xbrli:pureiso4217:DKK371263062021-01-012021-12-31cmn:ConsolidatedMember371263062021-01-012021-12-311cmn:ConsolidatedMember371263062021-01-012021-12-311cmn:ConsolidatedMember371263062020-01-012020-12-31cmn:ConsolidatedMember371263062021-01-012021-12-31371263062020-01-012020-12-31371263062021-01-012021-12-31fsa:RetainedEarningsMembercmn:ConsolidatedMember371263062021-01-012021-12-31fsa:EquityAttributableToParentMembercmn:ConsolidatedMember371263062021-01-012021-12-31fsa:MinorityInterestsMembercmn:ConsolidatedMember371263062021-01-012021-12-31fsa:RetainedEarningsMembercmn:ConsolidatedMember371263062020-01-012020-12-31fsa:RetainedEarningsMembercmn:ConsolidatedMember371263062021-01-012021-12-31fsa:MinorityInterestsMembercmn:ConsolidatedMember371263062020-01-012020-12-31fsa:MinorityInterestsMembercmn:ConsolidatedMember371263062021-01-012021-12-31fsa:RetainedEarningsMember371263062021-01-012021-12-31fsa:RetainedEarningsMember371263062020-01-012020-12-31fsa:RetainedEarningsMember371263062021-12-31cmn:ConsolidatedMember371263062020-12-31cmn:ConsolidatedMember371263062021-12-31371263062020-12-31371263062021-01-01cmn:ConsolidatedMember371263062020-01-01cmn:ConsolidatedMember371263062021-01-01fsa:ContributedCapitalMembercmn:ConsolidatedMember371263062021-01-01fsa:RetainedEarningsMembercmn:ConsolidatedMember371263062021-01-01fsa:EquityAttributableToParentMembercmn:ConsolidatedMember371263062021-01-01fsa:MinorityInterestsMembercmn:ConsolidatedMember371263062021-12-31fsa:ContributedCapitalMembercmn:ConsolidatedMember371263062021-12-31fsa:RetainedEarningsMembercmn:ConsolidatedMember371263062021-12-31fsa:EquityAttributableToParentMembercmn:ConsolidatedMember371263062021-12-31fsa:MinorityInterestsMembercmn:ConsolidatedMember371263062021-01-01fsa:ContributedCapitalMember371263062021-01-01fsa:RetainedEarningsMember371263062021-01-01371263062021-12-31fsa:ContributedCapitalMember371263062021-12-31fsa:RetainedEarningsMember371263062021-01-012021-12-312cmn:ConsolidatedMember371263062020-01-012020-12-312cmn:ConsolidatedMember371263062021-01-012021-12-312cmn:ConsolidatedMember371263062020-01-012020-12-312cmn:ConsolidatedMember371263062021-01-012021-12-31fsa:OtherShorttermPayablesMembercmn:ConsolidatedMemberGrundlag for konklusionKonklusion2022-06-282022-06-2833963556Deloitte Statsautoriseret RevisionspartnerselskabRevisionspåtegningRegnskabsklasse C, mellemstor virksomhed2020-12-312020-01-0133963556Weidekampsgade 6Deloitte Statsautoriseret Revisionspartnerselskab2300 København S2021-12-312021-01-01NB Herlev Holding ApS37126306ÅrsrapportKøbenhavn S23006WeidekampsgadeHerlevHerlev2730<br /><br />205Herlev HovedgadeThe Executive Board has today considered and approved the annual report of NB Herlev Holding ApS for the financial year 01.01.2021 - 31.12.2021. The annual report is presented in accordance with the Danish Financial Statements Act.In my opinion, the consolidated financial statements and the parent financial statements give a true and fair view of the Group's and the Parent's financial position at 31.12.2021 and of the results of their operations and the consolidated cash flows for the financial year
01.01.2021 - 31.12.2021.I believe that the management commentary contains a fair review of the affairs and conditions referred to
therein.I recommend the annual report for adoption at the Annual General Meeting.HerlevThomas NielsenTo the shareholders of NB Herlev Holding ApSWe have audited the consolidated financial statements and the parent financial statements of NB Herlev Holding ApS for the financial year 01.01.2021 - 31.12.2021, which comprise the income statement, balance sheet, statement of changes in equity and notes, including a
summary of significant accounting policies, for the Group as well as the Parent, and the consolidated cash flow statement. The consolidated financial statements and the parent financial statements
are prepared in accordance with the
Danish Financial Statements Act.
In our opinion, the consolidated financial statements and the parent financial statements give a true and fair view of the Group's and the Parent's financial position at 31.12.2021 and of the results of their operations and the consolidated cash flows for the financial year 01.01.2021 - 31.12.2021 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 consolidated financial statements and the parent financial statements" section of this auditor’s
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 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 financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the consolidated financial statements and the parent financial statements, Management is responsible for assessing the Group's and the Entity’s ability to continue
as a going concern, for disclosing, as applicable, matters related to going concern, and for using the going concern basis of accounting in preparing the consolidated financial statements and the parent financial statements unless Management either intends to liquidate
the Entity 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 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 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:<br />Identify and assess the risks of material misstatement of the consolidated financial statements and the parent 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.
<br />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 Entity’s internal control.
<br />Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by Management.
<br />Conclude on the appropriateness of Management’s use of the going concern basis of accounting in
preparing the consolidated financial statements and the parent 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 Entity’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 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 Entity to cease to continue as a going concern.
<br />Evaluate the overall presentation, structure and content of the consolidated financial statements and the parent financial statements, including the disclosures
in the notes, and whether the consolidated financial statements and the parent financial statements represent the underlying transactions and
events in a manner that gives a true and fair view.<br />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 commentary.
Our opinion on the consolidated financial statements and the parent financial statements does not cover the management commentary, and we do not express
any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements and the parent financial statements, our responsibility is to read the management
commentary and, in doing so, consider whether the management commentary is materially inconsistent with
the consolidated financial statements and the parent financial statements or our knowledge obtained in the audit or otherwise appears to be materially
misstated.
Moreover, it is our responsibility to consider whether the management commentary provides the information
required under the Danish Financial Statements Act.<br />Based on the work we have performed, we conclude that the management commentary is in accordance with
the consolidated financial statements and the parent financial statements and has been prepared in accordance with the requirements of the Danish Financial
Statements Act. We did not identify any material misstatement of the management commentary.CopenhagenJan Larsenmne16541State Authorised Public AccountantFinancial highlights2021
DKK'0002020
DKK'0002019
DKK'0002018
DKK'0002017
DKK'000Key figuresRevenue249,101421,641356,836275,9280Gross profit/loss217,229293,810280,764222,652(13)Operating profit/loss74,295143,338123,52581,728(13)Net financials459,723671,032(9,671)(14,291)0Profit/loss for the year450,920753,37570,8175,403(13)Profit for the year excl
.
minority interests439,439738,01149,538(525)(13)Balance sheet total1,570,9481,108,781570,26379,46675,750Investments in property, plant and equipment3,96240,19729,52979,46675,750Equity1,403,191956,086199,81279,41175,738Equity excl. minority interests1,372,297931,732146,91479,41175,738RatiosNet margin (%)181.02178.6819.851.96(Infinity)Return on equity (%)38.15136.8443.78(0.68)0.02Equity ratio (%)87.3584.0325.7699.9399.98The financial highlights, include the activities of NBCD A/S and Sanos A/S in the period before 30 june 2020.Financial highlights are defined and calculated in accordance with the current version of "Recommendations &
Ratios" issued by the CFA Society Denmark.Net margin (%)
:
Profit/loss for the year * 100
RevenueReturn on equity (%)
:Profit/loss for the year excl. minority interests * 100
Average equity excl. minority interestsEquity ratio (%)
:Equity excl. minority interests * 100
Balance sheet totalPrimary activitiesThe activities of the Parent Company comprise shareholdings in other companies and related activity. The
most material investment is in Nordic Bioscience Holding A/S which carry out research and development
within the pharmaceutical sector.
The group's business activities
The Group was established in 2018 when the Company acquired the majority interest in Nordic Bioscience
Holding A/S.
The main activities of the group are research and development within the pharmaceutical sector. The research
and development are performed both for own and for third parties on contract basis and consist of both
clinical and preclinical research.
For a more detailed description we refer to the consolidated financials of Nordic Bioscience Holding A/SDevelopment in activities and financesThe Group has continued its activities with an increased level of activity compared to 2020. As a result, the Group
reached a gross profit of DKK 217.2 million and an operating profit of DKK 74.2 million. Earnings before interest,
taxes, depreciation and amortisation (EBITDA) was DKK 82.3 million compared to DKK 121.0 million in 2020.
Profit/loss for the year in relation to expected developmentsThe Parent Company’s income statement for the year ended 31.12.2021 shows a profit of DKK 439,438,586
and the balance sheet shows equity of DKK 1,372,296,772 at 31.12.2021. The result for the year is affected
by the sale of shares in Nordic Bioscience Holding A/S
The Group’s income statement for the year ended 31.12.2021 shows a profit of DKK 450,919,594 and the
balance sheet shows equity of DKK 1,403,190,752 at 31.12.2021.
The management expects earnings to be positive in 2022. OutlookManagement expects the increase in earnings from core activities to continue in 2022. Furthermore,
Management expects that earnings from own and third-party R&D activities will be able to fund the
pharmaceutical projects entirely, even without further milestones or upfront payments.
Knowledge resourcesThe key to the Group’s success is our +25 years of research in the ECM (Extracellular Matrix) and the
development of diagnostic and therapeutic tools from insights of our more than 151 employees, whereby more
than 140 are directly engaged in research and development activities. The Group seeks to foster a unique and
competitive environment with the freedom to explore scientific ideas. We believe in publishing our scientific
results and publish more than 50 scientific articles a year in the highest-ranking specialist journals.Environmental performanceWe use a minimal number of products in our activities and limited quantities hereof, which could potentially
damage the external environment. We find it very important to comply with or exceed all applicable
environmental regulations and have a good and close relationship with the relevant authorities overseeing such
activities. Research and development activitiesThe Group carries out research and development for own and third parties within the pharmaceutical sector. The
core activities are carried out in the entities Nordic Bioscience A/S and in KeyBioscience AG. The biochemical
markers developed and commercialized in Nordic Bioscience A/S are typically used as aid in diagnosing or
predicting disease development for various diseases, including response to various therapies. In KeyBioscience
AG, the focus are on pharmaceutical projects with the aim to develop better treatments.Group relations
* NBCD A/S and Sanos A/S were sold with effect from december 10, 2020.
Events after the balance sheet dateNo events have occurred after the balance sheet date to this date, which would influence the evaluation of this annual report. 249101475421641446318728691278311342172286062938103121089963651252692163571747327850995126942595311780035264753674294803143337637-126942-59531-36017567-3601756743692879228305455340531041691974482-91612166691885693125119275291736081251192752917360859274075011594821073395961775498000145778352212468201620743343450467567982497740528439281533290132375303237530450919594753374807439438586439438586114810084394385867380105491148100815364258439438586738010549439438586439438586738010549004051976381039526405197638103952668290566693456359427900104671110077718466798127460351014120351014120916121660916121660126713578128169543320183318118238229287565850128169543320183318761502307615023072092633125131256252190026076681998678937470020326238836159767071558525071558525217078094818400236767469326238810968599412767820305136347351276782030504069908127678203051363473512767820305040699087349444870812594584447329131189376643523131961381452709901821214798128647964961695204015709481301108780648141464919293713535821670352167035216703521670351370129737929565422137012973792956542213722967729317324573089398024353914140319075295608637121670359295654229317324572435391495608637121670351370129737137229677230893980137229677293173245721670359295654229317324572167035137012973782118559466982118559466945351185488910460619232345351185550833693275000327500049021687480901481486855111727989822651008226510025451418525555289799035332901207418423339754758000700001215850089701623942352420540290116693619315209960842352420540290115709481301108780648141464919293713535800-13394375-1339437511257291125729845343395791626055881-19118443127443441-251368045207794125-1271488515572624820-5927407-14009590-24589627-30563065734539573-1717215060-345901-396160131294240-1270267363991676700-1978614Sale of group enterprises0820436608359551666942147817704947395224932750-45529874Mortage debt paid-3539861-21271640-3539861-66801514766954878455691761-1125729-2433808135027647858444732912767820305136347351 Staff costs2021
DKK2020
DKKWages and salaries78,831,23799,944,749Pension costs4,961,1456,108,873Other social security costs695,271255,272Other staff costs3,545,1141,762,97788,032,767108,071,871Average number of full-time employees152219Special incentive programmesBy reference to section 98b(3),(ii), of the Danish Financial Statements Act, remuneration to Management is not disclosed.1 Staff costs2021
DKK2020
DKKAverage number of full-time employees0015221900By reference to section 98b(3),(ii), of the Danish Financial Statements Act, remuneration to Management is not disclosed.2 Other financial income2021
DKK2020
DKKFair value adjustments110,466,47329,084,817Other financial income14,652,80288,791125,119,27529,173,6082 Other financial income2021
DKK2020
DKKFair value adjustments110,466,47329,084,817Other financial income14,652,80288,791125,119,27529,173,6083 Other financial expenses2021
DKK2020
DKKOther interest expenses3,816,00743,985,679Exchange rate adjustments328,191186,455Other financial expenses1,783,2095,943,8145,927,40750,115,9482021
DKK2020
DKKOther interest expenses3,816,00743,985,679Exchange rate adjustments328,191186,455Other financial expenses1,783,2095,943,8145,927,40750,115,948<br />3 Other financial expenses2021
DKK2020
DKKOther interest expenses33,63117,962Exchange rate adjustments290,4990Other financial expenses1,783,2095,943,8132,107,3395,961,775<br />2021
DKK2020
DKKOther interest expenses33,63117,962Exchange rate adjustments290,4990Other financial expenses1,783,2095,943,8132,107,3395,961,7754 Tax on profit/loss for the year2021
DKK2020
DKKCurrent tax46,722,86531,876,798Change in deferred tax226,516(8,668,680)Adjustment concerning previous years(192,583)1,769,28746,756,79824,977,4054 Tax on profit/loss for the year2021
DKK2020
DKKCurrent tax28,439,2815,332,90128,439,2815,332,9015 Proposed distribution of profit/loss2021
DKK2020
DKKRetained earnings439,438,586738,010,549Minority interests' share of profit/loss11,481,00815,364,258450,919,594753,374,8075 Proposed distribution of profit and loss2021
DKK2020
DKKRetained earnings439,438,586738,010,549439,438,586738,010,5496 Intangible assetsAcquired intangible assets
DKKGoodwill
DKKCost beginning of year49,645,725180,087,835Additions24,689,1210Disposals0(4,502,196)Cost end of year74,334,846175,585,639Amortisation and impairment losses beginning of year(49,645,725)(99,048,309)Amortisation for the year(24,689,121)(36,017,567)Amortisation and impairment losses end of year(74,334,846)(135,065,876)Carrying amount end of year040,519,763Acquired intangible assets
DKKGoodwill
DKKCost beginning of year49,645,725180,087,835Additions24,689,1210Disposals0(4,502,196)Cost end of year74,334,846175,585,639Amortisation and impairment losses beginning of year(49,645,725)(99,048,309)Amortisation for the year(24,689,121)(36,017,567)Amortisation and impairment losses end of year(74,334,846)(135,065,876)Carrying amount end of year040,519,7637 Property, plant and equipmentLand and buildings
DKKOther fixtures and fittings, tools and equipment
DKKLeasehold improvements
DKKCost beginning of year77,032,07532,070,0400Transfers700,150(2,425,935)1,725,785Additions617,6003,344,0010Disposals0(4,800,403)(145,580)Cost end of year78,349,82528,187,7031,580,205Depreciation and impairment losses beginning of year(7,686,440)(21,602,930)0Transfers(700,639)2,426,425(1,725,785)Depreciation for the year(1,672,180)(4,383,701)0Reversal regarding disposals04,800,403145,580Depreciation and impairment losses end of year(10,059,259)(18,759,803)(1,580,205)Carrying amount end of year68,290,5669,427,90008 Financial assetsInvestments in associates
DKKOther investments
DKKCost beginning of year35,101,41291,612,166Transfers(40,666,270)0Additions5,564,8580Cost end of year091,612,166Impairment losses for the year0(91,612,166)Impairment losses end of year0(91,612,166)Carrying amount end of year00
AssociatesRegistered inRisma Systems A/SHerlevThe investments in associates has been transfered to the financial post "Other Investments".Other investmentsRegistered inCorporate
formSymic OA ApSHerlevApS6 Financial assetsInvestments in group enterprises
DKKInvestments in associates
DKKOther investments
DKKCost beginning of year676,120,27535,101,41291,612,166Transfers0(40,666,270)0Additions50,0005,564,8580Disposals(9,651,140)00Cost end of year666,519,135091,612,166Impairment losses beginning of year(482,650,534)00Amortisation of goodwill(36,017,567)00Share of profit/loss for the year40,803,15200Dividend(61,610,372)00Impairment losses for the year00(91,612,166)Other adjustments1,125,72900Impairment losses end of year(538,349,592)0(91,612,166)Carrying amount end of year128,169,54300A specification of investments in subsidiaries is evident from the notes to the consolidated financial statements.Investments in
associatesRegistered inCorporate
formRisma Systems A/SHerlevA/SThe investments in associates has been transfered to the financial post "Other Investments".Other investments Registered inCorporate
formSymic OA ApSHerlevApS9 PrepaymentsPrepayments comprise incurred costs relating to subsequent financial years.10 Deferred tax2021
DKK2020
DKKIntangible assets0(53,878)Property, plant and equipment1,261,1851,088,547Liabilities other than provisions(440,000)(440,000)Deferred tax821,185594,669
Changes during the year2021
DKK2020
DKKBeginning of year594,669(8,865,143)Recognised in the income statement226,516209,812Other adjustments09,250,000End of year821,185594,66910 Deferred tax11 Other payables2021
DKK2020
DKKHoliday pay obligation06,192,32306,192,32312 Non-current liabilities other than provisionsDue within 12
months
2021
DKKDue within 12
months
2020
DKKDue after
more than 12
months
2021
DKKOutstanding
after 5 years
2021
DKKMortgage debt3,275,0003,275,00045,351,18532,462,8033,275,0003,275,00045,351,18532,462,803Mortgage debt is secured by way of mortgage on properties at a book value of DKK 68,290,566.13 Other payables2021
DKK2020
DKKWages and salaries, personal income taxes, social security costs, etc. payable9,168,0899,070,987Holiday pay obligation8,570,9312,923,136Other costs payable3,002,82221,403,42420,741,84233,397,54714 Changes in working capital2021
DKK2020
DKKIncrease/decrease in inventories(7,615,023)0Increase/decrease in receivables113,687,944(42,576,374)Increase/decrease in trade payables etc.11,274,874(244,643,579)Other changes10,095,64635,851,908127,443,441(251,368,045)15
Fair value informationOther investments
DKKFair value end of year 1,276,782,030Unrealised fair value
adjustments recognised in
the income statement
110,466,4737
Fair value informationOther investments
DKKFair value end of year1,276,782,030Unrealised fair value
adjustments recognised in
the income statement110,466,47316 Non-arm’s length related party transactionsOnly non-arm's length related party transactions are disclosed in the annual report. No
such transactions were conducted during the financial year.9 Non-arm’s length related party transactionsOnly non-arm's length related party transactions are disclosed in the annual report. No
such transactions were conducted during the financial year.17 SubsidiariesRegistered inCorporate
formOwnership
%Nordic Bioscience Holding A/S HerlevA/S73.9012816954319346974001967702508800708 Contingent liabilitiesThe Entity participates in a Danish joint taxation
arrangement in which Nordic Bioscience Holding A/S serves as the administration company.
According to the joint taxation provisions of
the Danish Corporation Tax Act, the Entity is therefore liable for
income taxes etc. for the jointly taxed entities, and also for obligations, if any, relating to the withholding of tax on
interest, royalties and dividends for the jointly
taxed entities. The jointly taxed entities' total known net liability
under the joint taxation arrangement is
disclosed in the administration company's financial statements.This annual report has been prepared in accordance with the provisions of the Danish Financial Statements Act
governing reporting class C enterprises (medium).The presentation of a few comparative figures has been restated. However, the restatement does neither affect the Company's results nor its equity.
Apart from the areas mentioned above, the accounting policies applied to these consolidated financial statements and parent financial statements are consistent with those applied last year.falseRecognition 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. <br />Consolidated financial statementsThe consolidated financial statements comprise the Parent and the group enterprises (subsidiaries) that are controlled by the Parent. Control is achieved by the Parent, either directly or indirectly, holding more than 50% of the voting rights or in any other way possibly or actually exercising controlling influence.
Enterprises in which the Group, directly or indirectly, holds between 20% and 50% of the voting rights and exercises significant, but not controlling influence, are regarded as associates.<br />Basis of consolidationThe consolidated financial statements are prepared on the basis of the financial statements of the Parent and its subsidiaries. The consolidated financial statements are prepared by combining uniform items. On consolidation, intra-group income and expenses, intra-group accounts and dividends as well as profits and losses on transactions between the consolidated enterprises are eliminated. The financial statements used for consolidation have been prepared applying the Group’s accounting policies.Foreign currency translationOn initial recognition, foreign currency transactions are translated applying the exchange rate at the
transaction
date. Receivables, payables and other monetary items denominated in foreign currencies that
have not been
settled at the balance sheet date are translated using the exchange rate at the balance
sheet date. Exchange
differences that arise between the rate at the transaction date and the rate in effect
at the payment date, or the
rate at the balance sheet date, are recognised in the income statement as
financial income or financial expenses.
RevenueRevenue from contracts concluded on performance of clinical studies as well as sale of other services is
recognised in the income statement provided that delivery and transfer of risk have been made to the purchaser
by year-end.
Contracts concluded on performance of clinical studies running over several financial years are recognised
under the percentage-of-completion method as the studies progress.
Contract work in progress is included in revenue based on the stage of completion so that revenue corresponds
to the selling price of the work performed in the financial year (the percentage-of-completion
method). Contract work in progress is included in revenue based on the stage of completion so that revenue
corresponds
to the selling price of the work performed in the financial year (the percentage-of-completion
method).Production costsProduction costs comprise expenses incurred to earn revenue for the financialyear. Production costs comprise
direct and indirect costs for wages andsalaries, rent and lease, and amortisation, depreciation and impairment
losses relating to intangibleassets and property, plant and equipment included in the production process. In
addition, the item includesordinary writedown of inventories.Research and development costsResearch and development costs comprise research costs, costs of development projects not qualifying for
recognition in the balance sheet, and amortisation and impairment losses relating to development projects.Administrative expensesAdministrative expenses comprise expenses incurred for the Entity’s administrative functions, including wages
and salaries for administrative staff and Management, stationery and office supplies, and amortisation,
depreciation and impairment losses relating to intangible assets and property, plant and equipment used for
administration of the Entity.Other operating incomeOther operating income comprises income of a secondary nature as viewed in relation to the Entity’s primary
activities.Income from investments in group enterprisesIncome from investments in group enterprises comprises the pro rata share of the individual enterprises’ profit/loss after full elimination of intra-group profits or losses.
Income from other fixed asset investments Income from other fixed asset investments comprises gains in the form of interest, dividends, etc. on fixed
asset investments which are not investments in group enterprises or associates.Other financial incomeOther financial income comprises dividends etc. received on other investments, interest income, including
interest income on receivables from group enterprises, net capital or exchange gains on securities, payables
and transactions in foreign currencies, amortisation of financial assets, and tax relief under the Danish
Tax Prepayment Scheme etc.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, and 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.The Parent is jointly taxed with all of its Danish group enterprises. The current Danish income tax is allocated
among
the jointly taxed entities proportionally to their taxable income (full allocation with a refund
concerning tax
losses).Other taxesThe item includes tax amounts calculated on a basis other than income for the year, which are not refunded
to the Entity.GoodwillGoodwill 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. For one amount of goodwill, it has not been
possible to estimate useful
life reliably, for which reason such useful life has been set at 10 years. For other
amounts of goodwill, useful life
has been 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. Useful
lives are reassessed annually. The amortisation periods
used are 5 years.
Goodwill is written down to the lower of recoverable amount and carrying amount.<br />Intellectual property rights etc.Intellectual property rights etc. comprise development projects completed and in progress with related
intellectual property rights, acquired intellectual property rights and prepayments for intangible assets.Intellectual property rights acquired are measured at cost less accumulated amortisation. Patents are
amortised
on a straight-line basis over their remaining duration, and licences are amortised on a straight-line basis over the term of the agreement.
Intellectual property rights etc. are written down to the lower of recoverable amount and carrying amount.Property, plant and equipmentLand and buildings, plant and machinery, and other fixtures and fittings, tools and equipment are
measured at
cost less accumulated depreciation and impairment losses. Land is not depreciated.
Cost comprises the acquisition price, costs directly attributable to the acquisition and preparation costs of
the
asset until the time when it is ready to be put into operation.
Interest expenses on loans for the financing of the manufacture of property, plant and equipment are
included
in cost if they relate to the manufacturing period. All other financial costs are recognised in the income
statement.
The basis of depreciation is cost less estimated residual value after the end of useful life. Straight-line
depreciation is made on the basis of the following estimated useful lives of the assets:Buildings50 yearsOther fixtures and fittings, tools and equipment3-7 yearsLeasehold improvements10 years
For leasehold improvements and assets subect to finance leases, the depreciation period cannot exceed the contract period.
Estimated useful lives and residual values are reassessed annually.
Items of property, plant and equipment are written down to the lower of recoverable amount and carrying
amount.Investments in group enterprisesInvestments in group enterprises are recognised and measured in the parent financial statements according to the equity
method.
This means that investments are measured at the pro rata share of the enterprises’ equity value.
Group enterprises with negative equity value are measured at DKK 0. Any receivables from these enterprises
are written down to net realisable value based on a specific assessment. If the Parent has a legal
or constructive
obligation to cover the liabilities of the relevant enterprise, and it is probable that such
obligation will involve a
loss, a provision is recognised that is measured at present value of the costs
necessary to settle the obligations at
the balance sheet date.
Upon distribution of profit or loss, net revaluation of investments in group enterprises is transferred to
reserve
for net revaluation according to the equity method in equity.
Investments in group enterprises are written down to the lower of recoverable amount and carrying amount.
Investments in associates
Investments in associates are measured at cost. Investments are written down to the lower
of
recoverable amount and carrying amount.Investments in associates fall within the definitions of both participating interests and associates, yet in these consolidated financial statements they have been presented as investments in associates because this designation reflects more accurately the Group’s involvement in the relevant entities.
Other investmentsOther investments comprise listed securities which are measured at fair value (market price) at the balance
sheet date, and unlisted equity investments measured at the lower of cost and net realisable value.InventoriesInventories are measured at the lower of cost using the FIFO method and net realisable value.
Cost consists of purchase price plus delivery costs.
The net realisable value of inventories is calculated as the estimated selling price less completion costs and
costs incurred to execute sale.
ReceivablesReceivables are measured at amortised cost, usually equalling nominal value, less writedowns for bad and
doubtful debts.Contract work in progressContract work in progress is measured at the selling price of the work carried out at the balance sheet date.
The selling price is measured based on the stage of completion and the total estimated income from the
individual contracts in progress. Usually, the stage of completion is determined as the ratio of actual to total
budgeted consumption of resources.
If the selling price of a contract in progress cannot be made up reliably, it is measured at the lower of costs
incurred and net realisable value.
Each contract in progress is recognised in the balance sheet in receivables or liabilities other than provisions,
depending on whether the net value, calculated as the selling price less prepayments received, ispositive or
negative.
Costs of sales work and of securing contracts, and finance costs are recognised in the income statement
as incurred.PrepaymentsPrepayments comprise incurred costs relating to subsequent financial years. Prepayments are measured at
cost.Other investments (current assets)Other current asset investments comprise listed securities measured at fair value (market price) at the
balance sheet date, and unlisted investments measured at the lower of cost and net realisable value.CashCash comprises cash in hand and bank deposits.Minority interestsOn initial recognition, minority interests are measured at the minority interests’ share of the acquiree’s net assets measured at fair value. No goodwill related to the minority interests’ equity interests in the acquiree is recognised.Deferred taxDeferred tax is recognised on all temporary differences between the carrying amount and the tax-based
value of
assets and liabilities, for which the tax-based value is calculated based on the planned use of each asset.
Deferred tax assets, including the tax base of tax loss carryforwards, are recognised in the balance sheet at
their estimated realisable value, either as a set-off against deferred tax liabilities or as net tax assets.
Mortgage debtAt the time of borrowing, mortgage debt to mortgage credit institutions is measured at cost which corresponds
to the proceeds received less transaction costs incurred. Mortgage debt is subsequently measured at
amortised
cost. This means that the difference between the proceeds at the time of borrowing and the nominal
repayable
amount of the loan is recognised in the income statement as a financial expense over the term
of the loan
applying the effective interest method.<br />Other financial liabilitiesOther financial liabilities are measured at amortised cost, which usually corresponds to nominal value.Prepayments received from customersPrepayments received from customers comprise amounts received from customers prior to delivery of the
goods agreed or completion of the service agreed.Cash flow statementThe cash flow statement shows cash flows from operating, investing and financing activities, and cash
and cash equivalents at the beginning and the end of the financial year.
Cash flows from operating activities are presented using the indirect method and calculated as the operating
profit/loss adjusted for non-cash operating items, working capital changes, and financial income, financial expenses and income tax paid.
Cash flows from investing activities comprise payments in connection with acquisition and divestment of
enterprises, activities and fixed asset investments, and purchase, development, improvement and sale,
etc. of intangible assets and property, plant and equipment.
Cash flows from financing activities comprise changes in the size or composition of the contributed capital
and related costs, and the raising of loans, repayments of interest-bearing debt, including lease liabilities, purchase of treasury shares and payment of dividend.
Cash and cash equivalents comprise cash and short-term securities with an insignificant price risk less
short-
term bank loans.
The cash flow statement shows cash flows from operating, investing and financing activities, and cash
and cash equivalents at the beginning and the end of the financial year.
Cash flows from operating activities are presented using the indirect method and calculated as the operating
profit/loss adjusted for non-cash operating items, working capital changes, and financial income, financial expenses and income tax paid.
Cash flows from investing activities comprise payments in connection with acquisition and divestment of
enterprises, activities and fixed asset investments, and purchase, development, improvement and sale,
etc. of intangible assets and property, plant and equipment.
Cash flows from financing activities comprise changes in the size or composition of the contributed capital
and related costs, and the raising of loans, repayments of interest-bearing debt, including lease liabilities, purchase of treasury shares and payment of dividend.
Cash and cash equivalents comprise cash and short-term securities with an insignificant price risk less
short-
term bank loans.
2022-06-28Thomas Nielsen