Årsrapport 30700228 EY Godkendt Revisionspartnerselskab Dirch Passers Allé 36 Postboks 250, 2000 Frederiksberg 2021-01-01 2021-12-31 2020-01-01 2020-12-31 2022-04-28 70333414 Sæther Nordic A/S Ryttermarken 11 3520 Farum 1982-12-22 Furesø Nordea EY Godkendt Revisionspartnerselskab 30700228 Dirch Passers Allé 36 2000 Frederiksberg Danmark +45 73 23 30 00 2022-04-28 Søren Tyge Sørensen Regnskabsklasse C, stor virksomhed Revisionspåtegning Grundlag for konklusion Konklusion true 2022-04-28 2022-04-28 CaseWare Working Papers Farum Palle Pedersen Chief Executive Officer Ellinor Sæther Chair Kay Spanger Lars Daugaard Pernille Krogh-Meyer Søren Tyge Sørensen Copenhagen Robert Christensen Jan C. Olsen State Authorised Public Accountant mne16653 State Authorised Public Accountant mne33717 879295000 643591000 608636000 102071000 76784000 39510000 25015000 26804000 Earnings before interest, taxes, depreciation and amortisation (EBITDA) Earnings before interest, taxes, depreciation and amortisation (EBITDA) Earnings before interest, taxes, depreciation and amortisation (EBITDA) Earnings before interest, taxes, depreciation and amortisation (EBITDA) Earnings before interest, taxes, depreciation and amortisation (EBITDA) 26824000 16637000 17217000 -3040000 -2893000 -2950000 -2167000 -2670000 17016000 10496000 11062000 274163000 284533000 209557000 67573000 64734000 78420000 58922000 -8646000 18542000 -29959000 -6294000 -8558000 -15010000 -5990000 7.5 7.3 3.2 2.9 3.2 25.1 29.5 23.3 20 20.1 24.2 20.1 9.6 6.7 8.5 37.9 37.2 24.6 22.8 37.4 48.9 54.9 25.7 14.7 14.1 278 202 184 1192153000 911685000 825623000 625215000 686346000 530024000 705632000 540591000 1000 8103000 39145000 37051000 206401000 120453000 56017000 36492000 299407000 269311000 103119000 85183000 197336000 192527000 59058000 53904000 12670000 9959000 1387000 1976000 89401000 66825000 42674000 29303000 0 0 37665000 29640000 270000 721000 193000 502000 3310000 3614000 4183000 3268000 86361000 63932000 76349000 56177000 18594000 13659000 8582000 5904000 67767000 50273000 67767000 50273000 26650000 15360000 1253000 2032000 3822000 1318000 3822000 1318000 827000 1343000 514000 565000 31299000 18021000 5589000 3915000 0 0 93433000 70948000 3454000 3001000 3398000 2945000 3454000 3001000 96831000 73893000 34753000 21022000 102420000 77808000 220255000 133845000 220255000 133845000 220255000 133845000 220255000 133845000 116748000 102123000 6598000 1688000 0 0 21695000 11055000 7317000 3711000 1725000 827000 0 1163000 0 0 5839000 5302000 4212000 3099000 4474000 5521000 2874000 3002000 134378000 117820000 37104000 19671000 37531000 38246000 0 0 392164000 289911000 257359000 153516000 426917000 310933000 359779000 231324000 1500000 1500000 1500000 1500000 0 0 29056000 0 616000 796000 616000 796000 -987000 -4356000 -987000 -4356000 115534000 92767000 86478000 92767000 45000000 25000000 45000000 25000000 161663000 115707000 161663000 115707000 1368000 1889000 0 0 15486000 8222000 0 0 16854000 10111000 0 0 17987000 11535000 10774000 6074000 17987000 11535000 10774000 6074000 23802000 0 21456000 3875000 109861000 82759000 68018000 46392000 0 0 71362000 32091000 20493000 11187000 10431000 5610000 69786000 73714000 9743000 16704000 6471000 5920000 6332000 4871000 230413000 173580000 187342000 109543000 248400000 185115000 198116000 115617000 426917000 310933000 359779000 231324000 1500000 0 -1421000 67494000 0 0 0 25273000 25000000 0 -796000 0 0 -3763000 0 -828000 0 1500000 796000 -4356000 92767000 25000000 0 0 22767000 45000000 0 180000 0 0 4319000 0 950000 0 0 25000000 1500000 616000 -987000 115534000 45000000 1500000 0 0 -1421000 67494000 0 0 0 0 25273000 25000000 0 0 -796000 0 0 -3763000 0 0 -828000 0 1500000 0 796000 -4356000 92767000 25000000 29056000 0 0 -6289000 45000000 0 0 -180000 0 0 4319000 0 0 950000 0 0 25000000 1500000 29056000 616000 -987000 86478000 45000000 67767000 50273000 40382000 23185000 -63569000 4427000 44580000 77885000 270000 721000 3310000 3614000 10764000 8127000 30776000 66865000 29959000 6294000 453000 31000 -30412000 -6325000 25000000 0 0 6234000 23802000 0 0 26949000 0 13584000 -1198000 -34299000 -834000 26241000 38246000 11445000 119000 560000 37531000 38246000 163439000 166067000 53368000 49971000 14051000 11460000 3106000 2997000 12713000 9756000 752000 454000 7133000 5244000 1832000 482000 197336000 192527000 59058000 53904000 311 283 83 84 12670000 9959000 1387000 1976000 12670000 9959000 1387000 1976000 0 0 0 84000 256000 714000 0 418000 14000 7000 193000 0 0 144000 1530000 966000 806000 1022000 736000 0 2504000 2448000 1917000 2302000 22440000 13626000 9481000 6438000 -3846000 557000 -899000 -534000 0 -524000 0 0 18594000 13659000 8582000 5904000 950000 -828000 950000 -828000 51812000 7227000 1343000 213000 0 0 14633000 0 15326000 2533000 0 4433000 8468000 2941000 -11409000 72593000 10168000 827000 36452000 5909000 0 83000 0 0 12228000 442000 348000 0 2477000 0 0 -5000 5000 0 45943000 6346000 0 26650000 3822000 827000 19341000 7227000 565000 0 0 6931000 692000 0 3870000 171000 2941000 -3112000 18820000 10168000 514000 17309000 5909000 0 945000 442000 692000 0 0 -5000 5000 0 17567000 6346000 0 1253000 3822000 514000 3001000 453000 3454000 3454000 64378000 2945000 0 453000 64378000 3398000 6570000 0 -180000 0 15000000 37665000 0 93433000 3398000 E. Sæther A/S Aktieselskab Danmark 100 E. Saether AB Kapitalselskab Sverige 100 Saether OY Kapitalselskab Finland 100 E. Sæther AS Kapitalselskab Norge 100 1000 A 1000 1000 1499000 B 1499000 1499000 -1822000 -2442000 -827000 -293000 -2569000 -2250000 -251000 -387000 -77000 173000 0 0 1368000 695000 0 0 -4671000 -440000 -1474000 -440000 17987000 0 17987000 0 10774000 0 10774000 0 747000 720000 79000 103000 1203000 439000 45000000 25000000 29056000 0 -6289000 25273000 12670000 9959000 -56000 0 6022000 0 -270000 -721000 -3310000 -3614000 18594000 14183000 0 -3850000 86093000 -9342000 -14116000 -23788000 -31102000 -20814000 5538000 -1941000 Today, the Board of Directors and the Executive Board have discussed and approved the annual report of Sæther Nordic A/S for the financial year 1 January - 31 December 2021. The annual report is prepared in accordance with the Danish Financial Statements Act. In our opinion, the consolidated financial statements and the parent company financial statements give a true and fair view of the financial position of the Group and the Company at 31 December 2021 and of the results of the Group's and the Company's operations and of the consolidated cash flows for the financial year 1 January - 31 December 2021. Further, in our opinion, the Management's review gives a fair review of the development in the Group's and the Company's operations and financial matters and the results of the Group's and the Company's operations and financial position. We recommend that the annual report be approved at the annual general meeting. To the shareholders of Sæther Nordic A/S We have audited the consolidated financial statements and the parent company financial statements of Sæther Nordic A/S for the financial year 1 January - 31 December 2021, which comprise income statement, balance sheet, statement of changes in equity and notes, including accounting policies, for the Group and the Parent Company, and a consolidated cash flow statement. The consolidated financial statements and the parent company financial statements are prepared in accordance with the Danish Financial Statements Act. In our opinion, the consolidated financial statements and the parent company financial statements give a true and fair view of the financial position of the Group and the Parent Company at 31 December 2021, and of the results of the Group's and Parent Company's operations as well as the consolidated cash flows for the financial year 1 January - 31 December 2021 in accordance with the Danish Financial Statements Act. 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 consolidated financial statements and the parent Company financial statements" (herinafter collectively referred to as "the financial statements") section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Independence We are independent of the Group in accordance with the International Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. Management is responsible for the preparation of consolidated financial statements and parent company 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 Group's and the Parent 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 Group or the Parent Company or to cease operations, or has no realistic alternative but to do so. Our objectives are to obtain reasonable assurance as to whether the financial statements as a whole are free from material misstatement, whether due to fraud or error and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and the additional requirements 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. As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the 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 Group's and the Parent 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 Group's and the Parent 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 Group and the Parent Company to cease to continue as a going concern. Evaluate the overall presentation, structure and contents of the financial statements, including the note disclosures, and whether the financial statements represent the underlying transactions and events in a manner that gives a true and fair view. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Management is responsible for the Management's review. Our opinion on the financial statements does not cover the Management's review, and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the Management's review and, in doing so, consider whether the Management's review is materially inconsistent with the financial statements or our knowledge obtained during the audit, or otherwise appears to be materially misstated. Moreover, it is our responsibility to consider whether the Management's review provides the information required under the Danish Financial Statements Act. Based on the work we have performed, we conclude that the Management's review is in accordance with the financial statements and has been prepared in accordance with the requirements of the Danish Financial Statements Act. We did not identify any material misstatement of the Management's review. Financial ratios are calculated in accordance with the terms and definitions as described in the accounting policies. The Group's main activities are the sale and marketing of perfumes and cosmetic products to the Nordic market. The main activities of the parent company are logistics, IT, procurement, finance and administration for the Group's subsidiaries. The income statement for 2021 shows a profit of DKK 67,767 thousand against a profit of DKK 50,273 thousand last year, and the group's balance sheet at 31 December 2021 shows equity of DKK 161,663 thousand. The development in the financial year has been extremely satisfactory and much better than expectations. A large part of the progress fall within the fact that the distribution rights for a larger portfolio have been accessed by the Group and its subsidiaries in Sweden and Norway as of 1 July 2021. However, the result for the year is, conversely, negatively affected by the provision for restructuring and the provision for losses in connection with the expected return of goods containing the ingredient Lilial. Please refer to note 2. The inflow of distribution rights has resulted in larger investments, which is why the Group has had negative cash flows in 2021, cf. the statement of cash flows. However, the development is in line with expectations. Financial review parent company The parent company incurred a net profit after tax of DKK 67.767 thousand - in line with Management's expectations but affected by the same events as impacted group figures. No facts or events occured in the parent company during the financial year which are not reflected in the management report for the Group. The Group's purchases are primarily made in EUR and some purchases are made in USD, whereas the Group's sales are primarily made in DKK, EUR, NOK and SEK. Currency risks are therefore limited to SEK, NOK and USD as the Danish krone in all material respects follows the euro. Currency risks are hedged based on an ongoing assessment of the exposure for the coming 12 months, and hedging is made by means of foreign exchange contracts. Investments in subsidiaries are considered long-term, and price risks in this respect are generally not hedged. The Company has no policies for corporate social responsibility, including human rights, climate impact, environment, social and staff matters as well as anti-corruption because the Company has assessed that the related risks are limited. Corporate social responsibility, including human rights and anti-corruption, is an integral part of the Danish labour market and Danish corporate culture and is well-established in the Company. This is reflected in the Company's trade with both Danish and foreign entities. However, at the end of the year, the company has partnered with a consultant in relation to mapping the company's current status in relation to sustainability and to establish concrete targets for the future. The company therefore expects to have concrete policies during 2022. Target figure for the Board of Directors The Board of Directors has determined a target ratio for the underrepresented gender on the Board of Directors of at least 40%, corresponding to 2 out of 5 members. The Board of Directors strives to maintain the target ratio in future. Status for fulfilment of the target At present, the Company has two female board members elected by the general meeting out of a total of five board members (40%), which is a change compared to last year as a new female member has been elected. Policy for increasing the ratio of the under-represented gender at other managerial levels The Company works to increase the ratio of female executives at all levels in the Company. In terms of the share of female managers, the share of female managers in the parent company has been on par just below last year, with 33% at the end of the year, compared to 36% in 2020. The Company strives for a well-balanced gender composition in the Company; however, our recruitment policy is to always hire the best qualified candidate for a given position. We also consider diversity a strength and therefore continuously strive to harmonise the gender composition in the Company, including among our executive employees. The company does not consider it relevant to develop a policy on data ethics. In this connection, the Company emphasise importance to the fact that the Company only to a limited extent collects and processes data and does not use new technologies as part of the Company's main activity, and does not itself or through external suppliers carry out specific data analyses, evaluations or segmentations. No events materially affecting the Group's and the Company's financial position have occurred subsequent to the financial year-end. The Company expects an increase in revenue for 2022 of approximately 25% as a result of the full-year effect from the increased distribution rights from July 1, 2021. Despite increased revenue, a moderate increase of 3-4% in the company's profit is expected as a result of planned investments in the organization. The annual report of Sæther Nordic A/S for 2021 has been prepared in accordance with the provisions in the Danish Financial Statements Act applying to large reporting class C entities. Reclassification has been made in the parent company between other external costs, personnel costs and other operating income. The reclassifications have not had an impact on profit or equity for the year. Comparative figures have been adjusted accordingly. The accounting policies used in the preparation of the financial statements are consistent with those of last year. With reference to section 86(4) of the Danish Financial Statements Act, no cash flow statement is prepared for the parent company, as its cash flows are reflected in the consolidated cash flow statement. Reporting currency The financial statements are presented in Danish kroner (DKK'000). Control The consolidated financial statements comprise the Parent Company and subsidiaries controlled by the Parent Company. Control means a parent company’s power to direct a subsidiary’s financial and operating policy decisions. Besides the above power, the parent company should also be able to yield a return from its investment. In assessing if the parent company controls an entity, de facto control is taken into consideration as well. The existence of potential voting rights which may currently be exercised or converted into additional voting rights is considered when assessing if an entity can become empowered to direct another entity’s financial and operating decisions. The consolidated entities' financial statements have been prepared in accordance with the Parent Company's accounting policies. The consolidated financial statements are prepared on the basis of the financial statements of the consolidated entities by aggregating similar financial statement items. Intra-group income, expenses, gains, losses, ownership interest, dividends and balances are eliminated. Equity investments in consolidated entities are set off against the proportionate share of the consolidated entity's fair value of assets and liabilities at the acquisition date. Newly acquired or formed entities are recognised in the consolidated financial statements from the date of acquisition or formation. Entities sold or otherwise disposed of are recognised in the consolidated income statement until the date of disposal. Comparative figures are not restated for acquisitions or disposals. Entities over which the Group exercises significant influence are considered associates. Significant influence is presumed to exist when the Group directly or indirectly holds between 20% and 50% of the voting rights or otherwise has or actually exercises significant influence. On initial recognition, transactions denominated in foreign currencies are translated at the exchange rates at the transaction date. Receivables, payables and other monetary items denominated in foreign currencies are translated into Danish kroner at the exchange rate at the balance sheet date. Realised and unrealised exchange gains and losses are recognised in the income statement as financial income/expenses. Foreign group entities Foreign subsidiaries are considered separate entities. Items in such entities' income statements are translated at an average exchange rate for the month, and balance sheet items are translated at closing rates. Foreign exchange differences arising on translation of the opening equity of foreign subsidiaries to closing rates and on translation of the income statements from average exchange rates to closing rates are taken directly to equity. Exchange adjustments of balances with separate foreign enitites that are considered to constitute an addition to or a deduction from the total investment in the separate foreign entitiy are taken directly to equity. On the sale of an separate foreign entity, the accumulated exchange adjustment is re-classified from equity to the income statement together with the gain or the loss. On initial recognition, derivative financial instruments are recognised at cost in the balance sheet and are subsequently measured at fair value. Positive and negative fair values of derivative financial instruments are presented as separate items in the balance sheet. Fair value adjustments of derivative financial instruments designated as and qualifying for recognition as a hedge of the fair value of a recognised asset or liability are recognised in the income statement along with changes in the fair value of the hedged asset or liability. Fair value adjustments of derivative financial instruments designated and qualifying as hedging of future assets or liabilities are recognised as separate items in the balance sheet and in the hedging reserve under equity. If the forecast transaction results in the recognition of assets or liabilities, amounts previously recognised in equity are transferred to the cost of the asset or liability, respectively. If the forecast transaction results in income or expenses, amounts previously recognised in equity are transferred to the income statement in the period in which the hedged item affects the income statement. The Company has chosen IAS 11/IAS 18 as interpretation for revenue recognition. Income from the sale of goods for resale and finished goods is recognised in revenue at the time of delivery and when the risk passes to the buyer, provided that the income can be made up reliable and is expected to be received. Revenue is measured net of all types of discounts/rebates granted. Also, revenue is measured net of VAT and other indirect taxes charged on behalf of third parties. Other operating income and operating expenses comprise items of a secondary nature relative to the Company's core activities, including sale of services to affiliates and gains or losses on the sale of non-current assets. Cost of sales includes the cost of goods used in generating the year's revenue. Other external expenses include the year's expenses relating to the Company's core activities, including expenses relating to distribution, sale, advertising, administration, premises, bad debts, payments under operating leases, etc. Staff costs include wages and salaries, including compensated absence and pension to the Company's employees, as well as other social security contributions, etc. The item is net of refunds from public authorities. The item comprises depreciation of property, plant and equipment. The basis of depreciation, which is calculated as cost less any residual value, is depreciated on a straight line basis over the expected useful life. The expected useful lives of the assets are as follows: Other fixtures and fittings, tools and equipment 3-5 years Leasehold improvements 10 years The residual value is 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. In case of changes in the residual value, the effect on the depreciation charges is recognised prospectively as a change in accounting estimates. Residual values are assessed to be DKK 0. In the case of changes in the depreciation period or the residual value, the effect on the depreciation charges is recognised prospectively as a change in accounting estimates. A proportionate share of the underlying entities' profit/loss after tax is recognised in the income statement according to the equity method. Shares of profit/loss after tax in subsidiaries are presented as separate line items in the income statement. Full elimination of intra-group gains/losses is made for equity investments in subsidiaries. Financial income and expenses are recognised in the income statements at the amounts that concern the financial year. Net financials include interest income and expenses as well as allowances and surcharges under the advance-payment-of-tax scheme, etc. Tax for the year includes current tax on the year's expected taxable income and the year's deferred tax adjustments. The portion of the tax for the year that relates to the profit/loss for the year is recognised in the income statement, whereas the portion that relates to transactions taken to equity is recognised in equity. The Company and its Danish group entities are jointly taxed. The total Danish income tax charge is allocated between profit/loss-making Danish entities in proportion to their taxable income (full absorption). Jointly taxed entities entitled to a tax refund are reimbursed by the management company based on the rates applicable to interest allowances, and jointly taxed entities which have paid too little tax pay a surcharge according to the rates applicable to interest surcharges to the management company. Property, plant and equipment Items of property, plant and equipment are measured at cost less accumulated depreciation and impairment losses. Cost includes the acquisition price and costs directly related to the acquisition until the time at which the asset is ready for use. Gains or losses are calculated as the difference between the selling price less selling costs and the carrying amount at the date of disposal. Gains and losses from the disposal of property, plant and equipment are recognised in the income statement as other operating income or other operating expenses. The Company has chosen IAS 17 as interpretation for classification and recognition of leases. Leases that do not transfer substantially all the risks and rewards incident to the ownership to the Company are classified as operating leases. Payments under operating leases are recognised in the income statement over the term of the lease. On initial recognition, investments in subsidiaries are measured at cost and subsequently at the proportionate share of the entities' net asset values calculated in accordance with the Parent Company's accounting policies minus or plus any residual value of positive or negative goodwill calculated in accordance with the purchase method of accounting. Subsidiaries with a negative net asset value are measured at DKK 0 (nil), and any amounts owed by such entities are written down by the Parent Company's share of the net asset value if the amount owed is deemed irrecoverable. If the negative net asset value exceeds the amounts owed, the remaining amount is recognised under provisions if the Parent Company has a legal or a constructive obligation to cover the subsidiary's deficit. Net revaluations of investments in subsidiaries are transferred to the net revaluation reserve according to the equity method where the carrying amount exceeds the acquisition cost. Newly acquired or formed entities are recognised in the financial statements from the date of acquisition or formation. Entities sold or otherwise disposed of are recognised up to the date of disposal. Gains or losses on disposal of subsidiaries are made up as the difference between the sales price and the carrying amount of net assets at the date of disposal including non-amortised goodwill and anticipated costs of disposal. Gains or losses are recognised in the income statement as financial income or financial expenses. The carrying amount of property, plant and equipment and investments in subsidiaries is assessed for impairment on an annual basis. Impairment tests are conducted on assets or groups of assets when there is evidence of impairment. The carrying amount of impaired assets is reduced to the higher of the net selling price and the value in use (recoverable amount). The recoverable amount is the higher of the net selling price of an asset and its value in use. The value in use is calculated as the present value of the expected net cash flows from the use of the asset or the group of assets and the expected net cash flows from the disposal of the asset or the group of assets after the end of the useful life. Previously recognised impairment losses are reversed when the reason for recognition no longer exists. Impairment losses on goodwill are not reversed. 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 expenses required to effect the sale and is determined taking into account marketability, obsolescence and development in the expected selling price. Goods for resale are measured at cost, which comprises the cost of acquisition plus delivery costs as well as other expenses directly attributable to the acquisition. Receivables are measured at amortised cost. An impairment loss is recognised if there is objective evidence that a receivable or a group of receivables is impaired. If there is objective evidence that an individual receivable has been impaired, an impairment loss is recognised on an individual basis. Prepayments recognised under "Assets" comprise prepaid expenses regarding subsequent financial reporting years. Cash comprise cash and short term securities which are readily convertible into cash and subject only to minor risks of changes in value. Reserve for net revaluation according to the equity method The net revaluation reserve according to the equity method includes net revaluations of investments in subsidiaries relative to cost. The reserve can be eliminated in case of losses, realisation of investments or a change in accounting estimates. The reserve cannot be recognised at a negative amount. Translation reserve The translation reserve comprises the share of foreign exchange differences arising on translation of financial statements of entities that have a functional currency other than DKK, foreign exchange adjustments of assets and liabilities considered part of the Company's net investments in such entities and foreign exchange adjustments regarding hedging transactions that hedge the Company's net investments in such entities. The reserve is dissolved on the sale of foreign entities or if the conditions for effective hedging no longer exist. When equity investments in subsidiaries in the parent company financial statements are subject to the limitation requirement in the net revaluation reserve according to the equity method, foreign exchange adjustments will be included in this equity reserve instead. Hedging reserve The hedging reserve comprises the cumulative net change in the fair value of hedging transactions that qualify for recognition as a cash flow hedge and where the hedged transaction has not yet been realised. The reserve is dissolved when the hedged transaction is realised, if the hedged cash flows are no longer expected to be realised or if the hedging relationship is no longer effective. The reserve does not represent a limitation under company law and may therefore be negative. Proposed dividends Dividend proposed for the year is recognised as a liability once adopted at the annual general meeting (declaration date). Dividends expected to be distributed for the financial year are presented as a separate item under "Equity". Dividend proposed for the year is recognised as a liability once adopted at the annual general meeting (declaration date). Dividends expected to be distributed for the financial year are presented as a separate item under "Equity". Provisions comprise anticipated expenses relating to return commitments related to the sale of goods. Provisions are recognised when the Company has a legal or constructive obligation as a result of a past event at the balance sheet date and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation. Current tax payables and receivables are recognised in the balance sheet as the estimated income tax charge for the year, adjusted for prior-year taxes and tax paid on account. Deferred tax is measured according to the liability method on all temporary differences between the carrying amount and the tax base of assets and liabilities. However, deferred tax is not recognised on temporary differences relating to goodwill which is not deductible for tax purposes and on office premises 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 alternative tax rules can be applied to determine the tax base, deferred tax is measured based on Management's intended use of the asset or settlement of the liability, respectively. Deferred tax is measured according to the tax rules and at the tax rates applicable at the balance sheet date when the deferred tax is expected to crystallise as current tax. Deferred tax assets 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. Changes in deferred tax due to changes in the tax rate are recognised in the income statement. Financial liabilities are recognised at the date of borrowing at the net proceeds received less transaction costs paid. On subsequent recognition, 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. Other liabilities are measured at net realisable value. Deferred income Deferred income recognised as a liability comprises payments received concerning income in subsequent financial reporting years. The cash flow statement shows the Company's net cash flows broken down according to operating, investing and financing activities, the year's changes in cash and cash equivalents as well as the cash and cash equivalents at the beginning and the end of the year. Cash flows from operating activities are calculated as the profit/loss for the year adjusted for non cash operating items, changes in working capital and paid corporate income tax. Cash flows from investing activities comprise payments in connection with acquisitions and disposals of entities and activities and of intangible assets, property, plant and equipment and investments. Cash flows from financing activities comprise changes in the size or composition of the Company's share capital and related expenses as well as raising of loans, repayment of interest bearing debt and payment of dividends to shareholders. Cash and cash equivalents comprise cash and short-term securities which are readily convertible into cash and which are subject only to insignificant risks of changes in value. The allocation of revenue to geographical markets is disclosed. The segmentation is in accordance with the Company's internal financial management. The financial ratios stated under "Financial highlights" have been calculated as follows: Operating profit/loss Profit/loss before financial items adjusted for other operating income and other operating expenses Operating margin Operating profit (EBIT) x 100 Revenue Gross margin Gross profit/loss x 100 Revenue Return on assets Profit/loss from operating activites x 100 Average assets Equity ratio Equity, year-end x 100 Total equity and liabilities, year-end Return on equity Profit/loss after tax x 100 Average equity Breakdown of revenue by geographical segment: Revenue, Denmark 560,854 498,622 398,396 351,353 Revenue, Sweden 397,431 251,735 265,472 160,437 Revenue, Norway 201,840 139,318 137,886 97,338 Revenue, Other countries 32,028 22,010 23,869 16,087 1,192,153 911,685 825,623 625,215 Total remuneration to group Management and board of directors: DKK 4,350 thousand (2020: DKK 4,327 thousand) Total remuneration to Management and board of directors: DKK 4,350 thousand (2020: DKK 4,327 thousand) Prepayments include accrual of expenses relating to subsequent financial years, including rent, licence fees and other prepaid expenses. Prepayments include accrual of expenses relating to subsequent financial years, including rent, licence fees and other prepaid expenses. At 31 December 2021, the Group and Parent Company had recognised a tax asset totalling DKK 7,317 thousand and DKK 1.725 thousand. The tax asset consists primarily of non-utilised tax deductions in the form of timing differences. Based on the 2022 budgets, management has assessed it likely that future taxable profit will be available in which tax assets can be utilized. Other provisions comprise provisions for return commitments related ot the sale of goods. Return provisions relate to aniticpated return expenses in accordance with agreements with customers. The obligation is expected to be settled over the return period, which is maximum one year. Deferred income consists of prepaid marketing contributions that will not be recognised as income until the subsequent financial year once the recognition criteria are satisfied. Deferred income consists of prepaid marketing contributions that will not be recognised as income until the subsequent financial year once the recognition criteria are satisfied. Contingent liabilities Group Other rent and lease liabilities: Group Parent company DKK'000 2021 2020 2021 2020 Rent and lease liabilities 62,467 50,926 48,614 35,505 Group Rent and lease liabilities include a rent obligation totalling DKK 58,337 thousand (2020: DKK 45,240 thousand) in interminable rent agreements with remaining contract terms of 1-10 years. Furthermore, the Group has liabilities under operating leases for cars and IT equipment totalling DKK 4,130 thousand (2020: DKK 5,685 thousand) with remaining contract terms of 1-4 years. The Company is jointly taxed with other Danish group entities. As a jointly taxed group entity, the Company has joint and several unlimited liability, together with the other group entities, for all Danish income taxes and withholding taxes on dividend, interest and royalties within the group of jointly taxed entities. The Company is jointly registered for VAT with its subsidiary E. Sæther A/S. The Company is thus jointly and severally liable for all VAT liabilities under the joint registration. Total consolidated VAT receivable for the jointly registered companies totalled DKK 1,082 thousand at 31 December 2021. A company charge of DKK 100 million, secured on Group trade receivables and inventories, has been provided as security for E. Sæther A/S' and Sæther Nordic A/S' debt to Jyske Bank. A bank guarantee has been provided for rent liabilities totalling DKK 56 thousand. A company charge of DKK 50 million, secured on the Company's trade receivables and inventories, has been provided as security for the Company's debt to Jyske Bank. Furthermore, the Parent Company has provided a guarantee vis-à-vis Jyske Bank in repect of the subsidiary E. Sæther A/S' debt to Jyske Bank. Information about consolidated financial statements Parent Domicile Ultimativt moderselskab/Ultimate Parent Company, E. Sæther Holding A/S Related party transactions DKK'000 2021 2020 Group Interest expenses to Parent Company 0 144 Rent of owner-occupied property from shareholder 4,075 3,875 Parent Company Sale of goods to group entities 816,905 540,345 Sale of services to group entities 101,212 94,421 Interest income from group entities 0 85 Interest allocations to group entities 3,589 3,329 Interest expenses to group entities 1,530 980 Rent of owner-occupied property from shareholder 4,075 3,875 Purchase of services from group entities 360 360 Sale of POS materials to group entities 22,553 18,349 Receivables from and payables to group entities are specified in the balance sheet. Information on the remuneration to management Information on the remuneration to Management appears from note 4, "Staff costs". Parties exercising control Related party Domicile Basis for control Parent Company E. Sæther Holding A/S Denmark Participating interest Shareholders' agreement Participating interest Information about remuneration to Management Information about remuneration to Management appears from note 4, "Staff costs". In accordance with section 96(3) of the Danish Financial Statements Act, audit fees are not disclosed for the parent company as audit fees are disclosed for the Group as a whole in the consolidated financial statements. 70333414 2021-01-01 2021-12-31 d:ConsolidatedMember 70333414 2021-01-01 2021-12-31 70333414 2021-01-01 70333414 2020-01-01 2020-12-31 70333414 2020-12-31 70333414 2021-12-31 70333414 2020-01-01 70333414 2021-01-01 2021-12-31 d:ConsolidatedMember 1 70333414 2021-01-01 2021-12-31 d:ConsolidatedMember 2 70333414 2021-01-01 2021-12-31 d:ConsolidatedMember 3 70333414 2021-01-01 2021-12-31 d:ConsolidatedMember 4 70333414 2021-01-01 2021-12-31 d:ConsolidatedMember 5 70333414 2021-12-31 d:ConsolidatedMember 1 70333414 2021-12-31 d:ConsolidatedMember 2 70333414 2021-01-01 2021-12-31 d:ConsolidatedMember 1 70333414 2021-01-01 2021-12-31 d:ConsolidatedMember 2 70333414 2021-01-01 2021-12-31 d:ConsolidatedMember 1 70333414 2021-01-01 d:ConsolidatedMember e:OtherReceivablesMember 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