truefalseRune SyversenÅrsrapport25578198KPMGBredskifte Allé 13DK-8210 Aarhus V2021-01-012021-12-312020-01-012020-12-312022-05-192022-05-1928716184Crayon A/STobaksvejen 2A, 3.2860SøborgDKDenmark2005-06-01Gladsaxe KPMG25578198Mikkel Trabjerg Knudsenmne34459statsaut. revisorFrederiks Plads 42138210AarhusDKDenmark45707077602022-05-19Regnskabsklasse C, stor virksomhedfalsefalseRevisionspåtegningThe Board of Directors and the Executive Board have today discussed and approved the annual report of Crayon A/S for the financial year 1 January – 31 December 2021.The annual report has been prepared in accordance with the Danish Financial Statements Act.We recommend that the annual report be approved at the annual general meeting.Gladsaxe,Marina LønningRune SyversenChairmanMelissa Ann MulhollandJon Birger SyvertsenTo the shareholder of Crayon A/SWe conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the "Auditor's responsibilities for the audit of the financial statements" section of our report. We are independent of the Company in accordance with the International Ethics Standards Board for Accountants' International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.Aarhus,11931050001006823000859348000560900000464188000108745000974900008579400077259000607030003929100031799000237210001685900011549000-729000-1609000856000-115000-543000299280002347000018840000132930008561000338457000267689000198130000138578000148379000466130003650500030742000217690001690600038700036000017000010040007220001313.714.111.87.67269.871.868.742.913.813.615.515.711.4Human rights Climate impact Corporate responsibility is in the core of what we do. We support the United Nations Global Compact and its 10 principles of human rights, labor, environment, and anti-corruption. Corporate social responsibility (CSR) in Crayon is firmly based on the Group’s core values and its ‘Corporate Social Responsibility Policy’ and ‘Corporate Governance Guidelines’ as adopted by Crayon Group. Integrity is a core value for us and as a part of this we act respectful to others. We do not tolerate any forms of harassment or discrimination. Issues are resolved respectfully, and we never resort to acts or threats of violence. Crayon as a company has been admitted into the UN Global Compact, which is an initiative that aims to “advance universal principles on human rights, Labor, environment and anti-corruption through the active engagement of the corporate community”. As part of this engagement, Crayon is committed to internalize the ten key UN principles within our strategies, policies, and operations. We also have taken on projects to advance the UN’s Sustainable Development Goals (SDG.) The UN established 17 SDGs to achieve by 2030 that Crayon aim to end poverty, fight inequality and injustice and protect the planet. There has been no reported violation of human rights in 2021 and no risk has been identified in relation to this matter in 2021. Crayon Denmark’s offices is DGNB-platin certified as the first in Denmark for its holistic approach to sustainability with a combination of the use of sustainable materials, flexible work areas and technical solutions to create a healthy environment, both inside and outside. Further we fulfil the EU legislation on energy and conduct regular energy inspections in our offices. To reduce Co2 we allow our people to work from home 2-3 days per week to the extend the nature of the work allows it. We use video as much as possible to reduce travel activities. In our product and service development going forward we strive to embed measures on how the customers reduce their CO2 by using our services. Crayon Group’s Corporate Social Responsibility (CSR) status is evaluated by an independent, third party named Eco Vadis. The methodology covers 21 criteria across four themes: environment, Labor & Human Rights, ethics/fair business practices, and supply chain. The methodology is built on international CSR standards including the Global Reporting Initiative, the United Nations Global Compact, and ISO 26000. Sustainability is foundational to our business strategy, as we support businesses along every step of their digital transformation journey. This means helping them to move away from on-premises servers and into the more eco-friendly, secure, and efficient cloud. We also use innovation to drive more sustainable solutions, such as building sustainable license management practices and offering services that help companies take charge of their carbon emissions. In June we launched our first fully global ESG strategy that covers all 37 countries and more than 50 offices worldwide. The strategy is anchored at the board level and centers around the sustainability pillars of people, planet, and prosperity. Twenty percent of our global workforce is already engaged in our ESG plan. The global strategy includes clear baseline metrics in terms of measuring and understanding our own materiality, environmental impact and targets, impactful diversity, equity and inclusion efforts, and innovative products to help our customers on their own ESG journey. Crayon as a company will continue the work in 2022 with Corporate Social Responsibility (CSR) in the four aspects environment, Labor & Human Rights, ethics/fair business practices, and supply chain to obtain the focus and continue to deliver good results in this aspect. The Company's risk exposure We do not tolerate any kind of corruption or bribery – this is clearly stated in our code of conducts and our handbook available for all employees and delivered to all new employees. All employees have completed Microsoft’s “Anti- corruption training that is required to complete every year. As of 13 April 2021, Crayon is ISO certified within Information Security, Privacy and Quality. To achieve a global ISO authorization in three major areas in just four months is a truly remarkable achievement. This has been possible thanks to an innovative approach, where we have certified our service development framework and methodology together with our new service development tool. An approach like this now allows us to refer to our ISO certificate by making sure our services are defined, documented, and developed through our new service development process. • Information Security - ISO 27001:2013 • Privacy - ISO 27701:2019 • Quality - ISO 9001:2015 The work with obtaining clear Anti- corruption trainings for all employees and Crayon’s work with the ISO certification will continue going forward. No risk has been identified in relation to anticorruption and bribery in 2021. Business risks Risks and uncertainties in the business are access to qualified personnel in the areas we operate. Specialist expertise is a decisive factor in gaining new and retaining existing customers, and in maintaining certifications and authorizations required by larger software vendors. Most of our customers have adapted to the new normal in Covid-19 times and have a continuous need to automize and accelerate their digital transformation to stay competitive. Software and adoption of new technologies is a key enabler for this and the need to optimize, operate, innovate and secure IT environments remains strong. Further uncertainty is how COVID-19 will impact our customers and their willingness to buy our services. We remain optimistic as most customers and partners are looking for cost savings and optimization of their software and cloud assets. In addition, COVID-19 has accelerated the need for digital transformation in almost all industries to sell and develop a good customer experience. Our employees have shown an impressive ability to adapt to the new normal in COVID-19 times, develop our competencies and deliver high quality to our customers. Financial risks Larger transactions involving currency risk are hedged by the means of forward contracts. The company do not have any financial instruments in foreign currency. The fact that the company purchases in the same currency in which the sales are performed, mitigates the currency exposure resulting in a natural hedging for the company. Crayon’s data ethics principles cover all confidential business and personal data collected, analysed, stored, shared, and otherwise processed. Whereas Crayon’s Security and Privacy Policy governs the data principles which each processing activity must strictly adhere to, including the collection, storage, use and sharing of financial data, Crayon’s Integrity Policy governs the ethical codes of conduct which each team member must strictly adhere to when processing confidential business and personal data, including the processing and sharing of financial data.11931050001006823000107285500089865100030800066600011813000113480001087450009749000067718000636460001736000203300001200039291000317990001045000351000177400019600003856200030190000863400067200002992800023470000120000024000004260004580002300014000044900059800014960001551000314500045490002079430001811950004663000263600011400000027700010000099000213846000184207000121466000789330003353120002631400003384570002676890005320005320002108100015473000250000002050000046613000365050001000002960001000002960001282700006664000098800009606000107450002153020001516710007451000251540002152000229200036499000398830002550001143000278917000230888000291744000230888000338457000267689000532000154730002050000006800000002050000004928000250000005320002108100025000000-10042000-8622000-1736000-2033000417060003412500030424000-709900072130000270260001045000351000-1774000-1960000-8969000-79510006243200017466000387000360000011000-387000-349000-20500000-18000000-20500000-1800000041545000-883000789330007981600012047800078933000Goodwill Acquired goodwill is measured at cost less accumulated amortisation. Goodwill is amortised on a straight-line basis over the expected useful life, which is estimated to 10 years. The period of amortisation is determined based on an assessment of the acquired company’s position in the market and earnings profile and the industry-specific conditions.Financial assets The accounting policies used in the preparation of the financial statements are consistent with those of last year. Deposits include rental deposits which are recognised and measured at amortised cost. Deposits are not depreciated.Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities The cash flow statement shows the Company's cash flows from operating, investing and financing activities for the year, the year's changes in cash and cash equivalents as well as the Company's cash and cash equivalents at the beginning and end of the year. Cash flows from operating activities are calculated as the Company's share of profit/loss for the year adjusted for non-cash operating items, changes in working capital and corporation tax paid. Cash flows from investing activities comprise payments in connection with acquisitions and disposals of entities and activities, intangible assets, property, plant and equipment and investments. Cash flows from financing activities comprise changes in size or composition of the Company's contributed capital and costs in this respect as well as raising of loans, installments on interest-bearing debt and distribution of dividends to owners.8382250000002050000049280002970000Control Related party transactions Crayon A/S' related parties comprise the following: Crayon Group AS, Sandakerveien 114A, 0484 Oslo, Norway Crayon Group AS holds the majority of the contributed capital in the Company. Crayon A/S is part of the consolidated financial statements of Crayon Group Holding ASA, Sandakerveien 114, 0484 Oslo, Norway, which is the smallest and largest group, respectively, in which the Company is included as a subsidiary. The consolidated financial statements of Crayon Group Holding ASA can be obtained by contacting the parent company at the above adress or on the Company's wesite: www.crayon.comCash flow statement - Other adjustments Change in working capitalIn our opinion, the financial statements give a true and fair view of the Company's assets, liabilities and financial position at 31 December 2021 and of the results of the Company's operations and cash flows for the financial year 1 January – 31 December 2021. Further, in our opinion, the Management's review gives a fair review of the development in the Company's activities and financial matters, of the results for the year and of the Company's financial position.We have audited the financial statements of Crayon A/S for the financial year 1 January – 31 December 2021 comprising income statement, balance sheet, statement of changes in equity, cash flow statement and notes, including accounting policies. The financial statements are prepared in accordance with the Danish Financial Statements Act. In our opinion, the financial statements give a true and fair view of the Company's assets, liabilities and financial position at 31 December 2021 and of the results of the Company's operations and cash flows for the financial year 1 January – 31 December 2021 in accordance with the Danish Financial Statements Act.Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the Danish Financial Statements Act and for such internal control that 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 ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting in preparing the financial statements unless Management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.Our objectives are to obtain reasonable assurance as to whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs and the additional requirements in Denmark will always detect a material misstatement when it exists. Misstatements may arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users made on the basis of these financial statements. As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional judgement and maintain professional scepticism throughout the audit. We also identify and assess the risks of material misstatement of the company financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control. 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 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 in preparing the financial statements and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern. evaluate the overall presentation, structure and contents of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that gives a true and fair view. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.Management is responsible for the Management's review. Our opinion on the financial statements does not cover the Management's review, and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the Management's review and, in doing so, consider whether the Management's review is materially inconsistent with the financial statements or our knowledge obtained during the audit, or otherwise appears to be materially misstated. Moreover, it is our responsibility to consider whether the Management's review provides the information required under the Danish Financial Statements Act. Based on the work we have performed, we conclude that the Management's review is in accordance with the financial statements and has been prepared in accordance with the requirements of the Danish Financial Statements Act. We did not identify any material misstatement of the Management's review. The financial ratios have been calculated as follows: Return on invested capital Operating profit * 100 Average invested capital Return on equity Profit from ordinary activities after tax x 100 Average equity Solvency ratio Equity x 100 Total equity and liabilities at year-endThe Company resells software and provide consultancy services and managed services within Software Asset Management, Cloud services, IT infrastructure and IT architecture.The Company's income statement for 2021 shows a profit of DKK 29,928 as against DKK 23,470 in 2020. Equity in the Company's balance sheet at 31 December 2021 stood at DKK 46,613 as against DKK 36,505 at 31 December 2020. 2021 is a year where our industry rises to the ongoing challenges of rapid rates of innovation and responding to what our customers require in a new normal working in a hybrid environment. Several larger new customers and partners have chosen Crayon as their partner for cloud services and software asset management, and we have kept almost all existing customers and partners in our portfolio. Crayon Denmark has launched several new services focusing on helping customers on their digital transformation journey and at the same time optimizing the ROI of software investments. Our most popular bestsellers in 2021 have been cloud services, software asset management, cloud economics, audit support and cost optimization services. Our indirect business, where we support hosting and cloud partners, continue to grow and we see a continuous growth in consumption of services in the Cloud. The result for the year was better than expected. Earnings are better than expected and we have significant growth rates on licenses, Cloud, and Managed Services.The business is expected to have continued stable growth, with a continued increase in the number of customers, sales, and earnings. In line with the company's strategy, growth will occur relatively faster in services, which require an increase in staff. The company has delivered strong earnings growth in 2021 and expects continued growth and a positive result in 2022. The overall expectation is a yearly growth in Gross Profit of 5-10%.Overall Crayon Denmark has significant better employee satisfaction compared to the average in the Danish market. We also strive for diversity in all aspects including gender equality. As of now the management team in Crayon A/S consists of 50% females and 50% males and the company in total have 37% females and 63% males employed. For the Group, 32% of employees are women. The Board of Directors was 2 men and 1 woman, and the gender is now equally represented. Going forward we strive to have the genders equally represented. The IT industry in general is characterized by a low share of female employees and further measure has been put in place to increase our gender diversity; among others we will always have both genders represented at the final hiring interview. The SHE Index started in 2018, with an aim to close the gender gap because it measures and compares companies’ gender diversity. Crayon Group has been a participant of SHE Index since 2018, and we are focused to keep working continuously for gender equality. For this year’s index, Crayon scored 98 out of 100 points to achieve the ranking of second place. Its 2021 score is 18 points higher than the previous year. Crayon Group as a company also won the Rising Star Award for making the most gains on the index in a single year. Crayon’s biggest asset is our employees, and employees’ development in Crayon will continue to be a focus in 2022. In 2022, Crayon will increase the technical development and competence of our employees, through the management tool implemented in 2019, with targeted trainings, upskilling, and certifications across our vendors, which strengthens our multicloud capabilities. In 2019 the company established a stock ownership program available to all employees. This stock ownership program will continue going forward, because it is very important for us that our employees have a share in the development of Crayon. Work-life balance is taken seriously, and Crayon supports flexible working hours, provides training to employees, and has a transparent recruitment process in place that is clearly communicated to all candidates.No events have occurred from the balance sheet data and to this date that will change the assessment of the financial statements.The annual report of Crayon A/S for 2021 has been prepared in accordance with the provisions applying to reporting class C large entities under the Danish Financial Statements Act.Transactions in foreign currencies are translated at the rate of exchange on the transaction date. Exchange differences arising between the rate on the transaction date and the rate on the payment date are recognised in the income statement as a financial income or expense. If the foreign exchange position is considered to hedge future cash flows, the unrealised exchange adjustments are recognised directly in the equity. Receivables, payables and other monetary items in foreign currencies that are not settled on the balance sheet date are translated at the exchange rate on the balance sheet date. The difference between the exchange rate on the balance sheet date and the exchange rate at the time of occurrence of the receivables or payables is recognised in the income statement as financial income or expenses. Fixed assets acquired in foreign currencies are translated at the rate of exchange on the transaction date.Net revenue Net revenue is recognised in the income statement if supply and risk transfer to purchaser has taken place before the end of the year. Net revenue is recognised exclusive of VAT, duties and less discounts related to the sale. Income is considered realised when an agreement has been signed with the customer and the company is considered to have delivered its service. Income is accrued over the term of the contract because the customers may change supplier during the contract period. The income of the year corresponds to 12 months of income for contracts on which the company is supplier. Income for a year is recognised at the time when the customer has decided to use the customer as supplier for another 12 months period. Indirect sales In indirect sales arrangements, Crayon invoices the customer and receives payment from the customer, while the software vendor bills and receives payment from Crayon. Crayon has a risk of delinquency by the customer, whilst having a financial commitment to the supplier. The gross amount billed to the customer is therefore recognised as revenue in the financial statements and the purchase from the supplier is recognised as cost of sales. Direct sales In direct sales arrangements, the vendor invoices customers directly, not through Crayon. Crayon A/S recognises incentive fees in the same month as the sales agreement is signed. Sales of licenses Income from sale of licences is recognised at the time of delivery. As regards sale of licences on a long- term contract where the customers pay annual fees, the income is recognised in the relevant period. As regards sale of licences, Crayon A/S invoices the gross amount and receives an invoice from the relevant software provider. The Company bears the debtor risk concerning its customers and the Company therefore recognises sale of licences by a gross presentation under revenue. Rendering of services The rendering of services typically involves the performance by the entity of a contractually agreed task over an agreed period of time. The services may be rendered within a single period or over more than one period. Revenue from the rendering of services is to be recognised based on the percentage-of- completion method when the outcome of the transaction can be estimated reliably.Cost of sales comprises costs incurred to generate revenue for the year.Other operating income comprises items secondary to the activities of the entity, including gains on the disposal of intangible assets and property, plant and equipment.Other external costs comprise distribution costs and costs related to sales, sales campaigns, administration, office premises, operating leases, etc.Staff costs comprise wages and salaries, including holiday pay and pensions and other costs for social security etc. for the company’s employees. Repayments from public authorities are deducted from staff costs.Other operating expenses include items of a secondary nature in relation to the entity's principal activities, including loss from the sale of property, plant and equipment.Financial income and expenses include interest income and expenses, realised and unrealised gains and losses arising from transactions in foreign currencies as well as charges and allowances under the tax-on-account scheme etc. Financial income and expenses are recognised in the income statement by the amounts that relate to the financial year.The tax for the year, which consists of the current tax for the year and changes in deferred tax, is recognised in the income statement by the portion that may be attributed to the profit for the year, and is recognised directly in the equity by the portion that may be attributed to entries directly to the equity.Property, plant and equipment are measured at cost less accumulated depreciation and impairment losses.  Cost comprises the purchase price and any costs directly attributable to the acquisition until the date on which the asset is available for use. Indirect production overheads and borrowing costs are not recognised in cost. Where individual components of an item of property, plant and equipment have different useful lives, they are accounted for as separate items, which are depreciated separately. The basis of depreciation is cost less any projected residual value after the end of the useful life. Depreciation is provided on a straight-line basis over the estimated useful life. The estimated useful lives are as follows: The useful life and residual value are reassessed annually. Changes are treated as accounting estimates, and the effect on depreciation is recognised prospectively. Depreciation is recognised in the income statement as depreciation and amortisation. Gains and losses on the disposal of property, plant and equipment are stated as the difference between the selling price less selling costs and the carrying amount at the date of disposal. Gains and losses are recognised in the income statement as other operating income or other operating costs, respectively.Fixtures and fittings, tools and equipment 2-5 years Leasehold improvements 5 yearsPayments relating to operating leases and other leases are recognised in the income statement over the term of the lease. The Company's total obligation relating to operating leases and other leases is disclosed as contractual obligations and contingencies, etc.The carrying amount of intangible assets and property, plant and equipment as well as financial assets is subject to an annual test for indications of impairment other than the decrease in value reflected by depreciation or amortisation. Impairment tests are conducted of individual assets or groups of assets when there is an indication that they may be impaired. Write-down is made to the recoverable amount if this is lower than the carrying amount. The recoverable amount is the higher of an asset's net selling price and its value in use. The value in use is determined as the present value of the forecast net cash flows from the use of the asset or the group of assets, including forecast net cash flows from the disposal of the asset or the group of assets after the end of the useful life.Receivables are measured at amortised cost. Write-down is made for bad debt losses where there is an objective indication that a receivable has been impaired. If there is an objective indication that an individual receivable has been impaired, write-down is made on an individual basis.Service in progress is measured at the selling price of the work performed less progress billings and expected losses. The selling price is measured on the basis of the stage of completion at the balance sheet date and the projected income from the individual service contract. The stage of completion is stated as the share of costs incurred in proportion to estimated total costs relating to the individual contract. When the selling price of a service contract cannot be estimated reliably, the selling price is measured at the lower of costs incurred and net realisable value. The individual service contract is recognised in the balance sheet as receivables or payables, respectively. Net assets comprise the total of service in progress where the selling price of the work performed exceeds progress billings. Net liabilities comprise the total of service in progress where progress billings exceed the selling price. Costs arising from sales work and contracting are recognised in the income statement as incurred.Prepayments comprise prepayment of costs incurred relating to subsequent financial years.The expected dividends payment for the year is disclosed as a separate item under equity.Share-based incentive schemes for the Group's Management and employees with the option to subscribe for shares in the Parent Company (options) are considered a matter of the relevant shareholders, and the fair value of options granted is therefore not recognised in the income statement as estimated payroll costs on an ongoing basis.Financial liabilities are recognised at cost at the date of borrowing, corresponding to the proceeds received less transaction costs paid. In subsequent periods, the financial liabilities are measured at amortised cost using the effective interest method. Accordingly, the difference between cost and the nominal value is recognised in the income statement over the term of the loan together with interest expenses. Other liabilities are measured at net realisable value.Current tax payable and receivable is recognised in the balance sheet as tax computed on the taxable income for the year, adjusted for tax on the taxable income of prior years and for tax paid on account. The Company is subject to joint taxation with Danish group companies. The current corporation tax is distributed among the joint taxable companies in proportion to their taxable income and with full allocation and refund related to tax losses. The joint taxable companies are included in the on account tax scheme. Joint taxation contributions receivable and payable are recognised in the balance sheet under current assets and liabilities, respectively. Deferred tax is measured on the temporary differences between the carrying amount and the tax value of assets and liabilities.Deferred income comprises advance invoicing regarding income in subsequent years.Cash and cash equivalents comprise cash, bank deposits and short-term marketable securities with a term of three months or less which are easily convertible into cash and which are subject to only an insignificant risk of changes in value. Cash and cash equivalents comprise cash and short-term marketable securities with a term of three months or less which are easily convertible into cash and which are subject to only an insignificant risk of changes in value.Segment information is provided on business segments and geographical markets. The segment information is in line with the Group's accounting policies, risks and internal financial management. Assets in the segment comprise assets used directly in revenue-generating activities. Segment liabilities comprise liabilities derived from the operations of the segment, including trade payables and other payables.Geographical and activities segments DKK'000 Service Software and Cloud Total 2021 EU - other than Nordics 1,155 98,527 99,682 Nordics 20,815 1,035,774 1,056,589 Other 2,858 33,976 36,834 Total 24,828 1,168,277 1,193,105 DKK'000 2021 2020 Wages and salaries 56,679 54,383 Pensions 7,747 6,142 Other social security costs 525 540 Other staff costs 2,767 2,581 67,718 63,646 Average number of full-time employees 83 82Pursuant to section 98b(3) of the Danish Financial Statements Act, the Company has not disclosed remuneration of Management for 2021 as only one member of the Board of Directors and Executive Board is remunerated. Incentive schemes Share option program (IPO) In connection with the listing on Group level in Norway, the Board of Directors resolved to establish a new option program to tie key personnel closer to the Company and to enhance the economic incentive related to value creation within the Group. There are two share option programs, one granted in relation to the IPO (IPO Share incentive scheme) and one share-based incentive scheme implemented in 2020 to general managers and to executive management (Management share option programs). Management share option program includes both employment and performance vesting conditions. Each share option allows for the subscription of one share in Crayon Group Holding ASA. The fair value of the options is calculated at grant date and expensed over the vesting period. Employee share purchase program (ESPP): There are two employee share purchase programs, where all employees in the Company and its subsidiaries in which an offer could be lawfully made, have been offered to participate. First offer was given in Q4 2019 (ESPP 2019) and a second offer in Q4 2020 (ESPP 2020). The subscription price was equal to 3-month average share price at the start of the subscription period with a 20% discount. The employees have been offered to subscribe for amounts between NOK 10,000 to NOK 100,000 (all amounts including the 20% discount). The duration of the program is five years from the grant date on 18 October 2017. The size of the option program is up to 200,000 options relating to Crayon A/S, Denmark. The program consists of three tranches with an earnings period of 1, 2 and 3 years. The options will vest in the three tranches, whereby each tranche consisting of 1/3 of the options will vest on the first, second and third anniversary of the grant date, respectively (i.e. 18 October 2018, 2019 and 2020). A cost of DKK 680 thousand (2020: DKK 295 thousand) has been charged as an expense in the income statement for 2021. Fair value of options The fair value at grant date is determined using an adjusted form of the Black Scholes Model that considers exercise price, the term of the option, the impact of dilution (where material), the share price at grant date, expected price volatility of the underlying share and risk-free interest. For the IPO Share incentive scheme, the expected volatility is based on historical volatility for a selection of comparable listed companies. For the remaining programs, the expected volatility is based on historical volatility for listed Crayon shares from 8 November 2017 up until the grant date. Risk free interest is based on treasury bond with same maturity as the option program. The expiry date of all three tranches is October 2022. The fair value of issued options is as follows as of 31 December 2021: GM options 2020: NOK 902,006 ESPP 2020: NOK 180,778 ESPP 2019: NOK 190,383Interest income from group entities 214 222 Other financial income 831 129 1,045 351 Interest expense to group entities 0 680 Other financial expenses 1,774 1,280 1,774 1,960 DKK'000 Goodwill Cost at 1 January 2021 12,000 Cost at 31 December 2021 12,000 Amortisation and impairment losses at 1 January 2021 -9,600 Amortisation for the year -1,200 Amortisation and impairment losses at 31 December 2021 -10,800 Carrying amount at 31 December 2021 1,200DKK'000 Fixtures and fittings, tools and equipment Leasehold improve-ments Total Cost at 1 January 2021 3,263 697 3,960 Additions for the year 387 0 387 Disposals for the year -139 0 -139 Cost at 31 December 2021 3,511 697 4,208 Depreciation and impairment losses at 1 January 2021 -2,805 -557 -3,362 Depreciation for the year -419 -117 -536 Reversed impairment losses 139 0 139 Depreciation and impairment losses at 31 December 2021 -3,085 -674 -3,759 Carrying amount at 31 December 2021 426 23 449 DKK'000 Other receivables Cost at 1 January 2021 1,551 Disposals for the year -55 Cost at 31 December 2021 1,496 Carrying amount at 31 December 2021 1,496 Of the total trade receivables of DKK 207,943 thousand, DKK 7,076 thousand (2020: DKK 14,152 thousand) falls due after 12 months from the balance sheet date. Prepayments comprise prepayment of costs incurred relating to subsequent financial years including prepaid insurance, rent, licenses, etc. Deferred income consists of payments received in respect of income in subseguent financial years.DKK'000 31/12 2021 31/12 2020 Selling price of work performed 1,140 0 that can be specified as follows: Service in progress (assets) 1,140 0DKK'000 31/12 2021 31/12 2020 Deferred tax at 1 January 296 622 Deferred tax adjustment for the year in the income statement -196 -326 100 296 Intangible assets 264 528 Tangible assets -186 -252 Prepayments 22 20 100 296The Company has entered into contractual obligations, including leases and rent agreements with a residual term of up to 32 months. The obligations at 31 December 2021 is totalling DKK 12,525 thousand (2020: DKK 17,219 thousand), of which DKK 5,111 thousand (2020: DKK 5,268 thousand) falls due for payment in 2022.The Company is jointly taxed with the other Danish companies in the Crayon Group. As a wholly-owned subsidiary, together with the other companies included in the joint taxation, the Company has joint and several unlimited liability for Danish corporation taxes and withholding taxes on dividends. Any subsequent correction of the taxable jointly taxed income or withholding taxes may entail an adjustment of the Company's liability. As a guarantor, the Company has provided joint collateral up to NOK 1.2 billion in favour of Crayon Group Holding AS' engagement with Nordic Trustee ASA. The collateral is provided in connection with Crayon Group Holding AS' bonds, which are listed on the Oslo Stock Exchange. The Company recognised the following transactions with related parties in 2021: Sale of services to related parties amounts to DKK 15,590 thousand. Cost of services purchased from related parties amounts to DKK 420,442 thousand. Pursuant to section 98b(3) of the Danish Financial Statements Act, the Company has not disclosed remuneration of Management for 2021 as only one member of the Board of Directors and Executive Board is remunerated. Payables/receivables to/from related parties are disclosed in the balance sheet. Financial income from related parties is disclosed in note 4. Dividends paid in 2021 to Crayon A/S' shareholder amounts to DKK 20,500 thousand.DKK'000 2021 2020 Audit fee 207 200 Other assurance engagements 0 14 Tax advisory services 10 10 Other services 38 8 255 232DKK'000 2021 2020 Financial income -1,045 -351 Financial expenses 1,774 1,960 Tax on profit for the year 8,633 6,720 Equity movements 680 293 10,042 8,622 Change in receivables -29,584 -72,125 Change in trade and other payables 60,008 65,026 30,424 -7,099287161842021-01-012021-12-31287161842021-01-012021-12-311287161842020-01-012020-12-31287161842020-12-31287161842021-01-01287161842020-01-01287161842021-01-012021-12-31g:PreviousYearMember287161842021-01-012021-12-31g:TwoYearsAgoMember287161842021-01-012021-12-31g:ThreeYearsAgoMember287161842021-01-012021-12-31g:FourYearsAgoMember287161842021-12-31287161842021-12-31g:PreviousYearMember287161842021-12-31g:TwoYearsAgoMember287161842021-12-31g:ThreeYearsAgoMember287161842021-12-31g:FourYearsAgoMember287161842021-01-012021-12-311287161842021-01-012021-12-311287161842021-01-012021-12-312287161842021-01-012021-12-313287161842021-01-012021-12-31c:ProposedDividendRecognisedInEquityMember287161842020-01-012020-12-31c:ProposedDividendRecognisedInEquityMember287161842021-01-012021-12-31c:ContributedCapitalMember287161842021-01-01c:ContributedCapitalMember287161842021-12-31c:ContributedCapitalMember287161842021-01-012021-12-31c:RetainedEarningsMember287161842021-01-01c:RetainedEarningsMember287161842021-12-31c:RetainedEarningsMember287161842021-01-012021-12-31c:ProposedDividendRecognisedInEquityMember287161842021-01-01c:ProposedDividendRecognisedInEquityMember287161842021-12-31c:ProposedDividendRecognisedInEquityMember287161842021-01-012021-12-31106287161842020-01-012020-12-31106287161842021-01-012021-12-31c:RetainedEarningsMember287161842020-01-012020-12-31c:RetainedEarningsMemberxbrli:pureiso4217:DKKiso4217:DKK