Årsrapport33771231PricewaterhouseCoopers Statsautoriseret RevisionspartnerselskabStrandvejen 442900 Hellerup2021-01-012020-01-012021-12-312020-12-3128659024Link Logistics A/SVallensbækvej51 - 532605Brøndby2006-04-01Brøndby32488888www.linklog.dkPricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab33771231Strandvejen442900HellerupDanmark2022-05-19Charlotte Gaarn HanssonRegnskabsklasse C, mellemstor virksomhedRevisionspåtegningThe Executive Board and Board of Directors have today considered and adopted the Annual Report of Link Logistics A/S for the financial year 1 January - 31 December 2021.The Annual Report is prepared in accordance with the Danish Financial Statements Act.In our opinion the Financial Statements give a true and fair view of the financial position at 31 December 2021 of the Company and of the results of the Company operations for 2021.In our opinion, Management's Review includes a true and fair account of the matters addressed in the Review.We recommend that the Annual Report be adopted at the Annual General Meeting.Brøndby2022-03-07Anders Martin MartensCEOMads Koch JensenExecutive OfficerCharlotte Gaarn HanssonChairmanHenrik BonnerupMads Koch JensenTo the Shareholder of Link Logistics A/SOpinionIn our opinion, the Financial Statements give a true and fair view of the financial position of the Company at 31 December 2021 and of the results of the Company’s operations for the financial year 1 January - 31 December 2021 in accordance with the Danish Financial Statements Act. We have audited the Financial Statements of Link Logistics A/S for the financial year 1 January - 31 December 2021, which comprise income statement, balance sheet, statement of changes in equity and notes, including a summary of significant accounting policies (”the Financial Statements”). Basis for OpinionWe 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 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. 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 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 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 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 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 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. Hellerup2022-03-07Hellerup2022-03-07PricewaterhouseCoopers Statsautoriseret RevisionspartnerselskabMartin LundenState authorised public accountantmne32209Steffen Kaj PedersenState authorised public accountantmne34357Seen over a five-year period, the development of the Company is described by the following financial highlights: In 2021, Link Logistics A/S have merged with YOYO Global Freight ApS and YOYO Holding ApS. Please note that the financial figures for 2020 and earlier have not been restated.In 2021, Link Logistics A/S have merged with YOYO Global Freight ApS and YOYO Holding ApS. Please note that the financial figures for 2020 and earlier have not been restated. 4159900056907000501650001084100015046000136550001100100056000-28000178000164000842600011898000107940006387600065566000677720002120700023299000224340001743000365000001229000-118800078736823231722.920.130.329.733.235.533.11086437.95250.6Key activities The purpose of the company is to carry on transport and freight business as well as any related business, including express and courier shipments. Services and main activities Link Logistics is one of the largest independent transport providers in the Nordics within Courier and Freight Forwarding related transport, offering digital one-stop shopping to premium High-end Industrial and e-commerce customers across all main sectors. Link Logistics vison is to eliminate barriers within the logistic networks. Our passion is to offer BtB and BtC customers tailor-made transport solutions structured around the best global setup and the company is represented in Denmark, Norway, Sweden and in USA. The business model is founded on long term customer relations characterized by high loyalty and very low churn rates. Our +1.500 customers are supported by almost 200 dedicated employees, all strive to deliver 5-star performance every day. In 2021 Link Logistics acquired YOYO Global Freight, adding new employees, customers, products, locations and countries to the business. The acquisition was in all material aspects based upon a commercial business case where the combination of Links superior knowledge within the Courier segment and YOYO’s corresponding within Freight Forwarding constitute a strong market leading selection to the +1.500 customers. 2021 has shown a significant growth within all segments of the business. The growth has materialized both in the e-commerce segment – a segment where Link Logistics offer our customers a unique and market leading transport platform as well as in the Freight Forwarding segment. Despite COVID-19 effects, Link Logistics show total growth rates in 2021 above 40% in revenue and 70% in EBITDA excl. non-recurring items. Link Logistics operates under own brand and is represented in Denmark by five offices and sorting terminals respectively in Brøndby, Odense, Fredericia, Aarhus and Ålborg. In Sweden Link Logistics operates from two terminals in Gothenburg and Stockholm and in Norway the operation is run from offices in Oslo and Stavanger. Finally in the US, Link Logistics operates from New Jersey. Link Logistics is owned by Polaris Partner Equity (member of “Aktive Ejere” formerly known as DVCA) Development in the year The income statement of the Company for 2021 shows a profit of DKK 43,566,325, and at 31 December 2021 the balance sheet of the Company shows equity of DKK 55,539,635. The annual report of 2021 is highly influenced by the acquisition of YOYO Global Freight, which almost doubled Links revenue, employees and activities. Link Logistics now employs almost 200 FTE’s based in our facilities in Denmark, Sweden, Norway and USA. The acquisition was subject to closing 12th August 2021, and by year end the entities in Denmark - Link Logistics A/S, Yoyo Holding ApS and Yoyo Global Freight ApS were merged into Link Logistics A/S. The acquisition has taken place retroactively with effect from 1 January 2021. The board of Link Logistics will continue to manage the new joint company. Strong efforts and project management has been in place during the second part of 2021 to ensure a fast integration of Link Logistics and YOYO in all countries and the first major milestone in the integration has been reached – including rebranding to Link Logistics, legal integration as well as commercial integration of the 2 organizations. Further growth efforts through acquisitions and new markets have been put on hold until 2022 to ensure full focus on the integration of Link and YOYO. During 2021 the global COVID-19 pandemic has impacted Link Logistics. We have seen a decline in the revenue and volumes from industrial customers, while the e-commerce segment has compensated the decline and further growth resulting in record revenue and bottom line for the year. Targets and expectations for the year ahead In 2022 the expected group EBITDA exclusive non-recurring items is 70 MDKK. This is in increase compared to 2021 at 13%. Revenue is considered to increase with 16% total although some uncertainties relating to development in prices affects the market situation. Board of Directors The board of directors are: Board, Senior Management and key employees are included in a share program. Market Outlook In 2022 we expect to see strong growth from our 2 main customer segments – high end industrial as well as eCommerce customers. We expect significant growth within both the courier and Freight Forwarding segments across all markets, with strongest growth rates in Sweden and the US. To strengthen our product offering we will expand the eCommerce offering to Sweden and US with dedicated ecommerce facilities in both countries, creating same offering as seen in Denmark. To further strengthen the integration of Link and YOYO, additional integration activities will continue during 2022 focusing on IT development and commercial offerings. Our efforts within sustainability will continue in 2022 integrated in our business model with several measures including a strong focus on climate change and working towards creating the optimal transport mix based on lowest possible CO2 emission. Groth into new markets The Merger of Link Logistics and YOYO has strengthened the foundation for growth into new markets and territories. During 2022 focus will be on strengthening the presence in Sweden, through expanding our activities in Stockholm, and in US by adding new areas to our business such as Miami and Chicago. In addition to the organic growth on existing markets, we will also investigate possibilities for further acquisitions in existing and new markets. To document and keep all learnings and best practice for future expansion, Link in a Box has been developed. This is a manual describing how to open a new Link terminal – from market selection, location selection and day to day management of a new Link facility. This will be supported by the integration play book based on the experiences form the YOYO acquisition. Risk management The company monitors and manages the risks that the business is exposed towards. Managing the identified risks will either reduce the likelihood of financial impact or occurrence and make the company able to react in time to protect our people, assets, reputation, and clients. Risk Governance The Board of Directors and the executive management work closely together on the overall risk management of the company. Executive Management functions as the prime driver of risk identification and mitigation as well as responsible for design and maintenance of risk management systems. The Board of Directors review and approve the company’s overall risk situation including mitigations as presented by the executive management. Risk Management Procedure The company applies a structured approach to risk management, organized according to the following four elements: 1) Identification and initial reporting – Executive Management receives input through the monthly reports from the most significant business areas. 2) Analysis and assessment – Identified risks are recorded in a work register and assessed in terms of likelihood of occurrence and potential financial impact. 3) Risk review and mitigation – Key risks are selected for further review and design of mitigating actions. These include avoidance, transfer, reduction or acceptance. 4) Risk reporting – Key risks and mitigating actions are reported to the Board of Directors and are reviewed and discussed at Board Meetings. Market risks As stated under the Market Outlook section above, the Company has shown strong resilience and robustness during a challenging COVID-19 pandemic. While Management considers the Company to be downside protected in many ways, the Company is, however, not invulnerable to recessions. Should the economies of its core markets experience have accelerated negative economic growth, the financial results of the Company are potentially affected. Foreign exchange risks The Company is exposed to currency fluctuations, mainly from USD, SEK, NOK, and EUR, but in all material aspects most transactions is handled in local currency i.e., DKK in Denmark and SEK in Sweden. Credit risks The Group has a solvency ratio at 32% and the credit risk is considered low. The Group has external debt of DKK 249 mio. The amended terms and conditions, to this debt, includes financial covenants. The covenants are tested quarterly, based upon rolling 12 months results. Employee risks Having the right competencies with adequate experience is vital. Therefore, it is important that the Company continues to attract, retain and develop skilled employees. Failure to do so has the potential to negatively impact the expected development of the Company. Supplier risks The Company relies on suppliers to deliver both transport and related services. Shortage on subcontractor capacity due to either market factors or political developments may affect the Company’s ability to service its customers. The Company keeps close contact with critical suppliers and ensures an adequate standardization of the supply-chain to ensure contingencies in case of individual subcontractor’s inability to deliver. IT and cybersecurity risks As the company becomes increasingly digitalized and globalized, more devices and control systems are connected online. Breach of the company’s IT-security or internal controls could cause disruption of the company’s services, non-compliance with applicable laws and legislation or cause adverse effects on the company’s reputation. Improving and strengthening cyber security is a key priority for the company. Monitoring of controls and continuous update of systems alleviates the risk and impact of security breaches. The company only contracts with well renowned service providers to guarantee a secure IT platform, and yearly external IT reviews are conducted. Statement of corporate social responsibility Governance Intellectual capital resources At Link Logistics we are constantly focusing on attracting and retaining the best knowledge resources in the market for the core business of delivering express and courier related transport and logistics as well as for the Freight Forwarding business. Despite the fierce competition on knowledge resources as well as the current limited supply in the overall workforce, the Company is experiencing a continually increasing volume of applicants with the needed competencies. Internally, the common IT platform and standardized processes ensure that the Company employees’ knowledge is shared and documented. The Company’s vulnerability related to individual knowledge of employees is therefore limited. Research and development At Link Logistics we are constantly focusing on attracting and retaining the best knowledge resources in the market for the core business of delivering express and courier related transport and logistics as well as for the Freight Forwarding business. Despite the fierce competition on knowledge resources as well as the current limited supply in the overall workforce, the Company is experiencing a continually increasing volume of applicants with the needed competencies. Internally, the common IT platform and standardized processes ensure that the Company employees’ knowledge is shared and documented. The Company’s vulnerability related to individual knowledge of employees is therefore limited. Unusual events There have been no unusual circumstances which should be referred to in relation to the accounts or the Annual Report for 2021. Subsequent events In early March, the management discussed the recent outbreak of war in Ukraine. It is the management's assessment that the current situation does not directly affect the company, as neither Russia nor Ukraine are significant markets for the company. However, a major global macroeconomic crisis will have an effect on both revenue and earnings, but at the present time of the conflict it is difficult to assess the extent of this. No other significant events have occurred after the balance sheet date that are assessed to have a material effect on the company's activities.During 2021 Link Logistics has increased its sustainability focus, building on the framework created in 2020. As a part of the transport sector, we recognize our responsibility, and our ambition is to address and act on current global challenges. We have based our responsible business conduct on managing potential and actual adverse impacts on the internationally agreed core areas of sustainable development: social, environmental, and economic sustainability. Managing our impact through the integration process 2021 was an exciting year for Link in general. In August, we officially signed the papers, including YOYO Global Freight as part of Link Logistics. Both the months before and especially after the signing have focused on making the merger a success across all locations and departments. This has been an incredibly resource-demanding process, forcing the entire business to run faster. As YOYO did not have a sustainability strategy or fundament, a lot of work has been put into including the YOYO business in Link's sustainability strategy, work, and calculations. With the merger, we have added several countries to our portfolio, and the work to understand and manage our impact across all countries will continue in 2022. Past, present, and future focus - creating our first sustainability strategy, organizing our ESG work, and increasing our efforts. In 2020 the primary focus for Link was to create a solid foundation to build our sustainability efforts on. This included conducting our first impact assessment, performing a TCFD aligned Climate-Related Risks & Opportunity Assessment, and linking our efforts and commitment to supporting the UN's work to achieve the 17 Sustainable Development Goals (SDGs), with a primary focus on SDG 5, 8, 9 and 13. In 2021 we initiated the groundwork of how to manage our impact. In August, the board agreed on incorporating sustainability as part of our strategic ambition, thus committing to having a greater focus on sustainability and the SDGs moving forward. Being pioneers is one of our core values, and we aim to be one of the sustainable pioneers in our sector. We recognize that Rome was not built in one day, neither is a sustainable business. Therefore, we focused on organizing our efforts identifying and scoping initiatives and projects for both a short-term and long-term strategy. These efforts include initiating projects to create transparency and reduce emissions throughout our operations and transport: In 2021, we decided to set targets to reduce our CO2 emissions by committing to setting Science-Based Targets and aligning ourselves with the Science-Based Target initiative. We are currently in the process of having our targets for scopes 1 and 2 approved by the SBTi. We have not yet set targets for scope 3 but will do so in the coming year and publish them in the 2022 report. To ensure that our present and future efforts align with Link's overall strategic ambition and focus on managing the identified risks, a sustainability strategy for 2022 was created and approved by the board. Through this strategy, we have identified and scoped the projects for 2022 and divided them into 5 key areas - Governance, Climate Actions, Impact Assessments, Customer Value Adds, and Internal Support projects. Our sustainability strategy aims to ensure that we initiate the right initiatives and transform the organization from the inside out. Supported by innovative and frontrunner projects, we need to create a company culture and identity base that nurtures a sustainable way of working. As the Company is part of the Polaris Sustainability Report, please revert to the latest report, where all of the actions and KPI’s within CSR are outlined and further described. The report can be found on both Link Logistics and Polaris homepage.12122374159619190735025623686204255647363264029421564431949311910246209544184136679343201612089531210531573561954929495910314710950435663251483834418537011517218688104574445778734746896179537210763419658201260814961305733684491578815991949606566532448631405435192368127471100337052422134868311589344645511726175619683879437364978780652035827108125359813431988647554031150509681586345514937085463417486183076096847661695000000400000050000004000000379881002174082561516832500000015000000555396352515168313362052034428285000017500004186205378442819598662466306195986624663065065944992469415049137105450864225572684713636581053911301391535684905851213903905336375212335025655830058183076096847661694000000061516831500000010000001806225259589495000000-15500000-2654597508724900-484821190533616660989250000005000000379881021740825250000006792776335016020435341912959181221380550104735025623686204225930102523922259301025239221448232145251893687235021112856825564736326402918983901176954432011154400496649531210612089531210102485814352920-658672-145432112250346295910314710950237062728360303313559402800012254200390960632388303853409209157261742025620831185076202944920559052550725818537016881045130682832337235333500605443791364384-16550001678216837016199648625841105207560701502360847906-16550001306109216890113721076201260819031640940484093980544559374029289256786-47000000121931399404840-3339175-408040617104610-414597508724919704710363284544184-27438002412810-84393503798810-3339175Linklog ABSweden1006346942550898Link Logistics Inc.USA1007478832174YOYO Global Freight Sweden ABSweden10038952733227083YOYO Global Freight Norway ASNorway1002535191917613YOYO Global Freight US IncUSA10031397553155672YOYO Property ApSDenmark00650199YOYO Property 2 ApSDenmark001829645140543516892241502043244863Prepayments consist of prepaid expenses concerning rent, insurance premiums, subscriptions and interest.265459750250000001500000019053360-9884986-161656Provision for deferred tax at 1 January 2,034,428 2,179,860 Amounts recognised in the income statement for the year -658,672 -145,432 Net effect from merger and acquisition (residual) -39,551 0 Provision for deferred tax at 31 December 1,336,205 2,034,428 Intangible assets 1,217,961 1,971,595 Tangible assets 305,281 511,099 Prepayments 181,964 275,792 Trade receivables -194,644 -71,637 Lease obligations -174,357 -652,421 1,336,205 2,034,428 Deferred tax has been provided at 22% corresponding to the expected current tax rate. Provision for restoration obligation on leases 2,850,000 1,750,000 2,850,000 1,750,000 Charges and security The company has provided guarantee to the Parent company's bank. Contingent assets Rent- and lease obligations Rental- and lease obligations, period of notice 18,619,547 6,963,177 The company has provided a bank guarantee to a landlord to guarantee the fulfillment of its obligations, cf. a lease contract of DKK 333,200. Other contingent liabilities 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 is disclosed in the Annual Report of P-Link 2019 A/S, which is the management company of the joint taxation purposes. 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.Basis 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. Link Logistics A/S is included in the Consolidated Financial Statements for: Name Place of registered office P-Link 2019 A/S (største koncern udelad hvis samme som mindste) Malmøgade 3 2100 København Ø Link Top Holding A/S (mindste koncern) Vallensbækvej 51 2605 BrøndbyThe Annual Report of Link Logistics A/S for 2021 has been prepared in accordance with the provisions of the Danish Financial Statements Act applying to medium-sized enterprises of reporting class C. With regards to the true and fair view of the financial statements, certain reclassifications have been made in the balance sheet and notes. Comparative figures have been adjusted accordingly. The accounting policies applied remain unchanged from last year. The Financial Statements for 2021 are presented in DKK.With reference to section 112 of the Danish Financial Statements Act and to the consolidated financial statements of Link Top Holding A/S, the Company has not prepared consolidated financial statements.With reference to section 86(4) of the Danish Financial Statements Act and to the cash flow statement included in the consolidated financial statements of Link Top Holding A/S, the Company has not prepared a cash flow statement.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. Certain financial assets and liabilities are measured at amortised cost, which involves the recognition of a constant effective interest rate over the maturity period. Amortised cost is calculated as original cost less any repayments and with addition/deduction of the cumulative amortisation of any difference between cost and the nominal amount. In this way, capital losses and gains are allocated over the maturity period. Recognition and measurement take into account predictable losses and risks occurring before the presentation of the Annual Report which confirm or invalidate affairs and conditions existing at the balance sheet date.Business combinations Uniting of interests Intragroup business combinations are accounted for under the uniting-of-interests method. Under this method, the 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 uniting-of-interests method is applied at the date of the acqusition, and comparative figures have not been restated.Leases in terms of which the Company 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 Company. 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.Danish kroner is used as the presentation currency. All other currencies are regarded as foreign currencies. 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.Expenses for direct costs comprise the expenses consumed to achieve revenue for the year.Other external expenses comprise expenses for premises, sales and distribution as well as office expenses, etc.With reference to section 32 of the Danish Financial Statements Act, gross profit/loss is calculated as a summary of revenue, expenses for direct costs and other external expenses.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 Company, including gains and losses on the sale of intangible assets and property, plant and equipment.The item “Income from investments in subsidiaries” in the income statement includes the proportionate share of the profit for the year.Financial income and expenses comprise interest, financial expenses in respect of finance leases, realised and unrealised exchange adjustments, price adjustment of securities, amortisation of mortgage loans as well as extra payments and repayment under the onaccount taxation scheme.Tax for the year consists of current tax for the year and deferred tax for the year. The tax attributable to the profit for year is recognised in the income statement, whereas the tax attributable to equity transactions is recognised directly in equity. Any changes in deferred tax due to changes to tax rates are recognised in the income statement. The Company is jointly taxed with wholly owned Danish and foreign subsidiaries. The tax effect of the joint taxation with the subsidiaries is allocated to enterprises showing profits or losses in proportion to their taxable incomes (full allocation with credit for tax losses).Goodwill acquired is measured at cost less accumulated amortisation. Goodwill is amortised on a straight-line basis over its useful life, which is assessed at 20 years. Software are measured at the lower of cost less accumulated amortisation and recoverable amount. Software are amortised over the remaining software period, however not exceeding 3 years.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. 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 fixtures and fittings, tools and equipment 3-10 years Leasehold improvements 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 are recognised and measured under the equity method. The item“Investments in subsidiaries” 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 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. Subsidiaries 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.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.Dividend distribution proposed by Management for the year is disclosed as a separate equity item.Provisions are recognised when - in consequence of an event occurred before or on the balance sheet date - the Company 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.Debts are measured at amortised cost, substantially corresponding to nominal value.286590242021-01-012021-12-31286590242021-01-01e:ContributedCapitalMember286590242021-01-012021-12-31e:ContributedCapitalMember286590242021-12-31e:ContributedCapitalMember286590242021-01-01e:ReserveForNetRevaluationAccordingToEquityMethodMember286590242021-01-012021-12-31e:ReserveForNetRevaluationAccordingToEquityMethodMember286590242021-12-31e:ReserveForNetRevaluationAccordingToEquityMethodMember286590242021-01-01e:RetainedEarningsMember286590242021-01-012021-12-31e:RetainedEarningsMember286590242021-12-31e:RetainedEarningsMember286590242021-01-01e:ProposedDividendRecognisedInEquityMember286590242021-01-012021-12-31e:ProposedDividendRecognisedInEquityMember286590242021-12-31e:ProposedDividendRecognisedInEquityMember286590242021-01-012021-12-311286590242021-01-012021-12-312286590242021-01-012021-12-313286590242021-01-012021-12-311286590242021-01-012021-12-312286590242021-01-012021-12-312286590242021-01-012021-12-311286590242021-01-012021-12-31e:ProposedDividendRecognisedInEquityMember286590242020-01-012020-12-31e:ProposedDividendRecognisedInEquityMember286590242021-01-012021-12-31e:ProposedExtraordinaryDividendRecognisedInEquityMember286590242020-01-012020-12-31e:ProposedExtraordinaryDividendRecognisedInEquityMember286590242021-01-012021-12-31e:ReserveForNetRevaluationAccordingToEquityMethodMember286590242020-01-012020-12-31e:ReserveForNetRevaluationAccordingToEquityMethodMember286590242021-01-012021-12-31e:RetainedEarningsMember286590242020-01-012020-12-31e:RetainedEarningsMember286590242020-12-31286590242021-12-31286590242020-01-012020-12-31286590242021-01-012021-12-31d:TwoYearsAgoMember286590242021-12-31d:TwoYearsAgoMember286590242021-01-012021-12-31d:ThreeYearsAgoMember286590242021-12-31d:ThreeYearsAgoMember286590242021-01-012021-12-31d:FourYearsAgoMember286590242021-12-31d:FourYearsAgoMember286590242021-01-01e:InvestmentsInGroupEnterprisesMember286590242020-01-01e:InvestmentsInGroupEnterprisesMember286590242021-01-012021-12-31e:InvestmentsInGroupEnterprisesMember286590242020-01-012020-12-31e:InvestmentsInGroupEnterprisesMember286590242021-12-31e:InvestmentsInGroupEnterprisesMember286590242020-12-31e:InvestmentsInGroupEnterprisesMember286590242021-01-012021-12-31e:ManagementMember286590242020-01-012020-12-31e:ManagementMember286590242021-01-01e:AcquiredPatentsMember286590242021-01-01e:GoodwillMember286590242021-01-012021-12-31e:GoodwillMember286590242021-12-31e:GoodwillMember286590242021-01-012021-12-31e:AcquiredIntangibleAssetsMember286590242021-12-31e:AcquiredIntangibleAssetsMember286590242021-01-01e:FixturesFittingsToolsAndEquipmentMember286590242021-01-012021-12-31e:FixturesFittingsToolsAndEquipmentMember286590242021-12-31e:FixturesFittingsToolsAndEquipmentMember286590242021-01-01e:LeaseholdImprovementsMember286590242021-01-012021-12-31e:LeaseholdImprovementsMember286590242021-12-31e:LeaseholdImprovementsMember286590242021-01-012021-12-31e:SubsidiaryMember1286590242021-12-31e:SubsidiaryMember1286590242021-01-012021-12-31e:SubsidiaryMember2286590242021-01-012021-12-31e:SubsidiaryMember3286590242021-01-012021-12-31e:SubsidiaryMember4286590242021-01-012021-12-31e:SubsidiaryMember5286590242021-01-012021-12-31e:SubsidiaryMember6286590242021-01-012021-12-31e:SubsidiaryMember7286590242021-12-31e:SubsidiaryMember2286590242021-12-31e:SubsidiaryMember3286590242021-12-31e:SubsidiaryMember4286590242021-12-31e:SubsidiaryMember5286590242021-12-31e:SubsidiaryMember6286590242021-12-31e:SubsidiaryMember7286590242021-12-31e:FixturesFittingsToolsAndEquipmentMembere:LeasedAssetsMember286590242021-12-31e:LeaseholdImprovementsMembere:LeasedAssetsMember286590242021-01-01e:DepositsLongtermInvestmentsAndReceivablesMember286590242021-01-012021-12-31e:DepositsLongtermInvestmentsAndReceivablesMember286590242021-12-31e:DepositsLongtermInvestmentsAndReceivablesMemberiso4217:DKKxbrli:pure