20016175 2022-01-01 2022-12-31 20016175 2021-01-01 2021-12-31 20016175 2020-01-01 2020-12-31 20016175 2019-01-01 2019-12-31 20016175 2018-01-01 2018-12-31 20016175 2022-01-01 2022-12-31 1 20016175 2021-01-01 2021-12-31 1 20016175 2020-01-01 2020-12-31 1 20016175 2019-01-01 2019-12-31 1 20016175 2018-01-01 2018-12-31 1 20016175 2022-12-31 20016175 2021-12-31 20016175 2020-12-31 20016175 2019-12-31 20016175 2018-12-31 20016175 2018-01-01 2018-12-31 2 20016175 2019-01-01 2019-12-31 2 20016175 2020-01-01 2020-12-31 2 20016175 2021-01-01 2021-12-31 2 20016175 2022-01-01 2022-12-31 2 20016175 2018-01-01 2018-12-31 3 20016175 2019-01-01 2019-12-31 3 20016175 2020-01-01 2020-12-31 3 20016175 2021-01-01 2021-12-31 3 20016175 2022-01-01 2022-12-31 3 20016175 2022-01-01 2022-12-31 1 20016175 2022-01-01 2022-12-31 2 20016175 2022-01-01 2022-12-31 1 20016175 2022-01-01 2022-12-31 2 20016175 2022-01-01 2022-12-31 3 20016175 2022-01-01 2022-12-31 4 20016175 2022-01-01 2022-12-31 5 20016175 2022-01-01 2022-12-31 6 20016175 2022-01-01 2022-12-31 7 20016175 2022-01-01 2022-12-31 8 20016175 2022-01-01 2022-12-31 9 20016175 2022-01-01 2022-12-31 1 20016175 2022-01-01 2022-12-31 2 20016175 2020-12-31 fsa:ContributedCapitalMember 20016175 2020-12-31 fsa:ReserveForDevelopmentExpenditureMember 20016175 2020-12-31 fsa:ReserveForNetRevaluationAccordingToEquityMethodMember 20016175 2020-12-31 fsa:RetainedEarningsMember 20016175 2020-12-31 fsa:ProposedDividendRecognisedInEquityMember 20016175 2021-01-01 2021-12-31 fsa:ContributedCapitalMember 20016175 2021-01-01 2021-12-31 fsa:ReserveForDevelopmentExpenditureMember 20016175 2021-01-01 2021-12-31 fsa:ReserveForNetRevaluationAccordingToEquityMethodMember 20016175 2021-01-01 2021-12-31 fsa:RetainedEarningsMember 20016175 2021-01-01 2021-12-31 fsa:ProposedDividendRecognisedInEquityMember 20016175 2021-12-31 fsa:ContributedCapitalMember 20016175 2021-12-31 fsa:ReserveForDevelopmentExpenditureMember 20016175 2021-12-31 fsa:ReserveForNetRevaluationAccordingToEquityMethodMember 20016175 2021-12-31 fsa:RetainedEarningsMember 20016175 2021-12-31 fsa:ProposedDividendRecognisedInEquityMember 20016175 2022-01-01 2022-12-31 fsa:ContributedCapitalMember 20016175 2022-01-01 2022-12-31 fsa:ReserveForDevelopmentExpenditureMember 20016175 2022-01-01 2022-12-31 fsa:ReserveForNetRevaluationAccordingToEquityMethodMember 20016175 2022-01-01 2022-12-31 fsa:RetainedEarningsMember 20016175 2022-01-01 2022-12-31 fsa:ProposedDividendRecognisedInEquityMember 20016175 2022-12-31 fsa:ContributedCapitalMember 20016175 2022-12-31 fsa:ReserveForDevelopmentExpenditureMember 20016175 2022-12-31 fsa:ReserveForNetRevaluationAccordingToEquityMethodMember 20016175 2022-12-31 fsa:RetainedEarningsMember 20016175 2022-12-31 fsa:ProposedDividendRecognisedInEquityMember 20016175 2022-01-01 2022-12-31 fsa:ProposedDividendRecognisedInEquityMember 20016175 2021-01-01 2021-12-31 fsa:ProposedDividendRecognisedInEquityMember 20016175 2022-01-01 2022-12-31 fsa:TransferredToReserveForDevelopmentExpenditureMember 20016175 2021-01-01 2021-12-31 fsa:TransferredToReserveForDevelopmentExpenditureMember 20016175 2022-01-01 2022-12-31 fsa:ReserveForNetRevaluationAccordingToEquityMethodMember 20016175 2021-01-01 2021-12-31 fsa:ReserveForNetRevaluationAccordingToEquityMethodMember 20016175 2022-01-01 2022-12-31 fsa:RetainedEarningsMember 20016175 2021-01-01 2021-12-31 fsa:RetainedEarningsMember iso4217:DKK xbrli:pure iso4217:EUR Louise Rubæk Andersen Nets Denmark A/S Klausdalsbrovej 601 DK 2750 Ballerup www.nets.eu 20016175 638700000 625200000 603800000 961200000 974500000 152800000 135500000 95500000 254600000 279400000 29100000 22300000 -19300000 160900000 182500000 14400000 -35300000 -2100000 -4200000 -6800000 92900000 2578300000 50700000 137600000 148500000 2619800000 2470700000 2339600000 1860400000 2073500000 32000000 13800000 15900000 50500000 16000000 Investment intangible assets Investment intangible assets Investment intangible assets Investment intangible assets Investment intangible assets 121400000 87500000 69200000 89300000 62100000 951900000 891800000 343400000 701600000 710500000 0.05 0.04 -0.03 0.17 0.19 Liquidity ratio Liquidity ratio Liquidity ratio Liquidity ratio Liquidity ratio 82000000 79000000 44000000 106000000 117000000 0.36 0.36 0.15 0.38 0.34 0.10 4.18 0.10 0.19 0.20 Business Nets Denmark A/S’ objective is to conduct business with payment and foundation transmission of information, card and data service activities and other business related thereto as well as promote the development and use of a common infrastructure for the financial institutions. 2022 Highlights 2022 reinforced the mergers between Nexi, Nets and SIA to NexiGroup and continued our journey in becoming the European PayTech leader. The strength of the combined Group was further boosted and the long-term strategy as leading European PayTech combining a large European scale with deep market and customer proximity was announced in September at our Capital Markets Day with a clear focus on accelerated growth in SME, eCommerce and Advanced Digital Issuing. This new strategy also triggered the appointment of Torsten Hagen Jørgensen as Group Head of Issuing and Jeppe Juul-Andersen as new Country General Manager Denmark. The impact of Covid-19 on society, which affected Nets’ business by supressing overall volumes abated in 2022. The general trend of accelerating digital payment solutions was reinforced under Covid-19 and continued in 2022. This year stores that sell physical products enjoyed better times, with year-on-year growth for Nordic countries in 2022. Webshops, are currently facing headwinds. While the travel and service sectors, which suffered tremendously during the pandemic, are making a huge comeback, webshops selling products have it tougher. This is natural following the very strong growth in recent years, and also due to the past couple of years when the pandemic forced many merchants to quickly embrace online sales. Thus, as consumers return to physical sales locations, many webshops are seeing decreased sales. 2022 was also sadly a year where war returned on European soil. The war and the ensuing sanctions enforced by the European and International community also created a need for a swift and strict adherence to the various sanction regimes also within the payment industry. This year was also characterized by rising inflation due in part to energy prices soaring. The combination of high energy costs, inflation and interest rate hikes, have somewhat dampened the overall gains we achieved from the lifting of Covid-19 restrictions. On 15th June 2022, the sale of Nets Denmark A/S’ fully owned Norwegian subsidiary, invoice distribution solutions business Edigard AS, to AnaCap Financial Partners was announced. On July 7th, the sale was completed. On 27th September 2022, it was announced that Nets initiated the process to find a new owner for the Nets eID business. The process is ongoing and not expected to be completed un till 2023 or 2024. Nets continues to seek growth opportunities through acquiring strategic asssets and Nets acquired Polish company, Team4U Sp.z o.o. to further strengthen the European footprint. The Acquisition was completed in October 2022 when Nets Denmark A/S’ subsidiary PeP (Centrum Rozliczen Elektronicznych Polskie ePlatnosci) acquired 75% of the shares in the company. Our Issuer & eSecurity business continued its track record of success in winning new customers, including Germany’s Commerzbank. Commerzbank has chosen Nets, part of the European PayTech NexiGroup, to develop a stream-lined and scalable solution for processing credit, debit and prepaid card which will be managed by Nets going forward. Being trusted by Commerzbank to offering our modular, flexible and customer-focused services is a key milestone for our issuing solutions business in Germany and the ambition is to continue to consistently expand our market presence also offering innovative issuing end-to-end services with modularity, short time-to-market and scaling at its core. In the Nordics, Danske Bank succeeded in bringing Nets’ domestic card scheme, Dankort, to Apple Pay, and prolonged Nets’ long-term partnership with Nordea in both Denmark and Finland. Also in Denmark BOKIS, a Danish payment and card company, and Nets, part of the NexiGroup, entered into a new agreement that runs until 31 December 2029. BOKIS member banks will continue to issue and process the Danish domestic card, Dankort, and international payment cards through Nets. BOKIS represent approx. 45% of the Danish card payment market. Business model Nets Denmark A/S create value by delivering payments and digital services that are used by thousands of merchants, hundreds of financial institutions, thousands of corporates and millions of consumers across the Nordic countries, Poland and Baltic regions, and that benefit communities and society as a whole. Nets Denmark A/S invest in, maintain and operate a considerable number of services critical to several national payment infrastructures, such as domestic debit card schemes, clearing systems, e-identity schemes and payment platforms, security, stability and high performance remain our top priorities. As a leading provider of digital payment services and related technology solutions across the Nordic region and subsidiaries in Poland, Nets Denmark A/S sits at the centre of the digital payments eco-system, and we operate a deeply entrenched network which connects merchants, financial institutions, corporate customers and consumers, enabling them to make and receive payments as well as, increasingly, utilise value-added services to help them improve their respective activities. Nets Denmark operates across the entire value chain from payment capture and authorisation through to processing, clearing and settlement. Nets enables digital payments across all major channels – in person, online, and via a mobile device – and a large number of our services are used by a majority of consumers in the Nordic countries and Poland, such as direct debit payments, card payments, digital authentication and invoice solutions. While we offer merchants acquiring solutions, point-of-sale terminals and e-commerce directly to the merchants, services delivered to the corporates, such as direct debit and invoicing solutions, are offered in close co-operation with financial institutions. Other solutions, e.g. card payments and the national identity schemes NemID/MitID and BankID, are also offered in close co-operation with the financial institutions. In Denmark, we own some of our key services, such as Dankort, while we in Norway operate similar services, including invoice solutions, direct debit payments and BankAxept card payments, on behalf of and in close co-operation with our customers. Financial Operating result for the year was EUR 29.1 million, which was an increase of EUR performance 6.8 million compared to 2021 (EUR 22.3 million in 2021). The increase was mainly driven by stronger topline performance and strong cost management. Gain from sale of shares, EUR 68.2 million, included sale of Edigard AS. In 2021, the gain consisted of the sale of the account-to-account business to Mastercard, in total EUR 2,610.1 million. Net financials was an income of EUR 14.4 million compared to a cost of EUR 35.3 million in 2021. The income was primarily driven by exchange rate income related to foreign currency intercompany positions and partly offset by intercompany interests. Tax for the year was a cost of EUR 11.3 million, compared to a cost of EUR 0.3 million in 2021. The increase in tax for the year, was primarily driven by improved operating result for the year. Net result for the year was EUR 92.9 million, compared to EUR 2,578.3 million in 2021. 2021 was significantly impacted by the gain from the sale of the account-to-account business to Mastercard. The result in Nets Denmark A/S is in line with the expectations presented for 2022, in the 2021 financial statement. Investments amounted to EUR 153.4 million and included primarily new issuing card platform as well as new innovative payment solutions in our Merchant service business. Equity amounted to EUR 951.9 million, which is equivalent to a solvency ratio of 36%, and at the same level as compared to 36% at the end of 2021. The Danish Payment Services Act requires that companies offering payment services must have authorisation from the Danish Financial Supervisory Authority to operate as a Payment Institution. Nets Denmark A/S has been approved as a Payment Institution, and the capital requirement in accordance with the rules of the Danish Financial Supervisory Authority has been calculated at EUR 32.8 million / DKK 244 million. Merchant Services Merchant Services provides our merchant customers with payment acceptance solutions across channels (in store, online and mobile) and with the broadest range of payment methods in the Nordic region, including Visa, MasterCard, JCB, and local payment brands. Merchant Services is present across Nordic countries, Poland and the Baltic countries and works with a broad set of value-adding partners across the region. Merchant Services manages and simplifies merchants’ payments flow. We enable merchants to accept payments, easily and without friction regardless of channels, receive the settlement in their bank account and get detailed reconciliation information and statistics, all in different currencies and frequencies depending on merchant needs and consumer preferences. The acquiring revenue is primarily driven by a value-based fee per transaction with monthly subscription fees for additional services, while the terminal sales revenue is primarily driven by monthly subscription fees on terminals from rental fees, software fees and value-added services such as special support and/or payments from customers buying their terminals. Issuer & eSecurity Issuer & eSecurity Services provides processing services for issuers of payment Services cards, primarily banks, in the Nordic region as well as complementary services, including Consumer Management Services (CMS), Fraud & Dispute solutions, and Mobile Services. The business segment also operates and/or processes the national debit card systems in Denmark and Norway, branded Dankort and BankAxept respectively. These schemes have been instrumental in the establishment of a modern Nordic electronic card payment infrastructure. Issuer & eSecurity Services also offers national e-identity solutions in Denmark and Norway. Risk management Risk management is an integral part of the way we work and helps us understand and manage the uncertainties inherent in our strategy and in the day-to-day business operations. Nets operates in the payments industry, which is characterised by constant technological advances, evolving customer behaviour and altering regulatory requirements, and where prudent risk management is vital to support the achievement of business objectives. At Nets, risk management is anchored throughout the organisation to support management awareness and oversight, enabling risk-based decisions. Nets maintains an enterprise risk landscape that is discussed with business units and group functions, in order to provide risk insights to executive management. The Board of Directors of Nets Denmark A/S is responsible for the overall governance and oversees our risk landscape and approves strategies and policies within the areas of risk management, security, business continuity, GDPR, merchant acquiring credit risk, treasury risk, anti-money laundering and competition law compliance. A “three lines of defence” model is implemented throughout the organisation and forms the basis for risk decision-making within Nets. The model is used to structure roles, responsibility and accountability for decision-making concerning risk and internal controls, and to ensure good collaboration between the three lines. • First line – Business segments and Group units The business units and Nets group functions form the first line of defence and perform the day to-day risk-bearing activities. They are responsible for identifying, evaluating, mitigating, monitoring and reporting the risks within those activities in accordance with the risk management processes and applicable internal procedures. • Second line – Risk management and Compliance & Regulatory Nets Group Risk Management, Nets Group Security, IT Risk & Compliance and Nets Group Compliance & Regulatory constitute the second line of defence and act independently of the activities they control. They provide oversight and compliance by setting requirements through policies, and support the implementation and monitoring hereof through frameworks, tools, processes and control activities, enabling risk and compliance management • Third line – Independent assurance The third line is maintained by Nets’ internal auditors, providing independent assurance concerning the risk and control functions performed by the first and second lines. Internal Systems Audit coordinates and performs the audit of the general IT controls in Nets, the IT-based user systems and applications and the IT systems offered for the exchange of data with the connected data centres and associated financial enterprises. Additionally, the core business processes in Nets and projects, which are important to Nets’ customers or internally within Nets, are audited. Key risks Top management management reviews, discusses, challenges and provides feedback on the enterprise risk landscape and, when necessary, direct risk mitigating actions. Listed below is a high-level summary of risks across Nets. The risks are not listed in any particular order of priority and only contain example mitigations. Industry and market transformation The market transformation from cash to digital payments is impacting consumer behaviour. The underlying market development is driven by technological evolution, regulatory changes and new market participants, such as innovative independent software vendors. This trend is accelerated by the Covid-19 pandemic where digital payments are preferred over cash. The payments eco-system is, as a result, developing at a high pace and market participants must evolve with it if they want to claim part of the underlying market growth. Information security and operational stability Every day, Nets processes and stores large amounts of data related to the processing of financial transactions and digital authentication schemes, connecting merchants, financial institutions, corporate customers, and consumers, and enabling them to make and receive digital payments and verify identities. Due to the high value and sensitive nature of such information assets, and the systemic importance to several national financial infrastructures, Nets faces a range of threats from different threat agents such as hacktivists, organised crime, and nation states. Relevant security threats include social engineering such as phishing and spear-phishing, hacking, distributed denial-of-service (DDoS) or supply chain attacks, as well as system malware or ransomware attacks. Equally important is the stability of those platforms as they are critical for broader society as well as for our customers, government organisations and authorities. Potential risk causes include insufficient application deployment and testing processes, incident management issues, failing infrastructure components or data centre transitions.. Merchant Service credit risk Nets is selling acquiring services to merchants, who receive immediate payment as well as pre-payments for their goods and services. In case the merchant is not able or willing to deliver the prepaid goods or services to their customers due to, e.g., insolvency or fraud, the customer’s bank will charge-back the amount from Nets who will claim the amount from the merchant. If this proves unsuccessful, Nets will bear the loss. Ukraine War The Ukraine War has had an immediate impact on energy prices that affect are and overall operating costs. Furthermore, the European and International Community have imposed financial and economic sanctions on Russia that Nets – as a part of Nexi Group – has to implement and adhere to. At the onset of the war Nets also managed employee concerns and requests pertaining to the war from employees throughout the Nets perimeter. Revenue – The sanctions regime has only had a negligible effect on Nets’ revenues as there were relatively small transactions from Russian issued cards after the schemes unilaterally decided to cease operations in Russia and Belarus. Business continuity – while inflationary pressure and increased energy costs have had an affect on consumer confidence the overall level of payment transactions have weathered these conditions. IT security & cyber resilience: The Ukraine War has heightened the threat of cybersecurity and various malicious attacks. While the threat levels have increased, Nets has managed all attacks satisfactory, and the overall number and extent of threats has been less than expected. Regulatory environment Nets is subject to laws and regulations in the different jurisdictions in which it operates. The European Payment Services Directive (PSD2), Interchange Fee Regulation, Instant Payment Regulation, Digital Euro development, General Data Protection Regulation (GDPR), Anti-Money Laundering/Counter Terrorism Financing (AML/CTF) and Outsourcing legislation are examples of requirements where Nets is investing time and resources to maintain its adherence across the company. Outlook for 2023 2023 outlook presenting uncertainties due to macroeconomic scenario (mix between recession and inflation impact) and increasing competitive challenges. Banks remain under pressure, often looking to reduce costs on processing and outsourced platforms, while continuing their product and IT digital transformation journeys; payments represents a source of differentiation and an asset for monetization opportunities but speed and effectiveness of commercial execution remains a challenge. Nets, as part of the Nexi Group, will continue to streamline operations and processes and invest in innovative solutions with an ambition to create value for our customers, partners and shareholders, and deliver on stability, security and integrity to build the future. Corporate social With respect to the statutory statement on social responsibility in accordance with responsibility section 99a of the Danish Financial Statements Act, please refer to the report on (CSR) Corporate Social Responsibility 2022 for Nets A/S, Klausdalsbrovej 601, DK-2750 Ballerup, Cvr: 34427497. Report on gender With respect to the gender composition of board members elected by the composition of General Assembly as well as the policy for the underrepresented gender on other management managerial levels in accordance with the Danish Financial Statements Act section 99b, please refer to the report on Corporate Social Responsibility 2022 for Nets A/S, Klausdalsbrovej 601, DK-2750 Ballerup, Cvr: 34427497. Report on data With respect to the statutory statement on data ethics in accordance with section ethics 99d of the Danish Financial Statements Act, please refer to the report on Corporate Social Responsibility 2022 for Nets A/S, Klausdalsbrovej 601, DK-2750 Ballerup, Cvr: 34427497. Statement by the Board of Directors and the Executive Board The Board of Directors and the Executive Board have today considered and adopted the Annual Report of Nets Denmark A/S for the financial year 1 January – 31 December 2022. The Annual Report is prepared in accordance with the Danish Financial Statements Act. It is our opinion that the Financial Statements give a true and fair view of the Company's financial position as at 31 December 2022 and of the results of the Company's operations for the financial year 1 January – 31 December 2022. In our opinion, Management's Review includes a true and fair account of the matters addressed in the Review. We recommend that the Annual Report be adopted at the Annual General Meeting. Ballerup Torsten Hagen Jørgensen CEO Jeppe Juul-Andersen Bo Nilsson Chairman Janus Hillerup Deputy Chairman Henrik Schiøtz Nielsen Federico Gallo Francesca Paramico Renzulli Frank Asger Olsen Yaeli Friis Beate Fjeld Ulleland Teemu Veikko Lantz To the Shareholder of Nets Denmark A/S Opinion In our opinion, the Financial Statements give a true and fair view of the financial position of the Company at 31 December 2022, and of the results of the Company’s operations for the financial year 1 January - 31 December 2022 in accordance with the Danish Financial Statements Act. We have audited the Financial Statements of Nets Denmark A/S for the financial year 1 January - 31 December 2022, which comprise income statement, balance sheet, statement of changes in equity and notes, including a summary of significant accounting policies (“financial statements”). Basis for Opinion We 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 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. Statement on Management is responsible for Management’s Review. Management's Review Our opinion on the financial statements does not cover 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 Management’s Review and, in doing so, consider whether 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 Management’s Review provides the information required under the Danish Financial Statements Act. Based on the work we have performed, in our view, 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 in Management’s Review. Management's Management is responsible for the preparation of Financial Statements Responsibilities for the 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 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. Auditor's Our objectives are to obtain reasonable assurance about whether the Responsibilities for the Audit of the Financial financial statements as a whole are free from material misstatement, Statements 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 financial statements. As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the 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. Hellerup PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab 33771231 Michael Groth Hansen State Authorised Public Accountant mne33228 Henrik Kyhnauv State Authorised Public Accountant mne40028 638700000 625200000 269100000 274600000 216800000 215100000 123700000 113200000 29100000 22300000 -7900000 -21600000 1000000 3100000 90400000 2613900000 3700000 300000 29100000 26000000 18400000 61600000 104800000 2578600000 11900000 300000 92900000 2578300000 18400000 28600000 43100000 52300000 168500000 135900000 121700000 111200000 351700000 328000000 7300000 7300000 77800000 74900000 95600000 94300000 834100000 859000000 8900000 11300000 11700000 6700000 14600000 11200000 2000000 2000000 871300000 890200000 1318600000 1312500000 7900000 1900000 94600000 89800000 87700000 381200000 1300000 1200000 43300000 36800000 1045100000 973300000 248200000 183000000 1301200000 1158200000 2619800000 2470700000 35500000 35500000 916400000 856300000 951900000 891800000 47400000 54100000 17700000 17200000 3900000 4000000 14600000 14000000 83600000 89300000 10000000 8600000 37900000 41400000 705800000 437900000 364500000 681200000 26500000 8900000 151500000 134500000 800000 1200000 1584300000 1489600000 2619800000 2470700000 35500000 151500000 331900000 -175400000 0 343500000 0 0 0 -3200000 0 -3200000 0 0 0 0 2043800000 2043800000 0 0 0 15300000 0 15300000 0 0 0 -15300000 0 -15300000 0 0 0 -3400000 0 -3400000 0 0 0 -100000 0 -100000 0 0 0 7300000 0 7300000 0 33100000 -331900000 833300000 2043800000 2578300000 35500000 184600000 0 671700000 0 891800000 35500000 184600000 0 671700000 0 891800000 0 0 0 28400000 0 28400000 0 0 0 -4200000 0 -4200000 0 35200000 0 57700000 0 92900000 35500000 219800000 0 696600000 0 951900000 1. Accounting policies The annual report has been prepared in accordance with the provisions applying to reporting class C large enterprises under the Danish Financial Statements Act. The functional currency is Euro (EUR). Nets Denmark A/S’s management has an strategic, international view, and have decided that the presentation currency that represents this best is EUR, compared to DKK previous years. Comparison figures are restated using the Historic cost price, and historic balance sheet rates for balance sheet items, and historic average rate for Profit & Loss items. Goodwill is amortised on a straight-line basis over the estimated useful life of up to 15 years, determined on the basis of Management’s experience with the individual business areas. The useful life of goodwill is up to 15 years, as the subsidiaries have a strong market position and a long earnings profile. The accounting policy of Nets Denmark A/S was previous years, 5-10 years. Pursuant to section 112 of the Danish Financial Statements Act, no consolidated financial statements have been prepared for Nets Denmark A/S and subsidiaries as the companies are included in the consolidated financial statements of Nets A/S, Klausdalsbrovej 601, 2750 Ballerup. Pursuant to section 96(3) of the Danish Financial Statements Act, no auditors fee statement is prepared as the Company is included in the consolidated financial statements of Nets A/S, Klausdalsbrovej 601, 2750 Ballerup. Assets are recognised in the balance sheet when it is probable that future economic benefits will flow to the Company and the value of the asset can be measured reliably. Liabilities are recognised in the balance sheet when it is probable that future economic benefits will flow from the company, and the value of the liabilities can be measured reliably. On initial recognition, assets and liabilities are measured at cost. Subsequently, assets and liabilities are measured as described below for each individual financial statement item. In recognising and measuring assets and liabilities, any gains, losses and risks occurring prior to the presentation of the Annual Report that evidence conditions existing at the balance sheet date are taken into account. Income is recognised in the income statement as earned. Equally, costs incurred to generate the year's earnings are recognised, including depreciation, amortisation, impairment losses and provisions as well as reversals as a result of changes in accounting estimates of amounts which were previously recognised in the income statement. Foreign currency On initial recognition, transactions denominated in foreign currencies are translation translated at the exchange rates at the transaction date. Foreign exchange differences arising between the exchange rates at the transaction date and at the date of payment are recognised in the income statement as financial income or financial expenses. Receivables and payables and other monetary items denominated in foreign currencies are translated at the exchange rates at the balance sheet date. The difference between the exchange rates at the balance sheet date and at the date at which the receivable or payable arose or was recognised in the latest financial statements is recognised in the income statement as financial income or financial expenses. On recognition in the financial statements of subsidiaries with another functional currency than EUR, the income statements are translated at the exchange rates at the transaction date and the balance sheet items are translated at the exchange rates at the balance sheet date. The average exchange rate for the individual month is used as the exchange rate at the transaction date to the extent that this does not differ significantly. Exchange rate differences arisen when translating foreign subsidiaries' equity at the beginning of the year using the exchange rate at the balance sheet date and when translating income statements from average exchange rates at the transaction date to the exchange rate at the balance sheet date are recognised directly in equity. On recognition of foreign branches which are integrated entities, monetary items are translated at the exchange rates at the balance sheet date. Non-monetary items are translated at the exchange rates at the acquisition date or at the date of any subsequent revaluation or impairment of the asset. Income statement items are translated at the exchange rates at the transaction date, although items derived from non-monetary items are translated at the historical exchange rates applying to the non-monetary items. Income statement Revenue Nets Denmark A/S earns revenue on a transactional basis and on a non-transactional basis: Transaction-based revenue – includes revenue generated through a combination of (a) a fee per transaction processed (which represents the primary revenue model in the Financial & Network Services segments) and (b) an ad valorem fee based on the value of transactions acquired (which represents the primary revenue model of the Merchant Services segment). Non-transaction-based revenue – includes revenue generated through provision of subscription-based fees related to the sale and rental of point-of-sale (POS) and related solutions and fees related to the sale of value-added services and revenue from development projects across both business segments. Revenue from transaction service charges, transaction processing and similar services is recognised as revenue when services are performed. Revenue from the sale of products is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, usually on delivery of the goods. Revenue from the sale of products is measured at the fair value of the consideration received or receivable, net of returns and allowances. Rental income arising from leases of terminals is accounted for on a straight-line basis over the lease terms and is included in revenue due to its operating nature. Revenue from services obligations to be provided over a period of time are initially deferred and then recognised on a straight-line basis over the period during which the services are provided. Revenue is recognised as the gross amount excluding VAT, taxes and duties, interchange fees and processing fees and discounts in relation to the sale. External External costs incurred in generating the revenue for the year comprise IT Costs operation, operating leases of software, external production costs, loss and fraud, development costs, maintenance and development costs that do not qualify for capitalisation, postage, envelopes and other costs incurred in distributing goods as well as marketing and other sales costs and administration costs and lease agreements. Staff costs Staff costs comprise wages and salaries and remuneration, pension contributions, social security costs and other salary-related costs. Depreciation, Depreciation, amortisation and impairment losses comprise the year's amortisation and depreciation on property, plant and equipment, amortisation of intangible impairment losses assets and impairment losses. Result from The proportionate share of the results after tax of the individual investments in subsidiaries is recognised in the income statement after elimination of subsidiaries and intra-company results. associates Financial income and Financial income and expenses comprise interest income and expense, expenses realised and unrealised exchange gains and losses on payables and transactions denominated in foreign currencies, etc. Tax Nets Denmark A/S and Danish subsidiaries are jointly taxed with other Danish companies in the Nets Group. The current Danish corporation tax allocated between the jointly taxed companies in proportion to their taxable income is recognised in the income statement. The tax saving as a result of losses is also refunded proportionately. Deferred tax is measured using the balance sheet liability method on all temporary differences between the carrying amount and the tax base of assets and liabilities. The change in deferred tax liabilities is also recognised in the income statement. Tax assets are recognised if they can be set off against deferred tax in other consolidated enterprises or if it is probable that it can be utilised in future earnings. Current and deferred tax is computed at the tax rates applicable. The Group’s entities are taxed under the on-account tax scheme. Interest/refund relating to the tax payment is included in interest income and expense and similar items. Balance sheet Intangible assets Customer agreements Customer agreements acquired are measured at historical cost less accumulated amortisation and any impairment loss. Amortisation is calculated using the straight-line method to allocate the cost over estimated useful life, which is up to 15 years. Goodwill Goodwill represents the value of the current workforce and know-how and also the operational synergies expected from integration within the company. Goodwill is measured at historical cost less accumulated amortisation and any impairment loss. Amortisation is calculated using the straight-line method to allocate the cost over estimated useful life of up to 15 years. Software Capitalised software is amortised over their estimated useful lives of 3–7 years. Development projects Development costs that are directly attributable to the design and testing of in progress identifiable and unique projects including software products controlled by the company are recognised as intangible assets when the following criteria are met: • It is technically feasible to complete the asset so that it will be available for use • Management intends to complete the asset and there is an ability to use or sell it • The asset will generate probable future economic benefits Expenditure attributable to the asset during its development can be reliably measured. Costs associated with maintaining the assets are recognised as an expense as and when incurred. Directly attributable costs that are capitalised as part of the assets include employee costs. Development projects in progress are tested for impairment at least annually. Property, plant and Property, plant and equipment are stated at their purchase price, equipment including incremental expenses on acquisition less accumulated depreciation and any recognised impairment loss. Depreciation is provided on a straight-line basis over the expected useful economic life of the assets concerned. The estimated useful life for this purpose is: Leasehold improvements up to 10 years Terminals 3 years Plant and machinery 2-5 years The useful life of property, plant and equipment is determined based on periodic assessments of actual useful life and the intended use for those assets. Impairment losses The carrying amount of intangible assets as well as property, plant and equipment 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. The carrying amount of impaired assets is reduced to the lower of the net selling price and the value in use (recoverable 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 anticipated net income from the use of the asset or group of assets. Investments in Investments in subsidiaries and associates are measured according to the subsidiaries and equity method. associates Investments in subsidiaries are measured at cost and subsequently at the proportionate share of the enterprises' net asset values calculated in accordance with the Parent Company's accounting policies minus or plus unrealised intra-group profits and losses and plus or minus any residual value of positive or negative goodwill. Subsidiaries with a negative net asset value are measured at EUR 0, and any receivable is written down by the parent company’s share of the negative net asset value to the extent that it is considered irrecoverable. If the negative equity value exceeds the receivable, the balance is recognised under ’Provisions’ to the extent the Parent Company has a legal or constructive obligation to cover a deficit in the subsidiary. Acquisitions of enterprises – other than intra-group mergers - are accounted for using the acquisition method, according to which the identifiable assets and liabilities acquired are measured at their fair values at the date of acquisition. Provision is made for costs related to adopted and announced plans to restructure the acquired enterprise in connection with the acquisition. The tax effect of the restatement of assets and liabilities is taken into account. Inventories Inventories are measured at cost in accordance with the FIFO method. Where the net realisable value is lower than cost, inventories are written down to this lower value. The net realisable value of inventories is calculated as the sales amount less costs of completion and costs necessary to make the sale and is determined taking into account marketability, obsolescence and development in expected selling price. Goods for resale are measured at cost, comprising purchase price plus delivery costs. Receivables Receivables are measured at amortised cost and necessary provisions are made for bad debt losses based on an assessment of the individual receivables. Prepayments and Prepayments comprise costs incurred, including operating leases accrued income concerning subsequent financial years. Visa shares Listed shares are initially measured at cost and subsequently at the fair value. Cash at banks Cash and cash equivalents comprise cash and bank deposits. Equity Proposed dividends are disclosed as a separate item under equity. Dividends are recognised as a liability at the date when they are adopted at the Annual General Meeting. Borrowings After initial recognition borrowings are subsequently measured at amortised cost using the effective interest rate method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process. Pension obligations Nets has entered into defined contribution plans with its employees. For the defined contribution plans, Nets will pay in a fixed periodic contribution to separate legal entities and will have no further obligations after the payment has been made. Costs regarding defined contribution plans are recognised as incurred within staff costs. Other provisions Other provisions are measured at net realisable value. Other provisions are recognised when, as a result of past events, the Company has a legal or a constructive obligation and it is probable that there may be an outflow of resources embodying economic benefits to settle the obligation. Liabilities Financial liabilities are measured at amortised cost. Other liabilities are measured at net realisable value. Accruals and deferred Accruals and deferred income comprise payments received concerning income income in subsequent years. Leases Leases are recognised and measured based on IFRS 16 Leases to align with the accounting policies for the Group. In general, IFRS 16 requires that all leases are recognised in the balance sheet. Rights-of-use assets and lease liabilities have therefore been recognised in the balance sheet for leases previously disclosed as operational leases. In accordance with IFRS 16, short-term leases are however not recognised in the balance sheet. These lease payments are expensed on a straight-line basis over the lease term. Financial ratios Financial ratios stated in the survey of financial highlights are calculated in accordance with the Danish Society of Financial Analysts' guidelines on the calculation of financial ratios "Recommendations and Financial Ratios 2015". Operating result x 100 Operating margin _________________________________ Revenue Current assets x 100 Liquidity ratio _____________________________________ Current liabilities Equity at year end x 100 Solvency ratio _____________________________________ Total assets at year end Result from ordinary activities after tax x 100 Return on equity _____________________________________ Average equity true Pursuant to section 86(4) of the Danish Financial Statements Act, no cash flow statement is prepared as the Company is included in the consolidated financial statements of Nets A/S, Klausdalsbrovej 601, 2750 Ballerup. 2. Revenue 2022 2021 Total revenue is specified as follows: Merchant Services 370.0 320.0 Issuer & eSecurity Services 268.7 305.2 638.7 625.2 Of this amount, revenue outside Denmark 294.1 293.9 3. Staff costs 2022 2021 Total staff costs are specified as follows: Wages and salaries and remuneration 209.5 200.3 Pension contributions 22.0 20.9 Other salary-related costs 36.3 29.3 Total employee costs for the year 267.8 250.5 Employee costs included in development projects -51.0 -35.4 Total employee costs expensed in the income statement 216.8 215.1 2022 2021 Remuneration to the Executive Board 3.3* 0.5 Total costs for the year 3.3* 0.5 No remuneration was paid to the Board of Directors. Average number of full-time employees: 1,871 1,773 Number of full-time employees year-end: 1,901 1,785 *Remunerations to the Executive Board in place in 2022 amounts to EUR 3.3 million and include various bonus and retention programmes 1871 1773 2022 2021 Financial income: Group enterprises 11.6 10.9 Capital gains - 1.5 Other interest income - 13.6 17.5 - Foreign exchange gain, net 29.1 26.0 Financial expenses: Group enterprises 15.7 10.9 Capital losses - 1.3 Other interest expenses 0.2 26.8 Other financial items 2.5 6.9 Foreign exchange loss, net - 15.7 18.4 61.6 0 2043800000 35200000 33100000 0 -332000000 57700000 833400000 92900000 2578300000 6. Tax 2022 2021 -11.8 -6.9 Current tax on result for the year Change in deferred tax 4.5 10.0 Tax related to prior year 1.1 1.6 Tax in foreign branches -5.7 -5.0 -11.9 -0.3 Nets Denmark A/S expects that EUR 0.0 million (2021 EUR 1.1 million) of the tax in foreign branches will be offset against deductible group contributions to other group entities. 7. Intangible assets Goodwill Software Develop-Total Customer ment agreements projects in progress Cost as at 1 January 133.0 226.6 382.8 111.2 853.6 Additions 1.6 - 1.6 118.2 121.4 Transfer between asset groups - - 107.7 -107.7 - Disposals - - -16.6 - -16.6 Exchange rate adjustment - -3.4 -8.7 - -12.1 Cost as at 31 December 134.6 223.2 466.8 121.7 946.3 Amortisation and impairment losses 104.4 174.3 246.9 - 525.6 as at 1 January Amortisation for the year 11.8 9.7 72.1 - 93.6 Disposals - - -16.3 - -16.3 Exchange rate adjustment - -3.9 -4.4 - -8.3 Amortisation and impairment 116.2 180.1 298.3 - 594,6 losses as at 31 December Carrying amount as at 31 18.4 43.1 168.5 121.7 351.7 December 8. Property, plant and equipment LeaseholTerminals Plant and Total d machinery improve- ments Cost as at 1 January 29.3 35.4 185.0 249.7 Additions 0.9 5.1 26.0 32.0 Disposals - -7.0 -32.0 -39.0 Exchange rate adjustment -1.0 -0.6 -4.6 -6.2 Cost as at 31 December 29.2 32.9 174.4 236.5 Depreciation and impairment losses as at 1 17.2 28.1 110.1 155.4 January Depreciation for the year 2.6 5.0 21.7 29.3 Disposals - -6.5 -32.0 -38.5 Exchange rate adjustment -1.1 -1.0 -3.2 -5.3 Depreciation and impairment losses as at 31 18.7 25.6 96.6 140.9 December Carrying amount as at 31 December 10.5 7.3 77.8 95.6 Hereof amounts leased assets to EUR 65 million. 9. Investments in subsidiaries 2022 2021 Cost as at 1 January 1,017.0 750.0 Additions - 315.8 Share based payment - 0.5 Disposals -6.5 -49.3 Cost as at 31 December 1,010.5 1,017.0 Value adjustment as at 1 January -158.0 329.6 Dividends -3.6 -3.2 Group contribution 0.0 -3.6 Profit after tax 54.8 47.7 Amortisation of goodwill etc. -59.1 -66.0 Disposals -1.3 -449.5 Exchange rate adjustment -9.2 -13.0 Value adjustment as at 31 December -176.4 -158.0 Carrying amount as at 31 December 834.1 859.0 Fair value recognition from business combinations (goodwill etc.) 627.4 691.2 Share capital, net profit and equity in subsidiaries specified below are based on annual reports for 2021 and stated in local currency in million. Share Ownership capital Nets DanID A/S, Klausdalsbrovej 601, DK-2750 Ballerup 100% 50.0 Nets Cards Processing A/S, Klausdalsbrovej 601, DK-2750 100% 21.5 Ballerup Signaturgruppen A/S, Inge Lehrmanns Gade 10, DK-8000 100% 0.5 Aarhus C Storebox ApS, Fruebjergvej 3, DK-2100 Copenhagen Ø 100% 0.1 Paytrail Oyj, Lutakonaukio 7, FI-40100 Jyväskylä, Finland 100% 0.1 Paytrail Technology Oy, Lutakonaukio 7, FI-40100 100% 0.003 Jyväskylä, Finland Poplatek Oy, Linnoitustie 6 D, FI-02600 Espoo, Finland 100% 0.003 Poplatek Payments Oy, Linnoitustie 6 D, FI-02600 Espoo, 100% 0.003 Finland Nets Sweden AB, Lumaparksvägen 9-11, SE-120 31 100% 20.0 Stockholm, Sweden Nets Estonia AS, Tartu maantee 63, EE-10115 Tallinn, Estonia 100% 0.5 P24 Dotcard Sp. z o o., ul. Tadeusza Czackiego 7/9/11, PL-00-100% 0.1 043 Warszawa, Poland PayPro S.A., ul. Kanclerska 15, PL-60-327 Poznań, Poland 100% 4.5 eCard S.A., ul. Tadeusza Czackiego 7/9/11, PL-00-043 Warszawa, 100% 30.3 Poland Dotpay Sp. Z o o., ul. Wielicka 28B, PL-30-552 Kraków, Poland 100% 4.0 100% 0.1 Dotpay Polska Sp. Z o o., ul. Sobieskiego 11/E6, PL-40-082 Katowice, Poland 100% 16.2 Rementi Investments SA, Towarowa 28, PL-00-839 Warszawa, Poland 100% 42.3 PeP (Centrum Rozliczen Elektronicznych Polskie ePlatnosci), ul. Lisa Kuli 3, PL-35-032 Rzeszów, Poland 100% 4.5 Billbird S.A., ul. Kamienna 21, PL-31-403 Kraków, Poland 100% 12.0 PayLane Sp. z o.o., ul. C. K. Norwida 4, PL-80–280 Gdańsk, Poland 100% 3.0 TopCard Sp. z o.o., Starołęcka 7, PL-61-361 Poznań, Poland Checkout Finland Oy, Hämeenkatu 6, FI-33100 Tampere, Finland 100% 0.1 Team4U Sp. z o.o., Zygmunta Augusta 7, PL-85-082, Bydgoszcz, 75% 0.005 Poland Net profit Equity Results 2021 Nets DanID A/S -70.0 12.0 Nets Cards Processing A/S 8.8 46.7 Signaturgruppen A/S 25.7 43.3 Storebox ApS 4.6 23.7 Paytrail Oyj 3.4 12.9 Paytrail Technology Oy -0.6 -0.5 Poplatek Oy 0.8 2.4 Poplatek Payments Oy 1.0 1.5 Nets Sweden AB 11.3 86.9 Nets Estonia AS 0.5 42.1 P24 Dotcard SP. Z o.o. -0.6 160.8 PayPro S.A. 74.9 85.3 eCard S.A.* 1.2* 25.1* Dotpay SP. Z o o* 11.3* 45.4* Dotpay Polska Sp. Z o.o. 0.0 0.0 Rementi Investments SA** -0.5 1,611.4 PeP 11.8 69.5 Billbird 16.0 60.2 Paylane -3.1 1.0 Topcard -2.3 -19.2 Checkout Finland Oy 8.2 15.2 Team4U Sp. Z o.o. 1.0 1.1 *Based on 2019 annual report **Based on 2020 annual report Net profit Equity 10. Investments in associates 2022 2021 Cost as at 1 January 8.1 8.1 Cost as at 31 December 8.1 8.1 Value adjustment as at 1 January 3.2 0.1 Dividend -3.4 - Share of profit after tax and depreciation and amortisation 1.0 3.1 Value adjustment as at 31 December 0.8 3.2 Carrying amount as at 31 December 8.9 11.3 Ownership Ownership 50% 50% e-Boks A/S, Ballerup 11. Deposits 2022 2021 Cost as at 1 January 2.0 3.0 Additions - - Disposals - -1.0 Cost as at 31 December 2.0 2.0 12. Prepayments 2022 2021 Prepaid IT costs 20.7 19.6 Other 22.6 17.2 43.3 36.8 13. Share capital The share capital is owned by Nassa Topco AS, c/o Nets Norway AS, Haavard Martinsens vei 54, NO-0978 Oslo The share capital was increased by DKK 3 during 2019 in relation to the merger with DIBS Payment Services AB, Dibs Payment Services A/S, Dibs AS, Dibs Payment Services I Göteborg AB, Debitech AB and Verifyeasy AB in 2019. There have not been other changes in the last 5 years. The share capital comprises shares of DKK 1.00 each. Nets Denmark A/S is part of the consolidated Financial Statements for Nets A/S, Klausdalsbrovej 601, 2750 Ballerup. rr114. Lease liabilities 2022 2021 Maturity of lease liabilities: Less than 1 year 10.0 8.6 1-5 years 29.7 30.3 More than 5 years 17.6 23.8 57.3 62.7 15. Net deferred tax asset/(-liabilities) 2022 2021 Classified as follows: Deferred tax asset 11.7 6.7 Deferred tax liability -17.7 -17.2 -6.0 -10.5 16. Other provisions 2022 2021 Deferred consideration OP 5.5 4.0 Deferred consideration Poplatek - 9.4 Carrying amount at 31 December 5.5 13.4 17. Contract liabilities This includes prepayments received from customers in Merchant Services mainly related to POS services and Dankort. 18. Contingent liabilities The Company is jointly taxed with other Danish companies in the Nets Group. Together with the other companies included in the joint taxation, the Company has joint and several unlimited liabilities for Danish corporation taxes and withholding taxes on dividends, interest and royalties. The Company has deposited an amount of EUR 1.3 million (2021: EUR 1.6 million) related to withholding taxes on payroll in Norway to a restricted bank account. The Company has entered into a number of long-term agreements on purchase of services. The Company is party to a number of pending lawsuits and disputes. In Management's opinion, apart from the receivables and payables recognised in the balance sheet at 31 December 2022, the outcome of these lawsuits will not further affect the Company's financial position. Nets Denmark A/S is guarantor under the senior notes by Nassa Topco AS and have certain of assets, including selected bank accounts, pledged to the lenders. All such arrangements strictly observe applicable laws and regulations. This has no effect on daily business and excludes all settlement assets. 19. Related party transactions Sale of Purchase of services services Receivables Liabilities 2021, in mEUR Associates and joint ventures 1.9 -0,5 0,4 -0,1 2022, in mEUR Associates and joint ventures 1.5 -0.9 - - All transactions with related parties are made on an arm’s length basis. 20. Events after the balance sheet date No significant events affecting the annual report for 2022 have occurred subsequently to 31 December 2022. Annual report Auditor's report on audited financial statements ParsePort XBRL Converter 2022-01-01 2022-12-31 2021-01-01 2021-12-31 2023-03-24 Reporting class C, large enterprise 2023-03-03 20016175 Nets Denmark A/S Klausdalsbrovej 601 2750 Ballerup Opinion Basis for Opinion 2023-03-03 33771231 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab Result before depreciation, amortisation and impairment losses Result before depreciation, amortisation and impairment losses Result before depreciation, amortisation and impairment losses Result before depreciation, amortisation and impairment losses Result before depreciation, amortisation and impairment losses