity risk, interest rate risk and foreign currency risk.
The Group's senior management provides assurance that financial risks are identified, measured
and managed in accordance with the Group's policies and risk objectives. lt is the Group's policy
that no trading.-in derivatives for speculative purposes shal be undertaken. The Board of Directors
reviews and agrees policies for managing each of these risks which are summarised below,

Creditrisk

Credit risk is the risk that a counterparty will not meet its obligations under a customer contract,
leading to financial loss. The Group is exposed to credit risk from its operating activities, receivables
and deposits with banks.

Trade receivables

Customer credit risk is managed at Group level. Credit quality of a customer is assessed based
on & review of available financial information. The Group's customers have 30 days as a standard
payment term and historically the Group has not had material impairment før bad debts.

At 31 December 2013, the Group had three customers (2012: one customer] that each owed
the Group more than 10% of all trade receivables.

The need for an impairment is analysed each quarter on an individual basis for major customers.
Additionally, a number of minor receivables are grouped into homogenous groups and assessed
for impairment collectively. The calculation is based on actual incurred historical data. The maximum
exposure to credit risk at, the reporting date is the carrying value disclosed in Note 22. The Group
does not hold collateral as security. The Group evaluates the concentration of risk with respect
to trade receivables as low, as its customers are located in several jurisdictions and operate
independently.

Cash deposits

Credit risk from balances with banks is managed by the senior management in accordance with
the Group's policy. Investments of surplus funds are mainly made to finance development projects.
Main cash deposits are in a Danish systemic bank. The Group's maximum exposure to credit risk
for the components of the statement of financial position at 31 December 2013 and 2012 is

the carrying åmounts as iliustrated in Note 22.

 

” Consolidated Financial Statemehts

 

 

The Grbup's. mandfacturing
sbelng tied Up in inventories.

”staternent of financial position are due as follows:

 

DKK'000

 

- Trade" bavab! s”
”Øther-påyables

 

 

 

Trade pavablete-
Otker payables:

al financial liabilities

 

 

 

52 | Annual Report 2013 ' Cormolidated Financial Staterments

 

Notes to the Consolidated Financial Statements

Note 26 Financial risk management objectives and policies (continued)

 

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flow of a financial instrument will
fluctuacte because of changes in market interest rates, The Group's exposure to the risk of
changes in rnarket interest rates relates mainly to the Group's interest bearing loans and borrowings
in the amount of DKK 5,000 thousand (2012: .DKK 5,000 thousand). These loan and borrowings
yield an interest rate between 5% and 8% per annum, The Group's policy is to keep sufficient cash
in place to mitigate adverse impact caused by fluctuation in market interest rates. The Group's
interest rate risk is according to management assesment immaterial, '

Foreign currency risk .
The Group's functional currency is USD. The Group's revenues and cost of goods sold are
mainly denominated in USD. Other expenses are primarily incurred in DKK and USD.

The Group's main currrency risk is thus associated with fluctuations in DKK against USD.
The Group has neglible transactions in other currencies.

As the Group prepares the annual report in.DKK, there is a currency risk associated with
the Group's translation of its functional currency inta its presentation currency.

Sensitivity analysis of presentation currency

The following demonstrates the sensitivity to a reasonably possible change in DKK exchange rate,
with all other variables held constant. The effect on the Group's profit before tax is due to changes
in fair value of monetary assets and liabilities, The impact on Group's equity is due to changes in
carrying value of non-monetary assets as result of change in other comprehensive income:

 

 

|. Effect an
profit before tax Efføct on equiy
DKK'000 2013 2012 2013 2012
Decrease in DKK by 2% (1,721) 166 1,381 1,108

Increase in DKK by 2% 1,792 (172) (1,381) (1,108)

 

 

BEER SS SS SFS |

Consolidated Financial Statements. ” NL ae Te ere, i Annual Aéport 2013 [ 53 å

 

 

 

jht affect:

 

1405054E6g9SN76358

 

54 | Annual Bepork 2013

 

Parert Company Fintancial Stetamerks

 

Parent Company Income Statement

for the year ended 31 December 2013

 

 

 

 

 

 

Note In DKK "000 2013 2012
BRevenue 156,017 " 157,086
Cost of goods sold (51,546) (52,874)
Gross profit 104,471 104,212
2 Research and development costs (15,847) (21,642)
2 Selling and distribution expenses (27,903) (22,162)
23 Administrative expenses (32,166) (21,581)
Operating profit before depreciation and amørtisation (EBITDA) 28,555 38,827
4 Depreciation and amortisation (21,137) (21,063)
Operating profit before exceptional items (EBIT before exceptional items) 7,418 17,764
5 Exceptional items (6,782) -
Operating profit (EBIT) 636 17,764
6 Finance income 3,734 329
7 Finance costs (2,621) (961)
Profit before tax 1,749 17,132
8 Income tax expense (1,767) (4,631)
Profit / (loss) for the year (18) 12,501.

 

 

 

 

Parent Company Financial Statements…

 

 

 

 

Total comprehensive income / (loss) for the year; net of tax

 

 

 

56 i Annual Report 2013

 

Parent Company Financial Statements

 

Parent Company Statement of Financial Position .

as at 31 December 2013

 

Assets
Nate — In DKK '000 2013 2012
Development projects, completed 29,780 33,596
Development projects, in progress 17,370 7120
Patents 4,709 3,746
10 Intangible assets 51,859 44,462
Plant and equipment 6,857 6,050
Leasehold improvements 1,734 1,021
11 Property, plant and equipment 8,591 7,071
le Investments in subsidiaries 661 -
13 Deferred tax asset 4,324 5,388
17 Leasehold deposits 1,501 1,106
Other non-current assets 6,486 6,494
Non-current assets 66,936 58,027
14 Inventories 7,922 3,859
15,17 Trade reteivables 15,519 10,993
15,17 Receivables from group entities 34,787 30,925
15,17 Other receivables 2,287 1,299
Cash and cash equivalents 107,079 16,071
Current assets 167,594 62,247
Total assets 234,530 120,24

 

 

 

 

 

 

Parent Company Finance lal Statements ” É

 

 

aan 31 1 December. 2013:

tuity and Liabilitigs .

Note > Ih.DKK 000

Abnual Report 2013 |: 57:

 

Isslied ca pital

capital reserves
umulated loss | '

5,812
201,180
(4,089)
25,514
(37,493)

190,924

 

iIntere st-bearingil ans and borrowings

6,365
6,365
473
23,010
2,896
10,343
519
37,241

43,606

 

234,530

120274 £

 

1405054kogSN76360'

 

58 | Annual Report 2013

 

Parent Company Financial Stateménis

 

Parent Company Statement of Changes in Equity

for the year ended 31 December 2013

Note — In DKK"000

 

 

 

Foreign
currency Other Accumu-
Share Share translation capital lated Total
capital premium reserve reserves losses equity
At 1 January 2012 3,426 99,836 862 17,046 (49,976) 71,194
Profit for the period - - = = 12,501 12,501
Other comprehensive income - - (159) - - (159)
Total comprehensive income - - (159) - 12,501 12,342
Issue of shares 97 3,528 - - - 3,625
Sharé-based payments - - - 2,707 - 2,707
At 31 December 2012 3,523 103,364 703 19,753 (37,475) 89,868
Loss for the period - - - - (18) (18)
Other comprehensive income - - (4,792) - - (4,792)
Total comprehensive income - - (4,792) - (18) (4,810)
Issue of shares 2,289 109,377 ” - " 111,666
Transaction costs - (11,561) - - - (11,561)
Share-based payments - - - 5,761 - 5,761
At 31 December 2013 5,812 201,180 (4,089) 25,514 (37,493) 190,924

 

 

 

Parent Corhnany Financial Statemente me En. sa AT rn "Annual Report 2013 | 659.

 

 

”F ) . |. : (3,734)
»Finance costs. an ne | m ' mr D. | n 2,621
Amortisation REE mn i pe JE NE 16,841
;Depreciation… : Mg : KR DONT 4,296
” . il ol ' É.…. LD 761

(1,998)

, 2 åse) / decrease in-inventåries | ml ” FEE (4,063)
En (Incréase) / decreéase in trade and other rec 's:and i Mpany receivables, |. (10,276)
" Ihtrease / (decrease) i in trade and: other pay ,., 5, interadmpany payables ånd provisions- 11,362

"Cash flows from oferåting activities 4 42 ; w : 22,559

 

Interest etelved. — | ' |. ' ou om : 659
Interest p id BD i SE SE ” . (445)

 

Purchase of plant, property and equipment mm ” KEE (4,348) (3,350)

Investments in intangible.assets ER . … . ' (26,446) — — (18,433)
; bra en : ” (681) sv EL UV

(395) - (5)

(31,870)

 

111,666
(11,561)

100,105

 

91,008
Sash.equivalents at the beginning of theyear. ng ' — 16,071

: 'ash and éåsh equivalents at the and ogthe year” | Fw Fi 107,079

 

 

1405054EogSN76361

 

60 I Annual Report 2013 Pørent Company Financial Statements

 

Notes to the Parent Company Financial Statements

Nøtel — Significant accounting policies

 

General

The financial statements for Napatech A/S (the parent company) have been prepared
in accordance International Financial Reporting Standards (IFRS), as adopted by the EU,
and additional Danish disclosure requirements for listed companies.

The accounting policies for the Parent company are the same as for the Group as set out
in Note 2 to the consolidated financial statements, except for the items listed below.

Dividends
Dividends from the investment in subsidiaries are recognised as income in the parent company's
income statement in the year in which the the dividend is declared,

Investments in subsidiaries

Investments in subsidiaries are measured at cost. if there is evidence of impairment, an impairment
test is performed. if the cost exceeds the recoverable amount, a write-down is made to such
lower value,

Share-based payments to employees in subsidiaries

The value of share options to the employees in the US-based subsidiary Napatech Inc. is recognised
as an increase in the investment in subsidiaries as the employees' services rendered in exchange
før the share options are received in subsidiaries.

 

 

  
  
  

Parent Company Financlal.Statements' i. ; Anndal Repørt

id et

 

 

 

    

      

 

 

 

 

   
 
   

     

 

 

 

 

         
 
 

Note 2 N Employee benefits expenså)

 

 

 

Employee benefits expense i
EEN Wages and;

 

 

 

 

 

incurred; by: the parent: sompany.

  

=.Sharé-based payment expense

the subsidier,

 

62 | Annual Report 2013 . 5: . Parent Company Financial Statements

 

Notes to the Parent Company Financial Statements .

Note4 — Depreciation and amortisation

 

DKK'000 2013 2012

 

Depreciation and amortisation are reported as follows:

 

 

Depreciation of property, plant and property . . 3,953 2,781
Depreciation of leasehold improvements 343 366
Total depreciation of property, plant and equipment ' 4,296 3,147
Amortisation of patents 81 -
Amortisation of completed development projects 16,760 17,916
Total amortisation of intangible assets ' 16,841 17,916
Total depreciation and amortisation 21,137 21,063

 

Note 5  Exceptional items

 

Exceptional items relate to the IPO carried out in December 2013 and are discloøsed in Note 10
to the consolidated financial statements.

Nøte 6 Finance income

 

DKK'000 . 2013 2012

 

Interest réceivable from banks . - -

Interest receivable from subsidiaries ' 659 329
Foreign exchange gains 3,075 -
Total finance income 3,734 329

 

Nøte7 Finance costs

 

 

DKK'000 2013 2012
Interest payable to banks ” 409 329
Foreign exchange losses 2,176 585
Finance charges payable under Finance leases 28 ”
Other finance costs 8 47

Total finance costs 2,621 361

 

 

Parent Company.Financial Statements

Annual Réport 2013 | 63%

 

 

Note Bb Income tax

 

"Current income tax:
Change'in deferred tax

 

 

At the applicable Danish'income ta) t
"for the parent:com any 25% (2012: 265

1% (2012: 27%)

 

omprehensive income »

 

 

change difference e on translation :

 

11405054EdgsN76363

 

 

64 | Annual Report 2013 ” ' Parent Company Finoricial Statements

 

 

Notes to the Parent Company Financial Statements

Note 10  Intangible assets

 

Intangible assets comprise patents and development projects. An overview over these assets
is disclosed in Note 16 to the consolidated financial statements.

Note ll Property, plant and equipment

 

 

 

Plant and Leasehold
equipment. improvements
DKK'000 2013 2012 2013 2012
Cost at 1 January 17,025 13,942 2,561 1,988
Additions 5,055 2,823 1,130 526
Presentation currency adjustment … (211) 280 (152) 47
Cost at 31 December ' . 21,169 17,025 3,539 2,561
Accumulated depreciation and impairment at 1 January 10,975 8,026 1,540 1,146
Depreciation and impairment far the year 3,953 2,781 343 366
Presentation currency adjustment (615) 168 (78) 28
Accumulated depreciation and impairment at 31 December 14,313 10,975 1,805 1,540
Carrying amount at 31 December 6,857 6,050 1,734 1,021

 

There were na indications of impairment of the parent company's property, plant and equipment
in the year.

The carrying amount of property, plant and equipment held under finance léases is DKK 1,699
thousand at 31 December 2013 (31 December 2012: zero).

 

 

 

 

 

  
  

 

Parent Company Financial Statements ng "Annual Regort 2013 ti en '

  

 

Statem ehts

    

Investments In subsidiarles

   
    
 
  
 
    
 

 

. Notele

 

' Cast åt 1 Jari

-Additiøns throug deposit o of.cas
- Value'of shar -based payment'£o employees i in subsidiaries " ”

' ;Presentation currency adjustment

       

  

: Accumulated' impalrment at i (TDÆ HE
Impairment for the year ou …
Presentation. turrency:adjustment.

 
 
 
 
 
 
 
 

: Carrying amount at 31 December . |: pl

 

 

    
 
 
 
 
 
 
 
 
 
  
 

. The parent company's investmrents in subsidiaries at 31 December. 2013.and 2012 > consist of
mm the following:” == så z% Bl. Ben 1) . É

 

Owrniérship in,%

 

Bad

 

age "Business Eiby Hm «

 

2100” Er 100. uge 100 H Såle and distribution FH
i ' ' Se of the Group's products

 

'Sale and distribution
k of:the,Group's products

 

      

le.and. istribution

 

"Sao Paulo, Brazil -

 

14050 gEN Te

66 | Annual Report 2013

 

Parent Company Financial Statements

 

Notes to the Parent Company Financial Statements

Noøte13  Deferred tax

 

 

 

 

 

Statement of Income
financial position statement

DKK'000 2013 2012 2013 2012
Tax loss carry-forwards 8,215 12,203 3,988 7,382
Intangible assets (6,915) (7,738) (823) (1,407)
Plant, property and equipment 2,837 1,756 (1,081) (1,461)
Provision for bad debts 391 25 (366) -
Presentation currency adjustment (204) (858) - -
Other - - 49 117
Deferred tax asset and expense 4,324 5,388 1,767 4,631
DKK'000 2013 2012
Aeconciliation of the deferred tax asset is as follows:

Opening balance at 1 January 5,388 9,901
Recognised in the parent company income statement (1,767) (4,631)
Becognised in the parent company

statement of comprehensive income 703 118
Cløsing balance at 31 December 4,324 5,388

 

Note 14 Inventories

 

Inventories are held by the parent comapny, and details on inventoriés are disclosed in Note 19
to the consolidated financial! statements.

 

 

 

      
   

Parent Company Financial Statemente= eN u . JT om . ' min, Na ” K "2. Annual Report 20131 87. |

 

  

npany Financial Statements

 

 

  

je parent. compa
osition:

 

ivables are as follow

 

 

vables Is.as follows:

 

  

"Past due betwee 60 days
. Pastidue between 60 and 90'days
:Past due after 90.days '

 

 

1405054E0g8N76365.

 

 

68 | Annual Report 2013

 

Parent Company Findricial Stétements

 

Notes to the Parent Company Financial Statements

Note 17 Financial assets and financial ilabilities

 

 

 

DKK'000 2013 2012
Financial assets assets measured at amortised cost:

Leasehold deposits ' 1,501 1,106
Trade receivables 15,519 10,093
Receivables from group entities 34,787 30,925
Other receivables 2,287 1,299
Cash and cash equivalents 107,079 16,071
Total financial! assets measured at amortised cost 161,173 59,494
Financial [labilities measured at amortised cost:

Finance lease liability 1,838 -
Interest-bearing loans and borrowings 5,000 5,000
Payables to group entities 23,010 13,603
Intercompany payables 2,896 -
Other payables 10,343 10,951
Total financial liabilities measured at amortised cost 41,249 29,554

 

Carrying amounts of financial assets and Financial liabilities approximate their fair value.

Note 18  Provisions

 

Provisions relate to guarantees associated with the sale of network adapters. These provisions
are incurred by the parent company and are disclosed in Note 23 to the consolidated financial
statements.

 

 

 

 

Parent Company Finrancial-Statements . oe ER ” i Kal FE ol ' . ”Annuål Heport 2013 i ggl

 

OD Note1g. Commitments'and contingencies

 

The: barent company las the whole Gr
"DKK 10 million (2012:'DKK 10 million) si
a5 colleteral-for bank debt.

cars and office facilit
are, as follows:

 

Operating
equipment i,

 

' Falling due within one year.

 

 

TEN Kane U ' Operating ' ' Office -
DKK 000 Fe Ek Poe smeg ipmeritiu Cars . facilities

 

 

Finarice lease Commitments Le ; '
Finance leåse commitments for the på rent company are z the samejas for. the Grou Disclosure. eN
srovided in Note 24 to the c ol ated financial

'1405054EogåN7.6366

 

70 fk Annual Report 2013

 

Parent Company Financial Statemeants

 

Notes to the Parent Company Financial Statements:

Nute 20 Related party transactions

 

The parent company's related parties are the same as the Group's, Additional information is set

out in Note 26 to the consolidated financial statements,

Related parties in which the parent company has a controlling influence include the company's

subsidiaries as disclosed in Note 12. .

The following provides the total amount of transactions that. have been entered into with

subsidiaries for the relevant financial year:

Napatech Inc,

Napatech Japan Ltd,

Napatech Brasil Ltda,

 

 

USA

DKK'000 . 2013 2012 2013 2012 2013 2012
Income statement:

Sales to subsidiaries 99,213 106,169 - - - -
Purchases from subsidiaries - - 3,418 - - -
Finance income from subsidiaries 659 329 - - - -
Statement of financial position;

Receivables from subsidiaries 32,085 30,925 2,702 - - -
Payables to subsidiaries - - 2,896 - - -

 

Note2l Financial risk management objectives and policies

 

The parent company incurs external financial liabilities and settles its transactions in currencies
other than the functional currency. The Groups" financial risks are therefore primarly related
to the pårent company. Relevant additional information is set out in Note 26 to the consolidated

financial statements.

Note 22 Events after the reporting period

 

There håve been no significant events after 31 December 2013 that might affect the parent

company financial statements.

 

 

 

 

 

 

 

Napatech 4/5

Tobaksvejen 23 A

DK-2860 Soeborg

US RIE SS LSD te]

KYS E Tees Ta ENS ET 10]