Annual Report 2018
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ANNUAL REPORT ROYAL GREENLAND A/S JANUARY 1ST 2018 - DECEMBER 31ST 2018 ANNUAL REPORT Royal Greenland A/S 2018January 1st - December 31st CVR-No. 13645183 The annual report has been prepared and approved by the ordinary Annual General Meeting on April 30th 2019 Peter Schriver Chairman ANNUAL REPORT 4 5 ROYAL GREENLAND A/S - 2018 FISHERY PRODUCTION QUALITY SALES IN THE KITCHEN THE GROUP'S REPORT We fish in large areas of the At our factories and landing The supply of high-quality We have a well-consolidated Our products are used in many North Atlantic and in the Arctic, facilities, local fishermen and products is the core of our sales and distribution network different cultures, with various VALUE CHAIN with our own fleet and in our own fleet land their daily business. We take responsibility to consign products from flavour preferences, and end Statement by the Management on the Annual Report - 6 collaboration with independent catches of fish and shellfish. for our products, from sea to various locations in Greenland, up as healthy, tasty meals in fishermen. The raw materials are table, and hold certifications in Newfoundland, Quebec, homes, canteens and restau- Auditors' report - 6 processed and packed. accordance with Denmark and Germany to rants all over the world. Financial highlights and key ratios for the Group - 8 international standards. customers throughout the world. North Atlantic activities continue to advance – in a challenging world - 11 Financial statements - 12 Strong earnings in a challenged market - 14 New products and innovation - 20 Value optimisation in fisheries and production - 23 High level of well-documented food safety, from sea to table - 30 Risks - 33 Sustainability - 34 CONSOLIDATED AND ANNUAL ACCOUNTS Accounting policies - 50 Income statement January 1st 2018 – December 31st 2018 - 55 Balance sheet December 31st - 56 Statement of changes in equity - 58 Consolidated cash flow statement January 1st 2018 – December 31st 2018 - 59 Notes to the financial statements - 60 Supervisory and Executive Board - 72 Corporate Governance - 73 Company details - 74 Group chart - 75 Production units -76 Royal Greenland's fleet - 82 The pictures in the annual report mainly derive from Royal Greenland’s internal archive ANNUAL REPORT 6 7 ROYAL GREENLAND A/S - 2018 Statement by the Management Executive board Supervisory board on the Annual Report The Supervisory and Executive Boards have today considered and adopted the Annual Report of Royal Greenland A/S for the financial year from January 1st 2018 to December 31st 2018. The annual report is presented in accordance with the Danish Finan- Mikael Thinghuus Bruno Olesen Niels de Coninck-Smith Sara Heilmann Malik Hegelund Olsen cial Statements Act. CEO CHAIRMAN In our opinion, the Group financial statements and the annual report give a true and fair view of the Group and company's assets, liabili- ties and financial position on December 31st 2018 and of the results of the Group's and the company's operations and the Group's cash Nils Duus Kinnerup Lars Nielsen Jan H. Lynge-Pedersen Tim Ørting Jørgensen Niels Ole Møller flow for the financial year January 1st - December 31st 2018. CFO DEPUTY CHAIRMAN It is also our opinion that the management report provides a true and fair review of development of the Group and the company's activities and financial affairs, the year's profits and losses and for the Group and the company's financial position. Pernille Fabricius Åse Aulie Michelet Mika Heilmann We recommend the Annual Report for adoption by the Annual General Meeting. Malmø, March 26th 2019 The independent auditor's audit report Furthermore, the management is responsible for any internal controls it - Obtain an understanding of the internal control relevant to the audit in Statement on the management report deems necessary in the preparation of financial statements that are free order to design audit procedures that are appropriate in the circum- The management is responsible for the management report. To the shareholders in Royal Greenland A/S from material misstatement, whether due to fraud or error. stances, but not for the purpose of expressing an opinion on the Our conclusion on the financial statements does not include the manage- effectiveness of the company’s internal control. Conclusion In preparing the financial statements, management is responsible for ment report, and we do not express any form of conclusion or assurance We have audited the Group financial statements for Royal Greenland A/S assessing the Group and the company’s ability to continue as a going - Evaluate the appropriateness of the auditing policies used by the man- about the management report. for the financial year 1 January – 31 December 2018, which comprise concern; to disclose, as applicable, matters related to a going concern agement, as well as the reasonableness of accounting estimates and In connection with our audit of the financial statements, it is our respon- accounting policies, income statement, balance sheet, statement of and using the going concern basis of accounting in preparing the financial related disclosures made by management. sibility to read the man-agement report and in this context to consider changes in equity and notes for both the Group and the company, in statements unless management either intends to liquidate the Group or - Conclude on the appropriateness of management’s use of the going whether the management report is substantially inconsistent with the addition to a cash flow statement for the Group. The Group financial company or to cease operations, or has no realistic alternative but to do so. statements and the annual report have been prepared in accordance with concern basis of accounting in preparing the financial statements, and, financial statements or the information obtained from the audit or other- the Danish Financial Statements Act. Auditor's responsibilities for the audit of the financial statements based on the audit evidence obtained, whether a material uncertainty wise appears to contain material misstatements. Our objectives are to obtain reasonable assurance about whether the exists related to events or conditions that may cast significant doubt on It is also our responsibility to consider whether the management report In our opinion, the Group financial statements and the annual report give financial statements as a whole are free from material misstatement, the Group and company’s ability to continue as a going concern. If we includes the information required in accordance with the Danish Financial a true and fair view of the Group and company's assets, liabilities and whether due to fraud or error, and to issue an audit report with a conclude that a material uncertainty exists, we are required to draw at- Statements Act. financial position on 31 December 2018 and of the results of the Group's conclusion. Reasonable assurance is a high level of assurance, but is not tention in our auditor’s report to the related disclosures in the financial and the company's operations and the Group's cash flow for the financial a guarantee that an audit conducted in accordance with international statements or, if such disclosures are inadequate, to modify our opinion. Based on the work we have conducted, we conclude that the manage- year 1 January - 31 December 2018, in accordance with the Danish standards on auditing and the additional requirements applicable in Our conclusions are based on the audit evidence obtained up until the ment report is in accordance with the financial statements and has been Financial Statements Act. Greenland will always detect a material misstatement when it exists. date of our auditor's report. However, future events or conditions may prepared in accordance with the requirements of the Danish Financial Basis for the conclusion Misstatements can arise from fraud or error and are considered material mean that the Group and company can no longer continue as a going Statements Act. We did not find any material misstatements in the We have conducted our audit in accordance with international standards if, individually or in the aggregate, they could reasonably be expected concern. management report. to influence the economic decisions of users taken on the basis of these on auditing and the additional requirements applicable in Greenland. Our - Evaluate the overall presentation, structure and contents of the financial Malmø, March 26th 2019 financial statements. responsibilities under these standards and requirements are described in statements, including the notes, as well as whether the financial state- EY Grønland more detail in the "Auditor's responsibilities for the audit of the Group As part of an audit conducted in accordance with international standards ments represent the underlying transactions and events in a manner financial statements and annual report" (referred hereinafter as 'the on auditing and the additional requirements applicable in Greenland, we that gives a true and fair view. Godkendt Revisionsanpartsselskab financial statements'). We believe that the audit evidence we have ob- exercise professional judgement and maintain professional scepticism CVR-nr: 33 94 61 71 - We have obtained sufficient and appropriate audit evidence for the tained is sufficient and appropriate to provide a basis for our conclusion. during the audit. We also: financial information for the companies or business operations in the Independence - Identify and assess the risks of material misstatement of the financial Group to be able to form a conclusion about the Group financial state- We are independent of the Group in accordance with the international statements, whether due to fraud or error, design and perform audit ments. We are responsible for directing, supervising and conducting the code of ethics for professional accountants (IESBA Code) and the addi- procedures responsive to those risks, and obtain audit evidence that Group audit. We are solely responsible for our audit conclusion. Claus Hammer-Pedersen - State-authorised public accountant tional requirements applicable in Greenland, and we have fulfilled our is sufficient and appropriate to provide a basis for our conclusion.