30719883 2023-01-01 2023-12-31 30719883 2023-01-01 2023-12-31 2 30719883 2022-01-01 2022-12-31 30719883 2023-12-31 30719883 2022-12-31 30719883 2022-12-31 fsa:ContributedCapitalMember 30719883 2023-01-01 2023-12-31 fsa:ContributedCapitalMember 30719883 2023-12-31 fsa:ContributedCapitalMember 30719883 2022-12-31 fsa:SharePremiumMember 30719883 2023-01-01 2023-12-31 fsa:SharePremiumMember 30719883 2023-12-31 fsa:SharePremiumMember 30719883 2022-12-31 fsa:ReserveForNetRevaluationAccordingToEquityMethodMember 30719883 2023-01-01 2023-12-31 fsa:ReserveForNetRevaluationAccordingToEquityMethodMember 30719883 2023-12-31 fsa:ReserveForNetRevaluationAccordingToEquityMethodMember 30719883 2022-12-31 fsa:RetainedEarningsMember 30719883 2023-01-01 2023-12-31 fsa:RetainedEarningsMember 30719883 2023-12-31 fsa:RetainedEarningsMember 30719883 2023-01-01 2023-12-31 1 30719883 2023-01-01 2023-12-31 1 30719883 2023-01-01 2023-12-31 2 iso4217:USD Luis Felipe Visoso Lomelin UNITY IPR APS Niels Hemmingsens Gade 24, 1. 1153 Copenhagen K 30719883 Copenhagen Dirch Passers Allé 36 2000 Frederiksberg The Executive Board have today discussed and approved the annual report of Unity IPR ApS for the financial year 01.01.2023 - 31.12.2023.The annual report is prepared in accordance with the Danish Financial Statements Act.In our opinion, the financial statements give a true and fair view of the company's financial position at 31.12.2023 and of the results of the company's operations for the financial year 01.01.2023 - 31.12.2023.We believe that the management commentary contains a fair review of the affairs and conditions referred to therein.We recommend the annual report for adoption at the Annual General Meeting. Copenhagen, Luis Felipe Visoso Lomelin Andrew Bowell To the shareholder of Unity IPR ApS We have audited the financial statements of Unity IPR ApS for the financial year 1 January – 31 December 2023, which comprise income statement, balance sheet, statement of changes in equity, cash flow statement and notes, including accounting policies. The financial statements are prepared in accordance with the Danish Financial Statements Act. In our opinion, the financial statements give a true and fair view of the financial position of the Company at 31 December 2023 and of the results of the Company's operations and cash flows for the financial year 1 January – 31 December 2023 in accordance with the Danish Financial Statements Act. We conducted our audit in accordance with International Standards on Auditing (ISAs) and additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the "Auditor's responsibilities for the audit of the financial statements" section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.Independence We are independent of the Company 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. Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the Danish Financial Statements Act and for such internal control as Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, Management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting in preparing the financial statements unless Management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Our objectives are to obtain reasonable assurance as to whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and additional requirements applicable in Denmark will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements. As part of an audit conducted in accordance with ISAs and 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 internal control. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management. • Conclude on the appropriateness of Management's use of the going concern basis of accounting in preparing the financial statements and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern. • Evaluate the overall presentation, structure and contents of the financial statements, including the note disclosures, and whether the financial statements represent the underlying transactions and events in a manner that gives a true and fair view. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Management is responsible for the Management's review. Our opinion on the financial statements does not cover the Management's review, and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the Management's review and, in doing so, consider whether the Management's review is materially inconsistent with the financial statements or our knowledge obtained during the audit, or otherwise appears to be materially misstated. Moreover, it is our responsibility to consider whether the Management's review provides the information required under the Danish Financial Statements Act. Based on the work we have performed, we conclude that the Management's review is in accordance with the financial statements and has been prepared in accordance with the requirements of the Danish Financial Statement Act. We did not identify any material misstatement of the Management's review. Copenhagen, EY Godkendt Revisionspartnerselskab 30700228 Kennet Hartmann Anders Knudsen State Authorised Public Accountant State Authorised Public Accountant mne40036 mne49064 2023 2022 2021 2020 2019USD'000 USD'000 USD'000 USD'000 USD'000Financial highlightsKey figuresOperating profit/loss 14 -1.066 -1.090 -888 -916 Net financials 58 13 611 -1.419 -947 Profit/loss for the year 148.954 -337.512 -255.791 -116.981 -93.214 Total Assets 619.124 309.146 262.963 87.790 60.275 Equity 617.445 299.591 261.069 -20.925 -66.289 Financial ratiosReturn on equity (%) 32 % (115) % (213) % 268 % 184 %Equity ratio (%) 100 % 84 % 99 % (24) % (110) %The financial ratios are calculated in accordance with description below:Ratios Calculation formula Calculation formula reflectsProfit/loss for the year x 100 The entity's return on capitalReturn on equity (%)Average equity invested by the ownersEquity x 100 The financial strength of the entityEquity ratio (%)Total assetsDevelopment in activities and financesThe Entity has realised a profit of USD 148.954 thousand. The profit is a significant improvement compared to prior years. The primary reason for the improved result, is the changed business model to cost plus for one of the Entity´s subsidiary. The result is line with the revised expectations for 2023.The performance of the Entity is dependent on the performance from the Entity’s subsidiaries. The income from investments in group enterprises are driven by the Research and Development as well as Sales and Marketing support performed.Capital resourcesOn 30th of June 2023 the shareholders made a capital increase by nominally DKK 1,000 by in-kind contribution at a corporate rate of 102.313.400 corresponding to a price per share (of nominally DKK 1.00) of DKK 1.023.134 corresponding to a capital increase of DKK 1.023.134.000 equivalent to USD 150.000.000.The company is dependent on the income from investments in group enterprises. Furthermore, the Entity will continue to receive capital injection to support the Entity’s financial obligations. OutlookThe Entity through its subsidiaries expects to be profitable in 2024 due to the transfer pricing setup. For the financial year 2024, the entity expects a profit before tax in the range of USD 100-300 million.Events after the balance sheet dateUnity has implemented /launched new 2-phase structural organizational Change in the beginning of 2024. First phase focused on resetting the Unity portfolio, and cost structure allowing Unity to refocus on our core business – the Engine and the Cloud Monetization. Primary activitiesUnity IPR ApS is holding company for entities with activity within software technology. Unity builds, markets and sells software tools primarily to video game development companies and Individual game developers. Unity builds and sells game engine software, also called the Unity Editor, which greatly simplifies the process of building mobile game apps as well as console and computer based games. The Unity Editor is sold by both an offline sales team, and through the Online Store at unity3d.com. -109000 971000 109000 -971000 95000 95000 14000 -1066000 148882000 -336459000 146000 28000 88000 15000 148954000 -337512000 148954000 -337512000 118000 213000 118000 213000 617289000 306977000 0 788000 1107000 0 618396000 307765000 618514000 307978000 204000 788000 204000 788000 406000 380000 619124000 309146000 26000 26000 617419000 299565000 617445000 299591000 0 7470000 0 7470000 0 788000 0 788000 1000 1000 1532000 361000 0 788000 146000 147000 1679000 1297000 1679000 2085000 619124000 309146000 26000 0 0 299565000 0 168900000 0 0 168900000 0 0 0 0 0 0 -168900000 0 168900000 0 0 0 0 148954000 26000 0 0 617419000 1 Going concernIn preparing the financial statement, Management is responsible for assessing the Company´s ability to continue as going concern, for disclosing, as applicable, matters related to going concern. It is Managements opinion that the Company is going concern. 2 Events after the balance sheet dateThere are no events after the balance sheet date. 3 Depreciation, amortisation and impairment losses2023 2022USD'000 USD'000Amortisation of intangible assets 95 95 95 95 4 Intangible assetsGoodwillUSD'000Cost beginning of year 1.000 Cost end of year 1.000 Amortisation and impairment losses beginning of year (787) Amortisation for the year (95) Amortisation and impairment losses end of year (882) Carrying amount end of year 118 5 Financial assetsInvestments in group enterprisesUSD'000Cost beginning of year 1.236.078 150.000 Additions 1.386.078 Cost end of year (936.571) Impairment losses beginning of year 14.009 Exchange rate adjustments 135.555 Share of profit/loss for the year 18.218 Other regulations (768.789) Impairment losses end of yearInvestments with negative equity value - provision made — 617.289 Carrying amount end of yearEquity interest Investments in subsidiaries Registered in%Unity Technologies ApS Denmark 100 - Graphine NV Belgium - Unity Technologies Finland OY Finland - Metaverse Technologies France SARL France - Metaverse Technologies Ireland Limited IrelandArtomatix Limited Ireland 100 - Struckd AG Switzerland - Unity Technologies ABD FZ LLC Abu Dhabi - Unity Technologies CZ Czech Republic - You Er Di Technical Consulting Co Ltd. China - You Yi Di Enterprise Management Consulting Co Ltd. China - You Si Di Enterprise Management Limited Partnershp China - You San Di Technology Co Ltd. China - You San Di Technology Co Ltd. Guangzhou Branch China - You San Di Technology Co Ltd. Beijing Branch China - You San Di Software Sales and Marketing Services Co Ltd. China - You San Di Software Sales and Marketing Services Co Ltd. Hong Kong - You San Di Technology Co Ltd. China Vie China - You San Di Technology Shanghai Lingang ChinaUnity Germany Gmbh Germany 100Unity Technologies (BVI) Ltd United Kingdom 100Unity Software Limited United Kingdom 100Unity Technologies LT, UAB Lithuania 100Unity Technologies Canada Company Canada 100Unity Technologies SARLFrance 100Unity Technologies Sweden AB Sweden 100Unity Technologies S.A.S. Colombia 100 6 Income tax receivableNo deferred tax asset has been recognized in the financial statement, due to uncertainty regarding the timeline for future usage. The Entity will assess whether to recognize the tax asset in the coming periods.Prepaid corporate income tax amounts to USD 204 thousand.Corporate income tax receivable for the Danish jointly taxed companies amounted to USD 0 thousand at 31 December 2023 (2022:USD 788 thousand). 7 Other provisions2023 2022USD'000 USD'000Other provisions — 7.470 — 7.470 A provision has been made for group enterprises with negative equity, where the Company has a legal or constructive obligation to cover the liabilities of the group enterprises. 8 Contingent liabilitiesThe Entity is the administration company for Danish jointly, taxed companies. The administration company has unlimited, joint and several liability together with the other jointly taxed companies for all corporate income taxes arising under the join taxation scheme. Corporate income tax receivable for the Danish jointly taxed companies amounted to USD 204 thousand at 31 December 2023 (2022: USD 788 thousand).The Entity has issued a surety towards the subsidiary Unity Technologies ApS. 9 Related partiesParties exercising control over the Company is:- Unity Technologies Singapore Pte. Ltd. registered in Singapore (Parent of Unity IPR ApS- Unity Software Inc. registered in United States of America (Parent of Unity Technologies Singapore Pte. Ltd.)Name and registered office of the Parent preparing consolidated financial statements for the smallest and largest group: Unity Software Inc.,USACopies of the consolidated financial statements of Unity Software Inc may be ordered at the following address:30 3rd St, San Francisco, CA 94103, USAUltimate Parent Unity Software Inc.. has at the date of this financial statement, issued their financial statement for 2023.Other than additions on investments in subsidiaries and capital increases, there are no other material transactions with related parties.Payables to group entities amounts to USD'000 1.532 (2022: USD'000 361).Receivables from group entities amount to USD'000 1.107 (2022: USD'000 0).Transactions with wholly owned subsidiaries are not disclosed referring to section 98 c(3) of the Danish Financial Statements Act. 148954000 -337512000 Reporting classThe annual report has been prepared in accordance with the provisions in the Danish Financial Statements Act applying to medium-sized reporting class C entities.No comparative figures are adjusted following the change in reporting class.The accounting policies used in preparation of the financial statement are otherwise consistent with those of last year. Recognition and measurementAssets are recognised in the balance sheet when it is probable as a result of a prior event that future economic benefits will flow to the Entity, and the value of the asset can be measured reliably. Liabilities are recognised in the balance sheet when the Entity has a legal or constructive obligation as a result of a prior event, and it is probable that future economic benefits will flow out of the Entity, and the value of the liability can be measured reliably. On initial recognition, assets and liabilities are measured at cost. Measurement subsequent to initial recognition is effected as described below for each financial statement item. Anticipated risks and losses that arise before the time of presentation of the annual report and that confirm or invalidate affairs and conditions existing at the balance sheet date are considered at recognition and measurement. Income is recognised in the income statement when earned, whereas costs are recognised by the amounts attributable to this financial year.Foreign currency translationReporting currency is US Dollar (USD'000)The exchange rate between USD and DKK was 6,75 on 31 December 2023 and 6,97 on 31 December 2022.On initial recognition, transactions denominated in foreign currencies are translated at the exchange rate at the transaction date. Foreign exchange differences arising between the exchange rates at the transaction date and the date of payment are recognised in the income statement as financial income or financial expenses.Receivables and payables and other monetary items denominated in foreign currencies are translated at the exchange rate at the balance sheet date. The difference between the exchange rates at the balance sheet date and the date at which the receivables or payable arose or was recognised in the most recent financial statements is recognised in the income statement as financial income or financial expenses.Income statementOther external expensesOther external expenses include expenses relating to ordinary activities, including expenses for premises, stationery and office supplies, marketing costs, etc. This item also includes write downs of receivables recognised in current asset.Depreciation, amortisation and impairment lossesDepreciation, amortisation and impairment losses relating to property, plant and equipment and intangible assets comprise depreciation, amortisation and impairment losses for the financial year, and gains and losses from the sale of intangible assets and property, plant and equipment.Income from investments in group enterprisesThe item “income from investments in group enterprises” in the income statement includes the proportionate share of the profit/loss after tax in the subsidiaries after full elimination of intergroup profit losses and amortisation of goodwill. Other financial expensesOther financial expenses comprise interest expenses, including interest expenses on payables to group enterprises, net capital or exchange losses on securities, payables and transactions in foreign currencies, amortisation of financial liabilities as well as tax surcharge under the Danish Tax Prepayment Scheme etc.Tax on profit/loss for the yearTax for the year, which consists of current tax for the year and changes in deferred tax, is recognised in the income statement by the portion attributable to the profit for the year and recognised directly in equity by the portion attributable to entries directly in equity.Balance sheetGoodwillGoodwill is the positive difference between cost and fair value of assets and liabilities arising from acquisitions. Goodwill is amortised straight-line over its estimated useful life, which is fixed based on the experience gained by Management for each business area. Useful life is determined based on an assessment of whether the amount of goodwill includes intangible resources of a temporary nature that cannot be separated and recognised as separate assets. If the useful life cannot be estimated reliably, it is fixed at 10 years. Useful lives are reassessed annually. The amortisation periods used are 10 years. Goodwill is written down to the lower of recoverable amount and carrying amount. Investments in group enterprisesIn the parent financial statements, investments in group enterprises are recognised and measured according to the equity method. This means that investments are measured at the pro rata share of the enterprises' equity value plus unamortised goodwill and plus or minus unrealised intra-group profits and losses. Investments in group enterprises are written down to the lower of recoverable amount and carrying amount. Group enterprises with negative equity value are measured at USD 0, and any receivables from these entities are written down to the extent that the receivables are deemed irrecoverable. To the extent that the Entity has a legal or construction obligation to cover a negative balance exceeding the receivable, the residual amounts is recognised as provisions. Goodwill is calculated as the difference between cost of the investments and fair value of the pro rata share of assets and liabilities acquired. Goodwill is amortised straight-line over its estimated useful life, which is fixed based on the experience gained by Management for each business area. Useful life is determined based on an assessment of whether the enterprises are strategically acquired enterprises with a strong market position and a long-term earnings profile and whether the amount of goodwill includes intangible resources of a temporary nature that cannot be separated and recognised as separate assets. If the useful life cannot be estimated reliably, it is fixed at 10 years. Useful lives are reassessed annually. The amortisation periods used are 5-10 years. Goodwill is written down to the lower of recoverable amount and carrying amount. ReceivablesReceivables are measured at amortised cost, usually equalling nominal value less write downs for bad and doubtful debts.Income tax payable or receivableCurrent tax payable or receivable is recognised in the balance sheet, stated as tax computed on this year's taxable income, adjusted for prepaid tax.PrepaymentsPrepayments comprise incurred costs relating to subsequent financial years. Prepayments are measured at cost.CashCash comprises bank deposits.EquityNet revaluation reserve according to the equity methodThe net revaluation reserve according to the equity method comprises net revaluations of equity investments in group entities and associates and participating interests compared to cost comprising i.a. recognised shares of profit/loss and foreign exchange adjustments less dividends.The reserve can be eliminated in case of losses, realisation of equity investments or changes in accounting estimates.The reserve cannot be recognised at a negative amount.Proposed dividendProposed dividend is recognised as a liability at the date when it is adopted at the annual general meeting (declaration date). Dividend expected to be distributed for the year is presented as a separate line item in equity.Other provisionsOther provisions comprise provisions for investments in group enterprises. Refer to “Investments in group enterprises”.Other financial liabilitiesOther financial liabilities are measured at amortised cost, which usually corresponds to nominal value.Joint taxation contributions payable or receivableCurrent joint taxation contributions receivable or joint taxation contributions payable are recognised in the balance sheet, calculated as tax computed on the taxable income of the year, which has been adjusted for prepaid tax. For tax losses, joint taxation contributions receivable are only recognised if such losses are expected to be used under the joint taxation arrangement. true Consolidated financial statementsReferring to section 112(2) of the Danish Financial Statements Act, no consolidated financial statements have been prepared. The financial statements of Unity IPR ApS and group entities are included in the consolidated financial statements of Unity Software Inc., USA. Omission of cash-flow statementsWith reference to Section 86(4) of the Danish Financial Statements Act, no cash flow statement is prepared. Annual report Auditor's report on audited financial statements ParsePort XBRL Converter 2023-01-01 2023-12-31 2022-01-01 2022-12-31 2024-07-31 Reporting class C, medium-size enterprise 2007-06-30 2024-07-31 30719883 Unity IPR ApS Niels Hemmingsens Gade 24,1 1153 Copenhagen K Opinion Basis for Opinion 2024-07-31 30700228 EY Godkendt Revisionspartnerselskab Dirch Passers Allé 36 2000 Frederiksberg