Årsrapport 33771231 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab Herredsvej 32 7100 Vejle 2021-01-01 2020-01-01 2021-12-31 2020-12-31 31593247 Runway Holding ApS Lufthavnsvej 7A 6580 Vamdrup Vamdrup PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab 33771231 Herredsvej 32 7100 Vejle Danmark 2022-04-26 Halldor Sigurdarson Regnskabsklasse C, stor virksomhed Revisionspåtegning The Executive Board has today considered and adopted the Annual Report of Runway Holding ApS 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 Financial Statements and the Consolidated Financial Statements give a true and fair view of the financial position at 31 December 2021 of the Company and the Group and of the results of the Company and Group operations and of consolidated cash flows for 2021. We recommend that the Annual Report be adopted at the Annual General Meeting. Vamdrup 2022-04-26 Jesper Rungholm Kirsten Rungholm To the Shareholders of Runway Holding ApS Opinion 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 the Parent Company’s operations and of consolidated cash flows for the financial year 1 January - 31 December 2021 in accordance with the Danish Financial Statements Act. We have audited the Consolidated Financial Statements and the Parent Company Financial Statements of Runway Holding ApS for the financial year 1 January - 31 December 2021, which comprise income statement, balance sheet, statement of changes in equity and notes, including a summary of significant accounting policies, for both the Group and the Parent Company, as well as consolidated statement of cash flows (”the Financial Statements”). Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the ”Auditor’s responsibilities for the audit of the Financial Statements” section of our report. We are independent of the Group in accordance with the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Management is responsible for Management’s Review. Our opinion on the Financial Statements does not cover Management’s Review, and we do not express any form of assurance conclusion thereon. In connection with our audit of the Financial Statements, our responsibility is to read Management’s Review and, in doing so, consider whether Management’s Review is materially inconsistent with the Financial Statements or our knowledge obtained during the audit, or otherwise appears to be materially misstated. Moreover, it is our responsibility to consider whether Management’s Review provides the information required under the Danish Financials Statements Act. Based on the work we have performed, in our view, Management’s Review is in accordance with the Consolidated Financial Statements and the Parent Company Financial Statements and has been prepared in accordance with the requirements of the Danish Financial Statements Act. We did not identify any material misstatement in Management’s Review. Management 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 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 Company or to cease operations, or has no realistic alternative but to do so. 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 the additional requirements applicable in Denmark will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Financial Statements. As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional 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 Company’s and the Group’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 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 Company to cease to continue as a going concern. Evaluate the overall presentation, structure and contents of the Financial Statements, including the disclosures, and whether the Financial Statements represent the underlying transactions and events in a manner that gives a true and fair view. 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. Trekantområdet 2022-04-26 Trekantområdet 2022-04-26 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab Jan Bunk Harbo Larsen statsautoriseret revisor mne30224 Lasse Berg statsautoriseret revisor mne35811 Seen over a five-year period, the development of the Group is described by the following financial highlights: See the description under accounting policies.See the description under accounting policies. 1007650000 1071422000 890933000 329181000 333913000 324034000 -26528000 -17075000 -37198000 -34385000 20418000 15303000 1161000 35054000 871888000 952420000 639615000 222507000 207204000 206284000 -4099000 62544000 78140000 40630000 -50320000 -33693000 -84282000 -45992000 -57705000 -175139000 -69696000 -38535000 -32907000 -49474000 32413000 110133000 -2004000 -20683000 -5027000 Årets forskydning i likvider Årets forskydning i likvider Årets forskydning i likvider Årets forskydning i likvider Årets forskydning i likvider 562 454 438 37 59.9 32.7 31.2 36.4 7.7 4.5 5.4 3.7 2.8 5.2 2.2 6.2 4.2 3.9 26.8 25.1 25.5 21.8 32.3 1.1 1.7 7.1 0.6 18.6 Key activities The Group’s activities consist of two airlines and related activities using both own and leased aircraft as well as trading in aircraft and parts. The Company’s activities comprise holding shares in subsidiaries. Development in the year The income statement of the Group for 2021 shows a profit of TDKK 2,513, and at 31 December 2021 the balance sheet of the Group shows equity of TDKK 228,737. Management is pleased with the financial results. Despite continued COVID-19 related setbacks and challenges during the year, and particularly the late-November Omicron variant, the Group was able to post both a positive result and healthy liquidity position at the end of the year. State compensation support schemes contributed largely to this result supported by the gradual and improved trading performance compared to the previous year. There was a relative strong start to the year compared to the 4th quarter 2020. Demand and activities across scheduled services performed on a steady upward trend throughout the year until late November when Omicron impacted the market. This market downturn continued throughout December and into the early months of 2022. Charter and ACMI activity remained largely inactive in 2021 although an improvement compared to 2020. Foreign exchange risks A large portion of the Group's income and expenses as well as external financing is settled in foreign currencies meaning that the profit may be affected by currency fluctuations. It is Group policy not to part-take in speculative currency positions. Foreign branches - DAT A/S, Italy, VAT no. IT10399580967. - UAB DAT LT, Italy, VAT no IT10448800960. Targets and expectations for the year ahead Given the current challenging times it is difficult to predict what to expect for the year ahead. The general approach is to be cautious when it comes to expectations whilst integrating an element of optimism. Management’s estimate is to expect a 2022 before-tax profit of approximately DKK 15 mill. However, the continued short- and medium-term impact of COVID-19 remains an omnipresent unknown, while the current geopolitical situation in Eastern Europe can have unforeseen impacts. Capital resources The Group’s financial performance for 2021 shows a profit before tax of DKK 17.6 mill and the equity is as of 31 December 2021 positive with DKK 228.7 mill. Next to equity the Group’s operations is financed through external credit lines provided by the Company’s bank. The credit lines are granted at Group level and hence the assessment of adequate liquidity reserves for the coming year has been made at this level. The Group has total debt towards Sydbank amounting to DKK 169 mill as of year-end 2021. As of this DKK 45 mill is a revolving facility with annual extension, which was extended by one year in April 2021 and is expected to be renewed in April 2022 for a period of one year. The current credit facilities are assessed to provide sufficient liquidity to secure the Groups operations in the years to come. For 2022 the Groups budget is based on an increase in revenues of around 51% compared to 2021. Compared to prior Covid-19 (2019) a decrease of around 7% is budgeted, still tacking the Omicron effects of the pandemic into account in the budget. The Group has in the last months of 2021 seen a monthly increase in production compared to what was seen during the first Covid-19 lock-down and reached around 40% of its comparable second half 2019 production in the last six months of 2021. The budget for 2022 is based on these assumptions seeing a further improvement in the coming months. As of 31 March 2022, the liquidity is adequate with a short-term headroom totaling around DKK 75 mill. Being cautiously optimistic, the long-term liquidity forecast (12 months) shows a headroom of DKK 60 mill under the budgeted scenario. Whilst it is very difficult to make predictions during these unsettling times, management is of the view its budgeted scenario is reasonable. This includes scheduled instalments on loans of around DKK 31 mill during 2022. Based on this, it is the management's assessment that the Company has the necessary capital and liquidity resources to carry through the plans for the financial year 2022. The Annual Report is therefore presented on the assumption of continued operations. Impact on the external environment DAT Group's primary environmental influence is through CO2-emissions from aircraft operations. DAT Group seeks to reduce fuel consumption and CO2-emission as much as possible. Among other things this is done by continuously training pilots, adjusting aircraft sizes to the number of passengers, optimizing flight height, and investing in more fuel-efficient aircraft which have lower CO2-emissions. Every pilot is trained in fuel-efficient flight as an integrated part of their training in the Group's aircraft fleet. DAT Group continues to invest in new aircraft to achieve the optimum utilization based on the Group's activities, including the optimal utilisation related to fuel consumption. DAT A/S and UAB DAT LT are in the aviation industry which impacts the climate with CO2 emissions. It is estimated that the aviation industry (pre-COVID-19) is responsible for up to 3% of the EU’s annual CO2 emissions, and as a responsible airline the Group is invested in reducing its climate impact. This is achieved by utilizing aircraft relevant to the passenger load, continuous education of pilots, and investments in new aircraft and engines that have lower emissions overall. Due to the significant reduction in operations post-COVID-19 the environmental and climate impact was reduced. The emissions on Danish domestic operations were offset according to the current initiative. At the same time, no noise violations were reported in 2021. Statutory statement on CSR in accordance with section 99A of the Danish Financial Statements Act Report on the gender representation in management, as required in section 99B of the Danish Financial Statements Act Subsequent events Management deems the ongoing consequences of COVID-19 to be an event that continues after the balance sheet date and therefore constitutes a non-regulatory event for the Group. Furthermore, the war against Ukraine may have serious impact to the outcome of 2022 and beyond although at the date of this report there have been no material adverse implications beyond the immediate fuel price spike. This means, among other things, that the assessments of indications of impairment per 31 December 2021 is based on the future cash flows expected by management per 31 December 2021, which may differ from the expectations for future cash flows that management has at the time of approval of the annual report. Despite the above consequences of COVID-19, the war against Ukraine, and as described in note 1 "Going concern" as well in the paragraph “Capital resources” in the management's review, management still considers the capital and liquidity resources to be adequate to secure the operations for the financial year 2022. No further events have occurred after the balance sheet date that materially affect the Group's net financial position. The Group’s corporate social responsibility (CSR) is necessary to lead a sustainable business, and the Group strives in all its activities to operate socially responsible, not only within flight operations but also in relation to general management and broader activities related to flight operations. Throughout the years the Group has continuously worked on establishing a range of policies and guidance material related to its CSR, especially within environmental and climate-related aspects as well as overall safety in all areas. The Group’s business model focuses on two areas: scheduled flights, and flights for other airlines (ACMI). Charter flights are also offered but with the strategic decision to exit this business area, it has become less of a strategic part of the business model and by summer 2022 it is envisaged that only ad-hoc charters and short-series charters will be operated but not multi series of seasonal charter flights. Operations are primarily based in the European market with a focus on the Nordic region. Limited activities take place outside of this area. DAT sells tickets under its own brand direct to passengers as well as in the business-to-business markets. There is no exposure to markets or customers that infringe upon human rights nor are there signs that suppliers do not adhere to human rights. Due to the nature of our activities, our operations compose somewhat risk to the environment. Environmental and climate aspects have been incorporated into the business through operational procedures and strategic focus on addressing CO2 emissions. We monitor our fuel consumptions and therefore carbon footprint. In 2021 we reduced our CO2 consumption to what it was in the year before the pandemic’s out-break in early 2020 with the 2021 consumption being at 52% of what it was in 2019. Large part of it was because of COVID-19 and travel restrictions. Exiting the charter flights will however continue to allow us to further proportionally reduce CO2 emissions. The Group is working on fleet renewal plan with the aim of replacing aircraft for more fuel efficient aircraft. In 2021, the Group’s MD aircraft were disposed of and in 2022 replaced by young and more emission friendly Airbus aircraft. Both for the environment as well as for cost optimisation, we train crew to minimise the use of fuel in our operations to the extent possible whilst still being in full compliance with aviation related regulations. In 2020 DAT A/S announced its intention to join the Air Transport Climate Fund (i.e. Luftfartens Klimafond), whose intentions are to facilitate the industry’s green transition and contribute to Denmark’s climate goals. Social and employment conditions in the Group have defined policies to ensure a productive and safe environment. The current business environment is not conducive to corruptions risks and therefore no anti-corruption policy has been put in place. The Group’s cooperation is built upon trust and respect. We treat all – customers, suppliers, employees, and colleagues alike – as we ourselves wish to be treated. Such behavior requires that we regard all humans as equal with a right to equal treatment and respect regardless of race, color, gender, age, nationality, religion, or political or sexual orientation. The Group respects international law regarding human rights and will react to violations of these laws. The Group continuously has activities to promote the physical and psychological environments as well as employees’ welfare. The Group does not have a formal policy concerning human rights. This policy does not exist because the Group is not directly exposed to severe human rights’ issues, neither directly nor through suppliers, as far as the Group is aware. The Group respects international law regarding human rights’ issues and will react accordingly should the Group be made aware of any breach, either directly or through suppliers. One stated goal of the Group is a high level of health and safety regarding the physical and psychological working environments. This is seen through the Group’s focus on sickness levels, alcohol and smoking policies, safety and security policies, and the requirements regarding continuous health checks for its flight crew. There are evaluations of the Group’s alcohol and smoking policies and the Group’s working environment. There is a Safety Management System to ensure the security and safety of the airlines which follows a bottom-up approach that builds on reports from colleagues to the safety system. The Group’s handbooks ensure that new colleagues can quickly find information regarding the Group’s policies and other relevant information. The working environment is evaluated through several initiatives. Within DAT A/S a formal Working Environment Committee solicits input from personnel and addresses specific issues. A triannual risk assessment is completed surveying the work environment and health and safety. The most recent risk assessment was completed in Q1 of 2021. In addition, the operational environment is regularly evaluated through Safety Action Groups (e.g. Fatigue). In 2021 the working environment revealed no significant areas of concern. The focus on cost control means that only urgent areas will be addressed going forward. The significant reduction in work and various initiatives implemented to reduce costs throughout the year may impact evaluations in the future, but at the same time, may be an opportunity to improve efficiency (e.g. long flying days but not impacting fatigue due to reduced working days). The Group does not have a formal policy concerning anticorruption. This policy does not exist because the Group is not directly exposed to corruption issues in its transactions, neither directly nor through suppliers. The Group does declare in its purchase conditions that it will not pay any rebate, commission, salary or any remuneration or reward, indirectly or in any form whatsoever to any officer, employee, agent, or representative employed by or on behalf of the Group. DAT Holding A/S, DAT Leasing A/S, and DAT A/S have the same board of directors. In 2021, the board of directors was below the targeted goal of 40% female. There has been no change in board directors during the year and as of writing, the current ratio is 0% female. It should be noted that qualifications are always prioritized above gender. It is the Group’s intention to re-equalise its male-to-female representation at its board of directors by 2024. The broader management team currently consists of 100% men and 0% women. Should one take a wider perspective and consider flight crew composition the Group has gender ratios of varying degrees. The Group acknowledges diversity as a source of competitive advantages and, therefore, wants to secure an equal gender distribution at the broader management team or flight crew level. As stated previously, qualifications are prioritized compared to other factors and the Group does not discriminate during its hiring or promotion of colleagues. Qualifications are prioritized when hiring, however ensuring a wide-ranging applicant pool is important to the Group. The policy for gender equalisation is a two-pronged approach. Internal candidates of all genders are encouraged to apply for management positions. External job postings are placed in industry-specific outlets, in addition to, female-focused outlets if available and relevant to the management position at hand. Report on data ethics, as required in section 99D of the Danish Financial Statements Act The Group does not apply advanced technologies, such as AI or machine learning in relation to data management. Data, used in relation to customers and employees, is sufficiently managed in accordance with GDPR legislation and internal policies for privacy and data security. Given the required management of data, the Group has assessed that a separate policy is not necessary. The Group will evaluate whether a policy is needed on a continuous basis. In 2021, the Group commissioned reports on its data security to test the vulnerability from social engineering attacks as well as for penetration tests to be performed against several of its resources. The tests will conclude in 2022 following which the Group will take recommended actions, if any. 573647000 428307000 2068000 887000 117092000 181307000 0 0 412804000 305665000 0 0 65875000 47435000 709000 182000 212060000 256514000 1359000 705000 72897000 112131000 0 0 95032000 124903000 0 0 44131000 19480000 1359000 705000 0 0 2874000 4419000 1229000 -219000 0 0 5634000 18854000 0 729000 33391000 35710000 713000 350000 17603000 2405000 3520000 5503000 15090000 -1516000 1145000 1611000 2513000 3921000 2375000 3892000 3031000 3403000 0 0 2571000 4734000 0 0 500273000 574762000 0 0 505875000 582899000 0 0 0 0 175997000 172513000 4429000 0 0 0 0 0 51000000 51000000 14455000 13469000 0 0 18884000 13469000 226997000 223513000 524759000 596368000 226997000 223513000 79688000 56179000 0 0 44864000 40291000 0 0 0 0 33014000 27870000 41317000 60828000 0 0 591000 19824000 0 0 5665000 3719000 0 73000 92437000 124662000 33014000 27943000 14000 741000 0 731000 155352000 122212000 3134000 8656000 327491000 303794000 36148000 37330000 852250000 900162000 263145000 260843000 127000 127000 127000 127000 127000 127000 127000 127000 0 0 122335000 119476000 -16000 -14000 -16000 -14000 227879000 225502000 105544000 106026000 747000 607000 0 0 228737000 226222000 227990000 225615000 52378000 64739000 0 0 16584000 15859000 0 0 68962000 80598000 0 0 133713000 151187000 0 0 193584000 201438000 0 0 3500000 7000000 0 0 9007000 9393000 0 0 339804000 369018000 0 0 34598000 48507000 0 0 7674000 12687000 0 0 8912000 13638000 0 0 56108000 60079000 0 0 0 0 29860000 22584000 3983000 3983000 3983000 3983000 9195000 8620000 1274000 8620000 2060000 2285000 0 0 92217000 74525000 38000 41000 214747000 224324000 35155000 35228000 554551000 593342000 35155000 35228000 852250000 900162000 263145000 260843000 127000 0 -14000 225502000 607000 0 0 0 0 4000 0 0 -2000 0 0 0 0 2377000 136000 127000 0 -16000 227879000 747000 127000 119476000 -14000 106026000 0 0 0 -2000 0 0 2859000 0 -482000 0 127000 122335000 -16000 105544000 0 2513000 3921000 128673000 143646000 -1022000 -7983000 130164000 139584000 5634000 18854000 33389000 35701000 102409000 122737000 7599000 1367000 94810000 121370000 84282000 45992000 5417000 -2178000 75438000 26064000 -14261000 -17750000 0 773000 31383000 0 12867000 14384000 3886000 0 0 16583000 0 24000 0 5063000 -48136000 6513000 32413000 110133000 122953000 12820000 155366000 122953000 155352000 122212000 14000 741000 The Group’s financial performance for 2021 shows a profit before tax of DKK 17.6 mill and the equity is as of 31 December 2021 positive with DKK 228.7 mill. Next to equity the Group’s operations is financed through external credit lines provided by the Company’s bank. The credit lines are granted at Group level and hence the assessment of adequate liquidity reserves for the coming year has been made at this level. The Group has total debt towards Sydbank amounting to DKK 169 mill as of year-end 2021. As of this DKK 45 mill is a revolving facility with annual extension, which was extended by one year in April 2021 and is expected to be renewed in April 2022 for a period of one year. The current credit facilities are assessed to provide sufficient liquidity to secure the Groups operations in the years to come. For 2022 the Groups budget is based on an increase in revenues of around 51% compared to 2021. Compared to prior Covid-19 (2019) a decrease of around 7% is budgeted, still tacking the Omicron effects of the pandemic into account in the budget. The Group has in the last months of 2021 seen a monthly increase in production compared to what was seen during the first Covid-19 lock-down and reached around 40% of its comparable second half 2019 production in the last six months of 2021. The budget for 2022 is based on these assumptions seeing a further improvement in the coming months. As of 31 March 2022, the liquidity is adequate with a short-term headroom totaling around DKK 75 mill. Being cautiously optimistic, the long-term liquidity forecast (12 months) shows a headroom of DKK 60 mill under the budgeted scenario. Whilst it is very difficult to make predictions during these unsettling times, management is of the view its budgeted scenario is reasonable. This includes scheduled instalments on loans of around DKK 31 mill during 2022. Based on this, it is the management's assessment that the Company has the necessary capital and liquidity resources to carry through the plans for the financial year 2022. The Annual Report is therefore presented on the assumption of continued operations. No events materially affecting the assessment of the Annual Report have occurred after the balance sheet date. Geographical segments Revenue, Europe 573.647 428.307 2.068 887 573.647 428.307 2.068 887 Business segments Scheduled Services 474.491 317.474 0 0 Charter services 90.811 72.891 0 0 ACMI Services 8.345 37.942 0 0 Other income 0 0 2.068 887 573.647 428.307 2.068 887 67698000 102845000 0 0 4552000 5512000 0 0 647000 854000 0 0 0 2920000 0 0 72897000 112131000 0 0 3744000 1460000 949000 0 237 342 0 0 69110000 50590000 0 0 25922000 74313000 0 0 95032000 124903000 0 0 5634000 729000 0 729000 0 17727000 0 0 0 398000 0 0 22791000 34828000 713000 31000 7087000 563000 0 0 3513000 319000 0 319000 33391000 35710000 713000 350000 15224000 17474000 286000 227000 6883000 -11710000 0 0 -7017000 -7280000 859000 1384000 15090000 -1516000 1145000 1611000 14314000 24976000 1100627000 -1000 -3000 -4000 0 335000 67913000 0 -703000 -120818000 14313000 24605000 1047718000 10910000 20243000 525865000 -1000 -2000 -3000 0 0 25922000 373000 2174000 68007000 0 -381000 -72346000 11282000 22034000 547445000 3031000 2571000 500273000 0 264000 194402000 53051000 53051000 23000 0 53074000 53051000 119462000 115056000 -2000 -13000 2875000 4419000 122335000 119462000 588000 0 DAT Holding A/S Vamdrup, Denmark 100 DAT A/S Vamdrup, Denmark 100 DAT Leasing A/S Vamdrup, Denmark 100 UAB DAT LT Kaunas, Lithuania 85 UAB KUN Hangar LT Kaunas, Lithuania 100 RSB Asset Trading Limited Nicosia, Cyprus 51 2796000 2796000 0 0 3200000 0 0 0 5996000 2796000 0 0 -2796000 -2577000 0 0 8368000 -219000 0 0 -7139000 0 0 0 -1567000 -2796000 0 0 Nordic Regional Airlines AB Stockholm, Sweden 60 Global Travel Scandinavia ApS Copenhagen, Denmark 50 13469000 51000000 986000 0 14455000 51000000 60848000 56179000 0 0 18840000 0 0 0 Prepayments consist of prepaid expenses concerning rent, insurance premiums, subscriptions and interest. 0 0 2857000 6997000 136000 29000 0 0 2377000 3892000 -482000 -3105000 Provision for deferred tax at 1 January 44.915 56.617 0 0 Amounts recognised in the income statement for the year 6.872 -11.702 0 0 Provision for deferred tax at 31 December 51.787 44.915 0 0 Provision for maintenance 16.584 15.859 0 0 16.584 15.859 0 0 16250000 0 0 0 117463000 151187000 0 0 21750000 18000000 0 0 155463000 169187000 0 0 193584000 0 7674000 12687000 0 0 201258000 214125000 0 0 3500000 7000000 0 0 3500000 7000000 0 0 9007000 9393000 0 0 9007000 9393000 0 0 -5634000 -18854000 33391000 35710000 85874000 128213000 15090000 -1516000 -48000 93000 -23509000 12571000 12993000 -24461000 725000 15860000 8769000 -11953000 -1022000 -7983000 Charges and security The following assets have been placed as security for lease obligations: The company has provided Sydbank with a floating charge providing Sydbank with collateral in the company´s receivables. The floating charge amounts to TDKK 30.000 30.000 0 0 The following assets have been placed as security with bankers: Company charge of nominally TDKK 186.149 provide security in airplanes with a booked value of 322.769 369.164 0 0 Rental and lease obligations Lease obligations under operating leases. Total future lease payments: Within 1 year 8.096 663 0 0 Between 1 and 5 years 6.610 1.601 0 0 14.706 2.264 0 0 Other contingent liabilities DAT A/S has provided DAT Leasing A/S and UAB DAT LT with a full surety in relation to Sydbank. DAT Leasing A/S has provided DAT A/S and UAB DAT LT with a full surety in relation to Sydbank. The group companies are jointly and severally liable for tax on the jointly taxed incomes etc of the Group. The total amount of corporation tax payable by the Group amounts to TDKK 8.620. Moreover, the group companies are jointly and severally liable for Danish withholding taxes by way of dividend tax, tax on royalty payments and tax on unearned income. Any subsequent adjustments of corporation taxes and withholding taxes may increase the Company’s liability. Transactions The Company has chosen only to disclose transactions which have not been made on an arm’s length basis in accordance with section 98(c)(7) of the Danish Financial Statements Act. 294000 286000 10000 10000 212000 56000 14000 10000 70000 87000 10000 10000 The Annual Report of Runway Holding ApS for 2021 has been prepared in accordance with the provisions of the Danish Financial Statements Act applying to large enterprises of reporting class C . The accounting policies applied remain unchanged from last year. The Consolidated and Parent Company Financial Statements for 2021 are presented in TDKK. Revenues are recognised in the income statement as earned. Furthermore, value adjustments of financial assets and liabilities measured at fair value or amortised cost are recognised. Moreover, all expenses incurred to achieve the earnings for the year are recognised in the income statement, including depreciation, amortisation, impairment losses and provisions as well as reversals due to changed accounting estimates of amounts that have previously been recognised in the income statement. Assets are recognised in the balance sheet when it is probable that future economic benefits attributable to the asset will flow to the Company, and the value of the asset can be measured reliably. Liabilities are recognised in the balance sheet when it is probable that future economic benefits will flow out of the Company, and the value of the liability can be measured reliably. Assets and liabilities are initially measured at cost. Subsequently, assets and liabilities are measured as described for each item below. The Consolidated Financial Statements comprise the Parent Company, Runway Holding ApS, and subsidiaries in which the Parent Company directly or indirectly holds more than 50% of the votes or in which the Parent Company, through share ownership or otherwise, exercises control. Enterprises in which the Group holds between 20% and 50% of the votes and exercises significant influence but not control are classified as associates. On consolidation, items of a uniform nature are combined. Elimination is made of intercompany income and expenses, shareholdings, dividends and accounts as well as of realised and unrealised profits and losses on transactions between the consolidated enterprises. The Parent Company’s investments in the consolidated subsidiaries are set off against the Parent Company’s share of the net asset value of subsidiaries stated at the time of consolidation. Business combinations Pooling of interests Intragroup business combinations are accounted for under the pooling-of-interests method. Under this method, the two enterprises are combined at carrying amounts, and no differences are identified. Any consideration which exceeds the carrying amount of the acquired enterprise is recognised directly in equity. The pooling-of-interests method is applied at the date of acquisition, and comparative figures have not been restated. Minority interests form part of the Group’s total equity. Upon distribution of net profit, net profit is broken down on the share attributable to minority interests and the share attributable to the shareholders of the Parent Company. Minority interests are recognised on the basis of a remeasurement of acquired assets and liabilities to fair value at the time of acquisition of subsidiaries. On subsequent changes to minority interests where the Group retains control of the subsidiary, the consideration is recognised directly in equity. Leases in terms of which the Group assumes substantially all the risks and rewards of ownership (finance leases) are recognised in the balance sheet at the lower of the fair value of the leased asset and the net present value of the lease payments computed by applying the interest rate implicit in the lease or an alternative borrowing rate as the discount rate. Assets acquired under finance leases are depreciated and written down for impairment under the same policy as determined for the other fixed assets of the Group. The remaining lease obligation is capitalised and recognised in the balance sheet under debt, and the interest element on the lease payments is charged over the lease term to the income statement. All other leases are considered operating leases. Payments made under operating leases are recognised in the income statement on a straight-line basis over the lease term. Transactions in foreign currencies are translated at the exchange rates at the dates of transaction. Exchange differences arising due to differences between the transaction date rates and the rates at the dates of payment are recognised in financial income and expenses in the income statement. Where foreign exchange transactions are considered hedging of future cash flows, the value adjustments are recognised directly in equity. Receivables, payables and other monetary items in foreign currencies that have not been settled at the balance sheet date are translated at the exchange rates at the balance sheet date. Any differences between the exchange rates at the balance sheet date and the rates at the time when the receivable or the debt arose are recognised in financial income and expenses in the income statement. Fixed assets acquired in foreign currencies are measured at the transaction date rates. Information on business segments and geographical segments based on the Group´s risks and returns and its internal financial reporting system. Business segments are regarded as the primary segments. Expenses for raw materials and consumables comprise the raw materials and consumables consumed to achieve revenue for the year. Other external expenses comprise indirect production costs and expenses for premises, sales and distribution as well as office expenses, etc. Staff expenses comprise wages and salaries as well as payroll expenses. Amortisation, depreciation and impairment losses comprise amortisation, depreciation and impairment of intangible assets and property, plant and equipment. Other operating income and other operating expenses comprise items of a secondary nature to the main activities of the Group, including gains and losses on the sale of property, plant and equipment. The items “Income from investments in subsidiaries” and “Income from investments in associates” in the income statement include the proportionate share of the profit for the year. Financial income and expenses are recognised in the income statement at the amounts relating to the financial year. Tax for the year consists of current tax for the year and changes in deferred tax for the year. The tax attributable to the profit for the year is recognised in the income statement, whereas the tax attributable to equity transactions is recognised directly in equity. The Company is jointly taxed with Danish group companies. The tax effect of the joint taxation is allocated to enterprises in proportion to their taxable incomes. Property, plant and equipment are measured at cost less accumulated depreciation and less any accumulated impairment losses. Cost comprises the cost of acquisition and expenses directly related to the acquisition up until the time when the asset is ready for use. Interest expenses on loans raised directly for financing the construction of property, plant and equipment are recognised in cost over the period of construction. Depreciation based on cost reduced by any residual value is calculated on a straight-line basis over the expected useful lives of the assets, which are: Other buildings 10 - 30 years Plant and machinery 10 - 20 years Other fixtures and fittings, tools and equipment 5 years The fixed assets’ residual values are determined at nil. Depreciation period and residual value are reassessed annually. The carrying amounts of intangible assets and property, plant and equipment are reviewed on an annual basis to determine whether there is any indication of impairment other than that expressed by amortisation and depreciation. If so, the asset is written down to its lower recoverable amount. Investments in subsidiaries and associates are recognised and measured under the equity method. The items“Investments in subsidiaries” and “Investments in associates” in the balance sheet include the proportionate ownership share of the net asset value of the enterprises calculated on the basis of the fair values of identifiable net assets at the time of acquisition. The total net revaluation of investments in subsidiaries and associates is transferred upon distribution of profit to “Reserve for net revaluation under the equity method“ under equity. The reserve is reduced by dividend distributed to the Parent Company and adjusted for other equity movements in the subsidiaries and the associates. Subsidiaries and associates with a negative net asset value are recognised at DKK 0. Any legal or constructive obligation of the Parent Company to cover the negative balance of the enterprise is recognised in provisions. Other fixed asset investments consist of deposits. Inventories are measured at the lower of cost under the FIFO method and net realisable value. The net realisable value of inventories is calculated at the amount expected to be generated by sale of the inventories in the process of normal operations with deduction of selling expenses. The net realisable value is determined allowing for marketability, obsolescence and development in expected selling price. The cost of raw materials and consumables equals landed cost. Receivables are measured in the balance sheet at the lower of amortised cost and net realisable value, which corresponds to nominal value less provisions for bad debts. Prepayments comprise prepaid expenses concerning rent, insurance premiums, subscriptions and interest. Current asset investments, which consist of listed bonds and shares, are measured at their fair values at the balance sheet date. Fair value is determined on the basis of the latest quoted market price. Investments which are not traded in an active market are measured at the lower of cost and recoverable amount. Provisions are recognised when - in consequence of an event occurred before or on the balance sheet date - the Group has a legal or constructive obligation and it is probable that economic benefits must be given up to settle the obligation. Deferred income tax is measured using the balance sheet liability method in respect of temporary differences arising between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes on the basis of the intended use of the asset and settlement of the liability, respectively. Deferred tax assets are measured at the value at which the asset is expected to be realised, either by elimination in tax on future earnings or by set-off against deferred tax liabilities within the same legal tax entity. Deferred tax is measured on the basis of the tax rules and tax rates that will be effective under the legislation at the balance sheet date when the deferred tax is expected to crystallise as current tax. Any changes in deferred tax due to changes to tax rates are recognised in the income statement or in equity if the deferred tax relates to items recognised in equity. Current tax liabilities and receivables are recognised in the balance sheet as the expected taxable income for the year adjusted for tax on taxable incomes for prior years and tax paid on account. Extra payments and repayment under the on-account taxation scheme are recognised in the income statement in financial income and expenses. Loans, such as mortgage loans and loans from credit institutions, are recognised initially at the proceeds received net of transaction expenses incurred. Subsequently, the loans are measured at amortised cost; the difference between the proceeds and the nominal value is recognised as an interest expense in the income statement over the loan period. Mortgage loans are measured at amortised cost, which for cash loans corresponds to the remaining loan. Amortised cost of debenture loans corresponds to the remaining loan calculated as the underlying cash value of the loan at the date of raising the loan adjusted for depreciation of the price adjustment of the loan made over the term of the loan at the date of raising the loan. Other debts are measured at amortised cost, substantially corresponding to nominal value. The cash flow statement shows the Group´s cash flows for the year broken down by operating, investing and financing activities, changes for the year in cash and cash equivalents as well as the Group´s cash and cash equivalents at the beginning and end of the year. Cash flows from operating activities Cash flows from operating activities are calculated as the net profit/loss for the year adjusted for changes in working capital and non-cash operating items such as depreciation, amortisation and impairment losses, and provisions. Working capital comprises current assets less short-term debt excluding items included in cash and cash equivalents. Cash flows from investing activities Cash flows from investing activities comprise cash flows from acquisitions and disposals of intangible assets, property, plant and equipment as well as fixed asset investments. Cash flows from financing activities Cash flows from financing activities comprise cash flows from the raising and repayment of long-term debt as well as payments to and from shareholders. Cash and cash equivalents The cash flow statement cannot be immediately derived from the published financial records. 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Data, used in relation to customers and employees, is sufficiently managed in accordance with GDPR legislation and internal policies for privacy and data security. Given the required management of data, the Group has assessed that a separate policy is not necessary. The Group will evaluate whether a policy is needed on a continuous basis. In 2021, the Group commissioned reports on its data security to test the vulnerability from social engineering attacks as well as for penetration tests to be performed against several of its resources. The tests will conclude in 2022 following which the Group will take recommended actions, if any.