Annual Performance
Our vision Nemko makes the world a safer place by safeguarding
products, the environment, people and systems.
Values Our values safeguard the way we work: • Integrity •
Competent • Caring • Improving
Mission statement Nemko creates value by being a customer- oriented
and knowledge-driven company. Profitable growth is achieved by
assisting our customers with testing, certification and
international market access for electrical products.
Ethical policy The Nemko Group ethical policy is anchored in our
business strategy, our leadership principles and our values. All
the business units across the globe have given input to the policy
and it guides us in our everyday way of working and in our
interaction with all stakeholders.
Message from the CEO 4
Highlights 2016 5
Our services 8
An excerpt of certifications and marks 13
Nemko Direct for Energy Efficiency 14
Our commitments 16
Group management 17
Ownership structure 19
Companies around the world trust Nemko to assess their products,
systems, installations and personnel for conformity with relevant
standards and regulations.
Since 1933, we have ensured that our customers comply with
requirements anywhere in the world. Our services include
pre-compliance, international approvals, product and system
certifications as well as product testing.
Through our offices, laboratories and extensive partner network in
Asia, North America, Europe, Middle East and Africa we are able to
serve our customers in a reliable, efficient and open manner. We
provide local presence coupled with global knowledge.
One world - our approval
Following our clients all the way 2016 was a year that continued to
prove our value as a partner for some of the world´s strongest
brands in consumer electronics. As our clients enter new markets
and must relate to new regulations, we help them optimise their
time to market.
In 2016 Nemko qualified as Notified Body to certify electrical
products in the Arabic Gulf Region. To prepare our clients for this
market and the increased demand for
Energy Efficiency-marking, we established a proprietary calorie
chamber for energy testing in South Korea.
Furthermore, as the Indian market gains momentum, it attracts
attention from our clients. With an annual growth rate of about 7%,
the fast growing middle class of India represents one of the most
attractive business opportunities today. But the increase in
regulations specific to the Indian market makes a demanding
business environment even more complex. In June 2016 we established
a new office in Delhi. Here, we will adress the Indian compulsary
registration scheme (CRS) with a proprietary test laboratory.
A global, consistent testing environment Last year saw an increased
focus on our testing facilities. With time being critical,
potential flaws in new products must be revealed at an early stage.
This accentuates the need for integrated testing and inspection
services as a global service. In order to provide consistent high
quality lab-services throughout our markets, we recognised our lab
responsible Tore Ledaal as part of the group management. This role
will contribute to a unified, best practice testing environment
that meets the requirements of our global clients.
The internet of regulated things As everything from fridges to
loud- speakers and sports equipment are connected online, they also
become subject to new regulations. Only 3 years
ago, who would have considered a tennis racket in terms of EMC
compliance? The increased connectivity opens a world of
opportunities, but also unexpected issues related to compliance.
Manufacturers that are unfamiliar with EMC regulations represent a
new segment for TIC industry, and we believe that our role as
advisor and facilitator will be highly valued.
Market outlook Nemko is part of one of the best performing
industries over the last 10 years, and a number of factors strongly
indicate sustainable growth in the years to come. The non-cyclical
nature of the TIC business, high market barriers and increasingly
complex business models are among these factors. Also, an
increasing number of standards, regulations and safety requirements
motivate the trend towards outsourcing of testing and certification
services.
At Nemko, we are proud to be part of a quality-focused and customer
centric culture that moves fast. This is reflected in our annual
customer satisfaction survey, showing that 85% of our clients are
satisfied or very satisfied with our services. I would like to
thank all our employees, customers and partners for making 2016 a
successful year. Together, we are well prepared for an exciting
2017.
Svein Ola Ulven President & CEO
THE NEED FOR SPEED
In a world where new regulations are introduced at a pace rivalled
only by new product launches, compliance and time to market is a
business critical combination. As the world´s third largest CB
certification body, Nemko is a leading TIC player in the market for
electrical products – thus playing an important role in our
clients’ effort to stay ahead of the competition. Flexibility and
agility combined with a high sense of quality are the keys to our
success.
4 NEMKO ANNUAL PERFORMANCE 2016
5NEMKO ANNUAL PERFORMANCE 2016
REGULATIONS related to energy and environment are becoming an
increasingly more important factor in the global industry. In order
to support our customers better, we have launched a new leg in our
market access portfolio; Nemko Direct for Energy Efficiency.
NEMKO has been appointed as a certification body for the gulf
region and can now issue the G-mark to our customers, planning to
sell their products, in Kuwait, Bahrain, Oman, Qatar, Saudi Arabia,
Yemen and the United Arab Emirates (UAE).
NEMKO is now able to offer OSHA/ NRTL (USA) and cNemko (Canada)
certificates for the new hazard based bi-national standard UL/CSA
62368-1. The Nemko electrical safety programme for North America’s
scope includes the Information Technology/Audio-Video category
(60950-series, 60065-series, and 62368-series), the Household
category (60335-series plus other UL/ CSA national standards), the
Medical category (60601-series), and the Test and Measurement
category (61010-series).
FEEDBACK from our annual customer survey shows that 85% of our
customers are very satisfied or satisfied with Nemko’s
services.
12% GROWTH within our International Approval services shows our
ability to help our customers globalise their products and to be a
more integrated part of their value chain.
THE ENERGY testing laboratory of Nemko Korea is now accredited to
standard ISO/IEC 17025 by TAF (Taiwan Accre ditation Foundation),
to perform energy measurement of electrical household appliances
such as air conditioners and refrigeration equipment for our
customers.
A NEW ROLE in the Nemko Group, Senior Vice President Group Labs,
has been established to further improve and strengthen our delivery
to customers.
NEMKO CANADA has been qualified by the Canadian Governmental
Control Goods Program (CGP). This program extends the services of
Nemko Canada to cover military and other governmental EMC testing
contracts, e.g. testing of equipment for ships, which is already in
process.
NEMKO launched a branding campaign in Norway to further improve our
positioning in the market. The campaign “Approved by Nemko”
included a campaign page that showcased some of the most iconic
products we have certified over the years. It was well received by
consumers as well as customers. Visit the campaign page at
www.approvedbynemko.com (In Norwegian).
NEMKO is honored to have been chosen by the Norwegian Directorate
for Civil Protection (DSB) to assist on a Market Surveillance
project that requests testing of electrical products according to
the relevant standards and directives.
We take great pride in improving public awareness on the importance
of safety of electrical products and are very happy to see DSB’s
commitment towards the same goal. Nemko was also chosen by the
Norwegian Water Resources and Energy Directorate (NVE) to perform
market surveillance in connection with the eco-design and energy
labeling directive. We are proud and humbled to have been chosen to
help consumers make better choices when it comes to energy
efficient and, in many instances, also cost effective
products.
NEMKO’S Next Generation Leaders Programme was successfully
launched. The programme was initiated to prepare the future leaders
in Nemko for the challenges and possibilities that lay ahead. Close
to 20 participants from all around the world have completed the 4
modules. The programme has resulted in improved cooperation across
markets and departments, developing our future leaders to serve our
customers better.
HIGHLIGHTS 2016
6 NEMKO ANNUAL PERFORMANCE 2016
USA AND CANADA Nemko is now able to offer NRTL and cNemko
certificates for the new hazard-based standard.
Nemko extended the NRTL scope to also include
household products. Other categories are IT/AV,
Medical Equipment and Test and measurement.
NORWAY Nemko maintains the position as the world´s
third largest CB certification body.
ARABIC GULF REGION Nemko qualified as Notified Body to
certify
electrical products in the Arabic Gulf Region.
INDIA Nemko established an office in Delhi, India.
SOUTH KOREA Nemko established a proprietary calorie
chamber for energy testing in South Korea.
02
product according to applicable
according to a standard.
various schemes.
or manufacturer qualification
according to country-specific
INDUSTRIES WE SERVE
Europe
REVENUE PER REGION
10,0 %
5,0 %
0,0 %
NEMKO NO.3 IN GLOBAL CB RANKING
• The CB scheme has grown by 10.8% from 2015 to 2016
• No.1 position within audio/video and no. 2 position within
household appliances
27%
24%
11NEMKO ANNUAL PERFORMANCE 2016
KEY FIGURES
Nemko (0470)
OTHER RECOGNITIONS AND ACCREDITATIONS
Member body of the European EEPCA/ECS (ENEC and CCA schemes):
The Nemko Group holds the following national accreditations •
Testing and calibration according to ISO/IEC 17025 • Product
certification according to ISO/IEC 17065 • Management system
certification according to ISO/IEC 17021 • Personnel certification
according to ISO/IEC 17024 • Inspection according to ISO/IEC
17020
Also, some of the labs have special accreditations by Russian
ROSSTANDART, Taiwanese BSMI, Korean NRRA, Australian NATA, German
ZLS, Canadian SCC and US OSHA.
12 NEMKO ANNUAL PERFORMANCE 2016
AN EXCERPT OF CERTIFICATIONS AND MARKS
E
Regulations related to energy and environment are becoming an
increasingly important factor in the global industry.
As a growing number of countries apply their own regulations to new
products and components, the compliance process gets more complex.
So how do you know your products comply before entering a new
market?
NEMKO KNOWS.
Through our subsidiaries and a network of local partners, Nemko has
profound and updated knowledge of relevant rules and regulations.
With Nemko Direct for Energy Efficiency, we take care of all the
practical details so you can get your product out to the
markets.
NEMKO DIRECT FOR ENERGY EFFICIENCY
35 countries
780 million
7 countries
450 million
3 countries
470 million
9 countries
345 million
21 countries
Guidance in obtaining
Handle final approval documents
Through our service, we can help you comply with/obtain the
following:
Europe ErP Directive, Energy Labeling Directive, Eco Label, TCO
Development, Nordic Swan and more
Asia Korean Energy Label, China Energy Label, Vietnam Energy
marking, Singapore Green Label, HK EELS and more
America Energy Star, CEC, NRCAN, Mexican energy labeling and DOE
(Department of Energy)
Oceania Australian E3Program, New Zealand Energy rating
program
MENA Saudi Arabia Energy program
Faster market access with Nemko’s International Approval
services:
Nemko’s International Approval services is a portfolio of services
designed to provide market access in the shortest possible time.
The portfolio consists of:
• Nemko Direct for Safety and EMC • Nemko Direct for Telecom and
Wireless • Nemko Direct for Energy Efficiency
These services undertake the burden of submitting applications with
necessary documentation, follow-up and communication with foreign
approval agencies.
A one stop shop Nemko was one of the first companies in the world
to offer market access services, and we remain one of the best in
class. With our portfolio, we can offer you a one stop shop for
your market access requirements.
Nemko has the local expertise required Through our unique
combination of local presence, international networks and
bi-lateral agreements, we have provided market access for our
customers for more than 20 years.
As part of our Nemko Direct portfolio of services, we currently
cover more than 150 countries world-wide.
Nemko Direct for Energy Efficiency This service is your market
access in countries with required energy efficiency
regulation.
Based on your product and target markets, Nemko takes care of the
necessary steps in order to obtain the final approval:
15NEMKO ANNUAL PERFORMANCE 2016
OUR COMMITMENTS
Our promise Through our unique combination of local presence,
international networks and bi-lateral agreements we obtain
regulatory access for our customers products in each and every
market globally.
We live in an age of ever-shorter time- to-market requirements and
a constant pressure in keeping costs down. Globalisation requires
products to be sold in more and more countries worldwide. Delays in
obtaining access to new markets around the world will be costly and
result in lost sales.
Rules and regulations are changing rapidly, making it time
consuming to be up-to- date. Interpretation of new regulations and
approvals is often difficult and takes time. Nemko has local
expertise and global knowledge.
Our common cultural mind-set In Nemko, we have embraced six
statements describing the way we work and interact. • We have
customer focus! • We create leadership opportunities! • We are
proactive! • We support each other! • We share our knowledge! • We
deliver as promised!
Our ethical commitment We are loyal to our ethical guidelines by
being compliant with professional frameworks, regulations,
standards and agreed processes and by abiding to our ethical
policy. Our leaders will • Set the example. As in any
business
practice, honesty and integrity must be top priority for our
leaders.
• Have an open door policy and welcome
suggestions and concerns from employees. This will allow employees
and their leaders to be comfortable in discussing issues and making
sound decisions. In addition, employees are herewith in a better
position to alert leaders to concerns within their teams.
Our employees will • Treat everyone fairly, have mutual
respect and promote a harmonious team environment.
• Challenge harassment and discrimination.
• Support our colleagues in making the right choices ethically,
responsibly and based on our values.
• Not use corporate assets or business relationships for personal
use or gain.
• Act ethically, responsibly and in accordance with our ethical
policy
• Apply their effort and their intelligence in maintaining our
values.
16 NEMKO ANNUAL PERFORMANCE 2016
Svein Ola Ulven President & CEO
Yong Beom Choi Region Asia
Grant Schmidbauer Region North America Group QA
Aqsa Butt CFO
John Bakken Nemko Group Services, Region Europe
Hannes Skisaker Global Sales & Business Development
Tore Ledaal Nemko Group Lab
GROUP MANAGEMENT
17NEMKO ANNUAL PERFORMANCE 2016
HOW WE ARE ORGANISED
Objective The objective of the foundation is to promote safety in
the sale and use of electro-technical equipment.
History Nemko’s history goes back to 1933, when it was established
as an independent association to promote product safety for
electrical products in Norway. Nemko had the monopoly for testing
and approval of electrical products and material manu- factured,
imported and sold in Norway.
The NEMKO foundation was established 19 December 1990, as a
continuation of the former state-owned company Nemko. All such
national monopolies were later abolished by the EU – in 1991.
Mission The foundation shall, through its wholly owned subsidiary
Nemko AS, maintain internationally competitive and recognised test
laboratories and certification bodies, who, through their expertise
and indepen- dent positions, can contribute to safety within the
sale and use of electro-technical equipment in Norway and
worldwide.
Nemko creates value by being a customer- oriented and
knowledge-driven company. Profitable growth is achieved by
assisting our customers with testing, certification and
international market access for electrical products.
Ownership structure The foundation ownership structure ensures that
Nemko has the necessary independence and integrity towards the
authorities, accreditation bodies, the customers and the safety of
the product.
The foundation is managed by a board of 10 members, of which three
are employee representatives elected by the employees of Nemko in
Norway and 7 representatives designated by the following Norwegian
industry and trade associations:
• Elektroforeningen (Norwegian association of electrical
manufacturers, importers and wholesalers)
• Energi Norge (Energy Norway) • Industriens Forening for
Elektroteknikk
og Automatisering (The Association for Electrotechnics and
Automation in Industry)
• IKT-Norge (The voice of the Norwegian ICT industry)
• Elektronikkbransjen (Consumer Electronics Trade Foundation)
• NELFO, foreningen for EL- og IT bedriftene (Norwegian Electrical
Contractors’ Association)
• Norsk Industri (Federation of Norwegian Industries)
Nemko is a private, independent
company owned by the NEMKO
foundation.
OWNERSHIP STRUCTURE
ASIANORTH AMERICAEUROPE
NEMKO NORWAY Oslo
NEMKO TAIWAN Taipei
Delhi
NEMKO CCL Inc Salt Lake City
NEMKO CANADA Inc Ottawa
DNV NEMKO PRESAFE AS
Bjørn Ove Skjeie Board member
Arne Jorde Board member
Ove Guttormsen Board member
Espen Eriksen Board member
Lene Martinsen Board member
Svein Ola Ulven President & CEO
Nemko AS is owned by the NEMKO Foundation, which is a private,
indepen- dent foundation with the purpose of working for safety in
the trade and use of electronic equipment. The Nemko Group has
separate subsidiaries in 11 countries in Europe, North America and
Asia, and is a world-leading provider of test and certification
services within electro- technical products. Nemko’s headquarters
are in Oslo. The global network is supplemented by several
strategic alliances and partnerships.
Operating revenues for 2016 amounted to NOK 560.4 million (527.3 in
2015). The Group’s operating revenues adjusted for currency changes
increased by 3.4 percent in 2016. Operating profits ended at NOK
41.7 million (48.7 in 2015) with an EBITDA margin of 7.4 percent
and pre-tax profits of NOK 29.2 million (52.5 in 2015).
Nemko has been providing certification body certificates (CB) for
companies and products around the world for many years. We were
ranked third among CB schemes in 2016. Nemko is number one for the
audio/video product category (TRON), second for household
appliances/products (HOUS), third for measurement equipment (MEAS)
and fourth for IT equipment (OFF).
Nemko is also one of the world’s leading suppliers of certificates
issued by other certification bodies, in terms of numbers. Nemko’s
CB testing certificates were used as the basis for 1707 national
certifications around the world in 2016, which represents 6 percent
of global market volume. This is proof of Nemko’s strong position
where global market access is concerned.
Nemko strengthened its global position as a main supplier of market
access services in 2016 with a growth of 13 percent. Being the
world’s best supplier of market access services attracts attention.
That attention helps us explore potential new markets and new
customers, and develop and deliver services to meet new
demands.
Optimising laboratory operations and sales activities were
important goals for 2016 and we expect to continue those projects
in 2017.
2016 was a good year for Nemko. We began a process of developing
and implementing strategic priorities in 2014, which continued in
2015 and 2016. Our staff are eager to reach Nemko’s strategic
goals. This is proof of the organisation’s constructive mindset and
go-getter initiative. It is also proof of how the Group works well
with employees and maintains good relationships with employee
representatives and unions.
The branding project initiated in Norway in 2015, continued in
2016. The aim of the campaign was to improve Nemko’s visibility in
the Norwegian market, and with a long term goal of improving
Nemko’s competitiveness. The project involved both employees and
customers.
India is one of the world’s fastest growing economies. India’s
production sector continues to grow and manufactured products for
the Indian market are subject to new requirements for product and
quality control. Nemko India was founded in 2016 to secure revenue
from the growing market and from the increased emphasis on local
product testing.
For several years Nemko in Norway has worked to strengthen
profitability and customer satisfaction, and this purposeful work
also continued in 2016. The high level of costs in Norway
emphasises the importance of ensuring cost-effective op- erations,
and also to concentrate services in areas that provide higher
margins.
In 2016 Nemko confirmed its position as a leading provider of CB
certificates and strengthened the solidity by achieving good
results. The Group continues to work to ensure profitability, and
the Board of Directors expects the approved strategy and measures
related to increased visibility in the market will further bolster
a profitable growth. In 2016 Nemko has strengthened its Korean
organisation to meet the increased demand for EMC and radio testing
in the region. As a result of the increased testing capacity, an
increase in related IA services is also expected. Asia is the most
important region for production of electrical appliances and by
setting up operations in India, Nemko’s foothold in Asia has
increased and control of local deliveries will improve.
Our customers need of support to navigate through complex rules and
regulations to bring their products to global markets, open
possibilities for companies like Nemko to continue its expansion.
Demands related to delivery times and quality are increasing, and
by being a more integrated part of our customers’ value chain Nemko
can help in this area. Through Nemko’s well-established network our
customers have access to one of the most complete services in
market access for electrical- and other products on the global
market.
21NEMKO ANNUAL PERFORMANCE 2016
2016 2 015
Other revenue 102 050 90 514
Total revenue 560 402 527 269
Salary and other personnel costs 289 755 256 072
Other operating and administrative expenses 204 893 201 608
Depreciation 21 242 19 522
Amortisation 2 801 1 406
Total operating costs 518 691 478 608
Operating profit 41 711 48 661
Finance income 44 928 54 746
Finance costs -57 449 -50 928
Net finance -12 521 3 818
Profit before tax 29 190 52 479
Tax 6 913 17 317
Profit after tax 22 277 35 162
Minority 538 427
23NEMKO ANNUAL PERFORMANCE 2016
2016 2015
Goodwill 2 789 5 679
Other intangible assets 0 0
Intangible assets 23 374 22 136
Land and buildings 20 496 25 816
Lab equipment and machines 49 831 43 232
Inventory 8 234 7 630
Office and IT equipment 11 187 8 328
Fixed assets 89 747 85 006
Investment in subsidiaries 0 0
Investment in joint ventures 166 3 982
Fixed financial assets -884 0
Long term receivables 9 780 10 587
Long term receivables joint venture 2 373 2 373
Financial assets 11 435 16 942
Total fixed assets 124 556 124 084
CURRENT ASSETS
Short term receivables intercompany 1 983 1 647
Short term receivables joint venture 0 202
Other short term receivables 26 604 19 434
Receivables 108 611 112 731
Market based financial assets 70 266 0
Cash and cash equivalents 166 667 205 609
Current assets 345 544 318 340
Total assets 470 099 442 424
24 NEMKO ANNUAL PERFORMANCE 2016
Ove Guttormsen Board member
Espen Eriksen Board member
Arne Jorde Board member
Lene Martinsen Board member
2016 2015
Premium 251 825 251 825
Paid-in capital 306 825 306 825
Other equity -8 873 -26 607
Minority interests 2 410 1 890
Retained earnings -6 463 -24 717
Equity 300 362 282 108
LIABILITIES
Deferred tax liabilities 8 348 4 261
Pension liabilities 21 608 21 405
Statutory redundancy payments to employees 9 993 9 563
Long term liabilities intercompany 0 0
Long term liabilities joint venture 0 0
Other long term liabilities 2 170 4 214
Long term liabilities 42 174 39 529
Account payables 17 300 12 355
Short term payables intercompany 0 0
Short term payables joint venture 0 2 699
Tax payables 3 054 1 780
Government taxes etc 21 034 19 184
Other short term payable 86 174 84 769
Short term payables 127 562 120 787
Liabilities 169 736 160 316
Total liabilities and equity 470 099 442 424
Oslo, 26 April 2017 Bjørn Ove Skeie Board member
Siv Hege Solheim Board member
Svein Ola Ulven Presiden & CEO
25NEMKO ANNUAL PERFORMANCE 2016
(NOK 1 000) GROUP
Profit before tax 29 610 52 479
Taxes paid -8 302 -4 668
Depreciation and amortisation 24 043 20 929
Loss/(gain) on sale of fixed assets 0 0
Share of profit from joint ventures 3 816 515
Difference in cost and payments in pension -947 -27 435
Change in accounts receivables 11 424 -11 890
Change in accounts payables 4 945 -173
Change in balance with group companies -336 -1 097
Change in other accruals, including currency effects -2 175 -9
318
Net cash flow from operating activities 61 658 19 342
Cash flow from investing activities
Sale of fixed assets 0 0
Purchase of fixed assets -33 171 -11 345
Purchase of stocks -3 843 0
Sale of stocks 0 0
Change in loan to group companies 0 16 875
Net cash flow from investing activities -37 014 5 530
Cash flow from financing activities
Change in long term liability -2 044 -78 484
Dividend paid to minority 0 -333
Equity issue 0 201 500
Net cash flow from financing activities -2 044 122 683
Net change in cash and cash equivalents 22 600 147 555
Cash and cash equivalents pr. 01.01 205 609 49 330
Currency effect on net change in cash and cash equivalents 8 724 8
724
Cash and cash equivalents per 31.12 236 933 205 609
KPMG AS Sørkedalsveien 6 Postboks 7000 Majorstuen 0306 Oslo
Telephone +47 04063 Fax +47 22 60 96 01 Internet www.kpmg.no
Enterprise 935 174 627 MVA
To the General Meeting of Nemko AS
Independent Auditor’s Report
Opinion
We have audited the financial statements of Nemko AS showing a loss
of NOK 7 826 000 in the financial statements of the parent company
and profit of NOK 22 277 000 in the financial statements of the
group. The financial statements comprise:
• The financial statements of the parent company, which comprise
the balance sheet as at 31 December 2016, and the income statement
and cash flow statement for the year then ended, and notes to the
financial statements, including a summary of significant accounting
policies, and
• The financial statements of the group, which comprise the balance
sheet as at 31 December 2016, and the income statement and cash
flow statement for the year then ended, and notes to the financial
statements, including a summary of significant accounting
policies.
In our opinion:
• The financial statements are prepared in accordance with the law
and regulations.
• The accompanying financial statements give a true and fair view
of the financial position of the parent company as at 31 December
2016, and its financial performance and its cash flows for the year
then ended in accordance with the Norwegian Accounting Act and
accounting standards and practices generally accepted in
Norway.
• The accompanying financial statements give a true and fair view
of the financial position of the group as at 31 December 2016, and
its financial performance and its cash flows for the year then
ended in accordance with the Norwegian Accounting Act and
accounting standards and practices generally accepted in
Norway.
Basis for Opinion
We conducted our audit in accordance with laws, regulations, and
auditing standards and practices generally accepted in Norway,
including International Standards on Auditing (ISAs). Our
responsibilities under those standards are further described in the
Auditor’s Responsibilities for the Audit of the Financial
Statements section of our report. We are independent of the Company
and the Group as required by laws and regulations, and we have
fulfilled our other ethical responsibilities in accordance with
these requirements. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our
opinion.
To the General Assembly of Nemko AS
27NEMKO ANNUAL PERFORMANCE 2016
2
Other information
Management is responsible for the other information. The other
information comprises the Board of Directors’ report, but does not
include the financial statements and our auditor's report
thereon.
Our opinion on the financial statements does not cover the other
information and we do not express any form of assurance conclusion
thereon.
In connection with our audit of the financial statements, our
responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent
with the financial statements or our knowledge obtained in the
audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is
a material misstatement of this other information, we are required
to report that fact. We have nothing to report in this
regard.
Responsibilities of the Board of Directors and the Managing
Director for the Financial Statements
The Board of Directors and the Managing Director (management) are
responsible for the preparation in accordance with law and
regulations, including fair presentation of the financial
statements in accordance with the Norwegian Accounting Act and
accounting standards and practices generally accepted in Norway,
and for such internal control as management determines is necessary
to enable the preparation of financial statements that are free
from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible
for assessing the Company’s and the Group’s ability to continue as
a going concern, disclosing, as applicable, matters related to
going concern. The financial statements use the going concern basis
of accounting insofar as it is not likely that the enterprise will
cease operations.
Auditor’s Responsibilities for the Audit of the Financial
Statements
Our objectives are to obtain reasonable assurance about whether the
financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an
auditor’s report that includes our opinion. Reasonable assurance is
a high level of assurance, but is not a guarantee that an audit
conducted in accordance with laws, regulations, and auditing
standards and practices generally accepted in Norway, including
ISAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered
material if, individually or in aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the
basis of these financial statements.
As part of an audit in accordance with laws, regulations, and
auditing standards and practices generally accepted in Norway,
including International Standards on Auditing (ISAs), we exercise
professional judgment and maintain professional scepticism
throughout the audit. We also:
• identify and assess the risks of material misstatement of the
financial statements, whether due to fraud or error. We design and
perform audit procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate to provide a
basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal
control.
• obtain an understanding of internal control relevant to the audit
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on
the effectiveness of the Company's or the Group's internal
control.
• evaluate the appropriateness of accounting policies used and the
reasonableness of accounting estimates and related disclosures made
by management.
• conclude on the appropriateness of management’s use of the going
concern basis of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists related to events
or conditions that may cast significant doubt on the Company’s
ability to
28 NEMKO ANNUAL PERFORMANCE 2016
Auditor's Report - 2016 Nemko AS
3
continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our
auditor’s report to the related disclosures in the financial
statements or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained
up to the date of our auditor’s report. However, future events or
conditions may cause the Company to cease to continue as a going
concern.
• evaluate the overall presentation, structure and content of the
financial statements, including the disclosures, and whether the
financial statements represent the underlying transactions and
events in a manner that achieves fair presentation.
• obtain sufficient appropriate audit evidence regarding the
financial information of the entities or business activities within
the Group to express an opinion on the consolidated financial
statements. We are responsible for the direction, supervision and
performance of the group audit. We remain solely responsible for
our audit opinion.
We communicate with the Board of Directors regarding, among other
matters, the planned scope and timing of the audit and significant
audit findings, including any significant deficiencies in internal
control that we identify during our audit
Report on Other Legal and Regulatory Requirements
Opinion on the Board of Directors’ report
Based on our audit of the financial statements as described above,
it is our opinion that the information presented in the Board of
Directors’ report concerning the financial statements, the going
concern assumption, and the proposal for the coverage of the loss
is consistent with the financial statements and complies with the
law and regulations.
Opinion on Registration and Documentation
Based on our audit of the financial statements as described above,
and control procedures we have considered necessary in accordance
with the International Standard on Assurance Engagements (ISAE)
3000, Assurance Engagements Other than Audits or Reviews of
Historical Financial Information, it is our opinion that management
has fulfilled its duty to produce a proper and clearly set out
registration and documentation of the company’s accounting
information in accordance with the law and bookkeeping standards
and practices generally accepted in Norway.
Oslo, 4 May 2017 KPMG AS
John Thomas Sørhaug State Authorised Public Accountant
Note: This translation from Norwegian has been prepared for
information purposes only.
29NEMKO ANNUAL PERFORMANCE 2016
30 NEMKO ANNUAL PERFORMANCE 2016
CONTACT INFORMATION NEMKO GROUP Nemko AS - Head Office
Gaustadalléen 30 P.O. Box 73 Blindern, N-0314 Oslo, Norway Phone:
+47 22 96 03 30 Fax: +47 22 96 05 50
DNV GL NEMKO PRESAFE DNV GL Nemko Presafe AS Veritasveien 3 N-1363
Høvik, Norway Phone: +47 67 57 88 00
EUROPE NEMKO GERMANY Nemko GmbH & Co. KG Postfach 1250, D-76318
Pfinztal Reetzstr. 58 D-76327 Pfinztal (Karlsruhe area) Germany
Phone: +49 7240 63 0 Fax: + 49 7240 6312
NEMKO ITALY Nemko Spa a Socio Unico Via del Carroccio 4, (ang. Via
Cavallotti) 20853 Biassono (MB), Italy Phone: +39 039 220 1201 Fax:
+39 039 220 1221
NEMKO SWEDEN Nemko Sweden AB Alviks Strand Gustavslundsvägen 143
16751 Bromma, Sweden Phone: +46 8 473 00 61 Mobile: +46 708 11 97
17
NEMKO DENMARK Nemko Denmark AS Hejrevej 34 DK-3120 Dronningmølle,
Denmark Mobile: +45 22 20 02 45
ASIA NEMKO SHANGHAI Nemko China Ltd Shanghai (WFOE) 18G, Zao-Fong
Universe Building No.1800 Zhongshan West Road, Xuhui District,
Shanghai 200235, China Phone: +86 21 54453132 Fax: +86 21
54453215
NEMKO SHENZHEN Nemko Shanghai Ltd., Shenzhen Branch Room C &D,
Floor 10, Financial Base Tower 2 Kefa Road 8#, Hi-Technology Park,
Nanshan District, Shenzhen 518057, China Phone: +86 755 82210420
Fax: +86 755 82213363
NEMKO HONG KONG Nemko Hong Kong Ltd. Unit 23, 19/F, Tuen Mun
Central Square No. 22 Hoi Wing Road Tuen Mun, N.T., Hong Kong
Phone: +852-2675 0288 Fax: +852-2675 0550
NEMKO TAIWAN Nemko AS, Taiwan Branch 5F, No. 413, Section 2, Tiding
Blvd., Neihu, Taipei, 11493 Taiwan Phone: +886-2-8797-8790 Fax:
+886-2-8797-8791
NEMKO KOREA Nemko Korea Co. Ltd. 159, Osan-ro (300-2, Osan-ri)
Mohyeon-myeon, Cheoin-gu, Yongin-si, Gyeonggi-do (Seoul area),
Republic of Korea, 16885 Phone: +82 31 330 1700 Fax: +82 31 322
3971
NEMKO JAPAN Nemko Japan Ltd. 5F, 1-7-39, Miyajiri, Ise-shi,
Mie-ken, 516-0072, Japan Phone: +81 596 24 7755 Fax: +81 596 24
7795
NEMKO INDIA Nemko India (Test Lab) Pvt Ltd Plot no 2, Second Floor,
DLF Industrial Estate -I, Sector -37 ( Near NHPC Metro Station),
Faridabad ( HR), India - 121003 Phone : +91 129 4905500
NORTH AMERICA NEMKO SAN DIEGO Nemko USA, Inc. 2210 Faraday Ave.
Suite 150 Carlsbad, CA 92008 Phone: +1 760 444 3500 Fax: +1 760 444
3005
NEMKO SALT LAKE Nemko-CCL, Inc. 2964 West 4700 South, Suite 200,
Salt Lake City, Utah 84129 Phone: +1 801 972 6157 Fax: +1 801 972
4218
NEMKO CANADA Nemko Canada, Inc. 303 River Road, Ottawa Ontario
K1V1H2, Canada Phone: +1 613 737 9680 Fax: +1 613 737 9691
Read more about us at nemko.com