ANNUAL REPORT
2022
Ferrosan Medical Devices develops and manufactures medical devices used in surgical
procedures by health care professionals all over the world. Every two seconds a device from
Ferrosan Medical Devices is used. We have a mission to provide innovative, effective, and safe
medical devices that enable surgeons, nurses, and clinicians to perform surgical procedures as
seamlessly as possible without complications. Making seconds count in surgical care.
“Making seconds count
in surgical care”
PURPOSE
Letters from our Chair and CEO
1. Introducing Ferrosan Medical Devices
At a glance
Our legacy
Our values
Our business model
Our products
2. Business performance
Sales performance
Financial review
Keyfinancialfiguresandratios
3. Sustainability and impact
Sustainability and impact
Health impact
Environment
Social
Governance
Contents
02
05
06
07
08
09
11
12
14
17
18
20
22
24
4. Corporate matters
Ownership
Board of Directors
Group Executive Management
Risk management
5. Statements
Statement by management
Independent auditor’s report
6. Consolidated financial statements
7. Parent company financial statements
27
28
29
30
33
34
36
56
Ferrosan Medical Devices Group A/S
Sydmarken 5
DK-2860 Søborg
Business Registration No.: 37 80 83 42
03
Change and continuity are words that characterized 2022 for Ferrosan Medical Devices – and in many ways also
the company’s surrounding society and many stakeholders. The COVID-19 situation subsided, but the war in Ukraine,
turbulentenergymarketsanduncertainfinancialoutlookspresentednewchallenges,withinflationreappearingas
asignificantfactor.Inall,severalnewuncertaintiesandrisksemergedin2022.Theyear,ontheotherhand,also
confirmedthatFerrosanMedicalDevicesisabusinesswithcontinuityinuncertaintimes.Themarketforhemostatic
medical devices is rooted in fundamental clinical needs of surgeons, nurses, and clinicians. Clinical needs that are
largely detached from macroeconomic and political disturbances, reducing the negative impact on our business.
The competent professionals and leaders at Ferrosan Medical Devices led the company safely through 2022. Faced with
the ongoing global logistics challenges, we worked closely with our sales and marketing partner Ethicon, Inc. to meet the
demand for our devices from healthcare professionals around the world. We succeeded in improving quality and close
toallotheroperationalparametersthatwemeasure.Andfinally,wemanagedtodeliversatisfactoryfinancialresults.
I want to extend my warm gratitude to the leadership team, as well as all the dedicated professionals at Ferrosan
Medical Devices. They have all worked hard and shown impressive commitment to deliver these strong results.
Furthermore, my sincere appreciation is directed to Ethicon, Inc., our sales and marketing partner for almost 30 years.
Theirstrength,flexibility,andprofessionalismstandoutevenmoreprofoundlyinayearwheresomanyexternal
factors needed to be handled to ensure growth and delivery to hospitals all around the world.
AnothersignificantelementofchangeandcontinuitywasthechangeinownershipofFerrosanMedicalDevices.After
six years of Impilo and Kirk Kapital being the largest shareholders, the ownership changed in December 2022 when a
consortium of Kirk Kapital, the Lundbeck Foundation, and ATP became the new owners of Ferrosan Medical Devices.
New owners are often associated with uncertainty and disruptive change. However, the continuity of Kirk Kapital as the
largest shareholder now, as well as the new owners clearly expressing support for the current strategy and leadership
team of Ferrosan Medical Devices, enables us to continue the company’s trajectory – a trajectory of strong growth
through investments in research and development, operational capacity, and the new competencies required.
With the changed ownership, a new Board of Directors was appointed. I want to thank all the outgoing board
membersfortheirsignificantcontributionovertheyears,andIlookforwardtocontinuingthegrowthjourneywiththe
new Board of Directors.
Therearestillmanysignificantunsolvedclinicalneedstoenablebettercontrolofbleedinginsurgeryandimproved
diagnostic biopsy sampling. Ferrosan Medical Devices has the opportunity, and an obligation, to pursue development
of better solutions for surgeons, nurses, clinicians, and patients. We pledge to do so with increased and sharp focus
onsustainabilityaswellasemphasisonhavinganetpositiveimpactonpatients,ourstaff,theenvironmentandour
community.
Change and continuity
LETTER FROM THE CHAIR
Peter Kürstein
Chair of the Board of Directors
04
FERROSAN MEDICAL DEVICES GROUP A/S 2022 ANNUAL REPORT
At Ferrosan Medical Devices our purpose is “making seconds count in surgical care”. In 2022, demand for our
devices continued to grow; last year, a device from Ferrosan Medical Devices was used every two seconds to serve the
needs of surgeons, nurses and other healthcare professionals. Our continued growth trajectory was based on further
geographicalexpansionwithSURGIFLO™,gainedmarketsharesinthemarketforflowablehemostasisandincreased
market uptake of our electromechanical devices for biopsy sampling.
Wehaveanobjectivetoinnovateanddevelopnewmedicaldevicesthatenabletheuseofourflowablehemostats
in all types of surgical procedures and to ensure compatibility of our devices with new technologies in the operating
room. In 2022, Ferrosan Medical Devices made good progress towards these objectives, investing 100 million Danish
kroner in research and development as well as operational improvements.
In 2022, our operations were challenged, due to stressed global supply chains and very high demand for most
materialsandcomponents.Despitethisdifficultenvironment,ouremployeesmanagedtomaintainperfectdelivery
performance. Delivery is a corner stone in Ferrosan Medical Devices, and we continue to invest in increased
manufacturing capacity to accommodate current and future growth, as well as to improve our operations to serve our
commercial partners – ultimately enabling us to help patients around the world.
When I joined Ferrosan Medical Devices in 2020, we embarked on a journey to become a more sustainable company.
In 2022, we achieved good progress in areas across Environment, Social and Governance. However, we acknowledge
that there is still a lot of work ahead of us to reach our targets. This is not an easy journey, but we are committed
to minimizing our environmental footprint, acting responsibly in all aspects of our business, and creating a diverse,
safeandhealthyworkplaceforallemployees.Weareimplementingthefirstinitiativestoreduceourenvironmental
footprint, and more projects are already planned. Going forward, we will pay more attention to our responsibility to
secure a diverse workforce at all levels in the organization and ensure an inclusive and engaging culture where talent
can develop and thrive.
In late 2022, a consortium of Kirk Kapital, the Lundbeck Foundation, and ATP became the new owners of Ferrosan
Medical Devices. This meant that several board members left Ferrosan Medical Devices, and new board members
joined us in December. I want to take this opportunity to thank the previous owners and former board members for
their continuous support of the management team and for their great collaboration. I am also excited to work with the
new board members on realizing the great potential of Ferrosan Medical Devices.
We expect the growth of Ferrosan Medical Devices to continue in 2023 driven by further geographical expansion and
gaining market shares in a growing market due to underlying increase in surgical procedures as access to care increases.
I would like to thank all my colleagues for their dedication and hard work during a challenging and rewarding year, as
well as our previous and current shareholders for their support.
Innovation and expansion
LETTER FROM THE CEO
Rasmus Hother le Fevre
Chief Executive Officer
05
LETTER FROM THE CEO
Introducing Ferrosan
Medical Devices
01
Ferrosan Medical Devices is a global leader in topical adjunctive
hemostatic devices, helping surgeons and nurses to control bleeding in
surgery. We collaborate closely with Ethicon, Inc., part of the Johnson &
Johnson Medical Devices Companies, that is responsible for the sales and
marketing of our hemostatic devices.
Our devices are sold under the SURGIFLO™, SPONGOSTAN™ and
SURGIFOAM™ trademarks in more than 100 countries. Our devices are
developedwithafocusonsafety,efficacy,andeaseofuse.Throughour
devices we aim to enable health care professionals to achieve the best
possible clinical outcomes for their patients.
We also have strong capabilities in electromechanical medical device
development and manufacturing, with a focus on diagnostic biopsy
sampling.Togetherwithourpartner,wedevelopedtheworld’sfirsthandheld,
tetherless single insertion device to collect multiple samples during a
breast biopsy procedure; this is used by physicians to diagnose breast
cancer. Today, we manufacture the second-generation biopsy device at our
manufacturing site in Poland.
We are approximately 360 dedicated people; 245 employees at our
headquarters in Søborg, Denmark, and 115 employees in Szczecin, Poland.
A global leader in
helping surgeons
and nurses control
bleeding in surgery
Ferrosan Medical Devices is an
international medical device company
that develops and manufactures medical
devices used in surgical care by surgeons,
nurses, and clinicians.
07
AT A GLANCE
More than
16 million units
sold in 2022
Products available
in more than
100 countries
Headquarters in
Denmark and
factory in Poland
360+
employees
07
INTRODUCING FERROSAN MEDICAL DEVICES
Niels Jacob Herman Weitzmann established Ferrosan
A/S in Copenhagen in 1920. In the beginning, the company
developed, produced, and sold a series of supplements to
treatirondeficiencyandotherpharmaceuticals.
In 1947, Jens Herman Bing published his research on the use
of a gelatin sponge as an absorbable hemostatic agent for
surgeons in the medical journal Acta Pharmacol. His research
served as the foundation for Ferrosan A/S when developing
andlaunchingitsfirsthemostaticdevice,thegelatinsponge
SPONGOSTAN™.
Since then, the company has advanced hemostatic
technologies and improved bleeding control during surgery,
whichbenefitshealthcareprofessionalsandpatients.
Based on the work by Jens Herman Bing, Ferrosan Medical
Devices has kept innovating and pursued geographical
expansion. Today, we have a portfolio with a range of
innovative medical devices, focusing on biomaterial devices to
control bleeding in surgery and electromechanical devices for
diagnostic biopsy sampling, used by health care professionals
in more than 100 countries.
Until 2010 Ferrosan A/S developed, produced, and sold
prescription medicines, vitamin supplements, and hemostatic
devices. To solely focus on hemostasis and medical devices,
Ferrosan Medical Devices A/S was established that year, and
thevitaminandpharmaceuticaldivisionsweresoldoff.Since
then, the company has experienced continuous double-digit
annual growth sparked by the continual launch of innovative
andeffectivemedicaldevices.
Ferrosan Medical Devices’ legacy demonstrates a dedication
and commitment to developing innovative medical devices.
Growth sparked
by innovation
OUR LEGACY
12%
2013-2022 REVENUES CAGR
0
800
600
400
200
Revenues (DKKm)
GROWTH JOURNEY
2013 20222014 2015 2016 2017 2018 2019 2020 2021
227
FTEs
144
FTEs
287
FTEs
360
FTEs
08
FERROSAN MEDICAL DEVICES GROUP A/S 2022 ANNUAL REPORT
1999
We got FDA approval to enter the US market
with hemostatic sponges SURGIFOAM™
1995
We partnered with Ethicon, Inc. to
market hemostatic devices
1947
Our first hemostatic device, the gelatin sponge
SPONGOSTAN™, entered the market
2015
We started selling our third-generation
hemostatic flowable matrix SURGIFLO™
2011
We launched the second-generation
hemostatic flowable matrix SURGIFLO™
2019
Our second-generation single insertion device to take multiple
breast biopsy samples was developed and made available
2009
Our hemostatic flowable matrix with
thrombin SURGIFLO™ True Kit was marketed
2005
We started selling the first-generation
hemostatic flowable matrix SURGIFLO™ Classic
2002
Our hemostatic powder,
SURGIFOAM™, was launched
“In the 17 years that I have been a part
of Ferrosan Medical Devices, I have had
many different responsibilities, working
together with a lot of engaged colleagues
across the company. What motivates me every
day is the respect we show for each other,
combined with the focus on also having fun
while working.”
Maria Gjellerup Møller
Principal Product Owner
09
We launched a new set of company values with associated
behaviorsin2021.Ourvaluesanddesiredbehaviorsarereflections
of our collective belief in how we want to lead and interact with each
other at Ferrosan Medical Devices.
To further adopt and integrate our values, in 2022, we have updated
our people processes and talent development frameworks to align
with our values and desired behaviors. Today, all dialogue around
employee performance, feedback and development has its point of
departure in our values, as well as individual behavioral objectives.
The beliefs and principles
that guide our behavior
At Ferrosan Medical Devices, we recognize that our people are paramount to
achieving our strategic objectives and fulfilling our purpose of “making seconds
count in surgical care”. We believe that collective, as well as individual, success
is achieved when we create an innovative environment where talents thrive
and grow together.
OUR VALUES
OUR VALUESOUR BEHAVIORS
We CARE
about each other and
thedifferencewemake
PURPOSE: Making seconds count in surgical care
We OWN
our decisions and
actions, both individually
and as a team
We WIN
for patients and surgeons
by being ambitious and
innovative
We actively contribute to an
engaging, fun, and healthy work
environment.
We are role models and foster an
atmosphere of openness, respect,
and care.
We take responsibility for developing
our company in a sustainable
direction.
We provide and request timely and
constructive feedback.
We communicate clearly, set
direction, and ensure alignment of
expectations.
We facilitate and foster
collaboration.
We delegate responsibility and
empower our colleagues.
We hold ourselves and others
accountable.
We promote and require a quality
mindset.
We raise the bar for success and
support each other’s development.
We drive and enable execution.
We share knowledge and
experience.
We encourage curiosity and foster
learning.
We challenge the status quo to
make things better, simpler, and
moreeffective.
09
INTRODUCING FERROSAN MEDICAL DEVICES
Ferrosan Medical Devices develops
and manufactures medical devices
sold via partners in more than
100 countries. We offer a range of
biomaterial devices to control bleeding
in surgery and electromechanical
devices for diagnostic biopsy sampling.
Ferrosan Medical Devices creates value in health care, globally,
through an iterative model across user insights, research and
development, production, and delivery. We constantly engage with
experts, surgeons, nurses, and other healthcare professionals to
monitor development, identify unmet needs, and develop new medical
devices that solve real-life problems in surgical care. We put this at the
center of our development of sustainable, innovative, and safe medical
devices that enable healthcare professionals to achieve the best
possible clinical outcomes for patients.
Ferrosan Medical Devices does not conduct sales and marketing
activities. This is done by our strong commercial partners.
Our long-term strategy involves increasing the use of our current
devices, including ensuring compatibility with new technologies, as well
as developing the next generation of hemostatic devices. This happens
in close collaboration with our innovation and sales partner Ethicon,
Inc., part of the Johnson & Johnson Medical Devices Companies. Over
the past four years, Ferrosan Medical Devices has invested around
DKK 95 million in device development.
Discover. Design.
Develop. Deliver.
Identificationofuserneeds
• We monitor the development of
surgical care from both technical
and clinical perspectives to discover
relevant challenges and opportunities
in the operating room
• We collaborate closely with global
partners and surgical teams to
identify and verify unmet user needs,
which we put at the center of our
innovationefforts
Research and development
• Wetranslateverifieduserneedsand
requirements into technical features of
potential new devices and come up with
innovative concepts
• We design new solutions and create prototypes
to prove the value of our concepts and designs
• We conduct usability studies and clinical
evaluations with users and experts, verifying
anddocumentingtheeffectivenessofthenew
devices to complete the development
Quality assurance
and device performance
• We monitor the use of our devices to get
feedback on how our devices are performing
• We conduct post market surveillance according
to regulatory requirements to ensure continuous
safetyandefficacyofourdevices
OUR BUSINESS MODEL
Regulatoryfillingandapproval
• We develop a regulatory strategy taking the regulatory
requirements of relevant markets into consideration
• We prepare technical non-clinical and clinical documentation
andsetupregulatoryfilestogetnewdevicesapprovedforthe
market
Supply chain and
manufacturing
• We set up internal manufacturing and
packaging across our two sites, including
quality control in our laboratories
• We establish a reliable supply chain that
delivers high-quality medical devices to
our partners
10
FERROSAN MEDICAL DEVICES GROUP A/S 2022 ANNUAL REPORT
A strong portfolio
Ferrosan Medical Devices manufactures and
sells a range of biomaterial medical devices
to control bleeding in surgery, as well as
different electromechanical devices.
Our biomaterial devices are gelatin-based adjunctive hemostatic
agents used by trained clinical professionals in the operating room
tocontrolintraoperativebleedinginafastandeffectivemanner,
allowing surgeons to carry out surgery.
The portfolio of hemostatic devices includes three formulations:
flowablematrices,sponges,andpowder.Thedevicesaresoldunder
the trademarks SURGIFLO™, SPONGOSTAN™ and SURGIFOAM™, and
are all marketed and distributed in more than 100 countries through
our partnership with Ethicon, Inc., part of the Johnson & Johnson
Medical Devices Companies. Ferrosan Medical Devices is the legal
manufacturer.
All devices are CE marked and FDA approved, and their quality is
framed by Good Manufacturing Practice (GMP) regulations. Our
biomaterial devices are regulatory Class III medical devices.
Our portfolio also includes electromechanical devices, focusing
on diagnostic biopsy sampling. Our electromechanical devices are
regulatory Class II medical devices.
Flowable hemostatic matrix kit
with Thrombin
Electromechanical devicesHemostatic powderHemostatic spongesFlowable hemostatic matrix
Anadvancedflowablegelatin-basedmatrix
mixed with a thrombin constituent intended
for hemostatic use. Thrombin is a human
derived plasma protein that provides an
ancillaryeffecttotheinnatehemostatic
propertyoftheflowablegelatinmatrix.The
flowablematrixcanreachbleedingthat
occurs in tight and irregular spaces and
where surgeons cannot see the exact source
ofbleeding–difficulttoaccessbleeding.
The device is used to control bleeding in
both open surgery and minimally invasive
surgery.
Ourflowablehemostaticmatrixkitwith
thrombin is sold under the SURGIFLO™
trademark.
Electromechanical medical devices with
a focus on diagnostic biopsy sampling.
The main device is a second-generation
biopsy device launched together with our
global partner in 2019. It is an ergonomic,
handheld, tetherless device that is inserted
once to collect multiple biopsy samples.
We have also developed an automated
disposable electronic pump with potential
application in various market segments.
An absorbable hemostatic gelatin powder,
the powder is saturated with a sterile
sodium chloride solution. It is indicated for
surgical procedures (except ophthalmic) for
hemostatic use by application to a bleeding
surface. It is a sterile, single-use medical
device.
The powder can be used with thrombin
1
.
Our hemostatic gelatin powder is sold under
the SPONGOSTAN™ and SURGIFOAM™
trademarks.
Absorbable gelatin sponges indicated for
hemostatic use by application to a bleeding
surface. The sponges are sterile, single-use
medical devices provided in various sizes
and shapes.
Our hemostatic sponges have more than
75 years of safe patient track records as an
adjunctive gelatin hemostatic agent.
Our hemostatic gelatin sponges are
sold under the SPONGOSTAN™ and
SURGIFOAM™ trademarks.
Anadvancedflowablegelatin-basedmatrix
intendedforhemostaticuse.Theflowable
matrix can reach bleeding that occurs
in tight and irregular spaces and where
surgeons cannot see the exact source of
bleeding–difficulttoaccessbleeding.
The device is used to control bleeding in
both open surgery and minimally invasive
surgery.
Ourflowablehemostaticmatrixissold
under the SURGIFLO™ trademark.
1 TheuseofthrombinisnotcoveredbytheCEcertificationandtheH.S.A.approvalofSPONGOSTAN™AbsorbableHemostaticGelatinPowder.
OUR PRODUCTS
11
INTRODUCING FERROSAN MEDICAL DEVICES
Business performance
02
Tine Østerbye
Quality Control Technician
Anne Madsen
Quality Control Technician
Revenues totaled DKK 810 million in 2022, increasing by 12% compared
to2021.In2022,themaingrowthdriverscontinuedtobeourflowable
hemostatic matrix kit with Thrombin and electromechanical devices.
Allregionsexperiencedstablegrowth,withboththeAsia-Pacificregionand
EMEA (Europe, Middle East, and Africa) realizing around 20% in revenues
growthin2022.TheAsia-Pacificregioncontinuestobeadriverofgrowth,
withafive-year(2018–2022)compoundannualrevenuesgrowthrateof26%.
SalesoftheflowablehemostaticmatrixkitwithThrombininrecentlyentered
marketsremainadriverforgrowthintheAsia-Pacificregion.
Thefive-yearcompoundannualrevenuesgrowthratefrom2018to2022is
11%.
A recent study of the global market for topical hemostats estimate that the
market will continue to grow by 3-4% annually over the long term. This is
driven by increased surgical procedure volumes, due to aging populations
and increased access to care.
Itisexpectedthatthemarketforflowablehemostaticdeviceswillgrowfaster
thanthegeneralmarketfortopicalhemostats.Theflowablehemostats
market is expected to grow at a 5-6% annual rate.
The demand for topical hemostatic devices is expected to grow across
all geographic regions toward 2030, among other factors, driven by the
increasingadoptionofflowablehemostaticdevicesamongsurgeons.The
highestgrowthratesareprojectedtobeintheAsia-Pacific.
Aswelooktothefuture,weareconfidentthatFerrosanMedicalDevices
and our partners will be able to use the promising market development to
sustain our growth trajectory. We plan to realize future growth by launching
ourflowablehemostaticmatrixkitwithThrombininevenmorecountries,as
well as make sure our devices are compatible with new technologies in the
operating room.
We expect our revenues to increase to DKK 840-880 million in 2023.
Sustained
growth and a
positive outlook
For over 15 years, Ferrosan Medical
Devices has delivered a strong and
stable growth at attractive rates.
SALES PERFORMANCE
EUROPE, MIDDLE EAST AND AFRICA GLOBALAMERICAS ASIA-PACIFIC
+20%
2022 GROWTH
+10%
2018 – 2022 CAGR
+12%
2022 GROWTH
+9%
2022 GROWTH
+9%
2018 – 2022 CAGR
+21%
2022 GROWTH
+26%
2018 – 2022 CAGR
+11%
2018 – 2022 CAGR
13
BUSINESS PERFORMANCE
The year 2022 was busy at Ferrosan Medical
Devices with total revenues reaching DKK 810
million – a 12% increase compared to 2021.
Thecompany’sgrossprofitamountedtoDKK
605 million, resulting in a 75% gross margin.
EBITDA increased to DKK 322 million with an
EBITDA margin of 40%.
Increasingsalesvolumespositivelyaffected
thefinancialresultsof2022.Profitmargins
were negatively impacted by a lower US dollar
exchange rate and rising material costs.
Overall,thefinancialperformancein2022was
satisfactory.
Revenues
Ferrosan Medical Devices saw a 12% increase
in revenues in 2022, reaching DKK 810 million
compared to DKK 720 million in 2021.
The increasing revenues were attributable to
successful market entries with SURGIFLO™, our
commercial partners’ continued ability to gain
market share, and our own ability to maintain a
consistently high level of delivery performance
to meet the demand. Foreign exchange rates
hadanegativeeffectofapproximatelyDKK22
million on revenues compared to 2021.
Costs
ThereportedgrossprofitwasDKK605millionin
2022, up by 8% from the year before. The gross
profitmarginwas75%,whichislowerthanin
2021.Thegrossprofitmarginwasnegatively
impacted by unfavorable development in
foreign exchange rates and increasing costs
of materials, components and freight due to
pressure on global supply chains. The negative
effectswerepartlycushionedbyimproved
operationalefficiency.
Fixed costs were generally at the same level in
2022 as in 2021.
Earnings
Earnings before interest, taxes, depreciation
and amortization (EBITDA) reached DKK 322
million in 2022, up 12% from DKK 286 million in
2021. The improved earnings are mainly due to
increased revenues. The EBITDA margin in 2022
was 40%. The same as in 2021.
DKK million Full-time equivalent employees
REVENUES FTEs
400
350
300
250
200
150
100
50
0
1000
800
600
400
200
0
530.4
528.1
622.4
720.4
810.3
2018
2
2019
2
2020 2021 2022
269
287
329
345
360
2018 2019 2020 2021 2022
2 Thekeyfinancialfiguresandratiosfor2018and2019arepresentedinaccordancewithDanishGAAP.
Increasing revenues
and earnings
FINANCIAL REVIEW
810
2022 REVENUES (DKK MILLION)
2018-2022 CAGR:
11%
2018-2022 CAGR:
8%
14
FERROSAN MEDICAL DEVICES GROUP A/S 2022 ANNUAL REPORT
Despite increasing material costs, higher salaries, and
increasing energy prices, we expect that next year’s
EBITDA margin will be similar to that of previous years at
38-41%.
In 2022, depreciation, amortization, and impairment of
acquired intangible assets added up to DKK -108 million.
In 2021, they were DKK -100 million. Financial items were
DKK -58 million, up from DKK -53 million compared to
thosein2021.Thefinancialitemsweremainlyinterest
paymentstofinancialinstitutions.
Earnings before taxes (EBT) were DKK 164 million in 2022.
Theyearbefore,itwasDKK135million.Theeffectivetax
rate was 17%, resulting in earnings after taxes (EAT) of
DKK 137 million, an increase of 33% from 2021.
Otherfinancialperformanceindicators
Ferrosan Medical Devices had a net working capital
level of DKK 96 million in 2022. In 2021, it was DKK 97
million. Changes to net working capital are related to
improvements of both other receivables and trade
payables.
TheoperatingcashflowwasDKK241millionin2022,
compared to DKK 166 million in 2021. Ferrosan Medical
Devices invested DKK 99 million in 2021. Most of the
investments were associated with innovation, capacity
expansion and device development. In 2021, the
company invested DKK 117 million.
NetcashflowendedatDKK16millionin2022.
Asaresultofitsoperations,investments,andfinancing,
FerrosanMedicalDevicesisexposedtoinherentfinancial
risks in the form of changes in exchange rates and
interest rates, as well as credit risks and liquidity risks.
FerrosanMedicalDevicesmaintainsalowfinancialrisk
profile,suchthatinterestrateandcreditrisksonlyarise
with substantial changes to the company’s commercial
conditions. The company is exposed to changes in
theexchangeratesofUSdollarandPolishzłoty.Asof
December 31st, 2022, the net interest-bearing debt was
DKK 899 million.
322
2022 EBITDA (DKK MILLION)
40%
60%
80%
70%
50%
90%
100%
0
200
400
300
100
500
600
2018
2
2019
2
2020 2021 2022
Gross profit (DKK million) Gross profit margin (%)
GROSS PROFIT AND GROSS PROFIT MARGIN
339.6 335.3
64.0%
63.5%
486.5
78.2%
605.2
562.6
74.7%
78.1%
30%
40%
50%
45%
35%
55%
65%
60%
0
100
200
150
50
250
350
300
2018
2
2019
2
2020 2021 2022
EBITDA (DKK million) EBITDA margin (%)
EBITDA AND EBITDA MARGIN
205.9
38.8%
192.8
36.5%
225.2
36.2%
321.6
286.5
39.7%39.8%
2018
2
2019
2
2020 2021 2022
30%
40%
50%
45%
35%
55%
60%
0
100
200
150
50
250
300
EBITA (DKK million) EBITA margin (%)
EBITA AND EBITA MARGIN
191.6
36.1%
182.0
34.5%
206.1
33.1%
303.7
265.8
37.5%
36.9%
2Thekeyfinancialfiguresandratiosfor2018and2019arepresentedinaccordancewithDanishGAAP.
40%
2022 EBITDA MARGIN (%)
15
BUSINESS PERFORMANCE
DKK’000
2022 2021 2020 2019
2
2018
2
STATEMENT OF PROFIT OR LOSS
Revenue 810,291 720,355 622,364 528,081 530,390
Grossprofit 605,189 562,558 486,545 335,276 339,603
Earnings before interest, taxes, depreciation and
amortisation (EBITDA) 321,555 286,499 225,229 192,805 205,932
Earnings before interest, taxes and amortisation
(EBITA) 303,654 265,770 206,129 182,023 191,579
Earnings before interest and taxes (EBIT) 213,458 186,518 126,820 92,923 94,682
Netfinancials (49,128) (51,044) (59,036) (48,563) (76,402)
Earnings before taxes (EBT) 164,330 135,474 67,784 44,360 18,280
Earnings after taxes (EAT) 136,854 102,856 50,753 22,889 (6,104)
STATEMENT OF FINANCIAL POSITION
Investments in property, plant and equipment 48,699 90,026 47,452 22,425 2,970
Total assets 2,016,023 1,973,510 1,943,380 1,757,476 1,850,394
Equity 620,234 561,709 468,542 334,775 592,387
RATIOS
Profitratio(%) 16.9% 14.3% 8.2% 4.3% (1.2)%
Gross Margin (%) 74.7% 78.1% 78.2% 63.5% 64.0%
Solvency ratio (%) 30.8% 28.5% 24.1% 19.0% 32.0%
Return on equity (%) 23.2% 20.0% 12.6% 4.9% (0.9)%
EBITDA Margin (%) 39.7% 39.8% 36.2% 36.5% 38.8%
EBITA Margin (%) 37.5% 36.9% 33.1% 34.5% 36.1%
FTEs 360 345 329 287 269
Keyfinancialfiguresandratios
2Thekeyfinancialfiguresandratiosfor2018and2019arepresentedinaccordancewithDanishGAAP.
Definition of Key Figures and Ratios
Profitratio(%):NetEarningsaftertaxes/Revenue*100
Grossmargin(%):Grossprofit/Revenue*100
Solvencyration(%):Equity/Totalassets*100
Returnonequity(%):NetEarningsaftertaxes/Avg.Equity*100
EBITDAMargin(%):EBITDA/Revenue*100
EBITAMargin(%):EBITA/Revenue*100
Number of employees year end (FTE): Number of full-time equivalent
employees (part-time employees translated into full-time employees)
at the end of the year.
16
FERROSAN MEDICAL DEVICES GROUP A/S 2022 ANNUAL REPORT
SURGIFOAM™ absorbable
gelatin powder production
line in Søborg, Denmark
17
BUSINESS PERFORMANCE
Sustainability
and impact
03
Dennis Sørensen
Process Supporter
In 2022, we continued our work with sustainability
across Environment, Social and Governance. Some
of the notable events include optimizing energy
consumption at our site in Søborg, conducting an
internal analysis on diversity and inclusion, articulating
and implementing guiding principles for sustainable
innovation, and integrating a tool to quantify CO2
emissionsfromspecificinnovationdesignchoicesinto
our stage-gate project model.
Ferrosan Medical Devices has been awarded the silver
sustainability rating by EcoVadis for 2023, based on our
sustainabilityeffortsin2022.Ouroverallsustainability
rating from EcoVadis has improved by 20%, and we
exceeded the industry average in all four evaluated
categories: Environment, labor and human rights,
ethics, and sustainable procurement. This achievement
places Ferrosan Medical Devices in the top 12% of over
100,000 companies evaluated by EcoVadis.
Maximizing impact
in global health care
Everything done at Ferrosan Medical Devices is anchored
in our purpose: “Making seconds count in surgical
care”. We are devoted to developing, manufacturing,
anddistributingsafeandeffectivemedicaldevicesthat
enable surgeons and nurses, when performing surgical
procedures, to help patients. Thus, the impact of our
Maximizing positive impact in health
care while acting responsibly and
minimizing environmental footprint
At Ferrosan Medical Devices, we recognize our responsibility for the impact we have on
employees, our society, and the planet. We want to maximize the positive impact of our
devices in health care for surgeons, nurses, patients, and society while minimizing our
environmental footprint.
devices in health care is a natural part of our work with
sustainability.
Ferrosan Medical Devices is committed to becoming
a sustainable medical device company with a positive
impact in health care globally.
Caring for our people, our society,
and our planet
FerrosanMedicalDevices’sustainabilityeffortsfocuson
environmental, social and governance (ESG) matters. We
are committed to acting responsibly and sustainably in
all aspects of our business, be it developing, producing
or selling medical devices.
Ferrosan Medical Devices has developed and
implemented an ESG framework to set targets and
monitor performance against these targets. Our ESG
frameworkemployskeymetricsdefinedbyNasdaq
Copenhagen, the Danish Finance Society and FSR
(Danish Auditors). We have added additional metrics to
the framework, which are metrics considered relevant to
ourbusinessspecifically.Asourworkwithsustainability
evolves, we continue to adapt and improve data,
disclosures, and metrics.
Our disclosures on ESG issues cover information on
targets, initiatives, progress and plans.
SUSTAINABILITY AND IMPACT
Health impact
ENVIRONMENT
GOVERNANCE
SOCIAL
19
SUSTAINABILITY AND IMPACT
Ferrosan Medical Devices’ products are sold in over 100 countries, and in 2022 our devices were used
in approximately 16 million surgical procedures. This means that every two seconds one of our devices
assisted a surgical procedure.
Studies show that achieving hemostasis in surgical procedures is critical in preventing excessive surgical
bleeding, limiting bleeding-related complications, blood transfusions and ultimately use of more hospital
resources.
3
Ferrosan Medical Devices’ products, like SURGIFLO™, SURGIFOAM™ and SPONGOSTAN™, are
used by surgeons and nurses to achieve hemostasis in different surgical settings.
Ferrosan Medical Devices’ SURGIFLO™ is a flowable hemostatic matrix. Flowable hemostatic matrices are
well-known to be effective in achieving hemostasis, with demonstrated safety and efficacy in various types
of surgery.
4
Ferrosan Medical Devices will continue its efforts to make its devices available to even more healthcare
professionals globally and invest more in device innovation to advance health impact.
Enabling better clinical outcomes
of surgical procedures
Ferrosan Medical Devices’ products are developed to enable better clinical
outcomes of surgical procedures, with a positive impact on health care. Today,
our devices are used in surgical care by health care professionals all over the
world.
3 Michael E Stokes, Xin Ye, Manan Shah, Katie Mercaldi, Matthew W Reynolds, Marcia FT Rupnow and Jeffrey Hammond. Impact of bleeding-related
complications and/or blood product transfusions on hospital costs in inpatient surgical patients. BMC Health Services Research. 2011; 11:135
4 Valls Palleja M, Almazan del Castillo R, Fernandez Soto R, Gay Molina JG, Zanela OO, Cabra HA, Sosa C, Sanchez D. Systematic revision and meta-
analysis of gelatin-thrombin hemostatic matrices for bleeding control. Value in Health. 2016;19(3):A311. Conference: ISPOR 21st Annual International
Meeting. Washington, DC. 2016.
5 Yunchang Wu, Yiqing Wu, Gaurav Gangoli, Anh Bourcet, Walter Danker III, Qianyi Gong, Huan Zhan, Wendong Chen and Zheng Wang. Using flowable
gelatin in anterior cervical spine surgery in real-world practice: a retrospective cohort study. 2019; Journal of Comparative Effectiveness Research 8(1)
6 Krishnan S, Conner TM, Leslie R, Stemkowski S, Shander A. Choice of hemostatic agent and hospital length of stay in cardiovascular surgery. emin
Cardiothorac Vasc Anesth. 2009 Dec;13(4):225-30. doi: 10.1177/1089253209351321. Epub 2009 Dec 1. PMID: 19951982.
Note: Investments include Ferrosan Medical Devices’ net capitalized costs for innovation projects to
improve our current hemostatic devices or develop new hemostatic devices. Revenues includes all
sales of hemostatic devices. Due to a change in employed methodology, the figures above are not
comparable to the figures in the 2021 annual report.
ANNUAL INVESTMENTS IN HEMOSTATIC DEVICE
INNOVATION AS SHARE OF REVENUES (2019=100)
2019 2020 2021 2022
1500
1000
500
0
HEALTH IMPACT
20
FERROSAN MEDICAL DEVICES GROUP A/S 2022 ANNUAL REPORT
Research shows that, when adequate rapid hemostasis is
achieved in surgery, potential benefits include:
3,4,5,6
• Reduced time of operation
• Reduced blood loss and need for blood transfusion in surgery
• Reduced complications during surgery
• Reduced length of surgery-related hospitalization
• Reduced patient recovery time after surgery
• Reduced health care cost from surgical procedures
21
SUSTAINABILITY AND IMPACT
Unit Reference to frameworks 2022 2021 2020 2019
CO
2
e,scope1* Tons • GHG Protocol
• GRI: 305-1, 305-2, 305-3 and
305-4
• SDG: 13
• UNGC: Principles 7 and 8
• Nasdaq (2019) ESG Reporting
Guide 2.0, E1 and E2
1,223 1,240 - -
CO
2
e, scope 2 Tons 391 391 - -
CO
2
e, scope 3
*
Tons 12,073 12,099 - -
CO
2
e intensity, scope
3
*
Tons CO
2
e per
DKKm revenues
14.9 16.8
CO
2
e intensity, scope
1-3
*
Tons CO
2
e per
DKKm revenues
16.9 19.1 - -
Energy consumption
**
Gigajoules • GRI: 302-1 and 302-3
• SDG: 12
• UNGC: Principles 7 and 8
• Nasdaq (2019) ESG Reporting
Guide 2.0, E3 and E4
38,264 37,724 33,287 34,412
Energy intensity
**
Gigajoules per
DKKm revenues
47.2 52.4 53.5 65.2
Renewable energy
share
**
% Renewables • GRI: 302-1
• SDG: 7
• Nasdaq (2019) ESG Reporting
Guide 2.0, E5
34 31 28 23
Waste generation Tons • GRI: 306-3
• SDG: 12
372 274 211 190
Water consumption m
3
• GRI: 303-5
• SDG: 6
• Nasdaq (2019) ESG Reporting
Guide 2.0, E6
23,945 20,422 14,599 15,561
Ferrosan Medical Devices recognizes that our oper-
ations have a negative impact on the environment, and
weunderstandtherisksofadverseeffectsofourgreen-
house gas emissions on climate change. Energy con-
sumption, material usage, and transportation activities
are the primary sources of our environmental impact.
We acknowledge that climate change poses a long-term
risk to both society and our company, and we will act on
mitigating this risk. Ferrosan Medical Devices is commit-
ted to reduce emissions in line with the intention of the
Paris Agreement to limit global warming to well below 2°C
andpursuingeffortstolimititto1.5°C.
In 2022, we revised our environmental targets to align
them with the requirements and guidelines set by the
Science Based Targets initiative (SBTi). This ensures that
our targets remain in line with what the latest climate
science deems necessary to meet the goals of the Paris
Agreementandthatalldefinitionsusedarepublicly
available and unambiguous. It also makes target valida-
tion by SBTi possible if this would be considered relevant
for Ferrosan Medical Devices in the future. Consequently,
Ferrosan Medical Devices is committed to:
• Reducing scope 1 and 2 emissions at least 42% from
1,631 tons in 2021 (base year) to 946 tons in 2030.
• Reducing scope 3 emissions intensity at least 52%
from 16.8 tons per DKK 1 million in revenues in 2021
(base year) to 8.1 tons per DKK 1 million in revenues
in 2030.
• Reducing scope 1, 2, and 3 emissions to zero or to a
residual level no later than 2050 and neutralizing any
residual emissions thereafter.
Minimizing our environmental footprint
At Ferrosan Medical Devices, we share the concerns regarding
climate change and recognize the environmental impact of
our business. We are dedicated to reducing our environmental
footprint and aim to integrate this commitment into our daily
operations and decisions.
ENVIRONMENT
Relevant definitions:
CO2e, scope 1: Direct GHG emissions from owned or controlled sources, accounted for according to the GHG Protocol.
CO2e, scope 2: Indirect emissions due to purchase of electricity, heat, steam, etc. for use in owned and controlled activities, accounted for using the GHG Protocol.
Reporting is market-based. Location-based scope 2 emissions were 853 tons in 2021 and 600 tons in 2022.
CO2e, scope 3: Indirect emissions (not included in scope 2) that occur in the value chain, including both upstream and downstream emissions, accounted for using
the GHG Protocol.
Energy consumption: Total energy consumed from all sources, renewable and non-renewable sources, including energy purchased by the entity from external
sources and energy generated by itself. Leased vehicles, incl. cars paid for by the company but used by employees for commuting, are not in scope for 2019-2022.
Natural gas in m3 is multiplied by 0.03929 to convert to gigajoule. Electricity in kWh is multiplied by 0.00357 to convert to gigajoule.
Renewable energy share: Share of total energy consumption sourced from renewable energy sources. Renewable energy is any energy consumed by the entity from
geothermal, solar, sustainably sourced biomass (including biogas), hydropower and wind energy sources.
Waste generation: Weight of all waste generated, excl. hazardous substances. Data is reported by external waste management company.
Water consumption: Amount of all water consumed, based on billing information.
Notes: Reporting is done for sites where Ferrosan Medical Devices has operational control. This includes all (two) sites, in Poland and Denmark.
* When calculating the CO2 emissions for 2022 the calculations for 2021 were updated based on improved data quality. Consequently, the scope 3 emissions
for 2021 showed to be 8% lower than reported in last year’s annual report. Scope 1 emissions for 2021 were also reduced by 40 tons with the update.
** In the 2021 annual report an incorrect rate was used for converting natural gas consumption in m3 to gigajoule. This has been corrected in the above table
and the definitions.
Furthermore, we maintain our objective to procure 100%
of the electricity directly consumed by Ferrosan Medical
Devices from renewable sources by 2025. In 2023, we
will also explore what is needed to reduce our scope 1
and2atasignificantlyfasterpacethantheminimumre-
quirements by SBTi, to set a new more ambitious target.
Every year we calculate our CO2 emissions across scope
1, 2 and 3, and we are continuously adjusting the way we
operate to reduce our environmental footprint. In 2022,
we continued to source all electricity for our Danish site
from wind energy, adopted a company policy to electrify
ourcompanycarfleetandimplementedenergyoptimi-
zations at our sites.
From intention to action in 2023
Building on the baseline for monitoring and reporting
that was established in 2021 and 2022, going forward
must be about acting on reducing Ferrosan Medical
Devices’ environmental footprint.
To reduce our CO2 emissions, for 2023, we have initiated
effortstoconnectoursiteinSøborgtodistrictheating,
connect our site in Szczecin to renewable electricity, in-
troduce more sustainable sterilization methods for our
devices, change packaging materials, further enhance
the focus on sustainability in innovation, and collaborate
with our partners to move downstream transport from
air to sea.
In 2023, we will also expand the list of initiatives to mini-
mize our environmental footprint.
22
FERROSAN MEDICAL DEVICES GROUP A/S 2022 ANNUAL REPORT
To achieve long-term scope 3 emissions reductions, it is critical to make smart de-
cisions when developing new devices. In 2022, we introduced a set of principles for
sustainable innovation:
• Materials: Wedesignresource-efficientdevicesthatminimizematerialuseand
are made of materials with minimal carbon footprints.
• Packaging and transportation: We optimize packaging design and
configurationstominimizematerialuseandtransportation.
• Production and value chain: We seek to improve the environmental impact of
our entire value chain by cooperating with our suppliers on shared sustainability
ambitions.
• End-of-life: We design for recycling and waste minimization and strive for a
future with increased circularity of medical devices.
To employ the principles and enable more sustainable decision-making, we have
incorporatedatoolforquantifyingCO2emissionsresultingfromspecificdesign
choices. This tool is an integral part of our project stage-gate model.
23
SUSTAINABILITY AND IMPACT
SOCIAL
24
FERROSAN MEDICAL DEVICES GROUP A/S 2022 ANNUAL REPORT
In 2023, we are launching a
“Sustainable Wellbeing” program
“Being part of a company with a diverse
and budding culture combined with decades
of experience has aided my learning curve and
development significantly.
The culture at Ferrosan Medical Devices has made
me believe in the company’s ethos ’Care, Own, and
Win’ and provided a unique opportunity to grow and
shine professionally and personally. I am ecstatic and
proud to say that I have a sense of belonging in a
company with high ambitions and a desire to
contribute for the betterment of people.”
Alvish Bharatbhai Lunagariya
Plastic Engineer
25
SUSTAINABILITY AND IMPACT
GOVERNANCE
Relevant definitions:
Gender diversity, Board of Directors: Total board seats occupied by women, as compared to men. The 2022 result is based on the gender composition of the board
per December 31, 2022. Five new board members joined the Board of Directors on December 20, 2022.
Board Meeting Attendance Rate: Times where a board member is absent, compared to the number of board meetings multiplied by number of board members.
CEO pay ratio: Ratio of median compensation of all full-time employees employed in Denmark to CEO compensation. Compensation includes base salary, incentive
pay/bonuses, and pension.
26
FERROSAN MEDICAL DEVICES GROUP A/S 2022 ANNUAL REPORT
Daniel Moesby
Senior R&D Scientist
Arnab Halder
Senior R&D Scientist
27
SUSTAINABILITY AND IMPACT
Corporate matters
04
Susanne Hansen
Accounting Controller
Kirk Kapital, ATP, and the Lundbeck Foundation became new owners of Ferrosan Medical Devices in 2022. They
all recognize the great long-term potential of Ferrosan Medical Devices and are supportive of the continuation of the
recent direction of the company: continuing investments in manufacturing capacity in both Denmark and Poland;
capturing the potential of further geographical expansion and advancing development of new innovative medical
devices – enabling better surgical care for patients all over the world.
ThenewDanish-basedownershipprovidesolidhealthcareexperienceandexpertise,strongfinancialcapabilities,and
valuable continuity in the ownership.
Since2010,FerrosanMedicalDeviceshashaddifferentownersandSonionMedicalhasbeenaddedtothegroup:
Ownership
In 2022, a Danish consortium of long-term investors
became the new owners of Ferrosan Medical Devices.
Kirk Kapital increased its ownership to 40%, while ATP
and the Lundbeck Foundation both acquired 30% each.
“Kirk Kapital has been a 30%
shareholder in Ferrosan Medical Devices
since 2016, enabling me to closely follow the
company’s strong development for a number of
years. I am convinced that Ferrosan Medical Devices
has an exciting future ahead, continuing to develop
advanced medical devices capable of helping even more
patients in the years to come. I am delighted that Kirk
Kapital is now increasing its shareholding in Ferrosan
Medical Devices and that we have attracted such
skilled and prominent co-shareholders as ATP and
the Lundbeck Foundation.”
Kim Gulstad
CEO, Kirk Kapital
29
CORPORATE MATTERS
2012
Ferrosan Medical Devices
acquired Sonion Medical
from Sonion, expanding
our business to include
electromechanical
medical devices
A consortium of private
investors led by Hans-
Christian Bødker Jensen
and Fredrik Strömholm
acquired Ferrosan
Medical Devices
2016
2017
2022
The Nordic-based
investment company
Impilo acquired majority
control of Ferrosan
Medical Devices
2010
Ferrosan Medical Devices
was legally separated from
Ferrosan A/S and established
as an independent legal
entity under the ownership
of Altor Fund III
Ferrosan Medical Devices has a three-tier
management structure. The Board of Directors
appoints and supervises the Executive Board.
Withthechangeofownership,fivenewboard
members joined the Board of Directors at
Ferrosan Medical Devices: Kim Gulstad (Kirk
Kapital), Mia Bielecki (Boehringer Ingelheim
Pharma), Arne Due-Hansen (the Lundbeck
Foundation), Anja Bach Eriksson (ATP), and
Allan Rasmussen (Coloplast).
Thefivenewmembersjoinexistingboard
members Peter Kürstein (Chair of the Board)
andStaffanPercyTernström(Medicover).
The Executive Board consists of the CEO and
the CFO. The CEO and CFO are part of the
Group Executive Management. The Group
Executive Management has seven members
and is headed by the CEO. It is the Group
Executive Management that oversees the day-
to-day management of the company.
Board of Directors
Peter Kürstein - Chair
Peter Kürstein holds an MBA from Harvard Business School.
Peter was the CEO of Radiometer from 2004 to 2015 and he
served as Chair of the Board of Radiometer until 2021. In addition,
he holds several board positions with companies, such as Bavar-
ian Nordic A/S and Foss A/S and acts as an executive advisor for
the FSN equity fund.
Peter has been the Chair of the Board of Directors of Ferrosan
Medical Devices since 2016.
Anja Bach Eriksson
Anja holds an M.Sc. in Applied Economics & Finance from Copenha-
gen Business School.
Anja currently serves as Vice President of Long Term Danish Capital
at ATP. Anja has more than 15 years of experience from various
positionsinthefinancialsector,includingSampension,Dania
Capital, and Goldman Sachs. She also brings extensive experience
from the construction industry and a track record of professional
board work, having served as the Chair of the Board at M.J. Eriksson
Holding A/S and ANCOTRANS A/S, as well as Deputy Chair of Hus-
Compagniet.
Anja has been on the Board of Directors of Ferrosan Medical
Devices since 2022.
Allan Rasmussen
Allan holds a B.Sc. in Mechanical Engineering from the Technical
University of Denmark and an Executive MBA from the Scandinavi-
an International Management Institute (SIMI).
Allan brings more than 30 years of experience in medical devices
from Coloplast, where he is currently serving as the Executive Vice
President of Global Operations. He has held various roles through
his tenure at Coloplast in all parts of the value chain, starting as a
Mechanical Engineer and progressing to positions such as General
Manager, Director of Volume Production, Vice President of Corpo-
rate Procurement, and Senior Vice President of Global Operations.
Allan has been on the Board of Directors of Ferrosan Medical
Devices since 2022.
Mia Bielecki
Mia holds an M.Sc. in Chemistry from the University of
Copenhagen.
Mia has more than 20 years of experience in MedTech and
pharma R&D from her early career at Radiometer followed by a
long tenure at Novo Nordisk with various roles, which included
Vice President of Device Strategy & Process and Corporate Vice
President of Device Research. She currently holds the position
of Vice President, Global Device Development, Innovation Unit at
Boehringer Ingelheim.
Mia has been on the Board of Directors of Ferrosan Medical
Devices since 2022.
Kim Gulstad - Deputy Chair
Kim holds an M.Sc. in Applied Economics & Finance from
Copenhagen Business School.
Kim has been the CEO of Kirk Kapital since 2017 and has
more than 20 years of private equity and investment banking
experience from Nordic Capital and Goldman Sachs. At Nordic
Capital, he held several positions including Partner and Head
of Norway. He managed funds and investments in selected
companies across Northern Europe. Kim brings more than 15
years of experience from various board positions, mainly within
healthcare, software, and logistics including Falck A/S, VivoMega
AS, TACTON AB, Vizrt AS, DTE A/S and TITAN Containers A/S.
Kim has been on the Board of Directors of Ferrosan Medical
Devices since 2022.
Staffan Percy Ternström
StaffanTernströmholdsanM.Sc.inBusinessEconomicsfrom
Gothenburg School of Economics.
Staffanhasextensiveexperiencewithinhealthcarehavingworked
for 20+ years in the medical device franchise of Johnson & John-
son in close collaboration with Ethicon, Inc. He has held president
roles at Cordis and served as a Global Commercial Vice President
atMölnlyckeHealthcare.Since2018,Staffanhasactedasthe
Chair of the Board of Directors at Ondosis and served as the CEO
ofHandicarefrom2018-2020.Staffancurrentlyholdstheposition
of COO at Medicover.
StaffanhasbeenontheBoardofDirectorsofFerrosanMedical
Devices since 2018.
Arne Due-Hansen
Arne holds an MBA in Finance & Accounting from Copenhagen
Business School.
Arnebringsmorethan36yearsofexperienceinthefinancial
sector, starting his career at Alfred Berg. He then spent 16 years
at SEB Investment Banking, establishing activities in Denmark and
taking on roles, such as Head of Corporate Finance and Managing
Director. He most recently held the position of Senior Strategic
Advisor at Danske Bank before joining the Lundbeck Foundation
as Senior Vice President, Strategic Investments in 2022.
Arne has been on the Board of Directors of Ferrosan Medical
Devices since 2022.
30
FERROSAN MEDICAL DEVICES GROUP A/S 2022 ANNUAL REPORT
Group Executive Management
Rasmus Hother le Fevre
CEO
Rasmus holds an M.Sc. in Forestry at University of Copenhagen
and has received executive training at Wharton Business School,
Harvard Business School, and at IMD Business School.
Rasmus has had a career with various leadership positions
within Novo Nordisk and, most recently, as CEO of Novo Nordisk
Pharmatech.
Rasmus joined Ferrosan Medical Devices in March 2021.
Hans Henrik Pauk Pedersen
CFO
Hans Henrik holds an M.Sc. in Finance and Accounting from the
University of Southern Denmark.
Hans Henrik has more than 16 years’ experience in executive
leadershipandfinancialpositions,latestasCEOofVerisure
Denmark. Hans Henrik brings broad experience from banking and
financialinstitutions,combinedwithpreviousCFOandCEOroles
at Goodvalley.
Hans Henrik joined Ferrosan Medical Devices in February 2023.
Signe Munk
Vice President, New Business Development
Signe holds an Ph.D. in Industrial Biotechnology from DTU, the
Technical University of Denmark.
Signe has more than 20 years of experience in R&D and
innovation experience from previous positions as Vice President
of R&D at Novozymes and Hempel.
Signe joined Ferrosan Medical Devices in February 2019.
Nis Jørgensen
Vice President, Operations
Nis holds an M.Sc. in Economics and Business Administration from
Copenhagen Business School.
Nis has worked for Novo Nordisk for 22 years, most of the time
in various management positions within product supply, covering
API,componentandfinishedgoodsmanufacturing,supplychain
management, logistics, quality control, and local manufacturing.
Nis joined Ferrosan Medical Devices in June 2021.
Camilla Hudtloff
Vice President, Quality Management and Regulatory Affairs
Camilla has an M.Sc. in Biochemistry with a major in Neurobiology
from Copenhagen University.
Camilla comes with more than 25 years of experience from
various pharmaceutical and medical device companies such as
Novo Nordisk, Lundbeck, and Agilent.
Camilla Joined Ferrosan Medical Devices in January 2020.
Rasmus Iver Agesen
Vice President, Human Resources
Rasmus holds an M.Sc. in psychology from Copenhagen
University.
Rasmus brings 12 years’ experience from various roles within HR,
latest as HR Director in Novo Nordisk. His primary experience is
within strategic HR, leadership, organizational development, and
cultural transformation coming from senior HR roles in pharma
and management consulting in a broad range of industries.
Rasmus joined Ferrosan Medical Devices in June 2021.
Jacek Kurcin
Vice President, Electromechanics
Jacek holds an M.Sc. in Industrial Automation from the Technical
University in Szczecin.
Jacek brings more than 20 years of experience in operations and
quality and has held various manager roles at Sonion, Crown
Packaging, and Ferrosan Medical Devices. In his current role, Jacek
is responsible for managing Ferrosan Medical Devices’ facility in
Szczecin, Poland.
Jacek rejoined Ferrosan Medical Devices in December 2020.
31
CORPORATE MATTERS
Risk Management
Ferrosan Medical Devicescontinuouslyidentifies,evaluates,registers,prioritiz-
es, and mitigates business risks. We work systematically with risk management
to ensure that we are aware of possible unfavorable events that might impact
our business performance. We have a set methodology, an aligned process,
and a platform to ensure that we manage risks in a proactive manner.
Managing risks systematically is essential for us to create and protect value
creation.
It is the Group Executive Management team, led by the CEO and CFO, that is
responsibleforidentificationandmanagementofrisks.Thisincludesmaking
surethatourriskregisterisupdated,thatsignificantrisksareanalyzed,andthat
prioritized risks are mitigated. All departments are involved in risk management
–fromidentificationtomitigation.
Ferrosan Medical Devices is currently focused on three areas of risk:
Attracting and retaining the right talent remain critical to Ferrosan
Medical Devices for achieving our strategic objectives and realizing
our purpose of “making seconds count in surgical care”.
In 2022, we experienced a positive decline in employee turnover at
our site in Denmark, reaching an improved level. Employee turnover
at our Polish site is also declining, but remains at a high level. These
positivedevelopmentsdemonstratethatoureffortstoimprove
retention are working.
As a company operating in the rapidly growing life science industry
in Denmark, we recognize the challenges posed by a shortage of
talent and intense competition for skilled workers. Ferrosan Medical
Devices is committed to addressing these challenges and taking
proactive steps to attract and retain top talent.
To improve our ability to attract enough relevant talent, we continue
to allocate extra resources for recruitment, enhance our ability
to hire talents internationally, strengthen our partnerships with
universities, and extend the reach of our external communications.
ATTRACTION AND
RETENTION OF TALENT
Cybercriminal activity, such as cybercrime and cyberattacks, continues
to take place at an increasing rate. For Ferrosan Medical Devices, it is
critical to protect our company against cyberattacks and cybercrime to
preserve business continuity and safeguard sensitive data.
If Ferrosan Medical Devices is subject to malicious hacking, data leaks,
theft of intellectual property rights or similar, it can have extensive
negative consequences for us. For example, reputational damage,
costlymitigationandpossiblyregulatoryfines.
To reduce exposure to cybercrime and cyberattacks, we perform
an annual investigation and test of our security systems and IT
infrastructure with external partners. Through this process, we identify
and categorize potential security gaps and take prompt action to
address them. We carry out these exercises at our sites in both Poland
and Denmark.
We also have systems in place to always monitor our systems and
identify potential breaches. If a potential breach happens, we have
processes in place to take immediate action if needed. For this
purpose,wecollaboratewithcybersecurityexpertsandadvisoryfirms.
PROTECTION AGAINST
CYBERATTACKS AND CYBERCRIME
Delivering high-quality medical devices to our commercial partners is
the corner stone of Ferrosan Medical Devices’ business. As demand
for our devices continues to rise, we remain cautious of our mature
and manual manufacturing equipment, both internally and externally.
Ensuringsufficientcapacityinourmanufacturingandpreventing
equipment breakdowns are critical to maintaining business
continuity and protecting our reputation.
To ensure future operability and capacity, we developed an
operations strategy in 2022. This strategy involves an evaluation of
all internal and external processes based on capacity requirements,
robustness needs, and compliance levels. It also includes a long-term
plan for equipment upgrades and replacements.
We employ a structured and analytical approach to monitor
equipment and conduct preventive maintenance in our daily
operations.
OPERABILITY AND
CAPACITY IN MANUFACTURING
Ferrosan Medical Devices’ activities include
inherent risks, and the company will always
be exposed to risks, which may have a
negative impact on the financial results,
daily operations, and future growth.
32
FERROSAN MEDICAL DEVICES GROUP A/S 2022 ANNUAL REPORT
Kristina Berggren
Director, Project Execution Unit
Lenette Høg
Compliance Program Manager
33
CORPORATE MATTERS
Statements
05
Tina Pedersen
Principal Compliance Partner
Elise Pedersen
Junior Purchase Specialist
Executive Board
Board of Directors
Statement by management
35
STATEMENTS
Independent auditor’s report
36
FERROSAN MEDICAL DEVICES GROUP A/S 2022 ANNUAL REPORT
CVR No. 33963556
IdentificationNo(MNE)mne33276
37
STATEMENTS
Consolidated
financialstatement
07
Henning Igwebuike
Senior Design Engineer
DKK’000 Note 2022 2021
Revenue 4 810,291 720,355
Cost of sales (205,102 ) (157,797 )
Gross profit 605,189 562,558
Staffcosts 5 (197,637 ) (172,721 )
Other external expensens (85,997 ) (103,338 )
Earnings before interest, taxes, depreciation and
amortisation (EBITDA) 321,555 286,499
Depreciation 7 (17,901 ) (20,729 )
Earnings before interest, taxes and amortisation (EBITA) 303,654 265,770
Amortisation and impairment losses 7 (90,196 ) (79,252 )
Earnings before interest and taxes (EBIT) 213,458 186,518
Financial income 8 8,430 1,775
Financial expenses 9 (57,558 ) (52,819 )
Earnings before taxes (EBT) 164,330 135,474
Tax for the year 10 (27,476 ) (32,618 )
Earnings after taxes (EAT) 136,854 102,856
OTHER COMPREHENSIVE INCOME
Other comprehensive income that may be reclassified to profit or
loss in subsequent periods:
Exchangedifferencesontranslationofforeignoperations (303 ) 304
Value adjustment of hedging instruments 0 (2,148 )
Incometaxeffect 0 473
Other comprehensive income for the year, net of tax (303 ) (1,371 )
Total comprehensive income/loss 136,551 101,485
Statement of comprehensive income
Consolidatedfinancialstatements
39
CONSOLIDATED FINANCIAL STATEMENTS
DKK’000 Note 31/12/22 31/12/21
Share capital 18 5,157 4,905
Translation reserve 82 385
Retained earnings 614,995 556,419
Total equity 620,234 561,709
Deferred tax 10 209,738 214,810
Interest-bearing liabilites 19 873,234 750,200
Lease liabilities 14, 19 113,487 116,214
Total non-current liabilities 1,196,459 1,081,244
Interest-bearing liabilites 19 26,110 185,062
Lease liabilities 14 8,824 8,085
Trade payables 73,148 44,516
Current tax liability 10 33,500 33,292
Other payables 57,748 59,622
Total current liabilities 199,330 330,577
Total liabilities 1,395,789 1,411,801
Total equity and liabilities 2,016,023 1,973,510
DKK’000 Note 31/12/22 31/12/21
Completed development projects 11 19,436 7,222
Development project in progress 11, 12 79,710 50,710
Aquired intangible assets 11 887,977 953,942
Patents 11 2,891 1,043
Goodwill 11, 12 446,831 446,831
Property, plant and equipment 13 209,485 186,570
Right-of-use assets 14 115,861 119,844
Total non-current assets 1,762,191 1,766,162
Inventories 15 87,054 69,526
Trade receivables 16 127,585 107,291
Deferred tax 10 4,991 0
Other receivables 12,280 24,128
Prepayments 5,618 6,403
Cash 16,304 0
Total current assets 253,832 207,348
Total assets 2,016,023 1,973,510
Balance sheet
40
FERROSAN MEDICAL DEVICES GROUP A/S 2022 ANNUAL REPORT
DKK’000
Share
capital
Translation
reserve
Retained
earnings Total
2022
Balance at 1 January 4,905 385 556,419 561,709
Net Earnings after taxes (EAT) for the period 0 0 136,854 136,854
Exhangedifferencesontransationalofforeign
operations 0 (303) 0 (303)
Total other comprehensive income 0 (303) 0 (303)
Total comprehensive income for the year 0 (303) 136,854 136,551
TRANSACTIONS WITH OWNERS
Sale of treasury shares 0 0 3,658 3,658
Capital increase 252 0 39,143 39,395
Purchase of treasury shares and warrants 0 0 (121,079) (121,079)
Total transactions with owners 252 0 (78,278) (78,026)
Balance at 31 December 5,157 82 614,995 620,234
DKK’000
Share
capital
Translation
reserve
Hedging
reserve
Retain
earnings Total
2021
Balance at 1 January 4,905 81 1,675 461,881 468,542
Net Earnings after taxes (EAT) for
the period 0 0 0 102,856 102,856
Exhangedifferenceson
transational of foreign operations 0 304 0 0 304
Dissolution of reserves 0 0 (2,148) 2,148 0
Value adjustments of hedging
instruments 0 0 0 1,405 1,405
Incometaxeffect 0 0 473 0 (473)
Other comprehensive income 0 304 (1,675) 0 1,709
Total comprehensive income
for the year 0 304 (1,675) 105,936 104,565
TRANSACTIONS WITH OWNERS
Purchase of treasury shares and
warrants 0 0 0 (13,385) (13,385)
Sale of treasury shares 0 0 0 1,987 3,194
Total transactions with owners 0 0 0 (11,398) (11,398)
Balance at 31 December 4,905 385 0 556,419 561,709
Changes in equity
41
CONSOLIDATED FINANCIAL STATEMENTS
Cashflowstatement
DKK’000 Note 2022 2021
Earnings before interest and taxes (EBIT) 213,458 186,518
Depreciation, amortisation and impairment losses 7 108,097 99,981
Change in working capital 17 1,569 (32,311 )
Financial income received 8,430 1,775
Financial expenses paid (52,865 ) (54,798 )
Income taxes refunded/(paid) (37,300 ) (35,637 )
Cash flow from operating activities 241,389 165,528
Investments in intangible assets 11 (57,012 ) (28,489 )
Disposal of intangible assets 11 81 0
Investments in property plant and equipment 13 (48,699 ) (88,640 )
Disposal of property plant and equipment 13 7,072 0
Cash flow from investing activities (98,558 ) (117,129 )
Proceeds from borrowings 19 0 60,000
Repayment of interest-bearing liabilities 19 (909,152 ) (101,410 )
Incurrence of debt to related parties 19 873,234 0
Payment of principal portion of lease liabilities 14 (13,019 ) (12,383 )
Cash capital increase 39,395 0
Purchase of treasury shares and warrants 18 (121,079 ) (13,385 )
Sale of treasury shares 18 3,658 1,987
Cash flow from financing activities (126,963 ) (65,191 )
CHANGE IN CASH AND CASH EQUIVALENTS
Cash, 1 January 0 17,191
Theeffectofexchangeratechanges 436 (399 )
Netcashflow 15,868 (16,792 )
Cash 31 December 16,304 0
Notes
Accounting policies Property, plant and equipment
Fees paid to auditors appointed
at the annual general meeting
Share capital
Adoption of new and amended standards Leases
Depreciation, amortisation
and impairment losses
Interest-bearing liabilities
Critical accounting judgements and
key sources of estimation uncertainty
Inventories
Financial income Financial risks
Revenue Trade receivables
Financial expenses Guarantees, contingent liabilities and collateral
Staff costs Working capital changes
Tax for the year Related parties
Impairment of goodwill including
development projects in progress
Events after the reporting period
Intangible assets List of Group companies
1 13
4 16
7 19
10 22
2 14
5 17
8 20
11 23
3 15
6 18
9 21
12 24
42
FERROSAN MEDICAL DEVICES GROUP A/S 2022 ANNUAL REPORT
Notes
TheGroup’sconsolidatedfinancialstatementshave
been prepared in accordance with International
Financial Reporting Standards (“IFRS”) as adopted by the
EU and additional Danish disclosure requirements for
thefinancialstatementsofreportingclassCenterprises,
cf. the Danish Executive Order on Adoption of IFRSs
(“IFRSbekendtgørelsen”) issued in accordance with the
Danish Financial Statements Act (“DFSA”).
Basis of preparation
ThefinancialstatementsarepresentedinDanishkroner
(DKK). All amounts have been rounded to the nearest
DKK thousand, unless otherwise indicated.
Thefinancialstatementshavebeenpreparedonagoing
concern basis and in accordance with the historical cost
convention, except where IFRS explicitly requires use of
other values.
Forthepurposeofclarity,thefinancialstatementsand
thenotestothefinancialstatementsareprepared
using the concepts of materiality and relevance. This
means that line items not considered material in terms
of quantitative and qualitative measures or relevant to
financialstatementusersareaggregatedandpresented
togetherwithotheritemsinthefinancialstatements.
Similarly, information not considered material is not
presented in the notes.
The accounting policies, except as described below, have
beenappliedconsistentlyduringthefinancialyearand
forthecomparativefigures.
Basis of consolidation
The Consolidated Financial Statements comprise the
Financial Statements of Ferrosan Medical Devices Group
A/S (the Parent Company) and subsidiaries which are
entities controlled by Ferrosan Medical Devices Group
A/S. The Group controls an entity when it directly or
indirectly owns more than 50% of the voting rights or
mayotherwiseexerciseacontrollinginfluence.
Accounting policies
Principles of consolidation
The Consolidated Financial Statements are prepared
onthebasisofthefinancialstatementsoftheParent
Company and its subsidiaries.
The Consolidated Financial Statements are prepared
by combining items of a uniform nature and
subsequently eliminating intercompany transactions,
internal shareholdings and balances and unrealised
intercompanygainsorlosses.Thefinancialstatements
used for consolidation are prepared in accordance with
the Group’s accounting policies.
The line items of subsidiaries are recognised 100% in
the Consolidated Financial Statements. Investments
insubsidiariesareoffsetbytheinterest’sshareof
subsidiaries.
Accounting policies are described in full in this note
below.
Foreign currency translation
Transactions denominated in currencies other than
the functional currency are considered transactions in
foreign currency.
On initial recognition, transactions denominated in
foreign currencies are translated to the functional
currency at the exchange rates at the transaction date.
Foreign exchange rate adjustments arising between
the transaction date and at the date of payment are
recognisedinthestatementofprofitorlossinfinancial
incomeorfinancialexpenses.
Monetary assets and liabilities denominated in foreign
currencies are translated at the exchange rates at the
reportingdate.Thedifferencebetweentheexchange
rates at the reporting date and at the date of transaction
ortheexchangerateinthelatestfinancialstatementsis
recognisedinthestatementofprofitorlossinfinancial
incomeorfinancialexpenses.
1
Cash flow statement
Thecashflowstatementispresentedusingtheindirect
methodandshowscashflowsfromoperating,investing
andfinancingactivitiesfortheyearaswellasthe
Group’s cash and cash equivalents at the beginning and
endofthefinancialyear.
Cashflowsfromoperatingactivitiesarecalculatedbased
on Earnings before interest and taxes (EBIT), working
capitalchanges,financialexpensespaidandincometax
paid.
Cashflowsfrominvestingactivitiescomprisepayments
in connection with the acquisition and sale of non-
current intangible assets, property, plant and equipment,
andfinancialassets.
Cashflowsfromfinancingactivitiescomprisepayments
arising from changes in the size or composition of the
Group’s share capital and dividend paid. Cash and cash
equivalents comprise cash at bank and in hand.
Statement of profit or loss
Revenue
Revenue from sales of medical products are recognised
in the income statement when the performance
obligationisfulfilled.Thisisdefinedasthepointintime
when control of the good is transferred to the customer,
the amount of revenue can be measured reliably
and collection is probable. The transfer of control to
customers takes place according to agreed delivery
date. Furthermore, revenue is only recognised when it is
highlyprobablethatasignificantreversalintherevenue
amount will not occur.
Cost of sales
Cost of sales include costs of raw materials and
consumables incurred in generating the revenue for
the year. Within the cost of sales write-downs of the
inventories are included.
Other external expenses
Other external expenses include the period’s expenses
relating to the Group’s core activities, including expenses
relating to distribution, sale, advertising, administration,
premises, bad debts, low-value and short-term leases, etc.
Staff costs
Staffcostsconsistofsalariesandwages,bonuses,
pensions and social costs, vacation pay, and other
benefits.Salaries,bonuses,pensionsandsocialcosts,
vacationpay,andotherbenefitsarerecognisedinthe
year in which the associated services are rendered
by the employees. The Group has entered into
retirementbenefitschemesandsimilaragreements
withemployees.Contributionstodefinedcontribution
plansarerecognisedinthestatementofprofitorloss
in the period to which they relate and any contributions
outstandingarerecognisedinthestatementoffinancial
position as other liabilities.
Financial income and financial expenses
Financial income and expenses include interest income,
interest expense, amortisation of borrowing costs and
realised and unrealised exchange gains and losses.
Tax
Taxontheprofitorlossfortheyearcomprisesthe
year’s current tax and changes in deferred tax. The
taxexpenserelatingtotheprofitorlossforthe
yearisrecognisedinthestatementofprofitorloss,
and the tax expense relating to items recognised in
other comprehensive income and directly in equity,
respectively, is recognised in other comprehensive
income or directly in equity. Exchange rate adjustments
of deferred tax are recognised as part of the adjustment
of deferred tax for the year.
Current tax payable and receivable is recognised in
thestatementoffinancialpositionastheexpectedtax
on the taxable income for the year, adjusted for tax
paid on account. The current tax charge for the year is
calculated based on the tax rates and rules enacted at
thestatementoffinancialpositiondate.
43
CONSOLIDATED FINANCIAL STATEMENTS
Deferred tax is calculated using the liability method on
alltemporarydifferencesbetweentheaccountingand
taxable values of assets and liabilities.
Deferred tax assets are assessed yearly and only
recognised to the extent that it is more likely than
not that they can be utilised. Deferred tax assets,
including the tax value of tax losses carried forward, are
recognised as other non-current assets and measured
at the amount at which they are expected to be realised,
eitherbysettingoffdeferredtaxliabilitiesorbysetting
offtaxonfutureearningswithinthesamelegalentityor
a jointly taxed entity.
Deferred tax is measured based on the tax legislation
and statutory tax rates in the respective countries that
will apply under the legislation in force on the statement
offinancialpositiondatewhenthedeferredtaxasset
is expected to crystallise as current tax. Changes in
deferred tax resulting from changes in tax rates are
recognisedinthestatementofprofitorloss.
The Group recognises deferred tax assets relating
tolossescarriedforwardwhenManagementfinds
thatthesecanbeoffsetagainsttaxableincomeinthe
foreseeable future. An assessment is made taking into
considerationtheeffectofrestrictionsinutilisationin
local tax legislation. Future taxable income is assessed
based on budgets as well as Management’s expectations
regarding growth and operating margin in the coming
years.
The Group is included in national joint taxation with its
Parent Company’s (Implio No I AB) other subsidiaries.
The tax charge for the year is allocated between the
Danish jointly taxed companies in proportion to their
taxable income, taking into account taxes paid.
Balance sheet
Goodwill
Goodwill arising on the acquisition of a business is
carried at cost as established at the date of acquisition
of the business less accumulated impairment losses, if
any.
For the purposes of impairment testing, goodwill is
allocated to each of the Group’s cash generating units
(or groups of cash-generating units) that is expected to
benefitfromthesynergiesofthecombination.
A cash-generating unit to which goodwill has been
allocated is tested for impairment annually, or more
frequently when there is an indication that the unit
may be impaired. If the recoverable amount of the
cash-generating unit is less than its carrying amount,
theimpairmentlossisallocatedfirsttoreducethe
carrying amount of any goodwill allocated to the unit
and then to the other assets of the unit pro rata based
on the carrying amount of each asset in the unit. Any
impairmentofgoodwillisrecogniseddirectlyinprofit/
(loss).
An impairment loss recognised for goodwill is not reversed
in subsequent periods. On disposal of the relevant cash-
generating unit, the attributable amount of goodwill
isincludedinthedeterminationoftheprofit/(loss)on
disposal.
Other intangible assets
The useful lives of intangible assets are assessed as
finite.
Intangibleassetswithfinitelivesareamortizedover
the useful economic life and assessed for impairment
whenever there is an indication that the intangible
asset may be impaired. The amortisation year and the
amortisation method for an intangible asset with a
finiteusefullifearereviewedatleastattheendofeach
reporting year. Changes in the expected useful life or the
expected pattern of consumption of future economic
benefitembodiedintheassetareconsideredtomodify
theamortisationexpenseonintangibleassetswithfinite
livesarerecognisedinthestatementofprofitorlossin
the expense category that is consistent with the function
of the intangible assets.
Following the completion of assets they are amortised
on a straight-line basis over the estimated useful life
from the date when the assets are available for use. The
amortisation periods are:
Acquired patents 5-10 years
Acquired intangible asssets 20 years
Development projects
Developmentprojectsthatareclearlydefinedand
identifiable,wherethetechnicalfeasibility,sufficient
resources and a potential future market or development
opportunities are demonstrated, and where the Group
intends to complete and use the individual project, are
recognised as intangible assets provided that the cost
canbemeasuredreliablyandthatthereissufficient
assurance that future earnings or the net selling price
can cover production costs, selling and administrative
expenses and development costs. Other development
costs are recognised under other external expense
orstaffcostintheincomestatementasincurred.
Development projects are measured at cost less
accumulated amortisation and impairment.
Cost comprises external expenses as well as internal
directly related wages and salaries attributable to the
development project. Other development costs are
recognised in the income statement as they arise.
Rights and development expenses, which are recognised
in the balance sheet, are initially measured at cost and
subsequently at cost less accumulated amortisation and
impairment losses.
Following the completion of development work,
development costs are amortized on a straight-line basis
over the estimated useful life from the date when the
asset is available for use.
The amortisation period is:
Development projects 7 years
Gains and losses from sale of rights and development
projectsarecalculatedasthedifferencebetweenthe
sales prices less sales expenses and the carrying amount
at the date of sale. Gains and losses are recognised in
the income statement as other operating income or
other operating expenses, respectively.
Property, plant and equipment
Property,plantandequipmentcompriseotherfixtures
andfittings,toolsandequipmentandaremeasuredat
cost less accumulated depreciation and accumulated
impairmentlosses.Otherfixturesandfittings,toolsand
equipment are depreciated on a straight-line basis over
theexpectedusefullivesofthefinite-livedassets,which
are as follows:
Otherfixturesandfittings,
tools and equipment: 3-8 years
Plant and machinery: 8 years
Leasehold improvements: 5 years
Property, plant and equipment are tested for
impairment if indications of impairment exist. Property,
plant and equipment are written down to their
recoverable amount, if the carrying amount exceeds
the higher of the fair value less costs to sell and the
value in use. Depreciation and impairment charges are
recognisedinthestatementofprofitorloss.
Leases
The right-of-use asset is depreciated on a straight-line
basis over the shorter of the lease term and the useful
life of the asset.
44
FERROSAN MEDICAL DEVICES GROUP A/S 2022 ANNUAL REPORT
The Group leases properties which include a service
element in the payments to the lessor. This service is
deducted from the lease payment when measuring
the lease obligation. Where the Group cannot reliably
separate lease and non-lease items, it is considered a
single lease payment.
Short leases with a maximum lease term of 12 months
and leases where the underlying asset has a low value
arenotrecognisedinthestatementoffinancialposition.
Theleasetermisdefinedasthenon-cancellableperiod
of a lease together with periods covered by options
to extend the lease if it is reasonably certain that the
options will be exercised and periods covered by options
to terminate the lease if it is reasonably certain that the
options will not be exercised. A number of leases contain
extension and termination options in order to guarantee
operationalflexibilityinmanagingtheleases.
The lease obligation, which is recognised in “Lease
liabilities”, is measured at the present value of the
remaining lease payments, discounted by the Group’s
incremental loan interest rate, if the implicit interest
rate is not stated in the lease agreement or cannot
reasonably be determined. The lease obligation is
subsequently adjusted if:
• The value of the index or interest rate on which the
lease payments are based changes.
• There is a change in expectations related to the
exercise of options to extend or shorten the lease
period due to a material event or material change
in circumstances which are within the control of the
lessee.
• The lease term is changed as a result of exercising an
option to extend or shorten the lease term.
Subsequent adjustments of the lease obligation are
recognised as a correction to the right-of-use asset.
However, if the right-of-use asset has a value of DKK
0, a negative reassessment of the right-of-use asset is
recognisedinthestatementofprofitorloss.
Deposits
On initial recognition, deposits are measured at
fair value and subsequently at amortised cost less
impairment losses, if any.
Inventories
Inventories are measured at the lower of cost and net
realisable value. Net realisable value is the estimated
selling price in the ordinary course of business, based on
broker reports, observed site trades in the market and
other relevant input.
Trade receivables and other receivables
Trade receivables and other receivables are measured
at amortised cost less allowance for lifetime expected
credit losses.
To measure the expected credit losses, credit risk
for trade receivables and other receivables has been
based on an individual assessment. Trade receivables
andotherreceivablesarewrittenoffwhenallpossible
options have been exhausted and there is no
reasonable expectation of recovery.
The cost of allowances for expected credit losses and
write-offsfortradereceivablesandotherreceivables
arerecognisedinthestatementofprofitorlossinother
external expenses.
Prepayments
Prepayments comprise incurred costs relating to
subsequentfinancialyears.Prepaymentsaremeasured
at cost.
Interest-bearing liabilities
Interest-bearing liabilities are measured at amortised
cost.
Trade payables and other payables
Other payables include bonus and commission accruals,
vacation pay obligations, payroll taxes and VAT. Payables
are measured at cost.
The new and amended Standards and Interpretations
thathavebeenissued,butarenotyeteffective,upto
the date of issuance of the Group’s Financial Statements
are disclosed below. The Group intends to adopt these
new and amended Standards and Interpretations, if
applicable,whentheybecomeeffective.
The Group does not expect any material impact from the
issuedbutnotyeteffectiveIFRSstandardsthathavenot
been implemented.
Adoption of new and amended standards
2
45
CONSOLIDATED FINANCIAL STATEMENTS
Aspartofthepreparationofthefinancialstatements,
Management makes a number of accounting estimates
and assumptions as a basis for recognising and measur-
ing the Group’s assets, liabilities, income and expenses
as well as judgements made in applying the entity’s
accounting policies. The estimates, judgements and
assumptions made are based on experience gained
and other factors that are considered prudent by Man-
agement in the circumstances, but which are inherently
subject to uncertainty and volatility.
The assumptions may be incomplete or inaccurate,
and unforeseen events or circumstances may occur
forwhichreasontheactualresultsmaydifferfrom
the estimates and judgements made. The accounting
policiesaredescribedindetailinnote1tothefinancial
statements to which we refer.
Management considers the following accounting esti-
matesandjudgementstobesignificantintheprepara-
tionofthefinancialstatements:
Revenue are split in two types of products, as follows:
• Biomaterial Devices
• Electromechanical Devices
One customer which amounts to more than 10% of the total renveue on both 2021
and 2022.
Critical accounting judgements and
key sources of estimation uncertainty
Revenue
3 4
Impairment tests for goodwill
Goodwill is tested for impairment annually and when-
ever events or changes in circumstances indicate that
the carrying amount of goodwill has been impaired, for
example due to a changed business climate. In order to
determine if the value of goodwill has been impaired, the
cash-generating unit to which goodwill has been allo-
cated must be valued using present value techniques.
When applying this valuation technique, the Company
relies on a number of factors, including historical results,
business plans, forecasts and market data. This is further
described in Note 12. As can be deduced from this de-
scription, changes in the conditions for these judgments
andestimatescansignificantlyaffecttheassessedvalue
of goodwill.
DKK’000 2022 2021
Biomaterial Devices 737,297 671,630
Electromechanical Devices 72,994 48,725
Total 810,291 720,355
46
FERROSAN MEDICAL DEVICES GROUP A/S 2022 ANNUAL REPORT
Employment contracts for members of the Key
Management Personnel contain terms and conditions
that are common to those of their peers in similar
companies including terms of notice and non-
competitive clauses.
Share-based payment
The Company has issued 436,381 common stock
warrants to Executive Management, Board of Directors
and Other Key Management personnel of the Group at
the beginning of the year. Warrants were issued at fair
market value.
Staffcosts
5
DKK’000 2022 2021
Salaries 174,884 154,781
Pensions 17,136 15,905
Other social security costs 5,617 2,035
Total 197,637 172,721
Average numbers of employees during the year 360 345
KEY MANAGEMENT COMPENSATION
Board of Directors
Short-termemployeebenefits 1,276 963
Total compensentation of Board of Directors 1,276 963
Executive Management
Short-termemployeebenefits 6,432 5,870
Post-employmentbenefits 2,003 370
Total compensentation of Executive Management 8,435 6,240
Other Key Management personnel
Short-termemployeebenefits 10,278 11,542
Post-employmentbenefits 1,660 753
Total compensentation of Other Key Management personnel 11,938 12,295
Number of warrants 2022 2021
Outstanding 1 January 436,381 456,240
Granted during the period 0 23,298
Lost due to termination of employment 0 (43,157)
Exercised during the period 436,381 0
Outstanding 31 December 0 436,381
Number of warrants which can be exercised at balance sheet date 0 0
Weighted average contractual life (years) 0 2
Weighted average exercise rate 0 0
Executive Management possesses warrants in a Group
Company with controlling interest over Ferrosan Medical
Devices Group.
The common stock warrants are exercised due to a
change of control of the Group at 20 December 2022. The
Company’s share capital has been increased in order to
exercise the warrants. All warrants have been exercised
in 2022.
47
CONSOLIDATED FINANCIAL STATEMENTS
Fees paid to auditors appointed at the
annual general meeting
Depreciation, amortisation
and impairment losses
Financial income
Financial expenses
6
7
8
9
DKK’000 2022 2021
Statutory audit 487 474
Other assurance services 345 75
Tax and VAT advisory servives 302 170
Other services 1,320 128
Total 2,454 847
DKK’000 2022 2021
Amorisation of intangible assets 79,997 71,011
Depreciation and write-down of property, plant
and equipment 18,682 19,193
Loss from sale of intangible assets and property,
plant and equipment (781) 234
Depreciation of right-of-use assets 10,199 9,543
Total 108,097 99,981
DKK’000 2022 2021
Foreign currency gains 8,138 1,775
Otherfinancialincome 292 0
Total 8,430 1,775
DKK’000 2022 2021
Interest on interest-bearing debt 41,924 44,731
Interest on debt to related parties 404 0
Foreign currency losses and other adjustments 7,142 3,026
Otherfinancialexpenses 8,088 5,062
Total 57,558 52,819
48
FERROSAN MEDICAL DEVICES GROUP A/S 2022 ANNUAL REPORT
Tax for the year
10
DKK’000 2022 2021
TAX FOR THE CURRENT YEAR CAN BE SPECIFIED AS FOLLOWS:
Tax of the result of the year (27,476) (32,618)
Tax on other comprehensive income 0 473
(27,476) (32,145)
Current tax for the year income 37,143 42,764
Changes in deferred tax (8,932) (9,133)
Correction previous years (735) (1,701)
Regulation relating to previous years 0 215
27,476 32,145
Tax calculated as 22% of Earnings before tax 36,153 29,804
Foreign tax adjustment 0 148
Effectoftaxrateinforeignsubsidiaries (731) 0
130% tax deduction on development cost (3,408) (2,137)
Non tax deductable expenses 403 13
Interest deduction limitation 3,070 4,898
116% tax deduction on PPE (386) (183)
Regulation relating to previous years (735) 216
Non-capitalised tax assets (7,409) 318
Other adjustments 519 (932)
Effective tax 27,476 32,145
Effective tax rate (%) 17% 24%
DKK’000 2022 2021
DEFERRED TAX LIABILITIES, NET
Deferred tax 1 January 214,810 223,943
Deferredtaxfortheyearrecognisedinthestatementofprofitorloss (10,063) (8,661)
Deferred tax for the year recognised in other comprehensive income 0 (472)
Deferred tax 31 December 204,747 214,810
DEFERRED TAX IS RECOGNISED IN THE STATEMENT OF
FINANCIAL POSITION AS FOLLOWS:
Deferred tax (asset) 4,991 0
Deferred tax (liability) 209,738 214,810
Net, total 204,747 214,810
DEFERRED TAX CONCERNS:
Intangible assets 214,407 224,268
Tangible assets (6,358) (6,472)
Inventories 656 1,686
Other provisions (3,281) (871)
Payables 0 (3,801)
Tax losses carried forward (677) 0
Total 204,747 214,810
The group has a not recognized deferred tax asset related to carry-forward losses in Poland of 4,990 thousand DKK
(PLN3,141thousand)Thechangeinalltemporarydifferenceshaverecognizedinprofitandloss.
49
CONSOLIDATED FINANCIAL STATEMENTS
DKK’000
Completed
development
projects
Development
projects in
progress Patents Goodwill
Aquired
intangible
assets Total
2022
Cost at 1 January 43,731 50,710 1,478 446,831 1,324,540 1,867,290
Additions 0 47,908 2,273 0 6,831 57,012
Transfer 18,676 (18,908) 232 0 0 0
Disposals 0 0 0 0 (81) (81)
Cost at 31 December 62,407 79,710 3,983 446,831 1,331,290 1,924,221
Amortisation and
impairment losses at 1
January (36,509) 0 (435) 0 (370,598) (407,542)
Foreign exchange
adjustments 0 0 (2) 0 1 (1)
Transfer 749 0 (232) 0 (517) 0
Amortisation during the
year (7,294) 0 (423) 0 (72,280) (79,997)
Disposals during the year 83 0 0 0 81 164
Amortisation and
impairment losses at
31 December (42,971) 0 (1,092) 0 (443,313) (487,376)
Carrying amount at 31
December 19,436 79,710 2,891 446,831 887,977 1,436,845
DKK’000
Completed
development
projects
Development
projects in
progress Patents Goodwill
Aquired
intangible
assets Total
2021
Cost at 1 January 41,431 24,918 1,081 446,831 1,324,540 1,838,801
Additions 0 28,092 397 0 0 28,489
Transfer 2,300 (2,300) 0 0 0 0
Foreign exchange
adjustments 0 0 0 0 0 0
Cost at 31 December 43,731 50,710 1,478 446,831 1,324,540 1,867,290
Amortisation and
impairment losses at 1
January (33,399) 0 (134) 0 (303,022) (336,555)
Amortisation during the
year (3,134) 0 (301) 0 (67,576) (71,011)
Reversed amortisation 0 0 0 0 0 0
Disposals during the year 0 0 0 0 0 0
Foreign exchange
adjustments 24 0 0 0 0 0
Amortisation and
impairment losses at
31 December (36,509) 0 (435) 0 (370,598) (407,542)
Carrying amount at 31
December 7,222 50,710 1,043 446,831 953,942 1,459,748
Intangible assets
11
50
FERROSAN MEDICAL DEVICES GROUP A/S 2022 ANNUAL REPORT
Intangible assets (continued) Impairment of goodwill including development
projects in progress
11 12
Completed development projects relate to the devel-
opment of Biomaterial Devices products. Management
has an expectation of positive earnings from the project.
During 2022 the Group has continued the work with
ProductCertificates/approvalsrelatedtonewmarkets/
regions.
Furthermore, the Group has continued to develop new
products which could be used as a part of the surgical
area. It is Management expectation that these products
will be launched on new markets within 1-6 year.
It is Management’s assessment that the expected useful
Goodwill and development projects in progress are
tested for impairment once a year and more often in the
case of impairment indicators.
The recoverable amount is based on value is use, which
calculatedbymeansofexpectednet-cash-flowson
the basis of forecasts for 2023 – 2027 approved by
For impairment assessment purposes, assets are
grouped at the lowest levels for which there are largely
independentcashinflows(cash-generatingunits).Asa
result, some assets are tested individually for impair-
ment and some are tested at cash-generating unit level.
Goodwill from the acquisition of Ferrosan Medical Devic-
es A/S is by the management monitored at product level
and therefore allocated to Biomaterial Devices. However,
development projects in progress are split based on the
products.
lifeoftheassetswithandefiniteusefullife,aswellas
the expected future revenue streams from the assets,
aresufficienttocoverthevalueofrecogniseddeveloped
projects at the reporting date.
In addition, it is Management assessment that the Group
have the necessary competencies and have the intention
tofinalisedevelopmentprojectsinprogressasof31
December 2022.
the Board of Directors. The forecast for 2023 – 2027 is
based on the expected market development including
growth in the medical devices industry and expected
price levels.
The key asusumptions underlying the calculation of
recoverable amounts are:
All individual assets or cash-generating units are tested
for impairment in circumstances in which indicators of
impairmentareidentifiedandtherefore,thecarrying
amount may not be recoverable.
The carrying amount of goodwill is related to the one
cash-generating unit as follows:
DKK’000
Development
projects in
progres Goodwill Share
Biomaterial Devices 79,710 446,831 100%
Total 79,710 446,831 100%
2022
Revenue growth rates 2023 - 2027 9.4%
Growth rate in terminal period 2.0%
Discount rate before tax (%) 11.8%
Discount rate (WACC) 8.7%
51
CONSOLIDATED FINANCIAL STATEMENTS
DKK’000
Other fixtures
and fittings,
tools and
equipment
Plant and
machinery
Leasehold
improvement
Assets under
construction Total
2022
Cost at 1 January 52,258 74,391 14,205 145,585 286,439
Foreign exchange
adjustments 0 (127) 0 0 (127)
Additions 2,443 3,785 1,270 41,201 48,699
Disposals (6,736) (3,437) 0 (7,542) (17,715)
Transfer 11,181 5,351 5,917 (22,449) 0
Cost at 31 December 59,146 79,963 21,392 156,795 317,296
Depreciation at 1 January (29,799) (58,637) (10,987) (456) (99,869)
Foreign exchange
adjustments 0 107 0 0 107
Transfer (3,277) 6,646 (3,369) 0 0
Depreciation during the
year (6,829) (9,808) (2,045) 0 (18,682)
Reversal of depreciation 6,730 3,457 0 456 10,643
Depreciation at 31
December (33,175) (58,235) (16,401) 0 (107,811)
Carrying amount at 31
December 25,971 21,728 4,991 156,795 209,485
DKK’000
Other fixtures
and fittings,
tools and
equipment
Plant and
machinery
Leasehold
improvement
Assets under
construction Total
2021
Cost at 1 January 38,818 82,043 13,043 86,042 219,946
Foreign exchange
adjustments 0 (248) 0 287 39
Additions 2,006 1,059 707 84,868 88,640
Disposals (2,700) (11,481) 0 (8,007) (22,188)
Transfer 14,133 3,018 455 (17,605) 0
Cost at 31 December 52,258 74,391 14,205 145,585 286,439
Depreciation at 1 January (26,061) (66,725) (9,610) (456) (102,852)
Foreign exchange
adjustments 0 241 0 0 241
Reversal of depreciation 2,447 11,481 0 0 13,928
Depreciation during the
year (6,185) (3,634) (1,377) 0 (11,186)
Depreciation at 31
December (29,799) (58,637) (10,987) (456) (99,869)
Carrying amount at 31
December 22,459 15,764 3,218 145,129 186,570
Property, plant and equipment
13
52
FERROSAN MEDICAL DEVICES GROUP A/S 2022 ANNUAL REPORT
DKK’000 Property Cars Total
2022
Cost at 1 January 136,648 2,156 137,242
Additions 5,909 307 6,216
Cost at 31 December 142,557 2,463 145,020
Depreciation at 1 January (18,424) (536) (18,960)
Depreciation during the year (9,452) (747) (10,199)
Depreciation at 31 December (27,876) (1,283) (29,159)
Carrying amount at 31 December 114,681 1,180 115,861
2021
Cost at 1 January 136,648 594 137,242
Additions 0 1,562 1,562
Cost at 31 December 136,648 2,156 138,804
Depreciation at 1 January (9,212) (205) (9,417)
Depreciation during the year (9,212) (331) (9,543)
Depreciation at 31 December (18,424) (536) (18,960)
Carrying amount at 31 December 118,224 1,620 119,844
Leases
14
DKK’000 2022 2021
At 1 January 124,299 130,189
Additions 6,216 1,562
Accrual of interest 4,815 4,931
Payments (13,019) (12,383)
At 31 December 122,311 124,299
Non-current 113,487 116,214
Current 8,824 8,085
DKK’000 2022 2021
Depreciation expense of right-of-use assets 10,199 9,543
Interest expense on lease liabilities 4,815 4,931
Expense relating to short-term leases (included in
other external expenses) 0 0
Total amount recognised in the statement
of profit or loss 15,014 14,474
Thefollowingamountshavebeenrecognisedinthestatementofprofitorloss:
TheGrouphadatotalcashoutflowforleasesofDKK13,019thousand(2021:DKK12,383thousand).
TheGroupleasesofficesandleasetermsarenegotiatedonanindividualbasisandcontaindifferent
terms and conditions. As part of COVID-19, no rent concession has been received. The Group had
non-cash additions to right-of-use assets and lease liabilities of DKK 6,216 thousand in 2022 and DKK
1,562 thousand in 2021.
Carrying amounts of lease liabilities and movements during the period:
53
CONSOLIDATED FINANCIAL STATEMENTS
DKK’000 2022 2021
Raw materials 53,333 29,280
Goods under construction 20,942 15,715
Finished goods 17,305 29,021
Write-down inventories (4,526) (4,490)
Total at 31 December 87,054 69,526
DKK’000 2022 2021
Change in inventories (17,528) 4,969
Change in receivables and prepayments (7,661) (33,317)
Change in trade payables and other debt etc. 26,758 (3,963)
Total 1,569 (32,311)
DKK’000 2022 2021
ISSUED AND FULLY PAID-UP SHARES:
At 1 January 4,905 4,905
Capital increase 252 0
Share capital at 31 December 5,157 4,905
DKK’000 2022 2021
Trade receivables 127,585 107,291
Total 127,585 107,291
Inventories Working capital changes
Share capitalTrade receivables
15 17
1816
The Group has a material risks related to a single customer based on the amount of revenue
gained from that single customer. However, Management consider the risk limited based on a long-
cooperation with the customer as well as the current revenue-agreements with the customer. The
majority of the Group’s receivables are related to larger international companies with a solid solvency
and Management therefore see a very limited risk associated with trade receivables. The credit risk
exposure relating to dealing with other private counterparties is also estimated to be limited.
During the period DKK 36 thousand (2021: DKK 0 thousand) was recognized as an expense (a write-
down) in the income statement.
The Group holds treasury shares on the Parent company of DKK 121,565 thousand as of
31 December 2022 (31 December 2021: DKK 18,859 thousand).
At 31 December 2022, the share capital consisted of 5,156,814 (2021: 4,905,330) shares with a
nominal value of DKK 1. The share capital has been paid in full. The shares are not divided into classes
andcarrynorighttofixedincome.
54
FERROSAN MEDICAL DEVICES GROUP A/S 2022 ANNUAL REPORT
DKK’000 2022 2021
BORROWINGS
Non-current interest-bearing liabilities 986,721 866,414
Current interest-bearing liabilities 34,934 193,147
Total 1,021,655 1,059,561
DKK’000 Currency Interest rate
Average
interest rate
Carrying
amount
Bank loans DKK Floating 3,9% 935,262
Lease liabilities DKK Fixed 4% 124,299
Total as of
31 December 2021 1,059,561
DKK’000 Currency Interest rate
Average
interest rate
Carrying
amount
Bank loans DKK Floating 3.87% 26,110
Payables to related parties DKK Floating 3.17% 873,234
Lease liabilities DKK Fixed 4.00% 122,311
Total as of
31 December 2022 1,021,655
Interest-bearing liabilities Financial risks
19 20
Changes in lease liabilities are shown within note 14.
Categoriesoffinancialassetsandfinancialliabilitiesmeasuredatamortisedcost
Change in bank loans and payables to related parties
DKK’000 2022 2021
Liabilities at 1 January 935,262 976,672
Loans raised 873,234 60,000
Repayments (909,152) (101,410)
Accrued interest 0 0
Liabilities at 31 December 899,344 935,262
DKK’000 2022 2021
Prepayments 5,618 6,403
Receivables 139,865 131,419
Cash 16,304 0
Total assets 161,787 137,822
Interest-bearing loan, current 899,344 935,262
Lease liabilities 122,311 124,299
Trade payables 73,148 44,516
Other payables 57,748 59,662
Total liabilities 1,152,551 1,163,699
Total, net 1,314,338 1,301,521
Financial risk management
Asaresultofitsoperations,investmentsandfinancing,
Ferrosan Medical Devices Group A/S is exposed to
market risks in the form of changes in exchange rates
and interest rates, as well as credit risks and liquidity
risks.TheGroupoperateswithalowfinancialrisk
profile,suchthatinterestrateandcreditrisksonlyarise
with substantial changes to the company’s commercial
conditions. The company is exposed to changes in the
exchangeratesofUSdollarandPolishzłoty.
TheGroup’sfinancialrisksaremanagedcentrallyinthe
financefunctioninaccordancewiththeboard’sadopted
policy and instructions, which set guidelines and
frameworksforthecompany’sfinancialtransactions.
SincetheGroup’sfinancialinstrumentsmeasuredat
amortised cost are either short-term and/or exposed to
floatinginterestrates,Managementhasassessedthat
the carrying amount is a reasonable approximation of
fair value.
Interest risk
Current borrowing rates on payables to related parties
isfloatingandarebasedontheCopenhageninter-
bank rate plus a premium. If market interest rates
increased by one percentage point, the interest rate
sensitivity as calculated based on the loan balance to
related parties at year-end 2022 would lead to a yearly
increase in interest expenses of DKK 9,770 thousand. A
corresponding decrease in market interest rates would
have the opposite impact.
55
CONSOLIDATED FINANCIAL STATEMENTS
Financial risks (continued)
20
Credit risk
ItistheGroup’sassessmentthattheexposuretocreditriskisnotsignificant.
Impairment of receivables are immaterial in both 2022 and 2021.
Currency risk
The Group’s currency risks are not hedged. In all material aspects the
currency risk is related to USD and PLN.
Liquidity risk
The Group is monitoring the need of liquidity based on a ongoing basis. At
31 December 2022, the Group has an undrawn credit facility of DKK 132.2
million to ensure that the Group is able to meet its short term obligations.
ManagementconsiderstheGroup’screditavailabilitytobesufficientforthe
next 12 months.
ThetablebelowsummarisesthematurityprofileoftheGroup’sfinancial
liabilities based on contractual undiscounted payments which include
estimated interest payments. Floating interest payments on bank borrowings
have been determined applying a forward curve on the underlying interest
rate at the reporting date.
Thousand Assets Liabilities Net
USD 2,588 (313) 2,275
PLN 1,171 (4,836) (3,665)
DKK’000
Less than
3 months
3 to 12
months 1 to 5 years > 5 years Total
Carrying
amount
YEAR ENDED 31 DECEMBER 2022
Interest-bearing loans 26,110 0 0 873,234 899,344 899,344
Lease liabilities 2,206 6,618 36,808 76,679 122,311 122,311
Other payables 57,748 0 0 0 57,748 57,748
Trade payables 73,148 0 0 0 73,148 73,148
Total non-derivative
financial liabilities 159,212 6,618 36,808 949,913 1,152,551 1,152,551
YEAR ENDED 31 DECEMBER 2021
Interest-bearing loans 52,762 132,300 750,200 0 935,262 935,262
Lease liabilities 2,021 6,064 33,707 82,507 124,299 124,299
Other payables 15,328 28,429 0 15,865 59,622 59,622
Trade payables 44,516 0 0 0 44,516 44,516
Total non-derivative
financial liabilities 114,627 166,793 783,907 98,372 1,163,699 1,163,699
56
FERROSAN MEDICAL DEVICES GROUP A/S 2022 ANNUAL REPORT
Guarantees, contingent liabilities and collateral
Events after the reporting period
List of Group companies
Related parties
21
24
23
22
Contingent liabilities
The Parent Company participates in a Danish
joint taxation arrangement where Moon
Holdco ApS serves as the administration
company.
According to the joint taxation provisions of
the Danish Corporation Tax Act, the Parent
Company is therefore liable for income taxes
etc for the jointly taxed entities, and for
obligations, if any, relating to the withholding
of tax on interest, royalties and dividend for
the jointly taxed entities. The jointly taxed
entities’ total known net liability under the
joint taxation arrangement is disclosed
intheadministrationcompany’sfinancial
statements.
Fromthestatementoffinancialpositiondate
and until today, no further matters, which
wouldinfluencetheevaluationoftheAnnual
Report has occurred.
The immediate parent company is Moon
BidCo ApS; the ultimate parent company is
Moon HoldCo ApS.
Transactions with related parties mentioned
above relate to joint taxation payments,
management fee total less then DKK 425
thousand and intercompany loan (refer to
note 19). All transaction has been paid on
market conditions.
Other related parties
Other related parties of Ferrosan Medical
DevicesGroupA/Swithasignificantinfluence
comprise the Board of Directors and the
Executive Board and their related parties.
Remuneration is disclosed in note 5. There
werenootherrelatedpartiesidentified.
Shareholders Registered office Basis of influence
Impilo No I AB Sweden 50-66.66% (divested 20.12.2022)
Kirk Kapital Strategic
Investments A/S Denmark 33.33-49.99%
Hans-Christian Bødker Jensen Schweiz 10-14.99% (divested 20.12.2022)
Arbejdsmarkedets
Tillægspension Denmark 25-33.32% (acquired 20.12.2022)
Lundbeckfond Invest A/S Denmark 25-33.32% (acquired 20.12.2022)
Name Registered office % equity interest
ApS FMD III Søborg 100
Ferrosan Medical Devices Holding A/S Søborg 100
Ferrosan Medical Devices A/S Søborg 100
Ferrosan Medical Devices Sp. z.o.o. Szczecin 100
57
CONSOLIDATED FINANCIAL STATEMENTS
Parent company
financialstatements
08
Peter Bøge
Finance Business Partner
DKK’000 Note 2022 2021
Other external costs (2,812) (1,549)
Gross profit (2,812) (1,549)
Financial expenses from group enterprises (564) (6)
Earnings before taxes (EBT) (3,376) (6)
Tax for the year 2 743 342
Earnings after taxes (EAT) 3 (2,633) (1,213)
DKK’000
Share
capital
Retained
earnings Total
Equity beginning of year 4,905 798,061 802,966
Capital increase 252 39,143 39,395
Purchase of treasury shares 0 (121,079) (121,079)
Earnings after tax (EAT) 0 (2,633) (2,633)
Equity end of year 5,157 713,492 718,649
DKK’000 Note 2022 2021
Investment in subsidiaries 810,201 810,201
Financial assets 4 810,201 810,201
Fixed assets 810,201 810,201
Joint taxation receivables 743 343
Receivables 743 343
Cash and cash equivalents 132 306
Total current assets 875 649
Total assets 811,076 810,850
DKK’000 Note 2022 2021
Share capital 5,157 4,905
Retained earnings 713,492 798,061
Total equity 718,649 802,966
Trade payables 203 102
Payables to Group entities 91,944 7,674
Other payables 280 108
Total current liabilties 92,427 7,884
Total liabilities 92,427 7,884
Total equity and liabilities 811,076 810,850
Statementofprofitorloss
Changes in equity
Balance sheet
Parentcompanyfinancialstatements
59
PARENT COMPANY FINANCIAL STATEMENTS
General
The separate Parent Company Financial Statements
have been incorporated in the Annual Report because
aseparatesetoffinancialstatementsisrequiredfor
the Parent Company under DFSA requirements for
annual reports of reporting class C (larger) enterprises.
The Company is required to apply the requirements for
reporting class C (Larger) enterprises in accordance to
DFSA.
ThefinancialstatementsarepresentedinDanishkroner
(DKK), which is also the functional currency of the
company.
Changes in accounting policies
The accounting policies are unchanged from last year.
Differences relative to the Group’s accounting policies
The parent company’s accounting policies for recognition
and measurement are in accordance with the Ferrosan
Medical Devices Group A/S consolidated accounting
policies with the following exceptions:
Income statement
Results of investments in subsidiaries
Dividends from investments in subsidiaries are
recognisedintheparentcompany’sfinancialstatements
whentherighttothedividendfinallyvests,typicallyat
the date of the company’s approval in general meeting of
the dividend of the company in question less any write-
downs at the investments.
Summaryofsignificantaccountingpolicies Tax
Proposeddistributionofprofitandloss
Balance Sheet
Investments in subsidiaries
Investments in subsidiaries are measured at cost. Where
the recoverable amount of the investments is lower than
cost, the investments are written down to this lower
value. In addition, cost is written down to the extent that
dividends distributed exceed the accumulated earnings
in the company since the acquisition date. In the event
of indications of impairment, an impairment test is
performed of investments in subsidiaries. Capitalisation
of development cost.
Other accounting information
Cash-flow Statement
Referringtosection86(4)ofDFSA,nocashflow
statement have been prepared.
1 2
3
2022 2021
Refund in joint taxation arrangement (743) (342)
Change in deferred tax 0 0
Adjustments prior year 0 0
Tax for the year (743) (342)
2022 2021
Dividend 0 0
Retained earnings (2,633) (1,213)
Earnings after tax (EAT) (2,633) (1,213)
60
FERROSAN MEDICAL DEVICES GROUP A/S 2022 ANNUAL REPORT
Contingent liabilities
The Parent Company participates in a Danish joint taxa-
tion arrangement where Moon Holdco ApS serves as the
administration company.
According to the joint taxation provisions of the Danish
Corporation Tax Act, the Parent Company is therefore
liable for income taxes etc. for the jointly taxed entities,
and for obligations, if any, relating to the withholding
of tax on interest, royalties and dividend for the jointly
taxed entities. The jointly taxed entities’ total known net
liability under the joint taxation arrangement is disclosed
intheadministrationcompany’sfinancialstatements.
Related parties with controlling interest
Thefollowingcompanieshascontrollinginfluence:
• Moon HoldCo ApS, Sydmarken 5, 2860 Søborg.
• Moon MidCo ApS, Sydmarken 5, 2860 Søborg.
• Moon BidCo ApS, Sydmarken 5, 2860 Søborg.
Financial assets Guarantees, contingent liabilities and collateral
Related parties
Collateral
The Group has provided security for the entire bank loan
withinvestmentsinaffiliatedcompanies.Thecarrying
amount of the investments in the “nearest” subsidiary
amounts to DKK 810,201 thousand per 31 December
2022. The total draw on bank facilities in the group
amounts to DKK 27.7 million per 31 December 2022.
Related party transactions
The annual report only discloses transactions with
related parties that have not been carried out on
market terms.
No such transactions were completed during the
financialyear.
4 5
6
DKK’000
Investment in
subsidiaries
2022
Cost at 1 January 810,201
Cost at 31 December 810,201
Carrying amount at 31 December 810,201
61
PARENT COMPANY FINANCIAL STATEMENTS
DK-2 860 Søborg
Business Registration No.: 37 80 83 42
Registered office: Gladsaxe
Financial
year:
January
1,
2022
to
December
31,
2022
Board
of
Directors
Peter Henrik Kürstein-Jensen, Chair
Kim Gulstad, Deputy Chair
Mia Bielecki
Anja Bach Eriksson
Arne Due-Hansen
Allan Bjørn Rasmussen
Staffan
Percy
Ternström
Executive
Board
Rasmus Hother le Fevre, CEO
Hans Henrik Pauk Pedersen, CFO
Auditors
Deloitte Statsautoriseret Revisionspartnerselskab