xbrli:pureiso4217:DKK402985682021-01-012021-12-31cmn:ConsolidatedMember402985682021-01-012021-12-311cmn:ConsolidatedMember402985682021-01-012021-12-311cmn:ConsolidatedMember402985682021-01-012021-12-311402985682021-01-012021-12-312402985682021-01-012021-12-312cmn:ConsolidatedMember402985682021-01-012021-12-31402985682020-01-012020-12-31cmn:ConsolidatedMember402985682020-01-012020-12-31402985682021-01-012021-12-31fsa:ReserveForCurrentValueAdjustmentsOfCurrencyGainsMembercmn:ConsolidatedMember402985682021-01-012021-12-31fsa:ReserveForCurrentValueOfHedgingMembercmn:ConsolidatedMember402985682021-01-012021-12-31fsa:RetainedEarningsMembercmn:ConsolidatedMember402985682021-01-012021-12-31fsa:RetainedEarningsMembercmn:ConsolidatedMember402985682020-01-012020-12-31fsa:RetainedEarningsMembercmn:ConsolidatedMember402985682021-01-012021-12-31fsa:ReserveForCurrentValueAdjustmentsOfCurrencyGainsMember402985682021-01-012021-12-31fsa:RetainedEarningsMember402985682021-01-012021-12-31fsa:RetainedEarningsMember402985682020-01-012020-12-31fsa:RetainedEarningsMember402985682021-12-31cmn:ConsolidatedMember402985682020-12-31cmn:ConsolidatedMember402985682021-12-31402985682020-12-31402985682021-01-01cmn:ConsolidatedMember402985682020-01-01cmn:ConsolidatedMember402985682021-01-01fsa:ContributedCapitalMembercmn:ConsolidatedMember402985682021-01-01fsa:ReserveForCurrentValueAdjustmentsOfCurrencyGainsMembercmn:ConsolidatedMember402985682021-01-01fsa:ReserveForCurrentValueOfHedgingMembercmn:ConsolidatedMember402985682021-01-01fsa:RetainedEarningsMembercmn:ConsolidatedMember402985682021-12-31fsa:ContributedCapitalMembercmn:ConsolidatedMember402985682021-12-31fsa:ReserveForCurrentValueAdjustmentsOfCurrencyGainsMembercmn:ConsolidatedMember402985682021-12-31fsa:ReserveForCurrentValueOfHedgingMembercmn:ConsolidatedMember402985682021-12-31fsa:RetainedEarningsMembercmn:ConsolidatedMember402985682021-01-01fsa:ContributedCapitalMember402985682021-01-01fsa:ReserveForCurrentValueAdjustmentsOfCurrencyGainsMember402985682021-01-01fsa:RetainedEarningsMember402985682021-01-01402985682021-12-31fsa:ContributedCapitalMember402985682021-12-31fsa:ReserveForCurrentValueAdjustmentsOfCurrencyGainsMember402985682021-12-31fsa:RetainedEarningsMember402985682021-01-012021-12-31fsa:ContributedCapitalMembercmn:ConsolidatedMember402985682021-01-012021-12-31fsa:ContributedCapitalMemberGrundlag for konklusionKonklusion33963556Deloitte Statsautoriseret RevisionspartnerselskabRevisionspåtegningRegnskabsklasse C, stor virksomhed2020-12-312020-01-0133963556Weidekampsgade 6Deloitte Statsautoriseret Revisionspartnerselskab2300 København S2021-12-312021-01-01Ball Group Holding ApS40298568ÅrsrapportKolding60004Egtved AlléBillundBillund7190<br /><br />29KløvermarkenThe Board of Directors and the Executive Board have today considered and approved the annual report of Ball Group Holding ApS for the financial year 01.01.2021 - 31.12.2021.The annual report is presented in accordance with the Danish Financial Statements Act.In our opinion, the consolidated financial statements and the parent financial statements give a true and fair view of the Group's and the Parent's financial position at 31.12.2021 and of the results of their operations and the consolidated cash flows for the financial year
01.01.2021 - 31.12.2021.We believe that the management commentary contains a fair review of the affairs and conditions referred to
therein.We recommend the annual report for adoption at the Annual General Meeting.Billund2022-01-28Kuno Kildetoft MehlsenChief Executive OfficerStefan Andreas Walter HappakJoachim Horst ScholzTo the shareholders of Ball Group Holding ApSWe have audited the consolidated financial statements and the parent financial statements of Ball Group Holding ApS for the financial year 01.01.2021 - 31.12.2021, which comprise the income statement, balance sheet, statement of changes in equity and notes, including a
summary of significant accounting policies, for the Group as well as the Parent, and the consolidated cash flow statement. The consolidated financial statements and the parent financial statements
are prepared in accordance with the
Danish Financial Statements Act.
In our opinion, the consolidated financial statements and the parent financial statements give a true and fair view of the Group's and the Parent's financial position at 31.12.2021 and of the results of their operations and the consolidated cash flows for the financial year 01.01.2021 - 31.12.2021 in accordance
with the Danish Financial Statements Act.We conducted our audit in accordance with International Standards on Auditing (ISAs) and 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 consolidated financial statements and the parent financial statements" section of this auditor’s
report. We are independent of the Group 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.Management is responsible for the preparation of consolidated financial statements and parent financial statements that give a true and fair view in
accordance
with the Danish Financial Statements Act, and for such internal control as Management determines
is necessary to enable the preparation of consolidated financial statements and parent financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the consolidated financial statements and the parent financial statements, Management is responsible for assessing the Group's and the Entity’s ability to continue
as a going concern, for disclosing, as applicable, matters related to going concern, and for using the going concern basis of accounting in preparing the consolidated financial statements and the parent financial statements unless Management either intends to liquidate
the Entity or to cease operations, or has no realistic alternative but to do so.Our objectives are to obtain reasonable assurance about whether the consolidated financial statements and the parent 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 applicable in Denmark will always detect a material
misstatement when it exists. Misstatements can 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 taken on the basis of these consolidated financial statements and parent 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:<br />Identify and assess the risks of material misstatement of the consolidated financial statements and the parent 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.
<br />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 Group's and the Entity’s internal control.
<br />Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by Management.
<br />Conclude on the appropriateness of Management’s use of the going concern basis of accounting in
preparing the consolidated financial statements and the parent 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 Group's and the Entity’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 consolidated financial statements and the parent 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
Group and the Entity to cease to continue as a going concern.
<br />Evaluate the overall presentation, structure and content of the consolidated financial statements and the parent financial statements, including the disclosures
in the notes, and whether the consolidated financial statements and the parent financial statements represent the underlying transactions and
events in a manner that gives a true and fair view.<br />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 commentary.
Our opinion on the consolidated financial statements and the parent financial statements does not cover the management commentary, and we do not express
any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements and the parent financial statements, our responsibility is to read the management
commentary and, in doing so, consider whether the management commentary is materially inconsistent with
the consolidated financial statements and the parent financial statements or our knowledge obtained in the audit or otherwise appears to be materially
misstated.
Moreover, it is our responsibility to consider whether the management commentary provides the information
required under the Danish Financial Statements Act.<br />Based on the work we have performed, we conclude that the management commentary is in accordance with
the consolidated financial statements and the parent 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 commentary.Kolding2022-01-28Morten Gade SteinmetzThomas Aamand Lundmne34145mne47764State Authorised Public AccountantState Authorised Public AccountantFinancial highlights2021
DKK'0002020
DKK'0002019
DKK'000Key figuresRevenue730,923657,952541,529Gross profit/loss245,069253,858197,331Operating profit/loss44,0608,73612,479Net financials(7,976)(9,251)(2,429)Profit/loss for the year22,1253,4138,503Balance sheet total364,978404,843389,752Investments in property, plant and equipment6,81013,90761,100Equity129,724101,066102,084Average numbers of employees487476530Cash flows from operating activities56,01062,48739,112Cash flows from investing activities(18,248)(12,029)(19,485)Cash flows from financing activities(75,838)(8,326)56,243RatiosGross margin (%)33.5338.5836.44EBIT margin (%)6.031.332.30Net margin (%)3.030.521.57Equity ratio (%)35.5424.9626.19Figures for 2019 only include the period 27.02.2019 - 31.12.2019 and is therefore not comparable.
Financial highlights are defined and calculated in accordance with the current version of "Recommendations &
Ratios" issued by the CFA Society Denmark.Gross margin (%)
:Gross profit/loss * 100
RevenueEBIT margin (%):
Operating profit/loss
* 100
RevenueNet margin (%)
:
Profit/loss for the year * 100
RevenueEquity ratio (%)
:Equity * 100
Balance sheet totalPrimary activitiesThe Parent and Group's main objective is to develop, source and market clothing for plus size women.
Group chart
Compared to last year Zizzi B.V, Ball Group Sverige Retail AB and Ball Group Germany GmbH have been closed.Development in activities and financesDespite very challenging circumstances relating to COVID-19 and mandatory store closures, Ball Group have
achieved record revenue of DKK 731m and EBITDA of DKK 80,3m for the year.
The result is primarily driven by growth on online channels, although the retail stores delivered a remarkable
comeback after being allowed to open by local governments in late spring.
Further, Ball Group has recorded a significant amount of non-recurring costs, which has impacted the
financial performance. As such, normalized EBITDA for the operating entities, consequently, lands at DKK 96,1m 2021, which is an increase of 229% compared to 2021.
The management considers the financial result as very satisfactory.
Profit/loss for the year in relation to expected developments
The result for 2021 is better than expected mainly due to higher sale from ecommerce.Uncertainty relating to recognition and measurementIn regards to recognition and measurement for the financial year, no significant uncertainty have been identified.Unusual circumstances affecting recognition and measurementApart from the unusual market conditions caused by the COVID-19 pandemic, no further matters are affecting
recognition and measurement. OutlookDespite continued challenges relating to the COVID-19 pandemic, we remain very optimistic about the coming
year and expect growth to continue, if not accelerate. The expectations for 2022 is to realize a result at the same
level as 2021.
Particular risks
Business risks
The primary business risks for the company relates to upholding and developing its business activities across
international markets in an increasingly competitive landscape.
The board of directors must reassure continuous monitoring of the development on the markets to reduce
business risks as well as strengthen its competitive position on crucial parameters.
Credit risks
Credit risks are related to debtors who receive deliveries according to the company’s normal trade terms. The
priority of the Group’s debtors is insured via credit insurance and/or bank guarantees, under continuous control and risk assessment of level credit.
Use of financial instrumentsThe Group will always be exposed to currency risks. A considerable part of cashflow is carried out in foreign
currency and will be affected by currency and interest development. This goes for activities carried out between foreign companies, suppliers, and customers.
The Group’s currency policy is using a layered hedging approach to minimize the risks in transactions
with foreign exchange. The policy has in the financial year proven to be effective and will be continued
unchanged during the coming financial year.
Knowledge resourcesIt is essential for the company to maintain the ability to attract, develop and retain quality members of staff with
a high level of competence. The presence of quality knowledge and knowhow in each level of staff will be
obtained
by thorough recruitment and continuous development of the existing staff and their competencies.
Staff
Development within the members of staff can be illustrated as below:
Please note that the figure for Denmark reflect employees in Ball Group Denmark ApS whereas the total reflects employees in Ball Group ApS on a consolidated basis.Environmental performancePlease refer to the paragraph "Statutory report on corporate social responsibility" below. Research and development activitiesIn line with the laid-out group strategy, investments will be made in the ongoing development of the business
platform, as well as the development of all distribution channels across the Scandinavian and Central European markets.
As so, a growth in revenue and profit is expected for the years to come, driven by better performance and
development of the e-commerce channel, optimization of the concept store portfolio and development of the
partnering with third party online customers.
Statutory report on corporate social responsibilityThe company monitors relevant relations towards social responsibilities, including employee relations,
environmental issues and anti-corruption.
During the financial year, the Group focused on the following areas of social responsibility:
• The CSR committee’s work, including the choice of focus areas in 2021 concerning CSR strategy
• Testing of Chemicals in finished products
• Supplier audits in line with human and labour rights
• Adherence to policy on animal welfare
• Supplier audits in line with environmental laws
• Objectives and policies for gender composition in the supreme governing body, cf. S. 99b of the Danish
Financial Statements Act
• Objectives and goals for 2021
As a member of UN Global Compact, the Group issues a progression report concerning the CSR work performed by the Group. For further information regarding the work of Ball Group relating to social responsibilities reference is made to this report. The report is published on the following link:
www.aboutzizzi.com/csr
Statutory report on the underrepresented genderReference is made to the progression report concerning CSR, which is published on the following link: www.aboutzizzi.com/csr
Statutory report on data ethics policyWe work actively with our customers’ and employees' data.
Employee data is used as a starting point to be able to run the company, where the focus is on master data
information. Customer data is used in different contexts.
Firstly, it is about working with customer data to operate and comply with applicable legislation. Overall, data is
used to provide unique customer service, ie. with store master, and behavioral and trade data about our
customers to provide the expected service. In addition, we work with data both humanly and machine-driven for analytical purposes.
The company has therefore prepared a group data policy with detailed explanations that clarify how data is
utilized responsibly in the business.
The policy is published on the following link: www.aboutzizzi.com/data-policyStatutory report on corporate governanceBall Group’s Board and directors will at any time secure that the group management structure and internal
controls are appropriate and work satisfactorily.
The basis for the organization of tasks handled by the Board and the directors includes the Companies Act, the
Financial Statements Act, the Company´s articles of association and good practices for companies of the same
size and same international reach as Ball Group. Under this, the Company - due to its status as a capital funded
company adheres to the guidelines for responsible ownership and corporate governance.
On this basis, a number of internal procedures are being developed and maintained to ensure active, safe and
profitable management of the Group.
Proposals for active ownership and corporate governance of equity funds
In 2011 the Danish Venture and Private Equity Association published updated guidelines for responsible
ownership and corporate governance for equity funds and their controlled companies.
The recommendations concern the guidelines regarding corporate governance, social responsibilities, risk
assessments, employments policy and strategy. These matters are discussed in the Management’s Review.
Management in Ball Group, will in general follow the guidelines and recommendations. For further information
on the mentioned recommendations reference is made to www.dvca.dk
Shareholders’ conditions
The capital structure of the Group will always be monitored by the Board and kept with the expectations from
the Board and the interests of the Group. The main goal is always to have capital structure that supports and
underlines continuous profitable growth.
The Group’s articles of association contain no limits towards ownership or the right to vote. Ball Group’s unit
capital consists solely of one asset class.
Sissi 26 FIII Holding GmbH is the largest indirect shareholder of Ball Group and have a controlling influence in the Group.
The work of the Board of Directors
The Board overlooks the work of the directors ensuring that approved goals, strategies and business processes
are kept. Information from Management is done systematically during meetings and by on-going reporting. The
reporting contains information on market developments, group development and profitability.
Risk assessments
The management ensures effective risk assessment and internal audit reduce strategic and business risk,
securing compliance with laws and regulations, to ensure an effective basis for management decision.
The strategic choices of Ball Group lead to natural risks, which are essential to identify and be communicated
out and handled effectively. Internal audit and effective risk assessments are vital for the Board and executives to
carry out tasks expected by the governing bodies.
Financial reporting process
Management on behalf of the Board and the directors handles the overall responsibility of the Group´s risk
assessments and internal audits in relation to financial reporting process. Organizational structure, policies,
procedures and audits in relation to financial reporting process undergo continuous evaluation by the Executive
Board.
Ball Group has established a group reporting process, including a monthly reporting, consisting of full income
report, balance sheet and cash flow, follow-up to budget, valuation on KPI performances and achievement of
agreed target for each business unit.
Management remuneration
To attract and maintain management competencies, the remuneration of executive management and senior
executives is determined by taking into account work tasks, value creation and terms in comparable companies.
Incentive pay has been used for executive management and senior executives in the form of bonus schemes, as well as a contingent and warrant-based incentive program for the Board, Executive Board and senior executives.
The Board of Directors and the Executive Board´s shareholding
At the end of the financial year, the Board of Directors and the Executive Board have no indirect shareholding in the company.
Dividend policy
Payment of dividend must take place with consideration to the necessary consolidation of equity for the
Group’s planned expansion.
The Board suggests no dividend be distributed in connection with the annual general meeting.
Stakeholders
Ball Group continues to develop and expand good relations to interest groups, as those relations are considered to have essential and positive effect on the Group´s future development.Events after the balance sheet dateNo events have occurred after the balance sheet date to this date, which would influence the evaluation of this annual report. 730923000657952000346400074300005574000669380000549070003162910002980340001751370001729980001403000881000245069000253858000206100061456000164802000176687000240000061910003620700068435000440600008736000-33900055265000650600012240001263000141700014482000104750002526000214500036084000-51500018059000713400013959000-3928000-278000-690002212500034130000022125000221250003413000183370007203000018337000183370007203000284600004679000598200010181500012474000011171000012051100013072200018866000276260002387000231300021253000299390008604000924500086040009245000186308000160113000150368000169906000186308000160113000973580007699200097358000769920001611500012919000352100095430003470006900017590005682000230000110001593100011799000373260003994300043368000631680007992600011800200011800200075870000122700045600021461000023493700044595000636240003649780004048430002309030002237370001000001000001000001000001451000014490000508200001230910001009660001281750001047560001297240001010660001000000010096600010106600010000014510005082000123091000129724000104856000100000010475600010485600010000014490001281750001020000012770004872000229700048720000416670000908100005074800008333000308500022360006457700058321000960020001136080001000290001175730008707000107200060586000645870001150000130800023295700024815700010117900011888100023295700029890500010117900011888100036497800040484300023090300022373700001451000014510000144900001449000-14330000-143300006515000065150003816100068435000-251100001654000571110007882500065060001224000-14482000-10475000718000-26540006157000-44330005601000062487000-142870000545000487000-6810000-1390700016640001218000640000173000-18248000-120290003776200050458000-58232000-1004900001723000-176060000-75838000-8326000-3807600042132000799260001180020001 Revenue2021
DKK'0002020
DKK'000Denmark277,859240,711Norway144,338120,133Germany96,01676,499Rest of Europe212,710220,609Total revenue by geographical market730,923657,952The company and group only have one activity from sale of clothes. 2 Other operating incomeOther operating income consists of compensation received under the aid packages made available by the governments in the countries where the group have operating entities.
Beside income from aid packages other operating income in 2020 also consists of an adjustment of a provision related to the change in ownership in 2019, from the equity fund Axcel to our current owners, Findos Investor. The positive effect is DKK 55 million in 2020.
1 Other operating incomeOther operating income in 2020 consists of an adjustment of a provision related to the change in ownership in 2019, from the equity fund Axcel to our current owners, Findos Investor. 3 Fees to the auditor appointed by the Annual General Meeting2021
DKK'0002020
DKK'000Statutory audit services404400Other assurance engagements295401Tax services334707Other services1962761,2291,7844 Staff costs2021
DKK'0002020
DKK'000Wages and salaries152,010161,129Pension costs2,7433,667Other social security costs5,5908,516Other staff costs4,4593,375164,802176,687Average number of full-time employees487472Special incentive programmesIn order to strengthen Management and certain leading employees’ interest in the long-term value creation of
the group, a total of 1,193,657,879 warrants have been issued in the financial year. The warrants each give the
right to subscription of a new share in Ball Invest ApS at an exercise price of DKK 0.01. The warrants are granted
over a period of time and subject to the warrant holders continued employment in the Group. Warrants
previously issued in earlier years have been settled. At year end a total of 1,125,000,000 warrents have been
assigned to employees.
Remuneration of the Executive Board is is not disclosed with reference to S. 98(3) of the Danish Financial Statements Act.
2 Staff costs2021
DKK'0002020
DKK'000Wages and salaries2,4006,1912,4006,191Average number of full-time employees1148747211
Remuneration of the Executive Board is is not disclosed with reference to S. 98(3) of the Danish Financial Statements Act.
5 Other financial expenses2021
DKK'0002020
DKK'000Financial expenses from group enterprises2,3492,439Other interest expenses12,1338,03614,48210,4752021
DKK'0002020
DKK'000Financial expenses from group enterprises2,3492,439Other interest expenses12,1338,03614,48210,475<br />4 Other financial expenses2021
DKK'0002020
DKK'000Financial expenses from group enterprises172103Other interest expenses2,3542,0422,5262,145<br />2021
DKK'0002020
DKK'000Financial expenses from group enterprises172103Other interest expenses2,3542,0422,5262,1456 Proposed distribution of profit/loss2021
DKK'0002020
DKK'000Retained earnings22,1253,41322,1253,4136 Proposed distribution of profit and loss2021
DKK'0002020
DKK'000Retained earnings18,3377,20318,3377,2037 Intangible assetsCompleted development projects
DKK'000Acquired rights
DKK'000Goodwill
DKK'000Development projects in progress
DKK'000Cost beginning of year08,317178,2670Exchange rate adjustments014800Additions3,1160011,171Disposals0(545)00Cost end of year3,1167,920178,26711,171Amortisation and impairment losses beginning of year0(2,335)(53,527)0Exchange rate adjustments0(70)00Amortisation for the year(270)(836)(22,925)0Amortisation and impairment losses end of year(270)(3,241)(76,452)0Carrying amount end of year2,8464,679101,81511,171Completed development projects
DKK'000Acquired rights
DKK'000Goodwill
DKK'000Development projects in progress
DKK'000Cost beginning of year08,317178,2670Exchange rate adjustments014800Additions3,1160011,171Disposals0(545)00Cost end of year3,1167,920178,26711,171Amortisation and impairment losses beginning of year0(2,335)(53,527)0Exchange rate adjustments0(70)00Amortisation for the year(270)(836)(22,925)0Amortisation and impairment losses end of year(270)(3,241)(76,452)0Carrying amount end of year2,8464,679101,81511,1718 Development projectsDevelopment projects consists of cost to the development of a new Ecommerce sales platform and cost related
to this development.
The new platform will be launched in 2022 and the company expect to increase the sales volume due to this new platform because of a better customer experience. 9 Property, plant and equipmentOther fixtures and fittings, tools and equipment
DKK'000Leasehold improvements
DKK'000Cost beginning of year55,0075,322Exchange rate adjustments1,057174Additions3,5013,309Disposals(1,664)0Cost end of year57,9018,805Depreciation and impairment losses beginning of year(27,381)(3,009)Exchange rate adjustments(758)(175)Depreciation for the year(10,896)(3,234)Depreciation and impairment losses end of year(39,035)(6,418)Carrying amount end of year18,8662,38710 Financial assetsDeposits
DKK'000Cost beginning of year9,245Disposals(641)Cost end of year8,604Carrying amount end of year8,6047 Financial assetsInvestments in group enterprises
DKK'000Cost beginning of year225,962Cost end of year225,962Revaluations beginning of year(65,849)Exchange rate adjustments1,452Amortisation of goodwill(17,938)Share of profit/loss for the year37,599Other adjustments5,082Revaluations end of year(39,654)Carrying amount end of year186,308Hereof non amortized goodwill 76,9 mDKK.
A specification of investments in subsidiaries is evident from the notes to the consolidated financial statements.11 InventoriesThere is in manufactured goods and goods for resale included goods in transit for 27,738k (2020: 28,124k).12 Deferred tax
Changes during the year2021
DKK'000Beginning of year9,543Recognised in the income statement(7,042)End of year2,501Deferred tax has been recognised in the balance sheet as follows2021
DKK'000
Deferred tax assets3,521
Deferred tax liabilities(1,020)2,501Deferred tax assets comprise temporary differences on intangible assets, property, plant and equipment
and deferred tax losses. The Group expects to utilize tax assets within a shorter period of time, based on the current expectations for the following financial years.8 Deferred tax
Changes during the year2021
DKK'000Beginning of year69Recognised in the income statement278End of year347Deferred tax assets comprise temporary differences as well as deferred tax losses that are expected to be utilized within 3-5 years.13 PrepaymentsPrepayments consists of prepaid expenses mainly prepaid rent.14 Contributed capitalNumberShare capital100,000100,00015 Other provisions Other provisions cover expected costs related to phasing out unprofitable activities.16 Changes in working capital2021
DKK'0002020
DKK'000Increase/decrease in inventories(20,366)(1,725)Increase/decrease in receivables(3,405)4,452Increase/decrease in trade payables etc.6,2576,307Other changes(7,596)(7,380)(25,110)1,65417 Derivative financial instruments
Other receivables include a positive fair value of forward exchange contracts of DKK 552k. The Group hedges future exchange risks relating to sales and purchases and sales of goods. The Grouphas entered into forward exchange contracts for the following 8 months to secure purchases and sales of goods
in the following currencies: USD 33,150k and DKK 107,888k. All values are absolute values. All contracts are
subscribed with the Company’s ordinary bank.
18 Unrecognised rental and lease commitments2021
DKK'0002020
DKK'000Total liabilities under rental or lease agreements until maturity 74,609127,29719 Contingent liabilities2021
DKK'0002020
DKK'000Recourse and non-recourse guarantee commitments19,81121,168Contingent liabilities 19,81121,168The Parent and the Danish subsidiaries participate in a Danish joint taxation
arrangement in which Ball Group Holding ApS serves as the administration company.
According to the joint taxation provisions of
the Danish Corporation Tax Act, the Parent and the Danish subsidiaries are therefore liable for
income taxes etc. for the jointly taxed entities, and also for obligations, if any, relating to the withholding of tax on
interest, royalties and dividends for the jointly
taxed entities. The jointly taxed entities' total known net liability
under the joint taxation arrangement is
disclosed in the administration company's financial statements.9 Contingent liabilitiesThe Entity serves as the administration company in a Danish joint
taxation arrangement. According to the joint
taxation provisions of the Danish Corporation Tax Act, the Entity
is therefore liable for income taxes etc. for the
jointly taxed entities, and also for obligations, if any, relating to
the withholding of tax on interest, royalties and
dividends for these entities.20 Assets charged and collateralBank loans are secured by way of a floating charge of DKK 80,000k. The assets covered by the floating
charge amount to DKK 127,688k and comprise receivables, inventory and operating equipment.
Bank loans are also secured by way of a floating charge which covers rental rights etc.
The group companies Ball Group Denmark, Ball Group ApS, Ball Invest ApS and Ball Group Holding ApS have given negative pledge in the entity's assets. Collateral provided for group enterprisesThe Group has provided guarantee for the group enterprises’ debt with the Group’s main bank. The maximum
limit of the guarantee is DKK 123,194k. Bank loans of group enterprises amount to DKK 3,085k at 31
December 2021. The above mentioned floating charge also secures group enterprises’ debt with the Group’s
main bank.10 Assets charged and collateralThe Entity has no guarantees.21 Transactions with related partiesDuring the financial year, related party transactions have been conducted on an arm’s length basis.12 Non-arm’s length related party transactionsDuring the financial year, related party transactions have been conducted on an arm’s length basis.22 SubsidiariesRegistered inCorporate
formBall Group Denmark ApSBillund, DenmarkApSBall Group Finland OYVaasa, FinlandOYBall Group NetherlandsGroenekan, NetherlandB.V.BGN Retail ASOslo, NorwayASZizzi Fashion SwedenBorås, SwedenAB19661000-4740300018630800016011300042791000630880000508200050820003 Other financial income2021
DKK'0002020
DKK'000Financial income from group enterprises1,2631,208Other financial income02091,2631,4175 Tax on profit/loss for the year2021
DKK'0002020
DKK'000Change in deferred tax(278)(69)(278)(69)11 Related parties with controlling interestThe following parties have a controlling interest:
r
- Sissi 26 FIII Holding GmbH, Munich, shareholder
- Sissi 26 SC FIII Holding GmbH, Munich, shareholderThis annual report has been presented in accordance with the provisions of the Danish Financial Statements Act
governing reporting class C enterprises (large).The accounting policies applied to these consolidated financial statements and parent financial statements are consistent with those applied last year.
falseMaterial errors in previous yearsThe Group has not recognized goods in transit in the comparison year. Therefor there has been recognized
28,124k in the comparison year as manufactured goods and goods for resale and a similar amount as trade
payables. The correction has no effect on result for the year or equity but a minor effect to the equity ratio.Recognition and measurementAssets are recognised in the balance sheet when it is probable as a result of a prior event that future economic
benefits will flow to the Entity, and the value of the asset can be measured reliably.
Liabilities are recognised in the balance sheet when the Entity has a legal or constructive obligation as a
result of a prior event, and it is probable that future economic benefits will flow out of the Entity, and the
value of the liability can be measured reliably.
On initial recognition, assets and liabilities are measured at cost. Measurement subsequent to initial
recognition is effected as described below for each financial statement item.
Anticipated risks and losses that arise before the time of presentation of the annual report and that confirm
or invalidate affairs and conditions existing at the balance sheet date are considered at recognition and
measurement.
Income is recognised in the income statement when earned, whereas costs are recognised by the amounts
attributable to this financial year. <br />Consolidated financial statementsThe consolidated financial statements comprise the Parent and the group enterprises (subsidiaries) that are
controlled by the Parent. Control is achieved by the Parent, either directly or indirectly, holding more than
50% of the voting rights or in any other way possibly or actually exercising controlling influence.<br />Basis of consolidationThe consolidated financial statements are prepared on the basis of the financial statements of the Parent and its subsidiaries. The consolidated financial statements are prepared by combining uniform items. On consolidation, intra-group income and expenses, intra-group accounts and dividends as well as profits and losses on transactions between the consolidated enterprises are eliminated. The financial statements used for consolidation have been prepared applying the Group’s accounting policies.
Subsidiaries’ financial statement items are recognised in full in the consolidated financial statements.Foreign currency translation
On initial recognition, foreign currency transactions are translated applying the exchange rate at the transaction
date. Receivables, payables and other monetary items denominated in foreign currencies that have
not been settled at the balance sheet date are translated using the exchange rate at the balance sheet date.
Exchange differences that arise between the rate at the transaction date and the rate in effect at the payment
date, or the rate at the balance sheet date are recognised in the income statement as financial income or
financial expenses. Property, plant and equipment, intangible assets, inventories and other non-monetary
assets that have been purchased in foreign currencies are translated using historical rates.
When recognising foreign subsidiaries and associates that are independent entities, the income statements
are translated at average exchange rates for the months that do not significantly deviate from the rates at
the transaction date. Balance sheet items are translated using the exchange rates at the balance sheet date.
Exchange differences arising out of the translation of foreign subsidiaries’ equity
at the beginning of the year at the balance sheet date exchange rates as well as out of the translation of
income statements from average rates to the exchange rates at the balance sheet date are recognised directly
in equity.Derivative financial instrumentsOn initial recognition in the balance sheet, derivative financial instruments are measured at cost and
subsequently at fair value. Derivative financial instruments are recognised under other receivables or other
payables.
Changes in the fair value of derivative financial instruments classified as and complying with the
requirements
for hedging future transactions are recognised directly in equity. When the hedged transactions
are realised, the
accumulated changes are recognised as part of cost of the relevant financial statement
items.
For derivative financial instruments that do not comply with the requirements for being treated as hedging
instruments, changes in fair value are recognised currently in the income statement as financial income or
financial expenses.RevenueRevenue from the sale of goods for resale is recognised in the income statement when delivery is made and
risk has passed to the buyer. Revenue is recognised net of VAT, duties and sales discounts and is measured
at fair value of the consideration fixed.Other operating incomeOther operating income comprises income of a secondary nature as viewed in relation to the Entity’s primary
activities.Cost of salesCost of sales comprises goods consumed in the financial year measured at cost, adjusted for ordinary
inventory
writedowns.Other external expensesOther external expenses include expenses relating to the Entity’s ordinary activities, including expenses for
premises, stationery and office supplies, marketing costs, etc. This item also includes writedowns of
receivables recognised in current assets.Staff costsStaff costs comprise salaries and wages as well as social security contributions, pension contributions, etc
for entity staff.Depreciation, amortisation and impairment lossesDepreciation, amortisation and impairment losses relating to property, plant and equipment and intangible
assets comprise depreciation, amortisation and impairment losses for the financial year, calculated on the
basis of the residual values and useful lives of the individual assets and impairment testing as well as gains
and losses from the sale of intangible assets as well as property, plant and equipment.Income from investments in group enterprisesIncome from investments in group enterprises comprises the pro rata share of the individual enterprises’
profit/loss after full elimination of internal profits or losses.Other financial incomeOther financial income comprises interest income, including interest income on receivables from group enterprises,
net capital or exchange gains on payables and transactions in foreign currencies, amortisation of
financial assets as well as tax relief under the Danish Tax Prepayment Scheme etc.Other financial expensesOther financial expenses comprise interest expenses, including interest expenses on payables to group enterprises,
net capital or exchange losses on payables and transactions in foreign currencies etc.Tax on profit/loss for the yearTax for the year, which consists of current tax for the year and changes in deferred tax, is recognised in the
income statement by the portion attributable to the profit for the year and recognised directly in equity by
the
portion attributable to entries directly in equity.The Parent is jointly taxed with Ball Group Denmark ApS all of its Danish group enterprises. The current Danish income tax is allocated
among
the jointly taxed entities proportionally to their taxable income (full allocation with a refund
concerning tax
losses).GoodwillGoodwill is the positive difference between cost and fair value of assets and liabilities arising from acquisitions.
Goodwill is amortised straight-line over its estimated useful life, which is fixed based on the experience
gained by Management for each business area. Useful life is determined based on an assessment of whether
the enterprises are strategically acquired enterprises with a strong market position and a long-term earnings
profile, and whether the amount of goodwill includes intangible resources of a temporary nature that cannot
be separated and recognised as separate assets. Useful lives are reassessed annually. The amortisation
periods used are 7-20 years and residual value is 0%.
Goodwill is written down to the lower of recoverable amount and carrying amount.<br />Intellectual property rights etc.Intellectual property rights etc comprise acquired intellectual property rights (rental rights).Development projects on clearly defined and identifiable products and processes, for which the technical rate
of utilisation, adequate resources and a potential future market or development opportunity in the enterprise
can be established, and where the intention is to manufacture, market or apply the product or process in
question, are recognised as intangible assets. Other development costs are recognised as costs in the income
statement as incurred. When recognising development projects as intangible assets, an amount equalling
the costs incurred less deferred tax is taken to equity in the reserve for development costs that is reduced
as the development projects are amortised and written down.
The cost of development projects comprises costs such as salaries and amortisation that are directly and
indirectly attributable to the development projects.
Indirect production costs in the form of indirectly attributable staff costs and amortisation of intangible
assets and depreciation on property, plant and equipment used in the development process are recognised
in
cost based on time spent on each project.
Completed development projects are amortised on a straight-line basis using their estimated useful lives
which are determined based on a specific assessment of each development project. If the useful life cannot
be estimated reliably, it is fixed at 10 years. For development projects protected by intellectual property
rights,
the maximum period of amortisation is the remaining duration of the relevant rights. The amortisation
periods
used are 3-5 years. Intellectual property rights acquired are measured at cost less accumulated amortisation, which is set at 10
years and the residual value is 0%.
Intellectual property rights etc are written down to the lower of recoverable amount and carrying amount.Property, plant and equipmentOther fixtures and fittings, tools and equipment are measured at cost less accumulated depreciation and
impairment losses.
Cost comprises the acquisition price, costs directly attributable to the acquisition and preparation costs of
the asset until the time when it is ready to be put into operation.
The basis of depreciation is cost less estimated residual value after the end of useful life. Straight-line depreciation
is made on the basis of the following estimated useful lives of the assets:Other fixtures and fittings, tools and equipment3-5 yearsLeasehold improvements3-10 yearsFor leasehold improvements and assets subject to finance leases, the depreciation period cannot exceed
the contract period.
Estimated useful lives and residual values are reassessed annually.
Items of property, plant and equipment are written down to the lower of recoverable amount and carrying
amount.Investments in group enterprisesIn the parent financial statements, investments in group enterprises are recognised and measured according
to the equity method. This means that investments are measured at the pro rata share of the enterprises'
equity value plus unamortised goodwill and plus or minus unrealised intra-group profits and losses.
Goodwill is calculated as the difference between cost of the investments and fair value of the pro rata share
of assets and liabilities acquired. Goodwill is amortised straight-line over its estimated useful life, which is
fixed based on the experience gained by Management for each business area. Useful life is determined based
on an assessment of whether the enterprises are strategically acquired enterprises with a strong market
position and a long-term earnings profile and whether the amount of goodwill includes intangible resources
of a temporary nature that cannot be separated and recognised as separate assets. Useful lives are reassessed
annually. The amortisation periods used are 7-20 years.
Investments in group enterprises are written down to the lower of recoverable amount and carrying amount.
InventoriesInventories are measured at the lower of cost using the FIFO method and net realisable value.
Cost consists of purchase price plus delivery costs. Cost of manufactured goods and work in progress consists
of costs of raw materials, consumables, direct labour costs and indirect production costs.
The net realisable value of inventories is calculated as the estimated selling price less completion costs and
costs incurred to execute sale.ReceivablesReceivables are measured at amortised cost, usually equalling nominal value, less writedowns for bad and
doubtful debts.Deferred taxDeferred tax is recognised on all temporary differences between the carrying amount and the tax-based
value of assets and liabilities, for which the tax-based value is calculated based on the planned use of each
asset or the planned settlement of each liability.
Deferred tax assets, including the tax base of tax loss carryforwards, are recognised in the balance sheet at
their estimated realisable value, either as a set-off against deferred tax liabilities or as net tax assets.PrepaymentsPrepayments comprise incurred costs relating to subsequent financial years. Prepayments are measured at
cost.CashCash comprises cash in hand and bank deposits.Other provisionsOther provisions comprise anticipated costs of non-recourse guarantee commitments, returns, decided and published restructuring, etc.
Other provisions are recognised and measured as the best estimate of the expenses required to settle the
liabilities at the balance sheet date. Provisions that are estimated to mature more than one year after the
balance sheet date are measured at their discounted value.
Operating leasesLease payments on operating leases are recognised on a straight-line basis in the income statement over
the
term of the lease.Other financial liabilitiesOther financial liabilities are measured at amortised cost, which usually corresponds to nominal value.Tax payable or receivable Current tax payable or receivable is recognised in the balance sheet, stated as tax computed on this year's
taxable income, adjusted for prepaid tax.Cash flow statementThe cash flow statement shows cash flows from operating, investing and financing activities, and cash
and cash equivalents at the beginning and the end of the financial year.
Cash flows from operating activities are presented using the indirect method and calculated as the operating
profit/loss adjusted for non-cash operating items, working capital changes, and financial income, financial expenses and income tax paid.
Cash flows from investing activities comprise payments in connection with acquisition and divestment of
enterprises, activities and fixed asset investments, and purchase, development, improvement and sale,
etc. of intangible assets and property, plant and equipment.
Cash flows from financing activities comprise changes in the size or composition of the contributed capital
and related costs, and the raising of loans, repayments of interest-bearing debt, including lease liabilities, purchase of treasury shares and payment of dividend.
Cash and cash equivalents comprise cash and short-term securities with an insignificant price risk less
short-
term bank loans.
The cash flow statement shows cash flows from operating, investing and financing activities, and cash
and cash equivalents at the beginning and the end of the financial year.
Cash flows from operating activities are presented using the indirect method and calculated as the operating
profit/loss adjusted for non-cash operating items, working capital changes, and financial income, financial expenses and income tax paid.
Cash flows from investing activities comprise payments in connection with acquisition and divestment of
enterprises, activities and fixed asset investments, and purchase, development, improvement and sale,
etc. of intangible assets and property, plant and equipment.
Cash flows from financing activities comprise changes in the size or composition of the contributed capital
and related costs, and the raising of loans, repayments of interest-bearing debt, including lease liabilities, purchase of treasury shares and payment of dividend.
Cash and cash equivalents comprise cash and short-term securities with an insignificant price risk less
short-
term bank loans.
2022-03-04Kuno Kildetoft Mehlsen