12559496 2016-01-01 2016-12-31 12559496 2016-01-01 2016-12-31 0 12559496 2016-01-01 2016-12-31 0 12559496 2016-01-01 2016-12-31 1 12559496 2016-01-01 2016-12-31 2 12559496 2016-01-01 2016-12-31 1 12559496 2016-01-01 2016-12-31 0 12559496 2016-01-01 2016-12-31 1 12559496 2016-01-01 2016-12-31 2 12559496 2016-01-01 2016-12-31 cmn:PreviousYearMember 12559496 2016-01-01 2016-12-31 cmn:TwoYearsAgoMember 12559496 2016-01-01 2016-12-31 cmn:ThreeYearsAgoMember 12559496 2016-01-01 2016-12-31 cmn:FourYearsAgoMember 12559496 2016-01-01 2016-12-31 0 12559496 2016-01-01 2016-12-31 cmn:PreviousYearMember 1 12559496 2016-01-01 2016-12-31 cmn:TwoYearsAgoMember 2 12559496 2016-01-01 2016-12-31 cmn:ThreeYearsAgoMember 3 12559496 2016-01-01 2016-12-31 cmn:FourYearsAgoMember 4 12559496 2016-01-01 2016-12-31 5 12559496 2016-01-01 2016-12-31 cmn:PreviousYearMember 6 12559496 2016-01-01 2016-12-31 cmn:TwoYearsAgoMember 7 12559496 2016-01-01 2016-12-31 cmn:ThreeYearsAgoMember 8 12559496 2016-01-01 2016-12-31 cmn:FourYearsAgoMember 9 12559496 2016-01-01 2016-12-31 10 12559496 2016-01-01 2016-12-31 cmn:PreviousYearMember 11 12559496 2016-01-01 2016-12-31 cmn:TwoYearsAgoMember 12 12559496 2016-01-01 2016-12-31 cmn:ThreeYearsAgoMember 13 12559496 2016-01-01 2016-12-31 cmn:FourYearsAgoMember 14 12559496 2016-12-31 12559496 2016-12-31 cmn:PreviousYearMember 12559496 2016-12-31 cmn:TwoYearsAgoMember 12559496 2016-12-31 cmn:ThreeYearsAgoMember 12559496 2016-12-31 cmn:FourYearsAgoMember 12559496 2015-01-01 2015-12-31 12559496 2015-12-31 12559496 2015-01-01 fsa:ContributedCapitalMember 12559496 2016-01-01 fsa:ContributedCapitalMember 12559496 2015-01-01 fsa:RetainedEarningsMember 12559496 2016-01-01 fsa:RetainedEarningsMember 12559496 2015-01-01 12559496 2016-01-01 12559496 2015-01-01 2015-12-31 fsa:ContributedCapitalMember 12559496 2016-01-01 2016-12-31 fsa:ContributedCapitalMember 12559496 2015-01-01 2015-12-31 fsa:RetainedEarningsMember 12559496 2016-01-01 2016-12-31 fsa:RetainedEarningsMember 12559496 2015-12-31 fsa:ContributedCapitalMember 12559496 2016-12-31 fsa:ContributedCapitalMember 12559496 2015-12-31 fsa:RetainedEarningsMember 12559496 2016-12-31 fsa:RetainedEarningsMember 12559496 2016-01-01 fsa:AcquiredIntangibleAssetsMember 12559496 2016-01-01 fsa:DevelopmentProjectsInProgressMember 12559496 2016-01-01 2016-12-31 fsa:AcquiredIntangibleAssetsMember 12559496 2016-01-01 2016-12-31 fsa:DevelopmentProjectsInProgressMember 12559496 2016-12-31 fsa:AcquiredIntangibleAssetsMember 12559496 2016-12-31 fsa:DevelopmentProjectsInProgressMember 12559496 2016-01-01 fsa:PlantAndMachineryMember 12559496 2016-01-01 fsa:LeaseholdImprovementsMember 12559496 2016-01-01 2016-12-31 fsa:PlantAndMachineryMember 12559496 2016-01-01 2016-12-31 fsa:LeaseholdImprovementsMember 12559496 2016-12-31 fsa:PlantAndMachineryMember 12559496 2016-12-31 fsa:LeaseholdImprovementsMember 12559496 2016-01-01 2016-12-31 fsa:RetainedEarningsMember 12559496 2015-01-01 2015-12-31 fsa:RetainedEarningsMember iso4217:DKK xbrli:pure Regnskabsklasse C, mellemstor virksomhed 2016-01-01 2016-12-31 <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Statement by the Board of Directors and the Executive Board</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">The Board of Directors and the Executive Board have today discussed and approved the annual report of Sport Danmark A/S for the financial year 1 January – 31 December 2016.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">The annual report has been prepared in accordance with the Danish Financial Statements Act.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">It is our opinion that the financial statements give a true and fair view of the Company's financial position at 31 December 2016 and of the results of the Company's operations for the financial year 1 January – 31 December 2016.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Further, in our opinion, the Management's review gives a fair review of the matters discussed in the Management's review.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">We recommend that the annual report be approved at the annual general meeting.</td></tr></table> Copenhagen 2017-05-29 <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Independent auditors' report</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">To the shareholder of Sport Danmark A/S</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Opinion</td></tr><tr><td colspan="1">We have audited the financial statements of Sport Danmark A/S for the financial year 1 January – 31 December 2016, which comprise an income statement, balance sheet, statement of changes in equity and notes, including a summary of significant accounting policies. The financial statements are prepared in accordance with the Danish Financial Statements Act.</td></tr><tr><td colspan="1">In our opinion, the financial statements give a true and fair view of the financial position of the Company at 31 December 2016 and of the results of the Company's operations for the financial year 1 January – 31 December 2016 in accordance with the Danish Financial Statements Act.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Basis for opinion</td></tr><tr><td colspan="1">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 financial statements" section of our report. We are independent of the Company in accordance with the International Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants (IESBA Code) and additional requirements applicable in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these rules and requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Management's responsibilities for the financial statements</td></tr><tr><td colspan="1">Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the Danish Financial Statements Act and for such internal control as Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.</td></tr><tr><td colspan="1">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.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Auditor's responsibilities for the audit of the financial statements</td></tr><tr><td colspan="1">Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and 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 the financial statements.</td></tr><tr><td colspan="1">As part of an audit conducted in accordance with ISAs and additional requirements applicable in Denmark, we exercise professional judgement and maintain professional skepticism throughout the audit. We also</td></tr><tr><td colspan="1">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.</td></tr><tr><td colspan="1">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.</td></tr><tr><td colspan="1">Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management.</td></tr><tr><td colspan="1">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 conclusion is 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.</td></tr><tr><td colspan="1">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. </td></tr><tr><td colspan="1">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.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Statement on the Management's review</td></tr><tr><td colspan="1">Management is responsible for the Management's review.</td></tr><tr><td colspan="1">Our opinion on the financial statements does not cover the Management's review, and we do not express any form of assurance conclusion thereon.</td></tr><tr><td colspan="1">In connection with our audit of the financial statements, our responsibility is to read the Management's review and, in doing so, consider whether the Management's review is materially inconsistent with the financial statements or our knowledge obtained during the audit, or otherwise appears to be materially misstated.</td></tr><tr><td colspan="1">Moreover, it is our responsibility to consider whether the Management's review provides the information required under the Danish Financial Statements Act.</td></tr><tr><td colspan="1">Based on our procedures, we conclude that the Management's review is in accordance with the financial statements and has been prepared in accordance with the requirements of the Danish Financial Statement Act. We did not identify any material misstatement of the Management's review.</td></tr></table> Copenhagen 2017-05-29 Sport Danmark A/S 12559496 1989-01-01 Ballerup 2017-05-29 <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Dirigent</td></tr></table> 801098000 62295000 -178000 753000 2104000 2653000 0.078 0.000 0.203 0.043 80.000 <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Financial ratios are calculated in accordance with the Danish Finance Society's guidelines on the calculation of financial ratios "Recommendations and Financial Ratios 2015". For terms and definitions, please see the accounting policies.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Operating review</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Primary activities</td></tr><tr><td colspan="1">The primary activity of Sport Danmark A/S is to operate the retail banners SPORTMASTER and Rezet Sneaker Store.</td></tr><tr><td colspan="1">SPORTMASTER is a nationwide omni-channel retailer with more than 100 quality stores and the leading Danish sports online store. SPORTMASTER has an extensive and attractive range of products, including own brands and leading sports brands of shoes, clothing and equipment for sports and leisure activities.</td></tr><tr><td colspan="1">Rezet Sneaker Store was acquired in May 2015 and is now the leading premium sneaker omni-channel retailer with a powerful offer of key brands’ exclusive sneaker range.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Development in activities and finances</td></tr><tr><td colspan="1">As of 1 July 2012, SPORTMASTER was established as a vertical capital retail chain – a transformation from the voluntary chain that had been operating since 1979.</td></tr><tr><td colspan="1">Revenue for 2016 was DKK 801.1 million (2015: DKK 665.5 million). Gross profit was DKK 62.3 million (2015: DKK 58.5 million). Operating profit before depreciation and amortisation (EBITDA) was DKK 8.1 million (2015: DKK 10.6 million), whereas operating profit (EBIT) was negative by DKK 0.2 million (2015: positive by DKK 0.5 million).</td></tr><tr><td colspan="1">The operating profit was negatively impacted by the transformation to a vertical chain which are considered as special items. Adjusting for special items, the Company’s EBITDA for 2016 was DKK 8.3 million (2015: DKK 12.0 million).</td></tr><tr><td colspan="1">The Company’s profit for the year was DKK 2.1 million (2015: DKK 0.1 million).</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Outlook</td></tr><tr><td colspan="1">SPORTMASTER expects that the market will stay competitive in 2017. We expect to continuously invest in the market and our platforms.</td></tr><tr><td colspan="1">Risk management</td></tr><tr><td colspan="1">Sport Danmark A/S considers risk management an essential and natural element in connection with the realisation of the Company’s objectives and strategy. The daily activities, the implementation of the established strategy and continuous realisation of business opportunities involve a natural risk and, therefore, the Company’s handling of these issues are seen as a natural and integrated part of the daily work and a way to create a profitable Company with constant growth.</td></tr><tr><td colspan="1">Commercial risks</td></tr><tr><td colspan="1">The Group’s most significant business risks concern general socioeconomic developments, including private consumption developments as well as the Group’s capacity to maintain its strong market position. Accordingly, the Group aims to be at the forefront of market developments by constantly improving and developing its range of products and services with a view to always be the natural choice for Danes buying sports equipment.</td></tr><tr><td colspan="1">Currency risks</td></tr><tr><td colspan="1">The Company’s revenue is invoiced in DKK, whereas part of the Company’s purchases are made in USD related currencies. As a part of the Company’s risk policy, purchases in USD are partly hedged via foreign exchange contracts.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Corporate Social Responsibility</td></tr><tr><td colspan="1">The Company follows Sport Nordic Holding ApS’ group policies. Sport Nordic Holding ApS works with specific objectives in a number of relevant areas, but a policy on corporate social responsibility, human rights, environment and climate was not adopted in 2016.</td></tr><tr><td colspan="1">The Group has in 2017 adopted a CSR policy covering the following areas</td></tr><tr><td colspan="1">Anticorruption and competition</td></tr><tr><td colspan="1">Labour standards and Human rights</td></tr><tr><td colspan="1">The policies will in 2017 be rolled out to the employees and manufacturers of the private label products for the Group.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Goals and policies for the underrepresented gender</td></tr><tr><td colspan="1">The Board of Directors currently consists of 5 members, which are all men. The goal is to increase the proportion of women to 30% by the end of 2019. The gender composition of the Board of Directors has remained unchanged in 2016.</td></tr><tr><td colspan="1">It is the policy of the Group always to appoint the best qualified candidates to leadership posts and at the same time support and enhance the qualifications of female leadership talents. In the Management team at the head office the proportion of women is 23%. The number of female leaders has been unchanged in 2016. The goal is, through increased use of networks etc., to increase the proportion of women to 30% by the end of 2019.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Events after the balance sheet date</td></tr><tr><td colspan="1">No events have occurred after the balance sheet date to this date which would significantly influence the evaluation of this annual report.</td></tr></table> 783230000 94916000 50489000 54192000 8281000 802000 49000 575000 -1529000 <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Statement of changes in equity</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td /><td>Accounting policies</td></tr><tr><td /><td>The annual report of Sport Danmark A/S for 2016 has been prepared in accordance with the provisions applying to reporting class C large enterprises under the Danish Financial Statements Act.</td></tr><tr><td /><td>Effective 1 January 2016, the Company has adopted act no. 738 of 1 June 2015. This implies that annual reassessment of residual values and depreciation period of property, plant and equipment and intangible assets should be made. The Company has no significant residual values. Consequently, the change is made in accordance with section 4 of the executive order on transitional provisions with future effect only as a change in accounting estimates with no impact on equity.</td></tr><tr><td /><td>The above changes do not affect the income statement or the balance sheet for 2016 or the comparative figures.</td></tr><tr><td /><td>Apart from the above changes as well as new and changed presentation and disclosure requirements, which follow from act no. 738 of 1 June 2015, the accounting policies are consistent with those of last year.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td /><td>No cash flow statement has been prepared as the cash flows of Sport Danmark A/S are included in the cash flow statement of Sport Nordic Holding ApS.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td /><td>Foreign currency translation</td></tr><tr><td /><td>On initial recognition, transactions denominated in foreign currencies are 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.</td></tr><tr><td /><td>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.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td /><td>Income statement</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td /><td>Revenue</td></tr><tr><td /><td>Revenue from the sale of goods for resale is recognised in the income statement provided that transfer of risk to the buyer has taken place before year end and that the income can be reliably measured and is expected to be received.</td></tr><tr><td /><td>Revenue is measured at the fair value of the agreed consideration net of VAT and taxes charged on behalf of third parties. All discounts granted are recognised in revenue.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td /><td>Cost of goods sold</td></tr><tr><td /><td>Cost of sales includes the cost of goods used in generating the year's revenue.</td></tr><tr><td /><td>Cost of goods sold is recognised after deduction of supplier discounts and bonuses.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td /><td>Other external costs</td></tr><tr><td /><td>Other external costs comprise administrative expenses and other costs for operations and maintenance.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td /><td>Staff costs</td></tr><tr><td /><td>Staff costs comprise wages, salaries, pensions and other staff costs.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td /><td>Financial income and expenses</td></tr><tr><td /><td>Financial income and expenses comprise interest income and expense, gains and losses on payables and transactions denominated in foreign currencies, amortisation of financial assets and liabilities as well as surcharges and refunds under the on-account tax scheme, etc.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td /><td>Tax on profit/loss for the year</td></tr><tr><td /><td>The Company is covered by the Danish rules on compulsory joint taxation of the Sport Nordic Holding Group's subsidiaries. Subsidiaries form part of the joint taxation from the date on which they are included in the consolidation of the consolidated financial statements and up to the date on which they exit the consolidation.</td></tr><tr><td /><td>Sport Nordic Holding ApS is the administrative company for the joint taxation and consequently settles all corporation tax payments with the tax authorities.</td></tr><tr><td /><td>The current Danish corporation tax is allocated by settlement of joint taxation contribution between the jointly taxed companies in proportion to their taxable income. In this relation, companies with tax loss carryforwards receive joint taxation contribution from companies that have used these losses to reduce their own taxable profits.</td></tr><tr><td /><td>Tax for the year comprises joint taxation contributions for the year and changes in deferred tax for the year – due to changes in the tax rate. The tax expense relating to the profit/loss for the year is recognised in the income statement, and the tax expense relating to amounts directly recognised in equity is recognised directly in equity.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td /><td>Balance sheet</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td /><td>Intangible assets</td></tr><tr><td /><td>Other intangible assets</td></tr><tr><td /><td>Other intangible assets, which comprise IT software, are measured at cost less accumulated amortisation and impairment losses. Other intangible assets are amortised on a straight-line basis over 3 years.</td></tr><tr><td /><td>The depreciation period is determined at the time of acquisition and is reassessed every year. In case of changes in the amortisation period, the effect on the depreciation charges is recognised prospectively as a change in accounting estimates.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td /><td>Property, plant and equipment</td></tr><tr><td /><td>Plant and equipment and leasehold improvements are measured at cost less accumulated depreciation and impairment losses.</td></tr><tr><td /><td>Cost comprises the purchase price and any costs directly attributable to the acquisition until the date when the asset is available for use.</td></tr><tr><td /><td>Where individual components of an item of property, plant and equipment have different useful lives, they are accounted for as separate items, which are depreciated separately.</td></tr><tr><td /><td>Depreciation is provided on a straight-line basis over the expected useful lives of the assets. The expected useful lives are as follows</td></tr><tr><td /><td>Plant and equipment</td><td>3-5 years</td></tr><tr><td /><td>Leasehold improvements</td><td>3-10 years</td></tr><tr><td /><td>The basis of depreciation is based on the residual value of the asset and is reduced by impairment losses, if any. The depreciation period and the residual value are determined at the time of acquisition and is reassessed every year. Where the residual value exceeds the carrying amount of the asset, no further depreciation charges are recognised.</td></tr><tr><td /><td>In case of changes in the amortisation period or the residual value, the effect on the depreciation charges is recognised prospectively as a change in accounting estimates.</td></tr><tr><td /><td>Gains and losses on the disposal of property, plant and equipment are determined as the difference between the selling price less selling costs and the carrying amount at the date of disposal. Gains and losses are recognised in the income statement as other external costs.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td /><td>Impairment of non-current assets</td></tr><tr><td /><td>The carrying amount of intangible assets and 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.</td></tr><tr><td /><td>Impairment tests are conducted of individual assets or groups of assets when there is an indication that they may be impaired. Write-down is made to the recoverable amount if this is lower than the carrying amount.</td></tr><tr><td /><td>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 expected net cash flows from the use of the asset or the group of assets and expected net cash flows from the disposal of the asset or the group of assets after the end of the useful life.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td /><td>Inventories</td></tr><tr><td /><td>Inventories are measured at the lower of cost, measured by reference to the FIFO method, and net realisable value.</td></tr><tr><td /><td>Goods for resale are measured at cost, which comprises the cost of acquisition plus delivery costs as well as other costs directly attributable to the acquisition.</td></tr><tr><td /><td>The net realisable value of inventories is calculated as the sales amount less costs necessary to make the sale and is determined taking into account marketability, obsolescence and development in expected selling price.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td /><td>Receivables</td></tr><tr><td /><td>Receivables are measured at amortised cost.</td></tr><tr><td /><td>Write-down is made for bad debt losses where there is an objective indication that a receivable has been impaired. If there is an objective indication that an individual receivable has been impaired, a write-down is made based on an individual assessment.</td></tr><tr><td /><td>Write-downs are calculated as the difference between the carrying amount of receivables and the present value of the expected cash flows.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td /><td>Prepayments</td></tr><tr><td /><td>Prepayments comprise costs incurred concerning subsequent financial years.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td /><td>Equity</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td /><td>Dividends</td></tr><tr><td /><td>Proposed dividends are recognised as a liability at the date when they are adopted at the annual general meeting (declaration date). The expected dividend payment for the year is disclosed as a separate item under equity.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td /><td>Corporation tax and deferred tax</td></tr><tr><td /><td>Joint taxation contribution payable and receivable is recognised in the balance sheet as corporation tax payable and corporation tax receivable.</td></tr><tr><td /><td>Deferred tax is measured using the balance sheet liability method on all temporary differences between the carrying amount and the tax value of assets and liabilities. However, deferred tax is not recognised on temporary differences relating to goodwill which is not deductible for tax purposes and other items where temporary differences, apart from business combinations, arise at the date of acquisition without affecting either profit/loss for the year or taxable income. Where different tax rules can be applied to determine the tax base, deferred tax is measured based on Management's planned use of the asset or settlement of the liability, respectively.</td></tr><tr><td /><td>Deferred tax assets, including the tax value of tax loss carryforwards, are recognised at the expected value of their utilisation; either as a set-off against tax on future income or as a set-off against deferred tax liabilities in the same legal tax entity and jurisdiction.</td></tr><tr><td /><td>Adjustment is made to deferred tax resulting from elimination of unrealised intra-group profits and losses.</td></tr><tr><td /><td>Deferred tax is measured in accordance with the tax rules and at the tax rate applicable at the balance sheet date when the deferred tax is expected to crystallise as current tax.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td /><td>Prepayments from customers</td></tr><tr><td /><td>Prepayments from customers comprise liabilities regarding issued gift vouchers, recognised at the date of issue, and the customer loyalty programme, Club SPORTMASTER, recognised at fair value at the date of recognition of the related sales.</td></tr><tr><td /><td>Subsequently, prepayments from customers are measured at amortised cost.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td /><td>Liabilities other than provisions</td></tr><tr><td /><td>Financial liabilities are recognised at the date of borrowing at the net proceeds received less transaction costs paid. In subsequent periods, the financial liabilities are measured at amortised cost, corresponding to the capitalised value using the effective interest rate. Accordingly, the difference between the proceeds and the nominal value is recognised in the income statement over the term of the loan.</td></tr><tr><td /><td>Other liabilities are measured at net realisable value.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td /><td>Segment information</td></tr><tr><td /><td>Sport Danmark A/S has only domestic revenue and only one segment. Consequently, the Company does not provide segment information.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td /><td>Financial ratios</td></tr><tr><td /><td>Financial ratios are calculated in accordance with the Danish Finance Society's guidelines on the calculation of financial ratios "Recommendations and Financial Ratios 2015".</td></tr><tr><td /><td>The financial ratios stated in the survey of financial highlights have been calculated as follows</td></tr><tr><td /><td>Gross margin</td></tr><tr><td /><td>Operating margin</td></tr><tr><td /><td>Solvency ratio</td></tr><tr><td /><td>Return on equity</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td /><td>.Staff costs</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td /><td>Remuneration to the Executive Board of DKK 8,366 thousand (2015: DKK 7,760 thousand) and remuneration to the Board of Directors of DKK 980 thousand (2015: DKK 963 thousand) are included in staff costs.</td></tr></table> 50254000 3256000 682000 <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td /><td>Average number of full-time employees</td><td>80</td><td>72</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td /><td>.Financial income</td></tr></table> 639000 163000 <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td /><td>.Financial expenses</td></tr></table> 0 38000 11000 <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td /><td>.Tax on the profit/loss for the year</td></tr></table> 409000 315000 1623000 <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td /><td>Intangible assets</td></tr></table><br><br><table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td /><td>Amortised over</td><td>3 years</td></tr></table> 6304000 6606000 <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td /><td>Property, plant and equipment</td></tr></table> 2653000 1675000 <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td /><td>P Depreciated over</td><td>3-5 years</td><td>3-10 years</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td width="100%" colspan="1" align="left" valign="middle" >Share capital</td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >The share capital comprises 15,100 shares of DKK 1,000 each. The share capital has remained unchanged for the past five years.</td></tr><tr><td colspan="1"></td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td /><td>Deferred tax</td></tr><tr><td /><td>.Deferred tax at the beginning of the period</td><td>1554</td><td>1195</td></tr><tr><td /><td>.Adjustment regarding prior years</td><td>-223</td><td>38</td></tr><tr><td /><td>.Adjustment of deferred tax</td><td>-315</td><td>321</td></tr><tr><td /><td>.Deferred tax assets at 31 December</td><td>1016</td><td>1554</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td /><td>Deferred tax assets and liabilities relates to</td></tr><tr><td /><td>.Intangible assets</td><td>2420</td><td>2591</td></tr><tr><td /><td>.Property, plant and equipment</td><td>-1404</td><td>-1037</td></tr><tr><td /><td>Deferred Tax Asset Liability I alt</td><td>1016</td><td>1554</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="20">Alle beløb er angivet i  'x1000'</td></tr><tr><td width="100%" colspan="3" align="left" valign="middle" >.Other payables</td></tr><tr><td width="80%" colspan="1" align="left" valign="middle" >Holiday pay obligations and salary related liabilities</td><td width="7%" align="right" valign="middle" >8412</td><td width="13%" align="right" valign="middle" >6568</td></tr><tr><td width="80%" colspan="1" align="left" valign="middle" >Other liabilities</td><td width="7%" align="right" valign="middle" >3456</td><td width="13%" align="right" valign="middle" >3593</td></tr><tr><td width="80%" colspan="1" align="left" valign="middle" >Other payables I alt</td><td width="7%" align="right" valign="middle" >11868</td><td width="13%" align="right" valign="middle" >10161</td></tr><tr><td colspan="3"></td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td width="100%" colspan="1" align="left" valign="middle" >Contractual obligations and contingencies, etc.</td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >Contingent assets and liabilities</td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >The Company is jointly taxed with the Danish parent company Sport Nordic Holding ApS. The companies included in the joint taxation have joint and several unlimited liability for Danish corporation taxes. At 31 December 2016, the net taxes payable to the Danish Central Tax Administration by the companies included in the joint taxation amounted to DKK 0. Any subsequent corrections of the taxable income subject to joint taxation may entail that the companies' liability will increase.</td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >The Group's Danish companies are jointly and severally liable for group VAT registration.</td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >The Company's assets, including inventories, are provided as security for bank loans in group companies.</td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >The Company has provided a guarantee for loans totaling DKK 148,494 thousand raised in group companies.</td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >Operating lease obligations</td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >The Company has entered into operating leases with an annual lease payment of DKK 2,572 thousand (2015: DKK 2,127 thousand). The total nominal residual lease payment amounts to DKK 5,569 thousand (2015: DKK 4,742 thousand).</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="20">Alle beløb er angivet i  'x1000'</td></tr><tr><td width="100%" colspan="3" align="left" valign="middle" >.Related party disclosures</td></tr><tr><td width="100%" colspan="3" align="left" valign="middle" >Sport Danmark A/S' related parties comprise the following</td></tr><tr><td width="100%" colspan="3" align="left" valign="middle" >Parties exercising control</td></tr><tr><td width="100%" colspan="3" align="left" valign="middle" >SDK Sport II ApS, Denmark, which controls the Company.</td></tr><tr><td width="100%" colspan="3" align="left" valign="middle" >.Other related parties</td></tr><tr><td width="100%" colspan="3" align="left" valign="middle" >The member of the Executive Board and the members of the Board of Directors.</td></tr><tr><td width="100%" colspan="3" align="left" valign="middle" >The Sport Nordic Holding ApS Group companies: Sport Nordic Holding ApS and SDK Sport I ApS.</td></tr><tr><td width="100%" colspan="3" align="left" valign="middle" >The financial statements are included in the consolidated financial statements for Sport Nordic Holding ApS, Baltorpbakken 5, 2750 Ballerup, Denmark.</td></tr><tr><td width="100%" colspan="3" align="left" valign="middle" >Related party transactions</td></tr><tr><td width="100%" colspan="3" align="left" valign="middle" >During 2016, Sport Danmark A/S engaged in the below related parties transactions</td></tr><tr><td width="87%" colspan="2" align="left" valign="middle" >DKK'000</td><td width="13%" align="right" valign="middle" >2016</td></tr><tr><td width="87%" colspan="2" align="left" valign="middle" >Sale of goods and services to group companies</td><td width="13%" align="right" valign="middle" >797314</td></tr><tr><td width="87%" colspan="2" align="left" valign="middle" >Management fee income from group companies</td><td width="13%" align="right" valign="middle" >94916</td></tr><tr><td colspan="3"></td></tr><tr><td width="87%" colspan="2" align="left" valign="middle" >Receivables from group companies</td><td width="13%" align="right" valign="middle" >123225</td></tr><tr><td width="87%" colspan="2" align="left" valign="middle" >Payables to group companies</td><td width="13%" align="right" valign="middle" >-35199</td></tr><tr><td width="100%" colspan="3" align="left" valign="middle" >Remuneration of the Executive Board and Board of Directors is disclosed in note 2.</td></tr><tr><td colspan="3"></td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td /><td>Appropriation of profit/loss</td></tr></table> Årsrapport 30700228 Ernst & Young Englandsgade 25 5100 Odense C 2015-01-01 2015-12-31 Revisionspåtegning Michael Christiansen <p xmlns="http://www.w3.org/1999/xhtml">Ernst & Young Godkendt Revisionspartnerselskab</p><p xmlns="http://www.w3.org/1999/xhtml">Auditors</p> 30700228 Henrik Kronborg Iversen State Authorised Søren Christiansen State Authorised Ernst & Young Godkendt Revisionspartnerselskab Michael Christiansen Jens Høgsted CEO Chris Bigler CFO Jack Friis COO 665472000 58519000 526000 430000 106000 2518000 0.088 0.001 0.238 0.002 72.000 778529000 48269000 -3941000 -434000 -3427000 233000 0.062 -0.005 0.228 -0.070 75.000 741309000 47594000 1359000 2697000 2936000 1647000 0.064 0.002 0.358 0.059 67.000 457724000 27779000 1671000 -5026000 -2809000 1434000 0.061 0.004 0.416 -0.058 52.000 Operating profit/loss before depreciation and amortisation (EBITDA) 8103000 Operating profit/loss before depreciation and amortisation (EBITDA) 10622000 Operating profit/loss before depreciation and amortisation (EBITDA) 1496000 Operating profit/loss before depreciation and amortisation (EBITDA) 4687000 Operating profit/loss before depreciation and amortisation (EBITDA) 2935000 Operating profit/loss before special items, depreciation and amortisation (Adjusted EBITDA) 8248000 Operating profit/loss before special items, depreciation and amortisation (Adjusted EBITDA) 12041000 Operating profit/loss before special items, depreciation and amortisation (Adjusted EBITDA) 3706000 Operating profit/loss before special items, depreciation and amortisation (Adjusted EBITDA) 11396000 Operating profit/loss before special items, depreciation and amortisation (Adjusted EBITDA) 9077000 Operating profit/loss before special items -33000 Operating profit/loss before special items 1945000 Operating profit/loss before special items -1731000 Operating profit/loss before special items 8068000 Operating profit/loss before special items 7813000 245039000 49769000 8418000 3523000 11941000 4409000 25000 4434000 569000 569000 16944000 85385000 85385000 3341000 123225000 12526000 0 2949000 142041000 669000 228095000 15100000 34669000 6461000 140317000 35199000 409000 1016000 11868000 194254000 194254000 245039000 34689000 22748000 14974000 10540000 200623000 47665000 208496000 47559000 142550000 50986000 115625000 48050000 665472000 643400000 87416000 50969000 58519000 47897000 10096000 526000 758000 328000 956000 850000 106000 43946000 3003000 948000 758000 0 199000 129000 0 96000 -321000 -625000 12243000 0 12243000 3456000 0 3456000 569000 569000 16268000 79657000 79657000 4029000 80652000 17394000 96000 2527000 104698000 0 184355000 200623000 15100000 32565000 47665000 8184000 132144000 915000 0 1554000 10161000 151404000 151404000 200623000 15100000 15100000 32459000 32565000 47559000 47665000 28385000 16142000 12321000 8865000 0 0 106000 2104000 15100000 15100000 32565000 34669000 28385000 16142000 0 0 2781000 6606000 3523000 0 31166000 22748000 8418000 3523000 0 3523000 11650000 8194000 671000 671000 2624000 1671000 29000 4000 14274000 9865000 4409000 700000 675000 25000 2104000 106000