Årsrapport15915641Christensen Kjærulff, Statsautoriseret RevisionsaktieselskabØstbanegade, 1232100, København Ø2021-01-012021-12-312022-01-012022-12-3130822757BIG Development ApSKløverbladsgade562500ValbyChristensen Kjærulff, Statsautoriseret Revisionsaktieselskab15915641John Mikkelsenstatsautoriseret revisormne26748Østbanegade1232100København ØDanmark+45 33 30 15 15ck@ck.dk2023-06-14Sheela Maini SøgaardRegnskabsklasse C, stor virksomhedRevisionspåtegningCaseWare fra Revisorgruppen DanmarkanpartshaverneKøbenhavn2023-06-14Valby2023-06-14Grundlag for konklusionKonklusion7292520005386680000-1000028279000002594710001210050000077886000867290007000093000391895000359213000-70000-9400029152600024263200000450730004483000000570000005523900071751000-70000-940000010830006489000-368000014200000-10661000000248350008607000866000250001543200042619000204200012420005030100037881000-16300051780001403900012758000-8810000-28900036262000251230008647000546700027618000196560008644000546700010820006584000007565000-11170004772000308800000250000000283600000002547720002866880000023917000243650000018032900079564000002042460001039290000000620404000616597000459950004639600000252300003573700000188600016890000073111000838220006204040006165970005321290004744390006204040006165970001526900001834420000062276000495510000064156000000568000146800060005000195660002284600000152767000150517000327200045500015125000113450000046714800041916900032780004600001406920009050000097080003600060784000050966900012986000496000113996900098410800063339000061709300000125000125000125000125000007666000658400052616500051479500051850100050821200012562100011283000065191100062775000052629200051492100047022000440560000005570000047022000446130000020760000008854000014786000002595000000289330000001212800012128000001342720002691400000178300000012000403960000055334000733490000075267000674700000064156000065107000400000004187400065297000390370006209800033070006840002819000062100000064410000376350001350007400030676400028483100010709800010217200044103600031174500010709800010217200011399690009841080006333900006170930003626200025123000641170008897900040125000-4385100014050400070251000248270000154320001115300014989900059098000714000014918500059098000265900089200010923200092474000429200053190000-116183000-146556000109141000052512000-46576000160280006544000120000-234230000171900004003200050192000-4742600090524000137926000-2400024000140692000905240001406920009052400025577200022272600000131510001145600000134360001347000009167000710300000291526000242632000005054040000852000280001543200042619000119000012140001543200042619000204200012420001316200007590000230000004480000157730000104740000975000044800001100100004772000032896600003289660000453660000336000000789660000250000000054870000460007850000745400001153300005157600046000305050004600049000087180000-1151500002765900046000239170000795640000100765000018032900001803290000-283600000061001300060000000000272500010013000-28360000006127380006100130000046200000-33889000008088200046200000-2836000000620404000616597000BIG Partners 2019 ApSCopenhagenBIG Partners ApSCopenhagenBIG Plot ApSCopenhagenBjarke Ingels Group LLCNew YorkBjarke Ingels Group California Inc.CalifornienBjarke Ingels Group Architecture Spain SLPBarcelonaBjarke Ingels Group (Thailand) LtdBangkokSundmolen BIG ApSCopenhagenFriday Home BIG ApSCopenhagenBIG Partners LtdLondonBIG Investments ApSCopenhagenBjarke Ingels Group Design Consultancy (Shenzhen) LtdShenzhenB.I.G. Bjarke Ingels Group Holding ApSCopenhagenBjarke Ingels Group A/SCopenhagen49778000235780004140000262000005391800049778000-33820000-15180000-7923000-33820004599500046396000342000000154000034354000015370000153700001066100001066100002523000001689000019700001886000018860000-507019000-78792600000178300000012500012500012500012500012500012500012500012500000658400000010820006584000002724000000-2724000076660006584000514795000514795000508212000499316000864600007565000-111700027240000272400010013000526165000514795000518501000508212000440560003404800000296600010008000004702200044056000000104000000012810000006240000043292000004483000010661000036800000-2483500001543200001403900012758000184800031391000-20638000-683750006076300024524000Today, the Managing Director has approved the annual report of BIG Development ApS for the financial year 1 January - 31 December 2022. The annual report has been prepared in accordance with the Danish Financial Statements Act. I consider the chosen accounting policy to be appropriate, and in my 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 and the Company's operations as well as the consolidated cash flows for the financial year 1 January – 31 December 2022. Further, in my opinion, the Management's review gives a true and fair review of the matters discussed in the Management's review. We recommend that the annual report be approved at the Annual General Meeting. Bjarke Bundgaard IngelsWe have audited the consolidated financial statements and the parent company financial statements of BIG Development ApS for the financial year 1 January to 31 December 2022, which comprise a summary of significant accounting policies, income statement, balance sheet, statement of changes in equity and notes for both the Group the Parent Company, as well as consolidated statement of cash flows. The consolidated financial statements and the parent company financial statements are prepared under the Danish Financial Statements Act. In our opinion, the consolidated financial statements and the parent company financial statements give a true and fair view of the financial position of the Group and the Parent Company at 31 December 2022, and of the results of the Group and the Company's operations as well as the consolidated cash flows for the financial year 1 January - 31 December 2022 in accordance with the Danish Financial Statements Act. 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 Consolidated Financial Statements and the Parent Company 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 consolidated financial statements and parent company financial statements that are free from material misstatement, whether due to fraud or error. In preparing the consolidated financial statements and the parent company 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 consolidated financial statements and the parent company financial statements unless Management either intends to liquidate the Group or the Company or to cease operations, or has no realistic alternative but to do so. Our objectives are to obtain reasonable assurance about whether the consolidated financial statements and the parent company 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 consolidated financial statements and parent company financial statements. As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the consolidated financial statements and the parent company 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 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 consolidated financial statements and the parent company financial statements and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group´s and the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements and the parent company financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group and the Company to cease to continue as a going concern. Evaluate the overall presentation, structure and contents of the consolidated financial statements and the parent company financial statements, including the disclosures, and whether the consolidated financial statements and the parent company 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. Statement on Management’s Review Management is responsible for Management’s Review. Our opinion on the consolidated financial statements and the parent company 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 consolidated financial statements and the parent company financial statements, our responsibility is to read Management’s Review and, in doing so, consider whether Management’s Review is materially inconsistent with the consolidated financial statements and the parent company 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, we conclude that 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 Management’s Review. -4938000-33870000108219000050192000-47426000Pengestrømme i altPengestrømme i altPengestrømme i altPengestrømme i altPengestrømme i alt53.766.77.613.3198.1178.9LikviditetsgradLikviditetsgradLikviditetsgradLikviditetsgradLikviditetsgrad46.252.31.72.1The key figures appearing from the survey have been calculated as follows: Gross margin ratio Gross profit x 100 / Revenue Profit margin (EBIT margin) Operating profit or loss (EBIT) x 100 / Revenue Acid test ratio Current assets x 100 / Short term liabilities other than provisions Solvency ratio Equity less non-controlling interests, closing balance x 100 / Total assets, closing balance Return on equity *Profit x 100 / Average equity exclusive of non-controlling interests *Profit Net profit or loss for the year less non-controlling interests’ share hereofMain activities The BIG Group is mainly engaged in architectural, landscape, engineering and design related services. Group Structure Bjarke Ingels Group (The BIG Group) comprises multiple entities owned and operated under BIG’s Denmark based entity, including a number of entities outside of Denmark. The Annual Report This Annual report is for the parent company BIG Development ApS and includes the entities owned and operated under BIG’s Danish parent entity: Bjarke Ingels Group NYC LLC Bjarke Ingels Group California Inc. Bjarke Ingels Group Architecture Spain SLP Bjarke Ingels Group Design Consultant Company (Shenzhen) Limited Bjarke Ingels Group (Thailand) Limited BIG TH US Holding BIG Partners Limited (UK) Bjarke Ingels Group A/S BIG Investments ApS Friday Home BIG ApS Sundmolen BIG ApS. BIG Partners ApS. BIG Partners 2019 ApS B.I.G. Bjarke Ingels Group Holding ApS BIG Plot ApS Peformance 2022 The income statement 2022 shows a net profit of mDKK 36,3 while the balance sheet as of 31 December 2022 shows equity of mDKK 651,9. The 2022 result is in line with Management expectations and considered satisfactory given current market conditions. Revenue has increased from 2021 to 2022, which the Management considers a satisfactory development. Market conditions, including the war in Europe, the European energy crisis, high inflation as well as high and increasing interest rates, have resulted in a lag in revenue growth trickling to the bottom line and as such the increase in sales is not reflected in the 2022 profit. Considering these unique market conditions, the result is nonetheless considered satisfactory. In 2022, the Brand Group continued its focus on executing and investing in strategic milestones within different areas of the business. The new BIG Headquarters in Copenhagen After 6 years of planning and construction, we topped out our new global headquarters in Nordhavn in 2022 and are excited to move into the new office space in the Fall of 2023. The new building is carefully designed as a high-performance synergy of interlocking passive and mechanical systems. The building will be approximately 60% self-sufficient in energy production for operations. In the process of developing the new building together, LM Byg, Aalborg Portland and BIG have developed the Uni-Green concrete, a type of concrete with FutureCem cement. FutureCem is an innovative cement type which emits approx. 25 % less CO2eq than most commonly used cement types. Seventy percent (70%) of the concrete used in BIG’s HQ building is Uni-Green concrete. Upon completion, the HQ will be a benchmark for the durability of Uni-Green and its potential. As a Brand Group, we believe in collaborating with other companies within the supply chain of the construction industry and will continue to seek out similar promising collaborations. Awards and Recognition Business model and engagement 2022 was a year for significant award wins. To mention a few; MIPIM awarded our Singaporean high-rise project CapitaSpring with the MIPIM ASIA’s Silver Award for Best Mixed-Use Development. Additionally, Musée Atelier Audemars Piguet was recognized with the MIPIM award for ‘Best Cultural and Sports Infrastructure’. The Maison de l’Économie Créative et de la Culture en Aquitaine (MECA) was awarded a 2022 Global Urban Land Institute (ULI) Global Award for Excellence, and in Denmark, BIG’s modular project Sneglehusene received Aarhus City’s highest honor. In North America, BIG's highrise project Vancouver House in Vancouver, Canada received the prestigious International High-Rise Award, while our Downton Brooklyn Public Realm Action Plan made it to Fast Company’s Most Innovative Design List. Lastly, The Smile won the NYC Brownfield Partnership Award in the Community Advocacy and Engagement category. Expectations for the BIG Group We expect 2023 to present continued opportunities in all offices and in many of the markets we operate in. While we expect caution in some typologies and from commercial clients, especially in the office and commercial sectors, we expect to see appetite in others e.g hospitality, residential and education as well as long-term development projects for institutional clients. BIG’s BCN office has again outgrown their current office space in Barcelona and will be moving to a new office location in Summer 2023. A new entity in Zurich, Switzerland, has been launched in early 2023 to support the development of the Zurich airport expansion which BIG is leading. We expect top line growth for BIG A/S in 2023 to come from both Denmark and certain Asian markets as well as from expanding on engineering and landscape services. As of Spring 2023, BIG Brand Group launched a new office in Los Angeles, California. With a presence in Los Angeles, the Group will increase its flexibility in serving existing clients and projects on the West coast of the USA. Additionally, it is anticipated that new opportunities will materialize on the West Coast. With a growing global presence, the Group expects to increase its ability to attract global talent and seamlessly deliver services to our current and future clients. Attracting and retaining talent is critical to the design process and to the Group’s continued success. Collaboration between the Brand Group entities enhances career opportunities for individuals the Group employs. A strong and strategic collaboration between entities in the group has meant that downturns in regions may be countered by upturns in other regions making the business less exposed to any local financial and political uncertainties. We expect growth in the Brand Group in 2023 to come from an expansion in projects starting up in the USA as well as continued engagement in both European and a number of Middle Eastern projects carried out from the BIG UK office.We expect pressure on costs and the competition for talent to continue into 2023. We remain optimistic about the future opportunities for the Group. With regards to the war in Ukraine The group has no work in Russia or Ukraine and has not experienced direct impact or disruption due to the ongoing conflict. However, the Group anticipates that a continued longterm conflict between nations will eventually have an impact on its activities in all markets. Financial Risks We endeavor to minimize foreign exchange risks related to our projects by matching, to the extent possible, the income and expenses in the same currency on individual projects. BIG has a significant amount of its activities in various international markets where contracts are entered primarily in USD, EUR or DKK. The Group is thus exposed to currency fluctuations in USD. Unusual events The financial position on 31 December 2022 of the Company and the results of the activities and cash flows of the Group for the financial year 2022 have not been affected by any unusual events. Subsequent events No events materially affecting the assessment of the Annual Report occurred after the balance sheet date. ESG Report Commitment to the ESG In accordance with §99a of the Danish Financial Statements Act, BIG’s ESG report for 2022 accounts for the company's social responsibility, and is available on our homepage: BIG | Bjarke Ingels Group. At BIG, we firmly believe that architecture is not merely about designing buildings and cities but also about giving form to our planet to align with our desired way of life. In doing so, our 2022 ESG report elevates our commitment to Environmental, Social and Governance (ESG) principles, as well as our unwavering support for the 17 UN Sustainable Development Goals and the Ten Principles of the United Nations Global Compact, focusing on Human Rights, Labour, Environment, and Anti-Corruption.. By setting goals and monitoring progress, we aim to continuously assess and improve our environmental impact. Our data collection includes materials used in construction, activities at construction sites, and administrative processes such as waste management and recycling, as well as operations such as travel for client meetings and energy consumption in our offices. Through this approach, we strive to provide transparency into our business practices and foster meaningful dialogue within our industry on sustainability matters. As we progress on our sustainability journey and adapt to emerging rules and best practices, our priorities, target-setting, and reporting will continue to evolve and mature in alignment with the EU Taxonomy. In the ESG report for 2022, we have focused on laying the foundation for a more comprehensive and transparent assessment of our sustainability practices, aiming to be ready for expanded reporting in 2023. Report on gender composition in management according to section 99 b of the Danish Financial Statements Act Diversity, Equity and Inclusion In 2021, we founded a global Diversity, Equity and Inclusion Committee, tasked with bringing more of all three to BIG. In 2022 and beyond, we seek to act on the six DEI Pillars as identified by the Committee and we are already seeing positive effects of this effort, aiming to increase the inclusion of women to 40% of our leadership, and the number of black, indigenous and people of color (BIPOC) individuals to 25% by 2025. In 2022, 45% of the workforce at BIG’ Copenhagen office are women. The percentage of female Associates and Directors make up 31%, and women in BIG’s Copenhagen-based Partner group count 33%. 33% of the C-suite and 33% of the External board members are women. We conducted no replacements to the Board of Directors in 2022. In 2023, BIG will continue to target our goal of electing two members to the Board of Directors by 2024. Report on the company’s policy on data ethics according to section 99 d of the Danish Financial Statements Act Data Privacy & Protection Our data ethics principles apply to all aspects of the purchase, implementation and process of technologies that use any kind of data. We strive to only use, collect, and process data necessary to fulfill the desired tasks in focus. It is always considered whether it is possible to achieve the same purpose by collecting anonymized data instead of personally identifiable data. The data processing must always comply with the applicable law, hence why BIG requires processing of personal data to act in accordance with the General Data Protection Regulation (GDPR). The data protection policy is available on our homepage: https://pixel.big.dk/2022-privacy-policy-for-big-dk/ 15. Deferred tax assets Deferred tax assets 1 January 2022 1.468 0 6 6 Deferred tax of the net profit or loss for the year -900 1.468 0 -1 568 1.468 6 5 The following items are subject to deferred tax: Losses carried forward to next years 568 1.468 6 5 568 1.468 6 5 18. Provisions for deferred tax Provisions for deferred tax 1 January 2022 44.056 34.048 0 0 Deferred tax relating to the net profit or loss for the year 2.966 10.008 0 0 47.022 44.056 0 0 25. Charges and security The group has provided guarantees to third parties for DKK 23.335.000 The company has issued a statement of support for its capital interests in respect of the payment of obligations and costs before the payment deadlines. The group is involved in normal business disputes. Although the final outcome of these cases is unpredictable, in the opinion of the management, these cases will not have any significant effect on the group's result or financial situation. 26. Contingencies Contingent liabilities DKK in thousands Lease liabilities 31.577.340 Warranty commitments 23.335.000 Total contingent liabilities 54.912.340 Lease liabilities The group has rent obligations for a total of DKK 31.577.340 , of which DKK 10.512.625 is due within 1 year, while the remaining rent obligation DKK 21.064.715 is due within 1 - 5 years. Warranty commitments and other contingent liabilities: The group companies are jointly and severally liable for tax on the jointly taxed incomes etc of the Group. 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. The group is involved in normal business disputes. Although the final outcome of these cases is unpredictable, in the opinion of the management, these cases will not have any significant effect on the group's result or financial situation. 27. Related parties Controlling interest Bjarke Bundgaard Ingels Majority shareholder Transactions The company has chosen only to disclose the transactions that have not been carried out on a market basis terms cf. ÅRL. §98C, subsection 7. The annual report for BIG Development ApS has been presented in accordance with the Danish Financial Statements Act regulations concerning reporting class C enterprises (large enterprises). The accounting policies are unchanged from last year, and the annual report is presented in DKK. Revenue The enterprise will be applying IAS 11 and IAS 18 as its basis of interpretation for the recognition of revenue. Revenue is recognised in the income statement if delivery and passing of risk to the buyer have taken place before the end of the year and if the income can be determined reliably and inflow is anticipated. Revenue is measured at the fair value of the consideration promised exclusive of VAT and taxes and less any discounts relating directly to sales. Cost of sales Cost of sales comprises costs concerning purchase of raw materials and consumables less discounts and changes in inventories. Other external expenses Other external expenses comprise expenses incurred for distribution, sales, advertising, administration, premises, loss on receivables, and operational leasing costs. Depreciation, amortisation, and writedown for impairment Depreciation, amortisation, and writedown for impairment comprise depreciation on, amortisation of, and writedown for impairment of intangible and tangible assets, respectively. Financial income and expenses Financial income and expenses are recognised in the income statement with the amounts concerning the financial year. Financial income and expenses comprise interest income and expenses, financial expenses from financial leasing, realised and unrealised capital gains and losses relating to securities, debt and transactions in foreign currency, amortisation of financial assets and liabilities as well as surcharges and reimbursements under the advance tax scheme, etc. Results from Tax on net profit or loss for the year Tax for the year comprises the current income tax for the year and changes in deferred tax and is recognised in the income statement with the share attributable to the net profit or loss for the year and directly in equity with the share attributable to entries directly in equity. Property, plant, and equipment Property is measured at cost plus revaluations and less accrued depreciation and writedown for impairment. Land is not subject to depreciation. Property is revaluated on the basis of regular, independent fair-value assessments. Net revaluation at fair value adjustment is recognised directly in equity less deferred tax and tied up in a particular revaluation reserve. Net impairment loss at fair value adjustment is recognised in the income statement. The depreciable amount is cost plus revaluations at fair value less expected residual value after the end of the useful life of the asset. The amortisation period is fixed at the acquisition date and reassessed annually. If the residual value exceeds the carrying mount of the asset, depreciation is discontinued. Reversal of previous revaluations and recognised deferred taxes concerning revaluations are recognised directly in company equity. Other property, plant, and equipment are measured at cost less accrued depreciation and writedown for impairment. The depreciable amount is cost less any expected residual value after the end of the useful life of the asset. The amortisation period and the residual value are determined at the acquisition date and reassessed annually. If the residual value exceeds the carrying amount, the depreciation is discontinued. If the amortisation period or the residual value is changed, the effect on amortisation will, in future, be recognised as a change in the accounting estimates. The cost comprises acquisition cost and costs directly associated with the acquisition until the time when the asset is ready for use. The cost of a total asset is divided into separate components. These components are depreciated separately, the useful lives of each individual components differing, and the individual component representing a material part of the total cost. Depreciation is done on a straight-line basis according to an assessment of the expected useful life and the residual value of the individual assets: Buildings Useful life 30 years Residual value 20 % Plant and machinery Useful life 5-10 years Residual value 0-20 % Other fixtures and fittings, tools and equipment Useful life 3-5 years Residual value 0-20 % Minor assets with an expected useful life of less than 1 year are recognised as costs in the income statement in the year of acquisition. Profit or loss derived from the disposal of property, land, and equipment is measured as the difference between the sales price less selling costs and the carrying amount at the date of disposal. Profit or loss is recognised in the income statement as other operating income or other operating expenses. As regards self-constructed assets, the cost comprises direct costs for materials, components, deliveries from subsuppliers, payroll costs, and borrowing costs from specific and general borrowing concerning the construction of each individual asset. Other financial instruments Financial instruments recognised under non-current assets comprise listed bonds and shares measured at fair value on the reporting date. Listed financial instruments are measured at market price. Other unlisted financial instruments are measured at cost. Writedown for impairment is done to the recoverable amount if this value is lower than the carrying amount. Deposits Deposits are measured at amortised cost and represent lease deposits, etc. Receivables Receivables are measured at amortised cost, which usually corresponds to nominal value. In order to meet expected losses, impairment takes place at the net realisable value. The company has chosen to use IAS 39 as a basis for interpretation when recognising impairment of financial assets, which means that impairments must be made to offset losses where an objective indication is deemed to have occurred that an account receivable or a portfolio of accounts receivable is impaired.If an objective indication shows that an individual account receivable has been impaired, an impairment takes place at individual level. Accounts receivable for which there is no objective indication of impairment at the individual level are evaluated at portfolio level for objective indication of impairment. The portfolios are primarily based on the debtors' domicile and credit rating in accordance with the company's and the group's credit risk management policy. Determination of the objective indicators applied for portfolios are based on experience with historical losses. Impairment losses are calculated as the difference between the carrying amount of accounts receivable and the present value of the expected cash flows, including the realisable value of any securities received. The effective interest rate for the individual account receivable or portfolio is used as the discount rate. Prepayments Prepayments recognised under assets comprise incurred costs concerning the following financial year. Cash and cash equivalents Cash and cash equivalents comprise cash at bank and on hand. Equity Reserve for net revaluation according to the equity method The reserve for net revaluation according to the equity method comprises net revaluation of equity investments in subsidiaries, associates and equity interests proportional to cost. The reserve may be eliminated in the event of losses, realisation of equity investments, or changes in the accounting estimates. The reserve cannot be recognised by a negative amount. Income tax and deferred tax Current tax liabilities and current tax receivable are recognised in the statement of financial position as calculated tax on the taxable income for the year, adjusted for tax of previous years' taxable income and for tax paid on account. Deferred tax is measured on the basis of temporary differences in assets and liabilities with a focus on the statement of financial position. Deferred tax is measured at net realisable value. Deferred tax is measured based on the tax rules and tax rates applying under the legislation prevailing in the respective countries on the reporting date when the deferred tax is expected to be released as current tax. Changes in deferred tax due to changed tax rates are recognised in the income statement, except for items included directly in the equity. Deferred tax assets, including the tax value of tax losses allowed for carryforward, are recognised at the value at which they are expected to be realisable, either by settlement against tax of future earnings or by set-off in deferred tax liabilities within the same legal tax unit. Any deferred net tax assets are measured at net realisable value. Liabilities other than provisions Financial liabilities other than provisions related to borrowings are recognised at the received proceeds less transaction costs incurred. In subsequent periods, the financial liabilities are recognised at amortised cost, corresponding to the capitalised value when using the effective interest rate. The difference between the proceeds and the nominal value is recognised in the income statement during the term of the loan. Mortgage loans and bank loans are thus measured at amortised cost which, for cash loans, corresponds to the outstanding payables. For bond loans, the amortised cost corresponds to an outstanding payable calculated as the underlying cash value at the date of borrowing, adjusted by amortisation of the market value on the date of the borrowing effectuated over the repayment period. Also, capitalised residual leasing liabilities associated with financial leasing contracts are recognised in the financial liabilities. Liabilities other than provisions relating to investment properties are measured at amortised cost. Other liabilities concerning payables to suppliers, group enterprises, and other payables are measured at amortised cost which usually corresponds to the nominal value. Intangible assets Development projects, patents, and licences Development costs and internally generated rights are recognised in the income statement as costs in the acquisition year. Patents and licenses are measured at cost less accrued amortisation. Patents are amortised on a straightline basis over the remaining patent period and licenses are amortised over the contract period, however, for a maximum of 10 years. Profit and loss from the sale of development projects, patents, and licenses are measured as the difference between the sales price less sales costs and the carrying amount at the time of sale. Profit or loss are recognised in the income statement as other operating income or other operating expenses, respectively. Goodwill Acquired goodwill is measured at cost less accumulated amortisation. Given that it is impossible to make a reliable estimate of the useful life, the amortisation period is set at 10 years. 308227572022-01-012022-12-31d:ConsolidatedMember308227572022-01-012022-12-31308227572021-01-012021-12-31308227572021-12-31308227572022-12-31308227572022-01-012022-12-31d:ConsolidatedMember1308227572022-01-012022-12-31d:ConsolidatedMember1308227572022-01-01d:ConsolidatedMembere:GoodwillMember308227572022-01-012022-12-31d:ConsolidatedMembere:GoodwillMember308227572022-12-31d:ConsolidatedMembere:GoodwillMember308227572022-01-01d:ConsolidatedMembere:OtherInvestmentsMember308227572022-01-012022-12-31d:ConsolidatedMembere:OtherInvestmentsMember308227572022-12-31d:ConsolidatedMembere:OtherInvestmentsMember308227572022-01-01d:ConsolidatedMembere:FixturesFittingsToolsAndEquipmentMember308227572022-01-012022-12-31d:ConsolidatedMembere:FixturesFittingsToolsAndEquipmentMember308227572022-12-31d:ConsolidatedMembere:FixturesFittingsToolsAndEquipmentMember308227572022-01-01d:ConsolidatedMembere:InvestmentsInGroupEnterprisesMember308227572021-01-01d:ConsolidatedMembere:InvestmentsInGroupEnterprisesMember308227572022-01-012022-12-31d:ConsolidatedMembere:InvestmentsInGroupEnterprisesMember308227572021-01-012021-12-31d:ConsolidatedMembere:InvestmentsInGroupEnterprisesMember308227572022-12-31d:ConsolidatedMembere:InvestmentsInGroupEnterprisesMember308227572021-12-31d:ConsolidatedMembere:InvestmentsInGroupEnterprisesMember308227572022-01-01d:ConsolidatedMembere:ContributedCapitalMember308227572022-12-31d:ConsolidatedMembere:ContributedCapitalMember308227572022-01-01d:ConsolidatedMembere:ReserveForNetRevaluationAccordingToEquityMethodMember308227572022-01-012022-12-31d:ConsolidatedMembere:ReserveForNetRevaluationAccordingToEquityMethodMember308227572022-01-01d:ConsolidatedMembere:RetainedEarningsMember308227572022-01-012022-12-31d:ConsolidatedMembere:RetainedEarningsMember308227572022-12-31d:ConsolidatedMembere:RetainedEarningsMember308227572022-01-012022-12-31d:ConsolidatedMember0308227572022-01-012022-12-31d:ConsolidatedMemberd:PreviousYearMember0308227572022-01-012022-12-31d:ConsolidatedMemberd:TwoYearsAgoMember0308227572022-01-012022-12-31d:ConsolidatedMemberd:ThreeYearsAgoMember0308227572022-01-012022-12-31d:ConsolidatedMemberd:FourYearsAgoMember0308227572021-12-31d:ConsolidatedMember308227572022-01-01d:ConsolidatedMembere:AcquiredIntangibleAssetsMember308227572022-01-012022-12-31d:ConsolidatedMembere:AcquiredIntangibleAssetsMember308227572022-12-31d:ConsolidatedMembere:AcquiredIntangibleAssetsMember308227572022-01-01d:ConsolidatedMembere:PropertyPlantAndEquipmentInProgressAndPrepaymentsForPropertyPlantAndEquipmentMember308227572022-01-012022-12-31d:ConsolidatedMembere:PropertyPlantAndEquipmentInProgressAndPrepaymentsForPropertyPlantAndEquipmentMember308227572022-12-31d:ConsolidatedMembere:PropertyPlantAndEquipmentInProgressAndPrepaymentsForPropertyPlantAndEquipmentMember308227572022-01-01308227572021-01-01308227572022-01-012022-12-31d:ConsolidatedMembere:SubsidiaryMember1308227572022-01-012022-12-31d:ConsolidatedMember2308227572022-01-012022-12-31d:ConsolidatedMember2d:PreviousYearMember308227572022-01-012022-12-31d:ConsolidatedMember2d:TwoYearsAgoMember308227572022-01-012022-12-31d:ConsolidatedMember2d:ThreeYearsAgoMember308227572022-01-012022-12-31d:ConsolidatedMember2d:FourYearsAgoMember308227572021-01-012021-12-31d:ConsolidatedMember308227572022-01-012022-12-31e:ProposedDividendRecognisedInEquityMember308227572021-01-012021-12-31e:ProposedDividendRecognisedInEquityMember308227572022-01-012022-12-31e:ReserveForNetRevaluationAccordingToEquityMethodMember308227572021-01-012021-12-31e:ReserveForNetRevaluationAccordingToEquityMethodMember308227572022-01-012022-12-31e:RetainedEarningsMember308227572021-01-012021-12-31e:RetainedEarningsMember308227572022-12-31d:ConsolidatedMember308227572022-01-01e:GoodwillMember308227572022-01-01e:AcquiredIntangibleAssetsMember308227572022-01-012022-12-31e:AcquiredIntangibleAssetsMember308227572022-12-31e:AcquiredIntangibleAssetsMember308227572022-01-012022-12-31e:GoodwillMember308227572022-12-31e:GoodwillMember308227572022-01-012022-12-31e:CompletedDevelopmentProjectsMember308227572022-01-01e:InvestmentsInGroupEnterprisesMember308227572021-01-01e:InvestmentsInGroupEnterprisesMember308227572022-01-012022-12-31e:InvestmentsInGroupEnterprisesMember308227572021-01-012021-12-31e:InvestmentsInGroupEnterprisesMember308227572022-12-31e:InvestmentsInGroupEnterprisesMember308227572021-01-01d:ConsolidatedMembere:ContributedCapitalMember308227572021-12-31d:ConsolidatedMembere:ContributedCapitalMember308227572021-01-01d:ConsolidatedMembere:ReserveForNetRevaluationAccordingToEquityMethodMember308227572021-01-012021-12-31d:ConsolidatedMembere:ReserveForNetRevaluationAccordingToEquityMethodMember308227572021-01-01d:ConsolidatedMembere:RetainedEarningsMember308227572021-01-012021-12-31d:ConsolidatedMembere:RetainedEarningsMember308227572021-12-31d:ConsolidatedMembere:RetainedEarningsMember308227572022-01-012022-12-31d:ConsolidatedMembere:SubsidiaryMember2308227572022-01-012022-12-31d:ConsolidatedMembere:SubsidiaryMember3308227572022-01-012022-12-31d:ConsolidatedMembere:SubsidiaryMember4308227572022-01-012022-12-31d:ConsolidatedMembere:SubsidiaryMember5308227572022-01-012022-12-31d:ConsolidatedMembere:SubsidiaryMember6308227572022-01-012022-12-31d:ConsolidatedMembere:SubsidiaryMember7308227572022-01-012022-12-31d:ConsolidatedMembere:SubsidiaryMember8308227572022-01-012022-12-31d:ConsolidatedMembere:SubsidiaryMember9308227572022-01-012022-12-31d:ConsolidatedMembere:SubsidiaryMember10308227572022-01-012022-12-31d:ConsolidatedMembere:SubsidiaryMember11308227572022-01-012022-12-31d:ConsolidatedMembere:SubsidiaryMember12308227572022-01-012022-12-31d:ConsolidatedMembere:SubsidiaryMember13308227572022-01-012022-12-31d:ConsolidatedMembere:SubsidiaryMember14308227572022-01-01d:ConsolidatedMember308227572021-01-01d:ConsolidatedMember308227572022-01-01e:OtherInvestmentsMember308227572022-01-012022-12-31e:OtherInvestmentsMember308227572022-12-31e:OtherInvestmentsMember308227572022-12-31d:ConsolidatedMembere:LongtermDebtToBanksMember308227572022-12-31e:LongtermDebtToBanksMember308227572022-01-01e:ContributedCapitalMember308227572022-12-31e:ContributedCapitalMember308227572021-01-01e:ContributedCapitalMember308227572021-12-31e:ContributedCapitalMember308227572022-01-01e:ReserveForNetRevaluationAccordingToEquityMethodMember308227572022-01-012022-12-31e:ReserveForNetRevaluationAccordingToEquityMethodMember308227572022-12-31e:ReserveForNetRevaluationAccordingToEquityMethodMember308227572021-01-01e:ReserveForNetRevaluationAccordingToEquityMethodMember308227572021-01-012021-12-31e:ReserveForNetRevaluationAccordingToEquityMethodMember308227572021-12-31e:ReserveForNetRevaluationAccordingToEquityMethodMember308227572022-01-01e:RetainedEarningsMember308227572022-01-012022-12-31e:RetainedEarningsMember308227572022-12-31e:RetainedEarningsMember308227572021-01-01e:RetainedEarningsMember308227572021-01-012021-12-31e:RetainedEarningsMember308227572021-12-31e:RetainedEarningsMember308227572022-01-01e:FixturesFittingsToolsAndEquipmentMember308227572022-01-012022-12-31e:FixturesFittingsToolsAndEquipmentMember308227572022-12-31e:FixturesFittingsToolsAndEquipmentMember308227572022-01-01e:PropertyPlantAndEquipmentInProgressAndPrepaymentsForPropertyPlantAndEquipmentMember308227572022-12-31e:PropertyPlantAndEquipmentInProgressAndPrepaymentsForPropertyPlantAndEquipmentMember308227572022-01-012022-12-31e:PropertyPlantAndEquipmentInProgressAndPrepaymentsForPropertyPlantAndEquipmentMember308227572021-12-31e:InvestmentsInGroupEnterprisesMember308227572022-01-01d:ConsolidatedMembere:DepositsLongtermInvestmentsAndReceivablesMember308227572022-01-012022-12-31d:ConsolidatedMembere:DepositsLongtermInvestmentsAndReceivablesMember308227572022-12-31d:ConsolidatedMembere:DepositsLongtermInvestmentsAndReceivablesMember308227572021-01-012021-12-31d:ConsolidatedMember1308227572022-01-01e:DepositsLongtermInvestmentsAndReceivablesMember308227572022-01-012022-12-31e:DepositsLongtermInvestmentsAndReceivablesMember308227572022-12-31e:DepositsLongtermInvestmentsAndReceivablesMember308227572022-01-012022-12-311308227572021-01-012021-12-311308227572022-01-01d:ConsolidatedMembere:ParticipatingInterestsMember308227572022-01-012022-12-31d:ConsolidatedMembere:ParticipatingInterestsMember308227572022-12-31d:ConsolidatedMembere:ParticipatingInterestsMember308227572021-01-01d:ConsolidatedMembere:ParticipatingInterestsMember308227572021-01-012021-12-31d:ConsolidatedMembere:ParticipatingInterestsMember308227572021-12-31d:ConsolidatedMembere:ParticipatingInterestsMemberiso4217:DKKxbrli:pure