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cmn:ConsolidatedMember 31593247 2022-01-01 2022-12-31 cmn:ConsolidatedMember PricewaterhouseCoopers 31593247 2021-01-01 2021-12-31 cmn:ConsolidatedMember PricewaterhouseCoopers 31593247 2022-01-01 2022-12-31 PricewaterhouseCoopers 31593247 2021-01-01 2021-12-31 PricewaterhouseCoopers iso4217:DKK pure Årsrapport 33771231 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab Strandvejen 44 2900 Hellerup 2022-01-01 2021-01-01 2022-12-31 2021-12-31 31593247 Runway Holding ApS Lufthavnsvej 7A 6580 Vamdrup Vamdrup PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab 33771231 Herredsvej 32 7100 Vejle Denmark 79 21 27 00 Underskriv. revisors e-mail anvendes 2023-06-22 Halldor Sigurdarson Regnskabsklasse C, stor virksomhed Revisionspåtegning The Executive Board has today considered and adopted the Consolidated Financial Statements and Parent Company Financial Statements of Runway Holding ApS for the financial year 1 January - 31 December 2022. 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 2022 of the Company and the Group and of the results of the Company and Group operations and of consolidated cash flows for 2022. In our opinion, Management's Review includes a true and fair account of the matters addressed in the Review. We recommend that the Consolidated Financial Statements and Parent Company Financial Statements be adopted at the Annual General Meeting. 2023-06-22 Vamdrup Jesper Rungholm Kirsten Rungholm To the shareholder 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 2022 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 2022 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 2022, 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 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 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 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 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 Management’s Review. Our opinion on the Financial Statements does not cover Management’s Review, and we do not express any form of assurance conclusion thereon. In connection with our audit of the Financial Statements, our responsibility is to read Management’s Review and, in doing so, consider whether Management’s Review is materially inconsistent with the Financial Statements or our knowledge obtained during the audit, or otherwise appears to be materially misstated. Moreover, it is our responsibility to consider whether Management’s Review provides the information required under the Danish Financial Statements Act. Based on the work we have performed, in our view, Management’s Review is in accordance with the 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. Trekantområdet 2023-06-22 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab Jan Bunk Harbo Larsen State Authorised Public Accountant mne30224 Lasse Berg State Authorised Public Accountant mne35811 428307000 1007650000 1071422000 256514000 329181000 333913000 -17075000 -37198000 -34385000 3921000 15303000 1161000 226222000 222507000 207204000 900162000 871888000 952420000 45992000 57705000 175139000 121370000 -4099000 62544000 -17750000 40630000 -50320000 6513000 -38535000 -32907000 342 562 454 23.9 37.0 59.9 32.7 31.2 1.2 7.7 4.5 5.4 3.7 1.0 5.2 2.2 6.2 4.2 26.2 26.8 25.1 25.5 21.8 4.1 1.1 1.7 7.1 0.6 See the description under accounting policies. 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 2022 shows a profit of TDKK 9,673, and at 31 December 2022 the balance sheet of the Group shows positive equity of TDKK 238,412. Management is satisfied with the financial results. The Omicron variant remained present for the first weeks of 2022 which severely impacted the financial performance during the first quarter of the year compared to what had been anticipated. Revenue generated by Scheduled Services suffered the most with passenger numbers below expectations and yield remained low, continuing from late 2021. Likewise, charter operations suffered due to travel guidelines issued and restrictions imposed.Planned Charter activities came to an end in late spring 2022 as intended and from thereon, is no longer a specific part of the Group’s strategic lines of business. The primary reason being the unbalanced and savage EU261/2004 regulation. Traffic figures and yield throughout the scheduled network started to improve from early spring 2022 and continued to build into the late summer and early autumn. Jet production, servicing the European ACMI market, gained momentum from early summer and was essentially at full capacity until the autumn when it severely slowed down. Regional scheduled passenger services were operated in Denmark, Norway, Finland, Germany, and Italy during 2022. Overall, the regional scheduled services performed better than pre-COVID in respect of passenger volume and yield.The Russian invasion into Ukraine had severe negative impacts on our cost levels. The cost of fuel increased sharply and by the middle of 2022, fuel had more than doubled in cost from what it was at the beginning of the year. The Euro also took a beating against the US Dollar shortly after the war broke out and with a good portion of our cash outflows being US Dollar denominated, this also had a negative impact on our bottom-line results. Both Fuel and the Euro did regain some of their respective positions later in the year and leading up to the year-end but due to our seasonality, significant damage had already been incurred in respect of our cost base. This has not only had a serious impact on the 2022 results compared to expectations but with increasing inflation, cost increases within all our business has been unavoidable, resulting in rocketing future cost.Two Airbus aircraft entered the fleet in summer of 2022 and a third one in early 2023. The aircraft replaced the MD aircraft that left the fleet in 2021 and will be in important part in balancing the overall business operations between ACMI and Scheduled Services. The past year and follow-up on development expectations from last year In 2021,the primary expectation, for the financial year of 2022, was that the revenue in the group level would increase by 51%, while the realised revenue in 2022 is approximately 39% higher than 2021. The reason for not being able to completely fulfill the expectations in 2021 is the following. COVID challenges continued into the year 2022 followed by the implications of the barbarous invasion of Ukraine were both costly but after a robust summer performance, the financial results took a drastic turn to the better, only to be knocked back down when struck by the harsh winter that followed. Overall, a marginal positive break-even financial result in 2022 and less than what was expected at the beginning of the year. Despite having just over half of the fuel consumption hedged by beginning of the year then the un-hedged part was one of the main reasons for being short to budget. As intended, the Group exited planned charter services in the spring of 2022 and has since, and into 2023, directed that capacity to the market for ACMI services. Capital resources The Group’s financial performance for 2022 shows a profit before tax of TDKK 7,652 and the equity is as of 31 December 2022 positive with TDKK 236,022.Aside from equity, the Group's operations are largely financed through external credit lines provided by the Group’s bank. Credit lines are granted at the Group level therefore the assessment of adequate liquidity reserves for the coming year has been made at this level.A DKK 18 mill. facility was renewed by one year in May 2022 and a DKK 27.3 mill. facility was renewed in September 2022 for a period of one year. Both facilities have been in place over the past few years but are to be renewed annually. The facilities are expected to be renewed for a further year to 2024 following the filing of the 2022 annual report. Some restructuring of long-term loan facilities took place in August 2022 with additional facilities provided and prolongment of repayment terms on part of the existing loan facilities.As of 03 May 2023, the liquidity is adequate with a short-term headroom totaling approximately DKK 83 mill. A 12-month (to spring 2024) liquidity forecast has been prepared. At the end of the forecast period, it shows a headroom of DKK 99 mill. under an estimated working scenario. Management is of the view its estimated scenario is reasonable.Based on this, it is management's assessment that the Group has the required capital and liquidity resources to carry through the plans for the financial year 2023. The Annual Report is therefore presented on the assumption of continued operations. Foreign exchange risks A large portion of the Group's income, expenses, and external financing is settled in foreign currencies which exposes profits to currency fluctuations. It is Group policy not to partake in speculative currency positions. Targets and expectations for the year ahead It is anticipated for the year 2023 to yield a profit before tax of approximately DKK 11 mill. The continued geopolitical situation in Europe and the war in Ukraine can have unforeseen implications. Cost across all aspects of the business is still uncapped and thus challenging to predict. Nevertheless, it is Management’s view that its expectations are achievable. 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. Furthermore, the Group has exited its services of planned charter services.DAT A/S and UAB DAT LT are in the aviation industry which impacts the climate with CO2 emissions. It has been estimated that the aviation industry is responsible for about 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.The environmental and climate impact is being addressed by evaluating the introduction of more fuel efficient engines. There were no noise violations were reported in 2022. Uncertainty relating to recognition and measurement The assessments of indications of impairment per 31 December 2022 is based on the future cash flows expected by management per 31 December 2022, which due to external uncontrollable impacts, such as the war in Ukraine, may differ from the expectations for future cash flows that management has at the time of approval of the Annual Report. Hence, after the balance sheet date there is uncertainty in recognizing and measuring the Group’s investments in airplanes and associated spare parts. 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). Ad-hoc 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. Some ACMI 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 the Group’s activities the operations have an environmental impact. Environmental and climate aspects have been incorporated into the business through operational procedures and strategic focus on addressing CO2 emissions. Fuel consumption is monitored and thereby carbon footprint. In 2022 we reduced our fuel carbon consumption to a similar amount the year prior the pandemic’s out-break in early 2020 with the 2022 consumption being at 51% of what it was in 2019 (including flights operating under the Group’s call signs). This is attributed mainly to our withdrawal from operating planned charter series. The Group is working on a fleet renewal plan with the aim of replacing aircraft with those more fuel efficient. The Airbus fleet was expanded in 2022 as a replacement for the Group’s more fuel-intensive MD aircraft that were disposed of in 2021. Crew are trained to minimize fuel usage throughout our operations while maintaining full compliance with aviation regulations, for both environmental and cost optimization. In 2020 DAT A/S announced its intention to join the Air Transport Climate Fund (i.e. Luftfartens Klimafond), whose intentions were to facilitate the industry’s green transition and contribute to Denmark’s climate goals. This fund has since been discontinued due to a change in focus within the Danish government. 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.There are defined social and employment conditions within the Group to ensure a productive and safe environment. There are regular activities to promote the physical and psychological environments as well as employees’ welfare. 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, random testing for psychoactive substances, a peer support program for flight crew, and the requirements regarding continuous health checks for its flight crew.We have regular evaluations of the Group’s alcohol and smoking policies, as well as a triennial evaluation among all staff of 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 working environment is evaluated through several initiatives, both formal and informal. Formal initiatives include: Working Environmental Committee, Safety Action Groups, and Safety Review Board meetings. 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 of the following employee groups: flight crew, mechanics, and administrative staff. The triannual assessment is not done in the same year for all employee groups. The operational environment is regularly evaluated through quarterly and biannual Safety Action Groups (i.e. Peer Support, Fatigue, and Flight and Airworthiness). Issues are brought forward to mid-management from both anonymous and identifiable front-line personnel reports through the Safety Management System. Finally, biannual Safety Review Board meetings address matters that require upper management involvement, most often raised from Safety Action Group meetings. Finally, ad-hoc informal meetings are held with front-line personnel to address either timely or less pressing matters. An example of a formal initiative implemented in 2022 include improving accommodation providers in a training location for flight crew and an informal initiative include liaising with flight crew regarding a route’s timetable to align commercial and operational aspects. 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’s handbooks are readily available and ensure that all colleagues can quickly find information regarding the Group’s policies and other relevant information.The current business environment is not conducive to corruption risks and therefore no anti-corruption policy has been put in place. 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.The Group does not have a formal policy concerning human rights. Such a policy is not in place as 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. DAT Holding A/S, DAT Leasing A/S, and DAT A/S have the same board of directors. In 2022, 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 there are 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 and 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. The Group does not apply advanced technologies, such as Artificial Intelligence 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 concluded in 2022 and will be followed up on in 2023. 795896000 573647000 1772000 2068000 25764000 117092000 0 0 544417000 412804000 0 0 86855000 65875000 542000 709000 190388000 212060000 1230000 1359000 116854000 72897000 0 0 64002000 95032000 0 0 9532000 44131000 1230000 1359000 0 0 7300000 2874000 -1229000 1229000 0 0 27527000 5634000 349000 0 28178000 33391000 541000 713000 7652000 17603000 8338000 3520000 -2021000 15090000 306000 1145000 9673000 2513000 8032000 2375000 0 0 7300000 2857000 1641000 136000 0 0 8032000 2377000 732000 -482000 27309000 3031000 0 0 3572000 2571000 0 0 561621000 500273000 0 0 592502000 505875000 0 0 63079000 44864000 0 0 61581000 41317000 0 0 297819000 327491000 49745000 36148000 910209000 852250000 283526000 263145000 0 0 182781000 175997000 0 4429000 0 0 0 0 51000000 51000000 19888000 14455000 0 0 19888000 18884000 233781000 226997000 612390000 524759000 233781000 226997000 80034000 79688000 0 0 0 0 41863000 33014000 0 591000 0 0 0 0 4812000 0 8296000 5665000 0 0 132956000 92437000 46675000 33014000 36000 14000 16000 0 84793000 155352000 3054000 3134000 127000 127000 127000 127000 0 0 129635000 122335000 -16000 -16000 -16000 -16000 43975000 52378000 0 0 7130000 16584000 0 0 51105000 68962000 0 0 16375000 0 0 0 119148000 137374000 0 0 218568000 193584000 0 0 0 3500000 0 0 8288000 9007000 0 0 362379000 343465000 0 0 44329000 30937000 0 0 14672000 7674000 0 0 12344000 8912000 0 0 0 0 39149000 29860000 4025000 3983000 3983000 3983000 4948000 9195000 4328000 1274000 0 2060000 0 0 127000 127112 127000 127000 235911000 227879000 106276000 105544000 2390000 747000 0 0 238412000 228737000 236022000 227990000 69785000 56108000 0 0 108210000 92217000 44000 38000 258313000 211086000 47504000 35155000 620692000 554551000 47504000 35155000 910209000 852250000 283526000 263145000 127000 -16000 227879000 747000 127000 122335000 -16000 105544000 0 0 0 2000 0 0 8032000 1641000 0 7300000 0 732000 127000 -16000 235911000 2390000 127000 129635000 -16000 106276000 9673000 2513000 44270000 128673000 -19868000 -1022000 34075000 130164000 27521000 5634000 27941000 33389000 33655000 102409000 10038000 7599000 23617000 94810000 131037000 84282000 2233000 5417000 0 75438000 -133270000 -14261000 -16145000 0 4834000 31383000 -31982000 12867000 4177000 3886000 39116000 -48136000 -70537000 32413000 155366000 122953000 84793000 155352000 36000 14000 84829000 155366000 0 0 The Group’s financial performance for 2022 shows a profit before tax of TDKK 7,652 and the equity is as of 31 December 2022 positive of TDKK 236,022.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 76 mill as of year-end 2022. Thereof, DKK 45 mill is in form of two revolving facilities with annual extensions in early summer and late summer each year. One was extended in April 2022 and is expected to be renewed following the filing of the annual report in June 2023 for a period of one year. The other was extended for one year in September 2022 and is anticipated to be renewed in September this year for a period of a further one year.The current credit facilities are assessed to provide sufficient liquidity to secure the Groups operations in the years to come. The credit facilities are classified as non-current debt in the balance sheet.For 2023, the Groups budget is based on an increase in revenues of around 9% compared to 2022. Compared to prior Covid-19 (2019) a decrease of around 9% is budgeted which is not Covid-19 related but due to the Group shifting from its then planned charter activities to wet lease activities. The Group’s production has recovered from Covid-19 implications. The budget for 2023 is based on reasonable assumptions for securing additional winter production from the winter beforeAs of 08 May 2023, the liquidity is adequate with a short-term headroom totalling around DKK 61 mill. Being cautiously optimistic, the long-term liquidity forecast (12 months) shows a headroom of DKK 83 mill under the budgeted scenario. Management view is that the budgeted scenario is reasonable. This includes scheduled instalments on loans of around DKK 53 mill during 2023 and new facilities of around DKK 24 mill.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 2023. 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 795896000 573647000 1772000 2068000 0 0 0 0 0 0 0 0 795896000 573647000 1772000 2068000 Business segments Scheduled Services 599647000 474491000 0 0 Charter services 58898000 90811000 0 0 ACMI Services 137351000 8345000 0 0 Other income 0 0 1772000 2068000 0 0 0 0 0 0 0 0 795896000 573647000 1772000 2068000 Profit on sale of fixed assets and inventory items 19593000 9463000 COVID-19 Support 5584000 107629000 Subsidy 587000 0 Other income 0 0 108529000 67698000 0 0 7558000 4552000 0 0 767000 647000 0 0 116854000 72897000 0 0 330 237 0 0 62421000 69110000 0 0 1581000 25922000 0 0 0 0 349000 0 22063000 5634000 0 0 5464000 0 0 0 24589000 22791000 541000 713000 3589000 7087000 0 0 0 3513000 0 0 28178000 33391000 541000 713000 5792000 15224000 306000 286000 -7813000 6883000 0 0 0 -7017000 0 859000 -2021000 15090000 306000 1145000 14313000 24605000 1047718000 25284000 2204000 130703000 0 -183000 -7551000 39597000 26626000 1170870000 11282000 22034000 547445000 0 10000 0 0 0 1581000 1006000 1192000 60223000 0 -182000 0 12288000 23054000 609249000 0 0 219981000 27309000 3572000 561621000 53074000 53051000 40000 23000 53114000 53074000 122335000 119462000 0 -2000 7300000 2875000 129635000 122335000 32000 588000 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 5996000 2796000 0 0 0 3200000 0 0 -3200000 0 0 0 2796000 5996000 0 0 -1567000 -2796000 0 0 -4016000 8368000 0 0 2787000 -7139000 0 0 -2796000 -1567000 0 0 Nordic Regional Airlines AB Stockholm, Sweden 60 51000000 14455000 5433000 51000000 19888000 69550000 60848000 0 0 10484000 18840000 0 0 Prepayments consist of prepaid expenses concerning rent, insurance premiums, subscriptions and interest. Deferred tax liabilities at 1 January 51,787,000 44,915,000 Amounts recognised in the income statement for the year -7,812,000 6,872,000 Deferred tax liabilities at 31 December 43,975,000 51,787,000 Provision for maintenance 7130 16584 7130 16584 0 0 0 0 0 0 16375000 0 0 0 0 0 0 0 16375000 0 0 0 13105000 16250000 0 0 106043000 121124000 0 0 5000000 3750000 0 0 124148000 141124000 0 0 0 0 0 0 218568000 193584000 0 0 14672000 7674000 0 0 233240000 201258000 0 0 0 0 0 0 0 3500000 0 0 42000 0 0 0 42000 3500000 0 0 0 0 0 0 8288000 9007000 0 0 Payments due within 1 year are recognised in short-term debt. Other debt is recognised in long-term debt. The debt falls due for payment as specified below: -27527000 -5634000 28178000 33391000 44409000 85874000 1229000 -1229000 -2021000 15090000 0 1181000 -346000 -23509000 -41110000 12993000 -9454000 725000 31042000 8769000 Charges and security Land and buildings with a carrying amount of 2,952,000 0 0 The following assets have been placed as security with bankers: Company charge of nominally TDKK 191,635 provide security in airplanes with a booked value of 579,236,000 322,769,000 0 0 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 30,000,000 30,000,000 0 0 Rental and lease obligations Lease obligations under operating leases. Total future lease payments: Within 1 year 19,043,000 8,096,000 0 0 Between 1 and 5 years 68,970,000 6,610,000 0 0 After 5 years 89,941,000 0 0 177,954,000 14,706,000 0 0 Other contingent liabilities DAT A/S has provided DAT Leasing A/S with a full surety in relation to Sydbank. DAT Leasing A/S has provided DAT A/S with a full surety in relation to Sydbank. The Danish 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 DKK 4,947,801. Moreover, the Danish 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 Group’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. 776000 294000 15000 10000 222000 212000 22000 14000 163000 70000 17000 10000 The Annual Report of Runway Holding ApS for 2022 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 Financial Statements and the Parent Company Financial Statements for 2022 are presented in TDKK. 1 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. Basis of consolidation 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. Minority interests 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 acquistition of subsidiaries. On subsequent changes to minority interests where the Group retains control of the subsidiary, the consideration is recognised directly in equity. 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. 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. Revenue from the sale of goods is recognised when the risks and rewards relating to the goods sold have been transferred to the purchaser, the revenue can be measured reliably and it is probable that the economic benefits relating to the sale will flow to the Group. Revenue is measured at the consideration received and is recognised exclusive of VAT and net of discounts relating to sales. Expenses for raw materials and consumables comprise the raw materials and consumables consumed to achieve the consolidated revenue for the year. Other external expenses comprise indirect production costs and expenses for premises, sales as well as office expenses, etc. Staff expenses comprise wages and salaries as well as payroll expenses. Amortisation, depreciation and impairment losses comprise depreciation and impairment of 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 . The tax effect of the joint taxation is allocated to Danish 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 contracted directly for financing the construction of property, plant and equipment are recognised in cost over the construction period. 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 Plant and machinery 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 property, plant and equipment and investments are reviewed on an annual basis to determine whether there is any indication of impairment other than that expressed by 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 with deduction or addition of unrealised intercompany profits or losses and with addition of the remaining value of any increases in value and goodwill calculated at the time of acquisition of the enterprises. 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 and costs of completion. 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, including the tax base of tax loss carry-forwards, 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 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 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 comprise cash flows from the raising and repayment of long-term debt as well as payments to and from shareholders. Cash and cash equivalents comprise ”Cash at bank and in hand” and ”Current asset investments”. ”Current asset investments” consist of short-term securities with an insignificant risk of value changes that can readily be turned into cash. The cash flow statement cannot be immediately derived from the published financial records. Gross margin Gross profit x 100 / Revenue Profit margin Profit before financials x 100 / Revenue Return on assets Profit before financials x 100 / Total assets at year end Solvency ratio Equity at year end x 100 / Total assets at year end Return on equity Net profit for the year x 100 / Average equity